Document:

exv10w27

Exhibit 10.27

EXECUTION VERSION

 

CREDIT AGREEMENT

dated as of

March 11, 2011

among

HUNTINGTON INGALLS INDUSTRIES, INC.,

The Lenders Party Hereto,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, Issuing Bank and Swingline Lender,

and

CREDIT SUISSE AG,

as Swingline Lender

 

J.P. MORGAN SECURITIES LLC and

CREDIT SUISSE SECURITIES (USA) LLC,

as Lead Arrangers

J.P. MORGAN SECURITIES LLC,

CREDIT SUISSE SECURITIES (USA) LLC,

WELLS FARGO SECURITIES, LLC and

RBS SECURITIES INC.,

as Joint Bookrunners

CREDIT SUISSE SECURITIES (USA) LLC,

as Syndication Agent

THE ROYAL BANK OF SCOTLAND PLC,

WELLS FARGO BANK, N.A.,

SUNTRUST BANK,

BNP PARIBAS and

SUMITOMO MITSUI BANKING CORPORATION,

as Documentation Agents

 

 

 

TABLE OF CONTENTS

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 1

	Definitions

	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	32	 
	SECTION 1.03. Terms Generally
	 	 	32	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	32	 
	SECTION 1.05. Currency Translation
	 	 	33	 
	SECTION 1.06. Pro Forma Calculations
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 2

	The Credits

	 
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	33	 
	SECTION 2.02. Loans and Borrowings
	 	 	33	 
	SECTION 2.03. Requests for Borrowings
	 	 	34	 
	SECTION 2.04. Swingline Loans
	 	 	35	 
	SECTION 2.05. Letters of Credit
	 	 	36	 
	SECTION 2.06. Funding of Borrowings
	 	 	42	 
	SECTION 2.07. Interest Elections
	 	 	42	 
	SECTION 2.08. Termination and Reduction of Commitments
	 	 	44	 
	SECTION 2.09. Repayment of Loans; Evidence of Debt
	 	 	44	 
	SECTION 2.10. Amortization of Term Loans
	 	 	45	 
	SECTION 2.11. Voluntary Prepayments
	 	 	46	 
	SECTION 2.12. Mandatory Prepayments
	 	 	46	 
	SECTION 2.13. Fees
	 	 	48	 
	SECTION 2.14. Interest
	 	 	49	 
	SECTION 2.15. Alternate Rate of Interest
	 	 	50	 
	SECTION 2.16. Increased Costs
	 	 	50	 
	SECTION 2.17. Break Funding Payments
	 	 	52	 
	SECTION 2.18. Taxes
	 	 	52	 
	SECTION 2.19. Payments Generally; Pro Rata Treatment; Sharing of Set Offs
	 	 	56	 
	SECTION 2.20. Mitigation Obligations; Replacement of Lenders
	 	 	57	 
	SECTION 2.21. Defaulting Lenders
	 	 	58	 
	 
	 	 	 	 
	ARTICLE 3

	Representations and Warranties

	 
	 	 	 	 
	SECTION 3.01. Organization; Powers
	 	 	60	 
	SECTION 3.02. Authorization; Enforceability
	 	 	60	 
	SECTION 3.03. Governmental Approvals; No Conflicts
	 	 	60	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.04. Financial Condition; No Material Adverse Change
	 	 	61	 
	SECTION 3.05. Properties
	 	 	61	 
	SECTION 3.06. Litigation and Environmental Matters
	 	 	62	 
	SECTION 3.07. Compliance with Laws and Agreements
	 	 	63	 
	SECTION 3.08. Investment Company Status
	 	 	63	 
	SECTION 3.09. Taxes
	 	 	63	 
	SECTION 3.10. ERISA
	 	 	64	 
	SECTION 3.11. Disclosure
	 	 	64	 
	SECTION 3.12. Use of Proceeds
	 	 	64	 
	SECTION 3.13. Margin Regulations
	 	 	64	 
	SECTION 3.14. Subsidiaries
	 	 	64	 
	SECTION 3.15. Collateral Documents
	 	 	64	 
	SECTION 3.16. Labor Matters
	 	 	65	 
	SECTION 3.17. Solvency
	 	 	65	 
	SECTION 3.18. Transaction Documents
	 	 	65	 
	SECTION 3.19. Insurance
	 	 	65	 
	SECTION 3.20. OFAC
	 	 	66	 
	SECTION 3.21. Patriot Act
	 	 	66	 
	 
	 	 	 	 
	ARTICLE 4

	Conditions

	 
	 	 	 	 
	SECTION 4.01. Effective Date
	 	 	66	 
	SECTION 4.02. Funding Date
	 	 	68	 
	SECTION 4.03. Each Credit Event
	 	 	70	 
	 
	 	 	 	 
	ARTICLE 5

	Affirmative Covenants

	 
	 	 	 	 
	SECTION 5.01. Financial Statements; Ratings Change and Other Information
	 	 	71	 
	SECTION 5.02. Notices of Material Events
	 	 	73	 
	SECTION 5.03. Existence; Conduct of Business
	 	 	73	 
	SECTION 5.04. Payment of Obligations
	 	 	73	 
	SECTION 5.05. Maintenance of Properties; Insurance
	 	 	74	 
	SECTION 5.06. Books and Records; Inspection Rights; Maintenance of Ratings
	 	 	75	 
	SECTION 5.07. Compliance with Laws
	 	 	75	 
	SECTION 5.08. Use of Proceeds and Letters of Credit
	 	 	75	 
	SECTION 5.09. Employee Benefits
	 	 	75	 
	SECTION 5.10. Compliance with Environmental Laws
	 	 	75	 
	SECTION 5.11. Further Assurances
	 	 	76	 
	SECTION 5.12. Designation of Subsidiaries
	 	 	76	 
	SECTION 5.13. Maintenance of Separate Existence
	 	 	77	 
	SECTION 5.14. Post-Funding Date Collateral Matters
	 	 	77	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 6

	Negative Covenants

	 
	 	 	 	 
	SECTION 6.01. Indebtedness
	 	 	78	 
	SECTION 6.02. Liens
	 	 	80	 
	SECTION 6.03. Sale and Lease-Back Transactions
	 	 	83	 
	SECTION 6.04. Investments, Loans and Advances
	 	 	83	 
	SECTION 6.05. Mergers, Consolidations, Sales of Assets and Acquisitions
	 	 	85	 
	SECTION 6.06. Restricted Payments; Restrictive Agreements
	 	 	86	 
	SECTION 6.07. Transactions with Affiliates
	 	 	88	 
	SECTION 6.08. Business of Borrower and Restricted Subsidiaries and Titan II
	 	 	89	 
	SECTION 6.09. Certain Other Indebtedness
	 	 	89	 
	SECTION 6.10. Capital Expenditures
	 	 	90	 
	SECTION 6.11. Interest Coverage Ratio
	 	 	91	 
	SECTION 6.12. Maximum Leverage Ratio
	 	 	92	 
	SECTION 6.13. Fiscal Year
	 	 	92	 
	SECTION 6.14. Transactions
	 	 	92	 
	 
	 	 	 	 
	ARTICLE 7

	Events of Default

	 
	 	 	 	 
	ARTICLE 8

	The Administrative Agent and the Collateral Agent

	 
	 	 	 	 
	ARTICLE 9

	Miscellaneous

	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	98	 
	SECTION 9.02. Waivers; Amendments
	 	 	98	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	100	 
	SECTION 9.04. Successors and Assigns
	 	 	102	 
	SECTION 9.05. Survival
	 	 	105	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	106	 
	SECTION 9.07. Severability
	 	 	106	 
	SECTION 9.08. Right of Setoff
	 	 	106	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	107	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	107	 
	SECTION 9.11. Headings
	 	 	108	 
	SECTION 9.12. Confidentiality
	 	 	108	 
	SECTION 9.13. Interest Rate Limitation
	 	 	109	 
	SECTION 9.14. Conversion of Currencies
	 	 	109	 
	SECTION 9.15. USA PATRIOT Act
	 	 	110	 
	SECTION 9.16. Collateral Release and Recapture
	 	 	110	 
	SECTION 9.17. Collateral and Guaranty Release
	 	 	110	 
	SECTION 9.18. Security Clearance
	 	 	111	 

iii

 

	 	 	 	 	 
	 	 	Page
	SECTION 9.19. No Fiduciary Relationship
	 	 	112	 

iv

 

SCHEDULES:

Schedule 1.01A — Spin-off Transactions

Schedule 1.01B — Mortgaged Real Properties

Schedule 2.01 — Commitments

Schedule 2.05A — LC Commitments

Schedule 2.05B — Existing Letters of Credit

Schedule 3.05(f) — Owned Real Property

Schedule 3.05(g) — Leased Real Property

Schedule 3.06 — Disclosed Matters

Schedule 3.14 — Subsidiaries

Schedule 6.01 — Existing Indebtedness

Schedule 6.02 — Existing Liens

Schedule 6.06 — Existing Agreements

Schedule 6.07 — Permitted Transactions with Affiliates

EXHIBITS:

	 	 	 

	Exhibit A

	 	Form of Assignment and Assumption
	Exhibit B

	 	Form of Borrowing Request
	Exhibit C

	 	Form of LC Continuing Agreement
	Exhibit D

	 	Form of Guarantee and Security Agreement
	Exhibit E

	 	Form of Global Intercompany Note
	Exhibit F

	 	Form of Mortgages
	Exhibit G

	 	Form of Compliance Certificate
	Exhibit H

	 	Form of Confidentiality Agreement
	Exhibit I

	 	Form of U.S. Tax Certificate

v

 

     CREDIT AGREEMENT dated as of March 11, 2011 among HUNTINGTON INGALLS INDUSTRIES, INC., the
LENDERS party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent, an Issuing Bank and a
Swingline Lender, and CREDIT SUISSE AG, as Swingline Lender.

     The Borrower has requested the Lenders to extend credit in the form of (a) a term loan
facility comprising Term Loans extended on the Funding Date, in an aggregate principal amount not
in excess of $575,000,000, and (b) a revolving credit facility comprising Revolving Loans extended
at any time and from time to time after the Spin-off, in an aggregate principal amount at any time
outstanding not in excess of $650,000,000; and, as sub-facilities of such revolving credit
facility, the Borrower has requested (x) the Swingline Lenders to extend credit, at any time after
the Spin-off, in the form of Swingline Loans, in an aggregate principal amount at any time
outstanding not in excess of $100,000,000, and (y) the Issuing Banks to issue Letters of Credit, at
any time and from time to time on or after the Funding Date, in an aggregate face amount at any
time outstanding not in excess of $350,000,000.

     The Lenders are willing to extend such credit to the Borrower, and the Issuing Banks are
willing to issue Letters of Credit for the account of the Borrower and its Restricted Subsidiaries,
in each case on the terms and subject to the conditions set forth herein. In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

ARTICLE 1

Definitions

     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.

     “Acquired Business” means the shipbuilding business of Northrop Grumman (including without
limitation, the shipbuilding business conducted by the Main Shipbuilding Subsidiary and its
subsidiaries) that is being transferred to the Borrower pursuant to the Distribution Agreement.

     “Acquired Entity” has the meaning assigned to such term in Section 6.04(g).

     “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
an interest rate per annum (rounded upwards, if necessary to the next 1/16 of 1%) equal to (a) the
LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

     “Administrative Agent” means JPMCB, 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 as of any date of determination, another
Person that as of such date directly, or indirectly through one or more intermediaries, Controls or
is Controlled by or is under common Control with the Person specified.

     “Agents” has the meaning assigned to such term in Article 8.

     “Agreement Value” means, in respect of any one or more Swap Contracts, after taking into
account the effect of any legally enforceable netting agreement relating to such Swap Contracts,
(a) for any date on or after the date such Swap Contracts have been closed out and termination
value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior
to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for
such Swap Contracts, as determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or
any Affiliate of a Lender).

     “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the
Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is
not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the
avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate appearing on the
Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of such page) at
approximately 11:00 a.m. London time on such day. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be
effective from and including the effective date of such change in the Prime Rate, the Federal Funds
Effective Rate or the Adjusted LIBO Rate, respectively.

     “Applicable ECF Percentage” means, with respect to any fiscal year, (i) 50%, if the Leverage
Ratio at the end of such fiscal year is greater than 2.75 to 1.00, (ii) 25%, if the Leverage Ratio
at the end of such fiscal year is greater than 2.00 to 1.00 but less than or equal to 2.75 to 1.00,
and (iii) 0%, if the Leverage Ratio at the end of such fiscal year is equal to or less than 2.00 to
1.00.

     “Applicable Margin” means, for any day, with respect to any ABR Loan or Eurodollar Loan, or
with respect to the commitment fees payable hereunder, as the case may be, the applicable margin
per annum set forth below under the caption “ABR Spread”, “Eurodollar Spread” or “Commitment Fee
Rate”, as the case may be, based upon the Leverage Ratio (determined as of the last day of the
previous fiscal quarter), provided that until the delivery to the Administrative Agent pursuant to
Section 5.01 of the Borrower’s consolidated financial information for the Borrower’s second full
fiscal quarter ending after the Funding Date, the “Applicable Margin” shall be the applicable rate
per annum set forth below in Category 3:

2

 

	 	 	 	 	 	 	 
	 	 	 	 	Eurodollar	 	Commitment
	Leverage Ratio:	 	ABR Spread	 	Spread	 	Fee Rate
	Category 1

> 4.0 to 1.0
	 	2.00%
	 	3.00%
	 	0.50%
	 	 	 	 	 	 	 
	Category 2

< 4.0 to 1.0 but

> 3.5 to 1.0
	 	1.75%
	 	2.75%
	 	0.50%
	 	 	 	 	 	 	 
	Category 3

< 3.5 to 1.0 but

> 2.5 to 1.0
	 	1.50%
	 	2.50%
	 	0.50%
	 	 	 	 	 	 	 
	Category 4

< 2.5 to 1.0 but

> 2.0 to 1.0
	 	1.25%
	 	2.25%
	 	0.40%
	 	 	 	 	 	 	 
	Category 5

< 2.0 to 1.0
	 	1.00%
	 	2.00%
	 	0.35%

     For purposes of the foregoing, (a) the Applicable Margin shall be determined as of the end of
each fiscal quarter of the Borrower based upon the Borrower’s annual or quarterly consolidated
financial statements and certificates delivered pursuant to Section 5.01 (a) — (c) and (b) each
change in the Applicable Margin resulting from a change in the Leverage Ratio shall be effective
during the period commencing on and including the date of delivery to the Administrative Agent of
such consolidated financial statements and certificates indicating such change and ending on the
date immediately preceding the effective date of the next such change, provided that the Leverage
Ratio shall be deemed to be in Category 1 (A) at any time that an Event of Default has occurred and
is continuing or (B) if the Borrower fails to deliver the annual or quarterly consolidated
financial statements and certificates required to be delivered by it pursuant to Section 5.01 (a)
— (c), during the period from the expiration of the time for delivery thereof until such
consolidated financial statements are delivered.

     In the event that any financial statement or compliance certificate delivered pursuant to
Section 5.01 (a) — (c) is inaccurate (regardless of whether this Agreement or the Commitments are
in effect when such inaccuracy is discovered), (a) if such inaccuracy, if corrected, would have led
to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the
Applicable Margin applied for such Applicable Period, then (i) promptly after the discovery of any
such inaccuracy by a Financial Officer, the Borrower shall deliver to the Administrative Agent a
corrected financial statement and a corrected compliance certificate for such Applicable Period,
(ii) the Applicable Margin shall be determined based on the corrected compliance certificate for
such Applicable Period, and (iii) the Borrower shall immediately pay to the Administrative Agent
(for the account of the Lenders during the Applicable Period or their successors and assigns) the
accrued additional interest owing as a result of such increased Applicable Margin for such
Applicable Period; and (b) if such inaccuracy, if corrected, would have led to the application of a
lower Applicable Margin for any Applicable Period than the Applicable Margin applied for such
Applicable Period, the applicable Lenders shall have no obligation to repay any interest or fees to
the Borrower, provided that if, as a result of any

3

 

restatement or other event a proper calculation of the Leverage Ratio would have resulted in
higher pricing for one or more periods and lower pricing for one or more other periods (due to the
shifting of income or expenses from one period to another period or any similar reason), then the
amount payable by the Borrower pursuant to clause (a) above shall be based upon the excess, if any,
of the amount of interest and fees that should have been paid for all applicable periods over the
amount of interest and fees paid for all such periods. This paragraph shall not limit the rights
of the Administrative Agent or the Lenders with respect to Section 2.14(c) and Article 7 hereof,
and shall survive the termination of this Agreement.

     “Applicable Revolving Percentage” means, with respect to any Revolving Credit Lender, the
percentage of the total Revolving Credit Commitments represented by such Lender’s Revolving Credit
Commitment; provided that in the case of Section 2.21 when a Defaulting Lender shall exist,
“Applicable Revolving Percentage” shall mean the percentage of the total Revolving Credit
Commitments (disregarding any Defaulting Lender’s Revolving Credit Commitment) represented by such
Lender’s Revolving Credit Commitment. If the Revolving Credit Commitments have terminated or
expired, the Applicable Revolving Percentages shall be determined based upon the Revolving Credit
Commitments most recently in effect, giving effect to any assignments and to any Revolving Credit
Lender’s status as a Defaulting Lender at the time of determination.

     “Approved Fund” means any Person (other than a natural person) that is engaged in making,
purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary
course of its business and that is administered or managed by a Lender, an Affiliate of a Lender or
an entity or an Affiliate of an entity that administers or manages a Lender.

     “Ascension” means Ascension Holding Company, LLC, a Delaware limited liability company and
majority-owned joint venture of the Main Shipbuilding Subsidiary.

     “Asset Sale” means the sale, transfer or other disposition (by way of merger, casualty,
condemnation or otherwise, but not including by way of lease or license (except a “lease to own” or
a sale leaseback transaction)) by the Borrower or any of the Restricted Subsidiaries to any Person
other than (x) the Borrower or any Subsidiary Guarantor, or (y) any other Restricted Subsidiary if
the transferor is not the Borrower or a Subsidiary Guarantor, of (a) any Equity Interests of any of
the Subsidiaries (other than directors’ qualifying shares) or (b) any other assets of the Borrower
or any of the Restricted Subsidiaries (other than (i) dispositions of inventory, damaged, obsolete,
surplus or worn out assets, scrap and Permitted Investments, in each case disposed of in the
ordinary course of business (provided that dispositions of surplus assets and scrap in connection
with the closing of the shipyard in Avondale, Louisiana or the facilities in Waggaman, Louisiana,
or Tallulah, Louisiana shall not be so required to be in the ordinary course of business), (ii)
dispositions between or among Foreign Restricted Subsidiaries, (iii) any sale, transfer or other
disposition or series of related sales, transfers or other dispositions having a value not in
excess of $5,000,000 and (iv) dispositions made pursuant to the Transaction Documents (other than
the Loan Documents and the Senior Note Documents)).

     “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an
assignee (with the consent of any party whose consent is required by Section

4

 

9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form
approved by the Administrative Agent.

     “Available Retained Basket Amount” means, at any time, the sum of:

     (a) the cumulative amount of Excess Cash Flow ((x) plus any Unused Withheld Amount from the
prior fiscal years, which amount shall be added only after the Applicable ECF Percentage of such
amount has been paid to the Term Lenders in accordance with Section 2.12(e) and (y) plus any amount
by which the Excess Cash Withheld Amount is reduced in accordance with Section 2.12(d), which
amount shall be added only after the Applicable ECF Percentage of such amount has been paid to the
Term Lenders in accordance with Section 2.12(d) of the Borrower and its Restricted Subsidiaries for
each fiscal year commencing with the fiscal year ending December 31, 2011 minus the portion of such
Excess Cash Flow that has been (or is required to be) applied to the prepayment of Term Loans in
accordance with Sections 2.12(c), 2.12(d) and 2.12(e); plus

     (b) the cumulative amount of Net Cash Proceeds from the issue from time to time of Qualified
Capital Stock of the Borrower after the date of the Spin-off, other than issuances to any
Restricted Subsidiary, minus

     (c) the cumulative aggregate, for each reduction in the Gross ECF Overpayment Amount pursuant
to Section 2.12(c) at or prior to such time, of the product of (x) the associated Underestimated
Amount giving rise to the portion of the Excess Cash Adjustment Amount so reduced, and (y) 1.00
less the applicable Applicable ECF Percentage, minus

     (d) the Available Retained Basket Usage Amount at such time.

     “Available Retained Basket Usage Amount” means, at any time, the aggregate amount of any
investments outstanding at such time pursuant to Section 6.04(n), any Restricted Payments made
prior to such time pursuant to Section 6.06(a)(iii) or (vii), any payment made prior to such time
pursuant to Section 6.09(b)(iii) or (iv), or any amount of Capital Expenditures made prior to such
time pursuant to Section 6.10(i).

     “Availability Period” means (i) with respect to Revolving Loans and Swingline Loans, the
period after the Spin-off to but excluding the earlier of the Revolving Credit Maturity Date and
the date of termination of the Revolving Credit Commitments and (ii) with respect to Letters of
Credit, the period from and including the Funding Date to but excluding the earlier of the
Revolving Credit Maturity Date and the date of termination of the Revolving Credit Commitments.

     “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator,
custodian, assignee for the benefit of creditors or similar Person charged with the reorganization
or liquidation of its business appointed for it, or, in the good faith determination of the
Administrative Agent, has taken any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy
Event shall not result solely by virtue of any ownership interest, or the acquisition of any

5

 

ownership interest, in such Person by a Governmental Authority or instrumentality thereof,
provided, further, that such ownership interest does not result in or provide such Person with
immunity from the jurisdiction of courts within the United States or from the enforcement of
judgments or writs of attachment on its assets or permit such Person (or such Governmental
Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or
agreements made by such Person.

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

     “Borrower” means Huntington Ingalls Industries, Inc., a Delaware corporation.

     “Borrower Notice” has the meaning assigned to such term in Section 5.14.

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

     “Borrowing Request” means a request by the Borrower in accordance with Section 2.03 and
substantially in the form of Exhibit B or such other form as shall be approved by the
Administrative Agent.

     “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 Eurodollar Loan, the term “Business Day” shall also exclude any day on which
banks are not open for dealings in US Dollar deposits in the London interbank market.

     “CapEx Pull Forward Amount” has the meaning assigned to such term in Section 6.10.

     “CapEx Rollover Amount” has the meaning assigned to such term in Section 6.10.

     “Capital Expenditures” means, for any period, (a) the additions to property, plant and
equipment and other capital expenditures that are (or should be) set forth in a consolidated
statement of cash flows of the Borrower and the Restricted Subsidiaries for such period prepared in
accordance with GAAP and (b) Capital Lease Obligations incurred by the Borrower and its
consolidated Restricted Subsidiaries during such period, but excluding in each case any such
expenditure made to restore, replace or rebuild property to the condition of such property (or its
reasonable equivalent) immediately prior to any damage, loss, destruction or condemnation of such
property, to the extent such expenditure is made with insurance proceeds, condemnation awards or
damage recovery proceeds relating to any such damage, loss, destruction or condemnation.

     “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

6

 

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 Equity Interests representing more than 35% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Borrower (provided that the
foregoing shall not apply to the ownership of such voting Equity Interests by Northrop Grumman on
or prior to the completion of the Spin-off); (b) occupation of a majority of the seats (other than
vacant seats) on the board of directors of the Borrower by Persons who were neither (i) nominated
by, or whose nomination was approved by, the board of directors of the Borrower nor (ii) appointed
by directors so nominated; or (c) any “change of control” (or any comparable term) shall occur
under the Senior Notes or any other Material Indebtedness to the extent resulting in a put right
for the holders thereof.

     “Change in Law” means (a) the adoption or taking effect 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 any Issuing Bank (or, for purposes of Section 2.16(b), by any lending
office of such Lender or by such Lender’s or such Issuing Bank’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; provided, however, that notwithstanding
anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act
and all requests, rules, guidelines or directives thereunder or issued in connection therewith and
(y) all requests, rules, guidelines or directives promulgated by the Bank for International
Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or
the United States regulatory authorities, in each case pursuant to Basel III, shall in each case be
deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

     “Class”, when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or
the Loans comprising such Borrowing, are Revolving Loans, Term Loans or Swingline Loans and (b) any
Commitment, refers to whether such Commitment is a Revolving Credit Commitment or a Term Loan
Commitment.

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

     “Collateral” means all the “Collateral” as defined in any Collateral Document and shall also
include the Mortgaged Properties.

     “Collateral Agent” means JPMCB, in its capacity as collateral agent under the Loan Documents.

     “Collateral Documents” means the Mortgages, the Guarantee and Security Agreement and each of
the security agreements, mortgages and other instruments and documents executed and delivered
pursuant to any of the foregoing or pursuant to Section 5.11.

7

 

     “Collateral Reversion Date” has the meaning assigned to such term in Section 9.16(b).

     “Collateral Suspension Date” has the meaning assigned to such term in Section 9.16(a).

     “Collateral Suspension Period” has the meaning assigned to such term in Section 9.16(b).

     “Collateral Suspension Ratings Level” means the condition deemed to occur at any time after
the consummation of the Spin-off at which (i) the Borrower’s senior unsecured non-credit enhanced
long-term indebtedness is rated at least Baa3 (with a stable or better outlook) by Moody’s and at
least BBB- (with a stable or better outlook) by S&P and (ii) the Borrower obtains and maintains a
corporate credit rating of at least Baa3 (with a stable or better outlook) by Moody’s and a
corporate family rating of at least BBB- (with a stable or better outlook) by S&P.

     “Commitment” means, with respect to any Lender, such Lender’s Revolving Credit Commitment and
Term Loan Commitment. The initial amount of each Lender’s Revolving Credit Commitment or Term Loan
Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its Commitment, as applicable. The initial aggregate amount of the
Lenders’ Commitments is $1,225,000,000.

     “Compliance Certificate” means a certificate of a Financial Officer of the Borrower,
substantially in the form of Exhibit G.

     “Confidential Information Memorandum” means the Confidential Information Memorandum dated
January 2011 relating to the Borrower and the Transactions.

     “Confidentiality Agreement” means a binding confidentiality agreement substantially in the
form of Exhibit H, which may be an electronic “click-through” agreement.

     “Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus (a)
without duplication and to the extent deducted in determining such Consolidated Net Income, the sum
of (i) Consolidated Interest Expense for such period, (ii) letters of credit fees (to the extent
not included in Consolidated Interest Expense) for such period, (iii) consolidated income tax
expense for such period, (iv) all amounts attributable to depreciation and amortization for such
period, (v) any non-cash charges (other than the write-down of current assets) for such period,
(vi) any extraordinary charges for such period, (vii) any Incremental Spin-off Related Expenses for
such period, not to exceed $40,000,000 in the aggregate over the term of this Agreement or
$20,000,000 in any fiscal year, (viii) any financing fees, financial and other advisory fees,
accounting and consulting fees and legal fees and related costs and expenses incurred during such
period in connection with acquisitions, investments and asset sales permitted by this Agreement,
(ix) any cash or non-cash charges or losses relating to the closing of the shipyard in Avondale,
Louisiana or the facilities in Waggaman, Louisiana, or Tallulah, Louisiana, the construction of the
LPD-23 Anchorage, the construction of the LPD-25 Somerset or any restructuring or reorganization of
the Borrower or any of its Subsidiaries (including severance costs), up to an aggregate amount for
all such charges and losses of (A) for the 2011 fiscal year, $50,000,000, (B) for the 2012 fiscal
year, $35,000,000 and (C) for any fiscal year

8

 

thereafter, $25,000,000 and (x) Transaction Expenses, minus (b) without duplication (i) all
cash payments made during such period on account of reserves, restructuring charges and other
non-cash charges added to Consolidated Net Income pursuant to clause (a)(v) above in a previous
period and (ii) to the extent included in determining such Consolidated Net Income, any
extraordinary gains and all non-cash items of income for such period, and plus/minus (c) unrealized
losses/gains in respect of Swap Contracts, all determined on a consolidated basis in accordance
with GAAP; provided that for purposes of calculating (x) the Leverage Ratio in connection with
determining compliance with Section 6.12 and the Applicable Margin for any period and (y) the
Interest Coverage Ratio for any period (A) the Consolidated EBITDA of any Acquired Entity acquired
by the Borrower or any Restricted Subsidiary pursuant to a Permitted Acquisition during such period
shall be included on a pro forma basis for such period (assuming the consummation of such
acquisition and the incurrence or assumption of any Indebtedness in connection therewith occurred
as of the first day of such period) and (B) the Consolidated EBITDA of any Person or line of
business sold or otherwise disposed of by the Borrower or any Restricted Subsidiary during such
period for shall be excluded for such period (assuming the consummation of such sale or other
disposition and the repayment of any Indebtedness in connection therewith occurred as of the first
day of such period). For purposes of determining Consolidated EBITDA under this Agreement for any
period that includes any of the fiscal quarters ended on March 31, 2010, June 30, 2010, September
30, 2010 and December 31, 2010, Consolidated EBITDA will be deemed to be equal to (i) for the
fiscal quarter ended March 31, 2010, $136,000,000, (ii) for the fiscal quarter ended June 30, 2010,
$140,000,000, (iii) for the fiscal quarter ended September 30, 2010, $157,000,000 and (iv) for the
fiscal quarter ended December 31, 2010, $119,700,000.

     “Consolidated Interest Expense” means, for any period, (a) the interest expense (including
without limitation imputed interest expense in respect of Capital Lease Obligations) of the
Borrower and the Restricted Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP, plus (b) any interest accrued during such period in respect of Indebtedness
of the Borrower or any Restricted Subsidiary that is required to be capitalized rather than
included in consolidated interest expense for such period in accordance with GAAP, minus (c) the
interest income with respect to unrestricted cash and Permitted Investments of the Borrower and the
Restricted Subsidiaries earned during such period in accordance with GAAP. For purposes of the
foregoing, interest expense shall be determined after giving effect to any net payments made or
received by the Borrower or any Restricted Subsidiary with respect to interest rate Swap Contracts.
For purposes of determining the Interest Coverage Ratio for any period ending prior to the first
anniversary of the Funding Date, Consolidated Interest Expense shall be deemed to be equal to the
actual Consolidated Interest Expense from the Funding Date through the date of determination
multiplied by a fraction the numerator of which is 365 and the denominator of which is the number
of days from the Funding Date through the date of determination.

     “Consolidated Net Income” means, for any period, the net income or loss of the Borrower and
the Restricted Subsidiaries for such period determined on a consolidated basis in accordance with
GAAP; provided that there shall be excluded (a) the income of any Restricted Subsidiary to the
extent that the declaration or payment of dividends or similar distributions by the Restricted
Subsidiary of that income is not at the time permitted by operation of the terms of

9

 

its charter or any agreement, instrument, judgment, decree, statute, rule or governmental
regulation applicable to such Restricted Subsidiary, (b) the income or loss of any Person accrued
prior to the date it becomes a Restricted Subsidiary or is merged into or consolidated with the
Borrower or any Restricted Subsidiary or the date that such Person’s assets are acquired by the
Borrower or any Restricted Subsidiary, (c) the income of any Person in which any other Person
(other than the Borrower or a Wholly Owned Restricted Subsidiary or any director holding qualifying
shares in accordance with applicable law) has a joint interest, except to the extent of the amount
of dividends or other distributions actually paid to the Borrower or a Wholly Owned Restricted
Subsidiary by such Person during such period, and (d) any gains attributable to sales of assets out
of the ordinary course of business.

     “Consolidated Net Tangible Assets” means, at any time, (a) the total assets appearing on the
most recently prepared consolidated balance sheet of the Borrower and the Restricted Subsidiaries
as of the end of the most recent fiscal quarter of the Borrower and the Restricted Subsidiaries for
which such balance sheet is available, prepared in accordance with GAAP, minus (b) all intangible
assets, including without limitation, goodwill, patents, trademarks, copyrights, franchises and
research and development costs.

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

     “Contribution” has the meaning assigned to such term in Schedule 1.01A.

     “Credit Suisse” means Credit Suisse, AG and its successors.

     “Current Assets” means, at any time, the consolidated current assets (other than cash and
Permitted Investments) of the Borrower and the Restricted Subsidiaries.

     “Current Liabilities” means, at any time, the consolidated current liabilities of the Borrower
and the Restricted Subsidiaries at such time, but excluding, without duplication, (a) the current
portion of any long-term Indebtedness and (b) outstanding Revolving Loans and Swingline Loans.

     “Current NGC Parent” means Northrop Grumman Corporation, a Delaware corporation, to be renamed
as Titan II Inc. after the consummation of the Holding Company Merger.

     “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.

     “Defaulting Lender” means any Revolving Credit Lender that (a) has failed, within two Business
Days of the date required to be funded or paid, to (i) fund any portion of its Revolving Loans,
(ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii) pay
over to any Revolving Credit Party any other amount required to be paid by it hereunder, unless, in
the case of clause (i) above, such Lender notifies the Administrative Agent in writing that such
failure is the result of such Lender’s good faith determination that a condition

10

 

precedent to funding (specifically identified and including the particular default, if any)
has not been satisfied, (b) has notified the Borrower or any Revolving Credit Party in writing, or
has made a public statement to the effect, that it does not intend or expect to comply with any of
its funding obligations under this Agreement (unless such writing or public statement indicates
that such position is based on such Lender’s good faith determination that a condition precedent
(specifically identified and including the particular default, if any) to funding a loan under this
Agreement cannot be satisfied) or generally under other agreements in which it commits to extend
credit, (c) has failed, within three Business Days after written request by a Revolving Credit
Party, acting in good faith, to provide a certification in writing from an authorized officer of
such Lender that it will comply with its obligations to fund prospective Loans and participations
in then outstanding Letters of Credit and Swingline Loans under this Agreement, provided that such
Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Revolving Credit
Party’s receipt of such certification in form and substance satisfactory to it and the
Administrative Agent, or (d) has become the subject of a Bankruptcy Event, or is the subsidiary of
a Lender Parent that has become the subject of a Bankruptcy Event.

     “Designated Foreign Currency” means, with respect to any applicable Letter of Credit, any
foreign currency that is (a) freely traded and exchangeable into US Dollars and (b) approved by the
applicable Issuing Bank.

     “Designated Payment Account” means an account with the Administrative Agent designated from
time to time by the Borrower in a writing executed by a Financial Officer.

     “Disclosed Matters” means the actions, suits and proceedings and the environmental matters
disclosed in Schedule 3.06.

     “Disqualified Stock” means any Equity Interest that, by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable), or upon the happening of
any event, (a) matures (excluding any maturity as the result of an optional redemption by the
issuer thereof) or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise,
or is redeemable at the option of the holder thereof, in whole or in part, or requires the payment
of any cash dividend or any other scheduled payment constituting a return of capital, in each case
at any time on or prior to the first anniversary of the Term Loan Maturity Date, or (b) is
convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt
securities or (ii) any Equity Interest referred to in clause (a) above, in each case at any time
prior to the first anniversary of the Term Loan Maturity Date.

     “Distribution Agreement” means the Separation and Distribution Agreement to be entered into
prior to the Internal Reorganization among the Borrower, the Current NGC Parent, New NGC, the Main
Shipbuilding Subsidiary and Northrop Grumman Systems Corporation, a Delaware corporation,
substantially in the form of the draft provided to the Administrative Agent prior to the date
hereof.

     “Documentation Agents” means The Royal Bank of Scotland plc, Wells Fargo Bank, N.A., SunTrust
Bank, BNP Paribas and Sumitomo Mitsui Banking Corporation in their capacity as documentation
agents.

11

 

     “Domestic Restricted Subsidiary” means any Domestic Subsidiary that is a Restricted
Subsidiary.

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

     “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02).

     “Environmental Laws” means all laws (statutory, common or otherwise), rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the management, release or threatened release of
any Hazardous Material or to health and safety matters.

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

     “Equity Interests” means shares of capital stock, partnership interests, membership interests
in a limited liability company, beneficial interests in a trust or other equity interests in any
Person, and any option, warrant or other right entitling the holder thereof to purchase or
otherwise acquire any such equity interest (including through convertible securities); provided
that any Indebtedness convertible or exchangeable for Equity Interests shall not be deemed to be
Equity Interests, unless and until any such Indebtedness is so converted or exchanged.

     “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) a determination that a Plan is, or is expected to be, in “at risk”
status (as defined in Section 303(i)(4) of ERISA); (c) the failure to timely make a contribution
required to be made with respect to any Plan or any Multiemployer Plan; (d) a determination that a
Multiemployer Plan is, or is expected to be, in “endangered status” or “critical status” (each as
defined in Section 305(b) of ERISA); (e) 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, or
withdrawal or partial withdrawal from, any Plan or Multiemployer Plan; (f) the receipt by the

12

 

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; (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; or (h) the
occurrence of a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the
Code which would reasonably be expected to result in liability to the Borrower or any of its ERISA
Affiliates.

     “Eurodollar”, 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 7.

     “Excess Cash Adjustment Amount” shall mean, as of any date,

     (a) the sum, for all fiscal years of the Borrower (starting with the fiscal year ended
December 31, 2012) for which annual financial statements have been delivered pursuant to Section
5.01(a) on or prior to such date, of the Excess Cash Flow Overpayment Amount for each such year
(the “Gross ECF Overpayment Amount”), minus

     (b) the sum of all amounts by which the Gross ECF Overpayment Amount is reduced pursuant to
Section 2.12(c).

     “Excess Cash Flow” means, for any fiscal year of the Borrower (starting with the fiscal year
ended December 31, 2011), the excess of (a) the sum, without duplication, of (i) Consolidated Net
Income for such fiscal year, (ii) reductions to noncash working capital of the Borrower and the
Restricted Subsidiaries for such fiscal year (i.e., the decrease, if any, in Current Assets minus
Current Liabilities from the beginning to the end of such fiscal year), (iii) the amount of all
non-cash charges (including depreciation and amortization) deducted in arriving at such
Consolidated Net Income, (iv) an amount equal to the aggregate net non-cash loss on the disposition
of property by the Borrower and the Restricted Subsidiaries during such fiscal year, to the extent
deducted in arriving at such Consolidated Net Income, (v) the amount of income tax expense deducted
in determining Consolidated Net Income for such period, and (vi) Consolidated Interest Expense for
such period, over (b) the sum, without duplication, of (i) the amount of any incomes taxes payable
in cash by the Borrower and the Restricted Subsidiaries with respect to such fiscal year, (ii)
Consolidated Interest Expense for such fiscal year paid in cash plus, to the extent deducted from
the calculation thereof, cash interest income during such fiscal year, (iii) Capital Expenditures
and Permitted Acquisitions made in cash in accordance with Section 6.10 and Section 6.04(g),
respectively, during such fiscal year, in each case to the extent financed with internally
generated funds and not by utilizing the Available Retained Basket Amount, (iv) cash or in-kind
investments made during such fiscal year pursuant to Section 6.04(p) or Section 6.04(q), and cash
fees and expenses paid during such fiscal year in connection with any Investment permitted under
Section 6.04, in each case to the extent financed with internally generated funds (other than in
the case of any in-kind investment) and not by

13

 

utilizing the Available Retained Basket Amount, (v) permanent repayments of Indebtedness
(other than mandatory prepayments of Term Loans under Section 2.12 and voluntary prepayments of
Term Loans under Section 2.11) made in cash by the Borrower and the Restricted Subsidiaries during
such fiscal year, but only to the extent that the Indebtedness so prepaid by its terms cannot be
reborrowed or redrawn, such prepayments do not occur in connection with a refinancing of all or any
portion of such Indebtedness and such prepayments are not financed with the Available Retained
Basket Amount, (vi) additions to noncash working capital for such fiscal year (i.e., the increase,
if any, in Current Assets minus Current Liabilities from the beginning to the end of such fiscal
year), (vii) an amount equal to the aggregate net non-cash gain on the disposition of property by
the Borrower and the Restricted Subsidiaries during such fiscal year, to the extent included in
arriving at such Consolidated Net Income, (viii) cash payments during such fiscal year in respect
of long-term liabilities other than Indebtedness and that were made with internally generated funds
and were not deducted or excluded in calculating Consolidated Net Income and (ix) the Excess Cash
Withheld Amount for such fiscal year.

     “Excess Cash Flow Overpayment Amount” means, with respect to any fiscal year (starting with
the fiscal year ended December 31, 2012) for which annual financial statements have been delivered
pursuant to Section 5.01(a), the lesser of (x) the amount of outstanding Term Loans, if any, that
have been prepaid in accordance with Section 2.12(c) based on the Excess Cash Flow calculated for
the year preceding such fiscal year, and (y) the product of (A) the positive excess, if any, of the
amount of Capital Expenditures and other expenditures for working capital requirements made by the
Borrower and its Restricted Subsidiaries during such fiscal year over the Excess Cash Withheld
Amount planned (as of the end of the preceding fiscal year) to be used during such fiscal year to
make Capital Expenditures or for other working capital requirements (the “Underestimated Amount”),
and (B) the Applicable ECF Percentage (calculated as of the end of the preceding fiscal year).

     “Excess Cash Withheld Amount” means, as of the end of any fiscal year, an amount equal to the
sum of (x) the amount of Capital Expenditures committed to be made in the following fiscal year by
the Borrower and the Restricted Subsidiaries and (y) the amount of other working capital
requirements of the Borrower and the Restricted Subsidiaries for the following fiscal year, in each
case as certified in reasonable detail in a certificate signed by a Financial Officer and delivered
to the Administrative Agent contemporaneously with the delivery of the Compliance Certificate for
such fiscal year; provided that to the extent such Excess Cash Withheld Amount (as reduced in
accordance with Section 2.12(d)) is not used for the purposes described in such officer’s
certificate by the end of the following fiscal year (the “Unused Withheld Amount”), the Applicable
ECF Percentage (applicable to the original fiscal year) of such Unused Withheld Amount shall be
applied to mandatorily prepay Term Loans to the extent set forth in Section 2.12(e).

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, any Issuing Bank
or any other recipient of any payment to be made by or on account of any obligation of the Borrower
or any Guarantor hereunder, (a) income or franchise Taxes imposed on (or measured by) its net
income by the United States of America, or by the jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the case of any Lender,
in which its applicable lending office is located, (b) any branch profits Taxes

14

 

imposed by the United States of America or any similar Tax imposed by any other jurisdiction
described in clause (a) above, (c) in the case of a Foreign Lender (other than an assignee pursuant
to a request by the Borrower under Section 2.20), any withholding Tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement
(or designates a new lending office) or is attributable to such Foreign Lender’s failure to comply
with Section 2.18(f), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding Tax pursuant to Section 2.18(a) and (d)
any U.S. federal withholding Tax imposed under FATCA.

     “Existing JPM Letters of Credit” means the Existing Letters of Credit with respect to which
JPMCB or an Affiliate thereof is the issuing bank.

     “Existing Letters of Credit” means the letters of credit set forth on Schedule 2.05B.

     “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement and any
regulations or official interpretations thereof.

     “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.

     “Fee Letter” means the letter agreement, dated as of January 22, 2011, among the Borrower, the
Current NGC Parent, the Lead Arrangers and the Administrative Agent.

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

     “Fitch” means Fitch Ratings, a wholly owned subsidiary of Fimilac, S.A.

     “Flood Laws” means the National Flood Insurance Reform Act of 1994 and related legislation
(including the regulations of the Board of Governors of the Federal Reserve Systems).

     “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 Restricted Subsidiary” means any Foreign Subsidiary that is a Restricted Subsidiary.

     “Foreign Subsidiary” means any (i) Subsidiary that is treated as a corporation for U.S.
federal income tax purposes that is organized under the laws of a jurisdiction other than the

15

 

United States of America or any State thereof or the District of Columbia, (ii) Subsidiary
substantially all of the assets of which consist, directly or indirectly, of Subsidiaries described
in clause (i) of this definition, (iii) entity treated as disregarded for U.S. federal income tax
purposes that owns more than 65% of the voting stock of a Subsidiary described in clauses (i) or
(ii) of this definition, and (iv) Subsidiary of an entity described in clauses (i), (ii), or (iii)
of this definition.

     “Funding Date” means the date on which the conditions specified in Section 4.02 are satisfied
(or waived in accordance with Section 9.02).

     “GAAP” means generally accepted accounting principles in the United States of America.

     “Global Intercompany Note” means a global intercompany note in the form of Exhibit E pursuant
to which intercompany obligations and advances owed by any Loan Party are subordinated to the
Secured Obligations (as defined in the Guarantee and Security Agreement).

     “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.

     “GO Zone Bonds” has the meaning assigned to such term in Section 4.02(i).

     “Gross ECF Overpayment Amount” has the meaning assigned to such term in the definition of
Excess Cash Adjustment Amount.

     “Guarantee” of or by any Person means any obligation, contingent or otherwise, of such Person
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 such Person, 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 of such
Indebtedness or other obligation, (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 of such
Indebtedness or other obligation or (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; provided, however, that the term “Guarantee”
shall not include (x) endorsements for collection or deposit in the ordinary course of business or
(y) any customary and reasonable indemnity obligations in effect on the Effective Date or entered
into in connection with any acquisition or disposition of assets permitted under this Agreement
(other than such obligations related to Indebtedness).

     “Guarantee and Security Agreement” means the Guarantee and Security Agreement, substantially
in the form of Exhibit D, among the Borrower, the Guarantors party thereto and the Collateral Agent
for the benefit of the Secured Parties.

16

 

     “Guarantors” means each of the Borrower’s direct and indirect Wholly Owned Domestic Restricted
Subsidiaries.

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

     “Holding Company Merger” means the merger of Titan Merger Sub Inc., a Delaware corporation and
a wholly owned indirect subsidiary of New NGC with and into the Current NGC Parent in a merger
pursuant to Section 251(g) of the Delaware General Corporation Law, with the Current NGC Parent as
the surviving entity and renamed “Titan II Inc.” and with New NGC renamed “Northrop Grumman
Corporation.”

     “Incremental Spin-off Related Expenses” means incremental costs for procurement of material
and/or services resulting from renegotiation of pre-existing Intercompany Work Orders (IWOs) on an
arm’s length basis with Northrop Grumman and its subsidiaries.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such Person
for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or
similar instruments, (c) all obligations of such Person under conditional sale or other title
retention agreements relating to property or assets purchased by such Person, (d) all obligations
of such Person issued or assumed as the deferred purchase price of property or services (excluding
trade and other current accounts payable and accrued obligations incurred in the ordinary course of
business), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the obligations secured thereby have been assumed (but to
the extent such Lien does not extend to any other property of such Person and is otherwise
non-recourse against such Person, limited to the fair market value of such property), (f) all
Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such
Person, (h) net obligations of such Person under any Swap Contracts, valued at the Agreement Value
thereof, (i) all obligations of such Person in respect of Disqualified Stock, (j) all obligations
of such Person as an account party in respect of letters of credit and (k) all obligations of such
Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the
Indebtedness of any partnership in which such Person is a general partner, unless such Indebtedness
is expressly made non-recourse to such Person.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Interest Coverage Ratio” means, for any period, the ratio of (a) Consolidated EBITDA for such
period to (b) Consolidated Interest Expense for such period.

     “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing
in accordance with Section 2.07.

17

 

     “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan),
the last day of each March, June, September and December, (b) with respect to any Eurodollar 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 Eurodollar 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 Swingline Loan,
the day that such Loan is required to be repaid.

     “Interest Period” means with respect to any Eurodollar 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, or, if agreed by all Revolving Credit Lenders, nine or
twelve 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, in the case of a Eurodollar 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 Eurodollar 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 thereafter
shall be the effective date of the most recent conversion or continuation of such Borrowing.

     “Internal Reorganization” has the meaning assigned to such term in Schedule 1.01A.

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

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

     “Issuing Bank” means JPMCB and each other Person that shall have become an Issuing Bank
hereunder as provided in Section 2.05(i), in each case in its capacity as an issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section 2.05(j). Each Issuing
Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by its
Affiliates (provided that the identity and creditworthiness of the Affiliate is reasonably

18

 

acceptable to the Borrower), in which case the term “Issuing Bank” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.

     “Issuing Bank Agreement” has the meaning assigned to such term in Section 2.05(i).

     “JPMCB” means JPMorgan Chase Bank, N.A. and its successors.

     “Joint Bookrunners” means J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC,
Wells Fargo Securities, LLC and RBS Securities Inc., in their capacity as joint bookrunners.

     “Judgment Currency” has the meaning assigned to such term in Section 9.14.

     “LC Commitment” means, with respect to each Issuing Bank, the commitment of such Issuing Bank
to issue Letters of Credit pursuant to Section 2.05. The initial amount of each Issuing Bank’s LC
Commitment is set forth on Schedule 2.05A, or in such Issuing Bank’s Issuing Bank Agreement.

     “LC Continuing Agreement Form” has the meaning assigned to such term in Section 2.05(a).

     “LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of Credit.

     “LC Exchange Rate” means, on any day, with respect to US Dollars in relation to any Designated
Foreign Currency, the rate at which US Dollars may be exchanged into such currency, as set forth at
approximately 12:00 noon, New York City time, on such day on the applicable Reuters World Currency
Page. In the event that any such rate does not appear on the applicable Reuters World Currency
Page, the LC Exchange Rate shall be determined by reference to such other publicly available
service for displaying exchange rates as may be agreed upon by the Administrative Agent and the
Borrower or, in the absence of such agreement, such LC Exchange Rate shall instead be the spot rate
of exchange of the Administrative Agent, at or about 11:00 a.m., London time, on such date for the
purchase of such Designated Foreign Currency with US Dollars for delivery two Business Days later;
provided that if at the time of any such determination, for any reason, no such spot rate is being
quoted, the Administrative Agent, after consultation with the Borrower, may use any reasonable
method it deems appropriate to determine such rate, and such determination shall be conclusive
absent manifest error.

     “LC Exposure” means, at any time, the sum of (a) the aggregate of the US Dollar Equivalents of
the undrawn amounts of all outstanding Letters of Credit at such time plus (b) the aggregate of the
US Dollar Equivalents of all LC Disbursements that have not yet been reimbursed by or on behalf of
the applicable Borrower at such time (determined as provided in Section 2.05 as of the applicable
LC Participation Calculation Dates in the case of LC Disbursements in respect of which the
Borrower’s reimbursement obligations have been converted to US Dollar amounts in accordance with
such Section). The LC Exposure of any

19

 

Revolving Credit Lender at any time shall be its Applicable Revolving Percentage of the total
LC Exposure at such time.

     “LC Participation Calculation Date” means, with respect to any LC Disbursement made in a
currency other than US Dollars, (a) the date on which the applicable Issuing Bank shall advise the
Administrative Agent that it purchased with US Dollars the currency used to make such LC
Disbursement, or (b) if such Issuing Bank shall not advise the Administrative Agent that it made
such a purchase, the date on which such LC Disbursement is made.

     “Lead Arrangers” means J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC, in
their capacity as lead arrangers.

     “Lender Parent” means, with respect to any Lender, any Person as to which such Lender is,
directly or indirectly, a subsidiary.

     “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 Assumption, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the context otherwise
requires, the term “Lenders” includes the Swingline Lender.

     “Letter of Credit” means any letter of credit issued pursuant to this Agreement (including the
Existing Letters of Credit).

     “Leverage Ratio” means, on any date, the ratio of Total Debt on such date to Consolidated
EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such
date.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate
per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”) from Telerate Successor
Page 3750, as published by Reuters (or other commercially available source providing quotations of
BBA LIBOR as designated by the Administrative Agent from time to time) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest Period, as the rate for
US Dollar deposits with a maturity comparable to such Interest Period. In the event that such rate
is not available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which US Dollar deposits of $5,000,000 and
for a maturity comparable to such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in or on or of such asset, (b) the interest
of a vendor or a lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities.

20

 

     “Loan Documents” means this Agreement, the Letters of Credit, the Collateral Documents, any
promissory note issued under Section 2.09(e) and any other document executed in connection with the
foregoing.

     “Loan Parties” means the Borrower and the Guarantors (but, in the case of any Guarantor, only
for so long as that Guarantor has not been released from its Guarantee under the Guarantee and
Security Agreement in accordance with its terms).

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

     “Main Shipbuilding Subsidiary” means Northrop Grumman Shipbuilding, Inc., a Virginia
corporation.

     “Margin Stock” has the meaning assigned to such term in Regulation U issued by the Board.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
liabilities, results of operations or financial position of (i) the Borrower and its Subsidiaries,
taken as a whole or (ii) the Acquired Business, in each case other than as a result of the Internal
Reorganization (including the Contribution), (b) the ability of the Loan Parties to perform their
obligations under this Agreement and the other Loan Documents or (c) the rights and remedies of the
Lenders, the Administrative Agent or the Collateral Agent under this Agreement and the other Loan
Documents.

     “Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or
obligations in respect of one or more Swap Contracts, of any one or more of the Borrower and its
Restricted Subsidiaries in an aggregate principal amount exceeding $40,000,000. For purposes of
determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any
Restricted Subsidiary in respect of any Swap Contract at any time shall be the Agreement Value
thereof.

     “Material Real Property” means a fee interest in (i) any real property owned by the Borrower
or any Wholly Owned Domestic Restricted Subsidiary on the Effective Date or the Funding Date that
is listed on Schedule 1.01B and (ii) any after-acquired real property owned by a Loan Party having
gross purchase price exceeding $10,000,000 at the time of acquisition; provided that for purposes
of this definition, individual parcels of land in the same general geographic area acquired as part
of a single acquisition will be considered as a single property.

     “MBFC” has the meaning assigned to such term in Section 4.02(i).

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

     “Mortgaged Properties” means, (i) initially, the properties specified on Schedule 1.01B, and
(ii) any other Material Real Properties owned by any Loan Party with respect to which a Mortgage is
granted pursuant to Section 5.11.

21

 

     “Mortgages” shall mean the mortgages, deeds of trust, deeds to secure debt, assignments of
leases and rents, modifications and other Collateral Documents delivered pursuant to Section 5.14
or Section 5.11 (each substantially in the form being attached hereto as Exhibit F).

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

     “Net Cash Proceeds” means (a) with respect to any Asset Sale, the cash proceeds (including (i)
cash proceeds subsequently received (as and when received) in respect of noncash consideration
initially received and (ii) casualty insurance settlements and condemnation awards, but only as and
when received), net of (i) selling expenses (including reasonable broker’s fees or commissions,
legal fees, transfer and similar taxes, title and survey expenses if customarily paid by a seller
in the jurisdiction where the asset is located and the Borrower’s good faith estimate of income
taxes paid or payable in connection with such sale), (ii) amounts provided as a reserve, in
accordance with GAAP, or amounts placed in escrow, against any liabilities under any
indemnification obligations or purchase price adjustment associated with such Asset Sale (provided
that, to the extent and at the time any such amounts are released from such reserve or such escrow,
such amounts shall constitute Net Cash Proceeds), (iii) the principal amount, premium or penalty,
if any, interest and other amounts on any Indebtedness for borrowed money which is secured by the
asset sold in such Asset Sale and which is required to be repaid with such proceeds (other than any
such Indebtedness assumed by the purchaser of such asset and the Obligations) and (iv) refunds
contractually or legally due to customers that are Governmental Authorities, or contractors or
sub-contractors of Governmental Authorities, in respect of such cash proceeds; provided, however,
that, if (A) the Borrower shall deliver a certificate of a Financial Officer to the Administrative
Agent at the time of receipt thereof setting forth the Borrower’s intent to reinvest such proceeds
in productive assets of a kind then used or usable in the business of the Borrower and the
Restricted Subsidiaries (or, in the case of proceeds from the disposition of any Investment in a
joint venture or Unrestricted Subsidiary, to reinvest such proceeds in any Investment permitted by
Section 6.04), and (B) no Default or Event of Default shall have occurred and shall be continuing
at the time of such certificate or at the proposed time of the application of such proceeds, such
proceeds shall not constitute Net Cash Proceeds except to the extent not so used (1) within 365
days following the receipt of such proceeds, at which time such remaining proceeds shall be deemed
to be Net Cash Proceeds or (2) if the Borrower or the relevant Subsidiary enters into a legally
binding commitment to reinvest such Net Cash Proceeds within 365 days following the receipt
thereof, within 180 days following the date of such legally binding commitment; and (b) with
respect to any issuance or incurrence of Indebtedness or any Equity Issuance, the cash proceeds
thereof, net of all taxes and customary fees, commissions, costs and other expenses incurred in
connection therewith.

     “New NGC” means New P, Inc., a Delaware corporation, to be renamed as Northrop Grumman
Corporation after the consummation of the Holding Company Merger.

     “NFIP” has the meaning assigned to such term in Section 5.14.

     “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(c).

22

 

     “Northrop Grumman” means, collectively, the Current NGC Parent, New NGC and their respective
subsidiaries.

     “Northrop Grumman Retained Subsidiaries” means LLC Holdco, LP Holdco, any direct or indirect
subsidiary of LLC Holdco or LP Holdco from time to time (so long as it is a subsidiary of LLC
Holdco and/or LP Holdco), and each other Northrop Grumman entity that is not engaged in the
shipbuilding business of Northrop Grumman, is not part of the Acquired Business and is not intended
to be a Subsidiary of the Borrower following the Spin-off. For the avoidance of doubt, Northrop
Grumman Systems Corporation, a Delaware corporation, and its subsidiaries after giving effect to
the Internal Reorganization shall be Northrop Grumman Retained Subsidiaries.

     “Obligations” means (i) 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, (ii) each
payment required to be made by the Borrower under this Agreement in respect of any Letter of
Credit, including payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral and (iii) 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 Loan Parties under this Agreement and the other Loan Documents.

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

     “Participant” has the meaning assigned to such term in Section 9.04(c).

     “Participant Register” has the meaning assigned to such term in Section 9.04(c).

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

     “Perfection Certificate” has the meaning assigned to such term in the Guarantee and Security
Agreement.

     “Permitted Acquisition” has the meaning assigned to such term in Section 6.04(g).

     “Permitted Business” means (a) any business conducted by the Borrower and the Restricted
Subsidiaries on the Effective Date, (b) any defense-related business with the Navy, the Coast Guard
or other governmental agency that is substantially related, ancillary or complementary to the
businesses described in clause (a) above and (c) any other business substantially related,
ancillary or complementary to the businesses described in clause (a) above

23

 

to the extent such other business is within the core competency of the Borrower and the
Restricted Subsidiaries.

     “Permitted Investments” means:

	 	(a)	 	direct obligations of, or obligations the principal of and interest on which
are unconditionally guaranteed by, the United States of America (or by any agency
thereof to the extent such obligations are backed by the full faith and credit of the
United States of America), in each case maturing within one year from the date of
issuance thereof;
	 
	 	(b)	 	investments in commercial paper maturing within 270 days from the date of
issuance thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody’s;
	 
	 	(c)	 	investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or guaranteed by
or placed with, and money market deposit accounts issued or offered by, the
Administrative Agent or any domestic office of any commercial bank organized under the
laws of the United States of America or any State thereof that has a combined capital
and surplus and undivided profits of not less than $500,000,000;
	 
	 	(d)	 	fully collateralized repurchase agreements with a term of not more than 30 days
for securities described in clause (a) above and entered into with a financial
institution satisfying the criteria of clause (c) above; and
	 
	 	(e)	 	money market funds that (i) comply with the criteria set forth in Rule 2a-7 of
the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P and Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000.

     “Permitted Refinancing” means, with respect to any Person, any modification, refinancing,
refunding, renewal or extension (collectively, “Refinancing”) of any Indebtedness of such Person;
provided that (a) the principal amount (or accreted value, if applicable) thereof does not exceed
the principal amount (or accreted value, if applicable) of the Indebtedness so modified,
refinanced, refunded, renewed or extended (collectively, “Refinanced”) except by an amount equal to
unpaid accrued interest and premium thereon, (b) such Refinancing has a final maturity date equal
to or later than the final maturity date of, and has a weighted average life to maturity equal to
or greater than the weighted average life to maturity of, the Indebtedness being Refinanced, (c) if
the Indebtedness being Refinanced is subordinated in right of payment to the Obligations, such
Refinancing is subordinated in right of payment to the Obligations on terms at least as favorable
to the Lenders as those contained in the documentation governing the Indebtedness being Refinanced,
taken as a whole, (d) the terms and conditions (including, if applicable, as to collateral) of any
such Refinanced Indebtedness are not materially less favorable to the Loan Parties or the Lenders
than the terms and conditions of the Indebtedness being Refinanced, taken as a whole, (e) such
Refinancing is incurred by the Person who is the obligor on the Indebtedness being Refinanced, (f)
at the time thereof, no Default or Event of Default shall have occurred and be continuing and (g)
the Borrower and its Restricted Subsidiaries shall

24

 

be in compliance, on a pro forma basis after giving effect to such Refinancing, with the
financial covenants set forth in Sections 6.11 and 6.12.

     “Permitted Senior Indebtedness” means unsecured senior Indebtedness issued or incurred by the
Borrower, (a) the terms of which (i) do not provide for any scheduled repayment, mandatory
redemption (except in exchange for common stock of the Borrower) or sinking fund obligation prior
to the date that is six months after the Term Loan Maturity Date, (ii) have mandatory prepayment,
repurchase or redemption provisions no more onerous or expansive in scope, taken as a whole, than
those contained in this Agreement and (iii) provide for covenants and events of default customary
for Indebtedness of a similar nature as such Permitted Senior Indebtedness and (b) in respect of
which no Restricted Subsidiary that is not an obligor under the Loan Documents is an obligor;
provided that immediately prior to and after giving effect on a pro forma basis to any incurrence
of Permitted Senior Indebtedness, no Default or Event of Default shall have occurred and be
continuing or would result therefrom.

     “Permitted Subordinated Indebtedness” means unsecured subordinated Indebtedness issued or
incurred by the Borrower, (a) the terms of which (i) do not provide for any scheduled repayment,
mandatory redemption (except in exchange for common stock of the Borrower) or sinking fund
obligation prior to the date that is six months after the Term Loan Maturity Date, (ii) have
mandatory prepayment, repurchase or redemption provisions no more onerous or expansive in scope,
taken as a whole, than those contained in this Agreement, (iii) provide for covenants and events of
default customary for Indebtedness of a similar nature as such Permitted Subordinated Indebtedness
and (iv) provide for subordination of payments in respect of such Indebtedness to the Obligations
and guarantees thereof under the Loan Documents customary for high yield securities and (b) in
respect of which no Restricted Subsidiary that is not an obligor under the Loan Documents is an
obligor; provided that immediately prior to and after giving effect on a pro forma basis to any
incurrence of Permitted Subordinated Indebtedness, no Default or Event of Default shall have
occurred and be continuing or would result therefrom.

     “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.

     “Pre-Contribution Internal Reorganization” has the meaning assigned to such term in Schedule
1.01A.

     “Prime Rate” means the rate of interest per annum publicly announced from time to time by
JPMCB as its prime rate in effect at its office located at 270 Park Avenue, New York, New York;
each change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective.

     “Proposed Change” has the meaning assigned to such term in Section 9.02(c).

25

 

     “Qualified Capital Stock” of any Person means any Equity Interest of such Person that is not
Disqualified Stock.

     “Register” has the meaning assigned to such term in Section 9.04(b).

     “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 Term Loans (or prior to the Funding
Date, Term Loan Commitments), Revolving Credit Exposures and unused Revolving Credit Commitments
representing more than 50% of the sum of total Term Loans (or prior to the Funding Date, Term Loan
Commitments), Revolving Credit Exposures and unused Revolving Credit Commitments at such time;
provided that the Revolving Credit Exposure and unused Revolving Credit Commitments of any
Defaulting Lender shall be disregarded in the determination of the Required Lenders at any time.

     “Required Revolving Credit Lenders” means, at any time, Revolving Credit Lenders having
Revolving Credit Exposures and unused Revolving Credit Commitments representing more than 50% of
the sum of total Revolving Credit Exposures and unused Revolving Credit Commitments at such time;
provided that the Revolving Credit Exposure and unused Revolving Credit Commitments of any
Defaulting Lender shall be disregarded in the determination of the Required Revolving Credit
Lenders at any time.

     “Responsible Officer” means any Financial Officer, chief executive officer, general counsel,
chief compliance officer or chief administrative officer of the Borrower.

     “Restricted Companies” means the Borrower and the Restricted Subsidiaries.

     “Restricted Payment” means any dividend or other distribution (whether in cash, securities or
other property) with respect to any Equity Interests in the Borrower or any Restricted Subsidiary,
or any payment (whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Equity Interests in the Borrower or any Restricted Subsidiary.

     “Restricted Prepayment” has the meaning assigned to such term in Section 6.09(b).

     “Restricted Subsidiary” means any Subsidiary of the Borrower other than any Unrestricted
Subsidiary; provided that prior to the Spin-off, the Northrop Grumman Retained Subsidiaries shall
be deemed not to be Restricted Subsidiaries of the Borrower. Between the period starting with the
Effective Date and ending on the Funding Date, each entity that is scheduled to be a Restricted
Subsidiary as of the Funding Date pursuant to the Internal Reorganization shall be deemed to be a
Restricted Subsidiary for purposes of this Agreement during such period, provided that,
notwithstanding the foregoing, for purposes of Article 5 (except for Sections 5.01 and 5.02) no
entity will be deemed a Restricted Subsidiary for purposes of this Agreement unless it is at such
time a subsidiary of the Borrower.

26

 

     “Revaluation Date” means, with respect to any Letter of Credit denominated in a Designated
Foreign Currency, each of the following: (a) each date of issuance of a Letter of Credit
denominated in a Designated Foreign Currency, (b) each date of an amendment of any such Letter of
Credit having the effect of increasing the amount thereof (solely with respect to the increased
amount), (c) each date of any payment by an Issuing Bank under any Letter of Credit denominated in
a Designated Foreign Currency and (d) such additional dates as the Administrative Agent or the
applicable Issuing Bank shall determine or the Required Lenders shall require.

     “Revolving Borrowing” means a Borrowing comprised of Revolving Loans.

     “Revolving Credit Commitment” means, with respect to each Revolving Credit Lender, the
commitment of such Revolving Credit Lender to make Revolving Loans pursuant to Section 2.01,
expressed as a US Dollar amount representing the maximum aggregate permitted amount of such
Revolving Credit Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a)
reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender under Section 9.04. The initial amount of each
Revolving Credit Lender’s Revolving Credit Commitment is set forth on Schedule 2.01, or in the
Assignment and Assumption pursuant to which such Revolving Credit Lender shall have assumed its
Revolving Credit Commitment, as applicable. The aggregate amount of the Revolving Credit
Commitments on the date hereof is $650,000,000.

     “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline
Exposure at such time.

     “Revolving Credit Facility” means the Revolving Credit Commitments and the extensions of
credit made hereunder by the Revolving Credit Lenders.

     “Revolving Credit Lender” means a Lender with a Revolving Credit Commitment or an outstanding
Revolving Credit Exposure.

     “Revolving Credit Maturity Date” means the date (or if such date is not a Business Day, the
next succeeding Business Day, unless such Business Day is in the next calendar month, in which case
the next preceding Business Day) that is the fifth anniversary of the Funding Date.

     “Revolving Credit Party” means the Administrative Agent, any Issuing Bank, any Swingline
Lender or any other Revolving Credit Lender.

     “Revolving Loan” means a Loan made pursuant to Section 2.01.

     “S&P” means Standard & Poor’s Ratings System.

     “Secured Obligations” has the meaning assigned to such term in the Guarantee and Security
Agreement.

     “Secured Parties” has the meaning assigned to such term in the Guarantee and Security
Agreement.

27

 

     “Senior Credit Facilities” means the revolving credit, swingline, letters of credit and the
term loan facility provided for by this Agreement.

     “Senior Note Documents” means the indenture under which the Senior Notes are issued and all
other instruments, agreements and other documents evidencing or governing the Senior Notes or
providing for any Guarantee or other right in respect thereof.

     “Senior Notes” means, collectively, (i) the Borrower’s 6.875% Senior Notes due 2018 in an
initial aggregate principal amount of $600,000,000 and (ii) the Borrower’s 7.125% Senior Notes due
2021 in an initial aggregate principal amount of $600,000,000.

     “Senior Notes Escrow” has the meaning assigned to such term in Schedule 1.01A.

     “Significant Subsidiary” means (i) each Restricted Subsidiary other than Restricted
Subsidiaries that, in the aggregate, as of the last day of the most recent fiscal quarter of the
Borrower for which financial statements have been delivered pursuant to Section 5.01, constitute
“minor” subsidiaries as defined in Rule 3-10 of Regulation S-X and (ii) for purposes of Section
5.01(k) only, “Significant Subsidiary” shall include each Unrestricted Subsidiary other than
Unrestricted Subsidiaries that, in the aggregate, as of the last day of the most recent fiscal
quarter of the Borrower for which financial statements have been delivered pursuant to Section
5.01, constitute “minor” subsidiaries as defined in Rule 3-10 of Regulation S-X.

     “Specified Permitted CapEx Amount” has the meaning assigned to such term in Section 6.10.

     “Spin-off” means the distribution by New NGC of all of the issued and outstanding shares of
the Borrower’s common stock on a pro rata basis to holders of New NGC common stock (after giving
effect to the Internal Reorganization) in accordance with the Distribution Agreement, as more fully
described in Schedule 1.01A.

     “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 with respect to
the Adjusted LIBO Rate, 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. Eurodollar 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

28

 

entity 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, directly or indirectly, owned,
controlled or held by the parent or one or more of the other subsidiaries of the parent or by the
parent and one or more of the other subsidiaries of the parent.

     “Subsidiary” means any subsidiary of the Borrower; provided that prior to the Spin-off, the
Northrop Grumman Retained Subsidiaries shall be deemed not to be Subsidiaries of the Borrower.

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

     “Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans
outstanding at such time. The Swingline Exposure of any Revolving Credit Lender at any time shall
be its Applicable Revolving Percentage of the total Swingline Exposure at such time.

     “Swingline Lender” means each of JPMorgan Chase Bank, N.A. and Credit Suisse AG, in each such
Lender’s capacity as a lender of Swingline Loans hereunder

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

     “Syndication Agent” means Credit Suisse Securities (USA) LLC in its capacity as syndication
agent.

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

     “Term Borrowing” means a Borrowing comprised of Term Loans.

     “Term Lender” means a Lender with a Term Loan Commitment or an outstanding Term Loan.

     “Term Loan Commitment” means with respect to each Term Lender, the amount set forth on
Schedule 2.01 under the heading “Term Loan Commitment”. The aggregate amount of the Term Loan
Commitments on the Effective Date is $575,000,000.

29

 

     “Term Loans” means the term loans made by the Lenders to the Borrower on the Funding Date
pursuant to Section 2.01(a).

     “Term Maturity Date” means the date (or if such date is not a Business Day, the next
succeeding Business Day, unless such Business Day is in the next calendar month, in which case the
next preceding Business Day) that is the fifth anniversary of the Funding Date.

     “Titan II” means (i) prior to the consummation of the Spin-off, the Current NGC Parent after
(A) it becomes a Wholly Owned Subsidiary of the Borrower and (B) the Main Shipbuilding Subsidiary
becomes a Wholly Owned Subsidiary of the Borrower and (ii) after the consummation of the Spin-off,
Titan II Inc., a Delaware corporation and a Wholly Owned Subsidiary of the Borrower.

     “Titan II Guarantees” means (i) (A) the performance guaranty dated as of April 11, 2002, by
Current NGC Parent, as guarantor, to the United States of America, Naval Sea Systems Command (the
“Navy”), as beneficiary, (B) the performance guaranty dated as of May 30, 2006, by Current NGC
Parent, as guarantor, to the Navy, as beneficiary, (C) the performance guaranty dated as of April
24, 2007, by Current NGC Parent, as guarantor, to the Navy, as beneficiary, and (D) any other
similar guarantee pursuant to which Current NGC Parent has guaranteed the performance of the Main
Shipbuilding Subsidiary, or any affiliate of the Main Shipbuilding Subsidiary, under shipbuilding
construction contracts with the Navy or a command or other division thereof and (ii) the guaranty
agreement dated as of December 1, 2006, between Current NGC Parent, as guarantor, and The Bank of
New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.),
as trustee, pursuant to which Current NGC Parent has guaranteed the payment of the GO Zone Bonds.

     “Total Debt” means, at any time, the total Indebtedness of the Borrower and the Restricted
Subsidiaries on a consolidated basis at such time (excluding Indebtedness of the type described in
clause (i), clause (j) and clause (k) of the definition of such term, except, in the case of such
clauses (j) and (k), to the extent of any unreimbursed drawings thereunder).

     “Transaction Documents” means, collectively, (i) the Distribution Agreement, the Ancillary
Agreements (as defined in the Distribution Agreement) and any other contribution and separation
agreements and other documents relating to the Internal Reorganization (including the Contribution)
and the Spin-off (including as to the allocation of liabilities), (ii) the documentation relating
to the establishment of the Borrower, (iii) the Senior Note Documents and (iv) all other documents,
instruments and documents relating to the Transactions (other than the Loan Documents).

     “Transaction Expenses” means all legal fees, auditors fees and other fees or expenses incurred
by the Borrower and the Restricted Subsidiaries in connection with the Transactions (including
without limitation, financing fees, financial and other advisory fees, accounting and consulting
fees and legal fees and related costs and expenses).

     “Transactions” means, collectively, (a) the Internal Reorganization (including the
Contribution), the establishment of the Borrower, and other transactions expressly contemplated by
the Transaction Documents specified in clause (i) of the definition thereof, (b) the Spin-off,

30

 

(c) the execution, delivery and performance by each Loan Party of the Loan Documents to which
it is to be a party, the borrowing or issuance of Loans, the use of any proceeds thereof and the
issuance of Letters of Credit hereunder, (e) the execution, delivery and performance of each Loan
Party of the Senior Note Documents to which it is to be a party and the issuance of the Senior
Notes and (e) the payment of the Transaction Expenses.

     “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.

     “UCP” means, with respect to any Letter of Credit, the Uniform Customs and Practice for
Documentary Credits, as published by the International Chamber of Commerce in 2007 (the “UCP600”).

     “Unrestricted Subsidiary” means any Subsidiary of the Borrower designated by the board of
directors of the Borrower (or, in the case of Titan II and Ascension designated by operation of the
last sentence of Section 5.12) as an Unrestricted Subsidiary pursuant to Section 5.12 (and
continuing until such time that such designation may be thereafter revoked by the Borrower).

     “Unused Withheld Amount” has the meaning assigned to such term in the definition of Excess
Cash Withheld Amount.

     “US Dollar Equivalent” means, on any date of determination, (a) with respect to any amount in
US Dollars, such amount, and (b) with respect to any amount in any currency other than US Dollars,
the equivalent in US Dollars of such amount, determined by the Administrative Agent using the LC
Exchange Rate with respect to such currency in effect for such amount on such date. The US Dollar
Equivalent at any time of the amount of any Letter of Credit or LC Disbursement denominated in any
currency other than US Dollars shall be the amount most recently determined as provided in Section
1.05.

     “US Dollars” or “$” means the lawful money of the United States of America.

     “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30) of the
Code.

     “U.S. Tax Certificate” has the meaning assigned to such term in Section 2.18(f)(ii)(D).

     “Wholly Owned Domestic Restricted Subsidiary” means a Wholly Owned Restricted Subsidiary that
is a Domestic Subsidiary.

     “Wholly Owned Restricted Subsidiary” means a Wholly Owned Subsidiary that is a Restricted
Subsidiary.

     “Wholly Owned Subsidiary” of any Person means a subsidiary of such Person of which securities
(except for directors’ qualifying shares) or other ownership interests representing 100% of the
Equity Interests are, at the time any determination is being made, owned, Controlled

31

 

or held by such Person or one or more wholly owned Subsidiaries of such Person or by such
Person and one or more wholly owned Subsidiaries of such Person.

     “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.

     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
“Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may
be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a
“Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

     SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to both
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 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 the rules promulgated with respect thereto or in the
application thereof on the operation of such provision or on the method of calculation of financial
covenants, standards or terms of this Agreement (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.

32

 

     SECTION 1.05. Currency Translation. The Administrative Agent shall determine the US Dollar
Equivalent of any Letter of Credit denominated in a Designated Foreign Currency as of any
Revaluation Date, in each case using the LC Exchange Rate for the applicable currency in effect on
the date of determination, and each such amount shall be the US Dollar Equivalent of such Letter of
Credit until the next Revaluation Date. The Administrative Agent shall in addition determine the
US Dollar Equivalent of any Letter of Credit denominated in any Designated Foreign Currency as
provided in Section 2.05. The Administrative Agent shall notify the Borrower and the applicable
Issuing Bank of each calculation of the US Dollar Equivalent of each Letter of Credit and LC
Disbursement.

     SECTION 1.06. Pro Forma Calculations. All pro forma calculations permitted or required to be
made by the Borrower or any Restricted Subsidiary pursuant to this Agreement shall include only
those adjustments that would be (a) permitted or required by Regulation S-X under the Securities
Act of 1933, as amended, together with those adjustments that (i) have been certified by a
Financial Officer of the Borrower as having been prepared in good faith based upon reasonable
assumptions and (ii) are based on reasonably detailed written assumptions and (b) required by the
definition of Consolidated EBITDA.

ARTICLE 2

The Credits

     SECTION 2.01. Commitments. (a) Subject to the terms and conditions set forth herein, each
Term Lender severally agrees to make Term Loans to the Borrower on the Funding Date in US Dollars
in an aggregate principal amount that will not result in the aggregate amount of such Lender’s Term
Loans exceeding such Lender’s Term Loan Commitment. Amounts repaid or prepaid in respect of Term
Loans may not be reborrowed.

     (b) Subject to the terms and conditions set forth herein, each Revolving Credit Lender
severally agrees to make Revolving Loans to the Borrower from time to time during the Availability
Period in US Dollars in an aggregate principal amount that will not result in such Lender’s
Revolving Credit Exposure exceeding such Lender’s Revolving Credit Commitment; it being understood
and agreed for the avoidance of doubt that no Revolving Loans shall be made on the Funding Date.
Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower
may borrow, repay and reborrow Revolving Loans.

     SECTION 2.02. Loans and Borrowings. (a) Each Loan of any Class (other than Swingline Loans)
shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance
with their applicable Commitments of such Class. 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.

     (b) Subject to Section 2.15, each Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request in accordance herewith. Each Swingline Loan shall be
an ABR Loan. Each Lender at its option may make any Eurodollar Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan; provided that any

33

 

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 Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less
than $2,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in
an aggregate amount that is an integral multiple of $500,000 and not less than $2,000,000; provided
that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the total Commitments or that is required to finance the reimbursement of an LC
Disbursement as contemplated by Section 2.05(e). Each Swingline Loan shall be in an amount that is
an integral multiple of $100,000 and not less than $500,000. 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 10 Eurodollar 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 Eurodollar Borrowing if the Interest Period
requested with respect thereto would end after the Revolving Credit Maturity Date or the Term
Maturity Date, as applicable.

     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 Eurodollar Borrowing, not
later than 12:00 noon, 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 12:00 noon, New York City time,
one Business Day before the proposed Borrowing; provided that any such notice of an ABR Revolving
Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may
be given not later than 10:00 a.m., New York City time, on the date 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 Borrower. Each such telephonic and written Borrowing
Request shall specify the following information in compliance with Section 2.02:

     (i) the aggregate amount of the requested Borrowing;

     (ii) the date of such Borrowing, which shall be a Business Day;

     (iii) whether such Borrowing is to be a Term Borrowing or a Revolving Borrowing, and
whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

     (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the term
“Interest Period”.

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 Eurodollar

34

 

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 applicable Class 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. Swingline Loans. (a) Subject to the terms and conditions set forth herein, the
Swingline Lenders agree to make Swingline Loans to the Borrower from time to time during the
Availability Period in US Dollars in amounts that will not result in (i) the aggregate principal
amount of outstanding Swingline Loans exceeding $100,000,000 or (ii) the total Revolving Credit
Exposures exceeding the total Revolving Credit Commitments; provided that no Swingline Lender shall
be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the
foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow,
repay and reborrow Swingline Loans. Unless otherwise agreed between the Swingline Lenders, each
Swingline Lender shall make 50% of each Swingline Loan.

     (b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy), not later than 1:00 p.m., New York City time, on the
day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the
requested date (which shall be a Business Day) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lenders of any such notice received from
the Borrower. The Swingline Lenders shall make each Swingline Loan available to the Borrower by
means of a credit (or remittance) to the general deposit account of the Borrower with the
Administrative Agent (or, in the case of a Swingline Loan made to finance the reimbursement of an
LC Disbursement as provided in Section 2.05(e), by remittance to the applicable Issuing Bank) by
4:00 p.m., New York City time, on the requested date of such Swingline Loan.

     (c) The Swingline Lenders (acting together) may by written notice given to the Administrative
Agent not later than 10:00 a.m., New York City time, on any Business Day require the Revolving
Credit Lenders to acquire participations on such Business Day in all or a portion of the
outstanding Swingline Loans. Such notice shall specify the aggregate amount of Swingline Loans in
which the Revolving Credit Lenders will participate. Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each Revolving Credit Lender, specifying in such
notice such Lender’s Applicable Revolving Percentage of such Swingline Loan or Loans. Each
Revolving Credit Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of the Swingline Lenders, such
Lender’s Applicable Revolving Percentage of such Swingline Loan or Loans. Each Revolving Credit
Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans
pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Each Revolving Credit Lender shall comply with its
obligation under this paragraph by wire transfer of immediately available funds, in the same manner
as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall
apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent
shall promptly pay to the

35

 

Swingline Lenders their pro rata share of the amounts so received by it from the Revolving
Credit Lenders. The Administrative Agent shall notify the Borrower of any participations in any
Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such
Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lenders. Any
amounts received by the Swingline Lenders from the Borrower (or other party on behalf of the
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lenders of the proceeds of
a sale of participations therein shall be promptly remitted to the Administrative Agent; any such
amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent
to the Revolving Credit Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lenders, as their interests may appear; provided that any such payment so remitted
shall be repaid to the Swingline Lenders or to the Administrative Agent, as applicable, if and to
the extent such payment is required to be refunded to the Borrower for any reason. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any
default in the payment thereof.

