Document:

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                                                                    EXHIBIT 4(C)

                         THE TIMKEN COMPANY SAVINGS PLAN
                      FOR TORRINGTON BARGAINING ASSOCIATES

                        (AS EFFECTIVE FEBRUARY 16, 2003)

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                         THE TIMKEN COMPANY SAVINGS PLAN

                      FOR TORRINGTON BARGAINING ASSOCIATES

                                    PREAMBLE

The Timken Company hereby establishes the Timken Company Savings Plan for
Torrington Bargaining Associates (the "Plan") effective as of February 1, 2003.
The Plan covers Eligible Employees of United Auto Workers Local 1645. The
effective date of the Plan coincides with the purchase of The Torrington Company
from Ingersoll-Rand Company.

The Plan is a profit-sharing plan intended to meet the requirements of Section
401(a) of the Internal Revenue Code of 1986 and the Employee Retirement Income
Security Act of 1974 and subsequent legislation and the Plan and contributions
are expressly conditioned upon initial qualification thereunder.

The provisions of this Plan shall apply only to an Employee who is in the employ
of the Company or Participating Subsidiary on or after the Effective Date. The
benefit payable to or on behalf of a Participant included under the Plan in
accordance with the following provisions shall not be affected by the terms of
any amendment to the Plan adopted after such Participant's employment
terminates, unless the amendment expressly provides otherwise.

The Plan is intended to be a qualified plan under Section 401(a) of the Internal
Revenue Code, and its provisions are to be interpreted consistent with such
intent.

This Plan document is an amendment and restatement of the Plan document signed
on February 21, 2003.

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                         THE TIMKEN COMPANY SAVINGS PLAN

                      FOR TORRINGTON BARGAINING ASSOCIATES

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION 1 -- DEFINITIONS                                                      PAGE
<S>                                                                           <C>
1.1   Affiliated Company ...............................................       8
1.2   Alternate Payee ..................................................       8
1.3   Base Pay .........................................................       8
1.4   Before-Tax Contribution ..........................................       8
1.5   Beneficiary ......................................................       6
1.6   Benefit Commencement Date ........................................       9
1.7   Board ............................................................       9
1.8   Code .............................................................       9
1.9   Company ..........................................................       9
1.10  Company Matching Contributions ...................................       9
1.11  Company Stock ....................................................       9
1.12  Compensation .....................................................       9
1.13  Compensation Deferral Limit ......................................      10
1.14  Contribution Percentage ..........................................      10
1.15  Deferral Percentage ..............................................      11
1.16  Determination Year ...............................................      11
1.17  Disability .......................................................      11
1.18  Early Retirement Date ............................................      11
1.19  Effective Date ...................................................      11
1.20  Eligible Employee ................................................      11
1.21  Employee .........................................................      12
1.22  ERISA ............................................................      12
1.23  Forfeiture .......................................................      12
1.24  Highly Compensated Employee ......................................      12
1.25  Hour of Service ..................................................      13
1.26  Leased Employee ..................................................      13
1.27  Leave of Absence .................................................      13
1.28  Limitation Year ..................................................      13
1.29  Look-Back Year ...................................................      13
1.30  Nonhighly Compensated Employee ...................................      13
1.31  Normal Retirement Date ...........................................      13
1.32  Participant ......................................................      13
1.33  Participant Contribution .........................................      14
1.34  Participating Subsidiary .........................................      14
</TABLE>

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<TABLE>
<S>                                                                           <C>
1.35  Period of Severance ..............................................      14
1.36  Plan .............................................................      14
1.37  Plan Administrator ...............................................      14
1.38  Plan Year ........................................................      14
1.39  Qualified Domestic Relations Order ...............................      14
1.40  Retirement Date ..................................................      14
1.41  Rollover Contribution ............................................      14
1.42  Salary Deferral Agreement ........................................      15
1.43  Separation Date ..................................................      15
1.44  Service ..........................................................      16
1.45  Spouse ...........................................................      17
1.46  Total Account ....................................................      17
1.47  Trustee ..........................................................      17
1.48  Trust Fund .......................................................      17
1.49  Valuation Date ...................................................      17
1.50  Vested ...........................................................      17
1.51  Year of Service ..................................................      17

SECTION 2 -- PARTICIPATION

2.1   Participation Requirements .......................................      18
2.2   Application to Participate .......................................      18
2.3   Effective Date of Elections ......................................      18
2.4   Participation Upon Reemployment ..................................      18
2.5   Termination of Participation .....................................      19
2.6   Veteran's Rights .................................................      19

SECTION 3 -- PARTICIPANT CONTRIBUTIONS

3.1   Participant Contributions ........................................      20
3.2   Increase or Decrease in Rate of Contributions ....................      20
3.3   Suspension and Resumption of Contributions .......................      20
3.4   Effective Date of Elections ......................................      21
3.5   Rollover Contributions ...........................................      21
3.6   Maximum Amount of Salary Deferral ................................      22

SECTION 4 -- COMPANY CONTRIBUTIONS

4.2   Company Matching Contributions ...................................      24
4.3   Form of Company Matching Contribution ............................      24
4.4   Company Matching Contributions Reduced by Forfeitures ............      24
4.5   Establishment of Participant Accounts ............................      25
4.6   Forfeitures ......................................................      25
</TABLE>

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<PAGE>

<TABLE>
<S>                                                                          <C>
4.7   Nondiscrimination Requirements and Maximum Annual Additions .....      25
4.8   Adjustment to Actual Deferral Percentage ........................      27
4.9   Aggregation of Plans ............................................      29
4.10  Disaggregation of Plans .........................................      30
4.11  Code Section 415 Limits .........................................      30

SECTION 5 -- INVESTMENT PROVISIONS

     5.1   Description of Funds .......................................      32
     5.2   Investment Election ........................................      32
     5.3   Change in Investment Election ..............................      33
     5.4   Responsibility of Participant in Making Investment
           Elections ..................................................      33
     5.5   Investment of Company Matching Contributions ...............      34
     5.6   Procedure as of Each Valuation Date ........................      34
     5.7   Transfer of Funds ..........................................      34
     5.8   Stock Rights, Stock Dividends and Stock Splits .............      35
     5.9   Transfers Affecting Company Stock ..........................      35
     5.10  Blackout Period ............................................      35
     5.11  Definition of Blackout Period ..............................      36

SECTION 6 -- VESTING

     6.1   Vesting of Participant Contributions .......................      37
     6.2   Vesting of Company Matching Contributions ..................      37
     6.3   Forfeitures ................................................      37

SECTION 7 -- DISTRIBUTIONS

     7.1   Distribution on Retirement, Disability, or other
           Termination of Service .....................................      39
     7.2   Lump Sum Distributions .....................................      41
     7.3   Distributions on Death .....................................      41
     7.4   Investment of Deferred Distributions .......................      43
     7.5   Proof of Death .............................................      43
     7.6   Loan as a Distribution .....................................      44
     7.7   Distribution to Alternate Payee ............................      44
     7.8   Notice to Payee ............................................      45
     7.9   Restrictions on Distributions ..............................      45
     7.10  Eligible Rollover Distribution .............................      45
     7.11  Required Minimum Distributions .............................      46

SECTION 8 -- WITHDRAWALS AND LOANS DURING EMPLOYMENT

     8.1   Discretionary Withdrawals ..................................      51
     8.2   Hardship Withdrawals .......................................      51
</TABLE>

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<TABLE>
<S>                                                                          <C>
     8.3   Restoration of Withdrawals .................................      53
     8.4   Timing of Withdrawals ......................................      53
     8.5   Loans ......................................................      53
     8.6   Timing of Loans ............................................      55
     8.7   Compliance With Law ........................................      55
     8.8   Trading Restrictions .......................................      55
     8.9   Combined Limit on Withdrawals and Loans ....................      55

SECTION 9 -- ADMINISTRATION OF THE PLAN

     9.1   The Plan Administrator .....................................      56
     9.2   Powers of the Plan Administrator ...........................      56
     9.3   Plan Administration ........................................      57
     9.4   The Plan is a Voluntary Act by the Company .................      59
     9.5   Indemnification ............................................      59
     9.6   Fiduciary Insurance ........................................      60
     9.7   Filings with the Plan Administrator ........................      60
     9.8   Payee Unknown ..............................................      60
     9.9   Reliance on Statements of Participants and Beneficiaries ...      61
     9.10  Distribution to Minors and Incapacitated Payees ............      61

SECTION 10 -- ADMINISTRATION OF THE TRUST

     10.1  Trust Agreement ............................................      62
     10.2  Provisions of the Trust Agreement ..........................      62
     10.3  Exclusive Benefit of Participants ..........................      62
     10.4  Directions of the Plan Administrator .......................      62
     10.5  Coordination of Plan and Trust Agreement ...................      62
     10.6  Pension Investment Committee ...............................      62
     10.7  Return of Contributions ....................................      63

SECTION 11 -- AMENDMENT, TERMINATION OR MERGER OF THE PLAN

     11.1  Right to Amend .............................................      64
     11.2  Changes in Plan Benefits ...................................      64
     11.3  Right to Terminate .........................................      64
     11.4  Notice of Termination ......................................      65
     11.5  Termination of Trust .......................................      65
     11.6  Discontinuance of Contributions ............................      65
     11.7  Merger of Plans ............................................      65

SECTION 12 -- MISCELLANEOUS PROVISIONS

     12.1  Gender .....................................................      66
</TABLE>

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<TABLE>
<S>                                                                          <C>
     12.2  Investments and Expenses ...................................      66
     12.3  Voting Rights ..............................................      66
     12.4  Statements of Accounts .....................................      66
     12.5  Nonalienability of Benefits ................................      66
     12.6  Acquisitions and Divestitures ..............................      67
     12.7  Change in Operations .......................................      68
     12.8  Limitation on Distributions ................................      68
     12.9  Limitation on Reversion of Contributions ...................      68
     12.10 Voluntary Plan .............................................      69
     12.11 Limitation of Third Party Rights ...........................      69
     12.12 Invalid Provisions .........................................      69
     12.13 One Plan ...................................................      69
     12.14 Use and Form of Words ......................................      70
     12.15 Headings ...................................................      70
     12.16 Missing Persons ............................................      70
     12.17 Inability to Receive Benefits ..............................      70
     12.18 Governing Law ..............................................      71
</TABLE>

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<PAGE>

                                    SECTION 1

                                   DEFINITIONS

1.1   "AFFILIATED COMPANY" means any of the following:

      (a)   Any corporation which is a member of a controlled group of
            corporations, which includes the Company, determined under the
            provisions of Section 414(b) of the Code;

      (b)   Any trade or business (whether or not incorporated) which is under
            common control (as defined in Section 414(c) of the Code) with the
            Company;

      (c)   Any organization (whether or not incorporated) which is a member of
            an affiliated service group (as defined in Section 414(m) of the
            Code) which includes the Company; and

      (d)   Any other entity required to be aggregated with the Company pursuant
            to regulations under Section 414(m) of the Code.

      A corporation, trade, or business, or member of an affiliated service
      group shall be treated as an Affiliated Company only while it is a member
      of the group.

1.2   "ALTERNATE PAYEE" means any spouse, former spouse, child, or other
      dependent of a Participant recognized by a Qualified Domestic Relations
      Order as having a right to receive all, or a portion of, the Participant's
      nonforfeitable benefits under the Plan.

1.3   [RESERVED]

1.4   "BEFORE-TAX CONTRIBUTION" means a contribution to the Trust Fund made on
      the behalf of a Participant pursuant to a Salary Deferral Agreement and
      which is not included in the Participant's gross income for Federal income
      tax purposes for the year in which such contribution was made.

1.5   "BENEFICIARY" means any person or persons (including a trust established
      for the benefit of such person or persons) designated by a Participant or
      by the terms of the Plan as provided in Section 7.3(a), who is or who may
      become entitled to receive benefits from the Plan. Any person who is an
      Alternate Payee shall be considered a Beneficiary for

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      purposes of the Plan.

1.6   "BENEFIT COMMENCEMENT DATE" means the first Valuation Date following the
      date on which all events have occurred which entitle the Participant or
      Beneficiary to a distribution from the Plan in accordance with the
      provisions of Section 7.

1.7   "BOARD" means the Board of Directors of The Timken Company except that any
      action which may be taken by the Board may also be taken by a duly
      authorized officer of The Timken Company.

1.8   "CODE" means the Internal Revenue Code of 1986, as amended from time to
      time. Reference to a specific provision of the Code shall include such
      provision, any valid regulation or ruling promulgated thereunder, and any
      provision of future law that amends, supplements, or supersedes such
      provision.

1.9   "COMPANY" means The Timken Company and its sole participating subsidiary,
      The Torrington Company.

1.10  "COMPANY MATCHING CONTRIBUTIONS" means the total contributions made by the
      Company on behalf of a Participant pursuant to Section 4.1.

1.11  "COMPANY STOCK" means a share or shares of the common stock of The Timken
      Company, which is intended to be qualifying employer securities within the
      meaning of Section 407(d)(5) of ERISA.

1.12  "COMPENSATION" means the total amount of pay, commissions, bonuses
      (whether paid in cash or stock), and wages, including in each case all
      overtime pay, shift differential, vacation pay (but excluding wages paid
      to an Employee for unused vacation), and holiday pay received by the
      Employee from the Company during the Plan Year, but excluding in each case
      all severance pay and termination pay.

      (a)   Compensation also includes the following:

            (i)   In the event an Employee transfers from the employ of the
                  Company to the employ of an Affiliated Company, commissions
                  and bonuses paid by the Company to such former Employee during
                  the Plan Year in which such transfer occurs.

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            (ii)  Contribution made on behalf of an Employee by the Company
                  pursuant to a Salary Deferral Agreement and/or a salary
                  reduction agreement pursuant to a cafeteria plan established
                  under Section 125 of the Code.

      (b)   Compensation does not include other employee benefits, including but
            not limited to:

            (i)   profit sharing arrangements;

            (ii)  rights under any stock purchase plans, insurance program, or
                  any benefits to any of the Employees thereunder;

            (iii) any part of payments which may be made by the Company as a
                  result of its share of employment taxes;

            (iv)  the value or estimated value of any welfare, pension or
                  retirement rights or benefits whatsoever.

      In addition to other applicable limitations set forth in the Plan, and
      notwithstanding any other provision of the Plan to the contrary, the
      annual compensation of each Employee taken into account under the Plan
      shall not exceed $200,000 or such annual compensation limit specified
      under Section 401(a)(17) of the Code including adjustments made by the
      Commissioner of Internal Revenue for increases in the cost of living in
      accordance with Section 401(a)(17)(B) of the Code.

1.13  "COMPENSATION DEFERRAL LIMIT" means, for any Plan Year, the maximum
      percentage (determined in accordance with the provisions of Section 4.6)
      of an Employee's Compensation which may be contributed to the Plan
      pursuant to a Salary Deferral Agreement. The Plan Administrator shall
      establish the Compensation Deferral Limit for each Plan Year for the
      purpose of meeting the nondiscrimination tests of Section 401(k) of the
      Code, and shall apply the limit to such Employees as is necessary to
      ensure compliance with such tests.

1.14  "CONTRIBUTION PERCENTAGE" means, for each Participant, the ratio of any
      Company Matching Contributions made by or on behalf of a Participant for a
      Plan Year, to such Participant's Compensation (within the meaning of
      Section 414(s) of the Code) while an Eligible Employee during such Plan
      Year. If more than one plan providing employee contributions or matching
      contributions (within the meaning of Section 401(m) of the

                                       8
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      Code) is maintained by an Employer or Affiliated Employer, the
      Contribution Percentage of any Highly Compensated Employee who
      participates in more than one such plan shall be determined as if all such
      plans were a single plan. Notwithstanding the foregoing, plans shall be
      treated as separate if they are mandatorily disaggregated under Section
      401(k) of the Code.

1.15  "DEFERRAL PERCENTAGE" means, for each Participant, the ratio of any
      Before-Tax Contributions made on behalf of a Participant for a Plan Year,
      to such Participant's Compensation (within the meaning of Section
      415(c)(3) of the Code) while an Eligible Employee during such Plan Year.
      If more than one plan providing a cash or deferred arrangement (within the
      meaning of Section 401(k) of the Code) is maintained by an Employer or
      Affiliated Employer, the Deferral Percentage of any Highly Compensated
      Employee who participates in more than one such plan or arrangement shall
      be determined as if all such plans or arrangements were a single plan or
      arrangement. Notwithstanding the foregoing, plans or arrangements shall be
      treated as separate if they are mandatorily disaggregated under Section
      401(k) of the Code.

1.16  "DETERMINATION YEAR" means the Plan Year that is being tested for purposes
      of determining if the Plan meets the applicable nondiscrimination
      requirements of Code Sections 401(k) and 401(m).

1.17  "DISABILITY" as applied to any Employee means any permanent disability as
      that term is defined in an any permanent disability benefit plan or plans
      maintained by the Company or an Affiliated Company and in which the
      Employee participates, or in the absence of any such plan in which the
      Employee participates, Disability means that the Employee:

            (i)   Has been totally incapacitated by bodily injury or disease so
                  as to be prevented thereby from engaging in any occupation or
                  employment for remuneration or profit,

            (ii)  Such total incapacity shall have continued for a period of six
                  (6) consecutive months, and

            (iii) Such total incapacity will, in the opinion of a qualified
                  physician, be permanent and continue during the remainder of
                  such Employee's life.

      Disability shall not mean, however, any incapacity which was contracted,
      suffered or incurred while the Employee was engaged in, or resulted from
      his having engaged in, a criminal enterprise, or which resulted from his
      habitual drunkenness or addiction to

                                       9
<PAGE>

      narcotics, a self-inflicted injury, or service in the armed forces of any
      country.

1.18  "EARLY RETIREMENT DATE" means the date on which the Participant shall have
      attained age fifty-five (55) or completed fifteen (15) years of Service,
      whichever occurs later.

1.19  "EFFECTIVE DATE" means February 16, 2003.

1.20  "ELIGIBLE EMPLOYEE" means any person who is employed by the Company or any
      Participating Subsidiary and is a member of UAW Local 1645. In no event
      shall any "Leased Employee" be eligible to participate in the Plan.

1.21  "EMPLOYEE" means any employee currently employed by the Company or an
      Affiliated Company. The term "Employee" includes any Leased Employee.

1.22  "ERISA" means the Employee Retirement Income Security Act of 1974, as
      amended from time to time. Reference to a specific provision of ERISA
      shall include such provision, any valid regulation or ruling promulgated
      thereunder, and any provision of future law that amends, supplements, or
      supersedes such provision.

1.23  "FORFEITURE" means Company Matching Contributions that are not fully
      Vested as of a Participant's Separation Date and that are forfeited as
      provided in Section 6.3.

1.24  "HIGHLY COMPENSATED EMPLOYEE" means an Employee who performs service for
      the Company during the Determination Year and who:

      (i)   was a five percent (5%) owner as defined in Section 416(i)(1)(B)(i)
            of the Code, at any time during the Determination Year or the
            Look-Back Year.

      (ii)  received compensation from the Company in excess of $90,000 (as
            adjusted pursuant to Code Section 415(d)) during the Look-back Year.

      For purposes of determining an Employee's compensation under this Section
      1.24, compensation shall mean the Employee's total compensation reportable
      on Form W-2, plus all contributions made on behalf of the Employee by the
      Company or an Affiliated Company pursuant to a Salary Deferral Agreement
      under this Plan (or a similar agreement under any other cash or deferred
      arrangement described in Section 401(k) of the Code) or any salary
      reduction agreement pursuant to a cafeteria plan established under Section
      125 of the Code or pursuant to Section 132(f)(4) of the Code.

                                       10
<PAGE>

1.25  "HOUR OF SERVICE" means each hour for which an Employee is paid or
      entitled to payment for the performance of duties for the Company or an
      Affiliated Company during the Plan Year.

      The determination of Hours of Service shall be in accordance with the
      rules set forth in the United States Department of Labor's Rules and
      Regulations for Minimum Standards for Employee Pension Benefit Plans,
      Section 2530.200b-2(b) and (c), which are incorporated herein by this
      reference.

1.26  "LEASED EMPLOYEE" means any person who renders personal services to an
      Employer or Affiliated Employer and who is described in Section 414(n)(2)
      of the Code by reason of providing such services, other than a person
      described in Section 414(n)(5) of the Code.

1.27  "LEAVE OF ABSENCE" means an absence granted in writing by the Company or
      an Affiliated Company in accordance with the Company's personnel policies
      or as required by law, uniformly applied to all Employees, including but
      not limited to absences for reasons of health, education, jury duty, or
      service in the armed forces of the United States.

1.28  "LIMITATION YEAR" means the calendar year.

1.29  "LOOK-BACK YEAR" means the period of twelve consecutive months immediately
      proceeding the Determination Year. For purposes of determining the Average
      Deferral Percentage and Average Contribution Percentage of Nonhighly
      Compensated Employees, the Plan Administrator may elect, in accordance
      with applicable regulations, that the Look-Back Year shall be the
      Determination Year

1.30  "NONHIGHLY COMPENSATED EMPLOYEE" means an Employee who is not a Highly
      Compensated Employee.

1.31  "NORMAL RETIREMENT DATE" means the date on which the Employee shall have
      attained the age of 65.

1.32  "PARTICIPANT" means an Eligible Employee who has elected to participate in
      the Plan in accordance with the provisions of Section 2. An Eligible
      Employee shall cease to be a Participant in the Plan in accordance with
      the provisions of Section 2.5.

1.33  "PARTICIPANT CONTRIBUTION" means a contribution made by or on behalf of
      the Participant pursuant to Section 3.

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<PAGE>

1.34  "PARTICIPATING SUBSIDIARY" means any Affiliated Company that has adopted
      this Plan with the approval of the Board.

1.35  "PERIOD OF SEVERANCE" means the period beginning on an Employee's
      Separation Date and ending on the date such Employee is again credited
      with an Hour of Service.

      A one-year Period of Severance is any period of twelve consecutive months
      beginning on a Separation Date ai1d any anniversary thereof, provided that
      the former Employee has not performed an Hour of Service for the Company
      or an Affiliated Company at any time during such twelve-month period.

1.36  "PLAN" means the Timken Company Savings Plan for Torrington Bargaining
      Associates, as set forth herein, and as may be amended from time to time.

1.37  "PLAN ADMINISTRATOR" means the Benefits Plan Administrator appointed by
      the Board, as set forth in Section 9.

1.38  "PLAN YEAR" means the calendar year.

1.39  "QUALIFIED DOMESTIC RELATIONS ORDER" means a domestic relations order
      which meets the requirements of Section 414(p) of the Code, as determined
      by the Plan Administrator.

1.40  "RETIREMENT DATE" means Normal Retirement Date, any actual date of
      retirement subsequent to the Normal Retirement Date, or any early
      retirement date under the terms of any qualified retirement plan
      maintained by the Company by which the Participant is covered.

1.41  "ROLLOVER CONTRIBUTION" means a transfer by a Participant to this Plan of
      all or a portion of a distribution to such Participant from a qualified
      plan or individual retirement account, provided the distribution is:

      (a)   an eligible direct rollover distribution within the meaning of the
            first sentence of Section 7.10(a); or

                                       12
<PAGE>

      (b)   rolled over to the Plan within 60 days following the date the
            Eligible Employee receives the distribution from the qualified plan
            or individual retirement account.

1.42  "SALARY DEFERRAL AGREEMENT" means an agreement in the form provided by the
      Plan Administrator in which an Eligible Employee agrees to reduce his
      Compensation earned after the execution of such agreement and to have the
      amount of such reduction contributed by the Company to the Trust Fund on
      his behalf pursuant to Section 401(k) of the Code. An Eligible Employee
      may execute a new Salary Deferral Agreement from time to time pursuant to
      Section 3.2.

1.43  "SEPARATION DATE" means the last day of the month in which occurs the
      earliest of:

      (a)   The date on which an Employee resigns, is discharged by his
            employer, retires at his Retirement Date, retires due to Disability,
            or dies. For this purpose an Employee shall be deemed to have
            resigned if he

            (i)   is absent from work for seven (7) or more successive working
                  days without reasonable cause, or

            (ii)  fails, without reasonable cause, to return to work after a
                  Leave of Absence or temporary layoff within seven (7) days
                  after notice to return has been sent to his last address, as
                  shown by the employer's employment records;

      (b)   The first anniversary of the date on which an Employee begins a
            layoff from the Company or an Affiliated Company; or

      (c)   The second anniversary of the date on which an Employee remains
            absent from service (with or without pay) with the Company or an
            Affi1iated Company for any reason other than resignation,
            retirement, discharge, or death, such as illness, maternity or
            paternity leave, or Leave of Absence.

      Notwithstanding the foregoing, in the event that the Employee fails to
      return to active employment upon the expiration of a Leave of Absence (or,
      in the case of a military leave, during the period in which his
      reemployment rights are protected by applicable law, or during the period
      in which his reemployment rights are protected by the Plan Administrator,
      whichever is longer), the Employee's Separation Date shall mean the date
      on which such absence from service began, unless such failure to return is
      the result of

                                       13
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      retirement, Disability, or death.

1.44  "SERVICE" means the aggregate of the following:

      (a)   The period commencing with the first day of the month in which an
            Employee is credited with an Hour of Service, and ending on the
            Employee's Separation Date.

      (b)   Periods of service with The Torrington Company or Ingersoll-Rand
            Company prior to the Effective Date of this Plan, if the Employee is
            an Eligible Employee on the Effective Date.

      (c)   If an Employee performs an Hour of Service within twelve months of a
            Separation Date on account of an event described in Section 1.43(a),
            the period from such Separation Date to such Hour of Service.

      (d)   In the case of an Employee who leaves employment with the Company or
            an Affiliated Company to enter service with the armed forces of the
            United States, the period of such military service, provided the
            individual resumes employment with the Company or an Affiliated
            Company within the period during which his reemployment rights are
            protected by Section 414(u) of the Code, or within the period during
            which his reemployment rights are protected by the Plan
            Administrator, whichever is longer.

      (e)   Any periods of service that would have counted under the terms of
            the I-R Plan shall count as Service under this Plan.

1.45  "SPOUSE" means the person, if any, to whom the Employee is lawfully
      married at the time of his death prior to retirement or at the time his
      benefits are to commence, as the case may be, provided, however, that a
      former spouse will be treated as the Spouse to the extent provided under a
      Qualified Domestic Relations Order.

1.46  "TOTAL ACCOUNT" means the total amounts held under the Plan for a
      Participant, consisting of the following subaccounts:

      (a)   "BEFORE-TAX CONTRIBUTION ACCOUNT" -- The portion of the
            Participant's Total Account consisting of Before-Tax Contributions
            made in accordance with Section 3.l, plus or minus any investment
            earnings or losses on such contributions, less any withdrawals or
            distributions from such Account.

                                       14
<PAGE>

      (b)   "MATCHING CONTRIBUTION ACCOUNT" -- The portion of the Participant's
            Total Account consisting of Company Matching Contributions made in
            accordance with Section 4.1, plus or minus any investment earnings
            or losses on such contributions, less any withdrawals or
            distributions from such Account.

      (c)   "ROLLOVER CONTRIBUTION ACCOUNT" -- The portion of the Participant's
            Total Account consisting of any Rollover Contribution made on behalf
            of the Participant in accordance with Section 3.5, plus or minus any
            investment earnings or losses on such amounts, less any withdrawals
            or distributions from such Account.

1.47  "TRUSTEE" means the Trustee or Trustees appointed by the Company in
      accordance with Section 10.

1.48  "TRUST FUND" means the fund established under the terms of the Trust
      Agreement for the purpose of holding and investing the assets of the Plan
      held by the Trustee.

1.49  "VALUATION DATE" means each day on which the New York Stock Exchange is
      open for trading or such other date or dates as the Plan Administrator
      deems appropriate.

1.50  "VESTED" means a Participant's non-forfeitable right to his Total Account.

1.51  "YEAR OF SERVICE" means twelve consecutive months of service where a month
      of service is defined as a calendar month during any part of which an
      Employee completes an Hour of Service.

1.52  "I-R PLAN" means the Ingersoll-Rand Savings Plan for Bargaining Unit
      Employees.

                                       15
<PAGE>

                                        SECTION 2

                                      PARTICIPATION

2.1   PARTICIPATION REQUIREMENTS

      Any Employee who is an Eligible Employee as of the Effective Date and has
      completed one (1) Year of Service may participate in the Plan as of the
      Effective Date, or on the next available pay period, provided he is then
      an Eligible Employee.

      Any Employee who is an Eligible Employee as of the Effective Date but who
      has not completed a Year of Service, may participate in the Plan on the
      first day of the month coincident with or next following his completion of
      a Year of Service, or on any succeeding payroll period, provided he is
      then an Eligible Employee.

      An Employee who becomes an Eligible Employee after the Effective Date may
      participate in the Plan as of the later of:

      (i)   the first day of the month next following the date he becomes an
            Eligible Employee or

      (ii)  the first day of the month coincident with or next following his
            completion of one (1) Year of Service (or on any succeeding payroll
            period), provided he is then an Eligible Employee.

2.2   APPLICATION TO PARTICIPATE

      An Eligible Employee, or an Employee who will become an Eligible Employee
      within two months, may enroll to become a Participant by filing his
      elections in the form prescribed by the Plan Administrator at least one
      pay period prior to the date on which he elects to commence participation.

                                       16
<PAGE>

2.3   EFFECTIVE DATE OF ELECTIONS

      In order to make contributions or have contributions made on his behalf,
      an Eligible

      Employee who becomes a Participant must make elections as provided under
      the Plan. The elections shall become effective with respect to the first
      payroll period commencing on or after the Employee's date of commencement
      of participation.

