Document:

EXHIBIT 10.46

	
  

 
	
 SECOND AMENDED AND RESTATED CREDIT
 AGREEMENT

 
	
  

 
	
 Dated as of August 10, 2007

 
	
  

 
	
 among

 
	
  

 
	
 CURTISS-WRIGHT CORPORATION

 
	
  

 
	
 and

 
	
  

 
	
 CERTAIN SUBSIDIARIES

 
	
 as Borrowers,

 
	
  

 
	
 BANK OF AMERICA, N.A.,

 
	
 as Administrative Agent, Swing Line Lender

 
	
 and L/C Issuer,

 
	
  

 
	
 and

 
	
  

 
	
 The Other Lenders Party Hereto,

 
	
  

 
	
 BANC OF AMERICA SECURITIES LLC

 
	
  

 
	
 and

 
	
  

 
	
 J.P. MORGAN SECURITIES INC.,

 
	
 As Joint Lead Arrangers and Joint Bookrunners,

 
	
  

 
	
 and

 
	
  

 
	
 JPMORGAN CHASE BANK N.A.,

 
	
 as Syndication Agent

 
	
  

 
	
 and

 
	
  

 
	
 SUNTRUST BANK and CITIBANK N.A.,

 
	
 as Co-Documentation Agents,

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 1

 	
  

 	
 DEFINITIONS
 AND ACCOUNTING TERMS

 	
  

 	
 1

 
	
 1.01

 	
  

 	
 Defined
 Terms

 	
  

 	
 1

 
	
 1.02

 	
  

 	
 Other
 Interpretive Provisions

 	
  

 	
 22

 
	
 1.03

 	
  

 	
 Accounting
 Terms

 	
  

 	
 23

 
	
 1.04

 	
  

 	
 Exchange
 Rates; Currency Equivalents

 	
  

 	
 23

 
	
 1.05

 	
  

 	
 Additional
 Alternative Currencies

 	
  

 	
 24

 
	
 1.06

 	
  

 	
 Change of
 Currency

 	
  

 	
 25

 
	
 1.07

 	
  

 	
 Times of Day

 	
  

 	
 25

 
	
 1.08

 	
  

 	
 Letter of
 Credit Amounts

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 2

 	
  

 	
 THE
 COMMITMENTS AND CREDIT EXTENSIONS

 	
  

 	
 25

 
	
 2.01

 	
  

 	
 Committed
 Loans

 	
  

 	
 25

 
	
 2.02

 	
  

 	
 Borrowings,
 Conversions and Continuations of Committed Loans

 	
  

 	
 26

 
	
 2.03

 	
  

 	
 Letters of
 Credit

 	
  

 	
 27

 
	
 2.04

 	
  

 	
 Swing Line
 Loans

 	
  

 	
 36

 
	
 2.05

 	
  

 	
 Prepayments

 	
  

 	
 39

 
	
 2.06

 	
  

 	
 Termination
 or Reduction of Commitments

 	
  

 	
 40

 
	
 2.07

 	
  

 	
 Repayment of
 Loans

 	
  

 	
 41

 
	
 2.08

 	
  

 	
 Interest

 	
  

 	
 41

 
	
 2.09

 	
  

 	
 Fees

 	
  

 	
 42

 
	
 2.10

 	
  

 	
 Computation
 of Interest and Fees

 	
  

 	
 42

 
	
 2.11

 	
  

 	
 Evidence of
 Debt

 	
  

 	
 43

 
	
 2.12

 	
  

 	
 Payments
 Generally; Administrative Agent’s Clawback

 	
  

 	
 43

 
	
 2.13

 	
  

 	
 Sharing of
 Payments by Lenders

 	
  

 	
 45

 
	
 2.14

 	
  

 	
 Designated
 Borrowers

 	
  

 	
 46

 
	
 2.15

 	
  

 	
 Increase in
 Commitments

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 3

 	
  

 	
 TAXES, YIELD
 PROTECTION AND ILLEGALITY

 	
  

 	
 48

 
	
 3.01

 	
  

 	
 Taxes

 	
  

 	
 48

 
	
 3.02

 	
  

 	
 Illegality

 	
  

 	
 50

 
	
 3.03

 	
  

 	
 Inability to
 Determine Rates

 	
  

 	
 51

 
	
 3.04

 	
  

 	
 Increased
 Costs; Reserves on Eurocurrency Rate Loans

 	
  

 	
 51

 
	
 3.05

 	
  

 	
 Compensation
 for Losses

 	
  

 	
 53

 
	
 3.06

 	
  

 	
 Mitigation
 Obligations; Replacement of Lenders

 	
  

 	
 54

 
	
 3.07

 	
  

 	
 Survival.
 All of the Borrowers’ obligations under this Article 3 shall survive
 termination of the Aggregate Commitments and repayment of all other
 Obligations hereunder

 	
  

 	
 54

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 4

 	
  

 	
 CONDITIONS
 PRECEDENT TO CREDIT EXTENSIONS

 	
  

 	
 54

 
	
 4.01

 	
  

 	
 Conditions
 of Initial Credit Extension

 	
  

 	
 54

 
	
 4.02

 	
  

 	
 Conditions
 to all Credit Extensions

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 5

 	
  

 	
 REPRESENTATIONS
 AND WARRANTIES

 	
  

 	
 57

 

i

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.01

 	
  

 	
 Existence,
 Qualification and Power; Compliance with Laws

 	
  

 	
 57

 
	
 5.02

 	
  

 	
 Authorization;
 No Contravention

 	
  

 	
 57

 
	
 5.03

 	
  

 	
 Governmental
 Authorization; Other Consents

 	
  

 	
 57

 
	
 5.04

 	
  

 	
 Binding
 Effect

 	
  

 	
 57

 
	
 5.05

 	
  

 	
 Financial
 Statements; No Material Adverse Effect

 	
  

 	
 57

 
	
 5.06

 	
  

 	
 Litigation

 	
  

 	
 58

 
	
 5.07

 	
  

 	
 No Default

 	
  

 	
 58

 
	
 5.08

 	
  

 	
 Ownership of
 Property; Liens

 	
  

 	
 58

 
	
 5.09

 	
  

 	
 Environmental
 Compliance

 	
  

 	
 58

 
	
 5.10

 	
  

 	
 Insurance

 	
  

 	
 59

 
	
 5.11

 	
  

 	
 Taxes

 	
  

 	
 59

 
	
 5.12

 	
  

 	
 ERISA
 Compliance

 	
  

 	
 59

 
	
 5.13

 	
  

 	
 Subsidiaries;
 Equity Interests

 	
  

 	
 59

 
	
 5.14

 	
  

 	
 Margin
 Regulations; Investment Company Act; Public Utility Holding Company Act

 	
  

 	
 60

 
	
 5.15

 	
  

 	
 Disclosure

 	
  

 	
 60

 
	
 5.16

 	
  

 	
 Compliance
 with Laws

 	
  

 	
 60

 
	
 5.17

 	
  

 	
 Intellectual
 Property; Licenses, Etc

 	
  

 	
 60

 
	
 5.18

 	
  

 	
 Representations
 as to Foreign Borrowers

 	
  

 	
 61

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 6

 	
  

 	
 AFFIRMATIVE
 COVENANTS

 	
  

 	
 62

 
	
 6.01

 	
  

 	
 Financial
 Statements

 	
  

 	
 62

 
	
 6.02

 	
  

 	
 Certificates;
 Other Information

 	
  

 	
 62

 
	
 6.03

 	
  

 	
 Notices

 	
  

 	
 64

 
	
 6.04

 	
  

 	
 Payment of
 Obligations

 	
  

 	
 64

 
	
 6.05

 	
  

 	
 Preservation
 of Existence, Etc

 	
  

 	
 64

 
	
 6.06

 	
  

 	
 Maintenance
 of Properties

 	
  

 	
 65

 
	
 6.07

 	
  

 	
 Maintenance
 of Insurance

 	
  

 	
 65

 
	
 6.08

 	
  

 	
 Compliance
 with Laws

 	
  

 	
 65

 
	
 6.09

 	
  

 	
 Books and
 Records

 	
  

 	
 65

 
	
 6.10

 	
  

 	
 Inspection
 Rights

 	
  

 	
 65

 
	
 6.11

 	
  

 	
 Use of
 Proceeds

 	
  

 	
 65

 
	
 6.12

 	
  

 	
 Approvals
 and Authorizations

 	
  

 	
 65

 
	
 6.13

 	
  

 	
 Additional
 Subsidiary Guarantors

 	
  

 	
 66

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 7

 	
  

 	
 NEGATIVE
 COVENANTS

 	
  

 	
 66

 
	
 7.01

 	
  

 	
 Liens

 	
  

 	
 66

 
	
 7.02

 	
  

 	
 Swap
 Contracts

 	
  

 	
 67

 
	
 7.03

 	
  

 	
 Indebtedness

 	
  

 	
 67

 
	
 7.04

 	
  

 	
 Fundamental
 Changes

 	
  

 	
 68

 
	
 7.05

 	
  

 	
 Dispositions

 	
  

 	
 69

 
	
 7.06

 	
  

 	
 Restricted
 Payments

 	
  

 	
 69

 
	
 7.07

 	
  

 	
 Change in
 Nature of Business

 	
  

 	
 69

 
	
 7.08

 	
  

 	
 Transactions
 with Affiliates

 	
  

 	
 69

 
	
 7.09

 	
  

 	
 Burdensome
 Agreements

 	
  

 	
 70

 
	
 7.10

 	
  

 	
 Use of
 Proceeds

 	
  

 	
 70

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.11

 	
  

 	
 Financial
 Covenants

 	
  

 	
 70

 
	
 7.12

 	
  

 	
 Material
 Subsidiaries

 	
  

 	
 70

 
	
 7.13

 	
  

 	
 Mergers;
 Acquisitions; Investments

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 8

 	
  

 	
 EVENTS OF
 DEFAULT AND REMEDIES

 	
  

 	
 71

 
	
 8.01

 	
  

 	
 Events of
 Default

 	
  

 	
 71

 
	
 8.02

 	
  

 	
 Remedies
 Upon Event of Default

 	
  

 	
 73

 
	
 8.03

 	
  

 	
 Application
 of Funds

 	
  

 	
 73

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 9

 	
  

 	
 ADMINISTRATIVE
 AGENT

 	
  

 	
 74

 
	
 9.01

 	
  

 	
 Appointment
 and Authority

 	
  

 	
 74

 
	
 9.02

 	
  

 	
 Rights as a
 Lender

 	
  

 	
 74

 
	
 9.03

 	
  

 	
 Exculpatory
 Provisions

 	
  

 	
 74

 
	
 9.04

 	
  

 	
 Reliance by
 Administrative Agent

 	
  

 	
 75

 
	
 9.05

 	
  

 	
 Delegation
 of Duties

 	
  

 	
 76

 
	
 9.06

 	
  

 	
 Resignation
 of Administrative Agent

 	
  

 	
 76

 
	
 9.07

 	
  

 	
 Non-Reliance
 on Administrative Agent and Other Lenders

 	
  

 	
 77

 
	
 9.08

 	
  

 	
 No Other
 Duties, Etc

 	
  

 	
 77

 
	
 9.09

 	
  

 	
 Administrative
 Agent May File Proofs of Claim

 	
  

 	
 77

 
	
 9.10

 	
  

 	
 Guaranty
 Matters

 	
  

 	
 78

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 10

 	
  

 	
 MISCELLANEOUS

 	
  

 	
 78

 
	
 10.01

 	
  

 	
 Amendments,
 Etc

 	
  

 	
 78

 
	
 10.02

 	
  

 	
 Notices; Effectiveness;
 Electronic Communication

 	
  

 	
 79

 
	
 10.03

 	
  

 	
 No Waiver;
 Cumulative Remedies

 	
  

 	
 80

 
	
 10.04

 	
  

 	
 Expenses;
 Indemnity; Damage Waiver

 	
  

 	
 81

 
	
 10.05

 	
  

 	
 Payments Set
 Aside

 	
  

 	
 82

 
	
 10.06

 	
  

 	
 Successors
 and Assigns

 	
  

 	
 83

 
	
 10.07

 	
  

 	
 Treatment of
 Certain Information; Confidentiality

 	
  

 	
 87

 
	
 10.08

 	
  

 	
 Right of
 Setoff

 	
  

 	
 87

 
	
 10.09

 	
  

 	
 Interest
 Rate Limitation

 	
  

 	
 88

 
	
 10.10

 	
  

 	
 Counterparts;
 Integration; Effectiveness

 	
  

 	
 88

 
	
 10.11

 	
  

 	
 Survival of
 Representations and Warranties

 	
  

 	
 88

 
	
 10.12

 	
  

 	
 Severability

 	
  

 	
 88

 
	
 10.13

 	
  

 	
 Replacement
 of Lenders

 	
  

 	
 89

 
	
 10.14

 	
  

 	
 Governing
 Law; Jurisdiction; Etc

 	
  

 	
 89

 
	
 10.15

 	
  

 	
 Waiver of
 Jury Trial

 	
  

 	
 90

 
	
 10.16

 	
  

 	
 USA PATRIOT
 Act Notice

 	
  

 	
 91

 
	
 10.17

 	
  

 	
 Time of the
 Essence

 	
  

 	
 91

 
	
 10.18

 	
  

 	
 Judgment
 Currency

 	
  

 	
 91

 
	
 10.19

 	
  

 	
 Entire
 Agreement

 	
  

 	
 91

 

iii

SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

                    This
SECOND AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is entered
into as of August 10, 2007, among CURTISS-WRIGHT CORPORATION, a Delaware
corporation (the “Company”), certain Subsidiaries of the Company party
hereto pursuant to Section 2.14 (each a “Designated Borrower” and,
together with the Company, the “Borrowers”, and each a “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), and BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer, JPMORGAN CHASE BANK
N.A., as syndication agent for the Lenders (in such capacity, the “Syndication
Agent”), SUNTRUST BANK and CITIBANK, N.A., as co-documentation agents for the
Lenders (in such capacity, the “Documentation Agents”). The
Borrowers are parties to a certain Amended and Restated Credit Agreement, dated
as of July 23, 2004, with certain of the Lenders (the “Prior Agreement”)
pursuant to which such Lenders have extended credit to the Borrowers and issued
letters of credit on behalf of the Borrowers. The Company has requested that
the Lenders provide a revolving credit facility to refinance the credit
facilities available under the Prior Agreement, and for financing working
capital, capital expenditures, acquisitions and other general lawful corporate
purposes of the Borrowers, by amending and restating the Prior Agreement in its
entirety, and the Lenders are willing to do so on the terms and conditions set
forth herein. 

                    In
consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows: 

ARTICLE 1
DEFINITIONS AND ACCOUNTING TERMS

          1.01 Defined Terms. As used in this Agreement,
the following terms have the meanings set forth below: 

                    “Additional
Indebtedness” has the meaning specified in Section 7.03(f). 

                    “Administrative
Agent” means Bank of America in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent. 

                    “Administrative
Agent’s Office” means, with respect to any currency, the Administrative
Agent’s address and, as appropriate, account as set forth on Schedule 10.02
with respect to such currency, or such other address or account with respect to
such currency as the Administrative Agent may from time to time notify to the
Company and the Lenders. 

                    “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Administrative Agent. 

                    “Affiliate”
means, with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified. 

                    “Aggregate
Commitments” means the Commitments of all the Lenders, not to exceed Four
Hundred Twenty-Five Million Dollars ($425,000,000.00) as of the Closing Date,
and thereafter subject to increase pursuant to Section 2.15 (but not, in any
event, in excess of Six 

- 1 -

Hundred
Million Dollars ($600,000,000.00) as set forth in Section 2.15) and reduction
pursuant to Section 2.06. 

                    “Agreement”
means this Second Amended and Restated Credit Agreement. 

                    “Alternative
Currency” means each of Euros, Canadian Dollars, Sterling, Swiss Francs,
Danish Krone, Swedish Krona, Yen and each other currency (other than Dollars)
that is approved in accordance with Section 1.05. 

                    “Alternative
Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable
Alternative Currency as determined by the Administrative Agent or the L/C
Issuer, as the case may be, at such time on the basis of the Spot Rate
(determined in respect of the most recent Revaluation Date) for the purchase of
such Alternative Currency with Dollars. 

                    “Applicable
Foreign Borrower Documents” has the meaning specified in Section 5.18(a). 

                    “Applicable
Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments
represented by such Lender’s Commitment at such time. If the commitment of each
Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02 or if the Aggregate
Commitments have expired, then the Applicable Percentage of each Lender shall
be determined based on the Applicable Percentage of such Lender most recently
in effect, giving effect to any subsequent assignments. The initial Applicable
Percentage of each Lender is set forth opposite the name of such Lender on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable. 

                    “Applicable
Rate” means the following percentages per annum, based upon the
Consolidated Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section 6.02(b): 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Pricing 

 Level

 	
  

 	
 
 Consolidated 

 Leverage Ratio

 	
  

 	
 
 Facility Fee

 	
  

 	
 For 
Eurocurrency

 Rate Loans

 	
  

 	
 Letter of 
Credit Fee

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 1

 	
  

 	
 >50%

 	
  

 	
 0.150%

 	
  

 	
 0.600%

 	
  

 	
 0.600%

 
	
 2

 	
  

 	
 < 50%, but >40%

 	
  

 	
 0.125%

 	
  

 	
 0.425%

 	
  

 	
 0.425%

 
	
 3

 	
  

 	
 < 40%, but >30%

 	
  

 	
 0.100%

 	
  

 	
 0.350%

 	
  

 	
 0.350%

 
	
 4

 	
  

 	
 <30%

 	
  

 	
 0.075%

 	
  

 	
 0.275%

 	
  

 	
 0.275%

 

                    Any
increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is delivered pursuant
to Section 6.02(b); provided, however, that if a Compliance
Certificate is not delivered when due in accordance with such Section, then
Pricing Level 1 shall apply as of the first Business Day after the date on
which such Compliance Certificate was required to have been delivered and shall
remain in effect until such time as the Compliance Certificate has been delivered
and the proper Pricing Level can be determined and implemented. The Applicable
Rate as in effect from the Closing Date through the date a Compliance
Certificate for the period ending September 30, 2007 is delivered shall be
determined based upon Pricing Level 3. 

- 2 -

                    “Applicable
Time” means, with respect to any borrowings and payments in any Alternative
Currency, the local time in the place of settlement for such Alternative
Currency as may be determined by the Administrative Agent or the L/C Issuer, as
the case may be, to be necessary for timely settlement on the relevant date in
accordance with normal banking procedures in the place of payment. 

                    “Applicant
Borrower” has the meaning specified in Section 2.14(b). 

                    “Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b)
an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender. 

                    “Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is
required by Section 10.06(b), and accepted by the Administrative Agent, in
substantially the form of Exhibit E or any other form approved by the
Administrative Agent. 

                    “Assured
Obligation” shall have the meaning set forth in the definition of
“Guarantee” in this Section 1.01. 

                    “Attributable
Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP, and (b) in
respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a capital lease. 

                    “Audited
Financial Statements” means the audited consolidated balance sheet of the
Company and its Subsidiaries for the fiscal year ended December 31, 2006, and
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of the Company and its Subsidiaries,
including the notes thereto. 

                    “Auto-Extension
Letter of Credit” has the meaning specified in Section 2.03(b)(iii). 

                    “Auto-Reinstatement
Letter of Credit” has the meaning specified in Section 2.03(b)(iv). 

                    “Availability
Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate
Commitments pursuant to Section 2.06, and (c) the date of termination of the
commitment of each Lender to make Loans and of the obligation of the L/C Issuer
to make L/C Credit Extensions pursuant to Section 8.02. 

                    “Bank
of America” means Bank of America, N.A. and its successors. 

                    “Base
Rate” means for any day a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in
effect for such day as publicly announced from time to time by Bank of America
as its “prime rate.” The “prime rate” is a rate set by Bank of America based
upon various factors including Bank of America’s costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate. Any 

- 3 -

change in such
rate announced by Bank of America shall take effect at the opening of business
on the day specified in the public announcement of such change. 

                    “Base
Rate Committed Loan” means a Committed Loan that is a Base Rate Loan. 

                    “Base
Rate Loan” means a Loan that bears interest based on the Base Rate. All
Base Rate Loans shall be denominated in Dollars. 

                    “Borrower”
and “Borrowers” each has the meaning specified in the introductory
paragraph hereto. 

                    “Borrower
Materials” has the meaning specified in Section 6.02. 

                    “Borrowing”
means a Committed Borrowing or a Swing Line Borrowing, as the context may
require. 

                    “Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office with respect to
Obligations denominated in Dollars is located and: 

	
  

 	
  

 
	
  

 	
           (a)
 if such day relates to any interest rate settings as to a Eurocurrency Rate
 Loan denominated in Dollars, any fundings, disbursements, settlements and
 payments in Dollars in respect of any such Eurocurrency Rate Loan, or any
 other dealings in Dollars to be carried out pursuant to this Agreement in
 respect of any such Eurocurrency Rate Loan, means any such day on which
 dealings in deposits in Dollars are conducted by and between banks in the
 London interbank eurodollar market;

 
	
  

 	
  

 
	
  

 	
           (b)
 if such day relates to any interest rate settings as to a Eurocurrency Rate
 Loan denominated in Euro, any fundings, disbursements, settlements and
 payments in Euro in respect of any such Eurocurrency Rate Loan, or any other
 dealings in Euro to be carried out pursuant to this Agreement in respect of
 any such Eurocurrency Rate Loan, means a TARGET Day;

 
	
  

 	
  

 
	
  

 	
           (c)
 if such day relates to any interest rate settings as to a Eurocurrency Rate
 Loan denominated in a currency other than Dollars or Euro, means any such day
 on which dealings in deposits in the relevant currency are conducted by and
 between banks in the London or other applicable offshore interbank market for
 such currency; and

 
	
  

 	
  

 
	
  

 	
           (d)
 if such day relates to any fundings, disbursements, settlements and payments
 in a currency other than Dollars or Euro in respect of a Eurocurrency Rate
 Loan denominated in a currency other than Dollars or Euro, or any other dealings
 in any currency other than Dollars or Euro to be carried out pursuant to this
 Agreement in respect of any such Eurocurrency Rate Loan (other than any
 interest rate settings), means any such day on which banks are open for
 foreign exchange business in the principal financial center of the country of
 such currency.

 

                    “Cash
Collateralize” has the meaning specified in Section 2.03(g)(iii). 

                    “Change
in Law” means the occurrence, after the date of this Agreement, of any of
the following: (a) the adoption or taking effect of any law, rule, regulation
or treaty, (b) any change in any law, rule, regulation or treaty or in the
administration, interpretation or application 

- 4 -

thereof by any
Governmental Authority or (c) the making or issuance of any request, guideline
or directive (whether or not having the force of law) by any Governmental
Authority. 

                    “Change
of Control” means an event or series of events by which: 

                    (a)
any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, but excluding any employee benefit plan of
such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such
plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Securities Exchange Act of 1934, except that a person or group shall be
deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire (such right, an “option right”), whether
such right is exercisable immediately or only after the passage of time),
directly or indirectly, of 50% or more of the equity securities of the Company
entitled to vote for members of the board of directors or equivalent governing
body of the Company on a fully-diluted basis (and taking into account all such
securities that such person or group has the right to acquire pursuant to any
option right); 

                    (b)
during any period of 24 consecutive months, a majority of the members of the
board of directors or other equivalent governing body of the Company cease to
be composed of individuals (i) who were members of that board or equivalent governing
body on the first day of such period, (ii) whose election or nomination to that
board or equivalent governing body was approved by individuals referred to in
clause (i) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body or (iii) whose
election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above constituting
at the time of such election or nomination at least a majority of that board or
equivalent governing body (excluding, in the case of both clause (ii) and
clause (iii), any individual whose initial nomination for, or assumption of
office as, a member of that board or equivalent governing body occurs as a
result of an actual or threatened solicitation of proxies or consents for the
election or removal of one or more directors by any person or group other than
a solicitation for the election of one or more directors by or on behalf of the
board of directors); or 

                    (c)
any Person or two or more Persons acting in concert shall have acquired by
contract or otherwise, or shall have entered into a contract or arrangement
that, upon consummation thereof, will result in its or their acquisition of the
power to exercise, directly or indirectly, a controlling influence over the
management or policies of the Company, or control over the equity securities of
the Company entitled to vote for members of the board of directors or
equivalent governing body of the Company on a fully-diluted basis (and taking
into account all such securities that such Person or group has the right to
acquire pursuant to any option right) representing 50% or more of the combined
voting power of such securities. 

                    “Closing
Date” means the first date all the conditions precedent in Section 4.01 are
satisfied or waived in accordance with Section 10.01. 

                    “Code”
means the Internal Revenue Code of 1986, as amended. 

                    “Commitment”
means, as to each Lender, its obligation to (a) make Committed Loans to the
Borrowers pursuant to Section 2.01 and, if and to the extent applicable,
Section 2.15, (b) purchase participations in L/C Obligations, and (c) purchase
participations in Swing Line Loans, in an aggregate principal amount at any one
time outstanding not to exceed the 

- 5 -

Dollar amount
set forth opposite such Lender’s name on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable, as such amount may be adjusted from time to time in accordance
with this Agreement. 

                    “Committed
Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type, in the same currency and, in the case of Eurocurrency Rate
Loans, having the same Interest Period made by each of the Lenders pursuant to
Section 2.01. 

                    “Committed
Loan” has the meaning specified in Section 2.01. 

                    “Committed
Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of
Eurocurrency Rate Loans, pursuant to Section 2.02(a), which, if in writing,
shall be substantially in the form of Exhibit A. 

                    “Company”
has the meaning specified in the introductory paragraph hereto. 

                    “Company
Guaranty” means the Company Guaranty made by the Company in favor of the
Administrative Agent and the Lenders, substantially in the form of Exhibit F.

                    “Compliance
Certificate” means a certificate substantially in the form of Exhibit D.

                    “Consolidated
Capitalization” means, as of any date of determination, an amount equal to
Shareholders’ Equity plus Consolidated Funded Indebtedness. 

                    “Consolidated
EBITDA” means, for any period, for the Company and its Subsidiaries on a
consolidated basis, the sum of (a) Consolidated Net Income for such period,
plus (b) Consolidated Interest Charges for such period, plus (c) consolidated
foreign, federal and state income tax expenses for such period, plus (d)
depreciation and amortization for such period, plus (e) extraordinary losses
for such period, minus (f) extraordinary gains for such period. 

                    “Consolidated
Funded Indebtedness” means, as of any date of determination, for the
Company and its Subsidiaries on a consolidated basis, the sum of (without
duplication) (a) the outstanding principal amount of all obligations, whether
current or long-term, for borrowed money (including Obligations hereunder) and
all obligations evidenced by bonds, debentures, notes, loan agreements or other
similar instruments, (b) all purchase money Indebtedness, (c) all direct
obligations arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments,
(d) all obligations in respect of the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of
business), (e) Attributable Indebtedness, (f) all liabilities secured by any
Lien (other than a Lien permitted pursuant to Section 7.01(j)) on any property
owned by the Company or any of its Subsidiaries, to the extent attributable to
its interest in such property, even though such liabilities had not been
assumed or neither the Company nor any of its Subsidiaries have become liable
for it; (g) all Guarantees with respect to outstanding Indebtedness of the
types specified in clauses (a) through (f) above of Persons other than the
Company or any Subsidiary, (h) all Indebtedness of the types referred to in
clauses (a) through (g) above of any partnership or joint venture (other than a
joint venture that is itself a corporation or limited liability company) in
which the Company or a Subsidiary is a general partner or joint venturer,
unless such Indebtedness is expressly made non-recourse to the Company and its
Subsidiaries, and (i) Deemed Debt. 

- 6 -

                    “Consolidated
Interest Charges” means, for any period, for the Company and its
Subsidiaries on a consolidated basis, the sum of interest expense (whether cash
or non-cash) determined in accordance with GAAP for the relevant period ended
on such date, including, in any event, interest expense with respect to
Indebtedness of the Company and its Subsidiaries, interest expense for the
relevant period that has been capitalized on the balance sheet and interest
expense with respect to any Deemed Debt. 

                    “Consolidated
Interest Coverage Ratio” means, as of any date of determination, the ratio
of (a) Consolidated EBITDA for the period of the immediately preceding four
full fiscal quarters, to (b) Consolidated Interest Charges for such period. 

                    “Consolidated
Leverage Ratio” means, as of any date of determination, the ratio of, (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated
Capitalization of the Companies and its Subsidiaries as of that date. 

                    “Consolidated
Net Income” means, for any period, for the Company and its Subsidiaries on
a consolidated basis, the net income of the Company and its Subsidiaries for
that period, as determined in accordance with GAAP. 

                    “Contractual
Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound. 

                    “Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling”
and “Controlled” have meanings correlative thereto. 

                    “Credit
Extension” means each of the following: (a) a Borrowing and (b) an L/C
Credit Extension. 

                    “Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally. 

                    “Deemed
Debt” means the amount of indebtedness incurred by the Company and its
consolidated Subsidiaries and any special purpose corporation or trust which is
an Affiliate of the Company or any of its Subsidiaries in connection with any
accounts receivable or inventory financing facility, whether or not shown on
the balance sheet of the Company or such Subsidiary in accordance with GAAP to
the extent not included in the definition of Indebtedness. For purposes of
determining the amount of Deemed Debt incurred by any Person in connection with
any accounts receivable or inventory financing transaction, the amount of all
contingent obligations of such Person shall be included as well as non-recourse
indebtedness incurred in connection with such transaction. Deemed Debt shall
not include operating leases. 

                    “Deemed
Guarantor” shall have the meaning set forth in the definition of “Guaranty
Equivalent” in this Section 1.01. 

                    “Deemed
Obligor” shall have the meaning set forth in the definition of “Guaranty
Equivalent” in this Section 1.01. 

- 7 -

                    “Default”
means any event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default. 

                    “Default
Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the
Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per
annum; provided, however, that with respect to a Eurocurrency
Rate Loan, the Default Rate shall be an interest rate equal to the interest
rate (including any Applicable Rate and any Mandatory Cost) otherwise
applicable to such Loan plus 2% per annum, and (b) when used with respect to
Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per
annum. 

                    “Defaulting
Lender” means any Lender that (a) has failed to fund any portion of the
Committed Loans, participations in L/C Obligations or participations in Swing
Line Loans required to be funded by it hereunder within one Business Day of the
date required to be funded by it hereunder, (b) has otherwise failed to pay
over to the Administrative Agent or any other Lender any other amount required
to be paid by it hereunder within one Business Day of the date when due, unless
the subject of a good faith dispute, or (c) has been deemed insolvent or become
the subject of a bankruptcy or insolvency proceeding. 

                    “Designated
Borrower” has the meaning specified in the introductory paragraph hereto. 

                    “Designated
Borrower Notice” has the meaning specified in Section 2.14(b). 

                    “Designated
Borrower Request and Assumption Agreement” has the meaning specified in
Section 2.14(b). 

                    “Disposition”
or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by
any Person, including any sale, assignment, transfer or other disposal, with or
without recourse, of any notes or accounts receivable or any rights and claims
associated therewith. 

                    “Documentation
Agents” has the meaning specified in the introductory paragraph hereto. 

                    “Dollar”
and “$” mean lawful money of the United States. 

                    “Dollar
Equivalent” means, at any time, (a) with respect to any amount denominated
in Dollars, such amount, and (b) with respect to any amount denominated in any
Alternative Currency, the equivalent amount thereof in Dollars as determined by
the Administrative Agent or the L/C Issuer, as the case may be, at such time on
the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of Dollars with such Alternative Currency. 

                    “Domestic
Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States. 

                    “Eligible
Assignee” means (a) a Lender; (b) an Affiliate of a Lender; and (c) any
other Person (other than a natural person) approved by (i) the Administrative
Agent, the L/C Issuer and the Swing Line Lender, and (ii) unless an Event of
Default has occurred and is continuing, the Company (each such approval not to
be unreasonably withheld or delayed); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include the Company or any of the
Company’s Affiliates or Subsidiaries; and provided further, however,
that an 

- 8 -

Eligible
Assignee shall include only a Lender, an Affiliate of a Lender or another
Person, which, through its Lending Offices, is capable of lending the
applicable Alternative Currencies to the relevant Borrowers without the
imposition of any Taxes or additional Taxes, as the case may be. 

                    “EMU”
means the economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992
and the Amsterdam Treaty of 1998. 

                    “EMU
Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European
currency. 

                    “Environmental
Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems. 

                    “Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Company, any other Loan Party or any of their respective
Subsidiaries directly or indirectly resulting from or based upon (a) violation
of any Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the release or threatened release of any Hazardous
Materials into the environment or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing. 

                    “Equity
Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the
warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests
in) such Person, all of the securities convertible into or exchangeable for
shares of capital stock of (or other ownership or profit interests in) such
Person or warrants, rights or options for the purchase or acquisition from such
Person of such shares (or such other interests), and all of the other ownership
or profit interests in such Person (including partnership, member or trust
interests therein), whether voting or nonvoting, and whether or not such
shares, warrants, options, rights or other interests are outstanding on any date
of determination. 

                    “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended. 

                    “ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with the Company within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code). 

                    “ERISA
Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Company or any ERISA Affiliate from a Pension Plan subject to
Section 4063 of ERISA during a plan year in which it was a substantial employer
(as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that
is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete
or partial withdrawal by the Company or any ERISA 

- 9 -

Affiliate from
a Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Company
or any ERISA Affiliate. 

                    “Euro”
and “EUR” mean the lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation. 

                    “Eurocurrency
Base Rate” has the meaning specified in the definition of Eurocurrency
Rate. 

                    “Eurocurrency
Rate” means for any Interest Period with respect to a Eurocurrency Rate
Loan, a rate per annum determined by the Administrative Agent pursuant to the
following formula: 

	
  

 	
  

 	
  

 	
  

 
	
 Eurocurrency Rate

 	
  

 	
 Eurocurrency Base Rate

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
 =

 	
  

 	
 1.00 – Eurocurrency Reserve Percentage

 	
  

 

                    Where,

                    “Eurocurrency
Base Rate” means, for such Interest Period: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (a)
 the applicable Screen Rate for such Interest Period; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (b)
 if the applicable Screen Rate shall not be available, the rate per annum
 determined by the Administrative Agent as the rate of interest at which
 deposits in the relevant currency for delivery on the first day of such
 Interest Period in Same Day Funds in the approximate amount of the
 Eurocurrency Rate Loan being made, continued or converted by Bank of America
 and with a term equivalent to such Interest Period would be offered by Bank
 of America’s London Branch (or other Bank of America branch or Affiliate) to
 major banks in the London or other offshore interbank market for such
 currency at their request at approximately 4:00 p.m. (London time) two
 Business Days prior to the first day of such Interest Period. 

 

                    “Eurocurrency
Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places)
in effect on such day, whether or not applicable to any Lender, under
regulations issued from time to time by the FRB for determining the maximum
reserve requirement (including any emergency, supplemental or other marginal
reserve requirement) with respect to Eurocurrency funding (currently referred
to as “Eurocurrency liabilities”). The Eurocurrency Rate for each outstanding
Eurocurrency Rate Loan shall be adjusted automatically as of the effective date
of any change in the Eurocurrency Reserve Percentage. 

                    “Eurocurrency
Rate Loan” means a Committed Loan that bears interest at a rate based on
the Eurocurrency Rate. Eurocurrency Rate Loans may be denominated in Dollars or
in an Alternative Currency. All Committed Loans denominated in an Alternative
Currency must be Eurocurrency Rate Loans. 

- 10 -

                    “Event
of Default” has the meaning specified in Section 8.01. 

                    “Excluded
Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any
obligation of any Borrower hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits taxes imposed by
the United States or any similar tax imposed by any other jurisdiction in which
such Borrower is located and (c) except as provided in the following sentence,
in the case of a Foreign Lender (other than an assignee pursuant to a request
by the Company under Section 10.13), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party hereto (or designates a new Lending Office) or is attributable to such
Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to comply with Section 3.01(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a
new Lending Office (or assignment), to receive additional amounts from the applicable
Borrower with respect to such withholding tax pursuant to Section 3.01(a).
Notwithstanding anything to the contrary contained in this definition,
“Excluded Taxes” shall not include any withholding tax imposed at any time on
payments made by or on behalf of a Foreign Borrower to any Lender hereunder or
under any other Loan Document, provided that such Lender shall have
complied with the last paragraph of Section 3.01(e). 

                    “Existing
Letters of Credit” means those previously issued irrevocable letters of
credit which remain outstanding on the date hereof and which are set forth on Schedule
1.01A hereto. 

                    “Federal
Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such next
succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by
the Administrative Agent. 

                    “Fee
Letters” means (i) the letter agreement, dated July 13, 2007, among the
Company, the Administrative Agent and Banc of America Securities LLC and (ii)
the letter agreement, dated July 16, 2007, among the Company, J.P. Morgan
Securities Inc. and JPMorgan Chase Bank N.A. 

                    “Foreign
Borrower” means a Borrower that is a Foreign Subsidiary. 

                    “Foreign
Lender” means, with respect to any Borrower, any Lender that is organized
under the laws of a jurisdiction other than that in which such Borrower is
resident for tax purposes. For purposes of this definition, the United States,
each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction. 

- 11 -

                    “Foreign
Subsidiary” means any Subsidiary that is organized under the laws of a
jurisdiction other than the United States, a State thereof or the District of
Columbia. 

                    “FRB”
means the Board of Governors of the Federal Reserve System of the United
States. 

                    “Fund”
means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business. 

                    “GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and pronouncements
of the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied. 

                    “Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank). 

                    “Granting
Lender” has the meaning specified in Section 10.06(h). 

                    “Guarantee”:
A Person (the “Deemed Guarantor”) shall be deemed to be subject to a Guarantee
in respect of any indebtedness, obligation or liability (the “Assured
Obligation”) of another Person (the “Deemed Obligor”) if the Deemed Guarantor
directly or indirectly guarantees, becomes surety for, endorses, assumes,
agrees to indemnify the Deemed Obligor against, or otherwise agrees, becomes or
remains liable (contingently or otherwise) for, such Assured Obligation.
Without limitation, a Guarantee shall be deemed to exist if a Deemed Guarantor
agrees, becomes or remains liable (contingently or otherwise), directly or
indirectly: (a) to purchase or assume, or to supply funds for the payment,
purchase or satisfaction of, an Assured Obligation, (b) to make any loan,
advance, capital contribution or other investment in, or to purchase or lease
any property or services from, a Deemed Obligor (i) to maintain the solvency of
the Deemed Obligor, (ii) to enable the Deemed Obligor to meet any other
financial condition, (iii) to enable the Deemed Obligor to satisfy any Assured
Obligation or to make any Restricted Payment or any other payment, or (iv) to
assure the holder of such Assured Obligation against loss, (c) to purchase or
lease property or services from the Deemed Obligor regardless of the
nondelivery of or failure to furnish of such property or services, or (d) in
respect of any other transaction the effect of which is to assure the payment
or performance (or payment of damages or other remedy in the event of
nonpayment or nonperformance) of any Assured Obligation. 

                    “Guaranties”
means the Company Guaranty and the Subsidiary Guaranties. 

                    “Hazardous
Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law. 

- 12 -

                    “Honor
Date” has the meaning specified in Section 2.03(c). 

                    “Increase
Effective Date” has the meaning specified in Section 2.15(d). 

                    “Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (a)
 all obligations of such Person for borrowed money and all obligations of such
 Person evidenced by bonds, debentures, notes, loan agreements or other
 similar instruments;

 
	
  

 	
  

 
	
  

 	
           (b)
 all direct or contingent obligations of such Person arising under letters of
 credit (including standby and commercial but excluding standby letters of
 credit issued for the account of such Person in connection with bids on
 proposed contracts by such Person), bankers’ acceptances, bank guaranties,
 surety bonds and similar instruments;

 
	
  

 	
  

 
	
  

 	
           (c)
 all obligations of such Person to pay the deferred purchase price of property
 or services (other than trade accounts payable in the ordinary course of
 business);

 
	
  

 	
  

 
	
  

 	
           (d)
 indebtedness (excluding prepaid interest thereon) secured by a Lien on
 property owned or being purchased by such Person (including indebtedness
 arising under conditional sales or other title retention agreements), whether
 or not such indebtedness shall have been assumed by such Person or is limited
 in recourse;

 
	
  

 	
  

 
	
  

 	
           (e)
 capital leases and Synthetic Lease Obligations;

 
	
  

 	
  

 
	
  

 	
           (f)
 all obligations of such Person to purchase, redeem, retire, defease or
 otherwise make any payment in respect of any Equity Interest in such Person
 or any other Person, valued, in the case of a redeemable preferred interest,
 at the greater of its voluntary or involuntary liquidation preference plus
 accrued and unpaid dividends; and

 
	
  

 	
  

 
	
  

 	
           (g)
 all Guarantees of such Person in respect of any of the foregoing.

 

                    For
all purposes hereof, the Indebtedness of any Person shall include the
Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person
is a general partner or a joint venturer, unless such Indebtedness is expressly
made non-recourse to such Person. The amount of any capital lease or Synthetic
Lease Obligation as of any date shall be deemed to be the amount of
Attributable Indebtedness in respect thereof as of such date. 

                    “Indemnified
Taxes” means Taxes other than Excluded Taxes. 

                    “Indemnitees”
has the meaning specified in Section 10.04(b). 

                    “Intangible
Assets” means assets that are considered to be intangible assets under
GAAP, including customer lists, goodwill, computer software, copyrights, trade
names, trademarks, patents, franchises, licenses, unamortized deferred charges,
unamortized debt discount and capitalized research and development costs. 

                    “Interest
Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date;
provided, however, that if any Interest Period for a Eurocurrency
Rate Loan exceeds three months, the 

- 13 -

respective
dates that fall every three months after the beginning of such Interest Period
shall also be Interest Payment Dates; and (b) as to any Base Rate Loan
(including a Swing Line Loan), the last Business Day of each March, June,
September and December and the Maturity Date. 

                    “Interest
Period” means, as to each Eurocurrency Rate Loan, the period commencing on
the date such Eurocurrency Rate Loan is disbursed or converted to or continued
as a Eurocurrency Rate Loan and ending on the date one, two, three or six
months thereafter, as selected by the Company in its Committed Loan Notice provided
that: 

	
  

 	
  

 
	
  

 	
           (1)
 any Interest Period that would otherwise end on a day that is not a Business
 Day shall be extended to the next succeeding Business Day unless such
 Business Day falls in another calendar month, in which case such Interest
 Period shall end on the next preceding Business Day; 

 
	
  

 	
  

 
	
  

 	
           (2)
 any Interest Period that begins on the last Business Day of a calendar month
 (or on a day for which there is no numerically corresponding day in the
 calendar month at the end of such Interest Period) shall end on the last
 Business Day of the calendar month at the end of such Interest Period; and 

 
	
  

 	
  

 
	
  

 	
           (3)
 no Interest Period shall extend beyond the Maturity Date. 

 

                    “Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
capital stock or other securities of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person and any arrangement pursuant to which the investor Guarantees
Indebtedness of such other Person, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that
constitute a business unit. For purposes of covenant compliance, the amount of
any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment. 

                    “IP
Rights” has the meaning specified in Section 5.17. 

                    “IRS”
means the United States Internal Revenue Service. 

                    “ISP”
means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance). 

                    “Issuer
Documents” means with respect to any Letter of Credit, the Letter Credit
Application, and any other document, agreement and instrument entered into by
the L/C Issuer and the Company (or any Subsidiary) or in favor the L/C Issuer
and relating to any such Letter of Credit. 

                    “Joint
Bookrunner” means Banc of America Securities LLC and J.P. Morgan Securities
Inc. 

                    “Joint
Lead Arrangers” means Banc of America Securities LLC and J.P. Morgan
Securities Inc., each in its capacity as Joint Lead Arranger. 

                    “Laws”
means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial 

- 14 -

precedents or
authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, directed
duties, requests, licenses, authorizations and permits of, and agreements with,
any Governmental Authority, in each case whether or not having the force of
law. 

                    “L/C
Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable
Percentage. All L/C Advances shall be denominated in Dollars. 

                    “L/C
Borrowing” means an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or
refinanced as a Committed Borrowing. All L/C Borrowings shall be denominated in
Dollars. 

                    “L/C
Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount
thereof. 

                    “L/C
Issuer” means Bank of America in its capacity as issuer of Letters of
Credit or any successor issuer of Letters of Credit and any other Lender, as
issuer of Letters of Credit hereunder. 

                    “L/C
Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For
purposes of computing the amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.08. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may
still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP,
such Letter of Credit shall be deemed to be “outstanding” in the amount so
remaining available to be drawn. 

                    “Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender. 

                    “Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Company and the
Administrative Agent. 

                    “Letter
of Credit” means any standby or commercial letter of credit issued
hereunder and shall include the Existing Letters of Credit. Letters of Credit
may be issued in Dollars or in an Alternative Currency. 

                    “Letter
of Credit Application” means an application and agreement for the issuance
or amendment of a Letter of Credit in the form from time to time in use by the
L/C Issuer. 

                    “Letter
of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next
preceding Business Day). 

                    “Letter
of Credit Fee” has the meaning specified in Section 2.03(i). 

- 15 -

                    “Letter
of Credit Sublimit” means an amount equal to Two Hundred Million Dollars
($200,000,000.00). The Letter of Credit Sublimit is part of, and not in
addition to, the Aggregate Commitments.

                    
“Lien” means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge, or preference,
priority or other security interest or preferential arrangement in the nature
of a security interest of any kind or nature whatsoever (including any
conditional sale or other title retention agreement, any easement, right of way
or other encumbrance on title to real property, and any financing lease having
substantially the same economic effect as any of the foregoing).

                    
“Loan” means an extension of credit by a Lender to a Borrower under
Article 2 in the form of a Committed Loan or a Swing Line Loan.

                    
“Loan Documents” means this Agreement, each Designated Borrower Request
and Assumption Agreement, each Note, each Issuer Document, the Fee Letters and
the Guaranties.

                    
“Loan Parties” means, collectively, the Company, each Subsidiary
Guarantor and each Designated Borrower.

                    
“Mandatory Cost” means, with respect to any period, the percentage rate
per annum determined in accordance with Schedule 1.01. 

                    
“Material Adverse Effect” means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, liabilities
(actual or contingent), or condition (financial or otherwise) of the Company
and its Subsidiaries taken as a whole; (b) a material impairment of the ability
of any Loan Party to perform its material obligations under any Loan Document
to which it is a party; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan
Document to which it is a party.

                    
“Material Subsidiary” means (a) Curtiss-Wright Controls, Inc., Metal
Improvement Company, LLC, Curtiss-Wright Flow Control Corporation,
Curtiss-Wright Flow Control Service Corporation, Curtiss-Wright
Electro-Mechanical Corporation, Dy 4 Systems, Inc. and Curtiss Wright
Antriebstechnik GmbH, and (b) any other Subsidiary of the Company (i) which
together with its Subsidiaries (determined on a consolidated basis), has assets
with a book value greater than or equal to 20% of the total assets of the
Company and its Subsidiaries on a consolidated basis, as of the end of the most
recently completed fiscal quarter for which financial information is then
available, (ii) which, together with its Subsidiaries (determined on a
consolidated basis), has greater than 20% of the net revenues of the Company
and Subsidiaries on a consolidated basis for the most recent fiscal quarter for
which financial information is then available, all determined in accordance
with GAAP, or (iii) designated as a Material Subsidiary pursuant to Section
7.12, or a wholly-owned Subsidiary of the Borrower that is reasonably
acceptable to the Administrative Agent and that becomes a Designated Borrower
pursuant to Section 2.14(b). 

                    
“Maturity Date” means August 10, 2012.

                    
“Multiemployer Plan” means any employee benefit plan of the type
described in Section 4001(a)(3) of ERISA, to which the Company or any ERISA
Affiliate makes or is 

- 16 -

obligated to
make contributions, or during the preceding five plan years, has made or been
obligated to make contributions.

                    
“Non-Extension Notice Date” has the meaning specified in Section
2.03(b)(iii).

                    
“Non-Reinstatement Deadline” has the meaning specified in Section
2.03(b)(iv).

                    
“Note” means a promissory note made by a Borrower in favor of a Lender
evidencing Loans made by such Lender to such Borrower, substantially in the
form of Exhibit C.

