Document:

EXHIBIT 4.2

 Exhibit 4.2 

  
 THE TITAN CORPORATION, 
 AS ISSUER, 
  
 DEUTSCHE BANK TRUST COMPANY AMERICAS, 
 AS TRUSTEE, 
  
 THE SUBSIDIARY GUARANTORS NAMED 
 ON THE SIGNATURE PAGES HEREOF, 
  
 LMC LLC ONE, LLC 
  
 AND 
  
 LOCKHEED MARTIN CORPORATION 
  

  
 FIRST SUPPLEMENTAL INDENTURE 
  
 DATED AS OF             , 2004 
  
 TO 
  
 INDENTURE 
  
 DATED AS OF MAY 15, 2003 
  

 FIRST SUPPLEMENTAL INDENTURE dated as of
            , 2004, by and among THE TITAN CORPORATION, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter “the Company”), the
Subsidiary Guarantors named on the signature pages hereof (collectively, the “Guarantors”), LMC LLC One, LLC (“LMC LLC One”), Lockheed Martin Corporation (“Lockheed Martin”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, a
New York banking corporation, as trustee (hereinafter called the “Trustee”). 
  
 WHEREAS, the Company has heretofore executed and delivered an indenture dated as of May 15, 2003 (the “Original Indenture”), by and among the Company, the Guarantors and the Trustee, pursuant to which the
Company has issued $200,000,000 aggregate principal amount of 8% Senior Subordinated Notes due 2011 (the “Notes”) and the Guarantors have executed and delivered their guarantees of the Notes (the “Guarantees”); and 
  
 WHEREAS, pursuant to the Agreement and Plan of Merger dated as of September
15, 2003 (the “Merger Agreement”), among Lockheed Martin, LMC Sub and the Company, the Company will merge with and into LMC LLC One (the “Merger”) and become a wholly owned subsidiary of Lockheed Martin; and 
  
 WHEREAS, in connection with the Merger, the Company has commenced the
Exchange Offer and Consent Solicitation (each as defined below); and 
  
 WHEREAS, Section 9.1 of the Original Indenture provides that, without the consent of any Holder of a Note, the Company, the Guarantors and the Trustee may amend or supplement the Original Indenture to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not adversely affect the rights thereunder of any Holder of a Note; and 
  
 WHEREAS, Section 9.2 of the Original Indenture provides that the Company, the Guarantors and the Trustee may amend or supplement the Original Indenture,
the Notes and the Guarantees, with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes, including consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes;
and 
  
 WHEREAS, the Holders of at least a majority in aggregate
principal amount of the Notes outstanding as of the date hereof have consented in the Consent Solicitation to the amendments to the Original Indenture hereinafter set forth and the execution of this First Supplemental Indenture; and 
  
 WHEREAS, all conditions to the entering of this First Supplemental Indenture
have been satisfied; and 
  
 WHEREAS, the Company, the Guarantors,
Lockheed Martin, LMC LLC One and the Trustee desire to enter into this First Supplemental Indenture to effect the amendments to the Original Indenture, to release the Guarantors from their guarantee obligations under the Indenture and to add
Lockheed Martin as a Guarantor under the Indenture; 
  
 NOW,
THEREFORE, in consideration of the premises and of the mutual covenants herein contained, and of the acceptance of this trust by the Trustee, and of other valuable 

  

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consideration, the receipt whereof is hereby acknowledged, it is hereby covenanted, declared and agreed by and between the parties hereto, for the benefit of
Holders of the Notes, as follows: 
  
 SECTION 1. 
  
 DEFINITIONS 
  
 As used herein, the following terms shall have the meanings set forth below. 
  
 “Consent Solicitation” means the Consent Solicitation made by the
Company commencing             , 2003, to obtain the consents of Holders necessary to effect (i) certain of the amendments to the Indenture set forth in this First Supplemental
Indenture, (ii) the release of the Guarantors under the Indenture and (iii) certain amendments to the Registration Rights Agreement dated as of May 15, 2003 among the Company and the other parties named on the signature pages thereto, all as set
forth in the S-4 Registration Statement. 
  
 “Effective Time
of the Merger” means the time at which the merger of the Company and LMC LLC One shall be effective under the terms of the Merger Agreement. 
  
 “Exchange Offer” means the offer by the Company and Lockheed Martin commencing
            , 2003, to effect (i) an offer to exchange the Notes for fully registered notes with terms substantially identical, subject to the amendments to be effected by this First
Supplemental Indenture, to the Notes and (ii) a full and unconditional guarantee of payment of the Notes as so amended by Lockheed Martin, all as set forth in the S-4 Registration Statement. 
  
 “S-4 Registration Statement” means the Registration Statement on
Form S-4 (Registration No. 333-          ) filed with the SEC by the Company, the Guarantors named therein and Lockheed Martin. 
  
 Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Original
Indenture. 
  
 SECTION 2. 
  
 OPERATION OF AMENDMENTS 
  
 Upon the execution and delivery of this First Supplemental Indenture by the
Company, the Guarantors, Lockheed Martin, LMC LLC One and the Trustee, this First Supplemental Indenture shall become effective and the Original Indenture and the Notes and Guarantees issued thereunder shall be amended and supplemented in accordance
herewith, and this First Supplemental Indenture shall form a part of the Original Indenture for all purposes, and every holder of Notes authenticated and delivered under the Original Indenture shall be bound hereby; provided, however,
that the provisions of Sections 3, 4 and 5 of the First Supplemental Indenture shall not become operative with respect to the Original Indenture, any Notes or the Guarantees of the Guarantors until immediately prior to the Effective Time of the
Merger, at which time the provisions of Sections 3, 4 and 5 of this First Supplemental Indenture shall automatically become operative with respect to the Original Indenture, the Notes and the Guarantees of the Guarantors, and the same shall be
affected as provided in Sections 3, 4 and 5 hereof, and the provisions of the Indenture, as so amended, shall bind all holders of Notes without the requirement of any further action by or notice to the Company, the Guarantors, Lockheed Martin, the
Trustee or any Holder of Notes. 
  

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 SECTION 3. 
  
 ASSUMPTION OF OBLIGATIONS 
  
 Subject to the delivery by the Company to the Trustee of an Opinion of Counsel and an Officers Certificate as required by Section 5.1 of the Original
Indenture, pursuant to Section 5.1 of the Indenture (as amended by this First Supplemental Indenture), LMC LLC One, as the successor to the Company under terms of the Merger Agreement, hereby expressly assumes all of the Company’s obligations
in connection with the Notes and the Indenture. 
  
 SECTION 4.

  
 RELEASE OF SUBSIDIARY GUARANTORS 
  
 Pursuant to Section 10.4 of the Original Indenture, each of the Guarantors
named on the signature pages of the Original Indenture is hereby designated by the Company as an Unrestricted Subsidiary and is hereby released from its obligations under its Guarantee. 
  
 SECTION 5. 
  
 AMENDMENTS TO THE INDENTURE 
  
 SECTION 5.1 Amendments to Article One. 
  
 (a) Section 1.1 of the Original Indenture is hereby amended to amend and restate the following definitions in their entirety to read as follows:

  
 “Disqualified Capital Stock” means with respect to
the Company, (a) Equity Interests of the Company that, by their terms or by the terms of any security into which they are convertible, exercisable or exchangeable, are, or upon the happening of an event or the passage of time or both would be,
required to be redeemed or repurchased including at the option of the holder thereof by the Company or any of its Subsidiaries, in whole or in part, on or prior to 91 days following the Stated Maturity of the Notes and (b) any Equity Interests of
any Subsidiary of the Company other than any common equity with no preferences, privileges, and no redemption or repayment provisions. Notwithstanding the foregoing, any Equity Interests that would constitute Disqualified Capital Stock solely
because the holders thereof have the right to require the Company to repurchase such Equity Interests upon the occurrence of a change of control or an asset sale shall not constitute Disqualified Capital Stock if the terms of such Equity Interests
provide that the Company may not repurchase or redeem any such Equity Interests pursuant to such provisions at a time when the Notes are outstanding or prior May 15, 2011. 
  
 “Guarantor” means Lockheed Martin. 
  
 “Indebtedness” means all debt for borrowed money reported as debt in the consolidated financial statements or any
guarantee of such a debt and includes purchase money obligations. This term does not include any obligation to make payments arising from 
  

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 the transfer of tax benefits under the Economic Recovery Tax Act of 1981 (as it may from time to time be
amended, or any successor statute) to the extent such obligation is offset by or conditioned upon receipt of payments from another person. Indebtedness shall be counted only once even if both Lockheed Martin and one or more of its Subsidiaries may
be responsible for the obligation. 
  
 “Junior
Security” means any Qualified Capital Stock and any Indebtedness of the Company that is contractually subordinated in right of payment to Senior Debt at least to the same extent as the Notes and has no scheduled installment of principal due, by
redemption, sinking fund payment or otherwise, on or prior to the Stated Maturity of the Notes; provided, that in the case of subordination in respect of Senior Debt under the Credit Agreement, “Junior Security” shall mean any
Qualified Capital Stock and any Indebtedness of the Company that: 
  

	 	(1)	has a final maturity date occurring after the final maturity date of, all Senior Debt outstanding under the Credit Agreement on the date of issuance of such Qualified Capital Stock
or Indebtedness, 

  

	 	(2)	is unsecured, 

  

	 	(3)	has an Average Life longer than the security for which such Qualified Capital Stock or Indebtedness is being exchanged, and 

  

	 	(4)	by their terms or by law are subordinated to Senior Debt outstanding under the Credit Agreement on the date of issuance of such Qualified Capital Stock or Indebtedness at least to
the same extent as the Notes. 

  
 “Lien”
means any mortgage, pledge, security interest or lien. This term does not include any obligation arising from the transfer of tax benefits under the Economic Recovery Tax Act of 1981 (as it may from time to time be amended, or any successor statute)
to the extent such obligation is offset by or conditioned upon receipt of payments from another person. 
  
 “Senior Debt” means Indebtedness (including any monetary obligations (including fees, expenses and indemnification obligations) of the Company
in respect of such Indebtedness, including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company at the rate provided for in the documentation with respect thereto, whether or not
post-filing interest is allowed in such proceeding) of the Company arising under the Credit Agreement or that, by the terms of the instrument creating or evidencing such Indebtedness, is expressly designated Senior Debt and made senior in right of
payment to the Notes; provided, that in no event shall Senior Debt include (a) Indebtedness to any Subsidiary of the Company or any officer, director or employee of the Company or any Subsidiary of the Company, (b) Indebtedness incurred in
violation of the terms of the Indenture, (c) Indebtedness to trade creditors, (d) Disqualified Capital Stock, (e) Capitalized Lease Obligations, and (f) any liability for taxes owed or owing by the Company. 
  
 “Subsidiary” means a Person a majority of the Voting Equity
Interests of which is owned by the Company, the Company and one or more Subsidiaries, or one or more Subsidiaries. Unless the context requires otherwise, Subsidiary means each direct and indirect Subsidiary of the Company. “Subsidiary”
shall not include Titan Capital Trust, as existing on the Issue Date pursuant to the Amended and Restated Declaration of Trust, dated February 9, 2000, without any amendments thereto. 
  
 (b) Section 1.1 of the Original Indenture is hereby further amended to delete the following definitions in their entirety:

  
 “Acquired Indebtedness” 
 “Acquisition” 
 “Bankruptcy
Code” 
 “Capital Contribution” 
 “Change of Control” 
 “Consolidated Coverage Ratio” 
 “Consolidated Cash Flow” 
 “Consolidated Fixed Charges” 
 “Consolidated Net Income” 
 “Consolidated Subsidiary” 
 “Consolidation” 
  

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 “Continuing Director” 
 “Excluded Asset Sales” 
 “Exempted Affiliate Transaction” 
 “Existing Indebtedness” 
 “fair market value” 
 “Investment” 
 “Net Cash Proceeds” 
 “Permitted Earn-Out Obligations” 
 “Permitted Indebtedness” 
 “Permitted Investment” 
 “Permitted Lien” 
 “Preferred Stock” 
 “Pro Forma” or “pro forma” 
 “Purchase Money Indebtedness” 
 “Qualified Exchange” 
 “Recourse Indebtedness” 
 “Reference Period” 
 “Refinancing Indebtedness” 
 “Related Business” 
 “Restricted Investment” 
 “Restricted Payment” 
 “Unrestricted Subsidiary” 
  
 (c) Section 1.1 of the Original Indenture is hereby amended to insert therein the following new definitions in alphabetical order: 
  
 “Attributable Indebtedness” means, for a lease, the carrying value
of the capitalized rental obligation determined under generally accepted accounting principles. The carrying value may be reduced by the capitalized value of the rental obligations, calculated on the same basis, that any sublessee has for all or
part of the same property. This term does not include any obligation to make payments arising from the transfer of tax benefits under the Economic Recovery Tax Act of 1981 (as it may from time to time be amended, or any successor statute) to the
extent such obligation is offset by or conditioned upon receipt of payments from another person. A lease obligation shall be counted only once even if both Lockheed Martin and one or more of its Subsidiaries may be responsible for the obligation.

  
 “Consolidated Net Tangible Assets” means total
assets less (1) total current liabilities (excluding any Indebtedness which, at the option of the borrower, is renewable or extendable to a term exceeding 12 months and which is included in current liabilities and further excluding any deferred
income taxes which are included in current liabilities) and (2) goodwill, patents and trademarks, all as reflected in Lockheed Martin’s most recent consolidated balance sheet preceding the date of a determination under Section 4.8(11) of the
Indenture. 
  

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 “First Supplemental Indenture” means the First Supplemental Indenture dated as of
            , 2004, to the Original Indenture. 
  
 “Lockheed Martin” means Lockheed Martin Corporation, a Maryland corporation. 
  
 “Long-Term Indebtedness” means Indebtedness that by its terms matures on a date more than 12 months after the date
it was created or Indebtedness that the obligor may extend or renew without the obligee’s consent to a date more than 12 months after the Indebtedness was created. 
  