2.4   PARTICIPATION UPON REEMPLOYMENT

      An Eligible Employee who reaches a Separation Date prior to becoming a
      Participant and who is subsequently reemployed shall have all periods of
      Service prior to such Separation Date counted in the determination of
      eligibility regardless of the period of time that may have elapsed between
      his Separation Date and his subsequent date of reemployment and may
      participate in the Plan on the later of:

      (a)   his completion of one Year of Service in the aggregate; or

      (b)   the first available payroll period following his date of
            reemployment;

      or on any subsequent payroll period determined above, provided he is then
      an Eligible Employee.

      A Participant who: (i) separates from service from the Company; (ii)
      incurs a Period of Severance; and (iii) is reemployed by the Company as an
      Eligible Employee, shall immediately resume participation in the Plan as
      of the date of his reemployment.

2.5   TERMINATION OF PARTICIPATION

      A Participant's participation in the Plan shall continue until the later
      of:

      (a)   the Participant's Separation Date; or

      (b)   such time as all nonforfeitable amounts credited to the
            Participant's Total Account shall have been distributed in full in
            accordance with the terms of the Plan.

                                       17
<PAGE>

2.6   VETERAN'S RIGHTS

      Notwithstanding any provision of the Plan to the contrary, contributions,
      benefits and Service credit with respect to qualified military service
      shall be provided in accordance with Section 414(u) of the Code.

                                       18
<PAGE>

                                    SECTION 3

                            PARTICIPANT CONTRIBUTIONS

3.1   PARTICIPANT CONTRIBUTIONS

      Each Eligible Employee may, upon becoming a Participant, elect to have a
      Before-Tax Contribution made on his behalf at the rate of 1 % to 14 % of
      his Compensation. The rate of contribution will be in increments of 1%.
      Such election shall be in the form of a Salary Deferral Agreement, and
      shall be subject to the Compensation Deferral Limit, if any, applicable to
      such Participant as established by the Plan Administrator from time to
      time for purposes of meeting the nondiscrimination tests of Sections
      401(k) of the Code, and, if applicable, satisfying the maximum limits
      described in Sections 3.6 and Sections 4.6 through 4.10. Contributions
      made in accordance with this Section 3.1 shall be made by the Company
      directly to the Trustee no less frequently than once per calendar month.

      Notwithstanding the foregoing, effective February 16, 2003 for each
      Participant who was a participant in the I-R Plan immediately before
      February 16, 2003, unless the Participant elects otherwise, the
      Participant's rate of Before-Tax Contributions will be the same as the
      corresponding rates in effect for the Participant under the I-R Plan
      immediately before February 16, 2003. The rate described in the preceding
      sentence shall remain in effect until changed by the Participant as
      described herein or until such date designated by the Plan Administrator
      as the date by which Participants must file a new Salary Deferral
      Agreement or payroll deduction authorization described herein.

3.2   INCREASE OR DECREASE IN RATE OF CONTRIBUTIONS

      A Participant may elect to change the rate of contributions under his
      Salary Deferral Agreement as of any payroll period, provided he files with
      the Plan Administrator in the form prescribed by the Plan Administrator a
      new Salary Deferral Agreement within the time frame prescribed by the Plan
      Administrator.

3.3   SUSPENSION AND RESUMPTION OF CONTRIBUTIONS

      (a)   A Participant may elect to suspend contributions, effective the next
            available payroll period, provided that the Participant files with
            the Plan Administrator, in the form prescribed by the Plan
            Administrator, his election to suspend within the time frame
            prescribed by the Plan Administrator. In the event of an election to
            suspend contributions, the Participant may have contributions
            resumed effective any subsequent payroll period, provided that he
            files a new Salary Deferral Agreement with the Plan Administrator
            within the time frame prescribed by the Plan Administrator.

                                       19
<PAGE>

      (b)   A Participant may not make up suspended contributions.

      (c)   During a period of suspension, gains and losses on the Participant's
            Total Account will continue to be credited or debited on the balance
            of his Total Account.

      If a Participant ceases to be an Eligible Employee but continues in the
      employ of any Employer or Affiliated Employer, Before-Tax Contributions
      made on his behalf shall be immediately suspended. No contributions shall
      be made for a Participant with respect to the period of such suspension.
      If the Participant again becomes an Eligible Employee, he may resume his
      Before-Tax Contributions by filing the appropriate form with the Plan
      Administrator. Resumption of contributions shall commence as of the next
      available payroll period following the date the appropriate form is
      properly filed with the Plan Administrator, or as soon as practical
      thereafter.

3.4   EFFECTIVE DATE OF ELECTIONS

      The elections referred to in this Section 3 shall become effective with
      respect to the first available payroll period, in accordance with the
      administrative procedures established by the Plan Administrator.

3.5   ROLLOVER CONTRIBUTIONS

      (a)   The Plan Administrator in accordance with a uniform and
            nondiscriminatory policy, shall determine whether or not a Rollover
            Contribution shall be accepted. Any such request shall state the
            amount of the Rollover Contribution and include a statement that
            such contribution qualifies as a Rollover Contribution as defined in
            Section 1.41. The Plan Administrator may require the Employee to
            submit such other evidence and documentation as the Plan
            Administrator determines necessary to ensure that the contribution
            qualifies as a Rollover Contribution. All Rollover Contributions
            must be made in cash.

            If a rollover is later deemed to be invalid, such invalid amount
            plus allowable income shall be distributed to the Participant within
            a reasonable time after such determination pursuant to the Code and
            related regulations.

      (b)   The Employee shall at all times have a nonforfeitable right in 100%
            of his Rollover Contribution Account.

                                       20
<PAGE>

      (c)   An Employee who makes a Rollover Contribution to the Trust Fund
            shall be deemed to be a Participant with respect to such amount for
            all purposes of the Plan, except for purposes of Sections 2.1
            through 2.5, Sections 3.1 through 3.4 and Sections 4.1 through 4.11.

      (d)   At the time the Rollover Contribution is made to the Trust Fund, the
            Employee must elect to have it invested in accordance with the terms
            of Section 5.2.

      (e)   For administration and account purposes, the amounts paid to the
            Trust Fund in the form of Rollover Contributions and any interest
            earned on such amounts shall be credited to the Participant's
            Rollover Contribution Account, or to such other account or accounts
            as may be appropriate under the circumstances. In no event, however,
            shall any Rollover Contribution be subject to Company Matching
            Contributions.

      (f)   Unless specifically indicated to the contrary elsewhere in this
            Plan, the Plan shall prohibit the transfer of assets to the Plan
            from any other plan.

3.6   MAXIMUM AMOUNT OF SALARY DEFERRAL

      (a)   Subject to the provisions of paragraph (b) below, contributions made
            during a Participant's taxable year (which is presumed to be the
            calendar year) on behalf of the Participant under a Salary Deferral
            Agreement shall be limited to $12,000 (or such other limit as may be
            in effect at the beginning of such taxable year under Section
            402(g)(1) of the Code), reduced by the amount of "elective
            deferrals" (as defined in Section 402(g)(3) of the Code) made during
            the taxable year of the Participant under any plans or agreements
            maintained by the Company or an Affiliated Company other than this
            Plan (and, in the sole discretion of the Plan Administrator, any
            plans or agreements maintained by any other employer, if reported to
            the Plan Administrator at such time and in such manner as the Plan
            Administrator shall prescribe).

      (b)   If contributions made on a Participant's behalf for the preceding
            taxable year of the Participant under a Salary Deferral Agreement,
            and any other elective deferrals (within the meaning of Section
            402(g)(3) of the Code), made on the Participant's behalf under any
            other qualified cash or deferred arrangement of the Company for such
            taxable year exceed $12,000 (or such other amount as adjusted in
            accordance with paragraph (a) above), then the Participant shall

                                       21
<PAGE>

            notify the Plan Administrator in writing by the first March 1
            following the close of such taxable year of the amount of such
            excess. Such notification shall include a statement that if such
            amounts are not distributed, the excess deferral amount, when added
            to amounts deferred under other plans or arrangements described in
            Section 401(k), 408(k), or 403(b) of the Code, will exceed the limit
            imposed on the Participant by Section 402(g) of the Code for the
            taxable year of the Participant in which the deferral occurred.

(c)   If the elective deferral limit is exceeded for a Participant for a taxable
      year, the excess amount, adjusted for the net earnings or losses thereon
      up to the date of distribution, shall be refunded to the Participant in a
      single payment no later than April 15 of the taxable year following the
      taxable year in which such excess deferral arose. If the Participant's
      Before-Tax Contribution Account is invested in more than one investment
      fund, such refund shall be made pro rata, to the extent practicable, from
      all such investment funds. The amount refunded shall not exceed the
      Participant's Before-Tax Contributions under the Plan for the taxable
      year. The payment shall be deemed to have been made before the close of
      the taxable year in which such excess deferral arose. If the Participant
      fails to notify the Plan Administrator by the specified March 1, no refund
      will be made.

(d)   Notwithstanding the provisions of paragraph (b) above, a Participant's
      excess Before-Tax Contributions shall be reduced, but not below zero, by
      any distribution of excess contributions made pursuant to Section 4.6 for
      a Plan Year, provided such excess contributions are distributed on or
      before March 15 of the Plan Year following the Plan Year in which such
      excess contributions arose.

                                       22
<PAGE>

                                    SECTION 4

                              COMPANY CONTRIBUTIONS

4.1   COMPANY MATCHING CONTRIBUTIONS

      The first four percent (4%) of Compensation deferred hereunder by the
      Participant shall be eligible for Company Matching Contributions. Subject
      to Section 11.6, each pay period, the Company shall contribute an amount
      which is equal to fifty percent (50%) of such Before-Tax Contributions
      made to each Participant's Total Account attributable to the pay period,
      provided that the maximum contribution rate shall be subject to the
      maximum limits described in the Plan. Such contributions shall be known as
      Company Matching Contributions and shall be contributed to the
      Participant's Matching Contribution Account. No Matching Contributions
      shall be made with respect to the Before-Tax Contributions in excess of
      four percent (4%) of Compensation made on behalf of any Participant.

      Unless the collective bargaining agreement between the Company and United
      Auto Workers, Local 1645 states otherwise, when the term of such
      collective bargaining agreement expires, unless it is extended, the
      Company shall not be required to make any Company Matching Contributions
      after such date and all Participants covered by such collective bargaining
      agreement shall become inactive Participants for purposes of the Plan as
      of such date.

4.2   FORM OF COMPANY MATCHING CONTRIBUTION

      Company Matching Contributions shall be contributed to the Trust Fund in
      cash or Company Stock as soon as practicable, but in no event later than
      the time prescribed by law (including extensions thereof) for filing the
      Company's Federal income tax return for the taxable year of the Company
      which includes the last day of the Plan Year for which such contributions
      are made. Contributions in Company Stock may be made purchased on the open
      market or may be issued directly to the Plan by The Timken Company, in the
      sole and exclusive discretion of the Company.

4.3   COMPANY MATCHING CONTRIBUTIONS REDUCED BY FORFEITURES

      Company Matching Contributions shall be reduced by forfeitures resulting
      from the application of the vesting provisions contained in Section 6.

                                       23
<PAGE>

4.4   ESTABLISHMENT OF PARTICIPANT ACCOUNTS

      (a)   The Company shall establish and maintain for each Participant a
            Total Account consisting of the following three accounts, as
            described in Section 1.46, and any such other accounts as may be
            deemed necessary by the Plan Administrator:

            (i)   Before-Tax Contribution Account;

            (ii)  Matching Contribution Account; and

            (iii) Rollover Contribution Account; and

      (b)   Within each account described in paragraph (a) above, separate
            records shall be kept of the portion, if any, of each account
            invested in the funds listed in Section 5.1.

4.5   FORFEITURES

      Forfeitures resulting from the application of the vesting provisions
      contained in Section 6 and Forfeitures resulting from the application of
      Section 9.8 shall be applied, no later than the end of the Plan Year
      immediately following the Plan Year in which the Forfeitures occur in the
      following order:

      (a)   to make restorations pursuant to Section 6.3(c);

      (b)   to the extent of any remainder to make restorations pursuant to the
            last sentence of Section 9.8(b);

      (c)   to the extent of any remainder, to reduce future Company
            Contributions including any other contributions approved by the Plan
            Administrator;

      (d)   to the extent of any remainder, to provide a Company Matching
            Contribution to be allocated to Participants no later than the Plan
            Year immediately following the Plan Year in which the Forfeitures
            occurred.

4.6   NONDISCRIMINATION REQUIREMENTS AND MAXIMUM ANNUAL ADDITIONS

      (a)   Actual Deferral Percentage Tests

            (i)   The average Deferral Percentage for the Highly Compensated
                  Employee group shall not exceed the greater of:

                  (A)   125 percent (125%) of such percentage for the Nonhighly
                        Compensated Employee group (for the preceding Plan Year
                        if the prior-year testing method is used); or

                                       24
<PAGE>

                  (B)   The lesser of 200 percent (200%) of such percentage for
                        the Nonhighly Compensated Employee group (for the
                        preceding Plan Year if the prior-year testing method is
                        used), or such percentage for the Nonhighly Compensated
                        Employee group (for the preceding Plan Year if the
                        prior-year testing method is used) plus two (2)
                        percentage points.

                  The Plan Administrator may exclude Nonhighly Compensated
                  Employees who have not attained age 21 and do not have at
                  least one Year of Service from the calculation of the average
                  Deferral Percentage for Nonhighly Compensated Employees. This
                  special testing rule may only be used in any Plan Year in
                  which the Plan separately satisfies Section 410(b)(1) of the
                  Code with respect to the group of Participants who have not
                  attained age 21 or do not have at least one Year of Service.

            (ii)  The Deferral Percentage for each Participant and the average
                  Deferral Percentage for each group shall be calculated to the
                  nearest one-hundredth of one percent.

            (iii) A Highly Compensated Employee and a Nonhighly Compensated
                  Employee shall include any Employee eligible to make a
                  deferral election pursuant to Section 3.1, whether or not such
                  deferral election was made or suspended pursuant to Section
                  3.3.

                  Notwithstanding the above, if the prior-year testing method is
                  used to calculate the average Deferral Percentage for the
                  Nonhighly Compensated Employee group for the first Plan Year
                  of this amendment and restatement, a Nonhighly Compensated
                  Employee shall include any such Employee eligible to make a
                  deferral election, whether or not such deferral election was
                  made or suspended, pursuant to the provisions of the Plan in
                  effect for the preceding Plan Year.

                  Notwithstanding the above, if two or more plans which include
                  cash or deferred arrangements are permissively aggregated
                  under Regulation 1.410(b)-7(d), all plans permissively
                  aggregated must use either the current-year testing method or
                  the prior-year testing method for the testing year.

                                       25
<PAGE>

            (iv)  For the purposes of this Section, if a Highly Compensated
                  Employee is a Participant under two or more cash or deferred
                  arrangements (other than a cash or deferred arrangement which
                  is part of an employee stock ownership plan as defined in Code
                  Section 4975(e)(7) or 409) of the Company or an Affiliated
                  Company, all such cash or deferred arrangements shall be
                  treated as one cash or deferred arrangement for the purpose of
                  determining the actual deferral ratio with respect to such
                  participating Highly Compensated Employee. However, if the
                  cash or deferred arrangements have different plan years, this
                  paragraph shall be applied by treating all cash or deferred
                  arrangements ending with or within the same calendar year as a
                  single arrangement.

            (v)   For the purpose of this Section, when calculating the average
                  Deferral Percentage for the Nonhighly Compensated Employee
                  group, the current-year testing method shall be used. Any
                  change in the testing method shall be made pursuant to
                  Internal Revenue Service Notice 98-1 (or superseding
                  guidance).

            (vi)  The alternative methods of satisfying the tests as prescribed
                  in Code Sections 401(k)(12) and 401(m)(11) may be used if
                  applicable to pass the tests described in Section 4.6(a).

4.7   ADJUSTMENT TO ACTUAL DEFERRAL PERCENTAGE

      For purposes of this Section, "Excess Contributions" shall mean the amount
      described in Section 401(k)(8)(B) of the Code. The amount of Excess
      Contributions for a Highly Compensated Employee will be determined in the
      following manner.

      In the event (or if it is anticipated) that the initial allocations of the
      Before-Tax Contributions made pursuant to Section 3.1 do (or might) not
      satisfy one of the tests set forth in Section 4.6(a), the Plan
      Administrator shall adjust Excess Contributions pursuant to the options
      set forth below:

      (a)   On or before the fifteenth day of the third month following the end
            of each Plan Year, the Highly Compensated Employee having the
            largest amount of Before-Tax Contributions shall have a portion of
            his Before-Tax Contributions distributed to him until the total
            amount of Excess Contributions has been distributed, or until the
            amount of his Before-Tax Contributions equals the Before-Tax
            Contributions of the Highly Compensated Employee having the

                                       26
<PAGE>

            second largest amount of Before-Tax Contributions. This process
            shall continue until the total amount of Excess Contributions has
            been distributed. In determining the amount of Excess Contributions
            to be distributed with respect to an affected Highly Compensated
            Employee as determined herein, such amount shall be reduced by any
            excess deferred compensation previously distributed to such affected
            Highly Compensated Employee for his taxable year ending with or
            within such Plan Year and any forfeited Company Matching
            Contributions which relate to such excess deferred compensation.

            (i)   With respect to the distribution of Excess Contributions
                  pursuant to Section 4.7(a) above, such distribution:

                  (A)   May be postponed but not later than the close of the
                        Plan Year following the Plan Year to which they are
                        allocable;

                  (B)   Shall be made first from unmatched Before-Tax
                        Contributions and, thereafter, proportionately from
                        Before-Tax Contributions which are matched and Company
                        Matching Contributions which relate to such deferred
                        compensation, if used in the average Deferral Percentage
                        tests pursuant to Section 4.6(a);

                  (C)   Shall be adjusted for income during the Plan Year; and

                  (D)   Shall be designated by the Company as a distribution of
                        Excess Contributions (and income).

            (ii)  Any distribution of less than the entire amount of Excess
                  Contributions shall be treated as a pro rata distribution of
                  Excess Contributions and income.

            (iii) Company Matching Contributions that relate to Excess
                  Contributions shall be forfeited unless the related Company
                  Matching Contribution is distributed as an excess contribution
                  pursuant to subsection (1) above.

      (b)   Within twelve (12) months after the end of the Plan Year, the
            Company may make a special Qualified Nonelective Contribution on
            behalf of selected Nonhighly Compensated Employees electing salary
            reductions pursuant to Section 3.1 in an amount sufficient to
            satisfy (or to prevent an anticipated failure of) one of the tests
            set forth in Section 4.7(a).

                                       27
<PAGE>

            However, if the prior-year testing method is used, the special
            Qualified Nonelective Contribution shall be allocated in the prior
            Plan Year to the Participant's Before-Tax Contribution Account on
            behalf of selected Nonhighly Compensated Employees who were employed
            by the Company on the last day of the prior Plan Year. Such
            contribution shall be made by the Company prior to the end of the
            current Plan Year.

            Notwithstanding the above, if the testing method changes from the
            current-year testing method to the prior-year testing method, then
            for purposes of preventing the double counting of Qualified
            Nonelective Contributions for the first testing year for which the
            change is effective, any special Qualified Nonelective Contribution
            on behalf of Nonhighly Compensated Employees used to satisfy the
            Average Deferral Percentage or Average Contribution Percentage test
            under the current-year testing method for the prior-year testing
            year shall be disregarded.

      (c)   If during a Plan Year the projected aggregate amount of Before-Tax
            Contributions to be allocated to all Highly Compensated Employees
            under this Plan would, by virtue of the tests set forth in Section
            4.6(a), cause the Plan to fail such tests, then the Plan
            Administrator, as defined in Section 9.2, may automatically reduce
            proportionately or in the order provided in Section 4.6(a) each
            affected Highly Compensated Employee's deferral election made
            pursuant to Section 3.1 by an amount necessary to satisfy one of the
            tests set forth in Section 4.6(a).

4.8   AGGREGATION OF PLANS

      In the event this Plan is aggregated with any other plan maintained by the
      Company or an Affiliated Company and treated as a single plan for purposes
      of Sections 401(a)(4) and 410(b) of the Code, all Before-Tax
      Contributions, and Company Matching Contributions made under such plans
      shall be treated as made under a single plan, and if two or more of such
      plans are permissively aggregated for purposes of Sections 401(k) and
      401(m) of the Code, such plans shall be treated as a single plan for
      purposes of satisfying Section 401(a)(4) and 410(b) of the Code.

4.9   DISAGGREGATION OF PLAN

      Notwithstanding anything contained in the Plan to the contrary, in the
      event the mandatory disaggregation rules under applicable Treasury
      Regulations require that this

                                       28
<PAGE>

      Plan be treated as two (2) or more separate plans, the provisions of the
      Plan shall be applied separately with respect to each deemed separate
      plan, as required by law.

      In the case of a deemed separate plan that covers Eligible Employees
      employed within a classification with respect to which retirement benefits
      have been the subject of collective bargaining, the provisions of Sections
      4.6 and 4.7 shall apply to such deemed separate plan and the provisions of
      Sections 4.6 and 4.7 shall be deemed satisfied by such deemed separate
      plan.

4.10  CODE SECTION 415 LIMITS

      The annual additions made on behalf of a Participant hereunder shall be
      limited to the extent required by Section 415 of the Code and rulings,
      notices and regulations issued thereunder. To the extent applicable,
      Section 415 of the Code and rulings, notices and regulations issued
      thereunder are hereby incorporated by reference into this Plan. In
      calculating these limits, the following rules shall apply:

      In the event the Plan Administrator determines that the annual additions
      made on behalf of a Participant during any Limitation Year are in excess
      of the limitations of this Section 4.11 as the result of a mistake in
      estimating a Participant's compensation, a reasonable error in determining
      the amount of Before-Tax Contributions that may be made with respect to
      any Participant or under other limited facts and circumstances which the
      Commissioner of Internal Revenue finds justify the use of these rules,
      such annual additions shall be reduced by returning the Participant's
      unmatched Before-Tax Contributions, as appropriate, plus any gains or
      losses, for such Limitation Year in such amount so that the limitations of
      this Section 4.11 are not exceeded. Any Before-Tax Contributions thus
      distributed shall be disregarded for purposes of Sections 1.14, 1.15 and
      3.1, as appropriate.

      If, following the return of all the Participant's unmatched Before-Tax
      Contributions that may be refunded, the annual additions made on behalf of
      a Participant during the Limitation Year are still exceeded, such annual
      additions shall be reduced to the extent necessary, proportionally from
      matched Before-Tax Contributions, and from Company Matching Contributions
      for such Limitation Year, so that the limitations of this Section 4.11 are
      not exceeded. The amount of such reduction attributable to matched
      Before-Tax Contributions shall be refunded to the Participant and the
      amount attributable to Company Matching Contributions shall be credited to
      an unallocated Company contribution account. The unallocated Company
      contribution account shall not be subject

                                       29
<PAGE>

      to adjustment in accordance with Section 5 and shall be used to provide
      any Company Matching Contribution to which the Participant may be entitled
      in the next Limitation Year (and succeeding Limitation Years, as
      necessary). However, if the Participant is not covered under the Plan as
      of the end of the Limitation Year, any excess amounts remaining in the
      unallocated Company contribution account shall be used to provide any
      Company Matching Contributions to which other Participants may be entitled
      in the next Limitation Year (and succeeding Limitation Years, as
      necessary). Any Before-Tax Distributions distributed and any Company
      Matching Contributions forfeited shall be disregarded for purposes of
      Sections 1.14, 1.15 and 3.1, as appropriate.

                                       30
<PAGE>

                                    SECTION 5

                              INVESTMENT PROVISIONS

5.1   DESCRIPTION OF FUNDS

      The assets of the Plan shall be invested by the Trustee in accordance with
      the instructions of the Participants pursuant to Section 5.2 of the Plan
      and in accordance with the further provisions of this Section 5.1, and the
      Trust Agreement, in one or more of the following investment options:

      (a)   MONEY MARKET FUND -- A fund consisting of securities and obligations
            which produce a fixed rate of investment return, including, but not
            limited to, United States government securities, corporate bonds,
            notes, debentures, convertible securities, preferred stocks, or an
            investment fund or funds maintained by the Trustee or other banks or
            other financial institutions. or any contracts issued by insurance
            companies or other financial institutions.

      (b)   COMPANY STOCK FUND -- A fund designed solely to invest in Company
            Stock.

      (c)   INVESTMENT OPTION -- Such other investment options as may be
            selected from time to time by the Pension Investment Committee
            described in Section 10.6.

      Nothing in this Section 5.1 shall prohibit the Trustee from maintaining
      from time to time reasonable amounts in cash or cash equivalents.

      All dividends, interest and other income of each fund, as well as stock
      splits, stock dividends, and the like, shall be reinvested in that fund.

5.2   INVESTMENT ELECTION

      At the time an Eligible Employee elects to participate in the Plan, he
      must elect, in a form prescribed by the Plan Administrator, to have
      contributions, other than the Company Matching Contributions, invested in
      the following manner;

      (a)   0%, or in increments of 1 % up to a total of 100% in the Money
            Market Fund.

      (b)   0%, or in increments of 1 % up to a total of 100% in any of the
            Investment Options.

      (c)   0%, or in increments of 1 % up to a total of 100% in the Company
            Stock Fund

      A Participant's investment election must total 100% of such contributions.
      In the absence of a valid election by any Participant, 100% of such
      contributions and loan repayments shall be credited to the Money Market
      Fund. Notwithstanding the foregoing, from the

                                       31
<PAGE>

      Effective Date until such date as determined by the Plan Administrator,
      all contributions will be credited to the Money Market Fund.

5.3   CHANGE IN INVESTMENT ELECTION

      Each Participant may elect effective on any business day of the year and
      upon telephonic notification to the recordkeeper appointed by the Company
      to have his current and/or future Participant Contributions invested in a
      proportion different from that previously selected. Such election shall be
      made in accordance with the percentage specifications provided in Section
      5.2. Company Matching Contributions are invested in the Company Stock Fund
      and remain in this fund until the Participant's Separation Date. For
      purposes of the Plan, a "business day" shall be any day the New York Stock
      Exchange is open for trading.

5.4   RESPONSIBILITY OF PARTICIPANT IN MAKING INVESTMENT ELECTIONS

      The selection of an investment option in accordance with Sections 5.2 and
      5.3 is the sole responsibility of each Participant. The Plan
      Administrator, the Trustee, the Company, or any other fiduciary to the
      Plan are not authorized or permitted to advise a Participant as to the
      selection of any option or the manner in which such contributions shall be
      invested. The fact that a security is available to Participants for
      investment under the Plan shall not be construed as a recommendation as to
      the purchase of that security, nor shall the designation of an investment
      option impose any liability on the Plan Administrator, the Trustee, the
      Company, or any fiduciary to the Plan.

      Except with regard to Company Matching Contributions, the Plan is intended
      to comply with the provisions of Section 404(c) of ERISA and the
      regulations thereunder. The Plan Administrator, the Trustee, the Company,
      and any fiduciary of the Plan shall be relieved of liability for any
      losses that are the result of investment directions given by a
      Participant, Beneficiary, or any other person authorized hereunder to
      direct the investment of any amount allocated to such Participant's,
      Beneficiary's, or other person's Total Account. The selection of
      investment option choices and the administration of Plan investments are
      intended to comply with the requirements of Section 404(c)(1) of ERISA and
      the regulations thereunder.

5.5   INVESTMENT OF COMPANY MATCHING CONTRIBUTIONS

      Company Matching Contributions shall be invested solely in the Company
      Stock Fund.

                                       32
<PAGE>

5.6   TRANSFER OF FUNDS

      Each Participant may elect upon telephonic notification (or such other
      form as the Plan Administrator approves) at any time to have any portion
      of his Participant Contributions or Rollover Contributions (in dollar
      amounts or in increments of 1 %) in any fund be transferred to any other
      fund. For purposes of the Plan, a "business day" shall be any day the New
      York Stock Exchange is open for trading.

5.7   STOCK RIGHTS, STOCK DIVIDENDS AND STOCK SPLITS

      The Trustee, unless otherwise directed by the Plan Administrator, shall
      sell any rights which it receives to purchase shares of Company Stock. The
      net proceeds of the sale of such rights, and any cash received by the
      Trustee in connection with a stock dividend representing fractional
      interests in shares of Company Stock, shall be applied by the Trustee to
      purchase shares of Company Stock. The shares so purchased and any shares
      received by the Trustee as a result of a stock dividend or stock split
      shall be allocated by the Plan Administrator to the individual accounts of
      Participants, in proportion to their respective interests in Company Stock
      held by the Trust Fund.

                                       33
<PAGE>

                                    SECTION 6

                                     VESTING

6.1   VESTING OF PARTICIPANT CONTRIBUTIONS

      A Participant shall be fully Vested in his Before-Tax and Rollover
      Contribution Accounts at all times.

6.2   VESTING OF COMPANY MATCHING CONTRIBUTIONS

      (a)   A Participant's interest in his Matching Contribution Account shall
            be fully Vested in the event of his death, Disability, or the
            attainment of his Retirement Date, provided such Participant is an
            Employee on such date.

      (b)   Any Participant not covered under the provisions of paragraph (a)
            above shall become Vested in his Matching Contribution Account as
            follows:

<TABLE>
<CAPTION>
            Years of Service                  Vesting Percentage
            ----------------                  ------------------
<S>                                           <C>
            Less than 3 years                          0%
            3 years but less than 4 years             20%
            4 years but less than 5 years             40%
            5 years but less than 6 years             60%
            6 years but less than 7 years             80%
            7 years or more                          100%
</TABLE>

      (c)   If any Plan amendment changes the vesting schedules set forth in
            this Section 6.2, each Participant who has completed at least three
            years of Service as of the later of the date the Plan amendment is
            adopted, or the date the Plan amendment becomes effective, shall
            have the vesting percentage of his Matching Contribution Account
            computed in accordance with the vesting schedule that produces the
            higher Vested benefit.

