Document:

exv10w4

Exhibit 10.4

Execution Version

 

INTERCREDITOR AGREEMENT

Dated as of September 17, 2009

among

BANK OF AMERICA, N.A.,

as Revolving Loan Administrator,

BANK OF AMERICA, N.A.,

as Term Loan Administrator and

BANK OF AMERICA, N.A.,

as Collateral Agent

and Acknowledged and Agreed to by

KAMAN CORPORATION

and

CERTAIN SUBSIDIARIES

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	 
	 
	 	 	 	 
	SECTION 1. DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1. Defined Terms
	 	 	2	 
	 
	 	 	 	 
	1.2. Other Interpretive Provisions
	 	 	5	 
	 
	 	 	 	 
	SECTION 2. DISTRIBUTIONS AFTER EVENT OF DEFAULT
	 	 	6	 
	 
	 	 	 	 
	2.1. Payments to Collateral Agent; Collateral Security Account
	 	 	6	 
	 
	 	 	 	 
	2.2. Control of Collateral Security Account
	 	 	6	 
	 
	 	 	 	 
	2.3. Investment of Funds Deposited in Collateral Security Account
	 	 	6	 
	 
	 	 	 	 
	2.4. Application of Funds
	 	 	6	 
	 
	 	 	 	 
	2.5. Collateral Agent’s Calculations
	 	 	7	 
	 
	 	 	 	 
	2.6. Sharing of Payments
	 	 	8	 
	 
	 	 	 	 
	SECTION 3. VOTING ISSUES
	 	 	8	 
	 
	 	 	 	 
	3.1. Exercise of Remedies Under Collateral Documents
	 	 	8	 
	 
	 	 	 	 
	3.2. Modification of Collateral Documents
	 	 	9	 
	 
	 	 	 	 
	3.3. Release of Collateral
	 	 	9	 
	 
	 	 	 	 
	3.4. Modifications of Intercreditor Agreement
	 	 	9	 
	 
	 	 	 	 
	3.5. Clarification of Ambiguity, Etc
	 	 	9	 
	 
	 	 	 	 
	SECTION 4. CERTAIN AGREEMENTS OF THE SENIOR SECURED PARTIES
	 	 	10	 
	 
	 	 	 	 
	4.1. Turnover of Collateral
	 	 	10	 
	 
	 	 	 	 
	4.2. Mutual Notice of Amendments
	 	 	10	 
	 
	 	 	 	 
	4.3. Assignments and Participation
	 	 	10	 
	 
	 	 	 	 
	SECTION 5. MISCELLANEOUS
	 	 	10	 
	 
	 	 	 	 
	5.1. Notices
	 	 	10	 
	 
	 	 	 	 
	5.2. Severability
	 	 	10	 
	 
	 	 	 	 
	5.3. Successors and Assigns
	 	 	10	 
	 
	 	 	 	 
	5.4. Counterparts
	 	 	10	 
	 
	 	 	 	 
	5.5. GOVERNING LAW
	 	 	11	 
	 
	 	 	 	 
	5.6. Termination
	 	 	11	 
	 
	 	 	 	 
	5.7. Relationship with Senior Credit Documents
	 	 	11	 

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INTERCREDITOR AGREEMENT

     This INTERCREDITOR AGREEMENT (this “Agreement”), dated as of September 17, 2009, is by
and among the Bank of America, N.A. (“Bank of America”), as administrator for the Revolving
Loan Lenders (the “Revolving Loan Administrator”), Bank of America, as administrator for
the Term Loan Lenders (the “Term Loan Administrator”) and Bank of America, as collateral
agent under the Revolving Credit Agreement, the Term Loan Credit Agreement, the Collateral
Documents and this Agreement (the “Collateral Agent”), and acknowledged by the Loan Parties
(as defined below). Capitalized terms used in this Agreement have the meanings ascribed in
Section 1.1.

     WHEREAS, Kaman Corporation, (the “Company”), certain Subsidiaries of the Company from
time to time party thereto (each a “Revolving Loan Borrower” and collectively the
“Revolving Loan Borrowers”), each Revolving Loan Lender from time to time party thereto
(each a “Revolving Loan Lender”), the Revolving Loan Administrator, Bank of America and
Bank of Nova Scotia (“Nova Scotia”), each as a Co-Administrative Agent for the Revolving
Loan Lenders (individually in such capacity, a “Revolving Loan Co-Administrative Agent” and
collectively, the “Revolving Loan Co-Administrative Agents”), RBS Citizens National
Association, as Syndication Agent, and Bank of America, as collateral agent for the Revolving
Secured Parties, are parties to the Revolving Credit Agreement dated as of September 17, 2009 (the
“Revolving Credit Agreement”), pursuant to which the Revolving Loan Lenders may from time
to time make Revolving Loans and issue Letters of Credit; and

     WHEREAS, the Company (the “Term Loan Borrower”, and together with the Revolving Loan
Borrowers, the “Borrowers”), each Term Loan Lender from time to time party thereto (each a
“Term Loan Lender”), the Term Loan Administrator, Bank of America and Nova Scotia, each as
a Co-Administrative Agent for the Term Loan Lenders (individually in such capacity, a “Term
Loan Co-Administrative Agent” and collectively, the “Term Loan Co-Administrative
Agents”, and together with the Revolving Loan Co-Administrative Agents, the
“Co-Administrative Agents”), and Bank of America, as collateral agent for the Term Secured
Parties are parties to the Amended and Restated Term Loan Credit Agreement dated as of September
17, 2009 (“Term Loan Credit Agreement”), pursuant to which the Term Loan Lenders amended
and restated term loans originally made to the Company on October 29, 2008; and

     WHEREAS, pursuant to the Collateral Documents, certain of the Loan Parties are granting to
Bank of America, in its capacity as Collateral Agent, for the benefit of the Senior Secured
Parties, liens upon and security interests in the Collateral to secure the Senior Obligations; and

     WHEREAS, pursuant to the Guarantees, certain of the Loan Parties have guaranteed the Senior
Obligations; and

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     WHEREAS, the Revolving Loan Lenders and the Term Loan Lenders (including in their capacities
as potential Hedge Banks, Cash Management Banks or Line Banks, as applicable) have, pursuant to the
Revolving Credit Agreement and the Term Loan Credit Agreement, respectively, appointed Bank of
America as their agent with respect to the Collateral; and

     WHEREAS, the Revolving Loan Lenders, the Term Loan Lenders, and the Collateral Agent desire to
agree to certain priorities for the payments of the Senior Obligations under certain circumstances;

     NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein, the
parties hereto agree as follows:

SECTION 1.

DEFINITIONS

     1.1. Defined Terms. As used in this Agreement, the following capitalized terms shall
have the following meanings:

     “Agreement” has the meaning specified in the recitals.

     “Bank of America” has the meaning specified in the recitals.

     “Bankruptcy Event” means an event described in Section 8.01(g) of the Revolving Credit
Agreement or 7.1(g) of the Term Loan Credit Agreement.

     “Borrowers” has the meaning specified in the recitals.

     “Cash Collateralize” has the meaning ascribed thereto in each of the Revolving Credit
Agreement and Term Loan Credit Agreement, respectively.

     “Cash Equivalents” has the meaning specified in each of the Revolving Credit Agreement
and Term Loan Credit Agreement, respectively.

