Document:

EX-10(SS) 364-Day Amended & Restated Credit Agt

 

Exhibit 10(ss)

CONFORMED COPY

 

364-DAY

AMENDED AND RESTATED CREDIT AGREEMENT

dated as of

January 22, 2002

among

TRW INC.

The Borrowing Subsidiaries

Party Hereto

The Lenders Party Hereto

and

JPMORGAN CHASE BANK,

as Administrative Agent

SALOMON SMITH BARNEY INC.,

as Syndication Agent

BANK OF AMERICA, N.A.,

BARCLAYS BANK PLC,

as Co-Documentation Agents,

J.P. MORGAN SECURITIES INC.

SALOMON SMITH BARNEY INC.,

as Joint-Lead Arrangers and Joint-Bookrunners

 

 

TABLE OF CONTENTS

ARTICLE I

Definitions

	 	 	 	 	 	 	 
	SECTION 1.01.

SECTION 1.02.

SECTION 1.03.

SECTION 1.04.	 	
Defined Terms

Classification of Loans and Borrowings

Terms Generally

Accounting Terms; GAAP
	 	 	5
18
18
18	 

 

ARTICLE II

The Credits

	 	 	 	 	 	 	 
	SECTION 2.01.

SECTION 2.02.

SECTION 2.03.

SECTION 2.04.

SECTION 2.05.

SECTION 2.06.

SECTION 2.07.

SECTION 2.08.

SECTION 2.09.

SECTION 2.10.

SECTION 2.11.

SECTION 2.12.

SECTION 2.13.

SECTION 2.14.

SECTION 2.15.

SECTION 2.16.

SECTION 2.17.

SECTION 2.18.

SECTION 2.19.	 	
Commitments

Loans and Borrowings

Requests for Revolving Borrowings

Competitive Bid Procedure

Funding of Borrowings

Interest Elections

Termination and Reduction of Commitments

Repayment of Loans; Evidence of Debt

Prepayment of Loans

Fees

Interest

Alternate Rate of Interest

Increased Costs

Break Funding Payments

Taxes

Payments Generally; Pro Rata Treatment; Sharing of Set-offs

Mitigation Obligations; Replacement of Lenders

Borrowing Subsidiaries

Foreign Subsidiary Costs
	 	 	18
19
20
20
23
23
24
25
25
26
27
28
28
29
30
31
32
33
33	 

 

ARTICLE III

Representations and Warranties

	 	 	 	 	 	 	 
	SECTION 3.01.

SECTION 3.02.

SECTION 3.03.

SECTION 3.04.

SECTION 3.05.

SECTION 3.06.

SECTION 3.07.	 	
Organization; Powers

Authorization; Enforceability

Governmental Approvals; No Conflicts

Financial Condition; No Material Adverse Change

Litigation and Environmental Matters

Investment and Holding Company Status

Taxes

	 	 	34
34
34
34
35
35
35	 

 

3

	 	 	 	 	 	 	 
	SECTION 3.08.	 	
ERISA
	 	 	35	 

 

 ARTICLE IV

 Conditions

	 	 	 	 	 	 	 
	SECTION 4.01.

SECTION 4.02.

SECTION 4.03.	 	
Effective Date

Each Credit Event

Initial Credit Event for each Borrowing Subsidiary
	 	 	35
36
37	 

 

 ARTICLE V

 Affirmative Covenants

	 	 	 	 	 	 	 
	SECTION 5.01.

SECTION 5.02.

SECTION 5.03.	 	
Financial Statements and Other Information

Existence; Conduct of Business

Use of Proceeds

	 	 	37
38
38	 

 

 ARTICLE VI

 Negative Covenants

	 	 	 	 	 	 	 
	SECTION 6.01.

SECTION 6.02.

SECTION 6.03.

SECTION 6.04.

SECTION 6.05.

SECTION 6.06.

SECTION 6.07.

SECTION 6.08.	 	
Indebtedness of Subsidiaries

Mortgages

Sale and Lease-Back Transactions

Fundamental Changes

ERISA

Change in Control

Interest Coverage Ratio

Minimum Consolidated Net Worth

	 	 	39
39
40
42
42
42
42
42	 

 

 ARTICLE VII

	 	 	 	 	 	 	 
	Events of Default	 	 	 	39

 

 ARTICLE VIII

	 	 	 	 	 	 	 
	The Administrative Agent	 	40

 

 ARTICLE IX

	 	 	 	 	 	 	 
	Guarantee	 	 	42

 

4

ARTICLE X

Miscellaneous

	 	 	 	 	 	 	 
	SECTION 10.01.

SECTION 10.02.

SECTION 10.03.

SECTION 10.04.

SECTION 10.05.

SECTION 10.06.

SECTION 10.07.

SECTION 10.08.

SECTION 10.09.

SECTION 10.10.

SECTION 10.11.

SECTION 10.12.

SECTION 10.13.

SECTION 10.14.	 	
Notices

Waivers; Amendments

Expenses; Indemnity; Damage Waiver

Successors and Assigns

Survival

Counterparts; Integration; Effectiveness

Severability

Right of Setoff

Governing Law; Jurisdiction; Consent to Service of Process

WAIVER OF JURY TRIAL

Headings

Confidentiality

Conversion of Currencies

Interest Rate Limitation

	 	 	47
48
49
50
53
53
53
53
54
54
55
55
55
56	 

 

5

		
	 	     364-DAY CREDIT AGREEMENT dated as of January
22, 2002, among TRW INC., the BORROWING SUBSIDIARIES
from time to time party hereto, the LENDERS from time
to time party hereto, JPMORGAN CHASE BANK, as
Administrative Agent and SALOMON SMITH BARNEY INC.,
as Syndication Agent.

     The parties hereto agree as follows:

ARTICLE I

Definitions

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

     “ABR”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.

     “Adjusted LIBO Rate” means, with respect to any Eurocurrency Borrowing
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

     “Administrative Agent” means JPMorgan Chase Bank, in its capacity as
administrative agent for the Lenders hereunder.

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

     “Affiliate” means, with respect to
a specified 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.

     “Agreement Currency” has the meaning assigned to such term in Section
10.13(b).

     “Alternate Base Rate” means, for any day, a rate per annum equal to the
greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate
Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

     “Applicable Creditor” has the meaning assigned to such term in Section
10.13(b).

     “Applicable Percentage” means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender’s Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

 

6

     “Assignment and Acceptance” means an assignment and acceptance entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 10.04), and accepted by the Administrative Agent, in the
form of Exhibit B or any other form approved by the Administrative Agent.

     “Attributable Debt” means, as to any particular lease under which any
Person is liable at the time and at any date as of which the amount thereof is
to be determined, the lesser of (a) the fair value of the property subject to
such lease (as determined by the Directors of the Company) or (b) the total net
amount of rent required to be paid by such Person under such lease during the
remaining term thereof, discounted from the respective due dates thereof to such
date at the actual interest factor included in such rent. The net amount of rent
required to be paid under any such lease for any such period shall be the
aggregate amount of the rent payable by the lessee with respect to such period
after excluding amounts required to be paid on account of maintenance and
repairs, insurance, taxes, assessments, water rates and similar charges. In the
case of any lease which is terminable by the lessee upon the payment of a
penalty, such net amount shall also include the amount of such penalty, but no
rent shall be considered as required to be paid under such lease subsequent to
the first date upon which it may be so terminated.

     “Availability Period” means the period from and including the
Effective Date to but excluding the earlier of the Termination Date and the date
of termination of the Commitments.

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

     “Borrower” means the Company or any Borrowing Subsidiary.

     “Borrowing” means (a) Revolving Loans of the same Type and
currency, made, converted or continued on the same date and, in the case of
Eurocurrency Loans, as to which a single Interest Period is in effect or (b) a
Competitive Loan or group of Competitive Loans of the same Type made on the same
date and as to which a single Interest Period is in effect.

     “Borrowing Request” means a request by a Borrower for a
Revolving Borrowing in accordance with Section 2.03.

     “Borrowing Subsidiary” means, at any time, each Subsidiary
that has been designated as a Borrowing Subsidiary by the Company pursuant to
Section 2.18 and that has not ceased to be a Borrowing Subsidiary as provided in
such Section or Article VII.

     “Borrowing Subsidiary Agreement” means a Borrowing Subsidiary
Agreement substantially in the form of Exhibit A-1.

     “Borrowing Subsidiary Termination” means a Borrowing
Subsidiary Termination substantially in the form of Exhibit A-2.

     “Business Day” means any day that is not a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to remain closed; provided, that when used in connection with a
Eurocurrency Loan, the term “Business Day” shall

 

7

also exclude any day on which
banks are not open for dealings in dollar deposits in the London interbank
market.

     “Capital Lease Obligations” of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

     “Change in Control” means (a) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof),
of shares representing more than 30% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of the Company; or (b)
occupation of a majority of the seats (other than vacant seats) on the board of
directors of the Company by Persons who are not Continuing Directors. For
purposes of the foregoing, “Continuing Directors” shall mean (i) the directors
of the Company on the date hereof and (ii) each other director nominated or
appointed by at least two thirds of the Continuing Directors at the time of such
nomination or appointment.

     “Change in Law” means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender (or,
for purposes of Section 2.13(b), by any lending office of such Lender or by such
Lender’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

     “Class”, when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are
Revolving Loans or Competitive Loans.

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

     “Commitment” means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans, expressed as an amount
representing the maximum aggregate permitted amount of such Lender’s Revolving
Credit Exposure hereunder, as such commitment may be (a) reduced from time to
time pursuant to Section 2.07 and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 10.04. The
initial amount of each Lender’s Commitment is set forth on Schedule 2.01 or in
the Assignment and Acceptance pursuant to which such Lender shall have assumed
its Commitment, as applicable. The initial aggregate amount of the Lenders’
Commitments is $1,250,000,000.

     “Company” means TRW Inc., an Ohio corporation.

     “Competitive Bid” means an offer by a Lender to make a
Competitive Loan in accordance with Section 2.04.

 

8

     “Competitive Bid Rate” means, with respect to any Competitive
Bid, the Margin or the Fixed Rate, as applicable, offered by the Lender making
such Competitive Bid.

     “Competitive Bid Request” means a request by any Borrower for
Competitive Bids in accordance with Section 2.04.

     “Competitive Loan” means a Loan made pursuant to Section 2.04.

     “Consolidated EBITDA” means, for any fiscal period, with
respect to the Company and its consolidated Subsidiaries, (a) Consolidated Net
Income for such period plus (b) to the extent deducted in computing such
Consolidated Net Income, without duplication, the sum of (i) income tax expense,
(ii) Consolidated Interest Expense, (iii) depreciation and amortization expense,
(iv) any extraordinary or non-recurring losses and (v) other noncash items
(other than accruals) reducing Consolidated Net Income, minus (c) to the extent
added in computing such Consolidated Net Income, without duplication, the sum of
(i) any extraordinary or non-recurring gains and (ii) other noncash items (other
than accruals) increasing Consolidated Net Income, all as determined on a
consolidated basis in accordance with GAAP; provided that gains on sales of the
Company’s equity investments in publicly-traded companies and pension income
related to LucasVarity will in no event be subtracted under this clause (c) for
purposes of computing Consolidated EBITDA.

     “Consolidated Funded Debt” means the Funded Debt of the
Company and the consolidated Subsidiaries, determined on a consolidated basis in
accordance with GAAP.

     “Consolidated Interest Expense” means, for any period, the
aggregate of all interest expense of the Company and its consolidated
Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP.

     “Consolidated Net Assets” means the sum of (a) the total of
all assets of the Company and the consolidated Subsidiaries that would appear on
a consolidated balance sheet of the Company prepared in accordance with GAAP
less (b) Consolidated Net Worth.

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

     “Consolidated Net Worth” means, at any date, the consolidated
shareholders’ investment of the Company and the consolidated Subsidiaries,
exclusive of foreign currency translation adjustment and unrealized gains or
losses on securities as reported in the Company’s financial statements under
“Other Comprehensive Income,” determined as of such date. Consolidated
shareholders’ investment, foreign currency translation adjustment and unrealized
gains or losses on securities of the Company shall be as included in the annual
or quarterly financial statements of the Company, as applicable.

     “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 or by contract.
“Controlling” and “Controlled” have meanings correlative thereto.

 

9

     “Default” means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

     “Dollars” or “$” refers to lawful money of the United States
of America.

     “Domestic Subsidiary” means each consolidated Subsidiary other
than (a) any consolidated Subsidiary which the Directors of the Company
reasonably determine not to be material to the business or financial condition
of the Company; (b) any consolidated Subsidiary the major portion of the assets
of which are located, or the major portion of the business of which is carried
on, outside the United States of America, its territories and possessions; (c)
any consolidated Subsidiary which, during the 12 most recent calendar months (or
such shorter period as shall have elapsed since its organization) derived the
major portion of its gross revenues from sources outside the United States of
America; (d) any consolidated Subsidiary the major portion of the assets of
which consists of securities or obligations, or both, of one or more
corporations (whether or not consolidated Subsidiaries) of the types described
in the preceding clauses (b) and (c); and (e) any consolidated Subsidiary
organized after January 1, 2002 which the Company intends shall be operated in
such manner as to come within one or more of the preceding clauses (b), (c) and
(d).

     “Effective Date” means the date on which the conditions
specified in Section 4.01 are satisfied (or waived in accordance with Section
10.02).

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

     “ERISA Affiliate” means any trade or business (whether or not
incorporated) that, together with a Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

     “ERISA Event” means (a) any “reportable event”, as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an “accumulated funding deficiency” (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by a Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by a Borrower or any ERISA Affiliate
from the PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the incurrence by a Borrower or any of its ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by a Borrower or any ERISA Affiliate of
any notice, or the receipt by any Multiemployer Plan from a Borrower or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA.

 

10

     “Eurocurrency”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Adjusted LIBO Rate
(or, in the case of a Competitive Loan, the LIBO Rate).

     “Event of Default” has the meaning assigned to such term in
Article VII.

     “Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time.

     “Excluded Taxes” means (i) with respect to each Lender, taxes
imposed on its net income, and franchise or similar taxes imposed on it, by a
jurisdiction under the laws of which it is organized or in which its principal
executive office or applicable lending office is located, and (ii) any United
States withholding tax imposed on such payment, but not excluding any portion of
such tax that exceeds the United States withholding tax which would have been
imposed on such a payment to such Lender under the laws and treaties in effect
when such Lender first becomes a party to this Agreement.

     “Existing Credit Agreement” means the 364-Day Amended and
Restated Credit Agreement dated as of January 23, 2001, as amended, among the
Company, the Borrowing Subsidiaries from time to time party thereto, the lenders
party thereto and JPMorgan Chase Bank, as administrative agent.

     “Federal Funds Effective Rate” means, for any day, the
weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it.

     “Financial Officer” means the chief financial officer,
treasurer or controller of the Company.

     “Five-Year Credit Agreement” means the Five-Year Credit
Agreement dated as of January 25, 2000 among the Company, the borrowing
subsidiaries from time to time party thereto, the lenders from time to time
party thereto, JPMorgan, as administrative agent, Chase Manhattan International
Limited, as London agent and Salomon Smith Barney Inc., as syndication agent, as
such agreement may be amended from time to time.

     “Fixed Rate” means, with respect to any Competitive Loan
(other than a Eurocurrency Competitive Loan), the fixed rate of interest per
annum specified by the Lender making such Competitive Loan in its related
Competitive Bid.

     “Fixed Rate Loan” means a Competitive Loan bearing interest at
a Fixed Rate.

 

11

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

     “Foreign Subsidiary” means any Subsidiary that is not a
Domestic Subsidiary.

     “Funded Debt” means all Indebtedness of the type described in
clauses (a) and (b) of the definition thereof having a maturity of more than 12
months from the date such Indebtedness was incurred or having a maturity of 12
months or less but by its terms being renewable or extendable beyond 12 months
from the date such Indebtedness was incurred at the option of the obligor.

     “GAAP” means generally accepted accounting principles in the
United States of America applied in a manner consistent with the financial
statements referred to in Section 3.04(a).

     “Governmental Authority” means the government of the United
States of America, any other nation or 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.

     “Guarantee” of or by any Person (the “guarantor”) means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.

     “Guarantor Subsidiary” means any Subsidiary that shall have
delivered to the Administrative Agent (a) a guarantee agreement in form and
substance satisfactory to the Administrative Agent under which it shall
guarantee the payment of the Obligations and (b) such evidence as the
Administrative Agent may reasonably have requested (which may include an opinion
of counsel qualified in any relevant jurisdiction) as to the corporate power and
authority of such Subsidiary to enter into and the enforceability of such
guarantee agreement and such other matters related to such guarantee agreement
as the Administrative Agent may reasonably have determined to be material.

 

12

     “Indebtedness” of any Person means, without duplication, (a)
all obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding current
accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by any Mortgage on property owned or acquired by
such Person, whether or not the Indebtedness secured thereby has been assumed,
(g) all Guarantees by such Person of Indebtedness of others, (h) all Capital
Lease Obligations of such Person, (i) all non-contingent obligations (and, for
purposes of Section 6.02 and the definition of Material Indebtedness, all
contingent obligations) of such Person to reimburse any bank or other Person in
respect of amounts paid under letters of credit and similar instruments and (j)
all obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with such entity, except to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

     “Index Debt” means senior, unsecured, long-term indebtedness
for borrowed money of the Company that is not guaranteed by any other Person or
subject to any other credit enhancement.

     “Interest Election Request” means a request by the relevant
Borrower to convert or continue a Revolving Borrowing in accordance with Section
2.06.

     “Interest Payment Date” means (a) with respect to any ABR
Loan, the last day of each March, June, September and December, (b) with respect
to any Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period and (c) with
respect to any Fixed Rate Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of a Fixed Rate
Borrowing with an Interest Period of more than 90 days’ duration (unless
otherwise specified in the applicable Competitive Bid Request), each day prior
to the last day of such Interest Period that occurs at intervals of 90 days’
duration after the first day of such Interest Period, and any other dates that
are specified in the applicable Competitive Bid Request as Interest Payment
Dates with respect to such Borrowing.

     “Interest Period” means (a) with respect to any Eurocurrency
Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as the applicable Borrower may elect and (b) with respect
to any Fixed Rate Borrowing, the period (which shall not be less than 7 days or
more than 360 days) commencing on the date of such Borrowing and ending on the
date specified in the applicable Competitive Bid Request;
provided, that (i) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be

 

13

extended to the next succeeding Business Day unless, in the case
of a Eurocurrency Borrowing only, such next succeeding Business Day would fall
in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) any Interest Period pertaining to a
Eurocurrency Borrowing that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day
of the last calendar month of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made
and, in the case of a Revolving Borrowing, thereafter shall be the effective
date of the most recent conversion or continuation of such Borrowing.

     “JPMorgan” means JPMorgan Chase Bank and its successors.

     “Judgment Currency” has the meaning assigned to such term in
Section 10.13(b).

     “Lenders” means the Persons listed on Schedule 2.01 and any
other Person that shall have become a party hereto pursuant to an Assignment and
Acceptance, other than any such Person that shall have ceased to be a party
hereto pursuant to an Assignment and Acceptance.

     “LIBO Rate” means, with respect to any Eurocurrency Borrowing
for any Interest Period, the rate appearing on Page 3750 of the Telerate Service
(or on any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period; provided that, to the extent that
an interest rate is not ascertainable pursuant to the foregoing provisions of
this definition, the “LIBO Rate” shall be the average (rounded upward, if
necessary, to the next 1/100 of 1%) of the respective interest rates per annum
at which dollar deposits of such Borrowing are offered for such Interest Period
to major banks in the London interbank market by JPMorgan and Citibank, N.A. at
approximately 11:00 a.m., London time, on the date two Business Days prior to
the beginning of such Interest Period.

     “Loan Documents” means this Agreement, each Borrowing
Subsidiary Agreement, each Borrowing Subsidiary Termination, and each promissory
note delivered pursuant to this Agreement.

     “Loans” means the loans made by the Lenders to the Borrowers
pursuant to this Agreement.

     “LucasVarity” shall mean LucasVarity Limited, formerly known
as LucasVarity plc, an English company.

     “Margin” means, with respect to any Competitive Loan bearing
interest at a rate based on the LIBO Rate, the marginal rate of interest, if
any, to be added to or subtracted from the LIBO Rate to determine the rate of
interest applicable to such Loan, as specified by the Lender making such Loan in
its related Competitive Bid.

 

14

     “Margin Stock” means “margin stock” as defined in Regulation
U.

     “Material Adverse Effect” means a material adverse effect on
(a) the consolidated financial condition of the Company and the consolidated
Subsidiaries, taken as a whole or (b) the ability of the Company to perform its
payment obligations under the Loan Documents.

     “Material Indebtedness” means Indebtedness (other than the
Loans), of any one or more of the Company and the Material Subsidiaries in an
aggregate principal amount exceeding $100,000,000.

     “Material Subsidiary” means (a) any Borrowing Subsidiary, (b)
any subsidiary that directly or indirectly owns or Controls any Borrowing
Subsidiary or other Material Subsidiary and (c) any other Subsidiary whose
assets (or, if such Subsidiary has subsidiaries, whose consolidated assets) are
at least equal to $100,000,000.

     “Maturity Date” means the first anniversary of the Termination
Date.

     “Mortgage” has the meaning assigned to such term in Section
6.02.

     “Multiemployer Plan” means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

     “Obligations” means the due and punctual payment of (a) the
principal of and premium, if any, and interest (including interest accruing
during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) on
the Loans made to any Borrower, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise and (b) all
other monetary obligations, including fees, costs, expenses and indemnities,
whether primary, secondary, direct, contingent, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), of any Borrower under this Agreement and the
other Loan Documents.

     “Other Taxes” means any present or future stamp or documentary
taxes and any other excise or property taxes, or similar charges or levies,
which arise from any payment made pursuant to this Agreement or any Loan
Document or from the execution, delivery, registration or enforcement of, or
otherwise with respect to, this Agreement or any Loan Document; provided that
Other Taxes shall not include Excluded Taxes.

     “PBGC” means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA and any successor entity performing similar functions.

     “Permitted Subsidiary Indebtedness” means (a) Indebtedness
under this Agreement or the Five-Year Credit Agreement, (b) any Indebtedness of
a Subsidiary owed to the Company or another Subsidiary, (c) Indebtedness of
Guarantor Subsidiaries, (d) any Indebtedness deemed incurred in connection with
one or more receivables securitization transactions entered into by the Company
and/or one or more Subsidiaries in an aggregate amount of up to $500,000,000
(minus the amount of any such Indebtedness of the Company) and

 

15

(e)  any
Indebtedness of a finance Subsidiary with no significant assets or operations to
the extent (i) such Indebtedness is Guaranteed by the Company and is not
Guaranteed, or secured by assets or obligations of, any other Subsidiary, (ii)
the proceeds of such Indebtedness are dividended to the Company or another
Subsidiary or advanced to the Company and (iii) such finance Subsidiary is not
the obligee in respect of any Indebtedness of any other Subsidiary.