     SECTION 2.05. Letters of Credit. (a) General. (i) Subject to the terms and conditions set
forth herein, the Borrower may request the issuance of commercial and standby Letters of Credit
denominated in US Dollars or any Designated Foreign Currency approved by the applicable Issuing
Bank (and in the case of any such Designated Foreign Currency, (A) subject to any cap imposed by
such applicable Issuing Bank in respect of such Designated Foreign Currency and (B) provided that
the LC Exposure of Letters of Credit denominated in Designated Foreign Currencies shall not exceed
$70,000,000 at any time), (x) for its own account or (y) for its own account and, jointly, for the
account of any of its Restricted Subsidiaries (and in each case under this clause (y), the Borrower
shall be considered the sole obligor under such Letter of Credit for purposes of this Agreement
notwithstanding any listing of any Restricted Subsidiary as an account party or applicant with
respect to such Letter of Credit), pursuant to an agreement (x) if JPMCB is the Issuing Bank,
substantially in the form of Exhibit C (the “LC Continuing Agreement Form”) and (y) in the case of
any other Issuing Bank, substantially in the form of the LC Continuing Agreement Form with such
changes as shall be agreed to by the Borrower, the applicable Issuing Bank and the Administrative
Agent, at any time and from time to time during the Availability Period (including, for the
avoidance of doubt, on the Funding Date). Except as to matters covered by agreements contained
herein or otherwise expressly agreed by the relevant Issuing Bank and the Borrower when a Letter of
Credit is issued, the rules of the ISP shall apply to each standby Letter of Credit, and the rules
of the UCP shall apply to each commercial Letter of Credit. JPMCB and each other Lender which has
been designated as an Issuing Bank hereunder, agrees, subject to the terms and conditions set forth
herein (including, without limitation, Section 4.03), that it shall issue Letters of Credit
complying with the terms of this Agreement upon the request of the Borrower in the manner
contemplated by this Section. It is understood and agreed that the Borrower shall be deemed to be
a primary account party under, and obligated in respect of, each Letter of Credit issued at the
request of the Borrower hereunder, notwithstanding the fact that a Restricted Subsidiary may be
listed as the account party in the Letter of Credit. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by the Borrower to, or entered into by the Borrower with,
an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall
control. The Borrower unconditionally and irrevocably agrees that, in connection with any Letter
of Credit

36

 

referred to in clause (ii) of the first sentence of this paragraph, it will be fully
responsible for the reimbursement of LC Disbursements, the payment of interest thereon and the
payment of participation fees and other fees due hereunder to the same extent as if it were the
sole account party in respect of such Letter of Credit (the Borrower hereby irrevocably waiving any
defenses that might otherwise be available to it as a guarantor of the obligations of any
Restricted Subsidiary that shall be a joint account party in respect of any such Letter of Credit).

     (ii) The parties hereto acknowledge and agree that, as of the Funding Date, the Existing
JPM Letters of Credit shall constitute Letters of Credit hereunder for all purposes as fully
as if such Existing JPM Letters of Credit had been issued as Letters of Credit hereunder.

     (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the
issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of
Credit), the Borrower shall hand deliver or telecopy to the applicable Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal
or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal
or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) of this Section), the currency and amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit. In connection with any request
for a Letter of Credit and if requested by the applicable Issuing Bank, the Borrower also shall
submit (i) in the case of such request from JPMCB, a letter of credit application substantially in
the form attached as an annex to the LC Continuing Agreement Form or (ii) in the case of such
request from any other Issuing Bank, a letter of credit application substantially in the form
attached as an annex to the LC Continuing Agreement with such changes as shall be agreed between
the Borrower and such Issuing Bank. A Letter of Credit shall be issued, amended, renewed or
extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the
Borrower shall be deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension, (i) the total Revolving Credit Exposures shall not exceed the
total Revolving Credit Commitments, (ii) the total LC Exposure shall not exceed $350,000,000, (iii)
the portion of the LC Exposure attributable to Letters of Credit issued by the applicable Issuing
Bank will not exceed the LC Commitment of such Issuing Bank and (iv) if such Letter of Credit is
denominated in a Designated Foreign Currency, the US Dollar Equivalent of the portion of the LC
Exposure attributable to Letters of Credit denominated in such Designated Foreign Currency and
issued by the applicable Issuing Bank shall not exceed the cap (if any) imposed by such Applicable
Bank with respect to such Designated Foreign Currency.

     (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business
on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit
(or, in the case of any renewal or extension thereof, one year after such renewal or extension) and
(ii) the date that is five Business Days prior to the Revolving Credit Maturity Date; provided that
any Letter of Credit with a one-year tenor may provide for renewal thereof under procedures
reasonably satisfactory to the applicable Issuing Bank for additional one-year periods (which shall
in no event extend beyond the date referred to in clause (ii) above).

37

 

     (d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of
Credit increasing the amount thereof) and without any further action on the part of the applicable
Issuing Bank or the Revolving Credit Lenders, such Issuing Bank hereby grants to each Revolving
Credit Lender, and each such Revolving Credit Lender hereby acquires from such Issuing Bank, a
participation in such Letter of Credit equal to such Lender’s Applicable Revolving Percentage of
the aggregate amount available to be drawn under such Letter of Credit. In consideration and in
furtherance of the foregoing, each Revolving Credit Lender hereby absolutely and unconditionally
agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such
Lender’s Applicable Revolving Percentage (determined as of the time or times at which the Revolving
Credit Lenders are required to make payments in respect of unreimbursed LC Disbursements under such
Letter of Credit pursuant to paragraph (e) below) of each LC Disbursement made by such Issuing Bank
and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or
of any reimbursement payment required to be refunded to the Borrower for any reason (or, if the
currency of the applicable LC Disbursement or reimbursement payment shall be a Designated Foreign
Currency, an amount equal to the US Dollar Equivalent thereof using the LC Exchange Rate in effect
on the applicable LC Participation Calculation Date). Each Revolving Credit Lender acknowledges
and agrees that its obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence
and continuance of a Default or reduction or termination of the Commitments or any fluctuation in
currency values, and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever.

     (e) Reimbursement. If the applicable Issuing Bank shall make any LC Disbursement in respect
of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York
City time, on the date that such LC Disbursement is made, if the Borrower shall have received
notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such
notice has not been received by the Borrower prior to such time on such date, then not later than
12:00 noon, New York City time, on the Business Day immediately following the day that the Borrower
receives such notice; provided that the Borrower may, subject to the conditions to borrowing set
forth herein, request in accordance with Sections 2.03 or 2.04 that such payment be financed with
an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so
financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing or Swingline Loan. If the Borrower fails to reimburse any LC
Disbursement when due, (i) if such payment relates to a Letter of Credit denominated in a
Designated Foreign Currency, automatically and with no further action required, the obligation of
the Borrower to reimburse the applicable LC Disbursement shall be permanently converted into an
obligation to reimburse the US Dollar Equivalent, calculated using the LC Exchange Rate on the
applicable LC Participation Calculation Date, of such LC Disbursement and (ii) in the case of each
LC Disbursement, the Administrative Agent shall notify each Revolving Credit Lender of the
applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such
Lender’s Applicable Revolving Percentage thereof. Promptly following receipt of such notice, each
Revolving Credit Lender shall pay to the Administrative Agent its Applicable Revolving Percentage
of the payment then due from the

38

 

Borrower, in the same manner as provided in Section 2.06 with respect to Revolving Loans made
by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the
Revolving Credit Lenders), and the Administrative Agent shall promptly pay to the applicable
Issuing Bank the amounts so received by it from the Revolving Credit Lenders. Promptly following
receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph,
the Administrative Agent shall distribute such payment to such Issuing Bank or, to the extent that
Revolving Credit Lenders or a Swingline Lender have made payments pursuant to this paragraph to
reimburse such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may
appear. Any payment made by a Lender pursuant to this paragraph to reimburse an Issuing Bank for
any LC Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan as
contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its
obligation to reimburse such LC Disbursement. If the Borrower’s reimbursement of, or obligation to
reimburse, any amounts in respect of any Letter of Credit denominated in a currency other than US
Dollars would subject the Administrative Agent, the applicable Issuing Bank or any Lender to any
stamp duty, ad valorem charge or other tax, expense or loss (including any loss resulting from
changes in currency exchange rates between the date of any LC Disbursement and the date of any
reimbursement payment in respect thereof), the Borrower shall pay the amount of any such tax,
expense or loss requested by the Administrative Agent or the relevant Issuing Bank or Lender, as
applicable.

     (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided
in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit
or this Agreement, or any term or provision therein, (ii) any draft or other document presented
under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment by the applicable
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of, or provide a right of setoff against,
the Borrower’s obligations hereunder. Neither the Administrative Agent, the Revolving Credit
Lenders nor any Issuing Bank, nor any of their Related Parties, shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit
or any payment or failure to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or relating to any
Letter of Credit (including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond the control of the
applicable Issuing Bank; provided that the foregoing shall not be construed to excuse an Issuing
Bank from liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the Borrower to the extent
permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s
failure to exercise care when determining whether drafts and other documents presented under a
Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the
absence of gross negligence or willful misconduct on the part of an Issuing Bank (as

39

 

finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to
have exercised care in each such determination. In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to documents presented which
appear on their face to be in substantial compliance with the terms of a Letter of Credit, an
Issuing Bank may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or information to the
contrary, or refuse to accept and make payment upon such documents if such documents are not in
strict compliance with the terms of such Letter of Credit.

     (g) Disbursement Procedures. The applicable Issuing Bank shall, promptly following its
receipt thereof, examine all documents purporting to represent a demand for payment under a Letter
of Credit. Such Issuing Bank shall promptly notify the Administrative Agent and the Borrower by
telephone (confirmed by telecopy) of such demand for payment and whether such Issuing Bank has made
or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving
such notice shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the
Revolving Credit Lenders with respect to any such LC Disbursement.

     (h) Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the
Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the
unpaid amount thereof shall bear interest, for each day from and including the date such LC
Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement,
(i) in the case of any LC Disbursement denominated in US Dollars and at all times following the
conversion to US Dollars of an LC Disbursement made in a Designated Foreign Currency pursuant to
paragraph (e) of this Section, at the rate per annum then applicable to ABR Revolving Loans, and
(ii) if such LC Disbursement is made in a Designated Foreign Currency, at all times prior to its
conversion to US Dollars pursuant to paragraph (e) of this Section, at a rate per annum reasonably
determined by the applicable Issuing Bank to represent the cost to such Issuing Bank of funding
such LC Disbursement plus the Applicable Margin applicable to Eurodollar Revolving Loans at such
time; provided that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.14(c) shall apply. Interest accrued pursuant to this
paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on
and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse
such Issuing Bank shall be for the account of such Lender to the extent of such payment.

     (i) Designation of Additional Issuing Banks. From time to time, the Borrower may by notice to
the Administrative Agent and the Revolving Credit Lenders designate as additional Issuing Banks one
or more Revolving Credit Lenders that agree to serve in such capacity as provided below. The
acceptance by a Revolving Credit Lender of any appointment as an Issuing Bank hereunder shall be
evidenced by an agreement (an “Issuing Bank Agreement”), which shall be in a form reasonably
satisfactory to the Borrower and the Administrative Agent, shall set forth the LC Commitment of
such Revolving Credit Lender and shall be executed by such Revolving Credit Lender, the Borrower
and the Administrative Agent and, from and after the effective date of such agreement, (i) such
Revolving Credit Lender shall have all the rights and obligations of an Issuing Bank under this
Agreement and (ii) references herein to the term “Issuing Bank” shall be deemed to include such
Revolving Credit Lender in its capacity as an Issuing Bank.

40

 

     (j) Replacement of an Issuing Bank. An Issuing Bank may be replaced at any time by written
agreement among the Borrower, the Administrative Agent (whose consent will not be unreasonably
withheld or delayed) and the successor Issuing Bank. Any Issuing Bank so replaced shall continue
to have the benefit of this Agreement in respect of any Letters of Credit of that Issuing Bank
which remain outstanding. The Administrative Agent shall notify the Lenders of any such
replacement of an Issuing Bank. At the time any such replacement shall become effective, the
Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.13(b).

     (k) Cash Collateralization. If any Event of Default shall occur and be continuing, on the
Business Day that the Borrower receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Revolving Credit Loans has been accelerated, the Required
Revolving Credit Lenders or any Issuing Bank with any outstanding Letter of Credit) demanding the
deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account
with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the
Revolving Credit Lenders, an amount in cash equal to 102% of the LC Exposure with respect to the
applicable Letters of Credit as of such date plus any accrued and unpaid interest thereon; provided
that (i) amounts payable in respect of any Letter of Credit or LC Disbursement shall be payable in
the currency of such Letter of Credit or LC Disbursement and (ii) the obligation to deposit such
cash collateral shall become effective immediately, and such deposit shall become immediately due
and payable, without demand or other notice of any kind, upon the occurrence of any Event of
Default with respect to the Borrower described in clause (h) or (i) of Article 7. Such deposit
shall be held by the Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such account. Other than
any interest earned on the investment of such deposits, which investments shall be made in
Permitted Investments at the option and sole discretion of the Administrative Agent and at the
Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if any,
on such investments shall accumulate in such account. Moneys in such account shall be applied by
the Administrative Agent to reimburse each Issuing Bank for LC Disbursements for which such Issuing
Bank has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction
of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the
maturity of the Revolving Credit Loans has been accelerated (but subject to the consent of the
Required Revolving Credit Lenders and each Issuing Bank with any outstanding Letter of Credit), be
applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the occurrence of an
Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the
Borrower within three Business Days after all Events of Default have been cured or waived.

     (l) Issuing Bank Reports. Unless otherwise agreed by the Administrative Agent, each Issuing
Bank shall report in writing to the Administrative Agent (who shall promptly provide notice to the
Revolving Credit Lenders of the contents thereof) (i) on or prior to each Business Day on which
such Issuing Bank issues, amends, renews or extends any Letter of Credit, the date of such
issuance, amendment, renewal or extension, and the currency and aggregate face amount of the
Letters of Credit issued, amended, renewed or extended by it and outstanding after giving

41

 

effect to such issuance, amendment, renewal or extension (and whether the amount thereof shall
have changed), it being understood that such Issuing Bank shall not effect any issuance, renewal,
extension or amendment resulting in an increase in the aggregate amount of the Letters of Credit
issued by it without first obtaining written confirmation from the Administrative Agent that such
increase is then permitted under this Agreement, (ii) on each Business Day on which such Issuing
Bank makes any LC Disbursement, the date, currency and amount of such LC Disbursement, (iii) on any
Business Day on which the Borrower fails to reimburse an LC Disbursement required to be reimbursed
to such Issuing Bank on such day, the date of such failure and the currency and amount of such LC
Disbursement and (iv) on any other Business Day, such other information as the Administrative Agent
shall reasonably request as to the Letters of Credit issued by such Issuing Bank.

     SECTION 2.06. 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; provided that Swingline Loans shall be made as provided
in Section 2.04. The Administrative Agent will make such Loans available to the Borrower by
promptly crediting the amounts so received, in like funds, to the Designated Payment Account;
provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e) shall be remitted by the Administrative Agent to the applicable Issuing
Bank.

     (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 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 the 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 the Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, 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 or (ii) in the case of the Borrower, the interest
rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender’s Loan included in such Borrowing.

     SECTION 2.07. Interest Elections. (a) Each Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar 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 Eurodollar 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

42

 

portion shall be considered a separate Borrowing. This Section shall not apply to Swingline
Loans, which may not be converted or continued.

     (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 Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar 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 Eurodollar 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.

     (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 a timely Interest Election Request with respect to a
Eurodollar 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 Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest
Period applicable thereto.

43

 

     SECTION 2.08. Termination and Reduction of Commitments. (a) If the Funding Date does not
occur on or prior to June 30, 2011, the Commitment of each Lender shall terminate at the close of
business on June 30, 2011. Unless previously terminated, the Revolving Credit Commitment of each
Revolving Credit Lender shall terminate on the Revolving Credit Maturity Date. Unless previously
terminated, the Term Loan Commitment of each Term Lender shall automatically terminate upon the
funding of Term Loans to be made by it on the Funding Date.

     (b) The Borrower 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 $1,000,000 and not less than $1,000,000 and (ii) the Borrower shall not terminate or
reduce the Revolving Credit Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Sections 2.11 and 2.12, the total Revolving Credit Exposures would exceed
the total Revolving Credit Commitments.

     (c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Commitments of any Class under paragraph (b) of this Section at least three Business Days 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 applicable Class of the contents thereof. Each notice delivered by the Borrower
pursuant to this Section shall be irrevocable; provided that a notice of termination of the
Revolving Credit Commitments delivered by the Borrower may state that such notice is conditioned
upon the effectiveness of other credit facilities or other debt or equity issuances, in which case
such notice may be revoked by the Borrower (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 of any Class shall be made
ratably among the Lenders of such Class in accordance with their respective Commitments of such
Class. The Borrower shall pay to the Administrative Agent for the account of the Lenders of the
applicable Class, on the date of each termination or reduction under paragraph (b) of this Section,
any applicable commitment fees on the amount of the Commitments of such Class so terminated or
reduced accrued to but excluding the date of such termination or reduction.

     SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally
promises to pay (i) to the Administrative Agent for the account of each Revolving Credit Lender the
then unpaid principal amount of each Revolving Loan on the Revolving Credit Maturity Date, (ii) to
the Administrative Agent for the account of each Term Lender the then unpaid principal amount of
each Term Loan on the Term Loan Maturity Date and (iii) to the Swingline Lenders the then unpaid
principal amount of each Swingline Loan on the earlier of (A) the Revolving Credit Maturity Date
and (B) the first date after such Swingline Loan is made that is five Business Days after such
Swingline Loan is made; provided that on each date that a Revolving Borrowing is made, the Borrower
shall repay all Swingline Loans then outstanding.

     (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.

44

 

     (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 (if any) 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 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 reasonably 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).

     SECTION 2.10. Amortization of Term Loans. (a) Subject to adjustment pursuant to Sections
2.11(b) and 2.12(g), the Borrower shall repay to the Administrative Agent for the account of the
Term Lenders, on the dates set forth below, or if any such date is not a Business Day, on the
immediately succeeding Business Day a principal amount of the Term Loans in an amount equal to the
amount set forth below for such date, together in each case with accrued and unpaid interest on the
principal amount to be paid to but excluding the date of such payment:

	 	 	 	 	 
	Repayment Date1	 	Amount
	June __, 2011

	 	$	7,500,000	 
	September __, 2011

	 	$	7,500,000	 
	December __, 2011

	 	$	7,500,000	 
	March __, 2012

	 	$	7,500,000	 
	June __, 2012

	 	$	7,500,000	 
	September __, 2012

	 	$	7,500,000	 
	December __, 2012

	 	$	7,500,000	 
	March __, 2013

	 	$	7,500,000	 
	June __, 2013

	 	$	15,000,000	 
	September __, 2013

	 	$	15,000,000	 
	December __, 2013

	 	$	15,000,000	 
	March __, 2014

	 	$	15,000,000	 
	June __, 2014

	 	$	22,500,000	 

 

			
	1	 	Repayment Dates (which shall be in 3-month
intervals from the Funding Date) to be filled in by Administrative Agent and
Borrower on Funding Date.

45

 

	 	 	 	 	 
	Repayment Date1	 	Amount
	September __, 2014
	 	$	22,500,000	 
	December __, 2014
	 	$	22,500,000	 
	March __, 2015
	 	$	22,500,000	 
	June __, 2015
	 	$	30,000,000	 
	September __, 2015
	 	$	30,000,000	 
	December __, 2015
	 	$	30,000,000	 
	Term Maturity Date
	 	Remaining outstanding principal amount

     (b) To the extent not previously paid, all Term Loans shall be due and payable on the Term
Maturity Date.

     SECTION 2.11. Voluntary Prepayments. (a) The Borrower shall have the right at any time and
from time to time to prepay any Borrowing of any Class in whole or in part, subject to prior notice
in accordance with paragraph (b) of this Section; provided, however, that each partial prepayment
shall be in an aggregate principal amount that is an integral multiple of $500,000 and not less
than $1,000,000 or, if less, the amount outstanding.

     (b) The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a
Swingline Loan, the Swingline Lenders) by telephone (confirmed by telecopy) of any prepayment
hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 12:00 noon, New
York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment
of an ABR Borrowing, not later than 12:00 noon, New York City time, one Business Day before the
date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 12:00
noon, New York City time, on 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 a notice of prepayment delivered by the Borrower may state that such
notice is conditioned upon the effectiveness of other credit facilities or other debt or equity
issuances, in which case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied; provided further that, if a notice of prepayment is given in connection with a
conditional notice of termination of the Commitments as contemplated by Section 2.08(c), then such
notice of prepayment may be revoked if such notice of termination is revoked in accordance with
Section 2.08(c). Promptly following receipt of any such notice relating to a Borrowing of any
Class, the Administrative Agent shall advise the Lenders of such Class of the contents thereof.
Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing. Voluntary prepayments of outstanding Term Loans under this Section 2.11 shall be
applied to future scheduled amortization payments pursuant to Section 2.10(a) as directed by the
Borrower. Prepayments under this Section 2.11 shall be accompanied by accrued interest to the
extent required by Section 2.14 and shall be subject to Section 2.17, but otherwise without premium
or penalty.

     SECTION 2.12. Mandatory Prepayments. (a) In the event of any termination of all the
Revolving Credit Commitments, the Borrower shall, on the date of such termination, repay or prepay
all its outstanding Revolving Loans and all outstanding Swingline Loans and replace or cause to be
canceled (or make other arrangements satisfactory to the Administrative Agent and

46

 

each applicable Issuing Bank with respect to) all outstanding Letters of Credit. If, after
giving effect to any partial reduction of the Revolving Credit Commitments or at any other time,
the total Revolving Credit Exposures would exceed the total Revolving Credit Commitments, then the
Borrower shall, on the date of such reduction or at such other time, repay or prepay Revolving
Loans or Swingline Loans (or a combination thereof) and, after the Revolving Loans and Swingline
Loans shall have been repaid or prepaid in full, replace or cause to be canceled (or make other
arrangements satisfactory to the Administrative Agent and each applicable Issuing Bank with respect
to) Letters of Credit in an amount sufficient to eliminate such excess.

     (b) Not later than the fifth Business Day following the receipt of Net Cash Proceeds in
respect of any Asset Sale, the Borrower shall apply 100% of the Net Cash Proceeds received with
respect thereto to prepay outstanding Term Loans in accordance with Section 2.12(g).

     (c) No later than 90 days after the end of each fiscal year of the Borrower, commencing with
the fiscal year ending on December 31, 2011, the Borrower shall prepay outstanding Term Loans in
accordance with Section 2.12(g) in an aggregate principal amount equal to (x) the Applicable ECF
Percentage of Excess Cash Flow minus (y) voluntary prepayments of Term Loans under Section 2.11
during such fiscal year but only to the extent that such prepayments do not occur in connection
with a refinancing of all or any portion of Term Loans; provided, that the amount of Term Loans
required to be repaid on any date pursuant to this Section 2.12(c) shall be reduced, to the extent
thereof, by an amount equal to the Excess Cash Adjustment Amount as of such date (before giving
effect to the reduction in the succeeding clause of this sentence), and the Gross ECF Overpayment
Amount shall in such case also be reduced on a dollar-for-dollar basis on such date.

     (d) If any Excess Cash Withheld Amount has been determined (as of the end of the preceding
fiscal year) in respect of a fiscal year, and certified in accordance with the definition of
“Excess Cash Withheld Amount”, then at any time and from time to time during such fiscal year the
Borrower may by written notice to the Administrative Agent reduce such Excess Cash Withheld Amount
(to the extent thereof), and if such notice is given then (x) the Borrower shall promptly prepay
outstanding Term Loans in accordance with Section 2.12(g) in an aggregate amount equal to the
Applicable ECF Percentage (calculated as of the end of the prior fiscal year) of the amount by
which such Excess Cash Withheld Amount is to be reduced, as specified in such notice, and (y) the
Excess Cash Withheld Amount in respect of such fiscal year shall be deemed reduced by the amount of
such reduction as so specified, and any calculation of Unused Withheld Amount and Excess Cash Flow
Overpayment Amount with respect to such fiscal year shall refer to the amount of Excess Cash
Withheld Amount as so reduced.

     (e) Not later than 45 days after the end of each fiscal year, commencing with the fiscal year
ending on December 31, 2012, the Borrower shall prepay outstanding Term Loans in accordance with
Section 2.12(g) in an aggregate amount equal to the Applicable ECF Percentage (calculated as of the
end of the prior fiscal year) of the Unused Withheld Amount, if any (after giving effect to Section
2.12(d)), from the prior fiscal year.

     (f) In the event that the Borrower or any Restricted Subsidiary shall receive Net Cash
Proceeds from the issuance or incurrence of Indebtedness (other than the issuance or incurrence of
Indebtedness permitted pursuant to Section 6.01), the Borrower shall, substantially

47

 

simultaneously with (and in any event not later than the third Business Day next following)
the receipt of such Net Cash Proceeds by the Borrower or such Restricted Subsidiary, apply an
amount equal to 100% of such Net Cash Proceeds to prepay outstanding Term Loans in accordance with
Section 2.12(g).

     (g) Mandatory prepayments of outstanding Term Loans under this Section 2.12 shall be applied
to reduce scheduled amortization payments pursuant to Section 2.10(a) (i) in forward order of
maturity to payments coming due within 12 months of the date of such prepayment and (ii) to the
extent of any excess, ratably by amount to the remaining scheduled payments.

     (h) The Borrower shall deliver to the Administrative Agent, at the time of each prepayment
required under this Section 2.12, (i) a certificate signed by a Financial Officer of the Borrower
setting forth in reasonable detail the calculation of the amount of such prepayment and (ii) at
least three Business Days’ prior written notice of such prepayment. Each notice of prepayment shall
specify the prepayment date, the Class and Type of each Loan being prepaid and the principal amount
of each Loan (or portion thereof) to be prepaid. All prepayments of Borrowings under this Section
2.12 shall be subject to Section 2.17, but shall otherwise be without premium or penalty, and shall
be accompanied by accrued and unpaid interest on the principal amount to be prepaid to but
excluding the date of payment.

     SECTION 2.13. Fees. (a) The Borrower agrees to pay to the Administrative Agent for the
account of each Revolving Credit Lender a commitment fee equal to the Applicable Margin of the
average daily unutilized amount of the Revolving Credit Commitments during the period from and
including the Funding Date to but excluding the date on which the Revolving Credit Commitments
terminate. For purposes of calculation of the commitment fee, Swingline Loans shall not, but LC
Exposure shall, be deemed to be a utilization of the Revolving Credit Commitments. Accrued
commitment fees shall be payable in arrears on the last day of March, June, September and December
of each year and on the date on which the Revolving Credit Commitments terminate, commencing on the
first such date to occur after the Funding Date. All commitment fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

     (b) The Borrower agrees to pay (i) to the Administrative Agent for the account of each
Revolving Credit Lender a participation fee with respect to such Lender’s participations in Letters
of Credit, which shall accrue on each day at a rate per annum equal to the Applicable Margin for
Eurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period from and including
the Funding Date to but excluding the later of the date on which such Lender’s Revolving Credit
Commitment terminates and the date on which such Lender ceases to have any LC Exposure, (ii) to
each Issuing Bank, for its own account, a fronting fee, which shall accrue at a rate of 25 basis
points per annum on the average daily amount of the LC Exposure attributable to Letters of Credit
issued by such Issuing Bank (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Funding Date to but excluding the later of
the date of termination of the Revolving Credit Commitments and the date on which there ceases to
be any LC Exposure, and (iii) to each Issuing Bank, for its own account, such Issuing Bank’s
standard fees (or such other fees as may be agreed to by such Issuing Bank and the Borrower from
time to time) with respect to the

48

 

amendment, renewal or extension of any Letter of Credit issued by it or processing of drawings
thereunder. Participation fees and fronting fees accrued through and including the last day of
March, June, September and December of each year shall be payable on the third Business Day
following such last day, commencing on the first such date to occur after the Funding Date;
provided that all such fees shall be payable on the date on which the Revolving Credit Commitments
terminate and any such fees accruing after the date on which the Revolving Credit Commitments
terminate shall be payable on demand. Any other fees payable to an Issuing Bank pursuant to this
paragraph shall be payable within 10 days after demand. All participation fees and fronting fees
shall be computed on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

     (c) If the Effective Date occurs but the Funding Date does not occur on or prior to March 31,
2011, a ticking fee shall accrue on the Commitments starting from April 1, 2011 until the Funding
Date as follows: (i) in the case of the Revolving Credit Commitments, at the rate of 0.50% per
annum of the Revolving Credit Commitments during the period from and including April 1, 2011 to but
excluding the Funding Date and (ii) in the case of the Term Loan Commitments, at the rate of 2.50%
per annum of the Lenders’ Term Loan Commitments during the period from and including April 1, 2011
to but excluding the Funding Date. Such ticking fee shall be payable by the Borrower to the
Administrative Agent for the account of each Lender on the Funding Date (if, but only if, the
Funding Date occurs).

     (d) The Borrower 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 Borrower and the Administrative
Agent.

     (e) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the applicable Issuing Bank, in the case of fees payable to it)
for distribution, in the case of commitment fees, participation fees and ticking fees, to the
applicable Lenders. Fees paid shall not be refundable under any circumstances.

     SECTION 2.14. Interest. (a) The Loans comprising each ABR Borrowing (including each
Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Margin.

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

     (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% per
annum 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% per annum 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 (i) on each Interest Payment
Date for such Loan, (ii) in the case of Revolving Loans, upon termination of the

49

 

Revolving Credit Commitments and (iii) in the case of Term Loans on the Term Maturity Date;
provided that (A) interest accrued pursuant to paragraph (c) of this Section shall be payable on
demand, (B) 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 (C) in
the event of any conversion of any Eurodollar 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 2.15. Alternate Rate of Interest. If prior to the commencement of any Interest
Period for a Eurodollar 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 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 Eurodollar Borrowing shall be ineffective and (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing; provided that if the circumstances giving rise to such notice affect only one Type of
Borrowings, then the other Type of Borrowings shall be permitted.

     SECTION 2.16. 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 any
Issuing Bank;

50

 

     (ii) impose on any Lender or any Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of
Credit or participation therein; or

     (iii) subject any Lender, the Issuing Bank or the Administrative Agent to any Taxes
(other than Indemnified Taxes) on its loans, loan principal, letters of credit, commitments
or other obligations, or its deposits, reserves, other liabilities or capital attributable
thereto;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
such Issuing Bank hereunder (whether of principal, interest or otherwise), in each case by an
amount deemed by that Lender or Issuing Bank in good faith to be material, then the Borrower will
pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or such Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

     (b) If any Lender or any Issuing Bank determines that any Change in Law regarding tax, capital
requirements or other requirements of law has or would have the effect of reducing the rate of
return on such Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such
Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such
Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender’s or such
Issuing Bank’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or
such Issuing Bank’s holding company including those with respect to capital adequacy), in each case
by an amount deemed by that Lender in good faith to be material, then from time to time the
Borrower will, without duplication of payments required to be made by the Borrower pursuant to
Section 2.18 hereof, pay to such Lender or such Issuing Bank, as the case may be, such additional
amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such
Issuing Bank’s holding company for any such reduction suffered.

     (c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary
to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as
specified in paragraph (a) or (b) of this Section and setting forth the basis for the determination
thereof, together with supporting calculations, shall be delivered to the Borrower and shall be
conclusive absent manifest error. In determining such amount or amounts, such Lender or such
Issuing Bank shall act reasonably and in good faith, and may use any reasonable averaging and
attribution methods. The Borrower shall pay such Lender or such Issuing Bank, as the case may be,
the amount shown as due on any such certificate within 10 Business Days after receipt thereof.

     (d) Failure or delay on the part of any Lender or any Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or such

51

 

Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be
required to compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs
or reductions incurred more than 180 days prior to the date that such Lender or such Issuing Bank,
as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s or such Issuing Bank’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 180-day period referred to above shall be extended to include the period of
retroactive effect thereof.

     SECTION 2.17. Break Funding Payments. In the event of (a) the payment of any principal of
any Eurodollar 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 Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.11(b) and is revoked in
accordance therewith) or (d) the assignment of any Eurodollar 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
2.20 then, in any such event, the Borrower shall compensate each Lender for the loss, cost and
expense attributable to such event (which loss, cost or expense shall not include lost profits).
In the case of a Eurodollar 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 eurodollar
market. A certificate of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section and setting forth the basis for the determination
thereof, together with supporting calculations, shall be delivered to the Borrower and shall be
conclusive absent manifest error. In determining such amount or amounts, such Lender shall act
reasonably and in good faith. The Borrower shall pay such Lender the amount shown as due on any
such certificate within 10 days after receipt thereof.

     SECTION 2.18. Taxes. (a) Any and all payments by or on account of any obligation of any Loan
Party under any Loan Document shall to the extent permitted by applicable law be made free and
clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if a Loan
Party shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i)
the sum payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section) the Administrative
Agent, a Lender or an Issuing Bank (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) such Loan Party shall make such
deductions and (iii) such Loan Party shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

52

 

     (b) In addition, each Loan Party shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     (c) Each Loan Party shall indemnify the Administrative Agent, each Lender and each Issuing
Bank, within 10 Business Days after written demand therefor (together with a reasonable basis for
the determination thereof), for the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or such Issuing Bank, as the case may be, on or with respect to
any payment by or on account of any obligation of such Loan Party under any Loan Document
(including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) and any reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower and setting forth the basis for the determination thereof,
delivered to a Loan Party by a Lender or an Issuing Bank, or by the Administrative Agent on its own
behalf or on behalf of a Lender or an Issuing Bank, shall be conclusive absent manifest error.

     (d) Each Lender shall severally indemnify the Administrative Agent for any Taxes (but, in the
case of any Indemnified Taxes, only to the extent that a Loan Party has not already indemnified the
Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan
Parties to do so) attributable to each Lender that are paid or payable by the Administrative Agent
in connection with any Loan Document and any reasonable expenses arising therefrom or with respect
thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. The indemnity under this Section 2.18(d) shall be paid within ten (10) days
after the Administrative Agent delivers to the applicable Lender a certificate stating the amount
of Taxes so paid or payable by the Administrative Agent. The certificate shall be conclusive as
between each Lender and the Administrative Agent of the amount so paid or payable absent manifest
error.

     (e) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Loan
Party to a Governmental Authority, such Loan Party shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of that portion of the tax return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent.

     (f) (i) Any Lender that is entitled to an exemption from or reduction of any applicable
withholding tax with respect to payments under any Loan Document shall deliver to the Borrower
(with a copy to the Administrative Agent), at the time or times as prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly completed and
executed documentation prescribed by applicable law or reasonably requested by the Borrower or the
Administrative Agent as will permit such payments to be made without withholding or at a reduced
rate of withholding. In addition, any Lender, if requested by the Borrower or the Administrative
Agent, shall deliver such other documentation prescribed by law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to
determine whether or not the Lender is subject to any withholding (including backup withholding) or
information reporting requirements. Notwithstanding anything to the contrary in the preceding two
sentences, the completion,

53

 

execution and submission of such documentation (other than such documentation set forth in
Section 2.18(f)(ii)(A) through (F) below) shall not be required if in the Lender’s judgment such
completion, execution or submission would subject the Lender to any material unreimbursed cost or
expense (or, in the case of a Change in Law, any incremental material unreimbursed cost or expense)
or would, unless indemnified by the Borrower to the reasonable satisfaction of the Lender,
materially prejudice the legal position or commercial operations of the Lender. Upon the reasonable
request of the Borrower or the Administrative Agent, any Lender shall update any form or
certification previously delivered pursuant to this Section 2.18(f). If any form or certification
previously delivered pursuant to this Section expires or becomes obsolete or inaccurate in any
respect with respect to a Lender, the Lender shall promptly (and in any event within ten (10) days
after such expiration, obsolescence or inaccuracy) notify the Borrower and the Administrative Agent
in writing of such expiration, obsolescence or inaccuracy and update the form or certification if
it is legally eligible to do so.

     (ii) Without limiting the generality of the foregoing, any Lender with respect to the
Borrower shall, if it is legally eligible to do so, deliver to the Borrower and the
Administrative Agent (in such number of copies reasonably requested by the Borrower and the
Administrative Agent) on or prior to the date on which the Lender becomes a party hereto,
duly completed and executed copies of whichever of the following is applicable:

     (A) in the case of a Lender that is a U.S. Person, IRS Form W-9 certifying
that the Lender is exempt from U.S. federal backup withholding;

     (B) in the case of a Foreign Lender claiming the benefits of an income tax
treaty to which the United States is a party (1) with respect to payments of
interest under any Loan Document, IRS Form W-8BEN establishing an exemption from,
or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of
such tax treaty and (2) with respect to any other applicable payments under this
Agreement, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S.
federal withholding Tax pursuant to another article of such tax treaty including,
without limitation, the “business profits” or “other income” article of such tax
treaty;

     (C) in the case of a Foreign Lender for whom payments under this Agreement
constitute income that is effectively connected with the Lender’s conduct of a
trade or business in the United States, IRS Form W-8ECI;

     (D) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under Section 881(c) of the Code, both (1) IRS Form W-8BEN and
(2) a certificate substantially in the form of Exhibit I (a “U.S. Tax Certificate”)
to the effect that the Lender is not (w) a “bank” within the meaning of Section
881(c)(3)(A) of the Code, (x) a “10 percent shareholder” of the Borrower within the
meaning of Section 881(c)(3)(B) of the Code, (y) a “controlled foreign corporation”
described in Section 881(c)(3)(C) of the Code or (z) conducting a trade or business
in the United States with which the relevant interest payments are effectively
connected;

54

 

     (E) in the case of a Foreign Lender that is not the beneficial owner of
payments made under this Agreement (including a partnership or a participating
Lender) (1) an IRS Form W-8IMY on behalf of itself and (2) the relevant forms
prescribed in clauses (A), (B), (C), (D) and (F) of this paragraph (f)(ii) that
would be required of each beneficial owner (or partner or Participant) if the
beneficial owner (or partner or Participant) were a Lender; provided, however, that
if the Lender is a partnership and one or more of its partners are claiming the
exemption for portfolio interest under Section 881(c) of the Code, the Lender may
provide a “U.S. Tax Certificate” on behalf of the partners; or

     (F) any other form prescribed by law as a basis for claiming exemption from,
or a reduction of, U.S. federal withholding Tax together with the supplementary
documentation necessary to enable the Borrower or the Administrative Agent to
determine the amount of Tax (if any) required by law to be withheld.

     (iii) If a payment made to a Lender under any Loan Document would be subject to U.S.
federal withholding Tax imposed by FATCA if the Lender were to fail to comply with the
applicable reporting requirements of FATCA (including those contained in Section 1471(b) or
1472(b) of the Code, as applicable), the Lender shall deliver to the Administrative Agent
and the Borrower, at the time or times prescribed by law and at such other time or times
reasonably requested by the Administrative Agent or the Borrower, the documentation
prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the
Code) and the additional documentation reasonably requested by the Administrative Agent or
the Borrower as may be necessary for the Administrative Agent or the relevant Borrower to
comply with its obligations under FATCA, to determine that the Lender has or has not
complied with the Lender’s obligations under FATCA, or to determine the amount to deduct and
withhold from the payment. Solely for purposes of this Section 2.18(f)(iii), “FATCA” shall
include any amendments made to FATCA after the date of this Agreement.

     (g) If the Administrative Agent, a Lender or an Issuing Bank determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been
indemnified by a Loan Party or with respect to which a Loan Party has paid additional amounts
pursuant to this Section 2.18, it shall pay over such refund to such Loan Party (but only to the
extent of indemnity payments made, or additional amounts paid, by such Loan Party under this
Section 2.18 with respect to the Taxes or Other Taxes giving rise to such refund), net of all
reasonable out-of-pocket expenses of the Administrative Agent, such Lender or such Issuing Bank and
without interest (other than any interest paid by the relevant Governmental Authority with respect
to such refund) within thirty days after receipt of such refund; provided, that such Loan Party,
upon the request of the Administrative Agent, such Lender or such Issuing Bank, agrees to repay the
amount paid over to such Loan Party (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority and the reasonable fees and expenses of the Administrative Agent,
such Lender or such Issuing Bank) to the Administrative Agent, such Lender or such Issuing Bank in
the event the Administrative Agent, such Lender or such Issuing Bank is required to repay such
refund to such Governmental Authority. This Section shall not be construed to require the
Administrative Agent, any Lender or any Issuing Bank to

55

 

make available its tax returns (or any other information relating to its taxes which it deems
confidential) to the Loan Parties or any other Person.

     SECTION 2.19. Payments Generally; Pro Rata Treatment; Sharing of Set Offs. (a) The Borrower
shall make each payment required to be made by it hereunder (whether of principal, interest, fees
or reimbursement of LC Disbursements, or of amounts payable under Section 2.16, 2.17 or 2.18, or
otherwise) prior to 1:00 p.m., New York City time, on the date when due, in immediately available
funds, without set off or counterclaim. Any amounts received after such time on any date may, in
the discretion of the Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments shall be made to the
Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be
made directly to an Issuing Bank or the Swingline Lenders as expressly provided herein and except
that payments pursuant to Section 2.16, 2.17 or 2.18 and 9.03 shall be made directly to the Persons
entitled thereto; in the case of each payment, Borrower may make such payment in accordance with
the wire transfer instructions from time to time provided by the Administrative Agent to the
Borrower in writing, executed in original counterpart on the Administrative Agent’s letterhead.
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
US Dollars except as expressly provided herein.

     (b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, 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 and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and unreimbursed LC Disbursements 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 or participations in
LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Loans and participations in LC Disbursements and
Swingline 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 and participations in LC Disbursements and Swingline 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
and participations in LC Disbursements and Swingline 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

56

 

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 or participations in LC Disbursements
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 or the
applicable Issuing Bank 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 or such Issuing Bank, as the case
may be, the amount due. In such event, if the Borrower has not in fact made such payment, then
each of the Lenders or the applicable Issuing Bank, as the case may be, severally agrees to repay
to the Administrative Agent forthwith on demand the amount so distributed to such Lender or such
Issuing Bank 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
Sections 2.04(c), 2.05(d), 2.05(e), 2.06(b), 2.19(d) or 9.03(c), 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 2.20. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests
compensation under Section 2.16, or if any Loan Party is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.18,
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 2.16 or Section 2.18, 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. The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such designation or
assignment.

     (b) If any Lender requests compensation under Section 2.16, or if any Loan Party is required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.18, or if any Lender of any Class becomes a Defaulting Lender, 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

57

 

interests, rights and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender of such Class, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior written consent of the
Administrative Agent (and if a Revolving Credit Commitment is being assigned, the Issuing Bank),
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 and participations in LC Disbursements
and Swingline 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 2.16 or payments required to be
made pursuant to Section 2.18, 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.

     SECTION 2.21. Defaulting Lenders. Notwithstanding any provision of this Agreement to the
contrary, if any Revolving Credit Lender becomes a Defaulting Lender, then the following provisions
shall apply for so long as such Lender is a Defaulting Lender:

     (a) fees shall cease to accrue on the unfunded portion of the Revolving Credit Commitment of
such Defaulting Lender pursuant to Section 2.13(a);

     (b) the Revolving Credit Commitment and Revolving Credit Exposure of such Defaulting Lender
shall not be included in determining whether the Required Lenders have taken or may take any action
hereunder (including any consent to any amendment, waiver or other modification pursuant to Section
9.02); provided, that this clause (b) shall not apply to the vote of a Defaulting Lender in the
case of an amendment, waiver or other modification requiring the consent of all Lenders or each
Lender affected thereby;

     (c) if any Swingline Exposure or LC Exposure exists at the time such Lender becomes a
Defaulting Lender then:

     (i) so long as no Event of Default shall have occurred and be continuing, all or any
part of the Swingline Exposure and LC Exposure of such Defaulting Lender shall be
reallocated among the non-Defaulting Lenders that are Revolving Credit Lenders in accordance
with their respective Applicable Revolving Percentages but only to the extent (x) the sum of
all non-Defaulting Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s
Swingline Exposure and LC Exposure does not exceed the total of all non-Defaulting Lenders’
Revolving Credit Commitments and (y) the sum of any non-Defaulting Lender’s Revolving Credit
Exposure plus its Applicable Revolving Percentage of such Defaulting Lenders’ Swingline
Exposure and LC Exposure does not exceed such non-Defaulting Lender’s Revolving Credit
Commitment;

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the Borrower shall within one Business Day following notice by the
Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash

58

 

collateralize for the benefit of the Issuing Banks only the Borrower’s obligations
corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial
reallocation pursuant to clause (i) above) in accordance with the procedures set forth in
Section 2.05(k) for so long as such LC Exposure is outstanding;

     (iii) if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC
Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any fees
to such Defaulting Lender pursuant to Section 2.13(b) with respect to such Defaulting
Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash
collateralized;

     (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause
(i) above, then the fees payable to the Lenders pursuant to Section 2.13(a) and (b) shall be
adjusted in accordance with such non-Defaulting Lenders’ Applicable Revolving Percentages;
and

     (v) if all or any portion of such Defaulting Lender’s LC Exposure is neither
reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without
prejudice to any rights or remedies of the Issuing Banks or any other Revolving Credit
Lender hereunder, all fees payable under Section 2.13(b) with respect to such Defaulting
Lender’s LC Exposure shall be payable to the applicable Issuing Bank until and to the extent
that such LC Exposure is reallocated and/or cash collateralized; and

     (d) so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be required
to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend or increase
any Letter of Credit, unless it is satisfied that the related exposure and the Defaulting Lender’s
then outstanding LC Exposure will be 100% covered by the Revolving Credit Commitments of the
non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with
Section 2.21(c), and participating interests in any newly made Swingline Loan or any newly issued
or increased Letter of Credit shall be allocated among non-Defaulting Lenders that are Revolving
Credit Lenders in a manner consistent with Section 2.21(c)(i) (and such Defaulting Lender shall not
participate therein).

     If (i) a Bankruptcy Event with respect to a Lender Parent of any Revolving Credit Lender shall
occur following the date hereof and for so long as such event shall continue or (ii) the Swingline
Lenders or the applicable Issuing Bank has a good faith belief that any Revolving Credit Lender has
defaulted in fulfilling its obligations under one or more other agreements in which such Lender
commits to extend credit, the Swingline Lenders shall not be required to fund any Swingline Loan
and such Issuing Bank shall not be required to issue, amend or increase any Letter of Credit,
unless the Swingline Lenders or such Issuing Bank, as the case may be, shall have entered into
arrangements with the Borrower or such Lender, satisfactory to the Swingline Lenders or such
Issuing Bank, as the case may be, to defease any risk to it in respect of such Lender hereunder.

     In the event that the Administrative Agent, the Borrower, the Swingline Lenders and the
Issuing Banks each agrees that a Defaulting Lender has adequately remedied all matters that caused
such Revolving Credit Lender to be a Defaulting Lender, then the Swingline Exposure

59

 

and LC Exposure of the Revolving Credit Lenders shall be readjusted to reflect the inclusion
of such Lender’s Revolving Credit Commitment and on such date such Lender shall purchase at par
such of the Revolving Loans of the other Revolving Credit Lenders as the Administrative Agent shall
determine may be necessary in order for such Lender to hold such Revolving Loans in accordance with
its Applicable Revolving Percentage.

ARTICLE 3

Representations and Warranties

     The Borrower represents and warrants to the Lenders that:

     SECTION 3.01. Organization; Powers. Each of the Borrower and its Restricted Subsidiaries is
duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, and, except in each case where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse Effect, (i) has all
requisite power and authority to carry on its business as now conducted and (ii) 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 to be entered into by each
Loan Party are within such Loan Party’s corporate powers. The Loan Documents have been duly
authorized by the Borrower, and will have been duly authorized by each other Loan Party on or prior
to the Funding Date. The other Transactions will have been duly authorized by each Loan Party on
or prior to the Funding Date. This Agreement has been duly executed and delivered by each Loan
Party party hereto and constitutes, and each other Loan Document when executed and delivered by
each Loan Party party thereto will constitute, a legal, valid and binding obligation of each such
Loan Party, 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 execution and delivery of this
Agreement by each Loan Party party hereto, and performance by each such Loan Party of its
obligations hereunder, in each case from and after the date such Loan Party becomes a party hereto,
(a) do not require any consent or approval of, registration or filing with or any other action by
any Governmental Authority, except for (i) the filing of Uniform Commercial Code financing
statements and filings with the United States Patent and Trademark Office and the United States
Copyright Office, (ii) recordation of the Mortgages and (iii) such as have been obtained or made
and are in full force and effect, (b) will not violate any applicable law, statute, rule or
regulation or the certificate or articles of incorporation, by-laws or other organizational
documents of the Borrower or any of the Restricted Subsidiaries or any order of any Governmental
Authority, (c) will not be in conflict with, violate or result in a default or give rise to any
right to accelerate or to require the prepayment, repurchase or redemption of any obligation under
any indenture, agreement or other instrument binding upon the Borrower or any of the Restricted
Subsidiaries or its property or assets, or give rise to a right thereunder to require any payment
to be made by the Borrower or any of its Restricted Subsidiaries (except pursuant to

60

 

the Fee Letter or the Loan Documents) and (d) will not result in the creation or imposition of
any Lien, other than Liens permitted under Section 6.02, on any property or any asset now owned or
hereafter acquired by the Borrower or any of its Restricted Subsidiaries (other than any Lien
created hereunder or under the Collateral Documents), where any such conflict, violation, breach or
default referred to in clause (b) or (c) of this Section 3.03, would reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

     SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Borrower has
heretofore furnished to the Lenders the Main Shipbuilding Subsidiary’s consolidated balance sheet
and statements of income, stockholders equity and cash flows as of and for the fiscal years ended
December 31, 2008, December 31, 2009 and December 31, 2010, audited by and accompanied by the
opinion of Deloitte & Touche LLP, independent public accountants. Such financial statements
present fairly, in all material respects, the financial position and results of operations and cash
flows of the Main Shipbuilding Subsidiary and its consolidated Subsidiaries as of such dates and
for such periods in accordance with GAAP. Such balance sheets and the notes thereto disclose all
material liabilities, direct or contingent, of the Main Shipbuilding Subsidiary and its
consolidated Subsidiaries as of the dates thereof.

     (b) The Borrower has heretofore delivered to the Lenders its unaudited pro forma consolidated
balance sheet and related pro forma statements of income, stockholder’s equity and cash flows as of
December 31, 2010, prepared giving effect to the Transactions as if they had occurred, with respect
to such balance sheet, on such date and, with respect to such other financial statements, on the
first day of the 12-month period ending on such date. Such pro forma financial statements have been
prepared in good faith by the Borrower, based on the assumptions used to prepare the pro forma
financial information contained in the Confidential Information Memorandum (which assumptions are
believed by the Borrower on the date hereof to be reasonable), accurately reflect all material
adjustments required to be made to give effect to the Transactions and present fairly on a pro
forma basis the estimated consolidated financial position of the Borrower and its consolidated
Subsidiaries as of such date and for such period, assuming that the Transactions had actually
occurred at such date or at the beginning of such period, as the case may be.

     (c) There has not occurred since December 31, 2010, any event, occurrence, change, state of
circumstances or condition which, individually or in the aggregate has had or would reasonably be
expected to have a Material Adverse Effect.

     SECTION 3.05. Properties. (a) From and after the Funding Date, each of the Borrower and the
Restricted Subsidiaries has good title to, or valid leasehold interests in, or easements or other
limited property interests in, or is licensed to use, all its real and personal property material
to its business (including all Mortgaged Properties), except for defects in the foregoing that do
not materially interfere with its ability to conduct its business as currently conducted or to
utilize such properties for their intended purposes and except where the failure to have such title
or other ownership rights would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. From and after the Funding Date, all such material
properties and assets are free and clear of Liens, other than Liens expressly permitted by Section
6.02.

61

 

     (b) Each of the Borrower and the Restricted Subsidiaries has complied with all obligations
under all leases to which it is a party, except where the failure to comply would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, and all such leases
are in full force and effect, except leases in respect of which the failure to be in full force and
effect would not reasonably be expected to have a Material Adverse Effect. Each of the Borrower
and the Restricted Subsidiaries enjoys peaceful and undisturbed possession under all such leases,
other than leases in respect of which the failure to enjoy peaceful and undisturbed possession
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.

     (c) As of the Effective Date, neither the Borrower nor any of the Restricted Subsidiaries has
received any written notice of, nor has any knowledge of, any pending or contemplated condemnation
proceeding for any material portion of the Mortgaged Properties or any sale or disposition thereof
in lieu of condemnation.

     (d) As of the Effective Date, neither the Borrower nor any of the Restricted Subsidiaries is
obligated under any right of first refusal, option or other contractual right to sell, assign or
otherwise dispose of any Mortgaged Property or any interest therein.

     (e) Each of the Borrower and the Restricted Subsidiaries owns, or is licensed or otherwise has
the right to use, or could obtain ownership or possession of, all trademarks, tradenames,
copyrights, patents and other intellectual property material to its business, except for those the
failure to own, possess, license or have the right to use which would not reasonably be expected to
result in a Material Adverse Effect, and the use thereof by the Borrower and the Restricted
Subsidiaries does not, to the knowledge of any Responsible Officer of the Borrower, infringe upon
the rights of any other Person, except for any such infringements that, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse Effect.

     (f) Schedule 3.05(f) lists completely and correctly as of the Effective Date all real property
owned in fee by the Borrower or the Restricted Subsidiaries (and the addresses thereof) that are
material to their business.

     (g) Schedule 3.05(g) lists completely and correctly as of the Effective Date all real property
leased by the Borrower or the Restricted Subsidiaries (and the addresses thereof) that are material
to their business.

     SECTION 3.06. Litigation and Environmental Matters. (a) Except for the Disclosed Matters,
there are no actions, suits or proceedings at law or in equity by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of a Responsible Officer of the
Borrower, threatened against or affecting the Borrower or any of the Restricted Subsidiaries or any
business, property or rights of any such Person (i) as to which there is a reasonable likelihood of
an adverse determination and that, if adversely determined, would reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect or (ii) that challenge the
enforceability of any Loan Document.

     (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, would not reasonably be expected to result in a Material

62

 

Adverse Effect, neither the Borrower nor any of the Restricted Subsidiaries (i) has failed, or
is failing, to comply with any Environmental Law or to obtain, maintain or comply with any permit,
license or other approval required under any Environmental Law, (ii) has become subject to any
Environmental Liability, (iii) has received notice of any claim with respect to any Environmental
Liability or (iv) knows of any basis for any Environmental Liability.

     (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

     SECTION 3.07. Compliance with Laws and Agreements. (a) Each of the Borrower and the
Restricted Subsidiaries is in compliance with all laws, regulations and orders of any Governmental
Authority applicable to it or its property and all indentures or other agreements or instruments
evidencing Indebtedness, or any other material agreement or instrument to which it is a party or by
which it or any of its properties or assets are or may be bound, except where the failure to do so,
individually or in the aggregate, would not reasonably be expected to result in a Material Adverse
Effect. No Default has occurred and is continuing.

     (b) None of the Borrower or any of the Restricted Subsidiaries is in default under any
agreement or instrument or in violation of any corporate restriction that, in each case, has
resulted or would reasonably be expected to result in a Material Adverse Effect.

     (c) Neither the Borrower or any of the Restricted Subsidiaries or any of their respective
material properties or assets is in violation of, nor will the continued operation of their
material properties and assets as currently conducted violate, any law, rule or regulation
(including any zoning, building, ordinance, code or approval or any building permits) or any
restrictions of record or agreements affecting the Mortgaged Property, or is in default with
respect to any judgment, writ, injunction, decree or order of any Governmental Authority, where
such violation or default would reasonably be expected to result in a Material Adverse Effect.

     (d) Certificates of occupancy and permits are in effect for each Mortgaged Property as
currently constructed, and true and complete copies of such certificates of occupancy have been
delivered to the Collateral Agent as mortgagee with respect to each Mortgaged Property.

     SECTION 3.08. Investment Company Status. Neither the Borrower nor any of the Restricted
Subsidiaries is required to be registered as an “investment company” under the Investment Company
Act of 1940.

     SECTION 3.09. Taxes. Each of the Borrower and the Restricted Subsidiaries has timely filed
or caused to be filed all Tax returns and reports required to have been filed, subject to any
applicable extensions without penalty, 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 Restricted Subsidiary, as applicable, has set aside on its books
adequate reserves or (b) to the extent that the failure to do so would not reasonably be expected
to result in a Material Adverse Effect.

63

 

     SECTION 3.10. ERISA. Except as would not reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect, each of the Borrower and its ERISA Affiliates is
in compliance with the applicable provisions of ERISA and the Code and the regulations and
published interpretations thereunder. 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, would reasonably be expected to result in a Material Adverse Effect.

     SECTION 3.11. Disclosure. Neither the Confidential Information Memorandum nor any of the
other reports, financial statements, certificates or other written information furnished by or on
behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation
of any Loan Document or delivered pursuant thereto (as modified or supplemented by other
information so furnished, and taken as a whole) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to any
projected financial information, the Borrower represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.

     SECTION 3.12. Use of Proceeds. The Borrower will use (i) the proceeds of Term Loans solely
to finance a portion of the Contribution and related Transactions and for other general corporate
purposes, and (ii) the proceeds of the Revolving Loans and Swingline Loans and the Letters of
Credit solely for working capital needs and other general corporate purposes.

     SECTION 3.13. Margin Regulations. None of the Borrower nor any of the Restricted
Subsidiaries is engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock. Neither the proceeds of any
Loan nor any Letter of Credit will be used, whether directly or indirectly, and whether
immediately, incidentally or ultimately, for any purpose that entails a violation of, or that is
inconsistent with the provisions of the regulations of the Board, including Regulation U or
Regulation X.

     SECTION 3.14. Subsidiaries. Schedule 3.14 sets forth as of the Effective Date a list of all
Restricted Subsidiaries of the Borrower and the two entities that are to be designated as
Unrestricted Subsidiaries on or prior to the Funding Date, and the percentage ownership interest of
the Borrower therein (it being understood and agreed that prior to the Spin-off, the Northrop
Grumman Retained Subsidiaries shall be deemed not to be Subsidiaries or Restricted Subsidiaries of
the Borrower). As of the Funding Date, the shares of capital stock or other ownership interests in
Restricted Subsidiaries so indicated on Schedule 3.14 are, or will be, fully paid and
non-assessable and are, or will be, owned by the Borrower, directly or indirectly, free and clear
of all Liens (other than Liens created under the Collateral Documents, and statutory or other
non-consensual Liens permitted under Section 6.02).

     SECTION 3.15. Collateral Documents. From and after the Funding Date (and subject, if
applicable, to Section 5.14), all filings and other actions necessary to perfect and protect the
Liens in the Collateral created under, and in the manner and to the extent contemplated by, the
Collateral Documents will have been duly made or taken or otherwise provided for in the manner
reasonably requested by the Administrative Agent and will be in full force and effect, and the

64

 

Collateral Documents will, upon execution and delivery thereof, create in favor of the
Collateral Agent for the benefit of the Secured Parties a valid and, together with such filings and
other actions, perfected first priority Lien in the Collateral (to the extent contemplated by the
Collateral Documents), securing the payment of the Secured Obligations, subject to Liens permitted
by Section 6.02.

     SECTION 3.16. Labor Matters. As of the Effective Date, there are no strikes, lockouts or
slowdowns against the Borrower or any Restricted Subsidiary pending or, to the knowledge of a
Responsible Officer of the Borrower, threatened that, individually or in the aggregate, would
reasonably be expected to have a Material Adverse Effect. The hours worked by and payments made to
employees of the Borrower and the Restricted Subsidiaries have not been in violation of the Fair
Labor Standards Act or any other applicable Federal, state, local or foreign law dealing with such
matters that, individually or in the aggregate, would reasonably be expected to have a Material
Adverse Effect. All material payments due from the Borrower or any Restricted Subsidiary, or for
which any claim may be made against the Borrower or any Restricted Subsidiary, on account of wages
and employee health and welfare insurance and other benefits, have been paid or accrued as a
liability on the books of the Borrower or such Restricted Subsidiary. The consummation of the
Transactions will not give rise to any right of termination or right of renegotiation on the part
of any union under any collective bargaining agreement to which the Borrower or any Restricted
Subsidiary is bound.

     SECTION 3.17. Solvency. Immediately after giving effect to the consummation of the
Transactions (including the Spin-off), (a) the fair value of the assets of the Borrower and the
Restricted Subsidiaries on a consolidated basis, at a fair valuation, will exceed the debts and
liabilities, subordinated, contingent or otherwise of the Borrower and the Restricted Subsidiaries
on a consolidated basis; (b) the present fair saleable value of the property of the Borrower and
the Restricted Subsidiaries on a consolidated basis will be greater than the amount that will be
required to pay the probable liability of the debts and other liabilities, subordinated, contingent
or otherwise of the Borrower and the Restricted Subsidiaries on a consolidated basis, as such debts
and other liabilities become absolute and matured; (c) the Borrower and the Restricted Subsidiaries
on a consolidated basis will be able to pay the debts and liabilities, subordinated, contingent or
otherwise of the Borrower and the Restricted Subsidiaries on a consolidated basis, as such debts
and liabilities become absolute and matured; and (d) the Borrower and the Restricted Subsidiaries
on a consolidated basis will not have unreasonably small capital with which to conduct the
businesses in which they are engaged as such businesses are now conducted and are proposed to be
conducted following the Funding Date.

     SECTION 3.18. Transaction Documents. As of the Effective Date, the Borrower has delivered to
the Administrative Agent a complete and correct copy of the Transaction Documents that are in
effect as of such date (including all schedules, exhibits, amendments, supplements and
modifications thereto). Neither the Borrower nor any Loan Party or, to the knowledge of the
Borrower or each Loan Party, any other Person party thereto is in default in the performance or
compliance with any material provisions thereof.

     SECTION 3.19. Insurance. The Borrower and the Restricted Subsidiaries have insurance in such
amounts and covering such risks and liabilities as are in accordance with normal industry practice.

65

 

     SECTION 3.20. OFAC. Neither the Borrower nor any Restricted Subsidiary (i) is a person whose
property or interest in property is blocked or subject to blocking pursuant to Section 1 of
Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii)
engages in any dealings or transactions prohibited by section 2 of such executive order, or is
otherwise associated with any such person in any manner violative of such section 2, or (iii) is a
person on the list of “Specially Designated Nationals” and “Blocked Persons” or subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets
Control regulation or executive order.

     SECTION 3.21. Patriot Act. The Borrower and each Restricted Subsidiary is in compliance, in
all material respects, with (i) the Trading with the Enemy Act, as amended, and each of the foreign
assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V,
as amended) and any other enabling legislation or executive order relating thereto, and (ii) the
Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct
Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Loans will be used, directly
or indirectly, for any payments to any governmental official or employee, political party, official
of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

ARTICLE 4

Conditions

     SECTION 4.01. Effective Date. This Agreement shall become effective as of the date hereof
upon the satisfaction of the conditions precedent set forth in this Section 4.01 (the date upon
which all such conditions precedent under this Section 4.01 shall be satisfied referred to as the
Effective Date):

     (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 a favorable written opinion (addressed to the
Administrative Agent, the Issuing Banks and the Lenders and dated the Effective Date) of Gibson
Dunn & Crutcher LLP, counsel for the Borrower, and covering such other matters relating to the
Borrower or the Loan Documents as the Administrative Agent shall reasonably request. The Borrower
hereby requests such counsel to deliver such opinion.

     (c) The Administrative Agent shall have received (i) a copy of the certificate or articles of
incorporation, including all amendments thereto, of the Borrower, certified as of a recent date by
the Secretary of State of the state of its organization, and a certificate as to the good standing
of the Borrower as of a recent date, from such Secretary of State; (ii) a certificate of the

66

 

Secretary or Assistant Secretary of the Borrower dated the Effective Date and certifying (A)
that attached thereto is a true and complete copy of the by-laws of the Borrower as in effect on
the Effective Date and at all times since a date prior to the date of the resolutions described in
clause (B) below, (B) that attached thereto is a true and complete copy of resolutions duly adopted
by the Board of Directors of the Borrower authorizing the execution, delivery and performance of
the Loan Documents to which the Borrower is a party and the borrowings hereunder, and that such
resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that
the certificate or articles of incorporation of the Borrower have not been amended since the date
of the last amendment thereto shown on the certificate of good standing furnished pursuant to
clause (i) above, and (D) as to the incumbency and specimen signature of each officer executing any
Loan Document or any other document delivered in connection herewith on behalf of the Borrower;
(iii) a certificate of another officer as to the incumbency and specimen signature of the Secretary
or Assistant Secretary executing the certificate pursuant to clause (ii) above; and (iv) such other
documents as the Lenders, the Issuing Banks or the Administrative Agent may reasonably request.

     (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 Borrower, confirming
compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.03.

     (e) The Lenders shall have received (i) the financial statements referred to in Sections
3.04(a) and 3.04(b) and (ii) forecasts of consolidated balance sheets, income statements and cash
flow statements of the Borrower and its Subsidiaries on an annual basis for 2010 through 2015.

     (f) The Administrative Agent shall have received, at least 5 days prior to the Effective Date,
all documentation and other information required by regulatory authorities under applicable “know
your customer” and anti-money laundering rules and regulations, including the PATRIOT Act, that
have been requested by the Administrative Agent and the Lenders no later than 10 days prior to the
Effective Date.

     (g) The Borrower shall have received (i) a corporate credit rating from Moody’s, a corporate
family rating from S&P and an issuer default rating from Fitch, and (ii) a rating of the Senior
Credit Facilities by Moody’s, S&P and Fitch.

     (h) The Collateral Agent shall have received a Perfection Certificate with respect to the
Borrower and each Wholly Owned Domestic Restricted Subsidiary dated the Effective Date and duly
executed by a Responsible Officer of the Borrower, and shall have received the results of a search
of the Uniform Commercial Code filings (or equivalent filings) made with respect to the Borrower
and each Wholly Owned Domestic Restricted Subsidiary in the states (or other jurisdictions) of
formation of such Persons, in which the chief executive office of each such Person is located and
in the other jurisdictions in which such Persons maintain property, in each case as indicated on
such Perfection Certificate, together with copies of the financing statements (or similar
documents) disclosed by such search, and accompanied by evidence satisfactory to the Collateral
Agent that the Liens indicated in any such financing statement (or similar document) would be
permitted under Section 6.02 or have been or will be contemporaneously released or terminated.

67

 

     (i) All material governmental and third party approvals necessary in connection with the
Senior Credit Facilities and the Loan Documents shall have been obtained and be in full force and
effect.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date.

     SECTION 4.02. Funding Date. The obligations of the Lenders to make Loans and of the Issuing
Bank to issue Letters of Credit hereunder shall not become effective unless each of the following
conditions is satisfied (or waived pursuant to Section 9.02) on or prior to June 30, 2011 (the date
upon which all such conditions precedent under this Section 4.02 shall be satisfied or waived
referred to as the Funding Date, and, in the event such conditions are not so satisfied or waived
by June 30, 2011, the Commitments shall terminate on such date):

     (a) The Effective Date shall have occurred.

     (b) The Administrative Agent shall have received a favorable written opinion (addressed to the
Administrative Agent, the Issuing Banks and the Lenders and dated the Funding Date) of Gibson Dunn
& Crutcher LLP, counsel for the Borrower, Brownstein Hyatt Farber Schreck, LLP, Nevada counsel for
the Borrower and George M. Simmerman, Vice President and Sector Counsel of Northrop Grumman
Shipbuilding, Inc., and covering such other matters relating to the Loan Parties, the Collateral
Documents or the Transactions as the Administrative Agent shall reasonably request. The Borrower
hereby requests such counsel to deliver such opinion.

     (c) The Administrative Agent shall have received (i) a copy of the certificate or articles of
incorporation, including all amendments thereto, of each Guarantor, certified as of a recent date
by the Secretary of State of the state of its organization, and a certificate as to the good
standing of such Guarantor as of a recent date, from such Secretary of State; (ii) a certificate of
the Secretary or Assistant Secretary of each Guarantor dated the Funding Date and certifying (A)
that attached thereto is a true and complete copy of the by-laws of such Guarantor as in effect on
the Funding Date and at all times since a date prior to the date of the resolutions described in
clause (B) below, (B) that attached thereto is a true and complete copy of resolutions duly adopted
by the Board of Directors of such Guarantor authorizing the execution, delivery and performance of
the Loan Documents to which such Person is a party, and that such resolutions have not been
modified, rescinded or amended and are in full force and effect, (C) that the certificate or
articles of incorporation of such Guarantor have not been amended since the date of the last
amendment thereto shown on the certificate of good standing furnished pursuant to clause (i) above,
and (D) as to the incumbency and specimen signature of each officer executing any Loan Document or
any other document delivered in connection herewith on behalf of such Guarantor; (iii) a
certificate of another officer as to the incumbency and specimen signature of the Secretary or
Assistant Secretary executing the certificate pursuant to clause (ii) above; and (iv) such other
documents as the Lenders, the Issuing Banks or the Administrative Agent may reasonably request

     (d) The Collateral Documents shall have been duly executed by each Loan Party that is to be a
party thereto and shall be in full force and effect on the Funding Date. The Collateral Agent shall
be reasonably satisfied that all actions necessary to establish that the Collateral

68

 

Agent will have a security interest on behalf of the Secured Parties in the Collateral of the
type and priority described in each Collateral Document shall have been taken. Nothing contained
in the foregoing sentence shall be construed to require the satisfaction of the post-Funding Date
obligations set forth in Section 5.14 prior to the Funding Date.

     (e) The Administrative Agent shall have received a copy of, or a certificate as to coverage
under, the insurance policies required by Section 5.05 and the applicable provisions of the
Collateral Documents, each of which shall be endorsed or otherwise amended to include a customary
lender’s loss payable endorsement and to name the Collateral Agent as additional insured, in form
and substance satisfactory to the Administrative Agent. In addition, the Administrative Agent
shall have received a schedule setting forth a true, complete and correct description of all
material insurance maintained by or on behalf of the Borrower or the Restricted Subsidiaries as of
the Funding Date. As of such date, such insurance shall be in full force and effect and all
premiums shall have been duly paid.

     (f) The Collateral Agent shall have received a Perfection Certificate with respect to the Loan
Parties dated the Funding Date and duly executed by a Responsible Officer of the Borrower.

     (g) The Administrative Agent shall have received a certificate from the chief financial
officer of the Borrower certifying that the Borrower and the Restricted Subsidiaries, on a
consolidated basis after giving effect to the Transactions and the other transactions contemplated
hereby, are solvent within the meaning of the term “solvency” as set forth in Section 3.17.

     (h) The final terms and conditions of each aspect of the Transactions, including without
limitation, all tax aspects thereof, shall be consistent in all material respects with the terms
set forth in the Distribution Agreement and the information set forth in the Form 10. The Lead
Arrangers shall be reasonably satisfied with the terms and conditions of the Distribution Agreement
and the other Transaction Documents, it being understood and agreed that the Lead Arrangers are
reasonably satisfied with the terms and conditions set forth in the forms of the Transaction
Documents delivered to the Lead Arrangers prior to the Effective Date. Since the Effective Date,
the Transaction Documents shall not have been altered, amended or otherwise changed or supplemented
or any condition therein waived, in each case in a manner that is materially adverse to the
interests of the Lenders, without the prior written consent of the Lead Arrangers. The
Pre-Contribution Internal Reorganization shall have been consummated. The Lead Arrangers shall be
reasonably satisfied that (x) the Contribution will be consummated substantially contemporaneously
with the initial funding of the Senior Credit Facilities pursuant to this Section 4.02 and (y) all
regulatory approvals necessary to consummate the Spin-off (after the Funding Date) shall have been
(or substantially contemporaneously with the initial funding of the Senior Credit Facilities
hereunder shall be) obtained and all other conditions necessary to consummate the Spin-off after
the Funding Date (other than those which, pursuant to the Transaction Documents, are to be
satisfied after the initial funding of the Senior Credit Facilities hereunder) shall have been (or
substantially contemporaneously with the initial funding of the Senior Credit Facilities hereunder
shall be) satisfied, in each case in accordance with the applicable Transaction Documents and
applicable law. The proceeds of the issuance of the Senior Notes shall have been (or substantially
contemporaneously with the initial funding of the Senior Credit Facilities hereunder shall be)
released to the Borrower from the Senior Notes

69

 

Escrow in an aggregate principal amount that together with the aggregate principal amount of
the Term Loans funded pursuant to this Section 4.02 shall be up to $1,775,000,000.

     (i) On the Funding Date, after giving effect to the Transactions, neither the Borrower nor any
of its Restricted Subsidiaries shall have any material Indebtedness for borrowed money, other than
(i) the Senior Credit Facilities, (ii) the Senior Notes, (iii) up to $83,700,000 of indebtedness
under a loan agreement with the Mississippi Business Finance Corporation (“MBFC”) in connection
with MBFC’s issuance of 7.81% Economic Development Revenue Bonds (Ingalls Shipbuilding, Inc.
Project) Taxable Series 1999A due 2024 and (iv) up to $22,000,000 of indebtedness under a loan
agreement with the MBFC in connection with the MBFC’s issuance of 4.55% Gulf Opportunity Zone
Industrial Revenue Bonds (Northrop Grumman Ship Systems, Inc. Project) Series 2006 due 2028 (the
“GO Zone Bonds”).

     (j) There shall not have occurred since December 31, 2010 any event, occurrence, change, state
of circumstances or condition which, individually or in the aggregate has had or would reasonably
be expected to have a Material Adverse Effect.

     (k) The Lenders, the Administrative Agent and the Lead Arrangers shall have received all fees
and other amounts due and payable on or prior to the Funding 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.

     (l) The Administrative Agent shall have received a certificate, dated the Funding Date and
signed by the President, a Vice President or a Financial Officer of the Borrower, confirming
compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.03.

     SECTION 4.03. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, and of each Issuing Bank to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

     (a) The representations and warranties made by or on behalf of the Borrower and the Restricted
Subsidiaries set forth in this Agreement and in the Collateral Documents shall be true and correct
in all material respects on and as of the date of such Borrowing or the date of issuance,
amendment, renewal or extension of such Letter of Credit, as applicable (except to the extent that
such representations and warranties specifically refer to an earlier date, in which case they shall
be true and correct in all material respects as of such earlier date).

     (b) At the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of
Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (a) and (b) of this Section.

70

 

ARTICLE 5

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 and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower
covenants and agrees with the Lenders that the Borrower will, and will (from and after the Funding
Date in the case of Sections 5.05(a) and (c), 5.08, 5.11 and 5.14) cause each of the Restricted
Subsidiaries to:

     SECTION 5.01. Financial Statements; Ratings Change and Other Information. In the case of the
Borrower, furnish to the Administrative Agent for distribution to each Lender:

     (a) within 90 days after the end of each fiscal year of the Borrower, its audited consolidated
balance sheet and related statements of operations, stockholders’ equity and cash flows as of the
end of and for such year, setting forth in each case in comparative form the figures for the
previous fiscal year, all reported on by Deloitte & Touche LLP or other independent public
accountants of recognized national standing (without a “going concern” or like qualification or
exception and without any qualification or exception as to the scope of such audit) to the effect
that such consolidated financial statements present fairly in all material respects the financial
condition and results of operations of the Borrower and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied, together with a customary
“management discussion and analysis” provision;

     (b) within 45 days after the end of each of the first three fiscal quarters of each fiscal
year of the Borrower, its consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for
the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all
material respects the financial condition and results of operations of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of footnotes, together with a
customary “management discussion and analysis” provision;

     (c) concurrently with any delivery of financial statements under clause (a) or (b) above, a
duly completed Compliance Certificate signed by a Financial Officer of the Borrower (i) certifying
that no Default or Event of Default has occurred or, if such a Default or Event of Default has
occurred, specifying the nature and extent thereof and any action taken or proposed to be taken
with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance
with Sections 6.10, 6.11 and 6.12 and (iii) stating whether any change in GAAP or in the
application thereof has occurred since the date of the audited financial statements referred to in
Section 3.04 and, if any such change has occurred, specifying the effect of such change on the
financial statements accompanying such certificate;

     (d) concurrently with any delivery of financial statements under clause (a) above, a
certificate of the accounting firm that reported on such financial statements stating whether they

71

 

obtained knowledge during the course of their examination of such financial statements of any
Default or Event of Default under Section 6.11 or 6.12 (which certificate may be limited to the
extent required by accounting rules or guidelines);

     (e) within 90 days after the beginning of each fiscal year of the Borrower, a detailed
consolidated budget for such fiscal year (including a projected consolidated balance sheet and
related statements of projected operations and cash flows as of the end of and for such fiscal year
and setting forth the assumptions used for purposes of preparing such budget) and, promptly when
available, any significant revisions of such budget.

     (f) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by the Borrower or any Restricted Subsidiary
with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all
of the functions of said Commission, or with any national securities exchange, or distributed by
the Borrower to its shareholders generally, as the case may be;

     (g) promptly after Moody’s, S&P or Fitch shall have announced a change in the rating
established or deemed to have been established for the Borrower or the Senior Credit Facilities,
written notice of such rating change;

     (h) promptly after the receipt thereof by the Borrower or any Restricted Subsidiary, a copy of
any “management letter” received by any such Person from its certified public accountants and the
management’s response thereto;

     (i) promptly after the request by any Lender, all documentation and other information that
such Lender reasonably requests in order to comply with its ongoing obligations under applicable
“know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT
Act;

     (j) promptly following any request therefor, subject to compliance with applicable law and any
restrictions imposed by a Governmental Authority, such other information regarding the operations,
business affairs and financial condition of the Borrower or any Restricted Subsidiary, or
compliance with the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request (for itself or on behalf of any Lender); and.

     (k) if there are any Unrestricted Subsidiaries as of the last day of any fiscal quarter,
simultaneously with the delivery of each set of consolidated financial statements referred to in
Sections 5.01(a) or 5.01(b) above, the related consolidating financial statements reflecting the
adjustments necessary to eliminate the accounts of any Unrestricted Subsidiaries that constitute
Significant Subsidiaries from such consolidated financial statements.

     Information required to be delivered pursuant to paragraphs (a), (b) or (f) of this Section
shall be deemed to have been delivered if such information, or one or more annual or quarterly
reports containing such information, shall have been delivered to the Administrative Agent in a
format which is suitable for posting by the Administrative Agent on an IntraLinks or similar site
to which the Lenders have been granted access or shall be available on the website of the
Securities and Exchange Commission at http://www.sec.gov (and the Borrower shall endeavor to

72

 

deliver or cause to be delivered to the Administrative Agent a confirming electronic
correspondence providing notice of such availability, provided that the failure to deliver such
confirming electronic correspondence shall not constitute a default hereunder); provided that the
Borrower shall deliver paper copies of such information to any Lender that requests such delivery.
Information required to be delivered pursuant to this Section may also be delivered by electronic
communications pursuant to procedures approved by the Administrative Agent.

     SECTION 5.02. Notices of Material Events. Furnish to the Administrative Agent (for
distribution to each Lender) promptly, upon a Responsible Officer of the Borrower obtaining actual
knowledge thereof, written notice of the following:

     (a) the occurrence of any Default;

     (b) the filing or commencement of, or any written threat or written notice of intention of any
Person to file or commence, any action, suit or proceeding whether at law or in equity by or before
any arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate thereof
that would reasonably be expected to result in a Material Adverse Effect;

     (c) the occurrence or reasonably expected occurrence of any ERISA Event that, alone or
together with any other ERISA Events that have occurred, would reasonably be expected to result in
liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $25,000,000; and

     (d) any other development that has resulted in, or would reasonably be expected to result in,
a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

     SECTION 5.03. Existence; Conduct of Business. 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, except as would not,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect;
provided that the foregoing shall not prohibit the Transactions or any merger, consolidation,
liquidation or dissolution permitted under Section 6.05.

     SECTION 5.04. Payment of Obligations. Pay and discharge all material Taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits, or upon any property
belonging to it, prior to the date on which penalties attach thereto, and all lawful material
claims which, if unpaid, might become a Lien upon the property of the Borrower or such Restricted
Subsidiary; provided that neither the Borrower nor any such Restricted Subsidiary shall be required
to pay any such Tax, assessment, charge, levy or claims (i) the payment of which is being contested
in good faith and by proper proceedings, (ii) not yet delinquent or (iii) the non-payment of which,
if taken in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

73

 

     SECTION 5.05. Maintenance of Properties; Insurance.

     (a) Keep and maintain all property material to the conduct of its business in good working
order and condition, ordinary wear and tear excepted and except where failure to do so would not
reasonably be expected to result in a Material Adverse Effect.

     (b) Maintain, with financially sound and reputable insurance companies, insurance in such
amounts and against such risks as are customarily maintained by companies engaged in the same or
similar businesses operating in the same or similar locations.

