Document:

exv10w1

 

Exhibit 10.1

 

FORM OF AMENDED AND RESTATED CREDIT AGREEMENT

dated as of

August 10, 2007

among

NORTHROP GRUMMAN CORPORATION

The Lenders Party Hereto

JPMORGAN CHASE BANK, N.A.,

as Payment Agent

JPMORGAN CHASE BANK, N.A. and

CREDIT SUISSE

as Administrative Agents

CITICORP USA, INC.,

as Syndication Agent

DEUTSCHE BANK SECURITIES INC. and

THE ROYAL BANK OF SCOTLAND PLC,

as Documentation Agents

and

BNP PARIBAS

as Co-Documentation Agent

 

J.P. MORGAN SECURITIES INC.,

as Lead Arranger and Sole Bookrunner

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I

	 	 	 
	 	 	 	 
	Definitions

	 	 	 
	 	 	 	 
	SECTION 1.01.	 	Defined Terms
	 	 	1	 
	SECTION 1.02.	 	Classification of Loans and Borrowings
	 	 	16	 
	SECTION 1.03.	 	Terms Generally
	 	 	16	 
	SECTION 1.04.	 	Accounting Terms; GAAP
	 	 	16	 
	SECTION 1.05.	 	Currency Translation
	 	 	17	 
	SECTION 1.06.	 	Unrestricted Subsidiaries
	 	 	17	 
	 	 	 
	 	 	 	 
	ARTICLE II

	 	 	 
	 	 	 	 
	The Credits

	 	 	 
	 	 	 	 
	SECTION 2.01.	 	Commitments
	 	 	17	 
	SECTION 2.02.	 	Loans and Borrowings
	 	 	18	 
	SECTION 2.03.	 	Requests for Revolving Borrowings
	 	 	18	 
	SECTION 2.04.	 	Competitive Bid Procedure
	 	 	19	 
	SECTION 2.05.	 	Swingline Loans
	 	 	21	 
	SECTION 2.06.	 	Letters of Credit
	 	 	22	 
	SECTION 2.07.	 	Funding of Borrowings
	 	 	28	 
	SECTION 2.08.	 	Interest Elections
	 	 	29	 
	SECTION 2.09.	 	Termination, Reduction and Increase of Commitments
	 	 	30	 
	SECTION 2.10.	 	Repayment of Loans; Evidence of Debt
	 	 	32	 
	SECTION 2.11.	 	Prepayment of Loans
	 	 	33	 
	SECTION 2.12.	 	Fees
	 	 	34	 
	SECTION 2.13.	 	Interest
	 	 	35	 
	SECTION 2.14.	 	Alternate Rate of Interest
	 	 	36	 
	SECTION 2.15.	 	Increased Costs
	 	 	36	 
	SECTION 2.16.	 	Break Funding Payments
	 	 	38	 
	SECTION 2.17.	 	Taxes
	 	 	39	 
	SECTION 2.18.	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	40	 
	SECTION 2.19.	 	Mitigation Obligations; Replacement of Lenders
	 	 	41	 
	 	 	 
	 	 	 	 
	ARTICLE III

	 	 	 
	 	 	 	 
	Representations and Warranties

	 	 	 
	 	 	 	 
	SECTION 3.01.	 	Organization; Powers
	 	 	42	 

 

2

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 3.02.	 	Authorization; Enforceability
	 	 	42	 
	SECTION 3.03.	 	Governmental Approvals; No Conflicts
	 	 	43	 
	SECTION 3.04.	 	Financial Condition; No Material Adverse Change
	 	 	43	 
	SECTION 3.05.	 	Properties
	 	 	43	 
	SECTION 3.06.	 	Litigation and Environmental Matters
	 	 	43	 
	SECTION 3.07.	 	No Defaults
	 	 	44	 
	SECTION 3.08.	 	Investment and Holding Company Status
	 	 	44	 
	SECTION 3.09.	 	Taxes
	 	 	44	 
	SECTION 3.10.	 	ERISA
	 	 	44	 
	SECTION 3.11.	 	Disclosure
	 	 	45	 
	SECTION 3.12.	 	Use of Proceeds
	 	 	45	 
	SECTION 3.13.	 	Margin Stock
	 	 	45	 
	SECTION 3.14.	 	Pari Passu Obligations
	 	 	45	 
	 	 	 
	 	 	 	 
	ARTICLE IV
	 	 	 
	 	 	 	 
	Conditions

	 	 	 
	 	 	 	 
	SECTION 4.01.	 	Effective Date
	 	 	45	 
	SECTION 4.02.	 	Each Credit Event
	 	 	46	 
	 	 	 
	 	 	 	 
	ARTICLE V

	 	 	 
	 	 	 	 
	Affirmative Covenants

	 	 	 
	 	 	 	 
	SECTION 5.01.	 	Financial Statements and Other Information
	 	 	47	 
	SECTION 5.02.	 	Notices of Material Events
	 	 	48	 
	SECTION 5.03.	 	Existence; Conduct of Business
	 	 	48	 
	SECTION 5.04.	 	Payment of Obligations
	 	 	49	 
	SECTION 5.05.	 	Insurance
	 	 	49	 
	SECTION 5.06.	 	Inspection Rights
	 	 	49	 
	SECTION 5.07.	 	Compliance with Laws
	 	 	49	 
	SECTION 5.08.	 	Incorporation by Reference
	 	 	49	 
	 	 	 
	 	 	 	 
	ARTICLE VI

	 	 	 
	 	 	 	 
	Negative Covenants

	 	 	 
	 	 	 	 
	SECTION 6.01.	 	Liens
	 	 	50	 
	SECTION 6.02.	 	Fundamental Changes
	 	 	52	 
	SECTION 6.03.	 	Consolidated Debt to Capitalization Ratio
	 	 	52	 

 

3

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE VII

	 	 	 
	 	 	 	 
	Events of Default

	 	 	 
	 	 	 	 
	ARTICLE VIII

	 	 	 
	 	 	 	 
	The Payment Agent

	 	 	 
	 	 	 	 
	ARTICLE IX

	 	 	 
	 	 	 	 
	Guarantee

	 	 	 
	 	 	 	 
	SECTION 9.01.	 	Guarantee
	 	 	57	 
	SECTION 9.02.	 	Release of Guarantee
	 	 	59	 
	 	 	 
	 	 	 	 
	ARTICLE X

	 	 	 
	 	 	 	 
	Miscellaneous

	 	 	 
	 	 	 	 
	SECTION 10.01.	 	Notices
	 	 	59	 
	SECTION 10.02.	 	Waivers; Amendments
	 	 	60	 
	SECTION 10.03.	 	Expenses; Indemnity; Damage Waiver
	 	 	61	 
	SECTION 10.04.	 	Successors and Assigns
	 	 	62	 
	SECTION 10.05.	 	Survival
	 	 	65	 
	SECTION 10.06.	 	Counterparts; Integration; Effectiveness
	 	 	66	 
	SECTION 10.07.	 	Severability
	 	 	66	 
	SECTION 10.08.	 	Governing Law; Jurisdiction; Consent to Service of Process
	 	 	66	 
	SECTION 10.09.	 	WAIVER OF JURY TRIAL
	 	 	67	 
	SECTION 10.10.	 	Headings
	 	 	67	 
	SECTION 10.11.	 	Confidentiality
	 	 	67	 
	SECTION 10.12.	 	Interest Rate Limitation
	 	 	68	 
	SECTION 10.13.	 	Release of Guarantees
	 	 	68	 
	SECTION 10.14.	 	Conversion of Currencies
	 	 	69	 
	SECTION 10.15.	 	USA Patriot Act Notice
	 	 	69	 
	SECTION 10.16.	 	No Fiduciary Relationship
	 	 	69	 

 

4

	 	 	 	 	 
	SCHEDULES:	 	 
	 
	 	 	 	 
	Schedule 2.01

	 	—
	 	Commitments
	Schedule 2.06

	 	—
	 	LC Commitment Schedule
	 
	 	 	 	 
	EXHIBITS:	 	 
	 
	 	 	 	 
	Exhibit A

	 	—
	 	Form of Assignment and Assumption
	Exhibit B-1

	 	—
	 	Form of Opinion of Sheppard, Mullin, Richter & Hampton LLP, Borrower’s Counsel
	Exhibit B-2

	 	—
	 	Form of Opinion of Stephen D. Yslas, Esq., Borrower’s Counsel
	Exhibit C

	 	—
	 	Confidentiality Agreement

 

     AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 10, 2007
among NORTHROP GRUMMAN CORPORATION, a Delaware corporation, as Borrower;
NORTHROP GRUMMAN SYSTEMS CORPORATION, a Delaware corporation and NORTHROP
GRUMMAN SPACE & MISSION SYSTEMS CORP., an Ohio corporation, as Guarantors;
the LENDERS party hereto; JPMORGAN CHASE BANK, N.A., as Payment Agent, an
Issuing Bank, Swingline Lender and Administrative Agent; CREDIT SUISSE as
Administrative Agent; CITICORP USA, INC. as Syndication Agent; DEUTSCHE
BANK SECURITIES INC. and THE ROYAL BANK OF SCOTLAND PLC as Documentation
Agents; and BNP PARIBAS as Co-Documentation Agent.

     The parties hereto agree that the Existing Credit Agreement shall be amended and restated to
read in its entirety as set forth herein:

ARTICLE I

Definitions

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

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

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

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

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

          “Agreement Currency” has the meaning assigned to such term in Section 10.14(b).

          “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 and (b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and

 

2

including the effective date of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

          “Applicable Creditor” has the meaning assigned to such term in Section 10.14(b).

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

          “Applicable Rate” means, for any day, with respect to any Eurodollar Revolving Loan,
or with respect to the facility fees or letter of credit participation fees payable hereunder, as
the case may be, the applicable rate per annum set forth below under the caption “Eurodollar
Spread”, “Facility Fee Rate”, “Financial LC Participation Fee” or “Performance LC Participation
Fee”, as the case may be, based upon the ratings by S&P, Moody’s and Fitch, respectively,
applicable on such date to the Index Debt and the Utilization Percentage on such date:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Eurodollar Spread
	 	 	 	 	 	 	Eurodollar Spread	 	if Utilization
	Category	 	Index Debt Ratings:	 	Facility Fee	 	if
Utilization Percentage <50%	 	Percentage >50%
	Category 1
	 	A/A2/A or higher
	 	0.050%
	 	0.150%
	 	0.175%
	Category 2
	 	A-/A3/A-
	 	0.060%
	 	0.190%
	 	0.240%
	Category 3
	 	BBB+/Baa1/BBB+
	 	0.070%
	 	0.280%
	 	0.330%
	Category 4
	 	BBB/Baa2/BBB
	 	0.100%
	 	0.350%
	 	0.400%
	Category 5
	 	BBB-/Baa3/BBB- or lower
	 	0.125%
	 	0.425%
	 	0.475%

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Financial LC	 	Financial LC	 	Performance LC	 	Performance LC
	 	 	 	 	Participation Fee	 	Participation Fee	 	Participation Fee	 	Participation Fee
	 	 	 	 	if Utilization	 	if Utilization	 	if Utilization	 	if Utilization
	Category	 	Index Debt Ratings:	 	Percentage
<50%	 	Percentage >50%	 	Percentage <50%	 	Percentage >50%
	Category 1
	 	A/A2/A or higher
	 	0.150%
	 	0.175%
	 	0.11875%
	 	0.14375%
	Category 2
	 	A-/A3/A-
	 	0.190%
	 	0.240%
	 	   0.165%
	 	   0.215%
	Category 3
	 	BBB+/Baa1/BBB+
	 	0.280%
	 	0.330%
	 	   0.230%
	 	   0.280%
	Category 4
	 	BBB/Baa2/BBB
	 	0.350%
	 	0.400%
	 	   0.275%
	 	   0.325%
	Category 5
	 	BBB-/Baa3/BBB- or lower
	 	0.425%
	 	0.475%
	 	   0.325%
	 	   0.375%

          For purposes of the foregoing, (i) if any of S&P, Moody’s or Fitch shall not have in
effect a rating for the Index Debt (other than by reason of any of the circumstances referred to in
the last sentence of this definition), then such rating agency shall be deemed to have established
a rating in Category 5; (ii) if the ratings established or deemed to have been established by S&P,
Moody’s and Fitch for the Index Debt shall fall within different Categories, the Applicable Rate
shall be based on the higher of the

 

3

ratings provided by S&P or Moody’s unless such ratings differ by two or more Categories, in
which case the Applicable Rate shall be determined by reference to the intermediate Category (or if
there are multiple intermediate Categories, the higher of such intermediate Categories); and (iii)
if the ratings established or deemed to have been established by S&P, Moody’s and Fitch for the
Index Debt shall be changed (other than as a result of a change in the rating system of S&P,
Moody’s or Fitch), such change shall be effective as of the date on which it is first announced by
the applicable rating agency, irrespective of when notice of such change shall have been furnished
by the Borrower to the Payment Agent and the Lenders pursuant to Section 5.01 or otherwise. Each
change in the Applicable Rate shall apply during the period commencing on the effective date of
such change and ending on the date immediately preceding the effective date of the next such
change. If the rating system of S&P, Moody’s or Fitch shall change, or if any such rating agency
shall cease to be in the business of rating corporate debt obligations, the Borrower and the
Lenders shall negotiate in good faith to amend this definition to reflect such changed rating
system or the unavailability of ratings from such rating agency and, pending the effectiveness of
any such amendment, the Applicable Rate shall be determined by reference to the rating of such
rating agency most recently in effect prior to such change or cessation.

          “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, and which
has the operational capability to administer revolving credits of the type contemplated by this
Agreement, or which has an arrangement with the related Lender for the performance of its
obligations hereunder.

          “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 10.04),
and accepted by the Payment Agent, in the form of Exhibit A or any other form approved by the
Payment Agent and the Borrower.

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

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

          “Borrower” means Northrop Grumman Corporation, a Delaware corporation, its successors
and permitted assigns.

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

 

4

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

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

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

          “Capital Markets Agreement” means any instrument or agreement evidencing or governing
Capital Markets Debt.

          “Capital Markets Debt” means, as of each date of determination, Indebtedness existing
as of that date and issued pursuant to one agreement or indenture or a group of related agreements
or indentures, in each case in an aggregate principal amount exceeding $150,000,000 that is owed to
financial institutions or evidenced by bonds, notes, debentures or similar instruments.

          “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 50% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Borrower or (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the Borrower by
Persons who were neither (i) nominated by the board of directors of the Borrower nor (ii) appointed
by directors so nominated.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(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.

