EXECUTION COPY
 
$1,250,000,000
 
AMENDMENT NO. 1
 
dated as of April 21, 2006
to the 5-Year Credit Agreement
dated as of March 28, 2005
 
among
 
Textron Inc.,
The Banks Listed Herein,
JPMorgan Chase Bank, N.A.,
as Administrative Agent
and
Citibank, N.A.,
as Syndication Agent
 
J.P. Morgan Securities Inc.
and
Citigroup Global Markets Inc.,
Lead Arrangers and Joint Bookrunners
Bank of America, N.A.,
Deutsche Bank Securities Inc.
and
UBS Loan Finance LLC,
Documentation Agents
Barclays Bank PLC,
Co-Documentation Agent

 

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AMENDMENT NO. 1 TO 5-YEAR CREDIT AGREEMENT
     AMENDMENT dated as of April 21, 2006 to the 5-Year Credit Agreement dated
as of March 28, 2005 (the “Credit Agreement”) among TEXTRON INC., the BANKS
party thereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, and CITIBANK,
N.A., as Syndication Agent.
W I T N E S S E T H :
     WHEREAS, the parties hereto desire to amend the Credit Agreement as set
forth herein;
     NOW, THEREFORE, the parties hereto agree as follows:
     Section 1. Defined Terms; References. Unless otherwise specifically defined
herein, each term used herein that is defined in the Credit Agreement has the
meaning assigned to such term in the Credit Agreement. Each reference to
“hereof”, “hereunder”, “herein” and “hereby” and each other similar reference
and each reference to “this Agreement” and each other similar reference
contained in the Credit Agreement shall, after this Amendment becomes effective,
refer to the Credit Agreement as amended hereby.
     Section 2. Amendments.
     (a)      The reference to “BANKS” in the header of the Credit Agreement is
changed to “banks and other financial institutions”.
     (b)      The definition of “Termination Date” in Section 1.01 of the Credit
Agreement is amended by changing the date specified therein from “March 28,
2010” to “April 21, 2011”.
     (c)      The definition of “Agent” in Section 1.01 of the Credit Agreement
is amended to read as follows:
     “Agent” means any of the Administrative Agent, the Syndication Agent, the
Documentation Agents and the Co-Documentation Agent.
     (d)      The definition of “Commitment” in Section 1.01 of the Credit
Agreement is amended to read as follows:
     “Commitment” means (i) with respect to each Bank listed on the Commitment
Schedule, the amount set forth opposite such Bank’s name on the Commitment
Schedule, and (ii) with respect to any substitute Bank or Assignee which becomes
a Bank pursuant to Section 10.01 or 10.15, the amount of the transferor Bank’s
Commitment assigned to it pursuant

 

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to Section 10.01 or 10.15, as such amount may be changed from time to time
pursuant to Section 2.10, 10.01 or 10.15; provided that, if the context so
requires, the term “Commitment” means the obligation of a Bank to extend credit
up to such amount to the Borrowers hereunder.
(e)      Section 1.01 of the Credit Agreement is amended by adding the following
new definitions in their appropriate alphabetical positions:
       “Co-Documentation Agent” means Barclays Bank PLC, in its capacity as
co-documentation agent in respect of this Agreement.
       “Commitment Schedule” means the Commitment Schedule attached hereto.
       “Documentation Agent” means each of Bank of America, N.A., Deutsche Bank
Securities Inc. and UBS Loan Finance LLC, in its capacity as documentation agent
in respect of this Agreement.
(f)      Section 2.01(d) of the Credit Agreement is amended: (i) by adding the
following proviso at the end of the first sentence of paragraph (i) thereof: “;
provided that the Termination Date may only be so extended for two additional
one-year periods”, (ii) by changing the phrase “not less than 45 days and not
more than 55 days prior to the Termination Date then in effect” in the second
sentence of paragraph (i) thereof to read “not less than 45 days nor more than
90 days prior to each anniversary of the date hereof that occurs on or prior to
the Termination Date then in effect” and (iii) by adding the following sentence
to paragraph (ii) thereof:
On the date of termination of any Bank’s Commitment as contemplated by this
paragraph, the respective participations of the other Banks in all outstanding
Letters of Credit shall be redetermined on the basis of their respective
Commitments after giving effect to such termination, and the participation
therein of the Bank whose Commitment is terminated shall terminate; provided
that the Borrowers shall, if and to the extent necessary to permit such
redetermination of participations in Letters of Credit within the limits of the
Commitments which are not terminated, prepay on such date a portion of the
outstanding Loans, and such redetermination and termination of participations in
outstanding Letters of Credit shall be conditioned upon their having done so.
     (g)     Sections 4.03 and 4.04 of the Credit Agreement are amended by
changing each reference to the date “January 1, 2005” to “December 31, 2005”.