     (c) Cause all such policies covering any Collateral to be endorsed or otherwise amended to
include a customary lender’s loss payable endorsement, in form and substance satisfactory to the
Administrative Agent and the Collateral Agent, which endorsement shall provide that, from and after
the Funding Date, if the insurance carrier shall have received written notice from the
Administrative Agent or the Collateral Agent of the occurrence of an Event of Default, the
insurance carrier shall pay all proceeds otherwise payable to the Borrower or the Loan Parties
under such policies directly to the Collateral Agent; cause all such policies to provide that
neither the Borrower, the Administrative Agent, the Collateral Agent nor any other party shall be a
coinsurer thereunder and to contain a “Replacement Cost Endorsement”, without any deduction for
depreciation, and such other provisions as the Administrative Agent or the Collateral Agent may
reasonably require from time to time to protect their interests; deliver original or certified
copies of all such policies to the Collateral Agent; cause each such policy to provide that it
shall not be canceled, modified or not renewed (i) by reason of nonpayment of premium upon not less
than 10 days’ prior written notice thereof by the insurer to the Administrative Agent and the
Collateral Agent (giving the Administrative Agent and the Collateral Agent the right to cure
defaults in the payment of premiums) or (ii) for any other reason upon not less than 30 days’ prior
written notice thereof by the insurer to the Administrative Agent and the Collateral Agent; deliver
to the Administrative Agent and the Collateral Agent, prior to the cancellation, modification or
nonrenewal of any such policy of insurance, a copy of a renewal or replacement policy (or other
evidence of renewal of a policy previously delivered to the Administrative Agent and the Collateral
Agent) together with evidence satisfactory to the Administrative Agent and the Collateral Agent of
payment of the premium therefor.

     (d) If at any time the area in which the Property (as specifically defined in a Mortgage) is
located is designated (i) a “flood hazard area” in any Flood Insurance Rate Map published by the
Federal Emergency Management Agency (or any successor agency), and if available in the community in
which the Property is located, obtain flood insurance in such total amount as the Administrative
Agent, the Collateral Agent or the Required Lenders may from time to time require, and otherwise
comply with the National Flood Insurance Program as set forth in the Flood Disaster Protection Act
of 1973, as it may be amended from time to time, or (ii) a “Zone 1” area, obtain earthquake
insurance in such total amount as the Administrative Agent, the Collateral Agent or the Required
Lenders may from time to time require.

     (e) With respect to any Mortgaged Property, carry and maintain comprehensive general liability
insurance including the “broad form CGL endorsement” and coverage on an occurrence basis against
claims made for personal injury (including bodily injury, death and

74

 

property damage) and umbrella liability insurance against any and all claims, in no event for
a combined single limit of less than that which is customary for companies in the same or similar
businesses operating in the same or similar locations, naming the Collateral Agent as an additional
insured, on forms satisfactory to the Collateral Agent.

     (f) Notify the Administrative Agent and the Collateral Agent promptly whenever any separate
insurance concurrent in form or contributing in the event of loss with that required to be
maintained under this Section 5.05 is taken out by any Loan Party; and promptly deliver to the
Administrative Agent and the Collateral Agent a duplicate original copy of such policy or policies.

     SECTION 5.06. Books and Records; Inspection Rights; Maintenance of Ratings. (a) Keep proper
books of record and account in accordance with GAAP.

     (b) Permit any representatives designated by the Administrative Agent (or, if any Event of
Default has occurred and is continuing, any Lender), upon reasonable prior notice and subject to
reasonable requirements of confidentiality, including the requirements imposed by any Governmental
Authority or by contract, to visit and inspect its properties, to examine and make extracts from
its books and records, and to discuss its affairs, finances and condition with its officers and
independent accountants, all at such reasonable times during normal business hours and as often as
reasonably requested, provided that the exercise of rights under this Section shall not
unreasonably interfere with the business of the Borrower and its Subsidiaries and the
Administrative Agent and the Lenders shall give the Borrower a reasonable opportunity to
participate in any discussions with the Borrower’s accountants.

     (c) Use commercially reasonable efforts to (i) cause the Senior Credit Facilities to be
continuously rated by S&P and Moody’s and, at the Borrower’s election, Fitch, and (ii) maintain a
corporate rating from S&P, a corporate family rating from Moody’s, and, at the Borrower’s election,
an issuer default rating from Fitch, in each case in respect of the Borrower.

     SECTION 5.07. Compliance with Laws. Comply with all laws, rules, regulations and orders of
any Governmental Authority applicable to it or its property, except where the failure to do so,
individually or in the aggregate, would not reasonably be expected to result in a Material Adverse
Effect.

     SECTION 5.08. Use of Proceeds and Letters of Credit. Use the proceeds of the Loans and the
issuance of Letters of Credit solely for the purposes described in Section 3.12.

     SECTION 5.09. Employee Benefits. Comply with the applicable provisions of ERISA and the
Code, except where the failure to do so, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect.

     SECTION 5.10. Compliance with Environmental Laws. Comply, and cause all lessees and other
Persons occupying its properties to comply, in all material respects with all Environmental Laws
applicable to its operations and properties; obtain and renew all material environmental permits
necessary for its operations and properties; and conduct any remedial action required by
Environmental Laws or by a Governmental Authority; provided, however, that

75

 

none of the Borrower or any Restricted Subsidiary shall be required to undertake any remedial
action or incur any compliance cost required by Environmental Laws or by a Governmental Authority
to the extent that its obligation to do so is being contested in good faith and by proper
proceedings and, if applicable, appropriate reserves are being maintained with respect to such
circumstances in accordance with GAAP.

     SECTION 5.11. Further Assurances. Execute any and all further documents, financing
statements, agreements and instruments, and take all further action (including filing Uniform
Commercial Code and other financing statements, mortgages and deeds of trust) that may be required
under applicable law, or that the Required Lenders, the Administrative Agent or the Collateral
Agent may reasonably request, in order to effectuate the transactions contemplated by the Loan
Documents and in order to grant, preserve, protect and perfect the validity and priority of the
security interests created or intended to be created by the Collateral Documents. The Borrower
will cause any subsequently acquired or organized Wholly Owned Subsidiary that is a Domestic
Restricted Subsidiary to become a Loan Party by executing the Guarantee and Security Agreement and
each applicable Collateral Document in favor of the Collateral Agent. In addition, from time to
time (other than during a Collateral Suspension Period), the Borrower will, at its cost and
expense, promptly secure the Secured Obligations by pledging or creating, or causing to be pledged
or created, perfected security interests with respect to such of its assets and properties as the
Administrative Agent or the Required Lenders shall designate (it being understood that it is the
intent of the parties that the Secured Obligations shall be secured (other than during a Collateral
Suspension Period) by substantially all the assets of the Borrower and its Restricted Subsidiaries
(but, as to real property, shall be secured only by Material Real Property owned as of, or acquired
subsequent to, the Effective Date)). Such security interests and Liens will be created under the
Collateral Documents and other security agreements, mortgages, deeds of trust and other instruments
and documents in form and substance satisfactory to the Collateral Agent, and the Borrower shall
deliver or cause to be delivered to the Lenders all such instruments and documents (consistent with
the items required under Section 5.14) as the Collateral Agent shall reasonably request to evidence
compliance with this Section. The Borrower agrees to provide such evidence as the Collateral Agent
shall reasonably request as to the perfection and priority status of each such security interest
and Lien. In furtherance of the foregoing, the Borrower will give prompt notice to the
Administrative Agent of the acquisition by it or any of the Subsidiaries of any Material Real
Property.

     SECTION 5.12. Designation of Subsidiaries. In the case of the Borrower, at any time and from
time to time in its sole discretion, designate any Restricted Subsidiary as an Unrestricted
Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (a) immediately
before and after such designation, no Default or Event of Default shall have occurred and be
continuing, (b) immediately after giving effect to such designation, the Borrower shall be in
compliance, on a pro forma basis, with the covenants set forth in Sections 6.11 and 6.12 (and, as a
condition precedent to the effectiveness of any such designation, the Borrower shall deliver to the
Administrative Agent a certificate setting forth in reasonable detail the calculations
demonstrating such compliance), (c) no Subsidiary that owns any Equity Interests of any Restricted
Subsidiary, shall be an Unrestricted Subsidiary, (d) (i) the designation of any Subsidiary as an
Unrestricted Subsidiary shall constitute an Investment by the Borrower or the applicable Restricted
Subsidiary therein at the date of designation in an amount equal to

76

 

the net book value (or, in the case of any guarantee or similar Investment, the fair market
value thereof) of such Investments of the Borrower or such Restricted Subsidiary and (ii) no such
designation shall be effective if, immediately after such designation, the sum of (x) the amount of
all such Investments and (y) the amount of all Investments in majority-owned joint ventures, in
each case net of cash returned to the Borrower or a Restricted Subsidiary in respect of such
Investments, exceeds $150,000,000 in the aggregate, (e) no Subsidiary may be designated as an
Unrestricted Subsidiary if it is a “Restricted Subsidiary” for the purpose of the Senior Notes, any
other Permitted Senior Indebtedness or any Permitted Subordinated Indebtedness (unless it is
concurrently designated as an Unrestricted Subsidiary for the purpose of such other Indebtedness)
and (f) there shall be no Unrestricted Subsidiary (other than Titan II and Ascension) on the
Effective Date or the Funding Date. If any Person becomes a Restricted Subsidiary on any date
after the Funding Date (including by redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary), the Indebtedness of such Person outstanding on such date will be deemed to have been
incurred by such Person on such date for purposes of Section 6.01, but will not be considered the
sale or issuance of Equity Interests for purposes of Section 6.05. Titan II and Ascension will be
deemed designated an Unrestricted Subsidiary immediately upon its becoming a Subsidiary of the
Borrower, provided that the conditions in clauses (a) through (e) above are satisfied at such time.

     SECTION 5.13. Maintenance of Separate Existence. So long as Titan II shall exist, do all
things necessary to cause Titan II to maintain a separate existence from the Borrower and each
other Restricted Subsidiary, including, without limitation, causing Titan II to (i) maintain proper
corporate records and books of account separate from those of the Borrower and each other
Restricted Subsidiary; (ii) hold appropriate meetings of its board of directors, keep minutes of
such meetings and of meetings of its members and observe all other necessary organizational
formalities (and any successor shall observe similar procedures in accordance with its governing
documents and applicable law); (iii) at all times hold itself out to the public under its own name
as a legal entity separate and distinct from the Borrower and each other Restricted Subsidiary; and
(iv) refrain from (A) having any assets other than as contemplated by the Transaction Documents,
(B) guaranteeing, becoming obligated for or holding itself or its credit out to be responsible for
or available to satisfy, the debts or obligations of any other Person, or otherwise having any
liabilities except for the guarantees and related liabilities pursuant to the Titan II Guarantees
or liabilities for which Titan II is indemnified under the Transaction Documents, (C) acting with
the intent to hinder, delay or defraud any of its creditors in violation of applicable law, (D)
acquiring any securities or debt instruments of its Affiliates or any other Person, and (E) making
loans or advances, or transferring its assets, to any Person, except (in the case of clauses (A),
(B) and (E) above) for liabilities permitted under Section 6.08(b) and de minimis assets,
liabilities, advances, loans and transfers related to the maintenance of Titan II’s existence or to
the conduct of the activities of Titan II permitted under Section 6.08(b).

     SECTION 5.14. Post-Funding Date Collateral Matters. Within 90 days after the Funding Date
(or such later date as agreed to by the Administrative Agent), (i) execute and deliver to the
Collateral Agent or cause to be executed and delivered to the Collateral Agent each of the
Collateral Documents, in form and substance satisfactory to the Collateral Agent, relating to each
of the Mortgaged Properties, (ii) cause each of such Collateral Documents to be filed and recorded
in the recording office as specified on Schedule 7(A) to the Perfection Certificate and,

77

 

in connection therewith, provide to the Collateral Agent evidence satisfactory to it of each
such filing and recordation (or a lender’s title insurance policy, in form and substance consistent
with clause (iv) below and covering the “gap” of time between the delivery of the applicable
Collateral Document and the recordation of such Collateral Document), (iii) cause the Collateral
Agent to receive, in order to comply with the Flood Laws, the following documents relating to
Mortgaged Properties: (A) a completed standard flood hazard determination form; (B) if any
improvement(s) comprising part of the Mortgaged Properties are located in a special flood hazard
area, a notification to the Borrower (“Borrower Notice”) and (if applicable) notification to the
Borrower that flood insurance coverage under the National Flood Insurance Program (“NFIP”) is not
available because the community does not participate in the NFIP; and (C) documentation evidencing
the Borrower’s receipt of the Borrower Notice; and (D) if the Borrower Notice is required to be
given and flood insurance is available in the community in which the applicable property is
located, a copy of one of the following: the flood insurance policy, the Borrower’s application for
a flood insurance policy plus proof of premium payment, a declaration page confirming that flood
insurance has been issued, or such other evidence of flood insurance satisfactory to the Collateral
Agent; and (iv) cause to be delivered to the Collateral Agent such other documents, including a
policy or policies of title insurance issued by a nationally recognized title insurance company
selected by the Borrower and reasonably acceptable to the Collateral Agent, insuring such
Collateral Document as a first lien on such Mortgaged Property, subject to no Liens other than the
Liens permitted by Section 6.02, together with such endorsements, coinsurance and reinsurance as
may be available in the applicable jurisdiction and reasonably requested by the Collateral Agent
and the Lenders, with insurance amounts of not more than 105% of the actual value (as reasonably
estimated by the Borrower based on real estate tax assessment information) of the applicable
Mortgaged Property at the time such Collateral Document is recorded, together with such surveys,
abstracts, appraisals and reasonable and customary legal opinions reasonably requested by the
Collateral Agent.

ARTICLE 6

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 and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and
agrees with the Lenders that the Borrower will not, nor will it (from and after the Funding Date)
cause or permit any of the Restricted Subsidiaries to:

     SECTION 6.01. Indebtedness. Incur, create, assume or permit to exist any Indebtedness,
except:

     (a) Indebtedness existing on the date hereof or expected to be existing on the Funding Date
and, in each case, set forth in Schedule 6.01, and any Permitted Refinancing thereof;

     (b) (i) Indebtedness created hereunder and under the other Loan Documents and (ii)
Indebtedness in respect of the Senior Notes and any Permitted Refinancing thereof;

78

 

     (c) intercompany Indebtedness of the Borrower and the Restricted Subsidiaries to the extent
permitted by Section 6.04; provided that Indebtedness of any Loan Party owing to any Restricted
Subsidiary that is not a Loan Party shall be subordinated to the Secured Obligations (as defined in
the Guarantee and Security Agreement) pursuant to a Global Intercompany Note;

     (d) Indebtedness of the Borrower or any Restricted Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets (including by way of a
Permitted Acquisition), and any Permitted Refinancing thereof; provided that (i) such Indebtedness
is incurred prior to or within 120 days after such acquisition or the completion of such
construction or improvement and (ii) the aggregate principal amount of Indebtedness permitted by
this Section 6.01(d), when combined with the aggregate principal amount of all Capital Lease
Obligations incurred pursuant to Section 6.01(e) at any time outstanding shall not exceed the
greater of (A) $50,000,000 and (B) 1.5% of Consolidated Net Tangible Assets;

     (e) Capital Lease Obligations and any Permitted Refinancing thereof, in an aggregate principal
amount that, when combined with the aggregate principal amount of all Indebtedness incurred
pursuant to Section 6.01(d), shall not exceed the greater of (i) $50,000,000 and (ii) 1.5% of
Consolidated Net Tangible Assets;

     (f) Indebtedness under or with respect to self-insurance obligations, performance bonds, bid
bonds, completion guarantees, appeal bonds, customs bonds, surety bonds, return of money bonds,
bankers’ acceptances and similar obligations and trade-related letters of credit, in each case
provided in the ordinary course of business and not in connection with Indebtedness for borrowed
money, including those incurred to secure health, safety and environmental obligations (including
with respect to workers’ compensation claims or other types of social security benefits,
environmental financial responsibility requirements and environmental remediation programs or to
secure the performance of statutory obligations and other obligations of a like nature arising from
legal or regulatory requirements), in each case in the ordinary course of business;

     (g) Indebtedness owed to any Person providing worker’s compensation, health, disability or
other employee benefits or property, casualty or liability insurance to the Borrower or any
Restricted Subsidiary, pursuant to reimbursement or indemnification obligations to such Person;
provided that upon the occurrence of Indebtedness with respect to reimbursement obligations
regarding worker’s compensation claims, such obligations are reimbursed in the ordinary course of
business consistent with past practice;

     (h) Indebtedness in respect of the honoring by a bank or other financial institution of a
check, draft or similar instrument drawn against insufficient funds in the ordinary course of
business; provided that such Indebtedness is extinguished within five Business Days of its
incurrence;

     (i) Indebtedness incurred in the ordinary course of business to finance insurance policy
premiums;

79

 

     (j) Indebtedness in respect of agreements providing for indemnification, adjustment of
purchase price, earn-outs or similar obligations, in each case, incurred or assumed in connection
with the disposition of any business, assets or a Subsidiary of the Borrower;

     (k) Indebtedness of any Person that becomes a Restricted Subsidiary after the date hereof and
any Permitted Refinancing thereof; provided that (i) such Indebtedness exists at the time such
Persons becomes a Restricted Subsidiary and is not created in contemplation of or in connection
with such Person becoming a Restricted Subsidiary, (ii) immediately before and after such Person
becomes a Restricted Subsidiary, no Default or Event of Default shall have occurred and be
continuing and (iii) the aggregate principal amount of Indebtedness permitted by this Section
6.01(k) shall not exceed $50,000,000 at any time outstanding;

     (l) Indebtedness in respect of those Swap Contracts incurred in the ordinary course of
business and not for speculative purposes and consistent with prudent business practice;

     (m) any Permitted Senior Indebtedness and any Permitted Subordinated Indebtedness; provided
that in each case the Borrower and the Restricted Subsidiaries shall be in pro forma compliance
with the financial covenants set forth in Sections 6.11 and 6.12 after giving effect to such
Indebtedness;

     (n) endorsements for collection or deposit in the ordinary course of business;

     (o) Indebtedness in respect of (i) customer advances received and held in the ordinary course
of business or (ii) take-or-pay obligations contained in supply arrangements incurred in the
ordinary course of business;

     (p) Indebtedness incurred on behalf of or representing Guarantees of Indebtedness of
Unrestricted Subsidiaries or joint ventures in an amount not to exceed the amount of investments
permitted under Section 6.04(p);

     (q) Guarantees of Indebtedness of the Borrower and its Restricted Subsidiaries that is
permitted under clause (d), (e) or (n) of this Section 6.01; and

     (r) other Indebtedness of the Borrower or the Restricted Subsidiaries in an aggregate
principal amount at any time outstanding not exceeding $200,000,000.

     SECTION 6.02. Liens. Create, incur, assume or permit to exist any Lien on any property or
assets (including Equity Interests or other securities of any Person, including any Subsidiary) now
owned or hereafter acquired by it or on any income or revenues or rights in respect of any thereof,
except:

     (a) Liens on property or assets of the Borrower and its Restricted Subsidiaries existing on
the date hereof or expected to be existing on the Funding Date and, in each case, set forth in
Schedule 6.02; provided that such Liens shall secure only those obligations which they secure on
the date hereof and refinancings, extensions, renewals and replacements thereof permitted
hereunder;

     (b) any Lien created under the Loan Documents;

80

 

     (c) any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Restricted Subsidiary or existing on any property or assets of any Person that
becomes a Restricted Subsidiary after the date hereof prior to the time such Person becomes a
Restricted Subsidiary, as the case may be; provided that (i) such Lien is not created in
contemplation of or in connection with such acquisition or such Person becoming a Restricted
Subsidiary, (ii) such Lien secures only those obligations which it secures on the date of such
acquisition or the date such Person becomes a Restricted Subsidiary, as the case may be, and any
Permitted Refinancing thereof, and (iii) such Lien does not apply to any other property or assets
of the Borrower or any Restricted Subsidiary;

     (d) Liens for Taxes not yet due or which are being contested in compliance with Section 5.04;

     (e) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s landlords’ or other like
Liens arising in the ordinary course of business and securing obligations that are not overdue by
more than 60 days and payable or which are being contested in compliance with Section 5.04;

     (f) pledges and deposits made in the ordinary course of business in compliance with workmen’s
compensation, unemployment insurance and other social security laws or regulations;

     (g) pledges (in the ordinary course of business and consistent with past practice) and
deposits to secure the performance of bids, trade contracts (other than for Indebtedness), leases
(other than Capital Lease Obligations), statutory obligations, other obligations of a like nature
incurred in the ordinary course of business, and other obligations permitted by Section 6.01(f),
(g) or (h);

     (h) (i) encumbrances on real property that would be shown on a current and accurate survey and
zoning restrictions, easements, rights-of-way, covenants, restrictions, agreements, reservations,
riparian rights, mineral and air rights and similar encumbrances on real property imposed by law,
recorded in the applicable land records, or arising in the ordinary course of business that do not
materially detract from the value of the affected property or materially interfere with the
ordinary conduct of the business of the Borrower or any of its Restricted Subsidiaries and (ii) all
matters shown on or referred to in loan title policies issued to the Collateral Agent and the
Lenders;

     (i) purchase money security interests in real property, improvements thereto or assets
hereafter acquired (or, in the case of improvements, constructed) by the Borrower or any Restricted
Subsidiary; provided that (i) such security interests secure Indebtedness permitted by Section
6.01, (ii) such security interests are incurred, and the Indebtedness secured thereby is created,
within 120 days after such acquisition (or construction), (iii) the Indebtedness secured thereby
does not exceed the lesser of the cost or the fair market value of such real property, improvements
or equipment at the time of such acquisition (or construction) and (iv) such security interests do
not apply to any other property or assets of the Borrower or any Restricted Subsidiary;

81

 

     (j) judgment Liens securing judgments not constituting an Event of Default under Article 7 or
securing appeal or other surety bonds related to such judgments;

     (k) Liens created in favor of the United States of America or any department or agency thereof
or any other contracting party or customer in connection with advance or progress payments or
similar forms of vendor financing or incentive arrangements;

     (l) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights, or existing solely with respect to cash and
Permitted Investments on deposit in one or more accounts maintained by any Loan Party or any
Restricted Subsidiary of the Borrower, in each case granted in the ordinary course of business in
favor of the bank or banks which such accounts are maintained;

     (m) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into in the ordinary course of business, and Liens on
assets on loan, consignment or lease to the Borrower or a Restricted Subsidiary in the ordinary
course of business, including UCC financing statements related to such assets;

     (n) Liens solely on any cash earnest money deposits made by the Borrower or any of its
Restricted Subsidiaries in connection with any letter of intent of a Permitted Acquisition or other
Investment otherwise permitted hereunder;

     (o) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the ordinary course of
business;

     (p) Liens securing Capital Lease Obligations permitted under Section 6.01(e);

     (q) Liens on (i) insurance policies and the proceeds thereof (whether accrued or not) and
rights or claims against an insurer, in each case securing insurance premium financings permitted
under Section 6.01(i) and (ii) deposits made in the ordinary course of business to secure
liabilities for premiums to insurance carriers;

     (r) (i) Liens in the form of licenses, leases or subleases granted or created by the Borrower
or any of its Restricted Subsidiaries in the ordinary course of business, which licenses, leases or
subleases do not interfere, individually or in the aggregate, in any material respect with the
business of the Borrower and its Restricted Subsidiaries, taken as a whole and (ii) rights of
Persons in possession under recorded or unrecorded leases, licenses, occupancy or concession
agreements and easements entered into with the Borrower or any Restricted Subsidiary in the
ordinary course of business;

     (s) Liens attaching to decommissioning trust funds as may be required pursuant to any
requirement of law; and

     (t) other Liens in an aggregate amount not to exceed $50,000,000 at any time outstanding.

82

 

     SECTION 6.03. Sale and Lease-Back Transactions. Enter into any arrangement, directly or
indirectly, with any Person whereby it shall sell or transfer any property, real or personal, used
or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease
such property or other property which it intends to use for substantially the same purpose or
purposes as the property being sold or transferred unless (a) the sale or transfer of such property
is permitted by Section 6.05 and (b) any Capital Lease Obligations or Liens arising in connection
therewith are permitted by Sections 6.01 and 6.02, as the case may be.

     SECTION 6.04. Investments, Loans and Advances. Purchase, hold or acquire any Equity
Interests, evidences of indebtedness or other securities of, make or permit to exist any loans or
advances to, or make or permit to exist any investment or any other interest in, any other Person,
except:

     (a) (i) investments by the Borrower and the Restricted Subsidiaries existing on the Funding
Date in the Equity Interests of their respective Restricted Subsidiaries and joint ventures and
(ii) additional investments by the Borrower and the Restricted Subsidiaries in the Equity Interests
of the Restricted Subsidiaries; provided that (A) any such Equity Interests held by a Loan Party
shall be pledged pursuant to the Guarantee and Security Agreement (subject to the limitations
applicable to voting stock of a Foreign Subsidiary referred to therein) and (B) the aggregate
amount of investments made pursuant to this clause (a) after the Funding Date by Loan Parties in,
and loans and advances made pursuant to clause (c) below after the Funding Date by Loan Parties to,
Restricted Subsidiaries that are not Loan Parties (determined without regard to any write-downs or
write-offs of such investments, loans and advances) shall not exceed $10,000,000 at any time
outstanding;

     (b) Permitted Investments;

     (c) loans or advances made by the Borrower to any Restricted Subsidiary and made by any
Restricted Subsidiary to the Borrower or any other Restricted Subsidiary; provided that (i) any
such loans and advances made by a Loan Party shall be evidenced by a global intercompany note
pledged to the Collateral Agent for the ratable benefit of the Secured Parties pursuant to the
Guarantee and Security Agreement, (ii) such loans and advances shall be unsecured, (iii) if owed by
a Loan Party to a Restricted Subsidiary that is not a Loan Party, such loans and advances shall be
subordinated to the Secured Obligations (as defined in the Guarantee and Security Agreement)
pursuant to a Global Intercompany Note and (iv) the amount of such loans and advances made by Loan
Parties to Subsidiaries that are not Loan Parties pursuant to this clause (c) shall be subject to
the limitation set forth in clause (a) above;

     (d) investments received in connection with the bankruptcy or reorganization of, or settlement
of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary
course of business;

     (e) the Borrower and the Restricted Subsidiaries may make loans and advances in the ordinary
course of business to their respective employees so long as the aggregate principal amount thereof
during any fiscal year (determined without regard to any write-downs or write-offs of such loans
and advances) shall not exceed $10,000,000;

83

 

     (f) investments in prepaid expenses, negotiable instruments held for collection and lease,
utility and workers compensation, performance and similar deposits entered into as a result of the
operations of the business in the ordinary course of business;

     (g) the Borrower or any Restricted Subsidiary may acquire all or substantially all the assets
of a Person or division or line of business of such Person, or not less than 100% of the Equity
Interests (other than directors’ qualifying shares) of a Person (referred to herein as the
“Acquired Entity”); provided that (i) such acquisition was not preceded by an unsolicited tender
offer for such Equity Interests by, or proxy contest initiated by, the Borrower or any Restricted
Subsidiary; (ii) the Acquired Entity shall be in a Permitted Business; and (iii) at the time of
such transaction (A) both before and after giving effect thereto, no Default or Event of Default
shall have occurred and be continuing; (B) the Borrower would be in compliance with the covenants
set forth in Sections 6.11 and 6.12 as of the most recently completed period of four consecutive
fiscal quarters ending prior to such transaction for which the financial statements and
certificates required by Section 5.01(a) or Section 5.01(b), as the case may be, and Section
5.01(c) have been delivered or for which comparable financial statements have been filed with the
Securities and Exchange Commission, after giving pro forma effect to such transaction and to any
other event occurring after such period as to which pro forma recalculation is appropriate
(including any other transaction described in this Section 6.04(g) occurring after such period) as
if such transaction had occurred as of the first day of such period; (C) if the total consideration
of such acquisition exceeds $25,000,000, the Borrower shall have delivered a certificate of a
Financial Officer, certifying as to the foregoing and containing reasonably detailed calculations
in support thereof, in form and substance satisfactory to the Administrative Agent and (D) the
Borrower shall comply, and shall cause the Acquired Entity to comply, with the applicable
provisions of Section 5.11 and the Security Documents (any acquisition of an Acquired Entity
meeting all the criteria of this Section 6.04(g) being referred to herein as a “Permitted
Acquisition”);

     (h) Investments received as the non-cash portion of consideration received in connection with
transactions permitted pursuant to Section 6.05(b);

     (i) Investments by the Borrower or any Restricted Subsidiary constituting receivables owing to
it, if created or acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms;

     (j) Investments in connection with the Transactions;

     (k) Investments resulting from the disposition of interests in the shipyard in Avondale,
Louisiana or the facilities in Waggaman, Louisiana, or Tallulah, Louisiana;

     (l) Guarantees constituting Indebtedness permitted by Section 6.01(b);

     (m) Investments by the Borrower in Swap Contracts permitted under Section 6.01(l);

     (n) so long as no Default or Event of Default shall have occurred and be continuing or would
result therefrom, investments in an aggregate amount, in each case net of cash returned to the
Borrower or a Restricted Subsidiary in respect of such Investments, not to exceed the portion, if
any, of the Available Retained Basket Amount on the date of such election that the Borrower

84

 

elects to apply to this Section 6.04(n), such election to be specified in a written notice of
a Financial Officer of the Borrower calculating in reasonable detail the amount of the Available
Retained Basket Amount immediately prior to such election and the amount thereof elected to be so
applied (which amount shall, upon such application, increase the Available Retained Basket Usage
Amount);

     (o) Investments constituting the guarantee of performance under a contract (other than
Indebtedness) in the ordinary course of business;

     (p) investments, loans and advances by the Borrower and the Restricted Subsidiaries in
Unrestricted Subsidiaries or majority-owned joint ventures so long as the aggregate amount
invested, loaned or advanced pursuant to this Section 6.04(p) (determined without regard to any
write-downs or write-offs of such investments, loans and advances), in each case net of cash
returned to the Borrower or a Restricted Subsidiary in respect of such Investments, does not exceed
$150,000,000 in the aggregate; and

     (q) in addition to investments permitted by paragraphs (a) through (o) above, additional
investments, loans and advances by the Borrower and the Restricted Subsidiaries so long as the
aggregate amount invested, loaned or advanced pursuant to this Section 6.04(q) (determined without
regard to any write-downs or write-offs of such investments, loans and advances), in each case net
of cash returned to the Borrower or a Restricted Subsidiary in respect of such Investments, does
not exceed $150,000,000 in the aggregate.

     SECTION 6.05. Mergers, Consolidations, Sales of Assets and Acquisitions. (a) 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 the assets (whether now owned or hereafter acquired) of the
Borrower or less than all the Equity Interests of any Restricted Subsidiary, or purchase or
otherwise acquire (in one transaction or a series of transactions) all or substantially all of the
assets of any other Person or division or line of business of such Person, except that (i) the
Borrower and any Restricted Subsidiary may purchase and sell inventory in the ordinary course of
business and (ii) if at the time thereof and immediately after giving effect thereto no Event of
Default or Default shall have occurred and be continuing (1) any Wholly Owned Restricted Subsidiary
may merge into the Borrower in a transaction in which the Borrower is the surviving corporation,
(2) any Wholly Owned Restricted Subsidiary may merge into or consolidate with any other Wholly
Owned Restricted Subsidiary in a transaction in which the surviving entity is a Wholly Owned
Restricted Subsidiary (provided that if any party to any such transaction is a Loan Party, the
surviving entity of such transaction shall be a Loan Party), (3) any Restricted Subsidiary may
dispose of any or all of its assets (upon voluntary liquidation or otherwise) to the Borrower or
any other Restricted Subsidiary (which such recipient Restricted Subsidiary shall be a Loan Party
if the disposing Restricted Subsidiary is a Loan Party), (4) any Restricted Subsidiary may
liquidate (other than in connection with a merger or a consolidation which shall be governed by the
other clauses of this Section 6.05(a)) and distribute its assets ratably to its shareholders if the
Borrower determines in good faith that such liquidation or dissolution is in the best interests of
the Borrower and is not materially disadvantageous to the Lenders, and (5) the Borrower and the
Restricted Subsidiaries may make Permitted Acquisitions, including by means of mergers or
consolidations.

85

 

     (b) Make any Asset Sale otherwise permitted under paragraph (a) above unless (i) such
Asset Sale is for consideration at least 75% of which consists of cash, (ii) such consideration is
at least equal to the fair market value of the assets being sold, transferred, leased or disposed
of and (iii) the fair market value of all assets sold, transferred, leased or disposed of pursuant
to this paragraph (b) shall not exceed the greater of (i) $100,000,000 and (ii) 3.0% of the
Consolidated Net Tangible Assets in any fiscal year.

     SECTION 6.06. Restricted Payments; Restrictive Agreements. (a) Declare or make, or agree to
declare or make, directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so; provided, however, that:

     (i) any Restricted Subsidiary may declare and pay dividends or make other distributions
ratably to its equity holders;

     (ii) the purchase, redemption or other acquisition or retirement for value of Equity
Interests of the Borrower in connection with issuances of Equity Interests pursuant to
employee benefit plans or otherwise in compensation to officers, directors or employees,
which purchase, redemption or other acquisition or retirement for value is in order to
minimize dilution; provided, however, that the aggregate cash consideration paid for such
purchase, redemption, acquisition or retirement for value does not exceed $10,000,000 in any
fiscal year; provided, further, that any unused amounts in any fiscal year may be carried
forward to one or more future periods subject to a maximum aggregate amount of repurchases
made pursuant to this clause (ii) not to exceed $20,000,000 in any fiscal year;

     (iii) the Borrower may make Restricted Payments so long as (A) no Default or Event of
Default shall have occurred and be continuing or would result therefrom and (B) the Borrower
shall have a minimum of $300,000,000 of cash, Permitted Investments and/or availability
under the Revolving Credit Facility and (C) each such Restricted Payment pursuant to this
clause (iii) does not exceed the portion of the Available Retained Basket Amount on the date
of such Restricted Payment that the Borrower elects to apply to such Restricted Payment
pursuant to this Section 6.06(a)(iii), such election to be specified in a written notice of
a Financial Officer of the Borrower calculating in reasonable detail the amount of the
Available Retained Basket Amount immediately prior to such election and the amount thereof
elected to be so applied (which amount shall, upon such application, increase the Available
Retained Basket Usage Amount);

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

     (v) the Borrower and each Subsidiary of the Borrower may make Restricted Payments for
the cashless exercise of options and warrants in respect of Equity Interests that represent
a portion of the exercise price of such options;

     (vi) so long as no Default or Event of Default shall have occurred or be continuing or
result therefrom, the Borrower and each Subsidiary of the Borrower may

86

 

declare and make regular dividend payments or other distributions, or other Restricted
Payments, in an amount not to exceed $30,000,000 in any fiscal year; provided that the
amount of payments pursuant to this clause (vi) in respect of any fiscal year commencing
with the fiscal year ending on December 31, 2012 shall be increased by an amount equal to
unused amount of payments permitted pursuant to this clause (vi) in any preceding fiscal
year (the “Restricted Payment Rollover Amount”); provided that any portion of the Restricted
Payment Rollover Amount allocated to increase the amount of payments permitted pursuant to
this clause (vi) for one fiscal year shall not be allocated to increase the amount of such
permitted payments for any other fiscal year;

     (vii) the Borrower may make Restricted Payments so long as (A) no Default or Event of
Default shall have occurred and be continuing or would result therefrom, (B) the Borrower
shall have a minimum of $300,000,000 of cash, Permitted Investments and/or availability
under the Revolving Credit Facility, (C) after giving effect thereto, the Leverage Ratio is
below 2.75:1 and (D) the sum of (1) the aggregate amount of such Restricted Payments
pursuant to this clause (vii) plus (2) the aggregate amount of Restricted Prepayments made
pursuant to Section 6.09(b)(iii), does not exceed $100,000,000 in the aggregate; provided
that (x) any Restricted Payments made pursuant to this clause (vii) shall be applied to
increase dollar-for-dollar the Available Retained Basket Usage Amount and (y) such
application shall be specified in a written notice of a Financial Officer of the Borrower
calculating in reasonable detail the amount of the Available Retained Basket Amount
immediately prior to such application and the amount thereof to be so applied; and

     (viii) the Borrower may consummate the Spin-off in accordance with the Distribution
Agreement, and the Borrower and its Restricted Subsidiaries may make other Restricted
Payments pursuant to the Transaction Documents.

     (b) Enter into, incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (i) the ability of Borrower or any Restricted Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets, or (ii) the ability
of any Restricted Subsidiary to pay dividends or other distributions with respect to any of its
Equity Interests or to make or repay loans or advances to the Borrower or any other Restricted
Subsidiary or to Guarantee Indebtedness of the Borrower or any other Restricted Subsidiary;
provided that (A) the foregoing shall not apply to restrictions and conditions imposed by law or by
any Loan Document or Transaction Document, (B) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a Restricted Subsidiary
pending such sale, provided such restrictions and conditions apply only to the Restricted
Subsidiary that is to be sold and such sale is permitted hereunder, (C) the foregoing shall not
apply to (x) any agreement in effect on the date hereof or on the Funding Date and set forth on
Schedule 6.06 (including (1) in the case of any such agreement evidencing Indebtedness, any
Permitted Refinancing and (2) in the case of any other such agreement, any amendment or renewal
thereof that is not prohibited by any Loan Documents so long as such agreement, as so amended or
renewed is no more restrictive with respect to such limitation than such agreement prior to giving
effect to such amendment or renewal thereof) or (y) at the time any Person first becomes a
Subsidiary of the Borrower, so long as such agreement was not entered into solely in contemplation
of such Person becoming a Subsidiary of the Borrower, (D) clause (i) of the

87

 

foregoing shall not apply to restrictions or conditions imposed by any agreement relating to
secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to
the property or assets securing such Indebtedness, (E) clause (i) of the foregoing shall not apply
to (x) customary provisions in leases and other contracts restricting the assignment thereof and
(y) encumbrances or restrictions that are customary provisions in asset sale agreements, stock sale
agreements, sale leaseback agreements or other similar arrangements with respect to the disposition
or distribution of assets or property subject to such agreements, and (F) the foregoing shall not
apply to customary provisions in joint venture agreements, in each case applicable solely to such
joint venture entered into in the ordinary course of business.

     SECTION 6.07. Transactions with Affiliates. Except for transactions between or among the
Restricted Companies, sell or transfer any property or assets to, or purchase or acquire any
property or assets from, or otherwise engage in any other transactions with, any of its Affiliates,
other than:

     (i) transactions at prices and on terms and conditions not materially less favorable to
the Borrower or such Restricted Subsidiary than could be obtained on an arm’s-length basis
from unrelated third parties,

     (ii) any indemnification agreement or any similar arrangement entered into with
directors, officers, consultants and employees of the Borrower and the Restricted
Subsidiaries in the ordinary course of business and the payment of fees and indemnities to
directors, officers, consultants and employees of the Borrower and the Restricted
Subsidiaries in the ordinary course of business,

     (iii) transactions pursuant to permitted agreements in existence on the Effective Date
or expected to be existing on the Funding Date and, in each case, set forth on Schedule 6.07
or any amendment thereto to the extent such amendment is not adverse to the Lenders in any
material respect,

     (iv) any employment agreement or employee benefit plan entered into by the Borrower or
any of the Restricted Subsidiaries in the ordinary course of business or consistent with
past practice and payments pursuant thereto,

     (v) transactions otherwise permitted under Section 6.04 and Section 6.06,

     (vi) the existence of, or the performance by the Borrower or any of the Restricted
Subsidiaries of its obligations under the terms of, the Distribution Agreement, or any
agreement contemplated thereunder to which it is a party as of the Effective Date, provided,
however, that the existence of, or the performance by the Borrower or any Subsidiary of
obligations under any future amendment to any such existing agreement or under any similar
agreement entered into after the Effective Date shall only be permitted by this clause (vi)
to the extent that the terms of any such amendment or new agreement are not otherwise
disadvantageous to the Lenders in any material respect,

     (vii) any transaction or series of related transactions with an aggregate value or
payment (and, if applicable, annual value or payment) of less than $1,000,000;

88

 

     (viii) transactions with any Affiliate for the purchase or sale of goods, products,
parts and services entered into in the ordinary course of business, and

     (ix) the Transactions.

     SECTION 6.08. Business of Borrower and Restricted Subsidiaries and Titan II. (a) Engage at
any time in any business other than the Permitted Business.

     (b) Permit or cause Titan II, after (but not including) the Funding Date, to engage at any
time in any business or have any assets or liabilities, other than (i) its liabilities as a
guarantor under the Titan II Guarantees or liabilities for which Titan II is indemnified under the
Transaction Documents, (ii) liabilities reasonably incurred in connection with the maintenance of
Titan II’s corporate existence or arising from the Transaction Documents, and (iii) indemnities
from the Borrower in support of the foregoing. For the avoidance of doubt, it is understood and
agreed that in no event shall Titan II be merged into or consolidated with the Borrower or any
other Subsidiary, other than an Unrestricted Subsidiary formed solely for the purpose of such
merger that does not have any assets or operations (other than assets or operations incidental to
its formation); provided that after such merger such surviving Unrestricted Subsidiary shall be
deemed to be “Titan II” thereafter for purposes of this Agreement (including without limitation,
Section 5.13).

     SECTION 6.09. Certain Other Indebtedness. (a) Permit any waiver, supplement, modification,
amendment, termination or release of any indenture, instrument or agreement pursuant to which any
Senior Notes, any other Permitted Senior Indebtedness or any Permitted Subordinated Indebtedness is
outstanding if the effect of such waiver, supplement, modification, amendment, termination or
release would materially impair the value of the interest or rights of any Loan Party thereunder or
would materially impair the rights or interests of the Agent or any Lender, other than any
termination thereof in connection with the payment in full of all obligations thereunder in
accordance with the terms of this Agreement (including, without limitation, Section 6.09(b)
hereof).

     (b) Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity
thereof in any manner (it being understood that payments of regularly scheduled interest shall be
permitted) any Senior Notes, any other Permitted Senior Indebtedness or any Permitted Subordinated
Indebtedness or make any payment in violation of any subordination terms of any Permitted
Subordinated Indebtedness (collectively, “Restricted Prepayments”), except:

     (i) the refinancing thereof with net cash proceeds of (A) in the case of Permitted
Subordinated Indebtedness, any issuance of Qualified Capital Stock or other Permitted
Subordinated Indebtedness, and (B) in the case of the Senior Notes or any other Permitted
Senior Indebtedness, any issuance of Qualified Capital Stock, Permitted Subordinated
Indebtedness or other Permitted Senior Indebtedness;

     (ii) the conversion of any Permitted Subordinated Indebtedness, any Senior Notes or any
other Permitted Senior Indebtedness to Qualified Capital Stock;

89

 

     (iii) so long as (A) no Default or Event of Default shall have occurred and be
continuing or would result therefrom and (B) no Revolving Loans are outstanding at such
time, Restricted Prepayments in an amount, in the case of each such Restricted Prepayment,
up to the portion, if any, of the Available Retained Basket Amount on the date of such
Restricted Prepayment that the Borrower elects to apply to this Section 6.09(b)(iii), such
election to be specified in a written notice of a Financial Officer of the Borrower
calculating in reasonable detail the amount of the Available Retained Basket Amount
immediately prior to such election and the amount thereof elected to be so applied (which
amount shall, upon such application, increase the Available Retained Basket Usage Amount);

     (iv) so long as (A) no Default or Event of Default shall have occurred and be
continuing or would result therefrom, (B) the Borrower has at such time a minimum of
$300,000,000 of cash, Permitted Investments and/or availability under the Revolving Credit
Facility, (C) after giving effect thereto, the Leverage Ratio is below 2.75:1 and (D) the
sum of (1) the aggregate amount of such Restricted Prepayments pursuant to this clause (iv)
plus (2) the aggregate amount of Restricted Payments made pursuant to Section 6.06(a)(vii)
does not exceed $100,000,000 in the aggregate; provided that (x) any Restricted Prepayments
made pursuant to this clause (iv) shall be applied to increase dollar-for dollar the
Available Retained Basket Usage Amount and (y) such application shall be specified in a
written notice of a Financial Officer of the Borrower calculating in reasonable detail the
amount of the Available Retained Basket Amount immediately prior to such application and the
amount thereof to be so applied; and

     (v) in addition to Restricted Prepayments permitted by paragraphs (i) through (iii)
above, additional Restricted Prepayments in an aggregate amount not to exceed $100,000,000
during the term of this Agreement; provided that at the time of any such prepayment, (A) no
Default or Event of Default shall have occurred and be continuing or would result therefrom
and (B) the Borrower has at such time a minimum of $300,000,000 of cash, Permitted
Investments and/or availability under the Revolving Credit Facility.

     SECTION 6.10. Capital Expenditures. Permit the aggregate amount of Capital Expenditures made
by the Borrower and the Restricted Subsidiaries in any period set forth below to exceed (i) the
amount of such Capital Expenditures made with the portion, if any, of the Available Retained Basket
Amount on the date of any election that the Borrower elects to apply to this Section 6.10(i), such
election to be specified in a written notice of a Financial Officer of the Borrower calculating in
reasonable detail the amount of the Available Retained Basket Amount immediately prior to such
election and the amount thereof elected to be so applied (which amount shall, upon such Capital
Expenditure, increase the Available Retained Basket Usage Amount), plus (ii) the amount set forth
below for such period:

	 	 	 	 	 
	Fiscal Year	 	Amount
	2011
	 	$	350,000,000	 
	2012
	 	$	200,000,000	 
	2013
	 	$	200,000,000	 
	2014
	 	$	200,000,000	 
	2015 and thereafter
	 	$	200,000,000	 

90

 

     The amount of permitted Capital Expenditures set forth in the table above in respect of any
fiscal year commencing with the fiscal year ending on December 31, 2012 (the “Specified Permitted
CapEx Amount”) shall be increased (but not decreased) by the amount of the unused Specified
Permitted CapEx Amount for the immediately preceding fiscal year (the “CapEx Rollover Amount”);
provided that any CapEx Rollover Amount shall be available to be used in such fiscal year only
after the Specified Permitted CapEx Amount for such fiscal year has been fully used in such fiscal
year. In addition, the amount of permitted Capital Expenditures that would otherwise be permitted
in any fiscal year pursuant to this Section 6.10 (including as a result of the preceding sentence)
may be increased by an amount not to exceed 50% of the Specified Permitted CapEx Amount for the
immediately succeeding fiscal year (the “CapEx Pull Forward Amount”); provided that before any
Capital Expenditures are made in a fiscal year pursuant to the CapEx Pull Forward Amount, Capital
Expenditures shall have been made in such fiscal year in an amount equal to the Capital
Expenditures otherwise permitted in such fiscal year (including as a result of the application of
the preceding sentence). The actual CapEx Pull Forward Amount that is used in respect of any such
fiscal year shall reduce, on a dollar-for-dollar basis, the Specified Permitted CapEx Amount for
the immediately succeeding fiscal year. Notwithstanding anything to the contrary in this
paragraph, the amount of Capital Expenditures permitted to be made pursuant to clause (ii) of this
Section 6.10 (including as a result of the application of the preceding sentences) in any fiscal
year shall not exceed 200% of the Specified Permitted CapEx Amount for such fiscal year.

     SECTION 6.11. Interest Coverage Ratio. Permit the Interest Coverage Ratio for any period of
four consecutive fiscal quarters, in each case taken as one accounting period, ending on a date or
during any period set forth below to be less than the ratio set forth opposite such date or period
below:

	 	 	 	 	 
	Date or Period	 	Ratio
	Quarter ending March 31, 2011
	 	 	3.50:1	 
	Quarter ending June 30, 2011
	 	 	3.50:1	 
	Quarter ending September 30, 2011
	 	 	3.50:1	 
	Quarter ending December 31, 2011
	 	 	3.50:1	 
	Quarter ending March 31, 2012
	 	 	3.50:1	 
	Quarter ending June 30, 2012
	 	 	3.50:1	 
	Quarter ending September 30, 2012
	 	 	3.75:1	 
	Quarter ending December 31, 2012
	 	 	3.75:1	 
	Quarter ending March 31, 2013
	 	 	3.75:1	 
	Quarter ending June 30, 2013
	 	 	3.75:1	 
	Quarter ending September 30, 2013
	 	 	4.00:1	 
	Quarter ending December 31, 2013
	 	 	4.00:1	 
	Quarter ending March 31, 2014
	 	 	4.25:1	 
	Quarter ending June 30, 2014
	 	 	4.25:1	 
	Quarter ending September 30, 2014
	 	 	4.25:1	 
	Quarter ending December 31, 2014
	 	 	4.25:1	 
	Quarter ending March 31, 2015 and thereafter
	 	 	4.50:1	 

91

 

     SECTION 6.12. Maximum Leverage Ratio. Permit the Leverage Ratio as of the last day of any
period set forth below to be greater than the ratio set forth opposite such period below:

	 	 	 	 	 
	Period	 	Ratio
	Quarter ending March 31, 2011
	 	 	4.50:1	 
	Quarter ending June 30, 2011
	 	 	4.50:1	 
	Quarter ending September 30, 2011
	 	 	4.50:1	 
	Quarter ending December 31, 2011
	 	 	4.25:1	 
	Quarter ending March 31, 2012
	 	 	4.25:1	 
	Quarter ending June 30, 2012
	 	 	4.25:1	 
	Quarter ending September 30, 2012
	 	 	4.00:1	 
	Quarter ending December 31, 2012
	 	 	4.00:1	 
	Quarter ending March 31, 2013
	 	 	3.75:1	 
	Quarter ending June 30, 2013
	 	 	3.75:1	 
	Quarter ending September 30, 2013
	 	 	3.50:1	 
	Quarter ending December 31, 2013
	 	 	3.25:1	 
	Quarter ending March 31, 2014
	 	 	3.00:1	 
	Quarter ending June 30, 2014
	 	 	3.00:1	 
	Quarter ending September 30, 2014
	 	 	3.00:1	 
	Quarter ending December 31, 2014
	 	 	3.00:1	 
	Quarter ending March 31, 2015 and thereafter
	 	 	2.75:1	 

     SECTION 6.13. Fiscal Year. With respect to the Borrower, change its fiscal year-end to a
date other than December 31.

     SECTION 6.14. Transactions. For the avoidance of doubt, notwithstanding anything else to the
contrary in this Agreement, the Borrower and the Restricted Subsidiaries shall be permitted to
consummate the Transactions.

ARTICLE 7

Events of Default

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

     (a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation
in respect of any LC Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or otherwise;

     (b) the Borrower shall fail to pay any interest on any Loan or LC Disbursement or any fee or
any other amount (other than an amount referred to in clause (a) of this Article) payable under
this Agreement or any other Loan Document when and as the same shall become due and payable, and
such failure shall continue unremedied for a period of five days;

92

 

     (c) any representation or warranty made or deemed made by or on behalf of the Borrower or any
Restricted Subsidiary in or in connection with this Agreement, any other Loan Document, the
borrowings or issuances of Letters of Credit hereunder or any amendment or modification hereof or
thereof or waiver hereunder or thereunder, or in any report, certificate, financial statement or
other document furnished pursuant to or in connection with this Agreement or any amendment or
modification hereof or waiver hereunder, shall prove to have been incorrect in any material respect
when made, deemed made or furnished;

     (d) the Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant,
condition or agreement contained in Sections 2.05(k)(ii), 5.02(a), 5.03 (with respect to the
Borrower’s existence), 5.08, 5.12 or in Article 6;

     (e) the Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant,
condition or agreement contained in this Agreement or in any Loan Document (other than those
specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied
for a period of 30 days after notice thereof from the Administrative Agent to the Borrower (which
notice will be given at the request of any Lender);

     (f) the Borrower or any Restricted Subsidiary shall fail to pay any principal or interest,
regardless of amount, in respect of any Material Indebtedness, when and as the same shall become
due and payable;

     (g) any other event or condition occurs that results in any Material Indebtedness becoming due
prior to its scheduled maturity or that enables or permits (with or without the giving of notice,
the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or
agent on its or their behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity (and the
lapse of any applicable grace periods in respect thereof); provided that this clause (g) shall not
apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the
property or assets securing such Indebtedness;

     (h) an involuntary case or other proceeding shall be commenced or an involuntary petition
shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower
or any Significant Subsidiary or its debts, or of a substantial part of its property or assets,
under any Federal, state or foreign bankruptcy, insolvency, receivership or other similar law now
or hereafter in effect or seeking (ii) the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for the Borrower or any Significant Subsidiary or for
a substantial part of its assets, and, in any such case, such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be
entered;

     (i) the Borrower or any Significant Subsidiary shall (i) voluntarily commence any proceeding
or file any petition seeking liquidation, reorganization or other relief under any Federal, state
or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii)
consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
the

93

 

Borrower or any Significant Subsidiary or for a substantial part of its assets, (iv) become
unable, admit in writing its inability or fail generally to pay its debts as they become due, (v)
file an answer admitting the material allegations of a petition filed against it in any such
proceeding, (vi) make a general assignment for the benefit of creditors or (vii) take any action
for the purpose of effecting any of the foregoing;

     (j) one or more judgments for (x) the payment of money in an aggregate amount in excess of
$40,000,000 (to the extent not covered by independent third-party insurance as to which the insurer
is rated at least “A” by A.M. Best Company and does not dispute coverage) or (y) injunctive relief
which would reasonably be expected to result in a Material Adverse Effect shall be rendered against
the Borrower, any Restricted Subsidiary or any combination thereof and the same shall, in each
case, remain undischarged for a period of 30 consecutive days during which execution shall not be
effectively stayed, by reason of a pending appeal or otherwise, or any action shall be legally
taken by a judgment creditor to attach or levy upon any assets of the Borrower or any Restricted
Subsidiary to enforce any such judgment;

     (k) an ERISA Event shall have occurred that, in the reasonable opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred, would be expected to
result in liability of the Borrower and its Restricted Subsidiaries in an aggregate amount
exceeding $40,000,000;

     (l) any Guarantee under the Guarantee and Security Agreement for any reason shall cease to be
in full force and effect (other than in accordance with its terms), or any Guarantor shall deny in
writing that it has any further liability under the Guarantee and Security Agreement (other than as
a result of the discharge of such Guarantor in accordance with the terms of the Loan Documents);

     (m) any security interest purported to be created by any Collateral Document in any material
portion of the Collateral shall cease to be, or shall be asserted by the Borrower or any other Loan
Party not to be, a valid, perfected, first priority (except as otherwise expressly provided in this
Agreement or such Collateral Document) security interest in the securities, assets or properties
covered thereby;

     (n) any Permitted Subordinated Indebtedness of the Borrower and its Restricted Subsidiaries
constituting Material Indebtedness shall cease (or any Loan Party or an Affiliate of any Loan Party
shall so assert), for any reason, to be validly subordinated to the Obligations as provided in the
agreements evidencing such Indebtedness;

     (o) a Change in Control shall occur; or

     (p) the Spin-off shall not have occurred as soon as practicable and within 5 Business Days of
the Funding Date;

then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders (or in the case of terminating
the Revolving Credit Commitments pursuant to clause (i) below, the Required

94

 

Revolving Credit Lenders), shall, by notice to the Borrower, take any or all of the following
actions, as applicable, at the same or different times: (i) terminate the Commitments, and
thereupon the Commitments shall terminate immediately, (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 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 (iii) exercise on behalf of itself and the Lenders all rights and remedies available
to it and the Lenders under the Loan Documents or applicable law; provided that in case of any
event with respect to the Borrower described in clause (h) or (i) 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. Nothing in this Agreement shall
constitute a waiver of any rights or remedies the Lenders may otherwise have, including setoff
rights.

ARTICLE 8

The Administrative Agent and the Collateral Agent

     Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent
and the Collateral Agent (for purposes of this Article 8, the Administrative Agent and the
Collateral Agent are referred to collectively as the “Agents”) as its agent and authorizes the
Agents to take such actions on its behalf and to exercise such powers as are delegated to such
Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably
incidental thereto. Without limiting the generality of the foregoing, the Agents are hereby
expressly authorized to (i) execute any and all documents (including releases) with respect to the
Collateral and the rights of the Secured Parties with respect thereto, as contemplated by and in
accordance with the provisions of this Agreement and the Collateral Documents and (ii) negotiate,
enforce or the settle any claim, action or proceeding affecting the Lenders in their capacity as
such, at the direction of the Required Lenders, which negotiation, enforcement or settlement will
be binding upon each Lender.

     Neither Agent shall have any duties or obligations except those expressly set forth in the
Loan Documents. Without limiting the generality of the foregoing, (a) neither Agent shall be
subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and
is continuing, (b) neither Agent shall have any duty to take any discretionary action or exercise
any discretionary powers, except discretionary rights and powers expressly contemplated hereby that
such Agent is required to exercise in writing as directed 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, neither Agent shall not
have any duty to disclose, and nor shall it 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 bank
serving as the Administrative Agent and/or Collateral Agent or any of its

95

 

Affiliates in any capacity. Neither Agent shall 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 gross negligence or willful misconduct. Neither Agent shall be
deemed to have knowledge of any Default unless and until written notice thereof is given to such
Agent by the Borrower or a Lender, and neither Agent shall be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in or in connection
with any Loan Document, (ii) the contents of any certificate, report or other document delivered
thereunder or in connection therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of this Loan Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in Article 4 or
elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be
delivered to such Agent and to confirm the occurrence of the Effective Date in accordance with
Section 4.02.

     The bank serving as the Administrative Agent and/or the Collateral Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not an Agent, and such bank and its Affiliates 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 an Agent hereunder.

     Each 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 to be genuine and to have been signed or sent by the proper Person. Each Agent also
may rely upon any statement made to it orally or by telephone and believed by it to have been made
by the proper Person, and shall not incur any liability for relying thereon. Each 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.

     Each 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 it. Each Agent and any such sub-agent may perform any and
all of its duties and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent
and to the Related Parties of each Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the Senior Credit Facilities as
well as activities as Agent.

     Subject to the appointment and acceptance of a successor Agent as provided below, each Agent
may resign at any time by notifying the Lenders, the Issuing Banks and the Borrower. Upon any such
resignation, the Required Lenders shall have the right to appoint a successor (such successor to be
approved by the Borrower, such approval not to be unreasonably withheld or delayed; provided,
however, if an Event of Default shall exist at such time, no approval of the Borrower shall be
required). If no successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Agent gives notice of its resignation,
then the retiring Agent may, on behalf of the Lenders and the Issuing

96

 

Bank, appoint a successor Agent which shall be a bank with an office in New York, New York, or
an Affiliate of any such bank. If no successor Agent has been appointed pursuant to the
immediately preceding sentence by the 30th day after the date such notice of resignation was given
by such Agent, such Agent’s resignation shall become effective and the Required Lenders shall
thereafter perform all the duties of such Agent hereunder and/or under any other Loan Document
until such time, if any, as the Required Lenders appoint a successor Administrative Agent and/or
Collateral Agent, as the case may be. Any such resignation by such Agent hereunder shall also
constitute, to the extent applicable, its resignation as an Issuing Bank and the Swingline Lender,
in which case such resigning Agent (x) shall not be required to issue any further Letters of Credit
or make any additional Swingline Loans hereunder and (y) shall maintain all of its rights, duties
and obligations as Issuing Bank or Swingline Lender, as the case may be, with respect to any
Letters of Credit issued by it, or Swingline Loans made by it, prior to the date of such
resignation. Upon the acceptance of its appointment as Agent hereunder by a successor, such
successor shall succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Agent and, if applicable, as an Issuing Bank (and shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring Issuing Bank to effectively assume the obligations
of the retiring Issuing Bank with respect to such Letters of Credit) and a Swingline Lender, and
the retiring Agent shall be discharged from its duties and obligations hereunder. The fees payable
by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the Agent’s resignation hereunder,
the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such
retiring 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 acting as Agent.

     Each Lender acknowledges that it has, independently and without reliance upon the Agents 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 Agents 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, any related agreement or any document furnished hereunder or thereunder.

     It is agreed that the Syndication Agent, Documentation Agents, Lead Arrangers and Joint
Bookrunners shall, in their capacities as such, have no duties or responsibilities under this
Agreement or liability in connection with this Agreement. None of the Syndication Agent,
Documentation Agents, Lead Arrangers and Joint Bookrunners, in their capacities as such, has or is
deemed to have any fiduciary relationship with any Lender.

97

 

ARTICLE 9

Miscellaneous

     SECTION 9.01. Notices. (a) Except in the case of notices and other communications expressly
permitted to be given by telephone (and subject to paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopy, as follows:

     (i) if to the Borrower, to it at Huntington Ingalls Industries, Inc., 4101 Washington
Avenue, Newport News, Virginia 23607, Attention of D.R. Wyatt (Telecopy No. (757) 688-6449);

     (ii) if to the Administrative Agent to JPMorgan Chase Bank, N.A., Loan and Agency
Services Group, 1111 Fannin, 8th Floor, Houston, Texas 77002, Attention of Omar Jones
(Telecopy No. (713) 750-2938), with a copy to JPMorgan Chase Bank, N.A., 383 Madison Avenue,
New York, New York 10179, Attention of Matthew Massie (Telecopy No. (212) 270-5100, E-mail:
Matthew.Massie@jpmorgan.com);

     (iii) if to the Swingline Lenders, to them at (A) JPMorgan Chase Bank, N.A., Loan and
Agency Services Group, 1111 Fannin, 8th Floor, Houston, Texas 77002, Attention of Omar Jones
(Telecopy No. (713) 750-2938), with a copy to JPMorgan Chase Bank, N.A., 383 Madison Avenue,
New York, New York 10179, Attention of Matthew Massie (Telecopy No. (212) 270-5100, E-mail:
Matthew.Massie@jpmorgan.com); and

     (iv) if to any other Lender or Issuing Bank, to it at its address (or telecopy number)
set forth in its Administrative Questionnaire.

     (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article 2 unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in
its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

     (c) 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.

     (d) Each Lender is responsible for providing prompt notice to the Administrative Agent of any
changes to the information set forth in its Administrative Questionnaire.

     SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Administrative Agent, any
Issuing Bank or any Lender in exercising any right or power hereunder or under any 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

98

 

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, each Issuing Bank 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 this Agreement or any other
Loan Document or consent to any departure by the Borrower or any other Loan Party 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 or
issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of
whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge
of such Default at the time.

     (b) Neither this Agreement nor any other Loan Document (other than any LC Continuing
Agreement) nor any provision hereof or thereof may be waived, amended or modified except (i) in the
case of this Agreement, 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 and (ii) in the case of any other Loan Document, pursuant to an agreement
or agreements in writing entered into by each party thereto 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 any LC Disbursement 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 LC Disbursement, 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 2.19(b), 2.19(c) or any other
provision of the Loan Documents in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each affected Lender, (v) change any of the
provisions of this Section or the definition of “Required Lenders”, “Required Revolving Credit
Lenders”, or any other provision hereof 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, (vi) release any Guarantor (other than in
connection with the sale of such Guarantor in a transaction permitted by Section 6.05) without the
written consent of each Lender, (vii) release all or substantially all of the Collateral without
the written consent of each Lender, (viii) change any of the provisions in Section 9.04(b) in such
a way that imposes greater restrictions on a Lender’s ability to assign all or a portion of its
rights and obligations under this Agreement without the written consent of each Lender adversely
affected thereby, (ix) change any of the provisions of Section 15 (Application of Proceeds) of the
Guarantee and Security Agreement without the consent of each Lender and (x) amend, modify,
supplement or waive any condition precedent to any Revolving Loan set forth in Section 4.03 without
the written consent of the Required Revolving Credit Lenders; provided further that no such
agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent,
any Issuing Bank or any Swingline Lender hereunder without the prior written consent of the
Administrative Agent, such Issuing Bank or such Swingline Lender, as the case may be.

99

 

     Notwithstanding anything to the contrary contained in this Section 9.02(b), on the Funding
Date the Administrative Agent and the Borrower shall be permitted, without the consent of any other
Lender, to complete the column under “Repayment Dates” in the table set forth in Section 2.10(a) to
reflect repayment dates that are in successive 3-month intervals from the Funding Date.

     (c) In connection with any proposed amendment, modification, waiver or termination (a
“Proposed Change”) requiring the consent of all the Lenders, if the consent of Lenders representing
the Required Lenders to such Proposed Change is obtained, but the consent of any other Lender is
not obtained (any such Lender whose consent is not obtained as described in this Section 9.02(c)
being referred to as a “Non-Consenting Lender”), then, at the Borrower’s request, any assignee
identified by the Borrower (with the consent of such assignee) that is a Lender, an Affiliate of a
Lender, an Approved Fund or otherwise reasonably acceptable to the Administrative Agent (and that
is not a Non-Consenting Lender) shall have the right, after consultation of the Borrower with the
Administrative Agent (and with the consent of the Administrative Agent to the extent such
assignment would require its consent under Section 9.04(b)(i)), to purchase from such
Non-Consenting Lender, and such Non-Consenting Lender agrees that it shall, upon the Borrower’s
request, sell and assign to such assignee, at no expense to such Non-Consenting Lender (including
with respect to any processing and recordation fees that may be applicable pursuant to Section
9.04(b)(ii)), all of its interests, rights and obligations with respect to the Class of Loans or
Commitments that is the subject of such Proposed Change, for an amount equal to the principal
balance of all Loans (and funded participations in Swingline Loans and unreimbursed LC
Disbursements) held by such Non-Consenting Lender and all accrued interest, accrued fees and other
amounts with respect thereto through the date of sale (including amounts under Sections 2.16, 2.17
and 2.18), such purchase and sale to be consummated pursuant to an executed Assignment and
Assumption in accordance with Section 9.04(b) (which Assignment and Assumption need not be signed
by such Non-Consenting Lender).

     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 and the
Lead Arrangers, the Collateral Agent, each Issuing Bank and Swingline Lender, including the
reasonable fees, charges and disbursements of Davis Polk & Wardwell LLP and any other special or
local counsel for the Administrative Agent as may have been retained by the Administrative Agent
after consultation with the Borrower, in connection with the arrangement and syndication of the
credit facilities provided for herein, the preparation, execution, delivery and administration of
this Agreement (including expenses incurred in connection with due diligence and initial and
ongoing Collateral examination and the reasonable fees, disbursements and the charges for no more
than one counsel in each jurisdiction where Collateral is located) or any amendments, modifications
or waivers of the provisions hereof (in each case whether or not the Transactions are consummated),
(ii) all reasonable out-of-pocket expenses incurred by any Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all reasonable out-of-pocket expenses incurred by the Administrative Agent,
the Collateral Agent, any Issuing Bank or any Lender, including the fees, charges and disbursements
of any counsel for the Administrative Agent, the Collateral Agent, any Issuing Bank or any Lender,
in connection with the enforcement or

100

 

protection of its rights under or in connection with this Agreement and the other Loan
Documents, including its rights under this Section, or in connection with the Loans made or Letters
of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

     (b) The Borrower shall indemnify the Administrative Agent, the Collateral Agent, the Lead
Arrangers each Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses, including the fees, charges
and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of (i) the arrangement and the syndication of
the credit facilities provided for herein, the execution or delivery of this Agreement or any other
Loan Document or any agreement or instrument contemplated hereby, the performance by the parties
hereto of their respective obligations hereunder or the consummation of the Transactions or any
other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence or release or
threatened release of Hazardous Materials at, under, on or from any property owned or operated by
the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory and regardless of whether any Indemnitee is a party thereto and regardless of
whether such matter is initiated by a third party or by the Borrower or any Affiliate thereof;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or its Affiliates, officers, directors, employees, advisors
or agents. This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that
represent losses or damages from any non-Tax claim.

     (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s pro rata share (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, the Issuing Bank or
the Swingline Lender in its capacity as such. For purposes hereof, a Lender’s “pro rata share”
shall be determined based upon its share of the sum of the aggregate Revolving Credit Exposure,
outstanding Term Loans and unused Commitments at the time (in each case, determined as if no Lender
were a Defaulting Lender).

     (d) To the extent permitted by applicable law, neither the Borrower nor any Indemnitee shall
have liability for any 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 or

101

 

any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of
Credit or the use of the proceeds thereof (other than in respect of such damages incurred or paid
by an Indemnitee to a third party).

     (e) All amounts due under this Section shall be payable promptly/not later than 10 days after
written demand therefor, together with reasonable detail and supporting documentation.

     (f) The provisions of this Section 9.03 shall remain operative and in full force and effect
regardless of the expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Loans, the expiration of the Commitments, the
expiration of any Letter of Credit, the invalidity or unenforceability of any term or provision of
this Agreement or any other Loan Document, or any investigation made by or on behalf of the
Administrative Agent, the Collateral Agent, any Lender or any Issuing Bank.

     SECTION 9.04. Successors and Assigns. (a) This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of any Issuing Bank that issues any Letter of Credit), except that (i) 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) and (ii) no Lender may assign or otherwise transfer
its rights or obligations hereunder except in accordance with this Section. 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 (including any Affiliate
of any Issuing Bank that issues any Letter of Credit), Participants (but only to the extent
expressly provided for in paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Issuing Banks and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

     (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, 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) with the prior
written consent (such consent not to be unreasonably withheld) of:

     (A) the Borrower, provided that no consent of the Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an
Event of Default has occurred and is continuing, any other assignee;

     (B) the Administrative Agent, and in the case of a Revolving Credit
Commitment, each of the Swingline Lenders; provided that no consent of the
Administrative Agent or the Swingline Lenders shall be required for an assignment
of all or any portion of a Term Loan to a Lender, an Affiliate of a Lender or an
Approved Fund; and

102

 

     (C) any Issuing Bank with LC Exposure; provided that no consent of the Issuing
Bank shall be required for an assignment of all or any portion of a Term Loan.

     (ii) Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender or an Affiliate of a
Lender or an assignment of the entire remaining amount of the assigning Lender’s
Commitment or Loans of any Class, the amount of the Commitment or Loans of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 or, in the case of a Term
Loan, $1,000,000 unless each of the Borrower and the Administrative Agent otherwise
consent, provided that no such consent of the Borrower shall be required if an
Event of Default has occurred and is continuing;

     (B) 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;
provided that this clause shall not be construed to prohibit the assignment of a
proportionate part of all the assigning Lender’s rights and obligations in respect
of one Class of Commitments or Loans;

     (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500;

     (D) the assignee, if it shall not already be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire in which the assignee
designates one or more credit contacts to whom all syndicate-level information
(which may contain material non-public information about the Borrower, the Loan
Parties and their related parties or their respective securities) will be made
available and who may receive such information in accordance with the assignee’s
compliance procedures and applicable laws, including Federal and state securities
laws; and

     (E) no assignment shall be permitted to (x) the Borrower or any of its
Subsidiaries or Affiliates without the approval of the Required Lenders or (y) a
natural person.

     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such

103

 

Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.16, 2.17, 2.18 and 9.03). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 9.04 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 (c) of this Section.

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

     (v) Upon its receipt of, and consent to, a duly completed Assignment and Assumption
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 and, if
required, the Borrower shall accept such Assignment and Assumption and record the
information contained therein in the Register; provided that if either the assigning Lender
or the assignee shall have failed to make any payment required to be made by it pursuant to
Section 2.04(c), 2.05(d), 2.05(e), 2.06(b), 2.19(d) or 9.03(c), the Administrative Agent
shall have no obligation to accept such Assignment and Assumption and record the information
therein in the Register unless and until such payment shall have been made in full, together
with all accrued interest thereon. No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this paragraph.

     (c) (i) Any Lender may, without the consent of the Borrower, the Administrative Agent, any
Issuing Bank or any Swingline Lender, 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 and the LC Disbursements owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the performance of such
obligations, (C) the participating banks or other Persons shall be entitled to the benefit of the
cost protection provisions contained in Sections 2.16, 2.17 and 2.18 to the same extent as if they
were Lenders (but, with respect to any particular participant, to no greater extent than the Lender
that sold the participation to such participant) and (D) the Borrower, the Administrative Agent,
the Issuing Banks 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

104

 

and the other Loan Documents and to approve any amendment, modification or waiver of any
provision of this Agreement and the other Loan Documents; 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 paragraph (c)(ii) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 2.16, 2.17 and 2.18 to the same
extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b)
of this Section. To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject
to Section 2.19(c) as though it were a Lender.

     (ii) A Participant shall not be entitled to receive any greater payment under Section
2.16 or 2.18 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 shall not be
entitled to the benefits of Section 2.18 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 2.18(f) as though it were a Lender.

     (iii) Each Lender that sells a participation shall, acting solely for this purpose as
an agent of the Borrower, maintain a register in the United States on which it enters the
name and address of each Participant and the principal amounts (and stated interest) of each
Participant’s interest in the Loans or other obligations under the Loan Documents (the
“Participant Register”); provided that no Lender shall have any obligation to disclose all
or any portion of the Participant register to any Person (including the identity of any
Participant or any information relating to a Participant’s interest in any commitments,
loans, letters of credit or its other obligations under any Loan Document) except to the
extent that such disclosure is necessary to establish that such commitment, loan, letter of
credit or other obligation is in registered form under Section 5f.103-1(c) of the United
States Treasury Regulations. The entries in the Participant Register shall be conclusive,
absent manifest error, and such Lender shall treat each person whose name is recorded in the
Participant Register as the owner of such participation for all purposes of this Agreement
notwithstanding any notice to the contrary.

     (d) 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 without limitation
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. Nothing herein shall prejudice the right of the Administrative Agent
or any Lender to give any notice or other communication pursuant to any Loan Document in any other
manner specified in such Loan Document. All covenants, agreements, representations and warranties
made by the Borrower and the Loan Parties herein, in the other Loan Documents 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

105

 

upon by the other parties hereto and shall survive the execution and delivery of this
Agreement and the Loan Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, any Issuing Bank 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,
and shall continue in full force and effect as long as the principal of or any accrued interest on
any Loan or LC Disbursement or any fee or any other amount payable under this Agreement or any Loan
Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not expired or terminated. The provisions of Sections 2.16, 2.17, 2.18 and 9.03
and Article 8 shall survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of any of the Loans, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent, the Collateral Agent, any Lender or
any Issuing Bank, the expiration or termination of the Letters of Credit and the Commitments or the
termination of this Agreement or any provision hereof.

     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 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 the Borrower 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, PDF or other
electronic format 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 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,
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, any other Loan Party
or any other Domestic Subsidiary that is a Restricted Subsidiary against any of and all the
obligations of the Loan Parties 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 or such
other Loan Document and although such obligations may be unmatured.

106

 

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
and the Loan Documents (except, as to any other Loan Document, as expressly set forth therein)
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 non-exclusive 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 this
Agreement or the other Loan Documents, 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, any Issuing Bank or any Lender may otherwise have
to bring any action or proceeding relating to this Agreement 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 the other
Loan Documents 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 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 LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS 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 AND THE OTHER DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

107

 

     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. (a) Each of the Administrative Agent, each Issuing Bank and
the Lenders (each, a “Recipient”) acknowledges that the Borrower considers the Information (as
defined below) to include confidential, sensitive or proprietary information and agrees to maintain
the confidentiality of the Information, except that Information may be disclosed (i) to such
Recipient’s and its Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (collectively, such Recipient’s “Representatives”) (provided that
such Representatives shall be informed by such Recipient of the confidential nature of such
information prior to the disclosure and shall be directed to treat such information in accordance
with the terms hereof, and each Recipient hereby agrees to be, and shall be, responsible for any
breach of the confidentiality provisions of this Section 9.12 by its Representatives), (ii) to the
extent requested in any legal, judicial, administrative proceeding or other compulsory process
(including for purposes of establishing a “due diligence” defense in connection with such
proceeding or process) or as required by applicable law or regulations, or upon the request or
demand of any regulatory authority having jurisdiction over such Recipient or its affiliates
(provided that, to the extent not prohibited by law or legal process, the disclosing Recipient will
notify the Borrower as soon as practical in the event of any such disclosure pursuant to this
clause (ii) (other than any disclosure made in the course of any examination conducted by a bank
regulatory authority)), (iii) to any other party to this Agreement, (iv) 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, (v) subject to a Confidentiality
Agreement executed (including in the form of a binding electronic “click-through” agreement) in
favor of the Borrower, to (A) any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or (B) any actual or
prospective counterparty (or its advisors) designated by the Loan Parties to any swap or derivative
transaction relating to the Borrower and its obligations, (vi) with the written consent of the
Borrower acting through a Financial Officer or (vii) to the extent such Information (A) becomes
publicly available other than as a result of a breach of this Section or (B) becomes available to
the Administrative Agent, any Issuing Bank 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, its Subsidiaries or its business, other than
any such information that is available to the Administrative Agent, the Issuing Bank or any Lender
on a nonconfidential basis prior to disclosure by the Borrower.

     (b) EACH LENDER ACKNOWLEDGES THAT INFORMATION (AS DEFINED IN SECTION 9.12(a)) FURNISHED TO IT
PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND
ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE
PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING
FEDERAL AND STATE

108

 

SECURITIES LAWS (AND IN ACCORDANCE WITH THE PROVISIONS OF CLAUSE (A) ABOVE).

     (c) ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER
OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER,
THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH
LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS
ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL
NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW(AND IN
ACCORDANCE WITH THE PROVISIONS OF CLAUSE (A) ABOVE).

     (d) The Administrative Agent shall, upon the written request of the Borrower (and in any case
no more frequently than once every thirty days) provide to the Borrower a list of financial
institutions or other entities that have accessed private-side Information on the IntraLinks site
established in connection with the Senior Credit Facilities (it being understood and agreed that
each such Person shall have executed (including by “click-through”) a Confidentiality Agreement).

     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 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.

     SECTION 9.14. 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 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 the 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

109

 

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 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, the Borrower
agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable
Creditor against such loss. The obligations of the Borrower contained in this Section 9.14 shall
survive the termination of this Agreement and the payment of all other amounts owing hereunder.

     SECTION 9.15. USA PATRIOT Act. Each Lender that is subject to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby
notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain,
verify and record information that identifies the Borrower, which information includes the name and
address of the Borrower and other information that will allow such Lender to identify the Borrower
in accordance with the Act.

     SECTION 9.16. Collateral Release and Recapture. (a) At such time as the Borrower has
achieved the Collateral Suspension Ratings Level and so long as no Event of Default shall have
occurred and be continuing, the Borrower shall have the right by written notice to the
Administrative Agent to require that the Collateral be released from any security interest created
by the Loan Documents. On any such date (the “Collateral Suspension Date”), all rights to the
Collateral shall transfer and revert to the relevant Loan Parties and all Liens and security
interests created by the Loan Documents shall automatically terminate. On any such Collateral
Suspension Date, the Borrower and each other Loan Party shall be authorized and the Collateral
Agent hereby authorizes the Borrower and each other Loan Party, to prepare and record UCC
termination statements, PTO termination of assignment filings, or other analogous documents and
filings with respect to any financing statements or collateral assignments recorded by the
Collateral Agent under the Collateral Documents. At the request and sole expense of the Borrower
following the Collateral Suspension Date, the Collateral Agent shall deliver to the Borrower any
Collateral (including certificates representing the Pledged Stock (as defined in the Guarantee and
Security Agreement)) held by the Collateral Agent pursuant to the Collateral Documents, and execute
and deliver to the Borrower such documents as the Borrower shall reasonably request to evidence
such termination, including without limitation, original executed releases of the Mortgages in
recordable form.

     (b) If on any subsequent date the Borrower fails to satisfy the Collateral Suspension Ratings
Level (such subsequent date, the “Collateral Reversion Date”), any Collateral that was released
from Liens securing the Secured Obligations, as well as any Collateral acquired since the
Collateral Suspension Date, will be restored and pledged to secure the Secured Obligations in
accordance with the Collateral Documents and Section 5.11. The period of time between the
Collateral Suspension Date and the Collateral Reversion Date is referred to herein as the
“Collateral Suspension Period.”

     SECTION 9.17. Collateral and Guaranty Release. Each Lender irrevocably authorizes the
Agents:

110

 

     (a) to release any Lien on any property granted to or held by the Administrative Agent or the
Collateral Agent under any Loan Document (i) upon termination of the Commitments and payment in
full of all Obligations (other than contingent indemnification obligations not yet due and payable)
and the expiration or termination of all Letters of Credit, (ii) that is disposed of or to be
disposed of to a Person other than a Loan Party as part of or in connection with any sale or other
transfer permitted hereunder or under any other Loan Document, or (iii) subject to Section 9.02, if
approved, authorized or ratified in writing by the Required Lenders;

     (b) to release any Guarantor from its obligations under the Guarantee and Security Agreement
if such Person ceases to be a Wholly Own Domestic Restricted Subsidiary as a result of a
transaction permitted hereunder; and

     (c) to subordinate any Lien on any property granted to or held by the Administrative Agent or
the Collateral Agent under any Loan Document to the holder of any Lien on such property that is
permitted by Section 6.02(i) and (p).

     In each case as specified in this Section 9.17, the Administrative Agent and Collateral Agent
will, at the Borrower’s expense, execute and deliver to the applicable Loan Party such documents as
such Loan Party may reasonably request to evidence the release of such item of Collateral from the
assignment and security interest granted under the Collateral Documents or to subordinate its
interest in such item, or to release such Guarantor from its obligations under the Guarantee and
Security Agreement, in each case in accordance with the terms of the Loan Documents and this
Section 9.17. In each case as specified in this Section 9.17, the Administrative Agent and
Collateral Agent will, at the Borrower’s expense, execute and deliver to the applicable Loan Party
such documents as such Loan Party may reasonably request to evidence the release of such item of
Collateral from the assignment, security interest and Lien granted under the Collateral Documents,
and, if applicable, return any possessory collateral or to release such Guarantor from its
obligations under the Guaranty, in each case in accordance with the terms of the Loan Documents and
this Section 9.17. In each case as specified in this Section 9.17, the Administrative Agent and
Collateral Agent hereby authorize the applicable Loan Parties to prepare and record UCC termination
statements, PTO termination of assignment filings, or other analogous documents and filings with
respect to any financing statements or collateral assignments recorded by the Collateral Agent
under the Collateral Documents.