 “Principal Property” means any manufacturing facility located in the United States and owned by Lockheed Martin or
by one or more Restricted Subsidiaries from the date of the First Supplemental Indenture and which has, as of the date the Lien is incurred, a net book value (after deduction of depreciation and other similar charges) greater than 3% of Consolidated
Net Tangible Assets, except (1) any such facility or property which is financed by obligations of any State, political subdivision of any State or the District of Columbia under terms which permit the interest payable to the holders of the
obligations to be excluded from gross income as a result of the plant, facility or property satisfying the conditions of Section 103(b) (4) (C), (D), (E), (F) or (H) of the Internal Revenue Code of 1954, as amended, Section 103(b) (6) of the
Internal Revenue Code of 1954, as amended, Section 142(a) or Section 144(a) of the Internal Revenue Code of 1986, or of any successors to such provisions, or (2) any such facility or property which, in the opinion of the Board of Directors of
Lockheed Martin, is not of material importance to the total business conducted by Lockheed Martin and its Subsidiaries taken as a whole. However, the Chief Executive Officer or Chief Financial Officer of Lockheed Martin may at any time declare any
manufacturing facility or other property to be a Principal Property by delivering a certificate to that effect to the Trustee. 
  
 “Restricted Property” means, any Principal Property, any Indebtedness of a Restricted Subsidiary owned by Lockheed Martin or a Restricted
Subsidiary on the date of the First Supplemental Indenture or the date Notes are first secured by a Principal Property (including any property received upon a conversion or exchange of such Indebtedness), or any Equity Interests of Lockheed Martin
or a Restricted Subsidiary owned by Lockheed Martin or a Restricted Subsidiary (including any property or Equity Interests received upon a conversion, stock split or other distribution which respect to the ownership of such Equity Interests).

  
 “Restricted Subsidiary” means a Subsidiary that has
substantially all its assets located in, or that carries on substantially all its business in, the United States and that owns a Principal Property. Notwithstanding the preceding sentence, a Subsidiary shall not be a Restricted Subsidiary during
such period of time as it (or any corporation (other than Lockheed Martin) or other entity that, directly or indirectly, beneficially owns a majority of the Voting Equity Interests of the Subsidiary) has Equity Interests registered 
  

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 under the Exchange Act or it files reports and other information with the SEC pursuant to Section 13 or
15(d) of the Exchange Act. 
  
 “Sale-Leaseback
Transaction” means an arrangement whereby Lockheed Martin or a Restricted Subsidiary now owns or hereafter acquires a Principal Property, transfers it to a person and contemporaneously leases it back from the person. This term does not include
any transaction arising from the transfer of tax benefits under the Economic Recovery Tax Act of 1981 (as it may from time to time be amended, or any successor statute) to the extent the obligation to make rental payments is offset or conditioned
upon receipt of payments from another person. 
  
 “United
States” means the United States of America. The Commonwealth of Puerto Rico, the Virgin Islands and other territories and possessions are not part of the United States. 
  
 (d) Section 1.2 of the Original Indenture is hereby amended to delete the cross references to the following definitions:

  
 “Affiliate Transaction” 
 “Asset Sale” 
 “Asset Sale
Offer” 
 “Change of Control Offer” 
 “Change of Control Offer Period” 
 “Change of Control Purchase Date” 
 “Change of Control Purchase Price” 
 “Debt Incurrence Ratio” 
 “Excess Proceeds” 
 “incur” or “incurrence” 
 “Incurrence Date” 
  
 (e) All references in the
Original Indenture to “Guarantors”, “any Guarantors” and “such Guarantors” are hereby amended and restated to read as “Guarantor”, “Lockheed Martin” and “Lockheed Martin”, respectively. All
references in the Original Indenture to “Guarantees” and “such Guarantees” are hereby amended and restated to read as “Guarantee” and the “Guarantee”, respectively. 
  
 SECTION 5.2 Amendments to Article IV. Article IV of the Original
Indenture is hereby amended as follows: 
  
 (a) Section 4.3 of
the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.3. SEC REPORTS. 
  
 The Company and the Guarantor shall file with the Trustee within 15 days after it files them with the SEC copies of the annual reports and of the information, documents and other reports (or copies of such portions of
any of the foregoing as the SEC may by rules and regulations prescribe) which the Company 
  

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 and the Guarantor are required to file with the SEC pursuant to Section 13 or Section 15(d) of the
Exchange Act, unless such documents are publicly available via the SEC’s EDGAR filing system or comparable replacement system maintained by the SEC. The Company and the Guarantor also shall comply with the other provisions of TIA Section
314(a).” 
  
 (b) Section 4.5 of the Original Indenture is
hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.5. TAXES. Intentionally deleted by amendment.” 
  
 (c) Section 4.6 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.6. STAY, EXTENSION AND USURY LAWS.
Intentionally deleted by amendment.” 
  
 (d) Section 4.7 of
the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.7. LIMITATION ON INCURRENCE OF ADDITIONAL INDEBTEDNESS AND DISQUALIFIED CAPITAL STOCK. Intentionally deleted by
amendment.” 
  
 (e) Section 4.8 of the Original Indenture is
hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.8. LIMITATION ON LIENS. 
  
 Lockheed Martin shall not, and shall not permit any Restricted Subsidiary to, incur a Lien on Restricted Property to secure any
Indebtedness unless: 
  
 (1) the Lien equally and
ratably secures the Notes and the Indebtedness. The Lien may equally and ratably secure the Notes and any other obligation of Lockheed Martin or a Subsidiary. The Lien may not secure an obligation of Lockheed Martin that is subordinated to any
Notes; or 
  
 (2) the Lien is on property,
Indebtedness or shares of stock of a corporation at the time such corporation becomes a Restricted Subsidiary; or 
  
 (3) the Lien is on property at the time Lockheed Martin or a Restricted Subsidiary acquires the property. However, the Lien may not extend
to the other Restricted Property owned by Lockheed Martin or a Restricted Subsidiary at the time the property is acquired; or 
  
 (4) the Lien secures the payment of all or any part of the purchase price of property upon the acquisition of such property by Lockheed
Martin or a Restricted Subsidiary or secures any Indebtedness 
  

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 incurred or guaranteed by Lockheed Martin or a Restricted Subsidiary prior to, at the time of, or within
one year after the later of the acquisition, completion of construction (including any improvements on an existing property) or commencement of full operation of such property, which Indebtedness is incurred or guaranteed for the purpose of
financing all or any part of the purchase price thereof or construction or improvements thereon, and which Indebtedness may be in the form of obligations incurred in connection with industrial revenue bonds or similar financings and letters of
credit issued in connection therewith; provided, however, that in the case of any such acquisition, construction or improvement the Lien shall not apply to any property theretofore owned by Lockheed Martin or a Restricted Subsidiary, other than, in
the case of any such construction or improvement on any theretofore unimproved real property on which the property so constructed or the improvement made is located; or 
  
 (5) the Lien secures Indebtedness of a Restricted Subsidiary owed to Lockheed Martin or another Restricted
Subsidiary; or 
  
 (6) the Lien is on property of
a corporation or other entity at the time such corporation or other entity merges into, or consolidates or enters into a share exchange with, Lockheed Martin or a Restricted Subsidiary; or 
  
 (7) the Lien is on property of a Person at the time the
Person transfers or leases all or substantially all its assets to Lockheed Martin or a Restricted Subsidiary; or 
  
 (8) the Lien is in favor of any customer (including any government or governmental authority) to secure partial, progress, advance or
other payments or performance pursuant to any contract or statute or to secure any related indebtedness or to secure Indebtedness guaranteed by a government or governmental authority; or 
  
 (9) the Lien arises pursuant to any order of attachment, restraint or similar legal process arising in
connection with court proceedings so long as the execution or other enforcement thereof is effectively stayed and the claims secured thereby are being contested in good faith by appropriate proceedings or the Lien is a materialmen’s,
suppliers’, tax or other similar Lien arising in the ordinary course of business securing obligations which are not overdue or are being contested in good faith by appropriate proceedings; or 
  
 (10) the Lien extends, renews or replaces in whole or in
part a Lien (“existing Lien”) permitted by any of the clauses (1) through (9) or a Lien existing on the date of the First Supplemental Indenture. The Lien may not extend beyond the property subject to the existing Lien. The 
  

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 Indebtedness secured by the Lien may not exceed the Indebtedness secured at the time by the existing Lien
unless the existing Lien or a predecessor Lien was incurred under clause (1) or (5); or 
  
 (11) the Indebtedness secured by the Lien plus all other Indebtedness secured by Liens on Restricted Property, excluding Indebtedness
secured by a Lien permitted by any of the clauses (1) through (10) and any Indebtedness secured by a Lien existing at the date of this Indenture, at the time does not exceed 10% of Consolidated Net Tangible Assets. Attributable Indebtedness for any
lease entered into under clause (4) of Section 4.19 shall be included in the determination and treated as Indebtedness secured by a Lien on Restricted Property not otherwise permitted by any of the clauses (1) through (10).” 
  
 (f) Section 4.9 of the Original Indenture is hereby amended and restated in
its entirety to read as follows: 
  
 “SECTION 4.9. LIMITATION ON RESTRICTED PAYMENTS. Intentionally deleted by amendment.” 
  
 (g) Section 4.10 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.10. LIMITATION ON DIVIDENDS AND OTHER
PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES. Intentionally deleted by amendment.” 
  
 (h) Section 4.11 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.11. LIMITATION ON TRANSACTIONS WITH AFFILIATES. Intentionally deleted by amendment.” 
  
 (i) Section 4.12 of the Original Indenture is hereby amended and restated in
its entirety to read as follows: 
  
 “SECTION 4.12. LIMITATION ON SALE OF ASSETS AND SUBSIDIARY STOCK. Intentionally deleted by amendment.” 
  
 (j) Section 4.13 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.13. REPURCHASE OF NOTES AT THE OPTION OF
THE HOLDER UPON A CHANGE OF CONTROL. Intentionally deleted by amendment.” 
  
 (k) Section 4.14 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.14. LIMITATION ON LAYERING INDEBTEDNESS. Intentionally deleted by amendment.” 
  

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 (l) Section 4.15 of the Original Indenture is hereby amended and restated in its entirety to read as
follows: 
  
 “SECTION 4.15. SUBSIDIARY
GUARANTORS. Intentionally deleted by amendment.” 
  
 (m)
Section 4.16 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 4.16. LIMITATION ON STATUS AS AN INVESTMENT COMPANY. Intentionally deleted by amendment.” 
  
 (n) Section 4.17 of the Original Indenture is hereby amended and restated in
its entirety to read as follows: 
  
 “SECTION 4.17. MAINTENANCE OF PROPERTIES AND INSURANCE. Intentionally deleted by amendment.” 
  
 (o) Section 4.18 of the Original Indenture is hereby amended by deleting the phrase “corporate existence” in clause (i) of such section and
replacing it with the phrase “corporate or limited liability Company existence”. 
  
 (p) Article IV is amended by inserting the following provision as Section 4.19: 
  
 “SECTION 4.19. LIMITATION ON SALE-LEASEBACK TRANSACTIONS 
  
 Lockheed Martin shall not, and shall not permit any Restricted Subsidiary to, enter into a Sale-Leaseback Transaction
unless: 
  
 (1) the lease has a term of three
years or less; or 
  
 (2) the lease is between
Lockheed Martin and a Restricted Subsidiary or between Restricted Subsidiaries; or 
  
 (3) Lockheed Martin or a Restricted Subsidiary under clauses (2) through (10) of Section 4.8 could create a Lien on the property to secure
Indebtedness at least equal in amount to the Attributable Indebtedness for the lease; or 
  
 (4) Lockheed Martin or a Restricted Subsidiary under clause (11) of Section 4.8 could create a Lien on the property to secure Indebtedness
at least equal in amount to the Attributable Indebtedness for the lease; or 
  

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 (5) Lockheed Martin or a Subsidiary owns or acquires other property which will be made a
Principal Property and is determined by the Board of Directors of Lockheed Martin to have a fair value equal to or greater than the Attributable Indebtedness incurred; or 
  
 (6) (A) Lockheed Martin or a Restricted Subsidiary makes an optional prepayment in cash of its Indebtedness
at least equal in amount to the Attributable Indebtedness for the lease, 
  
 (B) the prepayment is made within 120 days of the effective date of the lease, 
  
 (C) the Indebtedness prepaid is not owned by Lockheed Martin or a Restricted Subsidiary, and 
  
 (D) the Indebtedness prepaid was Long-Term Indebtedness at
the time it was created.” 
  
 SECTION 5.3 Amendments to
Article V. Article V of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “SECTION 5.1. WHEN THE COMPANY OR LOCKHEED MARTIN MAY MERGE, ETC.  
  
 Neither the Company nor Lockheed Martin shall consolidate
with or merge into, or transfer all or substantially all its assets to another Person, unless (1) the resulting, surviving or transferee Person assumes by supplemental indenture all the obligations of the Company or Lockheed Martin, as the case may
be, under the Notes, the Guarantee and this Indenture, (2) immediately after giving effect to such transaction no Event of Default and no circumstances which, after notice or lapse of time or both, would become an Event of Default, shall have
happened and be continuing, and (3) the Company or Lockheed Martin, as the case may be, shall have delivered to the Trustee an Officers’ Certificate stating that such consolidation, merger or transfer and such supplemental indenture comply with
this Indenture, and thereafter all such obligations of the Company or Lockheed Martin, as the case may be, shall terminate except any obligations that arise from, or are related to, such transaction.” 
  
 SECTION 5.4 Amendments to Article VI. Article VI of the Original
Indenture is hereby amended and restated in its entirety to read as follows: 
  

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 “ARTICLE 6 
  

DEFAULTS AND REMEDIES 
  
 SECTION 6.1. EVENTS OF DEFAULT. 
  
 An “Event of Default” occurs with respect to the Notes if: 
  
 (1) the Company defaults in the payment of interest (or Liquidated Damages, if any) on any Notes when the
same becomes due and payable and the default continues for a period of 30 days; 
  
 (2) the Company defaults in the payment of the principal of, or premium, if any, on any Notes when the same becomes due and payable at
maturity, upon redemption or otherwise; 
  
 (3)
the Company fails to comply with any of its other agreements in the Notes or this Indenture for the benefit of the Notes and the default continues for the period and after the notice specified in this Section; 
  
 (4) Lockheed Martin or the Company pursuant to or within the
meaning of any Bankruptcy Law: 
  
 (A) commences
a voluntary case, 
  
 (B) consents to the entry
of an order for relief against it in an involuntary case, 
  
 (C) consents to the appointment of a Custodian of it or for all or substantially all of its property, or 
  
 (D) makes a general assignment for the benefit of its creditors; or 
  
 (5) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

 
 (A) is for relief against Lockheed Martin or the Company
in an involuntary case, 
  
 (B) appoints a
Custodian of Lockheed Martin or the Company or for all or substantially all of the property of Lockheed Martin or the Company, or 
  
 (C) orders the winding up or liquidation of Lockheed Martin or the Company, 
  
 and the order or decree remains unstayed and in effect for 90 days.