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     (h)      Section 8.07 of the Credit Agreement is amended to read in its
entirety as follows:
     Section 8.07. Other Agents. Nothing in this Agreement shall impose upon any
Agent other than the Administrative Agent any duty or liability whatsoever in
its capacity as an Agent.
     Section 3. Changes in Commitments. With effect from and including the
Amendment Effective Date, (i) the Commitment of each Bank shall be the amount
set forth opposite the name of such Bank in the Commitment Schedule attached
hereto and (ii) the Commitment Schedule attached hereto shall become the
Commitment Schedule attached to the Credit Agreement. On the Amendment Effective
Date, any Bank party to the Credit Agreement which is not listed in the
Commitment Schedule attached hereto (each, an “Exiting Bank”) shall cease to be
a Bank party to the Credit Agreement, and all accrued fees and other amounts
payable under the Credit Agreement for the account of each Exiting Bank shall be
due and payable on such date; provided that the provisions of Sections 2.10 to
2.14 and 10.03 of the Credit Agreement shall continue to inure to the benefit of
each Exiting Bank after the Amendment Effective Date.
     Section 4. Changes in Pricing Schedule. The Pricing Schedule attached to
the Credit Agreement (the “Existing Pricing Schedule”) is deleted and replaced
by the Pricing Schedule attached to this Amendment (the “New Pricing Schedule”).
The New Pricing Schedule shall apply to interest and fees accruing under the
Credit Agreement on and after the date hereof. The Existing Pricing Schedule
shall continue to apply to interest and fees accruing under the Credit Agreement
prior to the date hereof.
     Section 5. Representations of Borrower. The Company represents and warrants
that (i) the representations and warranties of the Company set forth in
Article 4 of the Credit Agreement will be true on and as of the Amendment
Effective Date and (ii) no Event of Default will have occurred and be continuing
on such date.
     Section 6. Effect of Amendments. Except as expressly set forth herein, the
amendments contained herein shall not constitute a waiver or amendment of any
term or condition of the Credit Agreement, and all such terms and conditions
shall remain in full force and effect and are hereby ratified and confirmed in
all respects.
     Section 7. Governing Law. This Amendment shall be governed by and construed
in accordance with the laws of the State of New York.

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     Section 8. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.
     Section 9. Effectiveness. This Amendment shall become effective as of the
date hereof (the “Amendment Effective Date”), subject to satisfaction of the
following conditions:
     (a)      the Administrative Agent shall have received from each of the
parties listed in the signature pages hereof a counterpart hereof signed by such
party or facsimile or other written confirmation (in form satisfactory to the
Administrative Agent) that such party has signed a counterpart hereof; and
     (b)      the Administrative Agent shall have received an opinion of the
General Counsel or Assistant General Counsel of the Company dated as of the
Amendment Effective Date, in form and substance satisfactory to the
Administrative Agent.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.

            TEXTRON INC.
      By:   /s/ MARY F. LOVEJOY         Name:   Mary F. Lovejoy        Title:  
Vice President and Treasurer   

 

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            JPMORGAN CHASE BANK, N.A., as
     Administrative Agent
      By:   /s/ RANDOLPH CATES         Name:   Randolph Cates        Title:  
Vice President   

 

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            JPMORGAN CHASE BANK, N.A.
      By:   /s/ RANDOLPH CATES         Name:   Randolph Cates        Title:  
Vice President   

 

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            CITIBANK, N.A.
      By:   /s/ DIANE L. POCKAJ         Name:   Diane L. Pockaj        Title:  
Managing Director   

 

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            BANK OF AMERICA, N.A.
      By:   /s/ SANJAY H. GURNANI         Name:   Sanjay H. Gurnani       
Title:   Senior Vice President   