     SECTION 9.18. Security Clearance. The Lenders, the Agents and the Issuing Banks acknowledge
that the Loan Parties and their Subsidiaries perform classified contracts funded by or for the
benefit of the United States Federal government and, accordingly, neither the Loan Parties nor
their Subsidiaries will release, disclose or otherwise make available to any Lender, any Agent or
any Issuing Bank any classified information or nuclear material in violation of any requirement of
law, including laws restricting release of such information or material to any parties not in
possession of a valid security clearance and authorized by the appropriate agency of the United
States Federal government to receive such information or material. The Lenders, the Agents and the
Issuing Banks acknowledge that in connection with any exercise of a right or remedy the United
States Federal government may remove classified information or government-issued property prior to
any remedial action which would give the Lenders, the Agents or the Issuing Banks access to or
control over such classified information or government-issued property. The Lenders, the Agents
and the Issuing Banks acknowledge that any exercise

111

 

of rights or remedies under the Loan Documents or applicable laws may be subject to the
federal National Industrial Security Program Operating Manual (“NISPOM”), including, without
limitation, the rules governing Foreign Ownership Control or Influence (as defined therein).
Notwithstanding any notice requirements or other obligations of the Loan Parties under this
Agreement, none of the Loan Parties or their Subsidiaries shall be required to furnish any
classified or other confidential information to the extent that furnishing such information would
not be permitted under applicable requirements of law (including, without limitation, the National
Industrial Security Program established by Executive Order 12829 for the protection of information
classified under, inter alia, the Atomic Energy Act of 1954 and the procedures set forth in NISPOM
and the Department of Energy security regulations, including, without limitation, the foreign
ownership, control or influence regulations under 48 CFR 904.70003, et seq.). Nothing in this
Section 9.18 shall relieve the Loan Parties and their Subsidiaries of the obligation pursuant to
Section 5.02 to furnish to the Administrative Agent written notice of any actual knowledge of the
Borrower of any development in connection with any classified contract that may have a material
adverse effect on the value of such contract to a Loan Party or Subsidiary, including but not
limited to notice of cancellation received by the Loan Parties or their Subsidiaries or allegation
of default with respect to such contract to the extent compliance with such specific notice
obligations is not prohibited by applicable law or regulation.

     SECTION 9.19. No Fiduciary Relationship. Each of the Loan Parties hereby acknowledges that
none of the Administrative Agent, the Lenders, the Issuing Banks or their Affiliates has any
fiduciary relationship with or duty to any Loan Party arising out of or in connection with this
Agreement, and the relationship between the Administrative Agent, the Lead Arrangers, the Lenders,
and the Issuing Banks or any of their Affiliates, on the one hand, and the Loan Parties, on the
other hand, in connection herewith is solely that of debtor and creditor.

[The remainder of this page has been left blank intentionally]

112

 

     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.

	 	 	 	 	 
	 	HUNTINGTON INGALLS INDUSTRIES, INC.

 	 
	 	By:  	/s/ Mark Rabinowitz
 	 
	 	 	Name:  	Mark Rabinowitz 	 
	 	 	Title:  	Treasurer 	 
	 
	 	JPMORGAN CHASE BANK,
 individually and as
Administrative Agent

 	 
	 	By:  	/s/ Matthew H. Massie
 	 
	 	 	Name:  	Matthew H. Massie 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Matthew H. Massie
 	 
	 	 	Name:  	Matthew H. Massie 	 
	 	 	Title:  	Managing Director 	 
	 
	 	CREDIT SUISSE A.G., CAYMAN ISLANDS BRANCH

 	 
	 	By:  	/s/ John D. Toronto
 	 
	 	 	Name:  	John D. Toronto 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Vipul Dhadda
 	 
	 	 	Name:  	Vipul Dhadda 	 
	 	 	Title:  	Associate 	 
	 
	 	THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By:  	/s/ L. Peter Yetman
 	 
	 	 	Name:  	L. Peter Yetman 	 
	 	 	Title:  	Director 	 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/ Scott Santa Cruz
 	 
	 	 	Name:  	Scott Santa Cruz 	 
	 	 	Title:  	Director 	 
	 
	 	BNP PARIBAS

 	 
	 	By:  	/s/ Rick Pace
 	 
	 	 	Name:  	Rick Pace 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Berangere Allen
 	 
	 	 	Name:  	Berangere Allen 	 
	 	 	Title:  	Director 	 
	 
	 	SUMITOMO MITSUI BANKING CORPORATION

 	 
	 	By:  	/s/ William Ginn
 	 
	 	 	Name:  	William Ginn 	 
	 	 	Title:  	Executive Officer 	 
	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Keith Cox
 	 
	 	 	Name:  	Keith Cox 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Kenneth Beck
 	 
	 	 	Name:  	Kenneth Beck 	 
	 	 	Title:  	Managing Director 	 
	 

113

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	/s/ John Matthews
 	 
	 	 	Name:  	John Matthews 	 
	 	 	Title:  	Director 	 

	 	 	 	 	 
	 	TD BANK, N.A.

 	 
	 	By:  	/s/ Marla Willner
 	 
	 	 	Name:  	Marla Willner 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Blake Malia
 	 
	 	 	Name:  	Blake Malia 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 	 
	 	By:  	/s/ Victor Pierzchalski
 	 
	 	 	Name:  	Victor Pierzchalski 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	MORGAN STANLEY BANK, N.A.

 	 
	 	By:  	/s/ Sheresse Clarke
 	 
	 	 	Name:  	Sheresse Clarke 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	BRANCH BANKING AND TRUST COMPANY

 	 
	 	By:  	/s/ Daniel T. Laurenzi
 	 
	 	 	Name:  	Daniel T. Laurenzi 	 
	 	 	Title:  	Vice President 	 
	 
	 	CAPITAL ONE LEVERAGE FINANCE CORP.

 	 
	 	By:  	/s/ Paul Dellova
 	 
	 	 	Name:  	Paul Dellova 	 
	 	 	Title:  	Senior Vice President 	 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Blake Arnett
 	 
	 	 	Name:  	Blake Arnett 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By:  	/s/ Michael J. Kingsley
 	 
	 	 	Name:  	Michael J. Kingsley 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	STATE STREET BANK AND TRUST COMPANY

 	 
	 	By:  	/s/ Juan G. Sierra
 	 
	 	 	Name:  	Juan G. Sierra 	 
	 	 	Title:  	Vice President 	 
	 
	 	TAIWAN BUSINESS BRANCH, L.A. BRANCH

 	 
	 	By:  	/s/ Alex Wang
 	 
	 	 	Name:  	Alex Wang 	 
	 	 	Title:  	S.V.P. & General Manager 	 
	 
	 	TAIWAN COOPERATIVE BANK SEATTLE BRANCH

 	 
	 	By:  	/s/ Ming-Chih Chen
 	 
	 	 	Name:  	Ming-Chih Chen 	 
	 	 	Title:  	VP & General Manager 	 
	 

114

 

Schedule 1.01A

Spin-off Transactions

     Capitalized terms used but not defined in this Schedule 1.01A have the respective meanings
ascribed to such terms in the Credit Agreement to which this Schedule 1.01A is attached.

     The transactions described in Steps 1 through 13 are referred to as the “Internal
Reorganization”. Steps 1 through 9 below are referred to as the “Pre-Contribution Internal
Reorganization”. For the avoidance of doubt, Steps 11 through 13 shall occur on the Funding Date
substantially concurrently with Step 10. The transactions described below have occurred or will
occur prior to the Spin-off in the following order:

	 	 	 

	Step 1:

	 	Current NGC Parent has formed (a) New NGC, (b) the Borrower, (c)
Titan Holdings I, LLC, a Delaware limited liability company
(“Holdings LLC”), (d) Titan Holdings II, L.P., a Delaware limited
partnership (“Holdings LP”), and (e) Titan Merger Sub Inc., a
Delaware corporation (“Merger Sub”). New NGC initially will own
all the stock of the Borrower, the sole membership interest in
Holdings LLC and the sole general partner interest in Holdings
LP. Holdings LLC will initially own the sole limited partner
interest in Holdings LP. Holdings LP will initially own all of
the stock of Merger Sub.
	 
	 	 
	Step 2:

	 	The Current NGC Parent will contribute to New NGC and the
Borrower (or one or more of their respective subsidiaries), as
allocated in accordance with the Distribution Agreement, all of
its assets other than the capital stock in the Main Shipbuilding
Subsidiary and Northrop Grumman Systems Corporation, a Delaware
corporation (“NGSC”), and New NGC and the Borrower will assume
all of the liabilities of the Current NGC Parent, as allocated in
accordance with the Distribution Agreement, except for the
Current NGC Parent’s obligations under the Amended and Restated
Credit Agreement, dated as of August 10, 2007, between the
Current NGC Parent, the lenders party thereto from time to time,
JPMorgan Chase Bank, N.A. and the other parties named therein
(the “NGC Credit Agreement”) and the Current NGC Parent’s
obligations under the Titan II Guarantees and the guarantee of
the GO-Zone Bonds (the “GO-Zone Bonds Guarantee”).
	 
	 	 
	Step 3:

	 	Each of the Main Shipbuilding Subsidiary’s subsidiaries will
distribute to the Main Shipbuilding Subsidiary all of the open
account debt owed to it by NGSC, if any. The Main Shipbuilding
Subsidiary will distribute to the Current NGC Parent all of the
open account debt owed to it by NGSC, including such debt
distributed to it by its Subsidiaries (all such debt, the
“Intercompany Debt Receivable”).
	 
	 	 
	Step 4:

	 	The Holding Company Merger will be consummated.
	 
	 	 
	Step 5:

	 	New NGC will contribute its membership interest in Holdings LLC
and its partnership interest in Holdings LP to the Borrower.

 

 

	 	 	 

	Step 6:

	 	The Current NGC Parent will distribute (the “NGC Distribution”)
to Holdings LP all of the Current NGC Parent’s assets (including
the stock of NGSC, the Main Shipbuilding Subsidiary and the
Intercompany Debt Receivable), and Holdings LP will assume all of
the Current NGC Parent’s liabilities and other obligations
(including the Current NGC Parent’s obligations under the NGC
Credit Agreement) except the Current NGC Parent’s obligations
under the Titan II Guarantees and the GO-Zone Bonds Guarantee.
	 
	 	 
	Step 7:

	 	Concurrent with the NGC Distribution, the Borrower will enter
into certain performance and indemnity agreements, forms of which
have been filed as Exhibits 10.13 and 10.14 to the Form 10
pursuant to which the Borrower will agree to perform all of the
Current NGC Parent’s obligations under the Titan II Guarantees
and the GO-Zone Bonds Guarantee and indemnify the Current NGC
Parent for any costs arising from such obligations.
	 
	 	 
	Step 8:

	 	Holdings LP will distribute to Holdings LLC, its limited partner,
and the Borrower, its general partner, all of the stock of the
Main Shipbuilding Subsidiary and the Current NGC Parent (the
“Holdings LP Distribution”).
	 
	 	 
	Step 9:

	 	Holdings LLC will distribute to the Borrower the shares of the
Current NGC Parent and the Main Shipbuilding Subsidiary that it
received in the Holdings LP Distribution.
	 
	 	 
	Step 10:

	 	The Borrower will receive the net cash proceeds from the Senior
Notes out of an escrow account to be maintained pursuant to the
Escrow and Security Agreement, dated as of March 11, 2011, among
HII, as grantor, Wells Fargo Bank National Association, as escrow
agent and financial institution, and The Bank of New York Mellon,
as trustee (the “Senior Notes Escrow”). In addition, the
Borrower will receive the net cash proceeds from the Term Loans.
$300 million of such net cash proceeds will be retained by the
Borrower (the “Retained Cash”). Such cash proceeds less the
Retained Cash are referred to as the “Transferred Debt Proceeds”.
	 
	 	 
	Step 11:

	 	The Borrower will contribute (a) to Holdings LLC a portion of the
Transferred Debt Proceeds equal to Holdings LLC’s proportionate
interest in Holdings LP (approximately $715 million) and (b) to
Holdings LP the remaining amount of the Transferred Debt Proceeds
(approximately $715 million).
	 
	 	 
	Step 12:

	 	Holdings LLC will contribute to Holdings LP the amount of the
Transferred Debt Proceeds contributed to it by the Borrower, and
Holdings LP will contribute to NGSC the entire amount of the
Transferred Debt Proceeds (such contributions, together with the
contributions in Step 11, the “Contribution”). Holdings LP will
also contribute to NGSC the entire amount of the Intercompany
Debt Receivable.
	 
	 	 
	Step 13:

	 	The Borrower will distribute all of its membership interest in
Holdings LLC and all of its partnership interest in Holdings LP
to New NGC.

2

 

After completion of the Internal Reorganization, New NGC will distribute to the holders of record
of the common stock, par value $1.00 per share, of New NGC as of the record date (which record date
will be the close of business on the date the Internal Reorganization is completed), on a pro rata
basis, all the outstanding shares of common stock, par value $.01 per share, of the Borrower owned
by New NGC on the date of such distribution.

3

 

Schedule 1.01B

Initial Mortgaged Real Properties

Gulf Coast

Mortgaged Property

PASCAGOULA

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in
Jackson County, MS

Exclusions

That certain land included in tax parcel 40408003.025 (the “Point Property”)
shall either be (a) excluded as part of the above referenced mortgaged
property, or (b) included, but subject to the right to release said Point
Property from the lien of the applicable deed of trust

GULFPORT

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in
Harrison County, MS

Newport News

Mortgaged Property

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in
Hampton, VA

all of the land owned by Northrop Grumman Shipbuilding, Inc. and improvements
located thereon in Newport News, VA

Exclusions

That certain land commonly known as 6801 Shipyard Drive, Newport News, VA
23607, which is leased to AREVA Newport News LLC (“Tenant”) shall be, subject
to the Collateral Agent being reasonably satisfied that the Lien on the
remaining property would not be adversely affected, excluded as part of the
above referenced mortgaged property

4

 

Schedule 2.01

Commitments

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	RevolvingCredit	 	 	Term Loan	 	 	 	 
	Lender	 	Commitment	 	 	Commitment	 	 	Total	 
	JPMorgan Chase Bank, N.A.
	 	$	87,551,020	 	 	$	77,448,980	 	 	$	165,000,000	 
	Credit Suisse AG, Cayman Islands
Branch
	 	 	87,551,020	 	 	 	77,448,980	 	 	 	165,000,000	 
	The Royal Bank of Scotland plc
	 	 	66,326,531	 	 	 	58,673,469	 	 	 	125,000,000	 
	Wells Fargo Bank, N.A.
	 	 	66,326,531	 	 	 	58,673,469	 	 	 	125,000,000	 
	BNP Paribas
	 	 	39,795,918	 	 	 	35,204,082	 	 	 	75,000,000	 
	Sumitomo Mitsui Banking
Corporation
	 	 	39,795,918	 	 	 	35,204,082	 	 	 	75,000,000	 
	SunTrust Bank
	 	 	39,795,918	 	 	 	35,204,082	 	 	 	75,000,000	 
	Bank of America, N.A.
	 	 	26,530,612	 	 	 	23,469,388	 	 	 	50,000,000	 
	The Bank of Nova Scotia
	 	 	26,530,612	 	 	 	23,469,388	 	 	 	50,000,000	 
	TD Bank, N.A.
	 	 	26,530,612	 	 	 	23,469,388	 	 	 	50,000,000	 
	U.S. Bank National Association
	 	 	26,530,612	 	 	 	23,469,388	 	 	 	50,000,000	 
	The Bank of Tokyo — Mitsubishi
UFJ, Ltd.
	 	 	19,897,959	 	 	 	17,602,041	 	 	 	37,500,000	 
	Morgan Stanley Bank, N.A.
	 	 	19,897,959	 	 	 	17,602,041	 	 	 	37,500,000	 
	Branch Banking and Trust
Company
	 	 	13,265,306	 	 	 	11,734,694	 	 	 	25,000,000	 
	Capital One Leverage Finance
Corp.
	 	 	13,265,306	 	 	 	11,734,694	 	 	 	25,000,000	 
	Comerica Bank
	 	 	13,265,306	 	 	 	11,734,694	 	 	 	25,000,000	 
	The Northern Trust Company
	 	 	13,265,306	 	 	 	11,734,694	 	 	 	25,000,000	 
	State Street Bank and Trust
Company
	 	 	13,265,306	 	 	 	11,734,694	 	 	 	25,000,000	 
	Taiwan Business Bank, L.A.
Branch
	 	 	5,306,122	 	 	 	4,693,878	 	 	 	10,000,000	 
	Taiwan Cooperative Bank Seattle
Branch
	 	 	5,306,122	 	 	 	4,693,878	 	 	 	10,000,000	 
	 
	 	 	 	 	 	 	 	 	 
	Total
	 	$	650,000,000	 	 	$	575,000,000	 	 	$	1,225,000,000	 
	 
	 	 	 	 	 	 	 	 	 

 

 

Schedule 2.05A

LC Commitments

	 	 	 
	Issuing Bank	 	LC Commitment
	JPMorgan Chase Bank, N.A.

	 	$350,000,000

 

 

Schedule 2.05B

Existing Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expiry Date	 	Issue Date	 	Issuing Bank	 	 	L/C Number	 	 	Beneficiary	 	Contract Amount
	12/31/2011

	 	7/15/2003
	 	Bank Of Nova Scotia
	 	 	95526/80085	 	 	U.S. Department of Labor
	 	 	17,000,000	 
	12/31/2011

	 	7/15/2003
	 	Bank Of Nova Scotia
	 	 	95527/80085	 	 	U.S. Department of Labor
	 	 	40,000,000	 
	10/31/2011

	 	11/1/2001
	 	Bayerische Landesbank
	 	 	0067/01	 	 	American Home Insurance
	 	 	15,000,000	 
	12/31/2011

	 	12/5/2002
	 	Bayerische Landesbank
	 	 	0123/02	 	 	Pacific Employers Insurance Co.
	 	 	50,000	 
	6/30/2011

	 	7/3/2002
	 	Bayerische Landesbank
	 	 	0081/02	 	 	National Fire Ins. Co. of Hartford
	 	 	3,200,000	 
	8/3/2011

	 	7/31/2002
	 	Bayerische Landesbank
	 	 	0085/02	 	 	American Home Assurance Company
	 	 	13,050,000	 
	4/1/2011

	 	2/6/2003
	 	JPMorgan Chase Bank
	 	 	LPLS-633197
	 	 	Majestic Insurance Co
	 	 	180,941	 
	6/30/2011

	 	12/12/2002
	 	Sumitomo Mitsui Banking
Corp
	 	 	432424	 	 	National Union Fire Insurance Company of Pittburgh
	 	 	12,000,000	 
	 
	4/5/2012

	 	4/5/2000
	 	Wells Fargo/Wachovia Bank
	 	 	412298	 	 	US Bank
	 	 	17,115,777.40	 

 

 

Schedule 3.05(f)

Owned Real Property1

Gulf Coast

Property

PASCAGOULA OWNED

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in
Jackson County, MS

GULFPORT OWNED

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in
Harrison County, MS

AVONDALE OWNED

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in
Jefferson Parrish, LA

CMSD OWNED

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in San
Diego County, CA

Newport News

Property Name

HAMPTON OWNED

all of the land owned by Borrower or any Restricted Subsidiary (including
Northrop Grumman Shipbuilding, Inc.) and improvements located thereon in
Hampton, VA

NEWPORT NEWS OWNED

all of the land owned by Northrop Grumman Shipbuilding, Inc. and improvements
located thereon in Newport News, VA

 

			
	1	 	Each of the above listed Owned Real Properties is
more fully described in those certain schedules previously disclosed to
Collateral Agent by Borrower, and which are currently on file with the
Collateral Agent.

2

 

Schedule 3.05(g)

Leased Real Property

Gulf Coast

	 	 	 	 	 	 	 
	Property Name	 	Address	 	Lessor	 	Lessee
	LEASED TRAILERS
	 	 	 	 	 	 
	Leased Trailers — Pascagoula

	 	1000 Access Road

Pascagoula, MS 39568	 	 	 	 
	 
	 	 	 	 	 	 
	Leased Trailers — Gulfport

	 	Gulfport, MS 39503	 	 	 	 
	 
	 	 	 	 	 	 
	Leased Trailers — Avondale

	 	5100 River Rd

Avondale, LA 70094	 	 	 	 
	 
	 	 	 	 	 	 
	PASCAGOULA LEASED SPACE
	 	 	 	 	 	 
	Singing River Island

	 	Singing River Island

Pascagoula, MS 39568
	 	Jackson County Board of
Supervisors, Jackson County
Port Authority
	 	Northrop Grumman Ship
Systems, Inc.
	 
	 	 	 	 	 	 
	Singing River Mall

	 	2800 US Highway 90,
Suite 5000
Gautier, MS 39553
	 	Stirling Properties, Inc.
	 	Northrop Grumman Ship
Systems, Inc.
	 
	 	 	 	 	 	 
	500-510 Krebs Ave

	 	500-510 Krebs Ave

Pascagoula, MS 39568
	 	American Bonded Storage
	 	Northrop Grumman Ship
Systems, Inc.
	 
	 	 	 	 	 	 
	Singing River Mall Variety

	 	2800 Highway 90,
Suite 1080 and 1234
Gautier, MS 39553
	 	Stirling Properties, Inc.
	 	Northrop Grumman Ship
Systems, Inc.
	 
	 	 	 	 	 	 
	1126 Jackson Avenue

	 	1126 Jackson Street Avenue

Pascagoula, MS 39568
	 	First Corporate Center, LLC, as
successor-in-interest to Arcata
2 Properties, LLC and Millette
and Associates
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	4908 Chicot Rd

	 	4908 Chicot Rd

Pascagoula, MS 39568
	 	Dantzler Family, LLC
	 	Northrop Grumman Ship
Systems, Inc.
	 
	 	 	 	 	 	 
	2614 Telephone Rd

	 	2614 Telephone Rd

Bldg F Unit A

Pascagoula, MS 39568
	 	Dantzler Family, LLC
	 	Northrop Grumman Ship
Systems, Inc.
	 
	 	 	 	 	 	 
	2810 Louise Street

	 	2810 Louise Street

Pascagoula, MS 39568
	 	Misty Meadows Farm Corporation
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	2614 Telephone Ave

	 	2614 Telephone Ave

Bldg F Units B, C & E

Pascagoula, MS 39568
	 	Dantzler Family, LLC
	 	Northrop Grumman Ship
Systems, Inc.
	 
	 	 	 	 	 	 
	Kmart Building, 3943 Denny Ave.

	 	3943 Denny Ave

Pascagoula, MS 39568
	 	LSAC Pascagoula L.P. (assigned
by 2003 Pascagoula Associates,
LLC)
	 	Northrop Grumman

Systems Corporation

3

 

	 	 	 	 	 	 	 
	Property Name	 	Address	 	Lessor	 	Lessee
	PASCAGOULA LEASED LAND
	 	 	 	 	 	 
	West Bank

	 	Pascagoula, MS 39568
	 	Jackson County Port Authority,
and the Mississippi Development
Authority, as
successor-in-interest to
Mississippi Agricultural and
Industrial Board
	 	Northrop Grumman Ship
Systems, Inc, as
successor-in-interest
to Ingalls
Shipbuilding
Corporation
	 
	 	 	 	 	 	 
	Parking Lot to Kmart Building,
3943 Denny Ave

	 	3943 Denny Ave

Pascagoula, MS 39568
	 	Phillip’s Distributor’s Inc.
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	WASHINGTON LEASED
	 	 	 	 	 	 
	300 M Street

	 	300 M Street

Washington, DC 20003
	 	Federal Center Limited

Partnership
	 	NG Mission Systems
(shared with Northrop
Grumman Shipbuilding,
Inc.)
	 
	 	 	 	 	 	 
	AVONDALE LEASED SPACE
	 	 	 	 	 	 
	5100 River Road — UNO

	 	5100 River Road

Avondale, LA 70094
	 	University of New Orleans
Research and Technology
Foundation, Inc.
	 	Avondale Industries,
Inc.
	 
	 	 	 	 	 	 
	1420 Sams Avenue

	 	1420 Sams Avenue

Harahan, LA 70003
	 	Four Star Harahan, LLC
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	AVONDALE LEASED LAND
	 	 	 	 	 	 
	5100 River Rd — Marrero

	 	5100 River Rd

Avondale, LA 70094
	 	The Marrero Land and
Improvement Association,
Limited
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	5100 River Rd — Union Pacific

	 	5100 River Rd

Avondale, LA 70094
	 	Texas and New Orleans Railroad
Company, predecessor in title
to Southern Pacific Company
	 	Avondale Marine Ways,
Inc., predecessor in
title to Avondale
Shipyards, Inc.
	 
	 	 	 	 	 	 
	LA 18 — Marrero

	 	5201 Westbank Expressway

Marrero, LA 70094
	 	The Marrero Land and
Improvement Association,
Limited
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	5100 River Rd — Entergy

	 	5100 River Rd

Avondale, LA 70094
	 	Louisiana Power & Light Company
	 	Avondale Industries,
Inc.

4

 

	 	 	 	 	 	 	 
	Property Name	 	Address	 	Lessor	 	Lessee
	Bridge City Parking Lot

	 	Avondale

Marrero, LA 70072
	 	The Marrero Land and
Improvement Association,
Limited
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	5100 River Rd — Robinson Track

	 	5100 River Road

Avondale, LA 70094
	 	Robert A. Robinson
	 	Avondale Shipyards,
Inc.
	 
	 	 	 	 	 	 
	CMD LEASED LAND
	 	 	 	 	 	 
	Continental Maritime

	 	1995 Bayfront Street

San Diego, CA 71282
	 	San Diego Unified Port District
	 	Continental Maritime
of San Diego, Inc.
	 
	 	 	 	 	 	 
	AMSEC LEASED SPACE
	 	 	 	 	 	 
	Werner Road Facility

	 	5780 West Werner Road

Bremerton, WA 98312
	 	Schourup LLC
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Hawaii Warehouse

	 	3060 Ualena St.
(includes, Warehouse Unit
3050C, Bay A, Bay A-1,
and Unit 3060B) Honolulu,
HI
	 	Taihook Associates
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Hawaii Office

	 	3375 Koapaka Street,
Suite B200
Honolulu, HI 96819
	 	AIPA Properties, L.L.C.
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Mayport Florida Office

	 	2920 Mayport Road

Jacksonville, FL 32233
	 	Inlere, Inc.
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	NY Office

	 	112 34th Street

New York, NY 10020
	 	112 West 34th St, LLC
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Scoop Warehouse

	 	6701 College Avenue

(Suites 155, 155A, 180A &

190)

Suffolk, VA 23435
	 	Ashley Bridgeway, LLC
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Virginia Beach Corporate 

Headquarters

	 	2829 Guardian Lane

Virginia Beach, VA 23452
	 	Campus Point Realty Corporation
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Net Center Office

	 	5200 Mercury Blvd

Hampton, VA 23605
	 	NetCenter Partners, LLC, as
successor to Sans Holding
Corporation
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	CVN 77 — 78

	 	6701 College Avenue,
Suite 170
Suffolk, VA 23435
	 	Ashley Bridgeway, LLC
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Woodlake Warehouse

	 	550 Woodlake Drive

Chesapeake, VA 23320
	 	Woodlake LLC
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Suffolk 045 Facility NGSB

	 	6701 College Avenue
(Suite 160)
Suffolk, VA 23435
	 	Ashley Bridgeway, LLC
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	045FES Suffolk Warehouse

	 	1 College Drive (Suite

185)

Suffolk, VA 23435
	 	Ashley Bridgeway
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Norfolk sublease

	 	7437 Central Business

Park Drive

Norfolk, CT 23513
	 	Delphinus Engineering, Inc.
	 	AMSEC LLC

5

 

	 	 	 	 	 	 	 
	Property Name	 	Address	 	Lessor	 	Lessee
	Philadelphia Office 1st lease

	 	4900 S. Broad Street,
Philadelphia, PA 19112
	 	4900 S. Broad St.
Associates-Tenant, L.P.
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	Philadelphia Office lease 

number 2

	 	4900 S. Broad Street,
Philadelphia, PA 19112
	 	4900 S. Broad St.
Associates-Tenant, L.P.
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	New Hampshire Office

	 	One New Hampshire Avenue

Portsmouth, NH 23709
	 	IOS Business Centers
	 	AMSEC LLC
	 
	 	 	 	 	 	 
	National City Warehouse

	 	131 W. 33rd Street
National City, CA 91950
	 	RIF IV — West 33rd
Street, LLC
	 	AMSEC LLC

NEWPORT NEWS

	 	 	 	 	 	 	 

	LEASED OFFICES
	 	 	 	 	 	 
	Building 901 (VSS Building)

	 	2800 Washington Avenue

Newport News, VA 23607
	 	Economic
Development
Authority of the
City of Newport
News, Virginia
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	Building 902 (Sears Building)

	 	2700 Huntington Avenue

Newport News, VA 23607
	 	Economic
Development
Authority of the
City of Newport
News, Virginia
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	Building 903 (Eng Bldg)

	 	300 29th Street

Newport News, VA 23607
	 	Economic
Development
Authority of the
City of Newport
News, Virginia
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	Building 903 — 1st Floor

	 	300 29th Street (Units 4 and 5)
Newport News, VA 23607
	 	Economic
Development
Authority of the
City of Newport
News, Virginia
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	Building 802-NetCenter-RPPY & IIS

	 	5200 W. Mercury Boulevard
Hampton, VA 23605
	 	NetCenter HH, LLC
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	Building 802-NetCenter-8th Quadrant

	 	5200 W. Mercury Boulevard
Hampton, VA 23605
	 	NetCenter HH, LLC
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	Building 802-NetCenter-CATIA Training

	 	5200 W. Mercury (Suite 195) Boulevard
Hampton, VA 23605
	 	NetCenter HH, LLC
	 	Newport News
Shipbuilding and Dry
Dock Company

6

 

	 	 	 	 	 	 	 

	1715 Pratt Dr, Ste#1300, Blacksburg, VA

	 	1715 Pratt Drive

Blacksburg, VA 24060
	 	Virginia Tech
Corporate Research
Center, Inc.
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	Rouse Tower, 10th & 11th Flrs

	 	6060 Jefferson Avenue

Newport News, VA 23605
	 	Economic
Development
Authority of the
City of Newport
News, Virginia
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	WAREHOUSES
	 	 	 	 	 	 
	ALRE, 814 Maxwell Ave

	 	814 Maxwell Drive

Hampton, VA 23661
	 	Tidewater Warehouse
Associates, L.L.C.
	 	Northrop Grumman
Shipbuilding, Inc.
	 
	 	 	 	 	 	 
	MDC, 2175 Aluminum Ave, Bldg B

	 	2175 Aluminum Avenue

Hampton, VA 23661
	 	BEH BLD LC (f/k/a

BEH LC)
	 	Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	PRODUCTION FACILITIES
	 	 	 	 	 	 
	Building 861, 505 Howmet Dr

	 	505 Howmet Drive

Hampton, VA 23661
	 	Lamar Investments
	 	Northrop Grumman
Shipbuilding, Inc.,
as
successor-in-interest
to Newport News
Shipbuilding and Dry
Dock Company
	 
	 	 	 	 	 	 
	NNS AS ADMINISTRATOR
	 	 	 	 	 	 
	NNI Main Office, Bldg #906

	 	182 Enterprise Drive

Newport News, VA 23603
	 	Newport News
Shipbuilding and
Dry Dock Company
	 	Newport News

Industrial

Corporation
	 
	 	 	 	 	 	 
	NNI 220 Pickets Line

	 	220 Picketts Line

Newport News, VA 23603
	 	Susquehanna

Stewart, LLP
	 	Newport News

Industrial

Corporation
	 
	 	 	 	 	 	 
	NNI Swisslog Building

	 	161 Enterprise Drive

Newport News, VA 23603
	 	Swisslog Logistics,
Inc.
	 	Newport News

Industrial

Corporation
	 
	 	 	 	 	 	 
	LEASED TRAILERS
	 	 	 	 	 	 
	Leased Trailers — Newport News

	 	4101 Washington Avenue

Newport News, VA 23607	 	 	 	 
	 
	 	 	 	 	 	 
	LAND LEASES
	 	 	 	 	 	 
	AREVA Newport News, LLC

	 	6801 Shipyard Drive

Newport News, VA 23607
	 	Northrop Grumman
Shipbuilding, Inc.
	 	AREVA Newport News,

LLC
	 
	 	 	 	 	 	 
	SUB-LEASES
	 	 	 	 	 	 
	Rouse Tower, 10th Flr

	 	6060 Jefferson Avenue

Newport News, VA 23605
	 	Northrop Grumman
Shipbuilding, Inc.
	 	AREVA Newport News,

LLC

7

 

Schedule 3.06

Disclosed Matters

None.

8

 

Schedule 3.14

Subsidiaries

None

Restricted
Subsidiaries (as of the Funding
Date)2

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of	 
	 	 	 	 	Ownership	 
	Company	 	Holder	 	Interests	 
	Northrop Grumman
Shipbuilding, Inc.
	 	Huntington Ingalls Industries, Inc.	 	 	100	%
	Newport News Energy
Company
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Newport News Reactor Services, Inc.
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Newport News Industrial Corporation
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Newport News Nuclear Inc.
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Newport News Shipbuilding and Dry Dock Company
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Ingalls Shipbuilding, Inc.
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Northrop Grumman Ship Systems International, Inc.
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Continental Maritime of San Diego, Inc.
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	Fleet Services Holding Corp.
	 	Northrop Grumman Shipbuilding, Inc.	 	 	100	%
	AMSEC LLC
	 	Fleet Services Holding Corp.	 	 	100	%

 

			
	2	 	These entities are not Subsidiaries of Huntington Ingalls
Industries, Inc. as of the Effective Date.

9

 

Unrestricted Subsidiaries

	 	 	 	 	 	 	 
	 	 	 	 	Percentage of
	 	 	 	 	Ownership
	Company	 	Holder	 	Interests
	Ascension
Holding Company, LLC
	 	Northrop Grumman Shipbuilding, Inc.	 	 	50.7	%
	Northrop
Grumman Corporation
	 	Huntington Ingalls Industries Inc.4	 	 	100	%

 

			
	3	 	These entities are not Subsidiaries of Huntington Ingalls
Industries, Inc. as of the Effective Date.
	 
	4	 	Holder as of the consummation of the transactions described in Schedule 1.01A.

10

 

Schedule 6.01

Existing Indebtedness

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debtor	 	Creditor	 	Principal Amount	 	Date of Note	 	Maturity Date
	Newport News Shipbuilding Inc.5
	 	Northrop Grumman Systems Corporation	 	$	407,995,838.04	 	 	 	02/22/2002	 	 	On Demand
	Newport News Shipbuilding Inc.6
	 	Northrop Grumman Corporation	 	$	128,676,275.30	 	 	 	11/30/2001	 	 	On Demand
	Northrop Grumman Shipbuilding Inc.7
	 	Northrop Grumman Systems Corporation	 	$	178,395,000.00	 	 	 	12/02/2010	 	 	On Demand
	Northrop Grumman Ship Systems, Inc.
	 	Mississippi Business Finance Corporation	 	$	21,605,000.00	 	 	 	12/01/2006	 	 	12/01/2028
	Ingalls Shipbuilding, Inc
	 	Mississippi Business Finance Corporation	 	$	83,700,000.00	 	 	 	05/01/1999	 	 	05/01/2024
	Huntington Ingalls Industries, Inc.8
	 	Northrop Grumman Systems Corporation	 	Up to $60,000,000	 	 	 	N/A	 	 	(To be paid upon release of funds from Senior Notes Escrow.)

Indebtedness in Respect of Existing Letters of Credit (see Schedule 2.05B)

 

			
	5	 	Note will be settled prior to Step 3 of the Internal Reorganization described in Section 1.01A.
	 
	6	 	Note will be settled prior to Step 3 of the Internal Reorganization described in Section 1.01A.
	 
	7	 	Note will be settled prior to Step 3 of the Internal Reorganization described in Section 1.01A.
	 
	8	 	Note will be settled in connection with Step 10 of the Internal Reorganization described in Section 1.01A.

11

 

Schedule 6.02

Existing Liens

None.

12

 

Schedule 6.06

Existing Agreements

None.

 

 

Schedule 6.07

Permitted Transactions with Affiliates

On or prior to the Spin-Off Date, agreements and transactions among the Restricted Companies,
Northrop Grumman and the Northrop Grumman Retained Subsidiaries.

14

 

EXHIBIT
A

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

          This Huntington Ingalls Industries, Inc. Assignment and Assumption Agreement (the
“Assignment and Assumption”) is dated as of the Effective Date set forth below and is
entered into by and among each of the Persons identified on the signature pages hereto as an
Assignor (each, an “Assignor” and collectively, the “Assignors”) and JPMorgan Chase Bank, N.A. (the
“Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them
in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a
copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a
part of this Assignment and Assumption as if set forth herein in full.

          For an agreed consideration, each Assignor hereby irrevocably sells and assigns to the
Assignee as described below, and the Assignee hereby irrevocably purchases and assumes from the
applicable Assignor, subject to and in accordance with the Standard Terms and Conditions and the
Credit Agreement, as of the Effective Date, (i) all of the applicable Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and/or percentage
interest identified below of the applicable Assignor’s outstanding rights and obligations under the
respective facilities identified below (including any letters of credit, guarantees and swingline
loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable
law, all claims (including contract claims, tort claims, malpractice claims, statutory claims and
all other claims at law or in equity), suits, causes of action and any other right of the
applicable Assignor (in its capacity as a Lender) against any Person, whether known or unknown,
arising under or in connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any way based on or
related to any of the foregoing (the rights and obligations sold and assigned pursuant to clauses
(i) and (ii) above are in each case hereinafter referred to as an “Assigned Interest”).
Such sale and assignment is without recourse to any of the Assignors and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by any of the
Assignors.

A-1

 

	 	 	 	 	 

	1.

	 	Borrower:
	 	Huntington Ingalls Industries, Inc.
	 
	 	 	 	 
	2.

	 	Administrative Agent:
	 	JPMorgan Chase Bank, N.A., as the
Administrative Agent under the Credit
Agreement
	 
	 	 	 	 
	3.

	 	Credit Agreement:
	 	Credit Agreement dated as of February
[•], 2011 among Huntington Ingalls
Industries, Inc., the Lenders party
thereto, and JPMorgan Chase Bank, N.A., as
Administrative Agent, an Issuing Bank and a
Swingline Lender, and Credit Suisse AG, as
Swingline Lender
	 
	 	 	 	 
	4.

	 	Assigned Interests:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Aggregate Amount	 	 	 	 	 	 	Percentage	 
	 	 	 	 	 	 	 	 	 	 	 	 	of	 	 	Amount of	 	 	Assigned of	 
	 	 	 	 	 	 	 	 	Facility	 	 	Commitment/Loans	 	 	Commitment/Loans	 	 	Commitment/	 
	 	 	Assignors	 	Assignees	 	 	Assigned	 	 	for all Lenders	 	 	Assigned	 	 	Loans1	 
	1.
	 	[LENDER]	 	 	[•]	 	 	 	[•]	 	 	$	 	 	 	$	 	 	 	 	%	 
	2.
	 	[LENDER]	 	 	[•]	 	 	 	[•]	 	 	$	 	 	 	$	 	 	 	 	%	 
	3.
	 	[LENDER]	 	 	[•]	 	 	 	[•]	 	 	$	 	 	 	$	 	 	 	 	%	 
	4.
	 	[LENDER]	 	 	[•]	 	 	 	[•]	 	 	$	 	 	 	$	 	 	 	 	%	 
	5.
	 	[LENDER]	 	 	[•]	 	 	 	[•]	 	 	$	 	 	 	$	 	 	 	 	%	 

     6.      Effective Date: [__________] [___], 20[__]2

The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire
in which the Assignee designates one or more credit contacts to whom all syndicate-level
information (which may contain material non-public information about the Borrower, the Loan Parties
and their Related Parties or their respective securities) will be made available and who may
receive such information in accordance with the Assignee’s compliance procedures and applicable
laws, including Federal and state securities laws.

 

			
	1	 	Set forth, to at least 9 decimals, as a
percentage of the Commitments/Loans of all Lenders thereunder.
	 
	2	 	To be inserted by Administrative Agent and
which shall be the Effective Date of recordation of transfer in the Register
therefor.

A-2

 

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

	 	 	 	 	 	 	 

	 

	 	 	 	 	, 	as
	 	 	 	 	 
	 	 	Assignor,
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	, 	as
	 	 	 	 	 
	 	 	Assignee,
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

A-3

 

	 	 	 	 	 

	[Consented to and]3 Accepted:	 	 
	 
	 	 	 	 
	[ADMINISTRATIVE AGENT], as 

Administrative Agent	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	[Consented to:	 	 
	 
	 	 	 	 
	[BORROWER]	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title: ]4	 	 
	 
	 	 	 	 
	[Consented to:	 	 
	 
	 	 	 	 
	[ISSUING BANK]	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title: ]5	 	 

 

			
	3	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	4	 	To be added only if the consent of the
Borrower is required by the terms of the Credit Agreement.
	 
	5	 	To be added only if the consent of the
Issuing Bank is required by the terms of the Credit Agreement.

A-4

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION AGREEMENT

	1.	 	Representations and Warranties.

	 	1.1.	 	Assignors. Each Assignor represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interests transferred by it hereunder, (ii) each Assigned
Interest transferred by it hereunder is free and clear of any lien, encumbrance or other
adverse claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions by it contemplated hereby. Neither any Assignor nor any of its officers,
directors, employees, agents or attorneys shall be responsible for (i) any statements,
warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the
financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other
Person obligated in respect of any Loan Document or (iv) the performance or observance by
the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their
respective obligations under any Loan Document.
	 
	 	1.2.	 	Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment
and Assumption and to consummate the transactions contemplated hereby and to become a
Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in
the Credit Agreement that are required to be satisfied by it in order to acquire the
Assigned Interests and become a Lender, (iii) from and after the Effective Date, it shall
be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the
extent of the Assigned Interests acquired by it hereunder, shall have the obligations of a
Lender thereunder, and (iv) it has received a copy of the Credit Agreement, together with
copies of the most recent financial statements delivered pursuant to Section 6.01 thereof,
as applicable, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Assignment and Assumption and
to purchase the Assigned Interests acquired by it hereunder on the basis of which it has
made such analysis and decision independently and without reliance on the Administrative
Agent or any other Lender and (v) if it is a Foreign Lender, attached to the Assignment and
Assumption is any documentation required to be delivered by it pursuant to [Section
2.18(f)], duly completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignors or any other
Lender, and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action under the
Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as
a Lender.

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

A-5

 

	 	 	Effective Date and to the Assignee for amounts which have accrued from and after the Effective
Date.

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

A-6

 

EXHIBIT B

FORM OF BORROWING REQUEST

JPMorgan Chase Bank, N.A., as Administrative Agent

      for the Lenders referred to below,

270 Park Avenue

New York, New York 10017

Attention of [  ]

[Date]1

Ladies and Gentlemen:

     This Borrowing Request is delivered pursuant to the Credit Agreement dated as of March [  ],
2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among Huntington Ingalls Industries, Inc., the Lenders from time to time party thereto,
JPMorgan Chase Bank, N.A., as Administrative Agent, an Issuing Bank and a Swingline Lender, and
Credit Suisse AG, as Swingline Lender. Terms used herein and not defined have the meanings
assigned to them in the Credit Agreement.

     The Borrower hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that it
requests a Borrowing under the Credit Agreement as follows:

	 	 	 	 	 

	     1.

	 	Aggregate Amount of Borrowing2
	 	$__________________.
	 
	 	 	 	 
	     2.

	 	Date of Borrowing
	 	_____________, 20___.
	 

	 	(which is a Business Day)	 	 
	 
	 	 	 	 
	     3.

	 	Type of Borrowing3
	 	___________________.
	 
	 	 	 	 
	     4.

	 	Interest Period4
	 	___________________.

     The Borrower certifies that on and as of the date of the proposed Borrowing:

 

			
	1	 	Must be notified by telephone no later than
12:00 noon, New York City time, in the case of Eurodollar Borrowings, three
Business Days before, and in the case of the ABR Borrowings, one Business Day
before the date of the proposed Borrowing and confirmed promptly by written
Borrowing Request; provided that any such notice of an ABR Revolving Borrowing
to finance the reimbursement of an LC Disbursement as contemplated by Section
2.05(e) of the Credit Agreement may be given not later than 10 a.m., New York
City time, on the date of the proposed Borrowing.
	 
	2	 	Eurodollar Revolving Borrowings must be in an
aggregate amount not less than $2,000,000 and in an integral multiple of
$500,000. ABR Revolving Borrowings must be in an aggregate amount not less than
$2,000,000 and in an integral multiple of $500,000; provided that an ABR
Revolving Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments or that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.05(e) of the
Credit Agreement.
	 
	3	 	Specify Term Borrowing or Revolving Borrowing
and ABR Borrowing or Eurodollar Borrowing.
	 
	4	 	Applicable only to Eurodollar Borrowings, and
subject to the definition of “Interest Period” and Section 2.02 of the Credit
Agreement.

B-1

 

     (i) the representations and warranties of the Borrower set forth in the Credit Agreement shall
be true and correct in all material respects (except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and correct in
all material respects as of such earlier date); and

     (ii) at the time of and immediately after giving effect to such proposed Borrowing, no Default
or Event of Default shall have occurred and be continuing.

	 	 	 	 	 
	 	HUNTINGTON INGALLS INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-2

 

EXHIBIT C

For Bank use only, insert Applicant’s name:

_________________________

CONTINUING AGREEMENT FOR

COMMERCIAL & STANDBY LETTERS OF CREDIT

To induce [Issuing Bank] and/or any of its subsidiaries or affiliates (individually and
collectively, “Bank”), in its sole discretion, to issue one or more standby or commercial letters
of credit or other independent undertakings from time to time at the request of the undersigned
(“Applicant”), Applicant agrees as follows, including as to each such letter of credit or other
independent undertaking (together with any extensions or modifications, each a “Credit”):

1. Definitions. Capitalized terms used but not defined herein shall have the meanings assigned to
such terms in the Credit Agreement (as defined below). The following terms shall have the meanings
set forth below, unless the context requires otherwise:

“Agreement” means this Continuing Agreement for Commercial & Standby Letters of Credit, as amended,
supplemented or otherwise modified from time to time.

“Application” means a request to issue a Credit in the form of Exhibit A — Application for
Irrevocable Standby Letter of Credit or Exhibit B — Application for Irrevocable Commercial Letter
of Credit or a request to amend a Credit in the form of Exhibit C — Application for Amendment
hereto.

“Credit Agreement” means the Credit Agreement (as amended, extended, restated or otherwise modified
from time to time) dated as of March __, 2011 among Huntington Ingalls Industries, Inc., the
Lenders party thereto, JPMorgan Chase Bank, N.A. as Administrative Agent, Issuing Bank and
Swingline Lender, and Credit Suisse AG, as Swingline Lender.

“Drawing Document” means any document presented for purposes of drawing under a Credit (including
any draft or other demand or request for honor of a Credit).

“Instructions” means any inquiries, communications or instructions (whether oral, telephonic,
written, facsimile, electronic or other) regarding a Credit, an Application or this Agreement (and
the term “Application” is subsumed within the term “Instructions”).

“LOI” means a steamship guarantee, release or letter of indemnity in favor of a carrier issued by
Bank upon Instruction of Applicant.

2. Applications/Instructions. Each Application shall be irrevocable and in such form as Bank shall
from time to time require (including any type of electronic form or means of communication);
provided that the form of application set forth as Exhibit A and Exhibit B, as applicable,
shall be acceptable to Bank. Bank’s records of the content of any Instruction shall be conclusive
absent manifest error. Applicant’s ultimate responsibility for the final text of each Credit shall
not be affected by any assistance Bank may provide, such as by drafting or recommending text.

3. Payment Terms; Obligations Absolute. (a) For each Credit, Applicant shall pay to the
Administrative Agent for the account of Bank: (i) the amount of each drawing paid by Bank under
such Credit, in accordance with Section 2.05(e) of the Credit Agreement; (ii) commissions, fees and
charges in respect of such Credit, in accordance with in Section 2.13(b) of the Credit Agreement;
(iii) interest in accordance with Section 2.05(h) of the Credit Agreement; and (iv) Bank’s charges,
costs and expenses, in accordance with Section 9.03(a) of the Credit Agreement.

(b) If the amount drawn under any Credit is in a Designated Foreign Currency, Applicant shall pay
under Section 3(a)(i) the US Dollar Equivalent of such amount, in accordance with Section 2.05(e)
of the Credit Agreement.

(c) Applicant’s payment obligations under this Section 3 are absolute, unconditional and
irrevocable under any and all circumstances whatsoever, as provided in Section 2.05(f) of the
Credit Agreement.

4. Additional Provisions Applicable to Commercial Credits.

(a) Transport Documents and LOIs. If Bank issues a LOI or endorses a bill of lading at the
Instruction of Applicant, then: (i) except as may be otherwise set forth herein, such LOI shall be
deemed issued by Bank subject to the same terms and conditions set forth herein for Credits
(including payment obligations,
indemnification provisions and limitations of liability); (ii) Applicant shall be liable for any
payment made under such LOI on demand; (iii) Bank shall have the right in its sole discretion and
without notice to or approval of Applicant, to pay, settle or adjust any claim or demand made
against or upon Bank in connection therewith without inquiry or determination, on Bank’s part, of
the

C-1

 

 circumstances, merits or validity of such claim or demand; (iv) Applicant shall take whatever
steps are reasonably necessary to obtain the shipping documents relating to such LOI; (v) promptly
following Applicant’s receipt of such shipping documents, Applicant shall deliver them to the
carrier, duly endorsed by all parties whose endorsement is required by the carrier, and obtain from
the carrier and deliver to Bank, the LOI and a release of Bank’s liability to the carrier; (vi)
Bank is hereby authorized to honor any drawing under the Credit related to such LOI, whether or not
the drawing complies with the terms and conditions of such Credit; and (vii) Applicant acknowledges
that it may be required to reimburse Bank for payments made by Bank under both such LOI and the
Credit related to such LOI.).

(b) Absence of Written Instructions. In the absence of written instructions to the contrary,
Applicant agrees that (a) if any commercial Credit authorizes drawings and/or shipments in
installments and any installment is not drawn and/or shipped within the period allowed for that
installment but Applicant waives such discrepancy, Bank is authorized to honor any subsequent
installments so long as documents for such installments are presented within the period allowed for
such installments; and (b) each negotiation Credit shall expire at the counters of the nominated
person even if notice of the presentation or any documents contained in the presentation is not
received by Bank until after the expiry date of such Credit or any installment thereof.

(c) Pledge and Assignment of Security. As security for the payment and performance of all
obligations and liabilities of Applicant to Bank in respect of any commercial Credit or any related
LOI issued hereunder (if any) and under this Agreement, Applicant hereby grants to Bank a
continuing lien and security interest in all of Applicant’s right, title and interest in, to and
under all Property, including any goods and documents which have been or at any time shall be
delivered to, received by or otherwise come into the possession or control of Bank, its
correspondents or Applicant in connection with such Credit. As used herein, “Property” means, in
respect of any commercial Credit, any and all right, title and interest of Applicant in any goods
and documents relating to or presented under such Credit, and any identifiable proceeds thereof.

5. Covenants. Applicant shall comply with all foreign and domestic laws, rules and regulations
(including the USA Patriot Act, foreign exchange control regulations, foreign asset control
regulations and other trade-related regulations) now or hereafter applicable to each Credit, the
transactions underlying such Credit or Applicant’s execution, delivery and performance of this
Agreement, except where the failure to do so, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Effect.

6. Remedies. If any Event of Default as defined in the Credit Agreement shall have occurred and be
continuing, in addition to the remedies specified therein, Bank may require Applicant to (and
Applicant agrees that it shall) use its reasonable efforts to cause Bank to be promptly released
from its obligations under each Credit.

7. Electronic Transmissions. Bank is authorized to accept and process any Application and any
amendments, transfers, assignments of proceeds, Instructions, consents, waivers or other documents
relating to any Credit or Application which are sent to Bank by any form of electronic transmission
and such communications shall be binding upon Applicant. If it is a condition of any Credit that
payment may be made upon receipt by Bank of an electronic transmission advising negotiation or
honor, Applicant agrees to reimburse Bank on demand for the amount indicated in such electronic
transmission advice, and further agrees to hold Bank harmless if documents fail to arrive, or if,
upon arrival of documents, Bank determines that such documents do not comply with the terms and
conditions of such Credit.

8. Auto Extend Notice. If any Credit provides for automatic extension without amendment, Applicant
agrees that it will notify Bank in writing at least thirty (30) days prior to the last day
specified in such Credit by which Bank must give notice of nonextension as to whether or not it
wishes such Credit to be extended. Except as may be provided in any Credit or as Bank may
otherwise agree in writing in its sole discretion, Bank has no duty to (i) send or refrain from
sending notice of its election not to extend such Credit or (ii) otherwise amend or modify any
Credit.

9. Continuing Agreement; Survival. This Agreement shall be effective immediately upon execution
and delivery by Applicant (with acceptance by Bank being waived) and shall remain in effect until
Applicant or Bank gives the other at least 30 days’ prior written notice of termination (which
notice may be given whether or not any Event of Default exists). Termination shall not release
Applicant from any liability for any payment obligations (whether or not contingent) existing at
the time of termination or resulting from or incidental to any Credit issued on or before such date
(regardless of when such Credit expires or is cancelled). The provisions hereof relating to
payments, indemnities, exculpations, limitations of liability, suretyship defenses, jurisdiction
and waiver
of jury trial shall survive and remain in full force and effect regardless of the consummation of
any transactions contemplated hereby, the reimbursement or repayment of any drawings, the
expiration or termination of the Credits or LOIs, the termination of the Credit Agreement, or the
termination of this Agreement or any provision hereof.

10. Amendment; Severability. This Agreement may not be amended without the written consent of
Applicant and Bank. Any provision of this Agreement which may be determined by competent authority
to be prohibited or unenforceable in any jurisdiction

C-2

 

 shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

11. Bank hereby notifies Applicant that pursuant to the requirements of the USA Patriot Act (Title
III of Pub. L. 107-56 (signed into law October 26, 2001)), it is required to obtain, verify and
record information that identifies Applicant, which information includes the name and address of
Applicant and other information that will allow Bank to identify Applicant in accordance with such
Act.

12. Credit Agreement Controls. It is understood and agreed that each Credit shall be subject to
the terms and conditions set forth in the Credit Agreement, including, without limitation, Sections
2.05 and 2.16 thereof. In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of the Credit Agreement, the terms and conditions of the
Credit Agreement shall control. For the avoidance of doubt, the provisions of the Credit Agreement
shall govern with respect to all matters not expressly provided for herein.

13. Applicable Law; Jurisdiction; Jury Trial. (a) This Agreement shall be construed in accordance
with and governed by the law of the State of New York.

(b) Applicant hereby irrevocably and unconditionally submits, for itself and its property, to the
non-exclusive 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 this Agreement,
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
Bank may otherwise have to bring any action or proceeding relating to this Agreement against the
Applicant or its properties in the courts of any jurisdiction. Applicant 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 in any court referred to in this paragraph (b). 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. Each party
to this Agreement irrevocably consents to service of process in the manner provided for notices in
Section 9.01 of the Credit Agreement. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

(c) APPLICANT WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY ACTION OR PROCEEDING IN WHICH
BANK AND APPLICANT ARE PARTIES (WHETHER OR NOT THE ONLY PARTIES) ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT, ANY INSTRUCTION OR ANY CREDIT.

[Remainder of page intentionally left blank]

C-3

 

The undersigned hereby agrees to all the terms and conditions set forth herein as of the date set
forth below.

Address for Notices, etc. to Applicant:

	 	 	 

	 
	 
	 	 
	 
	 
	 	 
	 
	Fax:
	 	 
	 

	 	 
	Telephone:
	 	 
	 

	 	 
	Attention:
	 	 
	 

	 	 
	 
	Agent for service per Section 15(b), if applicable:
	 
	Name:
	 	 
	 

	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 
	(which must be in the State of New York)

 

(Applicant)

 

(Place and Type of Organization)

 

(Authorized Signature)

 

(Print Name)

 

(Title)

 

(Date)

C-4

 

EXHIBIT A

Form of Application for Irrevocable Standby Letter of Credit

This application and the Letter of Credit issued hereunder are subject to and governed by the
CONTINUING AGREEMENT FOR COMMERCIAL & STANDBY LETTERS OF CREDIT executed by the undersigned in
favor of [Issuing Bank] on       (the “Agreement”).

When Transmitting this application by facsimile all pages must be transmitted.

To: [Issuing Bank] and/or its subsidiaries and/or affiliates. Date:

I. Pursuant to the Terms and Conditions contained herein, please issue an IRREVOCABLE STANDBY
Letter of Credit (together with any replacements, extensions or modifications, the “Credit”) and
transmit it by:

o Teletransmission       o Courier

If completing in Microsoft Word, please enter data by ‘clicking’ on the gray boxes.

	 	 	 
	Applicant/Obligor (Full name and address- jointly and

	 	Beneficiary (Full name and address):
	severally if more than one, individually and collectively,
“Applicant/Obligor”):
	 	 
	 
	 	 
	[Signature lines are on last page].
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Account Party (Full name and address of entity to be named in
Letter of Credit if different than the above
Applicant/Obligor):

	 	Advising Bank-Optional (If blank, Issuer will select its
branch or affiliate or correspondent in the domicile of the
beneficiary):
	 
	 	 
	 	 	 
	 
	 	 
	Amount:

Up to an aggregate amount of
If not USD, indicate currency

	 	Expiry Date: Demands/claims must be presented to the counters of
the Nominated bank not later than
	 
	 	 
	 	 	 

Complete only if Automatic Extension of the expiry date is required.

Credit to contain Automatic Extension clause with extension period of o one year/o other       (please specify).

No less than       calendar days non-extension notice to the beneficiary.

Automatic Extension final expiration date:       (the date after which the Credit will no longer be subject to Automatic Extension).

 

AVAILABLE BY (indicate A, B or C)

	o	 	A. Beneficiary’s dated statement referencing [Issuing Bank] Letter of Credit Number indicating amount of demand/claim and
purportedly signed by an authorized person reading as follows (Please state within the quotation marks the wording to appear
on the statement to be presented):
	 
	 	 	“ (insert appropriate reason for drawing)     ”

o Demands received by authenticated teletransmission are acceptable in lieu of the beneficiary’s signed and dated statement provided that
such authenticated teletransmission contains the beneficiary’s statement as provided for in the Credit.

C-5

 

	o	 	B. See attached sheet(s) for continuation of other documents and/or special instructions, which form an integral part of this
Application and such specimen should be approved and signed by the applicant/obligor.
	 
	o	 	C. Other:

 

Complete only when the Beneficiary’s bank or Correspondent is to issue its guarantee or undertaking based on the issued Standby Letter of
Credit.

We understand and agree that by making this request, we shall remain liable under this Credit until Issuer is fully released in writing
by such entity.

	o	 	Request Beneficiary’s bank to issue and deliver its:

(Specify type of bid or performance bond, guarantee, undertaking or other)

	 	 	 

	In favor of:

	 	Name(s)
	 

	 	Attention Party Name
	 

	 	Address
	 
	 	 
	 

	 	City/State/Zip/Country
	 

	 	Telephone
	 

	 	Fax

For an amount not exceeding that specified above, effective immediately and expiring at their office on (at least 30 days prior to Expiry
Date above) covering (brief description): .

 

	o	 	Multiple drawings prohibited (if blank, multiple drawings will be permitted).
	 
	o	 	Partial drawings prohibited (if blank, partial drawings will be permitted).
	 
	o	 	Credit is transferable only in its entirety (Issuer is authorized to include its standard transfer conditions and is
authorized to nominate a transferring bank, if applicable).

The Credit, or any Credit issued shall be subject to the International Standby Practices 1998, International Chamber of Commerce
Publication 590 (“ISP”) or, o if box is checked, it shall be subject to the Uniform Customs and Practice for Documentary Credits 2007
Revision, International Chamber of Commerce Publication No. 600 (“UCP”).

 

Please include a brief description of the purpose of the Standby Letter of Credit including goods description, pricing, country of origin
of the goods, shipment from and shipment to countries, as applicable:

Unless otherwise stated herein, the nominated bank (if any) is authorized to send all documents to
you in one airmail or courier service, if available.

C-6

 

THE UNDERSIGNED HEREBY AGREES TO ALL THE TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT, ALL OF
WHICH HAVE BEEN READ AND UNDERSTOOD BY THE UNDERSIGNED.

	 	 	 	 	 
	 

	 	 

(Applicant/Obligor)
	 	 
	 
	 	 	 	 
	 

	 	 

(Authorized Signature)
	 	 
	 
	 	 	 	 
	 

	 	 

(Title)
	 	 
	 
	 	 	 	 
	 

	 	 

(Phone)
	 	 
	 
	 	 	 	 
	 

	 	 

(Fax)
	 	 
	 
	 	 	 	 
	 

	 	 

(Date)
	 	 

C-7

 

EXHIBIT B

Form of Application for Irrevocable Commercial Letter of Credit

This application and the Letter of Credit issued hereunder are subject to and governed by the
CONTINUING AGREEMENT FOR COMMERCIAL & STANDBY LETTERS OF CREDIT executed by the undersigned in
favor of [Issuing Bank]
on (the “Agreement”).

When transmitting this application by facsimile all pages must be transmitted.

To: [Issuing Bank] and/or its subsidiaries and/or affiliates. Date:

I. Pursuant to the Terms and Conditions contained herein, please issue an IRREVOCABLE DOCUMENTARY
COMMERCIAL Letter of Credit (together with any replacements, extensions or modifications, the
“Credit”) and transmit it by:

o Teletransmission      o Courier

If completing in Microsoft Word, please enter data by ‘clicking’ on the gray boxes.

Applicant/Obligor (Full name and address):

 

 

 

 

[Signature lines are on last page].

 

Account Party (Full name and address of entity to be named in Letter of Credit if different
than the above Applicant/Obligor):

 

 

 

 

 

Advising Bank-Optional (If blank, Issuer will select its branch or affiliate or correspondent
in the domicile of the beneficiary):

 

 

 

 

 

Beneficiary (Full name and address):

 

 

 

 

 

Amount (In Figures):

 

 

 

Amount (In words):

 

 

 

Indicate plus or minus percentage if applicable

     o Plus o Minus                     %

      

	o	 	Credit is transferable. (Issuer is authorized to include its standard transfer conditions and
is authorized to nominate a Transferring Bank.)

      

	 	 	 

	Partial Shipment

	 	Transhipment
	o Not Allowed (if blank, allowed)

	 	o Not Allowed (if blank, allowed)

      

Shipment:

Shipment from:

For Transportation to:

Latest Shipment Date:

 

Credit available:

	o	 	At sight.
	 
	o	 	By deferred payment at:
	 
	o	 	By acceptance of drafts at:
	 
	o	 	Discount Charges, if any, for the account of the

(specify only if credit is available by acceptance)

o Beneficiary       o Applicant

Against the documents detailed herein and Beneficiary’s draft(s) drawn on Issuer or Issuer’s branch
or affiliate or correspondent (at Issuer’s option) for 100% or                     % of the invoice value.

 

Insurance:

	o	 	Insurance effected by us. We agree to keep insurance in force until this transaction is
complete (no document required if checked).

If above is not checked, the following documents are required:

	o	 	Negotiable Insurance Policy or Certificate covering the following

o All Risks o War SR&CC o Other Risks (specify)

	o	 	Indicate if a full set is required.
	 
	o	 	Insurance coverage for                     % (Unless otherwise specified the minimum amount of
insurance must be for

C-8

 

Expiry Date:

 

Place of Expiry Unless the undersigned or Issuer nominates a bank which is authorized to pay, to
accept. to incur a deferred payment undertaking, or to negotiate, the Credit will be freely
negotiable. Issuer may nominate such a bank in its sole discretion or stipulate that the Credit is
available with Issuer only.

If the Credit is freely negotiable, it will be considered to be freely negotiable by any bank
anywhere. (Issuer in its sole discretion may specify that the Credit will expire in the country of
the beneficiary).

	o	 	Commercial Invoice                      originals                      copies.
	 
	o	 	Custom Invoice                      originals                      copies.
	 
	o	 	Visaed Customs Invoice                      originals                      copies.

Transport Documents:

	o	 	Full Set of Marine/Ocean Bill of Lading covering a port to port shipment consigned to the order
of [Issuing Bank] marked notify Applicant indicating the name of the carrier, and indicating
the goods have been loaded on board or shipped on a named vessel.
	 
	o	 	Full Set of Multimodal Transport document consigned to the order of [Issuing Bank] marked
notify Applicant indicating the name of the carrier or Multimodal transport operator, and
indicating that the goods have been dispatched, taken in charge or loaded on board.
	 
	o	 	Air Waybill consigned to [Issuing Bank] marked notify Applicant indicating the name of the
carrier.
	 
	o	 	If Consignee other than [Issuing Bank] (please specify):
	 
	o	 	If notify party other than Applicant (please specify):
	 
	o	 	Truck Bill of Lading consigned to
marked notify Applicant indicating the name of the carrier.
	 
	o	 	Rail Bill of Lading consigned to
marked notify Applicant indicating the name of the carrier.

The Transport Document must be marked

	o	 	Freight Collect
	 
	o	 	Freight Prepaid

		 	100% of the CIF or CIP value plus 10%. If the CIF or CIP value cannot be determined from the documents on
their face, insurance must be for a minimum amount of 110% of the drawing amount or 110%
of the gross invoice amount, whichever is greater.)
	 
	o	 	Packing List                      originals                      copies.
	 
	o	 	Certificate of Origin                      originals                      copies.
	 
	o	 	Forwarders Cargo Receipt (‘FCR’) issued by
	 
	 	 	 
	 
	 	 	indicating that the merchandise has been received (indicate in the space below any further
requirements-Note: a FCR is not a transport document):
	 
	 	 	 
	 
	 	 	 
	 
	o	 	Inspection Certificate issued by
and purportedly signed by
                     
originals                      copies
	 
	 	 	Specify Inspection Certificate content (if blank, document will be accepted as
tendered.)
	 
	o	 	Other Documents
	 
	o	 	See attached sheet for continuation or other documents or further special instructions which
form and are an integral part of this Application.

Covering: Merchandise described in the invoice as (Mention commodity only in generic terms omitting
details as to grade, quality, etc. Do not attach copy of Purchase Order. Reference may be made to
it for information only.)

Trade Terms: o Check if Incoterms 2000 applies o FAS o FOB      (named port of shipment);

o FCA           (named place of shipment); o CIP            (named place of destination);

o
CFR o CIF           (named port of destination); o Other

Documents must be presented for payment, acceptance, negotiation within  days (unless
otherwise specified 21 days will be
stipulated) after the date of shipment of the transport documents (or in the case of a FCR or Air
Waybill 21 days after its date) but within the validity of the Credit.

	o	 	All bank charges other than those of Issuer are for the beneficiary’s account.

C-9

 

Unless otherwise stated herein, the negotiating/nominated bank (if any) is authorized to send all
documents to you in one airmail or courier service, if available.

The Credit, or any Credit issued shall be subject to the Uniform Customs and Practice for
Documentary Credits 2007 Revision, International Chamber of Commerce Publication No. 600 (“UCP”)
and any subsequent revision thereof adhered to by Bank on the date such Credit is issued.

C-10

 

THE UNDERSIGNED HEREBY AGREES TO ALL THE TERMS AND CONDITIONS SET FORTH IN THE CONTINUING
AGREEMENT, ALL OF WHICH HAVE BEEN READ AND UNDERSTOOD BY THE UNDERSIGNED.

	 	 	 	 	 

	 

	 	 

(Applicant/Obligor)
	 	 
	 
	 	 	 	 
	 

	 	 

(Authorized Signature)
	 	 
	 
	 	 	 	 
	 

	 	 

(Title)
	 	 
	 
	 	 	 	 
	 

	 	 

(Phone)
	 	 
	 
	 	 	 	 
	 

	 	 

(Fax)
	 	 
	 
	 	 	 	 
	 

	 	 

(Date)
	 	 

C-11

 

EXHIBIT C

Form of Application for Amendment

On Beneficiary Letterhead

	 	 	 

	Date:

	 	[          ]
	 
	 	 
	To:

	 	[Issuing Bank]
	 

	 	[Address]
	 

	 	ATTN: [          ]
	 

	 	Phone: [          ]
	 

	 	FAX: [          ]
	 
	 	 
	From:

	 	[Name and Address of Beneficiary]

RE: [Issuing Bank] Letter of Credit Number [SPECIFY NUMBER] issued on behalf of [SPECIFY APPLICANT
NAME] in the amount of [SPECIFY CURRENCY AND AMOUNT].

Gentlemen:

We hereby agree to amend the above referenced letter of credit as follows:

	 	Ø	 	[Decrease the available amount of the letter of credit by USD__________ to a new
balance of USD______________.]
	 
	 	Ø	 	[Change the expiration date to ____________________.]
	 
	 	Ø	 	[OTHER:_________________________]

Please contact [SPECIFY BENEFICIARY CONTACT NAME / PHONE/ EMAIL] with any questions.

Regards,

_________________________________________

COMPANY NAME: __________________________

NAME OF SIGNER:__________________________

TITLE OF SIGNER:__________________________

C-12

 

On Obligor Letterhead

	 	 	 

	Date:

	 	[          ]
	 
	 	 
	To:

	 	[Issuing Bank]
	 

	 	[Address]
	 

	 	ATTN: [          ]
	 

	 	Phone: [          ]
	 

	 	FAX: [          ]
	 
	 	 
	From:

	 	[Name and Address of Obligor]

RE: [Issuing Bank ] Letter of Credit Number [SPECIFY NUMBER] issued on behalf of [SPECIFY APPLICANT
NAME1*] in the amount of [SPECIFY CURRENCY AND AMOUNT] in favor of [SPECIFY NAME OF
BENEFICIARY].

Gentlemen:

We request the above referenced letter of credit be amended as follows:

	 	Ø	 	[Increase / Decrease the available amount of the letter of credit by USD__________ to
a new balance of USD2______________.]
	 
	 	Ø	 	[Extend the expiration date to ____________________.]
	 
	 	Ø	 	[OTHER:_________________________]

Regards,

_________________________________________

COMPANY NAME: __________________________

NAME OF SIGNER:__________________________

TITLE OF SIGNER:__________________________

 

			
	1	 	Obligor must submit the request to amend
but, if the applicant is a party other than the obligor, the applicant name is
included for reference.
	 
	2	 	Amendment must be made in the currency
the letter of credit was issued.

C-13

 

EXHIBIT D

GUARANTEE AND SECURITY AGREEMENT

dated as of

March [•], 2011

among

HUNTINGTON INGALLS INDUSTRIES, INC.,

THE GUARANTORS PARTY HERETO

and

JPMORGAN CHASE BANK, N.A.,

as Collateral Agent

 

 

TABLE OF CONTENTS

 

	 	 	 	 	 
	 	 	Page
	SECTION 1. Definitions
	 	 	1	 
	SECTION 2. Guarantees by Guarantors
	 	 	10	 
	SECTION 3. Grant of Transaction Liens
	 	 	13	 
	SECTION 4. General Representations and Warranties
	 	 	15	 
	SECTION 5. Further Assurances; General Covenants
	 	 	16	 
	SECTION 6. Recordable Intellectual Property
	 	 	18	 
	SECTION 7. Investment Property
	 	 	19	 
	SECTION 8. Material Government Contracts
	 	 	22	 
	SECTION 9. Cash Collateral Accounts
	 	 	24	 
	SECTION 10. Commercial Tort Claims
	 	 	24	 
	SECTION 11. Transfer of Record Ownership
	 	 	25	 
	SECTION 12. Right to Vote Securities
	 	 	25	 
	SECTION 13. Certain Cash Distributions
	 	 	26	 
	SECTION 14. Remedies upon Event of Default
	 	 	26	 
	SECTION 15. Application of Proceeds
	 	 	28	 
	SECTION 16. Fees and Expenses; Indemnification
	 	 	30	 
	SECTION 17. Authority to Administer Collateral
	 	 	31	 
	SECTION 18. Limitation on Duty in Respect of Collateral
	 	 	32	 
	SECTION 19. General Provisions Concerning the Collateral Agent
	 	 	32	 
	SECTION 20. Termination of Transaction Liens; Release of Collateral
	 	 	33	 
	SECTION 21. Additional Guarantors and Grantors
	 	 	34	 
	SECTION 22. Notices
	 	 	34	 
	SECTION 23. No Implied Waivers; Remedies Not Exclusive
	 	 	34	 
	SECTION 24. Successors and Assigns
	 	 	34	 
	SECTION 25. Amendments and Waivers
	 	 	35	 
	SECTION 26. Choice of Law
	 	 	35	 
	SECTION 27. Waiver of Jury Trial
	 	 	35	 
	SECTION 28. Severability
	 	 	35	 

 

 

	 	 	 

	SCHEDULES:
	 	 
	 
	 	 
	Schedule 1
	 	Material Government Contracts
	 
	 	 
	Schedule 2
	 	Material Commercial Tort Claims
	 
	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A
	 	Security Agreement Supplement
	 
	 	 
	Exhibit B
	 	Copyright Security Agreement
	 
	 	 
	Exhibit C
	 	Patent Security Agreement
	 
	 	 
	Exhibit D
	 	Trademark Security Agreement
	 
	 	 
	Exhibit E
	 	Perfection Certificate
	 
	 	 
	Exhibit F
	 	Issuer Control Agreement
	 
	 	 
	Exhibit G-1
	 	Assignment of Government Contract
	 
	 	 
	Exhibit G-2
	 	Notice of Assignment of Government Contract

ii

 

GUARANTEE AND SECURITY AGREEMENT

     AGREEMENT dated as of March [•], 2011 among HUNTINGTON INGALLS INDUSTRIES, INC., as
Borrower, the GUARANTORS party hereto and JPMORGAN CHASE BANK, N.A., as Collateral Agent.

     WHEREAS, the Borrower has entered into the Credit Agreement described in Section 1 hereof,
pursuant to which the Borrower intends to borrow funds and obtain letters of credit for the
purposes set forth therein;

     WHEREAS, the Borrower is willing to secure (i) its obligations under the Credit Agreement and
(ii) certain other obligations, by granting Liens on its assets to the Collateral Agent as provided
in the Security Documents;

     WHEREAS, the Borrower is willing to cause each of its Wholly Owned Domestic Restricted
Subsidiaries to guarantee the foregoing obligations of the Borrower and to secure its guarantee
thereof by granting Liens on its assets to the Collateral Agent as provided in the Security
Documents; and

     WHEREAS, the Lenders and each Issuing Bank are not willing to make loans or issue or
participate in letters of credit under the Credit Agreement unless (i) the foregoing obligations of
the Borrower are secured and guaranteed as described above and (ii) each guarantee thereof is
secured by Liens on assets of the relevant Guarantor as provided in the Security Documents;

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

     SECTION 1. Definitions.

     (a) Terms Defined in Credit Agreement. Terms defined in the Credit Agreement and not
otherwise defined in subsection (b) or (c) of this Section have, as used herein, the respective
meanings provided for therein. The rules of construction specified in Sections 1.03 and 1.04 of
the Credit Agreement also apply to this Agreement.

     (b) Terms Defined in UCC. As used herein, each of the following terms has the meaning
specified in the UCC:

	 	 	 
	Term	 	UCC
	Account
	 	9-102
	Authenticate
	 	9-102
	Certificated Security
	 	8-102

 

 

	 	 	 
	Term	 	UCC
	Chattel Paper
	 	9-102
	Commercial Tort Claim
	 	9-102
	Commodity Account
	 	9-102
	Commodity Customer
	 	9-102
	Deposit Account
	 	9-102
	Document
	 	9-102
	Entitlement Holder
	 	8-102
	Entitlement Order
	 	8-102
	Equipment
	 	9-102
	Financial Asset
	 	8-102 & 103
	General Intangibles
	 	9-102
	Instrument
	 	9-102
	Inventory
	 	9-102
	Investment Property
	 	9-102
	Letter-of-Credit Right
	 	9-102
	Nominated Person
	 	5-102
	Record
	 	9-102
	Securities Account
	 	8-501
	Securities Intermediary
	 	8-102
	Security
	 	8-102 & 103
	Security Entitlement
	 	8-102
	Supporting Obligations
	 	9-102
	Uncertificated Security
	 	8-102

     (c) Additional Definitions. The following additional terms, as used herein, have the
following meanings:

     “Bank Product Obligations” means obligations in respect of (i) Cash Management Services and
(ii) Secured Swap Agreements.

     “Cash Distributions” means dividends, interest and other distributions and payments (including
proceeds of liquidation, sale or other disposition) made or received in cash upon or with respect
to any Collateral.

     “Cash Management Services” means any services provided from time to time by any Lender or any
of its Affiliates to any Loan Party in connection with (i) operating, collections, payroll, trust
or other depository or disbursement accounts, including automated clearinghouse, e-payable,
electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository,
information reporting, lockbox and stop payment services and (ii) commercial credit card,
purchasing card and merchant card services.

2

 

     “Collateral” means all property, whether now owned or hereafter acquired, on which a Lien is
granted or purports to be granted to the Collateral Agent pursuant to the Security Documents. When
used with respect to a specific Grantor, the term “Collateral” means all its property on which such
a Lien is granted or purports to be granted.

     “Collateral Accounts” means, collectively, the Cash Collateral Accounts, Deposit Accounts and
Securities Accounts.

     “Contingent Secured Obligation” means, at any time, any Secured Obligation (or portion
thereof) that is contingent in nature at such time, including any Secured Obligation that is:

     (i) an obligation to reimburse a bank for drawings not yet made under a letter of
credit issued by it;

     (ii) an obligation under a Secured Swap Agreement to make payments that cannot be
quantified at such time;

     (iii) any other obligation (including any guarantee) that is contingent in nature at
such time; or

     (iv) an obligation to provide collateral to secure any of the foregoing types of
obligations.

     “Control” has the following meanings:

     (a) when used with respect to any Security or Security Entitlement, the meaning
specified in UCC Section 8-106;

     (b) when used with respect to any Deposit Account, the meaning specified in UCC
Section 9-104;

     (c) when used with respect to any Electronic Chattel Paper, the meaning specified in
UCC Section 9-105;

     (d) when used with respect to any Commodity Account or Commodity Contract, the
meaning specified in UCC Section 9-106(b); and

     (e) when used with respect to any right to payment or performance by the issuer or a
Nominated Person in respect of a letter of credit, the meaning specified in UCC Section
9-107.

3

 

     “Copyright License” means any agreement now or hereafter in existence granting to any Grantor,
or pursuant to which any Grantor grants to any other Person, any right to use, copy, reproduce,
distribute, prepare derivative works, display or publish any records or other materials on which a
Copyright is in existence or may come into existence, including any agreement identified in
Schedule 1 to any Copyright Security Agreement.

     “Copyrights” means all the following: (i) all copyrights under the laws of the United States
or any other country (whether or not the underlying works of authorship have been published), all
registrations and recordings thereof, all copyrightable works of authorship (whether or not
published), and all applications for copyrights under the laws of the United States or any other
country, including registrations, recordings and applications in the United States Copyright Office
or in any similar office or agency of the United States, any State thereof or any other country or
any political subdivision thereof, including those described in Schedule 1 to any Copyright
Security Agreement, (ii) all renewals of any of the foregoing, (iii) all claims for, and rights to
sue for, past or future infringements of any of the foregoing, and (iv) all income, royalties,
damages and payments now or hereafter due or payable with respect to any of the foregoing,
including damages and payments for past or future infringements thereof.

     “Copyright Security Agreement” means a Copyright Security Agreement, substantially in the form
of Exhibit B (with any changes that the Collateral Agent shall have approved), executed and
delivered by a Grantor in favor of the Collateral Agent for the benefit of the Secured Parties.

     “Credit
Agreement” means the Credit Agreement dated as of March
[ • ], 2011 among
Huntington Ingalls Industries, Inc., the Lenders party thereto and JPMorgan Chase Bank, N.A., as
Administrative Agent, Issuing Bank and Swingline Lender and Credit Suisse, as Swingline Lender.

     “Equity Interest” means (i) in the case of a corporation, any shares of its capital stock,
(ii) in the case of a limited liability company, any membership interest therein, (iii) in the case
of a partnership, any partnership interest (whether general or limited) therein, (iv) in the case
of any other business entity, any participation or other interest in the equity or profits thereof,
(v) any warrant, option or other right to acquire any Equity Interest described in this definition
or (vi) any Security Entitlement in respect of any Equity Interest described in this definition.

     “FACA” means the Federal Assignment of Claims Act, as amended, 31 U.S.C. §3727 and 41 U.S.C.
§15.

4

 

     “Federal Government” means the federal government of the United States or any agency or
instrumentality thereof.

     “Funding Date Perfection Certificate” shall mean the Perfection Certificate with respect to
the Original Grantors delivered on the Funding Date.

     “Grantors” means the Borrower and the Guarantors.

     “Guarantors” means each Subsidiary listed on the signature pages hereof under the caption
“Guarantors” and each Subsidiary that shall, at any time after the date hereof, become a
“Guarantor” pursuant to Section 21.

     “Intellectual Property” means all intellectual and similar property of any Grantor of every
kind and nature now owned or hereafter acquired by any Grantor, including trade secrets,
confidential or proprietary technical and business information, know-how or other data or
information, in each case to the extent subject to protection under applicable law, Patents,
Copyrights, Licenses and Trademarks, including any of the foregoing that protect, are embodied by,
or are incorporated in software and databases.