6.3   FORFEITURES

      (a)   If a Participant is partially but not fully Vested in his Total
            Account on the date of his termination of employment, the portion of
            such Account that is not then Vested shall be subject to forfeiture
            as of the Valuation Date coincident with or next following the date
            on which distribution of the Participant's Vested benefit occurs or
            commences on account of his termination of employment.

      (b)   If a Participant is not Vested in any portion of his Total Account
            on the date of his termination of employment, such Participant shall
            be deemed to have been

                                       34
<PAGE>

            paid the Vested portion of such Account on the date of his
            termination of employment. The nonvested balance in such Account
            shall be subject to forfeiture as of the Valuation Date coincident
            with or next following the date of the Participant's termination of
            employment, except that there shall be no such forfeiture if the
            Participant is reemployed by the Company or an Affiliated Company on
            or prior to such forfeiture date.

      (c)   In the event a Participant is reemployed, any nonvested portion of
            his Matching Contribution Account which was forfeited in accordance
            with the provisions of paragraph (a) or (b) above shall be restored
            to such Participant's Matching Contribution Account on the Valuation
            Date coincident with or next following his date of reemployment,
            provided, in the case of paragraph (a), that the Participant repays
            to the Plan the amount of the Participant's Vested Interest that was
            previously distributed to the Participant.

      (d)   Forfeitures resulting from the application of this Section 6.3 shall
            be applied as provided in Section 4.5.

      (e)   If a Participant receives a distribution from his Matching
            Contributions Account at a time when his vesting percentage is less
            than 100%, the Vested balance in that account subsequent to the
            distribution shall be determined by the formula:

                  Vested balance = P x (AB + (R x D)) - (R x D)

                  For purposes of applying the formula:

            P     is the Vested percentage at the date of determination;

            AB    is the account balance at the date of determination;

            D     is the amount of the distribution previously made; and

            R     is the ratio of the account balance at the date of
                  determination to the account balance immediately following the
                  preceding distribution.

                                       35
<PAGE>

                                    SECTION 7

                                  DISTRIBUTIONS

7.1   DISTRIBUTION ON RETIREMENT, DISABILITY OR OTHER TERMINATION OF SERVICE

      (a)   After retirement at his Normal Retirement Date, date of Disability,
            or after his termination of employment with the Company and all
            Affiliated Companies, the Participant's entire undistributed Vested
            interest in the Trust Fund shall be available to be distributed to
            him in a single lump-sum payment as described in Section 7.2.

            In the case of retirement at his Normal Retirement Date, or date of
            Disability, the Participant may elect on a form provided by the Plan
            Administrator to receive his Vested interest in the Trust Fund in
            annual installments over a period not to exceed his life expectancy,
            the amounts of which are calculated annually by dividing the then
            current value of the Participant's Total Account (determined as of
            the last day of the calendar month elected by him, and as of the
            anniversary of such day in succeeding years) by the remaining number
            of unpaid installments.

      (b)   A Participant who has terminated employment with the Company and all
            Affiliated Companies shall receive payment (or, if clause (i) of
            this Section 7.1(b) applies and the Participant so elects, commence
            to receive payments) of the Vested portion of the undistributed
            balance in his Total Account as of one of the following dates:

            (i)   If the value of the Participant's Vested interest in the Trust
                  Fund at his Benefit Commencement Date exceeds $3,500, the date
                  selected by the Participant, which shall not be later than
                  April 1 of the calendar year following the calendar year in
                  which the Participant attains age 70-1/2 or terminates
                  employment, whichever is later.

            (ii)  If the value of the Participant's Vested interest in the Trust
                  Fund at his Benefit Commencement Date does not exceed $3,500,
                  the Valuation Date following his termination of employment
                  with the Company and all Affiliated Companies.

            Notwithstanding the foregoing, if the value of a Participant's Total
            Account exceeds $3,500 and he incurs a termination of employment
            with the Company and all Affiliated Companies after he has reached a
            retirement date, either early, normal or late (as specified in any
            other qualified retirement plan maintained by

                                       36
<PAGE>

            the Company in which such Participant actively participates), the
            following provisions shall apply:

            (A)   The Participant may elect to receive a distribution of all or
                  a portion of his Total Account on any Valuation Date on or
                  after his termination of employment with the Company and all
                  Affiliated Companies provided that such distribution must be
                  at least $500; and

            (B)   The Participant shall not be entitled to a loan.

            Distributions shall be made as soon as practicable after the
            applicable Valuation Date, provided the Participant has filed a
            proper distribution election form with the Plan Administrator. If
            the Participant fails to make proper application for benefits,
            distribution shall be made no later than 60 days after the close of
            the Plan Year in which occurs the latest of the Participant's (A)
            Normal Retirement Date, (B) tenth anniversary of Plan participation,
            or (C) separation from Service with the Company and all Affiliated
            Companies.

            If the amount of distribution available under this Section 7.1
            cannot be determined by the date distribution is required to begin,
            payment will begin no later than 60 days after the date the amount
            of distribution can be determined, and shall include payments
            retroactive to the required beginning date.

            Notwithstanding the foregoing, benefits from the Plan shall begin no
            later than April 1 of the calendar year following the calendar year
            in which the Participant attains age 70 1/2 or terminates
            employment, whichever is later.

7.2   LUMP SUM DISTRIBUTIONS

      Lump sum distributions under Sections 7.1 or 7.3 may, at the election of
      the Participant (or, in the event of his death at the election of his
      designated Beneficiary), be made either in the form of cash equal to the
      value of the Participant's interest in his Vested Total Account, or in the
      form of Company Stock equal to all of the Participant's whole shares in
      the Company Stock Fund combined with a cash lump sum equal to the
      Participant's fractional shares in the Company Stock Fund plus the
      remaining value of the Participant's interest in the remaining funds. All
      distributions in Company Stock shall consist of only full shares with the
      value of any remaining shares being distributed in cash. The conversion of
      shares of Company Stock to cash shall be made pursuant to Section 5.6 and

                                       37
<PAGE>

      shall be based on the closing price per share on the last day on which the
      stock was traded coincident with or next preceding the applicable
      Valuation Date.

7.3   DISTRIBUTIONS ON DEATH

      (a)   Upon the death of any Participant whether serving as an active
            Employee or having terminated his employment for any reason
            whatsoever and prior to commencement of, or complete distribution
            of, his Total Account, his entire remaining Vested interest in the
            Trust Fund shall be payable to his surviving Spouse as designated
            Beneficiary, except as provided below. If the Participant does not
            have a Spouse as of his date of death, the Participant's interest
            shall be paid to his designated Beneficiary. If a Participant's
            designated Beneficiary shall have predeceased him, or if the
            Participant's designation shall have lapsed or failed for any
            reason, payment will be made to the Participant's estate.

            The Participant's Vested interest may be paid to a designated
            Beneficiary other than his Spouse while the Participant's Spouse is
            living only with the written consent of the Spouse. A spousal
            consent under this Section 7.3 must:

            (i)   be in writing on a form provided by the Plan Administrator;

            (ii)  specify the Beneficiary;

            (iii) acknowledge the effect of such consent; and

            (iv)  be witnessed by a notary public.

            Any such consent will be valid only with respect to the Spouse who
            signs the consent. A spousal consent is not required, however, if it
            is established to the satisfaction of the Plan Administrator that
            the consent cannot be obtained because (A) there is no Spouse; (B)
            the Spouse cannot be located; or (C) such other circumstances as the
            Secretary of the Treasury may prescribe by regulations.

            A Participant's designation of a Beneficiary or Beneficiaries shall
            not be effective for any purpose unless and until it has been filed
            by the Participant with the Plan Administrator, provided, however,
            that any designation received by the Plan Administrator after the
            Participant's death shall take effect upon such receipt, but
            prospectively only and without prejudice to any payor or payee on
            account of any payments made before receipt of such designation by
            the Plan Administrator.

                                       38
<PAGE>

      (b)   Distribution of the Participant's Vested interest in the Trust Fund
            shall be made at the election of the Participant's designated
            Beneficiary (or the administrator or executor of the participant's
            estate, as the case may be) on a form provided by the Plan
            Administrator, in one of the following forms of payment:

            (i)   In a single lump sum payment as described in Section 7.2; or

            (ii)  In annual installments, over a period of not more than five
                  years, the amounts of which are calculated annually by
                  dividing the then current value of the Participant's Total
                  Account (determined as of the last day of the calendar month
                  elected by the designated Beneficiary, or the administrator or
                  executor of the Participant's estate, as the case may be, and
                  as of the anniversary of such date, in succeeding years) by
                  the remaining number of unpaid installments.

      (c)   If distribution to the Participant has begun and the Participant
            dies before his entire interest has been distributed, the remaining
            portion of the Participant's nonforfeitable interest m the Trust
            Fund shall be distributed at least as rapidly as under the method of
            payment in effect at the Participant's date of death.

      (d)   If the Participant dies before commencement of his nonforfeitable
            interest in the Trust Fund, such interest (reduced by any security
            interest held by the Plan by reason of a loan outstanding to the
            Participant) shall be distributed to the Participant's designated
            Beneficiary in a single lump sum cash payment within 90 days after
            the date the Participant's death is reported to the Plan
            Administrator, or within a reasonable period of time thereafter, and
            provided the designated Beneficiary has filed a proper distribution
            election form with the Plan Administrator.

            Except as provided in paragraph (e) below, distribution to a
            designated Beneficiary shall begin no later than the earlier of (i)
            December 31 of the calendar year containing the fifth anniversary of
            the Participant's date of death, or (ii) December 31 of the calendar
            year in which the deceased Participant would have attained age
            70-1/2.

      (e)   If the Participant's designated Beneficiary is his Spouse, such
            Spouse may elect to defer distribution until December 31 of the
            calendar year in which the deceased Participant would have attained
            age 70-1/2. Such election must be made no later than the date
            distribution is required to begin under paragraph (d) above.

                                       39
<PAGE>

            If the Participant's Spouse dies before any distribution is made,
            the provisions of this Section 7.3 shall be applied as though the
            Spouse was the Participant.

      (f)   If the amount of distribution available under this Section 7.3
            cannot be determined by the date distribution is required to begin,
            payment will be made no later than 60 days after the date the amount
            of distribution can be determined, and shall include payments
            retroactive to the required beginning date.

7.4   INVESTMENT OF DEFERRED DISTRIBUTIONS

      If a Participant defers receipt of a distribution of his Total Account in
      accordance with this Section, his Total Account shall continue to be
      invested in accordance with the provisions of Section 5 until his Total
      Account is distributed to him; provided, however, the restrictions
      contained in Sections 5.2 and 5.5 regarding the investment of Company
      Matching Contributions shall not apply and such Participant may direct the
      investment of the Company Matching Contributions that have been allocated
      to his Total Account.

7.5   PROOF OF DEATH

      The Plan Administrator may, as a condition precedent to making payment to
      any Beneficiary, require that a death certificate, burial certificate, or
      other evidence of death acceptable to it be furnished.

7.6   LOAN AS A DISTRIBUTION

      In the event a Participant is eligible to receive a distribution in
      accordance with this Section 7, he shall be given the opportunity to repay
      his outstanding loan balance, if any. Repayment must be made prior to the
      date of distribution. If the Participant fails to fully repay his
      outstanding loan balance at the time a lump-sum distribution is made to
      him, the Participant's loan shall be deemed canceled and the remaining
      outstanding loan balance shall be treated as part of the Participant's
      lump sum distribution.

      If the Participant fails to fully repay his outstanding loan balance at
      the time the first payment of an installment is made to him, the
      Participant's loan shall be deemed canceled and the remaining loan balance
      shall be treated as though it had been distributed to the Participant on
      the Valuation Date as of which his first installment payment is made. The
      outstanding loan balance shall not be taken into account in determining
      the amount of installment payments.

                                       40
<PAGE>

7.7   DISTRIBUTION TO ALTERNATE PAYEES

      The Plan Administrator may authorize the Trustee to make a lump sum
      distribution to an Alternate Payee pursuant to a Qualified Domestic
      Relations Order as soon as administratively practicable after the
      Valuation Date next following the earlier of:

      (a)   The date the Participant terminates employment;

      (b)   The date the Participant is entitled to a distribution under the
            Plan; or

      (c)   The date the Alternate Payee elects to receive a distribution from
            the Plan; provided the Alternate Payee has filed a request for
            distribution with the Plan Administrator.

      (d)   The date the Plan Administrator determines that the order is a
            Qualified Domestic Relations Order, subject to any deferred
            distribution date specified in the Qualified Domestic Relations
            Order, provided the Alternate Payee has filed a request for
            distribution with the Plan Administrator.

      If the Alternate Payee's nonforfeitable interest in the Plan does not
      exceed $3,500, distribution to the Alternate Payee shall be made at the
      earliest possible date described above.

7.8   NOTICE TO PAYEES

      At the time a Participant or Beneficiary makes application for benefits,
      the Plan Administrator shall furnish the individual with a written notice
      of distribution.

7.9   RESTRICTIONS ON DISTRIBUTIONS

      (a)   Notwithstanding any other provision of the Plan, a Participant's
            Before-Tax Contribution Account shall not be distributable prior to
            his termination of employment with the Company and all Affiliated
            Companies, Disability, or death, except:

            (i)   in cases of hardship, as provided in Section 8.2;

            (ii)  upon attainment of age 59-1/2

            (iii) upon termination of the Plan without establishment or
                  maintenance of another defined contribution plan (other than
                  an employee stock ownership plan as defined in Section
                  4975(e)(7) of the Code);

      No distribution shall be authorized by paragraph (iii) above, unless the
      distribution qualifies as a "lump sum distribution" within the meaning of
      Section 401(k)(10)(B)(ii) of the Code.

                                       41
<PAGE>

      (b)   All distributions made from this Plan shall comply with the
            requirements of Section 401(a)(9) of the Code notwithstanding any
            other provisions of the Plan to the contrary.

7.10  ELIGIBLE ROLLOVER DISTRIBUTIONS

      Notwithstanding any provisions of the Plan to the contrary that would
      otherwise limit a Distributee's election under this Section 7.10, a
      Distributee may elect, at the time and in the manner prescribed by the
      Plan Administrator, to have any portion of a distribution transferred to
      an Eligible Retirement Plan specified by the Distributee in a Direct
      Rollover.

      Definitions:

      (a)   Eligible Rollover Distribution: An Eligible Rollover Distribution is
            any distribution of all or any portion of the balance to the credit
            of the Distributee, except that an Eligible Rollover Distribution
            does not include: any distribution that is one of a series of
            substantially equal periodic payments (not less frequently than
            annually) made for the life (or life expectancy) of the Distributee
            or the joint lives (or joint life expectancies) of the Distributee
            and the Distributee's designated Beneficiary, or for a specified
            period of ten years or more; any distribution to the extent such
            distribution is required under Section 40l(a)(9) of the Code; any
            distribution that is made upon the hardship of the employee; and the
            portion of any distribution that is not includable in gross income
            (determined without regard to the exclusion for net unrealized
            appreciation with respect to employer securities). Notwithstanding
            the foregoing, a portion of a distribution shall not fail to be an
            Eligible Rollover Distribution merely because the portion consists
            of after-tax employee contributions which are not includable in
            gross income. However, such portion may be transferred only to an
            individual retirement account or annuity described in Section 408(a)
            or (b) of the Code, or to a qualified defined contribution plan
            described in Section 401(a) or 403(a) of the Code that agrees to
            separately account for amounts so transferred, including separately
            accounting for the portion of such distribution which is includable
            in gross income and the portion of such distribution which is not so
            includable.

                                       42
<PAGE>

      (b)   Eligible Retirement Plan: An Eligible Retirement Plan is an
            individual retirement account described in Section 408(a) of the
            Code, an individual retirement annuity described in Section 408(b)
            of the Code, an annuity plan described in Section 403(b) of the
            Code, a qualified trust described in Section 401(a) of the Code, an
            annuity contract described in Section 403(b) of the Code, or an
            eligible plan under Section 457(b) of the Code which is maintained
            by a state, political subdivision of a state, or any agency or
            instrumentality of a state or political subdivision of a state that
            accepts the Distributee's Eligible Rollover Distribution and agrees
            to separately account for amounts rolled into such plan from the
            Plan.

      (c)   Distributee: A Distributee includes an Employee or former Employee.
            In addition, the Employee's or former Employee's surviving Spouse
            and the Employee's or former Employee's Spouse or former Spouse who
            is the alternate payee under a qualified domestic relations order,
            as defined in Section 4l4(p) of the Code, are Distributees with
            regard to the interest of the Spouse or former Spouse.

      (d)   Direct Rollover: A Direct Rollover is the payment by the Plan to the
            Eligible Retirement Plan specified by the Distributee.

7.11  REQUIRED MINIMUM DISTRIBUTIONS

                                       43
<PAGE>

      (a)   General Rules.

            (i)   The requirements of this Section 7.11 shall apply to any
                  distribution of a Participant's Account and shall take
                  precedence over any inconsistent provisions of this Plan,
                  provided that the requirements of this Section 7.11 shall not
                  enlarge the distribution options currently available to
                  Participants and Beneficiaries under the other provisions of
                  the Plan.

            (ii)  All distributions required under this Section shall be
                  determined and made in accordance with the regulations under
                  Code Section 401(a)(9), including the minimum distribution
                  incidental benefit requirement of Section 1.401(a)(9)-2 of the
                  regulations.

      (b)   Distributions Commencing During a Participant's Lifetime.

            The entire interest of a Participant must be distributed to such
            Participant no later than the Participant's Required Beginning Date,
            or must be distributed, beginning not later than the Required
            Beginning Date, over the life of the Participant or joint lives of
            the Participant and designated Beneficiary or over a period not
            extending beyond the life expectancy of the Participant or the joint
            life and last survivor expectancy of the Participant and the
            designated Beneficiary.

            (i)   Required Beginning Date means, for a Participant who is a
                  5-percent owner (as defined in Code Section 416), April 1 of
                  the calendar year following the calendar year in which he
                  attains age 70-1/2.

            (ii)  Required Beginning Date means, for any Participant who is not
                  a 5-percent owner (as defined in Section 416 of the Code),
                  April 1 of the calendar year following the earlier of the
                  calendar year in which he attains age 70-1/2 or the calendar
                  year in which he retires.

            (iii) The applicable distribution period for required minimum
                  distributions for distribution calendar years up to and
                  including the distribution calendar year that includes the
                  Participant's death is determined using the Internal Revenue
                  Services' Uniform Lifetime Table for the Participant's age as
                  of the Participant's birthday in the relevant distribution
                  calendar year.

      (c)   Distributions Before Required Beginning Date.

            Lifetime distributions made before the Participant's Required
            Beginning Date for calendar years before the Participant's first
            distribution calendar year, need not

                                       44
<PAGE>

            be made in accordance with this Section 7.11. However, if
            distributions commence before the Participant's Required Beginning
            Date under a particular distribution option, the distribution option
            fails to satisfy the provisions of Section 401(a)(9) of the Code at
            the time distributions commence, if under the terms of the
            particular distribution option, distributions to be made for the
            Participant's first distribution calendar year or any subsequent
            distribution calendar year fail to satisfy Section 401(a)(9).

      (d)   Death After Distributions Have Begun.

            If distribution of the Participant's interest has begun and the
            Participant dies before his entire interest has been distributed to
            him, the remaining portion of such interest will continue to be
            distributed at least as rapidly as under the method of distribution
            being used prior to the Participant's death. The applicable
            distribution period for distribution calendar years after the
            distribution calendar year containing the Participant's death is
            either the longer of the remaining life expectancy of the
            Participant's designated Beneficiary or the remaining life
            expectancy of the Participant. If the Beneficiary is not an
            individual or does not otherwise meet the requirements of Section
            401(a)(9) of the Code, the remaining life expectancy of the
            Participant must be utilized.

      (e)   Death Before Required Beginning Date.

            If the Participant dies before his Required Beginning Date and
            distribution of his interest, distribution of the Participant's
            entire interest shall be completed by December 31 of the calendar
            year containing the fifth anniversary of the Participant's death.

      (f)   Minimum Distribution Amount.

            If a Participant's benefit is to be distributed over:

            (i)   A period not extending beyond the life expectancy of the
                  Participant or the joint life and last survivor expectancy of
                  the Participant and the Participant's designated Beneficiary,
                  or

            (ii)  A period not extending beyond the life expectancy of the
                  designated Beneficiary,

                                       45
<PAGE>

            the amount required to be distributed for each calendar year
            beginning with the distributions for the first distribution calendar
            year, must be at least equal to the quotient obtained by dividing
            the Participant's benefit by the applicable distribution period. For
            distribution calendar years up to and including the distribution
            calendar year that includes the Participant's death, the required
            minimum distribution amount is determined under the Uniform Lifetime
            Tables promulgated by the Internal Revenue Service for the
            Participant's age as of his birthday in the relevant calendar year.
            If a Participant dies on or after the Required Beginning Date, the
            distribution period available for calculating the amount that must
            be distributed during the distribution calendar year that includes
            the Participant's death is determined as if the Participant had
            lived throughout the year. If the sole designated Beneficiary of a
            Participant is the Participant's surviving spouse, for required
            minimum distributions during the Participant's lifetime, the
            applicable distribution period is the longer of the distribution
            period determined in accordance with the preceding three sentences
            or the joint life expectancy of the Participant and spouse using the
            Participant's and spouse's attained ages as of the Participant's and
            spouse's birthdays in the distribution calendar year. The spouse is
            the sole designated Beneficiary for purposes of determining the
            applicable distribution period only if the spouse is the sole
            beneficiary of the Participant's entire interest at all times during
            the distribution calendar year.

      (g)   Life expectancies for purposes of determining required minimum
            distributions must be computed using the Single Life Table and the
            Joint Last Survivor Table promulgated by the Internal Revenue
            Service.

      (h)   If distributions are made in accordance with this Section 7.11, the
            minimum distribution incidental benefit requirement is satisfied.

      (i)   Timing of Distributions. The minimum required distribution required
            for the Participant's first distribution calendar year must be made
            on or before the Participant's Required Beginning Date. The minimum
            distribution for other calendar years, including the minimum
            distribution for the

                                       46
<PAGE>

            distribution calendar year in which the Participant's Required
            Beginning Date occurs, must be made on or before December 31 of that
            calendar year.

                                       47
<PAGE>

                                    SECTION 8

                     WITHDRAWALS AND LOANS DURING EMPLOYMENT

8.1   DISCRETIONARY WITHDRAWALS

      A Participant may elect to withdraw from the Trust Fund up to 100% of his
      Rollover Contribution Account at his discretion and without a suspension.
      However, no more than four (4) discretionary withdrawals may be made by a
      Participant during any one calendar year.

      The withdrawal shall be made as soon as practicable following the date on
      which the request for the withdrawal is made. The amount available for
      withdrawal is based on the balance in the Rollover Contribution Account as
      of the date the withdrawal request is processed by the recordkeeper
      appointed by the Company, reduced by the amount of any outstanding loan
      balance(s), if any.

      Amounts withdrawn under this Section 8.1 shall be debited to each Fund
      (except the Loan Fund) in proportion to the balance in each account from
      which the withdrawal to be made is invested in each such Fund.

8.2   HARDSHIP WITHDRAWALS

      (a)   A Participant may request a hardship withdrawal, subject to the
            approval of the Plan Administrator, in an amount which does not
            exceed the amount required to meet the immediate and heavy financial
            need created by the hardship and provided the Participant has
            obtained all distributions (other than hardship distributions) and
            all nontaxable loans available under all qualified plans maintained
            by the Company or an Affiliated Company.

            The Plan Administrator will not approve a hardship withdrawal for
            less than $200. The Plan Administrator shall promptly review the
            hardship withdrawal request and notify the Participant that the
            request has been approved or disapproved. The Plan Administrator
            shall approve requests for hardship withdrawals using the objective
            criteria set forth in paragraph (b) below as well as documentary
            evidence submitted by the Participant to substantiate the reason for
            and the amount of the need. The only discretion to be exercised by
            the Plan Administrator is that which is reasonably necessary to
            determine whether the objective conditions have been met.

                                       48
<PAGE>

            In the event amounts are withdrawn from the Participant's Before-Tax
            Contributions Account in accordance with this Section 8.2 before age
            59-1/2, Participant Contributions made under Section 3.1 shall be
            suspended for a period of twelve consecutive months commencing the
            next available pay period following the date of withdrawal.

      (b)   For purposes of this Section, a withdrawal shall be deemed to be
            made on account of an immediate and heavy financial need of the
            Participant if the withdrawal is on account of:

            (i)   medical expenses described in Section 213(d) of the Code
                  incurred by the Participant, the Participant's Spouse, or any
                  dependent of the Participant (as defined in Section 152 of the
                  Code) or necessary for these persons to obtain medical care
                  described in Section 213(d) of the Code;]

            (ii)  purchase (excluding mortgage payments) of a principal
                  residence for the Participant;

            (iii) payment for tuition, related educational fees, and room and
                  board expenses, for the next semester or quarter of
                  post-secondary education for the Participant, his Spouse,
                  children or dependents; or

            (iv)  the need to prevent the eviction of the Participant from his
                  principal residence or foreclosure on the mortgage of the
                  Participant's principal residence.

      (c)   A hardship withdrawal made by a Participant under this Section 8.2
            shall be withdrawn from the Participant's Total Account:

            (i)   First, from the Vested balance in his Matching Contributions
                  Account;

            (ii)  Next, from the balance in his Before-Tax Contributions
                  Account, exclusive of earnings; then

            (iii) From the balance in his Rollover Contributions Account,
                  exclusive of earnings.

                                       49
<PAGE>

      (d)   Amounts withdrawn under paragraph (c) above shall be debited from
            each Fund (except the Loan Fund) in proportion to the balance of
            each account from which the withdrawal to be made is invested in
            such Fund.

      (e)   Requests for hardship withdrawals may be made at any time, but not
            more frequently than once a year for reasons other than payment of
            post-secondary education expenses. Requests for hardship withdrawals
            for payment of post-secondary education expenses may be made as
            often as every calendar quarter, and may be made in addition to a
            withdrawal for a non-tuition payment reason. All withdrawal
            elections shall be made by a Participant on written forms supplied
            by the Trustee for that purpose.

8.3   RESTORATION OF WITHDRAWALS

      A Participant shall not be permitted to restore to the Plan any amounts
      withdrawn under the provision of Sections 8.1 or 8.2.

8.4   TIMING OF WITHDRAWALS

      All withdrawals shall be made as soon as practicable after the Valuation
      Date designated by the Participant in his election. The Plan Administrator
      in its discretion may authorize an advance payment in an amount equal to
      all or a portion of the amount of the requested withdrawal, with the
      balance, if any, to be made as soon as practicable after such Valuation
      Date. To the extent that any withdrawals are made from the Company Stock
      Fund, such withdrawals shall be made in cash. Withdrawals of shares are
      not permitted.

8.5   LOANS

      A Participant or any beneficiary who is a party in interest (as defined in
      Section 3(14) of ERISA) may obtain a loan from the Trust upon proper
      application to the Trust pursuant to procedures established by the
      Company. For purposes of this Section 8.5, the term "Participant" shall
      include an Alternate Payee described in the preceding sentence. The nature
      and amount of the loan must conform to the following rules and limits:

      (a)   The Participant may borrow only the assets in his Before-Tax
            Contribution Account and his Rollover Account.

      (b)   The minimum loan amount is $1,000;

      (c)   The maximum loan amount is the lesser of (i) 50 percent (50%) of the
            Participant's Before-Tax Contribution Account and his Rollover
            Account reduced by any current

                                       50
<PAGE>

            outstanding loan balance or (ii) $50,000, reduced by the
            Participant's highest outstanding loan balance from the Plan during
            the one-year period ending on the day before the date on which such
            loan is made. The Trustee will accept only the Participant's accrued
            benefit as collateral for loans.

      (d)   The term of the loan cannot exceed five (5) years. The term of a
            loan may be extended beyond five (5) years for Participants on
            military leave from the Company with the term of the extension not
            to exceed the length of such military leave.

      (e)   A Participant may have no more than two loans from this Plan in
            effect at any one time.

      (f)   The Company will establish the rate of interest to be charged on all
            loan balances. This rate of interest will be one percent (1%) in
            excess of the prime rate as published in the Wall Street Journal on
            the first business day of the month in which the loan is granted. A
            Participant on a military leave from the Company may be entitled to
            the interest rate reduction provided in the Soldiers' and Sailors'
            Civil Relief Act of 1940.

      (g)   The loan shall be repaid by the Participant, if the Participant is
            an active Employee, through payroll deduction as established by the
            loan agreement. If the borrower is not an active Employee, the
            borrower and the Company shall agree to a repayment schedule which
            shall be incorporated in the loan agreement.

      (h)   The loan may be repaid in full at a date earlier than provided in
            the loan agreement with no penalty.

      (i)   Any loan fees charged will be paid by the Participant from funds
            other than those in the Trust.

      (j)   Interest paid by the Participant will be credited directly to the
            Participant's account.

      (k)   The loan amount will be taken on a pro-rata basis from the
            beneficial loan interest in all investment options at the time of
            the loan and on a pro-rata basis from Company, Participant and
            Rollover Contributions at the time of the loan. Repayments will be
            redeposited into the Participant's current investment options and
            contributions using the current ratio.

      (l)   If a Participant or Beneficiary does not repay a loan which he may
            have from the Plan, the Trustee will declare such loan to be in
            default when the loan is in arrears of repayment for more than 90
            days. The Trustee may take steps to preserve Plan assets, if
            necessary, in the event of such default. Once default has been
            established, the amount

                                       51
<PAGE>

            of the loan in default (unpaid principal and the interest accrued
            thereon) shall be treated as a distribution from the Plan in the
            Plan Year in which the default occurs. The amount of the default
            will not constitute part of subsequent distributions from the Trust.

      (m)   Loan repayments will be suspended under this Plan as permitted under
            Section 414(u) of the Code.

8.6   TIMING OF LOANS

      Loans may be applied for on any business day.