 

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            BARCLAYS BANK PLC
      By:   /s/ NICHOLAS BELL         Name:   Nicholas Bell        Title:  
Director   

 

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            DEUTSCHE BANK AG NEW YORK BRANCH
      By:   /s/ YVONNE TILDEN         Name:   Yvonne Tilden        Title:   Vice
President              By:   /s/ DAVID G. DICKINSON, JR.         Name:   David
G. Dickinson, Jr.        Title:   Director   

 

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            UBS LOAN FINANCE LLC
      By:   /s/ BARBARA EZELL-MCMICHAEL         Name:   Barbara Ezell-McMichael 
      Title:   Associate Director
Banking Products Services, US              By:   /s/ TOBA LUMBANTOBING        
Name:   Toba Lumbantobing        Title:   Associate Director
Banking Products Services, US   

 

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            BANK OF TOKYO-MITSUBISHI UFJ
TRUST COMPANY
      By:   /s/ CHRISTOPHER J. DELAURO         Name:   Christopher J. DeLauro   
    Title:   Assistant Vice President   

 

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            BNP PARIBAS
      By:   /s/ RICHARD PACE         Name:   Richard Pace        Title:  
Managing Director              By:   /s/ ANGELA B. ARNOLD         Name:   Angela
B. Arnold        Title:   Director   

 

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            CREDIT SUISSE FIRST BOSTON, acting
through its Cayman Islands Branch
      By:   /s/ JAY CHALL         Name:   Jay Chall        Title:   Director   
          By:   /s/ JAMES NEIRA         Name:   James Neira        Title:  
Associate   

 

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            HSBC BANK USA, NATIONAL ASSOCIATION
      By:   /s/ C J WARNER         Name:   C J Warner        Title:   Head of
Transport Services and Infrastructure   

 

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            MERRILL LYNCH BANK USA
      By:   /s/ Louis Alder         Name:   Louis Alder        Title:  
Director   

 

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            MORGAN STANLEY BANK
      By:   /s/ DANIEL TWENGE         Name:   Daniel Twenge        Title:   Vice
President   

 

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            WACHOVIA BANK, NATIONAL ASSOCIATION
      By:   /s/ NATHAN R. RANTALA         Name:   Nathan R. Rantala       
Title:   Vice President   

 

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            WILLIAM STREET COMMITMENT CORPORATION
(Recourse only to assets of William Street
Commitment Corporation)
      By:   /s/ MARK WALTON         Name:   Mark Walton        Title:  
Assistant Vice President   

 

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            BANK OF MONTREAL
      By:   /s/ JOSEPH W. LINDER         Name:   Joseph W. Linder       
Title:   Vice President   

 

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            THE BANK OF NOVA SCOTIA
      By:   /s/ PETER J. VAN SCHAICK         Name:   Peter J. Van Schaick       
Title:   Managing Director   

 

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            SOCIETE GENERALE
      By:   /s/ AMBRISH D. THANAWALA         Name:   Ambrish D. Thanawala       
Title:   Managing Director   

 

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            THE BANK OF NEW YORK
      By:   /s/ PATRICK VATEL         Name:   Patrick Vatel        Title:  
Managing Director   

 

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            MELLON BANK, N.A.
      By:   /s/ LAURIE G. DUNN         Name:   Laurie G. Dunn        Title:  
First Vice President   

 

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COMMITMENT SCHEDULE

          Bank   Commitment  
 
       
JPMorgan Chase Bank, N.A.
  $ 120,000,000  
Citibank, N.A.
  $ 120,000,000  
Bank of America, N.A.
  $ 90,000,000  
Barclays Bank PLC
  $ 90,000,000  
Deutsche Bank AG New York Branch
  $ 90,000,000  
UBS Loan Finance LLC
  $ 90,000,000  
Bank of Tokyo-Mitsubishi UFJ Trust Company
  $ 60,000,000  
BNP Paribas
  $ 60,000,000  
Credit Suisse First Boston, acting through its Cayman Islands Branch
  $ 60,000,000  
HSBC Bank USA, National Association
  $ 60,000,000  
Merrill Lynch Bank USA
  $ 60,000,000  
Morgan Stanley Bank
  $ 60,000,000  
Wachovia Bank, National Association
  $ 60,000,000  
William Street Commitment Corporation
  $ 60,000,000  
Bank of Montreal
  $ 45,000,000  
The Bank of Nova Scotia
  $ 45,000,000  
Societe Generale
  $ 40,000,000  
The Bank of New York
  $ 20,000,000  
Mellon Bank, N.A.
  $ 20,000,000  
 