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

 

5

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

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced or increased from time to time pursuant
to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to
such Lender pursuant to Section 10.04. The initial amount of each Lender’s Commitment is set forth
on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have
assumed its Commitment, as applicable. The initial aggregate amount of the Lenders’ Commitments is
$2,000,000,000.

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

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

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

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

          “Confidentiality Agreement” means a confidentiality agreement in the form of Exhibit
C.

          “Consolidated Assets” means, at any time, all assets of the Borrower and the
Subsidiaries at such time, as determined on a consolidated basis in accordance with GAAP.

          “Consolidated Debt” means, for any date of determination and without duplication, all
indebtedness for borrowed money and Capital Lease Obligations reported as indebtedness in the
consolidated financial statements of the Borrower and its Subsidiaries prepared as of such date of
determination, plus all indebtedness for borrowed money and Capital Lease Obligations incurred by
third parties and guaranteed by the Borrower or a Subsidiary not otherwise reported as indebtedness
in such consolidated financial statements.

          “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. “Controlled” has a correlative meaning
thereto.

 

6

          “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.

          “Designated Foreign Currency” means any foreign currency that is freely traded and
exchangeable into US Dollars.

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

          “Effective Date” has the meaning assigned to such term in Section 4.01.

          “Environmental Laws” means all applicable laws, 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.

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

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

          “ERISA Group” means the Borrower and all members of a controlled group of corporations
and all trades or businesses (whether or not incorporated) under common control that, together with
the Borrower, are treated as a single employer under Section 414 of the Code.

          “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 (or, in the case of a Competitive Loan, the LIBO Rate).

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

          “Excluded Taxes” means, with respect to the Payment 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 either 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 imposed by the
United States of America or any similar tax imposed by any other jurisdiction in which such
recipient is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a
request by the

 

7

Borrower under Section 2.19(b) or 10.02(c)), any withholding tax that is imposed by the United
States of America on amounts payable to such Foreign Lender by the Borrower or such Guarantor from
locations in the United States of America 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 2.17(e), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax pursuant to Section
2.17(a).

          “Existing Credit Agreement” means the Borrower’s Five-Year Revolving Credit Agreement
dated as of August 5, 2005 (as amended, restated, replaced, supplemented or modified from time to
time), as in effect immediately prior to the effectiveness of this Agreement.

          “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 Payment Agent from three Federal funds brokers of recognized standing selected by it.

          “Financial LC Participation Fee” has the meaning assigned to such term in Section
2.12.

          “Financial Letter of Credit” means a Letter of Credit that is not a Performance Letter
of Credit.

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

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

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

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

          “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.

          “Funded Debt Agreement” means any agreement, or group of related agreements,
evidencing Funded Debt.

 

8

          “Funded Debt” means any Indebtedness for borrowed money (other than Loans and Letters
of Credit under this Agreement) of the Borrower and/or one or more of its Restricted Subsidiaries.

          “GAAP” means generally accepted accounting principles in the United States of America,
applied in accordance with Section 1.04.

          “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.

          “Guarantors” means Northrop Grumman Systems Corporation, a Delaware corporation and a
wholly owned Subsidiary of the Borrower, and Northrop Grumman Space & Mission Systems Corp., an
Ohio corporation and a wholly owned subsidiary of the Borrower.

          “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.

          “Indebtedness” means, for any Person, indebtedness for borrowed money and Capital
Lease Obligations reported as indebtedness in the consolidated financial statements of that Person
and its consolidated subsidiaries, plus all indebtedness for borrowed money and Capital Lease
Obligations incurred by third parties and guaranteed by that Person or any of its consolidated
subsidiaries not otherwise reported as indebtedness in such consolidated financial statements.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Index Debt” means senior, unsecured, non-credit enhanced long-term indebtedness for
borrowed money of the Borrower.

          “Interest Election Request” means a request by the Borrower to convert or continue a
Revolving Borrowing in accordance with Section 2.08.

          “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, (c) with respect to any Fixed Rate
Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part
and, in the case of a Fixed Rate Borrowing with an Interest Period of more than 90 days’ duration
(unless

 

9

otherwise specified in the applicable Competitive Bid Request), each day prior to the last day
of such Interest Period that occurs at intervals of 90 days’ duration after the first day of such
Interest Period, and any other dates that are specified in the applicable Competitive Bid Request
as Interest Payment Dates with respect to such Borrowing and (d) with respect to any Swingline
Loan, the day that such Loan is required to be repaid.

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

          “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 2.06(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 2.06(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
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” shall have the meaning assigned to such term in Section
2.06(i).

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

 

10

          “Judgment Currency” has the meaning assigned to such term in Section 10.14.

          “LC Commitment” means, with respect to each Issuing Bank, the commitment of such
Issuing Bank to issue Letters of Credit pursuant to Section 2.06. The initial amount of each
Issuing Bank’s LC Commitment is set forth on Schedule 2.06, or in such Issuing Bank’s Issuing Bank
Agreement.

          “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 Payment 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 Payment 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 Payment 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 2.06 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 Lender at any time shall be its Applicable
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 Payment 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 Payment Agent that it made such a purchase, the
date on which such LC Disbursement is made.

          “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 in compliance with Section
10.04, other than any such Person that ceases to be a party

 

11

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.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the Payment
Agent from time to time for purposes of providing quotations of interest rates applicable to US
Dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, as the rate for 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
Payment 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, any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset.

          “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 the guarantee contained in
Section 9.01 pursuant to Section 9.02 or Section 10.13).

          “Loans” means the loans made by the Lenders to the Borrower pursuant to this
Agreement, and for the avoidance of doubt, includes Competitive Loans and Swingline Loans.

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

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

          “Material Adverse Effect” means a material adverse effect on (a) the ability of the
Loan Parties to perform their obligations under this Agreement, (b) the validity or enforceability
of this Agreement, (c) the rights and remedies of any Lender or the Payment Agent under this
Agreement, or (d) the timely payment of the principal of or interest on the Loans or other amounts
payable in connection therewith.

 

12

          “Material Payment Default” means, as to any Funded Debt Agreement, that any amount of
principal or interest aggregating $100,000 or more is overdue thereunder.

          “Maturity Date” means August 10, 2012.

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

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

          “Non-Consenting Lender” has the meaning assigned to such term in Section 10.02(c).

          “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.

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

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

          “Payment Agent” means JPMCB in its capacity as administrative agent for the Lenders
hereunder, or any successor thereto appointed in accordance with Article VIII.

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

          “Performance LC Participation Fee” has the meaning assigned to such term in Section
2.12.

          “Performance Letter of Credit” means a Letter of Credit that constitutes a
“performance-based standby letter of credit” as defined in 12 CFR Pt. 3, App. A.

          “Permitted Encumbrances” means:

 

13

     (a) Liens imposed by law for taxes that are not yet due, or remain payable without
penalty, or are being contested in good faith and by proper proceedings;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than 30 days or are being contested in good faith and by
proper proceedings;

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

     (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

     (e) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII; and

     (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure
any monetary obligations and do not materially detract from the value of the affected
property or interfere with the ordinary conduct of business of the Borrower or any
Subsidiary;

provided that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

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

          “Plan” means, at any time, an employee pension benefit plan (other than a
Multiemployer Plan) that is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code and is maintained, or contributed to, by any member of the
ERISA Group for employees of any member of the ERISA Group.

          “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 principal office in New York City; each change in the
Prime Rate shall be effective from and including the date such change is publicly announced as
being effective.

          “Proposed Change” has the meaning assigned to such term in Section 10.02(c).

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

 

14

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

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

          “Restricted Subsidiary” means each Subsidiary other than an Unrestricted Subsidiary.

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

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

          “Shareholders’ Equity” means, at any time, the consolidated shareholders’ equity of
the Borrower that would be reported as shareholders’ equity on a consolidated balance sheet of the
Borrower prepared as of such time.

          “Significant Subsidiary” means, as of each determination date, each Subsidiary with a
book value of total assets, net of depreciation and amortization and after intercompany
eliminations, in excess of $150,000,000.

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Payment Agent is subject for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the
Board). Such reserve percentages shall include those imposed pursuant to such Regulation D.
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

 

15

consolidated financial statements if such financial statements were prepared in accordance
with GAAP as of such date, as well as any other corporation, limited liability company,
partnership, association or other entity of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are, as of such date,
owned, controlled or held.

          “Subsidiary” means any subsidiary of the Borrower.

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

          “Swingline Lender” means JPMCB, in its capacity as lender of Swingline Loans
hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.05.

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

          “Telecopy” means telecopier, facsimile, or other similar means of transmission of
documentation, including e-mail transmission of pdf files bearing, where required, appropriate
signatures.

          “Transactions” means the execution, delivery and performance by the Loan Parties of
this Agreement, the borrowing of Loans, and the issuance of Letters of Credit.

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

          “Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if
any) by which (i) the present value of all benefits under such Plan exceeds (ii) the fair market
value of all Plan assets allocable to such benefits (excluding any accrued but unpaid
contributions), all determined as of the then most recent valuation date for such Plan, but only to
the extent that such excess represents a potential liability of a member of the ERISA Group to the
PBGC or an appointed trustee under Title IV of ERISA.

          “Unrestricted Subsidiary” means any Subsidiary designated as such pursuant to and in
compliance with Section 1.06 and not thereafter redesignated as a Restricted Subsidiary pursuant to
such Section; provided that no Significant Subsidiary, and no Subsidiary that owns any
Equity Interests or Indebtedness of the Borrower or any Restricted Subsidiary, shall be an
Unrestricted Subsidiary.

 

16

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

          “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 Payment 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.

          “Utilization Percentage” means the percentage produced by dividing (i) the aggregate
Revolving Credit Exposures by (ii) the aggregate Commitments; provided, that if the
Commitments have been terminated, the Utilization Percentage shall at all times be 100%.

          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
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 Payment Agent that
the Borrower requests an amendment to any

 

17

provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP
or in the application thereof on the operation of such provision (or if the Payment 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.

          SECTION 1.05. Currency Translation. The Payment Agent shall determine the US Dollar
Equivalent of any Letter of Credit denominated in a Designated Foreign Currency as of the date of
issuance thereof and on the first Business Day of each calendar month on which such Letter of
Credit is outstanding, 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 required calculation thereof pursuant to this paragraph. The
Payment Agent shall in addition determine the US Dollar Equivalent of any Letter of Credit
denominated in any Designated Foreign Currency as provided in Section 2.06. The Payment 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. Unrestricted Subsidiaries. The Borrower may, at any time and from time
to time, designate any Subsidiary organized or acquired after the Effective Date (other than any
Significant Subsidiary or any Subsidiary that shall own any Equity Interests or Indebtedness of the
Borrower or any Restricted Subsidiary) as an Unrestricted Subsidiary by delivery of a written
notice of such designation to the Payment Agent; provided that (a) no Default shall exist
at the time of any such designation and (b) after giving effect to such designation, the aggregate
assets of all Unrestricted Subsidiaries shall not exceed 15% of Consolidated Assets. The Borrower
may, at any time and from time to time, designate any Unrestricted Subsidiary as a Restricted
Subsidiary by delivery of written notice of such designation to the Payment Agent. If, as of the
end of any fiscal quarter, the aggregate combined assets of all Unrestricted Subsidiaries shall
exceed 15% of Consolidated Assets, then the Borrower shall, not later than 30 days after the
delivery of the certificate referred to in Section 5.01(c) with respect to such fiscal quarter,
eliminate such excess by designating one or more Unrestricted Subsidiaries as Restricted
Subsidiaries.

ARTICLE II

The Credits

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

 

18

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

          (b) Subject to Section 2.14, (i) each Revolving Borrowing shall be comprised entirely of ABR
Loans or Eurodollar Loans as the Borrower may request in accordance herewith, and (ii) each
Competitive Borrowing shall be comprised entirely of Eurodollar Loans or Fixed Rate 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 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 $5,000,000 and not less
than $25,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be
in an aggregate amount that is an integral multiple of $5,000,000 and not less than $25,000,000;
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 2.06(e). Each Competitive Borrowing shall be in an
aggregate amount that is an integral multiple of $5,000,000 and not less than $25,000,000. Each
Swingline Loan shall be in an amount that is an integral multiple of $5,000,000 and not less than
$25,000,000. Borrowings of more than one Type and Class may be outstanding at the same time;
provided that there shall not at any time be more than a total of 15 Eurodollar Revolving
Borrowings outstanding.

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

          SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing,
the Borrower shall notify the Payment 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 11:00 a.m.,
New York City time on the Business Day of the proposed Borrowing. Each such telephonic Borrowing
Request

 

19

shall be irrevocable and shall be confirmed promptly by hand delivery or Telecopy to the
Payment Agent of a written Borrowing Request in a form approved by the Payment 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 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 Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any
requested Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have selected an
Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the Payment Agent shall advise each Lender of the details thereof and
of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04. Competitive Bid Procedure. (a) Subject to the terms and conditions set
forth herein, from time to time during the Availability Period the Borrower may request Competitive
Bids and may (but shall not have any obligation to) accept Competitive Bids and borrow Competitive
Loans; provided that the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans at any time shall not exceed the total
Commitments. To request Competitive Bids, the Borrower shall notify the Payment Agent of such
request by telephone, in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York
City time, four Business Days before the date of the proposed Borrowing and, in the case of a Fixed
Rate Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date of
the proposed Borrowing; provided that the Borrower may submit up to (but not more than)
five Competitive Bid Requests on the same day, but a Competitive Bid Request shall not be made
within five Business Days after the date of any previous Competitive Bid Request, unless any and
all such previous Competitive Bid Requests shall have been withdrawn or all Competitive Bids
received in response thereto rejected. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or Telecopy to the Payment Agent of a written Competitive Bid
Request in a form approved by the Payment Agent and signed by the Borrower. Each such telephonic
and written Competitive Bid 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;

 

20

     (iii) whether such Borrowing is to be a Eurodollar Borrowing or a Fixed Rate
Borrowing;

     (iv) the Interest Period to be applicable to such Borrowing, which shall be a period
contemplated by the definition of the term “Interest Period”; and

     (v) the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.07.