8.7   COMPLIANCE WITH LAW

      The   rules and limits for this loan provision may be changed from time to
            time to comply with the Internal Revenue Code and with regulations
            issued thereunder.

                                       52
<PAGE>

                                    SECTION 9

                           ADMINISTRATION OF THE PLAN

9.1   THE PLAN ADMINISTRATOR

      The Timken Company is the named Fiduciary of the Plan and the Plan
      Administrator, unless it appoints a Plan Administrator.

9.2   POWERS OF THE PLAN ADMINISTRATOR

      The Plan Administrator shall have the sole responsibility for the
      administration of the Plan with all powers necessary to enable it properly
      to carry out its duties in that respect, and its decisions upon all
      matters within the scope of its authority shall be final. Subject to this
      Section 9 and ERISA, the Plan Administrator shall have and shall exercise
      complete discretionary authority to construe, interpret, and apply all of
      the terms of the Plan, including all matters relating to eligibility for
      benefits, amount, time or form of benefits, and any disputed or doubtful
      terms. In exercising such discretion, the Plan Administrator shall give
      controlling weight to the intent of the sponsor of the Plan. Specifically,
      but not in limitation of the broad power herein conferred, the Plan
      Administrator shall have the power, pursuant to the Plan, to:

      (a)   Determine the following:

            (i)   Whether a person working for the Company is an Eligible
                  Employee within the definition of that term as used in the
                  Plan;

            (ii)  The Service of any such Employee;

            (iii) All other questions involving construction of the Plan or any
                  of the terms or provisions thereof.

      (b)   Examine the administration by the Trustee of the Trust Fund, to take
            action where necessary regarding any acts or omissions of the
            Trustee in the administration of the Trust Fund and to make any
            claim against the Trustee for negligence or otherwise with reference
            to such acts or omissions. The responsibility of the Plan
            Administrator in this area is limited to administrative actions and
            procedures of the Plan Administrator and does not include investment
            policies, practices or management.

      (c)   Engage an independent qualified public accountant to conduct an
            examination of any financial statement of the Plan so as to enable
            him to conduct an opinion as to any other financial statements
            necessary for the operation of the Plan.

                                       54
<PAGE>

      (d)   Appoint such agents and subcommittees as it may deem necessary for
            the effective exercise of its powers and duties and to delegate to
            such agents and subcommittees any powers and duties, both
            ministerial and discretionary, as the said Plan Administrator shall
            deem expedient and appropriate.

      (e)   Authorize the Trustee to incur expenses not provided for in the
            Trust Agreement and to reimburse the Trustee for any expenses so
            incurred.

      (f)   Adopt such rules of procedure as it shall deem necessary in the
            administration of the Plan, including, but not limited to,
            procedures for presenting claims for benefits under the Plan and for
            review of claims which are denied in whole or in part, and
            procedures for complying with the requirements of Section 414(p) of
            the Code with respect to Qualified Domestic Relations Orders.

      The decision of the Plan Administrator made in good faith upon any matter
      within the scope of its authority shall be final, but the Plan
      Administrator at all times in carrying out its decisions shall act in a
      uniform and nondiscriminatory manner and may from time to time set down
      uniform rules of interpretation and administration, which rules may be
      modified from time to time.

9.3   PLAN ADMINISTRATION

      The Plan Administrator shall have responsibility for the administration of
      this Plan, including power to construe this Plan, to determine all
      questions that shall arise hereunder, including particularly questions on
      eligibility and participation of Employees and allocations of Company
      contributions to Participants' Accounts and all matters necessary for it
      properly to discharge its duties, powers and obligations and to apply its
      established policies concerning the employment status of Participants.

      (a)   The Plan Administrator will make all determinations as to the right
            of any person to benefits under the Plan in accordance with the
            governing Plan documents and will ensure that Plan provisions are
            applied consistently with respect to similarly situated claimants.
            Any denial by the Plan Administrator of a claim for benefits under
            the Plan (other than a claim subject to Section 9.11) by a claimant,
            who may be a Participant or a Beneficiary, will be stated in writing
            by the Plan Administrator and delivered or mailed to the claimant
            within a reasonable period of time, but not later than 90 days after
            receipt of the claim by the Plan, unless the Plan Administrator
            determines that special circumstances require an extension of time
            for processing the claim. Written notice of the extension shall

                                       55
<PAGE>

            be furnished to the claimant prior to the termination of the initial
            90-day period. The extension notice shall indicate the special
            circumstances requiring an extension of time and the day by which
            the Plan expects to render the benefit determination, which cannot
            exceed a period of 90 days from the end of the initial determination
            period.

      (b)   The Plan Administrator shall provide a claimant with written or
            electronic notification of any adverse benefit determination. The
            notification shall set forth in a manner calculated to be understood
            by the claimant:

            (i)   The specific reason or reasons for the adverse benefit
                  determination;

            (ii)  Reference to the specific plan provisions on which the
                  determination is based;

            (iii) A description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation of why such material or information is necessary;

            (iv)  A description of the Plan's review procedures and the time
                  limits applicable to such procedures, including a statement of
                  the claimant's right to bring a civil action under Section
                  502(a) of the Act following an adverse benefit determination
                  on review.

      (c)   In addition, the Plan Administrator will provide an opportunity to
            any claimant whose claim for benefits has been denied an opportunity
            for a full and fair review of the denial. As part of the review, the
            Plan Administrator will:

            (i)   Provide a claimant at least 60 days following receipt of
                  notification of an adverse benefit determination within which
                  to appeal the determination;

            (ii)  Provide a claimant the opportunity to submit written comments,
                  documents, records, and other information relating to the
                  claim for benefits;

            (iii) Provide that a claimant shall be provided, upon request and
                  free of charge, reasonable access to, and copies of, all
                  documents, records, and other information relevant to the
                  claimant's claim for benefits;

                                       56
<PAGE>

            (iv)  Provide for a review that takes into account all comments,
                  documents, records, and other information submitted by the
                  claimant relating to the claim, without regard to whether such
                  information was submitted or considered in the initial benefit
                  determination.

      (d)   The Plan Administrator shall provide a claimant with written or
            electronic notification of the Plan's benefits determination on
            review within 60 days after the Plan Administrator receives the
            request for review. In the case of an adverse benefit determination,
            the notification shall set forth, in a manner calculated to be
            understood by the claimant:

            (i)   The specific reason or reasons for the adverse benefit
                  determination;

            (ii)  Reference to the specific plan provisions on which the
                  determination is based;

            (iii) A statement that the claimant is entitled to receive, upon
                  request and free of charge, reasonable access to, and copies
                  of, all documents, records, and other information relevant to
                  the claimant's claim for benefits;

            (iv)  A statement describing any voluntary appeal procedures offered
                  by the Plan and the claimant's right to obtain the information
                  about such procedures and a statement of the claimant's right
                  to bring an action under Section 502(a) of ERISA.

9.4   THE PLAN IS A VOLUNTARY ACT BY THE COMPANY

      Establishment and maintenance of the Plan constitute voluntary acts of the
      Company and are not to be deemed or construed to be a part of any contract
      of employment, or as giving any person any enforceable right against the
      Company. The Trust Fund shall be the sole source of all distributions or
      other benefits provided for in the Plan and the Company shall not be
      liable or responsible therefor. Neither the action of The Timken Company
      in establishing the Plan nor any action hereafter taken by the Board or by
      any Plan Administrators in connection with the Plan shall be construed as
      giving to any Employee a right to be retained in the service of the
      Company or any right or claim to any benefits under the Plan except as
      expressly provided in the Plan.

9.5   INDEMNIFICATION

                                       57
<PAGE>

      The Company may indemnify all persons, including Employees, who are or may
      be determined to be fiduciaries as that term is defined in ERISA,
      including independent professional advisors and service organizations
      which it is contractually obligated to indemnify to the extent permitted
      by law against any and all claims, loss, damages, expenses and liability
      from any action or failure to act except when such action or failure to
      act is due to the gross negligence, willful misconduct of willful breach
      of fiduciary duty of such person.

9.6   FIDUCIARY INSURANCE

      The Company may secure to the extent practicable and maintain in full
      force and effect insurance on behalf of all persons, including Employees,
      who are or may be determined to be fiduciaries, as that term is defined in
      ERISA, including independent professional advisors and service
      organizations which it is contractually obligated to indemnify, to cover
      liability or losses occurring by reason of the act or omission of each
      such person, unless such act or omission is due to the gross negligence,
      willful misconduct or willful breach of fiduciary duty of such person, and
      may secure and maintain in full force and effect insurance on behalf of
      other independent professional advisors and service organizations which
      are or may be determined to be fiduciaries, as that term is defined in
      ERISA.

9.7   FILINGS WITH THE PLAN ADMINISTRATOR

      For all purposes of the Plan, any designation or change of Beneficiary,
      distribution election, or other form or document required under the Plan
      shall become effective only upon receipt by the Plan Administrator or its
      delegate of such written designation, change, or election, or other form
      or document.

9.8   PAYEE UNKNOWN

      (a)   If the Plan Administrator is unable after any benefit becomes due
            hereunder to authorize payment because the whereabouts of a
            Participant or Beneficiary cannot be ascertained, the Plan
            Administrator shall send written notice of such benefit to the
            Participant or Beneficiary at his last known mailing address as
            shown by the records of the Company. The Total Account payable to
            the Participant or Beneficiary shall continue to be maintained until
            the earlier of:

            (i)   the date the Participant or Beneficiary entitled to the
                  benefit makes application therefor, or

            (ii)  the fifth anniversary of the Participant's or Beneficiary's
                  Benefit Commencement Date.

                                       58
<PAGE>

      (b)   If the Plan Administrator, after making a reasonably diligent
            effort, cannot locate the Participant or Beneficiary for a period of
            five years, the amount payable to such Participant or Beneficiary
            shall be forfeited on the Valuation Date next following the fifth
            anniversary of the Participant's or Beneficiary's Benefit
            Commencement Date. Forfeitures arising under this Section 9.8 shall
            be applied as provided in Section 4.3.

            Should the Participant or Beneficiary subsequently make application
            for benefits, the amount so forfeited shall be paid to the
            Participant or Beneficiary, and the Company shall reimburse the
            Trust Fund for the payment by making a special contribution for such
            purpose or by using forfeitures.

9.9   RELIANCE ON STATEMENTS OF PARTICIPANTS AND BENEFICIARIES

      The Company, any Affiliated Company, the Plan Administrator, and the
      Trustee may rely upon any certificate, statement, or other representation
      made to them by any Employee, Participant, Spouse, or other Beneficiary
      with respect to age, length of service, leave of absence, date of
      cessation of employment, marital status, or other fact required to be
      determined under any of the provisions of this Plan, and shall not be
      liable on account of any payment or the performance of any act in reliance
      upon any such certificate, statement, or other representation.

      Any such certificate, statement or other representation made by an
      Employee or Participant shall be conclusively binding upon such Employee
      or Participant and his Spouse or other Beneficiary, and such Employee,
      Participant, Spouse, or Beneficiary shall thereafter and forever be
      estopped from disputing the truth and correctness of such certificate,
      statement, or other representation.

9.10  DISTRIBUTION TO MINORS AND INCAPACITATED PAYEES

      In the event a distribution is to be made to a minor or an adult unable to
      attend to his affairs for any reason (including, but not limited to,
      illness, infirmity, or mental incapacity), the Plan Administrator may in
      its discretion direct that such distribution be made (a) directly to him,
      or (b) to the parent or other legal guardian, Plan Administrator, or
      conservator of such person, or to a custodian for a minor Beneficiary
      under the Uniform Gifts to Minors Act. Payment to any such person shall
      fully discharge the Plan Administrator, Trustee, Company, and Plan from
      further liability on account thereof.

9.11  CLAIMS FOR DISABILITY BENEFITS

      (a)   Notwithstanding the foregoing provisions of this Section 9, any
            denial by the Plan Administrator of a claim for benefits with
            respect to a Participant's Disability will be stated in writing by
            the Plan Administrator and delivered or

                                       59
<PAGE>

            mailed to the claimant within a reasonable period of time, but not
            later than 45 days after receipt of the claim by the Plan, unless
            the Plan Administrator determines that special circumstances require
            an extension of time for processing the claim, due to matters beyond
            the control of the Plan Administrator. Written notice of the
            extension shall be furnished to the claimant prior to the
            termination of the initial 45-day period. The extension notice shall
            indicate the special circumstances requiring an extension of time
            and the day by which the Plan expects to render the benefit
            determination, which cannot exceed a period of 30 days from the end
            of the initial determination period. Additionally, if, prior to the
            end of the first 30-day extension period, the Plan Administrator
            determines that special circumstances require an extension of time
            for processing the claim, due to matters beyond the control of the
            Plan Administrator, the period for making the determination may be
            extended for up to an additional 30 days. Written notice of the
            second extension shall be furnished to the claimant prior to the
            termination of the first 30-day extension period. The second
            extension notice shall indicate the special circumstances requiring
            an extension of time and the day by which the Plan Administrator
            expects to render a decision, which cannot exceed a period of 30
            days from the end of the first 30-day extension period. Any notice
            of extension under this Section 9.11(a) shall also specifically
            explain the standards on which entitlement to a benefit is based,
            the unresolved issues that prevent a decision on the claim, and the
            additional information needed to resolve the issues. The claimant
            shall be afforded at least 45 days within which to provide the
            specified information. Additionally, in the event that a period of
            time is extended due to a claimant's failure to submit information
            necessary to decide a claim, the period for making the benefit
            determination shall be tolled from the date on which the
            notification of the extension is sent to the claimant until the date
            on which the claimant responds to the request for additional
            information.

      (b)   The Plan Administrator shall provide a claimant with written or
            electronic notification of any adverse benefit determination with
            respect to a Participant's Disability. The notification shall set
            forth in a manner calculated to be understood by the claimant:

            (i)   The specific reason or reasons for the adverse benefit
                  determination;

            (ii)  Reference to the specific plan provisions on which the
                  determination is based;

                                       60
<PAGE>

            (iii) A description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation of why such material or information is necessary;

            (iv)  A description of the Plan's review procedures and the time
                  limits applicable to such procedures, including a statement of
                  the claimant's right to bring a civil action under Section
                  502(a) of ERISA following an adverse benefit determination
                  on review;

            (v)   A specific reference to the internal rule, guideline, protocol
                  or other similar criterion, if any, that was relied upon in
                  making the adverse determination or a statement that such
                  rule, guideline, protocol, or other similar criterion, if any,
                  was relied upon in making the adverse determination and that a
                  copy of such rule, guideline, protocol, or other similar
                  criterion will be provided free of charge to the claimant upon
                  request.

      (c)   In addition, the Plan Administrator will provide an opportunity to
            any claimant whose claim for benefits has been denied under this
            Section 9.11 an opportunity for a full and fair review of the denial
            by a named fiduciary designated by the Plan Administrator that is
            neither the individual who made the adverse benefit determination
            that is the subject of the appeal, nor the subordinate of such
            individual. As part of the review, the named fiduciary will:

            (i)   Provide a claimant at least 180 days following receipt of
                  notification of an adverse benefit determination within which
                  to appeal the determination;

            (ii)  Provide a claimant the opportunity to submit written comments,
                  documents, records, and other information relating to the
                  claim for benefits;

            (iii) Provide that a claimant shall be provided, upon request and
                  free of charge, reasonable access to, and copies of, all
                  documents, records, and other information relevant to the
                  claimant's claim for benefits;

                                       61
<PAGE>

            (iv)  Provide for a review that takes into account all comments,
                  documents, records, and other information submitted by the
                  claimant relating to the claim, without regard to whether such
                  information was submitted or considered in the initial benefit
                  determination;

            (v)   Provide for a review that does not afford deference to the
                  initial adverse benefit determination;

            (vi)  Provide that, in deciding any appeal of any adverse benefit
                  determination that is based in whole or in part on a medical
                  judgment, the named fiduciary shall consult with a health care
                  professional who has appropriate training and experience in
                  the field of medicine involved in the medical judgment and who
                  is neither the individual who was consulted in connection with
                  the adverse benefit determination that is the subject of the
                  appeal, nor the subordinate of any such individual;

            (vii) Provide for the identification of medical or vocational
                  experts whose advice was obtained on behalf of the Plan in
                  connection with the claimant's adverse benefit determination,
                  without regard to whether the advice was relied upon in making
                  the initial benefit determination.

      (d)   The named fiduciary shall provide a claimant with written or
            electronic notification of the Plan's benefits determination on
            review within 45 days after the Plan receives the request for
            review, unless the named fiduciary determines that special
            circumstances require an extension of time for processing the claim.
            Written notice of the extension shall be furnished to the claimant
            prior to the termination of the initial 45-day period. The extension
            notice shall indicate the special circumstances requiring an
            extension of time and the day by which the named fiduciary expects
            to render the benefit determination, which cannot exceed a period of
            45 days from the end of the initial determination period. In the
            case of an adverse benefit determination, the notification shall set
            forth, in a manner calculated to be understood by the claimant:

            (i)   The specific reason or reasons for the adverse benefit
                  determination;

                                       62
<PAGE>

            (ii)  Reference to the specific plan provisions on which the
                  determination is based;

            (iii) A statement that the claimant is entitled to receive, upon
                  request and free of charge, reasonable access to, and copies
                  of, all documents, records, and other information relevant to
                  the claimant's claim for benefits;

            (iv)  A statement describing any voluntary appeal procedures offered
                  by the Plan and the claimant's right to obtain the information
                  about such procedures and a statement of the claimant's right
                  to bring an action under Section 502(a) of ERISA

            (v)   A specific reference to the internal rule, guideline, protocol
                  or other similar criterion, if any, that was relied upon in
                  making the adverse determination or a statement that such
                  rule, guideline, protocol, or other similar criterion, if any,
                  was relied upon in making the adverse determination and that a
                  copy of such rule, guideline, protocol, or other similar
                  criterion will be provided free of charge to the claimant upon
                  request.

      To the extent permitted by applicable law, the determination on review
      shall be final and binding on all interested persons. In performing the
      duties under this Section 9.11, the named fiduciary shall have the same
      powers to interpret the Plan and make factual findings with respect
      thereto as are granted to the Plan Administrator under Section 9.2.

                                       63
<PAGE>

                                   SECTION 10

                           ADMINISTRATION OF THE TRUST

10.1  TRUST AGREEMENT

      The Company has entered into a Trust Agreement, hereinbefore and
      hereinafter referred to as "the Trust Agreement".

10.2  PROVISIONS OF THE TRUST AGREEMENT

      Pursuant to the terms and provisions of the Trust Agreement, such Trustees
      as the Company may appoint, will receive and invest all contributions made
      under the Plan by the Company and by the Participants to the Trust Fund
      held by the Trustees and all income derived therefrom. The Company may
      remove the Trustee and may appoint successor or additional trustees and
      may divide their duties and responsibilities as it sees fit.

10.3  EXCLUSIVE BENEFIT OF PARTICIPANTS

      All assets of the Trust Fund, whether representing contributions made by
      the Company or by the Participants, shall be held by the Trustees as a
      trust fund for the benefit of Participants and Beneficiaries under the
      Plan. In no event shall it be possible at any time prior to the
      satisfaction of all liabilities, fixed or contingent, under the Plan, for
      any part of the assets of the Trust Fund whether principal or income, to
      be used for, or diverted to, purposes other than for the exclusive benefit
      of such Participants and their Beneficiaries.

10.4  DIRECTIONS OF THE PLAN ADMINISTRATOR

      The Trust Agreement also specifically provides, among other things, for
      the investment or reinvestment of the Trust Fund and the income derived
      therefrom, and for the management of such Trust Fund, the responsibilities
      and immunities of the Trustees, the removal of the Trustees and the
      appointment of successors, accountings by the Trustees and the
      disbursement of the Trust Fund in accordance with the direction of the
      Plan Administrator.

10.5  COORDINATION OF PLAN AND TRUST AGREEMENT

      The rights of all persons under the Plan are subject to all the terms and
      provisions of said Trust Agreement.

                                       64
<PAGE>

10.6  PENSION INVESTMENT COMMITTEE

      The Pension Investment Committee of The Timken Company shall exercise all
      powers under the Plan which relate to the investment policy, practice and
      management of the assets of the Plan, including the selection of the
      investment funds hereunder. In furtherance of its duties it may engage
      investment managers, who may be authorized to direct the Trustee in the
      making of investments, and may discharge any investment manager so engaged
      and engage other investment managers at any time in its sole judgment. The
      Pension Investment Committee is the named fiduciary for investment policy
      of the Trust Fund.

10.7  RETURN OF CONTRIBUTIONS

      Nothing herein shall prohibit a return to the Company, within one year
      after payment, of excess sums contributed to the Trust Fund as a result of
      a mistake of fact. In the event that the Commissioner of Internal Revenue
      (or his delegate) determines that the Plan is not initially qualified
      under the Code, any Company Contributions made to the Plan shall be
      returned to the Company within one year after the date the initial
      qualification is denied, provided application for qualification is made by
      the time prescribed by law for filing the Company's return for the taxable
      year in which the Plan is adopted, or such later date as the Secretary of
      the Treasury may prescribe.

      Each Company Contribution is conditioned on the deductibility of the
      contribution under Section 404 of the Code, and to the extent such
      contribution is disallowed, the contribution shall be returned to the
      Company within one year after the date of disallowance.

                                       65
<PAGE>

                                   SECTION 11

                  AMENDMENT, TERMINATION, OR MERGER OF THE PLAN

11.1  RIGHT TO AMEND

      The Company expressly reserves the right to amend or discontinue the Plan
      by action of the Board at any time.

      The Board or the Plan Administrator shall have the authority to waive
      requirements as to eligibility in the case of those Participants whose
      standing has changed so as to otherwise render them ineligible to
      participate. No amendment may be made which will deprive any Employee of
      any interest hereunder that has accrued to him.

11.2  RIGHT TO TERMINATE

      The Plan may be terminated at any time by resolution of the Board provided
      that no such action shall permit any part of the assets of the Trust Fund,
      whether principal or income, to revert to the Company or to be used for or
      diverted to purposes other than for the exclusive benefit of Participants
      and their Beneficiaries until all liabilities, fixed or contingent, under
      the Plan with respect to such Participants and Beneficiaries shall have
      been satisfied in full.

11.3  NOTICE OF TERMINATION

      In the event that the Company determines to amend or discontinue the Plan,
      in whole or in part, the Company will give the Plan Administrator and the
      Trustee at least one month's prior written notice thereof.

11.4  TERMINATION OF TRUST

      If the Plan is terminated, all of the Participants' Total Accounts shall
      be nonforfeitable. The Trust Fund shall be revalued as of the date the
      remaining assets are to be distributed, and the then current value of all
      Total Accounts shall be distributed in the manner described in Section 7.

      If another defined contribution plan (other than an employee stock
      ownership plan as defined in Section 4975(e)(7) of the Code) is
      established or maintained (within the meaning of Section 401(k)(l0)(A)(i)
      of the Code) distribution shall not be made until a Participant's actual
      separation from service (within the meaning of Section 401(k)(2)(B) of the
      Code).

                                       66
<PAGE>

      Until all Total Accounts are fully distributed, any remaining Total
      Accounts held in the Trust Fund shall continue to be adjusted in
      accordance with the provisions of Section 5.

11.5  DISCONTINUANCE OF CONTRIBUTIONS

      The Company may at any time, by written resolution of the Board,
      completely discontinue its participation in and contributions under the
      Plan. If the Company completely discontinues its contributions under the
      Plan, either by resolution of the Board or for any other reason, and such
      discontinuance is deemed a partial termination of the Plan within the
      meaning of Section 411(d)(3) of the Code, the amounts credited to the
      Total Accounts of all affected Participants (other than Participants who,
      in connection with the discontinuance of Company contributions, transfer
      employment to a Company which continues to contribute under the Plan)
      shall be nonforfeitable.

11.6  MERGER OF PLANS

      Subject to the provisions of this Section, the Plan may be amended to
      provide for the merger of the Plan with, or a transfer of all or part of
      its assets to, any other qualified plan within the meaning of Section
      401(a) of the Code. In the case of any merger or consolidation with, or
      transfer of assets or liabilities to, any other plan, each Participant in
      this Plan shall be entitled to a benefit immediately after such merger,
      consolidation, or transfer equal to or greater than the benefit the
      Participant would have received if the Plan had been terminated
      immediately prior to the merger, consolidation, or transfer

                                       67
<PAGE>

                                   SECTION 12

                            MISCELLANEOUS PROVISIONS

12.1  GENDER

      Whenever the word "he" or "his" or "him" is used in the Plan, such word is
      intended to embrace within its purview the word "she" or "her", as may be
      appropriate.

12.2  INVESTMENTS AND EXPENSES

      All Trustees' fees, investment manager's fees and administrative costs
      shall be borne by the Company, except for investment manager fees charged
      by the Investment Options shall be borne by the Plan.

12.3  VOTING RIGHTS

      Before each annual or special meeting of its shareholders, the Company
      shall cause to be furnished to each Participant having shares of Company
      Stock credited to his Total Account, a copy of the proxy material,
      together with a form requesting instructions of the Trustee on how such
      shares credited to the Participant's Total Account should be voted. Upon
      receipt of such instructions, the Trustee shall vote such shares as
      instructed. Any shares held by the Trustee as to which it receives no
      voting instructions shall be voted proportionally, as it votes the shares
      for which it has received instructions.

12.4  STATEMENTS OF ACCOUNTS

      The Plan Administrator shall cause to be furnished to each Participant on
      a quarterly basis, but no less frequently than once in each Plan Year, a
      statement showing the value of his Total Account invested in each
      investment Fund and the Vested portion of his Total Account.

12.5  NONALIENABILLTY OF BENEFITS

      Participants and Beneficiaries are entitled to all the benefits
      specifically set out under the terms of the Plan, but neither those
      benefits nor any of the property rights in the Plan are assignable or
      distributable to any creditor or other claimant of a Participant or
      Beneficiary. A Participant will not have the right to anticipate, assign,
      pledge, accelerate or in any way dispose of or encumber any of the monies
      or benefits or other property that may be payable or become payable to
      such Participant or his Beneficiary provided, however, the Plan
      Administrator shall recognize and comply with a valid Qualified Domestic
      Relations Order as defined in Section 414(p) of the Code. The first
      sentence of this Section 12.5 shall not apply with respect to any offset
      to a Participant's benefits expressly provided for in a judgment, order,
      decree or settlement agreement described in Section 401(a)(13)(C) of the
      Code.

                                       68
<PAGE>

12.6  ACQUISITIONS AND DIVESTITURES

      (a)   If the Company or a wholly-owned domestic subsidiary of the Company
            shall acquire either all or substantially all of the assets or
            shares of stock of any other company or business in the United
            States, and if such other company or business becomes a
            Participating Subsidiary hereunder, the Company, in the discretion
            of the Board of Directors, or such Plan Administrator as it may
            appoint, may authorize that service with such acquired company or
            business shall be taken into account for any period prior to the
            date on which such other company or business was acquired.

      (b)   If the Company shall sell either all or substantially all of the
            assets or shares of stock of any subsidiary, division or unit of the
            Company, or if the Company shall sell either all or substantially
            all of the shares of stock of any joint venture in which the Company
            is a partner, the Company, in the discretion of the Board, or such
            Plan Administrator as it may appoint, may direct any or all of the
            following actions be taken with respect to Participants employed on
            the date of sale by such subsidiary, division, unit or joint
            venture:

            (i)   The vesting schedule under Section 6.2 of the Plan (and. if
                  applicable, under any Schedule of this Plan) shall be
                  accelerated to the extent authorized by the Board, or such
                  officer as it may appoint;

            (ii)  The Participants' entire interest in all Funds shall be
                  transferred to the Money Market Fund pending distribution of
                  all or a portion of such interest to such Participants or to a
                  successor trustee under another qualified plan and trust to
                  which such Participants shall participate;

            (iii) Any outstanding loan balance shall be repaid in full or shall
                  be deemed a withdrawal under Section 8.6 of the Plan;

            (iv)  Any such other action which the Board, or such officer as it
                  may appoint, deems necessary or advisable under the
                  circumstances, provided that such action shall be applied in a
                  uniform and nondiscriminatory manner to all Participants of
                  such Participating Subsidiary.

                                       69
<PAGE>

12.7  CHANGE IN OPERATIONS

      In the event the operations of any subsidiary, division, unit or plant of
      the Company changes due to the occurrence of any event which the Board, or
      such Plan Administrator as it may appoint, deems to result in a layoff or
      termination of employment of any Participant employed by such subsidiary,
      division, unit or plant, the Board, or such Plan Administrator as it may
      appoint, may direct any or all of the following actions be taken with
      respect to those Participants who are laid off or whose employment has
      been terminated as a result of such change in operations:

      (i)   The vesting schedule under Section 6.2 of the Plan (and. if
            applicable, under any Schedule of this Plan) may be accelerated to
            the extent authorized by the Board, or such Plan Administrator as it
            may appoint;

      (ii)  Any such other action which the Board, or such Plan Administrator as
            it may appoint, deems necessary or advisable under the
            circumstances, provided that such action shall be applied in a
            uniform and nondiscriminatory manner to all Participants similarly
            situated.

12.8  LIMITATION ON DISTRIBUTIONS

      Notwithstanding any provision of this Plan regarding payment to
      Participants, Beneficiaries or any other person, the Plan Administrator
      may withhold payment to any person if the Plan Administrator determines
      that such payment may expose the Plan to conflicting claims for payment.
      As a condition for any payments, the Plan Administrator may require such
      consent, representations, releases, waivers or other information, as it
      deems appropriate. To the extent required by law, the Plan Administrator
      shall comply with the terms of any judgment or other judicial decree,
      order, settlement or agreement including, but not limited to, a Qualified
      Domestic Relations Order as defined in Section 414(p) of the Code.

12.9  LIMITATION ON REVERSION OF CONTRIBUTIONS

      Except as provided in subsections (a) through (c) below, Employer
      contributions made under the Plan will be held for the exclusive benefit
      of Participants or Beneficiaries and may not revert to the Employer.