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

     “Plan” means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which any Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

     “Prime Rate” means the rate of interest per annum publicly
announced from time to time by JPMorgan Chase Bank as its prime rate in effect
at its principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.

     “Principal Property” means any single manufacturing plant,
engineering facility or research facility owned or leased by the Company or a
Domestic Subsidiary other than any such plant or facility or portion thereof
which the Board of Directors reasonably determines not to be of material
importance to the Company and its Subsidiaries taken as a whole.

     “Register” has the meaning set forth in Section 10.04.

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

     “Required Lenders” means, at any time, Lenders having
Revolving Credit Exposures and unused Commitments representing more than 50% of
the sum of the total Revolving Credit Exposures and unused Commitments at such
time; provided that, for purposes of declaring the Loans to be due and payable
pursuant to Article VII, and for all purposes after the Loans become due and
payable pursuant to Article VII and the Commitments expire or terminate, the
outstanding Competitive Loans of the Lenders shall be included in their
respective Revolving Credit Exposures in determining the Required Lenders.

     “Revolving Credit Exposure” means, with respect to any Lender
at any time, such Lender’s Applicable Percentage of the aggregate outstanding
principal amount of the Revolving Loans at such time.

     “Revolving Loan” means a Loan made pursuant to Sections 2.01
and 2.03.

     “Specified Company Indebtedness” means, at any time, (a) all
Indebtedness of the Company secured by Mortgages that would be prohibited by
Section 6.02 but for the provisions of clause (h) thereof; (b) all Attributable
Debt of the Company related to Sale and Leaseback

 

16

Transactions that would be
prohibited by Section 6.03 but for the provisions of clause (b) thereof; (c) all
Indebtedness of the Company secured by Mortgages on capital stock of or other
equity interests in Foreign Subsidiaries; and (d) all Indebtedness of the
Company that is secured by Mortgages on accounts receivable or that is deemed to
arise in connection with receivables securitization transactions, but only to
the extent the amount of such Indebtedness of the Company and the Domestic
Subsidiaries so secured or so arising exceeds $500,000,000.

     “Statutory Reserve Rate” means a fraction (expressed as a
decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which the Administrative Agent is
subject for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall
include those imposed pursuant to such Regulation D. Eurocurrency Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such Regulation D or
any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

     “subsidiary” means, with respect to any Person (the “parent”)
at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with
those of the parent in the parent’s consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
association or other entity (a) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of
such date, otherwise Controlled, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.

     “Subsidiary” means any subsidiary of the Company.

     “Taxes” means any and all present or future taxes or other
charges of any nature deducted, withheld or otherwise imposed with respect to
any payment by any Borrower pursuant to this Agreement or any Loan Document, and
all liabilities with respect thereto other than Excluded Taxes.

     “Termination Date” means January 21, 2003.

     “Transactions” means the execution, delivery and performance
by the Borrowers of the Loan Documents, the borrowing of Loans and the use of
the proceeds thereof.

     “Type”, when used in reference to any Loan or Borrowing,
refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBO Rate, the
Alternate Base Rate or, in the case of a Competitive Loan or Borrowing, the LIBO
Rate or a Fixed Rate.

 

17

     “Wholly Owned Domestic Subsidiary” means each Domestic
Subsidiary all the outstanding shares of which, other than directors’ qualifying
shares, shall at the time be owned by the Company or by the Company and one or
more Wholly Owned Domestic Subsidiaries, or by one or more Wholly Owned Domestic
Subsidiaries.

     “Withdrawal Liability” means liability to a Multiemployer Plan
as a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

18

     SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by
Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency Revolving
Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurocurrency
Borrowing”) or by Class and Type (e.g., a “Eurocurrency Revolving Borrowing”).

     SECTION 1.03. Terms Generally. 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 (a) any definition of or reference to any
agreement, instrument or other document herein 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), (b) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) 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.

     SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if the
Company notifies the Administrative Agent that the Company requests an amendment
to any provision hereof to eliminate the effect of any change occurring after
the date hereof in GAAP or in the application thereof on the operation of such
provision (or if the Administrative Agent notifies the Company that the Required
Lenders request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in
GAAP or in the application thereof, then such provision shall be interpreted on
the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

ARTICLE II

The Credits

     SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein,
each Lender agrees to make Revolving Loans to any Borrower from time to time
during the Availability Period in Dollars in an aggregate principal amount that
will not result in (a) such Lender’s Revolving Credit Exposure exceeding its
Commitment or (b) the sum of the total Revolving Credit Exposures plus the
aggregate principal amount of the outstanding Competitive

 

19

Loans exceeding the
total Commitments. Within the foregoing limits, and subject to the terms and
conditions set forth herein, any Borrower may borrow, prepay and reborrow
Revolving Loans.

     SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as
part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in
accordance with their respective Commitments. Each Competitive Loan shall be
made in accordance with the procedures set forth in Section 2.04. The failure of
any Lender to make any Loan required to be made by it shall not relieve any
other Lender of its obligations hereunder; provided that the Commitments and
Competitive Bids of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required hereunder.

     (b)  Subject to Section 2.12, (i) each Revolving Borrowing shall be comprised
entirely of ABR Loans or Eurocurrency Loans as the applicable Borrower may
request in accordance herewith, and (ii) each Competitive Borrowing shall be
comprised entirely of Eurocurrency Loans or Fixed Rate Loans as the applicable
Borrower may request in accordance herewith. Each Lender at its option may make
any Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan; provided that any exercise of such option shall
not affect the obligation of any Borrower to repay such Loan in accordance with
the terms of this Agreement.

     (c)  At the commencement of each Interest Period for any Revolving Borrowing,
such Revolving Borrowing shall be in an aggregate amount that is at least equal
to $10,000,000 and an integral multiple of $5,000,000; provided that an ABR
Revolving Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments. Each Competitive Borrowing shall be in
an aggregate amount that is an integral multiple of $5,000,000 and not less than
$10,000,000. Borrowings of more than one Type and Class may be outstanding at
the same time; provided that there shall not at any time be more than a total of
20 Eurocurrency Revolving Borrowings outstanding.

     (d)  Notwithstanding any other provision of this Agreement, no Borrower shall be
entitled to request, or to elect to convert or continue, any Borrowing if the
Interest Period requested with respect thereto would end after the Maturity
Date.

 

20

     SECTION 2.03. Requests for Revolving Borrowings. To request a Borrowing, the
applicable Borrower, or the Company on behalf of the applicable Borrower, shall
notify the Administrative Agent of such request by telephone (a) in the case of
a Eurocurrency Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before the date of the proposed Borrowing or (b) in the case of an
ABR Borrowing, not later than 10:00 a.m., New York City time, on the Business
Day of the proposed Borrowing. Each such telephonic Borrowing Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the applicable Borrower, or by the Company on
behalf of the applicable Borrower. Each such telephonic and written Borrowing
Request shall specify the following information in compliance with Section 2.02:

		
	 	     (i) the Borrower requesting such Borrowing (or on whose behalf the Company is requesting such Borrowing);
	 
	 	     (ii) the aggregate principal amount of the requested Borrowing;
	 
	 	     (iii) the date of the requested Borrowing, which shall be a Business Day;
	 
	 	     (iv) whether the requested Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;
	 
	 	     (v) in the case of a Eurocurrency Borrowing, the initial Interest Period to be applicable thereto, which shall be a period
contemplated by the definition of the term “Interest Period”; and
	 
	 	     (vi) the location and number of the Borrower’s account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.05.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurocurrency Revolving Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month’s duration.
Promptly following receipt of a Borrowing Request in accordance with this
Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as part of the
requested Borrowing.

     SECTION 2.04. Competitive Bid Procedure. (a) Subject to the terms and conditions
set forth herein, from time to time during the Availability Period any Borrower
may request Competitive Bids and may (but shall not have any obligation to)
accept Competitive Bids and borrow Competitive Loans, in each case denominated
in Dollars; provided that after giving effect to any Borrowing of Competitive
Loans the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of the outstanding Competitive Loans shall not exceed the total
Commitments. To request Competitive Bids, the Company or the applicable
Borrowing Subsidiary shall notify the Administrative Agent of such request by
telephone, in the case of a Eurocurrency Borrowing, not later than 11:00 a.m.,
New York City time, four Business Days before the date of the proposed Borrowing
and, in the case of a Fixed Rate Borrowing, not later than 10:00 a.m., New York
City time, one Business Day before the date of the proposed Borrowing; provided
that the Borrowers may submit up to (but not more than) three Competitive

 

21

Bid Requests on the same day. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Competitive Bid Request in a form approved by the Administrative Agent
and signed by the relevant Borrower. Each such telephonic and written
Competitive Bid Request shall specify the following information in compliance
with Section 2.02:

		
	 	     (i) the Borrower requesting such Borrowing (or on whose behalf the Company is requesting such Borrowing);
	 
	 	     (ii) the aggregate principal amount of the requested Borrowing;
	 
	 	     (iii) the date of the requested Borrowing, which shall be a Business Day;
	 
	 	     (iv) whether such Borrowing is to be a Eurocurrency Borrowing or a Fixed Rate Borrowing;
	 
	 	     (v) the Interest Period to be applicable to such Borrowing, which shall be a period contemplated by the definition of the term
“Interest Period”; and
	 
	 	     (vi) the location and number of the Borrower’s account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.05.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Lenders of the details
thereof by telecopy, inviting the Lenders to submit Competitive Bids.

     (b)  Each Lender may (but shall not have any obligation to) make one or more
Competitive Bids to any Borrower in response to a Competitive Bid Request. Each
Competitive Bid by a Lender must be in a form approved by the Administrative
Agent and must be received by the Administrative Agent by telecopy, in the case
of a Eurocurrency Competitive Borrowing, not later than 9:30 a.m., New York City
time, three Business Days before the proposed date of such Competitive
Borrowing, and in the case of a Fixed Rate Borrowing, not later than 9:30 a.m.,
New York City time, on the proposed date of such Competitive Borrowing.
Competitive Bids that do not conform substantially to the form approved by the
Administrative Agent may be rejected by the Administrative Agent, and the
Administrative Agent shall notify the applicable Lender as promptly as
practicable. Each Competitive Bid shall specify (i) the principal amount (which
shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and
which may equal the entire principal amount of the Competitive Borrowing
requested by the relevant Borrower) of the Competitive Loan or Loans that the
Lender is willing to make, (ii) the Competitive Bid Rate or Rates at which the
Lender is prepared to make such Loan or Loans (expressed as a percentage rate
per annum in the form of a decimal to no more than four decimal places) and
(iii) the Interest Period applicable to each such Loan and the last day thereof.

     (c)  The Administrative Agent shall promptly notify the Company by telecopy of
the Competitive Bid Rate and the principal amount specified in each Competitive
Bid and the identity of the Lender that shall have made such Competitive Bid.

 

22

     (d)  Subject only to the provisions of this paragraph, the applicable Borrower
may accept or reject any Competitive Bid. The applicable Borrower shall notify
the Administrative Agent by telephone, confirmed by telecopy in a form approved
by the Administrative Agent, whether and to what extent it has decided to accept
or reject each Competitive Bid, in the case of a Eurocurrency Competitive
Borrowing, not later than 10:30 a.m., New York City time, three Business Days
before the date of the proposed Competitive Borrowing, and in the case of a
Fixed Rate Borrowing, not later than 10:30 a.m., New York City time, on the date
of the proposed Competitive Borrowing; provided that (i) the failure of such
Borrower to give such notice shall be deemed to be a rejection of each
Competitive Bid, (ii) such Borrower shall not accept a Competitive Bid made at a
particular Competitive Bid Rate if such Borrower rejects a Competitive Bid made
at a lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive
Bids accepted by such Borrower shall not exceed the aggregate amount of the
requested Competitive Borrowing specified in the related Competitive Bid
Request, (iv) to the extent necessary to comply with clause (iii) above, such
Borrower may accept Competitive Bids at the same Competitive Bid Rate in part,
which acceptance, in the case of multiple Competitive Bids at such Competitive
Bid Rate, shall be made pro rata in accordance with the amount of each such
Competitive Bid, and (v) except pursuant to clause (iv) above, no Competitive
Bid shall be accepted for a Competitive Loan unless the amount of such
Competitive Loan is an integral multiple of $5,000,000; provided
further that if
a Competitive Loan must be in an amount less than $5,000,000 because of the
provisions of clause (iv) above, such Competitive Loan may have a minimum amount
of $1,000,000 and in calculating the pro rata allocation of acceptances of
portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (iv) the amounts shall be rounded to integral multiples of
$1,000,000 in a manner determined by the applicable Borrower. A notice given by
a Borrower pursuant to this paragraph shall be irrevocable.

     (e)  The Administrative Agent shall promptly notify each bidding Lender by
telecopy whether or not its Competitive Bid has been accepted (and, if so, the
amount and Competitive Bid Rate so accepted), and each successful bidder will
thereupon become bound, subject to the terms and conditions hereof, to make the
Competitive Loan in respect of which its Competitive Bid has been accepted.

     (f)  If the Administrative Agent shall elect to submit a Competitive Bid in its
capacity as a Lender, it shall submit such Competitive Bid directly to the
applicable Borrower at least one quarter of an hour earlier than the time by
which the other Lenders are required to submit their Competitive Bids to the
Administrative Agent pursuant to paragraph (b) of this Section.

 

23

     SECTION 2.05. Funding of Borrowings. (a) Each Lender shall make each Loan to be
made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 12:00 noon, New York City time, to the account of
the Administrative Agent most recently designated by it for such purpose by
notice to the Lenders. The Administrative Agent will make such Loans available
to the relevant Borrower by promptly crediting the amounts so received, in like
funds, to an account of the relevant Borrower maintained by the Administrative
Agent and designated by such Borrower in the applicable Borrowing Request or
Competitive Bid Request.

     (b)  Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender’s share of such Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the relevant Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and such Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount 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, at
the Federal Funds Effective Rate. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan
included in such Borrowing.

     SECTION 2.06. Interest Elections. (a) Each Revolving Borrowing initially shall
be of the Type specified in the applicable Borrowing Request and, in the case of
a Eurocurrency Revolving Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the relevant Borrower may elect
to convert such Borrowing to a different Type or to continue such Borrowing and,
in the case of a Eurocurrency Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. A Borrower may elect different
options with respect to different portions of the affected Borrowing, in which
case each such portion shall be allocated ratably among the Lenders holding the
Loans comprising such Borrowing, and the Loans comprising each such portion
shall be considered a separate Borrowing. This Section shall not apply to
Competitive Borrowings, which may not be converted or continued.

     (b)  To make an election pursuant to this Section, the Company or the Borrowing
Subsidiary (or the Company on its behalf) shall notify the Administrative Agent
of such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if such Borrower were requesting a Revolving
Borrowing of the Type resulting from such election to be made on the effective
date of such election. Each such telephonic Interest Election Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Interest Election Request in a form approved
by the Administrative Agent and signed by the relevant Borrower, or by the
Company on its behalf.

     (c)  Each telephonic and written Interest Election Request shall specify the
following information in compliance with Section 2.02:

 

24

		
	 	     (i) the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions
thereof, the portions thereof to be allocated to each resulting
Borrowing (in which case the information to be specified pursuant to
clauses (iii) and below shall be specified for each resulting
Borrowing);
	 
	 	     (ii) the aggregate principal amount of the requested Borrowing;
	 
	 	     (iii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;
	 
	 	     (iv) whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing; and
	 
	 	     (v) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest
Period to be applicable thereto after giving effect to such election,
which shall be a period contemplated by the definition of the term
“Interest Period”.

If any such Interest Election Request requests a Eurocurrency Borrowing but does
not specify an Interest Period, then the relevant Borrower shall be deemed to
have selected an Interest Period of one month’s duration.

     (d)  Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender’s portion of each resulting Borrowing.

     (e)  If the relevant Borrower fails to deliver a timely Interest Election Request
with respect to a Eurocurrency Revolving Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
an Event of Default has occurred and is continuing and the Administrative Agent,
at the request of the Required Lenders, so notifies the Company, then, so long
as an Event of Default is continuing (i) no outstanding Revolving Borrowing may
be converted to or continued as a Eurocurrency Borrowing and (ii) unless repaid,
each Eurocurrency Revolving Borrowing shall be converted to an ABR Borrowing at
the end of the Interest Period applicable thereto.

     SECTION 2.07. Termination and Reduction of Commitments. (a) Unless previously terminated, the Commitments shall terminate on the
Termination Date.

     (b)  The Company may at any time terminate, or from time to time reduce, the
Commitments; provided that (i) each reduction of the Commitments shall be in an
amount that is an integral multiple of $10,000,000 and (ii) the Company shall
not terminate or reduce the Commitments if, after giving effect to any
concurrent prepayment of the Loans in accordance with Section 2.09, the sum of
the Revolving Credit Exposures plus the aggregate principal amount of
outstanding Competitive Loans would exceed the total Commitments.

     (c)  The Company shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraph (b) of this Section at least
one Business

 

25

Day prior to the effective date of such termination or reduction,
specifying such election and the effective date thereof. Promptly following
receipt of any notice, the Administrative Agent shall advise the Lenders of the
contents thereof. Each notice delivered by the Company pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments
delivered by the Company may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be
revoked by the Company (by notice to the Administrative Agent on or prior to the
specified effective date) if such condition is not satisfied. Any termination or
reduction of the Commitments shall be permanent. Each reduction of the
Commitments shall be made ratably among the Lenders in accordance with their
respective Commitments.

     SECTION 2.08.
Repayment of Loans; Evidence of Debt. (a) Each Borrower hereby
unconditionally promises to pay (i) to the Administrative Agent for the account
of each Lender the then unpaid principal amount of each Revolving Loan on the
Maturity Date and (ii) to the Administrative Agent for the account of each
Lender the then unpaid principal amount of each Competitive Loan on the last day
of the Interest Period applicable to such Loan.

     (b)  Each Lender shall maintain in accordance with its usual practice an account
or accounts evidencing the indebtedness of each Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of principal
and interest payable and paid to such Lender from time to time hereunder.

     (c)  The Administrative Agent shall maintain accounts in which it shall record
(i) the amount of each Loan made hereunder, the Class and Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or interest
due and payable or to become due and payable from each Borrower to each Lender
hereunder and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender’s share thereof.

     (d)  The entries made in the accounts maintained pursuant to paragraph (b) or (c)
of this Section shall, absent manifest error, be prima facie evidence of the
existence and amounts of the obligations recorded therein;
provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of any Borrower
to repay the Loans in accordance with the terms of this Agreement.

     (e)  Any Lender may request that Loans made by it be evidenced by a promissory
note. In such event, each Borrower shall prepare, execute and deliver to such
Lender a promissory note payable to the order of such Lender (or, if requested
by such Lender, to such Lender and its registered assigns) and in a form
approved by the Administrative Agent. Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 10.04) be represented by one or more promissory
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).

     SECTION 2.09. Prepayment of Loans. (a) Any Borrower shall have the right at any
time and from time to time to prepay any Borrowing of such Borrower in whole or
in part, subject to prior notice in accordance with paragraph (b) of this
Section; provided that a Borrower

 

26

shall not have the right to prepay any
Competitive Loan without the prior consent of the Lender thereof.

     (b)  The Company shall notify the Administrative Agent by telephone (confirmed by
telecopy) of any prepayment hereunder not later than 11:00 a.m., New York City
time, one Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of
each Borrowing or portion thereof to be prepaid; provided that, if a notice of
prepayment is given in connection with a conditional notice of termination of
the Commitments as contemplated by Section 2.07, then such notice of prepayment
may be revoked if such notice of termination is revoked in accordance with
Section 2.07. Promptly following receipt of any such notice relating to a
Revolving Borrowing, the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment of any Revolving Borrowing shall be in
an amount that would be permitted in the case of an advance of a Revolving
Borrowing of the same Type as provided in Section 2.02. Each prepayment of a
Revolving Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the
extent required by Section 2.11.

     SECTION 2.10.
Fees. (a) The Company agrees to pay to the Administrative Agent
for the account of each Lender a facility fee, which shall accrue at the rate of
0.125% per annum on the daily amount of the Commitment of such Lender (whether
used or unused) during the period from and including the date hereof to but
excluding the date on which such Commitment terminates; provided that, if such
Lender continues to have any Revolving Credit Exposure after its Commitment
terminates, then such facility fee shall continue to accrue on the daily amount
of such Lender’s Revolving Credit Exposure from and including the date on which
its Commitment terminates to, but excluding, the date on which such Lender
ceases to have any Revolving Credit Exposure. Accrued facility fees shall be
payable in arrears on the last day of March, June, September and December of
each year, on the date on which the Commitments terminate and on the Maturity
Date, commencing on the first such date to occur after the date
hereof; provided that any facility fees accruing after the Maturity Date shall be payable on
demand. All facility fees shall be computed on the basis of a year of 365 days
(or 366 days in the case of a leap year) and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

     (b)  For any day on which the sum of the total Revolving Credit Exposure plus the
aggregate principal amount of the outstanding Competitive Loans shall be greater
than 33-1/3% of the total Commitments, and for each day after the Commitments
shall have terminated, the Borrowers shall pay to the Administrative Agent for
the account of each Lender a utilization fee which shall accrue at the rate of
..125% per annum on the aggregate amount of such Lender’s outstanding Loans on
such day. The accrued utilization fees, if any, shall be payable in arrears on
the last day of each March, June, September and December and on the date on
which the Commitments shall have terminated and no Loans shall be outstanding.
All utilization fees shall be computed on the basis of a year of 365 days (or
366 days in the case of a leap year) and shall be payable for the actual number
of days elapsed (including the first day but excluding the last day).

 

27

     (c)  The Company agrees to pay to the Administrative Agent, for its own account,
fees payable in the amounts and at the times separately agreed upon between the
Company and the Administrative Agent.

     (d)  All fees payable hereunder shall be paid on the dates due, in immediately
available funds, to the Administrative Agent for distribution, in the case of
facility fees and utilization fees, to the Lenders. Fees paid shall not be
refundable absent manifest error in payment or computation.