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

          (b) Each Lender may (but shall not have any obligation to) make one or more Competitive Bids
to the Borrower in response to a Competitive Bid Request. Each Competitive Bid by a Lender must be
in a form approved by the Payment Agent and must be received by the Payment Agent by Telecopy, in
the case of a Eurodollar Competitive Borrowing, not later than 10:00 a.m., New York City time,
three Business Days before the proposed date of such Competitive Borrowing, and in the case of a
Fixed Rate Borrowing, not later than 10:00 a.m., New York City time, on the proposed date of such
Competitive Borrowing. Competitive Bids that do not conform substantially to the form approved by
the Payment Agent may be rejected by the Payment Agent, and the Payment Agent shall notify the
applicable Lender as promptly as practicable. Each Competitive Bid shall specify (i) the principal
amount (which shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may
equal the entire principal amount of the Competitive Borrowing requested by the Borrower) of the
Competitive Loan or Loans that the Lender is willing to make, (ii) the Competitive Bid Rate or
Rates at which the Lender is prepared to make such Loan or Loans (expressed as a percentage rate
per annum in the form of a decimal to no more than four decimal places) and (iii) the Interest
Period applicable to each such Loan and the last day thereof.

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

          (d) Subject only to the provisions of this paragraph, the Borrower may accept or reject any
Competitive Bid. The Borrower shall notify the Payment Agent by telephone, confirmed by Telecopy,
whether and to what extent it has decided to accept or reject each Competitive Bid, in the case of
a Eurodollar Competitive Borrowing, not later than 11:00 a.m., New York City time, three Business
Days before the date of the proposed Competitive Borrowing, and in the case of a Fixed Rate
Borrowing, not later than 11:00 a.m., New York City time, on the proposed date of the Competitive
Borrowing; provided that (i) the failure of the Borrower to give such notice shall be
deemed to be a rejection of each Competitive Bid, (ii) the Borrower shall not accept a Competitive
Bid made at a particular Competitive Bid Rate if the Borrower rejects a Competitive Bid made at a
lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids accepted by the
Borrower shall not exceed the aggregate amount of the

 

21

requested Competitive Borrowing specified in the related Competitive Bid Request, (iv) to the
extent necessary to comply with clause (iii) above, the Borrower may accept Competitive Bids at the
same Competitive Bid Rate in part, which acceptance, in the case of multiple Competitive Bids at
such Competitive Bid Rate, shall be made pro rata in accordance with the amount of each such
Competitive Bid, and (v) except pursuant to clause (iv) above, no Competitive Bid shall be accepted
for a Competitive Loan unless such Competitive Loan is in a minimum principal amount of $5,000,000
and an integral multiple of $1,000,000; provided further that if a Competitive Loan must be
in an amount less than $5,000,000 because of the provisions of clause (iv) above, such Competitive
Loan may be for a minimum of $1,000,000 or any integral multiple thereof, and in calculating the
pro rata allocation of acceptances of portions of multiple Competitive Bids at a particular
Competitive Bid Rate pursuant to clause (iv) the amounts shall be rounded to integral multiples of
$1,000,000 in a manner determined by the Borrower. A notice given by the Borrower pursuant to this
paragraph shall be irrevocable.

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

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

          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees 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 sum of the total
Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans
exceeding the total Commitments; provided that the Swingline Lender shall not 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.

          (b) To request a Swingline Loan, the Borrower shall notify the Payment Agent of such request
by telephone (confirmed by Telecopy), not later than 12:00 noon, New York City time, on the day of
such proposed 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 Payment Agent will
promptly advise the Swingline Lender of any such notice received from the Borrower. The Swingline
Lender shall make each Swingline Loan available to the Borrower by means of a credit to the general
deposit account of the Borrower with the Swingline Lender (or, in the case of a Swingline Loan made
to finance the reimbursement of an LC Disbursement as provided

 

22

in Section 2.06(e), by remittance to the applicable Issuing Bank) by 3:00 p.m., New York City
time, on the requested date of such Swingline Loan.

          (c) The Swingline Lender may by written notice given to the Payment Agent not later than 10:00
a.m., New York City time, on any Business Day require the Lenders to acquire participations on such
Business Day in all or a portion of the Swingline Loans outstanding. Such notice shall specify the
aggregate amount of Swingline Loans in which Lenders will participate. Promptly upon receipt of
such notice, the Payment Agent will give notice thereof to each Lender, specifying in such notice
such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely
and unconditionally agrees, upon receipt of notice as provided above, to pay to the Payment Agent,
for the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan
or Loans. Each 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 Lender shall comply with its obligation under
this paragraph by wire transfer of immediately available funds, in the same manner as provided in
Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply,
mutatis mutandis, to the payment obligations of the Lenders), and the Payment Agent
shall promptly pay to the Swingline Lender the amounts so received by it from the Lenders. The
Payment 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 Payment Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender
from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after
receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Payment Agent; any such amounts received by the Payment Agent shall be
promptly remitted by the Payment Agent to the Lenders that shall have made their payments pursuant
to this paragraph and to the Swingline Lender, as their interests may appear; provided that
any such payment so remitted shall be repaid to the Swingline Lender or to the Payment 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 2.06. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower may request the issuance of Letters of Credit denominated
in US Dollars or any Designated Foreign Currency approved by the applicable Issuing Bank, (i) for
its own account or (ii) for its own account and, jointly, for the account of any of its
Subsidiaries (and in each case under this clause (ii), the Borrower shall be considered the sole
obligor under such Letter of Credit for purposes of this Agreement notwithstanding any listing of
any Subsidiary as an account party or applicant with respect to such Letter of Credit), in a form
reasonably acceptable to the Payment Agent and the applicable Issuing Bank, at any time and from
time to time during the Availability Period. Except as to matters covered by agreements contained
herein or

 

23

otherwise expressly agreed by the relevant Issuing Bank and the Borrower when a Letter of
Credit is issued, (i) the rules of the ISP shall apply to each standby Letter of Credit, and (ii)
the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published
by the International Chamber of Commerce at the time of issuance, shall apply to each commercial
Letter of Credit. JPMCB and each other Lender which has been designated as an Issuing Bank
hereunder, agrees, subject to the terms and conditions set forth herein, 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 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 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
Subsidiary that shall be a joint account party in respect of any such Letter of Credit).

          (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
Payment 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. 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 LC Exposure shall not exceed the
total Commitments, (ii) the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans shall not exceed the total Commitments and (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.

          (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

 

24

such Letter of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) or such longer period as may be agreed to between the Borrower and the
Issuing Bank and (ii) the date that is five Business Days prior to the 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).

          (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 Lenders, such Issuing Bank hereby grants to each Lender, and each
Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to
such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter
of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Payment Agent, for the account of the applicable Issuing Bank,
such Lender’s Applicable Percentage (determined as of the time or times at which the 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 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 an Issuing Bank makes any LC Disbursement in respect of a
Letter of Credit, it shall promptly (and in any event on the date such LC Disbursement is made)
notify the Borrower thereof. The Borrower shall reimburse such LC Disbursement by paying to the
Payment Agent an amount equal to such LC Disbursement by the following deadlines:

          (i) if the Borrower receives such notice prior to 12:00 noon, New York City time, not
later than 12:00 noon, New York City time, on the Business Day immediately following the
date of notice, or

          (ii) if the Borrower receives such notice following 12:00 noon, New York City time,
not later than 12:00 noon, New York City time, two Business Days following the day that the
Borrower receives such notice.

 

25

Each such reimbursement shall be made in the currency of such LC Disbursement. If such LC
Disbursement is denominated in US Dollars, the Borrower may, subject to the conditions to borrowing
set forth herein, request in accordance with Section 2.03 or 2.05 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, (A) 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 (B) in the case of each
LC Disbursement, the Payment Agent shall notify each Lender of the applicable LC Disbursement, the
payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage
thereof. Promptly following receipt of such notice, each Lender shall pay to the Payment Agent its
Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in
Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply,
mutatis mutandis, to the payment obligations of the Lenders), and the Payment Agent
shall promptly pay to such Issuing Bank the amounts so received by it from the Lenders. Promptly
following receipt by the Payment Agent of any payment from the Borrower pursuant to this paragraph,
the Payment Agent shall distribute such payment to such Issuing Bank or, to the extent that Lenders
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 Payment 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 Payment 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 an
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,

 

26

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. None of the Payment Agent, the Lenders or the Issuing Banks, or
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
wilful misconduct on the part of an Issuing Bank, an 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 Payment 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 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

 

27

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 2.13(d) 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 Agent and the Lenders designate as additional Issuing Banks one or more Lenders that
agree to serve in such capacity as provided below. The acceptance by a 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 Payment
Agent, shall set forth the LC Commitment of such Lender and shall be executed by such Lender, the
Borrower and the Payment Agent and, from and after the effective date of such agreement, (i) such
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 Lender in its capacity
as an Issuing Bank.

          (j) Replacement of an Issuing Bank. An Issuing Bank may be replaced at any time by
written agreement among the Borrower, the Payment Agent (who will not unreasonably refuse their
consent thereto) 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 Payment 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 2.12(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 Payment Agent or the Required Lenders
(or, if the maturity of the Loans has been accelerated, Lenders with LC Exposures representing
greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to
this paragraph, the Borrower shall deposit in an account with the Payment Agent, in the name of the
Payment Agent and for the benefit of the Lenders, an amount in cash equal to the LC Exposure 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, except that LC Disbursements in a Designated Foreign Currency
in respect of which the Borrower’s reimbursement obligations have been converted to obligations in
US Dollars as provided in paragraph (e) above and interest accrued thereon shall be payable in US
Dollars 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
(i) or (j) of Article VII. Such deposit shall be held by the Payment Agent as collateral for the
payment and performance of the obligations of the Borrower under this Agreement. The

 

28

Payment 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 at the option and sole discretion of the Payment 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 Payment Agent to reimburse each Issuing Bank for LC Disbursements for which it 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 Loans has been accelerated (but subject to the consent of Lenders with LC Exposure representing
greater than 50% of the total LC Exposure), 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 Payment Agent, each Issuing
Bank shall report in writing to the Payment Agent (who shall promptly provide notice to the 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 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 Payment 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 Payment Agent shall reasonably request as to the
Letters of Credit issued by such Issuing Bank.

          SECTION 2.07. 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 Payment 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 2.05. The Payment 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 2.06(e) shall be remitted by the Payment Agent to the Issuing Bank.

          (b) Unless the Payment Agent shall have received notice from a Lender prior to the proposed
date of any Borrowing that such Lender will not make available to

 

29

the Payment Agent such Lender’s share of such Borrowing, the Payment 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 Payment Agent, then the applicable Lender and the Borrower severally agree to pay
to the Payment 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 Payment Agent, at the Federal Funds Effective Rate. If such Lender pays
such amount to the Payment Agent, then such amount shall constitute such Lender’s Loan included in
such Borrowing.

          SECTION 2.08. Interest Elections. (a) Each Revolving Borrowing initially shall be of
the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving
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 Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrower may elect different options with respect
to different portions of the affected Borrowing, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. This Section shall not apply to
Competitive Borrowings or Swingline Borrowings, which may not be converted or continued.

          (b) To make an election pursuant to this Section, the Borrower shall notify the Payment 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 Revolving Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such telephonic Interest Election Request
shall be irrevocable and shall be confirmed promptly by hand delivery or Telecopy to the Payment
Agent of a written Interest Election Request in a form approved by the Payment 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;

 

30

     (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 Payment 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 Revolving Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof,
if an Event of Default has occurred and is continuing and the Payment 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 Revolving Borrowing may be converted to or continued as a Eurodollar Borrowing and
(ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at
the end of the Interest Period applicable thereto.

          SECTION 2.09. Termination, Reduction and Increase of Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Maturity 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 $5,000,000 and not less than $25,000,000 and (ii) the Borrower shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.11, the sum of the Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans would exceed the total Commitments.

          (c) The Borrower shall notify the Payment Agent of any election to terminate or reduce the
Commitments 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 Payment Agent shall advise the Lenders 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 Commitments delivered by the
Borrower may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (by notice to the Payment
Agent on or prior to the specified effective date) if such condition is not satisfied. Any
termination or reduction

 

31

of the Commitments shall be permanent. Each reduction of the Commitments shall be
made ratably among the Lenders in accordance with their respective Commitments.

          (d) The Borrower may from time to time, by written notice to the Payment Agent, executed by
the Borrower and one or more financial institutions (any such financial institution referred to in
this Section being called a “Prospective Lender”), which may include any Lender, cause the
Commitments of the Prospective Lenders to be increased (or cause Commitments to be extended by the
Prospective Lenders, as the case may be) in an amount for each Prospective Lender set forth in such
notice; provided that (i) the amount of any such increase in the aggregate Commitments
shall be not less than $25,000,000, (ii) the aggregate amount of increases in Commitments made
pursuant to this Section shall not exceed $500,000,000, (iii) each Prospective Lender, if not
already a Lender hereunder, shall be subject to the approval of the Payment Agent and each Issuing
Bank (which approval shall not be unreasonably withheld) and shall execute all such documentation
as the Payment Agent and the Borrower shall specify to evidence the Commitment of such Prospective
Lender and its status as a Lender hereunder. Such notice shall set forth the date (the
“Increase Effective Date”) on which such increase is requested to become effective (which
shall not be less than 3 Business Days or more than 45 days after the date of such notice). On the
Increase Effective Date, (A) the aggregate principal amount of the Loans outstanding (the
“Initial Loans”) immediately prior to giving effect to the commitment increase on the
Increase Effective Date shall be deemed to be repaid, (B) after the effectiveness of the commitment
increase, the Borrower shall be deemed to have made new Borrowings (the “Subsequent
Borrowings”) in an aggregate principal amount equal to the aggregate principal amount of the
Initial Loans and of the types and for the Interest Periods specified in a Borrowing Request
delivered to the Payment Agent in accordance with Section 2.03, (C) each Lender shall pay to the
Payment Agent in same day funds an amount equal to the difference, if positive, between (x) such
Lender’s Applicable Percentage (calculated after giving effect to the commitment increase) of the
Subsequent Borrowings and (y) such Lender’s Applicable Percentage (calculated without giving effect
to the commitment increase) of the Initial Loans, (D) after the Payment Agent receives the funds
specified in clause (C) above, the Payment Agent shall pay to each Lender the portion of such funds
that is equal to the difference, if positive, between (1) such Lender’s Applicable Percentage
(calculated without giving effect to the commitment increase) of the Initial Loans and (2) such
Lender’s Applicable Percentage (calculated after giving effect to the commitment increase) of the
amount of the Subsequent Borrowings, (E) each Lender (including each Prospective Lender) shall be
deemed to hold its Applicable Percentage of each Subsequent Borrowing (each calculated after giving
effect to the commitment increase) and (F) the Borrower shall pay each Lender (other than any
Prospective Lender that was not a Lender before giving effect to the Commitment increase) any and
all accrued but unpaid interest on the Initial Loans. The deemed payments made pursuant to clause
(A) above in respect of each Eurodollar Loan shall be subject to indemnification by the Borrower
pursuant to the provisions of Section 2.16 if the Increase Effective Date occurs other than on the
last day of the Interest Period relating thereto and breakage costs actually result therefrom.
Notwithstanding the foregoing, no increase in the Commitments (or in any Commitment of any Lender)
or addition of a Prospective Lender shall become effective under this Section unless, (A) on the date of such increase, the

 

32

conditions set forth in paragraphs (a) and (b) of Section 4.02 shall be satisfied (without giving
effect to the parenthetical in such paragraph (a)) and the Payment Agent shall have received a
certificate to that effect dated such date and executed by a Financial Officer of the Borrower, and
(B) the Payment Agent shall have received (with sufficient copies for each of the Lenders)
documents consistent with those delivered pursuant to Section 4.01 as to the corporate power and
authority of the Borrower to borrow hereunder after giving effect to such increase.

          SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay (i) to the Payment Agent for the account of each Lender the then
unpaid principal amount of each Revolving Loan on the Maturity Date, (ii) to the Payment Agent for
the account of each Lender the then unpaid principal amount of each Competitive Loan on the last
day of the Interest Period applicable to such Loan and (iii) to the Swingline Lender the then
unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the fifth
Business Day after such Swingline Loan is made; provided that on each date that a Revolving
Borrowing or Competitive 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.

          (c) The Payment Agent shall maintain accounts in which it shall record (i) the amount of each
Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii)
the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Payment 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 Payment 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 Payment Agent. Thereafter, the Loans evidenced
by such promissory note and interest thereon shall at all times (including after assignment
pursuant to Section 10.04) be represented by one or more promissory notes in such form payable to
the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

 

33

          SECTION 2.11. Prepayment of Loans. (a) The Borrower shall have the right at any time
and from time to time to prepay or repay any Borrowing in whole or in part, subject to prior notice
in accordance with paragraph (b) of this Section; provided that the Borrower shall not have
the right to prepay any Competitive Loan without the prior consent of the Lender thereof.

          (b) In the event and on each occasion that the sum of the Revolving Credit Exposures exceeds
the sum of the Commitments, the Borrower shall not later than the next Business Day prepay
Revolving Borrowings in an aggregate amount equal to such excess, and in the event that after such
prepayment of Borrowings any such excess shall remain, the Borrower shall deposit cash in an amount
equal to such excess as collateral for the reimbursement obligations of the Borrower in respect of
Letters of Credit; provided that if such excess results from a change in currency exchange
rates, such prepayment and deposit shall be required to be made not later than the fifth Business
Day after the day on which the Payment Agent shall have given the Borrower notice of such excess.
Any cash so deposited (and any cash previously deposited pursuant to this paragraph) with the
Payment Agent shall be held in an account over which the Payment Agent shall have sole dominion and
control, including exclusive rights of withdrawal. Other than any interest earned on the
investment of such deposits, which investment shall be made in the discretion of the Payment 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 Payment Agent to reimburse each Issuing Bank for LC Disbursements for which
it 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 Loans has been accelerated (but subject to the consent of Lenders holding a majority of the
LC Exposures), be applied to satisfy other obligations of the Borrower under this Agreement. If
the Borrower has provided cash collateral to secure the reimbursement obligations of the Borrower
in respect of Letters of Credit, then, so long as no Event of Default shall exist, such cash
collateral shall be released to the Borrower if so requested by the Borrower at any time if and to
the extent that, after giving effect to such release, the aggregate amount of the Revolving Credit
Exposures would not exceed the aggregate amount of the Commitments.

          (c) The Borrower shall notify the Payment Agent (and, in the case of prepayment of a Swingline
Loan, the Swingline Lender) by telephone (confirmed by Telecopy) of any prepayment hereunder (i) in
the case of prepayment of a Eurodollar Revolving Borrowing, not later than 11:00 a.m., New York
City time, three Business Days before the date of prepayment, (ii) in the case of prepayment of an
ABR Revolving Borrowing, not later than 11:00 a.m., 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; provided that in the case of any
prepayment required to be made within one Business Day under paragraph (b) above the Borrower will
give such notice as soon as practicable. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of each Borrowing
or portion thereof to be prepaid; provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Commitments as

 

34

contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.09. Promptly following receipt of any such notice relating to a
Revolving Borrowing, the Payment Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the
case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02. Each
prepayment of a Revolving Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section
2.13.

          SECTION 2.12. Fees. (a) The Borrower agrees to pay to the Payment Agent for the
account of each Lender a facility fee, which shall accrue at the Applicable Rate on the daily
amount of the Commitment of such Lender (whether used or unused) during the period from and
including the date of this Agreement to but excluding the date on which such Commitment terminates;
provided that, if such Lender continues to have any Revolving Credit Exposure after its
Commitment terminates, then such facility fee shall continue to accrue on the daily amount of such
Lender’s Revolving Credit Exposure from and including the date on which its Commitment terminates
to but excluding the date on which such Lender ceases to have any Revolving Credit Exposure.
Accrued facility fees shall be payable in arrears on the last day of March, June, September and
December of each year and on the date on which the Commitments terminate, commencing on the first
such date to occur after the date hereof; provided that any facility fees accruing after
the date on which the Commitments terminate shall be payable on demand. All facility 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 Payment Agent for the account of each Lender a
participation fee with respect to its participations in Letters of Credit, which shall accrue on
each day at (x) in the case of participation fees (“Financial LC Participation Fees”) with
respect to Financial Letters of Credit, the Applicable Rate for such Financial Letters of Credit,
on the average daily amount of such Lender’s LC Exposure attributable to Financial Letters of
Credit (excluding any portion thereof attributable to unreimbursed LC Disbursements), and (y) in
the case of participation fees (“Performance LC Participation Fees”) with respect to
Performance Letters of Credit, the Applicable Rate for such Performance Letters of Credit, on the
average daily amount of such Lender’s LC Exposure attributable to Performance Letters of Credit
(excluding any portion thereof attributable to unreimbursed LC Disbursements), in each case during
the period from and including the date of this Agreement to but excluding the later of the date on
which such Lender’s 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 the
rate or rates per annum separately agreed upon between the Borrower and such Issuing Bank 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 date of this Agreement to but excluding the later of the date of termination of the Commitments
and the date on which there ceases to be any LC Exposure, and (iii)

 

35

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 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 Effective Date; provided that all such
fees shall be payable on the date on which the Commitments terminate and any such fees accruing
after the date on which the 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) The Borrower agrees to pay to the Payment Agent, for its own account, fees payable in the
amounts and at the times separately agreed upon between the Borrower and the Payment Agent.

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

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

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest (i) in the case of a
Eurodollar Revolving Loan, at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate, or (ii) in the case of a Eurodollar Competitive Loan, at the
LIBO Rate for the Interest Period in effect for such Borrowing plus (or minus, as applicable) the
Margin applicable to such Loan.

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

          (d) 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.

          (e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and, in the case of Revolving Loans, upon

 

36

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

          (f) 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 Payment Agent, and such determination shall be conclusive absent
manifest error.

          SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

     (a) the Payment 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 Payment Agent is advised by the Required Lenders (or, in the case of a
Eurodollar Competitive Loan, the Lender that is required to make such Loan) that the
Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining
their Loans (or its Loan) included in such Borrowing for such Interest Period;

then the Payment Agent shall give notice thereof to the Borrower and the Lenders by telephone or
Telecopy as promptly as practicable thereafter and, until the Payment 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 Revolving Borrowing to, or continuation of any
Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing
Request requests a Eurodollar Revolving 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 2.15. 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

 

37

extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or any
Issuing Bank; or

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

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan or Fixed Rate 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 capital
requirements 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
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 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 Issuing Bank’s
right to demand such compensation; provided that the

 

38

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 90 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 90-day period referred to above shall be extended to include
the period of retroactive effect thereof.

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

          SECTION
2.16. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan or Fixed Rate Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any
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 or Fixed Rate Loan on the date
specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.11(c) and is revoked in accordance therewith), (d) the failure to borrow any
Competitive Loan after accepting the Competitive Bid to make such Loan, or (e) the assignment of
any Eurodollar Loan or Fixed Rate Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event,
the Borrower shall compensate each affected Lender for the loss, cost and expense attributable to
such event (which loss, cost or expense will not be deemed to include lost profit). 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
(without adding thereto the Applicable Rate or Margin) 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 US 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 Business Days after
receipt thereof.

 

39

          SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of
the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if the Borrower 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 Agent, Lender or 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) the Borrower shall make such deductions and (iii) the Borrower shall pay
the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

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

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

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Payment 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 Payment Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Payment Agent), at the time or times prescribed by applicable law,
such properly completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrower as will permit such payments to be made without withholding or at a
reduced rate.

          (f) If the Payment Agent or a Lender determines that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay over such refund to the
Borrower (but only to the extent of indemnity

 

40

payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund),
net of all reasonable out-of-pocket expenses of the Payment Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such refund) within
thirty days; provided, that the Borrower, upon the request of the Payment Agent or such
Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Payment Agent or such Lender in the
event such Agent or such Lender is required to repay such refund to such Governmental Authority.
This Section shall not be construed to require the Payment Agent or any Lender to make available
its tax returns (or any other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

          SECTION 2.18. 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 2.15, 2.16
or 2.17, or otherwise) prior to 2:00 p.m., New York City time, on the date when due, in immediately
available funds, without set-off or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Payment 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
Payment 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 Lender as expressly provided herein and except that
payments pursuant to Sections 2.15, 2.16, 2.17 and 10.03 shall be made directly to the Persons
entitled thereto. The Payment 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 Payment 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 Revolving 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 Revolving Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any
other Lender, then the

 

41

Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Revolving 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 Revolving 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 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 Payment Agent shall have received notice from the Borrower prior to the date on
which any payment is due to the Payment Agent for the account of the Lenders or the applicable
Issuing Bank hereunder that the Borrower will not make such payment, the Payment 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
Payment 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 Payment Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Payment Agent in accordance with banking industry rules
on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to Section
2.05(c), 2.06(d) or (e), 2.07(b) or 2.18(d), then the Payment Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter received by the
Payment 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 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.17, 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,

 

42

if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or
2.17, 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 2.15, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, or if any Lender defaults in its obligation to fund Loans hereunder, then
the Borrower may, at its sole expense and effort, upon notice to such Lender and the Payment Agent,
require such Lender to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 10.04), all its interests, rights and obligations under this
Agreement (other than any outstanding Competitive Loans held by it) to an assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior written consent
of the Payment Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans (other than
Competitive Loans) 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 2.15 or payments required to be made pursuant to Section 2.17, such
assignment will result in a reduction in such compensation or payments.

ARTICLE III

Representations and Warranties

The Borrower represents and warrants to the Lenders that:

          SECTION 3.01. Organization; Powers. The Borrower and each Guarantor is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization. Each Significant Subsidiary is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, in each case except where the failure to be
so organized, existing or in good standing will not be reasonably likely to have a Material Adverse
Effect. The Borrower and each Restricted Subsidiary has all requisite power and authority to carry
on its business as now conducted and is duly qualified to transact business in all jurisdictions
where such qualification is necessary, in each case except where the failure to have such
authority, or to be so qualified will not be reasonably likely to have a Material Adverse Effect.

          SECTION 3.02. Authorization; Enforceability. The Transactions to be entered into by
each Loan Party are within such Loan Party’s corporate powers and have

 

43

been duly authorized by all necessary corporate and stockholder action. This Agreement has been duly executed and delivered by
each Loan Party and constitutes a legal, valid and binding obligation of each 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 Transactions (a) do not
require any consent or approval of, registration or filing with or any other action by any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate, or constitute a default under, any provision of applicable law or regulation
or the charter, by-laws or other organizational documents of the Borrower or any of the Restricted
Subsidiaries or any order of any Governmental Authority or any indenture, any material agreement,
instrument, judgment or order to which the Borrower or any Restricted Subsidiary is a party or by
which it or any of its material assets or properties may be bound or affected which would be
reasonably likely to have a Material Adverse Effect.

          SECTION 3.04. Financial Condition; No Material Adverse Change.
(a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended
December 31, 2006, reported on by Deloitte & Touche LLP, and (ii) as of and for the fiscal quarter
and the portion of the fiscal year ended June 30, 2007. Such financial statements present fairly,
in all material respects, the financial position and results of operations and cash flows of the
Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with
GAAP and, in the case of the statements referred to in clause (ii) above, subject to year-end audit
adjustments and the absence of footnotes.

          (b) Since December 31, 2006, other than as specifically disclosed in the Borrower’s filings
with the Securities and Exchange Commission, there has been no event or condition that would be
reasonably likely to result in a material adverse effect on the business, assets, operations or
condition, financial or otherwise, of the Borrower and the Subsidiaries taken as a whole.

          SECTION 3.05. Properties. The Borrower and its Subsidiaries have sufficient title to,
or sufficient and valid interests in, their respective properties to conduct their business as
currently conducted, except where the failure to have such title or interests will not be
reasonably likely to result in a Material Adverse Effect.

          SECTION 3.06. Litigation and Environmental Matters. Other than as specifically
disclosed in the Borrower’s filings with the Securities and Exchange Commission:

          (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the
Borrower or any of its Restricted Subsidiaries (i) as to

 

44

which there is a reasonable possibility of
an adverse determination and that, if adversely determined, would be reasonably likely,
individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve this
Agreement or the Transactions.

          (b) The financial statements described in Section 3.04 provide certain information regarding
the current and potential obligations arising from various consent decrees, cleanup and abatement
orders, and current or potential proceedings pertaining to actual or alleged soil and water
contamination, disposal of hazardous wastes, and other environmental matters related to properties
currently owned by the Borrower or its Restricted Subsidiaries, previously owned properties, and
other properties. Since December 31, 2006, environmental matters have not caused any material
adverse change in the consolidated financial condition of the Borrower and its consolidated
Subsidiaries from that shown by the financial statements prepared as of that date.

          (c) In the ordinary course of business, the ongoing operations of the Borrower and its
Restricted Subsidiaries are reviewed from time to time to determine compliance with applicable
Environmental Laws. Based on these reviews, to the knowledge of the Borrower, ongoing operations
at the principal properties of the Borrower and its Restricted Subsidiaries are currently being
conducted in substantial compliance with applicable Environmental Laws except to the extent
noncompliance would not be reasonably likely to result in material adverse change in the
consolidated financial condition of the Borrower and its consolidated Subsidiaries.