                    
“Obligations” means all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan or Letter of Credit, in any such
case whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising
and including interest and fees that accrue after the commencement by or
against any Loan Party or any Affiliate thereof of any proceeding under any
Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such
proceeding.

                    
“Organization Documents” means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

                    
“Other Taxes” means all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any
payment made hereunder or under any other Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.

                    
“Outstanding Amount” means (i) with respect to Committed Loans on any
date, the Dollar Equivalent amount of the aggregate outstanding principal
amount thereof after giving effect to any borrowings and prepayments or
repayments of such Committed Loans occurring on such date; (ii) with respect to
Swing Line Loans on any date, the aggregate outstanding principal amount
thereof after giving effect to any borrowings and prepayments or repayments of
such Swing Line Loans occurring on such date; and (iii) with respect to any L/C
Obligations on any date, the Dollar Equivalent amount of the aggregate
outstanding amount of such L/C Obligations on such date after giving effect to
any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result
of any reimbursements by the Company of Unreimbursed Amounts.

                    
“Overnight Rate” means, for any day, (a) with respect to any amount
denominated in Dollars, the greater of (i) the Federal Funds Rate and (ii) an
overnight rate determined by the Administrative Agent, the L/C Issuer, or the
Swing Line Lender, as the case may be, in accordance with banking industry
rules on interbank compensation, and (b) with respect to any amount denominated
in an Alternative Currency, the rate of interest per annum at which 

- 17 -

overnight
deposits in the applicable Alternative Currency, in an amount approximately
equal to the amount with respect to which such rate is being determined, would
be offered for such day by a branch or Affiliate of Bank of America in the
applicable offshore interbank market for such currency to major banks in such
interbank market. 

                    
“Participant” has the meaning specified in Section 10.06(d).

                    
“Participating Member State” means each state so described in any EMU
Legislation.

                    
“PBGC” means the Pension Benefit Guaranty Corporation.

                    
“Pension Plan” means any “employee pension benefit plan” (as such term
is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by the Company or
any ERISA Affiliate or to which the Company or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any
time during the immediately preceding five plan years.

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

                    
“Plan” means any “employee benefit plan” (as such term is defined in
Section 3(3) of ERISA) established by the Company or, with respect to any such
plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA
Affiliate.

                    
“Platform” has the meaning specified in Section 6.02.

                    
“Prior Agreement” has the meaning specified in the introductory
paragraphs hereto.

                    
“Private Placement” means the 5.13% Series A Senior Guaranteed Notes due
September 25, 2010, the 5.74% Series B Senior Guaranteed Notes due September
25, 2013, and the 5.51% Series C Senior Guaranteed Notes due December 1, 2017.

                    
“Public Lender” has the meaning specified in Section 6.02.

                    
“Purchase Money Security Interest” has the meaning specified in Section
7.01(i).

                    
“Register” has the meaning specified in Section 10.06(c).

                    
“Related Parties” means, with respect to any Person, such Person’s
Affiliates and the partners, directors, officers, employees, agents and advisors
of such Person and of such Person’s Affiliates.

                    
“Reportable Event” means any of the events set forth in Section 4043(c)
of ERISA, other than events for which the 30 day notice period has been waived.

                    
“Request for Credit Extension” means (a) with respect to a Borrowing,
conversion or continuation of Committed Loans, a Committed Loan Notice, (b)
with respect to an L/C Credit Extension, a Letter of Credit Application, and
(c) with respect to a Swing Line Loan, a Swing Line Loan Notice.

                    
“Required Lenders” means, as of any date of determination, Lenders
having more than 50% of the Aggregate Commitments or, if the commitment of each
Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated 

- 18 -

pursuant to
Section 8.02(a), Lenders holding in the aggregate more than 50% of the Total
Outstandings (with the aggregate amount of each Lender’s risk participation and
funded participation in L/C Obligations and Swing Line Loans being deemed
“held” by such Lender for purposes of this definition); provided, that
the Commitment of, and the portion of the Total Outstandings held or deemed
held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.

                    
“Responsible Officer” means the chief executive officer, president,
chief financial officer, corporate controller, corporate secretary, assistant
secretary, treasurer or assistant treasurer of a Loan Party. Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and such
Responsible Officer shall be conclusively presumed to have acted on behalf of
such Loan Party.

                    
“Restricted Payment” means any dividend or other distribution (whether
in cash, securities or other property) with respect to any capital stock or
other Equity Interest of the Company or any Subsidiary, or any payment (whether
in cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such capital stock or other Equity Interest,
or on account of any return of capital to the Company’s stockholders, partners
or members (or the equivalent Person thereof).

                    
“Revaluation Date” means (a) with respect to any Loan, each of the
following: (i) each date of a Borrowing of a Eurocurrency Rate Loan denominated
in an Alternative Currency, (ii) each date of a continuation of a Eurocurrency
Rate Loan denominated in an Alternative Currency pursuant to Section 2.02(a),
and (iii) such additional dates as the Administrative Agent shall determine or
the Required Lenders shall require; and (b) with respect to any Letter of
Credit, each of the following: (i) each date of issuance of a Letter of Credit
denominated in an Alternative Currency, (ii) each date of an amendment of any
such Letter of Credit having the effect of increasing the amount thereof
(solely with respect to the increased amount), (iii) each date of any payment
by the L/C Issuer under any Letter of Credit denominated in an Alternative
Currency, (iv) in the case of the Existing Letters of Credit, as set forth on Schedule
1.01A, and (v) such additional dates as the Administrative Agent or the L/C
Issuer shall determine or the Required Lenders shall require. 

                    
“Same Day Funds” means (a) with respect to disbursements and payments in
Dollars, immediately available funds, and (b) with respect to disbursements and
payments in an Alternative Currency, same day or other funds as may be
determined by the Administrative Agent or the L/C Issuer, as the case may be,
to be customary in the place of disbursement or payment for the settlement of
international banking transactions in the relevant Alternative Currency.

                    
“Screen Rate” means, for any Interest Period: 

	
  

 	
  

 
	
  

 	
           (a)
 the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA
 LIBOR”), as published by Reuters (or other commercially available source
 providing quotations of BBA LIBOR as designated by the Administrative Agent
 from time to time) at approximately 11:00 a.m. (London time) two Business
 Days prior to the first day of such Interest Period, for deposits in the
 relevant currency (for delivery on the first day of such Interest Period)
 with a term equivalent to such Interest Period; or 

 

- 19 -

	
  

 	
  

 
	
  

 	
           (b)
 if the rate referenced in the preceding clause is not available for any
 reason, the rate per annum equal to the rate determined by the Administrative
 Agent to be the rate at which deposits in the relevant currency for delivery
 on the first day of such Interest Period in same day funds in the approximate
 amount of the Eurocurrency Rate Loan being made, continued or converted by
 the Lender serving as the Administrative Agent and with a term equivalent to
 such Interest Period would be offered by such Lender’s London Branch to major
 banks in the London interbank eurodollar market at their request
 approximately 11:00 a.m. (London Time) two Business Days prior to the
 commencement of such Interest Period.

 

                    
“SEC” means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.

                    
“Shareholders’ Equity” means, as of any date of determination,
consolidated shareholders’ equity of the Company and its Subsidiaries as of
that date determined in accordance with GAAP.

                    
“SPC” has the meaning specified in Section 10.06(h).

                    
“Special Notice Currency” means at any time an Alternative Currency,
other than the currency of a country that is a member of the Organization for
Economic Cooperation and Development at such time located in North America or
Europe.

                    
“Spot Rate” for a currency means the rate determined by the Administrative
Agent or the L/C Issuer, as applicable, to be the rate quoted by the Person
acting in such capacity as the spot rate for the purchase by such Person of
such currency with another currency through its principal foreign exchange
trading office at approximately 11:00 a.m. on the date two Business Days prior
to the date as of which the foreign exchange computation is made; provided that
the Administrative Agent or the L/C Issuer may obtain such spot rate from
another financial institution designated by the Administrative Agent or the L/C
Issuer if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency; and provided further
that the L/C Issuer may use such spot rate quoted on the date as of which the
foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency. 

                    
“Sterling” and “£” mean the lawful currency of the United
Kingdom.

                    
“Subsidiary” of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for
the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or
both, by such Person. Unless otherwise specified, all references herein to a
“Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries
of the Company.

                    
“Subsidiary Guarantors” means collectively the Borrowers (other than the
Company and any Foreign Subsidiaries), Curtiss-Wright Electro-Mechanical
Corporation, any other Material Subsidiary and any other Subsidiary that is an
issuer or guarantor of the Private Placement; provided; however that no Foreign
Subsidiary of the Borrower shall be considered a guarantor if such a guaranty
would result in any adverse tax consequence to the Company or 

- 20 -

such Foreign
Subsidiary unless such Subsidiary is an issuer or is, or is obligated to
become, a guarantor of the Private Placement.

                    
“Subsidiary Guaranty” means the Subsidiary Guaranty made by the
Subsidiary Guarantors in favor of the Administrative Agent and the Lenders,
substantially in the form of Exhibit G. 

                    
“Substantial Portion” means, with respect to the properties of the
Company and its consolidated Subsidiaries, property which (a) represents more
than 20% of the consolidated assets of the Company and its Subsidiaries, as
would be shown in the consolidated financial statements of the Company and its
Subsidiaries as at the end of the fiscal quarter next preceding the date on
which such determination is made, or (b) is responsible for more than 10% of
the consolidated net revenues or of the Consolidated Net Income of the Company and
its Subsidiaries for the 12-month period ending as of the end of the fiscal
quarter next preceding the date of determination. For purposes of the
calculation of Consolidated Net Income for purposes of the definition of
Substantial Portion only, there shall be excluded therefrom any extraordinary
gains during such period and there shall be included therein any extraordinary
losses during such period.

                    
“Swap Contract” means (a) any and all rate swap transactions, basis
swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or bond index swaps or options or forward
bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor
transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

                    
“Swing Line” means the revolving credit facility made available by the
Swing Line Lender pursuant to Section 2.04.

                    
“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant
to Section 2.04(b).

                    
“Swing Line Lender” means Bank of America in its capacity as provider of
Swing Line Loans, or any successor swing line lender hereunder.

                    
“Swing Line Loan” has the meaning specified in Section 2.04(a).

                    
“Swing Line Loan Notice” means a notice of a Swing Line Borrowing
pursuant to Section 2.04(b), which, if in writing, shall be substantially in
the form of Exhibit B.

                    
“Swing Line Sublimit” means an amount equal to the lesser of (a)
$25,000,000.00 or (b) the Aggregate Commitments. The Swing Line Sublimit is
part of, and not in addition to, the Aggregate Commitments.

- 21 -

                    
“Syndication Agent” has the meaning specified in the introductory
paragraph hereto.

                    “Synthetic
Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an
agreement for the use or possession of property creating obligations that do
not appear on the balance sheet of such Person but which, upon the insolvency or
bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

                    
“TARGET Day” means any day on which the Trans-European Automated
Real-time Gross Settlement Express Transfer (TARGET) payment system (or, if
such payment system ceases to be operative, such other payment system (if any)
determined by the Administrative Agent to be a suitable replacement) is open
for the settlement of payments in Euro.

                    
“Taxes” means all present or future taxes, levies, imposts, duties,
deductions, withholdings, assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties
applicable thereto.

                    
“Threshold Amount” means $10,000,000.00.

                    
“Total Outstandings” means the aggregate Outstanding Amount of all Loans
and all L/C Obligations.

                    
“Type” means, with respect to a Committed Loan, its character as a Base
Rate Loan or a Eurocurrency Rate Loan.

                    
“Unfunded Pension Liability” means the excess of a Pension Plan’s
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Pension Plan’s assets, determined in accordance with the assumptions
used for funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year.

                    
“United States” and “U.S.” mean the United States of America.

                    
“Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

          1.02
Other Interpretive Provisions. With reference to this
Agreement and each other Loan Document, unless otherwise specified herein or in
such other Loan Document:

                    (a)
The definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” The word “will” shall be construed
to have the same meaning and effect as the word “shall.” Unless the
context requires otherwise, (i) any definition of or reference to any
agreement, instrument or other document (including any Organization Document)
shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth
herein or in any other Loan Document), (ii) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (iii) the
words “herein,” “hereof” and “hereunder,” and words of similar
import when used in any Loan Document, shall be construed to refer to such Loan
Document in its entirety and not to any particular provision thereof, (iv) all
references in a Loan Document to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and

- 22 -

Schedules to,
the Loan Document in which such references appear, (v) any reference to any law
shall include all statutory and regulatory provisions consolidating, amending
replacing or interpreting such law and any reference to any law or regulation
shall, unless otherwise specified, refer to such law or regulation as amended,
modified or supplemented from time to time, and (vi) the words “asset”
and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

                    (b) Section headings herein and in the other
Loan Documents are included for convenience of reference only and shall not
affect the interpretation of this Agreement or any other Loan Document.

          1.03
Accounting Terms. 

                    (a)
Generally. All accounting terms not specifically or completely defined
herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted
pursuant to this Agreement shall be prepared in conformity with, GAAP applied
on a consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements, except
as otherwise specifically prescribed herein. 

                    (b)
Changes in GAAP. If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan
Document, and either the Company or the Required Lenders shall so request, the
Administrative Agent, the Lenders and the Company shall negotiate in good faith
to amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (i) such ratio or requirement shall
continue to be computed in accordance with GAAP prior to such change therein
and (ii) the Company shall provide to the Administrative Agent and the Lenders
financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations
of such ratio or requirement made before and after giving effect to such change
in GAAP.

          1.04
Exchange Rates; Currency Equivalents. 

                    (a)
The Administrative Agent or the L/C Issuer, as applicable, shall determine the
Spot Rates as of each Revaluation Date to be used for calculating Dollar
Equivalent amounts of Credit Extensions and Outstanding Amounts denominated in
Alternative Currencies. Such Spot Rates shall become effective as of such
Revaluation Date and shall be the Spot Rates employed in converting any amounts
between the applicable currencies until the next Revaluation Date to occur.
Except for purposes of financial statements delivered by Loan Parties hereunder
or calculating financial covenants hereunder or except as otherwise provided
herein, the applicable amount of any currency (other than Dollars) for purposes
of the Loan Documents shall be such Dollar Equivalent amount as so determined
by the Administrative Agent or the L/C Issuer, as applicable.

                    (b)
Wherever in this Agreement in connection with a Committed Borrowing,
conversion, continuation or prepayment of a Eurocurrency Rate Loan or the
issuance, amendment or extension of a Letter of Credit, an amount, such as a
required minimum or multiple amount, is expressed in Dollars, but such
Committed Borrowing, Eurocurrency Rate 

- 23 -

Loan or Letter
of Credit is denominated in an Alternative Currency, such amount shall be the
relevant Alternative Currency Equivalent of such Dollar amount (rounded to the
nearest unit of such Alternative Currency, with 0.5 of a unit being rounded
upward), as determined by the Administrative Agent or the L/C Issuer, as the
case may be.

          1.05
Additional Alternative Currencies. 

                    (a)
The Company may from time to time request that Eurocurrency Rate Loans be made
and/or Letters of Credit be issued in a currency other than those specifically
listed in the definition of “Alternative Currency;” provided that such
requested currency is a lawful currency (other than Dollars) that is readily
available and freely transferable and convertible into Dollars. In the case of
any such request with respect to the making of Eurocurrency Rate Loans, such
request shall be subject to the approval of the Administrative Agent and the
Lenders; and in the case of any such request with respect to the issuance of
Letters of Credit, such request shall be subject to the approval of the
Administrative Agent and the L/C Issuer. 

                    (b)
Any such request shall be made to the Administrative Agent not later than 12
noon, three (3) Business Days prior to the date of the desired Credit Extension
(or such other time or date as may be agreed by the Administrative Agent and,
in the case of any such request pertaining to Letters of Credit, the L/C
Issuer, in its or their sole discretion). In the case of any such request
pertaining to Eurocurrency Rate Loans, the Administrative Agent shall promptly
notify each Lender thereof; and in the case of any such request pertaining to
Letters of Credit, the Administrative Agent shall promptly notify the L/C
Issuer thereof. Each Lender (in the case of any such request pertaining to
Eurocurrency Rate Loans) or the L/C Issuer (in the case of a request pertaining
to Letters of Credit) shall notify the Administrative Agent, not later than 12
noon, one (1) Business Day after receipt of such request whether it consents,
in its sole discretion, to the making of Eurocurrency Rate Loans or the
issuance of Letters of Credit, as the case may be, in such requested currency. 

                    (c)
Any failure by a Lender or the L/C Issuer, as the case may be, to respond to
such request within the time period specified in the preceding sentence shall
be deemed to be a refusal by such Lender or the L/C Issuer, as the case may be,
to permit Eurocurrency Rate Loans to be made or Letters of Credit to be issued
in such requested currency. If the Administrative Agent and all the Lenders
consent to making Eurocurrency Rate Loans in such requested currency, the
Administrative Agent shall so notify the Company and such currency shall
thereupon be deemed for all purposes to be an Alternative Currency hereunder
for purposes of any Committed Borrowings of Eurocurrency Rate Loans; and if the
Administrative Agent and the L/C Issuer consent to the issuance of Letters of
Credit in such requested currency, the Administrative Agent shall so notify the
Company and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Letter of Credit issuances.
If the Administrative Agent shall fail to obtain consent to any request for an
additional currency under this Section 1.05, the Administrative Agent shall
promptly so notify the Company. Any specified currency of an Existing Letter of
Credit that is neither Dollars nor one of the Alternative Currencies
specifically listed in the definition of “Alternative Currency” shall be deemed
an Alternative Currency with respect to such Existing Letter of Credit only. 

- 24 -

          1.06 Change
of Currency. 

                    (a)
Each obligation of the Borrowers to make a payment denominated in the national
currency unit of any member state of the European Union that adopts the Euro as
its lawful currency after the date hereof shall be redenominated into Euro at
the time of such adoption (in accordance with the EMU Legislation). If, in
relation to the currency of any such member state, the basis of accrual of
interest expressed in this Agreement in respect of that currency shall be
inconsistent with any convention or practice in the London interbank market for
the basis of accrual of interest in respect of the Euro, such expressed basis
shall be replaced by such convention or practice with effect from the date on which
such member state adopts the Euro as its lawful currency; provided that
if any Committed Borrowing in the currency of such member state is outstanding
immediately prior to such date, such replacement shall take effect, with
respect to such Committed Borrowing, at the end of the then current Interest
Period.

                    (b)
Each provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be
appropriate to reflect the adoption of the Euro by any member state of the
European Union and any relevant market conventions or practices relating to the
Euro.

                    (c)
Each provision of this Agreement also shall be subject to such reasonable
changes of construction as the Administrative Agent may from time to time
specify to be appropriate to reflect a change in currency of any other country
and any relevant market conventions or practices relating to the change in
currency.

          1.07 Times
of Day. Unless otherwise specified, all references herein to times
of day shall be references to Eastern time (daylight or standard, as
applicable).

          1.08 Letter
of Credit Amounts. Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the Dollar Equivalent of the stated amount of such Letter of
Credit in effect at such time; provided, however, that with respect to
any Letter of Credit that, by its terms or the terms of any Issuer Document
related thereto, provides for one or more automatic increases in the stated
amount thereof, the amount of such Letter of Credit shall be deemed to be the
Dollar Equivalent of the maximum stated amount of such Letter of Credit after
giving effect to all such increases, whether or not such maximum stated amount
is in effect at such time.

Article 2 

THE COMMITMENTS AND CREDIT EXTENSIONS

          2.01
Committed Loans. Subject to the terms and conditions
set forth herein, each Lender severally agrees to make loans (each such loan, a
“Committed Loan”) to the Borrowers in Dollars or in one or more
Alternative Currencies from time to time, on any Business Day during the
Availability Period, in an aggregate amount not to exceed at any time
outstanding the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Committed Borrowing, (i) the Total Outstandings
shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding
Amount of the Committed Loans of any Lender, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus
such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line
Loans, shall not exceed such Lender’s Commitment. Within the limits of each
Lender’s Commitment, and subject to the other terms and conditions hereof, the
Borrowers may borrow under this Section 2.01, prepay 

- 25 -

under Section
2.05, and reborrow under this Section 2.01. Committed Loans may be Base Rate
Loans or Eurocurrency Rate Loans, as further provided herein.

          2.02
Borrowings, Conversions and Continuations of Committed Loans. 

                    (a)
Each Committed Borrowing, each conversion of Committed Loans from one Type to
the other, and each continuation of Eurocurrency Rate Loans shall be made upon
the Company’s irrevocable notice to the Administrative Agent, which may be
given by facsimile or by telephone. Each such notice must be received by the
Administrative Agent not later than 1:00 p.m. (i) three Business Days prior to
the requested date of any Borrowing of, conversion to or continuation of
Eurocurrency Rate Loans denominated in Dollars or of any conversion of
Eurocurrency Rate Loans denominated in Dollars to Base Rate Committed Loans,
(ii) four (4) Business Days (or five Business Days in the case of a Special
Notice Currency) prior to the requested date of any Borrowing or continuation
of Eurocurrency Rate Loans denominated in Alternative Currencies, and (iii) on
the requested date of any Borrowing of Base Rate Committed Loans. Each telephonic
notice by the Company pursuant to this Section 2.02(a) must be confirmed
promptly by delivery to the Administrative Agent of a written Committed Loan
Notice, appropriately completed and signed by a Responsible Officer of the
Company. Each Borrowing of, conversion to or continuation of Eurocurrency Rate
Loans shall be in a principal amount of $5,000,000.00 or a whole multiple of
$1,000,000.00 in excess thereof. Except as provided in Sections 2.03(c) and
2.04(c), each Committed Borrowing of or conversion to Base Rate Committed Loans
shall be in a principal amount of $500,000.00 or a whole multiple of
$100,000.00 in excess thereof. Each Committed Loan Notice (whether telephonic
or written) shall specify (i) whether the Company is requesting a Committed Borrowing,
a conversion of Committed Loans from one Type to the other, or a continuation
of Eurocurrency Rate Loans, (ii) the requested date of the Borrowing,
conversion or continuation, as the case may be (which shall be a Business Day),
(iii) the principal amount of Committed Loans to be borrowed, converted or
continued, (iv) the Type of Committed Loans to be borrowed or to which existing
Committed Loans are to be converted, (v) if applicable, the duration of the
Interest Period with respect thereto, (vi) the currency of the Committed Loans
to be borrowed, and (vii) if applicable, the Designated Borrower. If the
Company fails to specify a currency in a Committed Loan Notice requesting a
Borrowing, then the Committed Loans so requested shall be made in Dollars. If
the Company fails to specify a Type of Committed Loan in a Committed Loan
Notice or if the Company fails to give a timely notice requesting a conversion
or continuation, then the applicable Committed Loans shall be made as, or
converted to, Base Rate Loans; provided, however, that in the case of a
failure to timely request a continuation of Committed Loans denominated in an
Alternative Currency, such Loans shall be continued as Eurocurrency Rate Loans
in their original currency with an Interest Period of one month. Any automatic
conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurocurrency Rate
Loans. If the Company requests a Borrowing of, conversion to, or continuation
of Eurocurrency Rate Loans in any such Committed Loan Notice, but fails to
specify an Interest Period, it will be deemed to have specified an Interest
Period of one month. No Committed Loan may be converted into or continued as a
Committed Loan denominated in a different currency, but instead must be prepaid
in the original currency of such Committed Loan and reborrowed in the other
currency. 

                    (b)
Following receipt of a Committed Loan Notice, the Administrative Agent shall
promptly notify each Lender of the amount (and currency) of its Applicable
Percentage of 

- 26 -

the applicable
Committed Loans, and if no timely notice of a conversion or continuation is
provided by the Company, the Administrative Agent shall notify each Lender of
the details of any automatic conversion to Base Rate Loans or continuation of
Committed Loans denominated in a currency other than Dollars, in each case as
described in the preceding subsection. In the case of a Committed Borrowing,
each Lender shall make the amount of its Committed Loan available to the
Administrative Agent in Same Day Funds at the Administrative Agent’s Office for
the applicable currency not later than 2:00 p.m., in the case of any Committed
Loan denominated in Dollars, and not later than the Applicable Time specified
by the Administrative Agent in the case of any Committed Loan in an Alternative
Currency, in each case on the Business Day specified in the applicable
Committed Loan Notice. Upon satisfaction of the applicable conditions set forth
in Section 4.02 (and, if such Borrowing is the initial Credit Extension,
Section 4.01), the Administrative Agent shall make all funds so received
available to the Company or the other applicable Borrower in like funds as
received by the Administrative Agent either by (i) crediting the account of
such Borrower on the books of Bank of America with the amount of such funds or
(ii) wire transfer of such funds, in each case in accordance with instructions
provided to (and reasonably acceptable to) the Administrative Agent by the
Company; provided, however, that if, on the date the Committed Loan
Notice with respect to such Borrowing denominated in Dollars is given by the
Company, there are L/C Borrowings outstanding, then the proceeds of such
Borrowing, first, shall be applied to the payment in full of any such L/C
Borrowings, and, second, shall be made available to the applicable
Borrower as provided above. 

                    (c)
Except as otherwise provided herein, a Eurocurrency Rate Loan may be continued
or converted only on the last day of an Interest Period for such Eurocurrency
Rate Loan. During the existence of a Default, no Loans may be requested as,
converted to or continued as Eurocurrency Rate Loans (whether in Dollars or any
Alternative Currency) without the consent of the Required Lenders, and the
Required Lenders may demand that any or all of the then outstanding
Eurocurrency Rate Loans denominated in an Alternative Currency be prepaid, or
redenominated into Dollars in the amount of the Dollar Equivalent thereof, on
the last day of the then current Interest Period with respect thereto. 

                    (d)
The Administrative Agent shall promptly notify the Company and the Lenders of
the interest rate applicable to any Interest Period for Eurocurrency Rate Loans
upon determination of such interest rate. At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Company and the Lenders
of any change in Bank of America’s prime rate used in determining the Base Rate
promptly following the public announcement of such change. 

                    (e)
After giving effect to all Committed Borrowings, all conversions of Committed
Loans from one Type to the other, and all continuations of Committed Loans as
the same Type, there shall not be more than ten Interest Periods in effect with
respect to Committed Loans.

          2.03 Letters
of Credit. 

                    (a)
The Letter of Credit Commitment. 

                              (i)
Subject to the terms and conditions set forth herein, (A) the L/C Issuer
agrees, in reliance upon the agreements of the Lenders set forth in this
Section 2.03, (1) from time to time on any Business Day during the period from
the Closing Date until the Letter 

- 27 -

of Credit
Expiration Date, to issue Letters of Credit denominated in Dollars or in one or
more Alternative Currencies for the account of the Company or its Subsidiaries,
and to amend or extend Letters of Credit previously issued by it, in accordance
with subsection (b) below, and (2) to honor drawings under the Letters of
Credit; and (B) the Lenders severally agree to participate in Letters of Credit
issued for the account of the Company or its Subsidiaries and any drawings
thereunder; provided that after giving effect to any L/C Credit Extension with
respect to any Letter of Credit, (x) the Total Outstandings shall not exceed
the Aggregate Commitments, (y) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations
shall not exceed the Letter of Credit Sublimit. Each request by the Company for
the issuance or amendment of a Letter of Credit shall be deemed to be a
representation by the Company that the L/C Credit Extension so requested
complies with the conditions set forth in the provisos to the preceding
sentence. Within the foregoing limits, and subject to the terms and conditions
hereof, the Company’s ability to obtain Letters of Credit shall be fully
revolving, and accordingly the Company may, during the foregoing period, obtain
Letters of Credit to replace Letters of Credit that have expired or that have
been drawn upon and reimbursed. All Existing Letters of Credit shall be deemed
to have been issued pursuant hereto, and from and after the Closing Date shall
be subject to and governed by the terms and conditions hereof. 

                              (ii)
The L/C Issuer shall not issue or amend any Letter of Credit, if the expiry
date of such requested or amended Letter of Credit would occur after the Letter
of Credit Expiration Date, unless all the Lenders have approved such expiry
date.

                              (iii)
The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if: 

                                        (A)
any order, judgment or decree of any Governmental Authority or arbitrator shall
by its terms purport to enjoin or restrain the L/C Issuer from issuing such
Letter of Credit, or any Law applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over the L/C Issuer shall prohibit, or request that
the L/C Issuer refrain from, the issuance of letters of credit generally or
such Letter of Credit in particular or shall impose upon the L/C Issuer with
respect to such Letter of Credit any restriction, reserve or capital
requirement (for which the L/C Issuer is not otherwise compensated hereunder)
not in effect on the Closing Date, or shall impose upon the L/C Issuer any
unreimbursed loss, cost or expense which was not applicable on the Closing Date
and which the L/C Issuer in good faith deems material to it;

                                        (B)
except as otherwise agreed by the Administrative Agent and the L/C Issuer, such
Letter of Credit is to be denominated in a currency other than Dollars or an
Alternative Currency;

                                        (C)
the L/C Issuer does not as of the issuance date of such requested Letter of
Credit issue Letters of Credit in the requested currency;

                                        (D)
such Letter of Credit contains any provisions for automatic reinstatement of
the stated amount after any drawing thereunder; or 

- 28 -

                                        (E)
a default of any Lender’s obligations to fund under Section 2.03(c) exists or
any Lender is at such time a Defaulting Lender hereunder, unless the L/C Issuer
has entered into satisfactory arrangements with the Company or such Lender to
eliminate the L/C Issuer’s risk with respect to such Lender.

                              (iv)
The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not
be permitted at such time to issue such Letter of Credit in its amended form
under the terms hereof. 

                              (v)
The L/C Issuer shall be under no obligation to amend any Letter of Credit if
(A) the L/C Issuer would have no obligation at such time to issue such Letter
of Credit in its amended form under the terms hereof, or (B) the beneficiary of
such Letter of Credit does not accept the proposed amendment to such Letter of
Credit. 

                              (vi)
The L/C Issuer shall act on behalf of the Lenders with respect to any Letters
of Credit issued by it and the documents associated therewith, and the L/C
Issuer shall have all of the benefits and immunities (A) provided to the
Administrative Agent in Article 9 with respect to any acts taken or omissions
suffered by the L/C Issuer in connection with Letters of Credit issued by it or
proposed to be issued by it and Issuer Documents pertaining to such Letters of
Credit as fully as if the term “Administrative Agent” as used in Article 9
included the L/C Issuer with respect to such acts or omissions, and (B) as
additionally provided herein with respect to the L/C Issuer. 

                    (b)
Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension
Letters of Credit.

                              (i)
Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Company delivered to the L/C Issuer (with a copy to the
Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of the Company.
Such Letter of Credit Application must be received by the L/C Issuer and the
Administrative Agent (A) not later than 12 noon at least two Business Days
prior to the proposed issuance date or date of amendment, as the case may be,
of any Letter of Credit denominated in Dollars, and (B) not later than 12 noon
at least three Business Days prior to the proposed issuance date or date of
amendment, as the case may be, of any Letter of Credit denominated in an
Alternative Currency; or in each case such later date and time as the
Administrative Agent and the L/C Issuer may agree in a particular instance in
their sole discretion. In the case of a request for an initial issuance of a
Letter of Credit, such Letter of Credit Application shall specify in form and
detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount and
currency thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the L/C Issuer may require. In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A)
the Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and
(D) such other matters as the L/C Issuer may require. Additionally, the Company
shall furnish to the L/C Issuer and the Administrative Agent such other
documents and information pertaining to such requested Letter of Credit
issuance or

- 29 -

 amendment, including any Issuer Documents, as
the L/C Issuer or the Administrative Agent may require.

                              (ii)
Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application
from the Company and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof. Unless the L/C Issuer has received written notice
from any Lender, the Administrative Agent or any Loan Party, at least one
Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained
in Article 4 shall not then be satisfied, then, subject to the terms and
conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter
of Credit for the account of the Company (or the applicable Subsidiary) or
enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices.
Immediately upon the issuance of each Letter of Credit, each Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from
the L/C Issuer a risk participation in such Letter of Credit in an amount equal
to the product of such Lender’s Applicable Percentage times the amount of such
Letter of Credit. 

                              (iii)
If the Company so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic extension provisions (each, an “Auto-Extension Letter
of Credit”); provided that any such Auto-Extension Letter of Credit must permit
the L/C Issuer to prevent any such extension at least once in each twelve-month
period (commencing with the date of issuance of such Letter of Credit) by
giving prior notice to the beneficiary thereof not later than a day (the
“Non-Extension Notice Date”) in each such twelve-month period to be agreed upon
at the time such Letter of Credit is issued. Unless otherwise directed by the
L/C Issuer, the Company shall not be required to make a specific request to the
L/C Issuer for any such extension. Once an Auto-Extension Letter of Credit has
been issued, the Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the extension of such Letter of Credit at any
time to an expiry date not later than the Letter of Credit Expiration Date;
provided, however, that the L/C Issuer shall not permit any such extension if
(A) the L/C Issuer has determined that it would not be permitted, or would have
no obligation, at such time to issue such Letter of Credit in its revised form
(as extended) under the terms hereof (by reason of the provisions of clause
(ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received notice
(which may be by telephone or in writing) on or before the day that is five
Business Days before the Non-Extension Notice Date (1) from the Administrative
Agent that the Required Lenders have elected not to permit such extension or
(2) from the Administrative Agent, any Lender or the Company that one or more
of the applicable conditions specified in Section 4.02 is not then satisfied,
and in each such case directing the L/C Issuer not to permit such extension.

                              (iv)
If the Company so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that permits the automatic reinstatement of all or a portion of the
stated amount thereof after any drawing thereunder (each, an
“Auto-Reinstatement Letter of Credit”). Unless otherwise directed by the L/C
Issuer, the Company shall not be required to make a specific request to the L/C
Issuer to permit such reinstatement. Once an Auto-Reinstatement Letter of
Credit has been issued, except as provided in the following sentence, the
Lenders shall be deemed to have 

- 30 -

authorized
(but may not require) the L/C Issuer to reinstate all or a portion of the
stated amount thereof in accordance with the provisions of such Letter of
Credit. Notwithstanding the foregoing, if such Auto-Reinstatement Letter of
Credit permits the L/C Issuer to decline to reinstate all or any portion of the
stated amount thereof after a drawing thereunder by giving notice of such
non-reinstatement within a specified number of days after such drawing (the
“Non-Reinstatement Deadline”), the L/C Issuer shall not permit such
reinstatement if it has received a notice (which may be by telephone or in
writing) on or before the day that is five Business Days before the
Non-Reinstatement Deadline (A) from the Administrative Agent that the Required
Lenders have elected not to permit such reinstatement or (B) from the
Administrative Agent, any Lender or the Company that one or more of the
applicable conditions specified in Section 4.02 is not then satisfied (treating
such reinstatement as an L/C Credit Extension for purposes of this clause) and,
in each case, directing the L/C Issuer not to permit such reinstatement.

                              (v)
Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the L/C Issuer will also deliver to the Company and the Administrative
Agent a true and complete copy of such Letter of Credit or amendment.

                    (c)
Drawings and Reimbursements; Funding of Participations.

                              (i)
Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the L/C Issuer shall notify the Company
and the Administrative Agent thereof. In the case of a Letter of Credit
denominated in an Alternative Currency, the Company shall reimburse the L/C
Issuer in such Alternative Currency, unless (A) the L/C Issuer (at its option)
shall have specified in such notice that it will require reimbursement in
Dollars, or (B) in the absence of any such requirement for reimbursement in
Dollars, the Company shall have notified the L/C Issuer promptly following
receipt of the notice of drawing that the Company will reimburse the L/C Issuer
in Dollars. In the case of any such reimbursement in Dollars of a drawing under
a Letter of Credit denominated in an Alternative Currency, the L/C Issuer shall
notify the Company of the Dollar Equivalent of the amount of the drawing
promptly following the determination thereof. Not later than 12 noon on the
date of any payment by the L/C Issuer under a Letter of Credit to be reimbursed
in Dollars, or the Applicable Time on the date of any payment by the L/C Issuer
under a Letter of Credit to be reimbursed in an Alternative Currency (each such
date, an “Honor Date”), the Company shall reimburse the L/C Issuer through the
Administrative Agent in an amount equal to the amount of such drawing and in
the applicable currency. If the Company fails to so reimburse the L/C Issuer by
such time, the Administrative Agent shall promptly notify each Lender of the
Honor Date, the amount of the unreimbursed drawing (expressed in Dollars in the
amount of the Dollar Equivalent thereof in the case of a Letter of Credit
denominated in an Alternative Currency) (the “Unreimbursed Amount”), and the
amount of such Lender’s Applicable Percentage thereof. In such event, the
Company shall be deemed to have requested a Committed Borrowing of Base Rate
Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed
Amount, without regard to the minimum and multiples specified in Section
2.02(a) for the principal amount of Base Rate Loans, but subject to the amount
of the unutilized portion of the Aggregate Commitments and the conditions set
forth in Section 4.02 (other than the delivery of a Committed Loan Notice). Any
notice given by the L/C Issuer or the Administrative Agent pursuant to this
Section 2.03(c)(i) may be given by telephone if immediately confirmed in
writing; provided that the lack

- 31 -

of such an
immediate confirmation shall not affect the conclusiveness or binding effect of
such notice. 

                              (ii)
Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds
available to the Administrative Agent for the account of the L/C Issuer, in
Dollars, at the Administrative Agent’s Office for Dollar-denominated payments
in an amount equal to its Applicable Percentage of the Unreimbursed Amount not
later than 1:00 p.m. on the Business Day specified in such notice by the
Administrative Agent, whereupon, subject to the provisions of Section
2.03(c)(iii), each Lender that so makes funds available shall be deemed to have
made a Base Rate Committed Loan to the Company in such amount. The Administrative
Agent shall remit the funds so received to the L/C Issuer in Dollars.

                              (iii)
With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in
Section 4.02 cannot be satisfied or for any other reason, the Company shall be
deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of
the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be
due and payable on demand (together with interest) and shall bear interest at
the Default Rate. In such event, each Lender’s payment to the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall
be deemed payment in respect of its participation in such L/C Borrowing and
shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

                              (iv)
Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any
Letter of Credit, interest in respect of such Lender’s Applicable Percentage of
such amount shall be solely for the account of the L/C Issuer.

                              (v)
Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse
the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by
this Section 2.03(c), shall be absolute and unconditional and shall not be
affected by any circumstance, including (A) any setoff, counterclaim,
recoupment, defense or other right which such Lender may have against the L/C
Issuer, the Company, any Subsidiary or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Committed Loans
pursuant to this Section 2.03(c) is subject to the conditions set forth in
Section 4.02 (other than delivery by the Company of a Committed Loan Notice).
No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the Company to reimburse the L/C Issuer for the amount of any
payment made by the L/C Issuer under any Letter of Credit, together with
interest as provided herein. 

                              (vi)
If any Lender fails to make available to the Administrative Agent for the
account of the L/C Issuer any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.03(c) by the time
specified in Section 2.03(c)(ii), the L/C Issuer shall be entitled to recover
from such Lender (acting through the Administrative Agent), on demand, such
amount with interest thereon for the period from the date such payment is
required to the date on which such payment is immediately available to the L/C
Issuer at a rate per annum equal to the applicable Overnight Rate from time to
time in effect. A certificate of 

- 32 -

the L/C Issuer
submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (vi) shall be conclusive absent manifest error.

                    (d)
Repayment of Participations. 

                              (i)
At any time after the L/C Issuer has made a payment under any Letter of Credit
and has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.03(c), if the Administrative Agent
receives for the account of the L/C Issuer any payment in respect of the
related Unreimbursed Amount or interest thereon (whether directly from the
Company or otherwise, including proceeds of Cash Collateral applied thereto by
the Administrative Agent), the Administrative Agent will distribute to such
Lender its Applicable Percentage thereof (appropriately adjusted, in the case
of interest payments, to reflect the period of time during which such Lender’s
L/C Advance was outstanding) in Dollars and in the same funds as those received
by the Administrative Agent. 

                              (ii)
If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of
the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the L/C Issuer in its discretion), each Lender shall
pay to the Administrative Agent for the account of the L/C Issuer its
Applicable Percentage thereof on demand of the Administrative Agent, plus interest
thereon from the date of such demand to the date such amount is returned by
such Lender, at a rate per annum equal to the applicable Overnight Rate from
time to time in effect. The obligations of the Lenders under this clause shall
survive the payment in full of the Obligations and the termination of this
Agreement. 

                    (e)
Obligations Absolute. The obligation of the Company to reimburse the L/C
Issuer for each drawing under each Letter of Credit and to repay each L/C
Borrowing shall be absolute, unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all
circumstances, including the following: 

                              (i)
any lack of validity or enforceability of such Letter of Credit, this
Agreement, or any other Loan Document; 

                              (ii)
the existence of any claim, counterclaim, setoff, defense or other right that
the Company or any Subsidiary may have at any time against any beneficiary or
any transferee of such Letter of Credit (or any Person for whom any such
beneficiary or any such transferee may be acting), the L/C Issuer or any other
Person, whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument
relating thereto, or any unrelated transaction; 

                              (iii)
any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit; 

                              (iv)
any payment by the L/C Issuer under such Letter of Credit against presentation
of a draft or certificate that does not strictly comply with the terms of such
Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any 

- 33 -

transferee of
such Letter of Credit, including any arising in connection with any proceeding
under any Debtor Relief Law; 

                              (v)
any adverse change in the relevant exchange rates or in the availability of the
relevant Alternative Currency to the Company or any Subsidiary or in the
relevant currency markets generally; or 

                              (vi)
any other circumstance or happening whatsoever, whether or not similar to any
of the foregoing, including any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Company or any
Subsidiary.

The Company
shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance
with the Company’s instructions or other irregularity, the Company will
immediately notify the L/C Issuer. The Company shall be conclusively deemed to
have waived any such claim against the L/C Issuer and its correspondents unless
such notice is given as aforesaid. 

                    (f)
Role of L/C Issuer. Each Lender and the Company agree that, in paying
any drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document. None of the L/C Issuer,
the Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable to any
Lender for (i) any action taken or omitted in connection herewith at the
request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence
or willful misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document. The Company hereby assumes all risks of the acts or omissions
of any beneficiary or transferee with respect to its use of any Letter of
Credit; provided, however, that this assumption is not intended to, and
shall not, preclude the Company’s pursuing such rights and remedies as it may
have against the beneficiary or transferee at law or under any other agreement.
None of the L/C Issuer, the Administrative Agent, any of their respective
Related Parties nor any correspondent, participant or assignee of the L/C
Issuer shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.03(e); provided, however, that
anything in such clauses to the contrary notwithstanding, the Company may have
a claim against the L/C Issuer, and the L/C Issuer may be liable to the
Company, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Company which the Company
proves were caused by the L/C Issuer’s willful misconduct or gross negligence
or the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary,
and the L/C Issuer shall not be responsible for the validity or sufficiency of
any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any reason. 

- 34 -

                    (g)
Cash Collateral. (i) Upon the request of the Administrative Agent, (A)
if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (B) if,
as of the Letter of Credit Expiration Date, any L/C Obligation for any reason
remains outstanding, the Company shall, in each case, immediately Cash
Collateralize the then Outstanding Amount of all L/C Obligations.

                              (i)
In addition, if the Administrative Agent notifies the Company at any time that
the Outstanding Amount of all L/C Obligations at such time exceeds 105% of the
Letter of Credit Sublimit then in effect, then, within two Business Days after
receipt of such notice, the Company shall Cash Collateralize the L/C
Obligations in an amount equal to the amount by which the Outstanding Amount of
all L/C Obligations exceeds the Letter of Credit Sublimit. 

                              (ii)
The Administrative Agent may, at any time and from time to time after the
initial deposit of Cash Collateral pursuant to Section 2.03(g)(i), request that
additional Cash Collateral be provided in order to protect against the results
of exchange rate fluctuations. 

                              (iii)
Sections 2.05(c) and 8.02(c) set forth certain additional requirements to
deliver Cash Collateral hereunder. For purposes of this Section 2.03, Section
2.05(c) and Section 8.02(c), “Cash Collateralize” means to pledge and deposit
with or deliver to the Administrative Agent, for the benefit of the L/C Issuer
and the Lenders, as collateral for the L/C Obligations, cash or deposit account
balances pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the L/C Issuer (which documents are hereby consented
to by the Lenders). Derivatives of such term have corresponding meanings. The
Company hereby grants to the Administrative Agent, for the benefit of the L/C
Issuer and the Lenders, a security interest in all such cash, deposit accounts
and all balances therein and all proceeds of the foregoing. Cash Collateral
shall be maintained in blocked, non-interest bearing deposit accounts at Bank
of America.

                    (h)
Applicability of ISP and UCP. Unless otherwise expressly agreed by the
L/C Issuer and the Company when a Letter of Credit is issued (including any
such agreement applicable to an Existing Letter of Credit), (i) the rules of
the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the
Uniform Customs and Practice for Documentary Credits, as most recently
published by the International Chamber of Commerce at the time of issuance
shall apply to each commercial Letter of Credit.

                    (i)
Letter of Credit Fees. The Company shall pay to the Administrative Agent
for the account of each Lender in accordance with its Applicable Percentage, in
Dollars, a Letter of Credit fee (the “Letter of Credit Fee”) in an
amount equal to the Applicable Rate times the Dollar Equivalent of the
daily amount available to be drawn under such Letter of Credit. For purposes of
computing the daily amount available to be drawn under any Letter of Credit,
the amount of such Letter of Credit shall be determined in accordance with Section
1.08. Letter of Credit Fees shall be (i) computed on a quarterly basis in
arrears and (ii) due and payable on the first Business Day after the end of
each March, June, September and December, commencing with the first such date
to occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand. If there is any change in the
Applicable Rate during any quarter, the daily amount available to be drawn
under each Letter of Credit shall be computed and multiplied by the Applicable
Rate separately for each period during such quarter that such Applicable Rate
was in effect. Notwithstanding anything to the contrary contained 

- 35 -

herein, upon
the request of the Required Lenders, while any Event of Default exists, all
Letter of Credit Fees shall accrue at the Default Rate. 

                    (j)
Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.
The Company shall pay directly to the applicable L/C Issuer for Letters of
Credit issued after the date hereof for such L/C Issuer’s own account, in
Dollars, a fronting fee (i) with respect to each commercial Letter of Credit,
in an amount equal to .125% times the Dollar Equivalent of the amount of such
Letter of Credit, and payable upon the issuance thereof, (ii) with respect to
any amendment of a commercial Letter of Credit increasing the amount of such
Letter of Credit, at a rate separately agreed between the Company and the L/C
Issuer, computed on the Dollar Equivalent of the amount of such increase, and
payable upon the effectiveness of such amendment, and (iii) with respect to
each standby Letter of Credit, at the per annum rate of .125%, computed on the
Dollar Equivalent of the daily amount available to be drawn under such Letter
of Credit on a quarterly basis in arrears, and due and payable on the first
Business Day after the end of each March, June, September and December,
commencing with the first such date to occur after the issuance of such Letter
of Credit, on the Letter of Credit Expiration Date and thereafter on demand.
For purposes of computing the daily amount available to be drawn under any
Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.08. In addition, the Company shall pay directly to
the L/C Issuer for its own account, in Dollars, the customary issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of the L/C Issuer relating to letters of credit as from time to time
in effect. Such customary fees and standard costs and charges are due and
payable on demand and are nonrefundable. 

                    (k)
Conflict with Issuer Documents. In the event of any conflict between the
terms hereof and the terms of any Issuer Document, the terms hereof shall
control. 

                    (l)
Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter
of Credit issued or outstanding hereunder is in support of any obligations of,
or is for the account of, a Subsidiary, the Company shall be obligated to
reimburse the L/C Issuer hereunder for any and all drawings under such Letter
of Credit. The Company hereby acknowledges that the issuance of Letters of
Credit for the account of Subsidiaries inures to the benefit of the Company, and
that the Company’s business derives substantial benefits from the businesses of
such Subsidiaries.

                    (m)
Not Bankers Acceptances. Nothing contained herein, shall be deemed to or
shall cause a Letter of Credit issued hereunder or an unreimbursed draw
thereunder to be or become a bankers acceptance.