     “Intellectual Property Filing” means (i) with respect to any Patent, Patent License, Trademark
or Trademark License, the filing of the applicable Patent Security Agreement or Trademark Security
Agreement with the United States Patent and Trademark Office, together with an appropriately
completed recordation form, and (ii) with respect to any Copyright or Copyright License, the filing
of the applicable Copyright Security Agreement with the United States Copyright Office, together
with an appropriately completed recordation form, in each case sufficient to record the Transaction
Lien granted to the Collateral Agent in such Recordable Intellectual Property.

     “Intellectual Property Security Agreement” means a Copyright Security Agreement, a Patent
Security Agreement or a Trademark Security Agreement.

     “Issuer Control Agreement” means an Issuer Control Agreement substantially in the form of
Exhibit F (with any changes that the Collateral Agent shall have approved, such approval to be
evidenced by the Collateral Agent’s execution and delivery of such Issuer Control Agreement).

     “License” means any Patent License, Trademark License, Copyright License or other license or
sublicense agreement relating to Intellectual Property to which any Grantor is a party.

     “Material Commercial Tort Claim” means a Commercial Tort Claim involving a claim for more than
$5,000,000.

5

 

     “Material Government Contract” means a contract, between a Grantor and either (i) the Federal
Government or (ii) a state or local government or any agency or instrumentality thereof, that
provides (or can reasonably be expected to provide) for payments to such Grantor in an aggregate
amount exceeding $350,000,000.

     “Non-Contingent Secured Obligation” means at any time any Secured Obligation (or portion
thereof) that is not a Contingent Secured Obligation at such time.

     “Original Grantor” means any Grantor that grants a Lien on any of its assets hereunder on the
Funding Date.

     “own” refers to the possession of sufficient rights in property to grant a security interest
therein as contemplated by UCC Section 9-203, and “acquire” refers to the acquisition of any such
rights.

     “Patent License” means any agreement now or hereafter in existence granting to any Grantor, or
pursuant to which any Grantor grants to any other Person, any right with respect to any Patent,
including any agreement identified in Schedule 1 to any Patent Security Agreement.

     “Patents” means (i) all letters patent and design letters patent of the United States or any
other country and all applications for letters patent or design letters patent of the United States
or any other country, including applications in the United States Patent and Trademark Office or in
any similar office or agency of the United States, any State thereof or any other country or any
political subdivision thereof, including those described in Schedule 1 to any Patent Security
Agreement, (ii) all reissues, divisions, continuations, continuations in part, revisions and
extensions of any of the foregoing, (iii) all claims for, and rights to sue for, past or future
infringements of any of the foregoing and (iv) all income, royalties, damages and payments now or
hereafter due or payable with respect to any of the foregoing, including damages and payments for
past or future infringements thereof.

     “Patent Security Agreement” means a Patent Security Agreement, substantially in the form of
Exhibit C (with any changes that the Collateral Agent shall have approved), executed and delivered
by a Grantor in favor of the Collateral Agent for the benefit of the Secured Parties.

     “Perfection Certificate” means, with respect to any Grantor, a certificate substantially in
the form of Exhibit E (with any changes that the Collateral Agent shall have approved), completed
and supplemented with the schedules contemplated thereby to the satisfaction of the Collateral
Agent, and signed by an

6

 

officer of such Grantor, it being understood and agreed that an abbreviated version of such
certificate as agreed to by the Collateral Agent and the Borrower shall have been delivered on the
Effective Date.

     “Permitted Liens” means (i) the Transaction Liens and (ii) any other Liens on the Collateral
permitted to be created or assumed or to exist pursuant to Section 6.02 of the Credit Agreement.

     “Personal Property Collateral” means all property included in the Collateral except Real
Property Collateral.

     “Pledged”, when used in conjunction with any type of asset, means at any time an asset of such
type that is included (or that creates rights that are included) in the Collateral at such time.
For example, “Pledged Equity Interest” means an Equity Interest that is included in the Collateral
at such time.

     “Post-Petition Interest” means any interest that accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or reorganization of any one or
more of the Grantors (or would accrue but for the operation of applicable bankruptcy or insolvency
laws), whether or not such interest is allowed or allowable as a claim in any such proceeding.

     “Proceeds” means all proceeds of, and all other profits, products, rents or receipts, in
whatever form, arising from the collection, sale, lease, exchange, assignment, licensing or other
disposition of, or other realization upon, any Collateral, including all claims of the relevant
Grantor against third parties for loss of, damage to or destruction of, or for proceeds payable
under, or unearned premiums with respect to, policies of insurance in respect of, any Collateral,
and any condemnation or requisition payments with respect to any Collateral.

     “Real Property Collateral” means all real property (including leasehold interests in real
property) included in the Collateral.

     “Recordable Intellectual Property” means (i) any Patent registered with the United States
Patent and Trademark Office, and any Patent License with respect to a Patent so registered under
which exclusive rights are granted to any Grantor, (ii) any Trademark registered with the United
States Patent and Trademark Office, and any Trademark License with respect to a Trademark so
registered under which exclusive rights are granted to any Grantor, (iii) any Copyright registered
with the United States Copyright Office and any Copyright License with respect to a Copyright so
registered under which exclusive rights are granted to any Grantor, and all rights in or under any
of the foregoing.

7

 

     “Release Conditions” means the following conditions for releasing all the Secured Guarantees
and terminating all the Transaction Liens:

     (i) all Commitments under the Credit Agreement shall have expired or been terminated;

     (ii) all Non-Contingent Secured Obligations shall have been paid in full; and

     (iii) no Contingent Secured Obligation (other than contingent indemnification and
expense reimbursement obligations as to which no claim shall have been asserted) shall
remain outstanding.

     “Secured Agreement”, when used with respect to any Secured Obligation, refers collectively to
each instrument, agreement or other document that sets forth obligations of the Borrower,
obligations of a guarantor and/or rights of the holder with respect to such Secured Obligation.

     “Secured Guarantee” means, with respect to each Guarantor, its guarantee of the Secured
Obligations under Section 2 hereof or Section 1 of a Security Agreement Supplement.

     “Secured Obligations” means (i) all principal of all Loans and LC Disbursements outstanding
from time to time under the Credit Agreement, all interest (including Post-Petition Interest) on
such Loans and LC Disbursements and all other amounts now or hereafter payable by the Borrower
pursuant to the Loan Documents and (ii) all Bank Product Obligations.

     “Secured Parties” means the holders from time to time of the Secured Obligations, including
the Administrative Agent and the Collateral Agent.

     “Secured Swap Agreement” means any Swap Agreement (i) existing on the Funding Date and entered
into by any Loan Party with a counterparty that is a Lender or an Affiliate thereof on the Funding
Date and (ii) entered into by any Loan Party after the Funding Date with a counterparty that is a
Lender or an Affiliate thereof at the time of entry into such agreement.

     “Security Agreement Supplement” means a Security Agreement Supplement, substantially in the
form of Exhibit A, signed and delivered to the Collateral Agent for the purpose of adding a
Subsidiary as a party hereto pursuant to Section 21 and/or adding additional property to the
Collateral.

     “Security Documents” means this Agreement, the Security Agreement Supplements, the Issuer
Control Agreements, the Mortgages, the Intellectual Property Security Agreements and all other
supplemental or additional security

8

 

agreements, control agreements, mortgages or similar instruments delivered pursuant to the
Loan Documents.

     “Specified Instrument” means (i) any Instrument with a value greater than or equal to
$5,000,000 (other than checks or similar Instruments received, and to be deposited, in the ordinary
course of business) and (ii) and any Instrument representing Indebtedness for borrowed money owed
by one Restricted Company to another Restricted Company.

     “Trademark License” means any agreement now or hereafter in existence granting to any Grantor,
or pursuant to which any Grantor grants to any other Person, any right to use any Trademark,
including any agreement identified in Schedule 1 to any Trademark Security Agreement.

     “Trademarks” means: (i) all trademarks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, service marks, logos, brand names, trade dress,
prints and labels on which any of the foregoing have appeared or appear, package and other designs,
and all other source or business identifiers, and all general intangibles of like nature, and the
rights in any of the foregoing which arise under applicable law, (ii) the goodwill of the business
symbolized thereby or associated with each of them, (iii) all registrations and applications in
connection therewith, including registrations and applications in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any State thereof or any
other country or any political subdivision thereof, including those described in Schedule 1 to any
Trademark Security Agreement, (iv) all renewals of any of the foregoing, (v) all claims for, and
rights to sue for, past or future infringements of any of the foregoing and (vi) all income,
royalties, damages and payments now or hereafter due or payable with respect to any of the
foregoing, including damages and payments for past or future infringements thereof.

     “Trademark Security Agreement” means a Trademark Security Agreement, substantially in the form
of Exhibit D (with any changes that the Collateral Agent shall have approved), executed and
delivered by a Grantor in favor of the Collateral Agent for the benefit of the Secured Parties.

     “Transaction Liens” means the Liens granted by the Grantors under the Security Documents.

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New
York; provided that, if perfection or the effect of perfection or non-perfection or the priority of
any Transaction Lien on any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than New York, “UCC” means the Uniform Commercial Code

9

 

as in effect from time to time in such other jurisdiction for purposes of the provisions
hereof relating to such perfection, effect of perfection or non-perfection or priority.

     SECTION 2. Guarantees by Guarantors.

     (a) Secured Guarantees. Each Guarantor unconditionally guarantees the full and punctual
payment of each Secured Obligation when due (whether at stated maturity, upon acceleration or
otherwise). If the Borrower fails to pay any Secured Obligation punctually when due, each
Guarantor agrees that it will forthwith on demand pay the amount not so paid at the place and in
the manner specified in the relevant Secured Agreement.

     (b) Secured Guarantees Unconditional. The obligations of each Guarantor under its Secured
Guarantee shall be unconditional and absolute and, without limiting the generality of the
foregoing, shall not be released, discharged or otherwise affected by:

     (i) any extension, renewal, settlement, compromise, waiver or release in respect of
any obligation of the Borrower, any other Guarantor or any other Person under any Secured
Agreement, by operation of law or otherwise;

     (ii) any modification or amendment of or supplement to any Secured Agreement;

     (iii) any release, impairment, non-perfection or invalidity of any direct or indirect
security for any obligation of the Borrower, any other Guarantor or any other Person under
any Secured Agreement;

     (iv) any change in the legal existence (including the form thereof), structure or
ownership of the Borrower, any other Guarantor or any other Person or any of their
respective subsidiaries, or any insolvency, bankruptcy, reorganization or other similar
proceeding affecting the Borrower, any other Guarantor or any other Person or any of their
assets or any resulting release or discharge of any obligation of the Borrower, any other
Guarantor or any other Person under any Secured Agreement;

     (v) the existence of any claim, set-off or other right that such Guarantor may have
at any time against the Borrower, any other Guarantor, any Secured Party or any other
Person, whether in connection with the Loan Documents or any unrelated transactions,
provided that nothing herein shall prevent the assertion of any such claim by separate
suit or compulsory counterclaim;

10

 

     (vi) any invalidity or unenforceability relating to or against the Borrower, any
other Guarantor or any other Person for any reason of any Secured Agreement, or any
provision of applicable law or regulation purporting to prohibit the payment of any
Secured Obligation by the Borrower, any other Guarantor or any other Person; or

     (vii) any other act or omission to act or delay of any kind by the Borrower, any
other Guarantor, any other party to any Secured Agreement, any Secured Party or any other
Person, or any other circumstance whatsoever that might, but for the provisions of this
clause (vii), constitute a legal or equitable discharge of or defense to any obligation of
any Guarantor hereunder, other than satisfaction in full of the Release Conditions or
indefeasible payment in cash of the Secured Obligations.

     (c) Release of Secured Guarantees. (i) All the Secured Guarantees will be released when all
the Release Conditions are satisfied. If at any time any payment of a Secured Obligation is
rescinded or must be otherwise restored or returned upon the insolvency or receivership of the
Borrower or otherwise, the Secured Guarantees shall be reinstated with respect thereto as though
such payment had been due but not made at such time.

     (ii) If all the capital stock of a Guarantor or all the assets of a Guarantor are sold
to a Person other than the Borrower or one of its Subsidiaries in a transaction permitted
by the Credit Agreement (any such sale, a “Sale of Guarantor”), the Secured Guarantee of
such Guarantor shall automatically be discharged and released without further action by
the Collateral Agent or any other Secured Party effective as of the time of such Sale of
Guarantor; provided that, if such sale constitutes an Asset Sale for purposes of Section
2.12(b) of the Credit Agreement, arrangements reasonably satisfactory to the Collateral
Agent have been made to apply the Net Proceeds thereof as (and to the extent) required by
the Credit Agreement. Such release shall not require the consent of any Secured Party,
and the Collateral Agent shall be fully protected in relying on a certificate of the
Borrower as to whether any particular sale constitutes a Sale of Guarantor.

     (iii) In addition to any release permitted by subsection (ii), the Collateral Agent
may release any Secured Guarantee with the prior written consent of the Required Lenders;
provided that any release of all or substantially all the Secured Guarantees shall require
the consent of all the Lenders.

11

 

     (iv) Upon any release of a Secured Guarantee, the Collateral Agent will, at the
expense of the relevant Guarantor, promptly execute and deliver to such Guarantor such
documents as such Guarantor shall reasonably request to evidence the release of such
Secured Guarantee.

     (d) Waiver by Guarantors. Each Guarantor irrevocably waives acceptance hereof, presentment,
demand, protest and any notice not provided for herein, as well as any requirement that at any time
any action be taken by any Person against the Borrower, any other Guarantor or any other Person.

     (e) Subrogation. A Guarantor that makes a payment with respect to a Secured Obligation
hereunder shall be subrogated to the rights of the payee against the Borrower with respect to such
payment; provided that no Guarantor shall enforce any payment by way of subrogation against the
Borrower, or by reason of contribution against any other guarantor of such Secured Obligation,
until all the Release Conditions have been satisfied.

     (f) Stay of Acceleration. If acceleration of the time for payment of any Secured Obligation
by the Borrower is stayed by reason of the insolvency or receivership of the Borrower or otherwise,
all Secured Obligations otherwise subject to acceleration under the terms of any Secured Agreement
shall nonetheless be payable by the Guarantors hereunder forthwith on demand by the Collateral
Agent.

     (g) Right of Set-Off. If any Secured Obligation is not paid promptly when due (after the
passage of any applicable grace period as set forth in the Loan Documents), each of the Secured
Parties and their respective Affiliates is authorized, 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 Secured Party or Affiliate to or
for the credit or the account of any Guarantor against the obligations of such Guarantor under its
Secured Guarantee, irrespective of whether or not such Secured Party shall have made any demand
thereunder and although such obligations may be unmatured. The rights of each Secured Party under
this subsection are in addition to all other rights and remedies (including other rights of
set-off) that such Secured Party may have.

     (h) Continuing Guarantee. Each Secured Guarantee is a continuing guarantee, shall be binding
on the relevant Guarantor and its successors and assigns, and shall be enforceable by the
Collateral Agent and the other Secured Parties. If all or part of any Secured Party’s interest in
any Secured Obligation is assigned or otherwise transferred, the transferor’s rights under each
Secured Guarantee, to the extent applicable to the obligation so transferred, shall automatically
be transferred with such obligation.

12

 

     (i) Limitation on Obligations of Subsidiary Guarantor. The obligations of each Subsidiary
Guarantor under its Secured Guarantee shall be limited to an aggregate amount equal to the largest
amount that would not render such Secured Guarantee subject to avoidance under Section 548 of the
United States Bankruptcy Code or any comparable provisions of applicable law.

     SECTION 3. Grant of Transaction Liens.

     (a) The Borrower, in order to secure the Secured Obligations, and each Guarantor listed on the
signature pages hereof or subsequently becoming a Guarantor, in order to secure its Secured
Guarantee, grants to the Collateral Agent for the benefit of the Secured Parties a continuing
security interest in all of the Borrower’s or such Guarantor’s, as the case may be, right, title
and interest in and to the following property, whether now owned or existing or hereafter acquired
or arising and regardless of where located:

     (i) all Accounts;

     (ii)
all Chattel Paper;

     (iii) all cash and Deposit Accounts;

     (iv) all Documents;

     (v) all Equipment;

     (vi) all General Intangibles (including (x) any Equity Interests in other Persons
that do not constitute Investment Property and (y) any Intellectual Property);

     (vii) all Instruments;

     (viii) all Inventory;

     (ix) all Investment Property;

     (x) the Commercial Tort Claims described in Schedule 2;

     (xi) all Letter-of-Credit Rights;

     (xii) all books and records (including customer lists, credit files, computer
programs, printouts and other computer materials and records) of such Grantor pertaining
to any of its Collateral;

13

 

     (xiii) such Grantor’s ownership interest in (1) its Collateral Accounts, (2) all
Financial Assets credited to its Collateral Accounts from time to time and all Security
Entitlements in respect thereof, (3) all cash held in its Collateral Accounts from time to
time and (4) all other money in the possession of the Collateral Agent; and

     (xiv) all Proceeds of the Collateral described in the foregoing clauses (i) through
(xiii);

provided that the following property is excluded from the foregoing security interests: (A) motor
vehicles the perfection of a security interest in which is excluded from the Uniform Commercial
Code in the relevant jurisdiction, (B) voting Equity Interests in any Foreign Subsidiary, to the
extent (but only to the extent) required to prevent the Collateral from including more than 65% of
all voting Equity Interests in such Foreign Subsidiary, (C) any Trademark that is a United States
intent-to-use trademark application for which, and solely during the period in which, an amendment
to allege use or statement of use has not been filed under 15 U.S.C. Section 1051(c) or 15 U.S.C.
Section 1051(d), respectively, or if filed, has not been deemed in conformance with 15 U.S.C.
Section 1051(a) or examined and accepted, respectively, by the United States Patent and Trademark
Office; provided, that upon such filing and acceptance, such intent-to-use trademark application
shall no longer be excluded from the foregoing security interests, (D) any leasehold interest in
real property, (E) any funds subject to Liens permitted under Section 6.02(f), 6.02(g) or 6.02(n)
of the Credit Agreement, but only to the extent such funds are held in a segregated deposit account
of the Grantors or a deposit account under the control of the Person in whose favor such Lien has
been granted, (F) property subject to Liens permitted under Section 6.02(i) or 6.02(p) of the
Credit Agreement, but only to the extent the terms of the Indebtedness secured thereby prohibit the
grant of a security interest therein, (G) any property or assets if the Administrative Agent shall
determine in its sole discretion and shall have confirmed in writing to the Borrower that the cost
to the Borrower or the Guarantors of creating or perfecting such security interests in such
property or assets in favor of the Collateral Agent for the benefit of the Secured Parties is
excessive in relation to the benefits to be obtained therefrom by the Secured Parties and (H) any
property to the extent that the grant of a security interest therein is prohibited by any
applicable law or regulation, requires a consent not obtained of any Governmental Authority
pursuant to any applicable law or regulation, or is prohibited by, or constitutes a breach or
default under or results in the termination of or requires any consent not obtained under, any
contract, license, agreement, instrument or other document evidencing or giving rise to such
property or, in the case of any Investment Property, any applicable organizational document or
shareholder or similar agreement, except to the extent that such law or regulation or the term in
such contract, license, agreement, instrument or other document or shareholder or similar agreement
providing for

14

 

such prohibition, breach, default or termination or requiring such consent is ineffective under
applicable law. Each Grantor shall upon request of the Collateral Agent use commercially
reasonable efforts to obtain any such required consent that is reasonably obtainable.

     (b) With respect to each right to payment or performance included in the Collateral from time
to time, the Transaction Lien granted therein includes a continuing security interest in (i) any
Supporting Obligation that supports such payment or performance and (ii) any Lien that (x) secures
such right to payment or performance or (y) secures any such Supporting Obligation.

     (c) The Transaction Liens are granted as security only and shall not subject the Collateral
Agent or any other Secured Party to, or transfer any obligation or liability of any Grantor with
respect to any of the Collateral or any transaction in connection therewith.

     SECTION 4. General Representations and Warranties. Each Grantor represents and warrants
that:

     (a) With respect to each Original Grantor, such Grantor is, as of the Funding Date, duly
organized, validly existing and in good standing under the laws of the jurisdiction identified as
its jurisdiction of organization in its Perfection Certificate.

     (b) All Pledged Equity Interests of any Subsidiary that are owned by such Grantor are owned by
it free and clear of any Lien other than (i) the Transaction Liens, (ii) Liens permitted under
Section 6.02(c) or 6.02(j) of the Credit Agreement and (iii) any inchoate tax liens. All shares of
capital stock included in such Pledged Equity Interests (including shares of capital stock in
respect of which such Grantor owns a Security Entitlement) have been duly authorized and validly
issued and are fully paid and non-assessable.

     (c) No authorized financing statement, security agreement, mortgage or similar or equivalent
document or instrument covering all or part of the Collateral owned by such Grantor is on file or
of record in any jurisdiction in which such filing or recording would be effective to perfect or
record a Lien on such Collateral, except financing statements, mortgages or other similar or
equivalent documents with respect to Permitted Liens. After the Funding Date, no Collateral owned
by such Grantor will be in the possession or under the Control of any other Person having a
security interest therein, other than a Permitted Lien.

     (d) When the relevant Mortgages have been duly executed and delivered, the Transaction Liens
on all Material Real Property included in the Collateral owned by such Grantor as of the Funding
Date will have been validly

15

 

created and will secure all the Secured Obligations or such Grantor’s Secured Guarantee, as
the case may be. When each such Mortgage has been duly recorded, such Transaction Liens will rank
prior to all other Liens (except Permitted Liens) on such Material Real Property covered by such
Mortgage.

     (e) Such Grantor has delivered a Perfection Certificate to the Collateral Agent. With respect
to each Original Grantor, information set forth in such Grantor’s Funding Date Perfection
Certificate is correct and complete as of the Funding Date.

     (f) When UCC financing statements describing the Personal Property Collateral as “all personal
property” have been filed in the offices specified in the Perfection Certificate referred to in
Section 4(e), the Transaction Liens will constitute perfected security interests in the Personal
Property Collateral owned by such Grantor to the extent that a security interest therein may be
perfected by filing pursuant to the UCC, prior to all Liens and rights of others therein except
Permitted Liens. When, in addition to the filing of such UCC financing statements, the applicable
Intellectual Property Filings have been made with respect to such Grantor’s Recordable Intellectual
Property (including any future filings required pursuant to Sections 5(a) and 6(a)), the
Transaction Liens will constitute perfected security interests in all right, title and interest of
such Grantor in its Recordable Intellectual Property to the extent that security interests therein
may be perfected by such filings, prior to all Liens and rights of others therein except Permitted
Liens. Except for (i) the filing of such UCC financing statements, (ii) such Intellectual Property
Filings and (iii) the due recordation of the Mortgages, no registration, recordation or filing with
any governmental body, agency or official is required in connection with the execution or delivery
of the Security Documents or is necessary for the validity or enforceability thereof or for the
initial perfection or due recordation of the Transaction Liens or for the enforcement of the
Transaction Liens.

     SECTION 5. Further Assurances; General Covenants. Each Grantor covenants as follows:

     (a) Such Grantor will, from time to time, at the Borrower’s expense, and subject to Sections
5(g) and 8(e) execute, deliver, file and record any statement, assignment, instrument, document,
agreement or other paper and take any other action (including any Intellectual Property Filing)
that from time to time may be necessary, or that the Collateral Agent may reasonably request, in
order to:

     (i) create, preserve, perfect, confirm or ensure the validity of the Transaction
Liens on such Grantor’s Collateral;

16

 

     (ii) in the case of Pledged Investment Property, Pledged Instruments and Pledged
Letter-of-Credit Rights, cause the Collateral Agent to have Control thereof; or

     (iii) enable the Collateral Agent to exercise and enforce any of its rights, powers
and remedies with respect to any of such Grantor’s Collateral.

Such Grantor authorizes the Collateral Agent to execute and file such financing statements or
continuation statements in such jurisdictions with such descriptions of collateral (including “all
assets” or “all personal property” or other words to that effect) and other information set forth
therein as the Collateral Agent may deem necessary or desirable for the purposes set forth in the
preceding sentence. Each Grantor also ratifies its authorization for the Collateral Agent to file
in any such jurisdiction any initial financing statements or amendments thereto if filed prior to
the date hereof. The Collateral Agent is further authorized to file with the United States Patent
and Trademark Office or United States Copyright Office (or any successor office or any similar
office in any other country) such documents as may be necessary or advisable for the purpose of
perfecting, confirming, continuing, enforcing or protecting the security interests granted by each
Grantor, without the signature of any Grantor, and naming any Grantor or the Grantors as debtors
and the Collateral Agent as secured party. The Borrower will pay the costs of, or incidental to,
any Intellectual Property Filings and any recording or filing of any financing or continuation
statements or other documents recorded or filed pursuant hereto.

     (b) Such Grantor will not (i) change its name or organizational form or structure or (ii)
change its location (determined as provided in UCC Section 9-307) unless it shall have given the
Collateral Agent 10 days’ prior written notice thereof. Such Grantor will not effect or permit any
change referred to in the preceding sentence or become bound, as provided in UCC Section 9 203(d)
or otherwise, by a security agreement entered into by another Person, unless all filings have been
made (or will be made in a timely fashion) under the UCC or any other applicable law that are
required to perfect (to the extent such perfection is otherwise required hereunder or under any
other Loan Document) the Transaction Liens (except any continuation statements that are to be filed
more than six months after the date of such change).

     (c) If any of its Collateral is in the possession or control of a warehouseman, bailee or
agent at any time, and an Event of Default shall have occurred and be continuing, such Grantor
will, upon the request of the Collateral Agent, (i) notify such warehouseman, bailee or agent of
the relevant Transaction Liens, (ii) instruct such warehouseman, bailee or agent to hold all such
Collateral for the Collateral Agent’s account subject to the Collateral Agent’s instructions,

17

 

(iii) use commercially reasonable efforts to cause such warehouseman, bailee or agent to
Authenticate a Record acknowledging that it holds possession of such Collateral for the Collateral
Agent’s benefit and (iv) make such Authenticated Record available to the Collateral Agent.

     (d) Such Grantor will not sell, lease, exchange, assign or otherwise dispose of, or grant any
option with respect to, any of its Collateral if (i) doing so would violate a covenant in the
Credit Agreement or (ii) except in the case of any such sales, leases, exchanges, assignments, or
other dispositions of, or grants of options with respect to, inventory in the ordinary course of
business, the maturity of any or all of the Secured Obligations shall have been accelerated.
Concurrently with any sale, lease or other disposition (except a sale or disposition to another
Grantor or a lease) not prohibited by the preceding sentence, the Transaction Liens on the assets
sold or disposed of (but not in any Proceeds arising from such sale or disposition) will be
released and cease immediately without any notice to or action by the Collateral Agent or any other
Secured Party. The Collateral Agent will, at the Borrower’s expense, execute and deliver to the
relevant Grantor such documents as such Grantor shall reasonably request to evidence the fact that
any asset so sold or disposed of is no longer subject to a Transaction Lien.

     (e) Such Grantor will, promptly upon request, provide to the Collateral Agent all information
and evidence concerning such Grantor’s Collateral that the Collateral Agent may reasonably request
from time to time to enable it to enforce the provisions of the Security Documents.

     (f) Notwithstanding any to the contrary in this Agreement or any other Loan Document, no
control agreement shall be required in respect of any Deposit Account or Securities Account.

     SECTION 6. Recordable Intellectual Property. Each Grantor covenants as follows:

     (a) On the Funding Date (in the case of an Original Grantor) or the date on which it signs and
delivers its first Security Agreement Supplement (in the case of any other Grantor), such Grantor
will sign and deliver to the Collateral Agent Intellectual Property Security Agreements with
respect to all Recordable Intellectual Property then owned by it. Within 30 days after each March
31 and September 30 thereafter (starting with September 30, 2011), it will sign and deliver to the
Collateral Agent an appropriate Intellectual Property Security Agreement covering any Recordable
Intellectual Property owned by it on such March 31 or September 30 that is not covered by any
previous Intellectual Property Security Agreement so signed and delivered by it. The Collateral
Agent is hereby authorized by each Grantor to make all Intellectual Property Filings

18

 

necessary to record the Transaction Liens on such Recordable Intellectual Property.

     (b) Such Grantor will notify the Collateral Agent promptly if it knows that any application or
registration relating to any Recordable Intellectual Property owned or licensed by it may become
abandoned or dedicated to the public, or of any adverse determination or development (including the
institution of, or any adverse determination or development in, any proceeding in the United States
Copyright Office, the United States Patent and Trademark Office or any court) regarding such
Grantor’s ownership of such Recordable Intellectual Property, its right to register or patent the
same, or its right to keep and maintain the same; provided that the foregoing shall not apply to
the extent that any such event, individually or together with all such events, would not reasonably
be expected to have a Material Adverse Effect. If any of such Grantor’s rights to any Recordable
Intellectual Property are infringed, misappropriated or diluted by a third party in a manner that
materially and adversely affects such Grantor’s business, such Grantor will notify the Collateral
Agent within 30 days after it learns thereof and will, to the extent it reasonably determines that
doing so is necessary or economically desirable for the operation of the business under the
circumstances, promptly sue for infringement, misappropriation or dilution and to recover any and
all damages for such infringement, misappropriation or dilution, and take such other actions as
such Grantor shall reasonably deem appropriate under the circumstances to protect such Recordable
Intellectual Property.

     (c) Upon the occurrence and during the continuance of an Event of Default, if requested by the
Collateral Agent, each Grantor shall use its commercially reasonable efforts to obtain all
requisite consents or approvals by the licensor of each Copyright License, Patent License or
Trademark License under which such Grantor is a licensee to effect the assignment of all such
Grantor’s right, title and interest thereunder to the Collateral Agent, for the ratable benefit of
the Secured Parties, or its designee.

     SECTION 7. Investment Property. Each Grantor represents, warrants and covenants as follows:

     (a) Certificated Securities. On the Funding Date (in the case of an Original Grantor) or the
date on which it signs and delivers its first Security Agreement Supplement (in the case of any
other Grantor), such Grantor will deliver to the Collateral Agent as Collateral hereunder all
certificates representing Pledged Certificated Securities then owned by such Grantor. Thereafter,
whenever such Grantor acquires any other certificate representing a Pledged Certificated Security,
such Grantor will promptly, and in any event within 5 Business Days, deliver such certificate to
the Collateral Agent as Collateral hereunder. The Grantors shall have the right to not comply with
the preceding

19

 

two sentences with respect to Pledged Certificated Securities (other than Pledged Certificated
Securities issued by any Subsidiary) having an aggregate value, for both such sentences for all
Grantors, not in excess of $1,000,000). The provisions of this subsection are subject to the
limitation in Section 7(g) in the case of voting Equity Interests in a Foreign Subsidiary.

     (b) Uncertificated Securities. On the Funding Date (in the case of an Original Grantor) or
within 5 Business Days following the date on which it signs and delivers its first Security
Agreement Supplement (in the case of any other Grantor), such Grantor will enter into (and, if the
relevant issuer is a Subsidiary, cause, or if the relevant issuer is not a Subsidiary, use
commercially reasonable efforts to cause, the relevant issuer to enter into) an Issuer Control
Agreement in respect of each Pledged Uncertificated Security then owned by such Grantor and deliver
such Issuer Control Agreement to the Collateral Agent (which shall enter into the same).
Thereafter, whenever such Grantor acquires any other Pledged Uncertificated Security, such Grantor
will promptly, and in any event within 5 Business Days, enter into (and, if the relevant issuer is
a Subsidiary, cause, or if the relevant issuer is not a Subsidiary, use commercially reasonable
efforts to cause, the relevant issuer to enter into) an Issuer Control Agreement in respect of such
Pledged Uncertificated Security and deliver such Issuer Control Agreement to the Collateral Agent
(which shall enter into the same). The Grantors shall have the right to not comply with the
preceding two sentences with respect to Pledged Uncertificated Securities (other than Pledged
Uncertificated Securities issued by any Subsidiary) having an aggregate value, for both such
sentences for all Grantors, not in excess of $1,000,000). The provisions of this subsection are
subject to the limitation in Section 7(g) in the case of voting Equity Interests in a Foreign
Subsidiary.

     (c) Perfection as to Certificated Securities. When such Grantor delivers the certificate
representing any Pledged Certificated Security owned by it to the Collateral Agent and complies
with Section 7(e) in connection with such delivery, (i) the Transaction Lien on such Pledged
Certificated Security will be perfected, subject to no prior Liens or rights of others (other than,
in the case of any Pledged Certificated Security issued by a Person not organized under the laws of
the United States or any State thereof or the District of Columbia, rights arising under foreign
law), (ii) the Collateral Agent will have Control of such Pledged Certificated Security and (iii)
the Collateral Agent (unless it has notice of any adverse claim with respect thereto) will be a
protected purchaser (within the meaning of UCC Section 8-303) thereof.

     (d) Perfection as to Uncertificated Securities. When such Grantor, the Collateral Agent and
the issuer of any Pledged Uncertificated Security owned by such Grantor enter into an Issuer
Control Agreement with respect thereto, (i) the Transaction Lien on such Pledged Uncertificated
Security will be perfected,

20

 

subject to no prior Liens of others (other than, in the case of any Pledged Uncertificated
Security issued by a Person not organized under the laws of the United States or any State thereof
or the District of Columbia, Liens arising under foreign law), (ii) the Collateral Agent will have
Control of such Pledged Uncertificated Security and (iii) the Collateral Agent (unless it has
notice of any adverse claim with respect thereto) will be a protected purchaser (within the meaning
of UCC Section 8-303) thereof.

     (e) Delivery of Pledged Certificates. All certificates representing Pledged Certificated
Securities, when delivered to the Collateral Agent, will be in suitable form for transfer by
delivery, or accompanied by duly executed instruments of transfer or assignment in blank in form
reasonably satisfactory to the Collateral Agent.

     (f) Communications. Each Grantor will promptly give to the Collateral Agent copies of any
notices and other communications received by it with respect to (i) Pledged Securities registered
in the name of such Grantor or its nominee and (ii) Pledged Security Entitlements as to which such
Grantor is the Entitlement Holder, in each case (x) upon the Collateral Agent’s request, while an
Event of Default has occurred and is continuing or (y) in the case of Securities of any Subsidiary,
relating to any matter that would reasonably be expected to have a Material Adverse Effect.

     (g) Foreign Subsidiaries. A Grantor will not be obligated to comply with the provisions of
this Section at any time with respect to any voting Equity Interest in a Foreign Subsidiary if and
to the extent (but only to the extent) that such voting Equity Interest is excluded from the
Transaction Liens at such time pursuant to clause (B) of the proviso at the end of Section 3(a)
and/or the comparable provisions of one or more Security Agreement Supplements.

     (h) Compliance with Applicable Foreign Laws. If at any time and so long as (i) the Collateral
includes any Equity Interest in a Foreign Subsidiary and (ii) an Event of Default has occurred and
is continuing, the relevant Grantor will upon reasonable request of the Collateral Agent take all
such action as may be required and available under the laws of such foreign jurisdiction to ensure
that the Transaction Lien on such Collateral ranks prior to all Liens and rights of others therein
other than Permitted Liens that have priority over the Transaction Liens by operation of law.

     (i) Certification of Limited Liability Company and Partnership Interests. Any limited
liability company and any partnership that is a direct subsidiary of any Grantor and whose Equity
Interests are pledged hereunder shall either (i) not include in its operative documents any
provision that any Equity Interests in such limited liability company or such partnership be a
“security” as

21

 

defined under Article 8 of the Uniform Commercial Code, or (ii) certificate any Equity
Interests in any such limited liability company or such partnership. To the extent an interest in
any limited liability company or partnership that is a direct subsidiary of any Grantor and pledged
hereunder is certificated or becomes certificated, each such certificate shall be delivered to the
Collateral Agent pursuant to Section 7(a) (subject to Section 7(g))and such Grantor shall fulfill
all other requirements under Section 7 applicable in respect thereof.

     (j) Instruments. (i) On the Funding Date (in the case of an Original Grantor) or within 5
Business Days of the date on which it signs and delivers its first Security Agreement Supplement
(in the case of any other Grantor), such Grantor will deliver to the Collateral Agent as Collateral
hereunder all Pledged Specified Instruments then owned by such Grantor. Thereafter, whenever such
Grantor acquires any other Pledged Specified Instrument, such Grantor will promptly, and in any
event within 5 Business Days, deliver such Pledged Specified Instrument to the Collateral Agent as
Collateral hereunder. All such Pledged Specified Instruments owned by such Grantor, when delivered
to the Collateral Agent, will be indorsed to the order of the Collateral Agent, or accompanied by
duly executed instruments of assignment all in form reasonably satisfactory to the Collateral
Agent. Upon the delivery of any Pledged Specified Instrument owned by such Grantor to the
Collateral Agent, the Transaction Lien on such Collateral will be perfected, subject to no prior
Liens or rights of others other than inchoate tax liens or Permitted Liens that have priority over
the Transaction Liens by operation of law.

     (ii) So long as no Event of Default shall have occurred and be continuing, the
Collateral Agent will, promptly upon request by the relevant Grantor, make appropriate
arrangements for making any Pledged Instrument available to it for purposes of
presentation, collection or renewal (any such arrangement to be effected, to the extent
deemed appropriate by the Collateral Agent, against trust receipt or like document).

     (k) Letter-of-Credit Rights. Each Grantor will, upon the request of the Collateral Agent
after the occurrence and during the continuance of an Event of Default, use commercially reasonable
efforts to obtain from other Persons agreements evidencing Control of the Collateral Agent over any
Collateral that are Letter-of-Credit Rights in excess of $5,000,000 individually where confirmation
of the Control of the Collateral Agent over the particular Letter-of-Credit Rights is required in
order to perfect a security interest therein.

     SECTION 8. Material Government Contracts. Each Grantor represents, warrants and covenants
as follows:

22

 

     (a) In the case of an Original Grantor, Schedule 1 lists all Material Government Contracts to
which such Grantor is a party as of the Funding Date. In the case of any other Grantor, Schedule 1
to its first Security Agreement Supplement will list all Material Government Contracts to which
such Grantor is a party as of the date on which it signs and delivers such Security Agreement
Supplement. Within 60 days after the Funding Date (in the case of an Original Grantor) or after
the date on which it signs and delivers its first Security Agreement Supplement (in the case of any
other Grantor) such Grantor will use commercially reasonable efforts to comply with FACA and other
similar applicable state or local law in respect of such Material Government Contracts and in
connection therewith, (x) if any such Material Government Contract is with the Federal Government,
execute and deliver to the Collateral Agent assignments and notices of assignment, substantially in
the forms of Exhibits G-1 and G-2, with respect to each of its Material Government Contracts with
the Federal Government and (y) if any such Material Government Contract is with a state or local
government or agency, execute and deliver to the Collateral Agent all assignments, notices of
assignment and other documents required to be filed with any state or local government or agency to
insure that such Grantor’s Material Government Contracts with such government or agency are validly
assigned to the Collateral Agent to the extent that such validity is governed by applicable
provisions of state or local law.

     (b) Each Grantor will, from time to time, amend and supplement the relevant Schedule 1 to
include each Material Government Contract entered into by it after the Funding Date (in the case of
an Original Grantor) or the date on which it signs and delivers its first Security Agreement
Supplement (in the case of any other Grantor), by delivering to the Collateral Agent a supplemental
schedule of Material Government Contracts. Within 60 days after the delivery of such amended
Schedule 1, such Grantor will use commercially reasonable efforts to comply with FACA and other
similar applicable state laws and in connection therewith, (x) if any such Material Government
Contract is with the Federal Government, execute and deliver to the Collateral Agent assignments
and notices of assignment, substantially in the forms of Exhibits G-1 and G-2, with respect to each
Material Government Contract with the Federal Government listed on such supplemental schedule and
(y) if any such Material Government Contract is with a state or local government or agency, execute
and deliver to the Collateral Agent all assignments, notices of assignment and other documents
required to be filed with any state or local government or agency to insure that such Grantor’s
Material Government Contracts with such government or agency are validly assigned to the Collateral
Agent to the extent that such validity is governed by applicable provisions of state or local law.

     (c) If an Event of Default shall have occurred, shall not have been cured, remedied or waived
within 5 days of such occurrence and shall be

23

 

continuing (or if the maturity of the Loans shall have been accelerated pursuant to Article 7
of the Credit Agreement), the Collateral Agent may, at the Borrower’s expense:

     (i) file, deliver and record with the Federal Government in accordance with FACA any
or all assignments and/or notices of assignment executed and delivered to the Collateral
Agent pursuant to subsection (a) or (b) above; and

     (ii) file, deliver and/or record with the relevant state or local government or
agency any or all assignments, notices of assignment and/or other documents executed and
delivered to the Collateral Agent pursuant to subsection (a) or (b) above.

     (d) When the Collateral Agent files any notice of assignment referred to in subsection (a) or
(b) above with the governmental authority or agency or other office described therein, the filing
of such notice will constitute a valid assignment of the Material Government Contract identified
therein, to the extent that such validity is governed by FACA.

     (e) It is understood and agreed that except with respect to Material Government Contracts (as
set forth in this Section 8), the Grantors shall not be required to comply with FACA or other
similar applicable state or local law with respect to contracts with Governmental Authorities, or
accounts receivable on which a Governmental Authority is the obligor.

     SECTION 9. Cash Collateral Accounts. If and when the Grantors shall be required by any Loan
Document to provide cash collateral, the Collateral Agent will establish with respect to each
Grantor an account (its “Cash Collateral Account”), in the name and under the exclusive control of
the Collateral Agent, into which all amounts owned by such Grantor that are to be deposited therein
pursuant to the Loan Documents shall be deposited from time to time. Funds held in any Cash
Collateral Account may, until withdrawn, be invested and reinvested in such Permitted Investments
as the relevant Grantor shall request from time to time; provided that if an Event of Default shall
have occurred and be continuing, the Collateral Agent may select such Permitted Investments.
Subject to Section 15, withdrawal of funds on deposit in any Cash Collateral Account shall be
permitted if, as and when expressly so provided in or in respect of the applicable provision of the
Loan Documents pursuant to which such Cash Collateral Account was required to be established.

     SECTION 10. Commercial Tort Claims. Each Grantor represents, warrants and covenants as
follows:

24

 

     (a) In the case of an Original Grantor, Schedule 2 accurately describes, with the specificity
required to satisfy Official Comment 5 to UCC Section 9-108, each Material Commercial Tort Claim
with respect to which such Original Grantor is the claimant as of the Funding Date. In the case of
any other Grantor, Schedule 2 to its first Security Agreement Supplement will accurately describe,
with the specificity required to satisfy said Official Comment 5, each Material Commercial Tort
Claim with respect to which such Grantor is the claimant as of the date on which it signs and
delivers such Security Agreement Supplement.

     (b) If any Grantor acquires a Material Commercial Tort Claim after the Funding Date (in the
case of an Original Grantor) or the date on which it signs and delivers its first Security
Agreement Supplement (in the case of any other Grantor), such Grantor will promptly sign and
deliver to the Collateral Agent a Security Agreement Supplement granting a security interest in
such Commercial Tort Claim (which shall be described therein with the specificity required to
satisfy said Official Comment 5) to the Collateral Agent for the benefit of the Secured Parties.

     SECTION 11. Transfer of Record Ownership. At any time when an Event of Default shall have
occurred and be continuing, the Collateral Agent may (and to the extent that action by it is
required, the relevant Grantor, if directed to do so by the Collateral Agent, will as promptly as
practicable) cause each of the Pledged Securities (or any portion thereof specified in such
direction) to be transferred of record into the name of the Collateral Agent or its nominee;
provided that if no Event of Default is continuing, to the extent any of the Pledged Securities (or
a portion thereof) have been transferred of record into the name of the Collateral Agent or its
nominee, the Collateral Agent will cooperate reasonably with the relevant Grantor to cause such
Pledged Security (or portion thereof) to be re-registered (as promptly as practicable) in the name
of such Grantor. Each Grantor will take any and all actions reasonably requested by the Collateral
Agent to facilitate compliance with this Section. If the provisions of this Section are
implemented, Section 7(b) shall not thereafter apply to any Pledged Security that is registered in
the name of the Collateral Agent or its nominee. The Collateral Agent will promptly give to the
relevant Grantor copies of any notices and other communications received by the Collateral Agent
with respect to Pledged Securities registered in the name of the Collateral Agent or its nominee.

     SECTION 12. Right to Vote Securities. (a) Unless an Event of Default shall have occurred
and be continuing, each Grantor will have the right, from time to time, to vote and to give
consents, ratifications and waivers with respect to any Pledged Security owned by it and the
Financial Asset underlying any Pledged Security Entitlement owned by it, and the Collateral Agent
will, upon receiving a written request from such Grantor, promptly deliver to such Grantor or as

25

 

specified in such request such proxies, powers of attorney, consents, ratifications and
waivers in respect of any such Pledged Security that is registered in the name of, or held by, the
Collateral Agent or its nominee or any such Pledged Security Entitlement as to which the Collateral
Agent or its nominee is the Entitlement Holder, in each case as shall be specified in such request
and be in form and substance reasonably satisfactory to the Collateral Agent.

     (b) If an Event of Default shall have occurred and be continuing, and after written notice
from the Collateral Agent to such Grantor, the Collateral Agent will have the exclusive right to
the extent permitted by law (and in the case of a pledged interest in a partnership or LLC, by the
relevant partnership agreement, limited liability company agreement, operating agreement or other
governing document) to vote, to give consents, ratifications and waivers and to take any other
action with respect to the Pledged Investment Property, the other Pledged Equity Interests and the
Financial Assets underlying the Pledged Security Entitlements, with the same force and effect as if
the Collateral Agent were the absolute and sole owner thereof, and each Grantor will take all such
action as the Collateral Agent may reasonably request from time to time to give effect to such
right.

     SECTION 13. Certain Cash Distributions. (a) Unless an Event of Default shall have occurred
and be continuing, each Grantor will have the right to receive and retain all Cash Distributions in
respect of any Pledged Equity Interest or Pledged Indebtedness owned by it and the Financial Asset
underlying any Pledged Security Entitlement owned by it, and the Collateral Agent will, upon
receiving a written request from such Grantor, promptly deliver to such Grantor or as specified in
such request such proxies, powers of attorney, consents, ratifications and waivers in respect of
any such Pledged Security that is registered in the name of, or held by, the Collateral Agent or
its nominee) or any such Pledged Security Entitlement as to which the Collateral Agent or its
nominee is the Entitlement Holder, in each case as shall be specified in such request and be in
form and substance reasonably satisfactory to the Collateral Agent.

     (b) If an Event of Default shall have occurred and be continuing, all Cash Distributions
received by any Grantor in respect of any Pledged Equity Interest or Pledged Indebtedness owned by
it or the Financial Asset underlying any Pledged Security Entitlement owned by it shall be received
in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such
Grantor and shall be forthwith paid over to the Collateral Agent in the same form as so received
(with any necessary indorsement).

     SECTION 14. Remedies upon Event of Default. (a) If an Event of Default shall have occurred
and be continuing, the Collateral Agent may exercise

26

 

(or cause its sub-agents to exercise) any or all of the remedies available to it (or to such
sub-agents) under the Security Documents.

     (b) Without limiting the generality of the foregoing, if an Event of Default shall have
occurred and be continuing, the Collateral Agent may exercise on behalf of the Secured Parties all
the rights of a secured party under the UCC (whether or not in effect in the jurisdiction where
such rights are exercised) with respect to any Personal Property Collateral and, in addition, the
Collateral Agent may, without being required to give any notice, except as herein provided or as
may be required by mandatory provisions of law, sell or otherwise dispose of the Collateral or any
part thereof in one or more parcels at public or private sale, at any exchange, broker’s board or
at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery,
at such time or times and at such price or prices and upon such other terms as the Collateral Agent
may deem commercially reasonable, irrespective of the impact of any such sales on the market price
of the Collateral. To the maximum extent permitted by applicable law, any Secured Party may be the
purchaser of any or all of the Collateral at any such sale and (with the consent of the Collateral
Agent, which may be withheld in its discretion) shall be entitled, for the purpose of bidding and
making settlement or payment of the purchase price for all or any portion of the Collateral sold at
any such public sale, to use and apply all of any part of the Secured Obligations as a credit on
account of the purchase price of any Collateral payable at such sale. Upon any sale of Collateral
by the Collateral Agent (including pursuant to a power of sale granted by statute or under a
judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall
be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such
purchaser or purchasers shall not be obligated to see to the application of any part of the
purchase money paid to the Collateral Agent or such officer or be answerable in any way for the
misapplication thereof. Each purchaser at any such sale shall hold the property sold absolutely
free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the
extent permitted by law) all rights of redemption, stay or appraisal that it now has or may at any
time in the future have under any rule of law or statute now existing or hereafter enacted. The
Collateral Agent shall not be obliged to make any sale of Collateral regardless of notice of sale
having been given. The Collateral Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned. To the maximum extent permitted by law,
each Grantor hereby waives any claim against any Secured Party arising because the price at which
any Collateral may have been sold at such a private sale was less than the price that might have
been obtained at a public sale, even if the Collateral Agent accepts the first offer received and
does not offer such Collateral to more than one offeree. The Collateral Agent may disclaim any
warranty, as to title or as to any other matter, in connection with such sale or other

27

 

disposition, and its doing so shall not be considered adversely to affect the commercial
reasonableness of such sale or other disposition.

     (c) If the Collateral Agent sells any of the Collateral upon credit, the Grantors will be
credited only with payment actually made by the purchaser and received by the Collateral Agent. In
the event the purchaser fails to pay for the Collateral, the Collateral Agent may resell the same,
subject to the same rights and duties set forth herein.

     (d) Notice of any such sale or other disposition shall be given to the relevant Grantor(s) as
(and if) required by Section 17.

     (e) For the purpose of enabling the Collateral Agent to exercise rights and remedies under
this Agreement at such time as the Collateral Agent shall be lawfully entitled to exercise such
rights and remedies, each Grantor hereby grants to the Collateral Agent an irrevocable license
(exercisable without payment of royalty or other compensation to the Grantors), to use, license or
sublicense any of the Collateral consisting of Intellectual Property now owned or hereafter
acquired by such Grantor, and including in such license access to all media in which any of the
licensed items may be recorded or stored and to all computer software and programs used for the
compilation or printout thereof; provided that, without limiting any other rights and remedies of
the Collateral Agent under this Agreement, any other Loan Document or applicable law, nothing in
the foregoing license grant shall be construed as granting the Collateral Agent rights in and to
such Collateral in contravention of any License existing and made available to the Collateral Agent
as of the date hereof. The foregoing license grant may be exercised by the Collateral Agent only
upon the occurrence and during the continuation of an Event of Default; provided, however, that any
license or sublicense granted by the Collateral Agent in accordance herewith shall be binding upon
each Grantor notwithstanding any subsequent cure of an Event of Default.

     (f) The foregoing provisions of this Section shall not apply to Real Property Collateral other
than Fixtures as to which such provisions shall apply to the extent such Fixtures are governed by
Article 9 of the UCC.

     SECTION 15. Application of Proceeds. (a) If an Event of Default shall have occurred and be
continuing, the Collateral Agent may apply (i) any cash held in the Collateral Accounts and (ii)
the proceeds of any sale or other disposition of all or any part of the Collateral, in the
following order of priorities:

     first, to pay the expenses of such sale or other disposition, including reasonable
compensation to agents of and counsel for the Collateral Agent, and all expenses,
liabilities and advances incurred or

28

 

made by the Collateral Agent in connection with the Security Documents, and any other
amounts then due and payable to the Collateral Agent pursuant to Section 16 or pursuant to
Section 9.03 of the Credit Agreement;

     second, to pay ratably all accrued and unpaid interest (including Post-Petition
Interest) on the Secured Obligations payable under the Credit Agreement, until payment in
full of all such interest shall have been made;

     third, to pay the unpaid principal of the Secured Obligations (including all payments
in respect of Bank Product Obligations) ratably (or provide for the payment thereof
pursuant to Section 15(b)), until payment in full of all such Secured Obligations shall
have been made (or so provided for);

     fourth, to pay all other unpaid Secured Obligations ratably (or provide for the
payment thereof pursuant to Section 15(b)), until payment in full of all such other
Secured Obligations shall have been made (or so provided for); and

     finally, to pay to the relevant Grantor, or as a court of competent jurisdiction may
direct, any surplus then remaining from the proceeds of the Collateral owned by it;

provided that Collateral owned by a Subsidiary Guarantor and any proceeds thereof shall be applied
pursuant to the foregoing clauses first, second, third and fourth only to the extent permitted by
the limitation in Section 2(i). The Collateral Agent may make such distributions hereunder in cash
or in kind or, on a ratable basis, in any combination thereof.

     (b) If at any time any portion of any monies collected or received by the Collateral Agent
would, but for the provisions of this Section 15(b), be payable pursuant to Section 15(a) in
respect of a Contingent Secured Obligation, the Collateral Agent shall not apply any monies to pay
such Contingent Secured Obligation but instead shall request the holder thereof, at least 10 days
before each proposed distribution hereunder, to notify the Collateral Agent as to the maximum
amount of such Contingent Secured Obligation if then ascertainable (e.g., in the case of a letter
of credit, the maximum amount available for subsequent drawings thereunder). If the holder of such
Contingent Secured Obligation does not notify the Collateral Agent of the maximum ascertainable
amount thereof at least two Business Days before such distribution, such holder will not be
entitled to share in such distribution. If such holder does so notify the Collateral Agent as to
the maximum ascertainable amount thereof, the Collateral Agent will allocate to such holder a
portion of the monies to be distributed in such

29

 

distribution, calculated as if such Contingent Secured Obligation were outstanding in such
maximum ascertainable amount. However, the Collateral Agent will not apply such portion of such
monies to pay such Contingent Secured Obligation, but instead will hold such monies or invest such
monies in Permitted Investments. All such monies and Permitted Investments and all proceeds
thereof will constitute Collateral hereunder, but will be subject to distribution in accordance
with this Section 15(b) rather than Section 15(a). The Collateral Agent will hold all such monies
and Permitted Investments and the net proceeds thereof in trust until all or part of such
Contingent Secured Obligation becomes a Non-Contingent Secured Obligation, whereupon the Collateral
Agent at the request of the relevant Secured Party will apply the amount so held in trust to pay
such Non-Contingent Secured Obligation; provided that, if the other Secured Obligations theretofore
paid pursuant to the same clause of Section 15(a) (i.e., clause second or fourth) were not paid in
full, the Collateral Agent will apply the amount so held in trust to pay the same percentage of
such Non-Contingent Secured Obligation as the percentage of such other Secured Obligations
theretofore paid pursuant to the same clause of Section 15(a). If (i) the holder of such
Contingent Secured Obligation shall advise the Collateral Agent that no portion thereof remains in
the category of a Contingent Secured Obligation and (ii) the Collateral Agent still holds any
amount held in trust pursuant to this Section 15(b) in respect of such Contingent Secured
Obligation (after paying all amounts payable pursuant to the preceding sentence with respect to any
portions thereof that became Non-Contingent Secured Obligations), such remaining amount will be
applied by the Collateral Agent in the order of priorities set forth in Section 15(a).

     (c) In making the payments and allocations required by this Section, the Collateral Agent may
rely upon information supplied to it pursuant to Section 19(c). All distributions made by the
Collateral Agent pursuant to this Section shall be final (except in the event of manifest error)
and the Collateral Agent shall have no duty to inquire as to the application by any Secured Party
of any amount distributed to it.

     SECTION 16. Fees and Expenses; Indemnification. (a) Without duplication of (and without
limiting) the Borrower’s obligations under Section 9.03 of the Credit Agreement, the Borrower will:

     (i) reimburse the Collateral Agent for the amount of any taxes that the Collateral
Agent may have been required to pay by reason of the Transaction Liens or to free any
Collateral from any other Lien thereon; and

     (ii) indemnify the Collateral Agent for, or hold it harmless and defend it against,
any loss, liability or expense (including the reasonable

30

 

fees and expenses of its counsel and any experts or sub-agents appointed by it
hereunder) incurred or suffered by the Collateral Agent in connection with the Security
Documents, except to the extent that such loss, liability or expense arises from the gross
negligence or willful misconduct of the Collateral Agent or its Affiliates, officers,
directors, employees, advisors or agents, or a breach of any duty that the Collateral
Agent has under this Agreement (after giving effect to Sections 18 and 21).

     (b) If any transfer tax, documentary stamp tax or other tax is payable in connection with any
transfer or other transaction provided for in the Security Documents, the Borrower will pay (or
will reimburse the Collateral Agent to the extent the Collateral Agent has paid) such tax and
provide any required tax stamps to the Collateral Agent or as otherwise required by law.

     (c) Amounts payable by the Borrower under this Section 16 shall be paid promptly and in any
event not later than 10 days after written demand therefor, together with reasonable detail and
supporting documentation.

     SECTION 17. Authority to Administer Collateral.

     (a) Each Grantor irrevocably appoints the Collateral Agent its true and lawful attorney, with
full power of substitution, in the name of such Grantor, any Secured Party or otherwise, for the
sole use and benefit of the Secured Parties, but at the Borrower’s expense, to the extent permitted
by law to exercise, at any time and from time to time while an Event of Default shall have occurred
and be continuing, all or any of the following powers with respect to all or any of such Grantor’s
Collateral:

     (i) to demand, sue for, collect, receive and give acquittance for any and all monies
due or to become due upon or by virtue thereof,

     (ii) to settle, compromise, compound, prosecute or defend any action or proceeding
with respect thereto,

     (iii) to sell, lease, license or otherwise dispose of the same or the proceeds or
avails thereof, as fully and effectually as if the Collateral Agent were the absolute
owner thereof, and

     (iv) to extend the time of payment of any or all thereof and to make any allowance or
other adjustment with reference thereto;

provided that, except in the case of Personal Property Collateral that is perishable or threatens
to decline speedily in value or is of a type customarily sold on a recognized market, the
Collateral Agent will give the relevant Grantor at least ten days’ prior written notice of the time
and place of any public sale thereof or the

31

 

time after which any private sale or other intended disposition thereof will be made. Any such
notice shall (A) contain the information specified in UCC Section 9-613, (B) be Authenticated and
(C) be sent to the parties required to be notified pursuant to UCC Section 9-611(c); provided that,
if the Collateral Agent fails to comply with this sentence in any respect, its liability for such
failure shall be limited to the liability (if any) imposed on it as a matter of law under the UCC.

     (b) The foregoing provisions of this Section shall not apply to Real Property Collateral other
than Fixtures as to which such provisions shall apply to the extent such Fixtures are governed by
Article 9 of the UCC.

     SECTION 18. Limitation on Duty in Respect of Collateral. Beyond the exercise of reasonable
care in the custody and preservation thereof and accounting for monies received by it in connection
with any exercise of remedies provided for hereunder, the Collateral Agent will have no duty as to
any Collateral in its possession or control or in the possession or control of any sub-agent or
bailee or any income therefrom or as to the preservation of rights against prior parties or any
other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable
care in the custody and preservation of the Collateral in its possession or control if such
Collateral is accorded treatment substantially equal to that which it accords its own property, and
will not be liable or responsible for any loss or damage to any Collateral, or for any diminution
in the value thereof, by reason of any act or omission of any sub-agent or bailee selected by the
Collateral Agent in good faith, except to the extent that such liability arises from the Collateral
Agent’s gross negligence or willful misconduct.

     SECTION 19. General Provisions Concerning the Collateral Agent.

     (a) The provisions of Article 8 of the Credit Agreement shall inure to the benefit of the
Collateral Agent, and shall be binding upon all Grantors and all Secured Parties, in connection
with this Agreement and the other Security Documents. Without limiting the generality of the
foregoing, (i) the Collateral Agent shall not be subject to any fiduciary or other implied duties,
regardless of whether an Event of Default has occurred and is continuing, (ii) the Collateral 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 Security Documents that the
Collateral Agent is required in writing to exercise 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 of the Credit Agreement), and (iii) except as expressly set forth in the Loan Documents, the
Collateral Agent shall not have any duty to disclose, and shall not be liable for any failure to
disclose, any information relating to any Grantor that is communicated to or obtained by the bank
serving as Collateral Agent or any of its Affiliates in any capacity. The Collateral Agent shall
not be

32

 

responsible for the existence, genuineness or value of any Collateral or for the validity,
perfection, priority or enforceability of any Transaction Lien, whether impaired by operation of
law or by reason of any action or omission to act on its part under the Security Documents. The
Collateral Agent shall be deemed not to have knowledge of any Event of Default unless and until
written notice thereof is given to the Collateral Agent by the Borrower or a Secured Party.

     (b) Sub-Agents and Related Parties. The Collateral Agent may perform any of its duties and
exercise any of its rights and powers through one or more sub-agents appointed by it. The
Collateral Agent and any such sub-agent may perform any of its duties and exercise any of its
rights and powers through its Related Parties. The exculpatory provisions of Section 18 and this
Section shall apply to any such sub-agent and to the Related Parties of the Collateral Agent and
any such sub-agent.

     (c) Information as to Secured Obligations and Actions by Secured Parties. For all purposes of
the Security Documents, including determining the amounts of the Secured Obligations and whether a
Secured Obligation is a Contingent Secured Obligation or not, or whether any action has been taken
under any Secured Agreement, the Collateral Agent will be entitled to rely on information from (i)
its own records for information as to the Lenders, their Secured Obligations and actions taken by
them, (ii) any other Secured Party for information as to its Secured Obligations and actions taken
by it, to the extent that the Collateral Agent has not obtained such information from its own
records, and (iii) the Borrower, to the extent that the Collateral Agent has not obtained
information from the foregoing sources.

     (d) Refusal to Act. The Collateral Agent may refuse to act on any notice, consent, direction
or instruction from any Secured Parties or any agent, trustee or similar representative thereof
that, in the Collateral Agent’s opinion, (i) is contrary to law or the provisions of any Security
Document, (ii) may expose the Collateral Agent to liability (unless the Collateral Agent shall have
been indemnified, to its reasonable satisfaction, for such liability by the Secured Parties that
gave such notice, consent, direction or instruction) or (iii) is unduly prejudicial to Secured
Parties not joining in such notice, consent, direction or instruction.

     SECTION 20. Termination of Transaction Liens; Release of Collateral. (a) The Transaction
Liens granted by each Guarantor shall terminate when its Secured Guarantee is released pursuant to
Section 2(c).

     (b) The Transaction Liens granted by the Borrower shall terminate when all the Release
Conditions are satisfied.

33

 

     (c) The Transaction Liens granted by the Grantors shall be automatically released and
terminated during the Collateral Suspension Period pursuant to Section 9.16 of the Credit
Agreement, without notice to or action by the Collateral Agent or any other Secured Party. If
after the termination of the Transaction Liens in accordance with this clause (c) the Collateral
Reversion Date shall occur, the Transaction Liens shall be reinstated automatically and without any
further action on the part of any Person (and the Grantors shall take all action requested by the
Collateral Agent to evidence such reinstatement).

     (d) At any time before the Transaction Liens granted by the Grantors terminate, the Collateral
Agent may, at the written request of the Borrower, (i) release any Collateral (but not all or
substantially all the Collateral) with the prior written consent of the Required Lenders or (ii)
release all or substantially all the Collateral with the prior written consent of all Lenders.

     (e) Upon any termination of a Transaction Lien or release of Collateral, the Collateral Agent
will, at the expense of the relevant Grantor, promptly execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence the termination of such Transaction
Lien or the release of such Collateral, as the case may be.

     SECTION 21. Additional Guarantors and Grantors. Any Restricted Subsidiary may become a
party hereto by signing and delivering to the Collateral Agent a Security Agreement Supplement,
whereupon such Subsidiary shall become a “Guarantor” and a “Grantor” as defined herein.

     SECTION 22. Notices. Each notice, request or other communication given to any party
hereunder shall be given in accordance with Section 9.01 of the Credit Agreement, and in the case
of any such notice, request or other communication to a Grantor other than the Borrower, shall be
given to it in care of the Borrower.

     SECTION 23. No Implied Waivers; Remedies Not Exclusive. No failure by the Collateral Agent
or any Secured Party to exercise, and no delay in exercising and no course of dealing with respect
to, any right or remedy under any Security Document shall operate as a waiver thereof; nor shall
any single or partial exercise by the Collateral Agent or any Secured Party of any right or remedy
under any Loan Document preclude any other or further exercise thereof or the exercise of any other
right or remedy. The rights and remedies specified in the Loan Documents are cumulative and are
not exclusive of any other rights or remedies provided by law.

     SECTION 24. Successors and Assigns. This Agreement is for the benefit of the Collateral
Agent and the Secured Parties. If all or any part of any Secured

34

 

Party’s interest in any Secured Obligation is assigned or otherwise transferred, the
transferor’s rights hereunder, to the extent applicable to the obligation so transferred, shall be
automatically transferred with such obligation. This Agreement shall be binding on the Grantors
and their respective successors and assigns.

     SECTION 25. Amendments and Waivers. Neither this Agreement nor any provision hereof may be
waived, amended, modified or terminated except pursuant to an agreement or agreements in writing
entered into by the Collateral Agent, with the consent of such Lenders as are required to consent
thereto under Section 9.02 of the Credit Agreement. No such waiver, amendment or modification
shall (i) be binding upon any Grantor, except with its written consent, or (ii) affect the rights
of a Secured Party (other than a Lender) hereunder more adversely than it affects the comparable
rights of the Lenders hereunder, without the consent of such Secured Party.

     SECTION 26. Choice of Law. This Agreement shall be construed in accordance with and
governed by the laws of the State of New York, except as otherwise required by mandatory provisions
of law and except to the extent that remedies provided by the laws of any jurisdiction other than
the State of New York are governed by the laws of such jurisdiction.

     SECTION 27. Waiver of Jury Trial. EACH PARTY HERETO 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 ANY SECURITY DOCUMENT OR ANY TRANSACTION CONTEMPLATED
THEREBY (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 28. Severability. If any provision of any Security Document is invalid or
unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other
provisions of the Security Documents shall remain in full force and effect in such jurisdiction and
shall be liberally construed in favor of the Collateral Agent and the other Secured Parties in
order to carry out the intentions of the parties thereto as nearly as may be possible and (ii) the
invalidity or

35

 

unenforceability of such provision in such jurisdiction shall not affect the validity or
enforceability thereof in any other jurisdiction.

36

 

     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.

	 	 	 	 	 
	 	HUNTINGTON INGALLS INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as
      Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Guarantors:

	 	 	 	 	 
	 	[NAMES OF SUBSIDIARY GUARANTORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

37

 

EXHIBIT E

FORM OF GLOBAL INTERCOMPANY NOTE

New York, New York

March [_], 2011

     FOR VALUE RECEIVED, each of the undersigned, to the extent a borrower from time to time (each,
in such capacity, a “Payor”) from any other entity party hereto (each, in such capacity, a
“Payee”), hereby promises to pay on demand to the order of such Payee or its registered assigns, in
lawful money of the United States of America or such other currency as shall be agreed upon by such
Payor and such Payee in immediately available funds, at such location in the United States of
America as a Payee shall from time to time designate or at such other location as shall be agreed
upon by such Payor and such Payee, the unpaid principal amount of all loans, advances and other
credit extensions made by such Payee to such Payor that would, even if not evidenced by this Global
Intercompany Note, constitute Indebtedness (such loans, advances and other credit extensions,
“Intercompany Indebtedness”). Each Payor promises also to pay interest on the unpaid principal
amount of all such Intercompany Indebtedness in like money at said location from the date of the
incurrence of such Intercompany Indebtedness until paid at such rate per annum, if any, as shall be
agreed upon from time to time by such Payor and such Payee.

     Reference is made to the Credit Agreement dated as of March [_], 2011 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among
Huntington Ingalls Industries, Inc. (the “Company”), the Lenders party thereto, JPMorgan Chase
Bank, N.A. as Administrative Agent, Issuing Bank and Swingline Lender, and Credit Suisse AG, as
Swingline Lender. Capitalized terms used in this note (“Global Intercompany Note”) and not
otherwise defined herein have the meanings specified in the Credit Agreement.

     Anything in this Global Intercompany Note to the contrary notwithstanding, the Intercompany
Indebtedness evidenced by this Global Intercompany Note owed by any Payor that is a Loan Party to
any Payee that is not a Loan Party (any such Payor and Payee with respect to any such Intercompany
Indebtedness, an “Affected Payor” or “Affected Payee”, as relevant) shall be subordinate and junior
in right of payment, to the extent and in the manner hereinafter set forth, to the prior payment of
all Secured Obligations of such Affected Payor, including, without limitation, where applicable,
under such Affected Payor’s guarantee of the Secured Obligations (the Secured Obligations, and
other indebtedness and obligations in connection with any renewal, refunding, restructuring or
refinancing thereof, including interest thereon accruing after the commencement of any proceedings
referred to in clause (i) below at the contract rate (including, without limitation, any contract
rate

E-1 

 

applicable upon default) specified in the Credit Agreement, whether or not such interest is an
allowed or allowable claim in such proceeding, being hereinafter collectively referred to as
“Senior Indebtedness”):

     (i) In the event of any Bankruptcy Event relative to any Affected Payor or a like
event with respect to all or substantially all of its property, and in the event of any
proceedings for voluntary liquidation, dissolution or other winding up of such Affected
Payor constituting a Default or Event of Default under the Credit Agreement, whether or
not involving insolvency or bankruptcy, then (x) the holders of Senior Indebtedness shall
be paid in full in cash in respect of all amounts constituting Senior Indebtedness before
any Affected Payee is entitled to receive (whether directly or indirectly), or make any
demands for, any payment on account of this Global Intercompany Note from or on behalf of
the Affected Payor and (y) until the holders of Senior Indebtedness are paid in full in
cash in respect of all amounts constituting Senior Indebtedness, any payment or
distribution of any kind or character to which such Affected Payee would otherwise be
entitled in respect of this Global Intercompany Note from or on behalf of the Affected
Payor shall be made to the holders of Senior Indebtedness;

     (ii) if any Event of Default under Article VII of the Credit Agreement occurs and is
continuing with respect to any Senior Indebtedness, then no payment or distribution of any
kind or character shall be made by or on behalf of the Affected Payor or any other Person
on its behalf to the Affected Payee or any other Person on its behalf, directly or
indirectly in cash or other property or by set-off or in any other manner, with respect to
this Global Intercompany Note; and

     (iii) if any payment or distribution of any character, whether in cash, securities or
other property, in respect of this Global Intercompany Note shall (despite these
subordination provisions) be received by any Payee in violation of clause (i) or (ii)
before all Senior Indebtedness shall have been paid in full in cash, such payment or
distribution shall be held in trust for the benefit of, and shall be paid over or
delivered to, the holders of Senior Indebtedness (or their representatives), ratably
according to the respective aggregate amounts remaining unpaid thereon, to the extent
necessary to pay all Senior Indebtedness in full in cash.

     To the fullest extent permitted by law, no present or future holder of Senior Indebtedness
(such holders, the “Senior Creditors”) shall be prejudiced in its right to enforce the
subordination of this Global Intercompany Note by any act or failure to act on the part of any
Affected Payor or by any act or failure to act on the part of such holder or any trustee or agent
for such holder. Each Affected Payee and each Affected Payor hereby agree that the subordination
of this Global Intercompany Note is for the benefit of the Senior Creditors, and the Senior

E-2 

 

Creditors are obligees under this Global Intercompany Note to the same extent as if their
names were written herein as such and the Administrative Agent, on behalf of itself or the other
Senior Creditors, may proceed to enforce the subordination provisions herein to the extent
applicable.

     Nothing contained in the subordination provisions set forth above is intended to or will
impair, as between each Payor and each Payee, the obligations of such Payor, which are absolute and
unconditional, to pay to such Payee the principal of and interest on this Global Intercompany Note
as and when due and payable in accordance with its terms, or is intended to or will affect the
relative rights of such Payee and other creditors of such Payor other than the Senior Creditors.

     Each Payee is hereby authorized to record all Intercompany Indebtedness owing to it by Payor
(all of which shall be evidenced by this Global Intercompany Note), and all repayments or
prepayments thereof, in its books and records, such books and records constituting prima facie
evidence of the accuracy of the information contained therein.

     Upon execution and delivery after the date hereof by any Subsidiary of the Company of a
counterpart signature page hereto, such Subsidiary shall become a Payor or Payee, as applicable,
hereunder with the same force and effect thereafter as if originally named a Payor or Payee, as
applicable, hereunder. The rights and obligations of each Payor or Payee hereunder shall remain in
full force and effect notwithstanding the addition of any new Payor or Payee as a party to this
Global Intercompany Note.

     To the extent permitted by applicable law, each Payor hereby waives presentment, demand,
protest or notice of any kind in connection with this Global Intercompany Note. All payments under
this Global Intercompany Note shall be made without offset, counterclaim or deduction of any kind.

     THIS GLOBAL INTERCOMPANY NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

E-3 

 

EXHIBIT F

This instrument was prepared in consultation

with counsel in the State in which the

Property is located and, when recorded,

the recorded counterparts should be returned to:

Real Estate Department

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

 

DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT

AND FIXTURE FILING

dated as of ____ __, 2011

by

[NORTHROP GRUMMAN SHIPBUILDING, INC. (Formerly Known as Newport News

Shipbuilding and Dry Dock Company)],

a [Virginia] corporation,

the Grantor,

to

[TRUSTEE] [NOTE TO DRAFT: FOR VA PROPERTY MUST BE A VIRGINIA RESIDENT],

as Trustee,

for the benefit of

JPMORGAN CHASE BANK, N.A.

as Collateral Agent,

the Beneficiary

Property:

[           ]

[VA: This instrument affects certain real and personal property located in the City of ___________,

Commonwealth of Virginia. THIS IS A CREDIT LINE DEED OF TRUST]

 

[VA: THE CURRENT VALUE OF ALL VIRGINIA PROPERTY SECURING THE SECURED OBLIGATIONS IS $_________.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, THE MAXIMUM PRINCIPAL INDEBTEDNESS TO BE
SECURED UNDER ANY CONTINGENCY AT ANY ONE TIME BY THIS INSTRUMENT SHALL IN NO EVENT EXCEED
$________.]

This Instrument Contains After-acquired Property Provisions and Secures Obligations Containing
Provisions for Changes in Interest Rates . This Instrument Also Secures Future Advances. 

THIS INSTRUMENT CONSTITUTES A FIXTURE FILING [VA: UNDER VA. CODE ANN. § 8.9A-502(c).]

 

 

EXHIBIT F

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1

	Definitions and Interpretation

	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	6	 
	Section 1.02. Interpretation
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 2

	Certain Warranties And Covenants Of The Grantor

	 
	 	 	 	 
	Section 2.01. Title; Further Assurances; Existence and Authority
	 	 	11	 
	Section 2.02. Secured Obligations
	 	 	12	 
	Section 2.03. Impositions
	 	 	12	 
	Section 2.04. Legal and Insurance Requirements
	 	 	12	 
	Section 2.05. Status and Care of the Property
	 	 	13	 
	Section 2.06. Permitted Contests
	 	 	13	 
	Section 2.07. Liens
	 	 	14	 
	Section 2.08. Transfer
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 3

	Insurance, Casualty and Condemnation

	 
	 	 	 	 
	Section 3.01. Insurance
	 	 	14	 
	Section 3.02. Casualty and Condemnation
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 4

	Certain Secured Obligations

	 
	 	 	 	 
	Section 4.01. Revolving Loans; Future Advances
	 	 	15	 
	Section 4.02. Interest After Default
	 	 	15	 
	Section 4.03. Changes in the Laws Regarding Taxation
	 	 	16	 
	Section 4.04. Indemnification
	 	 	16	 
	Section 4.05. Expenses
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 5

	Defaults, Remedies and Rights

	 
	 	 	 	 
	Section 5.01. Events of Default
	 	 	17	 
	Section 5.02. Remedies
	 	 	17	 
	Section 5.03. Waivers by the Grantor
	 	 	20	 
	Section 5.04. Jurisdiction and Process
	 	 	21	 

 

 

	 	 	 	 	 
	 	 	Page
	Section 5.05. Sales
	 	 	21	 
	Section 5.06. Proceeds
	 	 	23	 
	Section 5.07. Assignment of Leases
	 	 	25	 
	Section 5.08. Dealing with the Trust Property
	 	 	26	 
	Section 5.09. Sales
	 	 	26	 
	Section 5.10. Right to Perform Obligations
	 	 	27	 
	Section 5.11. Concerning the Beneficiary
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 6

	Security Agreement And Fixture Filing

	 
	 	 	 	 
	Section 6.01. Security Agreement
	 	 	28	 
	Section 6.02. Fixture Filing
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 7

	Miscellaneous

	 
	 	 	 	 
	Section 7.01. Release of Trust Property
	 	 	29	 
	Section 7.02. Notices
	 	 	30	 
	Section 7.03. Amendments In Writing
	 	 	30	 
	Section 7.04. Severability
	 	 	30	 
	Section 7.05. Binding Effect
	 	 	30	 
	Section 7.06. Governing Law
	 	 	31	 
	Section 7.07. Trustee
	 	 	31	 
	Section 7.08. Local Law Provisions
	 	 	32	 
	Section 7.09. Multisite Real Estate Transaction
	 	 	33	 
	Section 7.10. Subrogation to Rights of Prior Lienholder
	 	 	33	 
	Section 7.11. Waiver of Jury Trial
	 	 	33	 
	 
	 	 	 	 
	Exhibit A — Description of the Land
	 	 	 	 
	 
	 	 	 	 
	Exhibit B — Permitted Encumbrances
	 	 	 	 
	 
	 	 	 	 
	Appendix — Local Law Provisions
	 	 	 	 

3 

 

EXHIBIT F

     THIS DEED OF TRUST1, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE
FILING (“Deed of Trust”) dated as of _________ __, 2011 by [NORTHROP GRUMMAN SHIPBUILDING,
INC. (F/K/A NEWPORT NEWS SHIPBUILDING AND DRY DOCK COMPANY)], a [Virginia]
[corporation]2 (the “Grantor”), with a mailing address of [4101 Washington Avenue,
Newport News, VA 23607] to [ ], with a mailing address of [ ]3 (the “Trustee”) for
the benefit of JPMORGAN CHASE BANK, N.A., as Collateral Agent, with a mailing address of 1111
Fannin, 8th Floor, Houston, Texas 77002 (the “Beneficiary”).

WITNESSETH:4

This is a Credit Line Deed of Trust

Recitals

A. Credit Agreement. Pursuant and subject to the terms, conditions and provisions of that
certain Credit Agreement dated as of [   ], 2011 (as amended from time to time, the “Credit
Agreement”), among Huntington Ingalls Industries, Inc. (the “Borrower”), the Lenders party thereto
(the “Lenders”), and the Beneficiary, as Collateral Agent, Issuing Bank and a Swingline Lender and
Credit Suisse, as a Swingline Lender, the Lenders agreed to extend certain loans to the Borrower
[up to a maximum principal amount of $1,225,000,000 which indebtedness is finally due and payable
on the Maturity Date (as defined below), and the Issuing Banks have agreed to make letters of
credit available for the account of the Borrower.

B. Security Agreement. Pursuant to the Credit Agreement, the Borrower, certain subsidiaries party
thereto and the Beneficiary have executed and delivered the Guarantee and Security Agreement dated
as of [   ], 2011 (the “Security Agreement”).

C. Inducement for Subsidiary Guarantors. Grantor is a wholly-owned, direct or indirect subsidiary
of the Borrower and will continue to derive substantial direct and indirect benefits from the
credit extensions to the Borrower pursuant to the Credit Agreement and the other Security
Documents.

 

			
	1	 	Leasehold provisions to be added if leasehold
mortgage of any lease is delivered.
	 
	2	 	Grantors to be confirmed — Gulfport: Avondale
Enterprises Inc.; Pascagoula: Ingalls Shipbuilding, Inc., a Delaware
corporation]
	 
	3	 	Local counsel to confirm.
	 
	4	 	Capitalized terms are defined in, or by
reference in, Section 1.01.

 

 

D. Secured Obligations. The Lien of this Deed of Trust is being granted to secure payment,
performance and observance of the Secured Obligations, whether now or hereafter owed or owing.

E. Principal Amount Secured. This Deed of Trust secures a maximum principal amount of
$1,225,000,000 at any one time outstanding, plus accrued unpaid interest and costs.5

Granting Clauses

For and in consideration of the premises, and of the mutual covenants contained herein, in order to
secure the full, timely and proper payment, performance of and compliance with each and every one
of the Secured Obligations, the Grantor hereby irrevocably grants, bargains, sells, conveys,
assigns, transfers and warrants to the Trustee and its successors and/or assigns, for the benefit
of the Beneficiary, and its successors and/or assigns, forever, IN TRUST, with POWER OF SALE TO
SECURE THE SECURED OBLIGATIONS, if applicable, and right of entry as hereinafter provided (and to
the extent covered by the UCC, does hereby grant and warrant a continuing security interest in),
all of the property and rights described in the following Granting Clauses (the “Trust Property”),
to wit:

Granting Clause I

Land. All estate, right, title and interest of the Grantor in, to, under or derived from the
parcel or parcels of land located in the County of [   ], State of [  ], which are more
particularly listed or described in Exhibit A (the “Land”).