     
Total
  $ 1,250,000,000  
 
     

 

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PRICING SCHEDULE
     Each of “Facility Fee Rate”, “Euro-Dollar Margin” and “Letter of Credit Fee
Rate” means, for any date, the rate set forth below in the row opposite such
term and in the row corresponding to the “Utilization” at such date and under
the column corresponding to the “Pricing Level” at such date:

                                                      Level I     Level II    
Level III     Level IV     Level V     Level VI  
 
                                               
Facility Fee Rate
    0.05 %     0.06 %     0.07 %     0.08 %     0.09 %     0.125 %
Euro-Dollar Margin
                                               
Utilization < 50%
    0.125 %     0.14 %     0.18 %     0.37 %     0.535 %     0.625 %
Utilization > 50%
    0.175 %     0.19 %     0.23 %     0.42 %     0.585 %     0.675 %
Letter of Credit Fee Rate
    0.175 %     0.19 %     0.23 %     0.42 %     0.585 %     0.675 %
 
                                               

     For purposes of this Schedule, the following terms have the following
meanings, subject to the concluding paragraph of this Schedule:
     “Level I Pricing” applies at any date if, at such date, the Company’s
long-term debt is rated A+ or higher by S&P, A1 or higher by Moody’s and A+ or
higher by Fitch.
     “Level II Pricing” applies at any date if, at such date, the Company’s
long-term debt is rated A by S&P, A2 by Moody’s and A by Fitch.
     “Level III Pricing” applies at any date if, at such date, the Company’s
long-term debt is rated A- by S&P, A3 by Moody’s and A- by Fitch.
     “Level IV Pricing” applies at any date, if at such date, the Company’s
long-term debt is rated BBB+ by S&P, Baa1 by Moody’s and BBB+ by Fitch.
     “Level V Pricing” applies at any date if, at such date, the Company’s
long-term debt is rated BBB by S&P, Baa2 by Moody’s and BBB by Fitch.
     “Level VI Pricing” applies at any date if, at such date, no other Pricing
Level applies.
     “Fitch” means Fitch Ratings Ltd.
     “Moody’s” means Moody’s Investors Service, Inc.
     “Pricing Level” refers to the determination of which of Level I, Level II,
Level III, Level IV, Level V or Level VI applies at any date.

 

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     “S&P” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.
     “Utilization” means, at any date, the percentage equivalent of a fraction
(i) the numerator of which is the sum of (A) the aggregate outstanding principal
amount of the loans under the Facility at such date (after giving effect to any
borrowing or payment on such date) plus (B) the aggregate amount then owing in
respect of amounts paid by the Issuing Bank upon a drawing under a letter of
credit issued under the Facility at such date plus (C) the aggregate amount then
available for drawing under all outstanding letters of credit under the Facility
at such date and (ii) the denominator of which is the aggregate amount of the
commitments under the Facility at such date (after giving effect to any
reduction on such date). If for any reason any Loans or Letter of Credit
Liabilities remain outstanding after termination of the commitments under the
Facility, Utilization shall be deemed to be 100%.
     The credit ratings to be utilized for purposes of this Schedule are those
assigned to the senior unsecured long-term debt securities of the Company
without third-party enhancement, and any rating assigned to any other debt
security of the Company shall be disregarded. The rating in effect at any date
is that in effect at the close of business of such date.
     If the Company is split-rated, then for purposes of determining the
applicable Pricing Level, (a) if the S&P and Moody’s ratings are the same, all
three ratings will be deemed to be at that level, (b) if the S&P and Moody’s
ratings are not the same, and the ratings differential is one level, all three
ratings will be deemed to be at the higher level of S&P and Moody’s and (c) if
the S&P and Moody’s ratings are not the same and the ratings differential is two
levels or more, all three ratings will be deemed to be at a level one notch
lower than the higher of S&P and Moody’s.