  
 A default under clause (3) is not an Event of
Default with respect to the Notes until the Trustee or the holders of at least 25% in principal amount of the Notes notify the Company of the default and the Company does not cure the 
  

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 default within 90 days after receipt of the notice. The notice must (i) specify the default, (ii) demand
that it be remedied and (iii) state that the notice is a “Notice of Default.” Subject to Sections 7.1 and 7.2, the Trustee shall not be charged with actual knowledge of any default unless written notice thereof shall have been given to the
Trustee by the Company, the Paying Agent, the Holder of a Note or an agent of such Holder. 
  
 SECTION 6.2. ACCELERATION. 
  
 If an Event of Default with respect to the Notes occurs and is continuing, the Trustee by notice to the Company or the Holders of at least 25% in principal amount of the Notes by notice to the Company and the Trustee,
may declare the principal of and accrued interest and Liquidated Damages, if any, on all the Notes to be due and payable immediately. Upon such a declaration such principal and interest, if any, and Liquidated Damages, if any, shall be due and
payable immediately. Subject to the provisions of this Indenture relating to the duties of the Trustee, the Trustee shall be under no obligation to exercise any of its rights or powers under this Indenture at the request, order or direction of any
of the Holders, unless such Holders have offered to the Trustee security or indemnity satisfactory to it. At any time after such a declaration of acceleration and before a judgment or decree for payment of the money due has been obtained, the
Holders of a majority in principal amount of the then outstanding Notes by written notice to the Company and the Trustee may rescind on behalf of all Holders an acceleration (and upon such rescission any Event of Default caused by such acceleration
shall be deemed cured) with respect to the Notes and its consequences if all existing Events of Default with respect to the Notes have been cured or waived, if the rescission would not conflict with any judgment or decree, and if all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, and all other amounts due to the Trustee and any predecessor Trustee under Section 7.7 have been made.

  
 SECTION 6.3. OTHER REMEDIES. 
  
 If an Event of Default with respect to the Notes occurs and
is continuing, the Trustee may pursue any available remedy to collect the payment of principal of, or interest or Liquidated Damages, if any, on the Notes or to enforce the performance of any provision of the Notes, the Guarantee or this Indenture.

  
 The Trustee may maintain a proceeding even if
it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by law. 
  

 -15- 

 SECTION 6.4. WAIVER OF PAST DEFAULTS. 
  
 Subject to Section 9.2, the Holders of a majority in
principal amount of the outstanding Notes by written notice to the Company and the Trustee may waive an existing Default or Event of Default with respect to the Notes and its consequences. When a Default or Event of Default is waived, it is cured
and stops continuing, but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereto. 
  
 SECTION 6.5. CONTROL BY MAJORITY. 
  
 Subject to all provisions of this Indenture and applicable law, the Holders of a majority in principal amount of the Notes at the time
outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on it. However, the Trustee may refuse to follow any direction that conflicts with
law or this Indenture, or that the Trustee determines may be unduly prejudicial to the rights of other Holders not joining in the giving of such direction or may involve the Trustee in personal liability and the Trustee may take any other action it
deems proper that is not inconsistent with any such direction received from Holders of the Notes. 
  
 SECTION 6.6. LIMITATION ON SUITS. 
  
 A Holder may pursue any remedy with respect to this Indenture or the Notes only if: 
  
 (1) the Holder gives to the Trustee written notice stating
that an Event of Default with respect to the Notes is continuing; 
  
 (2) the Holders of at least 25% in aggregate principal amount of the then oustanding Notes make a written request to the Trustee to pursue the remedy; 
  
 (3) such Holder or Holders offer and, if requested, provide to the Trustee indemnity satisfactory to the
Trustee against any loss, costs, liability or expense; 
  
 (4) the Trustee does not comply with the request within 60 days after receipt of the request and the offer and, if requested, the provision of indemnity; and 
  
 (5) during such 60-day period the Holders of a majority in aggregate principal amount of the then
outstanding Notes do not give the Trustee a direction inconsistent with the request. 
  

 -16- 

 For purposes of this Section 6.6 of this Indenture, the Trustee shall comply with TIA
Section 316(a) in making the determination of whether the Holders of the required aggregate principal amount of outstanding notes have concurred in any request or direction to be Trustee to pursue any remedy available to the Trustee or the Holders
with respect to this Indenture or the Notes or otherwise under the law. 
  
 A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over any other Holder. 
  
 SECTION 6.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT. 
  
 Notwithstanding any other provision of this Indenture, except as permitted by Section 9.2 hereof, the right
of any Holder of a Note to receive payment of the principal of, and premium, interest and Liquidated Damages, if any, on, the Notes after the due date expressed in the Notes or to bring suit for the enforcement of any such payment on or after such
date, shall not be impaired or affected without the consent of the Holder. 
  
 SECTION 6.8. COLLECTION SUIT BY TRUSTEE. 
  
 If an Event of Default in payment of interest or principal specified in Section 6.1(1) or (2) occurs and is continuing, subject to
Sections 6.2 and 6.4 the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of, and premium, interest and Liquidated Damages, if any, remaining unpaid on the Notes
and, to the extent lawful, interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

  
 SECTION 6.9. TRUSTEE MAY FILE PROOFS OF CLAIM.

  
 The Trustee is authorized to file such
proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company (or any other obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect, receive and distribute any money
or other property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7
hereof. To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and 
  

 -17- 

 any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding,
shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however that the Trustee may,
on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and may be a member of the creditor’s committee. 
  
 SECTION 6.10. PRIORITIES. 
  
 If the Trustee collects any money pursuant to this Article with respect to the Notes, it shall pay out the money in the following order:

  
 First: to the Trustee, its agents and
attorneys for amounts due under Section 7.7 hereof, including payment of all compensation, expense and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection (including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel); 
  
 Second: to Holders for amounts due and unpaid on the Notes for principal, interest, if any, and Liquidated Damages, if any, ratably, without preference or priority of any kind, according to the amounts due and payable
on the Notes for principal and interest, if any, respectively; and 
  
 Third: to the Company. 
  
 The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section. 
  
 SECTION 6.11. UNDERTAKING FOR COSTS. 
  
 In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section does not 
  

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 apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more
than 10% in aggregate principal amount of the then outstanding Notes.” 
  
 SECTION 5.5 Amendments to Article VII. 
  
 The first sentence of Section 7.3 of the Original Indenture is hereby amended and restated to read in its entirety as follows: 
  

“The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the
Company, the Guarantor or any Affiliate of the Company or the Guarantor with the same rights it would have if it were not Trustee.” 
  
 SECTION 5.6 Amendments to Article VIII. 
  
 Section 8.3 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
  
 “Upon the Company’s exercise under Section 8.1
hereof of the option applicable to this Section 8.3, subject to the satisfaction of the applicable conditions set forth in Section 8.4 hereof, the Company and the Guarantor shall be released from their respective obligations, if any, under Sections
4.3, 4.4, 4.5, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.17 and 4.19 hereof and Article V hereof, and the Guarantor shall be released from its obligations under Article X hereof, in each case on and after the date the conditions set forth
below are satisfied (hereinafter, “Covenant Defeasance”), and the Notes and the Guarantee shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders
(and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company and the Guarantor may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any
such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply
shall not constitute a Default or an Event of Default under Section 6.1 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Company’s exercise under Section
8.1 hereof of the option applicable to this Section 8.3, subject to the satisfaction of the applicable conditions set forth in Section 8.4 hereof, (x) Section 6.1(3) hereof shall not constitute an Event of Default and (y) Sections 6.1(4) and 6.1(5)
hereof shall not constitute an Event of Default to the extent they occur after the 91st day following the occurrence
of the Company’s exercise of Covenant Defeasance; provided, however that for all other purposes as set forth herein, such Covenant Defeasance provisions shall be effective.” 
  

 -19- 

 SECTION 5.7 Amendments to Article IX. 
  
 (a) Section 9.1(d) of the Original Indenture is hereby amended and restated
to read in its entirety as follows: 
  
 “(d)
to provide for the release or assumption of the Guarantee in compliance with this Indenture;”. 
  
 (b) Clause (a) of the third paragraph of Section 9.2 of the Original Indenture is hereby amended and restated to read in its entirety as follows:

  
 “(a) (i) change the Stated Maturity on
any Note, (ii) reduce the principal amount thereof or the rate (or extend the time for payment) of interest thereon or any premium payable upon the redemption thereof at the Company’s option, (iii) change the coin or currency in which any Note
or any premium or the interest or thereon is payable, (iv) impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption at the Company’s option, on or after
the Redemption Date), or (v) alter the provisions (including the defined terms used therein) regarding the Company’s right to redeem the Notes as a right, in each case in a manner adverse to the Holders, or”. 
  
 SECTION 5.8 Amendments to Article X. Article X of the Original
Indenture is hereby amended and restated to read in its entirety as follows: 
  
 “ARTICLE X 
 GUARANTEE 
  
 SECTION 10.1 GUARANTEE 
  
 By its execution hereof, Lockheed Martin irrevocably and unconditionally guarantees (i) the due and punctual payment of the
principal of, premium and Liquidated Damages, if any, and interest on the Notes, whether at maturity, by acceleration, call for redemption or otherwise, the due and punctual payment of interest on the overdue principal and premium, if any, and (to
the extent permitted by law) interest on any interest on the Notes, and payment of expenses and all other payment Obligations of the Company, to the Holders or the Trustee in accordance with Article X of the Original Indenture, and (ii) in case of
any extension of time of payment or renewal of any Notes or any such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration, call for redemption or otherwise (collectively, the “Guarantee Obligations”). 
  
 Lockheed Martin hereby agrees that its obligations hereunder shall be as if it were the principal debtor and not merely surety and shall
be absolute and 
  

 -20- 

 unconditional, irrespective of, and shall be unaffected by, any invalidity, irregularity or
unenforceability of any such Note, the Original Indenture or the First Supplemental Indenture, any failure to enforce the provisions of any such Note, the Original Indenture or the First Supplemental Indenture, any waiver, modification or indulgence
granted to the Company with respect thereto, by the Holder of such Note or the Trustee, or any other circumstances that otherwise may constitute a legal or equitable discharge or defense of a surety or guarantor; provided that, notwithstanding the
foregoing, no such waiver, modification, indulgence or circumstance shall, without the consent of Lockheed Martin, increase the principal amount of the Notes or the interest rate thereon or increase any premium payable upon redemption thereof.
Lockheed Martin hereby agrees that its Guarantee Obligations shall be enforceable without any demand, suit or proceeding first against the Company. Lockheed Martin hereby waives diligence, presentment, demand of payment, filing of claims with a
court in the event of a merger or bankruptcy of the Company, any right to require a proceeding first against the Company, protest or notice with respect to the indebtedness guaranteed hereby and all demands whatsoever and covenants that this
Guarantee will not be discharged as to any such Note except in accordance with Section 9.2 of the Indenture or by payment in full of the Guarantee Obligations. 
  

Lockheed Martin agrees that a notation of its Guarantee in the form set forth below shall be endorsed on each Note authenticated and
delivered by the Trustee after the date of the First Supplemental Indenture and that the First Supplemental Indenture shall be executed on behalf of Lockheed Martin by an Officer of Lockheed Martin: 
  
 “Lockheed Martin Corporation has guaranteed the due and punctual
payment of the principal of, premium and Liquidated Damages, if any, and interest on this Note, whether at maturity, by acceleration, call for redemption or otherwise, the due and punctual payment of interest on the overdue principal and premium, if
any, and (to the extent permitted by law) interest on any interest on this Note, and payment of expenses and all other payment Obligations of the Company, to the Holders or the Trustee in accordance with Article X of the Indenture, and (ii) in case
of any extension of time of payment or renewal of any Notes or any such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration, call for redemption or otherwise.” 
  
 Lockheed Martin agrees that its Guarantee set forth in this Article X shall remain in full force and effect and apply to all the Notes notwithstanding any failure to endorse on each Note a notation of its Guarantee. 
  
 If an Officer whose facsimile signature is on a Note or a
notation of Guarantee no longer holds that office at the time the Trustee authenticates the Note on which the Guarantee is endorsed, the Guarantee shall be valid nevertheless. 
  

 -21- 

 The delivery of any Note by the Trustee, after the authentication thereof hereunder,
shall constitute due delivery of the Guarantees set forth in this Indenture on behalf of the Guarantor. 
  
 SECTION 10.2 LIMITATION OF LOCKHEED MARTIN’S LIABILITY; CERTAIN BANKRUPTCY EVENTS 
  
 (a) Lockheed Martin, and by its acceptance hereof each
Holder, hereby confirms that it is the intention of all such parties that the Guarantee Obligations of Lockheed Martin pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law. To effectuate the foregoing intention, the Holders and Lockheed Martin hereby irrevocably agree that the Guarantee Obligations of Lockheed Martin
under this Article X shall be limited to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities of Lockheed Martin, result in the Guarantee Obligations of Lockheed Martin under the Guarantee not constituting a
fraudulent transfer or conveyance. 
  
 (b)
Lockheed Martin hereby covenants and agrees, to the fullest extent that it may do so under applicable law, that in the event of the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company, Lockheed Martin shall not file (or
join in any filing of), or otherwise seek to participate in the filing of, any motion or request seeking to stay or to prohibit (even temporarily) execution on the Guarantee and hereby waives and agrees, to the fullest extent that it may do so under
applicable law, not to take the benefit of any such stay of execution, whether under Section 362 or 105 of the Bankruptcy Law or otherwise. 
  