     SECTION 2.11.
Interest. (a) The Loans comprising each ABR Borrowing shall bear
interest at the Alternate Base Rate. The Loans comprising each Eurocurrency
Borrowing shall bear interest (i) in the case of a Eurocurrency Revolving Loan,
at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
plus the rate of 0.625% per annum, or (ii) in the case of a Eurocurrency
Competitive Loan, at the LIBO Rate for the Interest Period in effect for such
Borrowing plus (or minus, as applicable) the Margin applicable to such Loan.

     (b)  Each Fixed Rate Loan shall bear interest at the Fixed Rate applicable to
such Loan.

     (c)  Notwithstanding the foregoing, if any principal of or interest on any Loan
or any fee or other amount payable by any Borrower hereunder is not paid when
due, whether at stated maturity, upon acceleration or otherwise, such overdue
amount shall bear interest, after as well as before judgment, at a rate per
annum equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Loans as provided in paragraph (a) of this Section.

     (d)  Accrued interest on each Loan shall be payable in arrears on each Interest
Payment Date for such Loan and, in the case of Revolving Loans, upon termination
of the Commitments; provided that (i) interest accrued pursuant to paragraph (d)
of this Section shall be payable on demand, (ii) in the event of any repayment
or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan
prior to the end of the Availability Period), accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or
prepayment and (iii) in the event of any conversion of any Eurocurrency
Revolving Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion.

     (e)  All interest hereunder shall be computed on the basis of a year of 360 days,
except that interest computed by reference to the Alternate Base Rate at times
when the Alternate Base Rate is based on the Prime Rate shall be computed on the
basis of a year of 365 days (or 366 days in a leap year), and in each case shall
be payable for the actual number of days elapsed (including the first day but
excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate
or LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

 

28

     SECTION 2.12. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurocurrency Borrowing:

		
	 	     (a) the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do
not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as
applicable, for such Interest Period; or
	 
	 	     (b) the Administrative Agent is advised by the Required Lenders (or, in the
case of a Eurocurrency Competitive Loan, the Lender that is required to
make such Loan) that the Adjusted LIBO Rate or the LIBO Rate, as
applicable, for such Interest Period will not adequately and fairly
reflect the cost to such Lenders (or Lender) of making or maintaining
their Loans (or its Loan) included in such Borrowing for such Interest
Period;

then the Administrative Agent shall give notice thereof to the Company and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Company and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurocurrency Borrowing shall be
ineffective, (ii) any Borrowing Request for a Eurocurrency Revolving Borrowing
shall be deemed a request for an ABR Borrowing and (iii) any request by a
Borrower for a Eurocurrency Competitive Borrowing shall be
ineffective; provided
that if the circumstances giving rise to such notice do not affect all the
Lenders, then requests by a Borrower for Eurocurrency Competitive Borrowings may
be made to Lenders that are not affected thereby.

     SECTION 2.13. Increased Costs. (a) If any Change in Law shall:

		
	 	     (i) impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account
of, or credit extended by, any Lender (except any such reserve
requirement reflected in the Adjusted LIBO Rate); or
	 
	 	     (ii) impose on any Lender or the London interbank market any other condition
affecting this Agreement or Eurocurrency Loans or Fixed Rate Loans made
by such Lender;

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 Fixed Rate Loan (or of
maintaining its obligation to make any such Loan) or to reduce the amount of any
sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then the Company will pay to such Lender such additional
amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

     (b)  If any Lender determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such
Lender’s capital or on the capital of such Lender’s holding company, if any, as
a consequence of this Agreement or the Loans made by, such Lender, to a level
below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration

 

29

such Lender’s
policies and the policies of such Lender’s holding company with respect to
capital adequacy), then from time to time the Company will pay to such Lender,
such additional amount or amounts as will compensate such Lender or such
Lender’s holding company for any such reduction suffered.

     (c)  A certificate of a Lender setting forth the amount or amounts necessary to
compensate such Lender or its holding company, as the case may be, as specified
in paragraph (a) or (b) of this Section shall be delivered to the Company and
shall be conclusive absent manifest error. The Company shall pay such Lender, as
the case may be, the amount shown as due on any such certificate within 15 days
after receipt thereof.

     (d)  Failure or delay on the part of any Lender to demand compensation pursuant
to this Section shall not constitute a waiver of such Lender’s right to demand
such compensation; provided that the Company shall not be required to compensate
a Lender pursuant to this Section for any increased costs or reductions incurred
more than 45 days prior to the date that such Lender notifies the Company of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s intention to claim compensation therefor; provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 45-day period referred to above shall be extended to include the period
of retroactive effect thereof.

     (e)  Notwithstanding the foregoing provisions of this Section, a Lender shall not
be entitled to compensation pursuant to this Section in respect of any
Competitive Loan if the Change in Law that would otherwise entitle it to such
compensation shall have been publicly announced prior to submission of the
Competitive Bid pursuant to which such Loan was made.

     SECTION 2.14. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurocurrency Loan or Fixed Rate Loan other than on the last day
of an Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurocurrency Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Revolving Loan on the date specified in any notice
delivered pursuant hereto, (d) the failure to borrow any Competitive Loan after
accepting the Competitive Bid to make such Loan, or (e) the assignment of any
Eurocurrency Loan or Fixed Rate Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Company pursuant to
Section 2.17, then, in any such event, the Company shall compensate each Lender
for the loss, cost and expense attributable to such event. In the case of a
Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBO Rate that would have been
applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure
to borrow, convert or continue, for the period that would have been the Interest
Period for such Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which such Lender
would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurocurrency
market. A certificate of any Lender setting forth any amount or amounts that
such Lender is entitled to receive pursuant to this Section shall be delivered
to the Company and shall

 

30

be conclusive absent manifest error. The Company shall
pay such Lender the amount shown as due on any such certificate within 15 days
after receipt thereof.

     SECTION 2.15. Taxes. (a) Each payment by a Borrower to or for the account of a
Lender hereunder or under any Loan Document shall be made without deduction for
any Taxes or Other Taxes; provided that, if a Borrower shall be required by law
to deduct any Taxes or Other Taxes from such payment, (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)
such Lender receives an amount equal to the sum it would have received had no
such deduction been made, (ii) such Borrower shall make such deduction, (iii)
such Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law and (iv) such
Borrower shall promptly furnish to the Administrative Agent, at its address
specified in or pursuant to Section 10.01, the original or a certified copy of a
receipt evidencing payment thereof or other reasonably satisfactory evidence
thereof.

     (b)  The relevant Borrower shall indemnify each Lender for the full amount of any
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed or asserted (whether or not correctly) by any jurisdiction on amounts
payable under this Section) paid by such Lender with respect to amounts paid by
such Borrower pursuant to this Agreement or any Loan Document, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto. This indemnification shall be paid within 15 days after the later of
the date such Lender makes demand therefor and the date such payment is made.

     (c)  Each Lender organized under the laws of a jurisdiction outside the United
States, before it signs and delivers this Agreement in the case of each Lender
listed on the signature pages hereof and before it becomes a Lender in the case
of each other Lender, and from time to time thereafter if requested in writing
by the Company (but only so long as such Lender remains lawfully able to do so),
shall provide the Company and the Administrative Agent with Internal Revenue
Service form W-8BEN or W-8ECI in duplicate, as appropriate, or any successor
form prescribed by the Internal Revenue Service, certifying that such Lender is
entitled to benefits under an income tax treaty to which the United States is a
party which exempts such Lender from United States withholding tax or reduces
the rate of withholding tax on payments of interest for the account of such
Lender or certifying that the income receivable by it pursuant to this Agreement
is effectively connected with the conduct of a trade or business in the United
States.

     (d)  For any period with respect to which a Lender has failed to provide the
Company or the Administrative Agent with the appropriate form as required by
paragraph (c) above (unless such failure is due to a change in treaty, law or
regulation occurring after the date on which such form originally was required
to be provided or results from the Company’s failure to make a timely written
request pursuant to paragraph (c) above), such Lender shall not be entitled to
indemnification under paragraphs (a) or (b) above with respect to Taxes imposed
by the United States; provided that if a Lender, which is otherwise exempt from
or subject to a reduced rate of withholding tax, becomes subject to Taxes
because of its failure to deliver a form required hereunder, the Borrowers shall
take such steps as such Lender shall reasonably request to assist such Lender to
recover such Taxes.

 

31

     SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a)
Each Borrower shall make each payment required to be made by it hereunder or
under any other Loan Document (whether of principal, interest, fees, or of
amounts payable under Section 2.13, 2.14 or 2.15, or otherwise) prior to 2:00
p.m., New York City time, on the date when due, in immediately available funds,
without set-off or counterclaim. All such payments shall be made to the
Administrative Agent to such account as it shall from time to time specify at
its offices at 270 Park Avenue, New York, New York, or, in any such case, at
such other address as the Administrative Agent shall from time to time specify
in a notice delivered to the Company; provided that payments pursuant to Section
2.13, Section 2.14, Section 2.15 and Section 10.03 shall be made directly to the
Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate
recipient promptly following receipt thereof. If any payment hereunder shall be
due on a day that is not a Business Day, the date for payment shall be extended
to the next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such extension.
All payments hereunder shall be made in Dollars.

     (b)  If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and fees
then due hereunder, such funds shall be applied (i) first, towards payment of
interest and fees then due hereunder, ratably among the parties entitled thereto
in accordance with the amounts of interest and fees then due to such parties,
and (ii) second, towards payment of principal then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal then
due to such parties.

     (c)  If any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Revolving Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Revolving Loans of other Lenders to the extent necessary
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 Revolving Loans; provided that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made
by any Borrower pursuant to and in accordance with the express terms of this
Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or
participant, other than to the Company or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph 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 set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

 

32

     (d)  Unless the Administrative Agent shall have received notice from the Company
prior to the date on which any payment is due to the Administrative Agent for
the account of the Lenders hereunder that the relevant 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, the amount due. In such event, if such
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender 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 greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation.

     (e)  If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.05(b) or 2.16(d), then the Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

     SECTION 2.17. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.13, 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 2.15, 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 2.13 or 2.15, as the case may be, in the future and
(ii) would not subject such Lender to any unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender.

     (b)  If any Lender requests compensation under Section 2.13, 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 2.15, or if any
Lender defaults in its obligation to fund Loans hereunder, 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
Section 10.04), all its interests, rights and obligations under the Loan
Documents (other than any outstanding Competitive Loans held by it) to an
assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Company
shall have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans (other than
Competitive Loans), accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Company (in the case of all
other amounts) and (iii) in the case of any such assignment resulting from a
claim for compensation under Section 2.13 or payments required to be made
pursuant to Section 2.15, such assignment will result in a reduction in such
compensation or payments. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver

 

33

by such Lender or otherwise, the circumstances entitling the Company to require such
assignment and delegation cease to apply.

     SECTION 2.18. Borrowing Subsidiaries. On or after the Effective Date, the
Company may designate any Subsidiary of the Company as a Borrowing Subsidiary by
delivery to the Administrative Agent of a Borrowing Subsidiary Agreement
executed by such Subsidiary and the Company, and upon such delivery such
Subsidiary shall for all purposes of this Agreement be a Borrowing Subsidiary
and a party to this Agreement until the Company shall have executed and
delivered to the Administrative Agent a Borrowing Subsidiary Termination with
respect to such Subsidiary, whereupon such Subsidiary shall cease to be a
Borrowing Subsidiary and a party to this Agreement. Notwithstanding the
preceding sentence, no Borrowing Subsidiary Termination will become effective as
to any Borrowing Subsidiary at a time when any principal of or interest on any
Loan to such Borrowing Subsidiary shall be outstanding hereunder, provided that
such Borrowing Subsidiary Termination shall be effective to terminate such
Borrowing Subsidiary’s right to make further Borrowings under this Agreement.
Promptly following receipt of any Borrowing Subsidiary Agreement, the
Administrative Agent shall send a copy thereof to each Lender.

     SECTION 2.19. Foreign Subsidiary Costs. (a) If the cost to any Lender of making
or maintaining any Loan to a Borrowing Subsidiary is increased (or the amount of
any sum received or receivable by any Lender (or its applicable lending office)
is reduced) by an amount deemed in good faith by such Lender to be material, by
reason of the fact that such Borrowing Subsidiary is incorporated in, or
conducts business in, a jurisdiction outside the United States, such Borrowing
Subsidiary shall indemnify such Lender for such increased cost or reduction
within 15 days after demand by such Lender (with a copy to the Administrative
Agent). A certificate of such Lender claiming compensation under this paragraph
and setting forth the additional amount or amounts to be paid to it hereunder
(and the basis for the calculation of such amount or amounts) shall be
conclusive in the absence of manifest error.

     (b)  Each Lender will promptly notify the Company and the Administrative Agent of
any event of which it has knowledge that will entitle such Lender to additional
interest or payments pursuant to paragraph (a) above, but in any event within 45
days after such Lender obtains actual knowledge thereof; provided that (i) if
any Lender fails to give such notice within 45 days after it obtains actual
knowledge of such an event, such Lender shall, with respect to compensation
payable pursuant to this Section 2.19 in respect of any costs resulting from
such event, only be entitled to payment under this Section 2.19 for costs
incurred from and after the date 45 days prior to the date that such Lender does
give such notice and (ii) each Lender will designate a different applicable
lending office, if, in the judgment of such Lender, such designation will avoid
the need for, or reduce the amount of, such compensation and will not be
otherwise disadvantageous to such Lender.

 

34

ARTICLE III

Representations and Warranties

     The Company represents and warrants to the Lenders that:

     SECTION 3.01. Organization; Powers. The Company and each Borrowing Subsidiary is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry
on its business as now conducted and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

     SECTION 3.02. Authorization; Enforceability. The Transactions are within each
Borrower’s corporate powers and have been duly authorized by all necessary
corporate and, if required, stockholder action. This Agreement has been duly
executed and delivered by each Borrower and constitutes, and each other Loan
Document to which any Borrower is to be a party, when executed and delivered by
such Borrower, will constitute, a legal, valid and binding obligation of such
Borrower, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

     SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions require no
action by or in respect of, or filing with, any governmental body, agency or
official (other than (i) Exchange Act reporting requirements and (ii) actions
which have been taken, and filings which have been made, and are in full force
and effect) and do not and will not contravene, or constitute a default under,
any provision of applicable law or regulation or of the Amended Articles of
Incorporation or Regulations (or comparable documents) of the Company or any
Borrowing Subsidiary or of any agreement for borrowed money or other material
agreement binding upon the Company or any Borrowing Subsidiary.

     SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Company
has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for the
fiscal year ended December 31, 2000, reported on by Ernst & Young LLP,
independent public accountants, and (ii) as of and for the fiscal quarter and
the portion of the fiscal year ended September 30, 2001. Such financial
statements present fairly, in all material respects, the financial position and
results of operations and cash flows of the Company and the consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP,
subject to year-end audit adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above.

     (b)  As of the date of this Agreement, there has been no material adverse change
in the business, financial position or results of operations of the Company and
the consolidated Subsidiaries, taken as a whole, since December 31, 2000.

 

35

     SECTION 3.05. Litigation and Environmental Matters. (a) As of the date of this
Agreement, there are no material legal proceedings, other than ordinary routine
litigation incidental to the business, to which the Company or any of the
consolidated Subsidiaries is a party or to which any of their respective
properties is subject that are required to be disclosed in the Company’s
periodic reports under the Exchange Act and that have not been so disclosed or
that involve this Agreement, any other Loan Document or the Transactions.

     (b)  The Company has established accruals for matters that are probable and
reasonably estimable as required by FASB Statement No. 5, “Accounting for
Contingencies.” To the Company’s knowledge, any liability that may result from
the resolution of known environmental matters in excess of amounts accrued
therefor will not have a Material Adverse Effect.

     SECTION 3.06. Investment and Holding Company Status. Neither the Company nor any
of the Borrowing Subsidiaries is (a) an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940 or (b) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

     SECTION 3.07. Taxes. As of the date of this Agreement, the Company and the
consolidated Subsidiaries have timely filed or caused to be filed all material
Tax returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which the Company or
such Subsidiary, as applicable, has set aside on its books adequate reserves or
(b) to the extent that the failure to do so could not reasonably be expected to
result in a Material Adverse Effect.

     SECTION 3.08. ERISA. As of the date of this Agreement, no ERISA Event has
occurred or is reasonably expected to occur that, when taken together with all
other such ERISA Events for which liability is reasonably expected to occur,
could reasonably be expected to result in a Material Adverse Effect. As of the
date of this Agreement, each member of the controlled group of corporations (as
defined in Section 414(b) of the Code) which includes the Company has fulfilled
its obligations under the minimum funding standards of ERISA and the Code with
respect to each defined benefit plan maintained by the Company and the
consolidated Subsidiaries.

ARTICLE IV

Conditions

     SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with Section 10.02):

		
	 	     (a) The Administrative Agent (or its counsel) shall have received from each
party hereto either (i) a counterpart of this Agreement signed on
behalf of such party or (ii) written evidence satisfactory to the
Administrative Agent (which may include telecopy

 

36

		
	 	transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement.

		
	 	     (b) The Administrative Agent shall have received the favorable written
opinions (addressed to the Administrative Agent and the Lenders and
dated the Effective Date) of the General Counsel of the Company,
substantially in the form of Exhibit C, and covering such other matters
relating to the Borrowers, this Agreement, the other Loan Documents or
the Transactions as the Administrative Agent or the Required Lenders
shall reasonably request. The Borrowers hereby request such counsel to
deliver such opinion.
	 
	 	     (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of
each of the Borrowers, the authorization of the Transactions and any
other legal matters relating to the Borrowers, this Agreement, the
other Loan Documents or the Transactions, all in form and substance
satisfactory to the Administrative Agent and its counsel.
	 
	 	     (d) The Administrative Agent shall have received a certificate, dated the
Effective Date and signed by the President, a Vice President or a
Financial Officer of the Company, confirming compliance with the
conditions set forth in paragraphs (a) and (b) of Section 4.02.
	 
	 	     (e) The Administrative Agent shall have received all fees and other amounts
due and payable on or prior to the Effective Date, including, to the
extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Company hereunder or under any
other Loan Document.
	 
	 	     (f) The Existing Credit Agreement shall have been terminated and all
amounts outstanding or accrued for the accounts of or otherwise owed to
the lenders thereunder shall have been paid in full.

The Administrative Agent shall notify the Company and the Lenders of the
Effective Date, and such notice shall be conclusive and binding. Notwithstanding
the foregoing, the obligations of the Lenders to make Loans hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 10.02) on or prior to January 22, 2002 (and, in the event
such conditions are not so satisfied or waived, the Commitments shall terminate
at such time).

     SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing is subject to the
satisfaction of the following conditions:

		
	 	     (a) The representations and warranties of the Borrowers set forth in this
Agreement shall be true and correct on and as of the date of such
Borrowing (except that, in the case of the representations and
warranties set forth in Section 3.04(b), Section 3.05, Section 3.07 and
Section 3.08, such representations and warranties shall be true and
correct on and as of the date of this Agreement).

 

37

		
	 	     (b) At the time of and immediately after giving effect to such Borrowing, no
Default shall have occurred and be continuing.

Each Borrowing shall be deemed to constitute a representation and warranty by
the Borrowers on the date thereof as to the matters specified in paragraphs (a)
and (b) of this Section.

     SECTION 4.03. Initial Credit Event for each Borrowing Subsidiary The obligation
of each Lender to make Loans to any Borrowing Subsidiary is subject to the
satisfaction of the following conditions:

		
	 	     (a) The Administrative Agent (or its counsel) shall have received such
Borrowing Subsidiary’s Borrowing Subsidiary Agreement duly executed by
all parties thereto.
	 
	 	     (b) The Administrative Agent shall have received a favorable written
opinion of counsel for such Borrowing Subsidiary reasonably
satisfactory to the Administrative Agent, substantially in the form of
Exhibit D and covering such other matters relating to such Borrowing
Subsidiary or its Borrowing Subsidiary Agreement as the Administrative
Agent shall reasonably request.
	 
	 	     (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of
such Borrowing Subsidiary, the authorization of the Transactions
insofar as they relate to such Borrowing Subsidiary and any other legal
matters relating to such Borrowing Subsidiary, its Borrowing Subsidiary
Agreement or such Transactions, all in form and substance satisfactory
to the Administrative Agent and its counsel.

ARTICLE V

Affirmative Covenants

     Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full, the Company covenants and agrees with the Lenders that:

     SECTION 5.01. Financial Statements and Other Information. The Company will furnish to the Administrative Agent and each Lender:

		
	 	     (a) promptly upon the availability thereof and in any event within 120 days
after each fiscal year, a copy of the Company’s Annual Report to
Shareholders and its Annual Report on Form 10-K for the fiscal year
then ended, as filed with the Securities and Exchange Commission and
which will include an annual audit report of the Company, prepared on a
consolidated basis and in accordance with the Company’s then current
method of accounting, which method must be in accordance with GAAP,
duly certified by independent certified public accountants of
nationally recognized standing selected by the Company;

 

38

		
	 	     (b) promptly upon the availability thereof and in any event within 60 days
after each fiscal quarter (except the last fiscal quarter) of each
fiscal year, a copy of the Company’s Quarterly Report on Form 10-Q for
the fiscal quarter then ended, as filed with the Securities and
Exchange Commission;
	 
	 	     (c) contemporaneously with the furnishing of a copy of each Annual Report
on Form 10-K provided for in paragraph (a) and of each Quarterly Report
on Form 10-Q provided for in paragraph (b), a duly completed
certificate of a Financial Officer of the Company in the form of
Exhibit E (each such certificate called a “Compliance Certificate”),
showing compliance with the covenants set forth in Sections 6.07 and
6.08, and certifying that no Default or Event of Default has occurred
and is continuing or, if there is any such an event, describing it and
the steps, if any, being taken to cure it;
	 
	 	     (d) within five Business Days after any Financial Officer obtains knowledge
of any Default, if such Default is then continuing, a certificate of a
Financial Officer setting forth the details thereof and the action
which the Company is taking or proposes to take with respect thereto;
	 
	 	     (e) promptly upon the filing thereof, copies of each Current Report on Form 8-K filed by the Company with the SEC; and
	 
	 	     (f) from time to time such additional information concerning the Company as
the Administrative Agent, at the request of any Lender, may reasonably
request.

Information required to be delivered pursuant to paragraph (a), (b) or (e) above
shall be deemed to have been delivered on the date on which the Company provides
notice to the Lenders that such information has been posted on the Company’s
website on the internet at the website address listed on the signature pages
hereof, at sec.gov/edaux/searches. htm or at another website identified in such
notice and accessible by the Lenders without charge; provided that (i) such
notice may be included in a certificate delivered pursuant to paragraph (c)
above and (ii) the Company shall deliver paper copies of the information
referred to in paragraph (e) above to any Lender which requests such delivery.