     “Cash Management Bank” has the meaning ascribed thereto in each of the Revolving
Credit Agreement and the Term Loan Credit Agreement, respectively.

     “Co-Administrative Agents” has the meaning ascribed thereto in the recitals.

     “Code” means the Uniform Commercial Code as in effect in the State of New York from
time to time.

     “Collateral” means collectively, all of the personal property, now owned or hereafter
existing or acquired by any Loan Party, or in which any Loan Party has any right, title or
interest, with respect to which a lien is purported to be granted to the Collateral Agent for the
benefit of any of the Senior Secured Parties under any Collateral Document, and any amounts
received by the Collateral Agent or any Senior Secured Party from the exercise of any rights of
set-off or banker’s lien (whether by law, contract or otherwise) with respect to any Loan Party.

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     “Collateral Agent” has the meaning specified in the recitals.

     “Collateral Documents” means the “Collateral Documents” as such term is defined in
each Credit Agreement, together with any other agreement, document or instrument in effect on the
date hereof or executed by any Loan Party after the date hereof, under which such Loan Party has
granted a lien upon, or security interest in, any property or assets to the Collateral Agent to
secure all, or any part of, the Senior Obligations, all financing statements, certificates,
documents and instruments relating thereto or executed or provided in connection therewith.

     “Collateral Security Account” has the meaning specified in Section 2.1.

     “Commitment” has the meaning ascribed thereto in the Revolving Credit Agreement.

     “Credit Agreement” or “Credit Agreements” means each of the Revolving Credit
Agreement and the Term Loan Credit Agreement.

     “Domestic Subsidiary Guarantee” has the meaning ascribed thereto in each Credit
Agreement.

     “Event of Default” has the meaning ascribed thereto in each Credit Agreement, as the
case may be.

     “Guarantee” or “Guarantees” means individually or collectively the “Domestic
Subsidiary Guarantees” and the “Company Guarantees”, each as defined in each Credit Agreement.

     “Hedge Bank” has the meaning ascribed thereto in each of the Revolving Credit
Agreement and the Term Loan Credit Agreement, respectively.

     “L/C Borrowings” has the meaning ascribed thereto in the Revolving Credit Agreement.

     “L/C Issuer” has the meaning ascribed thereto in the Revolving Credit Agreement.

     “L/C Obligations” has the meaning ascribed thereto in the Revolving Credit Agreement.

     “Letter of Credit” has the meaning ascribed thereto in the Revolving Credit Agreement.

     “Letter of Credit Fee” has the meaning ascribed thereto in the Revolving Credit
Agreement.

     “Line Bank” has the meaning ascribed thereto in each of the Revolving Credit Agreement
and the Term Loan Credit Agreement, respectively.

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     “Loan Parties” has the meaning provided for in the Revolving Credit Agreement and the
Term Loan Credit Agreement on the date hereof.

     “Notice of Event of Default” means a notice (a) by the Term Loan Administrator on
behalf of Required Term Loan Lenders or (b) by the Revolving Loan Administrator on behalf of the
Required Revolving Loan Lenders, in each case delivered to the Collateral Agent and certifying that
an Event of Default has occurred.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, governmental authority or other entity.

     “Required Revolving Loan Lenders” means “Required Lenders” as that term is defined in
the Revolving Credit Agreement.

     “Required Senior Lenders” means at any date of determination, Senior Lenders holding
more than 50% of the sum of the Senior Lender Exposure.

     “Required Term Loan Lenders” means “Required Lenders” as that term is defined in the
Term Loan Credit Agreement.

     “Revolving Credit Agreement” has the meaning ascribed thereto in the recitals hereto.

     “Revolving Loan” means a “Loan” as that term is defined in the Revolving Credit
Agreement.

     “Revolving Loan Lenders” has the meaning set forth in the recitals.

     “Revolving Loan Lender Exposure” means, at any time, the sum of (a) the principal
amount of Revolving Loans and Swing Line Loans, (b) L/C Obligations and (c) to the extent such
Commitments are available to be drawn, the unfunded Commitments at such time.

     “Revolving Loan Obligations” means the “Obligations” as defined in the Revolving
Credit Agreement.

     “Revolving Secured Parties” means the “Secured Parties” as defined in the Revolving
Credit Agreement.

     “Secured Cash Management Agreements” has the meaning ascribed thereto in each of the
Revolving Credit Agreement and the Term Loan Credit Agreement, respectively

     “Secured Hedge Agreements” has the meaning ascribed thereto in each of the Revolving
Credit Agreement and the Term Loan Credit Agreement, respectively.

     “Secured Lines” has the meaning ascribed thereto in each of the Revolving Credit
Agreement and the Term Loan Credit Agreement, respectively.

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     “Senior Credit Documents” means collectively the “Loan Documents” (as defined in the
Revolving Credit Agreement), and the “Loan Documents” (as defined in the Term Loan Credit
Agreement) any document or instrument evidencing or securing any Senior Obligations and all other
documents from time to time delivered under any of such documents or in connection therewith.

     “Senior Lender Exposure” means, at any time, the sum of the Revolving Loan Lender
Exposure and the Term Loan Lender Exposure at such time.

     “Senior Lenders” means the Revolving Loan Lenders and the Term Loan Lenders.

     “Senior Loans” means the “Loans” as defined in each of the Revolving Credit Agreement
and the Term Loan Credit Agreement.

     “Senior Obligations” means (a) all Revolving Loan Obligations and Term Loan
Obligations and (b) all sums payable by any of the Loan Parties under this Agreement or any other
Senior Credit Document. The term Senior Obligations shall include all of the foregoing
indebtedness, liabilities and obligations whether or not allowed as a claim in any bankruptcy,
insolvency, receivership or similar proceeding.

     “Senior Secured Parties” means, collectively, the Revolving Secured Parties and the
Term Secured Parties.

     “Swing Line Loans” has the meaning ascribed thereto in the Revolving Credit Agreement.

     “Term Loan Credit Agreement” has the meaning ascribed thereto in the recitals hereto.

     “Term Loan Lenders” has the meaning ascribed thereto in the recitals.

     “Term Loan Lender Exposure” means, at any time, the principal amount of the Term Loans
at such time.

     “Term Loan Obligations” means the “Obligations” as defined in the Term Loan Credit
Agreement.

     “Term Loans” means the “Loans” as defined in the Term Loan Credit Agreement.

     “Term Secured Parties” means the “Secured Parties” as that term is defined in the Term
Loan Credit Agreement.

     1.2. Other Interpretive Provisions. Clauses (a), (b) and (c) of Section 1.02 of the
Revolving Credit Agreement as in effect on the date hereof shall be incorporated herein mutatis
mutandis.

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SECTION 2.

DISTRIBUTIONS AFTER EVENT OF DEFAULT

     2.1. Payments to Collateral Agent; Collateral Security Account. Upon and during the
continuance of any Event of Default and after notice by the Required Revolving Loan Lenders or the
Required Term Loan Lenders, as the case may be, to the Revolving Loan Administrator, Term Loan
Administrator and the Collateral Agent, all payments made by, or on behalf of, any Loan Party to
any Senior Secured Party and all payments received by a Senior Secured Party through the exercise
of rights of set-off or otherwise, shall be paid to the Collateral Agent for distribution in
accordance with the terms of this Agreement. All moneys which are required by this Agreement or
any Collateral Document to be delivered to the Collateral Agent during the continuance of an Event
of Default, or which are received by the Collateral Agent or any agent or nominee of the Collateral
Agent in respect of any Collateral or any Guarantee, whether in connection with the exercise of the
remedies provided in this Agreement or any Collateral Document or otherwise, shall be deposited in
an account maintained by, and under the exclusive dominion and control of, the Collateral Agent
which shall be titled the “Bank of America Collateral Security Account (Kaman)” (the
“Collateral Security Account”) and held by the Collateral Agent on behalf of the Senior
Secured Parties as part of the Collateral and applied in accordance with the terms of this
Agreement.