 SECTION 10.3 APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE GUARANTORS 
  
 (a) For purposes of any provision of this Indenture which provides for the delivery by any Guarantor of an
Officers’ Certificate and/or an Opinion of Counsel, the definitions of such terms in Section 1.1 hereof shall apply to such Guarantor as if references therein to the Company were references to such Guarantor. 
  
 (b) Any request, direction, order or demand which by any
provision of this Indenture is to be made by any Guarantor, shall be sufficient if evidenced as described in Section 12.2 hereof as if references therein to the Company were references to such Guarantor. 
  
 (c) Any notice or communication which by any provision of
this Indenture is required or permitted to be given or served by the Trustee or by the holders of Notes to or on any Guarantor may be given or served as described in Section 12.2 hereof as if references therein to the Company were references to such
Guarantor. 
  

 -22- 

 (d) Upon any demand, request or application by any Guarantor to the Trustee to take any
action under this Indenture, such Guarantor shall furnish to the Trustee such certificates and opinions as are required in Section 12.4 hereof as if all references therein to the Company were references to such Guarantor. 
  

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 SECTION 5.9 Amendments to
Article XI. Article XI of the Original Indenture is hereby amended and restated to read in its entirety as follows: 
  
 “ARTICLE XI 
 SUBORDINATION

  
 SECTION 11.1 NOTES SUBORDINATED TO SENIOR DEBT

  
 The Company, and each Holder by its
acceptance of Notes, agree that (a) the payment of the principal of, premium, if any, and interest (and Liquidated Damages, if any) on the Notes and (b) any other payment in respect of the Notes, including on account of the acquisition or redemption
of the Notes by the Company is subordinated, to the extent and in the manner provided in this Article XI, to the prior payment in full in cash of all Senior Debt of the Company and that these subordination provisions are for the benefit of the
holders of Senior Debt. 
  

 -24- 

 This Article XI shall constitute a continuing offer to all Persons who, in reliance upon
such provisions, become holders of, or continue to hold, Senior Debt, and such provisions are made for the benefit of the holders of Senior Debt and such holders are made obligees hereunder and any one or more of them may enforce such provisions.

  
 SECTION 11.2 NO PAYMENT ON NOTES IN CERTAIN CIRCUMSTANCES

  
 (a) No payment (by set-off or otherwise)
may be made on account of any Obligation in respect of the Notes, including the principal of, premium, if any, or interest (or Liquidated Damages, if any) on the Notes, or on account of the redemption provisions of the Notes (including any
repurchases of Notes), for cash or property (other than Junior Securities): (i) upon the maturity of the Company’s Senior Debt by lapse of time, acceleration (unless waived) or otherwise, unless and until all principal of, premium, if any, and
the interest and other amounts on such Senior Debt are first paid in full in cash or Cash Equivalents (or such payment is duly provided) or otherwise to the extent holders accept satisfaction of amounts due by settlement in other than cash or Cash
Equivalents; or (ii) in the event of default in the payment of any principal of, premium, if any, or interest or other amounts on the Company’s Senior Debt when such Senior Debt becomes due and payable, whether at maturity or at a date fixed
for prepayment or by declaration or otherwise (a “Payment Default”), unless and until such Payment Default has been cured or waived or otherwise has ceased to exist. 
  
 (b) Upon (i) the happening of an event of default other than a Payment Default that permits the holders of
Senior Debt to declare such Senior Debt to be due and payable and (ii) written notice of such event of default given to the Company and the Trustee by (a) the representative under the Credit Agreement or (b) at any time after the Credit Agreement is
no longer in full force and effect, the holders of an aggregate of at least $25.0 million principal amount outstanding of any other Senior Debt or their representative (a “Payment Notice”), then, unless and until such event of
default has been cured or waived or otherwise has ceased to exist, no payment (by set-off or otherwise) may be made by or on the behalf of the Company on account of any Obligation in respect of the Notes (other than payments by Lockheed Martin
pursuant to the Guarantee), including the principal of, premium, if any, or interest on the Notes, (including any repurchases of any of the Notes), or on account of the redemption provisions of the Notes (or Liquidated Damages), in any such case,
other than payments made with Junior Securities. Notwithstanding the foregoing, unless the Senior Debt in respect of which such event of default exists has been declared due and payable in its entirety within 179 days after the Payment Notice is
delivered as set forth above (the “Payment Blockage Period”) (and such declaration has not been rescinded or waived), at the end of the Payment Blockage Period, the Company shall be required to pay all sums not previously paid to
the Holders of the Notes during the Payment Blockage Period due to the foregoing prohibitions and to resume all other payments as and when due on the Notes. 
  

 -25- 

 Any number of Payment Notices may be given; provided, however, that: (i) not more
than one Payment Notice shall be given within a period of any 360 consecutive days, and (ii) no non-payment default that existed upon the date of such Payment Notice or the commencement of such Payment Blockage Period (whether or not such event of
default is on the same issue of Senior Debt) shall be made the basis for the commencement of any other Payment Blockage Period (for purposes of this provision, any subsequent action, or any subsequent breach of any financial covenant for a period
commencing after the expiration of such Payment Blockage Period that, in either case, would give rise to a new event of default, even though it is an event that would also have been a separate breach pursuant to any provision under which a prior
event of default previously existed, shall constitute a new event of default for this purpose). 
  
 (c) In furtherance of the provisions of Section 11.1, in the event that, notwithstanding the foregoing provisions of this Section 11.2 or
Section 11.3, any payment or distribution of assets of the Company (other than Junior Securities) shall be received by the Trustee or the Holders at a time when such payment or distribution is prohibited by the foregoing provisions of this Section
11.2, such payment or distribution shall be held in trust for the benefit of the holders of such Senior Debt, and shall be paid or delivered by the Trustee or such Holders, as the case may be, to the holders of such Senior Debt remaining unpaid or
unprovided for or to their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any of such Senior Debt may have been issued, ratably according to the aggregate principal
amounts remaining unpaid on account of such Senior Debt held or represented by each, for application to the payment of all such Senior Debt remaining unpaid, to the extent necessary to pay or to provide for the payment of all such Senior Debt in
full in cash or Cash Equivalents or otherwise to the extent holders accept satisfaction of amounts due by settlement in other than cash or Cash Equivalents after giving effect to any concurrent payment or distribution to the holders of such Senior
Debt. 
  
 SECTION 11.3 NOTES SUBORDINATED TO PRIOR PAYMENT OF
ALL SENIOR DEBT ON DISSOLUTION, LIQUIDATION OR REORGANIZATION 
  
 Upon any distribution of assets of the Company upon any dissolution, winding up, total or partial liquidation or reorganization of the Company, whether voluntary or involuntary, in bankruptcy, insolvency, receivership
or a similar proceeding or upon assignment for the benefit of creditors or any marshaling of assets or liabilities: 
  
 (a) the holders of all of the Company’s Senior Debt will first be entitled to receive payment in full in cash or Cash Equivalents (or
have such payment duly provided for) or otherwise to the extent holders accept satisfaction of amounts due 
  

 -26- 

 by settlement in other than cash or Cash Equivalents before the Holders are entitled to receive any
payment on account of any Obligation in respect of the Notes, including the principal of, premium, if any, and interest on the Notes (or Liquidated Damages) (other than Junior Securities); and 
  
 (b) any payment or distribution of the Company’s assets
of any kind or character from any source, whether in cash, property or securities (other than Junior Securities) to which the Holders or the Trustee on behalf of the Holders would be entitled (by set-off or otherwise), except for the subordination
provisions contained in the Indenture, will be paid by the liquidating trustee or agent or other Person making such a payment or distribution directly to the holders of such Senior Debt or their representative to the extent necessary to make payment
in full (or have such payment duly provided for) on all such Senior Debt remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior Debt. 
  
 SECTION 11.4 HOLDERS TO BE SUBROGATED TO RIGHTS OF HOLDERS OF SENIOR DEBT

  
 Subject to the payment in full in cash of
all Senior Debt of the Company as provided herein, the Holders of Notes shall be subrogated to the rights of the holders of such Senior Debt to receive payments or distributions of assets of the Company applicable to the Senior Debt until all
amounts owing on the Notes shall be paid in full, and for the purpose of such subrogation no such payments or distributions to the holders of such Senior Debt by or on behalf of the Company, or by or on behalf of the Holders by virtue of this
Article XI, which otherwise would have been made to the Holders shall, as between the Company and the Holders, be deemed to be payment by the Company or on account of such Senior Debt, it being understood that the provisions of this Article XI are
and are intended solely for the purpose of defining the relative rights of the Holders, on the one hand, and the holders of such Senior Debt, on the other hand. 
  

SECTION 11.5 RELATIVE RIGHTS 
  
 This Article XI defines the relative rights of Holders and holders of Senior Debt. Nothing in this Indenture shall: (1) impair, as between
the Company and Holders, the obligation of the Company or the obligation of the Guarantor, which is absolute and unconditional, to pay, when due, principal of, premium, if any, and interest on or (if applicable, Liquidated Damages on) the Notes in
accordance with their terms; (2) affect the relative rights of Holders and creditors of the Company other than their rights in relation to holders of Senior Debt; or (3) prevent the Trustee or any Holder from exercising its available remedies upon a
Default or Event of Default, subject to the rights of holders and owners of Senior Debt to receive distributions and payments otherwise payable to Holders. 
  

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 SECTION 11.6 TRUSTEE ENTITLED TO ASSUME PAYMENTS NOT PROHIBITED IN ABSENCE OF NOTICE 

 
 The Trustee shall not at any time be charged with
knowledge of the existence of any facts which would prohibit the making of any payment to or by the Trustee unless and until a Responsible Officer of the Trustee or any Paying Agent shall have received, no later than three Business Days prior to
such payment written notice thereof from the Company or from one or more holders of Senior Debt or from any representative therefor and, prior to the receipt of any such written notice, the Trustee, subject to the provisions of Sections 7.1 and 7.2,
shall be entitled in all respects conclusively to assume that no such fact exists. 
  
 Notwithstanding anything to the contrary in this Article XI or elsewhere in this Indenture or in the Notes, upon any distribution of
assets of the Company referred to in this Article XI, the Trustee, subject to the provisions of Sections 7.1 and 7.2, and the Holders shall be entitled to conclusively rely upon any order or decree made by any court of competent jurisdiction in
which such dissolution, winding up, liquidation or reorganization proceedings are pending, or a certificate of the liquidating trustee or agent or other Person making any distribution to the Trustee or to the Holders for the purpose of ascertaining
the Persons entitled to participate in such distribution, the holders of the Senior Debt and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article XI so long as such court has been apprised of the provisions of, or the order, decree or certificate makes reference to, the provisions of this Article XI. 
  
 SECTION 11.7 APPLICATION BY TRUSTEE OF ASSETS DEPOSITED WITH IT 
  
 Amounts deposited in trust with the Trustee pursuant to and
in accordance with Article VIII shall be for the sole benefit of Holders and, to the extent the making of such deposit by the Company shall (i) not be in contravention of any term or provision of the Credit Agreement and (ii) be allocated for the
payment of the Notes, shall not be subject to the subordination provisions of this Article XI. Otherwise, any deposit of assets with the Trustee or the Agent (whether or not in trust) for the payment of principal of or interest on any Notes shall be
subject to the provisions of Sections 11.1, 11.2, 11.3 and 11.4; provided, that, if prior to one Business Day preceding the date on which by the terms of this Indenture any such assets may become distributable for any purpose (including
without limitation, the payment of either principal of or interest on any Note) the Trustee or such Paying Agent shall not have received with respect to such assets the written notice provided for in Section 11.6, then the Trustee or such Paying
Agent shall have full power and authority to receive such assets and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such date.

  

 -28- 

 SECTION 11.8 SUBORDINATION RIGHTS NOT IMPAIRED BY ACTS OR OMISSIONS OF THE COMPANY OR HOLDERS OF
SENIOR DEBT 
  
 No right of any present or
future holders of any Senior Debt to enforce the subordination provisions contained in this Article XI shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in
good faith, by any such holder, or by any noncompliance by the Company with the terms of this Indenture, regardless of any knowledge thereof which any such holder may have or be otherwise charged with. The holders of Senior Debt may extend, renew,
modify or amend the terms of the Senior Debt or any security therefor and release, sell or exchange such security and otherwise deal freely with the Company, all without affecting the liabilities and obligations of the parties to this Indenture or
the Holders. The subordination provisions contained in this Indenture are for the benefit of the holders from time to time of Senior Debt and may not be rescinded, cancelled, amended or modified in any way other than any amendment or modification
that is consented to by each holder of Senior Debt that would be adversely affected thereby. The subordination provisions hereof shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Senior
Debt is rescinded or must otherwise be returned by any holder of the Senior Debt upon the insolvency, bankruptcy, or reorganization of the Company, or otherwise, all as though such payment has not been made. 
  
 SECTION 11.9 HOLDERS AUTHORIZE TRUSTEE TO EFFECTUATE SUBORDINATION OF
NOTES 
  
 Each Holder of the Notes by his
acceptance thereof authorizes and expressly directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination provisions contained in this Article XI and to protect the rights of the Holders
pursuant to this Indenture, and appoints the Trustee his attorney-in-fact for such purpose, including, in the event of any dissolution, winding up, liquidation or reorganization of the Company (whether in bankruptcy, insolvency or receivership
proceedings or upon an assignment for the benefit of creditors or any other marshalling of assets and liabilities of the Company), the immediate filing of a claim for the unpaid balance of his Notes in the form required in said proceedings and cause
said claim to be approved. In the event of any liquidation or reorganization of the Company in bankruptcy, insolvency, receivership or similar proceeding, if the Holders of the Notes (or the Trustee on their behalf) have not filed any claim, proof
of claim, or other instrument of similar character necessary to enforce the obligations of the Company in respect of the Notes at least thirty (30) days before the expiration of the time to file the same, then in such event, but only in such event,
the holders of the Senior Debt or a representative on their behalf may, as an attorney-in-fact for such Holders, file any claim, proof of claim, or other instrument of similar character on behalf of such Holders. Nothing herein contained shall be
deemed to authorize the Trustee or the holders of Senior Debt or their representative to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the
rights of any Holder thereof, or to authorize the Trustee or the holders of Senior Debt or their representative to vote in respect of the claim of any Holder in any such proceeding. 
  