     SECTION 5.02. Existence; Conduct of Business. The Company will, and will cause
each of the Borrowing Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business; provided that the foregoing shall not prohibit
any merger, consolidation, liquidation or dissolution permitted under Section
6.04.

     SECTION 5.03. Use of Proceeds. The Borrowers will use the proceeds of the Loans
only for general corporate purposes, including commercial paper backup and the
financing of acquisitions. No part of the proceeds of any Loan will be used,
whether directly or indirectly, for any purpose that entails a violation of any
of the Regulations of the Board, including Regulations U and X.

 

39

ARTICLE VI

Negative Covenants

     Until the Commitments have expired or terminated and the
principal of and interest on each Loan and all fees payable hereunder have been
paid in full, the Company covenants and agrees with the Lenders that:

     SECTION 6.01. Indebtedness of Subsidiaries. The Company will not permit the sum
of (a) the aggregate outstanding principal amount of Indebtedness of
Subsidiaries (other than Permitted Subsidiary Indebtedness) and (b) Specified
Company Indebtedness at any time to exceed 15% of Consolidated Net Assets.

     SECTION 6.02. Mortgages. The Company will not, and will not permit any Domestic
Subsidiary to, directly or indirectly, create or assume any mortgage,
encumbrance, lien, pledge, charge, or security interest of any kind
(collectively and individually, a “Mortgage”) upon or in any of its interests in
any Principal Property or upon or in any shares of capital stock or Indebtedness
of any Domestic Subsidiary, whether such interest, capital stock or Indebtedness
is now owned or hereafter acquired, if such mortgage secures or is intended to
secure, directly or indirectly, the payment of any Indebtedness; excluding,
however, from the operation of this Section 6.02:

		
	 	     (a) Mortgages on any Principal Property acquired, constructed, or improved by the Company or any Domestic Subsidiary after
January 1, 2000, which are created or assumed contemporaneously with, or within 120 days after, such acquisition or
completion of such construction or improvement to secure or provide for the payment of any part of the purchase price of
such Principal Property or the cost of such construction or improvement incurred after January 1, 2000, or, in addition to
Mortgages contemplated by clauses (b) and (c) below, Mortgages on any such Principal Property existing at the time or placed
thereon at the time of acquisition or leasing thereof by the Company or any Domestic Subsidiary, or conditional sales
agreements or other title retention agreements with respect to any Principal Property now owned or leased or hereafter
acquired or leased by the Company or a Domestic Subsidiary;
	 
	 	     (b) Mortgages on property (including shares of capital stock or
Indebtedness of a corporation) of a corporation existing at the time
such corporation becomes a Domestic Subsidiary or is merged or
consolidated with the Company or a Domestic Subsidiary or existing at
the time of a sale, lease, or other disposition of the properties of
such corporation (or a division thereof) or other Person as an entirety
or substantially as an entirety (which includes the sale, lease, or
other disposition of all or substantially all the assets thereof) to
the Company or a Domestic Subsidiary, provided that no such Mortgage
shall extend to any other Principal Property of the Company or any
Domestic Subsidiary or to any shares of capital stock or any
Indebtedness of any Domestic Subsidiary;

 

40

		
	 	     (c) Mortgages created by the Company or a Domestic Subsidiary to secure Indebtedness of the Company or a Domestic Subsidiary to
the Company or to a wholly owned Subsidiary;
	 
	 	     (d) Mortgages in favor of the United States of America or any State,
territory or possession thereof, or any foreign country or any
department, agency, instrumentality, or political subdivision of any of
such domestic or foreign jurisdictions to secure partial, progress,
advance or other payments pursuant to any contract or statute or to
secure any Indebtedness incurred for the purpose of financing all or
any part of the purchase price of, or the cost of constructing, the
property subject to such Mortgages;
	 
	 	     (e) Mortgages for the sole purpose of extending, renewing, or replacing (or
successively extending, renewing, or replacing) in whole or in part any
mortgage existing on January 1, 2000, or referred to in the foregoing
clauses (a) to (d) inclusive or of any Indebtedness secured thereby;
provided, however, that the principal amount of Indebtedness secured
thereby shall not exceed the principal amount of Indebtedness so
secured at the time of such extension, renewal, or replacement and that
such extension, renewal, or replacement Mortgage shall be limited to
all or a part of the property which secured the Mortgage so extended,
renewed, or replaced (plus improvements on such property);
	 
	 	     (f) Mortgages on Margin Stock, if and to the extent that the value of such Margin Stock exceeds 25% of the total assets of the
Company and its Subsidiaries subject to this Section;
	 
	 	     (g) Mortgages under which effective provision is made for all Loans to be
secured equally and ratably with any other Indebtedness secured,
directly or indirectly, thereby; and
	 
	 	     (h) Mortgages (other than Mortgages permitted by any of the foregoing
clauses) if, at the time of creation or assumption thereof and after
giving effect thereto, the aggregate principal amount of (i) the
Indebtedness secured by such Mortgages and (ii) the Attributable
Indebtedness related to Sale and Leaseback Transactions permitted under
clause (b) of Section 6.03 does not exceed 5% of Consolidated Net
Assets, determined as of a date not more than 95 days prior to such
creation or assumption.

     SECTION 6.03. Sale and Lease-Back Transactions. (a) The Company will not, and
will not permit any Domestic Subsidiary to, sell, lease or transfer any
Principal Property owned by the Company or a Domestic Subsidiary as an entirety,
or any substantial portion thereof, to anyone other than a Wholly Owned Domestic
Subsidiary (or the Company or a Wholly Owned Domestic Subsidiary in the case of
a Domestic Subsidiary) with the intention of taking back a lease of such
property (herein referred to as a “Sale and Leaseback Transaction”) except a
lease for a period of not more than 36 months by the end of which it is intended
that the use of such property by the lessee will be discontinued; provided, that
notwithstanding the foregoing, the Company or any Domestic Subsidiary may sell
any such property and lease it back if the net proceeds of such sale are at
least equal to the fair value (as determined by resolution adopted by the Board
of Directors of the Company) of such property, and (i) the

 

41

Company or such
Domestic Subsidiary would be entitled pursuant to paragraphs (a)-(g) of Section
6.02 to create Indebtedness secured by a Mortgage on the property to be leased
in an amount equal to the Attributable Debt with respect to such Sale and
Leaseback Transaction without equally and ratably securing all the Loans, or
(ii) if such sale or transfer does not come within the exception provided by the
preceding clause (i), the net proceeds of such sale shall, and in any such case
the Company covenants that they will, within 120 days after such sale, be
applied (to the greatest extent possible) either to the repayment of the Loans
then outstanding when due (whereupon the Commitments shall be reduced, on a pro
rata basis, to the extent that such net proceeds are so applied) or to the
retirement of Consolidated Funded Debt of the Company ranking at least on a
parity with the Loans, or in part to one or more of such alternatives and in
part to another.

     (b)  Notwithstanding the provisions of paragraph (a) above, the Company and/or
any Domestic Subsidiary may enter into Sale and Leaseback Transactions if, at
the time of such entering into, and after giving effect thereto, the aggregate
amount of (i) Attributable Indebtedness related to such Sale and Leaseback
Transactions and (ii) Indebtedness secured by Mortgages permitted under clause
(h) of Section 6.02 does not exceed 5% of Consolidated Net Assets, determined as
of a date not more than 95 days prior to such creation or assumption.

 

42

     SECTION 6.04. Fundamental Changes. The Company will not merge into or
consolidate with any other Person, or permit any other Person to merge into or
consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired), or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Default shall have occurred and be continuing (i) any Person may merge into
the Company in a transaction in which the Company is the surviving corporation
and (ii) the Company may merge into or consolidate with any other Person in a
transaction the primary purpose of which is to effect a reincorporation of the
Company under the laws of another state.

     SECTION 6.05. ERISA. The Company will not allow an ERISA Event to occur that,
when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect.

     SECTION 6.06. Change in Control. The Company will not permit to occur any Change in Control.

     SECTION 6.07. Interest Coverage Ratio. The Company will not permit the ratio of
(a) Consolidated EBITDA to (b) Consolidated Interest Expense, in each case for
any period of four consecutive fiscal quarters ending on or after December 31,
2000, to be less than 3.00 to 1.00.

     SECTION 6.08. Minimum Consolidated Net Worth. The Company will not permit
Consolidated Net Worth to be less, at any date, than the sum of (i)
$1,600,000,000, (ii) 50% of Consolidated Net Income for each completed fiscal
quarter of the Company that shall have begun after December 31, 1999 (excluding
any fiscal quarter for which Consolidated Net Income is negative), and (iii) 50%
of the amount by which Consolidated Net Worth is increased after December 31,
1999 as a result of issuances of equity securities by the Company.

ARTICLE VII

Events of Default

		
	 	     If any of the following events (“Events of Default”) shall
occur:
	 
	 	     (a) default in the payment when due of any principal of any Loan or default
in the payment when due of interest on any Loan or fees payable by any
Borrower hereunder and continuance of such failure to pay interest or
fees for five Business Days after written notice thereof to the Company
from the Administrative Agent at the request of the Lender to which
such amounts are owed;
	 
	 	     (b) a default in the payment when due at maturity or on the date of any required prepayment, redemption or repurchase (subject
to any applicable grace period) or by acceleration of any Material Indebtedness, or a default in the performance or
observance of any obligation or condition with respect to any Material Indebtedness if such default results in the
acceleration of the maturity of such Material Indebtedness; provided that, if

 

43

		
	 	any such default shall subsequently be
remedied, cured, or waived prior to either the termination of the Commitments or the declaration that all Loans are
immediately due and payable, in each case pursuant to this Article VII, and as a result the payment of such Material
Indebtedness is no longer due, the Event of Default existing hereunder by reason thereof shall likewise be deemed thereupon
to be remedied, cured, or waived and no longer in existence, all without any further action by the parties hereto;
	 
	 	     (c) the Company or any Material Subsidiary generally fails to pay, or admits in writing its inability to pay, debts as they
become due; or the Company or any Material Subsidiary applies for, consents to, or acquiesces in the appointment of, a
trustee, receiver, or other custodian for the Company or any Material Subsidiary or for a substantial part of the property
thereof, or makes a general assignment for the benefit of creditors; or, in the absence of such application, consent or
acquiescence, a trustee, or receiver, or other custodian is appointed for the Company or any Material Subsidiary or for a
substantial part of the property of the Company or any Material Subsidiary; or any bankruptcy, reorganization, debt
arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation
proceeding is commenced in respect of the Company or any Material Subsidiary and if such case or proceeding is not commenced
by the Company or any Material Subsidiary, it is consented to or acquiesced in by the Company or any Material Subsidiary or
remains for 90 consecutive days undismissed or unstayed; or the Company or any Material Subsidiary takes any corporate
action to authorize any of the foregoing;
	 
	 	     (d) failure by the Company to comply with or to perform in any material
respect any provision of this Agreement (provided that in the case of
the provisions of Article VI, the preceding standard shall be applied
without regard to materiality) (which failure does not constitute an
Event of Default under any of the preceding subsections of this Article
VII) and, in the case of any provision contained in Article V or in
Section 6.01, 6.02, 6.03 or 6.05, continuance of such failure for 30
days after written notice thereof to the Company from the
Administrative Agent at the request of Required Lenders;
	 
	 	     (e) any representation or warranty made by the Company in Article III of
this Agreement or by any other Borrower in the applicable Borrowing
Subsidiary Agreement is breached or is incorrect when made (or deemed
made) in any material respect and, with respect to any representation
or warranty other than those contained in Sections 3.04(b), 3.05, 3.07
and 3.08, the Company shall fail to take corrective actions reasonably
satisfactory to the Required Lenders within 30 days after written
notice thereof to the Company from the Administrative Agent at the
request of the Required Lenders;
	 
	 	     (f) any final and nonappealable judgment or order from a judicial or
administrative body (which order or judgment is fully enforceable
against the Company or a Borrowing Subsidiary, as the case may be, in
courts of the United States of America or any state thereof) for the
payment of money in excess of $100,000,000 (after adjustments to
reflect reductions for credits and set-offs asserted in good faith by
the Company or such Borrowing Subsidiary) shall be rendered against the
Company or a Borrowing Subsidiary, shall not have been discharged or
vacated and shall have been in effect, in its final and unappealable
form, for a period of 30 consecutive days;

 

44

		
	 	     (g) the Guarantee of the Company set forth in Article IX shall cease at any
time to be in full force and effect, or any party hereto (other than a
Lender) shall so assert in writing;

then, and in every such event (other than an event with respect to any Borrower
described in clause (c) of this Article), and at any time thereafter during the
continuance of such event, the Administrative Agent, at the request of the
Required Lenders, shall, by notice to the Company, take either or both of the
following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrowers accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by each Borrower; and in case of any
event with respect to any Borrower described in clause (c) of this Article, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other
obligations of the Borrowers accrued hereunder, shall automatically become due
and payable, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by each Borrower.

     The Administrative Agent shall give notice to the Company (i)
under paragraph (a) above promptly upon being requested to do so by the relevant
Lender and (ii) under paragraphs (d) and (e) above promptly upon being requested
to do so by the Required Lenders and, in each case, after having done so, shall
notify all the Lenders thereof.

ARTICLE VIII

The Administrative Agent

     In order to expedite the transactions contemplated by this
Agreement, JPMorgan is hereby appointed to act as Administrative Agent on behalf
of the Lenders. Each of the Lenders and each assignee of any such Lender hereby
irrevocably authorizes the Administrative Agent to take such actions on behalf
of such Lender or assignee and to exercise such powers as are delegated to the
Administrative Agent by the terms of the Loan Documents, together with such
actions and powers as are reasonably incidental thereto.

     With respect to the Loans made by it hereunder, the
Administrative Agent in its individual capacity and not as Administrative Agent
shall have the same rights and powers as any other Lender and may exercise the
same as though it were not the Administrative Agent, and the Administrative
Agent and its Affiliates in their respective individual capacities may accept
deposits from, lend money to and generally engage in any kind of business with
the Company or any Subsidiary or other Affiliate thereof as if it were not the
Administrative Agent.

 

45

     The Administrative Agent shall not have any duties or
obligations except those expressly set forth in the Loan Documents. Without
limiting the generality of the foregoing, (a) the Administrative Agent shall not
be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Administrative Agent shall not
have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated by the
Loan Documents that the Administrative Agent is required to exercise in writing
by the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 10.02), and
(c) except as expressly set forth in the Loan Documents, the Administrative
Agent shall not have any duty to disclose, and the Administrative Agent shall
not be liable for the failure to disclose, any information relating to the
Company or any of its Subsidiaries that is communicated to or obtained by the
institution serving as 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 with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 10.02) or in the absence of its own
culpable negligence, bad faith or willful misconduct. The Administrative Agent
shall not be deemed to have knowledge of any Default other than a Default of the
types specified in clause (a) and (b) of Article VII unless and until written
notice thereof is given to the Administrative Agent by a Borrower or a Lender,
and 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 the Loan Documents, (ii) the contents of any certificate,
report or other document delivered hereunder or in connection herewith, (iii)
the performance or observance of any of the covenants, agreements or other terms
or conditions set forth herein or therein, (iv) the validity, enforceability,
effectiveness or genuineness of the Loan Documents or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere herein or elsewhere in any Loan Document, other than to
confirm receipt of items expressly required to be delivered to the
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 believed
by it in good faith to be genuine and to have been signed or sent by the proper
Person. The Administrative Agent also may rely upon any statement made to it
orally or by telephone and believed by it in good faith to be made by the proper
Person, and shall not incur any liability for relying thereon. The
Administrative Agent may consult with legal counsel (who may be counsel for any
Borrower), 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.

     The Administrative Agent may perform any and all its duties
and exercise its rights and powers 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 its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs 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.

 

46

     Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders and the Company. Upon any such
resignation, the Required Lenders shall have the right, in consultation with the
Company, to appoint a successor. If no 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, appoint a
successor Administrative Agent which shall be a bank with an office in New York,
New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. 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 Administrative Agent’s resignation hereunder, the
provisions of this Article and Section 10.03 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 it was acting as Administrative Agent.

     Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender 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 also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender 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
or any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

     None of the Syndication Agent or the Co-Documentation Agents,
in their capacities as such, shall have any duties or obligations of any kind
under this Agreement.

ARTICLE IX

Guarantee

     The Company hereby unconditionally, absolutely and irrevocably
guarantees, as primary obligor and not merely as surety, the repayment to each
Lender, when due pursuant to the terms and conditions of this Agreement, of the
amount of any Loan made pursuant to this Agreement to a Borrowing Subsidiary,
together with accrued interest on such Loan, at the place and in the currency
and manner specified in this Agreement; provided, however, that before any
amount shall be deemed due and payable pursuant to this Guarantee, the
Administrative Agent must first give notice to the Company of the nonpayment
thereof by the Borrowing Subsidiary at the request of the relevant Lender, and
the Company shall have five Business Days from the receipt of such notice to
cure or cause to be cured any and all such nonpayments. The Company’s
obligations hereunder constitute a guaranty of payment and not of collection
merely.

 

47

The Company hereby waives notice of, and consents to, any extensions of
time of payment, renewals, compromises, settlements, releases or other
indulgences from time to time granted by the Lenders in respect of Loans made to
Borrowing Subsidiaries. Except as otherwise provided in this Article IX, the
Company hereby waives presentment, protest, demand of payment, notice of
dishonor and all notices and demands whatsoever. The obligations of the Company
hereunder shall not be released, discharged or otherwise affected by (i) any
change in the corporate existence or constitution, structure or ownership of any
Borrowing Subsidiary or the Company, (ii) any insolvency, bankruptcy,
reorganization or similar proceeding affecting the Borrowing Subsidiary or its
assets or the Company or (iii) the existence of any claim, set-off or other
rights which the Company may have at any time against any Lender or any other
Person. If at any time any payment of any obligation guaranteed hereunder is
rescinded or must otherwise be restored or returned upon the insolvency,
bankruptcy or reorganization of a Borrowing Subsidiary or otherwise, the
Company’s obligations under this Article IX with respect to such payment shall
be reinstated at such time as though such payment had not been made. If
acceleration of the time for payment of any amount payable by any Borrowing
Subsidiary under this Agreement or its Loans is stayed upon any bankruptcy,
insolvency or reorganization of such Borrowing Subsidiary or otherwise, all such
amounts otherwise subject to acceleration under the terms of this Agreement
shall nonetheless be payable by the Company pursuant to this Article IX in
accordance with the terms hereof. The Company shall not exercise any of its
subrogation rights with respect to amounts paid to a Lender pursuant to this
Article IX until all amounts guaranteed hereunder payable to any Lender have
been paid in full and the Commitments have terminated. Following such payment in
full and termination of the Commitments, the Company shall be entitled to
subrogation in the Lenders’ rights and, upon the reasonable request of the
Company, each Lender agrees to cooperate with the Company in enforcement of the
Company’s subrogation rights, including the transfer and delivery by such Lender
to the Company of any and all related evidence of indebtedness within the
possession or control of such Lender.

     The Administrative Agent shall give notice to the Company
pursuant to the proviso set forth in the first sentence of this Article promptly
upon being requested to do so by the relevant Lender.

ARTICLE X

Miscellaneous

     SECTION 10.01. Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, 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 telecopy, as follows:

		
	 	     (a) if to any Borrower, to it in care of the Company at 1900 Richmond Road, Cleveland, Ohio 44124, Attention of Ronald P. Vargo,
Vice President and Treasurer (Telecopy No. (216) 291-7831), with a copy to TRW Inc., 1900 Richmond Road, Cleveland, Ohio
44124, Attention of Secretary (Telecopy No. (216) 291-7070);

 

48

		
	 	     (b) if to the Administrative Agent, to JPMorgan Chase Bank, Loan and Agency Services Group, One Chase Manhattan Plaza, 8th
Floor, New York, New York 10081, Attention of Jesus Sang (Telecopy No. (212) 552-5650), with a copy to JPMorgan Chase Bank,
270 Park Avenue, New York 10017, Attention of Karen May Sharf (Telecopy No. (212) 270-5127); and
	 
	 	     (c) if to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

     SECTION 10.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder or
under any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Administrative Agent and the Lenders hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or
remedies that they would otherwise have. No waiver of any provision of any Loan
Document or consent to any departure by any Borrower therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) of this
Section, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent or any Lender may have
had notice or knowledge of such Default at the time.

     (b)  Neither this Agreement nor any of the Loan Documents nor any provision
hereof or thereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Company and the Required
Lenders or by the Company and the Administrative Agent with the consent of the
Required Lenders (and, in the case of a Borrowing Subsidiary Agreement, the
applicable Borrowing Subsidiary); provided that no such agreement shall (i)
increase the Commitment of any Lender without the written consent of such
Lender, (ii) reduce the principal amount of any Loan or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the scheduled date of
payment of the principal amount of any Loan, or any interest thereon, or any
fees payable hereunder, or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date of expiration of any Commitment, without
the written consent of each Lender affected thereby, (iv) change Section 2.16(b)
or (c) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, or (v) change any of the
provisions of this Section or the definition of “Required Lenders” or any other
provision of any Loan Document specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or

 

49

duties of the Administrative Agent hereunder
without the prior written consent of the Administrative Agent.

     SECTION 10.03. Expenses; Indemnity; Damage Waiver. (a) 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
Cravath, Swaine & Moore, counsel for the Administrative Agent, in connection
with the syndication of the credit facilities provided for herein, the
preparation and administration of this Agreement or the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof (whether or
not the transactions contemplated hereby or thereby shall be consummated) and
(ii) all out-of-pocket expenses incurred by the Administrative Agent or any
Lender, including the reasonable fees, charges and disbursements of any counsel
for the Administrative Agent or any Lender, in connection with the enforcement
or protection of its rights in connection with any Loan Document, including its
rights under this Section, or in connection with the Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans.

     (b)  The Company agrees to indemnify each Lender, their respective Affiliates and
the respective directors, officers, agents and employees of the foregoing (each
an “Indemnitee”) and hold each Indemnitee harmless from and against any and all
losses, damages, liabilities, costs and related expenses of any kind, including,
without limitation, reasonable fees and disbursements of counsel, which may be
incurred by such Indemnitee in connection with any investigative, administrative
or judicial proceeding (whether or not such Indemnitee shall be designated a
party thereto) brought or threatened relating to or arising out of this
Agreement or any actual or proposed use of proceeds of Loans hereunder; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, damages, liabilities, costs or related expenses are found by a
final, nonappealable judgment of a court of competent jurisdiction to have
resulted from the culpable negligence, bad faith or willful misconduct of such
Indemnitee.