          2.04 Swing
Line Loans.

                    (a)
The Swing Line. Subject to the terms and conditions set forth herein,
the Swing Line Lender agrees, in reliance upon the agreements of the other
Lenders set forth in this Section 2.04, to make loans in Dollars (each such
loan, a “Swing Line Loan”) to the Company from time to time on any
Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit,
notwithstanding the fact that such Swing Line Loans, when aggregated with the
Applicable Percentage of the Outstanding Amount of Committed Loans and L/C
Obligations of the Lender acting as Swing Line Lender, may exceed the amount of
such Lender’s Commitment; provided, however, that after giving effect to
any Swing Line Loan, (i) the Total Outstandings shall not exceed the 

- 36 -

Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of
any Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Commitment, and provided, further, that the Company shall not
use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line
Loan. Within the foregoing limits, and subject to the other terms and
conditions hereof, the Company may borrow under this Section 2.04, prepay under
Section 2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall
be a Base Rate Loan. Immediately upon the making of a Swing Line Loan, each
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the Swing Line Lender a risk participation in such Swing Line
Loan in an amount equal to the product of such Lender’s Applicable Percentage
times the amount of such Swing Line Loan. 

                    (b)
Borrowing Procedures. Each Swing Line Borrowing shall be made upon the
Company’s irrevocable notice to the Swing Line Lender and the Administrative
Agent, which may be given by telephone. Each such notice must be received by
the Swing Line Lender and the Administrative Agent not later than 2:00 p.m. on
the requested borrowing date, and shall specify (i) the amount to be borrowed,
which shall be a minimum of $500,000.00 or a whole multiple of $100,000.00 in
excess thereof, and (ii) the requested borrowing date, which shall be a
Business Day. Each such telephonic notice must be confirmed promptly by
delivery to the Swing Line Lender and the Administrative Agent of a written
Swing Line Loan Notice, appropriately completed and signed by a Responsible
Officer of the Company. Promptly after receipt by the Swing Line Lender of any
telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has also received such Swing Line Loan Notice and, if not, the Swing Line Lender
will notify the Administrative Agent (by telephone or in writing) of the
contents thereof. Unless the Swing Line Lender has received notice (by
telephone or in writing) from the Administrative Agent (including at the
request of any Lender) prior to 2:00 p.m. on the date of the proposed Swing
Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line
Loan as a result of the limitations set forth in the proviso to the first
sentence of Section 2.04(a), or (B) that one or more of the applicable
conditions specified in Article 4 is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender will, not later than 3:00
p.m. on the borrowing date specified in such Swing Line Loan Notice, make the
amount of its Swing Line Loan available to the Company at its office by
crediting the account of the Company on the books of the Swing Line Lender in
Same Day Funds. 

                    (c)
Refinancing of Swing Line Loans. 

                              (i)
The Swing Line Lender at any time in its sole and absolute discretion may
request, on behalf of the Company (which hereby irrevocably authorizes the
Swing Line Lender to so request on its behalf), that each Lender make a Base
Rate Committed Loan in an amount equal to such Lender’s Applicable Percentage
of the amount of Swing Line Loans then outstanding. Such request shall be made
in writing (which written request shall be deemed to be a Committed Loan Notice
for purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the unutilized portion of the
Aggregate Commitments and the conditions set forth in Section 4.02. The Swing
Line Lender shall furnish the Company with a copy of the applicable Committed
Loan Notice promptly after delivering 

- 37 -

such notice to
the Administrative Agent. Each Lender shall make an amount equal to its
Applicable Percentage of the amount specified in such Committed Loan Notice
available to the Administrative Agent in Same Day Funds for the account of the
Swing Line Lender at the Administrative Agent’s Office for Dollar-denominated
payments not later than 2:00 p.m. on the day specified in such Committed Loan
Notice, whereupon, subject to Section 2.04(c)(ii), each Lender that so makes
funds available shall be deemed to have made a Base Rate Committed Loan to the
Company in such amount. The Administrative Agent shall remit the funds so
received to the Swing Line Lender. 

                              (ii)
If for any reason any Swing Line Loan cannot be refinanced by such a Committed
Borrowing in accordance with Section 2.04(c)(i), the request for Base Rate
Committed Loans submitted by the Swing Line Lender as set forth herein shall be
deemed to be a request by the Swing Line Lender that each of the Lenders fund
its risk participation in the relevant Swing Line Loan and each Lender’s
payment to the Administrative Agent for the account of the Swing Line Lender pursuant
to Section 2.04(c)(i) shall be deemed payment in respect of such participation.

                              (iii)
If any Lender fails to make available to the Administrative Agent for the
account of the Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.04(c) by the time
specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to
recover from such Lender (acting through the Administrative Agent), on demand,
such amount with interest thereon for the period from the date such payment is
required to the date on which such payment is immediately available to the
Swing Line Lender at a rate per annum equal to the applicable Overnight Rate
from time to time in effect. A certificate of the Swing Line Lender submitted
to any Lender (through the Administrative Agent) with respect to any amounts
owing under this clause (iii) shall be conclusive absent manifest error.

                              (iv)
Each Lender’s obligation to make Committed Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall be
absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the Swing Line Lender, the Company or any
other Person for any reason whatsoever, (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not similar
to any of the foregoing; provided, however, that each Lender’s
obligation to make Committed Loans pursuant to this Section 2.04(c) is subject
to the conditions set forth in Section 4.02. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Company
to repay Swing Line Loans, together with interest as provided herein. 

                    (d)
Repayment of Participations. 

                              (i)
At any time after any Lender has purchased and funded a risk participation in a
Swing Line Loan, if the Swing Line Lender receives any payment on account of
such Swing Line Loan, the Swing Line Lender will distribute to such Lender its
Applicable Percentage of such payment (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Lender’s
risk participation was funded) in the same funds as those received by the Swing
Line Lender. 

                              (ii)
If any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line
Lender 

- 38 -

under any of
the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the Swing Line Lender in its discretion), each
Lender shall pay to the Swing Line Lender its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such
demand to the date such amount is returned, at a rate per annum equal to the
applicable Overnight Rate. The Administrative Agent will make such demand upon
the request of the Swing Line Lender. The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement. 

                    (e)
Interest for Account of Swing Line Lender. The Swing Line Lender shall
be responsible for invoicing the Company for interest on the Swing Line Loans.
Until each Lender funds its Base Rate Committed Loan or risk participation pursuant
to this Section 2.04 to refinance such Lender’s Applicable Percentage of any
Swing Line Loan, interest in respect of such Applicable Percentage shall be
solely for the account of the Swing Line Lender. 

                    (f)
Payments Directly to Swing Line Lender. The Company shall make all
payments of principal and interest in respect of the Swing Line Loans directly
to the Swing Line Lender.

          2.05
Prepayments 

                    (a)
Each Borrower may, upon notice from the Company to the Administrative Agent, at
any time or from time to time voluntarily prepay Committed Loans in whole or in
part without premium or penalty; provided that (i) such notice must be
received by the Administrative Agent not later than 12 noon (A) three Business
Days prior to any date of prepayment of Eurocurrency Rate Loans denominated in
Dollars, (B) four Business Days (or five, in the case of prepayment of Loans
denominated in Special Notice Currencies) prior to any date of prepayment of
Eurocurrency Rate Loans denominated in Alternative Currencies, and (C) on the
date of prepayment of Base Rate Committed Loans; (ii) any prepayment of
Eurocurrency Rate Loans denominated in Dollars shall be in a principal amount
of $5,000,000.00, or a whole multiple of $500,000.00 in excess thereof (iii)
any prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies
shall be in a minimum principal amount of $500,000.00; or a whole multiple of
$500,000.00 in excess thereof and (iv) any prepayment of Base Rate Committed
Loans shall be in a principal amount of $500,000.00 or a whole multiple of
$100,000.00 in excess thereof or, in each case, if less, the entire principal
amount thereof then outstanding. Each such notice shall specify the date and
amount of such prepayment and the Type(s) of Committed Loans to be prepaid and,
if Eurocurrency Loans are to be prepaid, the Interest Period(s) of such Loans.
The Administrative Agent will promptly notify each Lender of its receipt of
each such notice, and of the amount of such Lender’s Applicable Percentage of
such prepayment. If such notice is given by the Company, the applicable
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein. Any prepayment
of a Eurocurrency Rate Loan shall be accompanied by all accrued interest on the
amount prepaid, together with any additional amounts required pursuant to
Section 3.05. Each such prepayment shall be applied to the Committed Loans of
the Lenders in accordance with their respective Applicable Percentages.

                    (b)
The Company may, upon notice to the Swing Line Lender (with a copy to the
Administrative Agent), at any time or from time to time, voluntarily prepay
Swing Line Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Swing Line Lender and the
Administrative Agent not later than 1:00 p.m. on the 

- 39 -

date of the
prepayment, and (ii) any such prepayment shall be in a minimum principal amount
of $100,000.00 or a whole multiple of $100,000.00 in excess thereof. Each such
notice shall specify the date and amount of such prepayment. If such notice is
given by the Company, the Company shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein. 

                    (c)
If the Administrative Agent notifies the Company at any time that the Total
Outstandings at such time exceed Aggregate Commitments then in effect, then,
within two Business Days after receipt of such notice, the Borrowers shall
prepay Loans and/or the Company shall Cash Collateralize the L/C Obligations in
an aggregate amount sufficient to reduce such Outstanding Amount as of such
date of payment to an amount not to exceed 100% of the Aggregate Commitments
then in effect; provided, however, that, subject to the provisions of
Section 2.03(g)(ii), the Company shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.05(c) unless after the
prepayment in full of the Loans the Total Outstandings exceed the Aggregate
Commitments then in effect. The Administrative Agent may, at any time and from
time to time after the initial deposit of such Cash Collateral, request that additional
Cash Collateral be provided in order to protect against the results of further
exchange rate fluctuations. Notwithstanding the foregoing, so long as the Total
Outstandings are not greater than 105% of the Aggregate Commitments then in
effect solely as a result of exchange rate fluctuations and not as a direct
result of the making of a Loan or issuance of a Letter of Credit, the Borrowers
shall not be required to prepay Loans and/or the Company shall not be required
to Cash Collateralize the L/C Obligations, provided, however, that, if
and to the extent solely as a result of exchange rate fluctuations and not as a
direct result of the making of a Loan or issuance of a Letter of Credit, the
Total Outstandings are greater than 105% of the Aggregate Commitments then in
effect, the Borrowers shall prepay Loans and/or the Company shall Cash
Collateralize the L/C Obligations in an aggregate amount sufficient to reduce
such Outstanding Amount as of such date of payment to an amount not to exceed
the Aggregate Commitments then in effect.

          2.06
Termination or Reduction of Commitments. The Company may, upon
notice to the Administrative Agent, terminate the Aggregate Commitments, or
from time to time permanently reduce the Aggregate Commitments; provided
that (i) any such notice shall be received by the Administrative Agent not
later than 11:00 a.m. five Business Days prior to the date of termination or
reduction, (ii) any such partial reduction shall be in an aggregate amount of
$10,000,000.00 or a whole multiple of $1,000,000.00 in excess thereof, (iii)
the Company shall not terminate or reduce the Aggregate Commitments if, after
giving effect thereto and to any concurrent prepayments hereunder, the Total
Outstandings plus the Alternative Currency Reserve (if any) would exceed the
Aggregate Commitments, and (iv) if, after giving effect to any reduction of the
Aggregate Commitments, the Letter of Credit Sublimit, or the Swing Line
Sublimit exceeds the amount of the Aggregate Commitments, such Sublimit shall be
automatically reduced by the amount of such excess. The Administrative Agent
will promptly notify the Lenders of any such notice of termination or reduction
of the Aggregate Commitments. The amount of any such Aggregate Commitment
reduction shall not be applied to the Swing Line Sublimit or the Letter of
Credit Sublimit unless otherwise specified by the Company. Any reduction of the
Aggregate Commitments shall be applied to the Commitment of each Lender
according to its Applicable Percentage. All fees accrued until the effective
date of any termination of the Aggregate Commitments shall be paid on the
effective date of such termination. 

- 40 -

          2.07
Repayment of Loans.

                    (a)
Each Borrower shall repay to the Lenders on the Maturity Date the aggregate
principal amount of Committed Loans made to such Borrower outstanding on such
date. 

                    (b)
The Company shall repay each Swing Line Loan on the earlier to occur of (i) the
date ten Business Days after such Loan is made and (ii) the Maturity Date. 

          2.08
Interest. 

                    (a)
Subject to the provisions of subsection (b) below, (i) each Eurocurrency Rate
Loan shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the Eurocurrency Rate for such
Interest Period plus the Applicable Rate plus (in the case of a
Eurocurrency Rate Loan of any Lender which is lent from a Lending Office in the
United Kingdom or a Participating Member State) the Mandatory Cost; (ii) each
Base Rate Committed Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate; and (iii) each Swing Line Loan shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum
equal to the Base Rate. 

                    (b)
(i) If any amount of principal of any Loan is not paid when due (without regard
to any applicable grace periods), whether at stated maturity, by acceleration
or otherwise, such amount shall thereafter bear interest at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws. 

                              (ii)
If any amount (other than principal of any Loan) payable by any Borrower under
any Loan Document is not paid when due (without regard to any applicable grace
periods), whether at stated maturity, by acceleration or otherwise, then upon
the request of the Required Lenders, such amount shall thereafter bear interest
at a fluctuating interest rate per annum at all times equal to the Default Rate
to the fullest extent permitted by applicable Laws.

                              (iii)
Upon the request of the Required Lenders, while any Event of Default exists,
the Borrowers shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws. 

                              (iv)
Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

                    (c)
Borrowers shall pay interest on each Loan in arrears on each Interest Payment
Date applicable thereto and at such other times as may be specified herein.
Interest hereunder shall be due and payable in accordance with the terms hereof
before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law. 

                    (d)
For the purposes of the Interest Act (Canada), (i) whenever a rate of interest
or fee rate hereunder is calculated on the basis of a year (the “deemed year”)
that contains fewer days than the actual number of days in the calendar year of
calculation, such rate of interest or fee rate shall be expressed as a yearly
rate by multiplying such rate of interest or fee rate by the actual number of
days in the calendar year of calculation and dividing it by the number of days
in the deemed year, (ii) the principle of deemed reinvestment of interest shall
not 

- 41 -

apply to any
interest calculation hereunder and (iii) the rates of interest stipulated
herein are intended to be nominal rates and not effective rates or yields. 

          2.09 Fees.
In addition to certain fees described in subsections (i) and (j) of Section
2.03: 

                    (a)
Facility Fee. The Company shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, a facility
fee in Dollars equal to the Applicable Rate times the actual daily
amount of the Aggregate Commitments (or, if the Aggregate Commitments have
terminated, on the Outstanding Amount of all Committed Loans, Swing Line Loans
and L/C Obligations), regardless of usage. The facility fee shall accrue at all
times during the Availability Period (and thereafter so long as any Committed
Loans, Swing Line Loans or L/C Obligations remain outstanding), including at
any time during which one or more of the conditions in Article 4 is not met,
and shall be due and payable quarterly in arrears on the last Business Day of
each March, June, September and December, commencing with the first such date
to occur after the Closing Date, and on the Maturity Date (and, if applicable,
thereafter on demand). The facility fee shall be calculated quarterly in
arrears, and if there is any change in the Applicable Rate during any quarter,
the actual daily amount shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate was in
effect.

                    (b)
Upfront Fees. The Company shall pay to the Administrative Agent, on the
Closing Date, for the account of the Lenders in accordance with their
respective Applicable Percentages, an upfront fee of .02% of the Aggregate
Commitments as of the Closing Date. Such upfront fees shall be fully earned
when paid and shall not be refundable for any reason. 

                    (c)
Other Fees.

                              (i)
The Company shall pay to the Joint Lead Arrangers, the Joint Bookrunner and the
Administrative Agent for their own respective accounts, in Dollars, fees in the
amounts and at the times specified in the Fee Letters. Such fees shall be fully
earned when paid and shall not be refundable for any reason whatsoever.

                              (ii)
The Company shall pay to the Lenders, in Dollars, such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified.
Such fees shall be fully earned when paid and shall not be refundable for any
reason whatsoever.

          2.10
Computation of Interest and Fees. All computations of interest for
Base Rate Loans when the Base Rate is determined by Bank of America’s “prime
rate” shall be made on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed. All other computations of fees and interest shall
be made on the basis of a 360-day year and actual days elapsed (which results
in more fees or interest, as applicable, being paid than if computed on the
basis of a 365-day year), or, in the case of interest in respect of Committed
Loans denominated in Alternative Currencies as to which market practice differs
from the foregoing, in accordance with such market practice. Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.12(a), bear interest for one
day. Each determination by the Administrative Agent of an interest rate or fee
hereunder shall be conclusive and binding for all purposes, absent manifest
error.

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          2.11 Evidence of Debt. 

                    (a)
The Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business. The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrowers and
the interest and payments thereon. Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrowers hereunder to pay any amount owing with respect to the Obligations. In
the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of the Administrative Agent shall
control in the absence of manifest error. Upon the request of any Lender to a
Borrower made through the Administrative Agent, such Borrower shall execute and
deliver to such Lender (through the Administrative Agent) a Note, which shall
evidence such Lender’s Loans to such Borrower in addition to such accounts or
records. Each Lender may attach schedules to a Note and endorse thereon the
date, Type (if applicable), amount, currency and maturity of its Loans and
payments with respect thereto.

                    (b)
In addition to the accounts and records referred to in subsection (a), each
Lender and the Administrative Agent shall maintain in accordance with its usual
practice accounts or records evidencing the purchases and sales by such Lender
of participations in Letters of Credit and Swing Line Loans. In the event of
any conflict between the accounts and records maintained by the Administrative
Agent and the accounts and records of any Lender in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error. 

          2.12 Payments Generally; Administrative Agent’s
Clawback. 

                    (a)
General. All payments to be made by the Borrowers shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
Except as otherwise expressly provided herein and except with respect to
principal of and interest on Loans denominated in an Alternative Currency, all
payments by the Borrowers hereunder shall be made to the Administrative Agent,
for the account of the respective Lenders to which such payment is owed, at the
applicable Administrative Agent’s Office in Dollars and in Same Day Funds not
later than 2:00 p.m. on the date specified herein. Except as otherwise
expressly provided herein, all payments by the Borrowers hereunder with respect
to principal and interest on Loans denominated in an Alternative Currency shall
be made to the Administrative Agent, for the account of the respective Lenders
to which such payment is owed, at the applicable Administrative Agent’s Office
in such Alternative Currency and in Same Day Funds not later than the
Applicable Time specified by the Administrative Agent on the dates specified
herein. Without limiting the generality of the foregoing, the Administrative
Agent may require that any payments due under this Agreement be made in the
United States. If, for any reason, any Borrower is prohibited by any Law from
making any required payment hereunder in an Alternative Currency, such Borrower
shall make such payment in Dollars in the Dollar Equivalent of the Alternative
Currency payment amount. The Administrative Agent will promptly distribute to
each Lender its Applicable Percentage (or other applicable share as provided
herein) of such payment in like funds as received by wire transfer to such
Lender’s Lending Office. All payments received by the Administrative Agent (i)
after 2:00 p.m., in the case of payments in Dollars, or (ii) after the
Applicable Time specified by the Administrative 

- 43 -

Agent in the
case of payments in an Alternative Currency, shall in each case be deemed
received on the next succeeding Business Day and any applicable interest or fee
shall continue to accrue. If any payment to be made by any Borrower shall come
due on a day other than a Business Day, payment shall be made on the next
following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

                    (b)
(i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed
date of any Committed Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section 2.02 and may, in reliance upon such
assumption, make available to the applicable Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable
Committed Borrowing available to the Administrative Agent, then the applicable
Lender agrees to pay to the Administrative Agent forthwith on demand such
corresponding amount in Same Day Funds with interest thereon, for each day from
and including the date such amount is made available to such Borrower to but
excluding the date of payment to the Administrative Agent. If such Lender fails
to make such payment, Administrative Agent shall have the right to request such
Borrower to pay to the Administrative Agent on demand such corresponding amount
in Same Day Funds with interest thereon. In either case the interest on such
corresponding amount shall accrue at (A) in the case of a payment to be made by
such Lender, the Overnight Rate and (B) in the case of a payment to be made by
such Borrower, the interest rate applicable to Base Rate Loans. If such
Borrower and such Lender shall pay such interest to the Administrative Agent
for the same or an overlapping period, the Administrative Agent shall promptly
remit to such Borrower the amount of such interest paid by such Borrower for
such period. If such Lender pays its share of the applicable Committed
Borrowing to the Administrative Agent, then the amount so paid shall constitute
such Lender’s Committed Loan included in such Committed Borrowing. Any payment by
such Borrower shall be without prejudice to any claim such Borrower may have
against a Lender that shall have failed to make such payment to the
Administrative Agent.

                              (ii)
Payments by Borrowers; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders or the L/C Issuer hereunder that such Borrower will not make such payment,
the Administrative Agent may assume that such Borrower has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the L/C Issuer, as the case may be, the amount
due. In such event, if such Borrower has not in fact made such payment, then
each of the Lenders or the L/C Issuer, as the case may be, severally agrees to
repay to the Administrative Agent forthwith on demand the amount so distributed
to such Lender or the L/C Issuer, in Same Day Funds with interest thereon, for
each day from and including the date such amount is distributed to it to, but
excluding, the date of payment to the Administrative Agent, at the Overnight
Rate.

A notice of
the Administrative Agent to any Lender or Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

                    (c)
Failure to Satisfy Conditions. Precedent. If any Lender makes available
to the Administrative Agent funds for any Loan to be made by such Lender to any
Borrower as 

- 44 -

provided in
the foregoing provisions of this Article 2, and such funds are not made
available to such Borrower by the Administrative Agent because the conditions
to the applicable Credit Extension set forth in Article 4 are not satisfied or
waived in accordance with the terms hereof, the Administrative Agent shall
return such funds (in like funds as received from such Lender) to such Lender,
without interest.

                    (d)
Obligations of Lenders Several. The obligations of the Lenders hereunder to
make Committed Loans, to fund participations in Letters of Credit and Swing
Line Loans and to make payments pursuant to Section 10.04(c) are several and
not joint. The failure of any Lender to make any Committed Loan, to fund any
such participation or to make any payment under Section 10.04(c) on any date
required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to so make its Committed Loan, to purchase its
participation or to make its payment under Section 10.04(c).

                    (e)
Funding Source. Nothing herein shall be deemed to obligate any Lender to
obtain the funds for any Loan in any particular place or manner or to
constitute a representation by any Lender that it has obtained or will obtain
the funds for any Loan in any particular place or manner.

          2.13 Sharing of Payments by Lenders.
If any Lender shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
the Committed Loans made by it, or the participations in L/C Obligations or in
Swing Line Loans held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Committed Loans or participations
and accrued interest thereon greater than its pro rata share thereof as
provided herein, then the Lender receiving such greater proportion shall (a) notify
the Administrative Agent of such fact, and (b) purchase (for cash at face
value) participations in the Committed Loans and subparticipations in L/C
Obligations and Swing Line Loans of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Committed Loans and
other amounts owing them, provided that:

                              (i)
if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and

                              (ii)
the provisions of this Section shall not be construed to apply to (x) any
payment made by a Borrower pursuant to and in accordance with the express terms
of this Agreement or (y) any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its Committed Loans or
subparticipations in L/C Obligations or Swing Line Loans to any assignee or
participant, other than to the Company or any Subsidiary thereof (as to which
the provisions of this Section shall apply).

                    Each
Borrower consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant
to the foregoing arrangements may exercise against such Borrower rights of
setoff and counterclaim with respect to such participation as fully as if such
Lender were a direct creditor of such Borrower in the amount of such
participation. 

- 45 -

          2.14 Designated Borrowers. 

                    (a)
Effective as of the date hereof Curtiss-Wright Controls, Inc., a Delaware
corporation, Metal Improvement Company, LLC, a Delaware limited liability
company, Curtiss-Wright Flow Control Corporation, a New York corporation,
Curtiss-Wright Flow Control Service Corporation, a Delaware corporation,
Curtiss-Wright Electro-Mechanical Corporation, a Delaware corporation, DY 4
Systems, Inc., an Ontario corporation, and Curtiss-Wright Antriebstechnik GmbH,
a Swiss company, shall each be a “Designated Borrower” hereunder and may
receive Loans for its account on the terms and conditions set forth in this
Agreement.

                    (b)
The Company may at any time, upon not less than 15 Business Days’ notice from
the Company to the Administrative Agent (or such shorter period as may be
agreed by the Administrative Agent in its sole discretion), designate any
Material Subsidiary of the Company (an “Applicant Borrower”) as a
Designated Borrower to receive Loans hereunder by delivering to the
Administrative Agent (which shall promptly deliver counterparts thereof to each
Lender) a duly executed notice and agreement in substantially the form of Exhibit
H (a “Designated Borrower Request and Assumption Agreement”). The
parties hereto acknowledge and agree that prior to any Applicant Borrower
becoming entitled to utilize the credit facilities provided for herein the
Administrative Agent and the Lenders shall have received such supporting
resolutions, incumbency certificates, opinions of counsel and other documents
or information, in form, content and scope reasonably satisfactory to the
Administrative Agent, as may be required by the Administrative Agent or the
Required Lenders in their sole discretion, and Notes signed by such new
Borrowers to the extent any Lenders so require. If the Administrative Agent and
the Required Lenders agree that an Applicant Borrower shall be entitled to
receive Loans hereunder, then promptly following receipt of all such requested
resolutions, incumbency certificates, opinions of counsel and other documents
or information, the Administrative Agent shall send a notice in substantially
the form of Exhibit I (a “Designated Borrower Notice”) to the
Company and the Lenders specifying the effective date upon which the Applicant
Borrower shall constitute a Designated Borrower for purposes hereof, whereupon
each of the Lenders agrees to permit such Designated Borrower to receive Loans
hereunder, on the terms and conditions set forth herein, and each of the
parties agrees that such Designated Borrower otherwise shall be a Borrower for
all purposes of this Agreement.

                    (c)
The Obligations of the Company and each Designated Borrower that is a Domestic
Subsidiary shall be joint and several in nature. The Obligations of all Foreign
Borrowers shall be several in nature and shall be limited to Loans made to, or
Letters of Credit issued for, the direct benefit of such Foreign Borrower.

                    (d)
Each Subsidiary of the Company that is or becomes a “Designated Borrower”
pursuant to this Section 2.14 hereby irrevocably appoints the Company as its
agent for all purposes relevant to this Agreement and each of the other Loan
Documents, including (i) the giving and receipt of notices, (ii) the execution
and delivery of all documents, instruments and certificates contemplated herein
and all modifications hereto, and (iii) the receipt of the proceeds of any
Loans made by the Lenders, to any such Designated Borrower hereunder. Any acknowledgment,
consent, direction, certification or other action which might otherwise be
valid or effective only if given or taken by all Borrowers, or by each Borrower
acting singly, shall be valid and effective if given or taken only by the
Company, whether or not any such other Borrower joins therein. Any notice,
demand, consent, acknowledgement, direction, certification 

- 46 -

or other
communication delivered to the Company in accordance with the terms of this
Agreement shall be deemed to have been delivered to each Designated Borrower.

                    (e)
The Company may from time to time, upon not less than 15 Business Days’ notice
from the Company to the Administrative Agent (or such shorter period as may be
agreed by the Administrative Agent in its sole discretion), terminate a
Designated Borrower’s status as such, provided that there are no outstanding
Loans payable by such Designated Borrower, or other amounts payable by such
Designated Borrower on account of any Loans made to it, as of the effective
date of such termination. The Administrative Agent will promptly notify the
Lenders of any such termination of a Designated Borrower’s status. 

          2.15 Increase in Commitments. 

                    (a)
Request for Increase. Provided there exists no Default, upon notice to
the Administrative Agent (which shall promptly notify the Lenders), the Company
may from time to time, request an increase in the Aggregate Commitments by an
amount (for all such requests) not exceeding $175,000,000.00; provided that
(i) any such request for an increase shall be in a minimum amount of
$50,000,000.00, and (ii) the Company may make a maximum of three (3) such
requests. At the time of sending such notice, the Company (in consultation with
the Administrative Agent) shall specify the time period within which each
Lender is requested to respond (which shall in no event be less than ten (10)
Business Days from the date of delivery of such notice to the Lenders).

                    (b)
Lender Elections to Increase. Each Lender shall notify the
Administrative Agent within such time period whether or not it agrees to
increase its Commitment and, if so, whether by an amount equal to, greater
than, or less than its Applicable Percentage of such requested increase. Any
Lender not responding within such time period shall be deemed to have declined
to increase its Commitment. 

                    (c)
Notification by Administrative Agent; Additional Lenders. The
Administrative Agent shall notify the Company and each Lender of the Lenders’
responses to each request made hereunder. To achieve the full amount of a
requested increase and subject to the approval of the Administrative Agent, the
L/C Issuer and the Swing Line Lender (which approvals shall not be unreasonably
withheld), the Company may also invite additional Eligible Assignees to become
Lenders pursuant to a joinder agreement in standard form with substance
customary for the industry and satisfactory to the Administrative Agent and its
counsel.

                    (d)
Effective Date and Allocations. If the Aggregate Commitments are
increased in accordance with this Section, the Administrative Agent and the
Company shall determine the effective date (the “Increase Effective Date”)
and the final allocation of such increase. The Administrative Agent shall
promptly notify the Company and the Lenders of the final allocation of such
increase and the Increase Effective Date. 

                    (e)
Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Company shall deliver to the Administrative Agent a certificate
executed by each Loan Party dated as of the Increase Effective Date (in
sufficient copies for each Lender) signed by a Responsible Officer of such Loan
Party (i) certifying and attaching the resolutions adopted by such Loan Party
approving or consenting to such increase, and (ii) in the case of the Company,
certifying that, before and after giving effect to such increase, (A) the
representations and warranties contained in Article V and the other Loan
Documents are true and correct on and 

- 47 -

as of the
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this
Section 2.15, the representations and warranties contained in subsections (a)
and (b) of Section 5.05 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01, and
(B) no Default exists. The Borrowers shall prepay any Committed Loans
outstanding on the Increase Effective Date (and pay any additional amounts
required pursuant to Section 3.05) to the extent necessary to keep the
outstanding Committed Loans ratable with any revised Applicable Percentages
arising from any nonratable increase in the Commitments under this Section.

                    (f)
Conflicting Provisions. This Section shall supersede any provisions in
Section 2.13 or 10.01 to the contrary. 

ARTICLE 3

TAXES, YIELD PROTECTION AND ILLEGALITY

          3.01 Taxes

                    (a)
Payments Free of Taxes. Any and all payments by or on account of any
obligation of the respective Borrowers hereunder or under any other Loan
Document shall be made free and clear of and without reduction or withholding
for any Indemnified Taxes or Other Taxes, provided that if the
applicable Borrower shall be required by applicable law to deduct any
Indemnified Taxes (including any Other Taxes) from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent, Lender or L/C Issuer, as the case may
be, receives an amount equal to the sum it would have received had no such
deductions been made, (ii) such Borrower shall make such deductions and (iii)
such Borrower shall timely pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

                    (b)
Payment of Other Taxes by the Borrowers. Without limiting the provisions
of subsection (a) above and if required by law, each Borrower shall timely pay
any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

                    (c)
Indemnification by the Borrowers. Each Borrower shall indemnify the
Administrative Agent, each Lender and the L/C Issuer, within 10 days after
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to a Borrower by a Lender or the L/C
Issuer (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be
conclusive absent manifest error. Subject to the terms above, Borrower shall
have the right to challenge (legally or administratively) any Indemnified Taxes
or Other Taxes paid to a Governmental Authority if, based on opinion of
counsel, Borrower has a good faith belief that such taxes were incorrectly or
illegally imposed or asserted by the relevant Governmental Authority. 

- 48 -

                    (d)
Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by any Borrower to a Governmental Authority, such
Borrower shall deliver to the Administrative Agent the original or a certified
copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent.

                    (e)
Status of Lenders. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which
a Borrower is resident for tax purposes, or any treaty to which such
jurisdiction is a party, with respect to payments hereunder or under any other
Loan Document shall deliver to the Company (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law or reasonably
requested by the Company or the Administrative Agent, such properly completed
and executed documentation prescribed by applicable law as will permit such
payments to be made without withholding or at a reduced rate of withholding. In
addition, any Lender, if requested by the Company or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Company or the Administrative Agent as will enable
the Company or the Administrative Agent to determine whether or not such Lender
is subject to backup withholding or information reporting requirements.

Without
limiting the generality of the foregoing, in the event that a Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to Company and the Administrative Agent (in such number of copies as
shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Company or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

                              (i)
duly completed copies of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States is
a party,

                              (ii)
duly completed copies of Internal Revenue Service Form W-8ECI,

                              (iii)
in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to the
effect that such Foreign Lender is not (A) a “bank” within the meaning of
section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the
applicable Borrower within the meaning of section 881(c)(3)(B) of the Code, or
(C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the
Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or

                              (iv)
any other form prescribed by applicable law as a basis for claiming exemption
from or a reduction in United States Federal withholding tax duly completed
together with such supplementary documentation as may be prescribed by applicable
law to permit the Company to determine the withholding or deduction required to
be made.

Without
limiting the obligations of the Lenders set forth above regarding delivery of
certain forms and documents to establish each Lender’s status for U.S. withholding
tax purposes, each Lender agrees promptly to deliver to the Administrative
Agent or the Company, as the Administrative Agent or the Company shall
reasonably request, on or prior to the Closing Date, and in a timely fashion
thereafter, such other documents and forms required by any relevant 

- 49 -

taxing
authorities under the Laws of any other jurisdiction, duly executed and
completed by such Lender, as are required under such Laws to confirm such
Lender’s entitlement to any available exemption from, or reduction of,
applicable withholding taxes in respect of all payments to be made to such
Lender outside of the U.S. by the Borrowers pursuant to this Agreement or
otherwise to establish such Lender’s status for withholding tax purposes in
such other jurisdiction. Each Lender shall promptly (i) notify the
Administrative Agent of any change in circumstances which would modify or
render invalid any such claimed exemption or reduction, and (ii) take such
steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable
Laws of any such jurisdiction that any Borrower make any deduction or withholding
for taxes from amounts payable to such Lender. Additionally, each of the
Borrowers shall promptly deliver to the Administrative Agent or any Lender, as
the Administrative Agent or such Lender shall reasonably request, on or prior
to the Closing Date, and in a timely fashion thereafter, such documents and
forms required by any relevant taxing authorities under the Laws of any
jurisdiction, duly executed and completed by such Borrower, as are required to
be furnished by such Lender or the Administrative Agent under such Laws in
connection with any payment by the Administrative Agent or any Lender of Taxes
or Other Taxes, or otherwise in connection with the Loan Documents, with
respect to such jurisdiction.

                    (f)
Treatment of Certain Refunds. If the Administrative Agent, any Lender or
the L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by any
Borrower or with respect to which any Borrower has paid additional amounts
pursuant to this Section, it shall pay to such Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by such Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
the Administrative Agent, such Lender or the L/C Issuer, as the case may be,
and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that each Borrower,
upon the request of the Administrative Agent, such Lender or the L/C Issuer,
agrees to repay the amount paid over to such Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to
the Administrative Agent, such Lender or the L/C Issuer in the event the
Administrative Agent, such Lender or the L/C Issuer is required to repay such
refund to such Governmental Authority. This subsection shall not be construed
to require the Administrative Agent, any Lender or the L/C Issuer to make
available its tax returns (or any other information relating to its taxes that
it deems confidential) to any Borrower or any other Person.

          3.02 Illegality. If any Lender determines
that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office
to make, maintain or fund Eurocurrency Rate Loans (whether denominated in
Dollars or an Alternative Currency), or to determine or charge interest rates
based upon the Eurocurrency Rate, or any Governmental Authority has imposed
material restrictions on the authority of such Lender to purchase or sell, or
to take deposits of, Dollars or any Alternative Currency in the applicable
interbank market, then, on notice thereof by such Lender to the Company through
the Administrative Agent, any obligation of such Lender to make or continue
Eurocurrency Rate Loans in the affected currency or currencies or, in the case
of Eurocurrency Rate Loans in Dollars, to convert Base Rate Committed Loans to
Eurocurrency Rate Loans, shall 

- 50 -

be suspended
until such Lender notifies the Administrative Agent and the Company that the
circumstances giving rise to such determination no longer exist. Upon receipt
of such notice, the Borrowers shall, upon demand from such Lender (with a copy
to the Administrative Agent), prepay or, if applicable and such Loans are
denominated in Dollars, convert all such Eurocurrency Rate Loans of such Lender
to Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such Eurocurrency Rate Loans to
such day, or immediately, if such Lender may not lawfully continue to maintain
such Eurocurrency Rate Loans. Upon any such prepayment or conversion, the
Borrowers shall also pay accrued interest on the amount so prepaid or
converted.

          3.03 Inability to Determine Rates. If the
Required Lenders determine that for any reason in connection with any request
for a Eurocurrency Rate Loan or a conversion to or continuation thereof that
(a) deposits (whether in Dollars or an Alternative Currency) are not being
offered to banks in the applicable offshore interbank market for such currency
for the applicable amount and Interest Period of such Eurocurrency Rate Loan,
(b) adequate and reasonable means do not exist for determining the Eurocurrency
Base Rate for any requested Interest Period with respect to a proposed
Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative
Currency), or (c) the Eurocurrency Base Rate for any requested Interest Period
with respect to a proposed Eurocurrency Rate Loan does not adequately and
fairly reflect the cost to such Lenders of funding such Eurocurrency Rate Loan,
the Administrative Agent will promptly so notify the Company and each Lender.
Thereafter, the obligation of the Lenders to make or maintain Eurocurrency Rate
Loans in the affected currency or currencies shall be suspended until the
Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice. Upon receipt of such notice, the Company may revoke any pending
request for a Borrowing of, conversion to or continuation of Eurocurrency Rate
Loans in the affected currency or currencies or, failing that, will be deemed
to have converted such request into a request for a Committed Borrowing of Base
Rate Loans in the amount specified therein. 

          3.04 Increased Costs; Reserves on Eurocurrency Rate
Loans. 

                    (a)
Increased Costs Generally. If any Change in Law shall: 

                              (i)
impose, modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with
or for the account of, or credit extended or participated in by, any Lender
(except (A) any reserve requirement reflected in the Eurocurrency Rate and (B)
the requirements of the Bank of England and the Financial Services Authority or
the European Central Bank reflected in the Mandatory Cost, other than as set
forth below) or the L/C Issuer;

                              (ii)
subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter
of Credit or any Eurocurrency Loan made by it, or change the basis of taxation
of payments to such Lender or the L/C Issuer in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of,
or any change in the rate of, any Excluded Tax payable by such Lender or the
L/C Issuer);

                              (iii)
the Mandatory Cost, as calculated hereunder, does not represent the cost to any
Lender of complying with the requirements of the Bank of England and/or the
Financial Services Authority or the European Central Bank in relation to its
making, funding or maintaining Eurocurrency Rate Loans; or 

- 51 -

                              (iv)
impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurocurrency Loans made
by such Lender or any Letter of Credit or participation therein;

and the result
of any of the foregoing shall be to increase the cost to such Lender of making
or maintaining any Eurocurrency Loan (or of maintaining its obligation to make
any such Loan), or to increase the cost to such Lender or the L/C Issuer of
participating in, issuing or maintaining any Letter of Credit (or of
maintaining its obligation to participate in or to issue any Letter of Credit),
or to reduce the amount of any sum received or receivable by such Lender or the
L/C Issuer hereunder (whether of principal, interest or any other amount) then,
upon request of such Lender or the L/C Issuer, the Company will pay (or cause
the applicable Designated Borrower to pay) to such Lender or the L/C Issuer, as
the case may be, such additional amount or amounts as will compensate such
Lender or the L/C Issuer, as the case may be, for such additional costs
incurred or reduction suffered.

                    (b)
Capital Requirements. If any Lender or the L/C Issuer determines that
any Change in Law affecting such Lender or the L/C Issuer or any Lending Office
of such Lender or such Lender’s or the L/C Issuer’s holding company, if any,
regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender’s or the L/C Issuer’s capital or on the capital
of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence
of this Agreement, the Commitments of such Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the L/C Issuer, to a level below that which such Lender or the
L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s
holding company with respect to capital adequacy), then from time to time the
Company will pay (or cause the applicable Designated Borrower to pay) to such
Lender or the L/C Issuer, as the case may be, such additional amount or amounts
as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C
Issuer’s holding company for any such reduction suffered.

                    (c)
Certificates for Reimbursement. A certificate of a Lender or the L/C
Issuer setting forth the amount or amounts necessary to compensate such Lender
or the L/C Issuer or its holding company, as the case may be, as specified in
subsection (a) or (b) of this Section and delivered to the Company shall be
conclusive absent manifest error. The Company shall pay (or cause the
applicable Designated Borrower to pay) such Lender or the L/C Issuer, as the
case may be, the amount shown as due on any such certificate within 10 days
after receipt thereof.

                    (d)
Delay in Requests. Failure or delay on the part of any Lender or the L/C
Issuer to demand compensation pursuant to the foregoing provisions of this
Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s
right to demand such compensation, provided that no Borrower shall be required
to compensate a Lender or the L/C Issuer pursuant to the foregoing provisions
of this Section for any increased costs incurred or reductions suffered more
than six months prior to the date that such Lender or the L/C Issuer, as the
case may be, notifies the Company of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or the L/C Issuer’s
intention to claim compensation therefor (except that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
nine-month period referred to above shall be extended to include the period of
retroactive effect thereof). 

- 52 -

                    (e)
Additional Reserve Requirements. The Company shall pay (or cause the
applicable Designated Borrower to pay) to each Lender, as long as such Lender
shall be required to comply with any reserve ratio requirement or analogous
requirement of any central banking or financial regulatory authority imposed in
respect of the maintenance of the Commitments or the funding of the
Eurocurrency Rate Loans, such additional costs (expressed as a percentage per
annum and rounded upwards, if necessary, to the nearest five decimal places)
equal to the actual costs allocated to such Commitment or Loan by such Lender
(as determined by such Lender in good faith, which determination shall be
conclusive), which shall be due and payable on each date on which interest is
payable on such Loan, provided the Company shall have received at least
10 days’ prior notice (with a copy to the Administrative Agent) of such
additional costs from such Lender. If a Lender fails to give notice 10 days
prior to the relevant Interest Payment Date, such additional interest or costs
shall be due and payable 10 days from receipt of such notice.

          3.05 Compensation for Losses. Upon demand of
any Lender (with a copy to the Administrative Agent) from time to time, the
Company shall promptly compensate (or cause the applicable Designated Borrower
to compensate) such Lender for and hold such Lender harmless from any loss,
cost or expense incurred by it as a result of:

                    (a)
any continuation, conversion, payment or prepayment of any Loan other than a
Base Rate Loan on a day other than the last day of the Interest Period for such
Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise);

                    (b)
any failure by any Borrower (for a reason other than the failure of such Lender
to make a Loan) to prepay, borrow, continue or convert any Loan other than a
Base Rate Loan on the date or in the amount notified by the Company or the
applicable Designated Borrower;

                    (c)
any failure by any Borrower to make payment of any Loan or drawing under any
Letter of Credit (or interest due thereon) denominated in an Alternative
Currency on its scheduled due date or any payment thereof in a different
currency; or

                    (d)
any assignment of a Eurocurrency Rate Loan on a day other than the last day of
the Interest Period therefor as a result of a request by the Company pursuant to
Section 10.13;

including any
loss of anticipated profits, any foreign exchange losses and any loss or
expense arising from the liquidation or reemployment of funds obtained by it to
maintain such Loan, from fees payable to terminate the deposits from which such
funds were obtained or from the performance of any foreign exchange contract.
The Company shall also pay (or cause the applicable Designated Borrower to pay)
any customary administrative fees charged by such Lender in connection with the
foregoing.

For purposes
of calculating amounts payable by the Company (or the applicable Designated
Borrower) to the Lenders under this Section 3.05, each Lender shall be deemed
to have funded each Eurocurrency Rate Loan made by it at the Eurocurrency Base
Rate used in determining the Eurocurrency Rate for such Loan by a matching
deposit or other borrowing in the offshore interbank market for such currency
for a comparable amount and for a comparable period, whether or not such
Eurocurrency Rate Loan was in fact so funded. 

- 53 -

          3.06 Mitigation
Obligations; Replacement of Lenders. 

                    (a)
Designation of a Different Lending Office. If any Lender requests
compensation under Section 3.04, or any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, or if any Lender gives a notice
pursuant to Section 3.02, then such Lender shall use reasonable efforts to
designate a different Lending Office for funding or booking its Loans hereunder
or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section
3.01 or 3.04, as the case may be, in the future, or eliminate the need for the
notice pursuant to Section 3.02, as applicable, and (ii) in each case, would
not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Company hereby agrees to pay
(or to cause the applicable Designated Borrower to pay) all reasonable costs
and expenses incurred by any Lender in connection with any such designation or
assignment.

                    (b)
Replacement of Lenders. If any Lender requests compensation under
Section 3.04, or if any Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 3.01, the Company may replace such Lender in accordance with Section
10.13.

          3.07 Survival. All of the Borrowers’
obligations under this Article 3 shall survive termination of the Aggregate
Commitments and repayment of all other Obligations hereunder. 

ARTICLE 4

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS 

          4.01 Conditions of Initial Credit Extension.
The obligation of the L/C Issuer and each Lender to make its initial Credit
Extension hereunder is subject to satisfaction of the following conditions
precedent:

                    (a)
The Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the signing Loan
Party, each dated the Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Closing Date) and each in form
and substance satisfactory to the Administrative Agent and each of the Lenders:

                              (i)
executed counterparts of this Agreement and the Guaranty, sufficient in number
for distribution to the Administrative Agent, each Lender and the Company;

                              (ii)
Notes executed by the Borrowers in favor of each Lender requesting Notes;

                              (iii)
such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party as the
Administrative Agent may require evidencing the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Agreement and the other Loan Documents to which
such Loan Party is a party;

                              (iv)
such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party as listed on Schedule 4.01(a)
is duly 

- 54 -

organized or
formed, and that each of the Borrowers’ as listed on Schedule 4.01(a) is
validly existing, in good standing and qualified to engage in business in each
of the jurisdictions’ as listed on Schedule 4.01(a) where its ownership,
lease or operation of properties or the conduct of its business requires such
qualification, except to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect;

                              (v)
a favorable opinion of Paul J. Ferdenzi, Associate General Counsel of the
Company, addressed to the Administrative Agent and each Lender, as to such
matters concerning the Loan Parties and the Loan Documents as the Required
Lenders may reasonably request;

                              (vi)
a certificate of a Responsible Officer of each Loan Party either (A) attaching
copies of all consents, licenses and approvals required in connection with the
execution, delivery and performance by such Loan Party and the validity against
such Loan Party of the Loan Documents to which it is a party, and such
consents, licenses and approvals shall be in full force and effect, or (B)
stating that no such consents, licenses or approvals are so required;

                              (vii)
a certificate signed by a Responsible Officer of the Company certifying (A)
that the conditions specified in Sections 4.02(a) and (b) have been satisfied
and (B) that there has been no event or circumstance since the date of the
Audited Financial Statements that has had or could be reasonably expected to
have, either individually or in the aggregate, a Material Adverse Effect; and
(C) a calculation of the Consolidated Leverage Ratio as of the last day of the
fiscal quarter of the Company most recently ended prior to the Closing Date;

                              (viii)
a duly completed Compliance Certificate as of the last day of the fiscal
quarter of the Company most recently ended prior to the Closing Date, signed by
a Responsible Officer of the Company;

                              (ix)
evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect;

                              (x)
all principal and interest owing under the Prior Agreement shall have been
refinanced pursuant to this Agreement, and all fees and other amounts
outstanding thereunder shall have been paid in full; and

                              (xi)
such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required
Lenders reasonably may require.

                    (b)
The Company shall have paid to the Lenders, the Administrative Agent, the Joint
Lead Arrangers and the Joint Bookrunner all fees required to be paid and all
reasonable expenses for which invoices have been presented, on or before the
Closing Date.