     2.2. Control of Collateral Security Account. All right, title and interest in and to
the Collateral Security Account shall vest in the Collateral Agent, on behalf of the Senior Secured
Parties, and funds on deposit in the Collateral Security Account shall constitute part of the
Collateral. The Collateral Security Account shall be subject to the exclusive dominion and control
of the Collateral Agent.

     2.3. Investment of Funds Deposited in Collateral Security Account. The Collateral
Agent may invest and reinvest moneys on deposit in the Collateral Security Account at any time in
Cash Equivalents. All such investments and the interest and income received thereon and the net
proceeds realized on the sale or redemption thereof shall be held in the Collateral Security
Account as part of the Collateral.

     2.4. Application of Funds

     First, to payment of that portion of the Senior Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to
the Co-Administrative Agents, Collateral Agent and Administrator under each of the Revolving Credit
Agreement and the Term Loan Credit Agreement, respectively, ratably among them in proportion to the
respective amounts described in this clause First payable to them);

     Second, to payment of that portion of the Senior Obligations constituting fees,
indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to
the Senior Lenders and the L/C Issuer (including fees, charges and disbursements of counsel to the
respective Senior Lenders and the L/C Issuer (including fees and time charges for attorneys who may
be employees of any Senior Lender or the L/C Issuer) arising under the Senior Credit Documents
ratably among them in proportion to the respective amounts described in this clause Second
payable to them);

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     Third, to payment of that portion of the Senior Obligations constituting accrued and
unpaid Letter of Credit Fees and interest on the Senior Loans, L/C Borrowings and other Senior
Obligations arising under the Senior Credit Documents, Secured Hedge Agreements, Secured Cash
Management Agreements and Secured Lines, ratably among the Senior Lenders and the L/C Issuer in
proportion to the respective amounts described in this clause Third payable to them;

     Fourth, to payment of that portion of the Senior Obligations constituting unpaid
principal of the Senior Loans, L/C Borrowings and Senior Obligations then owing under Secured Hedge
Agreements, Secured Cash Management Agreements and Secured Lines, ratably among the Senior Lenders,
the L/C Issuer, the Hedge Banks, the Cash Management Banks and the Line Banks in proportion to the
respective amounts described in this clause Fourth held by them;

     Fifth, to the Revolving Loan Administrator for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters
of Credit; and

     Last, the balance, if any, after all of the Senior Obligations have been indefeasibly
paid in full, to the Borrowers or other Loan Parties, as applicable, or as otherwise required by
Law.

Subject to Section 2.03(d) of the Revolving Credit Agreement, amounts used to Cash
Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth
above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any
amount remains on deposit as cash collateral after all Letters of Credit have either been fully
drawn or expired, such remaining amount shall be applied to the other Senior Obligations, if any,
in the order set forth above.

Notwithstanding the foregoing, Senior Obligations arising under Secured Cash Management Agreements,
Secured Hedge Agreements and Secured Lines shall be excluded from the application described above
if each Administrator and the Collateral Agent has not received written notice thereof, together
with such supporting documentation as the each Administrator and the Collateral Agent may request,
from the applicable Cash Management Bank, Hedge Bank or Line Bank as the case may be.

     2.5. Collateral Agent’s Calculations. In making the determinations and allocations
required hereunder, the Collateral Agent may rely upon information supplied by the Revolving Loan
Administrator as to the amounts payable with respect to the Revolving Loan Obligations, or upon
information supplied by the Term Loan Administrator as to the amounts payable with respect to the
Term Loan Obligations, and the Collateral Agent shall have no liability to any of the Senior
Secured Parties for actions taken in reliance on such information. All distributions made by the
Collateral Agent hereunder shall be (subject to manifest error or any decree of any court of
competent jurisdiction) final, and the Collateral Agent shall have no duty to inquire as to the
application by the Revolving Loan Administrator or the Term Loan Administrator of any amounts
distributed to them.

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     2.6. Sharing of Payments. If, through the operation of any insolvency law or
otherwise, or if the Collateral Agent’s security interest hereunder and under the Collateral
Documents or rights under any Guarantee are enforced with respect to some, but not all, of the
Senior Obligations then outstanding, the Collateral Agent shall nonetheless apply all payments for
the benefit of the holders of all Senior Obligations in the proportions and subject to the
priorities specified herein. To the extent that the Collateral Agent distributes amounts as set
forth in the preceding sentence collected with respect to Senior Obligations held by one holder to
or on behalf of Senior Obligations held by a second holder, the first holder shall be deemed to
have purchased a participation in the Senior Obligations held by the second holder, or shall be
subrogated to the rights of the second holder to receive any subsequent payments and distributions
made with respect to the portion thereof paid or to be paid by the application of such amounts.

     2.7. Notice of Event of Default.

     (a) Upon the occurrence of an Event of Default, the Revolving Loan Administrator (on behalf of
the Required Revolving Loan Lenders) or the Term Loan Administrator (on behalf of the Required Term
Loan Lenders) at the time of such Event of Default, shall deliver a Notice of Event of Default to
the Collateral Agent. Promptly upon receipt by the Collateral Agent of a Notice of Event of
Default, the Collateral Agent shall simultaneously notify the Revolving Loan Administrator or the
Term Loan Administrator, as the case may be.

     (b) A Notice of Event of Default delivered by the Revolving Loan Administrator or the Term
Loan Administrator shall become effective upon actual receipt thereof by the Collateral Agent. A
Notice of Event of Default shall automatically be deemed to have been delivered by the Revolving
Loan Administrator and the Term Loan Administrator and received by the Collateral Agent upon the
occurrence of a Bankruptcy Event. A Notice of Event of Default, once effective, shall remain in
effect unless and until the Collateral Agent actually receives a written notice of cancellation as
provided in Section 2.7(c) below.

     (c) The Revolving Loan Administrator or the Term Loan Administrator, as the case may be, shall
be entitled to cancel a Notice of Event of Default by delivering a written notice of cancellation
of such Notice of Event of Default to the Collateral Agent.

SECTION 3.

VOTING ISSUES

     3.1. Exercise of Remedies Under Collateral Documents.

     (a) Until such time that this Agreement is terminated pursuant to Section 5.6, the
Required Senior Lenders shall, in accordance with the terms of the Collateral Documents and the
other Senior Credit Documents, have the right, by one or more instruments in writing executed and
delivered to the Collateral Agent, to direct the time, method and place of conducting any
proceeding for any right or remedy available to the Collateral Agent, for exercising any power
conferred on the Collateral Agent, or to direct the taking or the refraining from taking of any
action, authorized by this Agreement or any Collateral Document. For the

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avoidance of doubt, the actions provided for under this Section 3.1(a) may not be
taken by the Required Term Loan Lenders, acting alone, or the Required Revolving Loan Lenders,
acting alone, unless such group also constitutes “Required Senior Lenders”.