     (c)  To the extent that the Company fails to pay any amount required to be paid
by it to the Administrative Agent or any sub-agent appointed pursuant to Article
VIII under paragraph (a) or (b) of this Section, each Lender severally agrees to
pay to the Administrative Agent 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 in its capacity
as such.

     (d)  To the extent permitted by applicable law, no Borrower shall assert, and
each Borrower 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, any Loan or the use of the proceeds
thereof.

 

50

     (e)  All amounts due under this Section shall be payable promptly after written
demand therefor.

     SECTION 10.04. Successors and Assigns. (a) 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 each Lender (and any attempted assignment or
transfer by any Borrower without such consent 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 and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

     (b)  Any Lender may assign to one or more assignees all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it); provided that (i) except in
the case of an assignment to an Affiliate of that Lender, each of the Company
and the Administrative Agent must give their prior written consent to such
assignment (which consent shall not be unreasonably withheld or delayed), (ii)
except in the case of an assignment to an Affiliate of that Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment,
the amount of the Commitment of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect
to such assignment is delivered to the Administrative Agent) shall not be less
than $10,000,000 unless each of the Company and the Administrative Agent
otherwise consent, (iii) 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, except that this clause (iii) shall not apply to rights in
respect of outstanding Competitive Loans, (iv) the parties to each assignment
shall execute and deliver to the Administrative Agent an Assignment and
Acceptance, together with a processing and recordation fee of $3,500, and (v)
the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire; and provided further that any consent of
the Company otherwise required under this paragraph shall not be required if an
Event of Default under clause (c) of Article VII has occurred and is continuing.
Subject to acceptance and recording thereof pursuant to paragraph (d) of this
Section, from and after the effective date specified in each Assignment and
Acceptance the assignee thereunder shall be a party hereto and, to the extent of
the interest assigned by such Assignment and Acceptance, 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
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance 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 2.13,
2.14, 2.15 and 10.03, insofar as claims under such sections arise out of the
period prior to the effective date of such Assignment and Acceptance). Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph 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 paragraph (e) of this Section.

 

51

     (c)  The Administrative Agent, acting for this purpose as an agent of each
Borrower, shall maintain at one of its offices in The City of New York a copy of
each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans 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 the
Company and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

     (d)  Upon its receipt of a duly completed Assignment and Acceptance executed by
an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance
and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Agreement unless it has been recorded in
the Register as provided in this paragraph.

     (e)  Any Lender may, without the consent of any Borrower or the Administrative
Agent sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under
this Agreement (including all or a portion of its Commitment and the 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 and the other Lenders 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, modification or waiver
described in the first proviso to Section 10.02(b) that affects such
Participant. Subject to paragraph (f) of this Section, each Borrower agrees that
each Participant shall be entitled to the benefits of Sections 2.13, 2.14 and
2.15 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.

     (f)  A Participant shall not be entitled to receive any greater payment under
Section 2.13, 2.14 or 2.15 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 2.15 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 2.15(e) as
though it were a Lender.

 

52

     (g)  Any Lender may at any time pledge or assign a security interest in all or
any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

53

     SECTION 10.05. Survival. All covenants, agreements, representations and
warranties made by the Borrowers herein or in any other Loan Document and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and thereto and shall survive the
execution and delivery of this Agreement and any other Loan Document and the
making of any Loans, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that the Administrative Agent or any
Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder
(provided that any such knowledge of the Administrative Agent or any Lender will
not be attributed to any other Lender or the Administrative Agent for purposes
of this Section 10.05), and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any fee or any other
amount payable under this Agreement or any other Loan Document is outstanding
and unpaid and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.13, 2.14, 2.15 and 10.03 and Article VIII shall survive
and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Commitments or the termination of this Agreement or any other
Loan Document or any provision hereof or thereof.

     SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement, the other
Loan Documents and any separate letter agreements with respect to fees payable
to the Administrative Agent 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 which, when
taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 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.

     SECTION 10.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

     SECTION 10.08. SECTION 10.08. Right of Setoff If an Event of Default shall have
occurred and be continuing and the Required Lenders shall have requested the
Administrative Agent to declare the Loans immediately due and payable or such
Loans have automatically become due and payable, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other obligations at any time owing by such Lender or Affiliate to or for the
credit or

 

54

the account of any Borrower against any of and all the obligations of such
Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each
Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

     SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process.
(a) This Agreement shall be construed in accordance with and governed by the law
of the State of New York.

     (b)  Each Borrower hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of the Supreme Court of the State
of New York sitting in New York County and of the United States District Court
of the Southern District of New York, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to any Loan Document, or
for recognition or enforcement of any judgment, and each of the parties hereto
hereby 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 or,
to the extent permitted by 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 shall affect any
right that the Administrative Agent or any Lender may otherwise have to bring
any action or proceeding relating to this Agreement or any other Loan Document
against any Borrower or its properties in the courts of any jurisdiction.

     (c)  Each Borrower hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, 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 law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

     (d)  Each party to this Agreement irrevocably consents to service of process in
the manner provided for notices in Section 10.01. Nothing in this Agreement or
any other Loan Document will affect the right of any party to this Agreement to
serve process in any other manner permitted by law.

     SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY 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, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER

 

55

PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     SECTION 10.11. Headings. Article and Section headings and the Table of Contents
used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

     SECTION 10.12. Confidentiality. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates’
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (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, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, 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 any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement, (g) with
the consent of the Company or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii)
becomes available to the Administrative Agent or any Lender on a nonconfidential
basis from a source other than the Company. For the purposes of this Section,
“Information” means all information received from the Company relating to the
Company or its business, other than any such information that is available to
the Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Company; provided that, in the case of information received
from the Company 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.

     SECTION 10.13. Conversion of Currencies. (a) If, for the purpose of obtaining
judgment in any court, it is necessary to convert a sum owing hereunder in one
currency into another currency, each party hereto (including any Borrowing
Subsidiary) agrees, to the fullest extent that it may effectively do so, that
the rate of exchange used shall be that at which in accordance with normal
banking procedures in the relevant jurisdiction the first currency could be
purchased with such other currency on the Business Day immediately preceding the
day on which final judgment is given.

     (b)  The obligations of each Borrower in respect of any sum due to any party
hereto or any holder of the obligations owing hereunder (the “Applicable
Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than the currency in which such sum is stated to be due
hereunder (the “Agreement Currency”), be discharged only to the extent that, on
the Business Day following receipt by the Applicable Creditor of any sum

 

56

adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance with normal banking procedures in the relevant jurisdiction 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
Applicable Creditor in the Agreement Currency, such Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. The obligations of the Borrowers
contained in this Section 10.13 shall survive the termination of this Agreement
and the payment of all other amounts owing hereunder.

     SECTION 10.14. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with
all fees, charges and other amounts which are treated as interest on such Loan
under applicable law (collectively the “Charges”), shall exceed the maximum
lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

 

57

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

	 
	TRW INC.,
	 
	by  /s/ Ronald P. Vargo
	

	Name: Ronald P. Vargo

Title: Vice President and Treasurer

Website: www.trw.com
	 
	 
	JPMORGAN CHASE BANK,
individually

and as Administrative Agent,
	 
	by  /s/ Karen M. Sharf
	

	Name: Karen M. Sharf

Title: Vice President
	 
	 
	CITICORP USA, INC.,
	 
	by  /s/ Peter Koesler
	

	Name: Peter Koesler

Title: Managing Director and SCO
	 
	 
	BANK OF AMERICA, N.A.,
	 
	by  /s/ Matthew J. Reilly
	

	Name: Matthew J. Reilly

Title: Vice President
	 
	 
	BARCLAYS BANK PLC,
	 
	by  /s/ L. Peter Yetman
	

	Name: L. Peter Yetman

Title: Director

 

58

	 
	DRESDNER BANK AG-NEW YORK AND

GRAND CAYMAN BRANCHES,
	 
	by  /s/ Deborah Carlson
	

	Name: Deborah Carlson

Title: Director
	 
	 
	by  /s/ Stephen A. Kovach
	

	Name: Stephen A. Kovach

Title: Associate
	 
	 
	MELLON BANK, N.A.,
	 
	by  /s/ Robert J.
Reichenbach
	

	Name: Robert J. Reichenbach

Title: Vice President
	 
	 
	DEUTSCHE BANK AG NEW YORK BRANCH,
	 
	by  /s/ Oliver Schwarz
	

	Name: Oliver Schwarz

Title: Vice President
	 
	 
	by  /s/ Stephan G. Peetzen
	

	Name: Stephen G. Peetzen

Title: Director

 

59

	 
	BNP PARIBAS,
	 
	by  /s/ Christine Howatt
	

	Name: Christine Howatt

Title: Vice President
	 
	 
	by  /s/ Jo Ellen Bender
	

	Name: Jo Ellen Bender

Title: Director
	 
	 
	KEYBANK NATIONAL ASSOCIATION,
	 
	by
/s/ Marianne T. Meil
	

	Name: Marianne T. Meil

Title: Vice President
	 
	 
	NATIONAL CITY BANK,
	
	
	
	

	by  
/s/ William R. McDonnell
	

	Name: William R. McDonnell

Title: Vice President
	 
	 
	HSBC BANK USA,
	 
	by  /s/ Robert Corder
	

	Name: Robert Corder

Title: First Vice President
	 
	 
	SOCIETE GENERALE,
	 
	by  
/s/ Anne-Marie Dumortier
	

	Name: Anne-Marie Dumortier

Title: Vice President

 

60

	 
	BANK OF TOKYO-MITSUBISHI TRUST COMPANY,
	 
	by  /s/ F.N. Wilms
	

	Name: F.N. Wilms

Title: Vice President
	 
	 
	BANCA NAZIONALE DEL LAVORO
S.p.A-NEW YORK BRANCH,
	 
	by  /s/ Carlo Vecchi
	

	Name: Carlo Vecchi

Title: Senior Vice President
	 
	 
	by  
/s/ Juan J. Cortes
	

	Name: Juan J. Cortes

Title: Vice President
	 
	 
	SAN PAOLO IMI SPA,
	 
	by  /s/ Carlo Persico
	

	Name: Carlo Persico

Title: General Manager
	 
	 
	by  
/s/ Ettore Viazzo
	

	Name: Ettore Viazzo

Title: Vice President
	 
	 
	SUMITOMO MITSUI BANKING CORPORATION,
	 
	by  /s/ John H. Kemper
	

	Name: John H. Kemper

Title: Senior Vice President

 

61

	 
	BANCA BILBAO VIZCAYA

ARGENTARIA-NEW YORK BRANCH,
	 
	by /s/ Jay Levit
	

	Name: Jay Levit

Title:   Vice President-Global

          
  Corporate Banking
	 
	 
	by /s/ Miguel A. Lara
	

	Name: Miguel A. Lara

Title:   Vice President-Global

         
  Corporate Banking
	 
	BAYERISCHE LANDESBANK

GIROZENTRALE-CAYMAN ISLANDS,
	
	
	
	

	 
	by /s/ Hereward Drummond
	

	Name: Hereward Drummond

Title: Senior Vice President
	 
	 
	by /s/ James H. Boyle
	

	Name: James H. Boyle

Title: Vice President
	 
	 
	COMERICA BANK,
	 
	by
/s/ Nicholas G. Mester
	

	Name: Nicholas G. Mester

Title: Vice President
	 
	 
	THE BANK OF NEW YORK,
	 
	by  
/s/ John M. Lokay, Jr.
	

	Name: John M. Lokay, Jr.

Title: Vice PresidentEX-10(TT) Term Credit Agreement

 

Exhibit 10(tt)

CONFORMED COPY

TERM CREDIT AGREEMENT

dated as of

January 22, 2002

among

TRW INC.

The Lenders Party Hereto

and

JPMORGAN CHASE BANK,

as Administrative Agent

SALOMON SMITH BARNEY INC.,

as Syndication Agent

BANK OF AMERICA, N.A.,

BARCLAYS BANK PLC,

as Co-Documentation Agents,

 

J.P. MORGAN SECURITIES INC.

SALOMON SMITH BARNEY INC.,

as Joint-Lead Arrangers and Joint-Bookrunners

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	 	 	
ARTICLE I	 	 
	
	
	
	

	 	 	
Definitions	 	 
	
	
	
	

	SECTION 1.01.	 	
Defined Terms
	 	1
	
	
	
	

	SECTION 1.02.	 	
Terms Generally
	 	13
	
	
	
	

	SECTION 1.03.	 	
Accounting Terms; GAAP
	 	13
	
	
	
	

	 	 	
ARTICLE II	 	 
	
	
	
	

	 	 	
The Credits	 	 
	
	
	
	

	SECTION 2.01.	 	
Commitments
	 	13
	
	
	
	

	SECTION 2.02.	 	
Loans and Borrowings
	 	13
	
	
	
	

	SECTION 2.03.	 	
Requests for Borrowings
	 	14
	
	
	
	

	SECTION 2.04.	 	
Funding of Borrowings
	 	14
	
	
	
	

	SECTION 2.05.	 	
Interest Elections
	 	15
	
	
	
	

	SECTION 2.06.	 	
Repayment of Loans; Evidence of Debt
	 	16
	
	
	
	

	SECTION 2.07.	 	
Prepayment of Loans
	 	17
	
	
	
	

	SECTION 2.08.	 	
Interest
	 	17
	
	
	
	

	SECTION 2.09.	 	
Alternate Rate of Interest
	 	17
	
	
	
	

	SECTION 2.10.	 	
Increased Costs
	 	18
	
	
	
	

	SECTION 2.11.	 	
Break Funding Payments
	 	19
	
	
	
	

	SECTION 2.12.	 	
Taxes
	 	19
	
	
	
	

	SECTION 2.13.	 	
Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	20
	
	
	
	

	SECTION 2.14.	 	
Mitigation Obligations; Replacement of Lenders
	 	22
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
ARTICLE III	 	 
	
	
	
	

	 	 	
Representations and Warranties	 	 
	
	
	
	

	SECTION 3.01.	 	
Organization; Powers
	 	22
	
	
	
	

	SECTION 3.02.	 	
Authorization; Enforceability
	 	22
	
	
	
	

	SECTION 3.03.	 	
Governmental Approvals; No Conflicts
	 	23
	
	
	
	

	SECTION 3.04.	 	
Financial Condition; No Material Adverse Change
	 	23
	
	
	
	

	SECTION 3.05.	 	
Litigation and Environmental Matters
	 	23
	
	
	
	

	SECTION 3.06.	 	
Investment and Holding Company Status
	 	23
	
	
	
	

	SECTION 3.07.	 	
Taxes
	 	24
	
	
	
	

	SECTION 3.08.	 	
ERISA
	 	24

 

 

 3

	 	 	 	 	 
	 	 	ARTICLE IV	 	 
	
	
	
	

	 	 	
Conditions	 	 
	
	
	
	

	SECTION 4.01.	 	
Effective Date 	 	24
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
ARTICLE V	 	 
	
	
	
	

	 	 	
Affirmative Covenants	 	 
	
	
	
	

	SECTION 5.01.	 	
Financial Statements and Other Information
	 	25
	
	
	
	

	SECTION 5.02.	 	
Existence; Conduct of Business
	 	26
	
	
	
	

	SECTION 5.03.	 	
Use of Proceeds
	 	26
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
ARTICLE VI	 	 
	
	
	
	

	 	 	
Negative Covenants	 	 
	
	
	
	

	SECTION 6.01.	 	
Indebtedness of Subsidiaries
	 	26
	
	
	
	

	SECTION 6.02.	 	
Mortgages
	 	26
	
	
	
	

	SECTION 6.03.	 	
Sale and Lease-Back Transactions
	 	28
	
	
	
	

	SECTION 6.04.	 	
Fundamental Changes
	 	28
	
	
	
	

	SECTION 6.05.	 	
ERISA
	 	29
	
	
	
	

	SECTION 6.06.	 	
Change in Control
	 	29
	
	
	
	

	SECTION 6.07.	 	
Interest Coverage Ratio
	 	29
	
	
	
	

	SECTION 6.08.	 	
Minimum Consolidated Net Worth
	 	29
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
ARTICLE VII	 	 
	
	
	
	

	 	 	
Events of Default	 	 
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
ARTICLE VIII	 	 
	
	
	
	

	 	 	
The Administrative Agent	 	 
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
ARTICLE IX	 	 
	
	
	
	

	 	 	
Miscellaneous	 	 
	
	
	
	

	SECTION 9.01.	 	
Notices
	 	33
	
	
	
	

	SECTION 9.02.	 	
Waivers; Amendments
	 	33
	
	
	
	

	SECTION 9.03.	 	
Expenses; Indemnity; Damage Waiver
	 	34
	
	
	
	

	SECTION 9.04.	 	
Successors and Assigns
	 	35
	
	
	
	

	SECTION 9.05.	 	
Survival
	 	38
	
	
	
	

	SECTION 9.06.	 	
Counterparts; Integration; Effectiveness
	 	38
	
	
	
	

	SECTION 9.07.	 	
Severability
	 	38
	SECTION 9.08.	 	
Right of Setoff
	 	39

 

 

 4

	 	 	 	 	 	 	 
	
	
	
	

	SECTION 9.09.	 	
Governing Law; Jurisdiction; Consent to Service of Process	 	 	39	 
	
	
	
	

	SECTION 9.10.	 	
WAIVER OF JURY TRIAL
	 	 	39	 
	
	
	
	

	SECTION 9.11.	 	
Headings
	 	 	40	 
	
	
	
	

	SECTION 9.12.	 	
Confidentiality
	 	 	40	 
	
	
	
	

	SECTION 9.13.	 	
Interest Rate Limitation
	 	 	40	 

	 
	SCHEDULES:
	Schedule 2.01 — Commitments

	 
	EXHIBITS:
	Exhibit A — Form of Assignment and Acceptance
	
	
	
	

	Exhibit B — Form of Opinion of General Counsel of the Borrower
	
	
	
	

	Exhibit C — Form of Compliance Certificate

 

 

		
	 	         TERM CREDIT AGREEMENT dated as of January 22, 2002,
among TRW INC., the LENDERS from time to time party hereto,
JPMORGAN CHASE BANK, as Administrative Agent and SALOMON
SMITH BARNEY INC., as Syndication Agent.

         The parties hereto agree as follows:

ARTICLE I

Definitions

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

         “364-Day Credit Agreement” means the 364-Day Credit Agreement dated as of
January 22, 2002, between TRW Inc., the borrowing subsidiaries from time to
time party thereto, the Lenders from time to time party thereto, JPMorgan Chase
Bank, as administrative agent, and Salomon Smith Barney Inc., as syndication
agent, as such agreement may be amended from time to time.

         “ABR”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a
rate determined by reference to the Alternate Base Rate.

         “Adjusted LIBO Rate” means, with respect to any Eurocurrency Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate.

         “Administrative Agent” means JPMorgan Chase Bank, in its capacity as
administrative agent for the Lenders hereunder.

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

         “Affiliate” means, with respect to a specified 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.

         “Alternate Base Rate” means, for any day, a rate per annum equal to the
greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

         “Applicable Percentage” means, with respect to any Lender, the percentage
of the total Loans represented by such Lender’s Loans.

 

 2

         “Applicable Rate” means, for any day, with respect to any Eurocurrency
Loan, the applicable rate per annum set forth below under the caption
“Eurocurrency Spread” based upon the ratings by Moody’s and S&P, respectively,
applicable on such date to the Index Debt:

	 	 	 	 	 	 	 	 
	 	 	 	 	 	Eurocurrency
	Index Debt Ratings:	 	Spread
	
	 	

	 	 	 	Category 1

	 	 	1.00	%
	 	 	 	 
	 	 	 
	(>BBB-
and >Baa3) or (>BBB- and >Baa3)
	 	 	 	 
	
	
	
	

	 	 	 	Category 2

	 	 	1.25	%
	 	 	 	 
	 	 	 
	 	 	BBB-
and Baa3

Category 3

	 	 	1.50	%
	 	<BBB- or <Baa3
	 	 	 	 

         For purposes of the foregoing, (i) if either Moody’s or S&P shall not have
in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then such
rating agency shall be deemed to have established a rating in Category 3; and
(ii) if the ratings established or deemed to have been established by Moody’s
and S&P for the Index Debt shall be changed (other than as a result of a change
in the rating system of Moody’s or S&P), such change shall be effective as of
the date on which it is first announced by the applicable rating agency. Each
change in the Applicable Rate shall apply during the period commencing on the
effective date of such change and ending on the date immediately preceding the
effective date of the next such change. If the rating system of Moody’s or S&P
shall change, or if either such rating agency shall cease to be in the business
of rating corporate debt obligations, the Borrower and the Lenders shall
negotiate in good faith to amend this definition to reflect such changed rating
system or the unavailability of ratings from such rating agency and, pending
the effectiveness of any such amendment, the Applicable Rate shall be
determined by reference to the rating most recently in effect prior to such
change or cessation.

         “Assignment and Acceptance” means an assignment and acceptance entered
into by a Lender and an assignee (with the consent of any party whose consent
is required by Section 9.04), and accepted by the Administrative Agent, in the
form of Exhibit A or any other form approved by the Administrative Agent.

         “Attributable Debt” means, as to any particular lease under which any
Person is liable at the time and at any date as of which the amount thereof is
to be determined, the lesser of (a) the fair value of the property subject to
such lease (as determined by the Directors of the Borrower) or (b) the total
net amount of rent required to be paid by such Person under such lease during
the remaining term thereof, discounted from the respective due dates thereof to
such date at the actual interest factor included in such rent. The net amount
of rent required to be paid under any such lease for any such period shall be
the aggregate amount of the rent payable by the lessee with respect to such
period after excluding amounts required to be paid on account of
maintenance and repairs, insurance, taxes, assessments, water rates and
similar charges. In the case of any lease which is terminable by the lessee
upon the payment of a penalty, such net amount shall also include the amount of
such penalty, but no rent shall be considered as required to be paid under such
lease subsequent to the first date upon which it may be so terminated.

 

 

 3

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

         “Borrower” means TRW Inc., an Ohio corporation.

         “Borrowing” means Loans of the same Type, made, converted or continued on
the same date and, in the case of Eurocurrency Loans, as to which a single
Interest Period is in effect.

         “Borrowing Request” means a request by the Borrower for a Borrowing in
accordance with Section 2.03.

         “Business Day” means any day that is not a Saturday, Sunday or other day
on which commercial banks in New York City are authorized or required by law to
remain closed; provided, that when used in connection with a Eurocurrency Loan,
the term “Business Day” shall also exclude any day on which banks are not open
for dealings in dollar deposits in the London interbank market.