                    (c)
Unless waived by the Administrative Agent, the Company shall have paid all
fees, charges and disbursements of counsel to the Administrative Agent as
required under the Loan Documents, to the extent invoiced prior to or on the
Closing Date, plus such additional amounts of such fees, charges and
disbursements as shall constitute its reasonable estimate of such fees, charges
and disbursements incurred or to be incurred by it through the closing
proceedings (provided that such estimate shall not thereafter preclude a final
settling of accounts between the Company and the Administrative Agent). 

- 55 -

                    (d)
The Closing Date shall have occurred on or before August 31, 2007.

Without
limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, each
Lender that has signed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

          4.02 Conditions to all Credit Extensions.
The obligation of each Lender to honor any Request for Credit Extension (other
than a Committed Loan Notice requesting only a conversion of Committed Loans to
the other Type, or a continuation of Eurocurrency Rate Loans) is subject to the
following conditions precedent:

                    (a)
The representations and warranties of (i) the Borrowers contained in Article 5
and (ii) each Loan Party contained in each other Loan Document or in any
document furnished at any time under or in connection herewith or therewith,
shall be true and correct in all material respects on and as of the date of
such Credit Extension; except (x) that any such representations and warranties
that are qualified by reference to materiality or Material Adverse Effect shall
be true and correct in all respects; (y) to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date, and (z) that for
purposes of this Section 4.02, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01.

                    (b)
No Default shall exist, or would result from such proposed Credit Extension or
the application of the proceeds thereof.

                    (c)
The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line
Lender shall have received a Request for Credit Extension in accordance with
the requirements hereof.

                    (d)
If the applicable Borrower is a Designated Borrower, then the conditions of
Section 2.14 to the designation of such Borrower as a Designated Borrower shall
have been met to the satisfaction of the Administrative Agent.

                    (e)
In the case of a Credit Extension to be denominated in an Alternative Currency,
there shall not have occurred any change in national or international
financial, political or economic conditions or currency exchange rates or
exchange controls which in the reasonable opinion of the Administrative Agent,
the Required Lenders (in the case of any Loans to be denominated in an
Alternative Currency) or the L/C Issuer (in the case of any Letter of Credit to
be denominated in an Alternative Currency) would make it impracticable for such
Credit Extension to be denominated in the relevant Alternative Currency.

Each Request for Credit Extension (other than a Committed Loan Notice requesting
only a conversion of Committed Loans to the other Type or a continuation of
Eurocurrency Rate Loans) submitted by the Company shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.02(a)
and (b) have been satisfied on and as of the date of the applicable Credit
Extension. 

- 56 -

ARTICLE 5

REPRESENTATIONS AND WARRANTIES

Except as otherwise provided in Section 5.18, each
Borrower represents and warrants to the Administrative Agent and the Lenders
that:

          5.01
Existence, Qualification and Power;
Compliance with Laws. Each Loan Party (a) is duly
organized or formed, validly existing and in good standing under the Laws of
the jurisdiction of its incorporation or organization, (b) has all requisite
power and authority and all requisite governmental licenses, authorizations,
consents and approvals to (i) own its assets and carry on its business and (ii)
execute, deliver and perform its obligations under the Loan Documents to which
it is a party, (c) is duly qualified and is licensed and in good standing under
the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or
license, and (d) is in compliance with all Laws; except in each case referred
to in clause (b)(i), (c) or (d), to the extent that failure to do so would not
reasonably be expected to have a Material Adverse Effect.

          5.02
Authorization; No Contravention.
The execution, delivery and performance by each Loan Party of each Loan
Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not and will not (a)
contravene the terms of any of such Person’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or the creation of
any Lien under, or require any payment to be made under (i) any Contractual
Obligation to which such Person is a party or by which such Person or the
properties of such Person or any of its Subsidiaries are bound or (ii) any
order, injunction, writ or decree of any Governmental Authority or any arbitral
award to which such Person or its property is subject; or (c) violate any Law.
Each Loan Party is in compliance with all Contractual Obligations referred to
in clause (b)(i), except to the extent that failure to do so would not
reasonably be expected to have a Material Adverse Effect.

          5.03
Governmental Authorization; Other
Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document.

          5.04
Binding Effect.
This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that
is party thereto. This Agreement constitutes, and each other Loan Document when
so delivered will constitute, a legal, valid and binding obligation of such
Loan Party, enforceable against each Loan Party that is party thereto in
accordance with its terms, except in each case as such enforcement may be
limited by principles of equity, bankruptcy, insolvency or other laws affecting
the enforcement of creditors’ rights generally.

          5.05
Financial Statements; No Material
Adverse Effect. 

                    (a)
The Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; (ii) fairly present the financial condition of the
Company and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly

- 57 -

noted therein; and (iii) show all material
indebtedness and other material liabilities, direct or contingent, of the
Company and its Subsidiaries as of the date thereof, including liabilities for
taxes, material commitments and Indebtedness.

                    (b)
The unaudited consolidated balance sheet of the Company and its Subsidiaries
dated June 30, 2007, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for the fiscal quarter ended on
that date (i) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted
therein, and (ii) fairly present the financial condition of the Company and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby, subject, in the case of clauses (i) and (ii), to the
absence of footnotes and to normal year-end audit adjustments. Schedule 5.05
sets forth all material indebtedness and other material liabilities, direct or
contingent, of the Company and its consolidated Subsidiaries as of the date of
such financial statements, including liabilities for taxes, material
commitments and Indebtedness.

                    (c)
Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could
reasonably be expected to have a Material Adverse Effect.

          5.06
Litigation. 

There are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of the Company, threatened or
contemplated, at law, in equity, in arbitration or before any Governmental
Authority, by or against the Company or any of its Subsidiaries or against any
of their properties or revenues that (a) purport to affect or pertain to this
Agreement or any other Loan Document, or any of the transactions contemplated
hereby, or (b) except as specifically disclosed in Schedule 5.06, either
individually or in the aggregate, if determined adversely, could reasonably be
expected to have a Material Adverse Effect, and there has been no adverse
change in the status, or financial effect on any Loan Party or any Subsidiary
thereof, of the matters described on Schedule 5.06.

          5.07
No Default.
Neither the Company nor any Subsidiary is in default under or with respect to
any Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has
occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

          5.08
Ownership of Property; Liens.
Each of the Company and each Subsidiary has good record and marketable title in
fee simple to, or valid leasehold interests in, all real property necessary or
used in the ordinary conduct of its business, except for such defects in title
as would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect. The property of the Company and its Subsidiaries is
subject to no Liens, other than Liens permitted by Section 7.01.

          5.09
Environmental Compliance.
The Company and its Subsidiaries conduct in the ordinary course of business a
review of the effect of existing Environmental Laws and claims alleging
potential liability or responsibility for violation of any Environmental Law on
their respective businesses, operations and properties, and as a result thereof
the Company has reasonably concluded that, except as specifically disclosed in Schedule
5.09, such Environmental

- 58 -

Laws and claims would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

          5.10
Insurance. The
properties of the Company and its Subsidiaries are insured in accordance with
customary industry practice, in such amounts, with such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Company or the
applicable Subsidiary operates.

          5.11
Taxes. The Company and its Subsidiaries have filed
all Federal, state and other material tax returns, extension and reports
required to be filed, and have paid all Federal, state and other material
taxes, assessments, fees and other governmental charges levied or imposed upon
them or their properties, income or assets otherwise due and payable, except
those which are being contested in good faith by appropriate proceedings
diligently conducted and for which adequate reserves have been provided in
accordance with GAAP. There is no proposed tax assessment against the Company
or any Subsidiary that would, if made, have a Material Adverse Effect. Neither
any Loan Party nor any Subsidiary thereof is party to any tax sharing
agreement.

          5.12
ERISA Compliance.

                   (a)
Each Plan is in compliance in all material respects with the applicable
provisions of ERISA, the Code and other Federal or state Laws. Each Plan that
is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter
is currently being processed by the IRS with respect thereto and, to the
knowledge of the Company, nothing has occurred which would prevent, or cause
the loss of, such qualification. The Company and each ERISA Affiliate have made
all required contributions to each Plan subject to Section 412 of the Code, and
no application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Plan.

                   (b)
There are no pending or, to the knowledge of the Company, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to
any Plan that could reasonably be expected to have a Material Adverse Effect.
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

                   (c)
(i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no
Pension Plan has any Unfunded Pension Liability; (iii) neither the Company nor
any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
under Title IV of ERISA with respect to any Pension Plan (other than premiums
due and not delinquent under Section 4007 of ERISA); (iv) neither the Company
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
material liability (and no event has occurred which, with the giving of notice
under Section 4219 of ERISA, would result in such liability) under Sections 4201
or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the
Company nor any ERISA Affiliate has engaged in a transaction that could be
subject to Sections 4069 or 4212(c) of ERISA.

          5.13
Subsidiaries; Equity Interests.
As of the Closing Date, the Company has no Subsidiaries other than those
specifically disclosed in Part (a) of Schedule 5.13, and all of the
outstanding Equity Interests in such Subsidiaries have been validly issued, are
fully paid and nonassessable and are owned by a Loan Party in the amounts
specified on Part (a) of Schedule 5.13 free and clear of all Liens. As
of the Closing Date, the Company has no equity investments

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in any other corporation or entity other than those
specifically disclosed in Part (b) of Schedule 5.13. All of the
outstanding Equity Interests in the Company have been validly issued, and are
fully paid and nonassessable.

          5.14
Margin Regulations; Investment Company
Act; Public Utility Holding Company Act. 

                    (a)
No Borrower is engaged or will engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the FRB), or extending credit for the purpose
of purchasing or carrying margin stock.

                    (b)
None of the Company, any Person Controlling the Company, or any Subsidiary (i)
is a “holding company,” or a “subsidiary company” of a “holding company,” or an
“affiliate” of a “holding company” or of a “subsidiary company” of a “holding
company,” within the meaning of the Public Utility Holding Company Act of 1935,
or (ii) is or is required to be registered as an “investment company” under the
Investment Company Act of 1940.

          5.15
Disclosure.
The Company has disclosed to the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which it or any
of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. No report, financial statement, certificate or other
information furnished (whether in writing or orally) by or on behalf of any
Loan Party to the Administrative Agent or any Lender in connection with the
transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or under any other Loan Document (in each case, as modified
or supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

          5.16
Compliance with Laws.
Each of the Company and each Subsidiary is in compliance in all material
respects with the requirements of all Laws and all orders, writs, injunctions
and decrees applicable to it or to its properties, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted or (b)
the failure to comply therewith, either individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect. 

          5.17
Intellectual Property; Licenses, Etc.
The Company and its Subsidiaries own, or possess the right to use, all of the
trademarks, service marks, trade names, copyrights, patents, patent rights,
franchises, licenses and other intellectual property rights (collectively, “IP
Rights”) that are reasonably necessary for the operation of their respective
businesses, without conflict with the rights of any other Person. To the
knowledge of the Company, no material slogan or other advertising device,
product, process, method, substance, part or other material now employed, or
now contemplated to be employed, by the Company or any Subsidiary infringes in
any material respect upon any rights held by any other Person. Except as
specifically disclosed in Schedule 5.17, no claim or litigation regarding
any of the foregoing is pending or, to the knowledge of the Company,
threatened, which, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. 

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          5.18
Representations as to Foreign Borrowers.
Each of the Company and each Foreign Borrower represents and warrants to the
Administrative Agent and the Lenders that: 

                    (a)
Such Foreign Borrower is subject to civil and commercial Laws with respect to
its obligations under this Agreement and the other Loan Documents to which it
is a party (collectively as to such Foreign Borrower, the “Applicable
Foreign Borrower Documents”), and the execution, delivery and performance
by such Foreign Borrower of the Applicable Foreign Borrower Documents
constitute and will constitute private and commercial acts and not public or
governmental acts. Neither such Foreign Borrower nor any of its property has
any immunity from jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) under the laws of the jurisdiction in which
such Foreign Borrower is organized and existing in respect of its obligations
under the Applicable Foreign Borrower Documents. 

                    (b)
The Applicable Foreign Borrower Documents are in proper legal form under the
Laws of the jurisdiction in which such Foreign Borrower is organized and
existing for the enforcement thereof against such Foreign Borrower under the
Laws of such jurisdiction, and to ensure the legality, validity,
enforceability, priority or admissibility in evidence of the Applicable Foreign
Borrower Documents. It is not necessary to ensure the legality, validity,
enforceability, priority or admissibility in evidence of the Applicable Foreign
Borrower Documents that the Applicable Foreign Borrower Documents be filed,
registered or recorded with, or executed or notarized before, any court or
other authority in the jurisdiction in which such Foreign Borrower is organized
and existing or that any registration charge or stamp or similar tax be paid on
or in respect of the Applicable Foreign Borrower Documents or any other
document, except for (i) any such filing, registration, recording, execution or
notarization as has been made or is not required to be made until the
Applicable Foreign Borrower Document or any other document is sought to be
enforced and (ii) any charge or tax as has been timely paid. 

                    (c)
There is no tax, levy, impost, duty, fee, assessment or other governmental
charge, or any deduction or withholding, imposed by any Governmental Authority
in or of the jurisdiction in which such Foreign Borrower is organized and
existing either (i) on or by virtue of the execution or delivery of the
Applicable Foreign Borrower Documents or (ii) on any payment to be made by such
Foreign Borrower pursuant to the Applicable Foreign Borrower Documents, except
as has been disclosed to the Administrative Agent.

                    (d)
The execution, delivery and performance of the Applicable Foreign Borrower
Documents executed by such Foreign Borrower are, under applicable foreign
exchange control regulations of the jurisdiction in which such Foreign Borrower
is organized and existing, not subject to any notification or authorization
except (i) such as have been made or obtained or (ii) such as cannot be made or
obtained until a later date (provided that any notification or authorization
described in clause (ii) shall be made or obtained as soon as is reasonably
practicable).

                    (e)
Prior to any Foreign Borrower requesting a Loan pursuant to Section 2.02 or
requesting the issuance of a Letter of Credit pursuant to Section 2.03, such
Foreign Borrower shall deliver to the Administrative Agent a favorable opinion
of special foreign counsel from the country of formation of such Foreign
Borrower as to the matters set forth in this Section 5.18, reasonably
acceptable in form and substance to the Administrative Agent.

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ARTICLE 6

AFFIRMATIVE COVENANTS

So long as any Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Company
shall, and shall (except in the case of the covenants set forth in Sections
6.01, 6.02, and 6.03) cause each Subsidiary to:

          6.01
Financial Statements.
Deliver to the Administrative Agent and each Lender, in form and detail
satisfactory to the Administrative Agent and the Required Lenders: 

                    (a)
as soon as available, but in any event within 90 days after the end of each
fiscal year of the Company, a consolidated balance sheet of the Company and its
Subsidiaries as at the end of such fiscal year, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for
such fiscal year, setting forth in each case in comparative form the figures
for the previous fiscal year, all in reasonable detail and prepared in
accordance with GAAP, such consolidated statements to be audited and
accompanied by a report and opinion of an independent certified public
accountant of nationally recognized standing reasonably acceptable to the
Required Lenders, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception
as to the scope of such audit; 

                    (b)
as soon as available, but in any event within 60 days after the end of each of
the first three fiscal quarters of each fiscal year of the Company, a
consolidated balance sheet of the Company and its Subsidiaries as at the end of
such fiscal quarter, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarter and for
the portion of the Company’s fiscal year then ended, setting forth in each case
in comparative form the figures for the corresponding fiscal quarter of the
previous fiscal year and the corresponding portion of the previous fiscal year,
all in reasonable detail, certified by a Responsible Officer of the Company as
fairly presenting the financial condition, results of operations, shareholders’
equity and cash flows of the Company and its Subsidiaries in accordance with
GAAP, subject only to normal year-end audit adjustments and the absence of
footnotes.

As to any information contained in materials furnished
pursuant to Section 6.02(c), the Company shall not be separately required to
furnish such information under clause (a) or (b) above, but the foregoing shall
not be in derogation of the obligation of the Company to furnish the
information and materials described in clauses (a) and (b) above at the times specified
therein.

          6.02
Certificates; Other Information.
Deliver to the Administrative Agent and each Lender, in form and detail
satisfactory to the Administrative Agent and the Required Lenders:

                    (a)
concurrently with the delivery of the financial statements referred to in
Section 6.01(a), a certificate of its independent certified public accountants
certifying such financial statements;

                    (b)
concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b) a duly completed Compliance Certificate signed by a
Responsible Officer of the Company; 

- 62 -

                    (c)
promptly after the same are available, copies of each annual report, proxy or
financial statement or other report or communication sent to the stockholders
of the Company, and copies of all annual, regular, periodic and special reports
and registration statements which the Company may file or be required to file
with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934,
and not otherwise required to be delivered to the Administrative Agent pursuant
hereto; 

                    (d)
promptly, and in any event within five Business Days after receipt thereof by
any Loan Party or any Subsidiary thereof, copies of each notice or other
correspondence received from the SEC (or comparable agency in any applicable
non-U.S. jurisdiction) concerning any investigation or possible investigation
regarding financial or other operational results of any Loan Party or any
Subsidiary thereof; and

                    (e)
promptly, such additional information regarding the business, financial or
corporate affairs of the Company or any Subsidiary, or compliance with the
terms of the Loan Documents, as the Administrative Agent or any Lender may from
time to time reasonably request.

Documents required to be delivered pursuant to Section
6.01(a) or (b) or Section 6.02(c) (to the extent any such documents are
included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on
the date (i) on which the Company posts such documents, or provides a link
thereto on the Company’s website on the Internet at the website address listed
on Schedule 10.02; or (ii) on which such documents are posted on the
Company’s behalf on an Internet or intranet website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent); provided
that: (i) the Company shall deliver paper copies of such documents to the
Administrative Agent or any Lender that requests the Company to deliver such
paper copies and shall continue to provide such paper copies until a written
request to cease delivering paper copies is given by the Administrative Agent
or such Lender and (ii) the Company shall notify the Administrative Agent and
each Lender (by telecopier or electronic mail) of the posting of any such
documents and provide to the Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. Notwithstanding anything
contained herein, in every instance the Company shall be required to provide
paper copies of the Compliance Certificates required by Section 6.02(b) to the
Administrative Agent. Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have
no responsibility to monitor compliance by the Company with any such request
for delivery, and each Lender shall be solely responsible for requesting
delivery to it or maintaining its copies of such documents.

Each Borrower hereby acknowledges that (a) the
Administrative Agent and/or the Joint Lead Arrangers will make available to the
Lenders and the L/C Issuer materials and/or information provided by or on
behalf of such Borrower hereunder (collectively, “Borrower Materials”)
by posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders may be
“public-side” Lenders (i.e., Lenders that do not wish to receive material
non-public information with respect to any Borrower or its securities) (each, a
“Public Lender”). Each Borrower hereby agrees that (w) all Borrower
Materials that are to be made available to Public Lenders shall be clearly and
conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first

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page thereof; (x) by marking Borrower Materials
“PUBLIC,” the Borrowers shall be deemed to have authorized the Administrative
Agent, the Joint Lead Arrangers, the L/C Issuer and the Lenders to treat such
Borrower Materials as either publicly available information or not material
information (although it may be sensitive and proprietary) with respect to the
Borrowers or their respective securities for purposes of United States Federal
and state securities laws; (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated
“Public Investor;” and (z) the Administrative Agent and the Joint Lead
Arrangers shall be entitled to treat any Borrower Materials that are not marked
“PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Investor”, provided that the Borrower shall not have
any obligation hereunder to mark any Borrower materials as “Public”.

          6.03
Notices. Promptly
notify the Administrative Agent and each Lender:

                   (a)
of the occurrence of any Default; provided however that, no notice shall
be required of any Default under any covenant contained in Article 6 if the
Company reasonably believes that such Default will be cured within the
applicable cure period, if any; 

                   (b)
of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) breach or non-performance of, or any
default under, a Contractual Obligation of the Company or any Subsidiary; (ii)
any dispute, litigation, investigation, proceeding or suspension between the
Company or any Subsidiary and any Governmental Authority; or (iii) the
commencement of, or any material development in, any litigation or proceeding
affecting the Company or any Subsidiary, including pursuant to any applicable
Environmental Laws; 

                   (c)
of the occurrence of any ERISA Event; and

                   (d)
of any material change in accounting policies or financial reporting practices
by the Company or any Subsidiary. 

Each notice pursuant to this Section shall be
accompanied by a statement of a Responsible Officer of the Company setting
forth details of the occurrence referred to therein and stating what action the
Company has taken and proposes to take with respect thereto. Each notice
pursuant to Section 6.03(a) shall describe with particularity any and all
provisions of this Agreement and any other Loan Document that have been
breached.

          6.04
Payment of Obligations.
Pay and discharge as the same shall become due and payable, all its obligations
and liabilities, including (a) all tax liabilities, assessments and
governmental charges or levies upon it or its properties or assets, and (b) all
lawful claims which, if unpaid, would by law become a Lien upon its property,
unless in any such case, the same are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves
have been set aside and are being maintained in accordance with GAAP by the
Company or such Subsidiary. Pay and discharge as the same shall become due and
payable all Indebtedness, but subject to any subordination provisions contained
in any instrument or agreement evidencing such Indebtedness.

          6.05
Preservation of Existence, Etc.
(a) Preserve, renew and maintain in full force and effect its legal existence
and good standing under the Laws of the jurisdiction of its organization except
in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises
necessary or desirable in

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the normal conduct of its business, except to the
extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of
which would reasonably be expected to have a Material Adverse Effect.

          6.06
Maintenance of Properties.
(a) Maintain, preserve and protect all of its material properties and equipment
necessary in the operation of its business in good working order and condition,
ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals
and replacements thereof except where the failure to do so would not reasonably
be expected to have a Material Adverse Effect; and (c) use the standard of care
typical in the industry in the operation and maintenance of its facilities.

          6.07
Maintenance of Insurance.
Maintain with financially sound and reputable insurance companies not
Affiliates of the Company, insurance with respect to its properties and
business against loss or damage of the kinds customarily insured against by
Persons engaged in the same or similar business, of such types and in such
amounts as are customarily carried under similar circumstances by such other
Persons and providing for not less than 30 days’ prior notice to the
Administrative Agent of termination, lapse or cancellation of such insurance.

          6.08
Compliance with Laws.
Comply in all material respects with the requirements of all Laws and all
orders, writs, injunctions and decrees applicable to it or to its business or
property, except in such instances in which (a) such requirement of Law or
order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted; or (b) the failure to comply
therewith would not reasonably be expected to have a Material Adverse Effect. 

          6.09
Books and Records. (a) Maintain proper books of record and account, in which full, true and correct
entries in conformity with GAAP consistently applied shall be made of all
financial transactions and matters involving the assets and business of the
Company or such Subsidiary, as the case may be; and (b) maintain such books of
record and account in material conformity with all applicable requirements of
any Governmental Authority having regulatory jurisdiction over the Company or
such Subsidiary, as the case may be.

          6.10
Inspection Rights.
Permit representatives and independent contractors of the Administrative Agent
and each Lender to visit any of its properties, all at the expense of the
Company and at such reasonable times during normal business hours and as often
as may be reasonably desired, upon reasonable advance notice to the Company;
provided, however, that when an Event of Default exists the Administrative
Agent or any Lender (or any of their respective representatives or independent
contractors) may visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or
abstracts therefrom, and to discuss its affairs, finances and accounts with its
directors, officers, and independent public accountants at the expense of the
Company at any time during normal business hours and without advance notice. 

          6.11
Use of Proceeds.
Use the proceeds of the Credit Extensions for general corporate purposes not in
contravention of any Law or of any Loan Document.

          6.12
Approvals and Authorizations.
Maintain all material authorizations, consents, approvals and licenses from,
exemptions of, and filings and registrations with, each Governmental Authority
of the jurisdiction in which each Borrower is organized and existing,

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and all material approvals and consents of each other
Person in such jurisdiction, in each case that are required in connection with
the Loan Documents.

          6.13
Additional Subsidiary Guarantors.
Notify the Administrative Agent at the time that any Person becomes a
Subsidiary, and promptly thereafter (and in any event within 30 days), cause
such Person (a) if such Person is a (i) a Foreign Subsidiary which may become a
Subsidiary Guarantor without adverse tax consequences to the Company, or (ii) a
Domestic Subsidiary to become a Subsidiary Guarantor, on a joint and several
basis with all other Subsidiaries Guarantors, by executing and delivering to
the Administrative Agent a counterpart of the Subsidiary Guaranty or such other
document as the Administrative Agent shall deem appropriate for such purpose,
and (b) to deliver to the Administrative Agent documents of the types referred
to in clauses (iii) and (iv) of Section 4.01(a) and favorable opinions of
counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to in
clause (a)), all in form, content and scope reasonably satisfactory to the
Administrative Agent. If a Foreign Subsidiary cannot become a Subsidiary
Guarantor for all of the Obligations without adverse tax consequences, but can
become a Subsidiary Guarantor for a portion of the Obligations without such tax
consequences, then such Foreign Subsidiary shall become a Subsidiary Guarantor
for only such portion of the Obligations which will not result in adverse tax
consequences to the Company, provided however that, any Foreign
Subsidiary that is a guarantor of the Private Placement shall be a Subsidiary
Guarantor. 

ARTICLE 7

NEGATIVE COVENANTS

So long as any Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Company
shall not, nor shall it permit any Subsidiary to, directly or indirectly:

          7.01
Liens. Create,
incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following: 

                    (a)
Liens pursuant to any Loan Document; 

                    (b)
Liens existing on the date hereof and listed on Schedule 7.01 and any
renewals or extensions thereof, provided that (i) the property covered thereby
is not changed, (ii) the amount secured or benefited thereby is not increased,
(iii) the direct or any contingent obligor with respect thereto is not changed,
and (iv) any renewal or extension of the obligations secured or benefited
thereby is permitted by Section 7.03(b); 

                    (c)
Liens for taxes not yet due or which are being contested in good faith and by
appropriate proceedings diligently conducted, if adequate reserves with respect
thereto are maintained on the books of the applicable Person in accordance with
GAAP; 

                    (d)
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business which are not overdue for a
period of more than 30 days or which are being contested in good faith and by
appropriate proceedings diligently conducted, if adequate reserves with respect
thereto are maintained on the books of the applicable Person; 

- 66 -

                    (e)
pledges or deposits in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other social security
legislation, other than any Lien imposed by ERISA; 

                    (f)
deposits to secure the performance of bids, trade contracts and leases (other
than Indebtedness), statutory obligations, surety bonds (other than bonds
related to judgments or litigation), performance bonds and other obligations of
a like nature incurred in the ordinary course of business; 

                    (g)
easements, rights-of-way, restrictions and other similar encumbrances affecting
real property which, in the aggregate, are not substantial in amount, and which
do not in any case materially detract from the value of the property subject
thereto or materially interfere with the ordinary conduct of the business of
the applicable Person; 

                    (h)
Liens securing judgments for the payment of money not constituting an Event of
Default under Section 8.01(h) or securing appeal or other surety bonds related
to such judgments;

                    (i)
Purchase money mortgages or purchase money security interests, Liens securing
industrial revenue bonds, conditional sale arrangements and other similar
security interests, on property or assets acquired by any Borrower or any
Subsidiary of any Borrower simultaneously (hereinafter referred to individually
as a “Purchase Money Security Interest”) or replacements thereof, upon
incurring Indebtedness the proceeds of which are used to acquire such property
or asset; provided, however, that:

                         (i)
The transaction in which any Purchase Money Security Interest is proposed to be
created is not then prohibited by this Agreement;

                         (ii)
Any Purchase Money Security Interest shall attach only to the property or asset
so acquired in such transaction or any addition thereto or replacement thereof
and shall not extend to or cover any other assets or properties of any Borrower
or any of their respective Subsidiaries; and

                         (iii)
The Indebtedness secured or covered by any Purchase Money Security Interest
together with any other Indebtedness secured by the property or asset acquired
shall not exceed 100% of the lesser of the cost or fair market value of the
property or asset acquired and shall not be renewed, extended or prepaid from
the proceeds of any borrowing by any Borrower or any of their respective
Subsidiaries;

                    (j)
Liens in favor of customers for amounts paid to any Borrower or any Subsidiary
of any Borrower as progress payments;

                    (k)
Liens to secure non recourse Indebtedness, subject to the restrictions set
forth in Section 7.03; and

                    (l)
Liens to secure Deemed Debt; provided that, such Liens are limited to
the accounts receivable and/or inventory financed in connection with the
incurring of such Deemed Debt.

          7.02
Swap Contracts.
Enter into any Swap Contract for speculative purposes and not in connection
with hedging interest rate or currency exchange exposure of such Person.

          7.03
Indebtedness.
Create, incur, assume or suffer to exist any Indebtedness, except:

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                    (a)
Indebtedness under the Loan Documents;

                    (b)
Indebtedness outstanding (or committed to) on the date hereof and listed on Schedule
7.03 and any refinancings, refundings, renewals or extensions thereof;
provided that (i) the amount of such Indebtedness is not increased at the time
of such refinancing, refunding, renewal or extension except by an amount equal
to a reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection with such refinancing and by an amount equal
to any existing commitments unutilized thereunder and (ii) the terms relating to
principal amount, amortization, maturity, collateral (if any) and subordination
(if any), and other material terms taken as a whole, of any such refinancing,
refunding, renewing or extending Indebtedness, and of any agreement entered
into and of any instrument issued in connection therewith, are no less
favorable in any material respect to the Loan Parties or the Lenders than the
terms of any agreement or instrument governing the Indebtedness being
refinanced, refunded, renewed or extended and the interest rate applicable to
any such refinancing, refunding, renewing or extending Indebtedness does not
exceed the then applicable market interest rate;

                    (c)
[Reserved];

                    (d)
Indebtedness which in the aggregate for all Subsidiaries of the Company at any
one time does not exceed $70,000,000; 

                    (e)
Deemed Debt which in the aggregate at any one time does not exceed
$150,000,000; and

                    (f)
Indebtedness of the Company incurred after the date hereof (“Additional
Indebtedness”) which (i) is not senior to the Obligations, (ii) is not
subject to covenants more restrictive than those set forth herein in Articles 6
and 7, provided however that if such Additional Indebtedness consists
solely of the private placement of term notes of the Borrowers, the
documentation for such private placement may contain additional covenants not
herein contained to the extent, but only to the extent, such additional
covenants are substantively identical to covenants originally contained in the
note purchase agreements dated September 25, 2003, and December 1, 2005 for the
Private Placement without giving effect to any amendment thereof, and (iii)
with respect to Indebtedness having a principal amount of $50,000,000.00 or more,
does not provide for any maturity, payment or prepayment of the principal
amount of such Indebtedness prior to the date six months following the Maturity
Date in effect at the time of such Indebtedness is incurred; provided,
that on the date of the incurrence of such Additional Indebtedness, and both
before and after the existence thereof and the application of any proceeds
related thereto, (A) there is no Event of Default or Default with respect to
any Borrower or any Subsidiaries of any Borrower and (B) the Company must be in
pro forma compliance with the financial covenants set forth in Section 7.11.

          7.04
Fundamental Changes.
Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose
of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or
in favor of any Person, except that, so long as no Default exists or would
result therefrom:

                    (a)
any Subsidiary may merge with (i) the Company, provided that the Company shall
be the continuing or surviving Person, or (ii) any one or more other
Subsidiaries,

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provided that when any Subsidiary Guarantor is merging
with another Subsidiary, the Subsidiary Guarantor shall be the continuing or
surviving Person; and

                    (b)
any Subsidiary may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to the Company or to another Subsidiary;
provided that if the transferor in such a transaction is a Subsidiary
Guarantor, then the transferee must either be the Company or a Subsidiary
Guarantor.

          7.05
Dispositions.
Make any Disposition or enter into any agreement to make any Disposition,
except: 

                   (a)
Dispositions of Investments in the ordinary course of business by any Borrower
or any Subsidiary of any Borrower, including without limitation, transactions
undertaken for the purpose of restructuring all or a part of the portfolio of
Investments owned by such Borrower or Subsidiary thereof; and

                   (b)
Dispositions of its property that together with all other property of its
Subsidiaries previously leased, sold or disposed of (other than Investments
sold in the ordinary course of business by Subsidiaries of Borrowers) as
permitted by this Section 7.05 since the date hereof do not constitute a
Substantial Portion of the property of the Company and its consolidated
Subsidiaries; and

                   (c)
non-exclusive licenses of IP Rights or other property in the ordinary course of
business,

provided, however,
that any Disposition pursuant to clauses (a) through (c) shall be for fair
market value.

          7.06
Restricted Payments.
Declare or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that, so long as no
Default shall have occurred and be continuing at the time of any action
described below or would result therefrom (including pro forma
compliance on a pre- and post-Restricted Payment basis with the financial
covenants set forth in Section 7.11:

                   (a)
each Subsidiary may make Restricted Payments to the Company, the Subsidiary
Guarantors and any other Person that owns an Equity Interest in such Subsidiary,
ratably according to their respective holdings of the type of Equity Interest
in respect of which such Restricted Payment is being made;

                   (b)
the Company and each Subsidiary may declare and make dividend payments or other
distributions payable in the common stock or other Equity Interests of such
Person or cash; and

                   (c)
the Company and each Subsidiary may purchase, redeem or otherwise acquire
Equity Interests issued by it with the proceeds received from the substantially
concurrent issue of new shares of its common stock or other common Equity
Interests. 

          7.07
Change in Nature of Business.
Engage in any material line of business substantially different from those
lines of business conducted by the Company and its Subsidiaries on the date
hereof or any business substantially related or incidental thereto.

          7.08
Transactions with Affiliates.
Enter into any transaction of any kind with any Affiliate of the Company,
whether or not in the ordinary course of business, other than on fair

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and reasonable terms substantially as favorable to the
Company or such Subsidiary as would be obtainable by the Company or such
Subsidiary at the time in a comparable arm’s length transaction with a Person
other than an Affiliate, provided that the foregoing restriction shall not
apply to transactions between or among the Company and any Subsidiary Guarantor
or between and among any Subsidiary Guarantors.

          7.09
Burdensome Agreements.
Enter into any Contractual Obligation (other than this Agreement or any other
Loan Document) that (a) limits the ability (i) of any Subsidiary to make
Restricted Payments to the Company or any Subsidiary Guarantor or to otherwise
transfer property to the Company or any Subsidiary Guarantor, (ii) of any
Subsidiary to Guarantee the Indebtedness of the Company or (iii) of the Company
or any Subsidiary to create, incur, assume or suffer to exist Liens on property
of such Person; provided, however, that this clause (iii) shall not
prohibit any negative pledge incurred or provided in favor of any holder of
Indebtedness permitted under Section 7.03(e) solely to the extent any such
negative pledge relates to the property financed by or the subject of such
Indebtedness; or (b) requires the grant of a Lien to secure an obligation of
such Person if a Lien is granted to secure another obligation of such Person.

          7.10
Use of Proceeds.
Use the proceeds of any Credit Extension, whether directly or indirectly, and
whether immediately, incidentally or ultimately, to purchase or carry margin
stock (within the meaning of Regulation U of the FRB) or to extend credit to
others for the purpose of purchasing or carrying margin stock or to refund
indebtedness originally incurred for such purpose.

          7.11
Financial Covenants.

                   (a)
Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage
Ratio as of the end of any fiscal quarter of the Company to be less than 3.0x.

                   (b)
Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio at any time
to exceed 60.0%.

          7.12
Material Subsidiaries.
The Company will not permit the total assets of all Material Subsidiaries and
the Company to be less than 85% of the total assets of the Company and its
Subsidiaries (determined on a consolidated basis) as of the end of the most
recently completed fiscal quarter for which financial information is then
available, determined in accordance with GAAP; provided that the Company shall
have the right to designate any of its Subsidiaries that is not then a Material
Subsidiary as a Material Subsidiary in order to comply with this Section, so
long as such designation is made no later than the last day of delivery of a
quarterly Compliance Certificate hereunder for the end of the preceding fiscal
quarter for which such designation is made.

          7.13
Mergers; Acquisitions; Investments.
No Borrower will, nor will it permit any of its Subsidiaries to:(a) merge or
consolidate with any Person, (b) acquire all or substantially all of the assets
or any of the capital stock of any Person, or (c) make any other Investment; provided,
however, that (i) any Borrower or any of its Subsidiaries may merge or
consolidate with another Person or acquire all or substantially all of the
assets or capital stock of another Person if (A) such Borrower or such
Subsidiary, as the case may be, is the surviving corporation, (B) the Person
whose capital stock or assets are being acquired or that is merging into a
Borrower or any Subsidiary of a Borrower is in a similar line of business as
such Borrower, as determined by the

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Agent, (C) the Company and its Subsidiaries will be in
compliance, on a pro forma basis, both before and after the merger,
consolidation or acquisition, with each of the financial covenants in Section
7.11, and (D) after giving effect to any such merger, consolidation or
acquisition, no Default would then exist and (ii) any Borrower or any of its
Subsidiaries may make any other Investment if the Company and its Subsidiaries
will be in compliance, on a pro forma basis, both before and after such
Investment, with each of the financial covenants in Section 7.11.

ARTICLE 8

EVENTS OF DEFAULT AND REMEDIES

          8.01
Events of Default.
Any of the following shall constitute an Event of Default:

                   (a)
Non-Payment. Any Borrower or any other Loan Party fails to pay (i) when
and as required to be paid herein, and in the currency required hereunder, any
amount of principal of any Loan or any L/C Obligation, or (ii) within five days
after the same becomes due, any interest on any Loan or on any L/C Obligation,
or any fee due hereunder or any other amount payable hereunder or under any
other Loan Document; or 

                   (b)
Specific Covenants. (i) The Company fails to perform or observe any
term, covenant or agreement contained in (A) any of Section 6.10, 6.11, 7.01,
7.03, 7.06, 7.11 and 7.12 or (B) any of Section 6.01, 6.02, 6.03 or 6.13 and
such failure continues for five days, or (ii) any Subsidiary Guarantor fails to
perform or observe any term, covenant or agreement contained in the Subsidiary
Guaranty; or 

                   (c)
Other Defaults. Any Loan Party fails to perform or observe any other
covenant or agreement (not specified in subsection (a) or (b) above) contained
in any Loan Document on its part to be performed or observed and such failure
continues for 30 days or if there occurs an “event of default” as defined in
any other Loan Document after expiration of any applicable grace period
contained therein; or 

                   (d)
Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of the
Company or any other Loan Party herein, in any other Loan Document, or in any
document delivered in connection herewith or therewith shall be incorrect or
misleading in any material respect when made or deemed made, except that it
shall be an Event of Default if any such representation, warranty, certification
or statement of fact that is qualified by reference to materiality or Material
Adverse Effect shall be incorrect or misleading in any respect; or 

                   (e)
Cross-Default. (i) The Company or any Subsidiary (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee
(other than Indebtedness hereunder) having an aggregate principal amount
(including undrawn committed or available amounts and including amounts owing
to all creditors under any combined or syndicated credit arrangement) of more
than the Threshold Amount, or (B) fails to observe or perform any other
agreement or condition relating to any such Indebtedness or Guarantee or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event
is to cause, or to permit the holder or holders of such Indebtedness or the
beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf
of such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to be demanded or to become due
or to be repurchased, prepaid, defeased or

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redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to
its stated maturity, or such Guarantee to become payable or cash collateral in
respect thereof to be demanded; or (ii) there occurs under any Swap Contract an
Early Termination Date (as defined in such Swap Contract) resulting from (A)
any event of default under such Swap Contract as to which the Company or any
Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B)
any Termination Event (as so defined) under such Swap Contract as to which the
Company or any Subsidiary is an Affected Party (as so defined) and, in either
event, the Swap Termination Value owed by the Company or such Subsidiary as a
result thereof is greater than the Threshold Amount; or 

                    (f)
Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or any proceeding under any
Debtor Relief Law relating to any such Person or to all or any material part of
its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered
in any such proceeding; or 

                    (g)
Inability to Pay Debts; Attachment. (i) The Company or any Subsidiary
becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due, or (ii) any writ or warrant of attachment or
execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or 

                    (h)
Judgments. There is entered against the Company or any Subsidiary (i) a
final judgment or order for the payment of money in an aggregate amount
exceeding the Threshold Amount (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage), or (ii)
any one or more non-monetary final judgments that have, or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
and, in either case, (A) enforcement proceedings are commenced by any creditor
upon such judgment or order, or (B) there is a period of 30 consecutive days
during which a stay of enforcement of such judgment, by reason of a pending
appeal or otherwise, is not in effect; or 

                    (i)
ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result
in liability of the Company under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of the
Threshold Amount, or (ii) the Company or any ERISA Affiliate fails to pay when
due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of ERISA
under a Multiemployer Plan in an aggregate amount in excess of the Threshold
Amount; or 

                    (j)
Invalidity of Loan Documents. Any provision of any Loan Document, at any
time after its execution and delivery and for any reason other than as
expressly permitted hereunder or satisfaction in full of all the Obligations,
ceases to be in full force and effect; or any Loan Party or any other Person
contests in any manner the validity or enforceability of any provision of any
Loan Document; or any Loan Party denies that it has any or further liability or

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obligation under any Loan Document, or purports to
revoke, terminate or rescind any provision of any Loan Document; or 

                    (k)
Change of Control. There occurs any Change of Control; or

                    (l)
Company Sale of any Borrower, etc. The Company shall cease to own,
beneficially or of record, directly or indirectly, 100% of the issued and
outstanding shares of capital stock of any Material Subsidiary or any other
Borrower.

          8.02
Remedies Upon Event of Default.
If any Event of Default occurs and is continuing, the Administrative Agent
shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

                    (a)
declare the commitment of each Lender to make Loans and any obligation of the
L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated; 

                    (b)
declare the unpaid principal amount of all outstanding Loans, all interest
accrued and unpaid thereon, and all other amounts owing or payable hereunder or
under any other Loan Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by the Borrowers; 

                    (c)
require that the Company Cash Collateralize the L/C Obligations (in an amount
equal to the then Outstanding Amount thereof); and

                    (d)
exercise on behalf of itself and the Lenders all rights and remedies available
to it and the Lenders under the Loan Documents;

provided, however,
that upon the occurrence of an actual or deemed entry of an order for relief
with respect to any Borrower under the Bankruptcy Code of the United States,
the obligation of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid
principal amount of all outstanding Loans and all interest and other amounts as
aforesaid shall automatically become due and payable, and the obligation of the
Company to Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the
Administrative Agent or any Lender.

          8.03
Application of Funds.
After the exercise of remedies provided for in Section 8.02 (or after the Loans
have automatically become immediately due and payable and the L/C Obligations
have automatically been required to be Cash Collateralized as set forth in the
proviso to Section 8.02), any amounts received on account of the Obligations
shall be applied by the Administrative Agent in the following order:

                    First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of
counsel to the Administrative Agent and amounts payable under Article 3)
payable to the Administrative Agent in its capacity as such;

                    Second,
to payment of that portion of the Obligations constituting fees, indemnities
and other amounts payable to the Lenders and the L/C Issuer (including fees,
charges and disbursements of counsel to the respective Lenders and the L/C
Issuer (including fees and time charges for attorneys who may be employees of
any Lender or the L/C Issuer) and

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amounts payable under Article 3), ratably among them
in proportion to the amounts described in this clause Second payable to them;

                    Third,
to payment of that portion of the Obligations constituting accrued and unpaid
interest on the Loans, L/C Borrowings and other Obligations, ratably among the
Lenders and the L/C Issuer in proportion to the respective amounts described in
this clause Third payable to them;

                    Fourth,
to payment of that portion of the Obligations constituting unpaid principal of
the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in
proportion to the respective amounts described in this clause Fourth held by
them;

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

                    Last,
the balance, if any, after all of the Obligations have been indefeasibly paid
in full, to the Company or as otherwise required by Law.

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

ARTICLE 9

ADMINISTRATIVE AGENT

          9.01
Appointment and Authority.
Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of
America to act on its behalf as the Administrative Agent hereunder and under
the other Loan Documents and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. The provisions of this Article
are solely for the benefit of the Administrative Agent, the Lenders and the L/C
Issuer, and neither any Borrower nor any other Loan Party shall have rights as
a third party beneficiary of any of such provisions.

          9.02
Rights as a Lender.
The Person serving as the Administrative Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the
context otherwise requires, include the Person serving as the Administrative
Agent hereunder in its individual capacity. Such Person and its Affiliates may
accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
the Borrowers or any Subsidiary or other Affiliate thereof as if such Person
were not the Administrative Agent hereunder and without any duty to account
therefor to the Lenders.

          9.03
Exculpatory Provisions.
The Administrative Agent shall not have any duties or obligations except those
expressly set forth herein and in the other Loan Documents. Without limiting
the generality of the foregoing, the Administrative Agent:

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                    (a)
shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing;

                    (b)
shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Administrative
Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly
provided for herein or in the other Loan Documents), provided that the
Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and 

                    (c)
shall not, except as expressly set forth herein and in the other Loan
Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to any of the Borrowers or any of their
respective Affiliates that is communicated to or obtained by the Person serving
as the Administrative Agent or any of its Affiliates in any capacity.

                    The
Administrative Agent shall not be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence of
its own gross negligence or willful misconduct. The Administrative Agent shall
be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by the Company, a
Lender or the L/C Issuer.

                    The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (ii) the contents of
any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article 4 or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative
Agent.

          9.04    
Reliance by Administrative Agent.
The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or
otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In
determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative Agent may presume that such condition is
satisfactory to such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such
Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of

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Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Company), independent accountants and
other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts.

          9.05
Delegation of Duties.
The Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub agents appointed by the Administrative Agent. The Administrative
Agent and any such sub agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Related Parties. The
exculpatory provisions of this Article shall apply to any such sub agent and to
the Related Parties of the Administrative Agent and any such sub agent, and
shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as
Administrative Agent.

          9.06
Resignation of Administrative Agent.
The Administrative Agent may at any time give notice of its resignation to the
Lenders, the L/C Issuer and the Company. Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with
the Company, to appoint a successor, which shall be a bank with an office in
the United States, or an Affiliate of any such bank with an office in the
United States. If no such successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders and the L/C Issuer,
appoint a successor Administrative Agent meeting the qualifications set forth
above; provided that if the Administrative Agent shall notify the
Company and the Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents (except that in the case of any collateral security held by the
Administrative Agent on behalf of the Lenders or the L/C Issuer under any of
the Loan Documents, the retiring Administrative Agent shall continue to hold
such collateral security until such time as a successor Administrative Agent is
appointed) and (2) all payments, communications and determinations provided to
be made by, to or through the Administrative Agent shall instead be made by or
to each Lender and the L/C Issuer directly, until such time as the Required
Lenders appoint a successor Administrative Agent as provided for above in this
Section. Upon the acceptance of a successor’s appointment as Administrative
Agent hereunder, such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged
from all of its duties and obligations hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this
Section). The fees payable by the Company to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Company and such successor. After the retiring Administrative
Agent’s resignation hereunder and under the other Loan Documents, the
provisions of this Article and Section 10.04 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

                    Any
resignation by Bank of America as Administrative Agent pursuant to this Section
shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon
the

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acceptance of a successor’s appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
L/C Issuer and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line
Lender shall be discharged from all of their respective duties and obligations
hereunder or under the other Loan Documents, and (c) the successor L/C Issuer
shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or make other arrangement
satisfactory to the retiring L/C Issuer to effectively assume the obligations
of the retiring L/C Issuer with respect to such Letters of Credit.

          9.07
Non-Reliance on Administrative Agent
and Other Lenders. Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Lender and
the L/C Issuer also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any other Loan Document
or any related agreement or any document furnished hereunder or thereunder.

          9.08
No Other Duties, Etc.
Anything herein to the contrary notwithstanding, none of the Joint Lead
Arrangers, Joint Bookrunner or the Syndication Agent listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement
or any of the other Loan Documents, except in its capacity, as applicable, as
the Administrative Agent, a Lender or the L/C Issuer hereunder.