     (b) Nothing in this Agreement shall impair the right of the Collateral Agent in its discretion
to take any action which it deems proper and which is not inconsistent with the written
instructions of the Required Senior Lenders.

     3.2. Modification of Collateral Documents. It shall be a condition to any amendment
or modification to any Collateral Document that is executed for the benefit of both the Revolving
Secured Parties and the Term Secured Parties that the requisite Revolving Loan Lender vote and the
requisite Term Loan Lender vote, as applicable (if any), under the relevant provisions of each of
the Revolving Credit Agreement and the Term Loan Credit Agreement be obtained.

     3.3. Release of Collateral. It shall be a condition to any release of Collateral that
the requisite Revolving Loan Lender vote and the requisite Term Loan Lender vote, as applicable (if
any), under the relevant provisions of each of the Revolving Credit Agreement and the Term Loan
Credit Agreement be obtained.

     3.4. Modifications of Intercreditor Agreement. This Agreement may not be amended or
modified except by an instrument in writing executed by (or on behalf) of the Required Revolving
Lenders and the Required Term Loan Lenders, provided that:

     (a) no amendment or modification shall change Section 2.4 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Senior Lender;

     (b) no amendment or modification shall change any provision of this Section or any other
provision of this Agreement specifying the number or percentage of Senior Lenders required to
amend, waive, or modify any rights hereunder or make any determination or grant any consent
hereunder without the written consent of each Senior Lender and the Loan Parties party hereto; and

     (c) no amendment or modification shall, unless in writing and signed by the Collateral Agent,
affect the rights or duties of the Collateral Agent under this Agreement.

     3.5. Clarification of Ambiguity, Etc. Without the consent of any Senior Secured
Party, the Collateral Agent and the Loan Parties, at any time and from time to time, may enter into
one or more agreements supplemental hereto or to any Collateral Document, in form satisfactory to
the Collateral Agent, (a) to add any provision for the benefit of the Senior Secured Parties (b) to
mortgage or pledge to the Collateral Agent, or grant a security interest in favor of the Collateral
Agent in, any property or assets as security or additional security for the Senior Obligations, or
(c) to cure any ambiguity, to correct or supplement any provision herein or in any Collateral
Document which may be defective or inconsistent with any other provision herein or therein, or to
make any other provision with respect to matters or questions arising hereunder which shall not be
inconsistent with any provision hereof; provided, that any such action

-9-

 

contemplated by this Section shall not adversely affect the interests, as determined by the
Collateral Agent in good faith, of the Senior Secured Parties

SECTION 4.

CERTAIN AGREEMENTS OF THE SENIOR SECURED PARTIES

     4.1. Turnover of Collateral. If any Senior Secured Party acquires custody, control or
possession of any Collateral or proceeds thereof, other than pursuant to the terms of this
Agreement, such Senior Secured Party shall promptly cause such Collateral or proceeds to be
delivered to, or put in the custody, possession or control of, the Collateral Agent for disposition
or distribution in accordance with the provisions of this Agreement. Until such time as the
provisions of the immediately preceding sentence have been complied with, such Senior Secured Party
shall be deemed to hold such Collateral and amounts in trust for the Collateral Agent for the
benefit of the Senior Secured Parties.

     4.2. Mutual Notice of Amendments. The Revolving Loan Administrator shall give the
Term Loan Administrator prior written notice of any modification, supplement or amendment to the
Revolving Credit Agreement and the Term Loan Administrator shall give prior written notice to the
Revolving Loan Administrator of any modification, supplement or amendment to the Term Loan Credit
Agreement.

     4.3. Assignments and Participation. Each Senior Secured Party agrees that it shall be
a condition to assignment of any of its Senior Obligations that any assignee of such Senior
Obligations shall agree in writing to be bound by the terms of this Agreement and to perform the
obligations of a Senior Secured Party hereunder.

SECTION 5.

MISCELLANEOUS

     5.1. Notices. Unless otherwise specified herein, all notices, requests, demands or
other communications given to any Loan Party, the Collateral Agent, or any Senior Secured Party
shall be given as provided in the Revolving Credit Agreement and the Term Loan Credit Agreement,
respectively.

     5.2. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     5.3. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and shall inure to the benefit of each of the Senior Secured
Parties and their respective successors and assigns, and nothing herein is intended or shall be
construed to give any other Person any right, remedy or claim under, to or in respect of this
Agreement or any Collateral or any Guaranty.

     5.4. Counterparts. This Agreement may be signed in any number of counterparts with
the same effect as if the signatures thereto and hereto were upon the same instrument.

-10-

 

     5.5. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PROVISIONS
THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     5.6. Termination. This Agreement shall terminate upon the earliest to occur of (a)
the date on which the Revolving Loan Obligations (excluding any Obligations with respect to any
Secured Cash Management Agreement, Secured Hedge Agreement or Secured Line) have been paid in full
and the Commitments have been terminated and (b) the date the Term Loan Obligations (excluding any
Obligations with respect to any Secured Cash Management Agreement, Secured Hedge Agreement or
Secured Line) have been paid in full.

     5.7. Relationship with Senior Credit Documents. In the event of any inconsistency
between this Agreement and any Collateral Document or Senior Credit Document, the provisions of
this Agreement shall prevail.

[Signature Pages follow]

-11-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above.

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Administrator for	 	 
	 	 	the Revolving Loan Lenders	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey J. McLaughlin	 	 
	 

	 	 	 	 

Name: Jeffrey J. McLaughlin
	 	 
	 

	 	 	 	Title: SVP	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Administrator for	 	 
	 	 	the Term Loan Lenders	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey J. McLaughlin	 	 
	 

	 	 	 	 

Name: Jeffrey J. McLaughlin
	 	 
	 

	 	 	 	Title: SVP	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey J. McLaughlin	 	 
	 

	 	 	 	 

Name: Jeffrey J. McLaughlin
	 	 
	 

	 	 	 	Title: SVP	 	 

Signature Page to Intercreditor Agreement 

 

 

ACKNOWLEDGED AND AGREED TO

AS OF THE DATE FIRST SET FORTH ABOVE:

KAMAN CORPORATION

KAMAN AEROSPACE GROUP, INC.

KAMATICS CORPORATION

KAMAN PRECISION PRODUCTS, INC.

KAMAN AEROSPACE CORPORATION

KAMAN AEROSTRUCTURES GROUP — WICHITA, INC.

KAMAN AEROSTRUCTURES — WICHITA, INC.