 -29- 

 SECTION 11.10 RIGHT OF TRUSTEE TO HOLD SENIOR DEBT 
  
 The Trustee shall be entitled to all of the rights set forth
in this Article XI in respect of any Senior Debt at any time held by it to the same extent as any other holder of Senior Debt, and nothing in this Indenture shall be construed to deprive the Trustee of any of its rights as such holder. 

 
 Nothing in this Article shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 7.7. 
  
 SECTION 11.11 ARTICLE XI NOT TO PREVENT EVENTS OF DEFAULT 
  
 The failure to make a payment on account of principal of, premium, if any, or interest (or Liquidated Damages, if any) on the Notes by reason of any provision of this Article XI shall not be construed as preventing
the occurrence of a Default or an Event of Default under Section 6.1 or in any way limit the rights of the Trustee or any Holder to pursue any other rights or remedies with respect to the Notes. 
  
 SECTION 11.12 NO FIDUCIARY DUTY OF TRUSTEE TO HOLDERS OF SENIOR DEBT

  
 The Trustee shall not be deemed to owe
any fiduciary duty to the holders of Senior Debt, and shall not be liable to any such holders if it shall in good faith mistakenly pay over or distribute to the Holders of Notes or the Company or any other Person, cash, property or securities to
which any holders of Senior Debt shall be entitled by virtue of this Article XI or otherwise. With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe only such of its covenants or obligations as are specifically
set forth in this Article and no implied covenants or obligations with respect to holders of Senior Debt shall be read into this Indenture against the Trustee. Nothing in this Section 11.12 shall affect the obligation of any other such Person to
hold such payment for the benefit of, and to pay such payment over to, the holders of Senior Debt or their representative. In the event of any conflict between the fiduciary duty of the Trustee to the Holders of Notes and to the holders of Senior
Debt, the Trustee is expressly authorized to resolve such conflict in favor of the Holders.” 
  
 SECTION 5.10 Amendments to Article XII. The first paragraph of Section 12.2 of the Original Indenture is hereby amended and restated to read in its
entirety as follows: 
  
 “Any notice or
communication by the Company, the Guarantor or the Trustee to the other is duly given if in writing and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopier or overnight air courier
guaranteeing next day delivery, to the others’ address: 
  

	 If to the Company
 or the Guarantor:
	  	 
		
	 	  	 The Titan Corporation
 3033 Science Park
Road
 San Diego, CA 92121
 Attention: Nicholas J. Costanza,
Senior Vice President, General
Counsel and Secretary
 Facsimile: (858) 552-9477

		
	 	  	and
		
	 	  	 Lockheed Martin Corporation
 6801
Rockledge Drive
 Bethesda, Maryland 20817
 Attention:
Treasurer
 Facsimile: (301) 897-6651

		
	 with copies (which
 shall not constitute
 notice) to:
	  	 
	 	  	 Cooley Godward LLP
 4401 Eastgate
Mall
 San Diego, CA 92121
 Attention: Barbara L. Borden,
Esq.
 Facsimile: (858) 550-6420

		
	 	  	and
		
	 	  	 Hogan & Hartson L.L.P.
 555
13th Street, N.W.
 Washington, D.C. 20004
 Attention: Mark E. Mazo, Esq.
 Facsimile: (202) 637-5910

		
	 	  	and
		
	 	  	 King & Spalding LLP
 1730 Pennsylvania
Avenue, N.W.
 Washington, D.C. 20006
 Attention: Glenn C.
Campbell, Esq.
 Facsimile: (202) 626-3737

		
	 If to the Trustee:
	  	 
		
	 	  	 Deutsche Bank Trust Company Americas
 60
Wall Street, 27th Floor
 MS NYC 60-2710
 New York, NY 10005
 Attention: Corporate
Trust & Agency Services”

  
 SECTION 5.11
Amendment to Exhibits to the Original Indenture. 
  
 (a)
Exhibit A to the Original Indenture is hereby amended and restated in its entirety to read as set forth in Exhibit A hereto. 
  
 (b) Exhibit E to the Original Indenture is hereby deleted in its entirety. 
  

 -30- 

 SECTION 6. 
  
 MISCELLANEOUS 
  
 SECTION 6.1 Execution as Supplemental Indenture. This First Supplemental Indenture is executed and shall be construed as an indenture supplemental
to the Original Indenture and, as provided in the Original Indenture, this First Supplemental Indenture forms a part thereof. Except as herein expressly otherwise defined, the use of the terms and expressions herein is in accordance with the
definitions, uses and constructions contained in the Original Indenture. 
  
 SECTION 6.2 No Other Amendments. Except as expressly amended hereby, the Original Indenture shall continue in full force and effect in accordance with the provisions thereof. 
  
 SECTION 6.3 Provisions Binding on the Company’s Successors. All
the covenants, stipulations, promises and agreements contained in this First Supplemental Indenture made by the Company and Lockheed Martin shall bind its successors and assigns whether so expressed or not. 
  
 SECTION 6.4 Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS FIRST SUPPLEMENTAL INDENTURE, THE NOTES AND THE GUARANTEE, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(b).

  
 SECTION 6.5 Execution and Counterparts. This First
Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original but such counterparts shall together constitute but one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the date
first written above. 
  

	 THE TITAN CORPORATION

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 LMC LLC ONE, LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 -31- 

	 DEUTSCHE BANK TRUST COMPANY
 AMERICAS, as Trustee

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 LOCKHEED MARTIN CORPORATION,

	 as Guarantor

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 SUBSIDIARY GUARANTORS:

	
	 BTG, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 BTG TECHNOLOGY RESOURCES, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 BTG TECHNOLOGY SYSTEMS, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 -32- 

	 CAYENTA eUTILITY SOLUTIONS—
 eMUNICIPAL SOLUTIONS, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 CAYENTA OPERATING LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 CONCEPT AUTOMATION, INC. OF AMERICA

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 DATACENTRIC AUTOMATION CORPORATION

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 INTERNATIONAL SYSTEMS, LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 -33- 

	 LINKABIT WIRELESS LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 NATIONS, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 PROCOM SERVICES, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 STAC, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 TITAN AFRICA, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 -34- 

	 TITAN FACILITIES, INC. (formerly known as
 Delta Construction Management, Inc.)

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 TITAN SCAN TECHNOLOGIES
 CORPORATION

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 TITAN WIRELESS, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 TITAN WIRELESS AFRIPA HOLDINGS, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 UNIDYNE, LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 -35- 

 EXHIBIT A 
  

[FORM OF NOTE] 
  
 The Titan Corporation 
  
 8% [SERIES A] [SERIES B]1 SENIOR SUBORDINATED NOTE DUE 2011

  
 CUSIP:                     
  

	 No.                    
	 	$
                              

  
 The Titan Corporation,
a Delaware corporation (hereinafter called the “Company” which term includes any successors under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, the principal sum of
                     Dollars, on May 15, 2011. 
  
 Interest Payment Dates: May 15 and November 15, commencing November 15, 2003. 
  
 Record Dates: May 1 and November 1. 
  

Reference is made to the further provisions of this Note on the reverse side, which shall, for all purposes, have the same effect as if set forth at
this place. 
  
 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
  

	 	 	 	 	 The Titan Corporation
 a Delaware corporation

					
	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 	 	 Name:
 Title:

					
	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 	 	 Name:
 Title:

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Notes
described in the within-mentioned Indenture. 
  

	 	 	 	 	 Deutsche Bank Trust Company Americas,
 as Trustee

					
	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 	 	 Authorized Signatory

  
 Dated:                      
  

	1	Series A should be replaced with Series B in the Exchange Notes. 

  

 A-1 

 (Back of Note) 
  
 8% [Series A] [Series B]2 Senior Subordinated Notes due 2011 
  
 [THIS GLOBAL NOTE IS HELD
BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.]3 
  
 [UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]4 
  
 Capitalized terms used herein shall have the
meanings assigned to them in the Indenture (as defined below) unless otherwise indicated. 
  
 1. Interest. the Company promises to pay interest on the principal amount of this Note at 8% per annum from the Issue Date until maturity and shall pay the Liquidated Damages, if any, payable pursuant to
Section 6 of the Registration Rights Agreement referred to below. The Company shall pay interest (and Liquidated Damages, if any) semi-annually on May 15 and November 15 of each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each an “Interest Payment Date”). The first Interest Payment Date shall be November 15, 2003. Interest on the Notes shall accrue from the most recent date to which 

	2	Series A should be replaced with Series B in the Exchange Notes. 

	3	To be included only on Global Notes deposited with the Depositary. 

	4	To be included only on Global Notes deposited with the Depositary. 

  

 A-2 

 interest has been paid or, if no interest has been paid, from the Issue Date; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a Record Date (defined below) referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding
Interest Payment Date. The Company shall pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the rate then in effect; it shall pay
interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (and Liquidated Damages, if any) (without regard to any applicable grace periods) from time to time on demand at the same
rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 
  
 2. Method of Payment. The Company shall pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders of Notes at
the close of business on the May 1 or November 1 next preceding the Interest Payment Date (each a “Record Date”), even if such Notes are cancelled after such Record Date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest. The Notes shall be payable as to principal, interest, premium, if any, at the office or agency of the Company maintained within the City and State of New York for such purpose, or, at
the option of the Company, payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately available funds to an account within
the United States shall be required with respect to principal of and interest, premium, if any, on all Global Notes. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts. 
  
 3. Paying Agent and
Registrar. Initially, Deutsche Bank Trust Company Americas, the Trustee under the Indenture, shall act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its
Subsidiaries may act in any such capacity. 
  
 4.
Indenture. The Company issued the Notes under an Indenture dated as of May 15, 2003 (the “Original Indenture”), as amended by the First Supplemental Indenture dated as of
                , 2004 (the “First Supplemental Indenture”) (the Original Indenture, as so amended, the “Indenture”), by and among the
Company, the Guarantors party thereto and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. 
  
 5. Optional Redemption. 
  
 (a) Except as set forth in clause (b) of this Section and clause (b) of Section 3.7 of the Indenture, the Company shall not have the option to redeem the
Notes pursuant to this Section or Section 3.7 of the Indenture prior to May 15, 2007. The Notes shall be redeemable for cash at the option of the Company, in whole or in part, at any time on or after May 15, 2007, upon not less than 30 days nor more
than 60 days prior notice mailed by first class mail to each 
  

 A-3 

 Holder at its last registered address, at the following redemption prices (expressed as percentages of the principal
amount) if redeemed during the 12-month period commencing May 15 of the years indicated below, in each case together with accrued and unpaid interest (and Liquidated Damages, if any) thereon to the date of redemption of the Notes (the
“Redemption Date”): 
  

	 Year

	  	Percentage

	 
	 2007
	  	104.0	%
	 2008
	  	102.0	%
	 2009 and thereafter
	  	100.0	%

  
 (b) Notwithstanding
the provisions of clause (a) of this Section or clause (a) of Section 3.7 of the Indenture, at any time on or prior to May 15, 2006, upon one or more Public Equity Offerings of the Company’s common stock for cash, up to 35% of the aggregate
principal amount of the Notes issued pursuant to the Indenture may be redeemed at the Company’s option within 90 days of the closing of any such Public Equity Offering, on not less than 30 days, but not more than 60 days, notice to each Holder
of the Notes to be redeemed, with cash received by the Company from the Net Cash Proceeds of such Public Equity Offering, at a redemption price equal to 108% of principal, together with accrued and unpaid interest (and Liquidated Damages, if any)
thereon to the Redemption Date; provided, however, that immediately following each such redemption not less than 65% of the aggregate principal amount of the Notes originally issued pursuant to the Indenture on the Issue Date remain
outstanding. 
  
 (c) Notice of redemption shall be mailed by first
class mail at least 30 days but not more than 60 days prior to date fixed for redemption to the Holder of each Note to be redeemed to such Holder’s last address as then shown upon the register books of our registrar. Notes in denominations
larger than $1,000 may be redeemed in part but only in integral multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date, interest ceases to accrue on Notes or portions thereof called for
redemption unless the Company defaults in such payments due on the redemption date. 
  
 6. Mandatory Redemption. If the HIGH TIDES Redemption has not occurred by the Trigger Date, the Company shall, in accordance with the procedures set forth in Section 3.8 of the Indenture be required to redeem
(a “Mandatory Redemption”) all of the outstanding Notes, for a price equal to 101% of their principal amount, plus accrued and unpaid interest thereon through the redemption date (the “Mandatory Redemption Price”). The Mandatory
Redemption must occur no later than 10 days after the Trigger Date. Except for a Mandatory Redemption, the Company shall not, and the Guarantors shall not, be required to make mandatory redemption payments with respect to the Notes and the Notes
shall not have the benefit of any sinking fund. 
  

 A-4 

 7. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, it need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a
Record Date and the next succeeding Interest Payment Date. 
  
 8.
Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all purposes. 
  
 9. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture, the Notes or the Guarantee may be amended or supplemented with
the consent of the Holders of a majority in principal amount of the Notes then outstanding (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes), and, subject to
Sections 6.4 and 6.7 of the Indenture, any existing Default or Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if any, or interest on the Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of the Indenture, the Notes or the Guarantee may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes (including consents
obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes). Without the consent of any Holder of a Note, the Indenture, the Notes or the Guarantee may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s obligations to Holders of the Notes in case of a merger or consolidation, to provide for
additional Guarantees as set forth in the Indenture or for the release or assumption of Guarantee in compliance with the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not
adversely affect the rights under the Indenture of any such Holder, to comply with the provisions of the Depositary, Euroclear or Clearstream or the Trustee with respect to the provisions of the Indenture or the Notes relating to transfers and
exchanges of Notes or beneficial interests therein, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA or to provide for the issuance of additional Notes in accordance with the
limitations set forth in the Indenture. 
  