Granting Clause II

Improvements. All estate, right, title and interest of the Grantor in, to, under or derived from
all buildings, structures, facilities and other improvements of every kind and description now or
hereafter located on the Land, including all parking areas, roads, driveways, walks, fences, walls
and berms; all estate, right, title and interest of the Grantor in, to, under or derived from all
items of fixtures, equipment and personal property of every kind and description, in each case now
or hereafter located on the Land or affixed (actually or constructively) to the Improvements which
by the nature of their location thereon or affixation thereto, or otherwise, are real property
under applicable law or an interest in them arises under real estate law including: all drainage
and lighting facilities and other site improvements; all water, sanitary and storm sewer, drainage,
electricity, steam, gas, telephone, telecommunications and other utility equipment and facilities;
all plumbing, lighting, heating, ventilating, air-conditioning, refrigerating, incinerating,
compacting, fire protection and sprinkler, surveillance and security, vacuum cleaning, public
address and communications equipment and systems; all pipes, elevators, escalators, motors,
electrical, computer and other wiring,

 

			
	5	 	Local counsel to advise if it is required
that a maximum principal amount be stated.

F-2

 

machinery, fittings and racking and shelving; all walls, screens and partitions; and including all
materials intended for the construction, reconstruction, repair, replacement, alteration, addition
or improvement of or to such buildings, equipment, fixtures, structures and improvements, all of
which materials shall be deemed to be part of the Trust Property immediately upon delivery thereof
on the Land and to be part of the improvements immediately upon their incorporation therein (the
foregoing being collectively called the “Improvements”).

Personal Property and Equipment. All estate, right, title and interest of the Grantor in, to,
under or derived from all component parts of the Improvements, fixtures, chattels, “equipment” (as
defined in the UCC), and articles of personal property owned by the Grantor or in which the Grantor
has or shall acquire an interest, wherever situated, and now or hereafter located on, attached to
or contained in the Land or the Improvements, whether or not attached thereto and which are not
real property under applicable law, including all partitions, furniture and furnishings, heating,
lighting, plumbing, ventilating, air conditioning, refrigerating, gas, steam, electrical,
incinerating and compacting plants, systems, fixtures and equipment, elevators, call systems,
switchboards, sprinkler systems and other fire prevention, alarm and extinguishing apparatus and
materials, motors, machinery, pipes, conduits, dynamos, engines, compressors, generators, boilers,
stokers, furnaces, pumps, trunks, ducts, appliances, equipment, utensils, tools, implements,
fittings and fixtures (all of the foregoing being hereinafter collectively called the “Equipment”;
the Land with the Improvements thereon and the Equipment therein being collectively called the
“Property”). If the Lien of this Deed of Trust is subject to a security interest covering any
property described in this GRANTING CLAUSE II, then all of the right, title and interest of the
Grantor in and to any and all such property is hereby assigned to the Beneficiary, together with
the benefits of all deposits and payments now or hereafter made thereon by or on behalf of the
Grantor, and subject to all of the liens of, and terms and conditions applicable to, such security
interest.

Granting Clause III

Appurtenant Rights. All estate, right, title and interest of the Grantor in, to, under or derived
from all tenements, hereditaments and appurtenances now or hereafter relating to the Property; the
streets, roads, sidewalks and alleys abutting the Land; all strips and gores within or adjoining
the Land; all land in the bed of any body of water adjacent to the Land; all land adjoining the
Land created by artificial means or by accretion; all air space and rights to use air space above
the Land; all development or similar rights now or hereafter appurtenant to the Land; all rights of
ingress and egress now or hereafter appertaining to the Property; all easements, servitudes,
privileges and rights of way now or hereafter appertaining to the Property; and all royalties and
other rights now or hereafter appertaining to the use and enjoyment of the Property, including
alley, party walls, support, drainage, crop, timber, agricultural, horticultural, oil, gas and
other mineral, water stock, riparian and other water rights.

Granting Clause IV

F-3

 

Agreements. All estate, right, title and interest of the Grantor in, to, under or derived from all
Insurance Policies (including all unearned premiums and dividends thereunder), all guarantees and
warranties relating to the Property, all supply and service contracts for water, sanitary and storm
sewer, drainage, electricity, steam, gas, telephone and other utilities now or hereafter relating
to the Property and all other contract rights, now or hereafter relating to the use or operation of
the Property.

Granting Clause V 

Leases. All estate, right, title and interest of the Grantor in, to, under or derived from all
Leases now or hereafter in effect, whether or not of record, for the use or occupancy of all or any
part of the Property.

Granting Clause VI 

Rents, Issues and Profits. All estate, right, title and interest of the Grantor in, to, under or
derived from all rents, royalties, issues and profits, including during any period of redemption,
now or hereafter accruing with respect to the Property, including all rents and other sums now or
hereafter, including during any period of redemption, payable pursuant to the Leases; all other
sums now or hereafter, including during any period of redemption, payable with respect to the use,
occupancy, management, operation or control of the Property; and all other claims, rights and
remedies now or hereafter, including during any period of redemption, belonging or accruing with
respect to the Property, including deficiency rents and liquidated damages following default or
cancellation (the foregoing rents and other sums described in this Granting Clause VI being
collectively called the “Rents”).

Granting Clause VII

Proceeds. All estate, right, title and interest of the Grantor in, to, under or derived from all
proceeds of any Transfer, financing, refinancing or conversion into cash or liquidated claims,
whether voluntary or involuntary, of any of the Trust Property, including all insurance proceeds or
awards resulting from a Casualty Event or a Condemnation Event and title insurance proceeds under
any title insurance policy now or hereafter held by the Grantor, and all rights, dividends and
other claims of any kind whatsoever (including damage, secured, unsecured, priority and bankruptcy
claims) now or hereafter relating to any of the Trust Property.

Granting Clause VIII 

Permits. All estate, right, title and interest of the Grantor in, to, under or derived from all
licenses, authorizations, certificates, variances, concessions, grants, franchises, consents,
approvals and other permits now or hereafter appertaining to the Property (the foregoing being
collectively the “Permits”).

F-4

 

Granting Clause IX

Additional Property. All greater, additional or other estate, right, title and interest of the
Grantor in, to, under or derived from the Trust Property hereafter acquired by the Grantor,
including all right, title and interest of the Grantor in, to, under or derived from all
extensions, improvements, betterments, renewals, substitutions and replacements of, and additions
and appurtenances to, any of the Trust Property hereafter acquired by or released to the Grantor or
constructed or located on, or attached to, the Property, in each case, immediately upon such
acquisition, release, construction, location or attachment; all estate, right, title and interest
of the Grantor in, to, under or derived from any other property and rights which are, by the
provisions of any Secured Agreement, the Security Agreement or this Deed of Trust, required to be
subjected to the Lien hereof; all estate, right, title and interest of the Grantor in, to, under or
derived from any other property and rights which are necessary to maintain the Property and the
Grantor’s business or operations conducted therein as a going concern, in each case, to the fullest
extent permitted by law, without any further conveyance, mortgage, assignment or other act by the
Grantor; and all estate, right, title and interest of the Grantor in, to, under or derived from all
other property and rights which are by any instrument or otherwise subjected to the Lien hereof by
the Grantor or anyone acting on its behalf.

TO HAVE AND TO HOLD the Trust Property, together with all estate, right, title and interest of the
Grantor and anyone claiming by, through or under the Grantor in, to, under or derived from the
Trust Property and all rights and appurtenances relating thereto, to the Trustee for the benefit of
Beneficiary, forever.

Notwithstanding the foregoing, the following property is excluded from the foregoing security
interests: any property to the extent that the grant of a security interest therein is prohibited
by any applicable law or regulation, requires a consent not obtained of any Governmental Authority
pursuant to any applicable law or regulation, or is prohibited by, or constitutes a breach or
default under or results in the termination of or requires any consent not obtained under, any
contract, license, agreement, instrument or other document evidencing or giving rise to such
property, except to the extent that such law or regulation or the term in such contract, license,
agreement, instrument or other document providing for such prohibition, breach, default or
termination or requiring such consent is ineffective under applicable law. Grantor shall upon
request of the Beneficiary use all reasonable efforts to obtain any such required consent that is
reasonably obtainable.

     THE GRANTOR ADDITIONALLY COVENANTS AND AGREES WITH THE TRUSTEE AND THE BENEFICIARY AS FOLLOWS:

F-5

 

ARTICLE 1

Definitions and Interpretation

     Section 1.01. Definitions. (a) Capitalized terms used in this Deed of Trust, but not
otherwise defined herein, are defined in, or are defined by reference to, the Credit Agreement and
have the same meanings herein as therein.

     (b) In addition, as used herein, the following terms have the following meanings:

     “Article 9 Collateral” is defined in Section 6.01.

     “Bank Product Obligations” means obligations in respect of (i) Cash Management Services and
(ii) Secured Swap Agreements.

     “Bankruptcy Code” means the Bankruptcy Code of 1978, as amended.

     “Beneficiary” is defined in the Preamble.

     “Borrower” is defined in the Recitals.

     “Cash Collateral Account” is defined in Section 9 of the Security Agreement.

     “Cash Management Services” means any services provided from time to time by any Lender or any
of its Affiliates to any Loan Party in connection with (i) operating, collections, payroll, trust
or other depository or disbursement accounts, including automated clearinghouse, e-payable,
electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository,
information reporting, lockbox and stop payment services and (ii) commercial credit card,
purchasing card and merchant card services.

     “Casualty Event” means any damage to, or destruction of, any real or personal property or
improvements.

     “Collateral” is defined in the Security Agreement.

     “Collateral Agent” means JPMorgan Chase Bank, N.A., in its capacity as Collateral Agent.

     “Condemnation Event” means any condemnation or other taking or temporary or permanent
requisition of any property, any interest therein or right appurtenant thereto, or any change of
grade affecting any property, as the result of the exercise of any right of condemnation or eminent
domain. A transfer to a governmental authority in lieu or anticipation of condemnation shall be
deemed to be a Condemnation Event.

F-6

 

     “Contingent Secured Obligation” means, at any time, any Secured Obligation (or portion
thereof) that is contingent in nature at such time, including any Secured Obligation that is:

     (i) an obligation to reimburse a bank for drawings not yet made under a
letter of credit issued by it;

     (ii) an obligation under a Secured Swap Agreement to make payments that
cannot be quantified at such time;

     (iii) any other obligation (including any guarantee) that is contingent in
nature at such time; or

     (iv) an obligation to provide collateral to secure any of the foregoing
types of obligations.

     “Credit Agreement” is defined in the Recitals.

     “Deed of Trust” is defined in the Preamble.

     “Grantor” is defined in the Preamble.

     “Indemnitee” is defined in Section 4.04.

     “Impositions” means all real estate taxes, transfer taxes and sales and use taxes, assessments
(including all assessments for public improvements or benefits, whether or not commenced or
completed prior to the date hereof), and water, sewer or other rents, rates and charges, excises,
levies, license fees, permit fees, inspection fees and other authorization fees and other charges,
in each case whether general or special, ordinary or extraordinary, foreseen or unforeseen, of
every character (including all interest and penalties thereon), which at any time may be assessed,
levied, confirmed or imposed on or in respect of, or be a Lien upon, (i) the Property, any other
Trust Property or any interest therein, (ii) any occupancy, use or possession of, or activity
conducted on, the Property or (iii) the Rents, but excluding income, excess profits, franchise,
capital stock, estate, inheritance, succession, gift or similar taxes of the Grantor or the
Beneficiary or any Secured Party, except to the extent that such taxes of the Grantor or the
Beneficiary or any Secured Party are imposed in whole or in part in lieu of, or as a substitute
for, any taxes which are or would otherwise be Impositions.

     “Improvements” is defined in Granting Clause II.

     “Insurance Policies” means the insurance policies required to be maintained by the Grantor
with respect to the Property pursuant to the Credit Agreement.

     “Insurance Premiums” means all premiums payable under the Insurance Policies.

F-7

 

     “Land” is defined in Granting Clause I.

     “LC Reimbursement Obligations” means each payment required to be made by the Borrower under
the Credit Agreement in respect of any LC Disbursement, including payments in respect of
reimbursement of LC Disbursements, interest thereon and obligations to provide cash collateral.

     “Lease” means each lease, sublease, tenancy, subtenancy, license, franchise, concession or
other occupancy agreement relating to the Property, together with any guarantee of the obligations
of the tenant or occupant thereunder or any right to possession under any federal or state
bankruptcy code in the event of the rejection of any sublease by the sublandlord thereof or its
trustee pursuant to said code.

     “Legal Requirements” means all provisions of all applicable laws, statutes, codes, acts,
ordinances, orders, judgments, decrees, injunctions, rules, regulations, directions and
requirements of, permits from and agreements with, all governmental authorities, now or hereafter
applicable to the Property, any adjoining vaults, sidewalks, streets or ways, or any use or
condition thereof.

     “Maturity Date” means ______________, 20__, on which date the latest to mature of all Secured
Obligations will be finally due and payable.

     “Non-Contingent Secured Obligation” means at any time any Secured Obligation (or portion
thereof) that is not a Contingent Secured Obligation at such time.

     “Other Deeds of Trust” is defined in Section 7.09.

     “Permitted Disposition” means any (i) Transfer permitted by the Credit Agreement, (ii)
Transfer in connection with a Condemnation Event, and (iii) any Transfer in the nature of an
easement or similar encumbrance with respect to the Property granted by the Grantor to any
adjoining landowner or any railroad, telephone, cable television, water, sewer, utility or similar
company, municipality or other governmental subdivision in the ordinary course of business.

     “Permitted Liens” means (i) the Transaction Liens and (ii) any Liens permitted under Section
6.02 of the Credit Agreement.

     “Post-Default Rate” means, with respect to any amount payable by the Grantor hereunder which
is not paid when due, a rate per annum equal to (i) in the case of overdue principal of any Loan
(as defined in the Credit Agreement), 2.0% per annum plus the rate otherwise applicable to such
Loan as provided in Section 2.14 of the Credit Agreement or (ii) in the case of any other amount,
2% per annum plus the rate applicable to ABR Loans as provided in Section 2.14(a).

     “Post-Petition Interest” means any interest that accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or reorganization of any one or
more of the Grantors (or would accrue

F-8

 

but for the operation of applicable bankruptcy or insolvency laws), whether or not such
interest is allowed or allowable as a claim in any such proceeding.

     “Property” is defined in Granting Clause II.

     “Receiver” is defined in Section 5.02(a)(iv).

     “Release Conditions” means the following conditions for releasing the Lien of this Deed of
Trust:

     (i) all Commitments under the Credit Agreement shall have expired or been terminated;

     (ii) all Non-Contingent Secured Obligations shall have been paid in full; and

     (iii) no Contingent Secured Obligation (other than contingent indemnification and
expense reimbursement obligations as to which no claim shall have been asserted) shall
remain outstanding.

     “Rents” is defined in Granting Clause VI.

     “Restoration” means the restoration, repair, replacement or rebuilding of the Property after a
Casualty Event or Condemnation Event, and “Restore” means to restore, repair, replace or rebuild
the Property after a Casualty Event or Condemnation Event, in each case to a value and condition
substantially the same as the value and condition immediately prior to the Casualty Event or
Condemnation Event.

     “Secured Agreement”, when used with respect to any Secured Obligation, refers collectively to
each instrument, agreement or other document that sets forth obligations of the Borrower,
obligations of a guarantor and/or rights of the holder with respect to such Secured Obligation.

     “Secured Obligations” means (i) all principal of all Loans and LC Disbursements outstanding
from time to time under the Credit Agreement, all interest (including Post-Petition Interest) on
such Loans and LC Disbursements and all other amounts now or hereafter payable by the Borrower
pursuant to the Loan Documents and (ii) all Bank Product Obligations.

     “Secured Parties” means the holders from time to time of the Secured Obligations, including
the Administrative Agent and the Collateral Agent.

     “Secured Swap Agreement” means any Swap Agreement (i) existing on the Funding Date and entered
into by any Loan Party with a counterparty that is a Lender or an Affiliate thereof on the Funding
Date and (ii) entered into by any Loan Party after the Funding Date with a counterparty that is a
Lender or an Affiliate thereof at the time of entry into such agreement

F-9

 

     “Security Agreement” is defined in the Recitals.

     “Transfer” means, when used as a noun, any sale, conveyance, assignment, lease, sublease of
all or any substantial portion of the Property, or other transfer and, when used as a verb, to
sell, convey, assign, lease, so sublease, or otherwise transfer, in each case (i) whether voluntary
or involuntary, (ii) whether direct or indirect and (iii) including any agreement providing for a
Transfer or granting any right or option providing for a Transfer.

     “Trust Property” is defined in the Granting Clauses.

     “Trustee” is defined in the Preamble.

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of [
]; provided that, if perfection or the effect of perfection or non-perfection or the priority of
any Transaction Lien on any Trust Property is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than [ ], “UCC” means the Uniform Commercial Code as in effect from
time to time in such other jurisdiction for purposes of the provisions hereof relating to such
perfection, effect of perfection or non-perfection or priority.

     (c) In this Deed of Trust, unless otherwise specified, references to this Deed of Trust or to
Leases, the Credit Agreement, Notes, Swingline Note, Letters of Credit, the Security Agreement,
Secured Agreements and Security Documents include all amendments, supplements, consolidations,
replacements, restatements, extensions, renewals and other modifications and any refinancings and
refundings thereof, in whole or in part.

     Section 1.02. Interpretation. In this Deed of Trust, unless otherwise specified, (i)
singular words include the plural and plural words include the singular; (ii) words which include a
number of constituent parts, things or elements, including the terms Leases, Improvements, Land,
Secured Obligations, Property and Trust Property, shall be construed as referring separately to
each constituent part, thing or element thereof, as well as to all of such constituent parts,
things or elements as a whole; (iii) words importing any gender include the other gender; (iv)
references to any Person include such Person’s successors and assigns and in the case of an
individual, the word “successors” includes such Person’s heirs, devisees, legatees, executors,
administrators and personal representatives; (v) references to any statute or other law include all
applicable rules, regulations and orders adopted or made thereunder and all statutes or other laws
amending, consolidating or replacing the statute or law referred to; (vi) the words “consent”,
“approve”, “agree” and “request”, and derivations thereof or words of similar import, mean the
prior written consent, approval, agreement or request of the Person in question; (vii) the words
“include” and “including”, and words of similar import, shall be deemed to be followed by the words
“without limitation”; (viii) the words “hereto”, “herein”, “hereof” and “hereunder”, and words of
similar import, refer to this Deed of Trust in its entirety; (ix) references to Articles, Sections,
Schedules, Exhibits, subsections, paragraphs and clauses are

F-10

 

to the Articles, Sections, Schedules, Exhibits, subsections, paragraphs and clauses of this
Deed of Trust; (x) the Schedules and Exhibits to this Deed of Trust are incorporated herein by
reference; (xi) the titles and headings of Articles, Sections, Schedules, Exhibits, subsections,
paragraphs and clauses are inserted as a matter of convenience and shall not affect the
construction of this Deed of Trust; (xii) all obligations of the Grantor hereunder shall be
satisfied by the Grantor at the Grantor’s sole cost and expense; and (xiii) all rights and powers
granted to the Trustee and/or the Beneficiary hereunder shall be deemed to be coupled with an
interest and be irrevocable.

ARTICLE 2

Certain Warranties And Covenants Of The Grantor

     Section 2.01. Title; Further Assurances; Existence and Authority. (a) The Grantor warrants
that, as of the date hereof, (i) (x) the Grantor has good title to the Land and the Improvements
thereon, free and clear of all Liens other than the Permitted Liens, (y) the Grantor is the owner
of, or has a valid leasehold interest in, the Equipment and all other items constituting the Trust
Property, except where the failure to have such ownership rights would not reasonably be expected
to have, individually or in the aggregate, a material adverse effect on the use or value of the
Property or the Lien of this Deed of Trust, and (z) this Deed of Trust constitutes a valid, binding
and enforceable agreement of Grantor.

     (b) The Grantor shall forever preserve, protect, warrant and defend (A) the estate, right,
title and interest of the Grantor in and to the Trust Property; (B) the validity, enforceability
and priority of the Lien of this Deed of Trust on the Trust Property; and (C) the right, title and
interest of the Beneficiary and any purchaser at any sale of the Trust Property hereunder or
relating hereto, in each case against all other Liens and claims whatsoever, subject only to
Permitted Liens.

     (c) Upon the recording of this Deed of Trust in the appropriate county recording offices, the
Lien of this Deed of Trust in the Trust Property constituting real property and fixtures granted
hereby shall be a perfected first Lien on such Trust Property (including fixtures) prior to all
Liens on and security interests in such Property other than the Permitted Liens.

     (d) The Grantor, at its sole cost and expense, shall (i) promptly correct any defect or error
which may be discovered in this Deed of Trust or any financing statement or other document relating
hereto; and (ii) promptly execute, acknowledge, deliver, record and re-record, register and
re-register, and file and re-file this Deed of Trust and any financing statements or other
documents which the Beneficiary may reasonably require from time to time (all in form and substance
reasonably satisfactory to the Beneficiary) in order (A) to effectuate, complete, perfect, continue
or preserve the Lien of this Deed of Trust as a first Lien on the Trust Property, whether now owned
or hereafter acquired, subject only to the Permitted Liens, or (B) to effectuate, complete,
perfect, continue or

F-11

 

preserve any right, power or privilege granted or intended to be granted to the Trustee and/or
the Beneficiary hereunder or otherwise accomplish the purposes of this Deed of Trust. To the
extent permitted by law, Grantor hereby authorizes Trustee and/or Beneficiary to file any and all
financing statements and amendments thereto in such form and in such locations as Beneficiary or
Trustee deems necessary or appropriate in connection herewith. The Grantor shall pay on demand the
costs of, or incidental to, any recording or filing of this Deed of Trust and any financing or
continuation statement, or amendment thereto, concerning the Trust Property.

     (e) Nothing herein shall be construed to subordinate the Lien of this Deed of Trust to any
Permitted Lien to which the Lien of this Deed of Trust is not otherwise subordinate.

     (e) The Grantor is duly organized, validly existing and in good standing under the laws of the
State of [   ], and is qualified to do business in and is in good standing in the State of [   ].

     (f) The execution and delivery by the Grantor of this Deed of Trust and its performance of its
obligations hereunder are within its corporate or other powers, have been duly authorized by all
necessary corporate or other action, require no action by or in respect of, or filing with, any
governmental body, agency or official (other than filings necessary to perfect the Liens created
hereby) and do not contravene, or constitute a default under, any Legal Requirements or any
provision of its organizational or constituent documents, or of any agreement or other instrument
binding upon it or result in or require the imposition of any Lien (other than the Liens created by
the Security Documents) on any of its assets.

     Section 2.02. Secured Obligations. The Grantor shall duly and punctually pay, perform and
observe the Secured Obligations.

     Section 2.03. Impositions. The Grantor shall (i) pay all Impositions as required by the
Credit Agreement; (ii) file all material returns and other material statements required to be filed
with respect to any Imposition; and (iii) not make deduction from or claim any credit on any
Secured Obligation by reason of any Imposition and, to the extent permitted under applicable law,
hereby irrevocably waives any right to do so.

     Section 2.04. Legal and Insurance Requirements. (a) The Grantor represents and warrants that
(i) as of the date hereof, the Property and the use and operation thereof comply in all material
respects with all Legal Requirements and Insurance Policies; (ii) there is no material default
under any Legal Requirement or Insurance Policy; and (iii) the execution, delivery and performance
of this Deed of Trust will not contravene in any material respect any provision of or constitute a
default under any Legal Requirement or Insurance Policy.

F-12

 

     (b) The Grantor shall (i) duly and punctually comply in all material respects with all Legal
Requirements and Insurance Policies other than any Legal Requirement or Insurance Policy that is
the subject of a Permitted Contest and except where the failure to so comply would not reasonably
be expected to have, individually or in the aggregate, a material adverse effect on the use or
value of the Property or the Lien of this Deed of Trust; and (ii) upon written request, promptly
furnish to the Beneficiary a copy of any Permit obtained by the Grantor with respect to the
Property after the date hereof.

     Section 2.05. Status and Care of the Property. (a) The Grantor represents and warrants that
(i) the Property is served by all necessary water, sanitary and storm sewer, drainage, electric,
steam, gas, telephone and other utility facilities to serve the current use and operation of the
Property; and (ii) the Property has legal access to all streets or roads necessary to serve the
current use and operation of the Property.

     (b) Except in connection with any Permitted Disposition, the Grantor (i) shall not, without
the consent of the Beneficiary, which consent shall not be unreasonably withheld or conditioned,
(A) initiate, consent to or affirmatively support any change in the applicable zoning, (B) seek any
variance (or any change in any variance) under the zoning, or (C) execute or file any subdivision
or other plat or map, in each case which would reasonably be expected to have a material adverse
effect on the value, use or operation of the Property or the lien of this Deed of Trust; and (ii)
shall, promptly after receiving notice or obtaining knowledge of any proposed change in the zoning
materially and adversely affecting the value of the Lien created by this Deed of Trust or which
would result in the current use of the Property being a non-conforming use for which a variance has
not been obtained, notify the Beneficiary thereof and diligently contest the same by any action or
proceeding deemed appropriate by the Grantor in its reasonable judgment or reasonably requested by
the Beneficiary provided, however, that the Grantor shall not hereby be obligated to commence or
prosecute any legal action.

     Section 2.06. Permitted Contests. The Grantor may contest, by appropriate proceedings
conducted in good faith, any Legal Requirement, any insurance requirement, any Imposition, Permit
or Lien on or with respect to the Trust Property or any interest therein, provided that the
Beneficiary shall determine that as a result of such contest or proceeding (a) no Trust Property or
interest therein is in danger of being sold, forfeited or lost, or the priority of the Lien of the
Beneficiary is not at risk; (b) in the case of any Legal Requirement or Permit, the Beneficiary and
the other Secured Parties are not in danger of any criminal or material civil penalty or any other
liability for failure to comply therewith; (c) in the case of any Insurance Policy, no Insurance
Policy or coverage is in danger of being invalidated, forfeited or lost for failure to comply
therewith; and (d) in the case of (i) any Lien of a laborer, mechanic, materialman, supplier or
vendor, (ii) any Imposition or Lien therefore or (iii) any other Lien, the Grantor establishes any
reserve or other appropriate provision required with respect to such contest pursuant to the Credit
Agreement. It is agreed that the failure to

F-13

 

comply with any such Legal Requirement, Insurance Policy or Permit, to pay any such Imposition
or to discharge any such Lien being contested pursuant to this Section during such contest shall
not constitute an Event of Default, provided that the Grantor is in compliance with this Section.

     Section 2.07. Liens. The Grantor shall not create or permit to be created or to remain, and
shall immediately discharge or cause to be discharged, any Lien on the Trust Property or any
interest therein, in each case (i) whether voluntarily or involuntarily created, (ii) whether
directly or indirectly a Lien thereon and (iii) whether subordinated hereto, except Permitted
Liens. The provisions of this Section shall apply to each and every Lien (other than Permitted
Liens) on the Trust Property or any interest therein, regardless of whether a consent to, or waiver
of a right to consent to, any other Lien thereon has been previously obtained in accordance with
the terms of the Secured Agreements.

     Section 2.08. Transfer. The Grantor shall not Transfer, or suffer any Transfer of, the Trust
Property or any part thereof or interest therein, except, in connection with Permitted
Dispositions, provided any proceeds resulting from such Transfer are applied as required or
permitted by the Credit Agreement or any other Secured Agreement (as applicable).

ARTICLE 3

Insurance, Casualty and Condemnation

     Section 3.01. Insurance. (a) The Grantor shall maintain in full force and effect Insurance
Policies with respect to the Property as required by, and otherwise comply with, Section 5.05 of
the Credit Agreement.

     (b) If at any time the area in which any Trust Property is located is designated a “flood
hazard area” in any Flood Insurance Rate Map published by the Federal Emergency Management Agency
(or any successor agency), the Grantor shall obtain flood insurance as required by the Flood Laws
and Section 5.05(d) of the Credit Agreement.

     (c) If the Grantor fails to maintain the Insurance Policies or, upon written request, fails to
promptly deliver evidence thereof to the Beneficiary, the Beneficiary shall have the right, but not
the obligation, to obtain such insurance policies and pay the premiums therefore. If the
Beneficiary obtains such insurance policies or pays the premiums therefore, upon demand, the
Grantor shall reimburse the Beneficiary for its expenses in connection therewith, together with
interest thereon, pursuant to Section 5.10.

     Section 3.02. Casualty and Condemnation. (a) The Grantor represents and warrants that, as of
the date hereof, there is no Casualty Event or Condemnation Event affecting the Property, the
proceeds of which are expected to exceed $1,000,000.

F-14

 

     (b) If any Casualty Event or Condemnation Event occurs and such event is likely to result in
Restoration costs or proceeds in excess of $[5,000,000], the Grantor shall provide notice of such
event to the Beneficiary. If any Casualty Event or Condemnation Event occurs, the Grantor shall
Restore the Property or take such action as is required or permitted by the Credit Agreement (such
as reinvestment of proceeds or prepayment of obligations) and the other Secured Agreements and
cause any insurance proceeds, condemnation awards or other similar payments to which the Grantor
may be or become entitled to be held, applied and/or disbursed as required by the Credit Agreement
or any other Secured Agreement (as applicable).

ARTICLE 4

Certain Secured Obligations

     Section 4.01. Revolving Loans; Future Advances. The Secured Obligations secured by this
Deed of Trust include (x) obligations of Secured Parties to make future advances and (y) Revolving
Loans made, and reimbursement obligations relating to Letters of Credit issued, under the Credit
Agreement [in the maximum principal or face amount of $________] which are advanced, paid and
readvanced from time to time. Notwithstanding the amount outstanding at any particular time, this
Deed of Trust secures the total amount of Secured Obligations [VA: up to the Secured Loan Amount].
The unpaid balance of the Revolving Loans and the unpaid balance of the reimbursement obligations
may at certain times be, or be reduced to, zero. A zero balance, by itself, does not affect any
Issuing Bank’s obligations to issue Letters of Credit or any Lender’s obligation to advance
Revolving Loans, or to make payments upon draws under Letters of Credit, all of which are
obligatory subject to the conditions stated in the Credit Agreement. Each of the interest of the
Beneficiary hereunder and the priority of the Lien of this Deed of Trust will remain in full force
and effect with respect to all of the Secured Obligations notwithstanding such a zero balance of
the LC Reimbursement Obligations or the reimbursement obligations, and the Lien of this Deed of
Trust will not be extinguished until this Deed of Trust has been terminated pursuant to Section
7.01.

     Section 4.02. Interest After Default. If, pursuant to the terms of this Deed of Trust, the
Beneficiary shall make any payment on behalf of the Grantor, or shall incur hereunder any expense
for which the Beneficiary is entitled to reimbursement pursuant to the terms of the Secured
Agreements, such Secured Obligation shall be payable on demand and any amounts not paid on demand
shall bear interest from the date incurred at the Post-Default Rate. Such interest, and any other
interest on the Secured Obligations payable at the Post-Default Rate pursuant to the terms of the
Secured Agreements, shall accrue through the date paid notwithstanding any intervening judgment of
foreclosure or sale. All such interest shall be part of the Secured Obligations and shall be
secured by this Deed of Trust.

F-15

 

     Section 4.03. Changes in the Laws Regarding Taxation. If, after the date hereof, there shall
be enacted any applicable law changing in any way the taxation of mortgages, deeds of trust or
other Liens or obligations secured thereby, or the manner of collection of such taxes, so as to
adversely affect this Deed of Trust, the Secured Obligations, the Beneficiary or any Secured Party,
promptly after demand by the Beneficiary or any affected Secured Party, the Grantor shall pay all
taxes, assessments or other charges resulting therefrom or shall reimburse such affected Person for
all such taxes, assessments or other charges which such Person is obligated to pay as a result
thereof.

     Section 4.04. Indemnification. The Grantor shall protect, indemnify and defend each of the
Trustee, the Beneficiary and each other Secured Party, their respective affiliates and the
respective directors, officers, agents and employees of the foregoing (each an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all liabilities, losses, damages, costs
and expenses of any kind (including reasonable fees and disbursements of counsel) arising out of,
or in connection with (a) this Deed of Trust; (b) the Beneficiary’s exercise of any of its rights
and remedies hereunder; (c) any accident, injury to or death of persons or loss of or damage to
property occurring in, on or about the Property or any part thereof or on the adjoining sidewalks,
curbs, adjacent property or adjacent parking areas, street or ways; (d) the performance of any
labor or services or the furnishing of any materials or other property in respect of the Trust
Property or any part thereof; and (e) any Environmental Liability related in any way to the Grantor
or the Property; provided, that such indemnity shall not be available to any Indemnitee to the
extent that such losses, claims, damages, liabilities or related expense resulted from such
Indemnitee’s gross negligence or willful misconduct. Any amount payable under this Section will be
deemed a demand obligation and will bear interest pursuant to Section 4.02. The obligations of the
Grantor under this Section shall survive the termination of this Deed of Trust. Consistent with
Section 9.03(d) of the Credit Agreement, to the extent permitted by applicable law, neither the
Grantor nor any Indemnitee shall have liability for any 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 Deed of Trust or any agreement or instrument contemplated hereby (other than in
respect of such damages incurred or paid by an Indemnitee to a third party).

     Section 4.05. Expenses. The Grantor agrees that it will forthwith on demand pay to the
Beneficiary (i) the amount of any taxes which the Beneficiary may have been required to pay in
order to free any of the Trust Property from any Lien thereon (other than Permitted Liens), and
(ii) the amount of any and all out-of-pocket expenses, including the fees and disbursements of
counsel and of any other experts (to the extent supported by back-up invoices and documentation),
which the Beneficiary may reasonably incur in connection with its exercise of any rights or powers
under this Deed of Trust or the collection, sale or other disposition of any of the Trust Property.

F-16

 

ARTICLE 5

Defaults, Remedies and Rights

     Section 5.01. Events of Default. Any Event of Default (as defined in the Credit Agreement)
under the Credit Agreement shall constitute an Event of Default hereunder.

     Section 5.02. Remedies. (a) When an Event of Default has occurred and is continuing, each of
the Trustee and the Beneficiary shall have the right and power, [(x)] subject to the terms of
Article 7 of the Credit Agreement, to accelerate the Secured Obligations and [(y) subject to and in
compliance with applicable U.S. Government regulations and any Legal Requirements in effect at the
time in the nature of security regulations pertaining to the Grantor’s secure or classified
activities at the Property,]6 shall have the right and power to exercise any of the
following remedies and rights, subject to mandatory provisions of applicable law, to wit:

     (i) to institute a proceeding or proceedings, by advertisement, judicial process or
otherwise as provided under applicable law, for the complete or partial foreclosure of
this Deed of Trust or the complete and partial sale of the Trust Property under the power
of sale hereunder or under any applicable provision of law; or

     (ii) to sell the Trust Property, and all estate, right, title, interest, claim and
demand of the Grantor therein and thereto, and all rights of redemption thereof, at one or
more sales, as an entirety or in parcels, with such elements of real or personal property,
at such time and place and upon such terms as the Beneficiary may deem expedient or as may
be required under applicable law, and in the event of a sale hereunder or under any
applicable provision of law of less than all of the Trust Property, this Deed of Trust
shall continue as a Lien on the remaining Trust Property; or

     (iii) to institute a suit, action or proceeding for the specific performance of any
of the provisions of this Deed of Trust; or

     (iv) to be entitled to the appointment of a receiver, supervisor, trustee,
liquidator, conservator or other custodian (a “Receiver”) of the Trust Property, without
notice to the Grantor, to the fullest extent permitted by law, as a matter of right and
without regard to, or the necessity to disprove, the adequacy of the security for the
Secured Obligations or the solvency of the Grantor or any other obligor, and the Grantor
hereby, to the fullest extent permitted by applicable law, irrevocably waives such
necessity and consents to such appointment, without notice, said appointee to be vested
with the fullest powers

 

			
	6	 	Insert bracketed language for Newport News
Deed of Trust.

F-17

 

permitted under applicable law, including to the extent permitted under applicable
law those under Section 5.02; or

     (v) to the fullest extent permitted by applicable law : to enter upon the Property,
by the Beneficiary (or its agent), Trustee or a Receiver (whichever is the Person
exercising the rights under this clause), and, exclude the Grantor and its managers,
employees, contractors, agents and other representatives therefrom in accordance with
applicable law, without liability for trespass, damages or otherwise, and take possession
of all other Trust Property and all books, records and accounts relating thereto, and upon
demand the Grantor shall surrender possession of the Property, the other Trust Property
and such books, records and accounts to the Person exercising the rights under this
clause; and having and holding the same, the Person exercising the rights under this
clause may use, operate, manage, preserve, control and otherwise deal therewith and
conduct the business thereof, either personally or by its managers, employees,
contractors, agents or other representatives, without interference from the Grantor or its
managers, employees, contractors, agents and other representatives; and, upon each such
entry and from time to time thereafter, at the expense of the Grantor and the Trust
Property, without interference by the Grantor or its managers, employees, contractors,
agents and other representatives, the Person exercising the rights under this clause may,
as such Person deems expedient, (A) insure or reinsure the Property, (B) make all
necessary or proper repairs, renewals, replacements, alterations, additions, Restorations,
betterments and improvements to the Property and (C) in such Person’s own name or, at the
option of such Person, in the Grantor’s name, exercise all rights, powers and privileges
of the Grantor with respect to the Trust Property, including the right to enter into
Leases with respect to the Property, including Leases extending beyond the time of
possession by the Person exercising the rights under this clause; and the Person
exercising the rights under this clause shall not be liable to account for any action
taken hereunder, other than for Rents actually received by such Person, and shall not be
liable for any loss sustained by the Grantor resulting from any failure to let the
Property or from any other act or omission of such Person, except to the extent such loss
is caused by such Person’s own willful misconduct or gross negligence; or

     (vi) with or, to the fullest extent permitted by applicable law, without entry upon
the Property, in the name of the Beneficiary, Trustee or a Receiver as required by law
(whichever is the Person exercising the rights under this clause) or, at such Person’s
option, in the name of the Grantor, to collect, receive, sue for and recover all Rents and
proceeds of or derived from the Trust Property, and after deducting therefrom all costs,
expenses and liabilities of every character incurred by the Person exercising the rights
under this clause in collecting the same and in using, operating, managing, preserving and
controlling the Trust Property and otherwise in exercising the rights under Section 5.02
or any other rights

F-18

 

hereunder, including all amounts necessary to pay Impositions, Rents, Insurance
Premiums and other costs, expenses and liabilities relating to the Property, as well as
reasonable compensation for the services of such Person and its managers, employees,
contractors, agents or other representatives, to apply the remainder as provided in
Section 5.06; or

     (vii) to take any action with respect to any Trust Property permitted under the UCC;
or

     (viii) to take any other action, or pursue any other remedy or right, as the
Beneficiary or the Trustee may have under applicable law, including the right to
foreclosure through court action, and the Grantor does hereby grant the same to the
Beneficiary or the Trustee (as the case may be).

     (b) To the fullest extent permitted by applicable law,

     (i) each remedy or right hereunder shall be in addition to, and not exclusive or in
limitation of, any other remedy or right hereunder, under any other Loan Document or under
applicable law;

     (ii) every remedy or right hereunder, under any other Loan Document or under
applicable law may be exercised concurrently or independently and whenever and as often as
deemed appropriate by the Beneficiary;

     (iii) no failure to exercise or delay in exercising any remedy or right hereunder,
under any other Loan Document or under applicable law shall be construed as a waiver of
any Default, Event of Default or other occurrence hereunder or under any other Loan
Document;

     (iv) no waiver of, failure to exercise or delay in exercising any remedy or right
hereunder, under any other Loan Document or under applicable law upon any Default, Event
of Default or other occurrence hereunder or under any other Loan Document shall be
construed as a waiver of, or otherwise limit the exercise of, such remedy or right upon
any other or subsequent Default, Event of Default or other or subsequent occurrence
hereunder or under any other Loan Document;

     (v) no single or partial exercise of any remedy or right hereunder, under any other
Loan Document or under applicable law upon any Default, Event of Default or other
occurrence hereunder or under any other Loan Document shall preclude or otherwise limit
the exercise of any other remedy or right hereunder, under any other Loan Document or
under applicable law upon such Default, Event of Default or occurrence or upon any other
or subsequent Default, Event of Default or other or subsequent occurrence hereunder or
under any other Loan Document;

F-19

 

     (vi) the acceptance by the Beneficiary, any other agent or any Secured Party of any
payment less than the amount of the Secured Obligation in question shall be deemed to be
an acceptance on account only and shall not be construed as a waiver of any Default or
Event of Default hereunder or under any other Loan Document with respect thereto; and

     (vii) the acceptance by the Beneficiary, any other agent or any Secured Party of any
payment of, or on account of, any Secured Obligation shall not be deemed to be a waiver of
any Default or Event of Default or other occurrence hereunder or under any other Loan
Document with respect to any other Secured Obligation.

     (c) If the Beneficiary or the Trustee has proceeded to enforce any remedy or right hereunder
or with respect hereto by foreclosure, sale, entry or otherwise, it may compromise, discontinue or
abandon such proceeding for any reason without notice to the Grantor or any other Person (other
than to any Secured Party to the extent required by the other Secured Agreements); and, if any such
proceeding shall be discontinued, abandoned or determined adversely for any reason, the Grantor,
the Trustee and the Beneficiary shall retain and be restored to their former positions and rights
hereunder with respect to the Trust Property, subject to the Lien hereof except to the extent any
such adverse determination specifically provides to the contrary.

     (d) For the purpose of carrying out any provisions of Section 5.02(a)(v), 5.02(a)(iv), 5.05,
5.07, 5.10 or 6.01 or any other provision hereunder authorizing the Beneficiary or any other Person
to perform any action on behalf of the Grantor, the Grantor hereby irrevocably appoints the
Beneficiary, the Trustee or a Receiver appointed pursuant to Section 5.02(a)(iv) to act in the name
of the Grantor or, at the option of the Person appointed to act under this subsection, in such
Person’s own name, to take the action authorized under Section 5.02(a)(v), 5.02(a)(iv), 5.05, 5.07,
5.10 or 6.01 or such other provision, and to execute, acknowledge and deliver any document in
connection therewith or to take any other action incidental thereto as the Person appointed to act
under this subsection shall deem appropriate in its discretion; and the Grantor hereby irrevocably
authorizes and directs any other Person to rely and act on behalf of the foregoing appointment and
a certificate of the Person appointed to act under this subsection that such Person is authorized
to act under this subsection.

     Section 5.03. Waivers by the Grantor. To the fullest extent permitted under applicable law,
the Grantor shall not assert, and hereby irrevocably waives, any right or defense the Grantor may
have under any statute or rule of law or equity now or hereafter in effect relating to (a)
appraisement, valuation, homestead exemption, extension, moratorium, stay, statute of limitations,
redemption, marshaling of the Trust Property or the other assets of the Grantor, sale of the Trust
Property in any order or notice of deficiency or intention to accelerate any Secured Obligation;
(b) impairment of any right of subrogation or reimbursement; (c) any requirement that at any time
any action must be taken

F-20

 

against any other Person, any portion of the Trust Property or any other asset of the Grantor
or any other Person; (d) any provision barring or limiting the right of the Beneficiary or the
Trustee to sell any Trust Property after any other sale of any other Trust Property or any other
action against the Grantor or any other Person; (e) any provision barring or limiting the recovery
by the Beneficiary of a deficiency after any sale of the Trust Property; (f) any other provision of
applicable law which shall defeat, limit or adversely affect any right or remedy of the
Beneficiary, the Trustee or any Secured Party under or with respect to this Deed of Trust or any
other Security Document as it relates to any Trust Property; or (g) the right of the Beneficiary or
the Trustee to foreclose this Deed of Trust in its own name on behalf of all of the Secured Parties
by judicial action as the real party in interest without the necessity of joining any Secured
Party.

     Section 5.04. Jurisdiction and Process. (a) To the extent permitted under applicable law, in
any suit, action or proceeding arising out of or relating to this Deed of Trust or any other
Security Document as it relates to any Trust Property, the Grantor (i) irrevocably consents to the
non-exclusive jurisdiction of any state or federal court sitting in the State in which the Property
is located and irrevocably waives any defense or objection which it may now or hereafter have to
the jurisdiction of such court or the venue of such court or the convenience of such court as the
forum for any such suit, action or proceeding; and (ii) irrevocably consents to the service of (A)
any process in accordance with applicable law in any such suit, action or proceeding, or (B) any
notice relating to any sale, or the exercise of any other remedy by the Beneficiary or the Trustee
hereunder by delivering a copy of such process or notice by overnight courier or United States
registered or certified mail, postage prepaid, return receipt requested to the Grantor at its
address specified in or pursuant to Section 7.02, such service to be effective in accordance with
applicable law.

     (b) Nothing in this Section shall affect the right of the Beneficiary or the Trustee to bring
any suit, action or proceeding arising out of or relating to this Deed of Trust or any other
Security Document in any court having jurisdiction under the provisions of any other Security
Document or applicable law or to serve any process, notice of sale or other notice in any manner
permitted by any other Security Document or applicable law.

     Section 5.05. Sales. Except as otherwise provided herein, to the fullest extent permitted
under applicable law, at the election of the Trustee or the Beneficiary, the following provisions
shall apply to any sale of the Trust Property hereunder, whether made pursuant to the power of sale
under Section 5.02 or under any applicable provision of law, any judicial proceeding or any
judgment or decree of foreclosure or sale or otherwise:

     (a) The Beneficiary, the Trustee or the court officer (whichever is the Person conducting any
sale) may conduct any number of sales from time to time. The power of sale hereunder shall not be
exhausted by any sale as to any part or parcel of the Trust Property which is not sold, unless and
until the Secured Obligations shall have been paid in full, and shall not be exhausted or impaired
by

F-21

 

any sale which is not completed or is defective. Any sale may be as a whole or in part or
parcels and, as provided in Section 5.03, the Grantor has waived its right to direct the order in
which the Trust Property or any part or parcel thereof is sold.

     (b) Any sale may be postponed or adjourned by public announcement at the time and place
appointed for such sale or for such postponed or adjourned sale without further notice.

     (c) After each sale, the Person conducting such sale shall execute and deliver to the
purchaser or purchasers at such sale a good and sufficient instrument or instruments granting,
conveying, assigning, transferring and delivering all right, title and interest of the Grantor in
and to the Trust Property sold and shall receive the proceeds of such sale [VA: up to the Secured
Loan Amount] and apply the same as provided in Section 5.06. The Grantor hereby irrevocably
appoints the Person conducting such sale as the attorney-in-fact of the Grantor (with full power to
substitute any other Person in its place as such attorney-in-fact) to act in the name of the
Grantor or, at the option of the Person conducting such sale, in such Person’s own name, to make
without warranty by such Person any conveyance, assignment, transfer or delivery of the Trust
Property sold, and to execute, acknowledge and deliver any instrument of conveyance, assignment,
transfer or delivery or other document in connection therewith or to take any other action
incidental thereto, as the Person conducting such sale shall deem appropriate in its discretion;
and the Grantor hereby irrevocably authorizes and directs any other Person to rely and act upon the
foregoing appointment and a certificate of the Person conducting such sale that such Person is
authorized to act hereunder. Nevertheless, upon the request of such attorney-in-fact the Grantor
shall promptly execute, acknowledge and deliver any documentation which such attorney-in-fact may
require for the purpose of ratifying, confirming or effectuating the powers granted hereby or any
such conveyance, assignment, transfer or delivery by such attorney-in-fact.

     (d) Any statement of fact or other recital made in any instrument referred to in Section
5.05(c) given by the Person conducting any sale as to the nonpayment of any Secured Obligation, the
occurrence of any Event of Default, the amount of the Secured Obligations due and payable, the
request to the Beneficiary or the Trustee to sell, the notice of the time, place and terms of sale
and of the Trust Property to be sold having been duly given, the refusal, failure or inability of
the Beneficiary or the Trustee to act, the appointment of any substitute or successor agent, any
other act or thing having been duly done by the Grantor, the Beneficiary, the Trustee or any other
such Person, shall be taken as conclusive and binding against all other Persons as evidence of the
truth of the facts so stated or recited. The Trustee or the substitute trustee conducting any sale
may appoint or delegate any other Person as agent to perform any act necessary or incident to such
sale, including the posting of notices and the conduct of such sale, but in the name and on behalf
of the Person conducting such sale.

     (e) The receipt by the Person conducting any sale of the purchase money paid at such sale
shall be sufficient discharge therefor to any purchaser of

F-22

 

any Trust Property sold, and no such purchaser, or its representatives, grantees or assigns,
after paying such purchase price and receiving such receipt, shall be bound to see to the
application of such purchase price or any part thereof upon or for any trust or purpose of this
Deed of Trust or any Secured Agreement, or, in any manner whatsoever, be answerable for any loss,
misapplication or nonapplication of any such purchase money or be bound to inquire as to the
authorization, necessity, expediency or regularity of such sale.

     (f) Subject to mandatory provisions of applicable law, any sale shall operate to divest all of
the estate, right, title, interest, claim and demand whatsoever, whether at law or in equity, of
the Grantor in and to the Trust Property sold, and shall be a perpetual bar both at law and in
equity against the Grantor and any and all Persons claiming such Trust Property or any interest
therein by, through or under the Grantor.

     (g) At any sale, the Beneficiary may bid for and acquire the Trust Property sold and, in lieu
of paying cash therefor, may make settlement for the purchase price by crediting or causing the
Secured Parties to credit against the Secured Obligations, including the expenses of the sale and
the cost of any enforcement proceeding hereunder, the amount of the bid made therefor to the extent
necessary to satisfy such bid.

     (h) If the Grantor or any Person claiming by, through or under the Grantor shall transfer or
fail to surrender possession of the Trust Property, after the exercise by the Beneficiary or the
Trustee of the remedies under Section 5.02(a)(v) or after any sale of the Trust Property pursuant
hereto, then the Grantor or such Person shall be deemed a tenant at sufferance of the purchaser at
such sale, subject to eviction by means of summary process for possession of land, or subject to
any other right or remedy available hereunder or under applicable law.

     (i) Upon any sale, it shall not be necessary for the Person conducting such sale to have any
Trust Property being sold present or constructively in its possession.

     (j) If a sale hereunder shall be commenced by the Beneficiary or the Trustee, the Beneficiary
or the Trustee may at any time before the sale abandon the sale, and may institute suit for the
collection of the Secured Obligations or for the foreclosure of this Deed of Trust; or if the
Beneficiary or the Trustee shall institute a suit for collection of the Secured Obligations or the
foreclosure of this Deed of Trust, the Beneficiary or the Trustee may at any time before the entry
of final judgment in said suit dismiss the same and sell the Trust Property in accordance with the
provisions of this Deed of Trust.

     Section 5.06. Proceeds.

     (a) Subject to the mandatory provisions of applicable law, the Beneficiary shall apply the
proceeds of any sale of, or other disposition of, all or any part of the Trust Property [VA: up to
the Secured Loan Amount] whether

F-23

 

made pursuant to the power of sale hereunder or under any applicable provision of law, any
judicial proceeding or any judgment or decree of foreclosure or sale or otherwise, in the order of
priorities provided in Section 15 of the Security Agreement.

     (b) If at any time any portion of any monies collected or received by the Beneficiary would,
but for the provisions of this Section 5.06(b), be payable pursuant to Section 5.06(a) in respect
of a Contingent Secured Obligation, the Beneficiary shall not apply any monies to pay such
Contingent Secured Obligation but instead shall request the holder thereof, at least 10 days before
each proposed distribution hereunder, to notify the Beneficiary as to the maximum amount of such
Contingent Secured Obligation if then ascertainable (e.g., in the case of a letter of credit, the
maximum amount available for subsequent drawings thereunder). If the holder of such Contingent
Secured Obligation does not notify the Beneficiary of the maximum ascertainable amount thereof at
least two Business Days before such distribution, such holder will not be entitled to share in such
distribution. If such holder does so notify the Beneficiary as to the maximum ascertainable amount
thereof, the Beneficiary will allocate to such holder a portion of the monies to be distributed in
such distribution, calculated as if such Contingent Secured Obligation were outstanding in such
maximum ascertainable amount. However, the Beneficiary shall not apply such portion of such monies
to pay such Contingent Secured Obligation, but instead will hold such monies or invest such monies
in Liquid Investments (as defined in the Security Agreement). All such monies and Liquid
Investments and all proceeds thereof will constitute Trust Property hereunder, but will be subject
to distribution in accordance with this Section 5.06(b) rather than Section 5.06(a). The
Beneficiary will hold all such monies and Liquid Investments and the net proceeds thereof in trust
until all or part of such Contingent Secured Obligation becomes a Non-Contingent Secured
Obligation, whereupon the Beneficiary at the request of the relevant Secured Party will apply the
amount so held in trust to pay such Non-Contingent Secured Obligation; provided that, if the other
Secured Obligations theretofore paid pursuant to the same clause of Section 5.06(a) (i.e., clause
second or fourth) were not paid in full, the Beneficiary will apply the amount so held in trust to
pay the same percentage of such Non-Contingent Secured Obligation as the percentage of such other
Secured Obligations theretofore paid pursuant to the same clause of Section 5.06(a). If (i) the
holder of such Contingent Secured Obligation shall advise the Beneficiary that no portion thereof
remains in the category of a Contingent Secured Obligation and (ii) the Beneficiary still holds any
amount held in trust pursuant to this Section 5.06(b) in respect of such Contingent Secured
Obligation (after paying all amounts payable pursuant to the preceding sentence with respect to any
portions thereof that became Non-Contingent Secured Obligations), such remaining amount will be
applied by the Beneficiary in the order of priorities set forth in Section 5.06(a).

     (c) In making the payments and allocations required by this Section, the Beneficiary may rely
upon information supplied to it pursuant to Section 20 of the Security Agreement. All
distributions made by the Beneficiary pursuant to this

F-24

 

Section shall be final (except in the event of manifest error) and the Beneficiary shall have
no duty to inquire as to the application by any Secured Party of any amount distributed to it.

     Section 5.07. Assignment of Leases.

     (a) Subject to paragraph (d) below, the assignment of the Leases and the Rents pursuant to
Granting Clauses V and VI are and shall be present, absolute and irrevocable assignments by the
Grantor to the Beneficiary and, subject to the license to the Grantor under Section 5.07(b), the
Beneficiary or a Receiver appointed pursuant to Section 5.02(a)(iv) (whichever is the Person
exercising the rights under this Section) shall have the absolute, immediate and continuing right
to collect and receive all such Rents now or hereafter, including during any period of redemption,
accruing with respect to the Property. At the request of the Beneficiary or such Receiver, the
Grantor shall promptly execute, acknowledge, deliver, record, register and file any additional
general assignment of the Leases or specific assignment of any Lease which the Beneficiary or such
Receiver may require from time to time (all in form and substance satisfactory to the Beneficiary
or such Receiver) to effectuate, complete, perfect, continue or preserve the assignments of the
Leases and the Rents thereunder pursuant to Granting Clauses V and VI. Neither the acceptance
hereof nor the exercise of the rights and remedies hereunder nor any other action on the part of
the Beneficiary or any Person exercising the rights of the Beneficiary hereunder shall be construed
to obligate the Beneficiary or any such Person to take any action under or with respect to the
Leases or with respect to the Property, to incur any expense or perform or discharge any duty or
obligation under or with respect to the Leases or with respect to the Property, to appear in or
defend any action or proceeding relating to the Leases or the Property, to constitute the
Beneficiary as a Beneficiary in possession (unless the assignee hereunder actually enters and takes
possession of the Property), or to be liable in any way for any injury or damage to person or
property sustained by any Person in or about the Property other than to the extent caused by the
willful misconduct or gross negligence of the Beneficiary or any Person exercising the rights of
the Beneficiary hereunder.

     (b) The Grantor shall have a license granted hereby to collect and receive all Rents under the
Leases and apply the same subject to the provisions of the Secured Agreements, such license to be
terminable by the Beneficiary as provided in Section 5.07(c).

     (c) When an Event of Default has occurred and is continuing, the Beneficiary or a Receiver
appointed pursuant to Section 5.02(a)(iv) (whichever is the Person exercising the rights under this
Section) shall have the right to terminate the license granted under Section 5.07(b) by notice to
the Grantor and to exercise the rights and remedies provided under Section 5.07(a), under Section
5.02(a)(v) and (vi) or under applicable law. Upon demand by the Person exercising the rights under
this Section, the Grantor shall promptly pay to such Person all security deposits under the Leases
and all Rents thereunder allocable to any period after such demand. Subject to Section 5.02(a)(v)
and (vi) and any

F-25

 

applicable requirement of law, any Rents received hereunder by such Person shall be promptly
paid to the Beneficiary, and any Rents received hereunder by the Beneficiary shall be deposited in
the Collateral Proceeds Account, to be held, applied and disbursed as provided in the Security
Agreement, provided that, subject to Section 5.02(a)(v) and (vi) and any applicable requirement of
law, any security deposits actually received by such Person shall be promptly paid to the
Beneficiary, and any security deposits actually received by the Beneficiary shall be held, applied
and disbursed as provided in the applicable Leases and applicable law.

     (d) Nothing herein shall be construed to be an assumption by the Person exercising the rights
under this Section, or otherwise to make such Person liable for the performance, of any of the
obligations of the Grantor under the Leases, provided that such Person shall be accountable as
provided in Section 5.07(c) for any Rents or security deposits actually received by such Person.

     Section 5.08. Dealing with the Trust Property. The Beneficiary shall have the right, subject
to Section 7.01 and upon the delivery by the Grantor or the Borrower of an Opinion of Counsel or
officer’s certificate in form and substance reasonably satisfactory to the Beneficiary, to, in its
sole and reasonable discretion (a) release any portion of the Trust Property; (ii) consent to the
granting of any Permitted Lien affecting any portion of the Property, (iii) subordinate the Lien of
this Deed of Trust to any Permitted Lien, (iv) grant non-disturbance protection to a tenant under a
lease constituting a Permitted Lien, and (v) to otherwise deal with the Trust Property.

     Section 5.09. Sales. Right of Entry. The Beneficiary and the representatives of the
Beneficiary shall have the right[, subject to any applicable U.S. Government regulations and any
Legal Requirements in effect at the time in the nature of security regulations pertaining to the
Grantor’s secure or classified activities at the Property]7, (a) without notice, when an
Event of Default has occurred and is continuing, (b) with simultaneous notice, if any payment or
performance is necessary in the reasonable opinion of the Beneficiary to preserve the Beneficiary’s
rights under this Deed of Trust or with respect to the Trust Property, or (c) after reasonable
notice, in all other cases, to enter upon the Property at reasonable times, and with reasonable
frequency, to inspect the Trust Property or, subject to the provisions hereof, to exercise any
right, power or remedy of the Beneficiary hereunder, provided that any Person so entering the
Property shall not unreasonably interfere with the ordinary conduct of the Grantor’s business, and
provided further that no such entry on the Property, for the purpose of performing obligations
under Section 5.10 or for any other purpose, shall be construed to be (i) possession of the
Property by such Person or to constitute such Person as a beneficiary in possession, unless such
Person exercises its right to take possession of the Property under Section 5.02(a)(v), or

 

			
	7	 	Insert bracketed language for Newport News
Deed of Trust.

F-26

 

(ii) a cure of any Default or waiver of any Default or Secured Obligation. The expense of any
inspection pursuant to clause (c) above shall be borne by the Beneficiary unless an Event of
Default shall have occurred and be continuing at the time of such inspection, in which case the
Grantor shall pay, or reimburse the Beneficiary for, such expense.

     Section 5.10. Right to Perform Obligations. If the Grantor fails to pay any Imposition or
premium under and Insurance Policy or perform any obligation to remove any Lien other than
Permitted Liens, after the expiration of any applicable grace period, the Beneficiary and the
representatives of the Beneficiary shall have the right, to pay or perform such obligation,
provided that the Grantor is not contesting payment or performance in accordance with the terms
hereof and further provided that no such payment or performance shall be construed to be a cure of
any Default or waiver of any Default or Secured Obligation. The Grantor shall reimburse the
Beneficiary on demand for the reasonable costs of performing any such obligations and any amounts
not paid on demand shall bear interest, payable on demand, for each day until paid at the
Post-Default Rate for such day.

     Section 5.11. Concerning the Beneficiary.

     (a) The provisions of Section 8 of the Credit Agreement and Section 19 of the Security
Agreement shall inure to the benefit of the Beneficiary in respect of this Deed of Trust and shall
be binding upon the parties to the Credit Agreement and the other Secured Agreements in such
respect. In furtherance and not in derogation of the rights, privileges and immunities of the
Beneficiary therein set forth:

     (i) The Beneficiary is authorized to take all such action as is provided to be taken
by it as Beneficiary hereunder and all other action incidental thereto.

     (ii) The Beneficiary shall not be responsible for the existence, genuineness or value
of any of the Trust Property or for the validity, perfection, priority or enforceability
of the Lien of this Deed of Trust on any of the Trust Property, whether impaired by
operation of law or by reason of any action or omission to act on its part hereunder. The
Beneficiary shall have no duty to ascertain or inquire as to the performance or observance
of any of the terms of this Deed of Trust by the Grantor.

     (b) At any time or times, in order to comply with any Legal Requirement in any jurisdiction,
the Beneficiary may appoint another bank or trust company or one or more other Persons, either to
act as co-agent or co-agents, jointly with the Beneficiary, or to act as separate agent or agents
on behalf of the Secured Parties with such power and authority as may be necessary for the
effectual operation of the provisions hereof and may be specified in the instrument of appointment
(which may, in the discretion of the Beneficiary, include provisions for the protection of such
co-agent or separate agent similar to

F-27

 

the provisions of this Section 5.11). References to the Beneficiary in Section 5.12 shall be
deemed to include any co-agent or separate agent appointed pursuant to this Section 5.11.

ARTICLE 6

Security Agreement And Fixture Filing

     Section 6.01. Security Agreement. To the extent that the Trust Property constitutes or
includes tangible or intangible Collateral (as defined in the Security Agreement), including
”equipment” (as defined in the UCC), “goods” (as defined in the UCC) and other items of personal
property which are or are to become fixtures under applicable law (“Article 9 Collateral”), the
Grantor hereby grants to the Beneficiary a security interest therein and this Deed of Trust shall
also be construed as a pledge and a security agreement under the UCC. Following the occurrence and
during the continuance of an Event of Default, the Beneficiary shall be entitled to exercise with
respect to Article 9 Collateral all remedies available under the Security Agreement, the UCC and
all other remedies available under applicable law. Without limiting the foregoing, upon an Event
of Default, any Article 9 Collateral may, at the Beneficiary’s option and, except as otherwise
required by applicable law, without the giving of notice, (i) be sold hereunder, (ii) be sold
pursuant to the UCC or (iii) be dealt with by the Beneficiary in any other manner permitted under
applicable law. The Beneficiary may require the Grantor, after an Event of Default has occurred
and is continuing to assemble any Article 9 Collateral and make it available to the Beneficiary at
a place to be designated by the Beneficiary. Following the occurrence and during the continuance
of an Event of Default, the Beneficiary shall be the attorney-in-fact of the Grantor with respect
to any and all matters pertaining to Article 9 Collateral with full power and authority to give
instructions with respect to the collection and remittance of payments, to endorse checks, to
enforce the rights and remedies of the Grantor and to execute on behalf of the Grantor and in
Grantor’s name any instruction, agreement or other writing required therefor. The Grantor
acknowledges and agrees that a disposition of Article 9 Collateral in accordance with the
Beneficiary’s rights and remedies in respect of the Property under the Security Agreement and as
heretofore provided is a commercially reasonable disposition thereof. Notwithstanding the
foregoing, to the extent that the Trust Property includes Article 9 Collateral covered by the
Security Agreement the provisions of the Security Agreement shall govern with respect to such
Article 9 Collateral.

     Section 6.02. Fixture Filing. To the extent that the Trust Property includes equipment,
goods or other items of personal property which are or are to become Fixtures (as defined in the
UCC) under applicable law, and to the extent permitted under applicable law, the recording of this
Deed of Trust in the real estate records in the county in which the Trust Property is located shall
also operate from the time of filing as a fixture filing with respect to such Trust

F-28

 

Property pursuant to the terms of Sections 9-313 and 9-5028 of the UCC [as enacted
by Virginia Code Sections 8.9A-313 and 8.9A-502]. This filing remains in effect as a fixture
filing until this Deed of Trust is released or satisfied or its effectiveness otherwise terminates
as to the Trust Property. In that regard, the following information is applicable for the purpose
of such fixture filing, to wit:

     (a) Name and address of the debtor:

[Northrop Grumman Shipbuilding, Inc.]

c/o Huntington Ingalls Industries, Inc.

[4101 Washington Avenue

Newport News, Virginia 23607]

     (b) Name and address of the secured party:

JPMorgan Chase Bank, N.A., as Collateral Agent

1111 Fannin, 8th Floor

Houston, Texas 77002

     (c) This instrument covers goods or items of personal property which are or are to become
fixtures upon the Property.

     (d) The name of the record owner of the real estate on which such fixtures are or are to be
located is Grantor.

     (e) The organizational identification number of the Grantor is 54-0318880.

ARTICLE 7

Miscellaneous

     Section 7.01. Release of Trust Property.

     (a) This Deed of Trust shall cease, terminate and thereafter be of no further force or effect
(except as provided in Section 4.03) when any or all of the following may occur (i) when all of the
Release Conditions have been satisfied, (ii) if the Grantor’s Secured Guarantee is released
pursuant to Section 2(c) of the Security Agreement, or (iii) during a Collateral Suspension Period
pursuant to Section 9.16(a) of the Credit Agreement. Notwithstanding the foregoing, if, after the
termination of the Lien of this Deed of Trust in accordance with clause (iii), the Collateral
Reversion Date shall occur, the Grantor shall cause a Deed of Trust in the form of this Deed of
Trust to be recorded in order to reinstate the Lien.

 

			
	8	 	Local counsel to confirm

F-29

 

     (b) At any time and from time to time before the Transaction Liens granted by the Grantor
terminate, the Beneficiary shall, in connection with a Transfer or other disposition on permitted
by the Credit Agreement or any other Secured Agreement, and may, at the written request of the
Borrower, release any Collateral (subject to the Beneficiary’s receipt of any consent by the
Secured Parties).

     (c) Upon any termination of a Transaction Lien, release of Trust Property or any termination
pursuant to Section 7.01(a), the Beneficiary will, at the expense of the Grantor, execute and
deliver to the Grantor such documents as the Grantor shall reasonably request to evidence the
termination of the Transaction Lien or the release of the Trust Property, as the case may be.

     (d) Upon any termination of a Transaction Lien or release of Collateral, the Collateral Agent
will, at the expense of the relevant Grantor, execute and deliver to such Grantor such documents as
such Grantor shall reasonably request to evidence the termination of such Transaction Lien or the
release of such Collateral, as the case may be.

     Section 7.02. Notices. All notices, approvals, requests, demands and other communications
hereunder shall be given in accordance with Section 9.01 of the Credit Agreement.

     Section 7.03. Amendments In Writing. No provision of this Deed of Trust shall be modified,
waived or terminated, and no consent to any departure by the Grantor from any provision of this
Deed of Trust shall be effective, unless the same shall be by an instrument in writing, signed by
the Grantor and the Beneficiary in accordance with Section 9.02 of the Credit Agreement with any
consent of Secured Parties required under any Secured Agreement. Any such waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given.

     Section 7.04. Severability. All rights, powers and remedies provided in this Deed of Trust
may be exercised only to the extent that the exercise thereof does not violate applicable law, and
all the provisions of this Deed of Trust are intended to be subject to all mandatory provisions of
applicable law and to be limited to the extent necessary so that they will not render this Deed of
Trust illegal, invalid, unenforceable or not entitled to be recorded, registered or filed under
applicable law. If any provision of this Deed of Trust or the application thereof to any Person or
circumstance shall, to any extent, be illegal, invalid or unenforceable, or cause this Deed of
Trust not to be entitled to be recorded, registered or filed, the remaining provisions of this Deed
of Trust or the application of such provision to other Persons or circumstances shall not be
affected thereby, and each provision of this Deed of Trust shall be valid and be enforced to the
fullest extent permitted under applicable law.

     Section 7.05. Binding Effect.

F-30

 

     (a) The provisions of this Deed of Trust shall be binding upon the Grantor and its successors
and assigns and inure to the benefit of the Trustee and Beneficiary and their respective successors
and/or assigns.

     (b) To the fullest extent permitted under applicable law, the provisions of this Deed of Trust
binding upon the Grantor shall be deemed to be covenants which run with the land.

     Section 7.06. Governing Law. THIS DEED OF TRUST SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED WITHOUT REGARD TO SUCH
STATE’S CONFLICT OF LAW PRINCIPLES.

     Section 7.07. Trustee.

     (a) The Grantor hereby irrevocably appoints the Trustee to act in that capacity hereunder and
the Trustee hereby accepts such appointment. The Grantor hereby irrevocably ratifies and confirms
all acts which the Trustee shall lawfully take in accordance with the provisions hereof.

     (b) The Trustee may, at its option, resign as trustee hereunder by notice given to the
Beneficiary, and such resignation shall be effective on the earlier to occur of (i) the date which
is 30 days after the date on which the Trustee gives such notice to the Beneficiary or (ii) the
date on which a successor trustee is appointed by the Beneficiary and accepts such appointment.

     (c) The Beneficiary may, at its option, with or without cause or notice, remove the Trustee,
appoint a successor trustee or appoint an additional trustee or trustees (including a separate
trustee for each jurisdiction in which the Trust Property is located) hereunder by an instrument in
writing executed and acknowledged by the Beneficiary and accepted by such successor or additional
trustee and recorded, registered or filed in the real estate records of the jurisdiction in which
the Trust Property affected by such instrument is located; and, thereupon, without further act,
deed or conveyance, such substitute or additional trustee shall be fully vested with all estate,
right, title and interest of its predecessor or co-trustee in, to, under or derived from the Trust
Property and all rights, powers, privileges and obligations of such predecessor or co-trustee, with
the same effect as if such successor or additional trustee had originally been named as trustee or
co-trustee hereunder. The execution, acknowledgment and recording, registration or filing of such
an instrument shall be conclusive evidence against the Grantor and all other Persons of the proper
removal of the Trustee and substitution or addition of the successor or additional trustee; and, if
the Beneficiary or such successor or additional trustee is a corporation, the execution and
acknowledgment by an officer of such corporation shall be conclusive evidence against all other
Persons of the due authorization, execution and delivery thereof by such corporation.

F-31

 

     (d) Notwithstanding anything herein to the contrary, the Trustee shall not exercise or waive
the exercise of any of its rights, powers or remedies hereunder or otherwise act or refrain from
acting hereunder unless directed to do so by the Beneficiary, and the Trustee shall exercise or
waive the exercise of any of its rights, powers or remedies hereunder and otherwise act or refrain
from acting when and in the manner directed by the Beneficiary, provided that the Trustee
(i) shall not be required to follow any direction of the Beneficiary if the Trustee has been
advised by counsel that such action would violate applicable law, (ii) shall not be required to
expend or risk its own funds or otherwise incur any financial liability in connection with such
action if it has grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not assured to it, and (iii) shall be entitled to exercise its rights
under subsection (e) of this Section without such direction by the Beneficiary.

     (e) The Trustee shall be entitled to receive, and the Grantor shall pay, reasonable and
customary compensation to the Trustee for its services rendered hereunder after any Default and
reimbursement to the Trustee for its expenses (including reasonable attorneys’ fees and expenses)
(to the extent supported by back-up invoices and documentation) in connection herewith or the
exercise of any right, power or remedy hereunder.

     (f) The Trustee shall not be liable with respect to any act taken or omitted by it in good
faith in accordance with any direction of the Beneficiary. Except for willful misconduct or gross
negligence, the Trustee shall not be liable (i) in acting upon any direction, demand, request,
notice, statement or other document believed by it in good faith to be genuine and delivered by the
Person empowered to do so, (ii) for any error in judgment or mistake of fact or law made in good
faith, or (iii) for any action taken or omitted by it in accordance with the provisions of this
Deed of Trust. The Trustee shall not be responsible to see to the recording, registration or
filing of this Deed of Trust or any financing statement relating hereto in any jurisdiction or for
the payment of any fees, charges or taxes in connection therewith. No co-trustee hereunder shall
be liable for any act or omission of any other co-trustee.

     (g) All moneys received by the Trustee hereunder (other than amounts payable to the Trustee
pursuant to subsection (d) of this Section) shall be held by the Trustee in trust for the purposes
for which such moneys were received; and, except as provided herein or under mandatory provisions
of applicable law, the Trustee need not segregate such moneys from any other moneys and shall have
no liability to pay interest thereon, except such interest as it may actually earn thereon.

     Section 7.08. Local Law Provisions. THE PROVISIONS SET FORTH IN APPENDIX A HERETO ARE
INCORPORATED HEREIN BY REFERENCE AS IF FULLY SET FORTH HEREIN AND NOT IN AN APPENDIX.

F-32

 

     Section 7.09. Multisite Real Estate Transaction. The Grantor acknowledges that this Deed of
Trust is one of a number of mortgages, deeds of trust and other security documents (“Other Deeds of
Trust”) that secure the Secured Obligations. Grantor agrees that the lien of this Deed of Trust
shall be absolute and unconditional and shall not in any manner be affected or impaired by any acts
or omissions whatsoever of Beneficiary, and without limiting the generality of the foregoing, the
lien hereof shall not be impaired by any acceptance by the Beneficiary of any security for or
guarantees of the Secured Obligations, or by any failure, neglect or omission on the part of
Beneficiary to realize upon or protect any Secured Obligation or any collateral security therefor
including the Other Deeds of Trust. The lien hereof shall not in any manner be impaired or
affected by any release (except as to the property released), sale, pledge, surrender, compromise,
settlement, renewal, extension, indulgence, alteration, changing, modification or disposition of
any of the Secured Obligations or of any of the collateral security therefor, including the Other
Deeds of Trust or of any guarantee thereof, and, to the fullest extent permitted by applicable law,
Beneficiary may at its discretion foreclose, exercise any power of sale, or exercise any other
remedy available to it under any or all of the Other Deeds of Trust without first exercising or
enforcing any of its rights and remedies hereunder. Such exercise of Beneficiary’s rights and
remedies under any or all of the Other Deeds of Trust shall not in any manner impair the
indebtedness hereby secured or the lien of this Deed of Trust and any exercise of the rights or
remedies of Beneficiary hereunder shall not impair the lien of any of the Other Deeds of Trust or
any of Deed of Trust’s rights and remedies thereunder. To the fullest extent permitted by
applicable law, Grantor specifically consents and agrees the Beneficiary may exercise its rights
and remedies hereunder and under the Other Deeds of Trust separately or concurrently and in any
order that it may deem appropriate and waives any rights of subrogation.

     Section 7.10. Subrogation to Rights of Prior Lienholder. If, and to the extent that, the
proceeds of the Loan are used to pay, satisfy or discharge any obligation of the Borrower for the
payment of money that is secured by a pre-existing mortgage, deed of trust or other lien
encumbering the Trust Property (a “prior lien”), such loan proceeds shall be deemed to have been
advanced by the Lenders at the Borrower’s request, and the Beneficiary, on behalf of the Lenders,
shall automatically, and without further action on its part, be subrogated to the rights, including
lien priority, of the owner or holder of the obligation secured by the prior lien, whether or not
the prior lien is released.

     Section 7.11. Waiver of Jury Trial. GRANTOR AND BENEFICIARY EXPRESSLY AND VOLUNTARILY WAIVE
ANY AND ALL RIGHTS, WHETHER ARISING UNDER THE UNITED STATES OR ANY STATE CONSTITUTION, ANY RULES OF
CIVIL PROCEDURE, COMMON LAW OR OTHERWISE, TO DEMAND A TRIAL BY JURY IN ANY ACTION, LAWSUIT,
PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON, OR ARISING OUT OF, THIS DEED
OF TRUST OR THE SECURITY DOCUMENTS, ANY AGREEMENTS ARISING UNDER OR RELATING TO THIS DEED OF TRUST,
ANY

F-33

 

COLLATERAL SECURING THE OBLIGATIONS, OR THE DEALINGS OR RELATIONSHIPS BETWEEN OR AMONG GRANTOR
AND BENEFICIARY, OR ANY OF THEM. NEITHER GRANTOR NOR BENEFICIARY, INCLUDING ANY ASSIGNEE OR
SUCCESSOR OF GRANTOR OR BENEFICIARY SHALL SEEK A JURY TRIAL IN ANY SUCH ACTION. NEITHER GRANTOR
NOR BENEFICIARY SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION WHEN A JURY TRIAL
CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NEITHER
GRANTOR NOR BENEFICIARY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO THE OTHER THAT THE PROVISIONS
OF THIS PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

F-34

 

     IN WITNESS WHEREOF, this Deed of Trust has been executed by the Grantor hereto as of the day
first set forth above.

	 	 	 	 	 

	 	 	Grantor:
	 
	 	 	 	 
	 	 	[NORTHROP GRUMMAN SHIPBUILDING, INC. (f/k/a NEWPORT NEWS SHIPBUILDING AND
DRY DOCK COMPANY)]., a [Virginia] [corporation]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

9

	 	 	 	 	 

	STATE OF

	)	 	 	 
	 

	) ss	 
	COUNTY OF

	)	 	 	 

     Before me, the undersigned, a Notary Public, on this day personally appeared
__________________, known by me to be the person and officer whose name is subscribed to the
foregoing instrument, and acknowledged to me that the same was the act of the said Northrop Grumman
Shipbuilding Inc., a Virginia corporation, and that (s)he has executed the same as the act of such
corporation for the purposes and consideration therein expressed, and in the capacity therein
stated.

     Given under my hand and seal of office this ___ day of ____________, 2011.

_______________________

Notary Public, State of _______________

_________________________

Printed Name of Notary

(Seal or Stamp)

 

			
	9	 	Local counsel: please provide notary form for
your jurisidiction.

 

 

Exhibit A

LEGAL DESCRIPTION

 

 

Appendix A

to Deed of Trust

Local Law Provisions10

     [MS:

     1. Section [5.05] (Sales) of the Deed of Trust is supplemented as follows:

     Except as otherwise provided herein, to the fullest extent permitted under applicable law, at
the election of the Beneficiary, the following provisions shall apply to any sale of the Trust
Property hereunder, whether made pursuant to the power of sale hereunder, any judicial proceeding
or any judgment or decree of foreclosure or sale or otherwise: In the event the Beneficiary directs
the Trustee to sell the Trust Property, or any part thereof, the Trustee shall first give notice of
the time, place and terms of sale by publication of a notice of sale for three consecutive weeks
preceding the sale and by posting one notice at the courthouse of the county in which any land
included in the Trust Property is located, as required by Section 89-1-55 of the Mississippi Code
of 1972, as amended. If the Trust Property is situated in two or more counties or in two judicial
districts of the same county or different counties, the Trustee shall have full power to select in
which county or judicial district the advertisement and sale of all or any part of the Trust
Property shall be made. The Trustee shall have authority to fix the day, hour, terms and place of
sale. Grantor waives any provision of law which restricts or limits the right of the Trustee to
offer more than 160 acres at one time. In the event any portion of the Trust Property is subject
to the provisions of the UCC, the Trustee shall have the same authority, rights and obligation with
respect to such property as to all other Trust Property or, the Beneficiary at its option may
proceed directly with respect to the Trust Property subject to the provisions of the UCC. In the
event the Beneficiary directs the Trustee to sell that portion of the Trust Property which is
subject to the UCC, the Trustee may elect to sell such property separately subject to the
provisions of the UCC, or the Trustee may sell all Trust Property pursuant to the provisions of
this Deed of Trust relating to sales of real property. Ten (10) days prior written notice will be
deemed commercially reasonable notice for sales held by Trustee pursuant to the UCC. The Trustee
may sell real and personal property separately and in any order or lots or coordinate the sales in
any manner deemed advisable by the Beneficiary. If the Beneficiary is proceeding to sell property
subject to the UCC, any sale held by

 

			
	10	 	Local counsel to comment and provide
different or additional riders, as necessary or recommended.

 

 

Beneficiary may be held in conjunction with or separate from sales held by Trustee.

     2. The following sentence shall be added to Section [7.01(c)] (Trustee): “The right to appoint
a successor or additional trustee shall be a continuing one and shall not be exhausted by one or
more appointments.”]

     [VA:

     1. Notices. All notices and communications delivered shall be effective in accordance
with the provisions of this Deed of Trust, provided, that service of a notice required by § 1-206
of the Virginia Code, as amended, shall be considered complete when the requirements of that
statute are met.

     2. Acceleration Upon Transfer. If any sale, conveyance, alienation, mortgage,
encumbrance, pledge or transfer of the Trust Property prohibited under the Secured Agreements
occurs without Beneficiary’s consent, then at Beneficiary’s sole option, Beneficiary may, by
written notice to Grantor, declare the Secured Obligations immediately due and payable. Without
limiting the generality of the foregoing, the following provision is set forth herein in order to
comply with the requirements of § 6.2-417 of the Code of Virginia, if such requirements are
applicable to the Trust Property: NOTICE — THE DEBT SECURED HEREBY IS SUBJECT TO CALL IN FULL OR
THE TERMS THEREOF BEING MODIFIED IN THE EVENT OF SALE OR CONVEYANCE OF THE PROPERTY CONVEYED.