          9.09
Administrative Agent May File Proofs of
Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on any Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise

                    (a)
to file and prove a claim for the whole amount of the principal and interest
owing and unpaid in respect of the Loans, L/C Obligations and all other
Obligations that are owing and unpaid and to file such other documents as may
be necessary or advisable in order to have the claims of the Lenders, the L/C
Issuer and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer
and the Administrative Agent and their respective agents and counsel and all
other amounts due the Lenders, the L/C Issuer and the Administrative Agent
under Sections 2.03(i) and (j), 2.09 and 10.04) allowed in such judicial
proceeding; and

                    (b)
to collect and receive any monies or other property payable or deliverable on
any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding
is hereby authorized by each Lender and the L/C Issuer to make such payments to
the Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders and the L/C
Issuer, to pay to the

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Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent
and its agents and counsel, and any other amounts due the Administrative Agent
under Sections 2.09 and 10.04.

Nothing contained herein shall be deemed to authorize
the Administrative Agent to authorize or consent to or accept or adopt on
behalf of any Lender or the L/C Issuer any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender
or to authorize the Administrative Agent to vote in respect of the claim of any
Lender in any such proceeding.

          9.10
Guaranty Matters.
The Lenders and the L/C Issuer irrevocably authorize the Administrative Agent,
at its option and in its discretion, to release any Subsidiary Guarantor from
its obligations under the Subsidiary Guaranty if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder.

                    Upon
request by the Administrative Agent at any time, the Required Lenders will
confirm in writing the Administrative Agent’s authority to release any
Subsidiary Guarantor from its obligations under the Subsidiary Guaranty
pursuant to this Section 9.10.

ARTICLE 10

MISCELLANEOUS

          10.01
Amendments, Etc.
No amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by the Company or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Company or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no such amendment, waiver or
consent shall:

                    (a)
waive any condition set forth in Section 4.01(a) without the written consent of
each Lender;

                    (b)
extend or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 8.02) without the written consent of such
Lender;

                    (c)
postpone any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees or other amounts due to the Lenders (or
any of them) hereunder or under any other Loan Document without the written
consent of each Lender directly affected thereby;

                    (d)
reduce the principal of, or the rate of interest specified herein on, any Loan
or L/C Borrowing, or (subject to clause (iv) of the second proviso to this
Section 10.01) any fees or other amounts payable hereunder or under any other
Loan Document, or change the manner of computation of any financial ratio
(including any change in any applicable defined term) used in determining the
Applicable Rate that would result in a reduction of any interest rate on any
Loan or L/C Borrowing or any fee payable hereunder without the written consent
of each Lender directly affected thereby; provided, however, that only the
consent of the Required Lenders shall be necessary to amend the definition of
“Default Rate” or to waive any obligation of any Borrower to pay interest or
Letter of Credit Fees at the Default Rate;

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                    (e)
change Section 2.13 or Section 8.03 in a manner that would alter the pro rata
sharing of payments required thereby without the written consent of each
Lender;

                    (f)
amend Section 1.06 or the definition of “Alternative Currency” without the
written consent of each Lender;

                    (g)
change any provision of this Section or the definition of “Required Lenders” or
any other provision hereof specifying the number or percentage of Lenders
required to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender; or

                    (h)
release the Company from the Company Guaranty or all or substantially all of
the Subsidiary Guarantors from the Subsidiary Guaranty without the written
consent of each Lender;

and, provided further, that (i) no amendment,
waiver or consent shall, unless in writing and signed by the L/C Issuer in
addition to the Lenders required above, affect the rights or duties of the L/C
Issuer under this Agreement or any Issuer Document relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Swing Line Lender in addition to the
Lenders required above, affect the rights or duties of the Swing Line Lender
under this Agreement; (iii) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; (iv) Section 10.06(h) may not be
amended, waived or otherwise modified without the consent of each Granting
Lender all or any part of whose Loans are being funded by an SPC at the time of
such amendment, waiver or other modification; and (v) the Fee Letters may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting
Lender shall have any right to approve or disapprove any amendment, waiver or
consent hereunder, except that the Commitment of such Lender may not be
increased or extended without the consent of such Lender.

          10.02
Notices; Effectiveness; Electronic
Communication. 

                    (a)
Notices Generally. Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopier or electronic mail as follows, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be
made to the applicable telephone number, as follows:

                         (i)
if to the Borrowers, the Administrative Agent, the L/C Issuer or the Swing Line
Lender, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 10.02; and 

                         (ii)
if to any other Lender, to the address, telecopier number, electronic mail
address or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier or electronic mail shall be deemed to have
been given when sent (except that, if not given during normal business hours

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for the recipient, shall be deemed to have been given
at the opening of business on the next business day for the recipient). Notices
delivered through electronic communications to the extent provided in
subsection (b) below, shall be effective as provided in such subsection (b).

                    (b)
Electronic Communications. Notices and other communications to the
Lenders and the L/C Issuer hereunder may be delivered or furnished by
electronic communication (including e mail and Internet or intranet websites)
pursuant to procedures approved by the Administrative Agent, provided
that the foregoing shall not apply to notices to any Lender or the L/C Issuer
pursuant to Article 2 if such Lender or the L/C Issuer, as applicable, has
notified the Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. The Administrative Agent or the
Company may, in its discretion, agree to accept notices and other communications
to it hereunder by electronic communications pursuant to procedures approved by
it, provided that approval of such procedures may be limited to
particular notices or communications.

Unless the Administrative Agent otherwise prescribes,
(i) notices and other communications sent to an e-mail address shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice
or other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient, and (ii)
notices or communications posted to an Internet or intranet website shall be
deemed received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such notice
or communication is available and identifying the website address therefor.

                    (c)
Change of Address, Etc. Each of the Borrowers, the Administrative Agent,
the L/C Issuer and the Swing Line Lender may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to
the other parties hereto. Each other Lender may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to
the Company, the Administrative Agent, the L/C Issuer and the Swing Line
Lender.

                    (d)
Reliance by Administrative Agent, L/C Issuer and Lenders. The
Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely
and act upon any notices (including telephonic Committed Loan Notices and Swing
Line Loan Notices) purportedly given by or on behalf of any Borrower even if
(i) such notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified herein, or
(ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof. The Company shall indemnify the Administrative Agent, the
L/C Issuer, each Lender and the Related Parties of each of them from all losses,
costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of any Borrower. All telephonic
notices to and other telephonic communications with the Administrative Agent
may be recorded by the Administrative Agent, and each of the parties hereto
hereby consents to such recording.

          10.03
No Waiver; Cumulative Remedies.
No failure by any Lender or the Administrative Agent to exercise, and no delay
by any such Person in exercising, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or

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partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

          10.04
Expenses; Indemnity; Damage Waiver.

                    (a)
Costs and Expenses. The Company shall pay (i) all reasonable out of
pocket expenses incurred by the Administrative Agent and its Affiliates
(including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents as
required under the Loan Documents or any amendments, modifications or waivers
of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable out
of pocket expenses incurred by the L/C Issuer in connection with the issuance,
amendment, renewal or extension of any Letter of Credit or any demand for
payment thereunder and (iii) all out of pocket expenses incurred by the
Administrative Agent, any Lender or the L/C Issuer (including the fees, charges
and disbursements of any counsel for the Administrative Agent, any Lender or
the L/C Issuer), and shall pay all fees and time charges for attorneys who may
be employees of the Administrative Agent, any Lender or the L/C Issuer in
connection with the enforcement or protection of its rights (A) in connection
with this Agreement and the other Loan Documents, including its rights under
this Section, or (B) in connection with the Loans made or Letters of Credit
issued hereunder, including all such out of pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

                    (b)
Indemnification by the Company. The Company shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the L/C
Issuer, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses
(including the fees, charges and disbursements of any counsel for any
Indemnitee), and shall indemnify and hold harmless each Indemnitee from all
fees and time charges and disbursements for attorneys who may be employees of
any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee
by any third party or by any Borrower or any other Loan Party arising out of,
in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower
or any of its Subsidiaries, or any Environmental Liability related in any way
to any Borrower or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought
by a third party or by the Company or any other Loan Party, and regardless of
whether any Indemnitee is a party thereto, in all cases, whether or not caused
by or arising, in whole or in part, out of the

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comparative, contributory or sole negligence of the
Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by the
Company or any other Loan Party against an Indemnitee for breach in bad faith
of such Indemnitee’s obligations hereunder or under any other Loan Document, if
the Company or such other Loan Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.

                    (c)
Reimbursement by Lenders. To the extent that the Company for any reason
fails to indefeasibly pay any amount required under subsection (a) or (b) of
this Section to be paid by it to the Administrative Agent (or any sub-agent
thereof), the L/C Issuer or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the L/C Issuer or such Related Party, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity
as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with
such capacity. The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.12(d).

                    (d)
Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Borrower shall assert, and hereby waives, any claim against
any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or
the use of the proceeds thereof. No Indemnitee referred to in subsection (b)
above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

                    (e)
Payments. All amounts due under this Section shall be payable not later
than ten Business Days after demand therefor.

                    (f)
Survival. The agreements in this Section shall survive the resignation
of the Administrative Agent and the L/C Issuer, the replacement of any Lender,
the termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

          10.05
Payments Set Aside.
To the extent that any payment by or on behalf of any Borrower is made to the
Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent,
the L/C Issuer or any Lender exercises its right of setoff, and such payment or
the proceeds of such setoff or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including
pursuant to any settlement entered into by the Administrative Agent, the L/C
Issuer or such Lender in its discretion) to be

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repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and
effect as if such payment had not been made or such setoff had not occurred,
and (b) each Lender and the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the applicable Overnight Rate from time to time in
effect, in the applicable currency of such recovery or payment. The obligations
of the Lenders and the L/C Issuer under clause (b) of the preceding sentence
shall survive the payment in full of the Obligations and the termination of
this Agreement.

          10.06
Successors and Assigns.

                    (a)
Successors and Assigns Generally. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that no Borrower may
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and each Lender and no
Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an Eligible Assignee in accordance with the provisions
of subsection (b) of this Section, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section, or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section, or (iv) to an SPC in accordance with the
provisions of subsection (h) or this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

                    (b)
Assignments by Lenders. Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C
Obligations and in Swing Line Loans) at the time owing to it); provided
that 

                         (i)
except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the
case of an assignment to a Lender or an Affiliate of a Lender or an Approved
Fund with respect to a Lender, the aggregate amount of the Commitment (which
for this purpose includes Loans outstanding thereunder) or, if the Commitment
is not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $5,000,000.00 unless
each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Company otherwise consents (each such consent
not to be unreasonably withheld or delayed);

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                         (ii)
each partial assignment shall be made as an assignment of a proportionate part
of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loans or the Commitment assigned, except that this clause (ii)
shall not apply to rights in respect of Swing Line Loans;

                         (iii)
any assignment of a Commitment must be approved by the Administrative Agent,
the L/C Issuer and the Swing Line Lender unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would otherwise
qualify as an Eligible Assignee); and 

                         (iv)
the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500.00, and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire 

Subject to acceptance and recording thereof by the
Administrative Agent pursuant to subsection (c) of this Section, from and after
the effective date specified in each Assignment and Assumption, the Eligible
Assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05, and 10.04 with respect to facts and circumstances occurring
prior to the effective date of such assignment. Upon request, each Borrower (at
its expense) shall execute and deliver a Note to the assignee Lender. Any
assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section.

                    (c)
Register. The Administrative Agent, acting solely for this purpose as an
agent of the Borrowers, shall maintain at the Administrative Agent’s Office a
copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amounts of the Loans and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The
entries in the Register shall be conclusive, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by each of the Borrowers and the L/C
Issuer at any reasonable time and from time to time upon reasonable prior
notice. In addition, at any time that a request for a consent for a material or
substantive change to the Loan Documents is pending, any Lender wishing to consult
with other Lenders in connection therewith may request and receive from the
Administrative Agent a copy of the Register.

                    (d)
Participations. Any Lender may at any time, without the consent of, or
notice to, any Borrower or the Administrative Agent, sell participations to any
Person (other than a natural person or the Company or any of the Company’s
Affiliates or Subsidiaries) (each, a

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“Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations and/or Swing Line Loans) owing to it); provided,
that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations and (iii) the Borrowers, the
Administrative Agent, the Lenders and the L/C Issuer shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement.

                    Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, waiver or other modification described in the first
proviso to Section 10.01 that affects such Participant. Subject to subsection
(e) of this Section, each Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to
subsection (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.08 as though
it were a Lender, provided such Participant agrees to be subject to
Section 2.13 as though it were a Lender.

                    (e)
Limitation upon Participant Rights. A Participant shall not be entitled
to receive any greater payment under Section 3.01 or 3.04 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with the Company’s prior written consent. A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 3.01 unless the Company is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the
Borrowers, to comply with Section 3.01(e) as though it were a Lender.

                    (f)
Certain Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement (including
under its Note(s), if any) to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided
that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

                    (g)
Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be
deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records
Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

                    (h)
Special Purpose Funding Vehicles. Notwithstanding anything to the
contrary contained herein, any Lender (a “Granting Lender”) may grant to
a special purpose funding vehicle identified as such in writing from time to
time by the Granting Lender to the

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Administrative Agent and the Company (an “SPC”) the
option to provide all or any part of any Committed Loan that such Granting
Lender would otherwise be obligated to make pursuant to this Agreement;
provided that (i) nothing herein shall constitute a commitment by any SPC to
fund any Committed Loan, and (ii) if an SPC elects not to exercise such option
or otherwise fails to make all or any part of such Committed Loan, the Granting
Lender shall be obligated to make such Committed Loan pursuant to the terms
hereof or, if it fails to do so, to make such payment to the Administrative
Agent as is required under Section 2.12(b)(ii). Each party hereto hereby agrees
that (i) neither the grant to any SPC nor the exercise by any SPC of such
option shall increase the costs or expenses or otherwise increase or change the
obligations of the Borrowers under this Agreement (including its obligations
under Section 3.04), (ii) no SPC shall be liable for any indemnity or similar
payment obligation under this Agreement for which a Lender would be liable, and
(iii) the Granting Lender shall for all purposes, including the approval of any
amendment, waiver or other modification of any provision of any Loan Document,
remain the lender of record hereunder. The making of a Committed Loan by an SPC
hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Committed Loan were made by such Granting Lender. In
furtherance of the foregoing, each party hereto hereby agrees (which agreement
shall survive the termination of this Agreement) that, prior to the date that
is one year and one day after the payment in full of all outstanding commercial
paper or other senior debt of any SPC, it will not institute against, or join
any other Person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency, or liquidation proceeding under the
laws of the United States or any State thereof. Notwithstanding anything to the
contrary contained herein, any SPC may (i) with notice to, but without prior
consent of the Company and the Administrative Agent and with the payment of a
processing fee of $3,500.00, assign all or any portion of its right to receive
payment with respect to any Committed Loan to the Granting Lender and (ii) disclose
on a confidential basis any non-public information relating to its funding of
Committed Loans to any rating agency, commercial paper dealer or provider of
any surety or Guarantee or credit or liquidity enhancement to such SPC.

                    (i) Resignation
as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Bank of America
assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank
of America may, (i) upon 30 days’ notice to the Company and the Lenders, resign
as L/C Issuer and/or (ii) upon 30 days’ notice to the Company, resign as Swing
Line Lender. In the event of any such resignation as L/C Issuer or Swing Line
Lender, the Company shall be entitled to appoint from among the Lenders a
successor L/C Issuer or Swing Line Lender hereunder; provided, however,
that no failure by the Company to appoint any such successor shall affect the
resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case
may be. If Bank of America resigns as L/C Issuer, it shall retain all the
rights and obligations of the L/C Issuer hereunder with respect to all Letters
of Credit outstanding as of the effective date of its resignation as L/C Issuer
and all L/C Obligations with respect thereto (including the right to require
the Lenders to make Base Rate Committed Loans or fund risk participations in
Unreimbursed Amounts pursuant to Section 2.03(c)). If Bank of America resigns
as Swing Line Lender, it shall retain all the rights of the Swing Line Lender
provided for hereunder with respect to Swing Line Loans made by it and
outstanding as of the effective date of such resignation, including the right
to require the Lenders to make Base Rate Committed Loans or fund risk participations
in outstanding Swing Line Loans pursuant to Section 2.04(c).

- 86 -

          10.07
Treatment of Certain Information; Confidentiality.
Each of the Administrative Agent, the Lenders and the L/C Issuer agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the
extent requested by any regulatory authority purporting to have jurisdiction
over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant
in, or any prospective assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to a Borrower
and its obligations, (g) with the consent of the Company or (h) to the extent
such Information (x) becomes publicly available other than as a result of a
breach of this Section or (y) becomes available to the Administrative Agent,
any Lender, the L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than the Company. 

          For
purposes of this Section, “Information” means all information received
from the Company or any Subsidiary relating to the Company or any Subsidiary or
any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the L/C Issuer on a
nonconfidential basis prior to disclosure by the Company or any Subsidiary, provided
that, in the case of information received from the Company or any Subsidiary
after the date hereof, such information is clearly identified at the time of
delivery as confidential. Any Person required to maintain the confidentiality
of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

          10.08
Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender, the L/C Issuer and each of their
respective Affiliates is hereby authorized at any time and from time to time,
after obtaining the prior written consent of the Administrative Agent, to the
fullest extent permitted by applicable law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any
time owing by such Lender, the L/C Issuer or any such Affiliate to or for the
credit or the account of any Borrower or any other Loan Party against any and
all of the obligations of such Borrower or such Loan Party now or hereafter
existing under this Agreement or any other Loan Document to such Lender or the
L/C Issuer, irrespective of whether or not such Lender or the L/C Issuer shall
have made any demand under this Agreement or any other Loan Document and
although such obligations of such Borrower or such Loan Party may be contingent
or unmatured or are owed to a branch or office of such Lender or the L/C Issuer
different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender, the L/C Issuer and their respective
Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender, the L/C Issuer or their
respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify

- 87 -

the Company
and the Administrative Agent promptly after any such setoff and application, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

          10.09
Interest Rate Limitation. Notwithstanding anything to
the contrary contained in any Loan Document, the interest paid or agreed to be
paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum Rate”). If the
Administrative Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal
of the Loans or, if it exceeds such unpaid principal, refunded to the Company.
In determining whether the interest contracted for, charged, or received by the
Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to
the extent permitted by applicable Law, (a) characterize any payment that is
not principal as an expense, fee, or premium rather than interest, (b) exclude
voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations hereunder. 

          10.10
Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto.
Delivery of an executed counterpart of a signature page of this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement. 

          10.11
Survival of Representations and Warranties. All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Credit Extension, and shall continue in full
force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

          10.12
Severability. If any provision of this Agreement or
the other Loan Documents is held to be illegal, invalid or unenforceable, (a)
the legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired
thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions. The invalidity of a provision in a
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction. 

- 88 -

          10.13
Replacement of Lenders. If any Lender requests
compensation under Section 3.04, or if any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, or if any Lender is a Defaulting Lender
or if any other circumstance exists hereunder that gives the Company the right
to replace a Lender as a party hereto, then the Company may, at its sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by,
Section 10.06), all of its interests, rights and obligations under this
Agreement and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

                    (a)     the
Company shall have paid (or caused a Designated Subsidiary to pay) to the
Administrative Agent the assignment fee specified in Section 10.06(b);

                    (b)     such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees
and all other amounts owed to it hereunder and under the other Loan Documents
(including any amounts under Section 3.05) from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Company or
applicable Designated Subsidiary (in the case of all other amounts);

                    (c)     in
the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter; and

                    (d)     such
assignment does not conflict with applicable Laws.

                    A
Lender shall not be required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Company to require such assignment and delegation cease to apply. 

          10.14 Governing Law; Jurisdiction; Etc.

                    (a)     GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, AND SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

                    (b)     SUBMISSION
TO JURISDICTION. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR
ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK SITTING IN THE CITY AND COUNTY OF NEW YORK AND OF THE UNITED
STATES DISTRICT COURT OF THE SECOND CIRCUIT, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE 

- 89 -

HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER
MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ANY OTHER LOAN PARTY OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

                    (c)     WAIVER
OF VENUE. EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

                    (d)     SERVICE
OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN
THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT
WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.

                    (e)     APPOINTMENT
OF CURTISS-WRIGHT AS PROCESS AGENT. IN ADDITION TO THE CONSENT TO SERVICE
SET FORTH IN CLAUSE (d) HEREOF, ANY SUBSIDIARY THAT IS NOT A SUBSIDIARY THAT IS
ORGANIZED UNDER THE LAWS OF ANY STATE OF THE UNITED STATES OR THE DISTRICT OF
COLUMBIA THAT BECOMES A BORROWER HEREUNDER (INCLUDING CURTISS-WRIGHT
ANTRIEBSTECHNIK GMBH) HEREBY IRREVOCABLY AND UNCONDITIONALLY APPOINTS THE
COMPANY AS ITS AGENT TO RECEIVE, ON BEHALF OF ITSELF AND ON BEHALF OF ITS
PROPERTY, SERVICE OF COPIES OF THE SUMMONS AND COMPLAINT AND ANY OTHER PROCESS
WHICH MAY BE SERVED IN ANY SUCH ACTION OR PROCEEDING, AND THE COMPANY HEREBY
IRREVOCABLY AND UNCONDITIONALLY ACCEPTS SUCH APPOINTMENT. SUCH SERVICE MAY BE
MADE BY MAILING OR DELIVERING A COPY OF SUCH PROCESS TO SUCH SUBSIDIARY IN CARE
OF THE COMPANY AT ITS ADDRESS FOR NOTICES AS SET FORTH IN SECTION 10.02, AND
SUCH SUBSIDIARY HEREBY IRREVOCABLY AUTHORIZES AND DIRECTS THE COMPANY TO ACCEPT
SUCH SERVICE ON ITS BEHALF.

          10.15 Waiver of Jury Trial. EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
OR 

- 90 -

INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          10.16
USA PATRIOT Act Notice. Each Lender that is subject to
the Act (as hereinafter defined) and the Administrative Agent (for itself and
not on behalf of any Lender) hereby notifies the Borrowers that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Borrowers, which information includes
the name and address of each Borrower and other information that will allow
such Lender or the Administrative Agent, as applicable, to identify such
Borrower in accordance with the Act.

          10.17
Time of the Essence. Time is of the essence of the
Loan Documents.

          10.18 Judgment Currency. If, for the
purposes of obtaining judgment in any court, it is necessary to convert a sum
due hereunder or any other Loan Document in one currency into another currency,
the rate of exchange used shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase the first currency
with such other currency on the Business Day preceding that on which final
judgment is given. The obligation of each Borrower in respect of any such sum
due from it to the Administrative Agent or the Lenders hereunder or under the
other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance
with the applicable provisions of this Agreement (the “Agreement Currency”),
be discharged only to the extent that on the Business Day following receipt by
the Administrative Agent of any sum adjudged to be so due in the Judgment
Currency, the Administrative Agent may in accordance with normal banking
procedures purchase the Agreement Currency with the Judgment Currency. If the
amount of the Agreement Currency so purchased is less than the sum originally
due to the Administrative Agent from any Borrower in the Agreement Currency,
such Borrower agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the Administrative Agent or the Person to whom such
obligation was owing against such loss. If the amount of the Agreement Currency
so purchased is greater than the sum originally due to the Administrative Agent
in such currency, the Administrative Agent agrees to return the amount of any
excess to such Borrower (or to any other Person who may be entitled thereto
under applicable law).

          10.19 Entire Agreement. This Agreement and
the other Loan Documents represent the final agreement among the parties and
may not be contradicted by evidence of prior, contemporaneous, or subsequent
oral agreements of the parties. There are no unwritten oral agreements among
the parties. 

- 91 -

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CORPORATION

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Vice
 President and Treasurer

 

- 92 -

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CONTROLS, INC. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 METAL IMPROVEMENT COMPANY, LLC 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT FLOW CONTROL CORPORATION 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT FLOW CONTROL SERVICE CORPORATION 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT ELECTRO-MECHANICAL CORPORATION 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer 

 

- 93 -

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DY 4 SYSTEMS, INC. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT ANTRIEBSTECHNIK GMBH 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BANK OF AMERICA, N.A., as
Administrative Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 94 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BANK OF AMERICA, N.A., as a Lender, L/C
 Issuer and Swing Line Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 95 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN CHASE BANK N.A., as Syndication
 Agent and as a Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 96 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SUNTRUST BANK, as Co-Documentation Agent and
 as a Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 97 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CITIBANK, N.A., as Co-Documentation Agent
 and as a Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 98 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PNC BANK, NATIONAL ASSOCIATION, as a Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 99 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF NEW YORK, as a Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 100 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WACHOVIA BANK, NATIONAL ASSOCIATION, as a
 Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 101 -

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HSBC BANK USA NA, as a Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

- 102 -

EXHIBIT A  

FORM OF COMMITTED LOAN NOTICE

Date: ___________, _____

	
  

 	
  

 
	
 To:

 	
 Bank of
 America, N.A., as Administrative Agent 

 
	
  

 
	
  Ladies and Gentlemen:

 

          Reference
is made to that certain Second Amended and Restated Credit Agreement, dated as
of __________, 2007 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms defined
therein being used herein as therein defined), among Curtiss-Wright
Corporation, a Delaware corporation (the “Company”), the Designated
Borrowers from time to time party thereto, the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and
Swing Line Lender, et al. 

          The
Company hereby requests, on behalf of itself or, if applicable, the Designated
Borrower referenced in item 6 below (the “Applicable Designated Borrower”)
(select one): 

          A
Borrowing of Committed Loans/A conversion or continuation of Loans 

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 On
 _______________ (a Business Day). 

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 In the
 amount of ________________.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Comprised of
 ________________. 

 
	
  

 	
  

 	
            [Type
 of Committed Loan requested]

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 In the
 following currency: ________________________ 

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 For
 Eurocurrency Rate Loans: with an Interest Period of ___ months. 

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 On behalf of
 ____________________________ [insert name
 of applicable Designated Borrower].

 

A-1

Form of Committed Loan Notice 

          The
Committed Borrowing, if any, requested herein complies with the provisos to the
first sentence of Section 2.01 of the Agreement. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CORPORATION 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

A-2 

Form of Committed Loan Notice

EXHIBIT B  

FORM OF SWING LINE LOAN NOTICE

Date: ___________, _____ 

	
  

 	
  

 
	
 To:

 	
 Bank of
 America, N.A., as Swing Line Lender

 
	
  

 	
 Bank of
 America, N.A., as Administrative Agent 

 

Ladies and
Gentlemen: 

          Reference
is made to that certain Second Amended and Restated Credit Agreement, dated as
of ________, 2007 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among Curtiss-Wright
Corporation, a Delaware corporation (the “Company”), the Designated
Borrowers from time to time party thereto, the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and
Swing Line Lender, et al. 

          The
undersigned hereby requests a Swing Line Loan: 

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 On
 ____________ (a Business Day). 

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 In the
 amount of $_______________. 

 

          The
Swing Line Borrowing requested herein complies with the requirements of the
provisos to the first sentence of Section 2.04(a) of the Agreement. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CORPORATION

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 

B - 1 

Form of Swing Line Loan Notice

EXHIBIT C  

FORM OF NOTE

_________, 2007 

          FOR
VALUE RECEIVED, each of the undersigned (the “Borrower”) hereby promises
to pay to _____________________ or registered assigns (the “Lender”), in
accordance with the provisions of the Agreement (as hereinafter defined), the
principal amount of each Loan from time to time made by the Lender to such
Borrower under that certain Second Amended and Restated Credit Agreement, dated
as __________, 2007 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among Curtiss-Wright
Corporation, a Delaware corporation, the Designated Borrowers from time to time
party thereto, the Lenders from time to time party thereto, and Bank of
America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender, et
al. 

          Each
Borrower promises to pay interest on the unpaid principal amount of each Loan
to such Borrower from the date of such Loan until such principal amount is paid
in full, at such interest rates and at such times as provided in the Agreement.
Except as otherwise provided in Section 2.04(f) of the Agreement with
respect to Swing Line Loans, all payments of principal and interest shall be
made to the Administrative Agent for the account of the Lender in the currency
in which such Committed Loan was denominated and in Same Day Funds at the
Administrative Agent’s Office for such currency. If any amount is not paid in
full when due hereunder, such unpaid amount shall bear interest, to be paid
upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in
the Agreement. 

          This
Note is one of the Notes referred to in the Agreement, is entitled to the
benefits thereof and may be prepaid in whole or in part subject to the terms
and conditions provided therein. This Note is also entitled to the benefits of
the Company Guaranty and the Subsidiary Guaranty. Upon the occurrence and
continuation of one or more of the Events of Default specified in the
Agreement, all amounts then remaining unpaid on this Note shall become, or may
be declared to be, immediately due and payable all as provided in the
Agreement. Loans made by the Lender shall be evidenced by one or more loan
accounts or records maintained by the Lender in the ordinary course of
business. The Lender may also attach schedules to this Note and endorse thereon
the date, amount, currency and maturity of its Loans and payments with respect
thereto. 

          Each
Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
non-payment of this Note. 

C - 1

Form of Note

          THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED
BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CORPORATION

 
	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Vice
 President and Treasurer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CONTROLS, INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 METAL IMPROVEMENT COMPANY, LLC

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT FLOW CONTROL CORPORATION

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT FLOW CONTROL SERVICE CORPORATION

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer

 

C - 2

Form of Note

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT ELECTRO-MECHANICAL CORPORATION

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DY 4 SYSTEMS, INC.

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT ANTRIEBSTECHNIK GMBH

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Harry
 Jakubowitz

 
	
  

 	
 Title:

 	
 Treasurer

 

C - 3

Form of Note

LOANS AND PAYMENTS WITH RESPECT THERETO 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
Date 

 	
  

 	
Type of

Loan Made 

 	
  

 	
Currency

and

Amount of

Loan Made 

 	
  

 	
End of

Interest

Period 

 	
  

 	
Amount of

Principal or

Interest

Paid This

Date 

 	
  

 	
Outstanding

Principal

Balance

This Date 

 	
  

 	
Notation

Made By 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 

C - 4

Form of Note

EXHIBIT D  

FORM OF COMPLIANCE CERTIFICATE

Financial
Statement Date: ___________,

	
  

 	
  

 
	
 To:

 	
 Bank of
 America, N.A., as Administrative Agent

 

Ladies and
Gentlemen: 

          Reference
is made to that certain Second Amended and Restated Credit Agreement, dated as
of _________, 2007 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among Curtiss-Wright
Corporation, a Delaware corporation (the “Company”), the Designated
Borrowers from time to time party thereto, the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and
Swing Line Lender, et al. 

          The
undersigned Responsible Officer hereby certifies as of the date hereof that
he/she is the ___________________________ of the Company, and that, as such, he/she is
authorized to execute and deliver this Certificate to the Administrative Agent
on the behalf of the Company, and that: 

 [Use following paragraph 1 for fiscal
year-end financial statements]

          1.
Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 6.01(a) of the Agreement for the fiscal
year ended as of the above date, together with the report and opinion of an
independent certified public accountant required by such section. 

 [Use following paragraph 1 for fiscal
quarter-end financial statements]

          1.
Attached hereto as Schedule 1 are the unaudited financial statements
required by Section 6.01(b) of the Agreement for the fiscal quarter
ended as of the above date. Such financial statements fairly present the
financial condition, results of operations and cash flows of the Company and
its Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end audit adjustments and the absence of footnotes.

          2.
The undersigned has reviewed and is familiar with the terms of the Agreement
and has made, or has caused to be made under his/her supervision, a reasonably
thorough review of the transactions and condition (financial or otherwise) of
the Company and its Subsidiaries during the accounting period covered by the
attached financial statements. 

          3.
A review of the activities of the Company and its Subsidiaries during such
fiscal period has been made under the supervision of the undersigned with a
view to determining 

D - 1 

Form of Compliance Certificate

whether during
such fiscal period the Company and its Subsidiaries performed and observed all
of their Obligations to be performed and observed under the Loan Documents, and

 [select one:]

 [to the best knowledge of the undersigned
during such fiscal period, each of the Company and its Subsidiaries performed
and observed each covenant and condition of the Loan Documents applicable to
it.] 

—or— 

 [the following covenants or conditions have
not been performed or observed and the following is a list of each such Default
and its nature and status:] 

          4.
The representations and warranties of (i) the Borrowers contained in Article
5 of the Agreement and (ii) each Loan Party contained in each other Loan
Document or in any document furnished at any time under or in connection with
the Loan Documents, are true and correct on and as of the date hereof in all
material respects; except (x) that any such representations and warranties that
are qualified by reference to materiality or Material Adverse Effect shall be
true and correct in all respects; (y) to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are
true and correct as of such earlier date, and (z) that for purposes of this
Compliance Certificate, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed
to refer to the most recent statements furnished pursuant to clauses (a) and
(b), respectively, of Section 6.01 of the Agreement. 

          5.
The financial covenant analyses and information set forth on Schedule 2 attached hereto are true and accurate on and as of the date of this
Certificate.  

          IN WITNESS WHEREOF, the undersigned has
executed this Certificate as of ______________ , ______________. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CORPORATION

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 

D - 2 

Form of Compliance Certificate

For the Quarter/Year ended
___________________(“Statement Date”) 

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 I.

 	
 Section 7.11 (a) – Consolidated Interest Coverage Ratio.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Consolidated
EBITDA for four consecutive fiscal quarters ending on above date (“Subject
Period”): 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.

 	
 Consolidated
 Net Income for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.

 	
 Consolidated
 Interest Charges for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.

 	
 Consolidated
 foreign, federal and state income tax expenses for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 4.

 	
 Consolidated
 depreciation for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.

 	
 Consolidated
 amortization for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.

 	
 Extraordinary
 losses for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 7.

 	
 Extraordinary
 gains for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.

 	
 Consolidated
 EBITDA (Lines I.A.1+2+3+4+5+6-7):

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Consolidated
 Interest Charges for Subject Period:

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Consolidated
 Interest Coverage Ratio (Line I.A.8 ÷ Line I.B):

 	
 ________ to 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Minimum required as of the end of any fiscal quarter: 3.0:1

 	
  

 
	
  

 	
  

 	
  

 
	
 II.

 	
 Section 7.11 (b) – Consolidated Leverage Ratio.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Consolidated
 Funded Indebtedness for the Statement Date

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Consolidated
 Capitalization of the Company and its Subsidiaries for the Statement Date

 	
 $________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Consolidated
 Leverage Ratio (Line II.A ÷ Line II.B):

 	
 _________%

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Maximum permitted at any time: 60%

 	
  

 

D - 3 

Form of Compliance Certificate

EXHIBIT E  

ASSIGNMENT AND ASSUMPTION

          This
Assignment and Assumption (this “Assignment and Assumption”) is dated as
of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Second
Amended and Restated Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of
which is hereby acknowledged by the Assignee. The Standard Terms and Conditions
set forth in Annex 1 attached hereto are hereby agreed to and incorporated
herein by reference and made a part of this Assignment and Assumption as if set
forth herein in full. 

          For
an agreed consideration, the Assignor hereby irrevocably sells and assigns to
the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below
(including, without limitation, the Letters of Credit and the Swing Line Loans
included in such facilities) and (ii) to the extent permitted to be assigned
under applicable law, all claims, suits, causes of action and any other right
of the Assignor (in its capacity as a Lender) against any Person, whether known
or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above (the
rights and obligations sold and assigned pursuant to clauses (i) and (ii) above
being referred to herein collectively as, the “Assigned Interest”). Such
sale and assignment is without recourse to the Assignor and, except as
expressly provided in this Assignment and Assumption, without representation or
warranty by the Assignor. 

	
  

 	
  

 
	
 1.

 	
 Assignor:
 ______________________________ 

 
	
  

 	
  

 
	
 2.

 	
 Assignee:
 ______________________________ [and is an Affiliate/Approved Fund of [identify Lender]] 

 
	
  

 	
  

 
	
 3.

 	
 Borrower(s):
 ______________________________ 

 
	
  

 	
  

 
	
 4.

 	
 Administrative
 Agent: Bank of America, N.A., as the administrative
 agent under the Credit Agreement 

 
	
  

 	
  

 
	
 5.

 	
 Credit
 Agreement: Second Amended and Restated Credit
 Agreement, dated as of _______, 2007, among Curtiss-Wright Corporation, a
 Delaware corporation, the Designated Borrowers from time to time party
 thereto, the Lenders from time to time 

 

E - 1 

Form of Assignment and Assumption

	
  

 	
  

 
	
  

 	
 party thereto,
 and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line
 Lender, et al.

 
	
  

 	
  

 
	
 6.

 	
 Assigned
 Interest: 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Facility
 Assigned

 	
  

 	
 Aggregate

 Amount of

 Commitment

 for all Lenders

 	
  

 	
 Amount of

 Commitment

Assigned*

 	
  

 	
 Percentage

Assigned of

Commitment

 	
  

 	
 CUSIP Number

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 $

 	
  

 	
  

 	
 $

 	
  

 	
  

 	
  

 	
  

 	
 %

 	
  

 	
  

 
	
  

 	
  

 	
 $

 	
  

 	
  

 	
 $

 	
  

 	
  

 	
  

 	

 	
 %

 	
  

 	
  

 
	
  

 	
  

 	
 $

 	
  

 	
  

 	
 $

 	
  

 	
  

 	
  

 	

 	
 %

 	
  

 	
  

 

	
  

 	
  

 
	
 [7.

 	
 Trade Date:
 __________________] 

 

Effective
Date: __________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.] 

E - 2 

Form of Assignment and Assumption

The terms set
forth in this Assignment and Assumption are hereby agreed to: 

	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNOR

 
	
  

 	
  

 
	
  

 	
 [NAME OF
 ASSIGNOR]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
     Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNEE

 
	
  

 	
  

 
	
  

 	
 [NAME OF
 ASSIGNEE]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
     Title:

 

Consented to and Accepted:

BANK OF AMERICA, N.A., as

Administrative Agent, Swing Line Lender and L/C Issuer

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
     Title:

 	
  

 
	
  

 	
  

 	
  

 
	
 [Consented
 to:

 	
  

 
	
  

 	
  

 	
  

 
	
 CURTISS-WRIGHT
 CORPORATION

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
     Title:

 	
  

 

E - 3

Form of Assignment and Assumption

ANNEX 1 TO
ASSIGNMENT AND ASSUMPTION

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF ___________, 2007

among

CURTISS-WRIGHT CORPORATION

and

CERTAIN SUBSIDIARIES,

as Borrowers,

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender
and L/C Issuers, et al.

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

                    1.
Representations and Warranties. 

                    1.1.
Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute
and deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit
Agreement or any other Loan Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any
collateral thereunder, (iii) the financial condition of the Company, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by the Company, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document. 

                    1.2.
Assignee. The Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement (subject to
receipt of such consents as may be required under the Credit Agreement), (iii)
from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement as a Lender thereunder and, to the extent of the Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it has
received a copy of the Credit Agreement, 

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Form of Assignment and Assumption

together with
copies of the most recent financial statements delivered pursuant to Section
6.01 thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Lender, and (v) if it is a
Foreign Lender, attached hereto is any documentation required to be delivered
by it pursuant to the terms of the Credit Agreement, duly completed and
executed by the Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender. 

                    2.
Payments. From and after the Effective Date, the Administrative Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date. 

               3.
General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption
shall be governed by, and construed in accordance with, the law of the State of
New York. 

E - 5 

Form of Assignment and Assumption

EXHIBIT F 

FORM OF COMPANY GUARANTY

PARENT GUARANTY AND SURETYSHIP AGREEMENT

          THIS
PARENT GUARANTY AND SURETYSHIP AGREEMENT (this “Agreement”) made as of the ___day of ____, 2007 by
CURTISS-WRIGHT CORPORATION (the “Guarantor”),
in favor of BANK OF AMERICA, N.A., as administrative agent for the Guaranteed
Parties (as defined below) (in such capacity, together with its successors in
such capacity, the “Administrative Agent”).
Terms used herein and not otherwise defined herein are used as defined in the
Credit Agreement (as defined below). 

Background of Agreement

          The
Guarantor, certain Subsidiaries of the Guarantor, the Lenders, the
Administrative Agent, Bank of America, N.A., as Swing Line Lender and L/C
Issuer, JPMorgan Chase Bank N.A., as syndication agent for the Lenders,
Suntrust Bank and Citibank, N.A., as co-documentation agent for the Lenders are
parties to a Second Amended and Restated Credit Agreement, dated as of the date
hereof (as amended, the “Credit Agreement”).
The Lenders, Swing Line Lender, each L/C Issuer, the Syndication Agent and the
Documentation Agents shall be referred to herein as the “Guaranteed Parties”. 

          Pursuant
to the Credit Agreement, the execution and delivery of this Agreement by the
Guarantor is a condition to the Lenders’ obligations to honor any Request for a
Credit Extension made by the Guarantor or any other Borrower. 

          The
Guarantor has determined that (i) it will derive substantial direct and
indirect benefit from the transactions contemplated by the Credit Agreement and
(ii) it was and will be solvent both before and after giving effect to the
transactions contemplated by the Credit Agreement and this Agreement. 

          NOW
THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows: 

          1.
Guaranty and Suretyship.

                    1.1 Guaranty of
Payment. The Guarantor hereby agrees to act as surety for
the Guaranteed Obligations (as defined in Section 1.2 below), and irrevocably
and unconditionally guarantees to the Administrative Agent and the Lenders that
the Guaranteed Obligations shall be paid in full when due and payable, whether
at the stated or accelerated maturity thereof or upon any mandatory or
voluntary prepayment or otherwise. 

                    1.2 Definition of
“Guaranteed Obligations”. For purposes of this Agreement,
the term “Guaranteed Obligations”
shall mean (a) any “Obligations” as that term is defined in the Credit
Agreement but in any event, shall include, without limitation, any amounts 

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Form of Company Guaranty Parent Guaranty and
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due from time
to time in respect of (i) loans and interest thereon under the Credit Agreement
and the Notes, (ii) fees payable under the Credit Agreement and (iii)
indemnifications provided for, and other amounts payable, under the Credit
Agreement or other Loan Documents. Notwithstanding the definition of
“Guaranteed Obligations” herein, the liability of the Guarantor hereunder is
limited to an amount equal to (x) the amount that would render this guaranty
void, voidable or unenforceable against the Guarantor’s creditors or creditors’
representatives under any applicable fraudulent conveyance, fraudulent transfer
or similar act or under Section 544 or 548 of the Bankruptcy Code of 1978, as
amended, minus (y) $1.00 (one U.S. Dollar). 

                    1.3 Obligations of
Guarantor Absolute, Etc. The obligations of the Guarantor
hereunder shall be absolute and unconditional. The Guarantor guarantees that
the Guaranteed Obligations will be paid strictly in accordance with the terms
of the agreement, instrument or document giving rise to such Guaranteed
Obligations, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any such terms or the rights of the Agent
and the Lenders with respect thereto. The liability of the Guarantor hereunder
shall be absolute and unconditional irrespective of: 

                              (a)
any lack of validity or enforceability of any Loan Document; 

                              (b)
any change in the time, manner or place of payment of the Guaranteed Obligations;

                              (c)
any amendment or modification of or supplement to the Loan Documents
(including, without limitation, any amendment which would increase the amount
of the Guaranteed Obligations), or any furnishing or acceptance of any
security, or any release of any security or the release of any Person’s
obligations (including without limitation, the Guarantor or any other
Borrower), with respect to the Guaranteed Obligations; 

                              (d)
any waiver, consent, extension, indulgence or other action or inaction under or
in respect of any such instrument, document or agreement or any exercise or
nonexercise of any right, remedy, power or privilege under or in respect of any
such instrument; 

                              (e)
any counterclaim, setoff, recoupment or defense based upon any claim the
Guarantor, any Borrower or any pledgor may have against the Agent or any
Lender; 

                              (f)
any bankruptcy, insolvency, reorganization, arrangement, readjustment,
composition, liquidation or similar proceeding with respect to any Borrower,
any Affiliate of the Borrower or the Guarantor or their respective properties
or creditors; 

                              (g)
any invalidity or unenforceability, in whole or in part, of any term hereof or of
the Loan Documents; 

                              (h)
any failure on the part of any Borrower or any Affiliate or any Person that may
have been an Affiliate for any reason to perform or comply with any term of the
Loan Documents; or 

                              (i)
any other occurrence whatsoever, whether similar or dissimilar to the
foregoing. 

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Form of Company Guaranty Parent Guaranty and
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                    1.4 Continuing
Guaranty. This guaranty and suretyship is an absolute,
unconditional, present and continuing guaranty and suretyship of payment and is
in no way conditional or contingent; it shall remain in full force and effect
until terminated pursuant to Section 5 below. 

                    1.5 Waivers.
The Guarantor hereby waives, to the fullest extent permitted by applicable law,
(a) all presentments, demands for performance, notice of non-performance,
protests, notices of protests and notices of dishonor in connection with the
Guaranteed Obligations or any agreement relating thereto; (b) notice of
acceptance of this Agreement; (c) any requirement of diligence or promptness on
the part of the Agent or any Lender in the enforcement of its rights hereunder
or under the Loan Documents; (d) any enforcement of any present or future
agreement or instrument relating directly or indirectly to the Guaranteed
Obligations; (e) notice of any of the matters referred to in subsection 1.3
hereof; (f) notices of every kind and description which may be required to be
given by any statute or rule of law; and (g) any defense of any kind which it
may now or hereafter have with respect to its liability under this Agreement to
the fullest extent permitted by law. Without limiting the foregoing, the Agent
and the Lenders shall not be required to make any demand upon, or to pursue or
exhaust any rights or remedies against any Borrower, any other guarantor or any
other Person, or against the collateral security, for the Guaranteed
Obligations. No failure on the part of the Agent or the Lenders to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law. The Guarantor hereby agrees that it will not enforce
or otherwise exercise or claim or assert any rights of subrogation or
contribution against any Person with respect to the Guaranteed Obligations or
any security therefor unless and until all the Guaranteed Obligations are paid
in full. 

          2. Expenses. 

                    Whether
or not the transactions contemplated by this Agreement are fully consummated,
the Guarantor shall promptly pay (or reimburse, as the Administrative Agent may
elect) all costs and expenses which the Administrative Agent has incurred or
may incur in connection with the negotiation, preparation, reproduction,
interpretation, administration and enforcement of this Agreement and all
amendments, waivers, modifications and supplements hereto and the collection of
all amounts due hereunder. 

          3. [Reserved]. 

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Form of Company Guaranty Parent Guaranty and
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          4.
Right of Set-off. 

                    Each
Lender shall have the right, without notice to the Guarantor, to set off
against and apply to such due and payable amount of any Guaranteed Obligation
of the Guarantor, including all deposits (whether time or demand, general or
special, provisionally or finally credited, however evidenced) now or hereafter
maintained by the Guarantor with such Lender. Such right shall be absolute and
unconditional in all circumstances, regardless of the offices or branches through
which the parties are acting with respect to the offset obligations, regardless
of whether the offset obligations are denominated in the same or different
currencies, and regardless of the existence or adequacy of any other direct or
indirect security or any other right or remedy available to such Lender. Upon
the occurrence of and throughout the period in which the Lenders reasonably
believe there is continuing an Event of Default hereunder, the Guarantor hereby
authorizes each Lender to apply any such deposit balances now or hereafter in
the possession of such Lender to the payment of the Guaranteed Obligations. The
provisions hereof shall not be deemed or construed to limit rights of set-off
or liens or similar rights which any Lender may otherwise have by reason of
applicable Law or other agreement. 

          5.
Termination of Guaranty 

                    At
such time as (a) the Lenders have no further obligation to honor Requests for
Credit Extensions under the terms of the Credit Agreement and (b) all the
Guaranteed Obligations have been indefeasibly paid and/or performed in full,
then the guaranty provided for herein and this Guaranty Agreement shall
terminate, provided, however, that (i) all indemnities of the
Guarantor contained in this Guaranty Agreement or any Loan Document shall
survive and remain operative and in full force and effect regardless of the
termination of this Guaranty Agreement, and (ii) the guaranty provided for
herein shall be reinstated if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by any of the
Administrative Agent, Swing Line Lender, any L/C Issuer, any Lender or any
other Person upon the insolvency, bankruptcy or reorganization of the Guarantor
or otherwise, all as though such payment had not been made. 