          SECTION 3.07. No Defaults. There are no Material Payment Defaults of the Borrower and
its Restricted Subsidiaries under Funded Debt Agreements, other than Funded Debt Agreements
governing an aggregate principal amount of Funded Debt which is not in excess of $150,000,000.

          SECTION 3.08. Investment and Holding Company Status. Neither the Borrower nor any of
its Subsidiaries is an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

          SECTION 3.09. Taxes. The Borrower and each Subsidiary has timely filed or caused to
be filed all Tax returns and reports required to have been filed and has paid or caused to be paid
all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith
by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set
aside on its books adequate reserves or (b) to the extent that the failure to do so would not be
reasonably likely to result in a Material Adverse Effect.

          SECTION 3.10. ERISA. Each member of the ERISA Group has fulfilled its obligations
under the minimum funding standards of ERISA and the Code with respect to each Plan and is in
substantial compliance in all material respects with the presently applicable material provisions
of ERISA and the Code with respect to each Plan. No member of the ERISA Group has (i) sought a
waiver of the minimum funding standard under Section 412 of the Code in respect of any Plan, (ii)
failed to make any contribution or payment to any Plan or Multiemployer Plan or made any amendment
to

 

45

any Plan which, in either case has resulted or could result in the imposition of a material Lien
or the posting of a material bond or other material security under ERISA or the Code or (iii)
incurred any material liability under Title IV of ERISA other than a liability to the PBGC for
premiums under Section 4007 of ERISA.

          SECTION 3.11. Disclosure. All information furnished to the Payment Agent and the
Lenders in writing prior to the date hereof in connection with the Transactions (including any
formal presentation slides, and in each case as modified or supplemented by other information
furnished to the Payment Agent or the Lenders) does not contain 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 the proceeds of the Loans and
the Letters of Credit (a) to refinance amounts outstanding under the Existing Credit Agreement and
(b) for general corporate purposes of the Borrower and the Subsidiaries, including the repayment of
commercial paper and the making of acquisitions.

          SECTION 3.13. Margin Stock. Neither the proceeds of any Loan nor any Letter of Credit
will be used in a manner that violates any provision of Regulation U or X of the Board.

          SECTION 3.14. Pari Passu Obligations. Under applicable United States laws (including
state and local laws) in force at the date hereof, the claims and rights of the Lenders and the
Payment Agent against the Borrower under this Agreement will not be subordinate to, and will rank
at least pari passu with, the claims and rights of any other unsecured creditors of
the Borrower (except to the extent provided by bankruptcy, reorganization, insolvency, moratorium
or other similar laws of general application relating to or affecting the enforcement of creditors’
rights and by general principles of equity).

ARTICLE IV

Conditions

          SECTION 4.01. Effective Date. The “Effective Date” means the date the following
conditions have been satisfied (or waived in accordance with Section 10.02):

     (a) The Payment 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 Payment Agent (which may include Telecopy transmission of a
signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement.

 

46

     (b) The Payment Agent shall have received favorable written opinions (addressed to the
Payment Agent and the Lenders and dated the Effective Date) of (i) Sheppard, Mullin,
Richter & Hampton LLP, counsel for the Borrower, substantially in the form of Exhibit B-1,
and (ii) Stephen D. Yslas, Corporate Vice President, Secretary and Deputy General Counsel,
substantially in the form of Exhibit B-2. The Borrower hereby requests such counsel to deliver such opinions.

     (c) The Payment Agent shall have received such documents and certificates as the
Payment Agent or its counsel may reasonably request relating to the organization, existence
and good standing of each Loan Party, the authorization of the Transactions and any other
legal matters relating to the Loan Parties, this Agreement or the Transactions, all in form
and substance satisfactory to the Payment Agent and its counsel.

     (d) The Payment Agent shall have received all fees and other amounts due and payable
on or prior to the Effective Date, including, to the extent invoiced, reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder.

     (e) The representations and warranties of the Borrower set forth in Article III shall
be true and correct in all material respects, and no Default shall have occurred and be
continuing.

     (f) The Payment Agent shall have received all fees and other amounts due and payable
on or prior to the Effective Date, including, to the extent invoiced, reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder.

     (g) Each lender under the Existing Credit Agreement that shall not be a party to this
Agreement shall have received payment in full of the principal and interest accrued on each
loan made by it under the Existing Credit Agreement and all other amounts owed to it or
accrued for its account under the Existing Credit Agreement.

The Payment Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice
shall be conclusive and binding upon all parties hereto and following such notice, none of the
conditions set forth in this Section 4.01 shall be of further application.

          SECTION 4.02. 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 of the Borrower set forth in Article III (other
than Sections 3.04(b), 3.06, 3.09 and 3.10) shall be true and correct in all material
respects on and as of the date

 

47

of such Borrowing or the date of issuance, amendment,
renewal or extension of such Letter of Credit, as applicable.

     (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 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.

ARTICLE V

Affirmative Covenants

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full 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:

          SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish
to the Payment 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, accompanied by an opinion of Deloitte &
Touche LLP or other independent public accountants of recognized national standing as to
such consolidated financial statements;

     (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;

     (c) within 105 days following the end of each fiscal year of the Borrower, and within
60 days following the end of each of the first three fiscal quarters of each fiscal year of
the Borrower, a certificate of a Financial Officer of the Borrower (i) certifying as to
whether a Default has occurred, (ii) setting forth reasonably detailed calculations
demonstrating compliance with Section 6.03 as of the date of the consolidated balance sheet
of the Borrower included in such financial statements and (iii) setting forth a reasonably
detailed calculation of the aggregate combined assets of all Unrestricted Subsidiaries as
of the date of the consolidated balance sheet of the Borrower included in such financial
statements;

     (d) promptly after the same become publicly available, copies of all periodic and
other reports and proxy statements filed by the Borrower or any

 

48

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;

     (e) promptly after S&P, Moody’s or Fitch shall have announced a change in the rating
established or deemed to have been established for the Index Debt, written notice of such
rating change; and

     (f) promptly following any request therefor, subject to restrictions imposed by any
Governmental Authority, such other existing information regarding the business and
financial condition of the Borrower and its Subsidiaries as any Lender may request through
the Payment Agent.

          Information required to be delivered pursuant to paragraphs (a), (b) or (d) 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 Payment Agent in a format
which is suitable for posting by the Payment 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 deliver or cause to
be delivered to the Payment 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 Payment Agent.

          SECTION 5.02. Notices of Material Events. The Borrower will furnish to the Payment
Agent and each Lender prompt written notice of the following:

          (a) the occurrence of any Default; and

          (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or affecting the Borrower or any Restricted Subsidiary that is
reasonably likely 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. The Borrower will, and will cause each
of the Restricted Subsidiaries to, do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence and the rights, licenses, permits, privileges
and franchises material to the conduct of its business, provided that the foregoing shall not
prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.02.
Nothing herein contained shall prevent the

 

49

termination of the business or existence of any Subsidiary which in the judgment of the Borrower is no longer necessary or desirable, a merger or
consolidation of a Subsidiary into or with the Borrower (if the Borrower is the surviving
corporation) or any Restricted Subsidiary, the sale of any Subsidiary if in the judgment of the
Borrower such sale is in the interest of the Borrower, or any merger, consolidation or transfer of assets not
prohibited by Section 6.02, so long as immediately after giving effect to any such transaction, no
Default shall have occurred and be continuing.

          SECTION 5.04. Payment of Obligations. The Borrower will pay and discharge, and will
cause each Restricted Subsidiary to 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 claim (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 be reasonably likely to result in a
Material Adverse Effect.

          SECTION 5.05. Insurance. The Borrower will, and will cause each of the Restricted
Subsidiaries to 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 or, to the customary extent,
self-insurance.

          SECTION 5.06. Inspection Rights. The Borrower will, and will cause each of the
Subsidiaries to, permit any representatives designated by the Payment Agent or any Lender, upon
reasonable prior notice and subject to restrictions imposed by any Governmental Authority and
customer confidentiality agreements, and during normal business hours, to visit and inspect its
major properties and to examine its books and records, all at such reasonable times 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.

          SECTION 5.07. Compliance with Laws. The Borrower will, and will cause each of the
Restricted Subsidiaries to, comply with all laws, rules, regulations and lawful 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 be reasonably likely to result in a Material Adverse
Effect.

          SECTION 5.08. Incorporation by Reference. If and for so long as any Capital Markets
Agreement evidencing or governing Capital Markets Debt in respect of which the Borrower or any
Person which is then a Guarantor is the primary obligor or a guarantor contains any covenant
limiting Indebtedness of Subsidiaries (other than any financial ratio covenant limiting
consolidated Indebtedness of the Borrower and not limiting Indebtedness of Subsidiaries to a
greater extent than Indebtedness of the

 

50

Borrower), such covenant shall automatically be, and hereby
is, incorporated by reference into this Article V in its entirety as in effect from time to time,
mutatis mutandis, with the same effect as if set forth in full herein (and subject
to any applicable periods of grace or cure which are applied thereto in the relevant Capital
Markets Agreement), with the defined terms used therein, including defined terms used in other defined terms, having the
meanings assigned to them in such Capital Markets Agreement, but with references in such covenant
or in the definitions employed therein to such Capital Markets Agreement being deemed references to
this Agreement, references to the indebtedness under such Capital Markets Agreement being deemed
references to the Obligations and references to holders of such Capital Markets Debt being deemed
references to the Lenders. As of the Effective Date, the only Capital Markets Agreement containing
terms incorporated herein by this Section is the Indenture, dated as of October 15, 1994, between
the Northrop Grumman Corporation (now known as Northrop Grumman Systems Corporation) and The Chase
Manhattan Bank (National Association), as Trustee (to whom JPMCB is successor trustee). If any
Capital Markets Agreement containing a covenant incorporated herein by the preceding sentence shall
terminate, or if no Capital Markets Debt shall be outstanding thereunder, then such covenant shall
be deemed no longer to be incorporated herein (unless Capital Markets Debt shall again be
outstanding under such Capital Markets Agreement, in which case such covenant shall again be
incorporated by reference herein).

ARTICLE VI

Negative Covenants

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full 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:

          SECTION 6.01. Liens. The Borrower will not, and will not permit any Restricted
Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned
or hereafter acquired by it, or assign or sell any income or revenues (including accounts
receivable) or rights in respect of any thereof, except:

     (a) Permitted Encumbrances;

     (b) any Lien on any property or asset of the Borrower or any Restricted Subsidiary
existing on the date hereof;

     (c) any Lien existing on any property or asset of any Person that becomes a Subsidiary
after the date hereof prior to the time such Person becomes a Subsidiary, whether or not
any Indebtedness secured by such Liens is assumed by the Borrower or any Restricted
Subsidiary;

     (d) Liens securing Indebtedness of a Restricted Subsidiary owing to the Borrower or
another Restricted Subsidiary;

 

51

     (e) Liens on assets existing at the time of acquisition of such assets by the Borrower
or a Restricted Subsidiary, or Liens to secure the payment of all or any part of the
purchase price of assets upon the acquisition of such assets by the
Borrower or a Restricted Subsidiary or to secure any Indebtedness incurred or
guaranteed by the Borrower or a Restricted Subsidiary prior to, at the time of, or within
one year after the later of the acquisition, completion of construction (including any
improvements on an existing asset) or commencement of full operation of such asset, which
Indebtedness is incurred or guaranteed for the purpose of financing all or any part of the
purchase price thereof or construction or improvements thereon, and which Indebtedness may
be in the form of obligations incurred in connection with industrial revenue bonds or
similar financings and letters of credit, bank guarantees, surety bonds or similar
contingent liability instruments issued in connection therewith; provided,
however, that in the case of any such acquisition, construction or improvement, the
Lien shall not apply to any asset theretofore owned by the Borrower or a Restricted
Subsidiary, other than, in the case of any such construction or improvement, any
theretofore unimproved real property on which the property so constructed or the
improvement made is located;

     (f) 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;

     (g) Liens arising by operation of law in favor of any lender to the Borrower or any
Restricted Subsidiary constituting a banker’s lien or right of offset in moneys of the
Borrower or a Restricted Subsidiary deposited with such lender in the ordinary course of
business;

     (h) Liens on cash or certificates of deposit or other bank obligations in an amount
substantially equal in value (at the time such Liens are created) to, and securing,
obligations in respect of letters of credit, bank guarantees, surety bonds or similar
contingent liability instruments, incurred in the ordinary course of business;

     (i) Liens securing the Obligations and Liens securing the Obligations and any other
Indebtedness of the Borrower and its Subsidiaries on an equal and ratable basis;

     (j) any extension, renewal or replacement (or successive extensions, renewals or
replacements) in whole or in part of any Lien referred to in the foregoing; provided,
however, that the principal amount of Indebtedness secured thereby shall not exceed the
principal amount of Indebtedness so secured at the time of such extension, renewal or
replacement, and that such extension, renewal or replacement shall be limited to all or
part of the assets which were the subject of the Lien so extended, renewed or replaced
(plus improvements and construction on such assets); and

 

52

     (k) other Liens securing Indebtedness; provided that the aggregate principal
amount of all Indebtedness of the Borrower and the Subsidiaries that is secured by Liens permitted by this clause (k) shall not exceed at any time the greater
of (i) 7.5% of Shareholders’ Equity as of the end of the most recently completed fiscal
quarter and (ii) $1,000,000,000.

          SECTION 6.02. Fundamental Changes. The Borrower will not consolidate with or merge
into any other Person or convey or transfer its properties and assets substantially as an entirety
to any Person, unless (i) the Borrower or another solvent corporation that is incorporated under
the laws of the United States, any state thereof or the District of Columbia is the surviving
corporation of any such consolidation or merger or is the Person that acquires by conveyance or
transfer the properties and assets of the Borrower substantially as an entirety; (ii) if a Person
other than the Borrower is the surviving corporation as described in clause (i) above or is the
Person that acquires the property and assets of the Borrower substantially as an entirety, it shall
expressly assume the performance of every covenant of this Agreement on the part of the Borrower to
be performed or observed; (iii) immediately after giving effect to such transaction, no Default
shall have occurred and be continuing; and (iv) if the Borrower is not the surviving corporation,
the Borrower shall deliver to the Payment Agent a certificate of a Financial Officer and an opinion
of its General Counsel, each stating that such transaction complies with this Section and that all
conditions precedent herein provided for relating to such transaction have been complied with.