     3. Rights and Remedies of Trustee. Trustee may take possession of and sell the Trust
Property, or any part thereof requested by Beneficiary to be sold, and in connection therewith
Grantor hereby authorizes and empowers Trustee to take possession of and sell (or in case of the
default of any purchaser to resell) the Trust Property, or any part thereof, all in accordance with
the laws or rules of court of the Commonwealth of Virginia relating to deeds of trust, including
any amendments thereof, or additions thereto, which do not materially change or impair the remedy.
In connection with any foreclosure, Beneficiary and/or Trustee may (y) procure such title reports,
surveys, tax histories and appraisals as they deem necessary, and (z) make such repairs and
additions to the Trust Property as they deem advisable, all of which shall constitute “Expenses”
(hereinafter defined). In the case of any sale under this Deed of Trust, by virtue of judicial
proceedings or otherwise, the Trust Property may be sold as an entirety or in parcels, by one sale
or by several sales, and any fixtures or other Trust Property encumbered by this Deed of Trust may
be sold at the same sale as the Trust Property or in one or more sales, as may be deemed by
Trustees to be appropriate and without regard to any right of Grantor or any other person to the
marshalling of assets, for cash, on credit or for other property, for immediate or future delivery,
and for such price or prices and on such terms having first given such notice prior to the sale of
such time, place and terms by publication in at least one newspaper published or having general
circulation in the city or county

 

 

in which the Trust Property is located or at such time or times as may be required by the laws
of the Commonwealth of Virginia or rule of court of the Commonwealth of Virginia, and such other
times and by such other methods, if any, as Trustee, in its sole discretion, shall deem
advantageous and proper. “Expenses” means all costs and expenses of any nature whatsoever incurred
at any time and from time to time (whether before or after an Event of Default) by Beneficiary or
Trustee in exercising or enforcing any rights, powers and remedies provided in this Deed of Trust
or the Secured Agreements, including, without limitation, attorney’s fees, court costs, receiver’s
fees, management fees and costs incurred in the repair, maintenance and operation of, or taking
possession of, or selling, the Property.

     (a) Any sale hereunder may be made at public auction, at such time or times, at such
place or places, and upon such terms and conditions and after such previous public notice
as trustee shall deem appropriate and advantageous and as required by the laws of the
Commonwealth of Virginia. The parties hereto agree that the advertisement required is as
follows: (1) if the advertisement is inserted on a weekly basis, publication once a week
for two (2) weeks shall be sufficient; and (2) if the advertisement is inserted on a daily
basis, publication once a day for three (3) days, which may be consecutive days, shall be
sufficient.

     (b) Upon the terms of such sale being complied with, Trustee shall convey to, and at
the cost of, the purchaser or purchasers the interest of Grantor in the Property so sold,
free and discharged of and from all estate, title or interest of Grantor, at law or in
equity, such purchaser or purchasers being hereby discharged from all liability to see to
the application of the purchase money.

     (c) Beneficiary and any affiliate thereof may be a purchaser of the Trust Property or
of any part thereof or of any interest therein at any public sale thereof, whether
pursuant to foreclosure or power of sale or otherwise hereunder, without forfeiting its
right to collect any deficiency from Grantor; and Beneficiary may apply upon the purchase
price the Obligations secured hereby owing to Beneficiary. Beneficiary, upon any such
purchase shall acquire good title to the properties so purchased, free of the lien of this
Deed of Trust and all rights of redemption in Grantor and free of all liens and
encumbrances subordinate to this Deed of Trust.

     4. Statutory Conditions. This Deed of Trust is made under and pursuant to the
provisions of the Code of Virginia, Sections 55-58.1, 55-58.2, 55-59, 55-59.1 through 55-59.4 and
55-60, as amended, and shall be construed to impose and confer upon the parties hereto and
Beneficiary all the rights, duties and obligations prescribed by said Sections 55-58.1, 55-58.2
55-59, 55-59.1 through 55-59.4 and 55-60, as amended, except as herein otherwise restricted,
expanded or changed, including without limitation the following rights, duties and obligations
described in short form:

 

 

     (a) All exemptions are hereby waived.

     (b) Subject to all upon default.

     (c) Renewal, extension, or reinstatement permitted.

     (d) Substitution of trustees collectively or of any of them individually by
the beneficiary is permitted for any reason whatsoever, and any number of times
without exhaustion of the right to do so.

     (e) Advertisement required, as set forth in paragraph 4(a) of this Appendix
A in any newspaper of general circulation in the county or city in which the
Property is situated.

     (f) Any Trustee may act.

     (g) The Trustee may require a deposit in the amount of two percent (2%) of
the unpaid principal obligations then secured hereby or Fifty Thousand Dollars
($50,000.00), whichever is greater, to accompany each bid at foreclosure sale or
sale in lieu thereof.

     5. Application of Foreclosure Sale Proceeds. The proceeds of such sale or sales of
the Trust Property under this Deed of Trust, whether under the assent to a decree, the power of
sale, or by equitable foreclosure, shall be held by Trustee and applied in accordance with Virginia
law. In the event that the proceeds of any such sale or sales, together with all other monies at
the time held by Trustees under this Deed of Trust, are insufficient to pay the foregoing costs and
expenses, Beneficiary may, at its sole option, advance such sums as Beneficiary in its sole and
absolute discretion shall determine for the purpose of paying all or any part of such costs and
expenses, and all such sums so advanced shall be (A) lien against the Trust Property, (B) added to
the amount due under the Secured Obligations and secured by this Deed of Trust, and (C) payable on
demand with interest at the rate of interest applicable to the principal balance of the Secured
Obligation, from and including the date each such advance is made. In any event, Grantor shall be
liable to Beneficiary for any deficiency to the full extent permissible under applicable law.
Grantor shall pay to Trustee a reasonable commission if the Trust Property is advertised for sale
under the provisions of this Deed of Trust and is not sold, and the Grantor shall also pay or
reimburse Trustees for all of Trustees’ expenses and disbursements hereunder (to the extent
supported by back-up invoices and documentation) regardless of whether the Trust Property is sold
(the “Trustees’ Commission”).

     [6. Execution Under Seal. Trustee agrees that this Deed of Trust is executed under
seal. The designation “(SEAL)” on this Deed of Trust shall be as effective as the affixing of a
seal physically to this Deed of Trust.]

 

 

     7. Credit Line Deed of Trust. THIS IS A CREDIT LINE DEED OF TRUST WITHIN THE MEANING
OF Section 55-58.2 of the Code of Virginia (1950), as amended. For purposes of and to the extent
required by such Section, (i) the name of the agent for the noteholders secured by this Deed of
Trust is [____________________] as Collateral Agent, (ii) the address at which communications may
be mailed or delivered to such noteholder is [______________________], and (iii) the maximum
aggregate amount of principal to be secured at any one time is $_______________.

     8. Pursuant to Va. Code § 55-59(7), Beneficiary may inform the Trustee of an event of default
as necessary to empower the Trustee to sell the Trust Property.]

 

 

EXHIBIT
G

FORM OF COMPLIANCE CERTIFICATE

          Reference is made to that certain Credit Agreement dated as of March [ ], 2011 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Credit Agreement”) among Huntington Ingalls Industries, Inc. (the “Borrower”), the
Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Issuing Bank and
Swingline Lender and Credit Suisse AG, as Swingline Lender. Under otherwise defined herein,
capitalized terms used herein have the meanings attributed thereto in the Credit Agreement.

          The undersigned Financial Officer of the Borrower hereby certifies to the Administrative Agent
on behalf of the Borrower as of the date hereof as follows:

	1.	 	[Attached hereto as Annex A is the audited consolidated balance sheet and related
statements of operations, stockholders’ equity and cash flows of the Borrower and its
Subsidiaries as of the end of and for [FISCAL YEAR], setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by Deloitte & Touche LLP or
other independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or exception as to
the scope of such audit) to the effect that such consolidated financial statements present
fairly in all material respects the financial condition and results of operations of the
Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, together with a customary “management discussion and analysis”
provision. Also attached are the related consolidating financial statements reflecting the
adjustments necessary to eliminate the accounts of any Unrestricted Subsidiaries that
constitute Significant Subsidiaries from such consolidated financial statements.]1
	 
	2.	 	[Attached hereto as Annex A is the consolidated balance sheet and related statements
of operations, stockholders’ equity and cash flows of the Borrower and its Subsidiaries as of
the end of and for [FISCAL QUARTER] and the portion of the fiscal year through the end of such
quarter, setting forth in each case in comparative form the figures for the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of) the previous
fiscal year. These present fairly in all material respects the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes, together with a customary “management discussion and
analysis” provision. Also attached are the related consolidating financial statements
reflecting the adjustments necessary to eliminate the accounts of any Unrestricted
Subsidiaries that constitute Significant Subsidiaries from such consolidated financial
statements.]2

 

			
	1	 	To be included if accompanying annual
financial statements only.
	 
	2	 	To be included if accompanying quarterly
financial statements only.

G-1 

 

	3.	 	[Attached hereto as Annex B is a detailed consolidated budget for [FISCAL YEAR]
(including a projected consolidated balance sheet and related statements of projected
operations and cash flows as of the end of and for such fiscal year and setting forth the
assumptions used for purposes of preparing such budget).]3
	 
	4.	 	[Attached hereto as Annex C is a certificate of the accounting firm that reported on
the financial statements in Annex A stating whether they obtained knowledge during the course
of their examination of such financial statements of any Default or Event of Default under
Section 6.11 or 6.12 of the Credit Agreement (which certificate may be limited to the extent
required by accounting rules or guidelines).]4
	 
	5.	 	No Default or Event of Default has occurred. [If unable to provide the foregoing
certification, provide here a list of each such Default or Event of Default, specifying the
nature and extent thereof and any action taken or proposed to be taken with respect thereto.]
	 
	6.	 	Attached hereto as Schedule 1 are the reasonably detailed calculations demonstrating
compliance with Section 6.10 of the Credit Agreement.
	 
	7.	 	Attached hereto as Schedule 2 are the reasonably detailed calculations demonstrating
compliance with Section 6.11 of the Credit Agreement.
	 
	8.	 	Attached hereto as Schedule 3 are the reasonably detailed calculations demonstrating
compliance with Section 6.12 of the Credit Agreement.
	 
	9.	 	[Attached hereto as Schedule 4 are the reasonably detailed calculations demonstrating
Excess Cash Flow.]5
	 
	10.	 	[Attached hereto as Schedule 5 are the reasonably detailed calculations demonstrating Excess
Cash Withheld Amount.]6
	 
	11.	 	No change in GAAP or in the application thereof has occurred since December 31, 2010. [If
unable to provide the foregoing certification, provide here a list of each such change in GAAP
or in the application thereof, specifying the effect of such change on the financial
statements in Annex A.]

[Remainder of page intentionally blank]

 

			
	3	 	To be included if accompanying annual
financial statements only.
	 
	4	 	To be included if accompanying annual
financial statements only.
	 
	5	 	To be included if accompanying annual
financial statements only.
	 
	6	 	To be included if accompanying annual
financial statements only.

G-2 

 

     IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate for and on behalf
of Huntington Ingalls Industries, Inc. and has caused this certificate to be delivered this [ ]
day of [ ], 201[      ].

	 	 	 	 	 
	 	HUNTINGTON INGALLS INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

G-3 

 

ANNEX A

to the Compliance Certificate

FINANCIAL STATEMENTS

[See attached]

G-4 

 

ANNEX B

to the Compliance Certificate

DETAILED CONSOLIDATED BUDGET

[See attached]

G-5 

 

ANNEX C

to the Compliance Certificate

CERTIFICATE OF ACCOUNTING FIRM

[See attached]

G-6 

 

SCHEDULE 1

to Compliance Certificate

Capital Expenditures

	 	I.	 	Capital Expenditures

	 	(a)	 	the additions to property, plant and equipment and other capital
expenditures that are (or should be) set forth in a consolidated
statement of cash flows of the Borrower and the Restricted
Subsidiaries for such period prepared in accordance with GAAP: 	 	$__________

	 	plus

	 	(b)	 	Capital Lease Obligations incurred by the Borrower and its
consolidated Restricted Subsidiaries during such period: 	 	$__________

	 	minus

	 	(c)	 	any such expenditure made to restore, replace or rebuild property
to the condition of such property (or its reasonable equivalent)
immediately prior to any damage, loss, destruction or condemnation of
such property, to the extent such expenditure is made with insurance
proceeds, condemnation awards or damage recovery proceeds relating to
any such damage, loss, destruction or condemnation: 	 	$__________

	 	 	 	Total 	 	$__________

	 	II.	 	Amount of Total attributed to Capital Expenditures made with the
portion, if any, of the Available Retained Basket Amount pursuant to
Section 6.10(i) of the Credit Agreement: 	 	$__________

	 	III.	 	Amount of Total attributed to the amount permitted pursuant to the
table listed in Section 6.10(ii) of the Credit Agreement: 	 	$__________

	 	IV.	 	Amount of Total attributed to CapEx Rollover Amount, if any7: 	 	$__________

 

			
	7	 	Such amount equals the unused Specified
Permitted CapEx Amount for the immediately preceding fiscal year. CapEx
Rollover Amount may be used in any fiscal year beginning with the fiscal year
ended December 31, 2012 and only after the Specified Permitted CapEx Amount for
such fiscal year has been fully used in such fiscal year.

G-7 

 

	 	V.	 	Amount of Total attributed to CapEx Pull Forward Amount8: 	 	$__________

 

			
	8	 	This amount not to exceed 50% of the amount
of the Specified Permitted CapEx Amount for the immediately succeeding year.
This amount shall reduce on a dollar-for-dollar basis the Specified Permitted
CapEx Amount for the immediately succeeding year.

G-8 

 

SCHEDULE 2

to Compliance Certificate

Interest Coverage Ratio (Consolidated EBITDA ÷ Consolidated Interest Expense)

	 	I.	 	Consolidated EBITDA9
	 
	 	 	 	Consolidated Net Income:

	 	(i)	 	net income or loss of the Borrower and the
Restricted Subsidiaries determined on a
consolidated basis in accordance with GAAP: 	 	$__________

	 	 	 	less

	 	(ii)	 	the income of any Restricted Subsidiary to
the extent that the declaration or payment of
dividends or similar distributions by the
Restricted Subsidiary of that income is not at
the time permitted by operation of the terms of
its charter or any agreement, instrument,
judgment, decree, statute, rule or governmental
regulation applicable to such Restricted
Subsidiary: 	 	$__________

	 	 	 	less

	 	(iii)	 	the income or loss of any Person accrued
prior to the date it becomes a Restricted
Subsidiary or is merged into or consolidated
with the Borrower or any Restricted Subsidiary
or the date that such Person’s assets are
acquired by the Borrower or any Restricted
Subsidiary: 	 	$__________

	 	 	 	less

 

			
	9	 	The Consolidated EBITDA of any Acquired
Entity acquired by the Borrower or any Restricted Subsidiary pursuant to a
Permitted Acquisition during any period shall be included on a pro forma basis
for such period (assuming the consummation of such acquisition and the
incurrence or assumption of any Indebtedness in connection therewith occurred
as of the first day of such period). The Consolidated EBITDA of any Person or
line of business sold or otherwise disposed of by the Borrower or any
Restricted Subsidiary during any period shall be excluded for such period
(assuming the consummation of such sale or other disposition and the repayment
of any Indebtedness in connection therewith occurred as of the first day of
such period).

G-9 

 

	 	(iv)	 	the income of any Person in which any other
Person (other than the Borrower or a Wholly
Owned Restricted Subsidiary or any director
holding qualifying shares in accordance with
applicable law) has a joint interest, except to
the extent of the amount of dividends or other
distributions actually paid to the Borrower or a
Wholly Owned Restricted Subsidiary by such
Person during such period: 	$	 

	 	 	 	less

	 	(v)	 	any gains attributable to sales of assets
out of the ordinary course of business: 	$	 
	 
	 	 	 	Consolidated Net Income Total 	$	 

	 	 	plus

	 	(a)	 	the sum, without duplication and to the extent deducted in
determining Consolidated Net Income for such period, of

	 	(i)	 	Consolidated Interest Expense 10:

	 	(A)	 	the interest expense
(including without limitation
imputed interest expense in
respect of Capital Lease
Obligations) of the Borrower and
the Restricted Subsidiaries for
such period, determined on a
consolidated basis in accordance
with GAAP: 	$	 

	 	 	 	plus

 

			
	10	 	Interest expense shall be determined after
giving effect to any net payments made or received by the Borrower or any
Restricted Subsidiary with respect to interest rate Swap Contracts. For any
period ending prior to the first anniversary of the Funding Date, Consolidated
Interest Expense shall be deemed to be equal to the actual Consolidated
Interest Expense from the Funding Date through the date of determination
multiplied by a fraction the numerator of which is 365 and the denominator of
which is the number of days from the Funding Date through the date of
determination.

G-10 

 

	 	(B)	 	any interest accrued during
such period in respect of
Indebtedness of the Borrower or
any Restricted Subsidiary that is
required to be capitalized rather
than included in consolidated
interest expense for such period
in accordance with GAAP: 	 	$__________

	 	 	 	minus

	 	(C)	 	the interest income with
respect to unrestricted cash and
Permitted Investments of the
Borrower and the Restricted
Subsidiaries earned during such
period in accordance with GAAP: 	 	$__________
	 
	 	 	 	Consolidated Interest Expense Total 	 	$__________

	 	(ii)	 	letters of credit fees (to the extent not
included in Consolidated Interest Expense): 	 	$__________
	 
	 	(iii)	 	consolidated income tax expense: 	 	$__________
	 
	 	(iv)	 	all amounts attributable to depreciation
and amortization: 	 	$__________
	 
	 	(v)	 	any non-cash charges (other than the
write-down of current assets): 	 	$__________
	 
	 	(vi)	 	any extraordinary charges: 	 	$__________
	 
	 	(vii)	 	any Incremental Spin-off Related
Expenses11 for such
period12: 	 	$__________
	 
	 	(viii)	 	any financing fees, financial and other
advisory fees, accounting and consulting fees
and legal fees and related costs and expenses
incurred during such period in connection with
acquisitions, investments and asset sales
permitted by the Credit Agreement: 	 	$__________

 

			
	11	 	Incremental costs for procurement of
material and/or services resulting from renegotiation of pre-existing
Intercompany Work Orders on an arm’s length basis with Northrop Grumman and its
subsidiaries.
	 
	12	 	Not to exceed $40,000,000 in the aggregate
over the term of the Credit Agreement or $20,000,000 in any fiscal year.

G-11 

 

	 	(ix)	 	any cash or non-cash charges or losses
relating to the closing of the shipyard in
Avondale, Louisiana or the facilities in
Waggaman, Louisiana, or Tallulah, Louisiana, the
construction of the LPD-23 Anchorage, the
construction of the LPD-25 Somerset or any
restructuring or reorganization of the Borrower
or any of its Subsidiaries (including severance
costs)13: 	$	 
	 
	 	(x)	 	Transaction Expenses14: 	$	 
	 
	 	 	 	Sub-Total                           
  	$	 

	 	 	 	minus

	 	(b)	 	the sum, without duplication, of:

	 	(i)	 	all cash payments made on account of
reserves, restructuring charges and other
non-cash charges added to Consolidated Net
Income pursuant to clause (a)(v) above in a
previous period: 	$	 
	 
	 	(ii)	 	to the extent included in determining such
Consolidated Net Income, any extraordinary
gains and all non-cash items of income: 	$	 
	 
	 	 	 	Sub-Total                           
  	$	 

	 	 	 	plus / minus

	 	(c)	 	unrealized losses/gains in respect of Swap Contracts, all
determined on a consolidated basis in accordance with GAAP: 	$	 
	 
	 	 	 	Sub-Total                           
  	$	 

 

			
	13	 	Up to an aggregate amount for all such
charges and losses of (A) for the 2011 fiscal year, $50,000,000, (B) for the
2012 fiscal year, $35,000,000 and (C) for any fiscal year thereafter,
$25,000,000.
	 
	14	 	All legal fees, auditors fees and other fees
or expenses incurred by the Borrower and the Restricted Subsidiaries in
connection with the Transactions (as defined in the Credit Agreement)
(including without limitation, financing fees, financial and other advisory
fees, accounting and consulting fees and legal fees and related costs and
expenses).

G-12 

 

	 	 	 	Consolidated EBITDA (Consolidated Net Income Total + Sub-Total
for (a) — Sub-Total for (b) +/- Sub-Total for (c)) 	$	 

	 	II.	 	Consolidated Interest Expense 	$	 

	 	 	Interest Coverage Ratio (Consolidated EBITDA ÷ Consolidated Interest
Expense)	 	__ to 1:00

G-13 

 

SCHEDULE 3

to Compliance Certificate

Leverage Ratio (Total Debt ÷ Consolidated EBITDA15)

	 	I.	 	Total Debt

	 	(a)	 	all obligations of the Borrower and the
Restricted Subsidiaries for borrowed money: 	 	$__________
	 
	 	(b)	 	all obligations of the Borrower and the
Restricted Subsidiaries evidenced by bonds,
debentures, notes or similar instruments: 	 	$__________
	 
	 	(c)	 	all obligations of the Borrower and the
Restricted Subsidiaries under conditional sale or
other title retention agreements relating to property
or assets purchased by such Person: 	 	$__________
	 
	 	(d)	 	all obligations of the Borrower and the
Restricted Subsidiaries issued or assumed as the
deferred purchase price of property or services
(excluding trade and other current accounts payable
and accrued obligations incurred in the ordinary
course of business) : 	 	$__________
	 
	 	(e)	 	all Indebtedness of others secured by (or for
which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any
Lien on property owned or acquired by the Borrower
and the Restricted Subsidiaries, whether or not the
obligations secured thereby have been assumed (but to
the extent such Lien does not extend to any other
property of the Borrower and the Restricted
Subsidiaries and is otherwise non-recourse against
the Borrower and the Restricted Subsidiaries, limited
to the fair market value of such property): 	 	$__________
	 
	 	(f)	 	all Guarantees by the Borrower and the Restricted
Subsidiaries of Indebtedness of others: 	 	$__________
	 
	 	(g)	 	all Capital Lease Obligations of the Borrower and
the Restricted Subsidiaries: 	 	$__________

 

			
	15	 	For the period of four consecutive fiscal
quarters most recently ended on or prior to such date.

G-14 

 

	 	(h)	 	net obligations of the Borrower and the
Restricted Subsidiaries under any Swap Contracts,
valued at the Agreement Value thereof: 	 	$__________
	 
	 	(i)	 	all obligations of the Borrower and the
Restricted Subsidiaries as an account party in
respect of letters of credit (only to the extent of
any unreimbursed drawings thereunder): 	 	$__________
	 
	 	(j)	 	all obligations of the Borrower and the
Restricted Subsidiaries in respect of bankers’
acceptances (only to the extent of any unreimbursed
drawings thereunder): 	 	$
 

	 
	 	 	 	Total 	 	$  

	 	II.	 	Consolidated EBITDA 	 	$
 

	 
	 	II.	 	Leverage Ratio (Total Debt ÷ Consolidated EBITDA)	 	 __ to 1:00

G-15 

 

SCHEDULE 4

to Compliance Certificate

Excess Cash Flow

	 	 	the excess of

	 	(a)	 	the sum, without duplication, of:

	 	(i)	 	Consolidated Net Income for such fiscal year: 	 	$__________
	 
	 	(ii)	 	reductions to noncash working capital of the Borrower and
the Restricted Subsidiaries for such fiscal year (i.e., the
decrease, if any, in Current Assets minus Current Liabilities
from the beginning to the end of such fiscal year): 	 	$__________
	 
	 	(iii)	 	the amount of all non-cash charges (including depreciation
and amortization) deducted in arriving at such Consolidated Net
Income: 	 	$__________
	 
	 	(iv)	 	an amount equal to the aggregate net non-cash loss on the
disposition of property by the Borrower and the Restricted
Subsidiaries during such fiscal year, to the extent deducted in
arriving at such Consolidated Net Income: 	 	$__________
	 
	 	(v)	 	the amount of income tax expense deducted in determining
Consolidated Net Income for such period: 	 	$__________
	 
	 	(vi)	 	Consolidated Interest Expense for such period: 	 	$__________
	 
	 	 	 	Total 
	 	$
 

	 	 	over

	 	(b)	 	the sum, without duplication, of:

	 	(i)	 	the amount of any incomes taxes payable in cash by the
Borrower and the Restricted Subsidiaries with respect to such
fiscal year: 	 	$__________
	 
	 	(ii)	 	Consolidated Interest Expense for such fiscal year paid in
cash plus, to the extent deducted from the calculation thereof,
cash interest income during such fiscal year: 	 	$__________
	 
	 	(iii)	 	Capital Expenditures and Permitted Acquisitions made in
cash in accordance with Section 6.10 and Section 6.04(g),
respectively, of the Credit Agreement during such fiscal year, in
each case to the extent financed with internally generated funds
and not by utilizing the Available Retained Basket Amount: 	 	$__________

G-16 

 

	 	(iv)	 	cash or in-kind investments made during such fiscal year
pursuant to Section 6.04(p) or Section 6.04(q) of the Credit
Agreement, and cash fees and expenses paid during such fiscal
year in connection with any Investment permitted under Section
6.04 of the Credit Agreement, in each case to the extent financed
with internally generated funds (other than in the case of any
in-kind investment) and not by utilizing the Available Retained
Basket Amount: 	 	$__________
	 
	 	(v)	 	permanent repayments of Indebtedness (other than mandatory
prepayments of Term Loans under Section 2.12 and voluntary
prepayments of Term Loans under Section 2.11 of the Credit
Agreement) made in cash by the Borrower and the Restricted
Subsidiaries during such fiscal year, but only to the extent that
the Indebtedness so prepaid by its terms cannot be reborrowed or
redrawn, such prepayments do not occur in connection with a
refinancing of all or any portion of such Indebtedness and such
prepayments are not financed with the Available Retained Basket
Amount: 	 	$__________
	 
	 	(vi)	 	additions to noncash working capital for such fiscal year
(i.e. the increase, if any, in Current Assets minus Current
Liabilities16 from the beginning to the end of such
fiscal year) 	 	$__________
	 
	 	(vii)	 	an amount equal to the aggregate net non-cash gain on the
disposition of property by the Borrower and the Restricted
Subsidiaries during such fiscal year, to the extent included in
arriving at such Consolidated Net Income: 	 	$__________
	 
	 	(viii)	 	cash payments during such fiscal year in respect of
long-term liabilities other than Indebtedness and that were made
with internally generated funds and were not deducted or excluded
in calculating Consolidated Net Income: 	 	$__________
	 
	 	(ix)	 	Excess Cash Withheld Amount17 for such fiscal
year: 	 	$__________
	 
	 	 	 	Total 	 	$
  

 

			
	16	 	At any time, the consolidated current
liabilities of the Borrower and the Restricted Subsidiaries at such time, but
excluding, without duplication, (a) the current portion of any long-term
Indebtedness and (b) outstanding Revolving Loans and Swingline Loans.
	 
	17	 	As certified in reasonable detail in a
certificate signed by a Financial Officer and delivered to the Administrative
Agent contemporaneously with the delivery of the Compliance Certificate for
such fiscal year.

G-17 

 

	 	 	 	Excess Cash Flow (Total for (a) — Total for (b)) 	 	$
 

G-18 

 

SCHEDULE 5

to Compliance Certificate

Excess Cash Withheld Amount

[See attached]

G-19 

 

EXHIBIT H

FORM OF CONFIDENTIALITY AGREEMENT

This Confidentiality Agreement, dated as of ________________, is executed by the undersigned in its
capacity as an actual or prospective assignee or participant under that certain Credit Agreement
dated as of March [     ], 2011 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”) among Huntington Ingalls Industries, Inc., the Lenders from time to
time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, an Issuing Bank and a
Swingline Lender, and Credit Suisse AG, as Swingline Lender, or as an actual or prospective
counterparty (or an advisor thereto) to a swap or derivative transaction relating to the Borrower.
Terms used herein and not defined have the meanings assigned to them in the Credit Agreement.

The documents furnished to Recipient (as defined below) MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION
concerning the Borrower, its affiliates or any party related thereto (collectively, “Borrower
Parties”) or securities thereof.

By executing this Confidentiality Agreement, you and your institution (collectively, “you” or the
“Recipient”) agree, for the benefit of the Borrower Parties and the Administrative Agent, to be
bound by the terms of this notice and the undertakings set forth herein.

I. Confidentiality

As used herein: (a) “Information” means the information that may be provided to you (whether
prepared or communicated by the Administrative Agent or the Loan Parties, their respective advisors
or otherwise) relating to the Loan Parties, any of their respective businesses or securities other
than any such information that is available on a nonconfidential basis prior to disclosure by the
Borrower and (b) “Internal Evaluation Material” means all memoranda, notes, and other documents and
analyses developed by the Recipient using any Information.

The Recipient agrees to use all Information in accordance with the Recipient’s compliance policies
and the terms of this Confidentiality Agreement.

The Recipient agrees that upon its becoming a Secured Party (as defined in the Credit Agreement),
the Administrative Agent and/or Borrower will provide syndicate-level information (which may
contain material non-public information) in connection with the Credit Agreement to the credit
contacts identified on your Administrative Questionnaire, which credit contacts shall be your
Representatives (as defined below) for purposes hereof. Such credit contacts shall be able to
receive and use syndicate-level information in accordance with your compliance policies and the
terms of this Confidentiality Agreement.

The Recipient acknowledges that the Borrower considers the Information to include confidential,
sensitive or proprietary information and agrees that it shall maintain the confidentiality of the
Information; provided that (i) it may disclose such information to which the Borrower gives its
prior written consent and (ii) such Information may be disclosed to it, its affiliates and their
respective partners, directors, officers, employees, agents, advisors and other representatives

H-1

 

(collectively, “Representatives”) (provided that such Representatives shall be informed by the
Recipient of the confidential nature of such information prior to the disclosure and shall be
directed to treat such information in accordance with the terms hereof). The Recipient agrees to
be responsible for any breach of this Confidentiality Agreement by its Representatives.

The foregoing confidentiality requirements do not apply to (i) any information that is or becomes
generally available to the public other than by a breach hereof, (ii) any information available to
Recipient on a nonconfidential basis from a source other than the Borrower, the other Loan Parties,
the Administrative Agent, the Lenders or their respective agents, or (iii) any disclosure required
by law, regulation or administrative or other legal process or requested by regulatory or
governmental authorities. The Recipient agrees that it will notify the Borrower and the
Administrative Agent as soon as practical in the event of any disclosure pursuant to the
aforementioned clause (iii) unless such notification shall be prohibited by applicable law or legal
process.

If the Recipient decides not to become an assignee or participant under the Credit Agreement or a
counterparty to any swap or derivative transaction relating to the Borrower, then upon request of
the Administrative Agent or the Borrower, the Recipient shall as soon as practicable return all
written Information (other than Internal Evaluation Material) to the Borrower or represent in
writing to the Borrower and the Administrative Agent that the Recipient has destroyed all copies of
the written Information (other than Internal Evaluation Material) unless prohibited from doing so
by law, regulation or the Recipient’s internal policies and procedures.

The terms and conditions of Part I of this Confidentiality Agreement shall apply until you become a
party to the Credit Agreement and thereafter the provisions relating to confidentiality contained
in such agreements shall supersede the provisions hereof. If you do not enter into the Credit
Agreement, this Confidentiality Agreement shall terminate on the date falling two years after the
date hereof.

II. Information

The Recipient acknowledges and agrees that (i) the Administrative Agent received the Information
(other than certain administrative materials provided by the Administrative Agent) from third party
sources (including the Borrower) and it is provided to the Recipient for informational purposes,
(ii) the Administrative Agent and its affiliates have no responsibility, and shall not be liable,
for the accuracy or completeness or lack thereof of the Information or any information contained
therein, (iii) no representation regarding the Information is made by the Administrative Agent or
its affiliates, (iv) neither the Administrative Agent nor their affiliates have made any
independent verification as to the accuracy or completeness of the Information and (v) the
Administrative Agent and their affiliates shall have no obligation to update or supplement any
Information or otherwise provide additional information.

The Information has been prepared to assist the Recipient in making its own evaluation of the
Borrower and the Credit Agreement and does not purport to be all-inclusive or to contain all of the
information that such Recipient may consider material or desirable with respect to the Borrower or
the Credit Agreement. Each Recipient of the information contained herein should take such steps as
it deems necessary to assure that it has the information it considers material or

H-2

 

desirable with respect to the Borrower or the Credit Agreement and should perform its own
independent investigation and analysis of the Credit Agreement or the transactions contemplated
thereby and the creditworthiness of the Borrower. The Recipient represents that it is
sophisticated and experienced in extending credit to entities similar to the Borrower. The
information contained herein are not a substitute for Recipient’s independent evaluation and
analysis and should not be considered as a recommendation by the Administrative Agent or any of its
affiliates that any Recipient become a lender, assignee or participant under the Credit Agreement
or a counterparty to any swap or derivative transaction relating to the Borrower or any of its
subsidiaries.

II. General

Recipient agrees that money damages would not be a sufficient remedy for breach of this
Confidentiality Agreement, and that in addition to all other remedies available at law or in
equity, Borrower and the Administrative Agent shall be entitled to equitable relief, including
injunction and specific performance, without proof of actual damages.

This Confidentiality Agreement shall be governed by and construed in accordance with the law of the
State of New York, without regard to principles of conflicts of law (except Section 5-1401 of the
New York General Obligation Law to the extent that it provides that the law of the State of New
York shall govern).

	 	 	 	 	 
	 	[RECIPIENT]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

H-3

 

EXHIBIT I

FORM OF U.S. TAX CERTIFICATE

EXHIBIT I-1

FORM OF U.S. TAX CERTIFICATE

(For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

     Reference is hereby made to the Credit Agreement dated as of [ ] (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among [ ], and each lender from time
to time party thereto.

     Pursuant to the provisions of Section 2.18 of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any
Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is
not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent
shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, (iv) it is not
a controlled

foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code and
(v) the interest payments in question are not effectively connected with the undersigned’s conduct
of a U.S. trade or business.

     The undersigned has furnished the Administrative Agent and the Borrower with a certificate of
its non-U.S. person status on IRS Form W-8BEN. By executing this certificate, the undersigned
agrees that (1) if the information provided on this certificate changes, the undersigned shall
promptly so inform the Borrower and the Administrative Agent and (2) the undersigned shall have at
all times furnished the Borrower and the Administrative Agent with a properly completed and
currently effective certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments.

     Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

[NAME OF LENDER]

By:____________________________

Name:

Title:

Date: ________ __, 20[ ]

I-1

 

EXHIBIT I-2

FORM OF U.S. TAX CERTIFICATE

(For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

     Reference is hereby made to the Credit Agreement dated as of [ ] (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among [ ], and each lender from time
to time party thereto.

     Pursuant to the provisions of Section 2.18 of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing
such Loan(s)) in respect of which it is providing this certificate, (ii) its partners/members are
the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii)
with respect to the extension of credit pursuant to this Credit Agreement, neither the undersigned
nor any of its partners/members is a bank extending credit pursuant to a loan agreement entered
into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of
the Code, (iv) none of its partners/members is a ten percent shareholder of the Borrower within the
meaning of Section 881(c)(3)(B) of the Code, (v) none of its partners/members is a controlled

foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code, and
(vi) the interest payments in question are not effectively connected with the undersigned’s or its
partners/members’ conduct of a U.S. trade or business.

     The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY
accompanied by an IRS Form W-8BEN from each of its partners/members claiming the portfolio interest
exemption. By executing this certificate, the undersigned agrees that (1) if the information
provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the
Administrative Agent and (2) the undersigned shall have at all times furnished the Borrower and the
Administrative Agent with a properly completed and currently effective certificate in either the
calendar year in which each payment is to be made to the undersigned, or in either of the two
calendar years preceding such payments.

     Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

[NAME OF LENDER]

By:____________________________

Name:

Title:

Date: ________ __, 20[ ]

I-2

 

EXHIBIT I-3

FORM OF U.S. TAX CERTIFICATE

(For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

     Reference is hereby made to the Credit Agreement dated as of [ ] (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among [ ], and each lender from time
to time party thereto.

     Pursuant to the provisions of Section 2.18 of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record and beneficial owner of the participation in respect of
which it is providing this certificate, (ii) it is not a bank within the meaning of Section
881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the
meaning of Section 881(c)(3)(B) of the Code, (iv) it is not a controlled foreign corporation
related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) the interest
payments in question are not effectively connected with the undersigned’s conduct of a U.S. trade
or business.

     The undersigned has furnished its participating Lender with a certificate of its non- U.S.
person status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if
the information provided on this certificate changes, the undersigned shall promptly so inform

such Lender in writing and (2) the undersigned shall have at all times furnished such Lender with a
properly completed and currently effective certificate in either the calendar year in which each
payment is to be made to the undersigned, or in either of the two calendar years preceding such
payments.

     Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

[NAME OF LENDER]

By:____________________________

Name:

Title:

Date: ________ __, 20[ ]

I-3

 

EXHIBIT I-4

FORM OF U.S. TAX CERTIFICATE

(For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

     Reference is hereby made to the Credit Agreement dated as of [ ] (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among [ ], and each lender from time
to time party thereto.

     Pursuant to the provisions of Section 2.18 of the Credit Agreement, the undersigned hereby
certifies that (i) it is the sole record owner of the participation in respect of which it is
providing this certificate, (ii) its partners/members are the sole beneficial owners of such
participation, (iii) with respect such participation, neither the undersigned nor any of its
partners/members is a bank extending credit pursuant to a loan agreement entered into in the
ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,
(iv) none of its partners/members is a ten percent shareholder of the Borrower within the meaning
of Section 881(c)(3)(B) of the Code, (v) none of its partners/members is a controlled foreign
corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the
interest payments in question are not effectively connected with the undersigned’s or its
partners/members’ conduct of a U.S. trade or business.

     The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by an
IRS Form W-8BEN from each of its partners/members claiming the portfolio interest exemption. By
executing this certificate, the undersigned agrees that (1) if the information provided on this
certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned
shall have at all times furnished such Lender with a properly completed and

currently effective certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments.

     Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

[NAME OF PARTICIPANT]

By:____________________________

Name:

Title:

Date: ________ __, 20[ ]

I-4exv10w27

CONFIDENTIAL
MATERIAL OMITTED AND FILED

SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS DENOTE SUCH OMISSIONS.

Exhibit 10.27

EXCLUSIVE LICENSE AGREEMENT

BY AND BETWEEN

TESARO, INC.

AND

OPKO HEALTH, INC.

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	Article I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Article II LICENSE GRANT
	 	 	8	 
	 
	 	 	 	 
	2.1 License Grant
	 	 	8	 
	2.2 Sublicenses
	 	 	8	 
	2.3 Covenant Not to Sue
	 	 	9	 
	2.4 Responsibility; Decision-making
	 	 	9	 
	2.5 Diligence
	 	 	9	 
	2.6 Joint Steering Committee
	 	 	10	 
	2.7 Latin America
	 	 	10	 
	 
	 	 	 	 
	Article III TECHNOLOGY TRANSFER AND TRANSITION ACTIVITIES
	 	 	11	 
	 
	 	 	 	 
	3.1 Know-how Transfer
	 	 	11	 
	3.2 Cooperation
	 	 	11	 
	3.3 Regulatory Transition
	 	 	11	 
	3.4 Supply of Material
	 	 	12	 
	3.5 Costs
	 	 	12	 
	 
	 	 	 	 
	Article IV FINANCIAL PROVISIONS
	 	 	12	 
	 
	 	 	 	 
	4.1 License Fee
	 	 	12	 
	4.2 Intentionally Left Blank
	 	 	12	 
	4.3 Milestones Payments by TESARO
	 	 	12	 
	4.4 Royalty Payments by TESARO
	 	 	13	 
	4.5 Japan
	 	 	15	 
	4.6 Royalty and Income Sharing Term
	 	 	15	 
	4.7 Reduction for No Valid Claim
	 	 	15	 
	4.8 Third Party Payments
	 	 	16	 
	4.9 Payments; Reports
	 	 	16	 
	4.10 Taxes
	 	 	16	 
	4.11 United States Dollars
	 	 	17	 
	4.12 Currency Conversion
	 	 	17	 
	4.13 Blocked Payments
	 	 	17	 
	4.14 Late Payments
	 	 	17	 
	4.15 Records and Audits
	 	 	17	 
	 
	 	 	 	 
	Article V INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION AND RELATED
MATTERS
	 	 	18	 
	 
	 	 	 	 
	5.1 Prosecution and Maintenance of Patent Rights
	 	 	18	 
	5.2 Patent Term Extensions
	 	 	19	 
	5.3 Third Party Infringement
	 	 	19	 
	5.4 Patent Invalidity Claim
	 	 	20	 
	5.5 Patent Marking
	 	 	21	 
	 
	 	 	 	 
	Article VI CONFIDENTIALITY
	 	 	21	 
	 
	 	 	 	 
	6.1 Confidential Information
	 	 	21	 

i

 

	 	 	 	 	 
	 	 	Page	 
	6.2 Permitted Disclosures
	 	 	22	 
	6.3 Limitation on OPKO Disclosure of OPKO Know-how
	 	 	22	 
	6.4 Publicity
	 	 	22	 
	6.5 Publications
	 	 	23	 
	6.6 Return of Confidential Information
	 	 	23	 
	 
	 	 	 	 
	Article VII REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS
	 	 	23	 
	 
	 	 	 	 
	7.1 Mutual Representations
	 	 	23	 
	7.2 OPKO’s Representations and Warranties
	 	 	24	 
	7.3 No Warranty
	 	 	25	 
	 
	 	 	 	 
	Article VII. INDEMNIFICATION
	 	 	25	 
	 
	 	 	 	 
	8.1 Indemnification by TESARO
	 	 	25	 
	8.2 Indemnification by OPKO
	 	 	26	 
	8.3 Indemnification Procedure
	 	 	26	 
	8.4 Limitation of Liability
	 	 	26	 
	8.5 Insurance
	 	 	27	 
	 
	 	 	 	 
	Article IX TERM AND TERMINATION
	 	 	27	 
	 
	 	 	 	 
	9.1 Term
	 	 	27	 
	9.2 Termination for Convenience
	 	 	27	 
	9.3 Termination for Cause
	 	 	27	 
	9.4 OPKO Termination
	 	 	27	 
	9.5 Effect of Termination
	 	 	27	 
	9.6 Survival
	 	 	29	 
	 
	 	 	 	 
	Article X DISPUTE RESOLUTION
	 	 	29	 
	 
	 	 	 	 
	10.1 Continuance of Rights and Obligations During Pendency of
Dispute Resolution
	 	 	29	 
	10.2 Referral of Unresolved Matters to Senior Executives
	 	 	29	 
	10.3 Arbitration
	 	 	29	 
	10.4 Equitable Relief
	 	 	30	 
	 
	 	 	 	 
	Article XI MISCELLANEOUS
	 	 	30	 
	 
	 	 	 	 
	11.1 Governing Law and Jurisdiction
	 	 	30	 
	11.2 Force Majeure
	 	 	30	 
	11.3 Further Assurances
	 	 	31	 
	11.4 Notices
	 	 	31	 
	11.5 Assignment
	 	 	31	 
	11.6 Affiliate Performance
	 	 	32	 
	11.7 Amendment
	 	 	32	 
	11.8 Entire Agreement
	 	 	32	 
	11.9 No Benefit to Third Parties
	 	 	32	 
	11.10 Waiver
	 	 	32	 
	11.11 No Implied Licenses
	 	 	32	 
	11.12 Relationship of the Parties
	 	 	32	 
	11.13 Severability
	 	 	32	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	11.14 Interpretation
	 	 	33	 
	11.15 Counterparts
	 	 	34	 
	 
	 	 	 	 
	Exhibit A — Description of SCH 619734
	 	 	 	 
	Exhibit B — Description of SCH 900978
	 	 	 	 
	Exhibit C — Existing OPKO Patent Rights
	 	 	 	 
	Exhibit D — Technology Transfer Plan
	 	 	 	 
	Exhibit E — Form of Press Release
	 	 	 	 
	Exhibit F — Third Party Agreements
	 	 	 	 

iii

 

EXCLUSIVE LICENSE AGREEMENT

     This Exclusive License Agreement, made this 10th day of December, 2010 (the “Effective Date”),
is by and between TESARO, Inc., a Delaware company, with principal offices located at 309 Waverley
Oaks Rd., Suite 101, Waltham, MA 02452 (“TESARO”) and OPKO Health, Inc., a Delaware corporation,
with principal offices located at 4400 Biscayne Blvd., Miami, FL 33137 (“OPKO”). Each of TESARO and
OPKO may be referred to, individually, as a “Party”, and, collectively, as the “Parties”.

RECITALS 

     WHEREAS, OPKO owns or controls certain patent rights and know-how related to the neurokinin-l
(NK-l) receptor antagonists, SCH 619734 (Rolapitant) and SCH 900978;

     WHEREAS, TESARO is interested in obtaining an exclusive license under such patent rights and
to such know-how to develop and commercialize pharmaceutical products incorporating either or both
of the foregoing compounds, and OPKO is willing to grant TESARO such a license, in each case on the
terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained in this
Agreement, OPKO and TESARO, intending to be legally bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

     When used in this Agreement, each of the following capitalized terms, whether used in the
singular or plural, shall have the meaning set forth in this Article I.

     1.1. “Affiliate” of an entity means any person or entity which, directly or
indirectly, controls, is controlled by or is under common control with such entity. For the
purposes of this definition, “control” refers to any of the following: (i) direct or
indirect ownership of fifty percent (50%) or more of the voting securities entitled to vote for the
election of directors in the case of a corporation, or of fifty percent (50%) or more of the equity
interest with the power to direct management in the case of any other type of legal entity; (ii)
status as a general partner in any partnership; or (iii) any other arrangement where a person or
entity possesses, directly or indirectly, the power to direct the management or policies of an
entity, whether through ownership of voting securities, by contract or otherwise. Notwithstanding
the foregoing, the term “Affiliate” with respect to TESARO shall not include New Enterprise
Associates.

     1.2. “Agreement” means this Exclusive License Agreement, including any and all
exhibits, schedules, appendices and other addenda to it and as it may be amended from time to time
in accordance with the provisions of this document.

     1.3. “API” means the active pharmaceutical ingredient contained in Licensed Product.

     1.4. “API Cost” means the Cost of Goods of API.

     1.5. “Asset Purchase Agreement” means that certain Asset Purchase Agreement between
OPKO and Schering Corporation (now Merck & Co., Inc.) dated as of October 12, 2009, as amended by
letter agreement dated June 29, 2010, under which OPKO purchased certain assets related to the
Compounds.

     1.6. “Combination Product” means any pharmaceutical product containing both a Licensed
Product component and one or more other active pharmaceutical ingredients or other significant
components.

1

 

     1.7. “Commercially Reasonable Efforts” means the level of efforts and resources,
including financial resources, at least equal to those normally used by a company to conduct the
relevant activity, including, in the case of research, development or commercialization, the level
of effort and resources at least equal to those normally used by such a company to research,
develop, manufacture or commercialize, as the case may be, a product owned by such company or to
which it has rights, which product is at a similar stage in its development or product life and is
of a similar market and profitability potential to Licensed Product, taking into account all
relevant factors including the patent and other proprietary position of the product, product
labeling or anticipated labeling, market potential, financial return, medical and clinical
considerations, regulatory environment and competitive market conditions, and other technical,
legal, scientific, medical or commercial factors that such a company would deem to be relevant.

     1.8. “Compounds” means SCH 619734 (Rolapitant) and SCH 900978.

     1.9. “Confidential Information” means any and all information, data and materials of a
confidential or proprietary nature, which are provided by or on behalf of one Party or any of its
Affiliates to the other Party or any of its Affiliates in connection with this Agreement.

     1.10. “Control” or “Controlled”, other than for purposes of Section 1.1, means the
possession of the right to grant licenses or sublicenses or to disclose proprietary or trade secret
information without violating the terms of any agreement or other arrangement with a Third Party
and without misappropriating or infringing the proprietary or trade secret information of a Third
Party.

     1.11. “Cost of Goods” means, with respect to API or Licensed Product, as the case may
be, the aggregate of costs of TESARO or any of its Affiliates or Sublicensees to manufacture,
package, label and release such API or Licensed Product, calculated as follows: (i) to the extent
that the API or Licensed Product is manufactured, packaged, labeled or released by TESARO or any of
its Affiliates or Sublicensees, their actual direct material costs and direct labor costs plus
manufacturing overhead, directly and exclusively attributable to such API or Licensed Product
(including the API incorporated into such Licensed Product), all calculated in accordance with
GAAP; or (ii) to the extent that API or Licensed Product is manufactured, packaged, labeled or
released by a Third Party, the actual amounts paid by TESARO or any of its Affiliates or
Sublicensees to such Third Party for such activities performed on a specified quantity of such API
or Licensed Product plus the costs of any materials (including API and raw materials) provided by
TESARO or any of its Affiliates or Sublicensees to such Third Party for such activities, and any
manufacturing overhead, quality control and distribution costs incurred by TESARO or any of its
Affiliates or Sublicensees with respect to such materials provided or such Licensed Product, as
calculated in accordance with clause (i) of this Section 1.11.

     1.12. “Cover”, “Covering” or “Covered” means, with respect to a Patent Right and
invention, that, in the absence of ownership of, or a license under, such Patent Right, the
practice of such invention would infringe a Valid Claim of such Patent Right (including in the case
of a Patent Right that is a patent application, a Valid Claim of such patent application as if such
patent application were an issued patent).

     1.13. “EMA” means the European Medicines Agency or any successor agency.

     1.14. “EU” means the countries of the European Union, as it is constituted as of the
Effective Date and as it may be expanded from time to time.

     1.15. “FDA” means the United States Food and Drug Administration or any successor
agency thereto.

     1.16. “Field” means with respect to SCH 619734 (Rolapitant) all therapeutic,
prophylactic, palliative and diagnostic uses in humans, and means, with respect to SCH 900978,
treatment of nausea or

2

 

vomiting of any cause; (ii) treatment of disease or treatment of symptoms or side effects of
disease in oncology indications; (iii) treatment of side effects of oncology treatments or
therapies; and (iv) any other supportive care indications in oncology.

     1.17. “First Commercial Sale”, as to a particular country, means the first commercial
sale of a Licensed Product by TESARO or any of its Affiliates or Sublicensees to a Third Party in
such country after approval of the NDA, or if approval of an NDA is not required in such country,
then following receipt of Marketing Approval required to market such Licensed Product in such
country.

     1.18. “GAAP” means United States generally accepted accounting principles applied on a
consistent basis, or any other accounting principles generally accepted for public companies in the
United States such as International Financial Reporting Standards (“IFRS”). Unless otherwise
defined or stated, financial terms shall be calculated under GAAP.

     1.19. “IND” means an Investigational New Drug Application filed with FDA or a similar
application filed with an applicable Regulatory Authority outside of the United States such as a
clinical trial application (CTA) or a clinical trial exemption (CTX).

     1.20.
“Japan Income” **** received from a Sublicensee
with respect to development or commercialization of Licensed Product
in Japan, less applicable **** of
Licensed Product in Japan, provided that, if a royalty payment made
by such Sublicensee to TESARO
or any of its Affiliates includes the purchase price of a Licensed Product, then only **** of such Licensed Product will be included as Japan Income. For the
sake of clarity, Japan Income will not include any of the following amounts received by TESARO or
any of its Affiliates from a Sublicensee: (i) ****, which is **** or any of its Affiliates for
expenditures actually incurred by **** or such Affiliate and which are directly attributable to
development and commercialization of Licensed Product ****; (iii) reimbursement for **** or any of
its Affiliates; and (iv) amounts paid by a **** or any of its Affiliates as **** actually incurred
by TESARO or such Affiliate and which are directly attributable to ****, including reimbursement of
****, and the costs of maintaining the ****.

     1.21. “Japan Income Sharing Term” has the meaning set forth in Section 4.6(b).

     1.22. “Know-how” means all biological materials and other tangible materials,
inventions, practices, methods, protocols, formulas, knowledge, know-how, trade secrets, processes,
procedures, specifications, assays, skills, experience, techniques, data and results of
experimentation and testing, including pharmacological, toxicological, safety, stability and
pre-clinical and clinical test data and analytical and quality control data, patentable or
otherwise.

     1.23. “Licensed Product” means any product comprising, incorporating or containing any
Compound, or an alternate form of any Compound, including, but not limited to, a pharmaceutically
acceptable salt, polymorph, crystal form, prodrug, or solvate of any Compound to the extent such
alternate form is claimed in the OPKO Patent Rights.

     1.24. “Major EU Markets” means the United Kingdom, France, Italy, Spain and Germany.

     1.25. “Marketing Approval” means any approval, including price approval, registration,
license or authorization from any Regulatory Authority required to market and sell a Licensed
Product in a jurisdiction and shall include an approval, registration, license or authorization
granted in connection with an NDA.

3

 

     1.26. “NDA” means a New Drug Application, Biologics License Application or equivalent
submission filed with the FDA in connection with seeking Marketing Approval of a Licensed Product,
or an equivalent application filed with any equivalent regulatory agency or governmental authority
in any jurisdiction other than the United States.

     1.27. “Net Sales” means the gross amount invoiced on sales of Licensed Product in the
Territory (not including sales of Licensed Product by a Sublicensee in Japan) by TESARO, its
Affiliates or Sublicensees to any Third Party, less the following deductions with respect to the
sale of such Licensed Product:

               (i) normal trade, cash and quantity discounts and other customary discounts actually given to
customers in the ordinary course of business;

               (ii) rebates, credits and allowances given by reason of rejections, returns, damaged or
defective product or recalls;

               (iii) government-mandated rebates and any other compulsory payments, credits, adjustments and
rebates actually paid or deducted;

               (iv) price adjustments, allowances, credits, chargeback payments, discounts, rebates, fees,
reimbursements or similar payments granted to managed care organizations, group purchasing
organizations or other buying groups, pharmacy benefit management companies, health maintenance
organizations and any other providers of health insurance coverage, health care organizations or
other health care institutions (including hospitals), health care administrators or patient
assistance or other similar programs, or to federal, state/provincial, local and other governments,
including their agencies, or to wholesalers, distributors or other trade customers;

               (v) reasonable and customary freight, shipping, insurance and other transportation expenses,
if actually borne by such TESARO or its Affiliates or Sublicensees without reimbursement from any
Third Party;

               (vi) sales, value-added, excise taxes, tariffs and duties, and other taxes and government
charges directly related to the sale, delivery or use of Licensed Product (but not including taxes
assessed directly against the income derived from such sale) net of any credits or allowances
received by TESARO or its Affiliates or Sublicensees with respect to such taxes or charges;

               (vii) amounts previously included in Net Sales of Licensed Product that are written off as
uncollectible after reasonable collection efforts, in accordance with standard practices of the
applicable party; and

               (viii) any item, substantially similar in character or substance to any of the foregoing,
calculated in accordance with GAAP consistently applied and customary in the pharmaceutical
industry to be deducted in the definition of net sales in a license agreement of this type.

Notwithstanding anything in this Agreement to the contrary, the transfer of a Licensed Product
between or among TESARO, its Affiliates and Sublicensees will not be considered a sale.

Net Sales will include the cash consideration received on a sale and the fair market value of all
non-cash consideration.

Disposition of Licensed Product for, or use of the Licensed Product in, clinical trials or other
scientific testing, as free samples, or under compassionate use, patient assistance, or test
marketing programs or other similar programs or studies where a Licensed Product is supplied
without charge shall not result in

4

 

any Net Sales however if TESARO or any of its Affiliates or Sublicensees charges for such Licensed
Product, the amount billed will be included in the calculation of Net Sales.

Net Sales will be determined from books and records maintained in accordance with GAAP,
consistently applied throughout the organization and across all products of the entity whose sales
of Licensed Product are giving rise to Net Sales.

In the event a Licensed Product is sold in the form of a Combination Product, then the Net Sales
for any such Combination Product shall be determined by multiplying the Net Sales of the
Combination Product during the applicable royalty reporting period, by the fraction, A/(A+B), where
A is the weighted (by sales volume) average sale price of the Licensed Product component when sold
separately in finished form in the country in which the Combination Product is sold and B is the
weighted (by sales volume) average sale price of the other active pharmaceutical ingredients or
significant components included in the Combination Product when sold separately in finished form in
the country in which the Combination Product is sold, in each case during the applicable royalty
reporting period or, if sales of both the Licensed Product component and the other active
pharmaceutical ingredients or significant components did not occur in such period, then in the most
recent royalty reporting period during the preceding twelve (12) months in which sales of both
occurred, if any. In the event that such average sale price cannot be determined for both the
Licensed Product and all other active pharmaceutical ingredients or significant components included
in the Combination Product, then the Parties will in good faith discuss and agree on a pro-rata
allocation of the Net Sales that reflects the Licensed Product’s contribution to the Combination
Product on an equitable basis. TESARO covenants that neither it nor any of its Affiliates or
Sublicensees will intentionally manipulate the fraction A/(A+B) to avoid or reduce royalty payments
or obligations that would otherwise be due for sales of Licensed Product in combination form or
otherwise

     1.28. “OPKO Patent Rights” means (i) any and all patents and patent applications owned
or otherwise Controlled by OPKO or any of its Affiliates on the Effective Date or at any time
during the Term anywhere in the Territory that Cover OPKO Know-how or that otherwise Cover the
research, formulation, development, manufacture, import, marketing, sale or use of Licensed Product
in the Field; and (ii) any and all extensions or restorations of the foregoing patents or patent
applications by existing or future extension or restoration mechanisms, including revalidations,
reissues, re-examinations and supplementary protection certificates and the like. OPKO Patent
Rights includes the patents and patent applications listed in Exhibit C.

     1.29. “OPKO Japan Share” has the meaning set forth in Section 4.5, subject to
adjustment as set forth in Section 4.7.

     1.30. “OPKO Know-how” means any Know-how owned or otherwise Controlled by OPKO or any
of its Affiliates as of the Effective Date or any time during the Term that (i) is incorporated
into Licensed Product or the manufacturing process for Licensed Product; (ii) was used or generated
in the development, manufacture or use of Licensed Product; or (iii) is otherwise reasonably
necessary or useful to the research, formulation, development (including filing for and obtaining
Marketing Approval), manufacture, import, marketing, sale or use of Licensed Product in the Field.

     1.31. “Patent Rights” means patents and patent applications and all substitutions,
divisions, continuations, continuations-in-part, reissues, reexaminations, supplemental protection
certificates and extensions and the like thereof, and all counterparts thereof in any country.

     1.32. “Regulatory Authority” means any federal, national, multinational, state,
county, city, provincial, or local regulatory agency, department, bureau or other governmental
entity with authority over the marketing, commercialization, manufacture or sale of a
pharmaceutical product in the Territory, including the FDA in the United States and the EMA in the
EU.

5

 

     1.33. “Royalty Term” has the meaning set forth in Section 4.6 (a).

     1.34. “SCH 619734” (Rolapitant) means the compound described in Exhibit A.

     1.35. “SCH 900978” means the compound described in Exhibit B.

     1.36. “Sublicensee” means a Third Party to whom TESARO or any of its Affiliates or
another Sublicensee grants an express sublicense under the OPKO Patent Rights and OPKO Know-how to
develop, manufacture, commercialize or use Licensed Product in the Field, provided that the term
“Sublicensee” does not include any wholesaler or third party distributor who re-sells a Licensed
Product purchased from TESARO or any of its Affiliates or Sublicensees in final finished form (but
not necessarily in final packaged, and labeled form), provided that OPKO is paid the royalty
specified in Section 4.4 on the purchase price of such Licensed Product paid by such wholesaler or
distributor to TESARO or any of its Affiliates or Sublicensees.

     1.37. “Technology Transfer Plan” means the plan for transfer to TESARO of OPKO
Know-how attached to this Agreement as Exhibit D.

1.38. “Term” means the term of this Agreement determined in accordance with Section
9.1.

1.39. “Territory” means worldwide.

1.40. “TESARO Improvement” means any Know-how owned or otherwise Controlled by
TESARO or any of its Affiliates that constitutes an improvement of the OPKO Know-how
developed during the Term and is incorporated into the Licensed Product by TESARO or any of
its Affiliates.

1.41. “TESARO Improvement Patent Rights” means Patent Rights owned or Controlled by
TESARO or any of its Affiliates Covering any TESARO Improvement.

1.42. “Third Party” means any person other than a Party or any of its Affiliates or
their respective employees.

1.43. “Third Party Agreements” has the meaning set forth in Section 7.2(k).

1.44. “Third Party Payments” means all **** under licenses to intellectual property
or to acquire intellectual property that is necessary for the development, manufacture,
import, sale or use of Licensed Product in the Field. For purposes of this definition, the
term “necessary” shall mean that, in the reasonable determination ****, if the relevant
Patent Right of the Third Party were to be found to be valid, there would be **** that the
manufacture, use or sale of Licensed Product would be found to infringe such Patent Right,
provided that nothing in the foregoing requires a court or other legal determination of
validity or infringement.

1.45. “United States” or “U.S.” means the United States of America and its
territories and possessions.

1.46. “Valid Claim” means (i) a claim of an issued and unexpired patent that has not
been revoked or held unenforceable or invalid by a decision of a court or other governmental
agency of competent jurisdiction from which no appeal can be taken or with respect to which
an appeal is not taken within the time allowed for appeal, and that has not been disclaimed
or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise or been
dedicated to the public, and (ii) a claim in a pending patent application that is being
prosecuted and that has not been abandoned, disclaimed, allowed to lapse or finally
determined to be unallowable by the

6

 

applicable governmental authority in a decision from which no appeal can be taken or from
which no appeal is taken within the time allowed for appeal.

ARTICLE II

LICENSE GRANT

     2.1. License Grant. Subject to the terms and conditions of this Agreement, OPKO and
its Affiliates grant to TESARO an exclusive license (or sublicense, as the case may be) under the
OPKO Patent Rights and the OPKO Know-how, in each case with the right to grant sublicenses, to the
extent provided in Section 2.2, to research, develop, make, have made, use, import, export, market,
offer for sale, sell and have sold, Licensed Product in the Territory within the applicable Field.

     2.2. Sublicenses.

          (a) Sublicensing. The rights granted to TESARO by OPKO under Section 2.1, may be
extended to an Affiliate or sublicensed, in whole or in part, to a Third Party (through multiple
levels of sublicensing); provided, that any sublicense that includes commercialization rights will
require the prior consent of OPKO which such consent OPKO shall not unreasonably withhold,
condition or delay. Notwithstanding anything in this Agreement to the contrary, OPKO shall be
deemed to have granted its consent to any sublicense under this Section if OPKO has not provided
TESARO with written notice of OPKO’s reasonable objection to the sublicense within **** business
days of receipt of a written request for such consent from TESARO, along with an unredacted copy of
the relevant term sheet for an agreement which transfers rights granted hereunder so that OPKO may
consider granting consent. In addition, TESARO will, promptly after signature, provide OPKO with an
unredacted copy of each agreement with a Sublicensee executed by TESARO or any of its Affiliates.
Permitted Sublicensees may also extend the rights granted under Section 2.1 to any of their
Affiliates.

          (b) Performance by Sublicensees. TESARO will be fully responsible for performance by
each Sublicensee of its obligations under this Agreement. Each sublicense granted by TESARO
pursuant to this Section 2.2 will contain terms and conditions consistent with those sections of
this Agreement applicable to Sublicensees. Each sublicense agreement will contain the following
provisions: (i) a requirement that any Sublicensee selling Licensed Product submit applicable sales
or other reports to TESARO to the extent necessary or relevant to the reports required to be made
or records required to be maintained under this Agreement; (ii) an audit requirement as to those
Sublicensees selling Licensed Product consistent with that set forth in Section 4.15; and (iii) a
requirement that such Sublicensee comply with the confidentiality provisions and restrictions on
use of Confidential Information consistent with Article VI with respect to Confidential Information
of OPKO. If TESARO becomes aware of a material breach by a Sublicensee of the rights granted to
TESARO under Section 2.1, TESARO will promptly notify OPKO of the particulars of the same, and will
use Commercially Reasonable Efforts to enforce the terms of such sublicense.

     2.3. Covenant Not to Sue. At the request of TESARO, OPKO will use Commercially
Reasonable Efforts to enforce the covenant not to sue obligations of Merck & Co., Ltd. under
Section 7.7 of the Asset Purchase Agreement with respect to the activities of TESARO and its
Affiliates and Sublicensees under this Agreement; provided, that TESARO will promptly reimburse all
out-of-pocket expenses (including reasonable attorneys’ fees and expenses) incurred by OPKO in
connection with such requested efforts.

     2.4. Responsibility; Decision-making. During the Term, **** will, including through
**** Affiliates and Sublicensees, have **** responsibility for and **** decision-making authority
with respect to, the research, development, manufacture, marketing, sale and use of Licensed
Product in the Field, and except as otherwise expressly set forth in this Agreement, will be
responsible for **** associated with such activities during the Term.

7

 

     2.5. Diligence. TESARO will use Commercially Reasonable Efforts during the Term to
develop and obtain Marketing Approval for a Licensed Product in the United States and in each Major
EU Market, and to commercialize such Licensed Product in the United States and each Major EU Market
if the relevant Marketing Approval is obtained. TESARO shall keep OPKO informed as to TESARO’s
progress in these efforts. In addition, TESARO will use Commercially Reasonable Efforts to secure
any data and market exclusivity, including New Chemical Entity exclusivity, for a Licensed Product
for which Marketing Approval is obtained to the extent available from the applicable Regulatory
Authorities. TESARO agrees to register this Agreement with any foreign governmental agency, which
requires such registration and where the failure to so register would have a material adverse
impact on commercialization of Licensed Product in a major market, and **** in connection
therewith. TESARO shall not be relieved of any of its obligations under this Agreement by any
failure to register this Agreement in any country, and, specifically, shall not be relieved of its
obligation to make any payment due to OPKO where such payment is blocked due to any failure to
register this Agreement.

     2.6. Joint Steering Committee.

          (a) Formation. Within **** days after the Effective Date, the parties will form a
committee (the “Joint Steering Committee”) comprising at least **** representatives from each
party.

          (b) Responsibilities. The Joint Steering Committee will be responsible for (i)
reviewing the status and progress of efforts related to the development, manufacture and
registration of the Licensed Product; and (ii) discussing other matters related to this Agreement
referred to it by agreement of the Parties. Each Party’s representatives to the Joint Steering
Committee shall communicate with one another as necessary to perform the Parties’ respective
obligations under this Agreement.

          (c) Meetings. The Joint Steering Committee shall hold its first meeting in person
within forty-five (45) days after the Effective Date. Thereafter, the Joint Steering Committee will
meet as often as necessary either in person or by telephone at mutually acceptable times and
locations. Either party may call a Joint Steering Committee meeting upon reasonable written notice,
but not more than twice each year, unless both Parties mutually agree.

          (d) Development Plan. The parties agree that **** shall prepare a written development
plan (the “Development Plan”) for the development of the Licensed Product within forty-five (45)
days after the Effective Date. The Development Plan shall include schedules and milestones for the
development activities of TESARO. **** may amend the Development Plan at any time ****. **** shall
present the Development Plan and any material amendments to the Joint Steering Committee for
review.

     2.7. Latin America. OPKO will have the option to become the exclusive distributor of
Licensed Product in Latin America on terms to be mutually agreed upon by the Parties (the
“Latin America Option.” To exercise its Latin America Option, OPKO must give written notice
of such exercise to TESARO within **** after **** for Licensed Product in the **** . In the event
OPKO does not give notice of its exercise of the Latin America Option within the foregoing time
period or the Parties are unable, despite good faith negotiation, to agree on mutually acceptable
terms of a distribution agreement, OPKO will have no further rights under this Section, and TESARO
will be free to distribute Licensed Product in Latin America itself or through an Affiliate,
Sublicensee or a Third Party distributor. Notwithstanding the foregoing, in the event the Parties
are unable, despite good faith negotiation, to agree on mutually acceptable terms of a distribution
Agreement, TESARO agrees that it will not enter into a final agreement with any Third Party
regarding the rights to distribute Licensed Product in all of or any territory within Latin America
(a “Latin American Opportunity”) without first giving OPKO a good faith opportunity to
agree to such Latin American Opportunity on material terms substantially similar to those offered
(or intended to be offered) by TESARO to the Third Party (or offered by the Third Party to

8

 

TESARO) (“Right to Match”). OPKO’s Right to Match with regard to Latin American
Opportunities operates as follows:

          (a) When a Latin American Opportunity arises, TESARO shall give OPKO prompt written notice of
the material financial, intellectual property, term and termination, indemnification, governing law
and other material terms of the Latin American Opportunity. Within **** after receiving TESARO’s
written notice under this Subsection 2.7(a), OPKO shall respond in writing to TESARO regarding
whether it will substantially match or decline to substantially match the material terms of
TESARO’s proposed agreement.

          (b) If, in its response, OPKO indicates its interest in substantially matching the material
terms of TESARO’s proposed agreement, the Parties shall negotiate in good faith a definitive
agreement (with material terms substantially similar to those set forth in TESARO’s proposed
agreement) for a period of up to **** after TESARO received OPKO’s response. If, after such time, a
final agreement cannot be reached and the Parties do not mutually extend the negotiation period,
TESARO shall be free to execute its proposed agreement with the Third Party on material terms no
more favorable to the Third Party than the material terms presented to OPKO under subsection (a)
above were to OPKO. However, if such material terms are more favorable to the Third Party, then
TESARO must offer, and OPKO has a Right to Match, such terms in accordance with the procedures and
restrictions contained in this Section 2.7.

ARTICLE III

TECHNOLOGY TRANSFER AND TRANSITION ACTIVITIES

     3.1.
Know-how Transfer. OPKO agrees to transfer to TESARO the OPKO Know-how specified
in the Technology Transfer Plan in accordance with the time-lines and other requirements set forth
in such plan, and to transfer such other OPKO Know-how, as TESARO may from time to time reasonably
request during the Term, promptly after such request. In addition, OPKO will, as part of transfer
of OPKO Know-how, assign to TESARO those Third Party Agreements as to which TESARO specifically
requests assignment and which by their terms may be assigned. To the extent the consent of any
Third Party is required to assign a Third Party Agreement to TESARO, OPKO will use Commercially
Reasonable Efforts to obtain such consent. In the event a Third Party Agreement is not assigned to
TESARO, OPKO will, as set forth in the Technology Transfer Plan, or as otherwise requested by
TESARO, use Commercially Reasonable Efforts to obtain any information or other benefits under such
agreement related to access to OPKO Know-how as would be available to OPKO.

     3.2. Cooperation. OPKO shall make its personnel reasonably available to TESARO to
respond to questions related to the OPKO Know-how, and to provide such ongoing support and
assistance as TESARO may reasonably request in the transition of development and manufacturing
responsibility for Licensed Products to TESARO. In connection with the foregoing, at the request of
TESARO, OPKO will seek the assistance of Merck & Co., Ltd. to the extent such support continues to
be available under Section 2.5 of the Asset Purchase Agreement.

     3.3. Regulatory Transition. Within **** after the Effective Date, or as otherwise
mutually agreed, the Parties will file with applicable Regulatory Authorities such documentation as
may be required to transfer any IND to TESARO, and the Parties will use Commercially Reasonable
Efforts to take such actions as any such Regulatory Authority may request to effect any such
transfer. Prior to transfer of the IND, OPKO will continue to perform such obligations as are
required under applicable law with respect to an IND holder, but under the direction of TESARO.

     3.4.
Supply of Material. OPKO will, **** transfer to TESARO in accordance with the Technology
Transfer Plan all quantities of API and Licensed Product in OPKO’s possession or control. To the
extent such API or Licensed Product is identified as GMP-grade materials in the Technology Transfer
Plan,

9

 

OPKO represents that (i) since OPKO’s acquisition of such materials, OPKO has handled and
stored such materials in accordance with current Good Manufacturing Practices as defined in the
U.S. (“GMP”), and (ii) nothing has come to OPKO’s attention which leads it to believe that
any such material has not been manufactured and stored in accordance with GMP, that it would not
conform in all material respects to the applicable specifications or would not be fit for use in
clinical trials pursuant to FDA guidelines and requirements. OPKO will provide copies of batch
records and certificates of compliance in its possession with respect to such material. In
addition, OPKO will, at the request of TESARO, require Merck & Co., Inc. to deliver the Hold Back
API, as defined in the Asset Purchase Agreement, to TESARO or its designee, and to supply addition
quantities of API to the extent consistent with Merck & Co., Inc.’s obligation under Section
7.11(b) of the Asset Purchase Agreement on terms to be approved by TESARO.

     3.5. Costs. Each Party **** associated with technology transfer activities to be
provided under this Section. To the extent any technology transfer activities to be provided under
this Section require **** bear the costs of such external resources, provided that such activities
and costs are expressly set forth in the Technology Transfer Plan or are otherwise approved in
writing in advance by ****.

ARTICLE IV

FINANCIAL PROVISIONS

     4.1. License Fee. Within ten (10) days of the Effective Date, TESARO will pay to OPKO a
non-creditable, non-refundable license fee of $6,000,000, as compensation for past and future
research and development expenses, patent prosecution and maintenance fees, and for exclusive
rights to the Licensed Product in the U.S.

     4.2. Intentionally Left Blank

     4.3. Milestones Payments by TESARO. Subject to the terms and conditions of this
Agreement, TESARO will pay OPKO a milestone payment upon the first occurrence of each of the
following events, no later than thirty (30) days after the occurrence of the event:

	 	 	 	 	 
	Event Milestone	 	Event Milestone Payment	 
	(i) Acceptance by the FDA of the first NDA for
Marketing Approval of Licensed Product in the
United States
	 	$	****,000,000	 
	(ii) First Commercial Sale of Licensed Product in
the U.S.
	 	$	****,000,000	 

	 	 	 	 	 
	Event Milestone	 	Event Milestone Payment	 
	(iii) First Commercial Sale of Licensed Product in
the EU
	 	$	****,000,000	 

Each of the above milestone payments will be payable only upon the first occurrence of the
applicable event, regardless of how many times the event is ultimately achieved.

In addition, TESARO will pay to OPKO the following commercial milestone payments upon the first
achievement of the corresponding event:

10

 

	 	 	 	 	 

	First achievement of calendar year Net Sales in excess of
$**** million
	 	$	****,000,000	 
	First achievement of calendar year Net Sales in excess of
$**** million
	 	$	****,000,000	 
	First achievement of calendar year Net Sales in excess of
$**** million
	 	$	****,000,000	 

     4.4. Royalty Payments by TESARO. Subject to the adjustment, if any, to be made under
Sections 4.7 and 4.8, TESARO will pay to OPKO royalties on Net Sales of Licensed Product in the
Field in the Territory (other than sales of Licensed Product by a Sublicensee in Japan) by TESARO
and its Affiliates and Sublicensees, calculated using the following royalty rates:

          (a) U.S. and EU. For the sale of Licensed Product in the U.S. and the EU, the royalty rate
will be the Tier One Royalty Rate or the Tier Two Royalty Rate, as set forth below, depending on
the applicable ****. The Tier One royalty rates will apply if the average **** of Licensed Product
sold by TESARO and its Affiliates and Sublicensees during the preceding calendar year was equal to
or greater than ****. The Tier Two royalty rates will apply if the average **** of Licensed Product
sold by TESARO and its Affiliates and Sublicensees during the preceding calendar year was less than
****. Notwithstanding the foregoing, the **** used to determine whether to apply the Tier One
Royalty Rate or the Tier Two Royalty Rate in the launch year will be based the average **** for the
**** during the **** preceding the date of First Commercial Sale.

	 	 	 	 	 	 	 	 	 
	Portion of Calendar Year Net Sales	 	Tier One Royalty	 	 	Tier Two Royalty	 
	in the United States	 	Rates	 	 	Rates	 
	On that portion of calendar year
Net Sales in the U. S. less than or
equal to $**** million
	 	 	****%	 	 	 	****%	 
	On that portion of calendar year
Net Sales in the U. S. greater than
$**** million but less than or
equal to $**** million
	 	 	****%	 	 	 	****%	 
	On that portion of calendar year Net
	 	 	****%	 	 	 	****%	 

	 	 	 	 	 	 	 	 	 
	Portion of Calendar Year Net Sales	 	Tier One Royalty	 	 	Tier Two Royalty	 
	in the United States	 	Rates	 	 	Rates	 
	Sales in the U.S. greater than
$**** million but less than or
equal to $**** million
	 	 	 	 	 	 	 	 
	On that portion of calendar year
Net Sales in the U.S. greater than
$**** million
	 	 	****%	 	 	 	****%	 

11

 

	 	 	 	 	 	 	 	 	 
		 	Tier One	 	 	Tier Two	 
	Portion of Calendar Year Net Sales in the	 	Royalty	 	 	Royalty	 
	EU	 	Rate	 	 	Rate	 
	On that portion of
calendar year Net
Sales in the EU less
than or equal to
$**** million
	 	 	****%	 	 	 	****%	 
	On that portion of
calendar year Net
Sales in the EU
greater than $****
million but less than
or equal to $****
million
	 	 	****%	 	 	 	****%	 
	On that portion of
calendar year Net
Sales in the EU
greater than $****
million but less than
or equal to $****
million
	 	 	****%	 	 	 	****%	 
	On that portion of
calendar year Net
Sales in the EU
greater than $****
million
	 	 	****%	 	 	 	****%	 

          (b) Rest of World Other than Japan. The royalty rate outside the U.S., EU and Japan
will be ****%.

          (c) Minimum Annual Royalty. If the aggregate amount of royalties paid or payable by
TESARO to OPKO on sales of Licensed Products under this Section during each of the first ****
calendar years commencing with the **** calendar year following the **** of Licensed Product in the
**** and ending with the calendar year in which the **** anniversary of the **** occurs (the
“Measurement Period”) is less than **** (the “Minimum Annual Royalty”), then within
forty-five (45) days of the end of each such calendar year, TESARO will pay OPKO an amount equal to
the difference between the **** and the aggregate amount of royalties paid or payable to OPKO on
sales of the Licensed Product during such calendar year (the “Annual Royalty Shortfall”).
During the Measurement Period, any Annual Royalty Shortfall paid or payable by TESARO **** the
aggregate amount of royalties **** Measurement Period that exceeded **** and any royalties payable
during the Measurement Period that exceed **** by the amount of any Annual Royalty Shortfall
payments made in any **** and not ****. The Minimum Annual Royalty will not apply, and no Annual
Royalty Shortfall will be due, in the event the commercial potential of any Licensed Product in the
U.S. has been materially adversely affected by: (i) the ****; (ii) **** identified in the course of
**** or commercialization of Licensed Product; (iii) **** of an issued patent within OPKO Patent
Rights Covering the Licensed Product in the United States.

     4.5. Japan. TESARO will pay OPKO **** of all Japan Income (the “OPKO Japan
Share”). In the event OPKO is required to make payments to a Third Party under an agreement in
existence as of the Effective Date, based on the OPKO Japan Share of the Japan Income (the
“OPKO Third Party Obligation”), TESARO will pay up to **** of such OPKO Third Party
Obligation, provided that, in no event will TESARO’s share of the OPKO Third Party Obligation
exceed **** of the amounts that would otherwise be payable to OPKO **** Obligation. In the event
sales of Licensed Product in Japan **** any of its Affiliates and are **** a Sublicensee, TESARO
will pay to OPKO royalties on Net Sales of Licensed Product in Japan at the rate of ****, subject
to the adjustments set forth in Section 4.7 and 4.8 to the same extent as applicable to royalties
on Net Sales payable under Section 4.4.

     4.6. Royalty and Income Sharing Term.

          (a) Royalties. Royalties under Section 4.4 will be payable on a country by country and
Licensed Product-by-Licensed Product basis during the period commencing on the First Commercial
Sale of such Licensed Product in the applicable Field in such country and ending upon the later of
(i) the date of expiration, unenforceability or invalidation of the last Valid Claim of OPKO Patent
Rights

12

 

Covering such Licensed Product in such country, and (ii) **** years from the date of First
Commercial Sale in such country (the “Royalty Term”).

          (b) Japan Income Sharing. TESARO’s obligation to share Japan Income under Section
4.5 will be payable on a Licensed Product-by-Licensed Product basis during the period commencing on
the Effective Date and ending upon the later of (i) the date of expiration, unenforceability or
invalidation of the last Valid Claim of OPKO Patent Rights Covering Licensed Product in Japan, and
(ii) **** from the date of First Commercial Sale in Japan (“Japan Income Sharing Term).

          (c) End of Royalty Term or Japan Income Sharing Term. Upon expiration of the
Royalty Term or Japan Income Sharing Term, as the case may be, in the country of sale, the license
granted to TESARO and its Affiliates and Sublicenses under Article II will convert to a fully
paid-up, non-royalty-bearing, license in the applicable country.

     4.7. Reduction for No Valid Claim. The royalties payable under Section 4.4 with
respect to Net Sales of a Licensed Product will be reduced, on a country by country and Licensed
Product-by-Licensed Product basis, by **** of the amounts otherwise payable under Section 4.4,
during any portion of the Royalty Term when there is no Valid Claim of an issued patent within OPKO
Patent Rights Covering such Licensed Product in the country of sale or other protective data or
marketing exclusivity. Notwithstanding the foregoing, in the event there is no Valid Claim of an
issued patent within OPKO Patent Right Covering a Licensed Product being sold in a country and a
Third Party has obtained Marketing Approval in such country for a product containing the same
active ingredient as contained in Licensed Product, the reduction on royalties under the preceding
sentence will be increased to ****.

     4.8. Third Party Payments.

          (a) OPKO Payments. Except as specifically set forth in Section 4.5, **** will pay
all milestones and other payments due under ****, and under any other agreement to which OPKO or
any of its Affiliates is a party.

          (b) Other Third Party Payments. **** will have the right to deduct from ****
payable to **** under Section 4.4 (after application of the deductions set forth in Section 4.7),
**** of Third Party Payments, provided that in no event will the royalty payable to OPKO on Net
Sales of Licensed Product be reduced as a result of application of this paragraph, to less than
**** of the amount otherwise payable under Section 4.4, as reduced by Section 4.7. Amounts
available for offset under this Section and not used as a credit against royalties in the period
incurred may be carried over to future periods until fully utilized.