          6.
Miscellaneous. 

                    6.1 Governing Law.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REFERENCE TO CONFLICT OF LAW PRINCIPLES. 

                    6.2 Specific
Performance. The Guarantor hereby authorizes the
Administrative Agent and the Lenders to demand specific performance of this
Agreement at any time when the Guarantor shall have failed to comply with any
provision hereof, and the Guarantor hereby irrevocably waives any defense based
on the adequacy of a remedy at law which might be asserted as a bar to the
remedy of specific performance hereof in any action brought therefor. 

                    6.3 Non-Exclusive
Remedies. No remedy or right herein conferred upon, or
reserved to the Administrative Agent or the Lenders is intended to be to the
exclusion of any other remedy or right, but each and every such remedy or right
shall be cumulative and shall be 

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Form of Company Guaranty Parent Guaranty and
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in addition to
every other remedy or right given hereunder or under any other contract or
under law. 

                    6.4 Delay and
Non-Waiver. No delay or omission by the Administrative
Agent or any Lender to exercise any remedy or right hereunder shall impair any
such remedy or right or shall be construed to be a waiver of any Event of
Default, or an acquiescence therein, nor shall it affect any subsequent Event
of Default of the same or of a different nature. 

                    6.5 Successors and
Assigns. Except as otherwise provided in the Credit
Agreement, the Administrative Agent may assign or transfer this Agreement and
any or all rights or obligations hereunder without the consent of the Guarantor
and without prior notice. Neither the Guarantor nor any Borrower shall assign
or transfer this Agreement or any rights or obligations hereunder without the
prior written consent of the Administrative Agent. The rights and privileges of
the Administrative Agent and the Lenders under this Agreement shall inure to
the benefit of their respective successors, assigns and participants. All
promises, covenants and agreements of the Guarantor contained in this Agreement
shall be binding upon the successors and assigns thereof. 

                    6.6 Amendments and
Waivers. This Agreement represents the entire agreement
between the parties with respect to the transactions contemplated herein and,
except as expressly provided herein, shall not be affected by reference to any
other documents. Neither this Agreement nor any provision hereof may be
changed, waived, discharged or terminated orally, but such may be accomplished
only by an instrument in writing signed by the party against whom enforcement
of the change, waiver, discharge or termination is sought. 

                    6.7 Notices and
Communications. Any notice contemplated herein or
required or permitted to be given hereunder shall be made in the manner set
forth in the Credit Agreement and delivered at the addresses set forth on Schedule
10.02 of the Credit Agreement, or to such other address as any party hereto
may have last specified by written notice to the other party or parties. The
Guaranteed Parties may rely on any notice (whether or not made in a manner
contemplated by this Agreement) purportedly made by or on behalf of the
Guarantor, and the Guaranteed Parties shall have no duty to verify the identity
or authority of the Person giving such notice. 

                    6.8 Headings; Counterparts. Headings to this
Agreement are for purposes of reference only and shall not limit or otherwise
affect the meaning hereof. This Agreement may be executed in any number of
counterparts, each of which shall be an original, and all of which, taken together,
shall constitute one instrument. Delivery of a photocopy or telecopy of an
executed counterpart of a signature page to this Agreement shall be as
effective as delivery of a manually executed counterpart of such signature
page. 

                    6.9 Severability.
If any of the provisions or terms of this Agreement shall for any reason be
held to be invalid or unenforceable such invalidity or unenforceability shall
not affect any of the other terms hereof, but this Agreement shall be construed
as if such invalid or unenforceable term had never been contained herein. Any
such invalidity or unenforceability in a particular jurisdiction shall not be
deemed to render a provision invalid or unenforceable in any other
jurisdiction. Without limiting the generality of the foregoing, any invalidity,
illegality or unenforceability of any term or provision of this Agreement in
any jurisdiction or as against the 

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Form of Company Guaranty Parent Guaranty and
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Guarantor
shall not affect the validity, legality or enforceability of any other terms
hereof or in any other jurisdiction or against any other guarantor. 

          7.
Indemnification. 

                    The
Guarantor shall indemnify, reimburse and hold harmless the Guaranteed Parties
from and against any and all losses, claims, liabilities, damages, penalties,
suits, reasonable costs and expenses, of any kind or nature, (including
reasonable fees relating to the cost of investigating and defending any of the
foregoing) imposed on, incurred by or asserted against the Guaranteed Parties
in any way related to or arising from or alleged to arise from this Agreement
or the guarantees provided herein except any such losses, claims, liabilities,
damages, penalties, suits, costs and expenses which result from the gross
negligence or willful misconduct of the Guaranteed Parties as determined by a
final nonappealable decision of a court of competent jurisdiction. 

          8.
Jurisdiction; Waiver Of Jury Trial; Waiver of Venue; Service of Process,
Appointment of Process Agent 

                    8.1
SUBMISSION TO
JURISDICTION. THE GUARANTOR IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN THE CITY AND COUNTY OF NEW YORK AND
OF THE UNITED STATES DISTRICT COURT OF THE SECOND CIRCUIT, AND ANY APPELLATE
COURT THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
AFFECT ANY RIGHT THAT ANY INDEMNIFIED PARTY MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST THE GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

                    8.2 WAIVER OF
VENUE. THE GUARANTOR IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN SECTION 8.1. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT. 

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Form of Company Guaranty Parent Guaranty and
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                    8.3 SERVICE OF
PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02
OF THE CREDIT AGREEMENT. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

                    8.4 Waiver of Jury Trial.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

                    8.5 USA PATRIOT
Act Notice. Each Lender that is subject to the Act (as hereinafter defined) and
the Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Guarantor that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies the Guarantor, which information includes
the name and address of the Guarantor and other information that will allow
such Lender or the Administrative Agent, as applicable, to identify the
Guarantor in accordance with the Act. 

                    8.6 Limitation of
Liability. No claim may be made by the Guarantor against
the Guaranteed Parties or any affiliate, director, officer, employee, attorney
or agent of the Guaranteed Parties for any special, indirect, consequential or
punitive damages in respect of any claim arising from or relating to this
Agreement or any other Loan Document or any statement, course of conduct, act,
omission or event in connection with any of the foregoing (whether based on
breach of contract, tort or any other theory of liability); and the Guarantor
hereby waives, released and agrees not to sue upon any claim for any such
damages, whether or not accrued and whether or not known or suspected to exist.

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Form of Company Guaranty Parent Guaranty and
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          IN
WITNESS WHEREOF, the undersigned has executed this Parent Guaranty and
Suretyship Agreement on the date and year first above written. 

[SIGNATURE PAGES PROVIDED SEPARATELY]

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Form of Company Guaranty Parent Guaranty and Suretyship Agreement

EXHIBIT G  

 [FORM OF SUBSIDIARY GUARANTY]

SUBSIDIARY GUARANTY AND SURETYSHIP AGREEMENT

          THIS
SUBSIDIARY GUARANTY AND SURETYSHIP AGREEMENT (this “Agreement”) made as of the ___day of ____, 2007 by the
various guarantors signatory hereto either on the date hereof or by joinder
after the date hereof (collectively, the “Guarantors”
or, individually, a “Guarantor”),
in favor of BANK OF AMERICA, N.A., as administrative agent for the Guaranteed
Parties (as defined below) (in such capacity, together with its successors in
such capacity, the “Administrative Agent”).
Terms used herein and not otherwise defined herein are used as defined in the
Credit Agreement (as defined below). 

Background of Agreement

          Curtiss-Wright
Corporation (the “Company”),
the Guarantors, the Foreign Borrowers, the Lenders, the Administrative Agent,
Bank of America, N.A., as Swing Line Lender and L/C Issuer, JPMorgan Chase Bank
N.A., as syndication agent for the Lenders, Suntrust Bank and Citibank, N.A.,
as co-documentation agent for the Lenders are parties to a Second Amended and
Restated Credit Agreement, dated as of the date hereof (as amended, the “Credit Agreement”). The Lenders,
Swing Line Lender, each L/C Issuer, the Syndication Agent and the Documentation
Agents shall be referred to herein as the “Guaranteed
Parties”. 

          Pursuant
to the Credit Agreement, the execution and delivery of this Agreement by the
Guarantors is a condition to the Lenders’ obligations to honor any Request for
a Credit Extension made by the Company, the Guarantors or any Foreign Borrower.

          Each
of the Guarantors is a Subsidiary of the Company. Each Guarantor has determined
that (i) it will derive substantial direct and indirect benefit from the
transactions contemplated by the Credit Agreement and (ii) it was and will be
solvent both before and after giving effect to the transactions contemplated by
the Credit Agreement and this Agreement. 

          NOW
THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows: 

          1.
Guaranty and Suretyship. 

                    1.1
Guaranty of Payment.
The Guarantors hereby jointly and severally agree to act as surety for the
Guaranteed Obligations (as defined in Section 1.2 below), and irrevocably and
unconditionally guaranty to the Administrative Agent and the Lenders that the
Guaranteed Obligations shall be paid in full when due and payable, whether at
the stated or accelerated maturity thereof or upon any mandatory or voluntary
prepayment or otherwise. 

                    1.2
Definition of “Guaranteed Obligations”.
For purposes of this Agreement, the term “Guaranteed
Obligations” shall mean (a) any “Obligations” as that term is
defined in the Credit Agreement but in any event, shall include, without
limitation, any amounts due from time to time in respect of (i) loans and
interest thereon under the Credit Agreement and 

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Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

the Notes,
(ii) fees payable under the Credit Agreement and (iii) indemnifications
provided for, and other amounts payable, under the Credit Agreement or other
Loan Documents. Notwithstanding the definition of “Guaranteed Obligations”
herein, the liability of each Guarantor hereunder is limited to an amount equal
to (x) the amount that would render this guaranty void, voidable or
unenforceable against such Guarantor’s creditors or creditors’ representatives
under any applicable fraudulent conveyance, fraudulent transfer or similar act
or under Section 544 or 548 of the Bankruptcy Code of 1978, as amended, minus
(y) $1.00 (one U.S. Dollar). 

                    1.3
Obligations of Guarantors Absolute, Etc.
The obligations of the Guarantors hereunder shall be absolute and
unconditional. Each Guarantor, jointly and severally, guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of
the agreement, instrument or document giving rise to such Guaranteed
Obligations, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any such terms or the rights of the Agent
and the Lenders with respect thereto. The liability of the Guarantors hereunder
shall be absolute and unconditional irrespective of: 

                              (a)
any lack of validity or enforceability of any Loan Document; 

                              (b)
any change in the time, manner or place of payment of the Guaranteed Obligations;

                              (c)
any amendment or modification of or supplement to the Loan Documents (including,
without limitation, any amendment which would increase the amount of the
Guaranteed Obligations), or any furnishing or acceptance of any security, or
any release of any security or the release of any Person’s obligations
(including without limitation, any Guarantor, the Company or any Foreign
Borrower), with respect to the Guaranteed Obligations; 

                              (d)
any waiver, consent, extension, indulgence or other action or inaction under or
in respect of any such instrument, document or agreement or any exercise or
nonexercise of any right, remedy, power or privilege under or in respect of any
such instrument; 

                              (e)
any counterclaim, setoff, recoupment or defense based upon any claim any
Guarantor, the Company, any Foreign Borrower or any pledgor may have against
the Agent or any Lender; 

                              (f)
any bankruptcy, insolvency, reorganization, arrangement, readjustment,
composition, liquidation or similar proceeding with respect to the Company, any
Affiliate of the Company or any Guarantor or their respective properties or
creditors; 

                              (g)
any invalidity or unenforceability, in whole or in part, of any term hereof or
of the Loan Documents; 

                              (h)
any failure on the part of the Company or any Affiliate or any Person that may
have been an Affiliate for any reason to perform or comply with any term of the
Loan Documents; or 

                              (i)
any other occurrence whatsoever, whether similar or dissimilar to the foregoing.

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Form of Subsidiary Guaranty Subsidiary
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                    1.4
Continuing Guaranty.
This guaranty and suretyship is an absolute, unconditional, present and
continuing guaranty and suretyship of payment and is in no way conditional or
contingent; it shall remain in full force and effect until terminated pursuant
to Section 5 below. 

                    1.5
Joint and Several Liability.
Each and every representation, warranty, covenant and agreement made by the
Guarantors, or any of them, under this Agreement shall be and constitute joint
and several obligations of all of the Guarantors, whether or not so expressly
stated herein. 

                    1.6
Waivers.
Each Guarantor hereby waives, to the fullest extent permitted by applicable
law, (a) all presentments, demands for performance, notice of non-performance,
protests, notices of protests and notices of dishonor in connection with the
Guaranteed Obligations or any agreement relating thereto; (b) notice of
acceptance of this Agreement; (c) any requirement of diligence or promptness on
the part of the Agent or any Lender in the enforcement of its rights hereunder
or under the Loan Documents; (d) any enforcement of any present or future
agreement or instrument relating directly or indirectly to the Guaranteed
Obligations; (e) notice of any of the matters referred to in subsection 1.3
hereof; (f) notices of every kind and description which may be required to be
given by any statute or rule of law; and (g) any defense of any kind which it
may now or hereafter have with respect to its liability under this Agreement to
the fullest extent permitted by law. Without limiting the foregoing, the Agent
and the Lenders shall not be required to make any demand upon, or to pursue or
exhaust any rights or remedies against any Borrower, any other guarantor or any
other Person, or against the collateral security, for the Guaranteed
Obligations. No failure on the part of the Agent or the Lenders to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law. Each Guarantor hereby agrees that it will not enforce
or otherwise exercise or claim or assert any rights of subrogation or
contribution against any Person with respect to the Guaranteed Obligations or
any security therefor unless and until all the Guaranteed Obligations are paid
in full. 

          2.
Expenses. 

          Whether
or not the transactions contemplated by this Agreement are fully consummated,
each Guarantor shall promptly pay (or reimburse, as the Administrative Agent
may elect) all costs and expenses which the Administrative Agent has incurred
or may incur in connection with the negotiation, preparation, reproduction,
interpretation, administration and enforcement of this Agreement and all
amendments, waivers, modifications and supplements hereto and the collection of
all amounts due hereunder. 

          3.
Additional Parties. 

                    Any
Person which becomes a Designated Borrower after the date hereof shall become a
Guarantor hereunder, and the Guarantors shall cause such Person to signify its
acceptance of the terms hereof by execution and delivery to the Agent of one or
more counterparts of the Joinder hereto, appropriately dated. 

G - 3

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

          4.
Right of Set-off. 

                    Each
Lender shall have the right, without notice to the Guarantor, to set off
against and apply to such due and payable amount of any Guaranteed Obligation
of the Guarantor, including all deposits (whether time or demand, general or
special, provisionally or finally credited, however evidenced) now or hereafter
maintained by the Guarantor with such Lender. Such right shall be absolute and
unconditional in all circumstances, regardless of the offices or branches
through which the parties are acting with respect to the offset obligations,
regardless of whether the offset obligations are denominated in the same or
different currencies, and regardless of the existence or adequacy of any other
direct or indirect security or any other right or remedy available to such
Lender. Upon the occurrence of and throughout the period in which the Lenders
reasonably believe there is continuing an Event of Default hereunder, each
Guarantor hereby authorizes each Lender to apply any such deposit balances now
or hereafter in the possession of such Lender to the payment of the Guaranteed
Obligations. The provisions hereof shall not be deemed or construed to limit
rights of set-off or liens or similar rights which any Lender may otherwise
have by reason of applicable Law or other agreement. 

          5.
Termination of Guaranty

                    5.1
Termination of Guaranty Obligations of All
Guarantors. At such time as (a) the Lenders
have no further obligation to honor Requests for Credit Extensions under the
terms of the Credit Agreement and (b) all the Guaranteed Obligations have been
indefeasibly paid and/or performed in full, then the guaranty provided for
herein and this Guaranty Agreement shall terminate, provided, however,
that (i) all indemnities of the Guarantors contained in this Guaranty Agreement
or any Loan Document shall survive and remain operative and in full force and
effect regardless of the termination of this Guaranty Agreement, and (ii) the
guaranty provided for herein shall be reinstated if at any time any payment of
any of the Guaranteed Obligations is rescinded or must otherwise be returned by
any of the Administrative Agent, Swing Line Lender, any L/C Issuer, any Lender
or any other Person upon the insolvency, bankruptcy or reorganization of any
Guarantor or otherwise, all as though such payment had not been made. 

                    5.2
Termination of Guaranty Obligations of Sold
Guarantors. Effective upon the closing of a
sale or other disposition by any Borrower of all the outstanding capital stock
of, or all partnership interests or all other equity interests in, any of the
Guarantors hereunder (any Guarantor being so sold is hereinafter the “Sold Guarantor”) in conformity with
the provisions of the Credit Agreement, and receipt by the Administrative Agent
of a certification to such effect from the chief financial officer of the
Company, the obligations of that Sold Guarantor hereunder (including, without
limitation, obligations under Section 7) shall terminate. However, all the
obligations of the other Guarantors hereunder shall remain in full force and
effect. 

          6.
Miscellaneous. 

                    6.1
Governing Law.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REFERENCE TO CONFLICT OF LAW PRINCIPLES. 

                    6.2
Specific Performance.
Each Guarantor hereby authorizes the Administrative Agent and the Lenders to
demand specific performance of this Agreement at any time when such Guarantor
shall have failed to comply with any provision hereof, and each 

G - 4

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

Guarantor
hereby irrevocably waives any defense based on the adequacy of a remedy at law
which might be asserted as a bar to the remedy of specific performance hereof
in any action brought therefor. 

                    6.3
Non-Exclusive Remedies.
No remedy or right herein conferred upon, or reserved to the Administrative
Agent or the Lenders is intended to be to the exclusion of any other remedy or
right, but each and every such remedy or right shall be cumulative and shall be
in addition to every other remedy or right given hereunder or under any other
contract or under law. 

                    6.4
Delay and Non-Waiver.
No delay or omission by the Administrative Agent or any Lender to exercise any
remedy or right hereunder shall impair any such remedy or right or shall be
construed to be a waiver of any Event of Default, or an acquiescence therein,
nor shall it affect any subsequent Event of Default of the same or of a
different nature. 

                    6.5
Successors and Assigns.
Except as otherwise provided in the Credit Agreement, the Administrative Agent
may assign or transfer this Agreement and any or all rights or obligations
hereunder without the consent of any Guarantor and without prior notice.
Neither the Company nor any Guarantor shall assign or transfer this Agreement
or any rights or obligations hereunder without the prior written consent of the
Administrative Agent. The rights and privileges of the Administrative Agent and
the Lenders under this Agreement shall inure to the benefit of their respective
successors, assigns and participants. All promises, covenants and agreements of
each Guarantor contained in this Agreement shall be binding upon the successors
and assigns of such Person. Notwithstanding the foregoing, if there shall
become additional “Guarantors” or if there should be any assignment of any
guaranty obligations by operation of law or in contravention of the terms of
this Agreement or otherwise, then all covenants, agreements, representations
and warranties made herein or pursuant hereto by or on behalf of the Guarantors
shall bind the successors and assigns of the Guarantors and any such additional
Guarantors, jointly and severally, together with the preexisting Guarantors
whether or not such new or additional Guarantors execute the Joinder as set
forth in Section 3. 

                    6.6
Amendments and Waivers.
This Agreement represents the entire agreement between the parties with respect
to the transactions contemplated herein and, except as expressly provided
herein, shall not be affected by reference to any other documents. Neither this
Agreement nor any provision hereof may be changed, waived, discharged or
terminated orally, but such may be accomplished only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought. 

                    6.7
Notices and Communications.
Any notice contemplated herein or required or permitted to be given hereunder
shall be made in the manner set forth in the Credit Agreement and delivered at
the addresses set forth on Schedule 10.02 of the Credit Agreement, or to
such other address as any party hereto may have last specified by written
notice to the other party or parties. The Guaranteed Parties may rely on any
notice (whether or not made in a manner contemplated by this Agreement)
purportedly made by or on behalf of a Guarantor, and the Guaranteed Parties
shall have no duty to verify the identity or authority of the Person giving
such notice. 

G - 5

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

                    6.8
Headings; Counterparts.
Headings to this Agreement are for purposes of reference only and shall not
limit or otherwise affect the meaning hereof. This Agreement may be executed in
any number of counterparts, each of which shall be an original, and all of
which, taken together, shall constitute one instrument. Delivery of a photocopy
or telecopy of an executed counterpart of a signature page to this Agreement
shall be as effective as delivery of a manually executed counterpart of such
signature page. 

                    6.9
Severability.
If any of the provisions or terms of this Agreement shall for any reason be
held to be invalid or unenforceable such invalidity or unenforceability shall
not affect any of the other terms hereof, but this Agreement shall be construed
as if such invalid or unenforceable term had never been contained herein. Any
such invalidity or unenforceability in a particular jurisdiction shall not be
deemed to render a provision invalid or unenforceable in any other
jurisdiction. Without limiting the generality of the foregoing, any invalidity,
illegality or unenforceability of any term or provision of this Agreement in
any jurisdiction or as against any Guarantor shall not affect the validity,
legality or enforceability of any other terms hereof or in any other
jurisdiction or against any other Guarantor. 

          7.
Indemnification. 

                    Each
Guarantor, jointly and severally, shall indemnify, reimburse and hold harmless
the Guaranteed Parties from and against any and all losses, claims,
liabilities, damages, penalties, suits, reasonable costs and expenses, of any
kind or nature, (including reasonable fees relating to the cost of
investigating and defending any of the foregoing) imposed on, incurred by or
asserted against the Guaranteed Parties in any way related to or arising from
or alleged to arise from this Agreement or the guarantees provided herein
except any such losses, claims, liabilities, damages, penalties, suits, costs
and expenses which result from the gross negligence or willful misconduct of
the Guaranteed Parties as determined by a final nonappealable decision of a
court of competent jurisdiction. 

          8.
Jurisdiction; Waiver Of Jury Trial; Waiver of Venue; Service of Process,
Appointment of Process Agent

                    8.1 SUBMISSION TO
JURISDICTION. EACH GUARANTOR IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE CITY AND
COUNTY OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT OF THE SECOND
CIRCUIT, AND ANY APPELLATE COURT THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.
EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN 

G - 6

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

DOCUMENT SHALL
AFFECT ANY RIGHT THAT ANY INDEMNIFIED PARTY MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST ANY GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

                    8.2
WAIVER OF VENUE.
EACH GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN SECTION
8.1. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

                    8.3 SERVICE OF
PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02 OF THE
CREDIT AGREEMENT. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY
HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

                    8.4
APPOINTMENT OF CURTISS-WRIGHT AS PROCESS
AGENT. IN ADDITION TO THE CONSENT TO
SERVICE SET FORTH IN SECTION 8.3 HEREOF, ANY GUARANTOR THAT IS NOT A SUBSIDIARY
THAT IS ORGANIZED UNDER THE LAWS OF ANY STATE OF THE UNITED STATES OR THE
DISTRICT OF COLUMBIA THAT BECOMES A GUARANTOR HEREUNDER HEREBY IRREVOCABLY AND
UNCONDITIONALLY APPOINTS THE COMPANY AS ITS AGENT TO RECEIVE, ON BEHALF OF
ITSELF AND ON BEHALF OF ITS PROPERTY, SERVICE OF COPIES OF THE SUMMONS AND
COMPLAINT AND ANY OTHER PROCESS WHICH MAY BE SERVED IN ANY SUCH ACTION OR
PROCEEDING, AND THE COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY ACCEPTS SUCH
APPOINTMENT. SUCH SERVICE MAY BE MADE BY MAILING OR DELIVERING A COPY OF SUCH
PROCESS TO SUCH GUARANTOR IN CARE OF THE COMPANY AT ITS ADDRESS FOR NOTICES AS
SET FORTH IN SECTION 10.02 OF THE CREDIT AGREEMENT, AND SUCH GUARANTOR
HEREBY IRREVOCABLY AUTHORIZES AND DIRECTS THE COMPANY TO ACCEPT SUCH SERVICE ON
ITS BEHALF. 

                    8.5
Waiver of Jury Trial.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE 

G - 7

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

BEEN INDUCED
TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

                    8.6
USA PATRIOT Act Notice.
Each Lender that is subject to the Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Guarantors that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies the Guarantors, which information
includes the name and address of each Guarantor and other information that will
allow such Lender or the Administrative Agent, as applicable, to identify such
Guarantors in accordance with the Act. 

                    8.7
Limitation of Liability.
No claim may be made by any Guarantor against the Guaranteed Parties or any
affiliate, director, officer, employee, attorney or agent of the Guaranteed
Parties for any special, indirect, consequential or punitive damages in respect
of any claim arising from or relating to this Agreement or any other Loan
Document or any statement, course of conduct, act, omission or event in
connection with any of the foregoing (whether based on breach of contract, tort
or any other theory of liability); and each Guarantor hereby waives, released
and agrees not to sue upon any claim for any such damages, whether or not
accrued and whether or not known or suspected to exist. 

G - 8

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

          IN
WITNESS WHEREOF, the undersigned has executed this Subsidiary Guaranty and
Suretyship Agreement on the date and year first above written. 

[SIGNATURE PAGES PROVIDED SEPARATELY]

G - 9

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

JOINDER

                    The
undersigned acknowledges that it is a Guarantor under the Subsidiary Guaranty
and Suretyship Agreement, dated _______, 2007 (the “Guaranty Agreement”) by
certain SUBSIDIARIES of CURTISS-WRIGHT CORPORATION as GUARANTORS in favor of
BANK OF AMERICA, N.A., as Administrative Agent for the Guaranteed Parties (as
defined therein), and hereby agrees to be bound by the foregoing Guaranty
Agreement and to perform the covenants applicable to Guarantors contained or
incorporated therein, and hereby confirms the accuracy of the representations
and warranties made or incorporated therein insofar as such representation and
warranties purportedly relate to the undersigned. 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 [Guarantor]

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Address:

 	
  

 

G - 10

Form of Subsidiary Guaranty Subsidiary
Guaranty and Suretyship Agreement

EXHIBIT H  

FORM OF DESIGNATED BORROWER 

REQUEST AND ASSUMPTION AGREEMENT

Date: ____________, ______ 

	
  

 	
  

 
	
 To:

 	
 Bank of America, N.A., as
 Administrative Agent

Ladies and Gentlemen: 

 

          This
Designated Borrower Request and Assumption Agreement is made and delivered
pursuant to Section 2.14 of that certain Second Amended and Restated
Credit Agreement, dated as of _____, 2007 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit
Agreement”), among Curtiss-Wright Corporation, Delaware corporation (the “Company”),
the Designated Borrowers from time to time party thereto, the Lenders from time
to time party thereto, and Bank of America, N.A., as Administrative Agent, L/C
Issuer and Swing Line Lender, et al, and reference is made thereto for full
particulars of the matters described therein. All capitalized terms used in
this Designated Borrower Request and Assumption Agreement and not otherwise
defined herein shall have the meanings assigned to them in the Credit
Agreement. 

          Each
of _____________ (the “Designated Borrower”) and the Company hereby
confirms, represents and warrants to the Administrative Agent and the Lenders
that the Designated Borrower is a Subsidiary of the Company. 

          The
documents required to be delivered to the Administrative Agent under Section
2.14 of the Credit Agreement will be furnished to the Administrative Agent
in accordance with the requirements of the Credit Agreement. 

          The
parties hereto hereby confirm that with effect from the date hereof, the
Designated Borrower shall have obligations, duties and liabilities toward each
of the other parties to the Credit Agreement identical to those which the
Designated Borrower would have had if the Designated Borrower had been an
original party to the Credit Agreement as a Borrower or a Foreign Borrower. The
Designated Borrower confirms its acceptance of, and consents to, all
representations and warranties, covenants, and other terms and provisions of
the Credit Agreement. 

          The
parties hereto hereby request that the Designated Borrower be entitled to
receive Loans under the Credit Agreement, and understand, acknowledge and agree
that neither the Designated Borrower nor the Company on its behalf shall have any
right to request any Loans for its account unless and until the effective date
designated by the Administrative Agent in a Designated Borrower Notice
delivered to the Company and the Lenders pursuant to Section 2.14 of the
Credit Agreement. 

H - 1 

Form of Designated Borrower Request and Assumption Agreement

          This
Designated Borrower Request and Assumption Agreement shall constitute a Loan
Document under the Credit Agreement. 

          THIS
DESIGNATED BORROWER REQUEST AND ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT
THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER
FEDERAL LAW. 

          IN WITNESS WHEREOF, the parties hereto
have caused this Designated Borrower Request and Assumption Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written. 

	
  

 	
  

 	
  

 
	
  

 	
 [DESIGNATED BORROWER] 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 CURTISS-WRIGHT CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 

H - 2 

Form of Designated Borrower Request and Assumption Agreement

EXHIBIT I  

FORM OF DESIGNATED BORROWER NOTICE

Date: __________, _______

	
  

 	
  

 
	
 To: 

 	
 Curtiss-Wright Corporation

 
	
  

 	
  

 
	
  

 	
 The Lenders party to the
 Credit Agreement referred to below

 

Ladies and Gentlemen:

          This
Designated Borrower Notice is made and delivered pursuant to Section 2.14
of that certain Second Amended and Restated Credit Agreement, dated as of
________, 2007 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Credit Agreement”), among
Curtiss-Wright Corporation, a Delaware corporation (the “Company”), the
Designated Borrowers from time to time party thereto, the Lenders from time to
time party thereto, and Bank of America, N.A., as Administrative Agent, L/C
Issuer and Swing Line Lender, et al. and reference is made thereto for full
particulars of the matters described therein. All capitalized terms used in
this Designated Borrower Notice and not otherwise defined herein shall have the
meanings assigned to them in the Credit Agreement. 

          The
Administrative Agent hereby notifies Company and the Lenders that effective as
of the date hereof [__________________] shall be a Designated Borrower and may
receive Loans for its account on the terms and conditions set forth in the
Credit Agreement. 

          This
Designated Borrower Notice shall constitute a Loan Document under the Credit
Agreement. 

	
  

 	
  

 	
  

 
	
  

 	
 BANK OF AMERICA, N.A., 

 as Administrative Agent

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 

I - 1 

Form of Designated Borrower Notice

SCHEDULE 1.01 

MANDATORY COST FORMULAE

	
  

 	
  

 	
  

 
	
 1.

 	
 The Mandatory Cost (to the
 extent applicable) is an addition to the interest rate to compensate Lenders
 for the cost of compliance with: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the requirements of the
 Bank of England and/or the Financial Services Authority (or, in either case,
 any other authority which replaces all or any of its functions); or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the requirements of the
 European Central Bank.

 
	
  

 	
  

 	
  

 
	
 2.

 	
 On the first day of each
 Interest Period (or as soon as practicable thereafter) the Administrative
 Agent shall calculate, as a percentage rate, a rate (the “Additional Cost
 Rate”) for each Lender, in accordance with the paragraphs set out below.
 The Mandatory Cost will be calculated by the Administrative Agent as a
 weighted average of the Lenders’ Additional Cost Rates (weighted in
 proportion to file percentage participation of each Lender in the relevant
 Loan) and will be expressed as a percentage rate per annum. The
 Administrative Agent will, at the request of the Company or any Lender,
 deliver to the Company or such Lender as the case may be, a statement setting
 forth the calculation of any Mandatory Cost. 

 
	
  

 	
  

 	
  

 
	
 3.

 	
 The Additional Cost Rate
 for any Lender lending from a Lending Office in a Participating Member State
 will be the percentage notified by that Lender to the Administrative Agent.
 This percentage will be certified by such Lender in its notice to the
 Administrative Agent as the cost (expressed as a percentage of such Lender’s
 participation in all Loans made from such Lending Office) of complying with
 the minimum reserve requirements of the European Central Bank in respect of
 Loans made from that Lending Office. 

 
	
  

 	
  

 	
  

 
	
 4.

 	
 The Additional Cost Rate
 for any Lender lending from a Lending Office in the United Kingdom will be
 calculated by the Administrative Agent as follows: 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in relation to any Loan in
 Sterling:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 AB+C(B-D)+E
 x 0.01

 	
   per cent per annum

 
	
  

 	
  

 	
  

 	
 100-(A+C)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in relation to any Loan in
 any currency other than Sterling:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 E
 x 0.01

 	
   per cent per annum

 
	
  

 	
  

 	
  

 	
 300

 

	
  

 	
  

 	
  

 
	
 Where: 

 
	
  

 	
  

 	
  

 
	
  

 	
 “A”

 	
 is the percentage of
 Eligible Liabilities (assuming these to be in excess of any stated minimum)
 which that Lender is from time to time required to maintain as an interest
 free cash ratio deposit with the Bank of England to comply with cash ratio
 requirements. 

 
	
  

 	
  

 	
  

 
	
  

 	
 “B”

 	
 is the percentage rate of
 interest (excluding the Applicable Rate, the Mandatory Cost and any interest
 charged on overdue amounts pursuant to the first sentence of Section
 2.08(b) and, in the case of interest (other than on overdue amounts)
 charged at the Default Rate, without counting any increase in interest rate
 effected by the charging of the Default Rate) payable for the relevant
 Interest Period of such Loan.

 
	
  

 	
  

 	
  

 
	
  

 	
 “C”

 	
 is the percentage (if may)
 of Eligible Liabilities which that Lender is required from time to time to maintain
 as interest bearing Special Deposits with the Bank of England.

 
	
  

 	
  

 	
  

 
	
  

 	
 “D”

 	
 is the percentage rate per
 annum payable by the Bank of England to the Administrative Agent on interest
 bearing Special Deposits.

 
	
  

 	
  

 	
  

 
	
  

 	
 “E”

 	
 is designed to compensate
 Lenders for amounts payable under the Fees Regulations and is calculated by
 the Administrative Agent as being the average of the most recent rates of
 charge supplied by the Lenders to the Administrative Agent pursuant to
 paragraph 7 below and expressed in pounds per £1,000,000.

 
	
  

 	
  

 	
  

 
	
 5.

 	
 For the purposes of this
 Schedule: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 “Eligible Liabilities”
 and “Special Deposits” have the meanings given to them from time to
 time under or pursuant to the Bank of England Act 1998 or (as may be
 appropriate) by the Bank of England;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 “Fees Regulations”
 means the FSA Supervision Manual or such other law or regulation as may be in
 force from time to time in respect of the payment of fees for the acceptance
 of deposits;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 “Fee Tariffs” means
 the fee tariffs specified in the Fees Regulations under the activity group
 A.1 Deposit acceptors (ignoring may minimum fee or zero rated fee required
 pursuant to the Fees Regulations but taking into account any applicable
 discount rate); and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 “Tariff Base” has
 the meaning given to it in, and will be calculated in accordance with, the
 Fees Regulations.

 
	
  

 	
  

 	
  

 
	
 6.

 	
 In application of the
 above formulae, A, B, C and D will be included in the formulae as percentages
 (i.e. 5% will be included in the formula as 5 and not as 0.05). A negative
 result obtained by subtracting D from B shall be taken as zero. The resulting
 figures shall be rounded to four decimal places. 

 
	
  

 	
  

 	
  

 
	
 7.

 	
 If requested by the
 Administrative Agent or the Company, each Lender with a Lending Office in the
 United Kingdom or a Participating Member State shall, as soon as practicable
 after publication by the Financial Services Authority, supply to
 Administrative Agent and the Company, the rate of charge payable by such
 Lender to the 

 

	
  

 	
  

 	
  

 
	
  

 	
 Financial Services
 Authority pursuant to the Fees Regulations in respect of the relevant
 financial year of the Financial Services Authority (calculated for this
 purpose by such Lender as being the average of the Fee Tariffs applicable to
 such Lender for that financial year) and expressed in pounds per £1,000,000
 of the Tariff Base of such Lender.

 
	
  

 	
  

 	
  

 
	
 8.

 	
 Each Lender shall supply
 any information required by the Administrative Agent for the purpose of
 calculating its Additional Cost Rate. In particular, but without limitation,
 each Lender shall supply the following information in writing on or prior to
 the date on which it becomes a Lender: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 its jurisdiction of
 incorporation and the jurisdiction of the Lending Office out of which it is
 making available its participation in the relevant Loan; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any other information that
 the Administrative Agent may reasonably require for such purpose. 

 
	
  

 	
  

 
	
 Each Lender shall promptly
 notify the Administrative Agent in writing of any change to the information
 provided by it pursuant to this paragraph.

 
	
  

 	
  

 
	
 9.

 	
 The
 percentages or rates of charge of each Lender for the purpose of A, C and E
 above shall be determined by the Administrative Agent based upon the
 information supplied to it pursuant to paragraphs 7 and 8 above
 and on the assumption that, unless a Lender notifies the Administrative Agent
 to the contrary, each Lender’s obligations in relation to cash ratio
 deposits, Special Deposits and the Fees Regulations are the same as those of
 a typical bank from its jurisdiction of incorporation with a Lending Office
 in the same jurisdiction as such Lender’s Lending Office. 

 
	
  

 	
  

 	
  

 
	
 10.

 	
 The
 Administrative Agent shall have no liability to any Person if such
 determination results in an Additional Cost Rate which over- or
 under-compensates any Lender and shall be entitled to assume that the
 information provided by any Lender pursuant to paragraphs 3, 7
 and 8 above is true and correct in all respects.

 
	
  

 	
  

 	
  

 
	
 11.

 	
 The
 Administrative Agent shall distribute the additional amounts received as a
 result of the Mandatory Cost to the Lenders on the basis of the Additional
 Cost Rate for each Lender based on the information provided by each Lender
 pursuant to paragraphs 3, 7 and 8 above.

 
	
  

 	
  

 	
  

 
	
 12.

 	
 Any
 determination by the Administrative Agent pursuant to this Schedule in
 relation to a formula, the Mandatory Cost, an Additional Cost Rate or any
 amount payable to a Lender shall, in the absence of manifest error, be
 conclusive and binding on all parties hereto.

 
	
  

 	
  

 	
  

 
	
           The
 Administrative Agent may from time to time, after consultation with the
 Company and the Lenders, determine and notify to all parties any amendments
 which are required to be made to this Schedule in order to comply with any
 change in law, regulation or any requirements from time to time imposed by
 the Bank of England, the Financial Services Authority or the European Central
 Bank (or, in any case, any other authority which replaces all or any of its
 functions) and any such determination shall, in the absence of manifest
 error, be conclusive and binding on all parties hereto.

 

SCHEDULE 1.01A 

Curtiss-Wright
Corporation

Outstanding Letters of Credit at 7 August
2007

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Bank

 	
  

 	
 L/C #

 	
  

 	
 Facility

 	
  

 	
 Amount

 	
  

 	
  

 	
 LOC

 Expiration

 Date

 	
  

 	
 Issue

 Date

 	
  

 	
 evergreen

 	
  

 	
 Purpose/Beneficiary

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Mellon

 	
  

 	
 S866684

 	
  

 	
 TRC

 	
  

 	
 74,300
 

 	
  

 	
  

 	
 30-Nov-08

 	
  

 	
 2-Feb-00

 	
  

 	
  

 	
  

 	
 Korea Heavy Industries

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fleet BOA

 	
  

 	
 JS641 30 522

 	
  

 	
 Farris 

 	
  

 	
 42,874
 

 	
  

 	
  

 	
 30-Sep-07

 	
  

 	
 17-Jun-04

 	
  

 	
  

 	
  

 	
 Technip Singapore

 
	
 Fleet BOA

 	
  

 	
 JS641 31 302

 	
  

 	
 TRC

 	
  

 	
 42,500
 

 	
  

 	
  

 	
 26-Dec-08

 	
  

 	
 1-Jul-04

 	
  

 	
  

 	
  

 	
 Black & Veatch
 Construction

 
	
 Fleet BOA

 	
  

 	
 JS641 31 662

 	
  

 	
 TRC Korea

 	
  

 	
 416,613
 

 	
 Yen

 	
  

 	
 30-Jul-08

 	
  

 	
 9-Jul-04

 	
  

 	
 evergreen

 	
  

 	
 Korea Exchange Bank

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 B of A

 	
  

 	
 3065 310

 	
  

 	
 Trentec

 	
  

 	
 472,825
 

 	
  

 	
  

 	
 30-Jan-08

 	
  

 	
 30-Aug-04

 	
  

 	
  

 	
  

 	
 Fifth Third Bank (Trentec
 LOC)

 
	
 B of A

 	
  

 	
 3065 700

 	
  

 	
 TRC

 	
  

 	
 170,840
 

 	
  

 	
  

 	
 23-Jul-09

 	
  

 	
 24-Sep-04

 	
  

 	
 31-Jan-11

 	
  

 	
 Korea Hydro & Nuclear
 Shin-Kori

 
	
 B of A

 	
  

 	
 3065 705

 	
  

 	
 TRC

 	
  

 	
 173,046
 

 	
  

 	
  

 	
 23-Jul-09

 	
  

 	
 24-Sep-04

 	
  

 	
 31-Oct-11

 	
  

 	
 Korea Hydro & Nuclear
 Shin-Wolsong

 
	
 B of A

 	
  

 	
 3066 083

 	
  

 	
 Farris 

 	
  

 	
 13,108
 

 	
  

 	
  

 	
 30-Oct-07

 	
  

 	
 8-Oct-04

 	
  

 	
  

 	
  

 	
 BP Exploration (through
 Bank of Montreal)

 
	
 B of A

 	
  

 	
 3066 342

 	
  

 	
 Farris 

 	
  

 	
 6,795
 

 	
  

 	
  

 	
 19-Nov-07

 	
  

 	
 26-Oct-04

 	
  

 	
  

 	
  

 	
 Technip Singapore

 
	
 B of A

 	
  

 	
 7415 591

 	
  

 	
 Shelby

 	
  

 	
 8,532,560
 

 	
  

 	
  

 	
 29-Oct-08

 	
  

 	
 29-Oct-04

 	
  

 	
 29-Oct-23

 	
  

 	
 Cleveland County IRB
 (Principal $8.4MM)

 
	
 B of A

 	
  

 	
 7415 763

 	
  

 	
 Trentec

 	
  

 	
 500,000
 

 	
  

 	
  

 	
 31-Aug-07

 	
  

 	
 22-Nov-04

 	
  

 	
  

 	
  

 	
 HHI repayment Shin Wolsong
 (through KEB)

 
	
 B of A

 	
  

 	
 7415 764

 	
  

 	
 Trentec

 	
  

 	
 250,000
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 23-Nov-04

 	
  

 	
 30-Jul-14

 	
  

 	
 HHI guarantee Shin
 Wolsong(through KEB)

 
	
 B of A

 	
  

 	
 7415 775

 	
  

 	
 Trentec

 	
  

 	
 250,000
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 22-Nov-04

 	
  

 	
 30-Jul-13

 	
  

 	
 HHI guarantee Shin Kori
 (through KEB)

 
	
 B of A

 	
  

 	
 7415 822

 	
  

 	
 MIC

 	
  

 	
 113,690
 

 	
 eur 

 	
  

 	
 31-Jan-09

 	
  

 	
 1-Dec-04

 	
  

 	
 perm

 	
  

 	
 Le Mose Costruzione
 (through Banca Intesa)

 
	
 B of A

 	
  

 	
 7415 904

 	
  

 	
 TRC

 	
  

 	
 107,197
 

 	
  

 	
  

 	
 30-Nov-07

 	
  

 	
 10-Dec-04

 	
  

 	
  

 	
  

 	
 Town of Babylon Ind
 Development Agency

 
	
 B of A

 	
  

 	
 6800 0156

 	
  

 	
 Farris

 	
  

 	
 23,410
 

 	
 eur

 	
  

 	
 30-Apr-08

 	
  

 	
 25-Mar-05

 	
  

 	
  

 	
  

 	
 Skandinaviska Raffinaderi
 (through Svenska Handelsbanken)

 
	
 B of A

 	
  

 	
 6800 0160

 	
  

 	
 Indal

 	
  

 	
 673,728
 

 	
 eur

 	
  

 	
 31-Oct-07

 	
  

 	
 19-Apr-05

 	
  

 	
  

 	
  

 	
 Sofratem (through So Gen)

 
	
 B of A

 	
  

 	
 6800 0161

 	
  

 	
 Indal

 	
  

 	
 37,966
 

 	
  

 	
  

 	
 31-Mar-08

 	
  

 	
 28-Mar-05

 	
  

 	
  

 	
  

 	
 Northrup Grumman Ship
 Systems

 
	
 B of A

 	
  

 	
 6800 0162

 	
  

 	
 Farris

 	
  

 	
 25,784
 

 	
  

 	
  

 	
 30-Jul-08

 	
  

 	
 28-Mar-05

 	
  

 	
 evergreen

 	
  

 	
 Woodside Energy (through
 National Australian Bank)

 
	
 B of A

 	
  

 	
 6800 0166

 	
  

 	
 Indal

 	
  

 	
 1,424,907
 

 	
 CAD

 	
  

 	
 14-Jan-08

 	
  

 	
 31-Mar-05

 	
  

 	
  

 	
  

 	
 Tennex Defence (through
 National Australia Bank)

 
	
 B of A

 	
  

 	
 6800 0169

 	
  

 	
 Indal

 	
  

 	
 74,292
 

 	
 CAD

 	
  

 	
 19-Aug-08

 	
  

 	
 25-Mar-05

 	
  

 	
  

 	
  

 	
 Blohm & Voss (through
 Dresdner Bank AG)

 
	
 B of A

 	
  

 	
 6800 0170

 	
  

 	
 MIC EM Coat

 	
  

 	
 34,438
 

 	
  

 	
  

 	
 3-Apr-08

 	
  

 	
 25-Mar-05

 	
  

 	
 perm

 	
  

 	
 County of Los Angeles Fire
 Department

 
	
 B of A

 	
  

 	
 6800 0173

 	
  

 	
 Indal

 	
  

 	
 1,015,005
 

 	
 CAD

 	
  

 	
 14-Aug-08

 	
  

 	
 30-Mar-05

 	
  

 	
  

 	
  

 	
 PSC Naval Dockyards SB
 (through Maybank Int’l)

 
	
 B of A

 	
  

 	
 6800 0177

 	
  

 	
 Indal

 	
  

 	
 89,200
 

 	
  

 	
  

 	
 31-Dec-07

 	
  

 	
 12-Apr-05

 	
  

 	
  

 	
  

 	
 Edo Corporation Combat
 Systems

 
	
 B of A

 	
  

 	
 6800 6370

 	
  

 	
 Indal

 	
  

 	
 73,319
 

 	
 CAD

 	
  

 	
 15-Aug-08

 	
  

 	
 20-May-05

 	
  

 	
  

 	
  

 	
 Tenex Defense Systems
 (through Maybank Int’l)

 
	
 B of A

 	
  

 	
 6800 0191

 	
  

 	
 Indal

 	
  

 	
 40,450
 

 	
  

 	
  

 	
 31-Oct-07

 	
  

 	
 13-May-05

 	
  

 	
  

 	
  

 	
 Northrop Grumman

 
	
 B of A

 	
  

 	
 6800 0193

 	
  

 	
 Farris

 	
  

 	
 86,415
 

 	
  

 	
  

 	
 28-Sep-07

 	
  

 	
 19-May-05

 	
  

 	
  

 	
  

 	
 HHI

 
	
 B of A

 	
  

 	
 6800 0194

 	
  

 	
 Enertech

 	
  

 	
 21,000
 

 	
  

 	
  

 	
 31-Dec-07

 	
  

 	
 20-May-05

 	
  

 	
  

 	
  

 	
 Doosan Item 1

 
	
 B of A

 	
  

 	
 6800 0195

 	
  

 	
 Enertech

 	
  

 	
 21,000
 

 	
  

 	
  

 	
 30-Dec-08

 	
  

 	
 20-May-05

 	
  

 	
  

 	
  

 	
 Doosan Item 2

 
	
 B of A

 	
  

 	
 6800 0199

 	
  

 	
 Farris Canada

 	
  

 	
 13,503
 

 	
  

 	
  

 	
 31-Oct-08

 	
  

 	
 28-Jun-05

 	
  

 	
  

 	
  

 	
 Sakhalin Energy Investment
 Co.