 10. Defaults and
Remedies. The Indenture provides that an Event of Default occurs with respect to the Notes if: 
  
 (1) the Company defaults in the payment of interest (or Liquidated Damages, if any) on any Notes when the same becomes due and payable and
the default continues for a period of 30 days; 
  

 A-5 

 (2) the Company defaults in the payment of the principal of, or premium, if any, on any
Notes when the same becomes due and payable at maturity, upon redemption or otherwise; 
  
 (3) the Company fails to comply with any of its other agreements in the Notes or this Indenture for the benefit of the Notes and the
default continues for the period and after the notice specified in this Section; 
  
 (4) Lockheed Martin or the Company pursuant to or within the meaning of any Bankruptcy Law: 
  
 (A) commences a voluntary case, 
  
 (B) consents to the entry of an order for relief against it
in an involuntary case, 
  
 (C) consents to the
appointment of a Custodian of it or for all or substantially all of its property, or 
  
 (D) makes a general assignment for the benefit of its creditors; or 
  
 (5) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

 
 (A) is for relief against Lockheed Martin or the Company
in an involuntary case, 
  
 (B) appoints a
Custodian of Lockheed Martin or the Company or for all or substantially all of the property of Lockheed Martin or the Company, or 
  
 (C) orders the winding up or liquidation of Lockheed Martin or the Company, 
  
 and the order or decree remains unstayed and in effect for 90 days. 
  
 Holders may not enforce the Indenture or the Notes except as provided in the
Indenture or in the TIA. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Notes. 
  
 If a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of Notes a notice in the
manner and to the extent provided by Section 313(c) of the TIA of the Default or Event of Default within 90 days after it occurs. 
  
 11. Subordination. The Notes are subordinated in right of payment, to the extent and in the manner provided in Article XI of the Indenture, to the
prior payment in full in cash of all Senior Debt. The Company and Lockheed Martin agree, and each Holder by accepting a Note consents and agrees, to the subordination provided in the Indenture and authorizes the Trustee to give it effect.

  

 A-6 

 12. Trustee Dealings with Company. The Trustee, in its individual or any other capacity, may
become the owner or pledgee of Notes and may otherwise deal with the Company, the Guarantor or any Affiliate of the Company or the Guarantor with the same rights it would have if it were not Trustee. 
  
 13. No Recourse Against Others. No past, present or future director,
officer, employee, incorporator or stockholder (direct or indirect) of the Company or the Guarantor (or any such successor entity), as such, shall have any liability for any Obligations of the Company or the Guarantor under the Notes, the Guarantee
or the Indenture or for any claim based on, in respect of, or by reason of, such Obligations or their creation, except in their capacity as an obligor or Guarantor of the Notes in accordance with the Indenture. Each Holder by accepting a Note waives
and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 
  
 14. Authentication. This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 

 
 15. Abbreviations. Customary abbreviations may be used in the name
of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act). 
  
 16. CUSIP Numbers. Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and/or ISIN numbers to be printed on the Notes and the Trustee shall use CUSIP and/or ISIN numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon, and any such
redemption shall not be affected by any defect in or omission of such numbers. 
  
 17. Governing Law. THE INDENTURE, THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAW AND RULES 327(b). 
  
 The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: 
  
 The Titan Corporation 
 3033 Science Park Road 
 San Diego, CA 92121 
 Attention: Nicholas J. Costanza, Senior Vice President, General
Counsel, and Secretary 
 (858) 552-9477 
  

 A-7 

 Assignment Form 
  
 To assign this Note, fill in the form below: (I) or (We) assign and transfer this Note to 
  

  
 (Insert assignee’s soc. sec. or tax I.D. no.) 
  

  

  

  

  
 (Print or type assignee’s name, address and zip code) 
  
 and irrevocably appoint
                                        
                                        
             to transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  

	 Date:
	 	  

	 	 	 	 
	 	 	 	 	 Your Signature:
	 	  

	 	 	 	 	 (Sign exactly as your name appears on the face of this Note)

  
 Signature Guarantee* 

 * NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following
recognized signature Guarantee Programs: (i) The Securities Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee
program acceptable to the Trustee. 
  

 A-8 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE5 
  
 The following exchanges of an interest in this Global Note for an interest in another Global Notes or for a Definitive Note, or exchanges of an interest
in another Global Note or Definitive Note for an interest in this Global Note, have been made: 
  

	 Date of Exchange

	  	 Amount of
 Decrease in
 Principal
 Amount of
 this Global
 Note

	  	 Principal
 Amount of
 this Global
 Note

	  	 Principal
 Amount of
 this Global
 Note
 Following
 Such
 Decrease (or
 Increase)

	  	 Signature
 of
 Authorized
 Officer of
 Trustee or
 Note
 Custodian

	5	This should be included only if the Note is issued in global form. 

  

 A-9 

 GUARANTEE 
  

Lockheed Martin Corporation irrevocably and unconditionally guarantees (i) the due and punctual payment of the principal of, premium, if any, and
interest on this Note, whether at maturity, by acceleration, call for redemption or otherwise, the due and punctual payment of interest on the overdue principal and premium and Liquidated Damages, if any, and (to the extent permitted by law)
interest on any interest on this Note, and payment of expenses and all other payment Obligations of the Company, to the Holders or the Trustee in accordance with Article X of the Original Indenture, and (ii) in case of any extension of time of
payment or renewal of any Notes or any such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration, call for
redemption or otherwise. 
  
 Lockheed Martin hereby agrees that
its obligations hereunder shall be as if it were the principal debtor and not merely surety and shall be absolute and unconditional, irrespective of, and shall be unaffected by, any invalidity, irregularity or unenforceability of any such Note or
the Original Indenture, any failure to enforce the provisions of any such Note, the Original Indenture or the First Supplemental Indenture, any waiver, modification or indulgence granted to the Company with respect thereto, by the Holder of such
Note or the Trustee, or any other circumstances that otherwise may constitute a legal or equitable discharge or defense of a surety or guarantor; provided that, notwithstanding the foregoing, no such waiver, modification, indulgence or circumstance
shall, without the consent of Lockheed Martin, increase the principal amount of the Notes or the interest rate thereon or increase any premium payable upon redemption thereof. Lockheed Martin hereby agrees that its Guarantee Obligations shall be
enforceable without any demand, suit or proceeding first against the Company. Lockheed Martin hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of a merger or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest or notice with respect to the indebtedness guaranteed hereby and all demands whatsoever and covenants that this Guarantee will not be discharged as to any such Note except in accordance with
Section 9.2 of the Indenture or by payment in full of the Guarantee Obligations. 
  
 The obligations of Lockheed Martin to the Holders and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article X of the Indenture and reference is hereby made to such Indenture
for the precise terms of this Guarantee. 
  
 THE TERMS OF ARTICLE
X OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 
  
 Capitalized terms used herein have the same meanings given in the Indenture unless otherwise indicated. 
  

 A-10 

 IN WITNESS WHEREOF, Lockheed Martin has caused this instrument to be duly executed. 
  
 Dated:             ,
200   
  

	 LOCKHEED MARTIN CORPORATION

		
	 By:
	 	  

	 	 	 Name:
 Title:

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is the Guarantee described
in the within-mentioned Indenture. 
  

	 	 	 	 	 	 	 Deutsche Bank Trust Company Americas, as Trustee

					
	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 	 	 Authorized Signatory

					
	 Dated:
	 	  

	 	 	 	 	 	 

  

 A-11<PAGE>

                                                          Confidential Treatment
                                                                    EXHIBIT 10.1

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO REGISTRANT'S APPLICATION OBJECTING TO
DISCLOSURE AND REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 406. THE OMITTED
PORTIONS HAVE BEEN MARKED WITH BRACKETS.

                              AMENDED AND RESTATED
                                CONTRACT OF SALE

     This Amended and Restated Contract of Sale ("Agreement") is entered into as
of November 7, 2003, by and between Chevron Phillips Chemical Company LP
("CPChem"), a Delaware limited partnership, and Radnor Chemical Corporation
("RCC"); StyroChem US., Ltd. ("SUS"); StyroChem Canada, Ltd ("SCL"); StyroChem
Finland Oy ("SCF"); WinCup Texas, Ltd. ("WinCup Texas"); and WinCup Holdings,
Inc. ("WinCup") ("RCC", "SUS", "SCF", "WinCup Texas", "WinCup" and "SCL" are
collectively referred to as "Purchaser").

     WHEREAS, Chevron Chemical Company LLC, predecessor to CPChem, and RCC, SUS,
SCL and Wincup entered into a certain Styrene Monomer Contract of Sale, dated
December 5, 1996, and amended October 1, 1998 and January 1, 2001 (the "Previous
Agreement").

     WHEREAS, CPChem has quantities of Styrene Monomer that it desires to sell
to Purchaser, and Purchaser desires to purchase from CPChem.

     WHEREAS, Purchaser and CPChem desire to enter into this Agreement which
will amend and restate, effective as of the date hereof, the Previous Agreement.

     NOW, THEREFORE, in consideration of the premises and for the mutual benefit
of the parties as well as for other good and valuable consideration, CPChem and
Purchaser agree as follows:

1.   Purchaser desires to purchase from CPChem, solely for Purchaser's use in
the manufacture of styrene derivative products in North America and Europe,
Styrene Monomer meeting the specifications contained in Exhibit A; and CPChem
agrees to supply such Product to Purchaser for that limited purpose.

2.   During calendar year 2003, the quantity of Product to be sold and delivered
hereunder shall be 119,000,000 pounds.

     During the period January 1, 2004 through December 31, 2006, the quantity
of Product to be sold and delivered hereunder shall be a minimum of 150,000,000
pounds and a maximum of 175,000,000 pounds per calendar year, the exact quantity
within said range at Purchaser's option. For each calendar year thereafter, the
quantity of Product to be sold and delivered hereunder shall be a minimum of
100,000,000 pounds and a maximum of 150,000,000 pounds per calendar year, the
exact quantity within said range at Purchaser's option. Product quantities
delivered during any calendar year in excess of the foregoing maximum amount for
said calendar year will be by mutual agreement of the parties. The foregoing
Product quantities shall be prorated for part calendar years, if any, during the
term of this Agreement. Purchaser shall nominate the quantity of Product within
said range for the calendar year in question by providing CPChem written notice
prior to [ ] of the preceding calendar year.

     Notwithstanding anything contained in this Agreement to the contrary, all
pounds of Polystyrene purchased by Purchaser from CPChem or affiliate, up to a
maximum of 20,000,000 pounds per calendar year, shall be deemed to be pounds of
Product purchased hereunder for purposes of the quantity commitment set forth
above.

                                    1 of 12

<PAGE>

3.   Unless otherwise agreed by the parties, Product shall be delivered to
Purchaser FOB (as defined in the Texas Uniform Commercial Code) St. James,
Louisiana, or other shipping point designated by CPChem ("CPChem Shipping
Point"). Delivery as used herein shall be defined to occur when the Product
passes from CPChem's delivery line at the CPChem Shipping Point into the
transportation equipment.

4.   CPChem shall be responsible for arranging for railcar shipments of Product
from St. James, Louisiana to Purchaser's facilities in Fort Worth, Texas and
Montreal, Quebec, as designated by Purchaser, and Purchaser shall pay the
Freight Charge (as defined below) with respect to such shipments.

     For purposes of this Contract, the "Freight Charge" for railcar shipments
of Product from St. James, Louisiana to Purchaser's facilities in Fort Worth,
Texas and Montreal, Quebec shall be [ ] U.S. cents per pound ("cpp") and [ ]
Canadian cents per pound, respectively. These Freight Charges shall be
readjusted on [ ] 2004 and each anniversary thereafter in accordance with
the Rail Cost Adjustment Factor (RCAF), Unadjusted Increase Scale, as published
by the American Association of Railroads. If, however, during the term hereof
there shall cease to be any merchant marketers of Product manufactured in
Sarnia, Ontario, the "Freight Charge" with respect to shipments to Purchaser's
facility in Montreal, Quebec shall be changed to an amount equal to the lowest
rail shipping cost available to Purchaser from the closest merchant marketer of
Product, and subsequently adjusted in accordance with the immediately preceding
sentence.

     If Purchaser requests and CPChem agrees to arrange for another delivery
method and/or another CPChem Shipping Point is used, and the costs of shipment
are increased thereby, CPChem may add such additional costs to Purchaser's
invoice as a separate chargeable item.

     Notwithstanding the foregoing, Purchaser shall have the option to arrange
for delivery of Product purchased hereunder, in which event there shall be no
freight cost charged to Purchaser with respect to such shipment(s).

5.   (a)  CPChem shall invoice Purchaser for all shipments of Product made
during a given month at the end of each month.

     (b)  Payment shall be due for invoiced Product and Purchaser shall pay
CPChem therefor in immediately available U. S. dollars net [ ] days from date of
invoice. Purchaser will make payment by check, except in the case of SCF and SCL
which will make payment by wire transfer.

6.   (a)  Purchaser shall place firm orders for Product to be shipped by CPChem
at least 30 days prior to the date of a requested shipment. CPChem will accept
reasonable changes in said quantities if advised thereof within 15 days after
the date of initial order placement. CPChem will exert reasonable efforts to
accommodate changes requested by Purchaser within 21 days of the initial order
placement unless said order has been shipped. CPChem shall advise Purchaser of
its inability to fill any order within 5 business days of placement; otherwise
CPChem shall be deemed to have accepted the order. For those purchase orders
where CPChem does not satisfy the conditions thereof for any reason, Purchaser
will have the right to place such orders with a third party. With respect to
such orders placed by Purchaser with a third party (other than orders CPChem
does not satisfy because (i) such order was materially changed by Purchaser more
than 15 days after the initial placement of such order; (ii) such order is in
excess of the "Minimum Reserved Capacity" as specified in Section 6.(b) below;
(iii) CPChem is unable to satisfy such order due to the occurrence of an event
described in Section 16.(a)

                                    2 of 12

<PAGE>

below; or (iv) CPChem does not satisfy such order pursuant to the provisions of
Section 22 (collectively "Exempt Orders")), CPChem will pay to Purchaser an
amount, if any, that Purchaser paid to such third party for such order in excess
of the price that would have been paid to CPChem for such order pursuant hereto
if CPChem had satisfied such order; with the exception of Exempt Orders, such
orders placed by Purchaser with a third party shall be counted for purposes of
Sections 2 and 10, but such orders shall not be eligible for rebates under
Section 10.

     (b)  During each month of each calendar year of this Agreement, CPChem will
reserve a portion of its manufacturing capacity for purchases of Product by
Purchaser in an amount equal to 1/10th of the quantity to be sold and delivered
for said calendar year as determined under Section 2 above ("Minimum Reserved
Capacity"). Should Purchaser desire to place orders in any month for Product
that in the aggregate exceed the Minimum Reserved Capacity for such month,
CPChem will attempt to satisfy the excess requirement to Purchaser's
satisfaction if in CPChem's reasonable judgment such can be done without
disrupting its manufacturing process and/or create the inability to fulfill
commitments to its other customers.