         “Capital Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

         “Change in Control” means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof), of shares
representing more than 30% of the aggregate ordinary voting power represented
by the issued and outstanding capital stock of the Borrower; or (b) occupation
of a majority of the seats (other than vacant seats) on the board of directors
of the Borrower by Persons who are not Continuing Directors. For purposes of
the foregoing, “Continuing Directors” shall mean (i) the directors of the
Borrower on the date hereof and (ii) each other director nominated or appointed
by at least two thirds of the Continuing Directors at the time of such
nomination or appointment.

         “Change in Law” means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender (or, for
purposes of Section 2.10(b), by any lending office of such Lender or by such
Lender’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

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

         “Commitment” means, with respect to each Lender, the commitment of such
Lender to make Loans hereunder on the Effective Date. The amount of each
Lender’s

 

 

 4

Commitment is set forth on Schedule 2.01. The aggregate amount of the
Lenders’ Commitments is $250,000,000.

         “Consolidated EBITDA” means, for any fiscal period, with respect to the
Borrower and its consolidated Subsidiaries, (a) Consolidated Net Income for
such period plus (b) to the extent deducted in computing such Consolidated Net
Income, without duplication, the sum of (i) income tax expense, (ii)
Consolidated Interest Expense, (iii) depreciation and amortization expense,
(iv) any extraordinary or non-recurring losses and (v) other noncash items
(other than accruals) reducing Consolidated Net Income, minus (c) to the extent
added in computing such Consolidated Net Income, without duplication, the sum
of (i) any extraordinary or non-recurring gains and (ii) other noncash items
(other than accruals) increasing Consolidated Net Income, all as determined on
a consolidated basis in accordance with GAAP; provided that gains on sales of
the Borrower’s equity investments in publicly-traded companies and pension
income related to LucasVarity will in no event be subtracted under this clause
(c) for purposes of computing Consolidated EBITDA.

         “Consolidated Funded Debt” means the Funded Debt of the Borrower and the
consolidated Subsidiaries, determined on a consolidated basis in accordance
with GAAP.

         “Consolidated Interest Expense” means, for any period, the aggregate of
all interest expense of the Borrower and its consolidated Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP.

         “Consolidated Net Assets” means the sum of (a) the total of all assets of
the Borrower and the consolidated Subsidiaries that would appear on a
consolidated balance sheet of the Borrower prepared in accordance with GAAP
less (b) Consolidated Net Worth.

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

         “Consolidated Net Worth” means, at any date, the consolidated
shareholders’ investment of the Borrower and the consolidated Subsidiaries,
exclusive of foreign currency translation adjustment and unrealized gains or
losses on securities as reported in the Borrower’s financial statements under
“Other Comprehensive Income,” determined as of such date. Consolidated
shareholders’ investment, foreign currency translation adjustment and
unrealized gains or losses on securities of the Borrower shall be as included
in the annual or quarterly financial statements of the Borrower, as applicable.

         “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 or by contract.
“Controlling” and “Controlled” have meanings correlative thereto.

         “Default” means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

 

 

 5

         “Dollars” or “$” refers to lawful money of the United States of America.

         “Domestic Subsidiary” means each consolidated Subsidiary other than (a)
any consolidated Subsidiary which the Directors of the Borrower reasonably
determine not to be material to the business or financial condition of the
Borrower; (b) any consolidated Subsidiary the major portion of the assets of
which are located, or the major portion of the business of which is carried on,
outside the United States of America, its territories and possessions; (c) any
consolidated Subsidiary which, during the 12 most recent calendar months (or
such shorter period as shall have elapsed since its organization) derived the
major portion of its gross revenues from sources outside the United States of
America; (d) any consolidated Subsidiary the major portion of the assets of
which consists of securities or obligations, or both, of one or more
corporations (whether or not consolidated Subsidiaries) of the types described
in the preceding clauses (b) and (c); and (e) any consolidated Subsidiary
organized after January 1, 2002 which the Borrower intends shall be operated in
such manner as to come within one or more of the preceding clauses (b), (c) and
(d).

         “Effective Date” means the date of this Agreement.

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

         “ERISA Affiliate” means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

         “ERISA Event” means (a) any “reportable event”, as defined in Section 4043
of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an “accumulated funding deficiency” (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c)
the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g)
the receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of
any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.

         “Eurocurrency”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Adjusted LIBO Rate.

         “Event of Default” has the meaning assigned to such term in Article VII.

 

 

 6

         “Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time.

         “Excluded Taxes” means (i) with respect to each Lender, taxes imposed on
its net income, and franchise or similar taxes imposed on it, by a jurisdiction
under the laws of which it is organized or in which its principal executive
office or applicable lending office is located, and (ii) any United States
withholding tax imposed on such payment, but not excluding any portion of such
tax that exceeds the United States withholding tax which would have been
imposed on such a payment to such Lender under the laws and treaties in effect
when such Lender first becomes a party to this Agreement.

         “Existing Credit Agreement” means the 364-Day Amended and Restated Credit
Agreement dated as of January 23, 2001, as amended, among the Borrower, the
Borrowing Subsidiaries from time to time party thereto, the lenders party
thereto and JPMorgan Chase Bank, as administrative agent.

         “Federal Funds Effective Rate” means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

         “Financial Officer” means the chief financial officer, treasurer or
controller of the Borrower.

         “Five-Year Credit Agreement” means the Five-Year Credit Agreement dated as
of January 25, 2000 among the Borrower, the borrowing subsidiaries from time to
time party thereto, the lenders from time to time party thereto, JPMorgan, as
administrative agent, Chase Manhattan International Limited, as London agent
and Salomon Smith Barney Inc., as syndication agent, as such agreement may be
amended from time to time.

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

         “Foreign Subsidiary” means any Subsidiary that is not a Domestic
Subsidiary.

         “Funded Debt” means all Indebtedness of the type described in clauses (a)
and (b) of the definition thereof having a maturity of more than 12 months from
the date such Indebtedness was incurred or having a maturity of 12 months or
less but by its terms being renewable or extendable beyond 12 months from the
date such Indebtedness was incurred at the option of the obligor.

 

 

 7

         “GAAP” means generally accepted accounting principles in the United States
of America applied in a manner consistent with the financial statements
referred to in Section 3.04(a).

         “Governmental Authority” means the government of the United States of
America, any other nation or 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.

         “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person
(the “primary obligor”) in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay
such Indebtedness or other obligation or (d) as an account party in respect of
any letter of credit or letter of guaranty issued to support such Indebtedness
or obligation; provided, that the term Guarantee shall not include endorsements
for collection or deposit in the ordinary course of business.

         “Guarantor Subsidiary” means any Subsidiary that shall have delivered to
the Administrative Agent (a) a guarantee agreement in form and substance
satisfactory to the Administrative Agent under which it shall guarantee the
payment of the Obligations and (b) such evidence as the Administrative Agent
may reasonably have requested (which may include an opinion of counsel
qualified in any relevant jurisdiction) as to the corporate power and authority
of such Subsidiary to enter into and the enforceability of such guarantee
agreement and such other matters related to such guarantee agreement as the
Administrative Agent may reasonably have determined to be material.

         “Indebtedness” of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding current
accounts payable incurred in the ordinary course
of business), (f) all Indebtedness of others secured by any Mortgage on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all non-contingent obligations (and, for purposes of Section 6.02 and the
definition of Material Indebtedness, all contingent obligations) of such Person
to reimburse any bank or other Person in respect of amounts paid under letters
of credit and similar instruments and (j) all obligations, contingent or
otherwise, of such Person in respect of bankers’ acceptances.

 

 

 8

The Indebtedness
of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor.

         “Index Debt” means senior, unsecured, long-term indebtedness for borrowed
money of the Borrower that is not guaranteed by any other Person or subject to
any other credit enhancement.

         “Interest Election Request” means a request by the Borrower to convert or
continue a Borrowing in accordance with Section 2.05.

         “Interest Payment Date” means (a) with respect to any ABR Loan, the last
day of each March, June, September and December, and (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period.

         “Interest Period” means, with respect to any Eurocurrency Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
thereafter, as the Borrower may elect; provided, that (i) if any Interest
Period would end on a day other than a Business Day, such Interest Period shall
be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (ii) any Interest
Period that commences on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the last calendar month
of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a
Borrowing initially shall be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.

         “JPMorgan” means JPMorgan Chase Bank and its successors.

         “Lenders” means the Persons listed on Schedule 2.01 and any other Person
that shall have become a party hereto pursuant to an Assignment and Acceptance,
other than any such Person that shall have ceased to be a party hereto pursuant
to an Assignment and Acceptance.

         “LIBO Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on
any successor or substitute
page of such Service, or any successor to or substitute for such Service,
providing rate quotations comparable to those currently provided on such page
of such Service, as determined by the Administrative Agent from time to time
for purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as
the rate for dollar deposits with a maturity comparable to such Interest
Period; provided that, to the extent that an interest rate is not ascertainable
pursuant to the foregoing provisions of this definition, the “LIBO Rate” shall
be the average (rounded upward, if necessary, to the next 1/100

 

 

 9

of 1%) of the
respective interest rates per annum at which dollar deposits of such Borrowing
are offered for such Interest Period to major banks in the London interbank
market by JPMorgan and Citibank, N.A. at approximately 11:00 a.m., London time,
on the date two Business Days prior to the beginning of such Interest Period.

         “Loan Documents” means this Agreement and each promissory note delivered
pursuant to this Agreement.

         “Loans” means the loans made by the Lenders to the Borrower pursuant to
this Agreement.

         “LucasVarity” shall mean LucasVarity Limited, formerly known as
LucasVarity plc, an English company.

         “Margin Stock” means “margin stock” as defined in Regulation U.

         “Material Adverse Effect” means a material adverse effect on (a) the
consolidated financial condition of the Borrower and the consolidated
Subsidiaries, taken as a whole or (b) the ability of the Borrower to perform
its payment obligations under the Loan Documents.

         “Material Indebtedness” means Indebtedness (other than the Loans), of any
one or more of the Borrower and the Material Subsidiaries in an aggregate
principal amount exceeding $100,000,000.

         “Material Subsidiary” means any Subsidiary (a) whose assets (or, if such
Subsidiary has subsidiaries, whose consolidated assets) are at least equal to
$100,000,000 or (b) that directly or indirectly owns or Controls any Material
Subsidiary.

         “Maturity Date” means January 25, 2005.

         “Moody’s” means Moody’s Investors Service, Inc.

         “Mortgage” has the meaning assigned to such term in Section 6.02.

         “Multiemployer Plan” means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

         “Obligations” means the due and punctual payment of (a) the principal of
and premium, if any, and interest (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable
in such proceeding) on the Loans made to the Borrower, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise and (b) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of
any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), of the Borrower
under this Agreement and the other Loan Documents.

 

 

 10

         “Other Taxes” means any present or future stamp or documentary taxes and
any other excise or property taxes, or similar charges or levies, which arise
from any payment made pursuant to this Agreement or any Loan Document or from
the execution, delivery, registration or enforcement of, or otherwise with
respect to, this Agreement or any Loan Document; provided that Other Taxes
shall not include Excluded Taxes.

         “PBGC” means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.

         “Permitted Subsidiary Indebtedness” means (a) Indebtedness under the
364-Day Credit Agreement or the Five-Year Credit Agreement, (b) any
Indebtedness of a Subsidiary owed to the Borrower or another Subsidiary, (c)
Indebtedness of Guarantor Subsidiaries, (d) any Indebtedness deemed incurred in
connection with one or more receivables securitization transactions entered
into by the Borrower and/or one or more Subsidiaries in an aggregate amount of
up to $500,000,000 (minus the amount of any such Indebtedness of the Borrower)
and (e) any Indebtedness of a finance Subsidiary with no significant assets or
operations to the extent (i) such Indebtedness is Guaranteed by the Borrower
and is not Guaranteed, or secured by assets or obligations of, any other
Subsidiary, (ii) the proceeds of such Indebtedness are dividended to the
Borrower or another Subsidiary or advanced to the Borrower and (iii) such
finance Subsidiary is not the obligee in respect of any Indebtedness of any
other Subsidiary.

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

         “Plan” means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower
or any ERISA Affiliate is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA.

         “Prime Rate” means the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as
being effective.

         “Principal Property” means any single manufacturing plant, engineering
facility or research facility owned or leased by the Borrower or a Domestic
Subsidiary other than any such plant or facility or portion thereof which the
Board of Directors reasonably determines not to be of material importance to
the Borrower and its Subsidiaries taken as a whole.

         “Register” has the meaning set forth in Section 9.04.

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

         “Required Lenders” means, at any time, Lenders having total Loans
representing more than 50% of the sum of the total Loans at such time.

 

 

 11

         “Specified Borrower Indebtedness” means, at any time, (a) all Indebtedness
of the Borrower secured by Mortgages that would be prohibited by Section 6.02
but for the provisions of clause (h) thereof; (b) all Attributable Debt of the
Borrower related to Sale and Leaseback Transactions that would be prohibited by
Section 6.03 but for the provisions of clause (b) thereof; (c) all Indebtedness
of the Borrower secured by Mortgages on capital stock of or other equity
interests in Foreign Subsidiaries; and (d) all Indebtedness of the Borrower
that is secured by Mortgages on accounts receivable or that is deemed to arise
in connection with receivables securitization transactions, but only to the
extent the amount of such Indebtedness of the Borrower and the Domestic
Subsidiaries so secured or so arising exceeds $500,000,000.

         “S&P” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.

         “Statutory Reserve Rate” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board). Such reserve percentages shall include those
imposed pursuant to such Regulation D. Eurocurrency Loans shall be deemed to
constitute eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

         “subsidiary” means, with respect to any Person (the “parent”) at any date,
any corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent’s consolidated financial statements if such financial statements
were prepared in accordance with GAAP as of such date, as well as any other
corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent
or by the parent and one or more subsidiaries of the parent.

         “Subsidiary” means any subsidiary of the Borrower.

         “Taxes” means any and all present or future taxes or other charges of any
nature deducted, withheld or otherwise imposed with respect to any payment by
the Borrower pursuant to this Agreement or any Loan Document, and all
liabilities with respect thereto other than Excluded Taxes.

         “Transactions” means the execution, delivery and performance by the
Borrower of the Loan Documents, the borrowing of Loans and the use of the
proceeds thereof.

 

 

 12

         “Type”, when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing,
is determined by reference to the Adjusted LIBO Rate or the Alternate Base
Rate.

         “Wholly Owned Domestic Subsidiary” means each Domestic Subsidiary all the
outstanding shares of which, other than directors’ qualifying shares, shall at
the time be owned by the Borrower or by the Borrower and one or more Wholly
Owned Domestic Subsidiaries, or by one or more Wholly Owned Domestic
Subsidiaries.

         “Withdrawal Liability” means liability to a Multiemployer Plan as a result
of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.

 

 

 13

         SECTION 1.02. Terms Generally. 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 (a) any definition of or
reference to any agreement, instrument or other document herein 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), (b) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) 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.

         SECTION 1.03. Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if the
Borrower notifies the Administrative Agent that the Borrower requests an
amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent
notifies the Borrower that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then
such provision shall be interpreted on the basis of GAAP as in effect and
applied immediately before such change shall have become effective until such
notice shall have been withdrawn or such provision amended in accordance
herewith.

ARTICLE II

The Credits

         SECTION 2.01. Commitments. Subject to the terms and conditions set forth
herein, each Lender agrees to make Loans in Dollars to the Borrower on the
Effective Date in an aggregate principal amount that will not exceed its
Commitment. Amounts repaid in respect of the Loans may not be reborrowed.
Unless previously terminated, the Commitments shall terminate at 5:00 p.m., New
York City time, on the Effective Date.

         SECTION 2.02. Loans and
Borrowings. (a) Each Loan shall be made as part of a
Borrowing consisting of Loans of the same Type made by the Lenders ratably in
accordance with their respective Commitments. The failure of any Lender to
make any Loan required to be made by it shall not relieve any other Lender of
its obligations hereunder; provided that the Commitments of the Lenders are
several and no Lender shall be responsible for any other Lender’s failure to
make Loans as required hereunder.

 

 

 14

         (b)  Subject to Section 2.09, each Borrowing shall be comprised entirely of
ABR Loans or Eurocurrency Loans as the Borrower may request in accordance
herewith. Each Lender at its option may make any Eurocurrency Loan by causing
any domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of
the Borrower to repay such Loan in accordance with the terms of this Agreement.

         (c)  At the commencement of each Interest Period for any Borrowing, such
Borrowing shall be in an aggregate amount that is at least equal to $10,000,000
and an integral multiple of $5,000,000. Borrowings of more than one Type may
be outstanding at the same time; provided that there shall not at any time be
more than a total of 5 Eurocurrency Borrowings outstanding.

         (d)  Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Maturity Date.

         SECTION 2.03. Requests for Borrowings. To request a Borrowing, the Borrower
shall notify the Administrative Agent of such request by telephone (a) in the
case of a Eurocurrency Borrowing, not later than 11:00 a.m., New York City
time, three Business Days before the Effective Date or (b) in the case of an
ABR Borrowing, not
later than 10:00 a.m., New York City time, on the Effective Date. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:

		
	 	         (i) the aggregate principal amount of the requested Borrowing;
	 
	 	         (ii) whether the requested Borrowing is to be an ABR Borrowing or a
Eurocurrency Borrowing;
	 
	 	         (iii) in the case of a Eurocurrency Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period contemplated by
the definition of the term “Interest Period”; and
	 
	 	         (iv) the location and number of the Borrower’s account to which
funds are to be disbursed, which shall comply with the requirements of
Section 2.04.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurocurrency Borrowing, then the Borrower shall be
deemed to have selected an Interest Period of one month’s duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender’s Loan to be made as part of the requested Borrowing.

         SECTION 2.04. Funding of Borrowings. Each Lender shall make the Loan or Loans
to be made by it hereunder on the Effective Date by wire transfer of
immediately available

 

 

 15

funds by 12:00 noon, New York City time, to the account
of the Administrative Agent designated by it for such purpose by notice to the
Lenders. The Administrative Agent will make such Loans available to the
Borrower by promptly crediting the amounts so received, in like funds, to an
account of the Borrower maintained by the Administrative Agent and designated
by the Borrower in the Borrowing Request.

         SECTION 2.05. Interest
Elections. (a) Each Borrowing initially shall be of the
Type specified in the applicable Borrowing Request and, in the case of a
Eurocurrency Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request. Thereafter, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided
in this Section. The Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. 

         (b)  To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time that
a Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Borrowing of the Type resulting from such election to be made on
the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of a written Interest Election Request
in a form approved by the Administrative Agent and signed by the Borrower.

         (c)  Each telephonic and written Interest Election Request shall specify
the following information in compliance with Section 2.02:

		
	 	         (i) the Borrowing to which such Interest Election Request applies
and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting
Borrowing (in which case the information to be specified pursuant to
clauses (iii) and (iv) below shall be specified for each resulting
Borrowing);
	 
	 	         (ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;
	 
	 	         (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurocurrency Borrowing; and
	 
	 	         (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the
Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the
term “Interest Period”.

If any such Interest Election Request requests a Eurocurrency Borrowing but
does not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month’s duration.

 

 

 16

         (d)  Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender’s portion of each resulting Borrowing.

         (e)  If the Borrower fails to deliver to the Administrative Agent on or
before the third Business Day prior to the end of the Interest Period
applicable to a Eurocurrency Borrowing (i) an Interest Election Request with
respect to such Eurocurrency Borrowing or (ii) a notice of its intent to prepay
such Eurocurrency Borrowing at the end of such Interest Period, then at the end
of such Interest Period such Borrowing shall be continued as a Eurocurrency
Borrowing with an Interest Period of equal duration to such prior Eurocurrency
Borrowing. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies the Borrower, then, so long as an
Event of Default is continuing (i) no outstanding Borrowing may be converted to
or continued as a Eurocurrency Borrowing and (ii) unless repaid, each
Eurocurrency Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto.

         SECTION 2.06. Repayment of
Loans; Evidence of Debt (a) The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of
each Lender the then unpaid principal amount of each Loan on the Maturity Date.

         (b)  Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

         (c)  The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

         (d)  The entries made in the accounts maintained pursuant to paragraph (b)
or (c) of this Section shall, absent manifest error, be prima facie evidence of
the existence and amounts of the obligations recorded therein; provided that
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Loans in accordance with the terms of this Agreement.

         (e)  Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Borrower shall prepare, execute and
deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns)
and in a form approved by the Administrative Agent. Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by one or
more promissory
notes in such form payable to the order of the payee named therein (or, if
such promissory note is a registered note, to such payee and its registered
assigns).

 

 

 17

         SECTION 2.07. Prepayment of
Loans (a) The Borrower shall have the right at any
time and from time to time to prepay any of its Borrowings in whole or in part,
subject to prior notice in accordance with paragraph (b) of this Section.

         (b)  The Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment hereunder not later than 11:00 a.m.,
New York City time, one Business Day before the date of prepayment. Each such
notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid. Promptly
following receipt of any such notice relating to a Borrowing, the
Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of an advance of a Borrowing of the same Type as provided
in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to
the Loans included in the prepaid Borrowing. Prepayments shall be accompanied
by accrued interest to the extent required by Section 2.08.

         SECTION 2.08.
Interest (a) The Loans comprising each ABR Borrowing shall bear
interest at the Alternate Base Rate.

         (b)  The Loans comprising each Eurocurrency Borrowing shall bear interest
at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
plus the Applicable Rate.

         (c)  Notwithstanding the foregoing, if any principal of or interest on any
Loan or any fee or other amount payable by the Borrower hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding
paragraphs of this Section or (ii) in the case of any other amount, 2% plus the
rate applicable to ABR Loans as provided in paragraph (a) of this Section.

         (d)  Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan; provided that (i) interest accrued
pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in
the event of any repayment or prepayment of any Loan, accrued interest on the
principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment and (iii) in the event of any conversion of any
Eurocurrency Loan prior to the end of the current Interest Period therefor,
accrued interest on such Loan shall be payable on the effective date of such
conversion.

         (e)  All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at
times when the Alternate Base Rate is based on the Prime Rate shall be computed
on the basis of a year of 365
days (or 366 days in a leap year), and in each case shall be payable for
the actual number of days elapsed (including the first day but excluding the
last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate
shall be determined by the Administrative Agent, and such determination shall
be conclusive absent manifest error.