 
	
 B of A

 	
  

 	
 6800 0200

 	
  

 	
 Enertech

 	
  

 	
 3,540
 

 	
  

 	
  

 	
 31-Aug-07

 	
  

 	
 20-Jun-05

 	
  

 	
  

 	
  

 	
 CFE

 
	
 B of A

 	
  

 	
 6800 0201

 	
  

 	
 Flow UK

 	
  

 	
 13,531
 

 	
 GBP

 	
  

 	
 30-Oct-07

 	
  

 	
 15-Jul-05

 	
  

 	
  

 	
  

 	
 Axsia Serck Baker

 
	
 B of A

 	
  

 	
 6800 1054

 	
  

 	
 TRC

 	
  

 	
 42,913
 

 	
  

 	
  

 	
 30-May-09

 	
  

 	
 24-Jun-05

 	
  

 	
 28-Feb-13

 	
  

 	
 Doosan Heavy Industries
 America Shin Kori

 
	
 B of A

 	
  

 	
 6800 1055

 	
  

 	
 TRC

 	
  

 	
 42,913
 

 	
  

 	
  

 	
 30-May-09

 	
  

 	
 24-Jun-05

 	
  

 	
 30-Sep-13

 	
  

 	
 Doosan Heavy Industries
 America Shin Wolsung

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 B of A

 	
  

 	
 6800 1056

 	
  

 	
 Enertech

 	
  

 	
 21,000
 

 	
  

 	
  

 	
 28-Dec-07

 	
  

 	
 24-Jun-05

 	
  

 	
  

 	
  

 	
 Doosan Heavy Industries
 America Item 1

 
	
 B of A

 	
  

 	
 6800 1057

 	
  

 	
 Enertech

 	
  

 	
 21,000
 

 	
  

 	
  

 	
 30-Dec-08

 	
  

 	
 24-Jun-05

 	
  

 	
  

 	
  

 	
 Doosan Heavy Industries
 America Item 2

 
	
 B of A

 	
  

 	
 6800 1061

 	
  

 	
 TRC Korea

 	
  

 	
 413,386
 

 	
 Yen

 	
  

 	
 10-Aug-08

 	
  

 	
 9-Aug-05

 	
  

 	
 evergreen

 	
  

 	
 Korea Exchange Bank (assume
 Woori debt)

 
	
 B of A

 	
  

 	
 6800 1066

 	
  

 	
 Farris

 	
  

 	
 23,702
 

 	
  

 	
  

 	
 28-Nov-08

 	
  

 	
 11-Oct-05

 	
  

 	
  

 	
  

 	
 Sakhalin Energy Investment
 Co.

 
	
 B of A

 	
  

 	
 6800 1067

 	
  

 	
 Farris

 	
  

 	
 31,948
 

 	
  

 	
  

 	
 30-Nov-07

 	
  

 	
 14-Oct-05

 	
  

 	
  

 	
  

 	
 Oriental Petrochemical
 (Shanghai) Corp

 
	
 B of A

 	
  

 	
 6800 1068

 	
  

 	
 Indal

 	
  

 	
 206,985
 

 	
 eur

 	
  

 	
 31-Oct-07

 	
  

 	
 31-Oct-05

 	
  

 	
  

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 6800 1069

 	
  

 	
 Indal

 	
  

 	
 304,542
 

 	
  

 	
  

 	
 27-Sep-07

 	
  

 	
 27-Oct-05

 	
  

 	
  

 	
  

 	
 Turk Deniz Kuvvetleri
 (through Turkiye Cumhuriyeti Zeraat)

 
	
 B of A

 	
  

 	
 6800 1071

 	
  

 	
 Indal

 	
  

 	
 34,498
 

 	
 eur

 	
  

 	
 31-Oct-07

 	
  

 	
 31-Oct-05

 	
  

 	
  

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 6800 1072

 	
  

 	
 Indal

 	
  

 	
 34,498
 

 	
 eur

 	
  

 	
 31-Oct-07

 	
  

 	
 31-Oct-05

 	
  

 	
  

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 6800 1073

 	
  

 	
 Indal

 	
  

 	
 34,498
 

 	
 eur

 	
  

 	
 31-Oct-07

 	
  

 	
 31-Oct-05

 	
  

 	
  

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 6800 1074

 	
  

 	
 Indal

 	
  

 	
 34,498
 

 	
 eur

 	
  

 	
 31-Oct-07

 	
  

 	
 31-Oct-05

 	
  

 	
  

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 6800 1078

 	
  

 	
 Enertech

 	
  

 	
 38,859
 

 	
  

 	
  

 	
 21-May-08

 	
  

 	
 25-Nov-05

 	
  

 	
  

 	
  

 	
 Korea Hydro Nuclear (thru
 KEB)

 
	
 B of A

 	
  

 	
 6800 1080

 	
  

 	
 FC Solenoid Valve

 	
  

 	
 100,000
 

 	
  

 	
  

 	
 31-Dec-07

 	
  

 	
 30-Nov-05

 	
  

 	
  

 	
  

 	
 Citibank (Solenoid Valve)

 
	
 B of A

 	
  

 	
 6800 1081

 	
  

 	
 CWAT

 	
  

 	
 9,839,372
 

 	
 CHF

 	
  

 	
 5-Dec-08

 	
  

 	
 8-Dec-05

 	
  

 	
  

 	
  

 	
 UBS

 
	
 B of A

 	
  

 	
 6800 1084

 	
  

 	
 Indal

 	
  

 	
 304,352
 

 	
 eur

 	
  

 	
 29-Sep-07

 	
  

 	
 12-Jan-06

 	
  

 	
  

 	
  

 	
 Singapore Technologies
 Marine Ltd

 
	
 B of A

 	
  

 	
 6800 1086

 	
  

 	
 Farris

 	
  

 	
 10,363
 

 	
  

 	
  

 	
 29-Feb-08

 	
  

 	
 19-Jan-06

 	
  

 	
  

 	
  

 	
 China Petro-Chemical

 
	
 B of A

 	
  

 	
 6800 1092

 	
  

 	
 Enpro

 	
  

 	
 204,063
 

 	
  

 	
  

 	
 30-Nov-07

 	
  

 	
 14-Apr-06

 	
  

 	
  

 	
  

 	
 Frost National Bank

 
	
 B of A

 	
  

 	
 6800 1095

 	
  

 	
 TAPCO

 	
  

 	
 5,626
 

 	
  

 	
  

 	
 13-Nov-07

 	
  

 	
 29-May-06

 	
  

 	
  

 	
  

 	
 Pemex T118670

 
	
 B of A

 	
  

 	
 6800 1096

 	
  

 	
 TAPCO

 	
  

 	
 12,910
 

 	
  

 	
  

 	
 25-Nov-07

 	
  

 	
 6-Jun-06

 	
  

 	
  

 	
  

 	
 Pemex T118689

 
	
 B of A

 	
  

 	
 68013258(1097)

 	
  

 	
 Indal

 	
  

 	
 76,295
 

 	
 eur

 	
  

 	
 13-Jun-08

 	
  

 	
 15-Jun-06

 	
  

 	
  

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 68013261(1098)

 	
  

 	
 Indal

 	
  

 	
 25,425
 

 	
 eur

 	
  

 	
 13-Jun-08

 	
  

 	
 15-Jun-06

 	
  

 	
 29-Apr-10

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 68013265(1099)

 	
  

 	
 Indal

 	
  

 	
 25,438
 

 	
 eur

 	
  

 	
 13-Jun-08

 	
  

 	
 15-Jun-06

 	
  

 	
 13-Nov-09

 	
  

 	
 Constructions Mecanique De
 Normandie

 
	
 B of A

 	
  

 	
 6800 1100

 	
  

 	
 TAPCO

 	
  

 	
 175,000
 

 	
  

 	
  

 	
 15-Apr-09

 	
  

 	
 13-Jun-06

 	
  

 	
  

 	
  

 	
 SembCorp Simon-Carves Ltd

 
	
 B of A

 	
  

 	
 6800 1102

 	
  

 	
 TAPCO

 	
  

 	
 15,000
 

 	
  

 	
  

 	
 10-Dec-07

 	
  

 	
 14-Jun-06

 	
  

 	
  

 	
  

 	
 Pemex T118709

 
	
 B of A

 	
  

 	
 6800 2154

 	
  

 	
 TRC

 	
  

 	
 64,770
 

 	
  

 	
  

 	
 30-May-09

 	
  

 	
 7-Jul-06

 	
  

 	
 30-Nov-14

 	
  

 	
 Doosan Heavy Industry (Shin
 Kori)

 
	
 B of A

 	
  

 	
 6800 2155

 	
  

 	
 TRC

 	
  

 	
 64,770
 

 	
  

 	
  

 	
 30-May-09

 	
  

 	
 13-Jul-06

 	
  

 	
 30-Nov-15

 	
  

 	
 Doosan Heavy Industry (Shin
 Wolsung)

 
	
 B of A

 	
  

 	
 6800 2157

 	
  

 	
 Vista

 	
  

 	
 765,000
 

 	
  

 	
  

 	
 31-Mar-08

 	
  

 	
 9-Aug-06

 	
  

 	
  

 	
  

 	
 Israel Aircraft Industries
 Ltd.

 
	
 B of A

 	
  

 	
 6800 2158

 	
  

 	
 CWC

 	
  

 	
 10,000
 

 	
  

 	
  

 	
 10-Aug-07

 	
  

 	
 7-Aug-06

 	
  

 	
  

 	
  

 	
 National Union replace
 Mellon S815815

 
	
 B of A

 	
  

 	
 6800 2159

 	
  

 	
 Indal

 	
  

 	
 44,899
 

 	
  

 	
  

 	
 28-Feb-08

 	
  

 	
 30-Aug-06

 	
  

 	
  

 	
  

 	
 Northrop Grumman Ship
 Systems

 
	
 B of A

 	
  

 	
 6800 2160

 	
  

 	
 Farris

 	
  

 	
 2,156
 

 	
  

 	
  

 	
 3-Dec-07

 	
  

 	
 29-Aug-06

 	
  

 	
  

 	
  

 	
 Toyo Engineering India Ltd.

 
	
 B of A

 	
  

 	
 6800 2162

 	
  

 	
 Enertech

 	
  

 	
 45,250
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 13-Sep-06

 	
  

 	
 28-May-10

 	
  

 	
 Samshin Ltd (through KEB)

 
	
 B of A

 	
  

 	
 6800 2163

 	
  

 	
 Enertech

 	
  

 	
 45,250
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 13-Sep-06

 	
  

 	
 28-Mar-11

 	
  

 	
 Samshin Ltd (through KEB)

 
	
 B of A

 	
  

 	
 6800 2164

 	
  

 	
 Enertech

 	
  

 	
 45,250
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 13-Sep-06

 	
  

 	
 28-Feb-11

 	
  

 	
 Samshin Ltd (through KEB)

 
	
 B of A

 	
  

 	
 6800 2165

 	
  

 	
 Enertech

 	
  

 	
 45,250
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 13-Sep-06

 	
  

 	
 30-Dec-11

 	
  

 	
 Samshin Ltd (through KEB)

 
	
 B of A

 	
  

 	
 6800 2166

 	
  

 	
 DeltaValve US

 	
  

 	
 322,172
 

 	
  

 	
  

 	
 3-Mar-08

 	
  

 	
 14-Sep-06

 	
  

 	
  

 	
  

 	
 Sasol Technology (PTY)
 Limited

 
	
 B of A

 	
  

 	
 6800 2167

 	
  

 	
 TRC

 	
  

 	
 963,875
 

 	
  

 	
  

 	
 1-Jun-09

 	
  

 	
 26-Sep-06

 	
  

 	
 1-Jun-10

 	
  

 	
 GE Lungman

 
	
 B of A

 	
  

 	
 6800 2169

 	
  

 	
 TAPCO

 	
  

 	
 33,120
 

 	
  

 	
  

 	
 27-Jan-09

 	
  

 	
 28-Sep-06

 	
  

 	
  

 	
  

 	
 Dragados Warranty 1

 
	
 B of A

 	
  

 	
 6800 2170

 	
  

 	
 TAPCO

 	
  

 	
 33,120
 

 	
  

 	
  

 	
 27-Jan-09

 	
  

 	
 28-Sep-06

 	
  

 	
  

 	
  

 	
 Dragados Warranty 2

 
	
 B of A

 	
  

 	
 6800 2171

 	
  

 	
 Indal

 	
  

 	
 362,465
 

 	
 eur

 	
  

 	
 31-Jul-08

 	
  

 	
 10-Oct-06

 	
  

 	
  

 	
  

 	
 Fincantieri-Cantieri Navali

 
	
 B of A

 	
  

 	
 6800 2172

 	
  

 	
 Indal

 	
  

 	
 362,465
 

 	
 eur

 	
  

 	
 31-Dec-07

 	
  

 	
 10-Oct-06

 	
  

 	
  

 	
  

 	
 Fincantieri-Cantieri Navali

 
	
 B of A

 	
  

 	
 6800 2176

 	
  

 	
 Farris

 	
  

 	
 248,001
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 23-Oct-06

 	
  

 	
 30-Jun-10

 	
  

 	
 Eastern Bechtel Co Ltd
 (through HSBC)

 

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 B of A

 	
  

 	
 6800 2184

 	
  

 	
 Trentec

 	
  

 	
 77,106

 	
  

 	
  

 	
 5-Sep-08

 	
  

 	
 21-Nov-06

 	
  

 	
  

 	
  

 	
 Korea Hydro Nuclear (thru
 KEB)

 
	
 B of A

 	
  

 	
 6800 2186

 	
  

 	
 Indal

 	
  

 	
 637
 

 	
 CAD

 	
  

 	
 12-Sep-08

 	
  

 	
 22-Nov-06

 	
  

 	
  

 	
  

 	
 Turk Deniz Kuvvetleri
 (through Turkiye IS Bankasi)

 
	
 B of A

 	
  

 	
 6800 2187

 	
  

 	
 Trentec

 	
  

 	
 143,750
 

 	
  

 	
  

 	
 31-May-09

 	
  

 	
 11-Dec-06

 	
  

 	
 31-May-13

 	
  

 	
 Huaxig Co (thru China
 Construction Bank)

 
	
 B of A

 	
  

 	
 6800 2191

 	
  

 	
 Farris

 	
  

 	
 86,181
 

 	
  

 	
  

 	
 29-May-09

 	
  

 	
 1-Feb-07

 	
  

 	
  

 	
  

 	
 Snamprogetti (through
 Unicredito Italiano)

 
	
 B of A

 	
  

 	
 6800 2192

 	
  

 	
 Indal

 	
  

 	
 100,000
 

 	
  

 	
  

 	
 9-Nov-07

 	
  

 	
 2-Feb-07

 	
  

 	
  

 	
  

 	
 Government of Singapore
 (through Standard Charter Bank)

 
	
 B of A

 	
  

 	
 6800 2193

 	
  

 	
 TAPCO

 	
  

 	
 188
 

 	
  

 	
  

 	
 9-Jun-08

 	
  

 	
 6-Feb-07

 	
  

 	
  

 	
  

 	
 Pemex T118929

 
	
 B of A

 	
  

 	
 6800 2194

 	
  

 	
 TAPCO

 	
  

 	
 104,325
 

 	
  

 	
  

 	
 30-Jun-08

 	
  

 	
 9-Feb-07

 	
  

 	
  

 	
  

 	
 Hindustan Petroleum
 (through BOA Chennai)

 
	
 B of A

 	
  

 	
 6800 2195

 	
  

 	
 TAPCO

 	
  

 	
 90,360
 

 	
  

 	
  

 	
 24-Apr-09

 	
  

 	
 2-Mar-07

 	
  

 	
 24-Apr-10

 	
  

 	
 JGC Corporation

 
	
 B of A

 	
  

 	
 6800 2196

 	
  

 	
 Indal

 	
  

 	
 6,650
 

 	
 CAD

 	
  

 	
 5-Sep-07

 	
  

 	
 27-Mar-07

 	
  

 	
  

 	
  

 	
 Turk Deniz Kuvvetleri
 (through Turkiye IS Bankasi)

 
	
 B of A

 	
  

 	
 6800 2197

 	
  

 	
 Farris

 	
  

 	
 936,337
 

 	
  

 	
  

 	
 1-Mar-08

 	
  

 	
 20-Apr-07

 	
  

 	
  

 	
  

 	
 CTEP FZCO UAE (through
 Commercual Bank Int’l Dubai/reissue HSBC UK 5/31)

 
	
 B of A

 	
  

 	
 6800 2198

 	
  

 	
 Farris

 	
  

 	
 119,358
 

 	
  

 	
  

 	
 31-Dec-07

 	
  

 	
 25-May-07

 	
  

 	
  

 	
  

 	
 Eastern Bechtel Co. Ltd
 (A/P)

 
	
 B of A

 	
  

 	
 6800 2199

 	
  

 	
 Farris

 	
  

 	
 119,358
 

 	
  

 	
  

 	
 30-Jun-09

 	
  

 	
 25-May-07

 	
  

 	
 31-Dec-10

 	
  

 	
 Eastern Bechtel Co. Ltd
 (perf)

 
	
 B of A

 	
  

 	
 6800 2200

 	
  

 	
 Farris

 	
  

 	
 10,243
 

 	
  

 	
  

 	
 15-Jan-09

 	
  

 	
 25-May-07

 	
  

 	
  

 	
  

 	
 Nebraska City Power
 Partners

 
	
 B of A

 	
  

 	
 6800 2201

 	
  

 	
 Scientech 

 	
  

 	
 735,566
 

 	
  

 	
  

 	
 1-Apr-09

 	
  

 	
 4-May-07

 	
  

 	
  

 	
  

 	
 U.S. Bank N.A. (assume
 Scientech lc)

 
	
 B of A

 	
  

 	
 6800 2202

 	
  

 	
 MIC

 	
  

 	
 61,746
 

 	
 CAD

 	
  

 	
 30-Jun-09

 	
  

 	
 22-May-07

 	
  

 	
 evergreen

 	
  

 	
 Union Gas (through CIBC)

 
	
 B of A

 	
  

 	
 6800 3353

 	
  

 	
 Indal

 	
  

 	
 450,000
 

 	
  

 	
  

 	
 22-Jun-08

 	
  

 	
 29-May-07

 	
  

 	
  

 	
  

 	
 STM Savunma Teknolojileri
 (through Turkiye IS Bankasi) A/P

 
	
 B of A

 	
  

 	
 6800 3354

 	
  

 	
 Indal

 	
  

 	
 180,000
 

 	
  

 	
  

 	
 22-Jun-08

 	
  

 	
 29-May-07

 	
  

 	
  

 	
  

 	
 STM Savunma Teknolojileri
 (through Turkiye IS Bankasi) (perf)

 
	
 B of A

 	
  

 	
 6800 3355

 	
  

 	
 Indal

 	
  

 	
 48,040
 

 	
  

 	
  

 	
 30-Nov-07

 	
  

 	
 29-Jun-07

 	
  

 	
 30-Nov-09

 	
  

 	
 Northrop Grumman Ship
 Systems Inc.

 
	
 B of A

 	
  

 	
 6800 3356

 	
  

 	
 Indal

 	
  

 	
 4,987
 

 	
 CAD

 	
  

 	
 21-Oct-07

 	
  

 	
 18-May-07

 	
  

 	
  

 	
  

 	
 Turk Deniz Kuvvetleri
 (through Turkiye IS Bankasi)

 
	
 B of A

 	
  

 	
 6800 3357

 	
  

 	
 Indal

 	
  

 	
 6,995
 

 	
 CAD

 	
  

 	
 4-Jul-08

 	
  

 	
 29-May-07

 	
  

 	
  

 	
  

 	
 Turk Deniz Kuvvetleri
 (through Turkiye IS Bankasi)

 
	
 B of A

 	
  

 	
 6800 3358

 	
  

 	
 Indal

 	
  

 	
 42,284
 

 	
  

 	
  

 	
 1-Jun-08

 	
  

 	
 21-May-07

 	
  

 	
  

 	
  

 	
 Government of Israel
 Ministry of Defense

 
	
 B of A

 	
  

 	
 3077 503

 	
  

 	
 VSC

 	
  

 	
 556,762
 

 	
  

 	
  

 	
 31-Dec-08

 	
  

 	
 30-May-07

 	
  

 	
  

 	
  

 	
 Technip Italy (assumed
 existing BOA lc at acquisition)

 
	
 B of A

 	
  

 	
 3086 076

 	
  

 	
 VSC

 	
  

 	
 4,239,300
 

 	
  

 	
  

 	
 31-Dec-07

 	
  

 	
 30-May-07

 	
  

 	
  

 	
  

 	
 Toyo (assumed existing BOA
 lc at acquisition)

 
	
 B of A

 	
  

 	
 3086 100

 	
  

 	
 VSC

 	
  

 	
 1,184,626
 

 	
  

 	
  

 	
 27-Jul-09

 	
  

 	
 30-May-07

 	
  

 	
  

 	
  

 	
 Sincrudos (assumed existing
 BOA lc at acquisition)

 
	
 B of A

 	
  

 	
 6800 3359

 	
  

 	
 Deltavalve

 	
  

 	
 5,467,422
 

 	
  

 	
  

 	
 15-Nov-08

 	
  

 	
 1-Jun-07

 	
  

 	
  

 	
  

 	
 JSC Ufaneftechim

 
	
 B of A

 	
  

 	
 6800 3360

 	
  

 	
 Farris

 	
  

 	
 12,234
 

 	
  

 	
  

 	
 30-Sep-08

 	
  

 	
 27-Jul-07

 	
  

 	
 30-Aug-10

 	
  

 	
 Petrofac EC Intl (through
 HSBC

 
	
 B of A

 	
  

 	
 6800 3361

 	
  

 	
 VSC

 	
  

 	
 178,867
 

 	
  

 	
  

 	
 15-Aug-08

 	
  

 	
 19-Jul-07

 	
  

 	
 15-Aug-09

 	
  

 	
 HHI

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Total letters of credit

 	
  

 	
 45,338,050

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 YEN

 	
  

 	
 118.455342

 	
  

 	
 BOA 8/7

 
	
 Euro

 	
  

 	
 1.379900

 	
  

 	
 BOA 8/7

 
	
 CAD

 	
  

 	
 0.949938

 	
  

 	
 BOA 8/7

 
	
 GBP

 	
  

 	
 2.030000

 	
  

 	
 BOA 8/7

 
	
 CHF

 	
  

 	
 0.840972

 	
  

 	
 BOA 8/7

 
	
  

 	
  

 	
  

 	
  

 	
 rates from
 8/7 e-mail from Kourosh Hessamfar

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

	
  

 	
  

 	
  

 	
  

 
	
 Lender

 	
 Commitment

 	
 Applicable

 Percentage

 
	

 

 	

 

 	

 

 
	
 Bank of
 America, N.A

 	
 $87,500,000.00

 	
 20.588235294%

 	
  

 
	
 JPMorgan
 Chase Bank N.A.

 	
 $87,500,000.00

 	
 20.588235294%

 	
  

 
	
 Citibank,
 N.A.

 	
 $60,000,000.00

 	
 14.117647059%

 	
  

 
	
 SunTrust
 Bank

 	
 $60,000,000.00

 	
 14.117647059%

 	
  

 
	
 The Bank of
 New York

 	
 $35,000,000.00

 	
 8.235294118%

 	
  

 
	
 Wachovia
 Bank, National Association

 	
 $35,000,000.00

 	
 8.235294118%

 	
  

 
	
 HSBC Bank
 USA NA

 	
 $35,000,000.00

 	
 8.235294118%

 	
  

 
	
 PNC Bank,
 National Association

 	
 $25,000,000.00

 	
 5.882352941%

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Total

 	
  $425,000,000.00   

 	
 100.000000000%

 	
  

 

Schedule
4.01(a)

to Credit Agreement

List of Borrowers 

Organization/Formation/Qualification to do Business

	
  

 	
  

 	
  

 	
  

 
	
 Name of
 Company

 	
  

 	
 Jurisdiction of Organization

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 Curtiss-Wright
 Corporation

 	
  

 	
  

 	
 Delaware

 
	
 Curtiss-Wright
 Controls, Inc.

 	
  

 	
  

 	
 Delaware

 
	
 Metal
 Improvement Company, LLC

 	
  

 	
  

 	
 Delaware

 
	
 Curtiss-Wright
 Flow Control Corporation

 	
  

 	
  

 	
 New York

 
	
 Curtiss-Wright
 Flow Control Service Corporation

 	
  

 	
  

 	
 Delaware

 
	
 Curtiss-Wright
 Electro-Mechanical Corporation

 	
  

 	
  

 	
 Delaware

 
	
 Curtiss-Wright
 Antriebstechnik, GmbH

 	
  

 	
  

 	
 Rheinfall,
 Switzerland

 
	
 Dy4 Systems,
 Inc.

 	
  

 	
  

 	
 Ontario,
 Canada

 
	
  

 	
  

 	
  

 	
  

 
	
           The
 jurisdictions in which Curtiss-Wright Corporation and each of its
 subsidiaries, respectively, are qualified to do business as foreign entities
 are set forth below:

 
	
  

 	
  

 	
  

 
	
 Name of
 Company

 	
  

 	
 Qualifying Jurisdictions

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 Curtiss-Wright
 Corporation

 	
  

 	
  

 	
 Delaware

 
	
  

 	
  

 	
  

 	
 Florida

 
	
  

 	
  

 	
  

 	
 New Jersey

 
	
  

 	
  

 	
  

 	
  

 
	
 Curtiss-Wright
 Controls, Inc.

 	
  

 	
  

 	
 Delaware

 
	
  

 	
  

 	
  

 	
 California

 
	
  

 	
  

 	
  

 	
 Florida

 
	
  

 	
  

 	
  

 	
 Massachusetts

 
	
  

 	
  

 	
  

 	
 New Jersey

 
	
  

 	
  

 	
  

 	
 New York

 
	
  

 	
  

 	
  

 	
 North
 Carolina

 
	
  

 	
  

 	
  

 	
 Ohio

 
	
  

 	
  

 	
  

 	
 Texas

 
	
  

 	
  

 	
  

 	
 Virginia

 
	
  

 	
  

 	
  

 	
 Washington

 
	
  

 	
  

 	
  

 	
 Canada

 
	
  

 	
  

 	
  

 	
 Germany

 
	
  

 	
  

 	
  

 	
 United
 Kingdom

 

	
  

 	
  

 	
  

 	
  

 
	
 Metal
 Improvement Company, LLC.

 	
  

 	
  

 	
 Arizona

 
	
  

 	
  

 	
  

 	
 California

 
	
  

 	
  

 	
  

 	
 Connecticut

 
	
  

 	
  

 	
  

 	
 Delaware

 
	
  

 	
  

 	
  

 	
 Florida

 
	
  

 	
  

 	
  

 	
 Georgia

 
	
  

 	
  

 	
  

 	
 Illinois

 
	
  

 	
  

 	
  

 	
 Indiana

 
	
  

 	
  

 	
  

 	
 Kansas

 
	
  

 	
  

 	
  

 	
 Louisiana

 
	
  

 	
  

 	
  

 	
 Massachusetts

 
	
  

 	
  

 	
  

 	
 Michigan

 
	
  

 	
  

 	
  

 	
 Minnesota

 
	
  

 	
  

 	
  

 	
 New Jersey

 
	
  

 	
  

 	
  

 	
 New York

 
	
  

 	
  

 	
  

 	
 North
 Carolina

 
	
  

 	
  

 	
  

 	
 Ohio

 
	
  

 	
  

 	
  

 	
 Pennsylvania

 
	
  

 	
  

 	
  

 	
 Texas

 
	
  

 	
  

 	
  

 	
 Wisconsin

 
	
  

 	
  

 	
  

 	
 Belgium

 
	
  

 	
  

 	
  

 	
 Canada

 
	
  

 	
  

 	
  

 	
 France

 
	
  

 	
  

 	
  

 	
 Germany 

 
	
  

 	
  

 	
  

 	
 Italy

 
	
  

 	
  

 	
  

 	
 Spain

 
	
  

 	
  

 	
  

 	
 Sweden

 
	
  

 	
  

 	
  

 	
 United
 Kingdom

 
	
  

 	
  

 	
  

 	
  

 
	
 Curtiss-Wright
 Flow Control Corporation

 	
  

 	
  

 	
 Alabama

 
	
  

 	
  

 	
  

 	
 New York

 
	
  

 	
  

 	
  

 	
 California

 
	
  

 	
  

 	
  

 	
 Ohio

 
	
  

 	
  

 	
  

 	
 Utah

 
	
  

 	
  

 	
  

 	
  

 
	
 Curtiss-Wright
 Flow Control Service Corporation

 	
  

 	
  

 	
 Alabama

 
	
  

 	
  

 	
  

 	
 California

 
	
  

 	
  

 	
  

 	
 Connecticut 

 
	
  

 	
  

 	
  

 	
 Florida

 
	
  

 	
  

 	
  

 	
 Georgia

 
	
  

 	
  

 	
  

 	
 Idaho

 
	
  

 	
  

 	
  

 	
 Iowa 

 
	
  

 	
  

 	
  

 	
 Louisiana

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Ohio

 
	
  

 	
  

 	
  

 	
 Pennsylvania

 
	
  

 	
  

 	
  

 	
 South
 Carolina

 
	
  

 	
  

 	
  

 	
 Texas 

 
	
  

 	
  

 	
  

 	
 Washington

 
	
  

 	
  

 	
  

 	
  

 
	
 Curitss-Wright
 Electro-Mechanical Corporation

 	
  

 	
  

 	
 Pennsylvania

 
	
  

 	
  

 	
  

 	
 New Jersey

 
	
  

 	
  

 	
  

 	
  

 
	
 Curtiss-Wright
 Antriebstechnik, GmbH

 	
  

 	
  

 	
 Rheinfall,
 Switzerland

 
	
  

 	
  

 	
  

 	
  

 
	
 Dy4 Systems,
 Inc.

 	
  

 	
  

 	
 Ontario,
 Canada

 

Schedule 5.05 to the 

Credit Agreement 

FINANCIAL STATEMENTS

          Consolidated
Balance Sheet, Income Statement, and Cash Flow Statement for Fiscal Year 2006,
and corresponding financial statements as filed with the United States
Securities and Exchange Commission on Forms 10-K and 10-Q for same periods
through June 30, 2007. 

Page 1 of 1 

Schedule 5.06 to the 

Credit Agreement 

SIGNIFICANT OUTSTANDING LEGAL PROCEEDINGS
AGAINST CURTISS-WRIGHT 

CORPORATION AND CONSOLIDATED SUBSIDIARIES

MATTER NAME: Target
Rock – DEC Groundwater Investigation

Summary of Proceedings to Date: Target Rock
has received proposed order on consent from NY Dept of Environmental
Conservation (“DEC”) to investigate and if necessary remediate potential
groundwater contamination at and/or in the vicinity of the Target Rock
facility. At this point, Target Rock and the DEC have yet to execute an order
on consent. Target Rock has retained CA Rich & Assoc. as environmental
consultants to review and prepare a work plan. 

After a delay
of approximately 1 year, counsel for DEC re-surfaced in early 2006 and
indicated she would forward a revised Order on Consent. We are awaiting this
revised form. Upon receipt, we will proceed to negotiate with the DEC on the
form of the consent. 

There has been
no activity since early 2006. 

MATTER NAME: SANDRIN
V. INDAL

Sandrin
Services Inc. issued a Statement of Claim out of the Superior Court of Justice
in Sarnia, Ontario, Canada against Indal Technologies Inc., claiming $48,608.89
for the balance owing for goods supplied plus interest and legal costs. The
claim arises out of two purchase orders issued by Indal, the first for a
specialized flange mechanism and the second for various components. The flanges
were to be fabricated to exacting specifications provided by Indal for use in a
nuclear submarine in the United Kingdom. Delivery was delayed and when the
order was partially filled it was apparent that the flange did not meet the
specification. Indal’s delivery obligations to its customer were compromised.
In order to mitigate its damages Indal used one of the flanges for the limited
purpose of testing the assembly while it sourced an alternative flange. Indal
received no value for the flanges and set off the amounts already paid on
account of the flanges against amounts owing on the other purchase order. Indal
has counterclaimed for its out of pocket and related costs for arranging for
substitute flanges in the amount of $250,000.00. 

There have
been no substantive development since the previous report dated April 16, 2007.

1

MATTER NAME: MAHER
V. CURTISS-WRIGHT CORPORATION

Summary of Proceedings to Date: In March 2006
the Corporation was served with a complaint in an action pending in the Federal
District Court of New Jersey. The complaint alleged a breach in fiduciary duty
for continuing life insurance to a terminated employee. The complaint demands
the payment of certain proceeds which would have been payable to the Plaintiff
if life insurance was continued. The Corporation believes that the claim is
meritless. The case is in the discovery phase. The case management and
settlement conference took place on April 13, 2007. Maher’s counsel continues
to seek a $600,000 pay out. This claim is covered by the Company’s fiduciary
responsibility coverage. The insurance company recently accepted coverage
regarding this matter, indicating that the case as it relates to a breach of
fiduciary duty will be covered by the carrier. Currently, opposing counsel has
filed a discovery motion with the court to which we have responded. We are
waiting to hear back from the court on the motion prior to scheduling any
additional depositions. We have spent approximately $45K thus far in litigation
cost. The Corporation is represented by Kirkpatrick & Lockhart. 

MATTER NAME: QUINLAN V. CURTISS-WRIGHT
CORPORATION 

Summary of Proceedings to Date: The first
trial resulted in a mistrial and the case is set to be retried on January 16,
2007. In February 2007, this matter went back to trial for a second time. The
jury found against the Corporation and awarded $4.5MM in compensatory damages,
$4.5MM in punitive damages, and another $1.3MM in attorney’s fees. On May 11,
2007, the Corporation argued before the trial judge for a new trial and to set
aside judgment or a reduction in damages. On June 27, 2007, the Judge denied
our motion for new trial and to set aside judgment. We have filed our Notice of
Appeal with the Superior Court Appellate Division. We will be filing a brief
with the Appellate Court by the end of August 2007. The Corporation is represented
by Kirkpatrick & Lockhart. 

2

MATTER NAME: DNA/Teraforce v Vista Controls
and Curtiss-Wright Controls 

On March 10,
2005, Teraforce Technology Corporation (“Teraforce”) and DNA Computing
Solutions, Inc. (“NDA”) filed a Complaint against Vista Controls, Inc. and
Curtiss-Wright Controls, Inc. in the U.S. Bankruptcy Court for the Northern
District of Texas. Teraforce is the debtor in a liquidating Chapter 11
bankruptcy proceeding. 

The Complaint
asserts that DNA and Vista entered into three agreements (License, Technology
Transfer and Support, and Distribution Agreements) to allow the
companies to jointly produce and market “ruggedized” embedded computing
platforms. Under the agreements, DNA would provide the technology to build the
computing platforms and Vista would provide the technology to ruggedize the
computing platforms. DNA granted Vista an irrevocable, fully paid-up, worldwide
perpetual license in the Licensed Technology and Vista granted DNA a
non-exclusive sublicense to distribute Combined Products (as defined in the
Agreements) that were to be developed (which included a finalized form of the
ruggedized VQG4 and the Eagle I). The parties further agreed to market,
advertise, and sell the Combined Products and share revenues generated from the
sale of the Combined Products. Vista agreed to pay 53.5 million for the
technology, to be paid upon receipt of certain staged deliverables as set out
in the Agreements. 

The case is
currently in discovery, which is likely to continue through Q4 2007. Curtiss-Wright
and Vista have answered interrogatories and produced a large number of
documents responsive to requests for production. DNA/Terra Force has done the
same, and it has taken the depositions of David Dietz, Darwin Beckel, Doug
Patterson and Lance Martin. Each party will schedule depositions throughout Q3
and Q4. Non-binding mediation is scheduled for August 9, 2007. 

Outside
counsel, Mark Wilson of Moore & Van Allen (previously with Alston &
Bird), continues to believe that Vista and Curtiss-Wright have valid responses
to the allegations and defenses to causes of action, and that we also have
viable counterclaims in the matter. At this time, counsel does not believe that
liability is probable. Finally, because it is very early in the case and the
plaintiff has not set forth a sum certain in its claim for damages, it is not
possible to determine a range of liability at this time. 

3

MATTER NAME: CWFC (Deltavalve) v. Z&J
GmbH, et al 

Summary of Proceedings to Date: In April 2006,
Curtiss-Wright Flow Control Corporation commenced suit in the U.S.D.C. for the
Central District of California against Z&J Technologies GmbH and Zimmermann
& Jansen, Inc. (“Z&J”), alleging that Z&J infringed U.S. Patent No.
6, 565,714 (“the ‘714 Patent”) and U.S. Patent No. 6,694,727 (“the “727
Patent”), both for an invention titled “Coke Drum Bottom De-Heading System”
(both owned by CWFC). CWFC is represented by Crowell & Moring. The suit
alleges that Z&J (a German parent corporation with a U.S.-based subsidiary)
sold and installed in the United States a competing valve that infringed the
CWFC patents. Both parent and subsidiary filed answers to the complaint
containing general denials, but asserting no counterclaims. On June 4, 2007,
CWFC voluntarily dismissed its infringement claim as to the ‘727 Patent, which
currently is being reexamined by the U.S. Patent Office at CWFC’s request.
Z&J filed a motion for summary judgment of noninfringement as to the ‘714
Patent on June 4, 2007. After the motion was fully briefed, the Court issued an
order indicating that it intended to rule on the papers, without oral argument.
The parties are presently completing fact and expert depositions, and they are
beginning to exchange pretrial submissions. Trial is scheduled to begin August
28, 2007. 

In addition to
a permanent injunction preventing Z&J from infringing the ‘714 Patent,
Curtiss-Wright will seek recovery of damages equal to the greater of a
reasonable royalty or its lost profits in connection with Z&J’s sale of its
infringing product. 

During Q4 of
2006 and Q1 of 2007, the parties engaged in settlement discussions whereby
Curtiss-Wright would extend a limited license to Z&J for the infringing
technology, in exchange for a royalty. At present, these discussions have
stalled. The Court’s pretrial procedures call for a mandatory settlement
conference to be conducted on July 23, 2007. No settlement was reached. 

4

MATTER NAME: CWEMC-EMD V. U.S.

Summary of Proceedings to Date: In June, 2005,
Curtiss-Wright Electro-Mechanical Corporation (“EMD”) filed suit against the
United States under Sections 107 and 113 of the Comprehensive Environmental
Response, Compensation and Liability Act (“CERCLA”) in the U.S.D.C. for the
Western District of Pennsylvania. EMD is represented by the law firm Babst Calland
of Pittsburgh. EMD seeks recovery of expenses associated with the remediation
of hazardous wastes from its facility, necessitated by EMD’s performance under
various government contracts. Although costs are on-going, and extent of
potential recovery is not clear, EMD believes its remediation expenses could
exceed $5 million. 

The United
States moved to join CBS (predecessor in interest to WGS) as a 3rd party
defendant, which motion EMD had opposed. The court granted the US’s motion, and
EMD agreed to assume the defense of CBS pursuant to the chain of indemnity
arising from the 2002 acquisition of EMD. The US then propounded discovery to
CBS, and EMD has responded to that discovery and gathered and produced
documents on behalf of CBS. 

In Q2, the
parties agreed to enter into a 90-day stay of the litigation in order to pursue
settlement. EMD agreed to gather and provide additional documentation which was
designed to organize and clarify EMD remediation information which had already
been provided. We are still engaged in this process. 

MATTER NAME: CWFC – Asbestos Litigation NY-NJ

Summary of Proceedings to Date: 

A. New
Jersey. Currently, CWFC is a defendant in 9 pending cases in New Jersey of
which none are currently scheduled for trial. 

B. New York.
Currently, CWFC is a defendant in 55 cases – an increase of 8 since the last
quarter. This increase is due to new filings by the new plaintiffs firm of
Belluck & Fox LLP, which firm appears to be naming CWFC as a matter of
course to its new or amended cases. McGivney Kluger has a “good working
relationship” with Mr. Belluck and is working diligently on securing
dismissals. A review of the McGivney Kluger status reports indicates nothing
urgent or imminent in the 55 cases. Attached are the 2Q 2007 status reports prepared
by McGivney Kluger. 

Of the new
cases received in 2007, most of them identify the relevant defendants as
“Curtiss-Wright as successor in interest to Farris Engineering and Sprague
Products.” Liberty Mutual has reported to Curtiss-Wright that it does not
consider these matters to be covered by the relevant Liberty insurance
policies; hence, CW is currently uninsured for these matters. 

5

MATTER NAME: CWFC – Asbestos Litigation
Mississippi 

Summary of Proceedings to Date: Curtiss-Wright
Flow Control Corporation is a defendant in approximately 14 asbestos lawsuits
pending in Mississippi and the number of plaintiffs in those cases is 858. This
represents a reduction of 2 cases and 19 plaintiffs from the last quarter. CWFC
has not been found liable in any of the lawsuits nor has it paid any money in
settlement. CWFC has engaged in very limited discovery to date. CWFC’s primary
insurance carrier, Liberty Mutual, has assigned local counsel: Page Mannino
Peresich & McDermott in Mississippi. 

MATTER NAME: Aviation Asbestos Matters 

Summary of Proceedings to Date: CW is named in
a number of complaints for asbestos personal injury claims in connection with
former aviation operations. CW has yet to be found liable in any judgments or
to make any settlements for material amounts. Legal fees (not covered by
insurance) are currently expensed. Mendes & Mount is appointed counsel for
CW for claims arising under aviation policies written by CW’s aviation
insurers, the Aircraft Builders Council. All fees and indemnity (if any) are
generally covered 100% though there have been some relatively small shortfall
payments (under the insurance policies) required of CW. 

MATTER NAME: Apcon vs. Curtiss Wright
Corporation 

Summary of Proceedings to Date: 

On January 17,
2007, Apcon, Inc. filed a complaint for patent infringement in the
U.S. District Court for the Central District of California, alleging
infringement of U.S. Patent No. 6,243,510 (“the ‘510 patent”) by Curtiss-Wright
Corporation and MRV Communications, Inc. Damages are not specified. Apcon
alleges that various Curtiss-Wright products (switches manufactured by Systran
Corporation, Curtiss-Wright’s Dayton, Ohio business unit) infringe the ‘510
patent. Apcon separately alleges infringement of the ‘510 patent by MRV as a result
of MRV’s sales of its own switch products. There is no relationship between MRV
and Curtiss-Wright/Systran, nor any relationship between their respective
alleged infringement of the ‘510 patent. 

On February
20, 2007 Mark Supko (Crowell & Moring) answered the complaint on behalf of
Curtiss-Wright by denying the infringement allegations, asserting
noninfringement, invalidity and unenforceability defenses, asserting
counterclaims for declaratory relief as to Apcon’s patent, and asserting a
counterclaim for infringement of Systran’s U.S. Patent No, 5,982,634 (“the ‘634
patent”). Apcon amended its original complaint to add Systran as a defendant,
and subsequently denied the allegations underlying the counterclaims. 

6

As to the
merits of Apcon’s infringement allegations, counsel presently believes that to
the extent any claim of the ‘510 patent properly can be construed to cover the
accused Systran switches, such claim should be found invalid in view of the
prior art, principally because a version of the accused switches was on sale in
the United States more than one year prior to the earliest priority date for
Apcon’s patent. With respect to Apcon’s infringement claim against
Curtiss-Wright/Systran, counsel has not concluded that liability is probable. 

costs, efforts
a re being made to explore settlement with Apcon in the form of a mutual
dismissal (with prejudice) of the parties’ respective claims and counterclaims,
with Apcon making a lump sum payment to Systran to cover a substantial portion
of Systran’s litigation costs. 

The Court has
entered a scheduling order under which discovery began in April 2007, and will
continue until March 26, 2008. The parties are presently engaged in written
discovery. Barring settlement, claim construction would begin in August 2007,
with an ultimate trial in June 2008. 

7

Schedule 5.09 to the

Credit Agreement 

STATUS REPORT 

ENVIRONMENTAL CLAIMS AGAINST

CURTISS-WRIGHT CORPORATION 

AND ITS SUBSIDIARIES

Matter Name: Safety Light Site

Curtiss-Wright
received an EPA 104(e) notice for this Superfund site in November 2005. Curtiss-Wright
responded in December 2005. EPA provided various ledgers that listed
Curtiss-Wright as a purchaser of radioactive materials from Safety Light
Corporation during the 1950s and 60s. However, none of the ledgers evidence
that Curtiss-Wright shipped any waste to the site. 

Matter Name: Sharkey Farms Landfill 

Curtiss-Wright
signed a consent decree in 1994. According to common counsel, Kirkpatrick &
Lockhart Preston Gates Ellis LLP, all remediation and construction has been
completed and only operations and maintenance obligations remain. The project
manager has estimated that the aggregate long-term operations and maintenance
obligations will be in the range of $2.2M to $2.5M. Curtiss-Wright’s current
allocation is 7.45%. Curtiss-Wright’s percentage allocation will change only if
other members of the PRP group become bankrupt and their liability expunged by
the bankruptcy. The site’s project engineers have made a request to EPA to
reduce frequency of monitoring which would reduce operations and maintenance.
In February 2007, Curtiss-Wright paid its share of operations and maintenance
costs in the amount of $9,316.63. On June 27, 2007, the NJDEP and the
Administrator of the New Jersey Spill Compensation Fund filed a complaint under
the New Jersey Spill Compensation and Liability Act in the Superior Court of
New Jersey – Morris County, against a limited subset of the parties who
executed the 1994 consent decree, including Curtiss-Wright, seeking
compensation for damage to or loss of ground water resources as a result of the
discharge of hazardous substances from the landfill into the ground water.
Based on discussions with the State’s attorney, the amount of the claim is
approximately $1 Million. The PRP group’s position is that the ground water has
not been negatively impacted by the landfill. The PRP group plans to offer to
settle the matter for a deminimis amount. 

Matter Name: Wallington, New Jersey 

Curtiss-Wright
does not maintain a reserve of this matter at this time. Currently,
Curtiss-Wright has tested the Main Avenue Well in Wallington Borough to
determine whether the plume from our Wood-Ridge New Jersey site contaminated
the Borough wells. Complete priority pollutant analyses showed the presence of
low levels of chlorinated hydrocarbons. The results did not identify compounds
which, by their presence, would provide an argument that the Wood-Ridge site
was not

1

their source.
Conversely, these are the typical groundwater contaminants and, as such,
another source still cannot be ruled out. These data were provided to NJDEP in
draft. We await a response. 

Matter Name: Wood-Ridge, New Jersey 

Currently,
Curtiss-Wright has concluded all known soil remediation at the 147 acre site.
Curtiss-Wright continues to perform groundwater remediation through its established
Pump & Treat system and Soil Vapor Extraction System. We are still in the
process of delineating the full extent of the plume; however our latest
consultant report indicates that we have complete hydraulic control of the site
and continue to draw contaminants (ours and others) back to the system. We arc
currently in the process or evaluating and projecting the length of time the
pump and treat will need to continue; however since Curtiss-Wright continues to
produce free product from the pump & treat system is still a very
speculative process. We replaced the operator of the Plant which reduced the
oversight and manpower hours used for the plant. However, since the plant
continues to remove free product from the ground water, our expected term of operation
may continue for a longer duration than originally anticipated. At this point,
there is insufficient information to conclude that the duration of operation
will significantly change. Recent correspondence from NJ DE.P identifies the
need to fully delineate the groundwater plume both horizontally and vertically.
We continue to negotiate with NJDEP since complete plume delineation will
require many new groundwater monitoring wells and associated quarterly
sampling. NJDEP has also raised a concern regarding vapor intrusion which would
result in the sampling of indoor air at numerous residential and commercial
properties. 

Matter Name: Air Force Plant 85 

In February
2006, Curtiss-Wright was notified that it was a PRP for this Columbus, Ohio
Superfund site. Initial review of documents and other information related to
the site indicates that Curtiss-Wright may have operated the plant during the
1940’s as an aircraft manufacturing facility. Boeing, its predecessors and
affiliates apparently operated the site from 1950 through 1994. In June 2007,
Curtiss-Wright, Boeing and McDonnell Douglas executed a third tolling agreement
with the United States (through the Department of Justice) to toll the statute
of limitations relating to the site until January 31, 2008. The DOJ continues
to evaluate which aspects of the remediation remain within the statute of
limitations and has identified sites 4, 5, 10 and (as of February 2007) a
groundwater contamination (plume) outside of building 10. Curtiss-Wright
outsourced a record search for contracts possibly containing indemnities in
favor of Curtiss-Wright. The search located leases underlying Curtiss-Wright’s
occupation and operation of the government-owned plant, as well as production
contracts under which Curtiss-Wright manufactured aircraft for the Navy. The
production contracts appear to contain indemnities in favor of Curtiss-Wright
that may cover some or all of any government claim against Curtiss-Wright.
Documentation from the Government indicates that the plume outside building 10
is the result of underground storage tanks put in place after Curtiss-Wright
ceased operation at the plant. Accordingly, Curtiss-Wright would not appear to
have any liability for clean-up costs associated with the plume. In June of
2007, the Government identified 51,043,448 as the total cost to date of
remediating sites 4, 5, and 10, and demanded reimbursement of that amount from
Boeing- and Curtiss-Wright while offering to settle 

2

for $850,000.
The Government’s settlement offer did riot include the groundwater
contamination (plume) outside of building 10. 