     (c)  Purchaser and CPChem may agree from time to time to discuss possible
revisions to the Minimum Reserved Capacity; provided, however, neither CPChem
nor Purchaser will be obligated to agree to any revisions to the Minimum
Reserved Capacity.

7.   Performance under this Agreement shall commence on the date first written
above for an initial term ending December 31, 2009, and will continue for
successive annual terms thereafter unless terminated by either party giving the
other at least 12 months prior written notice, which termination shall be
effective at the end of the initial term or any annual extension thereof.

8.   Title to the Product and risk of loss therefor shall pass from CPChem to
Purchaser upon tender of delivery of the Product to Purchaser at the CPChem
Shipping Point.

9.   The purchase price (in cents per pound) to be paid for each pound of
Product purchased by Purchaser hereunder shall be the "Market Price", less a
"Discount".

     (a)  For purposes of this Agreement, the "Market Price" shall be calculated
as follows:

          Market Price = ([ ] x Styrene Contract) + ([ ] x [Styrene Spot +
          [ ] cpp]), where

          "Styrene Contract" = most recently settled United States Styrene
          Contract price, posted in CMAI's Aromatics Market Report-Price Page
          published for the month of delivery, less an adjustment in the amount
          of (i) [ ] cpp during the period January 1, 2003 through May 31, 2003
          and (ii) [ ] cpp thereafter. If a range is reported, the low end of
          the range shall be used ; and

          "Styrene Spot" = the United States Styrene Spot price for the month of
          delivery as reported in CMAI's Aromatics Market Report-Price Page
          published for said month. If a range is reported, the average of the
          range will be used.

          In no event, however, shall the Market Price for the month of delivery
          exceed the value of "Styrene Contract" for said month as determined
          above.

                                    3 of 12

<PAGE>

     (b)  For purposes of this Agreement, the "Discount" shall be calculated as
follows:

          (i)   When the Market Price is [ ] cpp or above:

                  Discount = [ ] cpp + [ ] (Market Price - [ ] cpp), but in
                  no event shall the Discount exceed the greater of:

                    (aa) [ ] cpp; or

                    (bb) Market Price - ([{Bz x [ ]} + {Eth x [ ]}] +[ ]),
                    where

                         "Bz" = the United States Benzene Contract price for the
                         month of delivery as reported in CMAI's Aromatics
                         Market Report-Price Page published for said month. If a
                         range is reported, the low end of the range shall be
                         used; and

                         "Eth" = the U.S. Gulf Coast Ethylene contract price in
                         cpp (before any discounts), plus a [ ] cpp delivery
                         charge, plus superfund, if any, for the month of
                         delivery. The U.S. Gulf Coast Ethylene contract price,
                         before delivery charges and superfund, shall be deemed
                         equal to the U.S. Ethylene contract price published for
                         the month in question in CMAI's month-end Monomers
                         Market Report, and shall be the low-end of the values
                         if a range is published.

          (ii)  When Market Price is greater than [ ] cpp but less than
[ ] cpp:

                  Discount = [ ] cpp

          (iii) When Market Price is less than or equal to [ ] cpp:

                  Discount = [ ] cpp - [ ]([ ] cpp - Market Price), but in no
                  event shall the Discount be less than [ ] cpp or more than [ ]
                  cpp.

     In the event that any of the foregoing reference publications cease to
     exist or contain any of the data necessary to determine the reference
     price(s) in question, or if any of the publications change the basis for
     determination of any of such data in a manner which is adverse to either of
     the parties hereunder, then the reference price in question will be based
     on such alternative index as most closely approximates the applicable index
     as constituted on the date of this Contract and is reasonably acceptable to
     Purchaser and CPChem.

     (c)  The purchase price shall be adjusted each month during the term of
this Agreement based upon the changes in the Market Price and the factors used
in determining the Discount.

10.  (a)  During the period January 1, 2003 through December 31, 2003, upon the
purchase of a minimum 119,000,000 pounds of Product, and provided Purchaser has
complied with its obligations hereunder, including, but not limited, making
payments when due pursuant to Section 5 above, Purchaser shall be eligible for a
rebate in the amount of [ ] cpp on all pounds of Product purchased during said

                                    4 of 12

<PAGE>

calendar year. This rebate may be provisionally extended in the form of a credit
issued to Purchaser's account at the end of each calendar month on all pounds of
Product purchased during said month. In the event Purchaser fails to purchase
the requisite 119,000,000 pounds of Product during calendar year 2003, CPChem
shall adjust Purchaser's account for the provisionally extended rebate which
Purchaser received but failed to qualify for.

     (b)  During the period January 1, 2004 through December 31, 2006, upon the
purchase of a minimum of 150,000,000 pounds of Product during any calendar year,
and provided Purchaser has complied with its obligations hereunder, including,
but not limited to, making payments when due pursuant to Section 5 above,
Purchaser shall be eligible for a rebate in the amount of [ ] cpp on all pounds
of Product purchased during said calendar year.

     If at the end of any calendar quarter ("Test Quarter") during the calendar
year in question, Purchaser meets the minimum year-to-date ("Y/D") purchase
requirements for said Test Quarter in accordance with Schedule A below, the
foregoing rebate may be provisionally extended to Purchaser on all purchases
made during the immediately succeeding calendar quarter ("Succeeding Quarter").
Said provisional rebate will be extended at the end of each month during the
Succeeding Quarter in the form of a credit issued to Purchaser's account.

                               Schedule A
                               ----------

Calendar Quarter (Q)                             Minimum Y/D Requirements
--------------------                             ------------------------
       1st Q                                            37,500,000 pounds
       2nd Q                                            75,000,000 pounds
       3rd Q                                           112,500,000 pounds
       4th Q                                           150,000,000 pounds

     If Purchaser fails to meet the minimum Y/D purchase requirements during any
Test Quarter, Purchaser shall not receive the monthly provisional rebate during
the Succeeding Quarter. Thereafter if Purchaser meets the minimum Y/D purchase
requirements for a subsequent Test Quarter during the calendar year in question,
Purchaser shall receive the monthly provisional rebate during the Succeeding
Quarter on Product purchases during the Succeeding Quarter as described above.
In addition, at the beginning of the Succeeding Quarter, Purchaser shall receive
a provisional rebate on all Product purchases during the previous Succeeding
Quarter(s) of the calendar year in question which were not eligible for the
provisional rebate because of Purchaser's failure to meet the minimum Y/D
Requirements according to Schedule A.

     In the event Purchaser fails to purchase the requisite 150,000,000 pounds
during the calendar year in question, CPChem shall adjust Purchaser's account
for the provisionally extended rebate which Purchaser received but failed to
qualify for.

     Notwithstanding anything contained in this Agreement to the contrary,
Product purchases hereunder during any calendar year in excess of 175,000,000
pounds will not be eligible for a rebate under this Section 10.

                                    5 of 12

<PAGE>

     (c)  Effective January 1, 2007, upon the purchase of a minimum of
100,000,000 pounds of Product during any calendar year, and provided Purchaser
has complied with its obligations hereunder, including, but not limited to,
making payments when due pursuant to Section 5 above, Purchaser shall be
eligible for a rebate in the amount of [ ] cpp on all pounds of Product
purchased during said calendar year.

     If at the end of any calendar quarter ("Test Quarter") during a calendar
year, Purchaser meets the minimum year-to-date ("Y/D") purchase requirements for
said Test Quarter in accordance with Schedule B below, the foregoing rebate may
be provisionally extended to Purchaser on all purchases made during the
immediately succeeding calendar quarter ("Succeeding Quarter"). Said provisional
rebate will be extended at the end of each month during the Succeeding Quarter
in the form of a credit issued to Purchaser's account.

                               Schedule B
                               ----------

Calendar Quarter (Q)                             Minimum Y/D Requirements
--------------------                             ------------------------
       1st Q                                            25,000,000 pounds
       2nd Q                                            50,000,000 pounds
       3rd Q                                            75,000,000 pounds
       4th Q                                           100,000,000 pounds

     If Purchaser fails to meet the minimum Y/D purchase requirements during any
Test Quarter, Purchaser shall not receive the monthly provisional rebate during
the Succeeding Quarter. Thereafter if Purchaser meets the minimum Y/D purchase
requirements for a subsequent Test Quarter during the calendar year in question,
Purchaser shall receive the monthly provisional rebate during the Succeeding
Quarter on Product purchases during the Succeeding Quarter as described above.
In addition, at the beginning of the Succeeding Quarter, Purchaser shall receive
a provisional rebate on all Product purchases during the previous Succeeding
Quarter(s) of the calendar year in question which were not eligible for the
provisional rebate because of Purchaser's failure to meet the minimum Y/D
Requirements according to Schedule B.

     In the event Purchaser fails to purchase the requisite 100,000,000 pounds
during the calendar year in question, CPChem shall adjust Purchaser's account
for the provisionally extended rebate which Purchaser received but failed to
qualify for.

     Notwithstanding anything contained in this Agreement to the contrary,
Product purchases hereunder during any calendar year in excess of 150,000,000
pounds will not be eligible for a rebate under this Section 10.

     (d)  Product purchases hereunder by each Purchaser during the calendar year
in question shall be totaled together for purposes of determining whether
Purchaser is eligible for a rebate hereunder. Credits for such rebate shall be
issued to Purchaser based upon Purchaser's actual purchases during said calendar
year.

     (e)  Notwithstanding anything contained in this Agreement to the contrary,
all pounds of Polystyrene purchased from CPChem and it affiliates during the
calendar year in question by each Purchaser shall be totaled together, and shall
be deemed Product purchases for purposes of determining whether Purchaser is
eligible for a rebate hereunder (provided that in the event Purchaser purchases
in

                                    6 of 12

<PAGE>

excess of 20,000,000 pounds of Polystyrene during a calendar year, then only
20,000,000 pounds of Polystyrene shall be applied to determine Purchaser's
eligibility for a rebate in that calendar year). Said Polystyrene purchases,
however, shall not be eligible for any rebates under this Agreement.

11.  In addition to the price provided herein, Purchaser shall pay CPChem an
amount equal to any tax, duty (including dumping duty), or other charge
(including Superfund levies or the like), unless measured by net income,
assessed on CPChem and related to sales made pursuant to this Agreement or to
the transportation, production, or use of the Product or source materials
thereof. Any personal property taxes assessed upon the value of the Product
shall be paid by the party having title thereto at the time such taxes are
assessed.

12.  (a)  CPChem warrants that, at the time of delivery, the Product will meet
the specifications in Exhibit A in all material respects.

     (b)  EXCEPT AS SET FORTH IN SECTION 12.(a) ABOVE, CPCHEM DOES NOT MAKE, AND
EXPRESSLY DISCLAIMS, AND PURCHASER EXPRESSLY WAIVES ANY OTHER WARRANTIES,
INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,
REGARDLESS OF WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, OR ALLEGEDLY ARISING
FROM ANY USAGE OF ANY TRADE OR FROM ANY COURSE OF DEALING.

     (c)  PURCHASER'S SOLE AND EXCLUSIVE REMEDIES FOR LOSS, DAMAGE OR EXPENSE
INCURRED BY PURCHASER (EITHER DIRECTLY OR AS RESULT OF ANY CLAIMS OR ACTIONS
AGAINST PURCHASER BY ANY THIRD PARTY) BASED ON OR DUE TO BREACH OF CPCHEM'S
WARRANTY HEREUNDER ARE AS FOLLOWS:

          (i)  With respect to any and all claims, damages, liabilities, costs
and expense, including court costs and attorneys fees, incurred by Purchaser
based upon, arising out of or otherwise in respect of any breach of warranty
made by CPChem in Section 12.(a) above, CPCHEM, AT PURCHASER'S OPTION, WILL
REPLACE THE NONCONFORMING PRODUCT OR REFUND THE PURCHASE PRICE FOR SUCH PRODUCT.
IN ADDITION, CPCHEM SHALL REIMBURSE PURCHASER FOR ITS OUT OF POCKET COSTS AND
EXPENSES RELATED TO SUCH BREACH OF WARRANTY, INCLUDING LABOR, MATERIAL, AND
OTHER OUT OF POCKET COSTS INCURRED BY PURCHASER IN CONNECTION WITH THE
REPLACEMENT OF EPS PRODUCT MANUFACTURED BY PURCHASER USING NONCONFORMING
PRODUCT, UP TO A MAXIMUM AMOUNT EQUAL TO 100% OF THE PRODUCT PURCHASE PRICE WITH
RESPECT TO WHICH SUCH BREACH OF WARRANTY CLAIM RELATES. IN NO EVENT SHALL
CPCHEM'S TOTAL LIABILITY HEREUNDER WITH RESPECT TO DAMAGES INCURRED DIRECTLY BY
PURCHASER EXCEED THE FOREGOING.

          (ii) With respect to any and all claims or actions of third parties
against Purchaser based upon, arising out of or otherwise in respect of any
breach of any warranty made by CPChem in Section 12.(a) above, CPChem agrees to
indemnify Purchaser pursuant to Section 14 below.