         SECTION 2.09. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurocurrency Borrowing:

 

 

 18

		
	 	         (a) the Administrative Agent determines (which determination shall
be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as
applicable, for such Interest Period; or
	 
	 	         (b) the Administrative Agent is advised by the Required Lenders that
the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest
Period will not adequately and fairly reflect the cost to such Lenders
(or Lender) of making or maintaining their Loans (or its Loan) included
in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurocurrency Borrowing shall be ineffective
and (ii) any Borrowing Request for a Eurocurrency Borrowing shall be deemed a
request for an ABR Borrowing.

SECTION 2.10. Increased Costs. (a) If any Change in Law shall:

		
	 	         (i) impose, modify or deem applicable any reserve, special deposit
or similar requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve
requirement reflected in the Adjusted LIBO Rate); or
	 
	 	         (ii) impose on any Lender or the London interbank market any other
condition affecting this Agreement or Eurocurrency Loans made by such
Lender;

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 reduce the amount of any sum received
or receivable by such Lender hereunder (whether of principal, interest or
otherwise), then the Borrower will pay to such Lender such additional amount or
amounts as will compensate such Lender for such additional costs incurred or
reduction suffered.

         (b)  If any Lender determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on
such Lender’s capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Agreement
or the Loans made by, such Lender, to a level below that which such Lender
or such Lender’s holding company could have achieved but for such Change in Law
(taking into consideration such Lender’s policies and the policies of such
Lender’s holding company with respect to capital adequacy), then from time to
time the Borrower will pay to such Lender, such additional amount or amounts as
will compensate such Lender or such Lender’s holding company for any such
reduction suffered.

         (c)  A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company, as the case may be,
as specified in

 

 

 19

paragraph (a) or (b) of this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender, as the case may be, the amount shown as due on any such
certificate within 15 days after receipt thereof.

         (d)  Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s right
to demand such compensation; provided that the Borrower shall not be required
to compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than 45 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the 45-day period referred to above shall be
extended to include the period of retroactive effect thereof.

         SECTION 2.11. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurocurrency Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default),
(b) the conversion of any Eurocurrency Loan other than on the last day of the
Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Loan on the date specified in any notice delivered
pursuant hereto, or (d) the assignment of any Eurocurrency Loan other than on
the last day of the Interest Period applicable thereto as a result of a request
by the Borrower pursuant to Section 2.14, then, in any such event, the Borrower
shall compensate each Lender for the loss, cost and expense attributable to
such event. In the case of a Eurocurrency Loan, such loss, cost or expense to
any Lender shall be deemed to include an amount determined by such Lender to be
the excess, if any, of (i) the amount of interest which would have accrued on
the principal amount of such Loan had such event not occurred, at the Adjusted
LIBO Rate that would have been applicable to such Loan, for the period from the
date of such event to the last day of the then current Interest Period therefor
(or, in the case of a failure to borrow, convert or continue, for the period
that would have been the Interest Period for such Loan), over (ii) the amount
of interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid, at the commencement
of such period, for dollar deposits of a comparable amount and period from
other banks in the eurocurrency market. A certificate of any Lender setting
forth any amount or amounts that such Lender is entitled to receive pursuant to
this Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender the amount shown as due on
any such certificate within 15 days after receipt thereof.

         SECTION 2.12.
Taxes. (a) Each payment by the Borrower to or for the account of
a Lender hereunder or under any Loan Document shall be made without deduction
for any Taxes or Other Taxes; provided that, if the Borrower shall be required
by law to deduct any Taxes or Other Taxes from such payment, (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) such Lender receives an amount equal to the sum it would have
received had no such deduction been made, (ii) the Borrower shall make such
deduction, (iii) the Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
law and (iv) the Borrower shall promptly furnish to the Administrative Agent,
at its address specified in or pursuant to Section 9.01, the original or a

 

 

 20

certified copy of a receipt evidencing payment thereof or other reasonably
satisfactory evidence thereof.

         (b)  The Borrower shall indemnify each Lender for the full amount of any
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed or asserted (whether or not correctly) by any jurisdiction on amounts
payable under this Section) paid by such Lender with respect to amounts paid by
the Borrower pursuant to this Agreement or any Loan Document, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto. This indemnification shall be paid within 15 days after the later of
the date such Lender makes demand therefor and the date such payment is made.

         (c)  Each Lender organized under the laws of a jurisdiction outside the
United States, before it signs and delivers this Agreement in the case of each
Lender listed on the signature pages hereof and before it becomes a Lender in
the case of each other Lender, and from time to time thereafter if requested in
writing by the Borrower (but only so long as such Lender remains lawfully able
to do so), shall provide the Borrower and the Administrative Agent with
Internal Revenue Service form W-8BEN or W-8ECI in duplicate, as appropriate, or
any successor form prescribed by the Internal Revenue Service, certifying that
such Lender is entitled to benefits under an income tax treaty to which the
United States is a party which exempts such Lender from United States
withholding tax or reduces the rate of withholding tax on payments of interest
for the account of such Lender or certifying that the income receivable by it
pursuant to this Agreement is effectively connected with the conduct of a trade
or business in the United States.

         (d)  For any period with respect to which a Lender has failed to provide
the Borrower or the Administrative Agent with the appropriate form as required
by paragraph (c) above (unless such failure is due to a change in treaty, law
or regulation occurring after the date on which such form originally was
required to be provided or results from the Borrower’s failure to make a timely
written request pursuant to paragraph (c) above), such Lender shall not be
entitled to indemnification under paragraphs (a) or (b) above with respect to
Taxes imposed by the United States; provided that if a Lender, which is
otherwise exempt from or subject to a reduced rate of withholding tax, becomes
subject to Taxes because of its failure to deliver a form required hereunder,
the Borrower shall take such steps as such Lender shall reasonably request to
assist such Lender to recover such Taxes.

         SECTION 2.13. Payments Generally;
Pro Rata Treatment; Sharing of Set-offs. (a) The Borrower shall make each payment required to be made by it hereunder
or under any other Loan Document (whether of principal, interest, fees, or of
amounts payable under Section 2.10, 2.11 or 2.12, or otherwise) prior to 2:00
p.m., New York City time, on the date when due, in immediately available funds,
without set-off or counterclaim. All such payments shall be made to the
Administrative Agent to such account as it shall from time to time specify at
its offices at 270 Park Avenue, New York, New York, or, in any such case, at
such other address as the Administrative Agent shall from time to time specify
in a notice delivered to the Borrower; provided that payments pursuant to
Section 2.10, Section 2.11, Section 2.12 and Section 9.03 shall be made
directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof. If any
payment hereunder shall be due on a day that is not a Business Day, the date
for payment shall be extended to the next

 

 

 21

succeeding Business Day, and,
in the case of any payment accruing interest, interest thereon shall be payable
for the period of such extension. All payments hereunder shall be made in
Dollars.

         (b)  If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, interest and fees
then due hereunder, such funds shall be applied (i) first, towards payment of
interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, towards payment of principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal then due to such parties.

         (c)  If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Loans resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Loans of other Lenders to the extent necessary 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 Loans; provided that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). The 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 the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

         (d)  Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders hereunder that the Borrower will not make
such payment, the Administrative Agent may assume that the Borrower has made
such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders, the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender 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 greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation.

         (e)  If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.04(b) or 2.13(d), then the Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the

 

 

 22

Administrative Agent for the account of such Lender to satisfy such
Lender’s obligations under such Sections until all such unsatisfied obligations
are fully paid.

         SECTION 2.14.
Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.10, or if the Borrower is required to pay
any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.12, 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 2.10 or 2.12, as the case may be, in the future and
(ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender.

         (b)  If any Lender requests compensation under Section 2.10, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.12,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower 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
Section 9.04), all its interests, rights and obligations under the Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (i) the
Borrower shall have received the prior written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal
and accrued interest and fees) or the Borrower (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a claim
for compensation under Section 2.10 or payments required to be made pursuant to
Section 2.12, such assignment will result in a reduction in such compensation
or payments. A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

ARTICLE III

Representations and Warranties

The Borrower represents and warrants to the Lenders that:

         SECTION 3.01. Organization; Powers. The Borrower is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as
now conducted and, except where the failure to do so, individually or in the
aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, every jurisdiction where such
qualification is required.

         SECTION 3.02. Authorization; Enforceability. The Transactions are within the
Borrower’s corporate powers and have been duly authorized by all necessary
corporate and, if

 

 

 23

required, stockholder action. This Agreement has been duly
executed and delivered by the Borrower and constitutes, and each other Loan
Document to which the Borrower is to be a party, when executed and delivered by
the Borrower, will constitute, a legal, valid and binding obligation of the
Borrower, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

         SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions require
no action by or in respect of, or filing with, any governmental body, agency or
official (other than (i) Exchange Act reporting requirements and (ii) actions
which have been taken, and filings which have been made, and are in full force
and effect) and do not and will not contravene, or constitute a default under,
any provision of applicable law or regulation or of the Amended Articles of
Incorporation or Regulations (or comparable documents) of the Borrower or of
any agreement for borrowed money or other material agreement binding upon the
Borrower.

         SECTION 3.04. Financial Condition; No Material Adverse Change.
(a) The Borrower
has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for the
fiscal year ended December 31, 2000, reported on by Ernst & Young LLP,
independent public accountants, and (ii) as of and for the fiscal quarter and
the portion of the fiscal year ended September 30, 2001. Such financial
statements present fairly, in all material respects, the financial position and
results of operations and cash flows of the Borrower and the consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP,
subject to year-end audit adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above.

         (b)  As of the date of this Agreement, there has been no material adverse
change in the business, financial position or results of operations of the
Borrower and the consolidated Subsidiaries, taken as a whole, since December
31, 2000.

         SECTION 3.05. Litigation and Environmental Matters.
 (a) As of the date of this
Agreement, there are no material legal proceedings, other than ordinary routine
litigation incidental to the business, to which the Borrower or any of the
consolidated Subsidiaries is a party or to which any of their respective
properties is subject that are required to be disclosed in the Borrower’s
periodic reports under the Exchange Act and that have not been so disclosed or
that involve this Agreement, any other Loan Document or the Transactions.

         (b)  The Borrower has established accruals for matters that are probable
and reasonably estimable as required by FASB Statement No. 5, “Accounting for
Contingencies.” To the Borrower’s knowledge, any liability that may result
from the resolution of known environmental matters in excess of amounts accrued
therefor will not have a Material Adverse Effect.

         SECTION 3.06. Investment and Holding Company Status. The Borrower is not (a)
an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940 or (b) a “holding company” as defined in, or
subject to regulation under, the Public Utility Holding Company Act of 1935.

 

 

 24

         SECTION 3.07. Taxes. As of the date of this Agreement, the Borrower and the
consolidated Subsidiaries have timely filed or caused to be filed all material
Tax returns and reports required to have been filed and has paid or caused to
be paid all Taxes required to have been paid by it, except (a) Taxes that are
being contested in good faith by appropriate proceedings and for which the
Borrower or such Subsidiary, as applicable, has set aside on its books adequate
reserves or (b) to the extent that the failure to do so could not reasonably be
expected to result in a Material Adverse Effect.

         SECTION 3.08. ERISA. As of the date of this Agreement, no ERISA Event has
occurred or is reasonably expected to occur that, when taken together with all
other such ERISA Events for which liability is reasonably expected to occur,
could reasonably be expected to result in a Material Adverse Effect. As of the
date of this Agreement, each member of the controlled group of corporations (as
defined in Section 414(b) of the Code) which includes the Borrower has
fulfilled its obligations under the minimum funding standards of ERISA and the
Code with respect to each defined benefit plan maintained by the Borrower and
the consolidated Subsidiaries.

ARTICLE IV

Conditions

         SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans
hereunder shall not become effective until each of the following conditions is
satisfied (or waived in accordance with Section 9.02):

		
	 	         (a) The Administrative Agent (or its counsel) shall have received
from each party hereto either (i) a counterpart of this Agreement signed
on behalf of such party or (ii) written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed
signature page of this Agreement) that such party has signed a
counterpart of this Agreement.
	 
	 	         (b) The Administrative Agent shall have received the favorable
written opinions (addressed to the Administrative Agent and the Lenders
and dated the Effective
Date) of the General Counsel of the Borrower, substantially in the
form of Exhibit B, and covering such other matters relating to the
Borrower, this Agreement, the other Loan Documents or the Transactions as
the Administrative Agent or the Required Lenders shall reasonably
request. The Borrower hereby requests such counsel to deliver such
opinion.
	 
	 	         (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of the
Borrower, the authorization of the Transactions and any other legal
matters relating to the Borrower, this Agreement, the other Loan
Documents or the Transactions, all in form and substance satisfactory to
the Administrative Agent and its counsel.
	 
	 	         (d) The Administrative Agent shall have received a certificate,
dated the Effective Date and signed by the President, a Vice President or
a Financial Officer of the

 

 

 25

Borrower, confirming compliance with the
conditions set forth in paragraphs (a) and (b) of Section 4.02.

		
	 	         (e) The Administrative Agent shall have received all fees and other
amounts due and payable on or prior to the Effective Date, including, to
the extent invoiced, reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by the Borrower hereunder or
under any other Loan Document.
	 
	 	         (f) The Existing Credit Agreement shall have been terminated and all
amounts outstanding or accrued for the accounts of or otherwise owed to
the lenders thereunder shall have been paid in full.

The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding.
Notwithstanding the foregoing, the obligations of the Lenders to make Loans
hereunder shall not become effective unless each of the foregoing conditions is
satisfied (or waived pursuant to Section 9.02) on or prior to January 22, 2002
(and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).

ARTICLE V

Affirmative Covenants

         Until the principal of and interest on each Loan and all fees payable
hereunder shall have been paid in full, the Borrower covenants and agrees with
the Lenders that:

         SECTION 5.01. Financial Statements and Other Information. The Borrower will
furnish to the Administrative Agent and each Lender:

		
	 	         (a) promptly upon the availability thereof and in any event within
120 days after each fiscal year, a copy of the Borrower’s Annual Report
to Shareholders and its Annual Report on Form 10-K for the fiscal year
then ended, as filed with the Securities and Exchange Commission and
which will include an annual audit report of the
Borrower, prepared on a consolidated basis and in accordance with
the Borrower’s then current method of accounting, which method must be in
accordance with GAAP, duly certified by independent certified public
accountants of nationally recognized standing selected by the Borrower;
	 
	 	         (b) promptly upon the availability thereof and in any event within
60 days after each fiscal quarter (except the last fiscal quarter) of
each fiscal year, a copy of the Borrower’s Quarterly Report on Form 10-Q
for the fiscal quarter then ended, as filed with the Securities and
Exchange Commission;
	 
	 	         (c) contemporaneously with the furnishing of a copy of each Annual
Report on Form 10-K provided for in paragraph (a) and of each Quarterly
Report on Form 10-Q provided for in paragraph (b), a duly completed
certificate of a Financial Officer of the Borrower in the form of Exhibit
C (each such certificate called a “Compliance Certificate”), showing
compliance with the covenants set forth in Sections 6.07 and 6.08,

 

 

 26

	 	 	 	and
certifying that no Default or Event of Default has occurred and is
continuing or, if there is any such an event, describing it and the
steps, if any, being taken to cure it;

		
	 	         (d) within five Business Days after any Financial Officer obtains
knowledge of any Default, if such Default is then continuing, a
certificate of a Financial Officer setting forth the details thereof and
the action which the Borrower is taking or proposes to take with respect
thereto;

		
	 	         (e) promptly upon the filing thereof, copies of each Current Report
on Form 8-K filed by the Borrower with the SEC; and

		
	 	         (f) from time to time such additional information concerning the
Borrower as the Administrative Agent, at the request of any Lender, may
reasonably request.

Information required to be delivered pursuant to paragraph (a), (b) or (e)
above shall be deemed to have been delivered on the date on which the Borrower
provides notice to the Lenders that such information has been posted on the
Borrower’s website on the internet at the website address listed on the
signature pages hereof, at sec.gov/edaux/searches. htm or at another website
identified in such notice and accessible by the Lenders without charge;
provided that (i) such notice may be included in a certificate delivered
pursuant to paragraph (c) above and (ii) the Borrower shall deliver paper
copies of the information referred to in paragraph (e) above to any Lender
which requests such delivery.

         SECTION 5.02. Existence; Conduct of Business. The Borrower will do or cause to
be done all things necessary to preserve, renew and keep in full force and
effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business; provided that the foregoing
shall not prohibit any merger, consolidation, liquidation or dissolution
permitted under Section 6.04.

         SECTION 5.03. Use of Proceeds. The Borrower will use the proceeds of the Loans
only for general corporate purposes, including the financing of acquisitions.
No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations U and X.

ARTICLE VI

Negative Covenants

         Until the principal of and interest on each Loan and all fees payable
hereunder have been paid in full, the Borrower covenants and agrees with the
Lenders that:

         SECTION 6.01. Indebtedness of Subsidiaries. The Borrower will not permit the
sum of (a) the aggregate outstanding principal amount of Indebtedness of
Subsidiaries (other than Permitted Subsidiary Indebtedness) and (b) Specified
Borrower Indebtedness at any time to exceed 15% of Consolidated Net Assets.

         SECTION 6.02. Mortgages. The Borrower will not, and will not permit any
Domestic Subsidiary to, directly or indirectly, create or assume any mortgage,
encumbrance, lien, pledge, charge, or security interest of any kind
(collectively and individually, a “Mortgage”)

 

 

 27

upon or in any of its interests
in any Principal Property or upon or in any shares of capital stock or
Indebtedness of any Domestic Subsidiary, whether such interest, capital stock
or Indebtedness is now owned or hereafter acquired, if such mortgage secures or
is intended to secure, directly or indirectly, the payment of any Indebtedness;
excluding, however, from the operation of this Section 6.02:

		
	 	         (a) Mortgages on any Principal Property acquired, constructed, or
improved by the Borrower or any Domestic Subsidiary after January 1,
2000, which are created or assumed contemporaneously with, or within 120
days after, such acquisition or completion of such construction or
improvement to secure or provide for the payment of any part of the
purchase price of such Principal Property or the cost of such
construction or improvement incurred after January 1, 2000, or, in
addition to Mortgages contemplated by clauses (b) and (c) below,
Mortgages on any such Principal Property existing at the time or placed
thereon at the time of acquisition or leasing thereof by the Borrower or
any Domestic Subsidiary, or conditional sales agreements or other title
retention agreements with respect to any Principal Property now owned or
leased or hereafter acquired or leased by the Borrower or a Domestic
Subsidiary;
	 
	 	         (b) Mortgages on property (including shares of capital stock or
Indebtedness of a corporation) of a corporation existing at the time such
corporation becomes a Domestic Subsidiary or is merged or consolidated
with the Borrower or a Domestic Subsidiary or existing at the time of a
sale, lease, or other disposition of the properties of such corporation
(or a division thereof) or other Person as an entirety or substantially
as an entirety (which includes the sale, lease, or other disposition of
all or substantially all the assets thereof) to the Borrower or a
Domestic Subsidiary, provided that no such Mortgage shall extend to any
other Principal Property of the Borrower or any Domestic Subsidiary or to
any shares of capital stock or any Indebtedness of any Domestic
Subsidiary;
	 
	 	         (c) Mortgages created by the Borrower or a Domestic Subsidiary to
secure Indebtedness of the Borrower or a Domestic Subsidiary to the
Borrower or to a wholly owned Subsidiary;
	 
	 	         (d) Mortgages in favor of the United States of America or any State,
territory or possession thereof, or any foreign country or any
department, agency, instrumentality, or political subdivision of any of
such domestic or foreign jurisdictions to secure partial, progress,
advance or other payments pursuant to any contract or statute or to
secure any Indebtedness incurred for the purpose of financing all or any
part of the purchase price of, or the cost of constructing, the property
subject to such Mortgages;
	 
	 	         (e) Mortgages for the sole purpose of extending, renewing, or
replacing (or successively extending, renewing, or replacing) in whole or
in part any mortgage existing on January 1, 2000, or referred to in the
foregoing clauses (a) to (d) inclusive or of any Indebtedness secured
thereby; provided, however, that the principal amount of Indebtedness
secured thereby shall not exceed the principal amount of Indebtedness so
secured at the time of such extension, renewal, or replacement and that
such extension, renewal, or replacement Mortgage shall be limited to all
or a part of the property which secured the Mortgage so extended,
renewed, or replaced (plus improvements on such property);

 

 

 28

		
	 	         (f) Mortgages on Margin Stock, if and to the extent that the value
of such Margin Stock exceeds 25% of the total assets of the Borrower and
its Subsidiaries subject to this Section;
	 
	 	         (g) Mortgages under which effective provision is made for all Loans
to be secured equally and ratably with any other Indebtedness secured,
directly or indirectly, thereby; and
	 
	 	         (h) Mortgages (other than Mortgages permitted by any of the
foregoing clauses) if, at the time of creation or assumption thereof and
after giving effect thereto, the aggregate principal amount of (i) the
Indebtedness secured by such Mortgages and (ii) the Attributable
Indebtedness related to Sale and Leaseback Transactions permitted under
clause (b) of Section 6.03 does not exceed 5% of Consolidated Net Assets,
determined as of a date not more than 95 days prior to such creation or
assumption.

         SECTION 6.03. Sale and
Lease-Back Transactions. (a) The Borrower will not, and
will not permit any Domestic Subsidiary to, sell, lease or transfer any
Principal Property owned by the Borrower or a Domestic Subsidiary as an
entirety, or any substantial portion thereof, to anyone other than a Wholly
Owned Domestic Subsidiary (or
the Borrower or a Wholly Owned Domestic Subsidiary in the case of a Domestic
Subsidiary) with the intention of taking back a lease of such property (herein
referred to as a “Sale and Leaseback Transaction”) except a lease for a period
of not more than 36 months by the end of which it is intended that the use of
such property by the lessee will be discontinued; provided, that
notwithstanding the foregoing, the Borrower or any Domestic Subsidiary may sell
any such property and lease it back if the net proceeds of such sale are at
least equal to the fair value (as determined by resolution adopted by the Board
of Directors of the Borrower) of such property, and (i) the Borrower or such
Domestic Subsidiary would be entitled pursuant to paragraphs (a)-(g) of Section
6.02 to create Indebtedness secured by a Mortgage on the property to be leased
in an amount equal to the Attributable Debt with respect to such Sale and
Leaseback Transaction without equally and ratably securing all the Loans, or
(ii) if such sale or transfer does not come within the exception provided by
the preceding clause (i), the net proceeds of such sale shall, and in any such
case the Borrower covenants that they will, within 120 days after such sale, be
applied (to the greatest extent possible) either to the repayment of the Loans
then outstanding when due or to the retirement of Consolidated Funded Debt of
the Borrower ranking at least on a parity with the Loans, or in part to one or
more of such alternatives and in part to another.