KAMAN INDUSTRIAL TECHNOLOGIES CORPORATION

KAMAN X CORPORATION

K-MAX CORPORATION

	 	 	 	 	 
	By:

	 	/s/ Robert D. Starr
 

Name: Robert D. Starr
	 	 
	 

	 	Title: Vice President &
Treasurer, Kaman Corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Candace A. Clark
 

Name: Candace A. Clark
	 	 
	 

	 	Title: Secretary, each Kaman Subsidiary	 	 

Signature Page to Intercreditor Agreement<PAGE>
                                                                   EXHIBIT 4.3.1

                                 KIMBERLY-CLARK

================================================================================

                                 KIMBERLY-CLARK

                                    SHAREPLUS

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                                 BACON & WOODROW
                             ACTUARIES & CONSULTANTS

<PAGE>

                                 KIMBERLY-CLARK

                                    SHAREPLUS

                                    CONTENTS

<Table>
<S>                                                                                                         <C>
1      DEFINITIONS...........................................................................................3

2      INVITATIONS TO ACQUIRE PARTNERSHIP SHARES.............................................................7

3      ACQUISITION OF PARTNERSHIP SHARES.....................................................................9

4      CESSATION OF EMPLOYMENT..............................................................................10

5      AWARD OF MATCHING SHARES.............................................................................11

6      TRANSFER OF MATCHING SHARES..........................................................................12

7      CESSATION OF EMPLOYMENT AND WITHDRAWAL OF MATCHING SHARES FROM THE PLAN..............................12

8      REINVESTMENT OF DIVIDENDS............................................................................13

9      TRANSFER OF DIVIDEND SHARES..........................................................................13

10     CESSATION OF EMPLOYMENT AND WITHDRAWAL OF DIVIDEND SHARES FROM THE PLAN..............................13

11     ACQUISITION OF SHARES FOR AWARD......................................................................14

12     ISSUE OF SHARES AND DIVIDENDS........................................................................14

13     TAKEOVERS............................................................................................15

14     TAX AND SOCIAL SECURITY..............................................................................15

15     STAMP DUTY...........................................................................................15

16     DISPUTES.............................................................................................16

17     RIGHTS ON TERMINATION OF EMPLOYMENT..................................................................16

18     ADMINISTRATION AND ALTERATIONS.......................................................................16

19     ERRORS AND OMISSIONS.................................................................................17

20     NOTICES..............................................................................................17

21     GENERAL..............................................................................................18

22     GOVERNING LAW........................................................................................18

SCHEDULE - BELGIUM..........................................................................................19

SCHEDULE - ITALY............................................................................................20

SCHEDULE - UK TOP-UP........................................................................................21
</Table>

                                       2
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                           KIMBERLY-CLARK SHAREPLUS

This Plan entitled 'Kimberly-Clark Shareplus' is designed for operation in
European countries and is amended by a schedule attached to the Plan making the
variations which apply in particular European countries. Where no schedule is
attached for a particular country, the Rules of the Plan apply without
amendments.

1 DEFINITIONS

In these Rules the following words and expressions shall, where the context so
permits, have the meanings set forth below:

"ACQUISITION DATE"                      the date on which Partnership Shares are
                                        acquired on behalf of Participants in
                                        accordance with Rule 3 of the Plan;

"AWARD DATE"                            (1) in relation to Matching Shares, the
                                        date on which Matching Shares are
                                        awarded to Participants in accordance
                                        with Rule 5 of the Plan; and

                                        (2) in relation to Dividend Shares, the
                                        date on which the Dividend Shares are
                                        awarded to Participants in accordance
                                        with Rule 8 of the Plan;

"CALCULATION DATE"                      the date, being either 1 July or 1
                                        January (or such other date as may be
                                        determined by the Directors) following
                                        the successive monthly acquisitions of
                                        Partnership Shares by the Trustee on
                                        behalf of Participants using Partnership
                                        Share Money;

"CHANGE OF CONTROL                      means an event deemed to have taken
                                        place if: (i) a third person, including
                                        a "group" as defined in Section 13(d)(3)
                                        of the Securities Exchange Act of 1934,
                                        acquire Shares of the Corporation having
                                        20% or more of the total number of votes
                                        that may be cast for the

                                       3
<PAGE>

                                        election of Directors of the Company; or
                                        (ii) as the result of any cash tender or
                                        exchange offer, merger or other business
                                        combination, sale of assets or contested
                                        election, or any combination of the
                                        foregoing transactions (a
                                        "Transaction"), the persons who were
                                        directors of the Company before the
                                        Transaction shall cease to constitute a
                                        majority of the Board of Directors of
                                        the Company or any successor to the
                                        Company;

"THE COMPANY"                           Kimberly-Clark Corporation registered in
                                        the State of Delaware U.S.A;

"CONTROL"                               in relation to a corporate body, the
                                        power of a person to secure by the
                                        holding of shares or the possession of
                                        voting power that the affairs of that
                                        corporate body are conducted in
                                        accordance with the wishes of that
                                        person;

"DEALING DAY"                           a day on which the New York Stock
                                        Exchange is open for the transaction of
                                        business;

"THE DIRECTORS"                         the Shareplus Management Committee
                                        including the European HR Policy
                                        Council;

"DIVIDEND SHARES"                       Shares which are awarded to Participants
                                        under Rule 8.1 and held by the Trustee
                                        upon the terms of the Plan;

"ELIGIBLE EMPLOYEE"                     any person who is a full-time or
                                        part-time employee of a Participating
                                        Company including persons who have been
                                        temporarily transferred to work in
                                        another country but continue to be paid
                                        by the Participating Company;

"GROUP"                                 the Participating Company by which the
                                        Participant is employed and any other
                                        Participating Company;

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<PAGE>

"HOLDING PERIOD"                        in relation to Partnership Shares, the
                                        period of twelve months commencing on
                                        the appropriate Calculation Date;

"JOINTLY OWNED COMPANY"                 a company of which 50% of the issued
                                        share capital is owned by the Company
                                        and 50% is owned by another company and
                                        which is not under the Control of either
                                        company; this expression includes a
                                        company which is controlled by a Jointly
                                        Owned Company;

"MARKET VALUE"                          in relation to a Share on any date, if
                                        and so long as the Shares are listed on
                                        the New York Stock Exchange, its middle
                                        market quotation on the immediately
                                        preceding Dealing Day;

"MATCHING SHARES"                       Shares which are awarded to an Eligible
                                        Employee under Rule 5 and held by the
                                        Trustee upon the terms of the Plan;

"MINIMUM MONTHLY SUBSCRIPTION"          in relation to any invitation, the local
                                        currency equivalent of $15 (calculated
                                        at the closing exchange rate quoted in
                                        the Financial Times on the date of
                                        deduction) or such other amount as the
                                        Directors may determine in the event of
                                        a significant change in exchange rates;

"NOTICE OF AWARD"                       a notice of award of Partnership,
                                        Matching or Dividend Shares in such form
                                        as determined by the Trustee.

"PARTICIPANT"                           an Eligible Employee who has entered
                                        into a Partnership Share Agreement to
                                        participate in the Plan;

                                       5
<PAGE>

"PARTICIPATING COMPANY"                 any Subsidiary or Jointly Owned Company
                                        which has been designated by the
                                        Directors as a Participating Company;

"PARTNERSHIP SHARES"                    Shares which are acquired by or on
                                        behalf of Eligible Employees under Rule
                                        3 and held by the Trustee on the terms
                                        of the Plan;

"PARTNERSHIP SHARE AGREEMENT"           An agreement included in the application
                                        form as determined by the Directors from
                                        time to time;

"PARTNERSHIP SHARE MONEY"               the deduction made from a Participant's
                                        Salary in accordance with the
                                        Partnership Share Agreement before it is
                                        used to acquire Partnership Shares on
                                        his behalf;

"PLAN"                                  Kimberly-Clark Shareplus in its present
                                        form, or as from time to time altered in
                                        accordance with its Rules;

"PLAN SHARES"                           Shares held by the Trustees upon the
                                        terms of the Plan on behalf of the
                                        Participants comprising Partnership,
                                        Matching and Dividend Shares;

"RULES"                                 the rules of the Plan (and "Rule" shall
                                        be construed accordingly) including the
                                        Schedules;

"SALARY"                                basic pay as defined in the country in
                                        which the Eligible Employee is employed,
                                        but excluding bonuses and employee
                                        benefits;

"SHARE"                                 a share (including for the avoidance of
                                        doubt a fraction of a share) of common
                                        stock in the Company;

                                       6
<PAGE>

"SUBSIDIARY"                            a company which is under the Control of
                                        the Company;

"TRUST"                                 the Kimberly-Clark Employee Share Trust
                                        (Jersey) or the Kimberly-Clark Employee
                                        Share Trust (UK) as determined by the
                                        Directors;

"TRUSTEE"                               the Trustees of the Kimberly-Clark
                                        Employee Share Trust (Jersey) or the
                                        Trustees of the Kimberly-Clark Employee
                                        Share Trust (UK) as the case may be;

References to any statutory provision are to that provision as amended or
re-enacted from time to time and, unless the context otherwise requires, words
in the singular include the plural (and vice versa) and words importing the
masculine shall include the feminine (and vice versa).