          SECTION 6.03. Consolidated Debt to Capitalization Ratio. The Borrower will not permit
the ratio of (i) Consolidated Debt to (ii) the sum of Consolidated Debt and Shareholders’ Equity as
of the last day of any fiscal quarter to exceed 65.0%.

ARTICLE VII

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 any fee payable under
this Agreement, when and as the same shall become due and payable, and such failure shall
continue unremedied for a period of 5 days;

     (c) the Borrower shall fail to pay within 30 days after written request for payment by
any Lender acting through the Payment Agent any other amount (other than an amount referred
to in clause (a) or (b) of this Article) payable under this Agreement;

 

53

     (d) any representation or warranty made by the Borrower or any Guarantor in Article
III of this Agreement or any certificate or writing furnished pursuant to this Agreement
shall prove to have been incorrect in any material respect when made and the facts and
circumstances giving rise to such deficiency shall remain unremedied for 5 days after
written notice thereof shall have been given to the Borrower by the Payment Agent at the
request of the Required Lenders;

     (e) the Borrower shall fail to observe or perform any covenant or agreement contained
in Section 1.06 or Article VI;

     (f) the Borrower shall fail to perform any covenant or agreement incorporated by
reference by Section 5.08 within the period of grace or cure (if any) provided by the
Capital Markets Agreement from which the applicable covenant or agreement is incorporated;

     (g) any Loan Party shall fail to observe or perform any covenant or agreement
contained in this Agreement (other than those specified in clause (a), (b), (c), (e) or (f)
of this Article), and such failure shall continue unremedied for a period of 30 days after
written notice thereof from the Payment Agent to the Borrower (which notice will be given
at the request of the Required Lenders);

     (h) Funded Debt in an aggregate principal amount which is in excess of $150,000,000
shall become due before its stated maturity by the acceleration of the maturity thereof by
reason of default, or Funded Debt in an aggregate principal amount which is in excess of
$150,000,000 shall become due by its terms and shall not be paid and, in any case aforesaid
in this clause (h), corrective action satisfactory to the Required Lenders shall not be
taken within 5 days after written notice of the situation shall have been given to the
Borrower by the Payment Agent at the request of the Required Lenders);

     (i) an involuntary case or other proceeding shall be commenced against the Borrower or
any Significant Subsidiary seeking liquidation, reorganization or other relief with respect
to its debts under any Federal, state or foreign bankruptcy, insolvency, or other similar
law now or hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of it or any substantial part of its
property, and, such involuntary case or other proceeding shall remain undismissed and
unstayed for a period of 90 days, or an order for relief shall be entered against the
Borrower or any Significant Subsidiary under any such bankruptcy laws as now or hereafter
in effect;

     (j) 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 case or other

 

54

proceeding described in clause (i) of this Article,
(iii) apply for or consent to 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, (iv) admit in writing its inability to pay its debts as they become due, (v) make a
general assignment for the benefit of creditors or (vi) take any corporate action to
authorize any of the foregoing;

     (k) (i) a final judgment for the payment of money in excess of $150,000,000, excluding
(A) any amounts covered by insurance as to which the insurance company shall have
acknowledged coverage so long as such insurance company is not a captive insurance
subsidiary of the Borrower and (B) the amount of any judgment against a Significant
Subsidiary that exceeds the fair market value of the assets of such Significant Subsidiary
(but only if neither the Borrower nor any other Significant Subsidiary is directly or
contingently liable therefor), shall have been entered against the Borrower or any
Significant Subsidiary and (ii) the Borrower or such Significant Subsidiary shall not
satisfy the same within 60 days, or cause execution thereon to be stayed within 60 days,
and such failure to satisfy or stay such judgment shall remain unremedied for 5 days after
notice thereof shall be given to the Borrower by the Payment Agent at the request of the
Required Lenders;

     (l) (i) the termination of, or the imposition of liability (other than for premiums
under Section 4007 of ERISA) under Title IV of ERISA in respect of, or the appointment of a
trustee under Title IV of ERISA to administer, any Plan or Plans having aggregate Unfunded
Liabilities in excess of $150,000,000 or (ii) the imposition of withdrawal liability to a
Multiemployer Plan involving a current payment obligation in excess of $150,000,000, which,
in either case, results in an immediately due legal liability in excess of $150,000,000
which has not been satisfied within 60 days and such failure to satisfy is unremedied for 5
days after notice thereof shall have been given to the Borrower by the Payment Agent at the
request of the Required Lenders;

     (m) the guarantee of any Guarantor under Article IX shall not be (or shall be asserted
by any Loan Party not to be) valid or in full force and effect except in connection with a
termination of such guarantee in accordance with Section 9.02 or Section 10.13; or

     (n) a Change in Control shall occur;

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

 

55

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 in case of any event with respect to the Borrower described in clause (i) or (j)
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 VIII

The Payment Agent

          Each of the Lenders and each of the Issuing Banks hereby irrevocably appoints the Payment
Agent as its agent and authorizes the Payment Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Payment Agent by the terms hereof, together with such
actions and powers as are reasonably incidental thereto.

          The bank serving as the Payment Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not the
Payment 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 the Payment Agent hereunder.

          The Payment Agent shall not have any duties or obligations except those expressly set forth
herein. Without limiting the generality of the foregoing, (a) the Payment Agent shall not be
subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and
is continuing, (b) the Payment Agent shall not have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers expressly contemplated
hereby that the Payment 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 10.02), and (c) except as expressly set forth herein, the
Payment Agent shall not have any duty to disclose, and shall not be liable for the failure to
disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated
to or obtained by the bank serving as the Payment Agent or any of its Affiliates in any capacity.
The Payment Agent shall not be liable for any action taken or not taken by it with the consent or
at the request of the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 10.02) or in the absence of its own
gross negligence or wilful misconduct. The Payment Agent shall be deemed not to have knowledge of
any Default unless and until

 

56

written notice thereof is given to the Payment Agent by the Borrower
or a Lender, and the Payment Agent shall not be responsible for or have any duty to ascertain or inquire into
(i) any statement, warranty or representation made in or in connection with this Agreement, (ii)
the contents of any certificate, report or other document delivered hereunder or in connection
herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Payment Agent.

          The Payment 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. The
Payment Agent also may rely upon any statement made to it orally or by telephone and believed by it
to be made by the proper Person, and shall not incur any liability for relying thereon. The
Payment Agent may consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or experts.

          The Payment Agent may perform any and all its duties and exercise its rights and powers by or
through any one or more sub-agents appointed by the Payment Agent. The Payment Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to
any such sub-agent and to the Related Parties of the Payment Agent and any such sub-agent, and
shall apply to their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as the Payment Agent.

          Subject to the appointment and acceptance of a successor Payment Agent as provided in this
paragraph, the Payment 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, in
consultation with the Borrower, to appoint a successor. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Payment Agent gives notice of its resignation, then the retiring Payment Agent may (in
consultation with, and (unless an Event of Default of the types described in paragraph (i) or (j)
of Article VII has occurred and is continuing with respect to the Borrower) with the consent of the
Borrower, which consent may not be unreasonably withheld), on behalf of the Lenders and the Issuing
Banks, appoint a successor Payment Agent which shall be a bank with an office in New York, New
York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Payment Agent
hereunder by a successor, such successor shall succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Payment Agent, and the retiring Payment Agent shall
be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a
successor Payment Agent shall be the same as those payable to its predecessor unless otherwise
agreed between the

 

57

Borrower and such successor. After the Payment Agent’s resignation hereunder,
the provisions of this Article and Section 10.03 shall continue in effect for the benefit of such
retiring Payment Agent, its sub-agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while it was acting as Payment Agent.

          Each Lender acknowledges that it has, independently and without reliance upon the Payment
Agent or any other Lender and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Payment Agent or any other
Lender and based on such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based upon this
Agreement, any related agreement or any document furnished hereunder or thereunder.

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

ARTICLE IX

Guarantee

          SECTION 9.01. Guarantee. In order to induce the Lenders to extend credit to the
Borrower hereunder, each Guarantor hereby irrevocably and unconditionally guarantees the due and
punctual payment of the Obligations. Each Guarantor further agrees that the Obligations may be
extended or renewed, in whole or in part, without notice to or further assent from it, and that it
will remain bound upon its guarantee hereunder notwithstanding any such extension or renewal of any
Obligation. This guarantee is subject to release in the manner described in Section 9.02.

          Each Guarantor waives presentment to, demand of payment from and protest to the Borrower of
any of the Obligations, and also waives notice of acceptance of its obligations and notice of
protest for nonpayment. The obligations of each Guarantor hereunder shall not be affected by (a)
the failure of any Lender to assert any claim or demand or to enforce any right or remedy against
the Borrower under the provisions of this Agreement or otherwise; (b) any extension or renewal of
any of the Obligations; (c) any rescission, waiver, amendment or modification of, or release from,
the Obligations or any of the terms or provisions of this Agreement; (d) the failure or delay of
any Lender to exercise any right or remedy against any other guarantor of the Obligations; (e) the
failure of any Lender to assert any claim or demand or to enforce any remedy under this Agreement
or any other agreement or instrument; (f) any default,

 

58

failure or delay, wilful or otherwise, in the performance of the Obligations; or (g) any other act, omission or
delay to do any other act which may or might in any manner or to any extent vary the risk of
any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity or
which would impair or eliminate any right of any Guarantor to subrogation.

          Each Guarantor further agrees that its guarantee hereunder constitutes a promise of payment
when due, subject to applicable periods of grace (whether or not any bankruptcy or similar
proceeding shall have stayed the accrual or collection of any of the Obligations or operated as a
discharge thereof) and not merely of collection, and waives any right to require that any resort be
had by any Lender, the Payment Agent or any Issuing Bank to any balance of any deposit account or
credit on the books of any Lender, the Payment Agent or any Issuing Bank in favor of the Borrower
or any Subsidiary or any other Person.

          The obligations of the Guarantors hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, and shall not be subject to any defense or setoff,
counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality or
unenforceability of the Obligations, any impossibility in the performance of the Obligations or
otherwise.

          Each Guarantor further agrees that its obligations hereunder shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation
is rescinded or must otherwise be restored by any Lender upon the bankruptcy or reorganization of
the Borrower or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Lender, the
Payment Agent or any Issuing Bank may have at law or in equity against any Guarantor by virtue
hereof, upon the failure of the Borrower to pay any Obligation when and as the same shall become
due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor
hereby promises to and will, upon receipt of written demand by the Payment Agent, forthwith pay, or
cause to be paid, to the Payment Agent, for distribution to the Lenders, the Payment Agent or the
Issuing Banks, as appropriate, in cash an amount equal the unpaid principal amount of such
Obligation.

          Upon payment in full by a Guarantor of any Obligation of the Borrower, each Lender shall, in a
reasonable manner, assign to such Guarantor, as applicable, the amount of such Obligation owed to
such Lender and so paid, such assignment to be pro tanto to the extent to which the Obligation in
question was discharged by such Guarantor or make such disposition thereof as such Guarantor shall
direct (all without recourse to any Lender and without any representation or warranty by any
Lender). Upon payment by a Guarantor of any sums as provided above, all rights of such Guarantor
against the Borrower arising as a result thereof by way of right of subrogation or otherwise shall
in all respects be subordinated and junior in right of payment to the prior indefeasible payment in
full of all the Obligations owed by the Borrower to the Lenders.

 

59

          SECTION 9.02. Release of Guarantee. Notwithstanding anything in this Agreement to the
contrary, in the event that at any time (a) a Guarantor has no Capital
Markets Debt outstanding, and (b) no other Capital Markets Debt of the Borrower or any
Significant Subsidiary is guaranteed or is required to be guaranteed by such Guarantor, the
guarantee of such Guarantor under this Article IX shall be automatically released (it being
understood that such release may occur concurrently with any repayment of Capital Markets Debt or
release of a guarantee of other Capital Markets Debt that results in the conditions set forth in
the preceding clauses (a) and (b) being satisfied). The Guarantors may also be released from the
guarantee set forth in Section 9.01 in the manner described in Section 10.13. Any release of a
Guarantor pursuant to this Section 9.02 or Section 10.13 shall be irrevocable. The Payment Agent
shall promptly confirm in writing any release of a Guarantor pursuant to this Section or Section
10.13 upon the request of the Borrower.

ARTICLE X

Miscellaneous

          SECTION 10.01. 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 Northrop Grumman Corporation, 1840 Century Park East,
Los Angeles, CA 90067-2199, Attention of Assistant Treasurer (Telecopy No. (310) 201-3088);

     (ii) if to the Payment Agent to JPMorgan Chase Bank, N.A., Loan and Agency Services
Group, 1111 Fannin Street, 10th Floor, Houston, TX 77002, Attention of Loan
Services (Telecopy No. (713) 750 — 2938), with a copy to JPMorgan Chase Bank, N.A., 270
Park Avenue, New York, NY 10017, Attention of Richard Smith (Telecopy No. (212)270-5100);

     (iii) if to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., Attention of
Loan Services (Telecopy No. (713) 750 — 2938); 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 Payment Agent; provided
that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the
Payment Agent and the applicable Lender. The Payment Agent or the Borrower may, in its discretion,
agree to accept notices and other communications to it hereunder by electronic communications
pursuant to procedures

 

60

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 Payment Agent of any changes
to the information set forth in its Administrative Questionnaire.

          SECTION 10.02. Waivers; Amendments. (a) No failure or delay by the Payment Agent,
any Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Payment Agent,
the Issuing Banks and the Lenders hereunder 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 consent
to any departure by any 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 Payment Agent, any Lender or any Issuing Bank
may have had notice or knowledge of such Default at the time.

          (b) Except as set forth in paragraph (c) below, neither this Agreement nor any provision
hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders or by the Borrower and the Payment Agent with
the consent of the Required Lenders or, with respect to any waiver, amendment or modification of
Article IX hereof, by the Loan Parties and the Payment 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 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 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 2.18(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v) change any of the
provisions of this Section or the definition of “Required 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,

 

61

without the written consent of each Lender or (vi) release the Guarantors from their respective obligations under Article IX
(other than as provided for in Section 9.02 or Section 10.13), without the written consent of each
Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Payment Agent,
any Issuing Bank or the Swingline Lender hereunder without the prior written consent of the Payment
Agent, such Issuing Bank or the Swingline Lender, as the case may be.