     4.9. Payments; Reports. TESARO will pay royalties due on Net Sales and amounts due
with respect to Japan Income received in a calendar quarter within **** days of the end of such
calendar quarter. Within **** days after the end of each calendar quarter for which amounts are
payable by TESARO under Section 4.4 or 4.5, TESARO will submit to OPKO a report, on a
country-by-country basis, providing in reasonable detail an accounting of all Net Sales by TESARO
and its Affiliates and Sublicensees in the Territory (including, in each case, an accounting of all
unit sales of the Licensed Product and a calculation of the deductions from gross invoice price to
Net Sales in accordance with Section 1.27) made during such calendar quarter and all Japan Income
and the calculation of the applicable amounts due under Section 4.4 and 4.5. TESARO will, at the
time TESARO submits a report under this Section, pay to OPKO all amounts due to OPKO under Sections
4.4 and 4.5, as indicated in the applicable report.

     4.10. Taxes. TESARO will make all payments to OPKO under this Agreement without
deduction or withholding except to the extent that any such deduction or withholding is required by
applicable law to be made on account of Taxes (as that term is defined below). Any Tax required to
be

13

 

withheld under applicable law on amounts payable under this Agreement will promptly be paid by
TESARO or its Affiliates or Sublicensees on behalf of OPKO to the appropriate governmental
authority, and TESARO will furnish OPKO with proof of payment of such Tax. Any such Tax required to
be withheld will be an expense of and borne by OPKO. TESARO will give notice of its intention to
begin withholding any such Tax in advance and cooperate to use reasonable and legal efforts to
reduce such Tax on payments made to OPKO hereunder. The Parties will cooperate with respect to all
documentation required by any relevant government taxing authority or reasonably requested by
either Party to secure a reduction in the rate of applicable withholding Taxes. Solely for purposes
of this Section 4.10, “Tax” or “Taxes” means any present or future taxes, levies, imposts, duties,
charges, assessments or fees of any nature (including interest, penalties and additions thereto)
that are imposed by a government authority, but not including TESARO income taxes.

     4.11. United States Dollars. All dollar ($) amounts specified in this Agreement
are United States dollar amounts.

     4.12. Currency Conversion. All payments to be made by TESARO to OPKO will be made
in U.S. Dollars, to a bank account designated by OPKO. In the case of sales outside the United
States, payments received by TESARO will be expressed in the U.S. Dollar equivalent calculated on a
quarterly basis in the currency of the country of sale and converted to their U.S. Dollar
equivalent using the average rate of exchange over the applicable calendar quarter to which the
sales relate, in accordance with GAAP and the then current standard methods of TESARO or the
applicable Sublicensee, to the extent reasonable and consistently applied. TESARO will inform OPKO
as to the specific exchange rate translation methodology used for a particular country or
countries.

     4.13. Blocked Payments. If, by reason of applicable laws or regulations in any
country, it becomes impossible or illegal for TESARO or any of its Affiliates or Sublicensees to
move revenues related to Licensed Product out of such country, TESARO will promptly notify OPKO of
the conditions preventing such transfer, and royalties on the affected Net Sales or amounts payable
on Japan Income shall, in lieu of payment under Section 4.9, be deposited in local currency in the
relevant country to the credit of OPKO in a recognized banking institution in such county
designated by OPKO or, if none is designated by OPKO within a period of thirty (30) days, in a
recognized banking institution in such county selected by TESARO or its Affiliates or Sublicensees,
as the case may be, and identified in a notice given to the Party on whose account the funds are
deposited.

     4.14. Late Payments. TESARO will pay interest to OPKO on the aggregate amount of
any payments that are not paid on or before the date such payments are due under this Agreement at
a rate per annum equal to the lesser of one and **** per month or the highest rate permitted by
applicable law, calculated based on the number of days such payments are paid after the date such
payments are due.

     4.15. Records and Audits. TESARO will keep complete and accurate records relating
to the calculations of Net Sales and Japan Income generated in the then current calendar year, and
during the preceding ****. OPKO will have the right, **** at its ****, to have a nationally
recognized, independent, certified public accounting firm, selected by it and reasonably acceptable
to TESARO, review any such records of TESARO and its Affiliates and Sublicensees (the “Audited
Party”) in the location(s) where such records are maintained by the Audited Party upon
reasonable written notice (which shall be no less than thirty (30) days’ prior written notice) and
during regular business hours and under obligations of strict confidence, for the sole purpose of
verifying the basis and accuracy of payments made under Section 4.4 and 4.5 within the **** period
preceding the date of the request for review. No **** will be subject to audit under this Section
more than once. TESARO will receive a copy of each such report concurrently with receipt by OPKO.
Should such inspection lead to the discovery of a discrepancy to OPKO’s detriment, TESARO will,
within thirty (30) days after receipt of such report from the accounting firm, pay any undisputed
amount of the discrepancy, plus interest on the underpayment at a rate per annum equal to the
lesser of **** per month or the highest rate permitted by applicable law,

14

 

calculated from the date the underpayment was made until the date of payment to OPKO of the
underpayment. **** will pay the full cost of the review unless the underpayment of amounts due to
**** is greater than **** of the amount due for the entire period being examined, in which case
**** will pay the reasonable cost charged by such accounting firm for such review. Any undisputed
overpayment of royalties by TESARO revealed by an examination will be paid by OPKO within **** of
OPKO’s receipt of the applicable report. Any disagreement regarding the results of any audit
conducted under this Section will be subject to the dispute resolution provisions set forth in
Article X.

ARTICLE V

INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION

AND RELATED MATTERS

     5.1. Prosecution and Maintenance of Patent Rights. Within **** after the Effective
Date, OPKO will transfer to TESARO responsibility for filing, prosecuting and maintaining all OPKO
Patent Rights (other than the OPKO Patent Rights, if any, that were licensed but not assigned to
OPKO under the Asset Purchase Agreement) in such a way that there is not any loss of rights during
such **** day period or in connection with the transition, including consulting with TESARO and
cooperating with TESARO related to such activities prior to completion of the transition, and
contacting the foreign agents of OPKO to assist in the transfer of power of attorney as required by
the relevant patent offices for TESARO to assume prosecution of such files. Commencing after
notification to the USPTO and OPKO foreign agent of the change in prosecution status, TESARO will
have responsibility, at TESARO’s cost, for filing, conducting prosecution, and maintaining
(including the defense of any interference or opposition proceedings) all such OPKO Patent Rights
as to which OPKO has assumed and maintains responsibility under this Section, and shall use
Commercially Reasonable Efforts in the conduct of such activities. TESARO will provide to OPKO
copies of all prosecution filings and material submissions and correspondence related to OPKO
Patent Rights for which TESARO has assumed and maintains responsibility under this Section sent to
or received from patent offices, and other service providers including maintenance fee providers,
and, with respect to patent applications, and material submissions, will use reasonable efforts to
provide OPKO with a draft of each such filing or material submission reasonably in advance of
submission, and will consider in good faith any comments that OPKO may timely provide. In addition,
TESARO will provide to OPKO such other information related to prosecution of the OPKO Patent Rights
for which TESARO has assumed and maintains responsibility under this Section as OPKO may from time
to time reasonably request to allow OPKO to track prosecution and maintenance of such OPKO Patent
Rights including docket reports of all pending and issued patents and patent applications within
OPKO Patent Rights. In the event TESARO decides to abandon prosecution in any country with respect
to an OPKO Patent Right for which TESARO is responsible under this Section in a particular country
or decides to not otherwise maintain or extend any OPKO Patent Right for which TESARO is
responsible under this Agreement in a particular country, in either case where a substitute is not
filed for such OPKO Patent Right (such OPKO Patent Right in the applicable country being referred
to in this Agreement as an “Abandoned Patent Right”), TESARO will give OPKO written notice, and
will transfer the relevant files and authority to OPKO, sufficiently in advance of any loss of
rights to allow OPKO to file, prosecute, maintain or extend, as the case may be, claims with
respect to such Abandoned Patent Rights in the relevant country, and such Abandoned Patent Right in
the relevant country will no longer be included as an OPKO Patent Right licensed to TESARO under
Agreement.

     5.2. Patent Term Extensions. TESARO will use Commercially Reasonable Efforts to
obtain patent term extensions (including those extensions available under U.S. Drug Price
Competition and Patent Term Restoration Act of 1984, the Supplementary Certificate of Protection of
Member States of the EU and other similar measures in any other country) wherever applicable to
licensed OPKO Patent Rights as to which TESARO controls prosecution that Cover Licensed Product in
the Field in the Territory, and OPKO will cooperate, at TESARO’s request and expense in connection
with such activities. All filings for such extensions shall be made by the Party responsible for
filing, prosecuting and maintaining the relevant Patent Rights in accordance with this Section.

15

 

     5.3. Third Party Infringement.

          (a) Notices. Each Party will promptly report in writing to the other Party any (i)
known or suspected infringement of any OPKO Patent Rights, or (ii) unauthorized use or
misappropriation of any OPKO Know-how by a Third Party, of which such Party becomes aware, in each
case only to the extent relevant to Licensed Product or the development, manufacture,
commercialization or use of Licensed Product in the Field in the Territory, and will provide the
other Party with all available information evidencing such infringement, or unauthorized use or
misappropriation.

          (b) TESARO First Right to Enforce Certain OPKO Patent Rights. TESARO or its
designated Affiliate or Sublicensee will have the first right, but not the obligation, to initiate
a suit or take other appropriate action that it believes is reasonably required to prevent or abate
actual or threatened infringement or misappropriation of, or otherwise protect or enforce, the OPKO
Patent Rights as to which TESARO controls prosecution against a Third Party who is researching,
developing, making, using or selling a product in the Field in a country within the Territory. OPKO
and its Affiliates will join such suit if the relevant court would lack jurisdiction if OPKO or
such Affiliate were absent from such suit and OPKO and such Affiliates will execute such legal
papers and cooperate in the prosecution of such suit as may be reasonably requested by TESARO;
provided, that **** incurred by **** and such Affiliates in connection with such requested
cooperation.

          (c) OPKO Rights if TESARO Elects Not to Proceed. If TESARO does not initiate a
suit or take other appropriate action pursuant to Section 5.3(b) within **** days after knowledge
of such infringement or misappropriation or, in the case of receipt of a notice letter sent by a
Third Party pursuant to the requirements of 21 U.S.C. § 355(b)(2)(A)(iv) or 355(j)(2)(A)(vii)(IV)
or under any analogous provisions, within **** before any statutory or regulatory deadline for
filing such suit, then OPKO will have the immediate right to initiate a suit or take other
appropriate action that it believes is reasonably required to prevent or abate actual or threatened
infringement or misappropriation of, or otherwise to protect or enforce the relevant OPKO Patent
Rights. TESARO and its Affiliates will join such suit if the relevant court would lack jurisdiction
if TESARO or such Affiliates were absent from such suit and TESARO and such Affiliates will execute
such legal papers and cooperate in the prosecution of such suit as may be reasonably requested by
OPKO; provided, that **** (including ****) incurred by **** and such Affiliates in connection with
such requested cooperation.

          (d) Enforcement Against Other Infringement of OPKO Patent Rights. Except as
provided in Section 5.3(b), OPKO will have the sole right, but not the obligation, to initiate a
suit or take other appropriate action that it believes is reasonably required to prevent or abate
actual or threatened infringement or misappropriation of, or otherwise to protect or enforce, OPKO
Patent Rights during the Term.

          (e) Right to Enforce Know-how. Responsibility for preventing or abating actual or
threatened infringement or misappropriation of, or otherwise protecting or enforcing OPKO Know-how
will be determined in the same manner as the right to enforce OPKO Patent Rights under paragraph
(b) and (c). The enforcing Party shall keep the other Party informed of the status of all
enforcement activities, and shall consider in good faith all comments of the other Party regarding
any aspect of such enforcement.

          (f) Conduct of Certain Actions; Costs. The Party initiating suit under this
Section 5.3 will have the sole and exclusive right to select counsel for any suit initiated by it
pursuant to this Section. The initiating Party will assume and **** incurred in connection with any
litigation or proceedings initiated by it pursuant to this Section, including the **** selected by
it.

16

 

          (g) Recoveries.

          (i) If TESARO initiates suit as permitted in accordance with Section 5.3(b) or,
with respect to OPKO Know-how, in the same manner as set forth in Section 5.3(b), any
damages, settlements, accounts of profits, or other financial compensation actually paid to
TESARO by a Third Party based upon such suit, after deducting TESARO’s actual out of pocket
expenses (including reasonable attorneys’ fees and expenses) incurred in pursuing such suit
(such net amount, the “Recovery”), will be treated as Net Sales, and will be subject
to the royalty payment obligations under Section 4.4 (provided that, for purposes of
calculating the applicable royalty rate, such Recovery will not be combined with any
calendar year Net Sales), with TESARO retaining the balance after such payment.

          (ii) If OPKO initiates suit pursuant to Section 5.3(b) or with respect to OPKO
Know-how, in the same manner as set forth in Section 5.3(b), OPKO may retain any damages,
settlements, accounts of profits, or other financial compensation recovered from a Third
Party based upon such suit.

     5.4. Patent Invalidity Claim. Each of the Parties will promptly notify the other
Party in the event of any legal or administrative action by any Third Party against an OPKO Patent
Right, or any certification filed pursuant to 21 U.S.C. § 355(b)(2)(A)(iv) or 355G)(2)(A)(vii)(IV)
or any notice under any analogous provisions, with respect to such Patent Rights, of which it
becomes aware, including any nullity, revocation, reexamination or compulsory license proceeding.
Responsibility for defending against any such action shall be determined in the same manner as
enforcement of the relevant Patent Rights pursuant to Section 5.3.

     5.5. Patent Marking. TESARO agrees to comply with the patent marking statutes in
each country in which the Licensed Product is sold by TESARO or its Affiliates or Sublicensees.

ARTICLE VI

CONFIDENTIALITY

     6.1.
Confidential Information. During the Term and for a period of **** after any
termination or expiration of this Agreement, each Party agrees to keep in confidence and not to
disclose to any Third Party, or use for any purpose, except pursuant to, and in order to carry out,
the terms and objectives of this Agreement (which, in the case of TESARO and its Affiliates and
Sublicensees, includes activities contemplated by the licenses granted in Sections 2.1) or as
otherwise specifically permitted under this Agreement, any Confidential Information of the other
Party. The terms of this Agreement will be considered Confidential Information of both Parties,
subject to permitted disclosures as set forth in this Article VI. The restrictions on the
disclosure and use of Confidential Information set forth in the first sentence of this Section 6.1
will not apply to any Confidential Information that:

          (i) was known by the receiving Party prior to disclosure by the disclosing Party
hereunder (as evidenced by the receiving Party’s written records or other competent
evidence);

          (ii) is or becomes part of the public domain through no fault of the receiving
Party;

          (iii) is disclosed to the receiving Party by a Third Party having a legal right to
make such disclosure without violating any confidentiality or non-use obligation that such
Third Party has to the disclosing Party and provided such Third Party is not disclosing such
information on behalf of the disclosing Party; or

17

 

          (iv) is independently developed by personnel of the receiving Party who did not
have access to the Confidential Information (as evidenced by the receiving Party’s written
records or other competent evidence).

In addition, if either Party is required to disclose Confidential Information of the other Party by
regulation, law or legal process, including by the rules or regulations of the United States
Securities and Exchange Commission or similar regulatory agency in a country other than the United
States or of any stock exchange or Nasdaq, such Party shall provide prior written notice and a copy
of such intended disclosure to such other Party if possible under the circumstances, will consider
in good faith the other Party’s comments, will disclose only such Confidential Information of such
other Party as is required to be disclosed and will cooperate in the disclosing Party’s efforts to
obtain a protective order or to limit the scope of the required disclosures. Notwithstanding
anything in this Agreement to the contrary, either Party may disclose to bona fide potential or
existing investors or lenders, potential acquirors/acquirees, and, in the case of TESARO, to
potential and existing sublicensees and collaborators, and to such Party’s consultants and
advisors, the existence and terms of this Agreement to the extent necessary in connection with a
proposed equity or debt financing of such Party, or a proposed acquisition or business combination
or transaction, so long as such recipients are bound in writing to maintain the confidentiality of
such information.

     6.2. Permitted Disclosures. Each Party agrees that it and its Affiliates will
provide or permit access to Confidential Information received from the other Party and such Party’s
Affiliates and representatives only to the receiving Party’s employees, consultants, advisors and
bona fide potential acquirors, and, in the case of TESARO as the receiving Party, to service
providers, investigators, Third Party contractors, potential and existing Sublicensees and
distributors, in each case who, in such Party’s reasonable judgment, have a need to know such
Confidential Information to assist the receiving Party with the activities contemplated by this
Agreement (which, in the case of TESARO and its Affiliates and Sublicensees, includes activities
contemplated by the license granted in Sections 2.1) or in connection with a potential business
relationship or investment that would encompass Licensed Product, and who are subject to
obligations of confidentiality and non-use with respect to such Confidential Information similar to
the obligations of confidentiality and non-use of the receiving Party under Section 6.1. OPKO and
TESARO shall each remain responsible for any failure by its Affiliates, and its and its Affiliates’
respective employees, consultants, advisors and permitted contractors, sublicensees and
distributors, to treat such Confidential Information as required under Section 6.1 (as if such
Affiliates, employees, consultants, advisors, contractors, sublicensees and distributors were
Parties directly bound to the requirements of Section 6.1). TESARO may also disclose Confidential
Information of OPKO to Regulatory Authorities and other governmental authorities, but solely in
connection with the activities contemplated by this Agreement.

     6.3. Limitation on OPKO Disclosure of OPKO Know-how. During the Term of this
Agreement, OPKO will not disclose OPKO Know-how that is specific to Licensed Product or the
development, manufacture, commercialization or use of Licensed Product to any Third Party without
the express written consent of TESARO.

     6.4. Publicity. Neither Party will issue a press release or public announcement
relating to the terms of this Agreement without the prior written approval of the other Party,
which approval shall not be unreasonably withheld or delayed, except that (i) either or both of the
Parties may issue a press release in the form attached as Exhibit E; (ii) a Party may issue
such press release or public announcement if the contents of such press release or public
announcement are consistent with a previously approved press release or have otherwise previously
been made public other than through a breach of this Agreement, and (ii) a Party may issue such a
press release or public announcement if required by applicable law, including by the rules or
regulations of the United States Securities and Exchange Commission (SEC) or similar regulatory
agency in a country other than the United States or of any stock exchange or Nasdaq; provided that
such Party complies with the notice and review provisions set forth in this Section. In no

18

 

event will OPKO make any public disclosure related to TESARO’s activities under this Agreement
or related to the results generated by TESARO or any of its Affiliates or Sublicensees with respect
to Licensed Product without the prior written consent of TESARO except to the extent required by
applicable law. In the event OPKO is required by applicable law to publicly disclose any of the
results generated by TESARO or any of its Affiliates or Sublicensees or any information provided by
TESARO related to Licensed Product or either Party is required by applicable law to disclose the
terms of this Agreement, such Party will give the other Party at least two (2) business days’ prior
written notice, will provide to such other Party a copy of the required disclosure, will, if
requested by such other Party, to the extent permitted by applicable law, request confidential
treatment of any financial and other materials terms of this Agreement not previously disclosed
under this Section, and will consider in good faith any other comments of such other Party on such
public disclosure.

     6.5. Publications. TESARO and its Affiliates and Sublicensees shall have the sole
right to publish the results of development, manufacture, commercialization and use of Licensed
Product during the Term.

     6.6. Return of Confidential Information. Upon termination of this Agreement prior
to the end of the Term, the receiving Party shall, at the request of, and as directed by, the
disclosing Party, return or destroy Confidential Information of the disclosing Party in the
receiving Party’s possession, and shall destroy any reports or notes in receiving Party’s
possession t6 the extent containing the disclosing Party’s Confidential Information, and any
electronic copies of any of the foregoing, provided that (i) the receiving Party may retain one
copy of Confidential Information of the disclosing Party for archival purposes, and (ii) neither
Party shall be required to return or destroy copies of the other Party’s Confidential Information
stored on automatically created system back-up media.

ARTICLE VII

REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS

     7.1. Mutual Representations. Each Party hereby represents and warrants to the other Party,
as of the Effective Date, as follows:

          (a) It is duly organized and validly existing under the laws of its jurisdiction of
incorporation and has the corporate power and authority to execute and deliver this Agreement and
to perform its obligations hereunder.

          (b) The execution, delivery and performance of this Agreement by such Party has been duly
and validly authorized and approved by proper corporate action on the part of such Party. Such
Party has taken all other action required by applicable law, its certificate of incorporation or
by-laws or any agreement to which it is a party or by which it or its assets are bound, to
authorize such execution, delivery and performance. Assuming due authorization, execution and
delivery on the part of the other Party, this Agreement constitutes a legal, valid and binding
obligation of such Party.

          (c) The execution and delivery of this Agreement, and the performance as contemplated
hereunder, by such Party will not violate any applicable law.

          (d) Neither the execution and delivery of this Agreement nor the performance hereof by
such Party requires such Party to obtain any permit, authorization or consent from any governmental
authority (except for any Regulatory Approvals, pricing or reimbursement approvals,
manufacturing-related approvals or similar approvals necessary for development, manufacture or
commercialization of Licensed Products), or from any other person, and such execution, delivery and
performance by such Party, including the granting of the licenses granted under this Agreement,
will not result in the breach of or give rise to any conflict, termination of, rescission,
renegotiation or acceleration under or trigger any

19

 

other rights under any agreement or contract to which such Party may be a party existing as of
the Effective Date.

          (e) Neither Party nor any of its Affiliates has been debarred or is subject to debarment,
and OPKO has not used in any capacity in connection with the development or manufacture of Licensed
Product prior to the Effective Date, any person or entity who has been debarred pursuant to Section
306 of the United States Federal Food, Drug, and Cosmetic Act, or who is the subject of a
conviction described in such section.

     7.2. OPKO’s Representations and Warranties. OPKO hereby makes the following
representations and warranties to TESARO as of the Effective Date:

          (a) OPKO has the right to grant to TESARO the rights and licenses described in this
Agreement.

          (b) Exhibit C contains a complete and correct list of all existing OPKO Patent
Rights.

          (c) To OPKO’s knowledge, no Third Party is infringing any of the OPKO Patent Rights
identified on Exhibit C.

          (d) To OPKO’s knowledge, except as discussed with TESARO, the making, using or selling of
a Licensed Product will not infringe any Third Party Patent Rights.

          (e) OPKO has not received any written notice of (i) any claim that any patent or trade
secret right owned or controlled by a Third Party would be infringed or misappropriated by the
manufacture, use, sale, offer for sale or importation of Licensed Products in the Field, or (ii)
any threatened claims or litigation seeking to invalidate or otherwise challenge the OPKO Patent
Rights or OPKO’s rights therein.

          (f) OPKO’s rights to OPKO Patent Rights and OPKO Know-how are held free and clear of any
liens, security interests and similar encumbrances.

          (g) None of the OPKO Patent Rights owned by OPKO are the subject of any pending
re-examination, opposition, interference or litigation proceedings.

          (h) To OPKO’s knowledge, there have been no inventorship or ownership challenges with
respect to any of the OPKO Compound Patent Rights.

          (i) The OPKO Patent Rights that are pending patent applications as of the Effective Date
are being diligently prosecuted at the respective patent offices. To OPKO’s knowledge, the OPKO
Patent Rights that are issued patents have been maintained properly and correctly and all
applicable fees have been paid on or before the due date for payment.

          (j) There are no agreements pursuant to which a Third Party has licensed to OPKO any OPKO
Patent Rights or OPKO Know-how or pursuant to which OPKO or any of its Affiliates has otherwise
acquired any OPKO Patent Rights or OPKO Know-how from a Third Party other than the Asset Purchase
Agreement or other Third Party Agreements.

          (k) A complete list of material agreements to which OPKO or any of its Affiliates is a
Party related to the development, manufacture, use or sale of Licensed Product or under which OPKO
may otherwise be required to make payments to Third Parties related to this Agreement is attached
as Exhibit F (the “Third Party Agreements”). OPKO will not amend, allow to terminate, or waive any
of its

20

 

rights or obligations under the Asset Purchase Agreement in a manner which would adversely
impact the rights licensed to TESARO under this Agreement, except as approved in writing in advance
by TESARO.

          (l) To OPKO’s knowledge, the research, development and manufacture of Licensed Product in
the Territory on or before the Effective Date has been conducted by OPKO and its Affiliates and its
subcontractors, in compliance (in all material respects) with all applicable laws.

          (m) Neither OPKO nor its Affiliates has received written notice from any Regulatory
Authority threatening any proceedings with respect to the research, development or manufacture of
any Licensed Product in the Field in the Territory.

          (n) To OPKO’s knowledge, OPKO has not intentionally withheld any material information
relating to the subject matter of this Agreement.

     7.3. No Warranty. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT,
NEITHER PARTY HERETO MAKES ANY REPRESENTATIONS AND NEITHER PARTY EXTENDS ANY WARRANTIES OF ANY
KIND, EITHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE SUBJECT MATTER OF THIS
AGREEMENT (INCLUDING ANY LICENSED PRODUCT), INCLUDING ANY WARRANTY OF MERCHANTABILITY,
NONINFRINGEMENT, OR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT AS EXPRESSLY PROVIDED IN THIS
AGREEMENT, OPKO MAKES NO WARRANTY OR REPRESENTATION AS TO THE VALIDITY OR SCOPE OF THE OPKO PATENT
RIGHTS OR OPKO KNOW HOW, OR THAT ANY LICENSED PRODUCT WILL BE FREE FROM AN INFRINGEMENT ON PATENTS
OR OTHER INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR THAT NO THIRD PARTIES ARE IN ANY WAY
INFRINGING OR NOT INFRINGING THE OPKO PATENT RIGHTS OR OPKO KNOW HOW COVERED BY THIS AGREEMENT.
TESARO DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE AND
COMMERCIALIZATION OF LICENSED PRODUCT PURSUANT TO THIS AGREEMENT WILL BE SUCCESSFUL OR THAT, IF
COMMERCIALIZED, ANY PARTICULAR SALES LEVEL WILL BE ACHIEVED.

ARTICLE VIII

INDEMNIFICATION

     8.1. Indemnification by TESARO. TESARO will indemnify, hold harmless, and defend
OPKO, its Affiliates, and their respective directors, officers, employees and agents (the “OPKO
Indemnitees”) from and against any and all damages, liabilities, costs, expenses and amounts paid
in settlement (collectively, “Losses”) incurred in connection with any Third Party claim arising
out of or resulting from, directly or indirectly; (i) any breach of, or inaccuracy in, any
representation or warranty made by TESARO in this Agreement, or any breach or violation of any term
of this Agreement by TESARO; (ii) the negligence or willful misconduct of TESARO, its Affiliates
and their respective Sublicensees, and their respective directors, officers, employees and agents;
and (iii) the research, development, manufacture, commercialization, or use of Licensed Product by
TESARO and its Affiliates and Sublicensees in the Territory in the Field under this Agreement.
Notwithstanding the foregoing or anything in this Agreement to the contrary, TESARO will have no
obligation to indemnify the OPKO Indemnitees to the extent that the Losses arise out of or result
from, directly or indirectly, any breach of, or inaccuracy in, any representation or warranty made
by OPKO in this Agreement; any breach or violation of any term of this Agreement by OPKO; the
negligence or willful misconduct of any of the OPKO Indemnitees or any other Losses as to which
OPKO is obligated to indemnify TESARO under Section 8.2.

     8.2. Indemnification by OPKO. OPKO will indemnify, hold harmless, and defend
TESARO, its Affiliates and their respective directors, officers, employees and agents (the “TESARO
Indemnitees”)

21

 

from and against any and all Losses incurred in connection with any Third Party Claim
arising out of or resulting from, directly or indirectly, (i) any breach of, or inaccuracy in, any
representation or warranty made by OPKO in this Agreement, or any breach or violation of any term
of this Agreement by OPKO;
(ii) the negligence or willful misconduct of any OPKO Indemnitee; (iii) the research,
development, manufacture or use of Licensed Product by or on behalf of OPKO or any of its
Affiliates prior to commencement of the Term; or (iv) the research, development, manufacture,
commercialization, or use of Licensed Product by OPKO or any of its Affiliates or licensees (other
than TESARO) or any other activities of OPKO and its Affiliates and licensees (other than TESARO)
outside the Field. Notwithstanding the foregoing, or anything in this Agreement to the contrary,
OPKO will have no obligation to indemnify the TESARO Indemnitees for any Losses as to which TESARO
is obligated to indemnify OPKO under Section 8.1.

     8.3. Indemnification Procedure. In the event of any such claim against any TESARO
Indemnitee or OPKO Indemnitee (individually, an “Indemnitee”), the indemnified Party shall promptly
notify the other Party in writing of the claim and the indemnifying Party shall manage and control,
at its sole expense, the defense of the claim and its settlement. The indemnified Party will
cooperate with the indemnifying Party and may, at the indemnifying Party’s option and expense, be
represented in any such action or proceeding. The indemnifying Party will not be liable for any
settlements, litigation costs or expenses incurred by any Indemnitee without the indemnifying
Party’s prior written authorization. Notwithstanding the foregoing, if the indemnifying Party
believes that any of the exceptions to its obligation of indemnification of the Indemnitees set
forth in this Article 8 may apply, the indemnifying Party will promptly notify the Indemnitees, who
shall then have the right to be represented in any such action or proceeding by separate counsel at
their expense; provided that the indemnifying Party will be responsible for payment of such
expenses if the Indemnitees are ultimately determined to be entitled to indemnification from the
indemnifying Party.

     8.4. Limitation of Liability. NEITHER PARTY HERETO WILL BE LIABLE FOR SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS
RIGHTS HEREUNDER, INCLUDING LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT,
REGARDLESS OF ANY NOTICE OF SUCH DAMAGES, EXCEPT AS A RESULT OF A PARTY’S WILLFUL MISCONDUCT.
NOTHING IN THIS SECTION 8.4 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR
OBLIGATIONS OF EITHER PARTY.

     8.5. Insurance. During the Term and for a period of at least **** years after the
last commercial sale of a Licensed Product in the Field under this Agreement, TESARO will maintain
insurance, with a reputable, solvent insurer in an amount appropriate for its business and products
of the type that are the subject of this Agreement, and for its obligations under this Agreement,
including, commencing immediately prior to the first human clinical trial, product and clinical
trial liability insurance of at least **** per occurrence and **** in the aggregate on a
worldwide basis.

ARTICLE IX

TERM AND TERMINATION

     9.1. Term. This Agreement will become effective as of the Effective Date, and will
continue in full force and effect until the last to expire Royalty Term and Japan Income Sharing
Term, unless earlier terminated in accordance with this Article IX (“Term”). Upon
expiration of the Term under the preceding sentence (but not earlier termination of this Agreement)
the licenses granted to TESARO under Section 2.1 will convert to perpetual, fully paid-up,
non-royalty-bearing licenses with the same scope as set forth in such Section.

     9.2. Termination for Convenience. TESARO will have the right to terminate this
Agreement at any time and for any reason upon at least three (3) months’ prior written notice to
OPKO.

22

 

     9.3. Termination for Cause. This Agreement may be terminated at any time during
the Term upon written notice by either Party if the other Party is in material breach of its
obligations hereunder, and has not cured such material breach within sixty (60) days after written notice describing the
nature of such material breach is provided to the breaching Party.

     9.4. OPKO Termination. To the extent permitted by applicable law, OPKO may
terminate this Agreement by giving written notice of termination to TESARO within thirty (30) days
of the filing of bankruptcy or bankruptcy of TESARO or the making by TESARO of any assignment for
the benefit of creditors. Termination shall be effective upon the date specified in such notice.

     9.5. Effect of Termination.

          (a) Pre-Termination Obligations; Transfer of Information and Filings. Upon the
termination of this Agreement for any reason, nothing herein shall be construed to release either
party from any obligation that matured prior to the effective date of such termination. TESARO
shall remain obligated to provide an accounting for and to pay Royalties earned. In the event of
termination, (i) the licenses granted hereunder shall terminate; (ii) TESARO shall have no further
right under OPKO Patent Rights or OPKO Know-how to develop, manufacture or market the Licensed
Product or any product containing Licensed Product for use in the Field, or otherwise to use the
OPKO Patent Rights or OPKO Know How; (iii) all rights granted hereunder shall revert to OPKO for
the benefit of OPKO; and (iv) TESARO shall, as promptly as practicable, transfer to OPKO or OPKO’s
designee: (a) possession and ownership of all governmental or regulatory correspondence,
conversation logs, filings and approvals (including all Marketing Approvals and pricing and
reimbursement approvals) relating to the development, manufacture or commercialization of the
Licensed Product in the Field and all product trademarks then being used in connection with
Licensed Product, other than TESARO’s corporate trademarks; and (b) all safety data and other
adverse event data in TESARO’s possession or Control. In addition, OPKO shall have the right to
purchase all API and Licensed Product in TESARO’S possession or control at **** or Licensed Product
(other than **** pursuant to this Agreement, which will be ****). Notwithstanding the foregoing,
TESARO shall be entitled to sell any completed inventory of Licensed Product which remain on hand
as of the date of the termination, and to sell new inventory to the extent necessary to satisfy its
contractual and legal obligations, so long as TESARO pays to OPKO the royalties applicable to said
subsequent sales in accordance with the terms and conditions as set forth in this Agreement;
provided that no sales shall be permitted after the expiration of six (6) months after the date of
termination. TESARO will execute all documents and take all such further actions, as may be
reasonably requested by OPKO in order to give effect to the preceding sentences as soon as
practicable.

          (b) License Grant. In the event of termination of this Agreement by OPKO under
Section 9.3 or 9.4 or termination by TESARO under Section 9.2, TESARO will be deemed to have
granted to OPKO a royalty-bearing (but solely to the extent set forth below), worldwide, exclusive,
sublicensable, license under any TESARO Improvement Patent Rights and TESARO Improvement to the
extent necessary or reasonably useful to manufacture, market, sell or use Licensed Product in the
Field in the Territory and solely for such purpose. Except in the event of termination by OPKO
under Section 9.3 or 9.4, OPKO will pay to TESARO a royalty on the sale of any Licensed Product in
the Field that incorporates a TESARO Improvement and is Covered by a Valid Claim of a TESARO
Improvement Patent Right, as follows:

	 	 	 
	Development Stage as of Date of Termination	 	Royalty Rate
	**** filing of a Licensed Product in the US or EU but **** of
a Licensed Product in the US or EU

	 	****
	**** of a Licensed Product in the US or EU

	 	****

23

 

          In addition, in the event TESARO or any of its Affiliates or Sublicensees is required to make
payments to any Third Party by reason of the licenses granted to OPKO under this paragraph (b) and
based on the development, manufacture or sale of Licensed Product by or on behalf of OPKO or any of
its Affiliates or sublicensees, OPKO will pay such amounts due by TESARO or any of its Affiliates
or Sublicensees to such Third Party by reimbursing TESARO or paying such amounts directly to such
Third Party, as directed by TESARO, in each case based on supporting documentation provided by
TESARO. OPKO may elect not to accept the grant of the license to TESARO Improvement Patent Rights
upon thirty (30) days written notice to TESARO from the date of termination.

     9.6. Survival. Any expiration or termination of this Agreement will be without
prejudice to the rights of either Party against the other accrued or accruing under this Agreement
prior to expiration or termination, including payment obligations arising prior to such expiration
or termination. The provisions of Articles VI, VIII, IX, X and XI will survive any expiration or
termination of this Agreement and all other provisions contained in this Agreement that by their
explicit terms survive expiration or termination of this Agreement, will survive. Except as set
forth in this Article IX, upon termination or expiration of this Agreement all other rights and
obligations of the Parties under this Agreement terminate.

ARTICLE X

DISPUTE RESOLUTION

     10.1. Continuance of Rights and Obligations During Pendency of Dispute Resolution.
If there are any disputes in connection with this Agreement, including disputes related to
termination of this Agreement under Article IX, all rights and obligations of the Parties shall
continue until such time as any dispute has be resolved in accordance with the provisions of this
Article X.

     10.2. Referral of Unresolved Matters to Senior Executives. In the event that the Parties
are unable to resolve a dispute within fifteen (15) days from the date such dispute is first
brought to the other Party’s attention, the matter shall be referred to a senior executive of each
Party to be resolved by negotiation in good faith as soon as is practicable but in no event later
than thirty (30) days after referral.

     10.3. Arbitration. Any dispute, controversy or claim arising out of or relating to
this Agreement which the Parties have not resolved under Section 10.2, will be decided by
arbitration in accordance with the Rules of the American Arbitration Association for Commercial
Arbitration in effect at the time the dispute arises, unless the Parties hereto mutually agree
otherwise. To the extent such rules are inconsistent with this provision, this provision will
control. The following rules will apply to any such arbitration:

          (a) Any demand for arbitration must be made in writing to the other Party.

          (b) There will be three arbitrators, one of whom shall be appointed by each party and a
third of whom shall be the chairman of the panel and be appointed by mutual agreement of the two
arbitrators appointed by the Parties. If the two arbitrators cannot agree on the appointment of the
third arbitrator within thirty (30) days, then the AAA shall select the arbitrator. Any arbitration
involving patent rights, other intellectual property rights or intellectual property will be heard
by arbitrators who are expert in such areas.

          (c) The arbitration will be held in the State of Delaware, or such other place as the
Parties agree. The arbitrators will apply the substantive law of the State of Delaware in
accordance with Section 11.1, without regard to conflicts of laws and except that the
interpretation and enforcement of this arbitration provision will be governed by the Federal
Arbitration Act, 9 U.S.C. Section 1 et. seq.

          (d) Neither Party will have the right independently to seek recourse from a court of law
or other authorities in lieu of arbitration, but each Party has the right before or during the
arbitration to seek and obtain from the appropriate court provisional remedies to avoid irreparable
harm, maintain the

24

 

status quo or preserve the subject matter of the arbitration. There shall be a stenographic
record of the proceedings. The decision of the arbitrators will be final and binding upon both
Parties. The arbitrators will render a written opinion setting forth findings of fact and
conclusions of law.

          (e) The expenses of the arbitration will be borne by the Parties in proportion as to which
each Party prevails or is defeated in arbitration. Each Party will bear the expenses of its counsel
and other experts.

     10.4. Equitable Relief. Notwithstanding anything to the contrary, each of the
Parties hereby acknowledges that a breach of their respective obligations under this Agreement may
cause irreparable harm and that the remedy or remedies at law for any such breach may be
inadequate. Each of the Parties hereby agrees that, in the event of any such breach, in addition to
all other available remedies hereunder, the non-breaching Party shall have the right, through the
arbitration process described in Section 10.3, to seek equitable relief to enforce the provisions
of this Agreement.

ARTICLE XI

MISCELLANEOUS

     11.1. Governing Law and Jurisdiction. The validity, construction and performance
of this Agreement will be governed by and construed in accordance with the substantive laws of the
State of Delaware excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of this Agreement to the substantive law of another
jurisdiction.

     11.2. Force Majeure. Neither Party will be held liable or responsible to the other Party
nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling
or performing any term, other than an obligation to make payments hereunder, when such failure or
delay is caused by or results from fire, floods, embargoes, government regulations, prohibitions or
interventions, war, acts of war (whether war be declared or not), insurrections, riots, civil
commotions, acts of God or any other cause beyond the reasonable control of the affected Party to
anticipate, prevent, avoid or mitigate (a “Force Majeure Event”); provided that (i) the
affected Party provides prompt written notice to the other Party of such failure or delay, (ii) the
affected Party uses Commercially Reasonable Efforts to mitigate the effects of the Force Majeure
Event, and (iii) the affected Party immediately resumes performance upon cessation of the Force
Majeure Event. Notwithstanding the foregoing, any failure or delay in fulfilling a term shall not
be considered a result of a Force Majeure Event if it arises from a failure of TESARO or OPKO to
comply with applicable laws.

     11.3. Further Assurances. Each Party hereto agrees to perform such acts, execute
such further instruments, documents or certificates, and provide such cooperation in proceedings
and actions as may be reasonably requested by the other Party in order to carry out the intent and
purpose of this Agreement.

     11.4. Notices. Any notice required or permitted to be given under this Agreement
will be in writing and will be deemed to have been properly given if delivered in person by a
internationally recognized overnight courier, or by fax (and promptly confirmed by overnight
courier), to the addresses given below or such other addresses as may be designated in writing by
the Parties from time to time during the Term.

     In the case of TESARO:

TESARO, Inc.

309 Waverley Oaks Rd., Suite 101

Waltham, MA 02452

Attention: Chief Financial Officer

Fax No.: 339-469-8966

25

 

With a copy to:

Anne Marie Cook

Choate, Hall & Stewart LLP

Two International Place

Boston, MA 02110

Fax No.: 617-248-4000

In the case of OPKO:

OPKO Health Inc.

4400 Biscayne Blvd.

Miami, FL 33137

Attention: Executive Vice President

Fax No.: 305-575-6444

With a copy to: Deputy General Counsel

     11.5. Assignment. This Agreement may not be assigned or otherwise transferred by
either Party, without the written consent of the other Party such consent not to be unreasonably
withheld, conditioned or delayed; provided, however, that either Party may, without such consent,
assign this Agreement, in whole or in part, (i) to any of its Affiliates, and (ii) to a Third Party
successor or purchaser of all or substantially all of its business or assets to which this
Agreement relates, whether in a merger, sale of stock, sale of assets or other similar transaction,
provided that, (i) the Third Party successor or purchaser provides written notice to the other
Party that such Third Party agrees to be bound by the terms of this Agreement, and (ii) OPKO will
not assign this Agreement unless the assignee is also assigned ownership owns or Controls of the
OPKO Patent Rights and OPKO Know-how. Any purported assignment in violation of this Section 11.5
will be void. Any permitted assignee shall assume all obligations of its assignor under this
Agreement.

     11.6. Affiliate Performance. Any obligation of TESARO under or pursuant to this
Agreement may be satisfied, met or fulfilled, in whole or in part, at TESARO’s sole and exclusive
option, either by TESARO directly or by any Affiliate or Sublicensee of TESARO that TESARO causes
to satisfy, meet or fulfill such obligation, in whole or in part.

     11.7. Amendment. The Parties hereto may amend, modify or alter any of the
provisions of this Agreement, but only by a written instrument duly executed by both Parties
hereto.

     11.8. Entire Agreement. This Agreement, along with all schedules and exhibits
attached hereto, contains the entire understanding of the Parties with respect to the subject
matter hereof and supersedes all prior agreements, whether written or oral. Each Party confirms
that it is not relying on any representations, warranties or covenants of the other Party except as
specifically set out in this Agreement.

     11.9. No Benefit to Third Parties. The provisions of this Agreement are for the
sole benefit of the Parties and their successors and permitted assigns, and they shall not be
construed as conferring any rights in any other Persons.

     11.10. Waiver. The failure of a Party to enforce at any time for any period any of
the provisions of this Agreement will not be construed as a waiver of such provisions or of the
rights of such Party thereafter to enforce each such provision.

     11.11. No Implied Licenses. Except as expressly and specifically provided under
this Agreement, the Parties agree that neither Party is granted any implied rights to or under any
of the other

26

 

Party’s current or future patents, trade secrets, copyrights, moral rights, trade or service
marks, trade dress, or any other intellectual property rights.

     11.12. Relationship of the Parties. The Parties agree that their relationship
established by this Agreement is that of independent contractors. Furthermore, the Parties agree
that this Agreement does not, is not intended to, and shall not be construed to, establish a
partnership or joint venture, and nor shall this Agreement create or establish an employment,
agency or any other relationship. Except as may be specifically provided in this Agreement, neither
Party shall have any right, power or authority, nor shall they represent themselves as having any
authority to assume, create or incur any expense, liability or obligation, express or implied, on
behalf of the other Party, or otherwise act as an agent for the other Party for any purpose.

     11.13. Severability. If any provision of this Agreement is held unenforceable by a
court or tribunal of competent jurisdiction in a final unappealable order because it is invalid or
conflicts with any law of any relevant jurisdiction, then such provision will be inoperative in
such jurisdiction and the remainder of this Agreement shall remain binding upon the Parties hereto.

     11.14. Interpretation.

          (a) General. Unless the context of this Agreement otherwise requires, (a) words of
one gender include the other gender; and (b) words using the singular or plural number also include
the plural or singular number, respectively. Whenever this Agreement refers to a number of days,
unless otherwise specified, such number shall refer to calendar days.

          (b) Other Definitional and Agreement References. References to any agreement,
contract, statute, act, or regulation are to that agreement, contract, statute, act, or regulation
as amended, modified or supplemented from time to time in accordance with the terms hereof and
thereof.

          (c) Capitalization. Any capitalized terms used in any Exhibit or Schedule but not
otherwise defined therein, shall have the meaning as defined in this Agreement.

          (d) Date References. References from or through any date mean, unless otherwise
specified, from and including or through and including, respectively.

          (e) Schedules and Exhibits. All Schedules and Exhibits annexed hereto or referred
to herein are hereby incorporated in and made a part of this Agreement as if set forth in full
herein.

          (f) Person References. References to any Person include the successors and
permitted assigns of that Person.

          (g) References to Parts of this Agreement. References to Articles, Sections,
Schedules, and Exhibits are to Articles, Sections, Schedules, and Exhibits of this Agreement unless
otherwise specified.

          (h) Other Definitional and Interpretative Provisions. The words “hereof’, “herein”
and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement. Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation”, whether or not they are in fact followed by those words or words of
like import. The word “or” is used in the inclusive sense (and/or). “Writing”, “written” and
comparable terms refer to printing, typing and other means of reproducing words (including
electronic media) in a visible form.

          (i) Headings. The Article and Section headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement.

27

 

          (j) Expenses. Except as otherwise expressly provided in this Agreement, each Party
shall pay the fees and expenses of its respective lawyers and other experts and all other expenses
and costs incurred by such Party incidental to the negotiation, preparation, execution and delivery
of this Agreement.

     11.15. Counterparts. This Agreement may be executed in any number of counterparts
(including by facsimile), each of which shall be deemed an original, but all of which together
shall constitute one and the same document.

[Signature Page Follows]

28

 

     IN WITNESS WHEREOF, TESARO and OPKO have caused this Agreement to be duly executed by their
authorized representatives under seal, in duplicate on the Effective Date.

	 	 	 	 	 
	 	TESARO, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	OPKO Health, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

29

 

	 	 	 	 	 

Exhibit A

Description of SCH 619734 (Rolapitant)

Chemical Structure of Rolapitant:

 

 

Exhibit B

Description of SCH 900978

Chemical Structure of SCH 900978:

 

 

Exhibit C

OPKO Patent Rights

[Attached]

 

 

					
	Monday, November 22, 2010
	 	 	 	Page 1 of 28
	 
	 	Patent Status by Division	 	 
	            
Division: OPKO OPKO	 	 	 	 

	Docket	 		 	 	 	 	Status	 	 	Application Number	 	 	Filing Date	 	 	 	 	 	 	 
	Country	 	SubCase	 	Case Type	 	 	Division Reference	 	 	Patent Number	 	 	Issue Date	 	 	Next Action(s)	 	 	Due Date(s)	 
	****
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 

	Monday, November 22, 2010

	 	Report Selection
	 	Page 2 of 28

Record Count: 187

	 	 	 	 	 	 
	 

	 	Sort Order: by Division
	 	Print Remarks?: No	 
	 
	 	 	 	 	 
	 

	 	 	 	Print Inventors?: No	 
	 
	 	 	 	 	 
	 

	 	 	 	Print Abstract: No	 
	 
	 	 	 	 	 
	 

	 	 	 	Actions Due: All	 

	 	 	 	 	 	 	 
	 	 	Filing Date:	 	From:	 	To:
	Docket Number:

	 	Status Code: All
	 
	 	 	 	 	 	 
	Division: OPKO

	 	 	 	Case Type(s):
	 	Status(es):
	 
	 	 	 	 	 	 
	Agent:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Attorney:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Assignee:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Country:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Area:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Inventor:
	 	 	 	 	 	 

 

 

Exhibit D

Technology Transfer Plan

[Attached]

 

 

TECHNOLOGY TRANSFER PLAN

This Technology Transfer Plan is an exhibit to the Exclusive License Agreement entered into between
TESARO, Inc. (“TESARO”) and OPKO Health, Inc. (“OPKO”) (the “Agreement”), and is incorporated by
reference into the Agreement. Capitalized terms used in this Technology Transfer Plan will have the
meaning set forth in the Agreement.

Part A -General

1. Technology Transfer Services. OPKO will transfer to TESARO (or TESARO’s designees) all
OPKO Know How and related technical information, and provide such support, as is reasonably
necessary to enable TESARO to assume responsibility for the research, formulation, development,
testing and manufacture of Licensed Product, and, during the period commencing on the Effective
Date and continuing until the later of the completion of all Technical Transfer Services (as
defined below) or **** from the Effective Date (such period being hereafter referred to as the
“Transfer Period”), will provide reasonable ongoing assistance to TESARO in connection with such
transfer and use of the OPKO Know-how. In connection with the foregoing, OPKO will perform the
activities set forth in Parts Band C of this Technology Transfer Plan (the “Technology Transfer
Services”). In addition, during the Transfer Period, OPKO will make its personnel reasonably
available to TESARO to respond to questions related to the OPKO Know-how in connection with any of
the activities described in this Technology Transfer Plan, and will provide such ongoing support
and assistance as TESARO may reasonably request in the transition of development and manufacturing
responsibility for Licensed Products to TESARO. TESARO acknowledges that OPKO and OPKO personnel
were not involved in the discovery, manufacture, formulation, sourcing, research or development of
the Licensed Product or any API and have only gained information relating to the Licensed Product
in connection with the Asset Purchase Agreement and its research and development efforts undertaken
since the consummation of the Asset Purchase Agreement in November 2009, much of which has been
undertaken through the assistance of Third Party consultants. OPKO intended to use Third Parties
for, and therefore had not engaged in, the development or formulation of dosage forms or the
manufacture of drug product or API in support of the clinical development program or
commercialization of Licensed Product. Accordingly, OPKO’s efforts, support and assistance and
TESARO’s expectations under this Technology Transfer Plan must be considered in light of OPKO’ s
limited level of expertise, knowledge and familiarity with Licensed Product. Additionally, in
making the decision to enter into the Exclusive License Agreement, TESARO has conducted its own
independent investigation, review and analysis of the Licensed Product, OPKO Patent Rights and OPKO
Know-how, and has had complete access to all of OPKO’s files, information, materials and data, and
records relating to the Licensed Product. In connection with the foregoing, at the request of
TESARO, OPKO will seek the assistance of Merck & Co., Inc. to the extent such support continues to
be available under Section 2.5 of the Asset Purchase Agreement, and any other Third Party support,
as specified in paragraph 2 of this Part A. To the extent information, data or materials referred
to in this Technology Transfer Plan are not in the possession of OPKO, or cannot be obtained from
Merck under the Asset Purchase Agreement pursuant to OPKO’s rights thereunder, OPKO will have no
obligations hereunder or in the Agreement to provide or transfer such requested information, data
or materials. Notwithstanding anything herein to the contrary, this Technology Transfer Plan will
not be considered a limitation on, or a narrowing of, the obligations of either Party under the
Agreement.

2. Third Party Support. If any materials or information to be provided under this
Technology Transfer Plan or otherwise under the Agreement are in the possession or control of Merck
& Co., Inc. or any other Third Party who provided services to OPKO, OPKO will use Commercially
Reasonable Efforts to obtain such materials and information from Merck & Co., Inc. or such other
Third Party, as the case may be. In the case of materials and information in the possession or
control of Merck & Co., Inc., “Commercially Reasonable Efforts” under the preceding sentence will
include an obligation on the part of

1

 

OPKO to enforce its rights under the Asset Purchase Agreement. With respect to any provision under
this Technology Transfer Plan requiring OPKO to provide support or information from, or access to,
personnel, OPKO will, at the request of TESARO, arrange for, and facilitate, direct communication
between TESARO and any Third Party who was responsible for generating or implementing the
applicable OPKO Know-how. In particular, and especially with respect to the development,
implementation, transfer, provision or explanation of production manufacturing or formulation
processes for API or drug substance (for which OPKO has no direct knowledge), OPKO will, within ten
(10) days of the Effective Date, send written notice to Merck & Co., Inc. under which OPKO shall
specify TESARO as its designee under Section 2.5 of the Asset Purchase Agreement and authorizing
Merck & Co., Inc. to provide information, support and assistance to TESARO to the same extent as
available to OPKO under Section 2.5 of the Asset Purchase Agreement.

3. Technical Transfer Team. Commencing as of the Effective Date, the Parties will form a
technical transfer team (the “Technical Transfer Team”) comprised of the functions and individuals
identified below to coordinate and oversee the Technology Transfer Services.

	 	 	 	 	 
	OPKO Representatives	 	 	 	 
	Functional Area Represented	 	Role	 	Initial Designee
	Team Leader

	 	Act as primary
interface with
respect to OPKO’s
technology transfer
activities
	 	****
	 
	 	 	 	 
	Regulatory

	 	Implement transfer of
the INDs, IMPDs and
correspondence with
health authorities
	 	****
	 
	 	 	 	 
	Clinical Research

	 	Address questions
related to completed
clinical studies and
those under planning
or in start-up;
oversee transfer of
all clinical data
(including but not
limited to efficacy,
safety, PK, ECG and
pharmacovigilence),
study documentation,
safety reports,
advisory meeting
minutes, and
inventoried
biospecimens
	 	****
	 
	 	 	 	 
	Chemistry, Manufacturing,
and Controls

	 	Oversee transfer of
all pharmaceutical
development data,
technical and
manufacturing
documentation and
inventoried non-GMP
and GMP materials
(Role is inclusive of
API, starting
materials, raw
materials, retains,
and stability
programs in OPKO’s
possession or
control)
	 	****

2

 

	 	 	 	 	 
	OPKO Representatives	 	 	 	 
	Functional Area Represented	 	Role	 	Initial Designee
	Preclinical Research

	 	Address questions
related to completed
nonclinical studies
and those under
planning or in
start-up; oversee
transfer of all
nonclinical data,
study documentation
and inventoried
specimens (Role is
inclusive of all
toxicology,
pharmacology, and
pharmacokinetic and
other preclinical
activities)
	 	****
	 
	 	 	 	 
	Analytical Methods

	 	Oversee transfer of
all clinical,
nonclinical and
pharmaceutical
analytical method
development reports,
final SOPs and
associated reference
standards
	 	****
	 
	 	 	 	 
	Quality

	 	Oversee transfer of
all quality audit and
inspection reports,
quality release
documentation and
other all associated
quality memorandums
in support of
completed and planned
development
activities
	 	****
	 
	 	 	 	 
	General

	 	Oversee transfer of
all agreements, if
any, to be assigned;
transfer of any
general program
information and
commercial
information; and
transfer of project
team meeting minutes
	 	****
	 
	 	 	 	 
	Commercial

	 	Oversee transfer of
all market survey
data and reports
	 	****
	 
	 	 	 	 
	IT (electronic files)

	 	Information transfer
	 	****
	 
	 	 	 	 
	Patents

	 	Oversee transfer of
OPKO Patent Rights
	 	****

3

 

	 	 	 	 	 
	TESSARO Representatives	 	 	 	 
	Functional Area Represented	 	Role	 	Initial Designee
	Team Leader

	 	Act as primary interface
with respect to TESARO
activities under Technology
Transfer Plan
	 	****
	 
	 	 	 	 
	Regulatory

	 	Receipt of IND and other
regulatory docs
	 	****
	 
	 	 	 	 
	Clinical Research

	 	Oversee receipt of
technology related to
clinical development
	 	****
	 
	 	 	 	 
	Chemistry, Manufacturing
and Controls

	 	Oversee receipt and
implementation of
technology related to
TESARO’s CMC efforts and
activities
	 	****
	 
	 	 	 	 
	Preclinical Research

	 	Oversee receipt of
technology transfer related
to preclinical research
activities
	 	****
	 
	 	 	 	 
	Analytical Methods

	 	Act as primary interface
with respect to transfer of
analytical methods
	 	****
	 
	 	 	 	 
	Quality

	 	Act as primary interface
with respect to quality
matters
	 	****
	 
	 	 	 	 
	General

	 	Oversee transfer of all
agreements, if any, to be
assigned; transfer of any
general program information
and commercial information;
and transfer of project
team meeting minutes
	 	****
	 
	 	 	 	 
	Commercial

	 	Act as primary interface
	 	****
	 
	 	 	 	 
	IT

	 	Oversee information transfer
	 	 ****
	 
	 	 	 	 
	Patents

	 	Oversee transfer of OPKO
Patent Rights
	 	****

Either Party may replace its representatives on the Technical Transfer Team, provided that the OPKO
representatives on the Technical Transfer Team will have comparative level of expertise, knowledge
and familiarity with Licensed Product to the listed representative.

The responsibilities of the Technical Transfer Team will include, but not be limited to the
following:

	 	a.	 	Establish a complete and reasonably detailed accounting of all materials,
samples, documents, data, contracts, CD/DVDs and other electronic files that constitute
the technical information embodying the OPKO Know-how, and assist in the complete and
accurate transfer of all items to TESARO and/or any of TESARO’S designees. Provide
reasonable explanation to TESARO and/or any of TESARO’S designees how items are
related, filed, and what supportive software programs are required to enable any of the
electronic files and data sets.

	 	b.	 	Facilitate the reasonable assistance of OPKO’s then current employees and
reasonable access to its other internal resources and to Third Parties who generated or
possess or control OPKO Know-how, to provide TESARO and/or any of TESARO’s designees
with a reasonable level of technical assistance and consultation in connection with the transfer of the OPKO
Know-

4

 

	 	 	 	how to TESARO and/or any of TESARO’S designees, including the provision and
explanation, upon request, to TESARO and/or any of its designees of all relevant
technology, materials, reports, data, documents and materials describing or embodying the
OPKO Know How.

	 	c.	 	Facilitate the provision and explanation to TESARO and/or any of TESARO’s
designees, of all production outlines, materials sourcing, specifications, and testing,
standard testing requirements (release, in process, characterization and stability),
standard operating procedures (e.g. analytical testing, equipment cleaning),
technology, documents (e.g. Certificates of Analysis, Specifications, technical
reports, development reports and memorandums, Material Safety Data Sheets,
qualification and validation reports, master manufacturing batch records, executed
batch records), data, notebooks or other information that constitutes the OPKO Know-how
for manufacture of starting materials, API and Licensed Product and intermediates of
any of the foregoing.

	 	d.	 	Facilitate the development and implementation of a technology transfer protocol
for the transfer of the manufacturing process (including in-process methods) and
formulation process for API, final drug substance and final drug product for the
Licensed Products to TESARO and/or its designees.

	 	e.	 	Implement transfer of clinical drug assay methodologies and know-how for the
Licensed Products, including parent and metabolites, inventoried samples and completed
or partial analyses (e.g. toxicokinetics, pharmarcokinetics) to TESARO and/or its
designees.

	 	f.	 	Implement transfer of all regulatory filings and sponsor of the INDs as
promptly as practicable following the Effective Date.

	 	g.	 	Establish a plan for and implement transfer of all electronic data and
confirmation of data integrity and completeness and accuracy following transfer.

	 	h.	 	Introduce TESARO and/or any of TESARO’S designees, at TESARO’s request, to
consultants, contractors or other vendors currently engaged or involved in future
planning activities related to the Licensed Products.

	 	i.	 	Implement transfer to TESARO’s designee all patent files related to OPKO Patent
Rights in accordance with Section 5.1 of the License Agreement as necessary to allow
TESARO to assume prosecution and maintenance of such OPKO Patent Rights without any
loss of rights in the transition.

4. Costs. **** associated with technology transfer activities to be provided under this
Technology Transfer Plan, including, but not limited to the ****. To the extent any Technology
Transfer Services to be provided under this Section require external resources, including
consultation with Third Party consultants, **** of such external resources, provided that such
activities and costs are expressly set forth in this Technology Transfer Plan or are otherwise
approved in writing in advance by ****.

Part B -Activities.

The activities to be performed by OPKO under this Technology Transfer Plan, by technical area, are
as follows:

5

 

	 	 	 	 	 	 	 
	Function	 	Service to be Provided by OPKO	 	Comments
	Technical Operations

	 	OPKO shall provide the reasonable
assistance of OPKO’s then current
employees and reasonable access to its
other internal resources to provide
TESARO (and/or TESARO’s designees)with
a reasonable level of technical
assistance and consultation in
connection with the transfer and
implementation of OPKO Know How to
TESARO, including the provision and
explanation, on request, to TESARO and
its Affiliates of all technology,
electronic files, materials, reports,
data, documents, standard testing
requirements, standard operating
procedures, notebooks and materials
describing or embodying the OPKO Know
How. TESARO will be given the
reasonable opportunity to meet with,
and receive assistance and services
of, the OPKO’s knowledgeable personnel
in connection with TESARO gaining
competent knowledge of the contents of
the OPKO Know How and OPKO’s
activities related to Licensed
Product. As stated above, OPKO
personnel were not involved in the
discovery, manufacture, formulation,
sourcing, research or development of
the Licensed Product or any API and
have only gained information relating
to the Licensed Product in connection
with the Asset Purchase Agreement and
its research and development efforts
undertaken since the consummation of
the Asset Purchase Agreement in
November 2009, much of which has been
undertaken through the assistance of
Third Party consultants. OPKO intended
to use Third Parties for, and
therefore had not engaged in, the
development or formulation of dosage
forms or the manufacture of drug
product or API in support of the
clinical development program or
commercialization of Licensed Product.
OPKO will seek the assistance of Merck
& Co., Inc. to the extent such support
continues to be available under
Section 2.5 of the Asset Purchase
Agreement to provide the Technical
Operations Support, including
discussion with appropriate Merck &
Co., Inc. personnel, as outlined in
the Technical Transfer Services
included as Schedule 2.5 to the Asset
	 
	 	 
	 

	 	Purchase Agreement, to:

	 	 	 	 	 	 	 

	 

	 	•
	 	Identify the identity and location
of all archived development samples
for transfer to TESARO and/or TESARO
designees
	 	 

6

 

	 	 	 	 	 	 	 
	Function	 	Service to be Provided by OPKO	 	Comments
	 

	 	•
	 	Discuss regulatory files and
correspondence with regulatory
authorities, including an outline of
open obligations	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Discuss the rationale of Phase 3
dose and formulation and clinical
utility of the current IV formulation.
Personnel shall also identify the
identity and location of all archived
study samples for transfer to TESARO
and/or TESARO designees.	 	 
	 
	 	 	 	 	 	 
	 

	 	-
	 	Discuss key completed toxicology
studies including but not limited to
carcinogenicity studies, oral chronic
toxicology, development and
reproductivity studies, and IV
studies, as well as safety
pharmacology studies,. Personnel shall
also identify the identity and
location of all archived study samples
for transfer to TESARO and/or TESARO
designees.	 	 
	 
	 	 	 	 	 	 
	 

	 	-
	 	Discuss past and current research
and development efforts specific for
the Licensed Product, including the
status of study reports, data and
analyses for each study completed as
well as available biospecimens for
transfer to TESARO and/or TESARO
designees.	 	 
	 
	 	 	 	 	 	 
	 

	 	-
	 	Assist in the transfer of the
current bioanalytical methods to
TESARO and/or any of TESARO’S
designees, as well as available
biospecimens for transfer to TESARO
and/or TESARO designees.	 	 
	 
	 	 	 	 	 	 
	 

	 	-
	 	Provide relevant information
particularly audit reports related to
the Licensed Products to ensure all
studies were conducted in accordance
with GLP, GMP & GCP, to provide
certification that appropriate storage
conditions for all inventoried
materials has been met at all
locations of storage and during all
periods of transit, and to provide
appropriate documentation to support
the chain of custody to OPKO and then
to TESARO and/or any of TESARO’S
designees.	 	 
	 
	 	 	 	 	 	 
	 

	 	-
	 	IT personnel to discuss format,
systems utilized and transfer of
nonclinical, clinical and CMC data.	 	 
	 
	 	 	 	 	 	 
	 

	 	(Note: all such meetings and
communication will be coordinated
through the Team Leaders).	 	 

7

 

	 	 	 	 	 	 	 
	Function	 	Service to be Provided by OPKO	 	Comments
	Regulatory Services

	 	OPKO and TESARO shall establish a
prompt communication and interaction
process to ensure the orderly transfer
of all regulatory filings related to
Licensed Product (“Regulatory
Filings”) as promptly as practicable
following the Effective Date. Within
thirty (30) days following the
Effective Date, or as otherwise agreed
by the Parties, the Parties shall file
with the FDA and any other applicable
Regulatory Authority, such information
as may be required to transfer the
Regulatory Filings from OPKO to
TESARO. Both OPKO and TESARO agree to
use Commercially Reasonable Efforts to
take any actions required by the FDA
or other applicable Regulatory
Authority to affect the transfer of
the Regulatory Filings to TESARO.
	 	 
	 
	 	 	 	 
	Manufacturing Process

	 	Seek the assistance of Merck & Co.,
Inc. under Section 2.5 of the Asset
Purchase Agreement towards the
development and implementation of a
technology transfer protocol for the
transfer of the manufacturing process
(including in-process methods) and
formulation process for API and
formulated drug substance for the
Licensed Product to TESARO and/or its
designees.	 	 
	 
	 	 	 	 
	 

	 	Seek the assistance of Merck & Co.,
Inc. under Section 2.5 of the Asset
Purchase Agreement to provide training
to TESARO and/or TESARO’S designees in
the manufacturing and testing of the
Licensed Product.	 	 
	 
	 	 	 	 
	Intellectual Property

	 	OPKO shall transfer to TESARO
responsibility for filing and
prosecuting any patent applications
and patents included in the OPKO
Patent Rights and maintaining any
patents included in the OPKO Patent
Rights, and shall (a) execute any
legal documents, such for recordation
in any U.S. or foreign offices or
agencies, to evidence TESARO’s control
of prosecution and maintenance of the
applicable OPKO Patent Rights, (b)
performing all reasonable actions that
may be necessary or useful to complete
the assignment to TESARO of such
responsibilities, and (c) provide
reasonable cooperation to TESARO in
connection with such activities in
accordance with Section 5.1 of the
Exclusive License Agreement.	 	 

Part C-Technology Transfer Schedule.

The schedule for performance of certain specified Technology Transfer Services and form of transfer
of certain OPKO Know-how are set forth in the Table I below (the “Technology Transfer Schedule”).
The 

8

 

Parties’ representatives comprising the Technical Transfer Team will have the ability, by
mutual written agreement of the Team Leaders from both Parties, to modify in writing the Technology
Transfer Schedule, provided that no such modification shall amend the terms of the Agreement other
than to specifically amend the timelines and format set forth in the Technology Transfer Schedule
unless both Parties agree in writing to amend this Agreement in accordance with Section 11.7 of the
Agreement.

9

 

Table 1

Technology Transfer Schedule

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	Records related to Licensed
Product in the Data Room

	 	OPKO will provide within
**** calendar days of the
Effective Date
	 	To be delivered in
such form as
currently exists
via commercial
carrier.
	 	Will contain the
entire contents of
the data room that
was available to
TESARO during due
diligence.
	 
	 	 	 	 	 	 
	IND 77,044

	 	OPKO will provide within
**** calendar days of the
Effective Date
	 	To be delivered on
CD or DVD via
commercial carrier.
	 	**** which shall,
in no event, be
greater than 60
calendar days after
the Effective Date.
	 
	 	 	 	 	 	 
	IND 72,754

	 	OPKO will provide within
**** calendar days of the
Effective Date
	 	To be delivered on
CD or DVD via
commercial carrier.
	 	**** which shall,
in no event, be
greater than 60
calendar days after
the Effective Date.
	 
	 	 	 	 	 	 
	Regulatory Documents
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
days of the Effective Date.
	 	Hard copy (and
electronic as may
be available) of
all correspondence
to and from
regulatory agencies
and attachments
arranged in
chronological
order. The original
IND and IMPD to be
delivered on CD or
DVD.	 	 
	 
	 	 	 	 	 	 
	Pharmacovigilance
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be transferred to TESARO
within **** calendar days
of the Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier
	 	****
	 
	 	 	 	 	 	 
	Discovery Biology
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
days of the Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier
	 	If hard copy
signatures were
obtained for final
report, the
original signed
report should be
provided. Should
include any draft
reports that may be
in process.

10

 

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	Drug Metabolism &
Pharmacokinetics
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	•     To be delivered within
**** days of the Effective
Date.

•
	 	•     To be delivered
on CD or DVD via
commercial carrier

	 	If hard copy
signatures were
obtained for final
report, the
original signed
report should be
provided. Should
include any draft
reports that may be
in process, as well
as associated raw
data analyses.
	 
	 	 	 	 	 	 
	Drug Safety
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	•     To be delivered within
**** days of the Effective
Date.

	 	•     To be delivered
on CD or DVD via
commercial carrier

	 	If hard copy
signatures were
obtained for final
report, the
original signed
report should be
provided. Should
include any draft
reports that may be
in process, as well
as associated raw
data analyses.
	 
	 	 	 	 	 	 
	****

	 	•     To be delivered within
**** days of the Effective
Date.

	 	•     To be delivered
on CD or DVD via
commercial carrier

	 	If hard copy
signatures were
obtained for final
report, the
original signed
report should be
provided. Should
include any draft
reports that may be
in process, as well
as associated raw
data analyses.

11

 

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	• ****

	 	To be delivered within ****
days of the Effective Date.
	 	To be delivered on
CD or DVD as electronic transport file via commercial carrier
	 	Software that may be required to
access the data will need to be specified by OPKO.
	 
	 	 	 	 	 	 
	Early Clinical Research &
Experimental Medicine
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	•     To be delivered within
**** days of the Effective
Date.

	 	•     To be delivered
on CD or DVD via
commercial carrier

	 	If hard copy
signatures were
obtained for final
report, the
original signed
report should be
provided. Should
include any draft
reports that may be
in process, as well
as associated raw
data analyses.
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
days of the Effective Date.
	 	To be delivered on
CD or DVD as a SAS
transport file via
commercial carrier
	 	Software that may
be required to
access the data
will need to be
specified by OPKO.

12

 

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	Clinical Research
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	****

-     To be delivered within
**** calendar days of the
Effective Date

****

•     To be delivered within
**** calendar days of the
Effective Date

****

•     To be delivered within
**** calendar days of the
Effective Date.

	 	•     To be delivered
on CD or DVD via
commercial carrier

•     Delivery
conditions to be
specified per
sample requirements

	 	If hard copy
signatures were
obtained for final
report, the
original signed
report should be
provided. Should
include any draft
reports that may be
in process, as well
as associated raw
data analyses.
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD as a SAS
transport file via
commercial carrier
	 	Software that may
be required to
access the data
will need to be
specified by OPKO.
	 
	 	 	 	 	 	 
	Chemistry, Manufacturing, and
Controls
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier
	 	If hard copy
signatures were
obtained for final
report, the
original signed
report should be
provided. Should
include any draft
reports that may be
in process, as well
as associated raw
data analyses.

13

 

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier
	 	****
	 
	 	 	 	 	 	 
	•
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Occupational & Environmental 

Toxicology
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	Market Research

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 

14

 

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	• ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD via
commercial carrier	 	 
	 
	 	 	 	 	 	 
	Physical chemical inventory
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	API ****

	 	To be delivered within ****
calendar days of TESARO
providing OPKO with the
shipping instructions and
location, or as otherwise
agreed by the parties.
	 	OPKO will ship via
commercial carrier
under appropriate
sample storage and
control conditions
per sample
requirements
	 	****

15

 

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	****

	 	To be delivered within ****
calendar days of TESARO
providing OPKO with the
shipping instructions and
location, or as otherwise
agreed by the parties.
	 	OPKO will ship via
commercial carrier
under appropriate
sample storage and
control conditions
per sample
requirements	 	 
	 
	 	 	 	 	 	 
	****

	 	To be delivered within ****
calendar days of TESARO
providing OPKO with the
shipping instructions and
location, or as otherwise
agreed by the parties.
	 	OPKO will ship via
commercial carrier
under appropriate
sample storage and
control conditions
per sample
requirements	 	 
	 
	 	 	 	 	 	 
	****

	 	To be delivered within ****
calendar days of TESARO
providing OPKO with the
shipping instructions and
location, or as otherwise
agreed by the parties.
	 	OPKO will ship via
commercial carrier
under appropriate
sample storage and
control conditions
per sample
requirements	 	 
	 
	 	 	 	 	 	 
	****

	 	To be delivered within ****
calendar days of TESARO
providing OPKO with the
shipping instructions and
location, or as otherwise
agreed by the parties.
	 	OPKO will ship via
commercial carrier
under appropriate
sample storage and
control conditions
per sample
requirements	 	 
	 
	 	 	 	 	 	 
	****

	 	To be delivered within ****
calendar days of TESARO
providing OPKO with the
shipping instructions and
location, or as otherwise
agreed by the parties.
	 	OPKO will ship via
commercial carrier
under appropriate
sample storage and
control conditions
per sample
requirements	 	 

16

 

	 	 	 	 	 	 	 
	 	 	Delivery Time (or such later	 	 	 	 
	OPKO Know-how	 	time as TESARO may request)	 	Delivery Method	 	Discussion/Comments
	****

	 	To be delivered within ****
calendar days of TESARO
providing OPKO with the
shipping instructions and
location, or as otherwise
agreed by the parties.
	 	OPKO will ship via
commercial carrier
under appropriate
sample storage and
control conditions
per sample
requirements	 	 
	 
	 	 	 	 	 	 
	Samples
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	****

	 	At TESARO’s direction, to
be provided with **** days
of the Effective Date or
retained by OPKO
	 	Delivery conditions
to be specified per
sample requirements	 	 
	 
	 	 	 	 	 	 
	OPKO Patent Rights
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	All **** art (whether ****
prosecution counsel relating
to any or all OPKO Patent
Rights, all **** tile each
issued patent under the OPKO
Patent Rights).

	 	Transfer of the patent
portfolio will occur within
**** calendar days of the
Effective Date
	 	To be delivered on
CD or DVD or hard
copy via commercial
carrier	 	 
	 
	 	 	 	 	 	 
	Notebooks or all other relevant
data or material (even draft
form).
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Originals or copies of ****

	 	To be delivered within ****
calendar days of the
Effective Date.
	 	To be delivered on
CD or DVD or hard
copy via commercial
carrier
	 	Materials will need
to be redacted for
information not
relevant to the
OPKO Know How.

17

 

Exhibit E

Form of Press Release

[Attached]

 

 

FOR IMMEDIATE RELEASE

TESARO and OPKO Health Sign Exclusive License Agreement for Rolapitant

	 	•	 	Rolapitant is a Phase III-ready neurokinin-l (NK-l) receptor antagonist in development
for chemotherapy induced nausea and vomiting (CINV)
	 
	 	•	 	TESARO responsible for worldwide development and commercialization of rolapitant

Boston, MA and Miami, FL -December 13, 2010 -TESARO, Inc. and OPKO Health, Inc. (NYSE Amex:OPK),
today announced that they have signed a definitive agreement granting TESARO exclusive rights to
the development, manufacture, commercialization and distribution of rolapitant and a related
compound. Rolapitant is a potent and selective neurokinin-1 (NK-1) receptor antagonist with an
extended plasma half-life that has the potential to improve the management of nausea and vomiting
experienced by cancer patients undergoing chemotherapy. Rolapitant, which is Phase III ready,
demonstrated promising efficacy in Phase II testing for prevention of nausea and vomiting in
patients undergoing highly emetogenic chemotherapy.

Under the terms of the agreement, OPKO will acquire an approximately 10% equity investment in
TESARO. OPKO is eligible for payments of up to over $120 million, including an up-front payment and
additional payments based upon achievement of specified regulatory and commercialization
milestones; in addition, OPKO will receive tiered royalties on sales. Under the agreement, OPKO and
TESARO will share future profits from the commercialization of licensed products in Japan and OPKO
will have an option to market the products in Latin America.

“TESARO is very pleased to announce this agreement with OPKO and to advance the development of this
important product candidate, rolapitant,” said Lonnie Moulder, Chief Executive Officer of TESARO.
“Our leadership team has a deep understanding of the unmet need that still exists in oncology
supportive care, given our successful commercialization of the market-leading therapy for CINV
prevention at the helm of MGI PHARMA. We believe that rolapitant is a differentiated product with
great potential to help cancer patients undergoing chemotherapy.”

 

 

TESARO was co-founded by former executives of MGI PHARMA, an oncology and acute-care focused
specialty biopharmaceutical company that Eisai Co., Ltd. acquired in 2008 for $3.9 billion. While
at MGI PHARMA, TESARO executives led the clinical development and commercialization of numerous
drugs, including commercialization of Aloxi® (palonosetron HCI), the leading drug in the 5-HT3
receptor antagonist class for prevention of CINV.

“We are pleased to complete this important transaction and look forward to seeing rolapitant
progress towards registration in key markets throughout the world,” said Phillip Frost, M.D.,
OPKO’s Chairman and Chief Executive Officer. “The TESARO team’s successful experience with the
development and commercialization of oncology supportive care products will be of special benefit
in making rolapitant a commercial success.”

About Rolapitant:

Rolapitant, a potent and selective neurokinin-1 (NK-1) receptor antagonist with an extended plasma
half-life, has completed Phase II clinical testing for prevention of chemotherapy induced nausea
and vomiting indications. NK-1 receptors are highly concentrated in the brain and bind substance P,
a neurokinin that elicits an emetogenic response. Activation ofNK-1 receptors plays a central role
in nausea and vomiting induced by emetogenic cancer chemotherapy.

About Chemotherapy Induced Nausea and Vomiting (CINV):

CINV is estimated to afflict over 70% of cancer patients undergoing chemotherapy and, if not
prevented, may possibly result in a delay or even discontinuation of chemotherapy treatment. NK-1
receptor antagonists have been demonstrated to improve the management of nausea and vomiting
experienced by cancer patients undergoing chemotherapy.

About OPKO Health, Inc.

Miami-based OPKO is a specialty healthcare company involved in the discovery, development, and
commercialization of proprietary pharmaceutical products, medical devices, vaccines, diagnostic
technologies and imaging systems. Initially focused on the treatment and management of ophthalmic
diseases, OPKO has since expanded into other areas of major unmet medical need. For more
information, visit www.opko.com.

 

 

About TESARO, INC.

Founded in 2010, TESARO is a privately held oncology-focused biopharmaceutical company dedicated to
improving the lives of cancer patients by developing and commercializing safer and more effective
therapeutics. Earlier this year, TESARO secured $60 million in start-up funding from New Enterprise
Associates (NEA) and the TESARO founders. TESARO is headquartered in Boston, Massachusetts. For
more information, visit www.tesarobio.com.

For Further Information Contact:

	 	 	 
	For TESARO	 	For OPKO Health
	Richard Rodgers

	 	Steve Rubin
	EVP & Chief Financial Officer

	 	EVP -Administration
	+1.339.970.0903

	 	+1.305.575.6015
	rrodgers@tesarobio.com

	 	srubin@opko.com

This press release contains “forward-looking statements,” as that term is defined under the
Private Securities Litigation Reform Act of1995 (PSLRA), which statements may be identified by
words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipates,” “believes,”
“should,” “intends,” “estimates,” and other words of similar meaning, including statements
regarding product development efforts, including the ability to develop and commercialize rolapitant for
chemotherapy-induced nausea and vomiting, the ability to obtain registration for rolapitant in
key markets and the timing thereof, and the potential for rolapitant to help cancer patients
undergoing chemotherapy, as well as other non-historical statements about expectations, beliefs
or intentions regarding business, technologies and products, financial condition, strategies or
prospects. These forward-looking statements are not guarantees of OPKO’s or TESARO’s future
performance and involve a number of risks and uncertainties that may cause actual results to
differ materially from the results discussed in these statements. Many factors could cause either
Company’s actual activities or results to differ materially from the activities and results
anticipated in forward-looking statements. These factors include, an inability to successfully
develop and commercialize rolapitant and the NK-1 program assets, that rolapitant may not
achieve the expected results or effectiveness and may not generate data that would support the
approval or marketing of this product, that others may develop products, including other NK-1
receptor antagonists, which are superior to rolapitant, and that the acquired compounds may not
have advantages over presently marketed products. In addition, forward-looking statements may
also be adversely affected by risks inherent in funding, developing and obtaining regulatory
approvals of new, commercially-viable and competitive products and treatments, general market
factors, competitive product development, product availability, federal and state regulations and
legislation, the regulatory process for new products and indications, manufacturing issues that
may arise, patent positions and litigation, among other factors. The forward-looking statements
contained in this press release speak only as of the date the statements were made, and OPKO
and TESARO do not undertake any obligation to update forward-looking statements. The
Companies’ intend that all forward-looking statements be subject to the safe-harbor provisions of
the PSLRA.

###

 

 

Exhibit F

Material Agreements

Asset Purchase Agreement, dated October 12,2009, by and among Schering Corporation and OPKO Health,
Inc., as amended by letter agreement dated June 29, 2010

Clinical Research Services Agreement, dated October 7,2010, by and among OPKO Health, Inc. and
****.

Clinical Research Services Agreement, dated October 7, 2010, by and among OPKO Health, Inc. and
****.

Clinical Research Services Agreement, dated October 7, 2010, by and among OPKO Health, Inc. and
****.

****

Cost Proposal Regarding Retention of Radiolabeled and Stable Isotope Labeled Test Articles, dated
June 7, 2010, by and among OPKO Health, Inc. and ****.

Consulting Agreement, dated October 9, 2009, as amended on October 15,2010, by and among OPKO
Health, Inc. and ****.

Consulting Agreement, dated October 9,2009, as amended on October 15,2010, by and among OPKO
Health, Inc. and ****.

Consulting Agreement, dated November 30,2009, by and among OPKO Health, Inc. and ****.

Consulting Agreement, dated February 11,2010, by and among OPKO Health, Inc. and ****.

Consulting Agreement, dated September 15,2010, by and among OPKO Health, Inc. and ****.

Consulting Agreement, dated October 11, 2010, by and among OPKO Health, Inc. and ****.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]