      (a)   A contribution made by the Employer under a mistake of fact may be
            returned to the Employer within one (1) year after it is contributed
            to the Plan.

                                       70
<PAGE>

      (b)   A contribution may be returned to the Employer, if the Plan does not
            initially qualify under Sections 401(a) and 501(a) of the Code,
            within one (1) year after the date the Plan is denied qualification.

      (c)   A contribution that is not deductible under Section 404 of the Code
            shall be returned, to the extent the deduction is disallowed, to the
            Employer within one (1) year after the disallowance.

      The maximum contribution that may be returned to the Employer will not
      exceed the amount actually contributed to the Plan, or the value of such
      contribution on the date it is returned to the Employer, if less.

12.10 VOLUNTARY PLAN

      The Plan is purely voluntary on the part of the Company and neither the
      establishment of the Plan nor any Plan amendment nor the creation of any
      fund or account, nor the payment of any benefits will be construed as
      giving any Employee or any other person a legal or equitable right against
      the Company, any Affiliate, any trustee, any funding agent or the Plan
      Administrator unless specifically provided for in this Plan or conferred
      by affirmative action of the Plan Administrator or the Company according
      to the terms and provisions of this Plan. Such actions will not be
      construed as giving any Employee or Participant the right to be retained
      in the service of any Company or Affiliated Employer. All Employees and
      Participants will remain subject to discharge to the same extent as though
      this Plan had not been established.

12.11 LIMITATION OF THIRD PARTY RIGHTS

      Nothing expressed or implied in the Plan is intended or will be construed
      to confer upon or give to any person, firm or association other than the
      Company, Employers, Participants and Beneficiaries, and their successors
      in interest, any right, remedy or claim under or by reason of this Plan,
      except as otherwise provided in Section 12.5.

12.12 INVALID PROVISIONS

      In case any provision of this Plan is held illegal or invalid for any
      reason, the illegality or invalidity will not affect the remaining parts
      of the Plan. The Plan will be construed and enforced as if the illegal and
      invalid provisions had never been included.

                                       71
<PAGE>

12.13 ONE PLAN

      This Plan may be executed in any number of counterparts, each of which
      will be deemed an original and the counterparts will constitute one and
      the same instrument and may be sufficiently evidenced by any one
      counterpart.

12.14 GOVERNING LAW

      The Plan will be governed by and construed according to the federal laws
      governing employee benefit plans qualified under the Code and according to
      the laws of the state of Ohio where such laws are not in conflict with the
      federal laws.

      IN WITNESS WHEREOF, the Company has caused this instrument to be executed
      by its duly authorized representative effective as of the 16th day of
      February, 2003.

      Date: March 11, 2003        By: /s/ Roger W. Lindsay
           ------------------        ---------------------------------------
                                  Roger W. Lindsay
                                  Senior Vice President - Human Resources and
                                  Organizational Advancement

                                       72Second Amendment to Revolving Credit Agreement

Exhibit 10.21 
 
SECOND AMENDMENT 
 
THIS SECOND AMENDMENT is dated as of November 26, 2002 (this “Second Amendment”) between HUGHES
ELECTRONICS CORPORATION, a corporation organized and existing under the laws of Delaware (the “Borrower”), and GENERAL MOTORS ACCEPTANCE CORPORATION, a corporation organized under the laws of Delaware (the
“Lender”). 
 
W
I T N E S S E T H: 
 
WHEREAS, the Borrower and Lender entered into a certain Revolving Credit Agreement dated as of October 1, 2001, which agreement was amended by that certain First Amendment to Credit Agreement (the
“First Amendment”) dated as of February 20, 2002 (as amended by the First Amendment, the “Credit Agreement”); and 
 
WHEREAS, the Borrower and the Lender entered into a certain Loan Set-Off and Security Agreement dated as of
October 1, 2001, which agreement was amended by the First Amendment (as amended by the First Amendment, the “Loan Set-Off and Security Agreement”); and 
 
WHEREAS, the Borrower, the Lender, Bank of America, N.A., as administrative agent under the Existing Credit
Agreement (the “Administrative Agent”) and Bank of America, N.A. as collateral agent under the Collateral Documents (as defined in the Existing Credit Agreement) (the “Collateral Agent”)
entered into a certain Intercreditor Agreement dated as of February 20, 2002; and 
 
WHEREAS, the Borrower and the Lender have agreed to amend the First Amendment in the manner provided below; and 
 
WHEREAS, the Borrower and the Lender have agreed to further amend the Credit Agreement and the Loan Set-Off and Security Agreement in the
manner provided below; and 
 
WHEREAS, the
Borrower, Lender, Administrative Agent and Collateral Agent have agreed to amend the Intercreditor Agreement in the manner provided below. 
 
NOW, THEREFORE, the parties hereto hereby agree as follows: 
 
1.        Defined Terms. Except as otherwise expressly
specified herein, the terms defined in the Credit Agreement shall have their defined meanings when used herein. 
 
2.        Second Amendment of the Credit Agreement. The Credit Agreement (including the
Exhibits thereto) is hereby further amended in accordance with Exhibit A hereto: (a) by deleting each term thereof which is lined out; and (b) by inserting each term thereof which is double underlined, in each case in the place where such
term appears therein. 
 
3.        Second Amendment of the Loan Set-Off and Security Agreement. The Loan Set-Off and Security Agreement is hereby further amended in accordance with Exhibit B hereto: (a)

by deleting each term thereof which is lined out; and (b) by inserting each term thereof which is double underlined, in each case in the
place where such term appears therein. 
 
4.        Amendment to Intercreditor Agreement. Concurrently with the execution of this Second Amendment, the Intercreditor Agreement is being amended as set forth in Exhibit C
(as so amended, or as hereafter amended, modified or supplemented, the “Intercreditor Agreement”). 
 
5.        Amendment to First Amendment. The First Amendment is hereby amended in accordance
with Exhibit D hereto: (a) by deleting each term thereof which is lined out; and (b) by inserting each term thereof which is double underlined, in each case in the place where such term appears therein. 
 
6.        Existing
Credit Agreement. Concurrently with the execution of this Second Amendment, the Existing Credit Agreement is being amended and restated in its entirety as set forth in Exhibit E (as so amended and restated, or as hereafter amended,
modified or supplemented, the “Existing Credit Agreement”). 
 
7.        No Other Amendments. Except as expressly stated herein, the provisions of the Credit Agreement, the Loan Set-Off and Security Agreement and the
First Amendment are and shall remain in full force and effect. 
 
8.        Amendment; Consent. This Second Amendment shall be effective upon the later to occur of (i) execution of this Second Amendment by the Borrower and the Lender and (ii) repayment
by Borrower to Lender of the $500 Million Promissory Note. 
 
9.        Representations of Borrower; Conditions Precedent; Reliance. The Borrower hereby affirms that, after giving effect to this Second Amendment, (i) all representations and
warranties set forth in that certain Amendment No. 8 to the Existing Credit Agreement dated the date hereof (the “8th Amendment”) are true and correct in all respects and (ii) all conditions precedent of Borrower set forth in the 8th
Amendment have been satisfied or waived. The Borrower acknowledges that the Lender is relying upon such representations and warranties and conditions precedent in executing this Second Amendment, and that any breach, inaccuracy or default by
Borrower of the terms of the 8th Amendment or any documents delivered by Borrower thereunder shall be subject to Section 9.1 of the Credit Agreement. 
 
10.        Governing Law; Counterparts. 
 
(a)        THIS SECOND AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 
(b)        This Second Amendment may be executed in any number of counterparts, all of which counterparts, taken together, shall constitute one and the same instrument. 
 

-2- 

 
IN WITNESS
WHEREOF, the parties have caused this Second Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written. 
 

	 HUGHES ELECTRONICS CORPORATION 

	
	 By:
	 	 
	

	
	 Title:
	 	 
	

 
 

	 GENERAL MOTORS ACCEPTANCE
 CORPORATION

	
	 By:
	 	 
	

	
	 Title:
	 	 
	

 

3 

EXHIBIT A 
 
CREDIT AGREEMENT 
 

 
EXHIBIT B

 
LOAN SET-OFF AND SECURITY AGREEMENT

EXHIBIT C 
 
INTERCREDITOR AGREEMENT 

EXHIBIT D 
 
FIRST AMENDMENT 

EXHIBIT E 
 
 
 
EXISTING CREDIT AGREEMENT 
 

 

 

 
Revolving Credit Agreement 
 
Dated as of October 1, 2001 
 
between 
 
Hughes
Electronics Corporation 
 
and

 
General Motors Acceptance Corporation

 

 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 Page

	 	  	 SECTION 1
	  	 
	 	  	 DEFINITIONS
	  	 
	
	 1.1
	  	 Definitions.
	  	 1

	
	 	  	 SECTION 2
	  	 
	 	  	 THE CREDIT
	  	 
	
	 2.1
	  	 The Commitment.
	  	 7

	 2.2
	  	 The Loans.
	  	 7

	 2.3
	  	 Requests for Loans.
	  	 7

	 2.4
	  	 Interest and Principal on Loans.
	  	 7

	 2.5
	  	 Loan Accounts.
	  	 7

	 2.6
	  	 Disbursements and Payments
	  	 8

	
	 	  	 SECTION 3
	  	 
	 	  	 PAYMENT OF COSTS AND REDUCTION OF THE COMMITMENT
	  	 
	
	 3.1
	  	 Indemnification.
	  	 8

	 3.2
	  	 Increased Costs.
	  	 8

	 3.3
	  	 Taxes.
	  	 9

	 3.4
	  	 Prepayment.
	  	 9

	 3.5
	  	 Reduction of Commitment by Borrower.
	  	 10

	 3.6
	  	 Notice of Reductions.
	  	 10

	 3.7
	  	 Effect of Reduction of Commitment.
	  	 10

	
	 	  	 SECTION 4
	  	 
	 	  	 [INTENTIONALLY LEFT BLANK]
	  	 
	
	 	  	 SECTION 5
	  	 
	 	  	 CONDITIONS PRECEDENT
	  	 
	
	 5.1
	  	 Conditions Precedent to Signing Date.
	  	 11

	 5.2
	  	 Conditions Precedent to Effective Date.
	  	 11

	 5.3
	  	 Conditions Precedent to Loans.
	  	 12

	
	 	  	 SECTION 6
	  	 
	 	  	 REPRESENTATIONS AND WARRANTIES
	  	 
	
	 6.1
	  	 Authority of Borrower.
	  	 13

	 6.2
	  	 Binding Obligations.
	  	 13

 

-1- 

	 6.3
	  	 Incorporation of Restricted Subsidiaries.
	  	 13

	 6.4
	  	 No Contravention.
	  	 13

	 6.5
	  	 Notices.
	  	 14

	 6.6
	  	 Financial Statements.
	  	 14

	 6.7
	  	 ERISA.
	  	 14

	 6.8
	  	 Regulation U.
	  	 14

	 6.9
	  	 Taxes.
	  	 14

	 6.10
	  	 Insurance.
	  	 15

	 6.11
	  	 Liens.
	  	 15

	 SECTION 7

	 AFFIRMATIVE COVENANTS OF
BORROWER

	 7.1
	  	 Use of Proceeds of Loans.
	  	 15

	 7.2
	  	 Management of Business.
	  	 15

	 7.3
	  	 Notice of Certain Events.
	  	 15

	 7.4
	  	 Records.
	  	 16

	 7.5
	  	 Information Furnished.
	  	 16

	 7.6
	  	 Execution of Other Documents.
	  	 17

	 7.7
	  	 ERISA.
	  	 17

	 7.8
	  	 Compliance with Law.
	  	 17

	 SECTION 8

	 NEGATIVE COVENANTS OF
BORROWER

	 8.1
	  	 Liens.
	  	 18

	 8.2
	  	 Mergers, Liquidations and Sales of Assets.
	  	 19

	 8.3
	  	 Defaults.
	  	 20

	 8.4
	  	 Compliance with Regulations.
	  	 20

	 8.5
	  	 Financial Covenants.
	  	 20

	 SECTION 9

	 EVENTS OF DEFAULT

	 9.1
	  	 Events of Default.
	  	 21

	 9.2
	  	 Recovery of Amounts Due.
	  	 23

	 9.3
	  	 Rights Cumulative.
	  	 24

	 SECTION 10

	 THE LENDER

	 10.1
	  	 Representations By Lender.
	  	 24

 

-2- 

 
SECTION 11

 
MISCELLANEOUS PROVISIONS

 

	 11.1
	  	 Amendments and Waivers.
	  	 24

	 11.2
	  	 Notices.
	  	 24

	 11.3
	  	 Waiver.
	  	 25

	 11.4
	  	 NEW YORK LAW.
	  	 26

	 11.5
	  	 Headings.
	  	 26

	 11.6
	  	 Accounting Terms.
	  	 26

	 11.7
	  	 Counterparts.
	  	 26

	 11.8
	  	 Singular; Plural.
	  	 27

	 11.9
	  	 Illegality.
	  	 27

	 11.10
	  	 Assignments.
	  	 27

	 11.11
	  	 Fees and Expenses.
	  	 27

	 11.12
	  	 Indemnity.
	  	 27

	 11.13
	  	 Waiver of Right to Trial by Jury.
	  	 28

 
 

-3- 

 
REVOLVING
CREDIT AGREEMENT 
 
THIS REVOLVING CREDIT
AGREEMENT (“Agreement”) is entered into as of October 1, 2001 (the “Signing Date”) between HUGHES ELECTRONICS CORPORATION, a corporation organized and existing under the laws of Delaware (“Borrower”), and
GENERAL MOTORS ACCEPTANCE CORPORATION, a corporation organized under the laws of Delaware (“GMAC”). 
 
R E C I T A L S 
 
WHEREAS, Borrower and Lender wish to enter into a credit facility to provide Borrower with additional liquidity and to assure the timely and ultimate payment of all sums payable hereunder;

 
NOW, THEREFORE, in consideration of the
premises and the agreements, provisions and covenants herein contained, Borrower and Lender agree as follows: 
 
SECTION 1 
DEFINITIONS 
 
1.1 Definitions. 
 
“Applicable Amount” means 12.5 basis points per
annum on the outstanding principal amount of the Loans. 
 
“Affiliate” means, with respect to Lender, any other Person where the beneficial interest in a majority of the regular, voting securities of such Person is directly or indirectly in control of, controlled by or under common
control with, Lender or any Person who owns the beneficial interest in a majority of the regular, voting securities of the Lender, directly or indirectly. 
 
“Authorized Designee” means the chief executive officer, the vice chairman, the chief financial officer, treasurer or the
assistant treasurer of Borrower, or any other officer of Borrower specified as being an Authorized Designee in the certificate delivered pursuant to Section 5.2(c). 
 
“Availability Period” means the period commencing on the Effective Date and ending on the
Termination Date. 
 
“Bank of America”
means Bank of America, NA. 
 
“Borrowing
Date” means a date on which funds are advanced to Borrower by Lender pursuant to a Loan Request. 
 
“Business Day” means a day other than a Saturday or Sunday on which banks are open for business in Los Angeles, California,
Detroit, Michigan and New York, New York. 

“Commitment” means the principal amount of the Credit Balance Account that is
then outstanding, but not more than $1.5 billion ($1,500,000,000), as such amounts may be reduced or changed pursuant to Section 3.5. In the event that the Borrower has requested a set-off of the Credit Balance Account pursuant to Section 7 of the
Loan Set-Off and Security Agreement, the amount of the Commitment shall not exceed $1.5 billion ($1,500,000,000). 
 
“Compliance Certificate” means a certificate in the form of Exhibit D, properly completed and signed by Borrower’s
Chief Financial Officer, Treasurer, Chief Accounting Officer or an Assistant Treasurer. 
 
“Consolidated Adjusted Net Worth” means, as of the date of determination thereof, the consolidated stockholder’s equity of Borrower and its Subsidiaries determined in accordance with
GAAP adjusted by adding back the amount by which such consolidated stockholder’s equity has been reduced (or by subtracting the amount by which stockholder’s equity has been increased) on account of (a) changes subsequent to December 31,
1992 in the long term liability of Borrower and its Subsidiaries for post-retirement benefits other than pensions and (b) specified material non-cash adjustments resulting from the adoptions of future pronouncements of the Financial Accounting
Standards Board. 
 
“Consolidated EBITDA”
means, for any period, for Borrower and its Subsidiaries on a consolidated basis, an amount equal to the sum of (a) Consolidated Net Income, plus (b) Consolidated Interest Charges, plus (c) the amount of taxes, based on or measured by
income, used or included in the determination of such Consolidated Net Income, plus (d) the amount of depreciation and amortization expense deducted in determining such Consolidated Net Income; plus (e) if a non-cash charge is taken in
connection with the write-off of equity investment in Sky Perfect Communications, Inc., the amount of such non-cash charge; plus (f) the noncash component of any unusual or nonrecurring item of loss or expense (or minus the noncash
component of any unusual or nonrecurring item of gain or income) to the extent used or included in the determination of such Consolidated Net Income, provided that with respect to accruals or reserves for future cash disbursements, such
future cash disbursements shall be deducted in the fiscal period in which such cash disbursement is made. 
 
“Consolidated Funded Indebtedness” means, as of any date of determination, for Borrower and its Subsidiaries on a consolidated
basis, the sum of (a) the outstanding principal amount of all obligations and liabilities, whether current or long-term, for borrowed money (including Loans hereunder), and (b) that portion of obligations with respect to capital leases that are
capitalized in the consolidated balance sheet of Borrower and its Subsidiaries in excess of an aggregate amount of $25,000,000. 
 
“Consolidated Interest Charges” means, for any period, for Borrower and its Subsidiaries on a consolidated basis, the sum of (a)
all interest, premium payments, fees, charges and related 

expenses payable by Borrower and its Subsidiaries in connection with borrowed money (including capitalized interest) or in connection with
the deferred purchase price of assets and imputed interest associated with the assumption of liabilities relating to programming contracts under purchase accounting in accordance with GAAP, in each case to the extent treated as interest in
accordance with GAAP, and (b) the portion of rent payable by Borrower and its Subsidiaries with respect to such period under capital leases that is treated as interest in accordance with GAAP. 
 
“Consolidated Net Income” means, for any period, for
Borrower and its Subsidiaries on a consolidated basis, the net income of Borrower and its Subsidiaries from continuing operations after extraordinary items (excluding gains or losses from Dispositions of assets) for that period. 
 
“Consolidated Tangible Net Worth” means, at any date
of determination, Consolidated Adjusted Net Worth less the consolidated intangible assets of Borrower and its Subsidiaries, determined in accordance with GAAP. 
 
“Credit Balance Account” means up to $1.5 billion of restricted funds deposited by Borrower with
GMAC pursuant to the Loan Set-Off and Security Agreement against which GMAC has the legally enforceable right to set-off in order to collect amounts owing under this Agreement. 
 
“Credit Balance Account Rate” means the interest rate payable by GMAC to Borrower from time to time
pursuant to the Loan Set-Off and Security Agreement. 
 
“Debt Rating” means, as of any date of determination, the rating as determined by either Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc. (collectively, the “Debt Ratings”) of
(a) the Borrower’s senior unsecured long-term debt or (b) if the foregoing debt is not outstanding, then the rating of this credit facility or the implied rating of senior unsecured and non-credit enhanced debt securities, provided
that if both ratings in this clause (b) have been issued then both shall apply; or (c) if neither (a) nor (b) apply, then the rating of long-term debt issued by equipment trusts guaranteed by Borrower, if any. Initially, the Debt Ratings
shall be determined from the certificate delivered pursuant to Section 5.2(d). Thereafter the Debt Ratings shall be determined from the most recent public announcement of any changes in such Debt Ratings. 
 
“Effective Date” means the date the conditions set
forth in Section 5.2 are satisfied or waived by the Lender. 
 
“ERISA” means the Employee Retirement Income Security Act of 1974, as in effect from time to time. 
 
“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with Borrower or any Subsidiary
of Borrower within the meaning of Section 414(b), 414(c) or 414(m) of Internal Revenue Code of 1986, as amended. 
 
“Event of Default” means any event specified in Section 9.1. 

 
“Existing
Credit Agreement” means the Amended and Restated Revolving Credit Agreement (Multi-Year Facility) dated as of November 24, 1999, as amended, among Borrower, GMAC, the banks party thereto and Bank of America, as agent for such banks.

 
“Federal Reserve Board” means the
Board of Governors of the Federal Reserve System, or any successor thereto. 
 
“Financing Statement” means the UCC-1 financing statement executed by Borrower evidencing Lender’s first-priority properly perfected security interest in the Credit Balance Account.

 
“GAAP” means generally accepted
accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within the accounting profession), or in such other statements by such other entity as may be in general use by significant segments of the U.S. accounting
profession, which are applicable to the circumstances as of the date of determination. 
 
“Interest Payment Date” means the last day of each calendar quarter beginning with December 31, 2001. 
 
“Intercreditor Agreements” means the Intercreditor Agreement among the Borrower, GMAC and Bank of America, in its capacity as
Administrative Agent and as Collateral Agent. 
 
“Lender” shall mean GMAC. 
 
“Leverage Ratio” means, as of the end of any fiscal quarter, for the Borrower and its Subsidiaries on a consolidated basis, the ratio of (a) Consolidated Funded Indebtedness as of such date, less the principal amount of the
Credit Balance Account and other cash and cash equivalents of the Borrower and its Subsidiaries as of such date, to (b) Consolidated EBITDA for the period of the four fiscal quarters ended on such date. 
 
“Lien” means any trust deed, mortgage, pledge,
hypothecation, assignment, security interest, lien, charge or encumbrance, or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the lien of an attachment,
judgment or execution, or any conditional sale or other title retention agreement, any capitalized lease, and the filing of, or agreement to give, any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction, but
excluding financing statements filed to give notice of leases in the ordinary course of business). 
 
“Loan” or “Loans” means the $1.5 Billion Loan. 
 
“Loan Set-Off and Security Agreement” means an agreement between Borrower and GMAC in the form of
Exhibit E hereto. 

 
“Loan
Request” means a notice given by Borrower pursuant to Section 2.3. 
 
“Material Change” means any adverse change which could reasonably be expected to materially impair Borrower’s ability to timely and fully perform its obligations under this Agreement. 
 
“Moody’s” means Moody’s Investors Service,
Inc. 
 
“Note” means the $1.5 Billion
Promissory Note. 
 
“PAS” means PanAmSat
Corporation. 
 
“Person” means any legal
individual, firm, company, corporation, joint venture, joint-stock company, trust, unincorporated organization, governmental or state entity, or any association or partnership (whether or not having separate legal personality) of two or more of the
foregoing. 
 
“Plan” means any employee
benefit pension plan which is subject to the provisions of Title IV of ERISA and which is maintained for employees of Borrower or any Subsidiary. 
 
“Principal Amount” means, when used with reference to any Loan, the amount requested in the Loan Request relating thereto and
made available to Borrower by the Lender hereunder. 
 
“Principal Repayment Date” means the Termination Date. 
 
“Reportable Event” means any of the events set forth in Section 4043(b) of ERISA or the regulations thereunder excluding those events for which the 30-day notice requirement is waived, a
withdrawal from a Plan described in Section 4063 of ERISA, or a cessation of operations described in Section 4062(e) of ERISA. 
 
“Required Rating” means a Debt Rating by S&P of “BB-” or better and a Debt Rating by Moody’s of
“Ba3” or better. 
 
“Restricted
Subsidiaries” means each Subsidiary (i) having assets exceeding 10% of the Consolidated Tangible Net Worth of Borrower and its Subsidiaries on a consolidated basis or (ii) having operating revenues exceeding 10% of the operating revenues of
Borrower and its Subsidiaries on a consolidated basis, in each case as shown on the pro forma financial statements dated as of June 30, 1997 and, thereafter, as shown on the audited consolidated financial statements of Borrower and its Subsidiaries
as of the end of the fiscal year immediately preceding the date of determination; provided, however, that “Restricted Subsidiary” shall not include any Subsidiary which is a corporation created solely to purchase receivables from Borrower
or any of its Subsidiaries, and which would not, in accordance with GAAP, be included in the consolidated financial statements of Borrower. 
 
“S&P” means Standard & Poor’s Ratings Services. 

 
“Stockholder’s Equity” means, as of any date of determination for Borrower and its Subsidiaries on a consolidated basis, stockholder’s equity as of that date determined in accordance with GAAP. 
 
“Signing Date” means October 1, 2001. 
 
“Subsidiaries” (individually a
“Subsidiary”) means those corporations or entities of which Borrower owns more than 50% of the voting securities. If Borrower, subject to the terms hereof, permits its ownership to fall to 50% or below of outstanding voting shares of any
Subsidiary, such Subsidiary shall thereupon cease to be a Subsidiary for all purposes hereof. 
 
“Tax” and “Taxes” mean all taxes, levies, imposts, duties, fees or other charges of whatsoever nature however imposed by any country or any subdivision or authority of or in that
country in any way connected with this Agreement or any instrument or agreement required hereunder, and all interest, penalties or similar liabilities with respect thereto, except such taxes as are imposed on or measured by Lender’s net income
or capital and franchise taxes, by the country or any subdivision or authority of or in that country in which Lender’s principal office is located. 
 
“Termination Date” means September 30, 2002; provided, that if no Event of Default or Unmatured Event of Default has
occurred and is continuing, Borrower shall have the right, exercisable from time to time by giving written notice to Lender not more than forty-five (45) days before the Termination Date then in effect but not less than 5 Business Days before the
Termination Date then in effect (unless the Termination Date then in effect is on a calendar quarter end, then written notice must be received by Lender at least 10 Business Days prior to the Termination Date then in effect), to extend the
Termination Date to the last day of the next calendar month; provided, further, that in no event shall the Termination Date be later than March 31, 2003. If the scheduled Termination Date is not a Business Day, the Termination Date
shall be the next preceding Business Day. 
 
“Unmatured Event of Default” means an event which with the passage of time or the giving of notice, or both, would become an Event of Default. 

 
“Voting
Stock” means capital stock of Borrower having voting power under ordinary circumstances to elect directors of Borrower. 
 
“Withdrawal Liability” means, as of any determination date, the aggregate amount of the liabilities, if any, pursuant to Section
4201 of ERISA if the Borrower or any ERISA Affiliate made a complete withdrawal from all Plans and any increase in contributions pursuant to Section 4243 or ERISA. 
 
“$1.5 Billion Loan” means a loan up to $1.5 Billion (including principal, interest, fees,
indemnities and all other amounts, and including interest accruing after commencement of a proceeding in bankruptcy, reorganization or insolvency, whether or not allowable as a claim) secured solely by the Credit Balance Account. 
 
“$1.5 Billion Promissory Note” means the Promissory
Note in the principal sum of $1.5 billion dated the approximate even date of this Agreement in favor of Lender and executed by Borrower which Promissory Note is secured solely by the Credit Balance Account. 
 
SECTION 2 
THE CREDIT 
 
2.1 The Commitment. 
 
(a) From time to time, during the Availability Period, Lender agrees to make a loan up to $1.5 Billion secured solely by
the Credit Balance Account to Borrower in U.S. Dollars up to the amount of the Commitment, subject to reduction of such amount at Borrower’s option, pursuant to Section 3.5. 
 
(b) The aggregate principal amount of such Loans outstanding at any one time shall not exceed
the then current amount of the Commitment. 
 
4.2
The Loans.    Each Loan shall be in U.S. Dollars, and shall be in the minimum amount of $5,000,000 with any additional amounts in integral multiples of $1,000,000. This is a revolving credit, and Borrower may, during the
Availability Period, reborrow amounts repaid or prepaid. No Loan nor any part of any Loan shall be repaid except at the times and in the manner expressly provided herein. 

 
2.3
Requests for Loans. Each Loan shall be made upon irrevocable written or telephonic notice, confirmed promptly in writing, substantially in the form of Exhibit A hereto, by Borrower to the Lender, which notice shall be received
by such Lender not later than 11 a.m. Detroit time not less than 2 Business Days prior to the Borrowing Date. 
 
2.4 Interest and Principal on Loans. The outstanding Principal Amount of each Loan shall bear interest until payment is due in full
(computed daily on the basis of a 360 day year and actual days elapsed) at the rate of interest for each calendar month equal to the Credit Balance Account Rate for such month plus the Applicable Amount. Upon each increase or decrease in the Credit
Balance Account Rate, the rate of interest shall be increased or decreased by the same amount as the increase or decrease in the Credit Balance Account Rate. In no event shall the applicable interest rate under this section or Section 2.6(c) exceed
the maximum permitted by law. Borrower shall pay interest on each Loan on each Interest Payment Date for the interest accruing since the previous Interest Payment Date on such Loan. Borrower shall repay in full the Principal Amount of each Loan on
the Termination Date. 
 
2.5 Loan Accounts.
Lender shall open and maintain on its books one or more loan accounts in Borrower’s name. Each loan account shall show (without duplication) as debits thereto each Loan and as credits thereto all Loan payments received by Lender and applied to
principal so that the balance of the loan account(s) at all times reflect the principal amount due Lender from Borrower. All entries in said books shall be presumptive evidence of the making of each Loan, the obligation of Borrower to repay each
Loan, and all payments received and disbursed by Lender. 
 
2.6 Disbursements and Payments 
 
(a) Each Loan shall be made in immediately available funds (or such other funds as Borrower may require) at Bank of America, Concord, CA, ABA # 121000358, Account #123560-6628, or such other office designated by Borrower from time to
time and each payment of principal, interest and other sums under this Agreement shall be made in immediately available funds (or such other funds as Lender may require) at Chase Manhattan Bank, ABA # 0210-00021, General Motors Acceptance
Corporation Acct. # 910-2-476646, Ref: Hughes Electronics Corporation, Attn: Mervis Johnson, or such other office designated by Lender from time to time. 
 
(b) Each payment by Borrower shall be made to the Lender without set-off or counterclaim and not later than 12 noon Detroit time on the
day such payment is due. All sums received after such time shall be deemed received on the next Business Day. 
 