PART ONE - PARTNERSHIP SHARES

2 INVITATIONS TO ACQUIRE PARTNERSHIP SHARES

         2.1      When the Directors have decided to operate the Plan by
                  inviting Eligible Employees to acquire Partnership Shares, an
                  invitation shall be issued to each Eligible Employee inviting
                  him to enter into an agreement with the Company by signing and
                  returning as directed the accompanying Partnership Share
                  Agreement duly completed and signed.

                  An employee who starts employment with a Participating Company
                  will be given an invitation as soon as administratively
                  possible after the date of commencement of his employment.

                  The invitation shall specify:

                  2.1.1    whether the Directors have determined to offer
                           Matching Shares to Eligible Employees who enter into
                           a Partnership Share Agreement; and

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<PAGE>

                  2.1.2    the basis on which such Matching Shares will be
                           awarded;

         2.2      The Company may specify the maximum number of Shares to be
                  included in an offer of Partnership Shares.

                  2.2.1    The Partnership Share Agreement shall contain an
                           undertaking by the Company to notify each Eligible
                           Employee of any restriction on the number of Shares
                           to be included in an offer. This notification shall
                           be given before the deduction of the Partnership
                           Share Money relating to the offer.

         2.3      A Partnership Share Agreement entered into in accordance with
                  this Rule 2 shall form the binding agreement between the
                  Eligible Employee and the Company:

                  2.3.1    to permit the Company to deduct from his net Salary
                           (i.e. after deduction of tax and social security
                           contributions) each month an amount which is not less
                           than the Minimum Monthly Subscription nor more than
                           4% of his gross Salary;

                           PROVIDED THAT if the Minimum Monthly Subscription is
                           more than 4% of the gross salary of the Eligible
                           Employee, the deduction from his Salary will be the
                           amount of the Minimum Monthly Subscription.

                  2.3.2    to permit the Company to transfer to the Trustee the
                           sum deducted under rule 2.3.1.

                  2.3.3    to permit the Trustee to use the sum in rule 2.3.1 to
                           acquire Partnership Shares on behalf of the Eligible
                           Employee and to hold them in accordance with the
                           Rules.

         2.4      A Partnership Share Agreement shall include a provision
                  allowing the Participant, by written notice to the Company, to
                  stop the deductions from his Salary with effect from a date
                  specified in the notice. Following such a notice, the
                  Participant may direct the Company to re-start the deductions
                  from his

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                  Salary, provided that the deductions that have been missed in
                  the interim period may not be made up.

         2.5      A Partnership Share Agreement may provide for Participants to
                  vary the amount deducted from Salary.

         2.6      A maximum of two events under rules 2.4 and 2.5 (stopping,
                  restarting and varying contributions) is permitted in each
                  calendar year, unless the Company in its absolute discretion
                  decides to permit additional applications of rules 2.4 or 2.5.

3 ACQUISITION OF PARTNERSHIP SHARES

         3.1      All Partnership Share Money deducted by the Company in
                  accordance with the Partnership Share Agreement entered into
                  under Rule 2.1 shall be transferred directly to the Trustees.
                  Within 30 days after the Partnership Share Money was deducted
                  from Participants' Salaries the Trustees shall use it in the
                  purchase of, allocation or subscription for Partnership Shares
                  on behalf of Participants. The Trustees will send at least
                  once in every calendar year a Notice of Award to each
                  Participant showing the number of Shares acquired for him.

         3.2      The number of Partnership Shares to be acquired on behalf of
                  each Participant shall be determined in accordance with the
                  Market Value of the Partnership Shares on the Acquisition
                  Date.

         3.3      If any Partnership Share Money remains after the acquisition,
                  it may be retained by the Trustees to the Participant's
                  account and added to the next amount of Partnership Share
                  Money deducted from his Salary.

         3.4      If the Trustees deposit the Partnership Share Money in an
                  interest-bearing account, any interest earned will not become
                  the entitlement of the Participant but will be used to defray
                  the expenses of the Trust.

         3.5      A Participant may withdraw any or all of his Partnership
                  Shares from the Plan at any time. He may direct the Trustees
                  to transfer to him the legal ownership

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                  of the Partnership Shares; he may also direct the Trustees to
                  transfer to him any Partnership Share Money held on his
                  behalf. If before the end of the Holding Period he sells or
                  withdraws from the Plan the Partnership Shares, he will lose
                  any entitlement to receive any corresponding Matching Shares
                  unless Rule 4.3 or 4.4 applies.

4 CESSATION OF EMPLOYMENT

         4.1      In the event of a Participant ceasing to be employed by the
                  Group in any circumstances the Directors shall ensure that his
                  Partnership Shares and any Partnership Share Money held by the
                  Trustee on his behalf are transferred to him by the Trustee as
                  soon as practicable after such cessation; or he may ask the
                  Trustee to sell his Shares and send him the cash proceeds
                  after deducting the expenses of sale.

         4.2      Unless Rule 4.3 or 4.4 applies, in the event of a Participant
                  ceasing to be employed in the Group before the end of the
                  Holding Period he will lose any entitlement to receive any
                  corresponding Matching Shares. In the event of a Participant
                  ceasing to be employed in the Group for any reason before the
                  Calculation Date, he will lose any entitlement to receive any
                  corresponding Matching Shares.

         4.3      In the event of a Participant ceasing to be employed by the
                  Group during the Holding Period by reason of:

                  4.3.1    injury or disability, (in each case as defined in the
                           country in which the Participant is employed); or

                  4.3.2    redundancy or its equivalent in accordance with the
                           laws and practices of the country in which the
                           Participant is employed, and as determined by the
                           Company

                  4.3.3    a change of Control or other circumstances resulting
                           in the Participating Company ceasing to be a member
                           of the Group; or

                  4.3.4    the sale of a business or part of a business of a
                           Participating Company in such circumstances that
                           employees retain their existing employment

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                           rights in accordance with the legislation in their
                           country of residence; or

                  4.3.5    retirement in accordance with the laws and practices
                           of the country in which the Participant is employed;
                           or

                  4.3.6    death

                  the Holding Period will come to an end on the date of
                  cessation and he will receive the corresponding Matching
                  Shares on that date in accordance with Rule 5.2.