         (b)  Notwithstanding the provisions of paragraph (a) above, the Borrower
and/or any Domestic Subsidiary may enter into Sale and Leaseback Transactions
if, at the time of such entering into, and after giving effect thereto, the
aggregate amount of (i) Attributable Indebtedness related to such Sale and
Leaseback Transactions and (ii) Indebtedness secured by Mortgages permitted
under clause (h) of Section 6.02 does not exceed 5% of Consolidated Net Assets,
determined as of a date not more than 95 days prior to such creation or
assumption.

         SECTION 6.04. Fundamental Changes. The Borrower will not merge into or
consolidate with any other Person, or permit any other Person to merge into or
consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired), or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Default

 

 

 29

shall have occurred and be continuing (i) any Person may merge into
the Borrower in a transaction in which the Borrower is the surviving
corporation and (ii) the Borrower may merge into or consolidate with any other
Person in a transaction the primary purpose of which is to effect a
reincorporation of the Borrower under the laws of another state.

         SECTION 6.05. ERISA. The Borrower will not allow an ERISA Event to occur that,
when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect.

         SECTION 6.06. Change in Control. The Borrower will not permit to occur any
Change in Control.

         SECTION 6.07. Interest Coverage Ratio. The Borrower will not permit the ratio
of (a) Consolidated EBITDA to (b) Consolidated Interest Expense, in each case
for any period of four consecutive fiscal quarters ending on or after December
31, 2000, to be less than 3.00 to 1.00.

         SECTION 6.08. Minimum Consolidated Net Worth. The Borrower will not permit
Consolidated Net Worth to be less, at any date, than the sum of (i)
$1,600,000,000, (ii) 50% of Consolidated Net Income for each completed fiscal
quarter of the Borrower that shall have begun after December 31, 1999
(excluding any fiscal quarter for which Consolidated Net Income is negative),
and (iii) 50% of the amount by which Consolidated Net Worth is increased after
December 31, 1999 as a result of issuances of equity securities by the
Borrower.

ARTICLE VII

Events of Default

         If any of the following events (“Events of Default”) shall occur:

		
	 	         (a) default in the payment when due of any principal of any Loan or
default in the payment when due of interest on any Loan or fees payable
by the Borrower hereunder and continuance of such failure to pay interest
or fees for five Business Days after written notice thereof to the
Borrower from the Administrative Agent at the request of the Lender to
which such amounts are owed;
	 
	 	         (b) a default in the payment when due at maturity or on the date of
any required prepayment, redemption or repurchase (subject to any
applicable grace period) or by acceleration of any Material Indebtedness,
or a default in the performance or observance of any obligation or
condition with respect to any Material Indebtedness if such default
results in the acceleration of the maturity of such Material
Indebtedness; provided that, if any such default shall subsequently be
remedied, cured, or waived prior to the declaration that all Loans are
immediately due and payable pursuant to this Article VII, and as a result
the payment of such Material Indebtedness is no longer due, the Event of
Default existing hereunder by reason thereof shall likewise be deemed
thereupon to be remedied, cured, or waived and no longer in existence,
all without any further action by the parties hereto;

 

 

 30

		
	 	         (c) the Borrower or any Material Subsidiary generally fails to pay,
or admits in writing its inability to pay, debts as they become due; or
the Borrower or any Material Subsidiary applies for, consents to, or
acquiesces in the appointment of, a trustee, receiver, or other custodian
for the Borrower or any Material Subsidiary or for a substantial part of
the property thereof, or makes a general assignment for the benefit of
creditors; or, in the absence of such application, consent or
acquiescence, a trustee, or receiver, or other custodian is appointed for
the Borrower or any Material Subsidiary or for a substantial part of the
property of the Borrower or any Material Subsidiary; or any
bankruptcy, reorganization, debt arrangement, or other case or
proceeding under any bankruptcy or insolvency law, or any dissolution or
liquidation proceeding is commenced in respect of the Borrower or any
Material Subsidiary and if such case or proceeding is not commenced by
the Borrower or any Material Subsidiary, it is consented to or acquiesced
in by the Borrower or any Material Subsidiary or remains for 90
consecutive days undismissed or unstayed; or the Borrower or any Material
Subsidiary takes any corporate action to authorize any of the foregoing;
	 
	 	         (d) failure by the Borrower to comply with or to perform in any
material respect any provision of this Agreement (provided that in the
case of the provisions of Article VI, the preceding standard shall be
applied without regard to materiality) (which failure does not constitute
an Event of Default under any of the preceding subsections of this
Article VII) and, in the case of any provision contained in Article V or
in Section 6.01, 6.02, 6.03 or 6.05, continuance of such failure for 30
days after written notice thereof to the Borrower from the Administrative
Agent at the request of Required Lenders;
	 
	 	         (e) any representation or warranty made by the Borrower in Article
III of this Agreement is breached or is incorrect when made (or deemed
made) in any material respect and, with respect to any representation or
warranty other than those contained in Sections 3.04(b), 3.05, 3.07 and
3.08, the Borrower shall fail to take corrective actions reasonably
satisfactory to the Required Lenders within 30 days after written notice
thereof to the Borrower from the Administrative Agent at the request of
the Required Lenders; or
	 
	 	         (f) any final and nonappealable judgment or order from a judicial or
administrative body (which order or judgment is fully enforceable against
the Borrower in courts of the United States of America or any state
thereof) for the payment of money in excess of $100,000,000 (after
adjustments to reflect reductions for credits and set-offs asserted in
good faith by the Borrower) shall be rendered against the Borrower, shall
not have been discharged or vacated and shall have been in effect, in its
final and unappealable form, for a period of 30 consecutive days;

then, and in every such event (other than an event with respect to the Borrower
described in clause (c) of this Article), and at any time thereafter during the
continuance of such event, the Administrative Agent, at the request of the
Required Lenders, shall, by notice to the Borrower, take either or both of the
following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or in
part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued

 

 

 31

interest
thereon and all fees and other obligations of the Borrower accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower;
and in case of any event with respect to the Borrower described in clause (c)
of this Article, the Commitments shall automatically terminate and the
principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued hereunder, shall
automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower.

         The Administrative Agent shall give notice to the Borrower (i) under
paragraph (a) above promptly upon being requested to do so by the relevant
Lender and (ii) under paragraphs (d) and (e) above promptly upon being
requested to do so by the Required Lenders and, in each case, after having done
so, shall notify all the Lenders thereof.

ARTICLE VIII

The Administrative Agent

         In order to expedite the transactions contemplated by this Agreement,
JPMorgan is hereby appointed to act as Administrative Agent on behalf of the
Lenders. Each of the Lenders and each assignee of any such Lender hereby
irrevocably authorizes the Administrative Agent to take such actions on behalf
of such Lender or assignee and to exercise such powers as are delegated to the
Administrative Agent by the terms of the Loan Documents, together with such
actions and powers as are reasonably incidental thereto.

         With respect to the Loans made by it hereunder, the Administrative Agent
in its individual capacity and not as Administrative Agent shall have the same
rights and powers as any other Lender and may exercise the same as though it
were not the Administrative Agent, and the Administrative Agent and its
Affiliates in their respective individual capacities may accept deposits from,
lend money to and generally engage in any kind of business with the Borrower or
any Subsidiary or other Affiliate thereof as if it were not the Administrative
Agent.

         The Administrative Agent shall not have any duties or obligations except
those expressly set forth in the Loan Documents. Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated by the Loan
Documents that the Administrative Agent is required to exercise in writing by
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 9.02), and
(c) except as expressly set forth in the Loan Documents, the Administrative
Agent shall not have any duty to disclose, and the Administrative Agent shall
not be liable for the failure to disclose, any information relating to the
Borrower or any of its Subsidiaries that is communicated to or obtained by the
institution serving as 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 with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02) or in the absence of its own
culpable negligence, bad faith or wilful misconduct.

 

 

 32

The Administrative Agent
shall not be deemed to have knowledge of any Default other than a Default of
the types specified in clause (a) and (b) of Article VII unless and until
written notice thereof is given to the Administrative Agent by the Borrower or
a Lender, and 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 the Loan Documents, (ii) the contents
of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein,
(iv) the validity, enforceability, effectiveness or genuineness of the Loan
Documents or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein or
elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the 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 believed by it in
good faith to be genuine and to have been signed or sent by the proper Person.
The Administrative Agent also may rely upon any statement made to it orally or
by telephone and believed by it in good faith to be made by the proper Person,
and shall not incur any liability for relying thereon. The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower),
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.

         The Administrative Agent may perform any and all its duties and exercise
its rights and powers 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 its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding
paragraphs 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.

         Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders and the Borrower. Upon any such resignation, the
Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor. If no 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, appoint a
successor Administrative Agent which shall be a bank with an office in New
York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. The fees
payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent’s resignation
hereunder, the provisions of this Article and Section 9.03 shall continue in
effect for the benefit of such retiring Administrative Agent, its sub-agents
and their respective Related Parties in

 

 

 33

respect of any actions taken or omitted
to be taken by any of them while it was acting as Administrative Agent.

         Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender 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 also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender 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 or any other Loan Document or
any related agreement or any document furnished hereunder or thereunder.

         None of the Syndication Agent or the Co-Documentation Agents, in their
capacities as such, shall have any duties or obligations of any kind under this
Agreement.

ARTICLE IX

Miscellaneous

         SECTION 9.01. Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, 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 telecopy, as follows:

		
	 	         (a) if to the Borrower, to it at 1900 Richmond Road, Cleveland, Ohio
44124, Attention of Ronald P. Vargo, Vice President and Treasurer
(Telecopy No. (216) 291-7831), with a copy to TRW Inc., 1900 Richmond
Road, Cleveland, Ohio 44124, Attention of Secretary (Telecopy No. (216)
291-7070);
	 
	 	         (b) if to the Administrative Agent, to JPMorgan Chase Bank, Loan and
Agency Services Group, One Chase Manhattan Plaza, 8th Floor, New York,
New York 10081, Attention of Jesus Sang (Telecopy No. (212) 552-5650),
with a copy to JPMorgan Chase Bank, 270 Park Avenue, New York 10017,
Attention of Karen May Sharf (Telecopy No. (212) 270-5127); and
	 
	 	         (c) if to any other Lender, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and
other communications hereunder by notice to the other parties hereto. All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

         SECTION 9.02. Waivers;
Amendments. (a) No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder
or under any other Loan Document shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right or power, or any abandonment
or discontinuance of steps to enforce such a right or power, preclude any other
or further exercise thereof or the
exercise of any other right or

 

 

 34

power. The rights and remedies of the
Administrative Agent and the Lenders hereunder and under the other Loan
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of any Loan Document or
consent to any departure by the Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section,
and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. Without limiting the generality
of the foregoing, the making of a Loan shall not be construed as a waiver of
any Default, regardless of whether the Administrative Agent or any Lender may
have had notice or knowledge of such Default at the time.

         (b)  Neither this Agreement nor any of the Loan Documents nor any provision
hereof or thereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Borrower and the
Required Lenders or by the Borrower and the Administrative Agent with the
consent of the Required Lenders; provided that no such agreement shall (i)
increase the Commitment of any Lender without the written consent of such
Lender, (ii) reduce the principal amount of any Loan or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the maturing of the
principal amount of any Loan, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the
written consent of each Lender affected thereby, (iv) change Section 2.13(b) or
(c) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, or (v) change any of the
provisions of this Section or the definition of “Required Lenders” or any other
provision of any Loan Document specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent hereunder
without the prior written consent of the Administrative Agent.

         SECTION 9.03. Expenses; Indemnity;
Damage Waiver. (a) The Borrower 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
Cravath, Swaine & Moore, counsel for the Administrative Agent, in connection
with the syndication of the credit facilities provided for herein, the
preparation and administration of this Agreement or the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof (whether or
not the transactions contemplated hereby or thereby shall be consummated) and
(ii) all out-of-pocket expenses incurred by the Administrative Agent or any
Lender, including the reasonable fees, charges and disbursements of any counsel
for the Administrative Agent or any Lender, in connection with the enforcement
or protection of its rights in connection with any Loan Document, including its
rights under this Section, or in connection with the Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans.

         (b)  The Borrower agrees to indemnify each Lender, their respective
Affiliates and the respective directors, officers, agents and employees of the
foregoing (each an “Indemnitee”) and hold each Indemnitee harmless from and
against any and all losses, damages,
liabilities, costs and related expenses of any kind, including, without
limitation, reasonable fees and disbursements of counsel, which may be incurred
by such Indemnitee in connection with any

 

 

 35

investigative, administrative or
judicial proceeding (whether or not such Indemnitee shall be designated a party
thereto) brought or threatened relating to or arising out of this Agreement or
any actual or proposed use of proceeds of Loans hereunder; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, damages, liabilities, costs or related expenses are found by a final,
nonappealable judgment of a court of competent jurisdiction to have resulted
from the culpable negligence, bad faith or wilful misconduct of such
Indemnitee.

         (c)  To the extent that the Borrower fails to pay any amount required to be
paid by it to the Administrative Agent or any sub-agent appointed pursuant to
Article VIII under paragraph (a) or (b) of this Section, each Lender severally
agrees to pay to the Administrative Agent 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 in its capacity as such.

         (d)  To the extent permitted by applicable law, the Borrower shall not
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, any Loan or the use of the proceeds
thereof.

         (e)  All amounts due under this Section shall be payable promptly after
written demand therefor.

         SECTION
9.04. Successors and Assigns. (a) 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 the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender (and any attempted assignment
or transfer by the Borrower without such consent 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 and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

         (b)  Any Lender may assign to one or more assignees all or a portion of its
rights and obligations under this Agreement (including all or a portion of the
Loans at the time owing to it); provided that (i) except in the case of an
assignment to an Affiliate of that Lender, each of the Borrower and the
Administrative Agent must give their prior written consent to such assignment
(which consent shall not be unreasonably withheld or delayed), (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, (iii)
the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance, together
with a processing and recordation fee of $3,500, and (iv) the assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire; and provided further that any consent of the
Borrower otherwise required under this paragraph shall not be required if an
Event of

 

 

 36

Default under clause (c) of Article VII has occurred and is
continuing. Subject to acceptance and recording thereof pursuant to paragraph
(d) of this Section, from and after the effective date specified in each
Assignment and Acceptance the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Acceptance, 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 Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance 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 2.10, 2.11, 2.12 and 9.03, insofar as claims under such
sections arise out of the period prior to the effective date of such Assignment
and Acceptance). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this paragraph 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 paragraph (e)
of this Section.

         (c)  The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain at one of its offices in The City of New York a copy
of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans 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 Borrower, 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 the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

         (d)  Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee’s completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

         (e)  Any Lender may, without the consent of the Borrower or the
Administrative Agent sell participations to one or more banks or other entities
(a “Participant”) in all or a portion of such Lender’s rights and obligations
under this Agreement (including all or a portion of the 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 Borrower,
the Administrative Agent and the other Lenders 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, modification or waiver described in the first proviso
to Section 9.02(b) that affects such Participant. Subject to

 

 

 37

paragraph (f) of
this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 2.10, 2.11 and 2.12 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section.

         (f)  A Participant shall not be entitled to receive any greater payment
under Section 2.10, 2.11 or 2.12 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
Borrower’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 2.12
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with
Section 2.12(e) as though it were a Lender.

         (g)  Notwithstanding anything to the contrary contained herein, any Lender
(a “Designating Lender”) may grant to one or more special purpose funding
vehicles (each, an “SPV”), identified as such in writing from time to time by
the Designating Lender to the Administrative Agent and the Borrower, the option
to provide to the Borrower all or any part of any Loan that such Designating
Lender would otherwise be obligated to make to the Borrower pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by
any SPV to make any Loan, (ii) if an SPV elects not to exercise such option or
otherwise fails to provide all or any part of such Loan, the Designating Lender
shall be obligated to make such Loan pursuant to the terms hereof and (iii) the
Designating Lender shall remain liable for any indemnity or other payment
obligation with respect to its Commitment hereunder. The making of a Loan by an
SPV hereunder shall utilize the Commitment of the Designating Lender to the
same extent, and as if, such Loan were made by such Designating Lender. As to
any Loans or portion thereof made by it, each SPV shall have all the rights
that a Lender making such Loans or portion thereof would have had under this
Agreement; provided, however, that each SPV shall have granted to its
Designating Lender an irrevocable power of attorney to deliver and receive all
communications and notices under this Agreement and to exercise on such SPV’s
behalf all such SPV’s voting rights under this Agreement. No additional
promissory note shall be required to evidence the Loans or portion thereof made
by an SPV; and the related Designating Lender shall be deemed to hold any
promissory note held by it as agent for such SPV to the extent of the Loans or
portion thereof funded by such SPV. In addition, any payments for the account
of any SPV shall be paid to its Designating Lender as agent for such SPV. Each
party hereto hereby agrees that no SPV shall be liable for any indemnity or
payment under this Agreement for which a Lender would otherwise be liable. In
furtherance of the foregoing, each party hereto hereby agrees (which agreements
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 indebtedness of any SPV, it will not institute against,
or join any other person in instituting against, such SPV any bankruptcy,
reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof. In
addition, notwithstanding anything to the contrary contained in this paragraph
or otherwise in this Agreement, any SPV may (i) at any time and without paying
any processing fee therefor, assign or participate all or a portion of its
interest in any Loans to the Designating Lender or to any financial
institutions providing liquidity and/or credit support to or for the account of
such SPV to support the funding or maintenance of Loans and (ii) disclose on a
confidential basis any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancements to such SPV. This

 

 

 38

paragraph may not be
amended without the written consent of any Designating Lender affected thereby.
The Designating Lender shall indemnify the Borrower for any liability incurred
by the Borrower as a result of the violation by such SPV of any Federal
securities laws.

         (h)  Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

         SECTION 9.05. Survival. All covenants, agreements, representations and
warranties made by the Borrower herein or in any other Loan Document and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and thereto and shall survive the
execution and delivery of this Agreement and any other Loan Document and the
making of any Loans, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that the Administrative Agent or any
Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder
(provided that any such knowledge of the Administrative Agent or any Lender
will not be attributed to any other Lender or the Administrative Agent for
purposes of this Section 9.05), and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement or any other Loan Document is
outstanding and unpaid and so long as the Commitments have not expired or
terminated. The provisions of Sections 2.10, 2.11, 2.12 and 9.03 and Article
VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Commitments or the termination of
this Agreement or any other Loan Document or any provision hereof or thereof.

         SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. This Agreement, the
other Loan Documents and any separate letter agreements with respect to fees
payable to the Administrative Agent 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 which, when taken
together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 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.

         SECTION 9.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality
or
unenforceability without affecting the validity, legality

 

 

 39

and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

         SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and
be continuing and the Required Lenders shall have requested the Administrative
Agent to declare the Loans immediately due and payable or such Loans have
automatically become due and payable, each Lender and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
obligations at any time owing by such Lender or Affiliate to or for the credit
or the account of the Borrower against any of and all the obligations of the
Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under
this Agreement and although such obligations may be unmatured. The rights of
each Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

         SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process.
(a) This Agreement shall be construed in accordance with and governed by the
law of the State of New York.

         (b)  The Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to any
Loan Document, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby 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 or, to the extent permitted by 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 shall affect any right that the Administrative Agent
or any Lender may otherwise have to bring any
action or proceeding relating to this Agreement or any other Loan Document
against the Borrower or its properties in the courts of any jurisdiction.

         (c)  The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, 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 law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

         (d)  Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

         SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE

 

 

 40

	 	 	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, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

         SECTION 9.11. Headings. Article and Section headings and the Table of Contents
used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

         SECTION 9.12. Confidentiality. Each of the Administrative Agent and the
Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its Affiliates’
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (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, (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party
to this Agreement, (e) in connection with the exercise of any remedies
hereunder or any suit, 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 any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement, (g) with the consent of the Borrower or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach
of this Section or (ii) becomes available to the Administrative Agent or any
Lender on a nonconfidential basis from a source other than the Borrower. For
the purposes of this Section, “Information” means all information received from
the Borrower relating to the Borrower or its business, other than any such
information that is available to the Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by the Borrower; provided that, in
the case of information received from the Borrower 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.

         SECTION 9.13. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively the “Charges”), shall exceed the
maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in

 

 

 41

accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

 

 

 42

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

	 	 	 	 	 
	 	 	TRW INC.,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Ronald P. Vargo

Name: Ronald P. Vargo

Title: Vice President and Treasurer

Website: www.trw.com
	

	
	
	

	 	 	JPMORGAN CHASE BANK, as

Administrative Agent,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Karen M. Sharf

Name: Karen M. Sharf

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	NATIONAL CITY BANK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ William R. McDonnell

Name: William R. McDonnell

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	SAN PAOLO IMI SPA,
	
	
	
	

	 	 	
by
	 	/s/ Carlo Persico

Name: Carlo Persico

Title: General Manager
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Ettore Viazzo

Name: Ettore Viazzo

Title: Vice President

 

 

 43

	 	 	 	 	 
	 	 	DEUTSCHE BANK AG NEW YORK

BRANCH,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Oliver Schwarz

Name: Oliver Schwarz

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/Stephan G. Peetzen

Name: Stephen G. Peetzen

Title: Director
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	BNP PARIBAS,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Christine Howatt

Name: Christine Howatt

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/Jo Ellen Bender

Name: Jo Ellen Bender

Title: Director
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	INDUSTRIAL BANK OF JAPAN,

LIMITED,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Walter R. Wolff

Name: Walter R. Wolff

Title: Joint General Manager and Group Head
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	BARCLAYS BANK PLC,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ L. Peter Yetman

Name: L. Peter Yetman

Title: Director

 

 

 44

	 	 	 	 	 
	 	 	MELLON BANK, N.A.,
	
	
	
	

	 	 	
by
	 	/s/ Robert J. Reichenbach

Name: Robert J. Reichenbach

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	THE BANK OF NEW YORK,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ John M. Lokay, Jr.

Name: John M. Lokay, Jr.

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	BANCA NAZIONALE DEL LAVORO
S.p.A.-NEW YORK BRANCH,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Carlo Vecchi

Name: Carlo Vecchi

Title: Senior Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ Juan J. Cortes

Name: Juan J. Cortes

Title: Vice President
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	BANK OF TOKYO-MITSUBISHI TRUST

COMPANY,
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
by
	 	/s/ F.N. Wilms

Name: F.N. Wilms

Title: Vice President

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