(c) Any sum of principal or interest payable by Borrower hereunder if not paid when due shall bear interest (payable on demand) from its
due date until payment in full (computed daily on the basis of a 360 day year and actual days elapsed) at a rate per annum equal to the Credit Balance Account Rate plus the Applicable Amount plus one percentage point. 

 
2.7
Collateral. The holder of the $1.5 Billion Promissory Note shall have the primary rights to the Credit Balance Account pursuant to the terms and conditions of the Loan Set-Off and Security Agreement. 
 
SECTION 3 
PAYMENT OF COSTS AND REDUCTION 
OF THE COMMITMENT 
 
3.1 Indemnification. If Borrower fails to borrow, pay or prepay any Loan on a date designated to Lender in a notice pursuant to this Agreement, Borrower shall reimburse Lender within 15 days after receipt of written demand for
any loss incurred by it as a result of the timing of such payment or non-borrowing, including without limitation any loss incurred in liquidating or employing funds from third parties and those costs set forth in Section 3.4 below. A certificate of
Lender setting forth the amounts reasonably necessary so to reimburse it in respect of any loss shall be conclusive and binding absent manifest error. 
 
3.2 Increased Costs. If after the date hereof, there shall in the reasonable opinion of the Lender be any change in the tax,
accounting or rating agency treatment of the Commitment, the Loans or the Credit Balance Account, Lender shall give prompt notice to Borrower describing such change at least four Business Days prior to the date Lender will begin to implement
additional charges with respect to Borrower. If the result of any of the foregoing is to increase the cost or reduce the profit to Lender under this Agreement by an amount deemed by Lender to be material, then, within 15 days after written demand by
Lender, Borrower will pay to Lender such additional amount or amounts as will compensate Lender for such increased cost incurred or reduction in profit suffered by Lender. A certificate of Lender setting forth the basis for determining such
additional amount or amounts necessary to compensate the Lender shall be conclusive and binding absent manifest error. 
 
3.3 Taxes. All payments or reimbursements under this Agreement and any instrument or agreement required hereunder shall be made
without set-off or counterclaim and free and clear of and without deduction for any and all present and future Taxes. Borrower agrees to cause all such Taxes to be paid on behalf of Lender directly to the appropriate governmental authority. If
Borrower is legally prohibited from complying with this section, payments due to Lender under this Agreement and any instrument or agreement required hereunder shall be increased so that, after provisions for Taxes and all Taxes on such increase,
the amounts received by Lender will be equal to the amounts required under this Agreement and any instrument or agreement required hereunder as if no Taxes were due on such payments. Borrower shall indemnify Lender for the full amount of Taxes
payable by Lender and any liabilities (including penalties, interest and expenses) arising from such Taxes within 30 days from any written demand by Lender. Borrower shall provide evidence that all applicable Taxes 

have been paid to the appropriate taxing authorities by delivering to Lender official tax receipts or notarized copies or other evidence
thereof satisfactory to Lender, within 90 days after the due date for such Tax payment. 
 
3.4 Prepayment. 
 
(a) Voluntary Prepayment. Upon the irrevocable written notice of Borrower received by Lender by 11 a.m. Detroit time at least 5 Business Days prior to the prepayment of a Loan (unless such prepayment of a Loan is on
calendar quarter end, then written notice must be received by Lender by 11 a.m. Detroit time at least 10 Business Days prior to the prepayment of a Loan), Borrower may prepay any Loan; but such prepayment shall be in an amount of at least $5,000,000
with integral multiples of $1,000,000 in excess thereof. The notice of prepayment shall specify the date of the prepayment, the amount of the prepayment and the Loan to be prepaid. Each such prepayment shall be made on the date specified and shall
be accompanied by the payment of accrued interest on the amount prepaid. Subject to compliance with the foregoing procedures, Loans may be prepaid at any time without cost or penalty of any kind except for any costs incurred by Lender with respect
to a prepayment of any associated liabilities of the Lender, including without limitation commercial paper. 
 
(b) Intentionally Deleted. 
 
3.5 Reduction of Commitment by Borrower. Borrower may, upon 10 Business Days’ prior written notice (which notice shall
be irrevocable) reduce the Commitment. Such a reduction shall be in an integral multiple of $5,000,000. Borrower shall, on the effective date of each such reduction, repay to Lender that portion of each Loan which exceeds the amount of the
Commitment as reduced, together with accrued interest on the amount paid. After the effective date of each reduction, the Lender’s obligations under this Agreement shall be based on the reduced Commitment. 
 
3.6 Notice of Reductions. Each notice of
reduction or prepayment given pursuant to Section 3.4 or 3.5 shall be irrevocable, shall specify the date upon which such reduction or prepayment is to be made and, in the case of a notice of prepayment, shall obligate Borrower to make such
prepayment on such date. 

 
3.7 Effect
of Reduction of Commitment. Borrower may terminate the Commitment at any time prior to the Effective Date upon notice thereof to Lender. The obligations of Borrower under Sections 3.1, 3.2, 3.3, 11.11, 11.12 and 11.13 shall survive the
cancellation or termination of the Commitment and the termination of this Agreement. 
 
SECTION 4 
[INTENTIONALLY LEFT BLANK] 
 
SECTION 5 
CONDITIONS PRECEDENT 
 
5.1 Conditions Precedent to Signing Date. The occurrence of the Signing Date is subject to the condition that on the Signing
Date this Agreement, duly executed and delivered by the parties hereto, shall have been delivered to Lender. 
 
5.2 Conditions Precedent to Effective Date. The obligation of Lender to make the initial Loans hereunder is subject to the
condition that on the Effective Date there shall have been delivered to the Lender: 
 
(a) The $1.5 Billion Promissory Note, duly executed and delivered by the Borrower. 
 
(b) The favorable written opinions, dated the
Effective Date, of the General Counsel or Assistant General Counsel of Borrower in the form set out in Exhibit C with such changes as are consented to by the Lender. 
 
(c) Certificate of the Secretary or an Assistant Secretary of Borrower dated the Effective
Date as to (i) the Certificate of Incorporation and the By-laws of Borrower, (ii) the resolution of the Board of Directors of Borrower in connection with this Agreement, and (iii) the incumbency and signatures of the person authorized to execute and
deliver this Agreement and any other instrument, document or other agreement required hereunder on the Effective Date. 
 
(d) A certificate, signed by a vice president of Borrower dated the Effective Date certifying: (i) that since December 31,
2000, there has been no change in the financial condition, business, operations or properties of Borrower and its Subsidiaries taken as a whole which constitutes a Material Change; (ii) that no event has occurred and is continuing or would result
from the making of a Loan which constitutes or would constitute an Event of Default or an Unmatured Event of Default; and (iii) the Debt Ratings as of the Effective Date. 
 
(e) Certificate of Good Standing in relation to Borrower issued by the Secretary of the State
of Delaware, dated not more than one month prior to the Effective Date. 
 
(f) Evidence of Borrower’s Debt Ratings from both S&P and Moody’s. 

 
(g) The Loan Set-Off and Security Agreement, duly executed and delivered by Borrower. 
 
(h) Payment of a $5 million commitment fee. 
 
(i) The Financing Statement, duly executed and delivered by the Borrower. 
 
5.3 Conditions Precedent to Loans. The
obligation of Lender to disburse each Loan (including the first Loan) is subject to: (a) the condition that the Lender shall not deem itself insecure at the time of the disbursement of any Loan (including the first Loan) and (b) the following
conditions and by communicating a Loan Request, Borrower is deemed to certify that: (i) to the best knowledge of the Authorized Designee making such Loan Request, the representations and warranties contained in this Agreement and any other documents
delivered pursuant hereto are true and correct in all material respects on the date of such Loan Request; (ii) the financial statements delivered to Lender by Borrower pursuant to Section 7.5 on the date most nearly preceding the Loan Request
present fairly the financial position and results of operation and changes in financial position of Borrower and its consolidated Subsidiaries as at the end of, and for the fiscal period to which such statements relate (subject, in the case of
unaudited financial statements to year end adjustments); and (iii) to the best knowledge of the Authorized Designee making such Loan Request, no Event of Default or Unmatured Event of Default has occurred and is continuing except such Events of
Default or Unmatured Events of Default as have been expressly waived by the Lender. 
 
In addition, the obligation of Lender to disburse each Loan (including the first Loan) is subject to the due execution and delivery to Lender of: (x) an amendment of each existing credit agreement,
waiver of claims, or other document in form and substance satisfactory to Lender, which has the effect of waiving all claims by Borrower’s existing lenders with respect to the Credit Balance Account and any funds represented thereby while there
remains outstanding any obligation owed to Lender under the $1.5 Billion Promissory Note or this Agreement; (y) a waiver of claims or other document in form and substance satisfactory to Lender with respect to the Credit Balance Account and any
funds represented thereby executed by lenders to PAS under any credit agreement the proceeds of which will be used, directly or indirectly, to repay existing loans by Borrower to PAS; and (z) indemnification agreements in form and substance
satisfactory to Lender executed by Borrower and any entity which beneficially owns 51% or more of the issued and outstanding capital stock of Borrower having voting power under ordinary circumstances to elect directors of Borrower (“Majority
Owner”) with respect to claims, damages, losses, liabilities and expenses incurred or suffered by Lender as a result of claims asserted against the Credit Balance Account by shareholders of PAS other than Borrower, and creditors of PAS or
Borrower that have not specifically waived claims (or their successors, representatives or assigns) arising out of or related to the distribution of funds by PAS to Borrower and/or the funding by Borrower of the Credit Balance Account. 
 
SECTION 6 
REPRESENTATIONS AND WARRANTIES 
 
6. Borrower represents and warrants that as of the Effective Date: 

 
6.1
Authority of Borrower. Borrower (a) is a corporation duly organized and existing under the laws of the State of Delaware, with its principal corporate office in Los Angeles County, California, (b) has the corporate power to own its property
and carry on its business as now being conducted, (c) is duly qualified and authorized to do business, and is in good standing in every state, country or other jurisdiction where the failure to be so qualified, authorized and in good standing would
have a material adverse effect on Borrower, (d) has full power and authority to borrow the sums provided for in this Agreement, to execute, deliver and perform this Agreement and any instrument or agreement required hereunder, and to perform and
observe the terms and provisions hereof and thereof, (e) has taken all corporate action on the part of Borrower, its directors or stockholder, necessary for the authorization, execution, delivery and performance of this Agreement, and any instrument
or agreement required hereunder on the date hereof, (f) requires no consent or approval of any trustee or holder of any indebtedness or obligation of Borrower to enter into, deliver or perform its obligations under this Agreement and the Note,
except for waivers provided for in this Agreement, and (g) requires no consent, permission, authorization, order or license of any governmental authority in connection with the execution and delivery and performance of this Agreement and any
instrument or agreement required hereunder, or any transaction contemplated hereby, except as may have been obtained and certified copies of which have been delivered to Lender. 
 
6.2 Binding Obligations. This Agreement is the legal, valid and binding obligation of Borrower,
enforceable against it in accordance with its terms, and any instrument or agreement required hereunder, when executed and delivered, will be similarly valid, binding and enforceable. 
 
6.3 Incorporation of Restricted Subsidiaries. Each Restricted Subsidiary of Borrower is a corporation
duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation and, to the best of Borrower’s knowledge, is duly licensed or qualified as a foreign corporation in all jurisdictions where the
failure to be so qualified, authorized and in good standing would have a material adverse effect on Borrower and its Restricted Subsidiaries taken as a whole. 
 
6.4 No Contravention. There is no charter, by-law, or capital stock provision of Borrower and no provision of any indenture or
material agreement, written or oral, to which Borrower is a party or under which Borrower is obligated, nor is there any statute, rule or regulation, or any judgment, decree or order of any court or agency binding on Borrower which would be
contravened by the execution, delivery and performance of this Agreement, or any instrument or agreement required hereunder, or by the performance of any provision, condition, covenant or other term hereof or thereof. 
 
6.5 Notices. Except as previously disclosed in writing
to Lender, no event has occurred which, to the best of its knowledge, would require Borrower to notify Lender pursuant to Section 7.3 hereof. 
 
6.6 Financial Statements. The financial statements dated December 31, 2000 and June 30, 2001 furnished by Borrower to the Lender,
fairly present the financial position and results of operation and changes in financial position of Borrower and its consolidated 

Subsidiaries as at the end of, and for the fiscal periods to which such statements relate, and such financial statements were prepared in
accordance with GAAP, except, in the case of June 30, for footnotes and year-end audit adjustments. Since June 30, 2001, there has been no Material Change. Neither Borrower nor any Subsidiary had any contingent obligations, liabilities for taxes or
other outstanding financial obligations at June 30, 2001 which are material in the aggregate, except as disclosed in such financial statements or in the Opinion of Counsel. 
 
6.7 ERISA. Based upon ERISA and the regulations and published interpretations thereunder, the
Plans of Borrower and its Subsidiaries and, to the knowledge of Borrower, the Plans of any other ERISA Affiliates, are in material and substantial compliance in all material respects with the applicable provisions of ERISA and Borrower and its
Subsidiaries are in compliance with such Plans in all material respects. No Reportable Event which has or could be reasonably be expected to result in termination thereof by the Pension Benefit Guaranty Corporation or for the appointment by the
appropriate United States District Court of a trustee to administer such Plan has occurred and is continuing with respect to any Plan. 
 
6.8 Regulation U. Borrower is not engaged principally, or as one of its important activities, in the business of extending credit
for the purposes of purchasing or carrying any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System; and neither Borrower nor any of its Subsidiaries is an “investment company”
within the meaning of the Investment Company Act of 1940. 
 
6.9 Taxes. Borrower has filed or has had filed on its behalf all federal and state tax returns which to the knowledge of the financial officers of Borrower are required to have been filed, and has paid prior to delinquency all
taxes that have become due pursuant to said returns or pursuant to any assessment, except as are being contested in good faith by appropriate proceedings and as to which adequate reserves have been provided on the books of Borrower in accordance
with GAAP. 
 
6.10 Insurance. Borrower and
its Restricted Subsidiaries maintain insurance with responsible insurance companies, in such amounts and against such risks as is customarily carried by owners of similar businesses and property, including protection against loss of use and
occupancy, to the extent such insurance is reasonably available at commercially reasonable rates, and it will furnish Lender, upon written request, with full information as to the insurance carrier; provided, however, that Borrower and its
Restricted Subsidiaries may self insure to the extent they deem prudent. 
 
6.11 Liens. The properties and assets of Borrower and its Restricted Subsidiaries, real, personal and mixed, are not subject to any Liens, except for Liens permitted by this Agreement. 

 
SECTION 7

AFFIRMATIVE COVENANTS OF BORROWER 
 
7. Borrower covenants and agrees that during the Availability Period or until the full and final payment of
all Loans, unless Lender waives compliance in writing: 
 
7.1 Use of Proceeds of Loans. It will use the proceeds of the Loans made by Lender to Borrower hereunder for its general corporate purposes. 
 
7.2 Management of Business. It will manage its business and conduct its affairs such that the
representations and warranties contained in Sections 6.1 through 6.3 and 6.7 through 6.11 remain true and correct at all times during the Availability Period. 
 
7.3 Notice of Certain Events. It will, and it will cause each of its Restricted Subsidiaries to, give prompt written notice
to Lender of: 
 
(a) all Events of
Default or Unmatured Events of Default under any of the terms or provisions of this Agreement; 
 
(b) any event of default under any other agreement, contract, indenture, document or instrument entered, or which may be
entered, into by it that could, if settled unfavorably, result in a Material Change and which has not been disclosed to Lender, with Lender’s consent, in the opinion of counsel pursuant to Section 5.2(b); 
 
(c) all material changes in senior management
otherwise publicly announced; 
 
(d) all litigation, arbitration or administrative proceedings involving Borrower or any of its Subsidiaries which could in the reasonable opinion of Borrower be expected to result in a Material Change; 
 
(e) any other matter which has resulted in, or
might in the reasonable opinion of Borrower result in, a Material Change; 
 
(f) concurrently with the public announcement thereof, any proposed Merger or Disposition affecting any Restricted Subsidiary; and 
 
(g) any change in any Debt Rating by S&P or Moody’s. 
 
7.4 Records. It will, and it will cause each of
its Restricted Subsidiaries to, keep and maintain full and accurate accounts and records of its operations according to GAAP and will permit Lender, and its designated officers, employees, agents, and representatives, to have access thereto and to
make examination thereof at all reasonable times, to make audits, and to inspect and otherwise check its properties, real, personal and mixed; provided, however, that such examination and access shall be in compliance with security and
confidentiality requirements of all governmental authorities and Borrower’s corporate policies. 
 
7.5 Information Furnished. It will furnish to Lender: 

 
(a) Within 60 days after the close of each quarter, except for the last quarter of each fiscal year, its consolidated balance sheet as of the close of such quarter and its consolidated profit and loss statement and cash flow
statement for that quarter and for that portion of the fiscal year ending with such quarter, all prepared in accordance with GAAP, and all certified by its Chief Financial Officer, Treasurer, Chief Accounting Officer or an Assistant Treasurer as
presenting fairly the financial position and results of operation and changes in financial position of Borrower and its consolidated Subsidiaries as at the end of, and for the fiscal period to which such statements relate, subject to normal year-end
adjustments. 
 
(b) Within 120 days
after the close of each fiscal year, a complete copy of its annual financial statements, which statements shall include at least its consolidated balance sheet as of the close of such fiscal year and its consolidated profit and loss statement and
cash flow statement for such fiscal year, prepared by Deloitte & Touche L.L.P. (or such other independent certified public accountants of recognized international standing selected by Borrower) in accordance with GAAP applied on a basis
consistent with that of the previous year, and which statements shall include the opinion of such accountants, such opinion not to be qualified or limited because of any restricted or limited nature of examination made by such accountants or because
of a “going concern” qualification. 
 
(c) Within 60 days after the close of each quarter except for the last quarter of each fiscal year, (and within 120 days after the close of each fiscal year) its certificate executed by Borrower’s Chief Financial Officer,
Treasurer, Chief Accounting Officer or an Assistant Treasurer that (i) the representations and warranties set forth in Section 6 (with the exception of Section 6.6) are true and correct in all material respects; and (ii) no Event of Default or
Unmatured Event of Default has occurred and is continuing except such Events of Default or Unmatured Events of Default as have been expressly waived by or on behalf of the Lender. 
 
(d) Concurrently with the delivery of the financial statements referred to in clauses
(a) and (b), a duly completed Compliance Certificate signed by Borrower’s Chief Financial Officer, Treasurer, Chief Accounting Officer or an Assistant Treasurer. 
 
(e) As soon as available, copies of all reports or materials filed or required to be filed
with the Securities and Exchange Commission. 
 
(f) Such other information concerning its affairs as Lender may reasonably request. 
 
7.6 Execution of Other Documents. It will promptly, upon demand by Lender, execute all such additional agreements, documents
and instruments in connection with this Agreement as Lender may reasonably deem necessary. 
 
7.7 ERISA. It will, and it will cause each of its Subsidiaries to: 
 
(a) At all times, make prompt payment of contributions required to meet the minimum funding standard set forth in ERISA
with respect to its Plans, except to the extent that waivers are granted by the appropriate governmental agencies; 

 
(b) Notify Lender immediately of (i) any Reportable Event which could reasonably be expected to result in aggregate liability to Borrower and its Subsidiaries in excess of $75,000,000 and (ii) any other fact arising in connection
with any of its Plans or a Plan of any ERISA Affiliate which has resulted, or could reasonably be expected to result, in termination thereof by the Pension Benefit Guaranty Corporation or for the appointment by the appropriate United States District
Court of a trustee to administer such Plan, in each case together with a statement, if requested by Lender, as to the reasons therefor and the action, if any, which Borrower or such ERISA Affiliate proposes to take with respect thereto; and

 
(c) Furnish to Lender, upon its
written request, such information concerning any of its Plans as may be reasonably requested. 
 
7.8 Compliance with Law. It will, and will cause each of its Subsidiaries to, comply with the requirements of all applicable laws, rules, regulations, and orders of any governmental or
regulatory authority, a breach of which would result in a Material Change, except where contested in good faith by appropriate proceedings diligently pursued. 
 
SECTION 8 
NEGATIVE COVENANTS OF BORROWER 
 
8. Borrower covenants and agrees during the Availability Period until the full and final payment of all Loans, unless Lender waives compliance in writing: 
 
8.1 Liens. 
 
(a) Borrower will not, nor will it permit any Restricted Subsidiary to, issue, incur, guaranty or assume any indebtedness
for money borrowed secured by a Lien upon any property or assets of Borrower or any Restricted Subsidiary or upon any shares of stock or indebtedness of any Restricted Subsidiary (whether such property, assets, shares of stock or indebtedness are
now owned or hereafter acquired) without in any such case effectively providing concurrently with the issuance, incurrence, guarantee or assumption of any such indebtedness that the Commitment and Loans and any other obligations of Borrower to the
Lender (together with, if Borrower shall so determine, any other indebtedness of Borrower or such Restricted Subsidiary ranking equally with the Commitment and Loans and such other obligations and then existing or thereafter created) shall be
secured equally and ratably with or prior to such indebtedness by a Lien upon such property, assets, shares of stock or indebtedness to the extent that the aggregate outstanding amount of such obligations of Borrower to the Lender exceeds, from time
to time, the amount of funds represented by the Credit Balance Account and immediately available to Lender upon default, unless the aggregate amount of such indebtedness for money borrowed secured by such Liens, together with all other indebtedness
for money borrowed of Borrower and its Subsidiaries which (if originally issued, incurred, guaranteed or assumed at such time) would otherwise be subject to the foregoing restrictions (but not including indebtedness for money borrowed permitted to
be secured under sub-clauses (1) through (7) of Section 8.1(b)), does not at the time exceed 5% of Consolidated Adjusted Net Worth. 

 
(b) The above
restrictions shall not apply to indebtedness of Borrower or any of its Restricted Subsidiaries secured by: 
 
(1) Liens existing as of the date hereof and listed in Exhibit B; 
 
(2) Liens on property, assets, shares of stock
or indebtedness of any corporation existing at the time such corporation becomes a Restricted Subsidiary; 
 
(3) Liens on property existing at the time of acquisition of such property by Borrower or a Restricted Subsidiary, or
Liens to secure the payment of all or any part of the purchase price of property upon the acquisition of such property by Borrower or a Restricted Subsidiary or to secure any indebtedness incurred or guaranteed prior to, at the time of, or within
180 days after, the later of the date of acquisition of such property and the date such property is placed in service, for the purpose of financing all or any part of the purchase price thereof, or Liens to secure any indebtedness incurred or
guaranteed for the purpose of financing the cost to Borrower or a Restricted Subsidiary of improvements to such acquired property; provided, however, that for purposes of this clause 3, (i) a satellite will be treated as a
newly-acquired asset as of the date it is placed in service and (ii) any satellite transponder acquired through the exercise of an early buy-out option shall be treated as a newly-acquired asset as of the date such option is exercised; 
 
(4) Liens securing indebtedness of a
Restricted Subsidiary owing to Borrower or to another Restricted Subsidiary; 
 
(5) Liens on property of a corporation existing at the time such corporation is merged or consolidated with Borrower or a Restricted Subsidiary (in accordance with Section 8.2) or at the time of a
sale, lease or other disposition of the properties of a corporation as an entirety or substantially as an entirety to Borrower or a Restricted Subsidiary; 
 
(6) Liens on property of Borrower or a Restricted Subsidiary in favor of the United States of America or any state
thereof, or any department, agency or instrumentality or political subdivision of the United States of America or any state thereof, or in favor of any other country, or any political subdivision thereof, to secure partial, progress, advance or
other payments pursuant to any contract or statute or to secure any indebtedness incurred for the purpose of financing all or any part of the purchase price or the cost of construction of the property subject to such Liens; 
 
(7) Liens on stock or assets of PAS;

 
(8) Liens in favor of Lender; or

 
(9) any extension, renewal or
replacement (or successive extensions, renewals or replacements) in whole or in part of any Liens referred to in the foregoing sub-clauses (1) to (8), inclusively; provided, however, that the principal amount of indebtedness secured by
Liens permitted by sub-clauses (1) to (7) thereby shall not exceed the principal amount of indebtedness so secured at the time of the incurrence or guarantee 

thereof and that such extension, renewal or replacement shall be limited to all or a part of the property which secured the Lien so extended,
renewed or replaced (plus improvements on such property). 
 
8.2 Mergers, Liquidations and Sales of Assets. It will not, nor will it permit any of its Restricted Subsidiaries to liquidate or dissolve or enter into any consolidation, merger, partnership, joint venture, syndicate,
pool or other combination which results in a Material Change (collectively, the “Mergers”) or convey, sell or lease all or substantially all of its assets or business (collectively, “Dispositions”), except for: 
 
(a) mergers between Subsidiaries, or between
Subsidiary and Borrower where Borrower is the surviving corporation; 
 
(b) mergers where Borrower is the surviving corporation; 
 
(c) transfers of assets from one Restricted Subsidiary to another Restricted Subsidiary or from any Restricted Subsidiary
to Borrower; 
 
(d) sales, leases,
transfers or assignments of operating rights, licenses or franchises in transactions which do not result in a Material Change different from changes heretofore publicly disclosed; 
 
(e) Dispositions of any Restricted Subsidiary provided both Debt Ratings remain the Required
Rating on the effective date of any such dispositions; and 
 
provided, however, no Disposition or Merger otherwise permitted by clauses (a) through (e) above shall take place if before, or after giving effect to any such Disposition or Merger, an Event of Default or Unmatured
Event of Default exists or would exist. 
 
8.3
Defaults. It will not, nor will it permit any of its Restricted Subsidiaries to, commit or do any act or thing which would constitute an event of default under any of the material terms or provisions of any other material agreement,
contract, indenture, document or instrument executed, or to be executed by any of them, except those that may be contested in good faith and would not, if settled unfavorably, result in a Material Change. 
 
8.4 Compliance with Regulations. Borrower will
not engage principally, or as one of its important activities, in the business of extending credit for the purposes of purchasing or carrying any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System; and it will not use the proceeds of any Loan for the purpose, directly or indirectly, whether immediate, incidental or ultimate, (a) to purchase or carry, within the meaning of such Regulation U, any such margin stock or to extend
credit to others for the purpose of purchasing or carrying any such margin stock, unless done in strict compliance with such Regulation U and other applicable law and Borrower shall have executed and delivered to Lender prior to such use a Form G-3
statement evidencing compliance with such Regulation U and such other documents relating thereto as Lender shall request, or (b) in a manner which would violate, or result in a violation of, Regulation T, U, or X of the Board of Governors of the
Federal Reserve System. 

 
8.5
Financial Covenants. 
 
(a)
Stockholder’s Equity. Borrower will not permit Stockholder’s Equity as at the end of any fiscal quarter to be less than the sum of (i) $9,295,000,000, (ii) an amount equal to 50% of Borrower’s consolidated net income (as
determined in accordance with GAAP) earned in each fiscal quarter ending after December 31, 2000 (with no deduction for a net loss in any such fiscal quarter) and (iii) an amount equal to 50% of the aggregate increase in Stockholder’s Equity
after December 31, 2000 by reason of the issuance of capital stock of Borrower (including upon any conversion of debt securities of Borrower into such capital stock). 
 
(b) Leverage Ratio. Borrower shall not permit the Leverage Ratio as at the end of any
fiscal quarter to be greater than 6.5 to 1.0. 
 