Although the
Air Force does appear to have undertaken some study and remediation at the
site, it is not yet possible to determine Curtiss-Wright’s obligation or
liability for past or future costs. 

Matter Name: Berry’s Creek Study Area 

In March 2006,
Curtiss-Wright was notified that it was a PRP for this Bergen County, New
Jersey Superfund site. The U.S. EPA has asked Curtiss-Wright by general notice
letter to cooperate in paying for a study of the site estimated to cost
approximately $18M excluding EPA oversight costs. According to the EPA,
Curtiss-Wright received the notice letter because it was a defendant and de
minimis settler in the Velsicol case brought against Curtiss-Wright and other
defendants and settled by Curtiss-Wright in 1998 for approximately 525K.
Evidence in the case showed that in the past Curtiss-Wright sent less than 1000
pounds of mercury-containing materials to Velsicol for cleaning and return to
Curtiss-Wright. In 2002, Curtiss-Wright received a 104(e) information request
related to the site. 

In May 2006,
Curtiss-Wright responded to the EPA that it was willing to cooperate so long as
its obligations are de minimis consistent with the 1998 settlement. In December
2006, the PRP’s met informally and elected to formally establish a PRP Group,
hire common legal counsel and hire a technical consultant. The PRP’s agreed the
opt-in amount per PRP to join the Group would be $5,000 for those PRP’s
designated “A” by the EPA and $1,500 for those PRP’s designated “B” and “C” by
the EPA. (Curtiss-Wright having a “B” designation). Further, in December 2006,
EPA circulated a draft Consent Order to the PRP’s concerning RI/FS. At this
time, Curtiss-Wright has elected not to formally join the PRP Group and not to
enter into the Consent Order. However, certain of the other PRP’s are executing
the Consent Order. 

At this time,
response costs are currently estimated at $18 million. As a non-group member,
Curtiss-Wright will likely he named in a contribution litigation and face joint
and several liability for those costs, which were specifically carved out of
the Ventron/Velsicol De Minimis Settlement Agreement. However, such litigation
is not imminent. 

Matter Name: Caldwell Trucking Superfund Site

In 1992, U.S.
EPA notified CURTISS-WRIGHT that it was a PRP for this Superfund site. In 1993,
CURTISS-WRIGHT, additional PRP’s and the EPA executed a consent decree
providing for remediation of the site. The group paid approximately $3.6M to be
released from past costs, future oversight costs and NRD’s. Soil remediation is
substantially completed. The PRP group has been negotiating with the EPA the
method of conducting the groundwater remediation. The PRP group proposed a
bioremediation remedy at a January 2004 estimated cost of approximately $17.5M
(calculated using a discount rate of 4%). The EPA rejected that proposal and
countered that the

3

group should
implement a pump and treat recirculation remedy at a January 2004 estimated
cost of approximately $41.5M (calculated using a discount rate of 4%). Counsel
to the group has advised that the EPA expects to make a decision on the remedy
for the site within the next two to three months, and that based on negotiation
and the collection of confirmatory sampling date, EPA may choose the
bioremediation remedy proposed by the PRP group as well as a limited pump and
treat recirculation remedy. Along with outstanding issues on remedy selection,
the PRP group also has begun preliminary work to address vapor intrusion issues
though such work is not expected to involve material costs to the group at this
time. However, EPA is requiring that the PRP group test all residences and
commercial buildings outlined in the area set by the EPA, including testing two
locations (Learning Safari Day Care Center and West Essex High School) outside
of the geographic area, which will increase the costs to the group. In December
2006, EPA informed the PRP group that it decided to self-perform the vapor
intrusion program. The PRP group responded to the EPA in January 2007
indicating its willingness to commit with the EPA’s expanded geographic scope
only if the PRP group was allowed to perform the testing itself, otherwise the
PRP group would request dispute resolution. In January 2007, the EPA agreed to
allow the Trust to self-perform the vapor intrusion program. This program
agreed to allow the Trust to self-perform the vapor intrusion program. This
program has commenced. 

In August
2004, site managers de maximus estimated the cost range of the combination
remedy to be approximately $20.4M to $24M (calculated using a discount rate of
4%). The PRP group has been advised by de maximus that until the final remedy
is agreed upon by the EPA, the group will incur additional (incremental)
testing, sampling and related operated operating costs on an annual basis. Some
of these incremental costs that are capital investments are expected to be
incorporated into the final remedy and have in fact reduced the estimate of the
remaining work for the combination remedy. 

In July 2007,
de maximus advised that its estimated costs remaining for the combination
remedy are $13,955M (recurring O & M costs discounted for 30 years at 4%)
net of amounts in the trust account. In early 2005, the group obtained
approximately $5.2M in proceeds from an insurance settlement. During the fourth
quarter of 2005, the Mark IV (Pullman) PRP paid the group approximately $1.3M
(net of attorney’s fees) and was ordered by the court to pay an 8.05%
allocation of future costs. In June 2006, Mark IV made the final settlement
payment to the group of approximately $0.760M (net of attorney’s fees).
Approximately $0.760M (net of attorney’s fees). Approximately $3.44M remaining
from this settlement was in the trust account as of quarter end. 

Curtiss-Wright’s
current allocation is 31.5%. A group PRP, Saltire, filed bankruptcy, which will
cause the remaining group members to pick up its allocation. The reallocation
would have increased Curtiss-Wright’s allocation percentage to 41% but this
increase is offset in part by the inclusion in the group of Mark IV. Counsel
advises that after taking Saltire’s share and Mark IV’s participation into
account Curtiss-Wright’s allocation is expected to be 37.2%. 

4

Matter Name: Chemsol Superfund Site 

Curtiss-Wright
was notified in and has been participating in a PRP group since the early 90’s.
Curtiss-Wright entered into a consent decree respecting remediation in 2000.
Soil remediation is completed; groundwater remediation is in process. Certain elements
of the on-Site groundwater remedy remain subject to regulatory approval.
Curtiss-Wright’s current allocation is 1.2% but is expected to be reduced to
approximately 1.136% pending anticipated but not yet concluded, settlements
with/joinder of additional PRP group members. 

The trust will
be required to conduct an investigation of offsite groundwater contamination
and awaits EPA’s approval of its RT/FS Workplan. The current trust fund balance
is approximately $537.000. Preliminary on-Site groundwater investigation
results suggest that there should be no significant off-Site groundwater
remediation required. However, it should be noted that the presence of a large
residential apartment complex adjacent to the Site on its northern boundary may
raise some issues. 

Estimates
provided by project manager de maximis indicate that a reasonable estimate of
the cost to completion of the project is $11.7M (discounted 30 years at 4%) net
of amounts in the trust account, which amount includes the estimated costs for
the study. 

De Minimis
Settlements are currently being made
available only to those new settling parties with allocated shares of liability
below 1%. These De Minimis settlements will be on the same terms as those
entered into in 1999/2000. The covenants not to sue will exclude claims for
response costs for OU-3 exceeding $40M, toxic tort claims, and claims at other
sites arising from transshipment from the Chemsol Site. No cash out settlements
will he made available to parties with allocated shares of liability greater
than 1%, such as Curtiss-Wright, or to those parties with shares below 1% who
previously settled as Settling Work Defendants. 

Matter Name: Clarkstown Landfill, Rockland
County, New York 

MIC was
notified of this matter in 2002. NYDEC has remediated the site at $25M and now
seeks cost recovery. In 2003, MIC joined the PRP group and approved
investigations intended to join additional PRP’s in preparation to meet
the demands of NYDEC that it receive a settlement proposal. In January 2005,
the group voted to conduct an interim allocation. An allocation questionnaire
was circulated during the first quarter of 2005. John Sandstedt and counsel
coordinated data gathering, interviews and responses for the questionnaire and
submitted the answers in June 2005. In January 2006, the allocator presented
MIC with a proposed interim allocation of approximately 0.22%. Each cooperating
party’s allocation includes a $ IOK base payment. In February 2006, the
allocator presented an offer to the state of an aggregate settlement
payment by the PRP group in the sum of $710,000. Based on this offer, MIC’s
share would have been approximately $11.5 K. However, the offer was rejected
by the State. Currently the PRP group members, with assistance from the State,
arc engaged in the process of bringing more parties into the PRP group. Recently,
the Town of Orangeburg and Conrail have agreed to join the group.
It is hoped that additional parties would provide the PRP group with the
additional funds necessary to achieve a settlement with the State. In addition,
a separate Municipal PRP Group has formed in the hopes of
achieving a settlement with the government and/or the PRP group.

5

Matter Name: Fairfield, New Jersey 

The State has
approved our application to continue monitoring the groundwater under the
building. We have initiated the removal of the contaminated fill from the
Historic Fill Area and are approximately 85% complete. We have found a higher
ratio of Hazardous/Non-hazardous material for disposal and have had to excavate
deeper then what was originally anticipated which has resulted in additional
costs. Additional excavation in Area 4 may be necessary to address a sludgy
material, believed associated with the operation of the former wastewater
treatment plant, and to address elevated results on one of the sidewalls is
being planned. This additional excavation is contained in a wetlands area and
we are awaiting a wetlands permit prior to commencing the additional
excavation. We are also considering a cap to the impacted wetlands area as
alternative to additional excavation. A potential source area has been
identified beneath the existing building in the area of a former UST which will
require investigation and possible remediation. We are currently addressing a request
from the NJDEP to perform air sampling at the site. 

Matter Name: Fair Lawn Wellfield Superfund
Site, Fair Lawn, New Jersey 

There is no
outside counsel for this matter and thus it is difficult to confirm its status
definitively. According to our files and Jim Maher’s December 31, 2004 summary:
in 2001, Curtiss-Wright received an information request which was subsequently
answered; the site was apparently the location of a Curtiss-Wright former WWII
manufacturing plant. There is no correspondence in the file for a number of
years. 

Matter Name: Gilbert and Mosely Site 

There is no
outside counsel for this matter and thus it is difficult to confirm its status
definitively. According to our files and Jim Maher’s December 31. 2004 summary:
MIC was not sued directly in the city’s 1998 suit against PRP’s or otherwise
for contribution in this matter: and although contamination has been found in
groundwater samples taken from MIC’s facility, MIC believes it is caused by
downstream flow of contamination from other properties. There is no
correspondence in the file for a number of years. 

Matter Name: Hassan Barrel 

Curtiss-Wright
received an EPA 104(e) notice for this Superfund site in November 2005. MIC,
Fort Wayne, Indiana responded to the EPA in December 2005 that the only record
of any transaction with Hassan Barrel was the purchase of two empty metal drums
in June 2002. 

Matter Name: Little Joseph Landfill 

In 1995, the
State of New York instituted administrative proceedings against MIC and 88
other respondents to require that remediation be performed at the site. MIC is
alleged to have generated a de minimis amount of industrial materials and
liquids to the site. Curtiss-Wright and the other parties executed a consent
order requiring a remedial investigation and feasibility study estimated to
cost $750K. Correspondence from 2002 indicates that the study was completed.
Based on the results of the study, remediation is estimated to require $2.1M.
However, no

6

correspondence
regarding the matter was received from the state or otherwise through year end
2005. In April 2006, MIC received correspondence that the cooperating parties
group, of which MIC is listed as a member, was preparing a settlement offer,
and requested a contribution payment from MIC in the amount of $5.6K. The
correspondence indicated that MIC has been assigned a 0.2448% allocation of the
generator first tier cooperating participants. In March 2007, the PRP’s
received a final Order on Consent and Administrative Settlement from the NYDEC
for the implementation of RD/RA. At the time, the Group had raised
approximately $1.7M towards funding the remediation. Because no recalcitrant
parties had been brought into the Group was responsible to come up with
additional cash to fund the remediation (approx. $400K). Based on MIC’s
allocation, its contribution amount was $1,227.66. MIC executed the Order on
Consent and contributed $1,227.66 toward funding the remedy. The Group has now
raised over $2.1 million, which should completely fund the costs of the remediation.
Once the NYDEC executes the Order on Consent, MIC will have settled its
liability to the NYDEC. 

MATTER Name: Lower Passaic River Site 

Curtiss-Wright
was notified of the matter in 2003 and participated in a PRP group from 2003 to
June 2006. Curtiss-Wright signed a cooperating parties agreement in 2004.
Curtiss-Wright also signed onto an EPA Settlement Agreement which, among other
things, protects Curtiss-Wright against government and contribution actions for
past costs. Pursuant to CERCLA and WRDA, the EPA, Army Corps of Engineers and
New Jersey Office of Maritime Resources are conducting a CERCLA/WRDA combined
study to determine an appropriate remediation and restoration plan For the
URSA. According to governmental agencies, the study should be completed in
2011. Curtiss-Wright agreed with the initial other 30 PRP’s to fund $10M of the
$19M study on a per capita basis. Based on the initial group of 31 PRP’s,
Curtiss-Wright’s share of the study would have been approximately $322K plus
administrative fees. The EPA Settlement Agreement was amended in 2005 to add 12
PRP’s to the group and raised the Settling Parties commitment to fund the
combined study to $10.75 MM. This Amendment, in effect, brought
Curtiss-Wright’s commitment under the EPA Settlement Agreement as amended to
$250K. Approximately $258K has been paid by Curtiss-Wright to date under the
SPA Settlement Agreement. In the fourth quarter of 2005. EPA informed counsel
to the group that the $10M funded by the group for the study will be exhausted
during 2006. 

In December
2005, the NJDEP brought suit against Tierra Solutions (and affiliates), a group
member and the alleged successor to a major manufacturer of dioxin-containing
compounds. It is not yet clear how this suit will impact the group or whether
Curtiss-Wright will be impleaded into the lawsuit. Tierra has predicted that,
if the State prosecutes the lawsuit aggressively, it will add over 1,000
potentially responsible parties to the lawsuit. In this situation, it will be
impossible to assess at the outset — or indeed, until several years into the
litigation — whether Curtiss-Wright would have any liability for any damages.

In June 2006,
Curtiss-Wright terminated its group membership by letter to the group’s liaison

7

counsel. Accordingly,
Curtiss-Wright has no contractual obligation to fund the study further but
might be subject to future litigation concerning the site and lose its past
costs waiver to some extent. The EPA is contemplating issuing an order listing
non-cooperating parties providing PRP group members with the opportunity to
bring suit against those listed for non-cooperation. 

By letter
dated August 3, 2006, the Cooperating Parties Group (“CPG”) stated
unequivocally that they will be filing a contribution litigation against all
parties not joining the group or executing the 2nd Amendment to the Settlement
Agreement with the USEPA. The litigation will seek to have Curtiss-Wright
contribute its share to $300,000 in past costs and at least $10,750,000 in
additional costs (this is the amount pledged by the CPO to the USEPA to date
for the CERCLA portion of the study). While we know from Curtiss-Wright’s prior
group membership, the allocation share currently assigned to Curtiss-Wright is
less than 1%, the CPG is not bound by that allocation in any contribution
litigation. Of course Curtiss-Wright would assert in any such litigation that
it did not cause or contribute to the contamination. To avoid the threat of
contribution litigation in the near future by the CPG, Curtiss-Wright entered
into a Tolling Agreement with the CPG to toll the statute of limitations
relating to the recovery of response costs for the site by the CPG from
Curtiss-Wright and other non-CPG members until June 23, 2008. 

Matter Name: Malta Rocket Fuel Site, Malta,
New York 

Curtiss-Wright
and the 5 PRP’s other than GE and the U.S. executed a settlement agreement
respecting this Superfund site. Curtiss-Wright has a 4.5% allocation. GE and
the U.S. agreed to fund and implement a groundwater pump and treat remedy which
is ongoing. No further funds are required of Curtiss-Wright, however, the
settlement agreement contains re-opened clauses that could result in additional
obligations in the event the site is reopened. According to GE’s project
manager it is unlikely that the site will be reopened. 

Matter Name: Noble Oil Site, Tabernacle, New
Jersey 

The
Curtiss-Wright file for this matter is logged as “destroyed”. According to Jim
Maher’s December 31, 2004 summary: in 2000, Curtiss-Wright received a letter
from the NJ Attorney General’s office contending that NJDEP spent approximately
$1.8M to remediate the site; the basis for the alleged involvement of
Curtiss-Wright was not specified; Curtiss-Wright located three invoices
reflecting the sale of 19,500 gallons of fuel oil to Noble Oil Co. in 1984; the
Porzio, Bromberg firm subsequently contacted Curtiss-Wright to solicit interest
in forming a PRP group but Curtiss-Wright did not join a formal group. 

Matter Name: Operating Industries Superfund
Site 

Curtiss-Wright
was notified of this matter in 2003. MIC is alleged to be a de minimis
contributor (approximately 6,000 gallons) of liquid industrial waste. A de
minimis group has formed but 

8

Curtiss-Wright
has not joined. The USEPA has indicated that it will propose a settlement offer
($3.40 per gallon) to the de minimis parties but the offer has not yet been
received. 

Matter Name: Pfohl Brothers Landfill 

All
remediation has been completed and the landfill closed and capped with
Curtiss-Wright already funding its appropriate share. All toxic tort suits have
been settled and paid. The PRP group is attempting to sell real estate related
to the site and is pursuing cost recovery against 2 remaining PRP’s. These
actions will be revenue generators if successful; however, depending on the
outcome of various pending eases and motions and the time required to liquidate
the real estate, the group may be required to make further contributions if the
group wishes to continue the cost recovery litigation. There is a potential buyer
for a portion of the uncontaminated/remediated perimeter of the site for an
agreed sales price of $800,000 (Curtiss-Wright’s portion of the proceeds of the
sale would be approximately $48,000). In addition, subject to Group approval,
the pending litigation against BFI/Allied Waste was settled for $925,000
(Curtiss-Wright’s share would be approximately $60.000). 

Matter Name: Quehanna Nuclear Reactor
Facility 

Curtiss-Wright
was notified of this matter in 1993 and again in 2002. Curtiss-Wright allegedly
operated the site in the late 50’s. The PADEP claimed $23M has been spent
remediating the site and estimated that the aggregate remediation costs will be
$35M. In 2003, Curtiss-Wright agreed by letter to participate in a voluntary
settlement process, however, Curtiss-Wright has not received any communication
from the DEP since that time regarding the commencement of that process. 

9

Schedule 5.13

to Credit Agreement

Subsidiaries and Other Equity
Investments

- - -

Curtiss-Wright Corporation and
Subsidiaries

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name of Company

	
 

	
 

	
Jurisdiction
of Organization

	
 

	
Equity
Interest

	

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Curtiss-Wright Corporation

	
 

	
Delaware

	
100%

	
 

	
Metal Improvement Company, LLC

	
 

	
Delaware

	
100%

	
 

	
Metal Improvement Recreational Products, Inc.

	
 

	
Delaware

	
100%

	
 

	
Ytstruktur Arboga AB

	
 

	
Sweden

	
100%

	
 

	
Curtiss-Wright Electro-Mechanical Corporation

	
 

	
Delaware

	
100%

	
 

	
Curtiss-Wright Flow Control Corporation

	
 

	
New York

	
100%

	
 

	
Curtiss-Wright Flow Control Company Canada

	
 

	
Nova Scotia, Canada

	
100%

	
 

	
Curtiss-Wright Flow Control Service Corporation

	
 

	
Delaware

	
100%

	
 

	
Curtiss-Wright Flow Control (U.K.) Ltd.

	
 

	
London, England

	
100%

	
 

	
Curtiss-Wright Flow Control Company-Korea

	
 

	
Korea

	
80%

	
 

	
Curtiss-Wright Netherlands CV

	
 

	
Netherlands

	
100%

	
 

	
Curtiss-Wright Netherlands BV

	
 

	
Netherlands

	
100%

	
 

	
Curtiss-Wright Controls, Inc.

	
 

	
Delaware

	
100%

	
 

	
Curtiss-Wright Antriebstechnik, GmbH

	
 

	
Switzerland

	
100%

	
 

	
Curtiss-Wright Controls (UK) Ltd.

	
 

	
UK

	
100%

	
 

	
Curtiss-Wright Aerospace, Ltd.

	
 

	
UK

	
100%

	
 

	
Autronics Corporation

	
 

	
Delaware

	
100%

	
 

	
Dy4, Inc.

	
 

	
Delaware

	
100%

	
 

	
Dy4 Systems, Inc.

	
 

	
Ontario, Canada

	
100%

	
 

	
Dy4 Systems UK Limited

	
 

	
England

	
100%

	
 

	
Indal Technologies, Inc.

	
 

	
Ontario, Canada

	
100%

	
 

	
Novatronics, Inc.

	
 

	
Prince Edward Is.,

	
100%

	
 

	
Peerless Instrument Co., Inc.

	
 

	
New York

	
100%

	
 

	
Penny & Giles Controls Inc.

	
 

	
Rhode Island

	
100%

	
 

	
Penny & Giles Controls, Ltd

	
 

	
England & Wales

	
100%

	
 

	
Penny & Giles Aerospace, Ltd.

	
 

	
England & Wales

	
100%

	
 

	
Penny & Giles GmbH

	
 

	
Germany

	
100%

	
 

	
Pickering Controls, Inc.

	
 

	
Delaware

	
100%

	
 

	
Primagraphics (Holdings) Ltd.

	
 

	
England & Wales

	
100%

	
 

	
Primagraphics Limited

	
 

	
England & Wales

	
100%

	
 

	
Synergy Microsystems, Inc.

	
 

	
California

	
100%

	
 

	
Systran Corporation

	
 

	
Ohio

	
100%

	
 

	
Vista Controls, Inc.

	
 

	
California

	
100%

	
 

	
0716869 BC Ltd.

	
 

	
British Columbia

	
100%

	
 

	
6172652 Canada Inc.

	
 

	
Canada

	
100%

	
 

	
Tapco International Corporation

	
 

	
Delaware

	
100%

	
 

	
Solenoid Valve Ltd

	
 

	
Russia JV

	
50%

	
 

	
Benshaw, Inc.

	
 

	
Pennsylvania

	
100%

	
 

	
Benshaw Industrial Automation, LLC

	
 

	
Pennsylvania

	
100%

	
 

	
Benshaw Canada Controls, Inc.

	
 

	
Ontario, Canada

	
100%

	
 

	
Benshaw Canada Fabricators,
Inc.

	
 

	
Ontario, Canada

	
100%

	
 

	
Benshaw DeMexico

	
 

	
Mexico

	
100%

	
 

Schedule 5.17 to the 

Credit Agreement

Intellectual Property Matters

1.  DNA/Teraforce v Vista Controls and Curtiss-Wright Controls,
See Schedule 5.06 for summary of allegations.

2. Apcon vs. Curtiss Wright Corporation, See Schedule 5.06 for summary of allegations.

1

Schedule 7.01

to the Credit Agreement

Liens on Property Or Assets

Of

Borrower and Its Subsidiaries

See, Attached Lists related to UCC and Judgments:

	
 

	
 

	
Entity

	
Jurisdictions

	
 

	
 

	
Curtiss-Wright Corporation

	
Delaware, New Jersey

	
 

	
 

	
Curtiss-Wright Flow Control Corporation

	
New York, Ohio, Texas, California

	
 

	
 

	
Curtiss-Wright Controls, Inc.

	
Delaware, California, Ohio, North Carolina

	
 

	
 

	
Curtiss-Wright Flow Control Service Corporation

	
Delaware, California, New York

	
 

	
 

	
Metal Improvement Company, LLC

	
Delaware, New Jersey, Ohio

	
 

	
 

	
Curtiss-Wright Electro-Mechanical Corporation

	
Delaware, New Jersey, Pennsylvania 

Schedule 7.03 to the 

Credit Agreement

EXISTING
INDEBTEDNESS

Debt

Revolving Credit Agreement among and between the
Issuers and the Banking Syndicate led by Bank of America, N.A. offers a maximum
of $400 million over five years to the Corporation. The Revolving Credit
Agreement expires July 2009, which will be increased to $425 million and
otherwise amended and extended with an new maturity date being August 2012 with
the schedules attached hereto. 

$200MM in privately place fixed interest rate notes
consisting of $75MM in 5.13% Series A Senior Guaranteed Notes due September 25,
2010, and $125MM in 5.74% Series B Senior Guaranteed Notes due September 25,
2013.

$150MM in privately place fixed interest rate notes
consisting of $150MM in 5.51% Series C Senior Guaranteed Notes due December 1,
2017.

Cleveland County Industrial Revenue Bond,
Curtiss-Wright Controls, Inc., as Borrower, in the amount of $8,400,000.00 with
a maturity date of November 1, 2023.

Bucks County Industrial Revenue Bond, Metal
Improvement Company, Inc. as Borrower, in the amount of $1,000,000.00 with a
maturity date of January 1, 2018.

Letters of Credit

See, Schedule 1.01A

Guarantees

	
 

	
“CW” shall mean Curtiss-Wright Corporation

	
“CWC” shall mean Curtiss-Wright Controls

	
“CWFC” shall mean Curtiss-Wright Flow Control
Corporation

	
“MIC” shall mean Metal Improvement Company

	
“CWAT” Curtiss-Wright Antriebstechnik, Gmbh

	
“PMSI” shall mean a purchase money security interest
evidenced by a filed UCC-1 statement or UCC-3 continuation statement 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Rank

	
 

	
Guarantor

	
 

	
Recipient

	
 

	
Beneficiary

	
 

	
Location

	
 

	
 

	
Amount

	
 

	
Maturity

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
 

	
CW

	
 

	
New Jersey Department

	
 

	
CWC

	
 

	
Fairfield, NJ

	
 

	
 

	
Indefinite

	
 

	
Indefinite

	
 

	
 

	
 

	
 

	
of Environmental Protection

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.

	
 

	
CWC

	
 

	
Schwiezerische

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
 

	
198,056 CHF

	
 

	
6/30/2009

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
3.

	
 

	
CWC

	
 

	
Indra Sistemas, S.A.

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
 

	
2,257,677 CHF

	
 

	
Indefinite

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
4.

	
 

	
CWC

	
 

	
Indra Sistemas, S.A.

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
 

	
6,648,333 CHF

	
 

	
12/31/2013

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
5.

	
 

	
CWC

	
 

	
Indra Sistemas, S.A

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
 

	
153,814 CHF

	
 

	
12/31/2013

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
6.

	
 

	
CWC

	
 

	
Indra Sistemas, S.A

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
 

	
12,913 CHF

	
 

	
12/31/2013

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7.

	
 

	
CWC

	
 

	
Gutmar, S.A.

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
 

	
198,056 CHF

	
 

	
9/30/2013

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
8

	
 

	
CW

	
 

	
The Boeing Company

	
 

	
CWC

	
 

	
Shelby, NC

	
 

	
 

	
Indefinite

	
 

	
Indefinite

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Gastonia, NC

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
9.

	
 

	
CW

	
 

	
G & L Realty

	
 

	
CWC

	
 

	
Irwindale, CA.

	
 

	
$

	
750,000

	
 

	
12/1/2010

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
10.

	
 

	
CW

	
 

	
DEK Portfolio

	
 

	
CWC

	
 

	
Littleton, MA

	
 

	
$

	
250,000

	
 

	
12/31/2009

	
 

	
 

	
 

	
 

	
Limited Partnership

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
11.

	
 

	
CWC

	
 

	
King Abdulla, III

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
$

	
32,000

	
 

	
11/30/2007

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
12.

	
 

	
CWC

	
 

	
King Abdulla, III

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
$

	
60,526

	
 

	
06/30/2008

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
13.

	
 

	
CWC

	
 

	
King Abdulla, III

	
 

	
CWAT

	
 

	
Switzerland

	
 

	
$

	
30,263

	
 

	
05/31/2009

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
14.

	
 

	
CW

	
 

	
Investment Bank of

	
 

	
MIC

	
 

	
Germany

	
 

	
 

	
505,300 EURO 

	
 

	
Indefinite

	
 

	
 

	
 

	
 

	
the Federal Land of

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Brandenburg

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
15.

	
 

	
CW

	
 

	
Valve Systems &

	
 

	
CWFC

	
 

	
Houston, TX

	
 

	
$

	
798,569.46

	
 

	
Indefinite

	
 

	
 

	
 

	
 

	
Controls, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
16.

	
 

	
CW

	
 

	
Commerce Center

	
 

	
CWFSC

	
 

	
Ft. Lauderdale

	
 

	
$

	
90,000

	
 

	
12/31/2009

	
 

	
 

	
 

	
 

	
Development Corp.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
17.

	
 

	
CW

	
 

	
CTEP FZCO

	
 

	
CWFC

	
 

	
Dubai, UAE

	
 

	
 

	
Limited to the

	
 

	
Indefinite

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Value of P.O.

	
 

	
 

SCHEDULE 10.02

ADMINISTRATIVE AGENT’S OFFICE;

CERTAIN ADDRESSES FOR NOTICES

CURTISS-WRIGHT CORPORATION

and DESIGNATED BORROWERS:

	
 

	
Curtiss-Wright Corporation

	
4 Becker Farm Road, 3rd
Floor

	
Roseland, New Jersey 07068

	
Attention: Treasury
Department

	
 

	
Telephone: 973-597-4717

	
Telecopier: 973-597-4799

	
Electronic Mail:
mo’casal@curtisswright.com; kkollins@curtisswright.com

	
Website Address:
www.curtisswright.com

	
 

	
ADMINISTRATIVE
AGENT:

	
 

	
Administrative
Agent’s Office

	
 (for
payments and Requests for Credit Extensions):

	
Bank of America, N.A.

	
100 Federal St

	
Mail Code:MA5-100-08-04 

	
Boston, MA 02110

	
Attention: Kourosh Hessamfar

	
Telephone: (617) 434-5660

	
Telecopier: (617) 341-5700

	
Electronic Mail: kourosh.hessamfar@bankofamerica.com

	
Account No.: 136-618-001-1281

	
Ref: Curtiss-Wright

	
ABA# 026009593

	
 

	
Other
Notices as Administrative Agent:

	
Bank of America, N.A.

	
Agency Management

	
100 Federal St

	
Mail Code:MA5-100-12-12

	
Boston, MA 02110

	
Attention: Todd Mac Neill 

	
Telephone: (617) 434-6842

	
Telecopier: (617) 790-1361

	
Electronic Mail: todd.g.macneill@bankofamerica.com

1

	
 

	
L/C
ISSUER:

	
 

	
Bank of America, N.A.

	
Trade Operations

	
1 Fleet Way

	
Mail Code:PA6-580-02-30

	
Scranton, PA 18507

	
Attention: Al Malave

	
Telephone: (570) 330-4212

	
Telecopier: (570) 330-4186

	
Electronic Mail: alfonso.malave@bankofamerica.com

	
 

	
SWING
LINE LENDER:

	
 

	
Bank of America, N.A.

	
100 Federal St

	
Mail Code:MA5-100-08-04 

	
Boston, MA 02110

	
Attention: Kourosh Hessamfar

	
Telephone: (617) 434-5660

	
Telecopier: (617) 341-5700

	
Electronic Mail: kourosh.hessamfar@bankofamerica.com

	
Account No.: 136-618-001-1281

	
Ref: Curtiss-Wright

	
ABA# 026009593

2TWO-YEAR CHANGE IN CONTROL AGREEMENT

     This Change in Control  Agreement (the "Agreement") is made effective as of
the 18th day of March, 2010 (the "Effective Date"), by and between OBA Bank (the
"Bank"),  a federally  chartered  stock  savings bank that is  headquartered  in
Germantown, Maryland, and David A. Miller ("Executive").

                                   WITNESSETH

     WHEREAS,  the Bank is a wholly owned subsidiary of OBA Financial  Services,
Inc.,  a  corporation  organized  under the laws of the State of  Maryland  (the
"Company");

     WHEREAS, Executive is currently employed as Senior Vice President and Chief
Financial Officer of the Bank;

     WHEREAS,  the  Company  and the Bank  desire to be ensured  of  Executive's
continued active participation in the business of the Bank;

     WHEREAS,  in order to induce  Executive to remain in the employ of the Bank
and in  consideration  of  Executive's  agreeing  to remain in the employ of the
Bank,  the parties  desire to specify the severance  benefits which shall be due
Executive in the event that his  employment  with the Bank is  terminated  under
specified circumstances.

     NOW THEREFORE,  in consideration of the mutual agreements herein contained,
and upon the other terms and conditions hereinafter provided, the parties hereby
agree as follows:

1.  TERM OF AGREEMENT

     (a) The term of this  Agreement  shall begin as of the  Effective  Date and
shall continue for twenty-four (24) full calendar months hereafter.

     (b) Commencing on January 6, 2011 (the  "Anniversary  Date") and continuing
on each  Anniversary  Date  thereafter,  the  term of this  Agreement  shall  be
extended  for  an  additional  year  such  that  the  remaining  term  shall  be
twenty-four  (24)  months  ("Renewal  Term"),  until  such  time as the board of
directors of the Bank (the  "Board") or Executive  elects not to extend the term
of the  Agreement  by giving  written  notice to the other party at least ninety
(90) days prior to the last day of the Renewal  Term,  in which case the term of
this Agreement  shall be fixed and shall terminate at the end of the twenty-four
(24) months following such Anniversary Date. Prior to each Anniversary Date, the
disinterested  members of the Board  will  conduct a  comprehensive  performance
evaluation and review of Executive for purposes of determining whether to extend
this  Agreement,  and the results thereof will be included in the minutes of the
Board's meeting.

<PAGE>

2.  DEFINITIONS

     (a)  Change in  Control.  For  purposes  of this  Agreement,  a "Change  in
Control" means any of the following events:

          (1)  Merger:  The Company or the Bank merges into or consolidates with
               another  entity,  or merges another bank or corporation  into the
               Bank or the Company, and as a result, less than a majority of the
               combined  voting power of the resulting  corporation  immediately
               after the merger or  consolidation  is held by  persons  who were
               stockholders  of the Company or the Bank  immediately  before the
               merger or consolidation;

          (2)  Acquisition of Significant Share Ownership: There is filed, or is
               required to be filed, a report on Schedule 13D or another form or
               schedule  (other than Schedule 13G) required under Sections 13(d)
               or 14(d) of the Securities  Exchange Act of 1934, as amended,  if
               the schedule  discloses  that the filing person or persons acting
               in concert has or have become the beneficial owner of 25% or more
               of a class of the  Company's  or the  Bank's  voting  securities;
               provided,  however, this clause (b) shall not apply to beneficial
               ownership of the  Company's or the Bank's voting shares held in a
               fiduciary  capacity by an entity of which the Company directly or
               indirectly  beneficially  owns  50% or  more  of its  outstanding
               voting securities;

          (3)  Change in Board Composition: During any period of two consecutive
               years,  individuals  who  constitute  the Company's or the Bank's
               Board of Directors at the beginning of the two-year  period cease
               for any reason to constitute at least a majority of the Company's
               or the Bank's Board of  Directors;  provided,  however,  that for
               purposes of this clause (c),  each  director who is first elected
               by the board (or first nominated by the board for election by the
               stockholders  or  corporators)  by a vote of at least  two-thirds
               (2/3) of the directors who were directors at the beginning of the
               two-year  period  shall be deemed to have also been a director at
               the beginning of such period; or

          (4)  Sale of Assets:  The  Company or the Bank sells to a third  party
               all or substantially all of its assets.

     (b) Good Reason shall mean a termination by Executive following a Change in
Control if, without  Executive's  express written consent,  any of the following
occurs:

          (1)  failure to elect or reelect or to appoint or reappoint  Executive
               as Senior Vice President and Chief Financial Officer;

          (2)  a material change in Executive's position to become one of lesser
               responsibility,  importance or scope then the position  Executive
               held immediately prior to the Change in Control;

                                       2
<PAGE>

          (3)  a liquidation or dissolution of the Bank other than  liquidations
               or dissolutions  that are caused by  reorganizations  that do not
               affect the status of Executive;

          (4)  a material reduction in Executive's base salary and benefits; or

          (5)  a relocation of Executive's principal place of employment by more
               than 30 miles from its location as of the date of this Agreement;

          provided,  however,  that prior to any  termination  of employment for
          Good Reason,  Executive must first provide  written notice to the Bank
          (or its  successor)  within  ninety  (90) days  following  the initial
          existence  of  the   condition,   describing  the  existence  of  such
          condition,  and the Bank shall thereafter have the right to remedy the
          condition  within  thirty (30) days of the date the Bank  received the
          written  notice from  Executive.  If the Bank  remedies the  condition
          within such thirty (30) day cure period,  then no Good Reason shall be
          deemed to exist with respect to such  condition.  If the Bank does not
          remedy the  condition  within such thirty (30) day cure  period,  then
          Executive may deliver a Notice of  Termination  for Good Reason at any
          time within  sixty (60) days  following  the  expiration  of such cure
          period.

     (c)  Termination for Cause shall mean  termination  because of, in the good
faith determination of the Board, Executive's:

          (1)  personal dishonesty;

          (2)  incompetence;

          (3)  willful misconduct;

          (4)  breach of fiduciary duty involving personal profit;

          (5)  material breach of the Bank's Code of Ethics;

          (6)  material  violation  of  the   Sarbanes-Oxley   requirements  for
               officers of public  companies that in the  reasonable  opinion of
               the  Board  will  likely  cause  substantial  financial  harm  or
               substantial injury to the reputation of the Bank;

          (7)  intentional failure to perform stated duties under this Agreement
               after written notice thereof from the Board;

          (8)  willful  violation  of any law,  rule or  regulation  (other than
               traffic violations or similar offenses) that reflect adversely on
               the reputation of the Bank, any felony conviction,  any violation
               of law  involving  moral  turpitude,  or any violation of a final
               cease-and-desist order; or

          (9)  material breach by Executive of any provision of this Agreement.

                                       3
<PAGE>

     A determination of whether  Executive's  employment shall be terminated for
Cause shall be made at a meeting of the Board called and held for such  purpose,
at which the Board  makes a finding  that in good faith  opinion of the Board an
event set forth in clauses (1),  (2), (3), (4), (5), (6), (7), (8), or (9) above
has occurred and specifying the particulars thereof in detail.

     (d)  For  purposes  of  this  Agreement,  any  termination  of  Executive's
employment  shall be  construed  to  require  a  "Separation  from  Service"  in
accordance  with Code Section 409A and the regulations  promulgated  thereunder,
such that the Bank and Executive  reasonably  anticipate  that the level of bona
fide services  Executive  would perform after  termination  of employment  would
permanently  decrease to a level that is less than 20% of the  average  level of
bona  fide  services  performed  (whether  as  an  employee  or  an  independent
contractor) over the immediately preceding thirty-six (36)-month period.

3.  BENEFITS UPON TERMINATION

     (a) If Executive's employment by the Bank shall be terminated subsequent to
a Change in Control  and during the term of this  Agreement  by (i) the Bank for
other than Cause, or (ii) Executive for Good Reason, then the Bank shall:

          (1)  pay Executive,  or in the event of Executive's  subsequent death,
               Executive's   beneficiary   or   beneficiaries   or  estate,   as
               applicable, a cash severance amount equal to:

                    (i) two (2) times  Executive's  base  salary in effect as of
               the Date of Termination,

                    (ii) the highest rate of bonus earned by Executive  from the
               Bank in any one of the three calendar years immediately preceding
               the year in which the termination occurs, and

                    (iii)  payable by lump sum within ten (10)  business days of
               the Date of Termination.

          (2)  cause  to be  continued  at no  cost  to  Executive,  non-taxable
               medical  and  dental  coverage  substantially  identical  to  the
               coverage   maintained  by  the  Bank  for   Executive   prior  to
               Executive's termination for twenty-four (24) months.

     (b) In no event  shall the  payments  or benefits to be made or provided to
Executive  under  Section 3 hereof (the  "Termination  Benefits")  constitute an
"excess  parachute  payment"  under  Section  280G of the Code or any  successor
thereto,  and in order to avoid  such a  result,  Termination  Benefits  will be
reduced,  if necessary,  to an amount,  the value of which is one dollar ($1.00)
less than an  amount  equal to three (3) times  Executive's  "base  amount,"  as
determined  in  accordance  with Section 280G of the Code.  The reduction of the
Termination  Benefits  provided  by this  Section 3 shall be applied to the cash
severance benefits otherwise payable under Section 3(a) hereof.

                                       4
<PAGE>

4.  NOTICE OF TERMINATION

     Any purported termination by the Bank or by Executive in connection with or
following a Change in Control shall be  communicated by Notice of Termination to
the  other  party  hereto.  For  purposes  of  this  Agreement,   a  "Notice  of
Termination"  shall  mean a written  notice  which  shall  indicate  the Date of
Termination  and,  in the  event  of  termination  by  Executive,  the  specific
termination  provision  in this  Agreement  relied  upon and  shall set forth in
reasonable  detail  the facts and  circumstances  claimed to provide a basis for
termination of Executive's employment under the provision so indicated. "Date of
Termination" shall mean the date specified in the Notice of Termination  (which,
in the case of a termination for Cause,  shall be immediate).  In no event shall
the Date of  Termination  exceed  thirty  (30) days from the date the  Notice of
Termination is given.

5.  SOURCE OF PAYMENTS

     All  payments  provided in this  Agreement  shall be timely paid in cash or
check from the general funds of the Bank.

6.  REQUIRED REGULATORY PROVISIONS

     (a) If Executive is suspended  from office  and/or  temporarily  prohibited
from participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) (12 USC  ss.1818(e)(3)) or 8(g)(1) (12 USC ss.1818(g)(1)) of the
Federal  Deposit  Insurance  Act  ("FDIA"),  the Bank's  obligations  under this
Agreement  shall  be  suspended  as of the date of  service,  unless  stayed  by
appropriate  proceedings.  If the charges in the notice are dismissed,  the Bank
may in its discretion (i) pay Executive all or part of the compensation withheld
while its contract obligations were suspended and (ii) reinstate (in whole or in
part) any of its obligations which were suspended.

     (b)  If   Executive  is  removed   and/or   permanently   prohibited   from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Section 8(e)(4) (12 U.S.C.  ss.1818(e)(4)) or 8(g)(1) (12 U.S.C.  ss.1818(g)(1))
of FDIA, all  obligations of the Bank under this Agreement shall terminate as of
the effective date of the order,  but vested rights of the  contracting  parties
shall not be affected.

     (c) If the Bank is in default as  defined  in  Section  3(x)(1)  (12 U.S.C.
ss.1813(x)(1))  of FDIA, all obligations under this Agreement shall terminate as
of the date of default, but this paragraph shall not affect any vested rights of
the contracting parties.

     (d) All obligations under this Agreement shall be terminated, except to the
extent  determined  that  continuation  of this  Agreement is necessary  for the
continued  operation  of the  Bank,  (i) by  the  Director  of OTS or his or her
designee, at the time the FDIC enters into an agreement to provide assistance to
or on behalf of the Bank under the  authority  contained  in  Section  13(c) (12
U.S.C.  ss.1823(c))  of  FDIA;  or  (ii)  by the  Director  of OTS or his or her
designee  at the time the  Director  of OTS or his or her  designee  approves  a
supervisory merger to resolve problems related to operations of the Bank or when
the Bank is determined by the Director of OTS or his or her designee to be in an

                                       5
<PAGE>

unsafe or unsound condition. Any rights of the parties that have already vested,
however, shall not be affected by such action.

     (e)  Notwithstanding  anything  herein to the  contrary,  any  payments  to
Executive by the Company,  whether pursuant to this Agreement or otherwise,  are
subject to and conditioned  upon their compliance with Section 18(k) of FDIA, 12
U.S.C. Section 1828(k), and the regulations  promulgated thereunder in 12 C.F.R.
Part 359.

7.  NO ATTACHMENT

     Except  as  required  by law,  no  right to  receive  payments  under  this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance,  charge,  pledge, or  hypothecation,  or to execution,
attachment,  levy, or similar process or assignment by operation of law, and any
attempt,  voluntary  or  involuntary,  to effect any such action  shall be null,
void, and of no effect.

8.  ENTIRE AGREEMENT; MODIFICATION AND WAIVER

     (a) This Agreement  contains the entire  understanding  between the parties
hereto and supersedes any prior agreement between the Bank and Executive, except
that this  Agreement  shall not  affect or  operate  to reduce  any  benefit  or
compensation inuring to Executive of a kind elsewhere provided.  No provision of
this  Agreement  shall be  interpreted  to mean that  Executive  is  subject  to
receiving fewer benefits than those  available to her without  reference to this
Agreement.

     (b) This  Agreement may not be modified or amended  except by an instrument
in writing signed by the parties hereto.

     (c) No term or  condition  of this  Agreement  shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver or estoppel.  No such written waiver shall be deemed a continuing  waiver
unless specifically  stated therein,  and each such waiver shall operate only as
to the specific  term or condition  waived and shall not  constitute a waiver of
such  term  or  condition  for  the  future  or as to any act  other  than  that
specifically waived.

9.  SEVERABILITY

     If, for any reason,  any  provision of this  Agreement,  or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this  Agreement or any part of such  provision not held so invalid,  and each
such other  provision and part thereof shall to the full extent  consistent with
law continue in full force and effect.

10.  HEADINGS FOR REFERENCE ONLY

     The headings of sections  and  paragraphs  herein are  included  solely for
convenience of reference and shall not control the meaning or  interpretation of
any of the provisions of this Agreement.

                                       6
<PAGE>

11.  GOVERNING LAW

     This  Agreement  shall be governed by the laws of the State of Maryland but
only to the extent not superseded by federal law.

12.  ARBITRATION

     Any  dispute  or  controversy  arising  under or in  connection  with  this
Agreement shall be settled exclusively by binding arbitration, as an alternative
to civil  litigation  and  without  any trial by jury to  resolve  such  claims,
conducted by a single arbitrator, mutually acceptable to the Bank and Executive,
sitting in a location selected by the Bank within fifty (50) miles from the main
office of the Bank,  in  accordance  with the rules of the American  Arbitration
Association's  National Rules for the Resolution of Employment  Disputes then in
effect.  Judgment may be entered on the  arbitrator's  award in any court having
jurisdiction.

13. PAYMENT OF LEGAL FEES

     To the extent that such payment(s) may be made without  triggering  penalty
under Code Section 409A, all reasonable legal fees paid or incurred by Executive
pursuant to any dispute or question of interpretation relating to this Agreement
shall  be  paid  or  reimbursed  by the  Bank,  provided  that  the  dispute  or
interpretation  has been resolved in Executive's  favor, and such  reimbursement
shall occur no later than sixty (60) days after the end of the year in which the
dispute is settled or resolved in Executive's favor.

14. OBLIGATIONS OF BANK

     The termination of Executive's employment, other than following a Change in
Control, shall not result in any obligation of the Bank under this Agreement.

15. SUCCESSORS AND ASSIGNS

     The Bank  shall  require  any  successor  or  assignee,  whether  direct or
indirect,  by  purchase,   merger,   consolidation  or  otherwise,   to  all  or
substantially   all  the  business  or  assets  of  the  Bank,   expressly   and
unconditionally to assume and agree to perform the Bank's obligations under this
Agreement,  in the same  manner  and to the same  extent  that the Bank would be
required to perform if no such succession or assignment had taken place.

                            [Signature Page Follows]

                                       7
<PAGE>

                                   SIGNATURES

     IN WITNESS  WHEREOF,  the Bank has caused this  Agreement to be executed by
its duly authorized officer, and Executive has signed this Agreement,  as of the
Effective Date.

                                             OBA BANK

                                    By:  /s/ Charles E. Weller
                                         ---------------------------------------
                                         Charles E. Weller
                                         President & CEO

                                              EXECUTIVE

                                    By:  /s/ David A. Miller
                                        ----------------------------------------
                                        David A. Miller
                                        Senior Vice President & CFO

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