13.  NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY, IN NO
EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY (a) LOST PROFITS
OR (b) ANY INDIRECT, INCIDENTAL (EXCEPT OUT OF POCKET COSTS AND EXPENSES
ADDRESSED SECTION 12 ABOVE), CONSEQUENTIAL, SPECIAL, CONTINGENT, EXEMPLARY OR
PUNITIVE DAMAGES, INCURRED BY THE OTHER PARTY, WHETHER BASED IN CONTRACT, TORT
(INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

                                    7 of 12

<PAGE>

14.  CPCHEM AGREES TO INDEMNIFY AND HOLD PURCHASER HARMLESS FROM AND AGAINST ANY
CLAIM, SUIT, JUDGMENT, DAMAGE, COST OR EXPENSE, INCLUDING REASONABLE ATTORNEYS'
FEES, ASSERTED BY A "THIRD PARTY" (AS DEFINED BELOW) AGAINST PURCHASER TO THE
EXTENT SUCH ARISES OUT OF "CPCHEM'S RESPONSIBILITY" (AS DEFINED BELOW).
PURCHASER AGREES TO INDEMNIFY AND HOLD CPCHEM HARMLESS FROM AND AGAINST ANY
CLAIM, SUIT, JUDGMENT, DAMAGE, COST OR EXPENSE, INCLUDING REASONABLE ATTORNEYS'
FEES, ASSERTED BY ANY THIRD PARTY AGAINST CPCHEM TO THE EXTENT SUCH ARISES OUT
OF "PURCHASER'S RESPONSIBILITY" (AS DEFINED BELOW). As used herein, the term
"Third Party" with respect to any party shall include employees, contractors and
agents of such party, but shall not include any parent, subsidiary or affiliated
company of such party that is more than fifty percent (50%) owned (directly or
indirectly) by such party or such party's ultimate parent company. As used
herein, the term "CPChem's Responsibility" shall mean (a) any failure of Product
to conform to the specifications provided in Exhibit A when delivered to
Purchaser and (b) all risk with respect to the handling and use of Product prior
to delivery to Purchaser. As used herein, the term "Purchaser's Responsibility"
shall mean all risk with respect to the handling and use of Product after
delivery to Purchaser other than any risk arising from CPChem's Responsibility.

15.  (a)  Product may be or become hazardous. Purchaser acknowledges that it is
familiar with, and shall take all steps necessary to inform, warn, and
familiarize its employees, agents, customers, and contractors who may handle the
Product, of all hazards pertaining to and proper procedures for safe use of the
Product and of the containers or equipment in which the Product may be handled,
shipped, or stored. Purchaser also undertakes to label as appropriate any
materials which it makes or resells that include Product.

     (b)  PURCHASER SHALL INDEMNIFY, DEFEND, AND HOLD CPCHEM HARMLESS FROM AND
AGAINST ANY CLAIM, LIABILITY, OR EXPENSE, INCLUDING, BUT NOT LIMITED TO, INJURY
OR DEATH OF PURCHASER'S EMPLOYEES, DIRECTLY OR INDIRECTLY ARISING FROM
PURCHASER'S FAILURE TO SO INFORM, WARN, AND FAMILIARIZE ITS EMPLOYEES, AGENTS,
CUSTOMERS, AND CONTRACTORS, EXCEPT TO THE EXTENT THAT THE CLAIM, LIABILITY, OR
EXPENSE IS CAUSED BY THE FAILURE OF THE PRODUCT TO MEET THE SPECIFICATIONS IN
EXHIBIT A WHEN DELIVERED TO PURCHASER; AND THESE UNDERTAKINGS APPLY IN FULL
MEASURE WHETHER OR NOT IT IS ALLEGED OR PROVED THAT CPCHEM WAS ACTIVELY OR
PASSIVELY NEGLIGENT OR AT FAULT OR LIABILITY WITHOUT FAULT IS SOUGHT TO BE
IMPOSED ON CPCHEM. EXPENSES AS USED HEREIN SHALL INCLUDE REASONABLE ATTORNEYS'
FEES.

16.  (a)  Neither party shall be in breach of its obligations hereunder to the
extent that performance is prevented or delayed by (i) any cause beyond the
reasonable control of the party concerned, including, but not limited to,
shortage in raw material, transportation, power, manufacturing capacity, etc.,
or the Product itself from CPChem's then-contemplated source of supply; (ii)
labor disturbance, whether or not involving the employees of the party concerned
or otherwise, and whether or not the disturbance could be settled by acceding to
the demands of a labor group; or (iii) compliance with a request or order of a
person purporting to act on behalf of any government or governmental department
or agency (including but not limited to EPA and OSHA).

     (b)  Whenever performance is so affected by such a contingency, CPChem may
reduce deliveries in a manner that fairly apportions the consequences of the
contingency among all CPChem's customers (including affiliates or internal
needs). CPChem shall not be required to purchase Product from third parties in
order to comply with this Section but CPChem may do so in its sole discretion.

                                    8 of 12

<PAGE>

     (c)  Performance will be excused as provided above even though the
occurrence of the contingency in question may have been foreseen or foreseeable
at the time of contracting or may subsequently become foreseeable.

     (d)  Quantities not purchased or sold due to the provisions of the Section
need not be made up later.

     (e)  If any law, regulation, or other governmental action requires CPChem
to reduce any price in effect under this Agreement or prevents CPChem from
increasing the price pursuant to Section 9 above, CPChem may cancel from this
Agreement the quantities of Product so affected.

     (f)  Nothing in this Section shall excuse Purchaser from its obligations to
make payments when due.

17.  This Agreement, together with Exhibit A attached hereto, supersedes all
prior understanding, drafts, discussions, or statements, whether oral or in
writing, express or implied, dealing with the same subject matter. It
constitutes a final written expression of all of the terms of this Agreement and
is a complete and exclusive statement of those terms. It may not be amended or
modified in any manner except by a written agreement signed by both parties that
expressly amends this Agreement. Further, the provisions of this Agreement will
take precedence over, govern and control any purchase order, sales
acknowledgement, invoice or other writing between the CPChem and Purchaser
despite subsequent issuance, it being agreed and understood, without limitation,
that any pre-printed terms and conditions appearing on any other writing,
communication or transmittal between CPChem and Purchaser pertaining to the
subject matter of this Agreement will be null and void and have no force or
effect. No delay on the part of a party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any waiver on
the part of either party of any such right, power or privilege, or any single or
partial exercise of any such right, power or privilege, preclude any further
exercise thereof or the exercise of any other such right, power or privilege.

18.  No rights or obligations under this Agreement may be assigned without the
prior written consent of the other party.

19.  ANY QUESTIONS CONCERNING THE INTERPRETATION AND ENFORCEMENT OF THIS
AGREEMENT SHALL BE GOVERNED BY THE DOMESTIC LAW OF THE STATE OF TEXAS, WITHOUT
REGARD TO THE PRINCIPLES OF THE CONFLICTS OF LAWS.

20.  Neither party shall give any director, employee, or representative of the
other party any commission, fee, rebate, gift, or entertainment of significant
cost or value in connection with this Agreement or enter into any other business
arrangement with any director, employee, or representative of the other, without
prior written notification to the other party. Any representative(s) authorized
by either party may cause an audit of any and all records of the other party as
necessary and proper to verify that there has been compliance with this Section.

21.  All notices, requests, demands, and other communications required or
permitted to be given or made hereunder by any party hereto shall be in writing
and shall be deemed to have been duly given if delivered personally or
transmitted by first class registered or certified mail, postage prepaid, return
receipt requested, or sent by prepaid overnight delivery service, or sent by
cable, telegram, or facsimile

                                    9 of 12

<PAGE>

to the parties at the following addresses (or at such other addresses as shall
be specified by the parties by like notice):

     If to CPChem:                       If to Purchaser:
        10001 Six Pines Drive               c/o WinCup
        The Woodlands, TX 77380             3 Radnor Corporate Center, Suite 300
        Attention:  Andrew Singer           Radnor, Pennsylvania 19087
        Facsimile: (832) 813-4115           Attention: Michael V. Valenza
                                            Facsimile: (610) 995-2697

22.  (a)  Notwithstanding anything contained in this Agreement to the contrary,
if during the term of this Agreement, Purchaser is past due in payment of any
amount owing to CPChem, CPChem reserves the right, without liability and without
prejudice to any other remedies afforded under this Agreement or by operation of
law or equity, to implement one or more of the following actions:

          (i)   reduce the quantity of Product shipped hereunder;

          (ii)  require Purchaser to make payment on a C.O.D. basis; and/or

          (iii) entirely suspend its performance under this Agreement,
including, without limitation, decline to ship Product and/or stop any Product
shipments in transit

(individually referred to as "Action"), until payment of all amounts then due
CPChem have been received by CPChem. CPChem shall provide at least 5 days
written notification to Purchaser prior to taking any of the foregoing
Action(s).

     (b)  In addition to and notwithstanding the above, in the event either
party (each, a "Breaching Party") breaches a material obligation hereunder and
such breach continues uncured for a period of 30 days after written notice of
such breach from the other party (the "Non-breaching Party"), then the
Non-breaching Party shall have the right to terminate this Agreement upon
written notice to the Breaching Party.

     (c)  In addition to and notwithstanding the above, if during the term of
this Agreement, CPChem, in its sole judgment, reasonably exercised, determines
that the financial responsibility of the Purchaser has become impaired or
unsatisfactory to a level that CPChem has reasonable concern that Purchaser will
not be able to make the payments coming due hereunder, then CPChem reserves the
right, without liability and without prejudice to any other remedies afforded
under this Agreement or by operation of law or equity, to require Purchaser to
make payment on a C.O.D. basis until CPChem, in its sole judgment, reasonably
exercised, determines that the financial responsibility of Purchaser has
returned to a level where CPChem no longer has reasonable concern that Purchaser
will not be able to make payments coming due hereunder. CPChem shall provide at
least 5 days written notification prior to taking any action under this
Paragraph (c). In the event CPChem places Purchaser on a C.O.D. basis in
accordance with this Paragraph, Purchaser shall have the right to purchase
Product elsewhere for so long as it remains on a C.O.D. basis and all such
Product purchases shall be deemed to have been purchased from CPChem for
purposes of determining whether Purchaser (i) has purchased the quantity of
Product required to be purchased pursuant to Section 2 above; and (ii) is
eligible for a rebate

                                   10 of 12

<PAGE>

hereunder (although no rebate shall be paid to Purchaser with respect to such
Product quantities themselves).

23.  Purchaser shall provide CPChem with monthly and quarterly financial
statements including income statement, balance sheet and cash flow analysis.
Purchaser shall provide CPChem with audited financial statements annually. In
addition, Purchaser shall provide a monthly statement of its borrowing amount
committed by banks or other lenders including the amount currently available for
borrowing by the Purchaser.

24.  The obligations of the parties under this Agreement which by their nature
would continue beyond the termination, cancellation, or expiration of this
Agreement, including, without limitation the obligations contained in Section
25, will survive termination, cancellation or expiration of this Agreement. Any
such termination shall be without prejudice to any claims of either party
against the other which shall have accrued prior to the date of termination.

25.  In consideration for entering into this Agreement and the provisions
hereof, including without limitation, the extended term, pricing provisions and
minimum purchase quantities, and the release of any and all disputed claims,
Purchaser has agreed to pay to CPChem the amount of [ ].

     Purchaser shall pay CPChem said amount in accordance with the following
payment schedule: (i) [ ] upon execution of this Agreement by all parties; and
(ii) the remaining balance on or before December 31, 2003.

     Purchaser may not set off any loss, damage, liability or claim which it may
have against CPChem under this Agreement or any other agreement, against payment
it owes to CPChem under this Section 25. Payment under this Section 25 shall be
made without protest of any kind.

                                   11 of 12

<PAGE>

In WITNESS WHEREOF, each of the parties has caused this Agreement to be executed
on its behalf by its representatives thereunto duly authorized, all as of the
date set forth above.

Radnor Chemical Corporation                  Chevron Phillips Chemical Company
                                             LP

By: /s/ Michael T. Kennedy                   By:    /s/ J.M. Parker
   -----------------------------------          --------------------------------

Title: Chairman                              Title: Senior Vice President
      --------------------------------             -----------------------------

Date:  Oct. 30, 2003                         Date:  November 7, 2003
     ---------------------------------            ------------------------------

StyroChem U.S., Ltd.
By: StyroChem GP, LLC, its general partner
By: Radnor Chemical Corp., its sole member   StyroChem Canada, Ltd.

By: /s/ Michael T. Kennedy                   By: /s/ Michael T. Kennedy
   -----------------------------------          --------------------------------

Title: Chairman                              Title: President
      --------------------------------             -----------------------------

Date:  Oct. 30, 2003                         Date:  Oct. 30, 2003
     ---------------------------------            ------------------------------

                                             WinCup Texas, Ltd.
StyroChem Finland Oy                         By: WinCup Holdings, Inc., its
                                             general partner

By: /s/ Michael T. Kennedy                   By: /s/ Michael T. Kennedy
   -----------------------------------          --------------------------------

Title: Chairman                              Title: President
      --------------------------------             -----------------------------

Date:  Oct. 30, 2003                         Date:  Oct. 30, 2003
     ---------------------------------            ------------------------------

WinCup Holdings Inc.

By: /s/ Michael T. Kennedy
   -----------------------------------

Title: President
      --------------------------------

Date:  Oct. 30, 2003
     ---------------------------------

                                   12 of 12

<PAGE>

                                    EXHIBIT A

                  [LOGO OF CHEVRON U.S. CHEMICALS APPEARS HERE]

                                                               P.O. Box 3766
                                                               Houston, TX 77253
<TABLE>
<CAPTION>
                              TECHNICAL DATA SHEET

                             CHEVRON STYRENE MONOMER

                                                      SALES SPECIFICATION (b)
                                                     -------------------------      TYPICAL
SPECIFICATION PROPERTIES            TEST METHOD        MINIMUM       MAXIMUM      VALUES (b)
------------------------------   -----------------   -----------   -----------    -----------
<S>                              <C>                  <C>            <C>          <C>
Purity, Wt. %                       ASTM D-5135            99.90            --          99.93
Ethylbenzene, ppm                   ASTM D-5135               --            85             45
Color                               ASTM D-1209               --            10              8
Polymer Content, ppm                ASTM D-2121               --            10              1
Inhibitor (t-Butyl Catechol):
   ppm (a)                          ASTM D-4590               10            15             13
Aldehydes
   (as Benzaldehyde), ppm           ASTM D-2119               --           200             20
Peroxides (as H/2/O/2/), ppm        ASTM D-2340               --           100              5
Benzene, ppm                        ASTM D-3962M              --             1    less than 1

TYPICAL PROPERTIES
------------------
Chlorides, ppm                   Chevron SM-350-16            --            --    less than 1
Sulfur, ppm                      Chevron SM-350-16            --            --    less than 1
Flash, TCC, degrees C,               ASTM D-56                --            --             31
 (degrees F)                                                                              (88)

<FN>
<F1>
(a)  Applies to all methods of shipments unless additional inhibitor is
     specified.
<F2>
(b)  Subject to change without notice.
</FN>
</TABLE>

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