SECTION 9 
EVENTS OF DEFAULT 
 
9.1 Events of Default. If one or more of the following described Events of Default shall occur:

 
(a) Borrower shall default in
the due and punctual payment of (i) the principal of or the interest on any Loan within two Business Days of its due date, (ii) any fee due hereunder within 10 Business Days of its due date; or (iii) any other amount due from it hereunder within 30
Business Days of its due date; or 
 
(b) Borrower or any of its Restricted Subsidiaries shall fail to perform or observe any of the terms, provisions, covenants, conditions, agreements or obligations contained herein (other than Sections 8.1 through 8.5) and such
failure shall continue for more than 20 days after written notice from Lender to Borrower of the existence and character of such failure to perform or observe; or 
 
(c) Borrower or any of its Restricted Subsidiaries shall fail to perform or observe any of
the terms, provisions, covenants, conditions, agreements or obligations contained in Sections 8.1 through 8.5; or 
 
(d) (i) Borrower, or any of its Restricted Subsidiaries shall become insolvent, or be unable, or admit in writing its
inability, to pay its debts as they become due; or (ii) Borrower or any Restricted Subsidiary shall make an assignment for the benefit of creditors or to an agent authorized to liquidate any substantial amount of its properties or assets; or (iii)
Borrower or any Restricted Subsidiary shall file or have filed against it a petition in bankruptcy or seeking reorganization or to effect a plan or other arrangement with creditors or winding up or dissolution and such filing against it shall not be
dismissed within 60 days after the date of such filing; or (iv) Borrower or any Restricted Subsidiary shall apply for or consent to the appointment of or consent that an order be made appointing any receiver or trustee for any of its or their
properties, assets or business, or if a receiver or a trustee shall be appointed for all or a substantial part of its or their properties, assets or business; or (v) an order for relief shall be 

entered against Borrower or any Restricted Subsidiary under the United States federal bankruptcy laws as now or hereafter in effect; or (vi)
Borrower or any Restricted Subsidiary shall take any action indicating its consent to, approval of or acquiescence in, any of the foregoing; or 
 
(e) Any representation or warranty made by Borrower herein or in any certificate or financial or other statement
heretofore or hereafter furnished by Borrower or any of its officers to Lender proves to be in any material respect false or misleading as of the date when made, deemed made or reaffirmed; or 
 
(f) Any final judgment, decrees, writs of
execution, attachments or garnishments or any Liens, or any other legal processes shall be issued or levied against any of the assets or property of Borrower or any of its Restricted Subsidiaries (and shall not have been vacated, discharged or
stayed) in amounts which in the aggregate would result in a Material Change (without limiting the generality of the foregoing, a judgment in excess of $75,000,000 in the aggregate shall, for purposes only of this Section 9.1(f), be deemed to result
in a Material Change); provided, however, that such aggregate amount shall include only amounts in excess of (i) insurance coverage therefor and (ii) reserves on the books of Borrower or any of its Restricted Subsidiaries therefor;
provided, further, that such aggregate amount shall not include any amounts with respect to matters subject to appeal conducted in good faith and diligently pursued or other further legal process by Borrower or any of its Restricted
Subsidiaries or any amounts with respect to any such legal process which Borrower or any of its Restricted Subsidiaries has detached from such property by posting of a bond or equivalent process; or 
 
(g) All, or substantially all, of the assets
and property of Borrower or any of its Restricted Subsidiaries shall be condemned, seized or otherwise appropriated; or 
 
(h) Any fact or circumstance (including without limitation a Reportable Event), which results in, or which Lender
determines in good faith could reasonably be expected to result in, the termination of any Plan of Borrower, any of its Subsidiaries or any ERISA Affiliate by the Pension Benefit Guaranty Corporation or the appointment by an appropriate United
States District Court of a trustee to administer any such Plan, shall occur and shall continue for 30 days after written notice of such determination shall have been given to Borrower or any of its Subsidiaries by Lender, or a trustee shall be
appointed by the appropriate United States District Court to administer any Plan of Borrower or any of its Subsidiaries, or the Pension Benefit Guaranty Corporation shall institute proceedings to terminate any Plan of Borrower or any of its
Subsidiaries or to appoint a trustee to administer any such Plan and, upon the occurrence of any of the foregoing, the aggregate amount of the unfunded vested liability for the benefits guaranteed by the Pension Benefit Guaranty Corporation under
all such Plans and the present value of any Withdrawal Liability which remains unpaid is reasonably estimated to be in excess of $75,000,000 and such liability is not covered by insurance; or 
 
(i) Borrower or any of its Restricted
Subsidiaries (i) fails to make any payment (or otherwise satisfy) in respect of any indebtedness for money borrowed when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) and such failure continues after
the applicable grace or notice period, if any, specified in the document relating thereto on the date of such failure; or (ii) an event of default shall occur which 

permits the acceleration of indebtedness for money borrowed under the Existing Credit Agreement or any other agreement, contract, indenture,
document or instrument executed, or which may be executed, by Borrower or any of its Restricted Subsidiaries, which failure or event of default (other than a failure or event of default under the Existing Credit Agreement) has not been waived or
cured; provided, however, that no Event of Default shall exist hereunder if the amount of the indebtedness which is not paid or may be accelerated with respect to the defaulted obligations shall not exceed in the aggregate $75,000,000;
or 
 
(j) Borrower fails to
maintain publicly announced Debt Ratings of at least the Required Rating; or 
 
(k) Any sale, spin-off, disposition or other transaction whereby General Motors Corporation will no longer beneficially own directly or indirectly at least 51 percent of the issued and outstanding
capital stock of Borrower having voting power under ordinary circumstances to elect directors of Borrower shall have occurred; or 
 
(l) Borrower enters into any amendment, modification, restatement or other change to the Existing Credit Agreement, or any
future or replacement credit agreements, without prior written notice to Lender and offering Lender equivalent amendments to this Agreement (except as to interest rate or fees); 
 
Then (a) automatically upon the occurrence of an Event of Default under Section 9.1(d), the Commitment shall immediately
terminate, and all Loans and other liabilities and obligations outstanding under this Agreement shall, without presentment, demand, protest, or notice of any kind, all of which are hereby expressly waived, be forthwith due and payable, if not herein
otherwise then due and payable, together with all costs and expenses (including break and funding costs and other costs in connection with the relending, reborrowing, funding or other employing of funds) incurred by the Lender as a result thereof,
anything herein or in any agreement, contract, indenture, document or instrument contained to the contrary notwithstanding; and (b) at any time after the occurrence of an Event of Default other than under Section 9.1(d), and in each and every such
case, unless such Event of Default shall have been remedied by Borrower to the satisfaction of Lender or waived in writing by Lender, Lender may immediately terminate the Commitment, whereupon the same shall be cancelled and reduced to zero and any
Loan Request given in respect of a Borrowing Date occurring on or after the date of such notice of cancellation shall cease to have effect and all Loans and all accrued interest thereon and all other liabilities and obligations outstanding under
this Agreement shall, thereupon, without presentment, demand, protest, or notice of any kind, all of which are hereby expressly waived, be forthwith due and payable, if not otherwise then due and payable, together with all reasonable costs and
expenses (including break and funding costs and other costs in connection with the relending, reborrowing, funding or other employing of funds) incurred by the Lender as a result thereof, anything herein or in any other agreement, contract,
indenture, document or instrument contained to the contrary notwithstanding. Thereafter Lender may immediately, and without expiration of any period of grace, enforce payment of all liabilities and obligations of Borrower under this Agreement.

 
9.2
Recovery of Amounts Due. If any amount payable hereunder is not paid as and when due, Borrower hereby authorizes Lender and its Affiliates to proceed, to the fullest extent permitted by applicable law, without prior notice, by right of set-off,
banker’s lien or counterclaim, against any moneys or other assets of Borrower in any currency that may at any time be in the possession of Lender or any of its Affiliates, at any branch or office thereof, and any funds which may be owed by
Lender to Borrower to the full extent of all amounts payable to Lender hereunder. Notwithstanding the foregoing, the holder of the $1.5 Billion Promissory Note shall be the only party permitted to assert any rights against the Credit Balance
Account. 
 
9.3 Rights Cumulative. The
rights of Lender provided for herein are cumulative and are not exclusive of any other rights, powers, privileges or remedies provided by law or in equity. 
 
SECTION 10 
THE LENDER 
 
10.1
Representations By Lender. Lender hereby represents that it will not make any Loan hereunder with a view to engage in any distribution of any evidence of indebtedness to the public; provided, however, disposition of any evidence of
indebtedness held by Lender shall at all times be within its exclusive control subject only to the provisions of Section 11.10. 
 
SECTION 11 
MISCELLANEOUS PROVISIONS 
 
11.1 Amendments and Waivers. No amendment or waiver of any provision of this Agreement, and no consent with respect to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and
signed by the Lender and the Borrower, and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 
 
11.2 Notices. All notices, payments, requests, reports, information, demands and other
communications which any party hereto may desire, or may be required, to give or make to any other party hereto, shall (unless otherwise permitted as a telephonic notice or request hereunder) be given by mailing the same, postage prepaid, or by
telex, or rapifax transmission, or by hand delivery or courier, to each party at its address set forth below: 

General Motors Acceptance Corporation 
P.O. Box 200 
Mail Code 482-B10-B11 
Detroit, Michigan 48265-2000

Attn: David E. Ehlers, Director—National Dealer Loans 
 
With a copy to: 
 
General Motors Acceptance Corporation

P.O. Box 200 
Mail Code 482-B12-B11 
Detroit, Michigan 48265-2000

Attn: Cathy L. Quenneville, Secretary 
 
Hughes Electronics Corporation 
P.O. Box 956 
200 N. Sepulveda Blvd. 
El Segundo, California 90245

Attn: Treasurer 
 
or to such other address as may, from time to time, be specified in writing by Borrower or Lender. Such communications shall be deemed to have been duly
given and received in the case of a telex, when the telex is sent and the appropriate answer-back is received, in the case of mail when sent by pre-paid certified or registered mail correctly addressed to the addressee, in the case of rapifax
transmission, when transmission has been sent, in the case of hand delivery or courier, when received. Lender may rely and act upon any Loan Request made by telex or other telexed, telephonic or facsimile instructions to Lender by any Person
purporting to be an Authorized Designee of Borrower, and Borrower shall be unconditionally and absolutely estopped from denying the authenticity and validity of any transaction or act made by Lender in reliance thereon. Each party hereto shall
promptly confirm by telex or rapifax any telephone communication made by it to another pursuant to this Agreement but the absence of such confirmation shall not affect the validity of such communication, which shall be effective upon receipt. If
there is any conflict between any telephonic communication and a written confirmation, the written communication shall govern; provided, however, that the recipient of such communication shall be held harmless by all parties hereto with respect to
any action taken in reliance on the telephonic communication prior to the time such recipient receives and has had reasonable time to review the subsequent written confirmation and initiate such corrective action as the recipient deems reasonable
under the circumstances. 
 
11.3 Waiver.
Neither the failure of, nor any delay on the part of, any party hereto in exercising any right, power or privilege hereunder, or under any agreement, contract, indenture, document or instrument mentioned herein, shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, power or privilege hereunder, or under any agreement, contract, indenture, document or instrument mentioned herein, preclude other or further exercise thereof or the exercise of any other right,
power or privilege; nor shall any waiver of any right, power, privilege or default hereunder, or under any agreement, contract, indenture, document or 

instrument mentioned herein, constitute a waiver of any other right, power, privilege or default or
constitute a waiver of any other default of the same or of any other term or provision. All rights and remedies herein provided are cumulative and not exclusive of any rights or remedies otherwise provided by law. 
 
11.4 NEW YORK LAW. THE INTERPRETATION, ENFORCEMENT
AND EFFECT OF THIS AGREEMENT, THE LOANS AND ANY AGREEMENTS, CONTRACTS, INDENTURES, DOCUMENTS OR INSTRUMENTS DELIVERED IN ACCORDANCE HEREWITH, SHALL BE GOVERNED AND CONTROLLED IN ALL RESPECTS BY AND CONSTRUED ACCORDING TO THE SUBSTANTIVE LAWS OF THE
STATE OF NEW YORK, TO THE JURISDICTION OF WHOSE COURTS THE PARTIES HERETO HEREBY AGREE TO SUBMIT. BORROWER WAIVES ANY OBJECTION BASED ON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS, WITH REGARD TO ANY
ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS AGREEMENT, THE NOTE OR ANY OTHER DOCUMENT DELIVERED HEREUNDER OR IN CONNECTION HEREWITH, OR ANY TRANSACTION ARISING FROM OR CONNECTED TO ANY OF THE FOREGOING. BORROWER WAIVES PERSONAL SERVICE
OF ANY AND ALL PROCESS UPON IT, AND CONSENTS TO ALL SUCH SERVICE OF PROCESS MADE BY MAIL OR BY MESSENGER DIRECTED TO IT AT THE ADDRESS SPECIFIED IN THE CREDIT AGREEMENT. NOTHING HEREIN SHALL AFFECT THE RIGHT OF LENDER TO SERVE PROCESS IN ANY MANNER
PERMITTED BY LAW, OR LIMIT THE RIGHT OF LENDER TO BRING PROCEEDINGS AGAINST BORROWER OR ITS PROPERTY OR ASSETS IN THE COMPETENT COURTS OF ANY OTHER JURISDICTION OR JURISDICTIONS. 
 
11.5 Headings. The headings set forth herein are solely for the purpose of identification and shall
not be construed as a part of the sections or subsections which they head. 
 
11.6 Accounting Terms. All accounting terms not otherwise defined herein have the meaning assigned to them in accordance with GAAP, provided, however, any act or condition in accordance herewith
and permitted hereunder when taken, created or occurring, shall not become a violation of any section of this Agreement as a result of a subsequent change in GAAP. 
 
11.7 Counterparts. This Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, and all of said counterparts taken together shall constitute one and the same instrument. 
 
11.8 Singular; Plural. Whenever used herein, the singular number shall include the plural, the plural the singular, and the use of
any gender shall be applicable to all genders. 
 
11.9 Illegality. The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining
provisions of this Agreement or any instrument or agreement required hereunder. 

 
11.10
Assignments. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. No party hereto may assign or transfer all or any part of its rights and obligations hereunder, except
that: 
 
(a) Lender may at any time assign and
delegate to one or more of its Affiliates or securitization entities administered by Lender (each an “Assignee”), all, or any ratable part of all, of the Loans, the Commitment and the other rights and obligations of Lender hereunder,;
provided, however, that Lender shall at all times remain obligated to make the Loans hereunder. 
 
(b) Borrower authorizes Lender to disclose to any prospective Assignee any and all information in Lender’s possession concerning Borrower, this Agreement, the Credit Balance Account and any other
collateral, subject to confidentiality agreements. 
 
11.11 Fees and Expenses. Borrower agrees to pay on demand (a) to Lender all reasonable costs, expenses and attorneys’ fees (including allocated costs for in-house legal services) incurred by Lender in connection
with the preparation and administration of this Agreement and any documents including any amendments, waivers, or other modifications and (b) all reasonable costs, expenses and attorneys’ fees (including allocated costs for in-house legal
services) incurred by Lender in connection with the enforcement of this Agreement and any instrument or agreement required hereunder and in connection with any refinancing or restructuring of the Loans in the nature of a “work-out”.

 
11.12 Indemnity. Borrower agrees
to indemnify the Lender, its Affiliates and their respective directors, officers, agents and employees (collectively, the “Indemnitees”) from and hold each of them harmless against any and all losses, liabilities, claims, damages or
expenses reasonably incurred by any of them arising out of or by: (a) reason of any investigation by governmental or judicial authorities or being made a party to any litigation or other similar proceeding related to any use made or proposed to be
made by Borrower of the proceeds of any Loan for the acquisition of any other Person including, without limitation, the reasonable fees and disbursements of counsel (including allocated costs for in-house legal services) incurred in connection with
any such investigation, (b) claims asserted against the Credit Balance Account by shareholders of PAS (other than Borrower), and (c) claims of creditors of PAS (or their successors, representatives or assigns) arising out of or related to the
distribution of funds by PAS to Borrower and/or the funding by Borrower of the Credit Balance Account; provided, however, that Borrower shall have no obligation to indemnify or pay for the costs and expenses of more than one counsel for the
Indemnitees, unless any Indemnitee shall in good faith reasonably determine that there is a conflict of interest that causes it to be reasonably necessary for any Indemnitees to be represented by other counsel. Counsel chosen to represent any
Indemnitee pursuant to the previous sentence shall be reasonably satisfactory to Borrower. The obligations of Borrower under this Section shall survive the termination of this Agreement. 
 
11.13 Waiver of Right to Trial by Jury. EACH PARTY TO
THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS 

 
OF THE PARTIES HERETO OR ANY
OF THEM WITH RESPECT TO THIS AGREEMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto in             ,             
as of the date first hereinabove written. 
 

	 HUGHES ELECTRONICS CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name:
 Title:

 

	 GENERAL MOTORS ACCEPTANCE CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name:
 Title:

 

 
EXHIBIT A

LOAN REQUEST 
 

	 TO:
	  	 General Motors Acceptance Corporation

	 FROM:
	  	 Hughes Electronics Corporation

	 DATE:
	  	 
	 RE:
	  	 Hughes Electronics Corporation – Revolving Credit Agreement

 
Gentlemen: 
 
1.    We refer to the Revolving Credit
Agreement dated as of October 1, 2001, and made between Hughes Electronics Corporation and General Motors Acceptance Corporation (the “Agreement”). Terms defined in the Agreement shall have the same meaning herein. 
 
2.    We hereby request that a Loan is
made to us at Bank of America, Concord, CA, ABA # 121000358, Account #123560-6628 as follows: 
 
(i)    Principal Amount: 
 
(ii)    Borrowing Date: 
 
3.    For the purposes of inducing the
Lender to make the Loan requested herein, we confirm that, pursuant to Section 5.2 of the Agreement, as of the date hereof: 
 

	 	(i)	 	to the best of the knowledge of the undersigned, the representations and warranties set out in Section 6 of the Agreement are true and correct in all material
respects; 

 

	 	(ii)	 	the most current financial statements delivered pursuant to Section 7.5 of the Agreement present fairly the financial position and results of operation and changes
in financial position of Borrower and its consolidated Subsidiaries as at the end of, and for the fiscal period to which such statements relate as of the date thereof (subject, in the case of unaudited financial statements, to year end adjustments);
and 

 

A-1 
 

LOAN REQUEST 

 

	 	(iii)	 	to the best of the knowledge of the undersigned, no Event of Default or Unmatured Event of Default has occurred and is continuing. 

 

	 HUGHES ELECTRONICS CORPORATION

	
	 By:                                     
                                        
                                        
                   

	 Name:

	 Title:

 
 

A-2 
 

LOAN REQUEST 

 
EXHIBIT B

EXISTING LIENS 
 
PanAmSat 
$124,000,000.00 Floating Rate Note secured by transponders of Galaxy III-R due 
 
Galaxy Latin America 
$95,000.00 Capital Lease of AT&T Telephone Switch 
 
Hughes 

	    	 	Share pledge of Hughes’ ownership interest in Hughes Tele.Com India Limited (approximate market value $79,000,000.00) supporting a rupee denominated bridge loan
from ICICI (the lender) to Hughes Tele.Com India Limited 

 

B-1 
 

EXISTING LIENS 

 
EXHIBIT C

OPINION OF COUNSEL 
 
                    , 2001

 
To:    General Motors Acceptance Corporation

Re:    Hughes Electronics Corporation 
 Revolving Credit Agreement 
 
Gentlemen: 
 
I am the Assistant General Counsel of Hughes Electronics Corporation, a Delaware corporation (the
“Borrower”), in connection with the extension to Borrower of a revolving line of credit extended under and subject to the terms and provisions of a Revolving Credit Agreement dated as of October 1, 2001 (the “Credit Agreement”)
by and between Borrower and General Motors Acceptance Corporation (the “Lender”). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Credit Agreement. This opinion is rendered to you pursuant to Section
5.2(b) of the Credit Agreement. In addition, I have reviewed the Loan Set-Off and Security Agreement, the Note, and the Financing Statement. For convenience, the Credit Agreement, the Loan Set-Off and Security Agreement and the Note are sometimes
collectively referred to herein as the “Loan Documents”. 
 
As Assistant General Counsel to Borrower, I have caused to be made such legal and factual examinations and inquiries, including an examination of originals or copies, certified or otherwise identified to my satisfaction as
authentic, of such corporate records, agreements, instruments and other documents as I have deemed necessary or appropriate for the purposes of this opinion. I have caused to be obtained such certificates and other assurances (copies of which have
been delivered to you) from public officials and officers and other employees of Borrower as I considered necessary or appropriate for the purpose of rendering this opinion. I have assumed the genuineness of all signatures (except that of Borrower),
the authenticity of all documents submitted to me as originals, and the conformity with the originals of all documents submitted to me as copies. 
 
Subject to the limitations herein set forth, I am opining herein as to the effect on the subject transaction only of United States federal
law, the laws of the State of California and the General Corporation Law of the State of Delaware. I am licensed to practice law in the State of California. To the extent that any of the matters upon which I am opining hereon are governed by laws
(“Other Laws”), other than the laws identified in the preceding sentence, I have assumed with your permission and without independent verification or investigation as to the reasonableness of such assumption, that such Other Laws and the
judicial interpretation thereof do not vary in any respect material to this opinion from the corresponding laws of the State of California and judicial interpretation thereof. 
 

C-1 
 

OPINION OF COUNSEL 

 
Based upon the
foregoing and in reliance thereon, and subject to the qualifications, limitations and assumptions set forth herein, I am of the opinion that, as of the date hereof: 
 
1.    Borrower is a corporation duly incorporated and validity existing as a corporation
in good standing under the laws of the State of Delaware, with full corporate power and authority to own and lease its properties and conduct its business as presently owned and conducted. 
 
2.    Borrower has full corporate power and authority to borrow the sums provided for in
the Credit Agreement, to execute and deliver the Financing Statement and Loan Documents and to perform its obligations thereunder. 
 
3.    All corporate action required to be taken by Borrower for the authorization, execution and delivery of the
Financing Statement and Loan Documents by Borrower and the performance by Borrower of its obligations thereunder has been duly taken. 
 
4.    The officer of Borrower executing the Financing Statement and Loan Documents is duly and properly in office and
duly authorized to execute the same. 
 
5.    The Loan Documents are legal, valid and binding agreements of Borrower, subject to the limitations, qualifications, exceptions and assumptions set forth below. 
 
6.    To my knowledge, after causing to be
conducted such legal and factual examination and inquiries and causing to be conducted such discussions with and obtaining such certificates or other confirmations from officers and other employees of Borrower as I considered appropriate in the
circumstances, no consent, permission, authorization, order or license of any United States federal or California governmental authority is necessary in connection with the execution and delivery of the Financing Statement and the Loan Documents by
Borrower and Borrower’s performance of its obligations under the Loan Documents. 
 
7.    There is no provision of the Certificate of Incorporation or the By-laws of Borrower which would be contravened by the execution and delivery of the Financing Statement or
Loan Documents by Borrower or by the performance by Borrower of its obligations under the Loan Documents. 
 
8.    Borrower is not an “investment company” as defined in the Investment Company Act of 1940, as amended.

 
9.    To my knowledge, after
causing to be conducted such legal and factual examination and inquiries and causing to be conducted such discussions with and obtaining such certificates or other confirmations from officers and other employees of Borrower as I considered
appropriate in the circumstances, no consent or approval of any trustee or holder of any material indebtedness of Borrower is necessary in connection with the execution and delivery of the Financing Statement or Loan Documents by Borrower and
Borrower’s performance of its obligations under the Loan Documents. 
 

C-2 
 

OPINION OF COUNSEL 

 
10.    There is no provision of any indenture or material agreement for borrowed money to which Borrower is a party or under which Borrower is obligated, and of which I am aware, after causing to be conducted such
legal and factual examinations and inquiries and causing to be conducted such discussion with and obtaining such certificates or other confirmations from officers and other employees of Borrower as I considered appropriate in the circumstances,
which would be contravened by the execution and delivery of the Financing Statement, the Loan Documents by Borrower or by the performance by Borrower of its obligations under the Loan Documents. 
 
11.    To my knowledge, after causing to
be conducted such legal and factual examinations and inquiries and causing to be conducted such discussions with and obtaining such certificates or other confirmations from officers and other employees of Borrower as I considered appropriate in the
circumstances, there is no judgment, decree or order of any court or governmental agency binding on Borrower which would be contravened by the execution and delivery of the Financing Statement or Loan Documents by Borrower and Borrower’s
performance of its obligations under the Loan Documents. 
 
12.    To my knowledge, after causing to be conducted such legal and factual examinations and inquiries and obtaining certificates or other confirmations from officers and employees of Borrower as I considered
appropriate in the circumstances, except as set forth in Attachment 1 hereto, there is no claim, suit, action or proceeding pending against Borrower before any court or governmental agency in which there is a specific claim, including environmental
matters, in excess of $75,000,000. 
 
14.    The Loan Set-Off and Security Agreement creates in favor of the Lender, as security for the obligations of the Borrower under the Loan Documents, a security interest in the right, title and interest of the
Borrower in the Credit Balance Account. 
 
15.    The Financing Statement is in proper form for filing. Upon the filing of the Financing Statement with the Delaware Secretary of State, the Lender will have a valid and perfected security interest in all
right, title and interest of the Borrower in the Credit Balance Account. 
 
The opinion expressed in paragraph 6 is subject to the following limitations, qualifications, exceptions and assumptions: 
 
(a)    the enforcement of the Loan Documents may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws or by equitable principles relating to or limiting the rights of creditors generally; 
 
(b)    the use of the term enforceable shall not imply any opinion as to the availability of equitable remedies;

 
(c)    I advise you that a
California court may not strictly enforce certain covenants contained in the Credit Agreement or allow acceleration of the maturity of the indebtedness thereunder if it concludes that such enforcement or acceleration would be unreasonable under the
then existing circumstances. I do believe, however, that subject to the 

 

C-3 
 

OPINION OF COUNSEL 

limitations expressed elsewhere in this opinion, enforcement or acceleration would be available if an Event of Default occurs as a result of
a material breach of a material covenant contained in the Credit Agreement. Further, certain rights, remedies and waivers contained in the Credit Agreement may be limited or rendered ineffective by applicable California laws or judicial decisions
governing such provisions, but such laws or judicial decisions do not render the Credit Agreement invalid as a whole; 
 
(d) The effect of California court decisions, invoking statutes or principles of equity, which have held that certain covenants and
provisions of agreements are unenforceable where (i) the breach of such covenants or provisions imposes restrictions or burdens upon the debtor, including the acceleration of indebtedness due under debt instruments, and it cannot be demonstrated
that the enforcement of such restrictions or burdens is reasonably necessary for the protection of the creditor, or (ii) the creditor’s enforcement of such covenants or provisions under the circumstances would violate the creditor’s
implied covenant of good faith and fair dealing; 
 
(e) The unenforceability under certain circumstances, under California or federal law or court decisions, of provisions expressly or by implication waiving broadly or vaguely stated rights, unknown future rights, defenses to
obligations or rights granted by law, where such waivers are against public policy or prohibited by law; 
 
(f) The unenforceability under certain circumstances of provisions to the effect that rights or remedies are not exclusive, that every
right or remedy is cumulative and may be exercised in addition to or with any other right or remedy, that election of a particular remedy or remedies does not preclude recourse to one or more other remedies or that failure to exercise or delay in
exercising rights or remedies will not operate as a waiver of any such right or remedy; 
 
(g) The effect of Section 1717 of the California Civil Code, which provides that, where a contract permits one party to the contract to recover attorneys’ fees, the prevailing party in any action
to enforce any provision of the contract shall be entitled to recover its reasonable attorneys’ fees; 
 
(h) The unenforceability under certain circumstances of provisions indemnifying a party against liability for its own wrongful or
negligent acts or where such indemnification is contrary to public policy or prohibited by law; and 
 
(i) The enforceability under certain circumstances of provisions imposing penalties, forfeitures, late payment charges or an increase in
interest rate upon delinquency in payment or the occurrence of a default. 
 
To the extent that the obligations of Borrower may be dependent upon such matters, I assume for purposes of this opinion that Lender is duly incorporated or organized, validly existing and in good standing under the laws of
its jurisdiction of incorporation or organization; that Lender is duly qualified to engage in the transaction covered by this opinion; that the Loan Documents have been duly authorized, executed and delivered by Lender and that the Loan Documents
constitute the legal, valid and binding obligation of Lender, enforceable in 

 

C-4 
 

OPINION OF COUNSEL 

accordance with its terms; and that Lender has the requisite corporate or organizational and legal power and authority to own its properties,
to carry on its business as now being conducted and to perform its obligations under the Loan Documents, including without limitation, to make the loans under the Credit Agreement. I am not expressing any opinion as to the effect of or the
compliance by Lender with any state or federal laws or regulations applicable to the transactions because of the nature of its respective business. 
 
This opinion is rendered to the Lender and is solely for their benefit in connection with the above transaction. This opinion may not be
relied upon by the Lender for any other purpose, or furnished to, quoted to or relied upon by any other person, firm or corporation for any purpose without my prior written consent. 
 
Very truly yours, 
 

C-5 
 

OPINION OF COUNSEL 

ATTACHMENT 1 TO OPINION OF COUNSEL 
 
 

C-6 
 

OPINION OF COUNSEL 

LITIGATION 
 
As set forth in the Opinion of Counsel of approximate even date herewith provided by the Assistant General
Counsel of Hughes Electronics Corporation. 
 

 
EXHIBIT D

 
[FORM OF COMPLIANCE CERTIFICATE]

 
COMPLIANCE CERTIFICATE 
 
THE UNDERSIGNED HEREBY CERTIFY THAT: 
 
(1) I am the duly elected [Title] and [Title] of Hughes
Electronics Corporation, a Delaware corporation (“Borrower”); 
 
(2) I have reviewed the terms of that certain Revolving Credit Agreement dated as of October 1, 2001, as amended, supplemented or otherwise modified to the date hereof (said Revolving Credit Agreement, as so amended,
supplemented or otherwise modified, being the “Credit Agreement”, the terms defined therein and not otherwise defined in this Certificate (including Attachment No. 1 annexed hereto and made a part hereof) being used in this
Certificate as therein defined), by and between Borrower and Lender, and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and condition of Borrower and its Subsidiaries during the
accounting period covered by the attached financial statements; and 
 
(3) The examination described in paragraph (2) above did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes an Event of Default or Unmatured Event of Default during or at the
end of the accounting period covered by the attached financial statements or as of the date of this Certificate[, except as set forth below]. 
 
[Set forth [below] [in a separate attachment to this Certificate] are all exceptions to paragraph (3) above listing, in detail, the nature of the
condition or event, the period during which it has existed and the action which Borrower or any of its Subsidiaries, as applicable, has taken, is taking, or proposes to take with respect to each such condition or event: 
 
                                     
                                        
                                        
                                        
                                        
                                        
                   ] 
 

D-1 
 

FORM OF COMPLIANCE CERTIFICATE 

 
The foregoing
certifications, together with the computations set forth in Attachment No. 1 annexed hereto and made a part hereof and the financial statements delivered with this Certificate in support hereof, are made and delivered this
             day of             ,          pursuant to subsection 7.5(d) of the Credit
Agreement. 
 

	 DATED:                                    
                                        
                             
	 	 	 	 HUGHES ELECTRONICS CORPORATION

	
	 	 	 	 	 	 	 By:
	 	                                      
                                        
                                     
 

	 	 	 	 	 	 	 Name:
 Title:

 

D-2 
 

FORM OF COMPLIANCE CERTIFICATE 

 
ATTACHMENT
NO. 1 
TO COMPLIANCE CERTIFICATE 
 
This Attachment No. 1 is attached to and made a part of a Compliance Certificate dated as of
            ,              and pertains to the period from
            ,              to             ,
            . Subsection references herein relate to subsections of the Credit Agreement. 
 