          (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 10.02(c)
being referred to as a “Non-Consenting Lender”), then, so long as the Lender that is acting as the
Payment Agent is not a Non-Consenting Lender, at the Borrower’s request, any assignee identified by
the Borrower (with the consent of such assignee) that is acceptable to the Payment Agent (and that
is not a Non-Consenting Lender) shall have the right, with the Payment Agent’s consent, 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 10.04(b)(ii)), all the Commitments and Revolving Credit Exposure of such Non-Consenting
Lender for an amount equal to the principal balance of all Revolving 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 2.15, 2.16 and 2.17), such purchase and sale to be
consummated pursuant to an executed Assignment and Assumption in accordance with Section 10.04(b)
(which Assignment and Assumption need not be signed by such Non-Consenting Lender).

          SECTION 10.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i)
all reasonable out-of-pocket expenses incurred by the Payment Agent and its Affiliates, including
the reasonable fees, charges and disbursements of counsel for the Payment Agent, in connection with
(A) the primary syndication of the credit facilities provided for herein through the Effective Date
and (B) the preparation and administration of this Agreement and 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 Payment Agent, any
Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for the
Payment Agent, any Issuing Bank or any Lender, in connection with the enforcement or protection of
its rights under or in connection with this Agreement, including its rights under this Section, or
in connection with the Loans made or Letters of Credit issued hereunder, including all such
reasonable out-of-pocket expenses incurred during any workout, restructuring or negotiations in
respect of such Loans or Letters of Credit.

 

62

          (b) The Borrower shall indemnify the Payment Agent, 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 (other than Excluded Taxes),
including the reasonable and documented 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 and delivery of this Agreement or any agreement or instrument contemplated
hereby, the performance by the parties hereto of their respective obligations hereunder or the
consummation of the Transactions, (ii) any Loan or Letter of Credit or the use of the proceeds
therefrom (including any refusal by any 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), or (iii) 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 shall have resulted from the
gross negligence or wilful misconduct of such Indemnitee or its Affiliates, officers, directors,
employees, advisors or agents.

          (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the
Payment Agent, any Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section,
each Lender severally agrees to pay to the Payment Agent, such Issuing Bank or the Swingline
Lender, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, shall have been incurred by or asserted against the Payment
Agent, such Issuing Bank or the Swingline Lender in its capacity as such.

          (d) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with or as a result of this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable promptly after written demand
therefor, together with reasonable detail and supporting documentation.

          SECTION 10.04. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (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

 

63

consent of each Lender and (ii) no Lender may
assign or otherwise transfer its rights or obligations hereunder except in accordance with this
Section (and any attempted assignment or transfer not in compliance with the terms of this Section shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns permitted hereby
(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 Payment 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 or an Approved Fund, or, if an
Event of Default has occurred and is continuing, any other assignee; provided
further, that the Borrower, in determining whether to give such consent, may
reasonably consider, without limitation, the financial capability, the financial rating and
location of a proposed assignee and any prior business relationships between the Borrower
and a proposed assignee, provided that such determination shall be made by the Borrower in
good faith and after consideration of all relevant factors; and

     (B) the Payment Agent; provided that no consent of the Payment Agent shall be
required for an assignment of a Commitment to an assignee that is a Lender with a
Commitment immediately prior to giving effect to such assignment.

          (ii) Each Assignment 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
Competitive Loans , the amount of the Commitment 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 Payment Agent) shall not be less than $10,000,000
unless each of the Borrower and the Payment 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 apply to rights in respect of outstanding Competitive Loans;

 

64

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

     (D) the assignee, if it is not already a Lender, shall deliver to the Payment Agent an
Administrative Questionnaire; and

     (E) the assignee shall have executed and delivered to the Payment Agent and to the
Borrower a Confidentiality Agreement.

          (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
Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of
Sections 2.15, 2.16, 2.17 and 10.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 10.04 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 Payment 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 and Confidentiality Agreement 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 absent manifest error, and the Borrower, the Payment Agent, the
Issuing Banks 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 a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire and (unless the
assignee is already a Lender) a Confidentiality Agreement, 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 Payment Agent shall accept such Assignment and Assumption and
record the information contained therein in the Register. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in this
paragraph.

 

65

          (c) (i) Any Lender may, without the consent of the Borrower, the Payment Agent, any Issuing
Bank or the 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 owing to it) in compliance
with this Section 10.04; 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 Borrower, the Payment 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 and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 10.02(b) that affects such Participant, and (D)
such Lender shall not provide any information to the Participant concerning the Borrower and its
Subsidiaries, the disclosure of which would be prohibited by Section 10.11, unless the Participant
has executed a Confidentiality Agreement and delivered a copy thereof to the Borrower and the
Payment Agent and the Borrower has expressly consented to the delivery of confidential information
to such Participant. Subject to paragraph (c) (ii) of this Section, the Borrower agrees that each
Lender shall be entitled to make a claim against the Borrower on behalf of any Participant to whom
it has sold participations for the benefits of Sections 2.15, 2.16 and 2.17.

          (ii) A Participant shall not be entitled to receive any greater payment under Section 2.15 or
2.17 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.17 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 2.17(e) as though it were a Lender.

          (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 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 10.05. Survival. All covenants, agreements, representations and warranties
made by the Loan Parties herein and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement and the making
of any Loans and issuance of

 

66

any Letters of Credit, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Payment 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 any fee or any other amount payable under this Agreement 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 2.15, 2.16, 2.17 and 10.03 and Article VIII
shall survive and remain in full force and effect regardless of the consummation of the
Transactions, the repayment of the Loans, the expiration or termination of the Letters of Credit
and the Commitments or the termination of this Agreement or any provision hereof.

          SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the
Payment 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 Payment Agent and when the Payment Agent shall
have received counterparts hereof which, when taken together, bear the signatures of each of the
other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by Telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

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

          SECTION 10.08. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

     (b) Each of the parties to this Agreement hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New
York sitting in New York County and of the United States District Court of the Southern District of
New York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to 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

 

67

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 of any party to bring any action or proceeding relating to this
Agreement against the Borrower or its properties in the courts of any jurisdiction.

          (c) Each of the parties to this Agreement 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 paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

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

          SECTION 10.09. 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 THE TRANSACTIONS
(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 10.10. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 10.11. Confidentiality. Each of the Payment Agent, the Issuing Banks and the
Lenders agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (collectively, the
“Representatives”) (it being understood that any Representative to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed to keep such
Information confidential in accordance with the terms of this Section), (b) to the extent requested
by any regulatory or self-regulatory authority, (c) to the extent required by applicable laws or
regulations or

 

68

by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder, (f) subject to a Confidentiality
Agreement executed in favor of the Borrower, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) designated by the Loan Parties to any
swap or derivative transaction relating to the Borrower and its obligations, provided such
actual or prospective assignee, Participant or counterparty first executes and delivers to the
Borrower a Confidentiality Agreement, (g) with the written consent of the Borrower acting through a
Financial Officer or (h) to the extent such Information (i) becomes publicly available other than
as a result of a breach of this Section or (ii) becomes available to the Payment Agent, any Issuing
Bank or any Lender on a nonconfidential basis from a source other than the Borrower,
provided that the Payment Agent, the applicable Lender or the applicable Issuing Bank
shall, in connection with any disclosure pursuant to clause (b) or (c) above (other than disclosure
made in the course of a bank examination), give to the Borrower any notice that it is not
prohibited from providing of the requirement of such disclosure. Each of the Payment Agent, the
Issuing Banks and the Lenders agrees that it shall be responsible for any breach of this Section
that results from the actions or omissions of its Representatives. For the purposes of this
Section. “Information” means all information received from the Borrower relating to the
Borrower, its Subsidiaries or their respective businesses, other than any such information that is
available to the Payment Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to
disclosure by the Borrower.

          SECTION 10.12. 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 10.13. Release of Guarantees. In the event of a disposition of all the
capital stock in a Guarantor to a Person other than the Borrower or a Subsidiary in a transaction
not prohibited by any covenant contained in this Agreement, the Payment Agent is hereby directed
and authorized to take such action and to execute such documents as the Borrower may reasonably
request, at the Borrower’s sole expense, to evidence or effect the release of any guarantee by such
Guarantor under this Agreement.

 

69

          SECTION 10.14. 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
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 10.14 shall
survive the termination of this Agreement and the payment of all other amounts owing hereunder.

          SECTION 10.15. USA Patriot Act Notice. Each Lender and the Payment Agent (for itself
and not on behalf of any Lender) hereby notifies each Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and other information
that will allow such Lender or the Payment Agent, as applicable, to identify the Borrower in
accordance with the Act.

          SECTION 10.16. No Fiduciary Relationship. Each of the Loan Parties hereby
acknowledges that none of the Payment 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 Payment Agent, 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]

 

70

          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.

	 	 	 	 	 	 	 	 	 
	 	 	NORTHROP GRUMMAN	 	 
	 	 	CORPORATION, as Borrower,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	NORTHROP GRUMMAN SYSTEMS	 	 
	 	 	CORPORATION, as Guarantor,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	NORTHROP GRUMMAN SPACE &	 	 
	 	 	MISSION SYSTEMS CORP., as Guarantor,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,	 	 
	 	 	individually and as Payment Agent,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 

 

71

LENDER SIGNATURE PAGE

TO THE NORTHROP GRUMMAN

CORPORATION CREDIT AGREEMENT

	 	 	 	 	 	 	 
	 

	 	Name of Institution:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:EX-10.1

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

THIRD AMENDED AND RESTATED CENTRAL FEDERAL CORPORATION

2003 EQUITY COMPENSATION PLAN

1. DEFINITIONS

	(a)	 	“Affiliate” means any “parent corporation” or “subsidiary corporation” of the Holding
Company, as such terms are defined in Sections 424(e) and 424(f) of the Code.
	 
	(b)	 	“Award” means, individually or collectively, a grant under the Plan of Non-Statutory Stock
Options, Incentive Stock Options, Stock Appreciation Rights and Restricted Stock Awards.
	 
	(c)	 	“Bank” means CFBank and includes any of its wholly owned subsidiaries.
	 
	(d)	 	“Board of Directors” means the board of directors of the Holding Company.
	 
	(e)	 	“Change in Control” means with respect to the Bank or the Holding Company, an event of a
nature that:

	 	(i)	 	would be required to be reported in response to Item 5.01 of the current report
on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 (the “Exchange Act”); or
	 
	 	(ii)	 	results in a Change in Control of the Holding Company or the Bank within the
meaning of the Home Owner’s Loan Act of 1933, as amended, the Federal Deposit Insurance
Act and the Rules and Regulations promulgated by the Office of Thrift Supervision (the
“OTS”) (or its predecessor agency), as in effect on the date hereof (provided, that in
applying the definition of change in control as set forth under the rules and
regulations of the OTS, the Board shall substitute its judgment for that of the OTS);
or
	 
	 	(iii)	 	without limitation, such a Change in Control shall be deemed to have occurred
at such time as:

	 	(A)	 	any “person” (as the term is used in Sections 13(d) and 14(d)
of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of voting securities of
the Bank or the Holding Company representing 20% or more of the Bank’s or the
Holding Company’s outstanding voting securities or right to acquire such
securities except for any voting securities of the Bank purchased by the
Holding Company and any voting securities purchased by any employee benefit
plan of the Holding Company or its Subsidiaries; or
	 
	 	(B)	 	individuals who constitute the Board on the date hereof (the
“Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date
hereof whose election was approved by a vote of at least three-quarters of the
directors comprising the Incumbent Board, or whose nomination for election by
the Holding Company’s stockholders was approved by a Nominating Committee
solely composed of members who are Incumbent Board members, shall be, for
purposes of this clause (B), considered as though he were a member of the
Incumbent Board; or
	 
	 	(C)	 	a plan of reorganization, merger, consolidation, sale of all or
substantially all the assets of the Bank or the Holding Company or similar
transaction occurs or is effectuated in which the Bank or Holding Company is
not the resulting entity; or

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	 	(D)	 	a proxy statement has been distributed soliciting proxies from
stockholders of the Holding Company, by someone other than the current
management of the Holding Company, seeking stockholder approval of a plan of
reorganization, merger or consolidation of the Holding Company or Bank with one
or more corporations as a result of which the outstanding shares of the class
of securities then subject to such plan or transaction are exchanged for or
converted into cash or property or securities not issued by the Bank or the
Holding Company shall be distributed; or
	 
	 	(E)	 	a tender offer is made for 20% or more of the voting securities
of the Bank or Holding Company then outstanding.

	(f)	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	(g)	 	“Committee” means the committee designated, pursuant to Section 4 of the Plan, to administer
the Plan.
	 
	(h)	 	“Common Stock” means the common stock of the Holding Company, par value $.01 per share.
	 
	(i)	 	“Disability” means any mental or physical condition with respect to which the Participant
qualifies for and receives benefits under a long-term disability plan of the Holding Company
or an Affiliate, or in the absence of such a long-term disability plan or coverage under such
a plan, “Disability” shall mean a physical or mental condition which, in the sole discretion
of the Committee, is reasonably expected to be of indefinite duration and to substantially
prevent the Participant from fulfilling his duties or responsibilities to the Holding Company
or an Affiliate. In the case of Incentive Stock Options, “Disability” has the meaning set
forth in Code Section 22(e)(3).
	 
	(j)	 	“Effective Date” of this Third Amended and Restated Central Federal Corporation 2003 Equity
Compensation Plan means May 17, 2007. The original Effective Date of the Central Federal
Corporation 2003 Equity Compensation Plan, as amended herein, was April 23, 2003.
	 
	(k)	 	“Employee” means any person employed by the Holding Company or an Affiliate. Directors who
are also employed by the Holding Company or an Affiliate shall be considered Employees under
the Plan.
	 
	(l)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.
	 
	(m)	 	“Exercise Price” means the price at which an individual may purchase a share of Common Stock
pursuant to an Option.
	 
	(n)	 	“Fair Market Value” means the market price of Common Stock, determined by the Committee as
follows:

	 	(i)	 	If the Common Stock was traded on the date in question on the Nasdaq® Stock
Market, then the Fair Market Value shall be equal to the closing price reported for
such date;
	 
	 	(ii)	 	If the Common Stock was traded on a stock exchange for the date in question,
then the Fair Market Value shall be equal to the closing price reported by the
applicable composite transactions report for such date; and
	 
	 	(iii)	 	If neither of the foregoing provisions is applicable, then the Fair Market
Value shall be determined by the Committee in good faith on such basis as it deems
appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall be based on
the prices reported in The Wall Street Journal. The Committee’s determination of Fair
Market Value shall be conclusive and binding on all persons.