         4.4      In the event of a Participant ceasing to be employed by a
                  Participating Company in such circumstances that he then
                  commences employment with the Company or a Subsidiary in
                  another country, the Holding Period will come to an end on the
                  date of cessation and at the discretion of the Directors he
                  will receive the corresponding Matching Shares on that date in
                  accordance with Rule 5.2.

         4.5      When a Participant receives Matching Shares in the
                  circumstances set out in Rules 4.3 or 4.4, he must immediately
                  remove them from the Plan.

PART TWO - MATCHING SHARES

5 AWARD OF MATCHING SHARES

         5.1      When the Directors have decided to operate the Plan by
                  awarding Matching Shares on the same terms to Eligible
                  Employees who enter into a Partnership Share Agreement under
                  Rule 2, the invitation issued to each Eligible Employee under
                  Rule 2 shall contain information about such decision,
                  including the number of Matching Shares that will be
                  appropriated for each Partnership Share.

         5.2      On the day following the end of the Holding Period, the
                  Directors will award to Participants on whose behalf the
                  Trustees hold Partnership Shares,

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                  Matching Shares on the basis set out in the invitation. The
                  Matching Shares awarded will then form part of the Plan
                  Shares.

         5.3      Where Matching Shares are awarded under this Rule 5 the
                  Trustees will send at least once in every calendar year a
                  Notice of Award to each Participant to whom such Shares have
                  been awarded.

6 TRANSFER OF MATCHING SHARES

         6.1      In accordance with the Partnership Share Agreement entered
                  into between a Participant and the Company under Rule 2, a
                  Participant may direct the Trustee to transfer the legal
                  ownership of his Matching Shares to him at any date after the
                  end of the Holding Period.

         6.2      The Participating Company will be entitled to withhold and the
                  Participant will be obligated to pay, the amount of tax or any
                  social security contributions or other regulatory payments
                  which may be payable by or on behalf or such Participant in
                  connection with the transfer of Plan Shares. The Trustees may
                  establish appropriate procedures to provide for any such
                  payment including, in lieu of transferring some or all of the
                  Shares to which a Participant is entitled, the sale of such
                  proportion thereof as shall equate to the amount of the
                  liability, the payment of such amount to the relevant
                  authority and the transfer of the resulting number of Shares
                  to the Participant.

         6.3      Any direction given by a Participant under Rule 6.1 must be in
                  the form as notified by the Trustee, adapted as appropriate.
                  The Trustee will transfer the relevant Matching Shares as soon
                  as practicable after the receipt of the direction.

7 CESSATION OF EMPLOYMENT AND WITHDRAWAL OF MATCHING SHARES FROM THE PLAN

         7.1      In the event of a Participant ceasing to be employed by the
                  Group in any circumstances, he must either (a) ask the Trustee
                  to forward to him the Share Certificate in respect of his
                  Matching Shares; or (b) he may ask the Trustee to sell his
                  Matching Shares and send him the cash proceeds after deducting
                  the expenses of sale.

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<PAGE>

PART THREE - DIVIDEND SHARES

8 REINVESTMENT OF DIVIDENDS

         8.1      All dividends payable in respect of Plan Shares shall be paid
                  by the Company directly to the Trustee. The Trustee shall,
                  within 30 days of their receipt of such dividends net of any
                  taxes which may be due under U.S. law on the dividends, use
                  them to acquire further Shares for awarding to Participants as
                  Dividend Shares.

         8.2      For the purposes of Rule 8.1 'acquire' shall mean subscribe
                  for, allocate or purchase.

         8.3      Where Dividend Shares have been acquired under Rule 8.1 the
                  Trustee will send a Notice of Award to each Participant to
                  whom such Dividend Shares have been awarded at least once in
                  every calendar year.

9 TRANSFER OF DIVIDEND SHARES

         9.1      In accordance with the Partnership Share Agreement entered
                  into between a Participant and the Company under Rule 2.1 a
                  Participant may direct the Trustee to transfer the legal
                  ownership of his Dividend Shares to him at any time.

         9.2      Any direction given by a Participant under Rule 9.1 must be in
                  the form as notified by the Trustee, adapted as appropriate.
                  The Trustee will transfer the relevant Dividend Shares as soon
                  as practicable after receipt of the direction.

10 CESSATION OF EMPLOYMENT AND WITHDRAWAL OF DIVIDEND SHARES FROM THE PLAN

         10.1     In the event of a Participant ceasing to be employed by a
                  Participating Company in any circumstances, he must either (a)
                  ask the Trustees to forward to him the Share Certificate in
                  respect of his Shares; or (b) ask the Trustees to sell his
                  Dividend Shares and send him the cash proceeds after deducting
                  the expenses of sale.

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PART FOUR - GENERAL

11 ACQUISITION OF SHARES FOR AWARD

         11.1     The Trustee may upon the direction of the Directors, purchase
                  Shares on the Acquisition Date or from time to time until the
                  Dealing Day preceding the relevant Award Date. Such Shares may
                  be purchased on the New York Stock Exchange.

         11.2     The Trustee, at the direction of the Directors, may subscribe
                  for Shares for awarding to Eligible Employees under the Plan
                  on the relevant Award Date and the price per Share at which
                  the Trustees shall subscribe for such Shares shall be the
                  Market Value of a Share on the date of subscription.

         11.3     Contributions to be made by the Company and each Participating
                  Company to the Trustee to support any purchase of or
                  subscription for Shares to be made by the Trustee for award on
                  any Award Date shall be paid not later than the Dealing Day
                  immediately prior to the relevant Award Date.

         11.4     Certificates shall be issued by the Company in respect of Plan
                  Shares and shall be delivered to or to the order of the
                  Trustee.

12 ISSUE OF SHARES AND DIVIDENDS

         12.1     All Shares issued under the Plan shall as to voting, dividend,
                  transfer and other rights (including those arising on a
                  liquidation) rank equally in all respects with the Shares then
                  in issue.

         12.2     The Participant will receive all rights as to voting, dividend
                  transfer and other rights in respect of Partnership Shares
                  from the Acquisition Date and in respect of Matching Shares
                  and Dividend Shares on the respective Award Date.

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<PAGE>

         12.3     If the Trustees receive any foreign cash dividend in respect
                  of Plan Shares, they shall give the Participant notice of the
                  amount of any foreign tax already deducted.

13 TAKEOVERS

         13.1     In the event of a Change of Control of the Company, the
                  Directors will give notice to all participants as soon as
                  practicable.

         13.2     A Participant may then direct the Trustees to accept an offer
                  of shares for any of his Plan Shares to the intent that, if
                  the offer is accepted, the new holding of shares in the
                  acquiring company equates to the original holding of Plan
                  Shares.

14 TAX AND SOCIAL SECURITY

         If

         (a)      the receipt of Matched Shares and/or Dividend Shares or

         (b)      the sale of Plan Shares

         results in a liability to income tax, capital gains tax or social
         security contributions (or the local equivalent of these) in the
         Participant's country of employment and the legislation in that country
         requires tax or social security contributions to be withheld, the
         Participating Company will make the appropriate deductions. If there is
         no such requirement in that country it is the responsibility of the
         Participant to settle these liabilities with the appropriate
         authorities.

15 STAMP DUTY

         Any stamp duty or other expenses involved in any transfer of Shares by
         the Trustee shall be payable by the Participant concerned or the
         purchaser from the Participant concerned.