	 A.
	  	 Maximum Leverage Ratio (for the four-fiscal quarter period
ending            ,             )

	 1.
	  	 Outstanding principal amount of all obligations
 and liabilities for borrowed money:
	  	 $

	 2.
	  	 Portion of obligations with respect to capital leases
 that are capitalized in excess of $25,000,000:
	  	 $

	 3.
	  	 Consolidated Funded Indebtedness (1+2):
	  	 $

	 4.
	  	 Principal balance in Credit Balance Account as of end of quarter:
	  	 $

	 5.
	  	 Cash and cash equivalents as of end of quarter:
	  	 $

	 6.
	  	 Net Consolidated Funded Indebtedness (3-4-5):
	  	 $

	 7.
	  	 Consolidated Net Income:
	  	 $

	 8.
	  	 Consolidated Interest Charges/(Income):
	  	 $

	 9.
	  	 Provisions for taxes/(benefit), if any, based on income used
 or included in determining of 7:
	  	 $

	 10.
	  	 Total depreciation and amortization expense deducted in determining 7:
	  	 $

	 11.
	  	 Amount, if any, of the non-cash charge taken in connection with the write-off of the equity investment in Sky Perfect
Communications, Inc.:
	  	 $

	 12.
	  	 Amount, if any, of the noncash component of any unusual or nonrecurring item of loss or expense to the extent used or
included in the determination of 7 above, provided that with respect to accruals or reserves for future cash disbursements, such future cash disbursements shall be deducted in the fiscal period in which such cash disbursement is
made:
	  	 $

	 13.
	  	 Amount, if any, of the noncash component of any unusual or nonrecurring item of gain or income to the extent used or
included
	  	 $

 

D-3 
 

FORM OF COMPLIANCE CERTIFICATE 

 

	 	  	 in the determination of 7 above:
	  	 
	 14.
	  	 Consolidated EBITDA (7+8+9+10+11+12-13):
	  	 $

	 15.
	  	 Leverage Ratio (6):(14):
	  	 ____:1.00

	 16.
	  	 Maximum ratio allowed under subsection 8.5(b):
	  	 6.5:1.00

	 B.
	  	 Minimum Stockholder’s Equity
	  	 
	 1.
	  	 Base Stockholder’s Equity:
	  	 $9,295,000,000

	 2.
	  	 50% of consolidated net income (as determined in accordance with GAAP) earned in each fiscal quarter ending after
December 31, 2000 (with no deduction for a net loss in any such fiscal quarter):
	  	 $

	 3.
	  	 50% aggregate increase in Equity by reason of
 Borrower’s issuance of capital stock:
	  	 $

	 4.
	  	 Minimum Stockholder’s Equity (1+2+3):
	  	 $

	 5.
	  	 Stockholder’s Equity:
	  	 $

 
 

D-4 
 

FORM OF COMPLIANCE CERTIFICATE 

 
LOAN
SET-OFF AND SECURITY AGREEMENT 
 
THIS
LOAN SET-OFF AND SECURITY AGREEMENT (“Agreement”) is entered into as of October 1, 2001 (the “Signing Date”) between HUGHES ELECTRONICS CORPORATION, a corporation organized and existing under the laws of Delaware
(“Borrower”), and GENERAL MOTORS ACCEPTANCE CORPORATION, a corporation organized under the laws of Delaware (“GMAC”). 
 
R E C I T A L S 
 
WHEREAS, GMAC has entered into a Revolving Credit Agreement with Borrower of approximate even date herewith to provide financing to
Borrower for which interest is earned and payable to GMAC from time to time (as such agreement is amended from time to time, the “Credit Agreement”); 
 
WHEREAS, all capitalized terms not defined herein have the meanings given to them in the Credit
Agreement; 
 
WHEREAS, Borrower wishes to
deliver money to GMAC, from time to time, in order to induce GMAC to extend credit to the Borrower pursuant to the Credit Agreement; 
 
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, Borrower and GMAC
agree as follows 
 
AGREEMENT

 
1. Credit Balance Account. Borrower
may, at its election, deliver good funds to GMAC, up to a maximum amount of $1.5 billion, to be held solely as collateral security for Borrower’s obligations under the Credit Agreement and the $1.5 Billion Promissory Note (the
“Obligations”) and GMAC will hold and account to Borrower for the total of these funds (the “Credit Balance Account”). 
 
2. Increases to Credit Balance Account. Borrower may, on any Business Day, increase the Credit Balance Account by any amount not
less than at least $5,000,000 with multiple integrals of $1,000,000 in excess thereof. Increases received by GMAC in immediately available funds at or prior to 12:00 p.m. Detroit time will be added to the Credit Balance Account on the same Business
Day. Increases received in other than immediately available funds will be added to the Credit Balance Account when good funds become available for use by GMAC. 
 
3. Repayment of Credit Balance Account. Borrower will be entitled to repayment of all or a portion of the Credit Balance Account if
(a)(i) it directs GMAC to apply all funds in the Credit Balance Account to repayment of the Obligations and (ii) the Commitment has been terminated or (b)(i) Borrower has provided written notice to GMAC by 11 a.m. Detroit time at least 5 Business
Days prior to repayment (unless such repayment is on calendar quarter end, then written notice must be received by GMAC by 11 a.m. Detroit time at least 10 Business Days prior to repayment), (ii) all of the Obligations are fully and finally repaid
as of the date of GMAC’s repayment of all or a portion of the Credit Balance Account, and (iii) the Commitment 

 
has been terminated. Except
upon termination of this Agreement, the minimum payment must be at least $5,000,000 with multiple integrals of $1,000,000 in excess thereof. Requests received after 12:00 p.m. Detroit time will be honored on the next Business Day. 
 
4. Credit Balance Account Rate. On each Interest
Payment Date, GMAC will pay Borrower interest accruing on the Credit Balance Account since the previous Interest Payment Date calculated for each calendar month by multiplying the daily amount in the Credit Balance Account by the Credit Balance
Account Rate for such month (the “Applicable Interest Credit”). The “Credit Balance Account Rate” means a rate equal to: (i) GMAC’s monthly average total cost of funds for 30-day commercial paper (on a 360 day basis);
provided, that at any time when GMAC’s commercial paper is not rated at least A-1 by Standard & Poor’s Ratings Services (“S&P”) and P-1 by Moody’s Investors Service, Inc. (“Moody’s”), GMAC may, at its
option, elect to use the monthly average total cost of issuing 30-day commercial paper (including, without limitation, interest or discount liquidity costs and other fees) by New Center Asset Trust or such other index as GMAC reasonably determines
to represent the lowest total cost source that is directly or indirectly available for significant short-term funding by GMAC, divided by, (ii) 360. Each month’s Credit Balance Account Rate will be calculated using the calendar days beginning
on the 26th of the month prior to the month for which the rate is calculated and ending with the 25th day of the month for which the rate is calculated. All calculations with regard to determination of the Credit Balance Account Rate shall be as
determined by GMAC in its sole and exclusive discretion. 
 
5. Set-Off for Interest. On each Interest Payment Date, GMAC will set-off against interest due under the Note the Applicable Interest Credit to the extent permitted by applicable law. If the Applicable Interest Credit with
respect to any Interest Payment Date exceeds the interest due GMAC on that date or, if the Applicable Interest Credit has not been set-off against interest due under the Note, the excess will be added to the principal balance of the Credit Balance
Account. 
 
6. Commingling. GMAC may
commingle the funds in the Credit Balance Account with other funds of GMAC and use them in the ordinary course of its business. 
 
7. Drawing on Credit Balance Account to Repay Obligations. On the Termination Date or in the event Borrower exercises its rights
pursuant to Section 3, GMAC will set-off against the Credit Balance Account the lesser of the full amount of the Obligations then due and owing and the then balance of the Credit Balance Account, to the extent permitted by applicable law. Upon prior
written request of Borrower, GMAC shall set-off against the Credit Balance Account any outstanding Obligations at such time to the extent of the balance of the Credit Balance Account on such date. To the extent that such set-off is requested by the
Borrower, the Borrower shall be entitled to request additional advances not to exceed the available amount of the Commitment pursuant to Article 2 of the Credit Agreement, subject to the terms and conditions of the Credit Agreement, including but
not limited to the conditions precedent specified in Section 5.3. This provision does not alter any obligation to pay GMAC when and in the amounts required under the Credit Agreement, and GMAC has no duty to notify Borrower of any delinquency
thereunder. 
 

2 

 
8. Grant of
Security Interest. Borrower hereby grants GMAC a security interest in all right, title, and interest of the Borrower in, to and under this Agreement, the Credit Balance Account created hereunder, all interest paid or payable on such Credit
Balance Account, all other rights of the Borrower under or in connection with any of the foregoing, and all proceeds of any of the foregoing and acknowledges and agrees that the Credit Balance Account and the other collateral hereunder constitutes
collateral to secure payment of the Obligations. GMAC has such rights to the Credit Balance Account and remedies for default on the Obligations as may be afforded by the Credit Agreement and/or applicable law including, without limitation, the right
of set-off described in Section 9.2 of the Credit Agreement. The security interest in the Credit Balance Account is in addition to any other rights of GMAC against the Borrower, including without limitation, the rights of recoupment and set-off.
GMAC is authorized to file financing statements in such form and in such jurisdictions as it may reasonably consider appropriate in connection with such security interest. Borrower represents that it has not sold, conveyed or transferred and will
not sell, convey or transfer any interest in the Credit Balance Account to any third party. 
 
9. Electronic Communication. GMAC and Borrower may implement this Agreement by conducting business with the non-exclusive use of electronic, computer, digital, or other paperless means,
including the good faith reliance on electronic mail, facsimile transmittal, telephonic, or other usual and regular forms of communication by GMAC with or without confirmation or authentication of the communication by receipt of an original
signature, document, paper, or otherwise. 
 
10.
Assignment. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns. No party hereto may assign or transfer all or any part of its rights and obligations hereunder, except
that: 
 
(a) GMAC may at any time
assign and delegate to one or more of its Affiliates or securitization entities administered by GMAC (each an “Assignee”), all of its rights and obligations under this Agreement. 
 
(b) Borrower authorizes GMAC to disclose to any Assignee or prospective Assignee any and all
information in GMAC’s possession concerning Borrower or this Agreement, subject to confidentiality agreements. 
 
11. Severability. Any provision of this Agreement which is prohibited by law is ineffective to the extent of those prohibitions,
but does not invalidate the remaining provisions of this Agreement. 
 
12. Termination. Either party may terminate this Agreement after giving 10 days advance written notice to the other provided all of the Obligations have been fully and finally repaid to GMAC at that time. The
execution of this Agreement by GMAC and Borrower replaces all previously executed agreements between them of substantially similar nature and type, effective the date first written above. 
 
13. Notices. All notices required under this Agreement shall be made in accordance with the notice
provision contained in the Credit Agreement. 
 

3 

 
14.
GOVERNING LAW. THE INTERPRETATION, ENFORCEMENT AND EFFECT OF THIS AGREEMENT SHALL BE GOVERNED AND CONTROLLED IN ALL RESPECTS BY AND CONSTRUED ACCORDING TO THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK, TO THE JURISDICTION OF WHOSE COURTS THE
PARTIES HERETO HEREBY AGREE TO SUBMIT. BORROWER WAIVES ANY OBJECTION BASED ON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS, WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS
RELATING TO THIS AGREEMENT, OR ANY OTHER DOCUMENT DELIVERED HEREUNDER OR IN CONNECTION HEREWITH, OR ANY TRANSACTION ARISING FROM OR CONNECTED TO ANY OF THE FOREGOING. BORROWER WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT, AND CONSENTS TO
ALL SUCH SERVICE OF PROCESS MADE BY MAIL OR BY MESSENGER DIRECTED TO IT AT THE ADDRESS SPECIFIED IN THE CREDIT AGREEMENT. NOTHING HEREIN SHALL AFFECT THE RIGHT OF GMAC TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW, OR LIMIT THE RIGHT OF GMAC TO
BRING PROCEEDINGS AGAINST BORROWER OR ITS PROPERTY OR ASSETS IN THE COMPETENT COURTS OF ANY OTHER JURISDICTION OR JURISDICTIONS. 
 
15. WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY,
AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 
16. Headings. The headings set forth herein are solely
for the purpose of identification and shall not be construed as a part of the sections or subsections which they head. 
 

4 

 
Duly executed
as of the date first written above. 
 
 

	 HUGHES ELECTRONICS CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name:
 Title:

 

	 GENERAL MOTORS ACCEPTANCE CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name:
 Title:

 

5 

AMENDMENT NO. 1 
GMAC INTERCREDITOR AGREEMENT 
 
THIS AMENDMENT NO. 1 dated as of November     , 2002 (this “Amendment”) to the Intercreditor
Agreement referenced below, is by and among GENERAL MOTORS ACCEPTANCE CORPORATION, a Delaware corporation, BANK OF AMERICA, N.A., as Administrative Agent under the Bank Credit Agreement, BANK OF AMERICA, N.A., as Collateral Agent and HUGHES
ELECTRONICS CORPORATION, a Delaware corporation. Capitalized terms used but not otherwise defined herein shall have the meanings provided in the Intercreditor Agreement. 
 
WITNESSETH 
 
WHEREAS, the parties hereto entered into that Intercreditor Agreement dated as of February 20, 2002 (as amended and modified, the
“Intercreditor Agreement”) among General Motors Acceptance Corporation, a Delaware corporation, Bank of America, N.A., as Administrative Agent under the Bank Credit Agreement, Bank of America, N.A., as Collateral Agent, and Hughes
Electronics Corporation, a Delaware corporation, in connection with amendment of the Bank Credit Agreement, establishment of the GMAC Credit Facility and the grant of certain collateral interests in connection therewith; and 
 
WHEREAS, the Bank Credit Agreement and GMAC Credit Agreement
are being amended, and the Intercreditor Agreement needs to be amended on account thereof; 
 
WHEREAS, the parties hereto have agreed to amendment of the Intercreditor Agreement as provided herein; 
 
NOW, THEREFORE, IN CONSIDERATION of these premises and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows: 
 
Section 1 Amendments to the Intercreditor Agreement. The Intercreditor Agreement is amended in the following respects: 
 
1.1 The recitals are amended in their entirety to read as follows: 
 
WHEREAS, a $750 million revolving credit facility (the “Bank Credit
Facility”) was established in favor of Hughes Electronics Corporation, a Delaware corporation (the “Company” or the “Borrower”), pursuant to the terms of that Amended and Restated Revolving Credit Agreement
(Multi-Year Facility) dated as of November 24, 1999 (as amended, modified, supplemented, increased, extended, restated or replaced, the “Bank Credit Agreement”) among the Company, as borrower, the financial institutions identified
therein, as lenders, and Bank of America, N.A., as administrative agent; 
 
WHEREAS, the Company has agreed to a merger (the “Proposed Merger”) with EchoStar Communications Corporation, a Nevada corporation (“EchoStar”), pursuant to the terms
of that Agreement and Plan of Merger made and entered into as of October 28, 2001, by and between EchoStar and the Company, as amended from time to time; 
 
WHEREAS, GMAC provided $2 billion in financing to the Company (the “GMAC Credit Facility”), pursuant to
the terms of that Revolving Credit Agreement dated as of October 1, 2001 (as amended and modified by a First Amendment dated February 20, 2002, and as may hereafter be amended and modified, the “GMAC Credit Agreement”) between the
Company, as borrower, and GMAC, as lender, consisting of up to $500 million in revolving credit financing 

evidenced by a promissory note in the principal amount of $500 million (as amended and modified, the “GMAC Shared Collateral
Note”) secured by the same collateral securing the Bank Credit Facility and the remaining amount of such financing evidenced by a promissory note in the principal amount of $1.5 billion (as amended and modified, the “GMAC Cash
Secured Note”) secured by funds advanced by the Company to GMAC pursuant to that certain Loan Set-Off and Security Agreement dated as of October 1, 2001, (as amended and modified, the “GMAC Security Agreement”), with such
funds being held on deposit in the Credit Balance Account (as defined below), such Credit Balance Account being pledged for the exclusive benefit of GMAC; 
 
WHEREAS, in connection with and anticipation of the Proposed Merger the lenders under the Bank Credit Agreement amended
the Bank Credit Facility pursuant to Amendment No. 6 dated as of February 20, 2002 and Amendment No. 7 dated as of March 20, 2002 to provide for, among other things, an increase in the aggregate amount of commitments thereunder to up to $2.0 billion
and delivery of subsidiary guaranties and collateral; 
 
WHEREAS, the Bank Credit Facility is being amended pursuant to the terms of Amendment No. 8 to provide, among other things, for (i) transfer by GMAC of $500 million in revolving credit commitments evidenced by the GMAC
Shared Collateral Note under the GMAC Credit Agreement to $500 million in revolving credit commitments as a lender under the Bank Credit Agreement, (ii) modification of the loans and commitments under the Bank Credit Agreement providing for an
aggregate credit facility of $1.933 billion (including the commitments of GMAC), and (iii) extension of the termination and maturity dates applicable to the loans and commitments under the Bank Credit Agreement; 
 
WHEREAS, the GMAC Credit Agreement is being
amended to reflect the foregoing transfer of revolving commitments to the Bank Credit Facility and to provide, among other things, for termination of the commitments under and repayment of the loans evidenced by the GMAC Shared Collateral Note;

 
WHEREAS, after giving effect to
the foregoing amendment, the $1.5 billion in financing evidenced by the GMAC Cash Secured Note under the GMAC Credit Agreement will remain in effect; 
 
WHEREAS, this Intercreditor Agreement is required by the terms of the Bank Credit Agreement; 
 
1.2 In Section 1 (Definitions), the definitions of
“Bankruptcy Event”, “GMAC Shared Collateral Debt” and “Sharing Event” are deleted, and the following definitions are amended to read as follows: 
 
“Bank Debt” means all loans and obligations (including principal, interest,
fees, indemnities and all other amounts, and including interest accruing after commencement of a proceeding in bankruptcy, reorganization or insolvency, whether or not allowable as a claim), whether now or hereafter outstanding or incurred, owing
under the Bank Credit Agreement and the other Loan Documents relating thereto (as referenced and defined therein), including guaranty obligations, if any, given in respect of the loans and obligations owing under the Bank Credit Agreement and the
other Loan Documents relating thereto, in each case as amended, modified, supplemented, increased, extended, renewed or replaced. 
 
“Other Guaranty Shared Collateral Debt” means those guaranty obligations of the Company in respect of
loans, letters of credit reimbursement obligations and lines of credit 

 

2 

extended to its subsidiaries as set forth on Schedule 8.1B to the Bank Credit Agreement by those Banks thereunder that have entered
into an Intercreditor Agreement with the Administrative Agent and the Collateral Agent, in each case as amended, modified, supplemented, extended, renewed or replaced; provided, however, in no event shall the principal amount of the Other
Guaranty Shared Collateral Debt exceed $150 million and interest thereon. 
 
1.3 Section 2.1(b) (Shared Collateral) is amended to read as follows: 
 
(b) Shared Collateral. The Company will provide, and will cause certain subsidiaries to provide, collateral
interests in substantially all their personal property in which the collateral interests may be perfected by the filing of Uniform Commercial Code financing statements and in certain capital stock or other equity interests in certain subsidiaries
(the “Shared Collateral” which term shall, for the avoidance of doubt, include all collateral in which the Collateral Agent now or in the future has a lien pursuant to the Collateral Documents, except that such term will not include
the capital stock of PAS unless the inclusion of such capital stock is consented to in writing by the Administrative Agent (or, if there is no Administrative Agent, the Majority Banks)) as security for (i) the Bank Debt, (ii) the Other Guaranty
Shared Collateral Debt, and (iii) obligations under those interest rate protection, foreign currency exchange agreements and similar agreements with lenders under the Bank Credit Agreement or with their affiliates identified on Schedule
2.1(b) or with the written approval of the Administrative Agent (or if there is no Administrative Agent, the Majority Banks) (collectively, as more particularly described in the Collateral Documents, the “Shared Collateral Secured
Obligations”). In each case, the liens and security interests in the Shared Collateral will be given as common shared liens and interests in favor of the Collateral Agent and shall rank pari passu for the ratable benefit of the
holders of the Shared Collateral Secured Obligations. Notwithstanding anything contained herein or in any other agreement to the contrary, including but not limited to the Bank Credit Agreement and the Collateral Documents, the Credit Balance
Account shall not be deemed Shared Collateral. 
 
1.4 Section 2.2 (Undertakings), Section 2.4 (Proceeds of Collateral), Section 2.5 (Release and Disposition of Collateral), Section 2.6 (Restrictions on Transfer of Shared Collateral Debt), Section 2.7 (Replacement of Collateral
Agent), Section 2.8 (Intercreditor Arrangements in Bankruptcy), Section 2.9 (Liability of Collateral Agent) and Section 2.10 (Indemnification of Collateral Agent) are hereby deleted and replaced with “[Intentionally Omitted]”.

 
1.5 Section 3.3 (Termination) is
amended to read as follows: 
 
3.3
Termination. This Agreement shall terminate upon payment in full (without refinancing or replacement) of all of the Shared Collateral Secured Obligations and expiration or termination of the commitments relating thereto. 
 
Section 2 Conditions Precedent. This Amendment shall
become effective immediately upon satisfaction of each of the following conditions, each in form and substance satisfactory to the Administrative Agent and the Banks: 
 
(a) counterparts of this Amendment duly executed by all the parties hereto; 
 
(b) confirmation that Amendment No. 8 has been
approved by the Banks and has been duly executed and delivered by the Company and the other parties thereto. 
 
Section 3 Miscellaneous. 
 

3 

 
3.1 This
Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and it shall not be necessary in making proof of this Amendment to produce or account for more than one such
counterpart. Delivery by any party hereto of an executed counterpart hereof by facsimile shall be effective as such party’s original executed counterpart and shall constitute a representation that such party’s original executed counterpart
will be delivered. 
 
3.2 This Amendment shall be
deemed to be a contract made under, and for all purposes shall be construed in accordance with the laws of the State of New York. 
 
[remainder of page intentionally left blank] 
 
 

4 

 
IN WITNESS
WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written. 
 

	 GENERAL MOTORS ACCEPTANCE CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name
 Title:

 

	 BANK OF AMERICA, N.A., 
 as Administrative Agent for and on behalf of the lenders under the Bank Credit Agreement

	
	 By:
	 	                                      
                                        
                  

	 Name
 Title:

 

	 BANK OF AMERICA, N.A. 
 as Collateral Agent

	
	 By:
	 	                                      
                                        
                  

	 Name
 Title:

 

	 HUGHES ELECTRONICS CORPORATION, 
 a Delaware corporation

	
	 By:
	 	                                      
                                        
                  

	 Name
 Title:

 
FIRST
AMENDMENT 
 
THIS FIRST AMENDMENT is dated as
of February 20, 2002 (this “Amendment”) between HUGHES ELECTRONICS CORPORATION, a corporation organized and existing under the laws of Delaware (the “Borrower”) and GENERAL MOTORS ACCEPTANCE CORPORATION, a corporation organized
under the laws of Delaware (the “Lender”). 
 
W I T N E S S E T H: 
 
WHEREAS, the Borrower and the Lender have agreed to amend the Revolving Credit Agreement dated as of October 1, 2001 (the “Credit Agreement”) in the manner provided below; and 
 
WHEREAS, the Borrower and the Lender have agreed to amend the
Loan Set-Off and Security Agreement dated as of October 1, 2001 (the “Loan Set-Off and Security Agreement”) in the manner provided below. 
 
NOW, THEREFORE, the parties hereto hereby agree as follows: 
 
1. Defined Terms. Terms defined in the Credit Agreement shall have their defined meanings when used
herein. 
 
2. Amendment of the Credit
Agreement. The Credit Agreement (including the Exhibits thereto) is hereby amended in accordance with Exhibit A hereto: (a) by deleting each term thereof which is lined out; and (b) by inserting each term thereof which is double
underlined, in each case in the place where such term appears therein. 
 
3. Amendment of the Loan Set-Off and Security Agreement. The Loan Set-Off and Security Agreement is hereby amended in accordance with Exhibit B hereto: (a) by deleting each term thereof which is lined out; and
(b) by inserting each term thereof which is double underlined, in each case in the place where such term appears therein. 
 
4. Execution of Intercreditor Agreement. Concurrently with the execution of this Amendment, (a) the Existing Credit Agreement is
being amended and restated in its entirety as set forth in Exhibit C (as so amended and restated, or as hereafter amended, modified or supplemented, the “Existing Credit Agreement”); and (b) the Borrower, the Lender and Bank of
America are entering into an Intercreditor Agreement in the form attached as Exhibit D (such agreement, as amended, modified or supplemented from time to time, the “Intercreditor Agreement”). 
 
5. Modification of Credit Agreement. Notwithstanding
anything in the Credit Agreement to the contrary, the Credit Agreement shall be modified as follows: 
 
(a) The “Termination Date” (as defined in the Credit Agreement) shall have the same meaning as given such term
in the Existing Credit Agreement. 

 

	(b)	 	The Representations and Warranties of Borrower (as provided in Section 6 of the Credit Agreement) shall not be applicable and in lieu of such, the
“Representations and Warranties of Borrower” in Section 6 of the Existing Credit Agreement (and all related definitions in the Existing Credit Agreement, to the extent not otherwise defined in the Credit Agreement) shall instead apply.
Notwithstanding the foregoing, any reference in Section 6 of the Existing Credit Agreement to Banks, Majority Banks or Administrative Agent shall be deemed to be the Lender for the purposes of the Credit Agreement. 

 

	(c)	 	The Affirmative Covenants of Borrower (as provided in Section 7 of the Credit Agreement) shall not be applicableand in lieu of such covenants, the “Affirmative
Covenants of Borrower” in Section 7 of the Existing Credit Agreement (and all related definitions in the Existing Credit Agreement, to the extent not otherwise defined in the Credit Agreement) shall instead apply. Notwithstanding the foregoing,
any reference in Section 7 of the Existing Credit Agreement to Banks, Majority Banks or Administrative Agent shall be deemed to be the Lender for the purposes of the Credit Agreement. 

 

	(d)	 	The Negative Covenants of Borrower (as provided in Section 8 of the Credit Agreement) shall not be applicable and in lieu of such covenants, the “Negative
Covenants of Borrower” in Section 8 of the Existing Credit Agreement (and all related definitions in the Existing Credit Agreement, to the extent not otherwise defined in the Credit Agreement) shall instead apply. Notwithstanding the foregoing,
any reference in Section 8 of the Existing Credit Agreement to Banks, Majority Banks or Administrative Agent shall be deemed to be the Lender for the purposes of the Credit Agreement. 

 
(e) The Events
of Default (as provided in Section 9 of the Credit Agreement) shall not be applicable and in lieu of such Events of Default, the “Events of Default” in Section 9.1 of the Existing Credit Agreement (and all related definitions in the
Existing Credit Agreement, to the extent not otherwise defined in the Credit Agreement) shall instead apply. Notwithstanding the foregoing, any reference in Section 9.1 of the Existing Credit Agreement to Banks, Majority Banks or Administrative
Agent shall be deemed to be the Lender for the purposes of the Credit Agreement. 
 
6. Termination of Intercreditor Agreement or Existing Credit Agreement. If (i) the Intercreditor Agreement shall have terminated or (ii) the Lender shall cease to be a party to the Exiting Credit
Agreement for any reason whatsoever, then the provisions of Section 5 of this Amendment shall remain applicable and in full force and effect, provided that the Termination Date, Representations and Warranties of Borrower, Affirmative Covenants of
Borrower, Negative Covenants of Borrower and Events of Default (each as defined in the Existing Credit Agreement) in effect on the date of such event described in clause (i) or (ii) hereof shall remain applicable irrespective of any further
amendments of the Existing Credit Agreement made after such date, and provided further that the remainder of the Credit Agreement in the form attached as Exhibit A shall be effective. 
 
7. No Other Amendments. Except as expressly stated
herein, the provisions of the Credit Agreement and the Loan Set-Off and Security Agreement are and shall remain in full force and effect. 
 
8. Amendment; Consent. This Amendment shall be effective upon execution by the Borrower and the Lender. 
 
9. Governing Law; Counterparts. 

 
(a) THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 
(b) This Amendment may be executed in any number of counterparts, all of which counterparts, taken together,
shall constitute one and the same instrument. 
 
IN
WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written. 
 

	 HUGHES ELECTRONICS CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Title

 

	 GENERAL MOTORS ACCEPTANCE CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Title

 
EXHIBIT A

 
CREDIT AGREEMENT 

 
EXHIBIT B

 
LOAN SET-OFF AND SECURITY AGREEMENT

 
EXHIBIT C

 
BANK CREDIT AGREEMENT 

 
EXHIBIT D

 
INTERCREDITOR AGREEMENT 

 
ACKNOWLEDGMENT AND CONSENT 
 
The undersigned are parties to that certain Indemnification Agreement dated as of October 1, 2001, a copy of which is attached hereto as Exhibit A (the “Indemnification Agreement”), which agreement was
executed in connection with that certain Credit Agreement by and between Hughes Electronics Corporation and General Motors Acceptance Corporation (as amended, the “Credit Agreement”). 
 
The undersigned hereby acknowledge and consent to the
amendment of the Credit Agreement by that certain Second Amendment dated as of November 26, 2002, a copy of which is attached hereto as Exhibit B (the “Second Amendment”), and any further amendments to the Credit
Agreement, and hereby agree that notwithstanding such Second Amendment or further amendments that the terms and conditions of the Indemnification Agreement shall remain in full force and effect. 
 
This Acknowledgment and Consent may be executed in any number
of counterparts and by the different parties hereto on separate counterparts, and all of said counterparts taken together shall constitute one and the same instrument. 
 
Dated: November      2002 
“Hughes” 
 

	 HUGHES ELECTRONICS CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name:
 Title:

 
“Majority Owner” 
 

	 GENERAL MOTORS CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name:
 Title:

 
“Lender” 
 

	 GENERAL MOTORS ACCEPTANCE CORPORATION

	
	 By:
	 	                                      
                                        
                  

	 Name:
 Title:

 
EXHIBIT
A 
 
INDEMNIFICATION AGREEMENT

	

 

2 

 
EXHIBIT
B 
 
SECOND AMENDMENT 
 

3

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