                                       15
<PAGE>

16 DISPUTES

         The decision of the Directors in any dispute or question affecting any
         Eligible Employee or Participant under the Plan shall be final and
         conclusive.

17 RIGHTS ON TERMINATION OF EMPLOYMENT

         In no circumstances shall any person who has ceased to be an employee
         of the Company or any Subsidiary or any member of the Group by reason
         of dismissal or otherwise howsoever or who is under notice of
         termination of his employment be entitled to claim as against any
         Participating Company or Subsidiary or the Group or the Trustee any
         compensation for or in respect of any consequential loss he may suffer
         by reason of the operation of the terms of the Plan.

18 ADMINISTRATION AND ALTERATIONS

         18.1     The Directors shall have power from time to time to make and
                  vary such regulations (not being inconsistent with the Plan)
                  for the implementation and administration of the Plan as it
                  thinks fit.

         18.2     The Directors shall have power from time to time exercisable
                  by resolution to agree that any Subsidiary and any Jointly
                  Owned Company shall become a Participating Company for the
                  purposes of the Plan. Any such member of the Group shall cease
                  to be a Participating Company as from such date as the
                  Directors may by resolution determine and shall be deemed not
                  to be a Participating Company as from the date on which it
                  ceases to be a Subsidiary or Jointly Owned Company.

         18.3     In the event of any dispute as to whether a person is or is
                  not an Eligible Employee or as to any rights or obligations of
                  any person hereunder or any question concerning the
                  construction or effect hereto or any other question in
                  connection with the Plan, the Directors shall determine the
                  same (other than in the case of a matter to be certified by
                  the auditors in accordance with these Rules) and such
                  determination shall be final and binding on all persons.

                                       16
<PAGE>

         18.4     The Directors may resolve to alter the Rules as may be
                  necessary or desirable to take account of relevant overseas
                  legislation to acquire or maintain beneficial tax treatment.

         18.5     The Rules of the Plan may be altered by resolution of the
                  Directors provided that:

                  18.5.1   no alteration which would adversely affect the rights
                           of any Participant in respect of Plan Shares already
                           awarded to him or acquired on his behalf shall be
                           effective; and

                  18.5.2   no alteration may be made which would alter the
                           fundamental purpose of the Plan.

         18.6     The cost of the preparation and operation of the Plan shall be
                  borne by the Company.

19 ERRORS AND OMISSIONS

         19.1     The Company, the relevant Participating Company and where
                  appropriate the Trustee may do all such acts and things as
                  they may agree to rectify any error or omission, including any
                  error or omission as a result of which any Eligible Employee
                  is not accounted for on the award of Plan Shares
                  notwithstanding that such action may fall outside the time
                  limits or otherwise conflict with the provisions of the Rules
                  provided always that the limits set out in Rule 1 would not
                  thereby be exceeded.

20 NOTICES

         20.1     Save as otherwise provided herein, any notice or communication
                  to be given by the Company or the Trustee to any Eligible
                  Employee or Participant may be given by personal delivery or
                  by sending the same by ordinary post to his last known address
                  and where a notice or communication is sent by post it shall
                  be deemed to have been received 72 hours after the same was
                  put into the post properly addressed and stamped. All
                  notifications, documents, option or

                                       17
<PAGE>

                  share certificates and other communications sent by post as
                  aforesaid will be sent at the risk of the Eligible Employee or
                  Participant concerned and the Company, its Subsidiaries, any
                  Jointly Owned Company, any other employing company and the
                  Trustee shall have no liability whatsoever to any Eligible
                  Employee or Participant in respect of any notification,
                  document, option or share certificate or other communication
                  so given, sent or made and nor shall the Company, any of its
                  Subsidiaries any other employing company or the Trustee be
                  concerned to see that any Eligible Employee or Participant
                  actually receives it.

         20.2     Save as otherwise provided herein, any notice or communication
                  given by an Eligible Employee or a Participant to the Company
                  or the Trustee shall be delivered or sent to the Company or
                  the Trustee at its registered office (or at such other place
                  or places as the Directors or the Trustee may from time to
                  time determine and notify to Eligible Employees and
                  Participants) and be effective upon receipt.

21 GENERAL

         21.1     The Directors may decide from time to time to suspend or cease
                  operation of the Plan. Benefits awarded under the Plan do not
                  constitute remuneration or an entitlement to future
                  participation in the Plan.

         21.2     The Plan shall continue for a period of ten years commencing
                  on the date of the Trust Deed unless terminated earlier by
                  resolution of the Directors.

22 GOVERNING LAW

         The Plan is governed by and shall be construed in accordance with the
         laws of England.

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<PAGE>

                      KIMBERLY-CLARK SHAREPLUS ("THE PLAN")

                               SCHEDULE - BELGIUM

The Plan shall be modified in respect of Matching Shares awarded to or to be
awarded to a person resident for tax purposes in Belgium as provided for in this
Schedule.

Words and phrases in the Plan shall bear the same meaning in this Schedule
except as otherwise provided.

In Rule 6.1, delete the wording and replace with:

                  "6.1 "In accordance with the Partnership Share Agreement
                  entered into between a Participant and the Company under Rule
                  2, the Participant agrees that the Trustees will hold his
                  Matching Shares until the expiration of two years following
                  the date on which the Matching Shares were awarded to him."

                                       19
<PAGE>

                      KIMBERLY-CLARK SHAREPLUS ("THE PLAN")

                                SCHEDULE - ITALY

The Plan shall be modified in respect of Rule 21.2 and the definition of "Market
Value" in respect of Matching Shares awarded to or to be awarded to a person
resident for tax purposes in Italy as provided for in this Schedule.

Words and phrases in the Plan shall bear the same meaning in this Schedule
except as otherwise provided.

In Rule 1, the definition of "Market Value" shall be varied as follows:

Delete "its middle market quotation on the immediately preceding Dealing Day"
and replace with "the average price of the immediately preceding thirty Dealing
Days".

Rules 21.2 shall be renumbered Rule 21.3 and a new Rule 21.2 shall be inserted
as follows:

                  "21.2 "The number of Matching Shares awarded to participants
                  under the Plan has been calculated taking into consideration
                  the influence of the said amount over the employment economic
                  figures provided by their employment and, in particular, the
                  severance payments including the end-of service allowance
                  (TFR). Participants will not be entitled to claim any
                  additional payments or a different calculation of the
                  above-mentioned figures."

                                       20
<PAGE>

                      KIMBERLY-CLARK SHAREPLUS ("THE PLAN")

                              SCHEDULE - UK TOP-UP

The Plan shall be modified in respect of the definition of "Eligible Employee"
in respect of a person resident for tax purposes in the UK, as provided for in
this Schedule.

Words and phrases in the Plan shall bear the same meaning in this Schedule
except as otherwise provided.

In Rule 1, the definition of "Eligible Employee" shall be varied as follows:

Delete the wording in shareplus and replace with:

"(a)                                    any person who is a full-time or
                                        part-time employee of a Participating
                                        Company including persons who have been
                                        temporarily transferred to work in
                                        another country but continue to be paid
                                        by the Participating Company; or

(b)                                     has participated or has agreed to
                                        participate in shareplus UK by saving
                                        the maximum amount permitted under that
                                        Plan as defined in its Rules under
                                        "Partnership Share Limit".

In Rule 4.3.5 delete the wording and replace with:

"retirement on or after reaching age 50".

                                       21

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