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	(o)	 	“Holding Company” means Central Federal Corporation (formerly Grand Central Financial Corp.)
and any entity which succeeds to the business of Central Federal Corporation.

	(p)	 	“Incentive Stock Option” means a stock option granted under the Plan that is intended to meet
the requirements of Section 422 of the Code.

	(q)	 	“Non-Statutory Stock Option” means a stock option granted to an individual under the Plan
that is not intended to be and is not identified as an Incentive Stock Option, or a stock
option granted under the Plan that is intended to be and is identified as an Incentive Stock
Option, but that does not meet the requirements of Section 422 of the Code.

	(r)	 	“Option” means an Incentive Stock Option or a Non-Statutory Stock Option.

	(s)	 	“Outside Director” means a member of the board(s) of directors of the Holding Company or an
Affiliate who is not also an Employee of the Holding Company or an Affiliate.

	(t)	 	“Participant” means any Employee or Outside Director who was granted an Option or Restricted
Stock Award under the Plan.

	(u)	 	“Plan” means this Third Amended and Restated Central Federal Corporation 2003 Equity
Compensation Plan.

	(v)	 	“Restricted Stock Award” means an Award of restricted stock granted to an individual pursuant
to Section 7 of the Plan.

	(w)	 	“Retirement” means retirement from employment with the Holding Company or an Affiliate in
accordance with the then current retirement policies of the Holding Company or Affiliate, as
applicable. “Retirement” with respect to an Outside Director means the termination of service
from the board(s) of directors of the Holding Company and any Affiliate following written
notice to such board(s) of directors of the Outside Director’s intention to retire.

	(x)	 	“Stock Appreciation Right” or “SAR” means a right to a payment provided in accordance with
Section 7 of the Plan.

	(y)	 	“Termination for Cause” shall mean, in the case of an Outside Director, removal from the
board(s) of directors of the Holding Company and its Affiliates in accordance with the
applicable by-laws of the Holding Company and its Affiliates or, in the case of an Employee,
as defined under any employment agreement with the Holding Company or an Affiliate; provided,
however, that if no employment agreement exists with respect to the Employee, Termination for
Cause shall mean termination of employment because of a material loss to the Holding Company
or an Affiliate, as determined by and in the sole discretion of the Board of Directors or its
designee(s).

2. PURPOSE

The purpose of this Plan is to:

	(a)	 	provide the Holding Company with the ability to continue using Common Stock as a means to
attract and retain Employees and Outside Directors;

	(b)	 	provide Participants with additional incentives to continue to work for the success of the
Holding Company and its Affiliates; and

	(c)	 	align the financial interests of Participants with the interests of the Holding Company’s
shareholders.

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	3.	 	ELIGIBILITY

	(a)	 	Incentive Stock Options may be granted to any individual who, at the time the Incentive Stock
Option is granted, is an Employee.
	 
	(b)	 	Non-Qualified Stock Options may be granted to Employees and Outside Directors.
	 
	(c)	 	Stock Appreciation Rights may be granted to Employees and Outside Directors.
	 
	(d)	 	Restricted Stock Awards may be granted to Employees and Outside Directors.
	 
	4.	 	ADMINISTRATION
	 
	(a)	 	The Committee shall administer the Plan. The Committee shall consist of the entire Board of
Directors of the Company.
	 
	(b)	 	The Committee shall:

	 	(i)	 	select the individuals who are to receive grants of Awards under the Plan;
	 
	 	(ii)	 	determine the type, number, vesting requirements and other features and
conditions of such Awards made under the Plan;
	 
	 	(iii)	 	interpret the Plan and Award Agreements (as defined below); and
	 
	 	(iv)	 	make all other decisions related to the operation of the Plan.

In granting Awards under the Plan, the Committee shall consider recommendations of the Chief
Executive Officer. The Committee shall adopt any rules or guidelines that it deems
appropriate to implement and administer the Plan. The Committee’s determinations under the
Plan shall be final and binding on all persons.

	(c)	 	Each Award granted under the Plan shall be evidenced by a written agreement (“Award
Agreement”). Each Award Agreement shall constitute a binding contract between the Holding
Company or an Affiliate and the Award holder, and every Award holder, upon acceptance of an
Award Agreement, shall be bound by the terms and restrictions of the Plan and the Award
Agreement. The terms of each Award Agreement shall be set in accordance with the Plan, but
each Award Agreement may also include any additional provisions and restrictions determined by
the Committee. In particular, and at a minimum, the Committee shall set forth in each Award
Agreement:

	 	(i)	 	the type of Award granted;
	 
	 	(ii)	 	the Exercise Price of any Option or base price of any SAR;
	 
	 	(iii)	 	the number of shares subject to the Award;
	 
	 	(iv)	 	the expiration date of the Award;
	 
	 	(v)	 	the manner, time and rate (cumulative or otherwise) of exercise or vesting of
the Award; and
	 
	 	(vi)	 	the restrictions, if any, placed on the Award, or upon shares which may be
issued upon the exercise or vesting of the Award.

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

The Chairman of the Committee and such Outside Directors and Employees as shall be
designated by the Committee are hereby authorized to execute Award Agreements on behalf of
the Holding Company or an Affiliate and to cause them to be delivered to the recipients of
Awards granted under the Plan.

	(d)	 	The Committee may delegate all authority for the determination of forms of payment to be made
or received by the Plan and for the execution of any Award Agreement. The Committee may rely
on the descriptions, representations, reports and estimates provided to it by the management
of the Holding Company or an Affiliate for determinations to be made pursuant to the Plan.
	 
	5.	 	STOCK SUBJECT TO THE PLAN
	 
	(a)	 	Subject to adjustment as provided in Section 13 of the Plan, the number of shares reserved
for issuance under the Plan is 500,000. The share reserve includes shares of Common Stock
previously issued under the Plan prior to the Plan’s restatement. The following limits also
apply with respect to Awards granted under the Plan:

	 	(i)	 	The maximum number of shares of Common Stock that may be delivered pursuant to
Incentive Stock Options granted under the Plan is 500,000 shares less
the number of shares of Common Stock issued pursuant to Non-Statutory Stock Options and Restricted
Stock Awards.
	 
	 	(ii)	 	The maximum number of shares of Common Stock that may be delivered pursuant to
Non-Statutory Stock Options granted under the Plan is 500,000 shares
less the number of shares of Common Stock issued pursuant to Incentive Stock Options and Restricted Stock
Awards.
	 
	 	(iii)	 	The maximum number of Shares of Common Stock that may be delivered pursuant to
Restricted Stock Awards granted under the Plan is 150,000 Shares.

	(b)	 	The shares of Common Stock issued under the Plan may be either authorized but unissued shares
or authorized shares previously issued and acquired or reacquired by the Holding Company.
Shares underlying outstanding Awards will be unavailable for any other use, including future
grants under the Plan, except that, to the extent the Awards terminate, expire or are
forfeited without vesting or having been exercised, new Awards may be granted with respect to
these shares subject to the limitations set forth in this Section 5.

	(c)	 	To the extent that an Award is settled in cash or a form other than shares of Common Stock,
the shares that would have been delivered had there been no such cash or other settlement
shall not be counted against the shares available for issuance under this Plan. Shares of
Common Stock that are exchanged by a Participant or withheld by the Holding Company as full or
partial payment in connection with any Award under this Plan, as well as any shares exchanged
by a Participant or withheld by the Holding Company to satisfy the tax withholding obligations
related to any Award under this Plan, shall be available for subsequent Awards under this
Plan.

6. OPTIONS

The Committee may, subject to the limitations of this Plan and the availability of shares of Common
Stock reserved but not previously awarded under the Plan, grant Options to Employees and outside
directors, subject to terms and conditions as it may determine, to the extent that such terms and
conditions are consistent with the following provisions:

	(a)	 	Exercise Price. The Exercise Price shall not be less than one hundred percent (100%) of the
Fair Market Value of the Common Stock on the date of grant.

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	(b)	 	Terms of Options. In no event may an individual exercise an Option, in whole or in part,
more than ten (10) years from the date of grant.

	(c)	 	Non-Transferability. Unless otherwise determined by the Committee in accordance with this
Section 6(c), an individual may not transfer, assign, hypothecate, or dispose of an Option in
any manner, other than by will or the laws of intestate succession. The Committee may,
however, in its sole discretion, permit transfer or assignment of a Non-Statutory Stock
Option, if it determines that the transfer or assignment is for valid estate planning purposes
and is permitted under the Code and Rule 16b-3 of the Exchange Act. For
	 
	 	 	purposes of this Section 6(c), a transfer for valid estate planning purposes includes, but
is not limited to, transfers:

	 	(i)	 	to a revocable inter vivos trust, as to which an individual is both settlor and
trustee; or
	 
	 	(ii)	 	for no consideration to:

	 	(A)	 	any member of the individual’s Immediate Family;
	 
	 	(B)	 	a trust solely for the benefit of members of the individual’s
Immediate Family;
	 
	 	(C)	 	any partnership whose only partners are members of the
individual’s Immediate Family; or
	 
	 	(D)	 	any limited liability corporation or other corporate entity
whose only members or equity owners are members of the individual’s Immediate
Family.

For purposes of this Section 6(c), “Immediate Family” includes, but is not necessarily
limited to, an individual’s parents, grandparents, spouse, children, grandchildren, siblings
(including half brothers and sisters), and individuals who are family members by adoption.
Nothing contained in this Section 6(c) shall be construed to require the Committee to
approve the transfer or assignment of any Non-Statutory Stock Option, in whole or in part.
Receipt of the Committee’s approval to transfer or assign a Non-Statutory Stock Option, in
whole or in part, does not mean that the Committee must approve a transfer or assignment of
any other Non-Statutory Stock Option, or portion thereof. The transferee or assignee of any
Non-Statutory Stock Option shall be subject to all terms and conditions applicable to the
Option immediately prior to transfer or assignment, and shall remain subject to any other
conditions proscribed by the Committee with respect to the Option.

	(d)	 	Special Rules for Incentive Stock Options. Notwithstanding foregoing provisions, the
following rules apply to the grant of Incentive Stock Options:

	 	(i)	 	If an Employee owns or is treated as owning, for purposes of Section 422 of the
Code, Common Stock representing more than ten percent (10%) of the total combined
voting securities of the Holding Company at the time the Committee grants the Incentive
Stock Option (a “10% Owner”), the Exercise Price shall not be less than one hundred and
ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant.
	 
	 	(ii)	 	An Incentive Stock Option granted to a 10% Owner shall not be exercisable more
than five (5) years from the date of grant.
	 
	 	(iii)	 	To the extent the aggregate Fair Market Value of shares of Common Stock with
respect to which Incentive Stock Options are exercisable for the first time by an
Employee during any calendar year, under the Plan or any other stock option plan of the
Holding Company, exceeds $100,000, or such higher value as may be permitted under
Section 422 of the Code, Options in excess of the

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	 	 	 	limit shall be treated as
Non-Statutory Stock Options. Fair Market Value shall be determined as of the date of
grant for each Incentive Stock Option.
	 
	 	(iv)	 	Each Award Agreement for an Incentive Stock Option shall require the individual
to notify the Committee within ten (10) days of any disposition of shares of Common
Stock under the circumstances described in Section 421(b) of the Code (relating to
certain disqualifying dispositions).
	 
	 	(v)	 	Incentive Stock Options exercised more than three (3) months following the date
an Employee terminates employment (for reasons other than death or Disability) will be
treated as Non-Statutory Stock Options. In the event employment is terminated due to
death or Disability, Incentive Stock Options will remain exercisable for one (1) year
from the date the Employee terminates employment.

	(e)	 	Acceleration Upon a Change in Control. Upon a Change in Control, all Options held by an
individual as of the date of the Change in Control shall immediately become exercisable and
shall remain exercisable until the expiration of the Option term.

	(f)	 	Termination of Employment or Service. The following rules apply upon the termination of a
Participant’s employment or other service:

	 	(i)	 	In General. Unless the Committee determines otherwise, upon termination of
employment or service for any reason other than Retirement, Disability or death, or
Termination for Cause, a Participant may exercise only those Options that were
immediately exercisable by the Participant at the date of termination, and only for a
period of three (3) months from the date of termination, or, if sooner, until the
expiration of the Option term.
	 
	 	(ii)	 	Retirement. Unless the Committee determines otherwise, upon a Participant’s
Retirement, the Participant may exercise only those Options that were immediately
exercisable by the Participant at the date of Retirement, and only for a period of one
(1) year from the date of Retirement, or, if sooner, until the expiration of the Option
term. Incentive Stock Options exercised more than three (3) months following a
Participant’s Retirement date will be treated as Non-Statutory Stock Options for tax
purposes.
	 
	 	(iii)	 	Disability or Death. Unless the Committee determines otherwise, upon
termination of a Participant’s employment or service due to Disability or death, all
Options shall become immediately exercisable and shall remain exercisable for a period
of one (1) year from the date of termination, or, if sooner, until the expiration of
the Option term.
	 
	 	(iv)	 	Termination for Cause. Unless the Committee determines otherwise, upon
Termination for Cause, all rights to a Participant’s Options shall expire immediately
upon the effective date of Termination for Cause.

7. STOCK APPRECIATION RIGHTS

An SAR shall provide a Participant with the right to receive a payment, in cash and/or Common
Stock, equal to the excess of the Fair Market Value of a specified number of shares of Common Stock
on the date the SAR is exercised over the Fair Market Value of a share of Common Stock on the date
the SAR was granted (the “base price”) as set forth in the applicable Award Agreement, provided,
however, that, in the case of an SAR granted retroactively, in tandem with or as a substitution for
another Award, the base price may be no lower than the Fair Market Value of a share of Common Stock
on the date such other Award was granted. The maximum term of an SAR shall be ten (10) years.
Notwithstanding the foregoing, effective on and after January 1, 2005, the exercise of an SAR shall
entitle the Participant to receive payment with respect to such SAR only in the form of Common
Stock. Further, effective

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

January 1, 2005, the base price of an SAR may never be less than the
Fair Market Value of a share of Common Stock on the date that the SAR is awarded even if the SAR is
awarded in tandem with or as substitution for another Award.

	(a)	 	Termination of Employment or Service. The following rules apply upon the termination of a
Participant’s employment or other service:

	 	(i)	 	In General. Unless the Committee determines otherwise, upon termination of
employment or service for any reason other than Retirement, Disability or death, or
Termination for Cause, a Participant may exercise only those SARs that were immediately
exercisable by the Participant at the date of termination, and only for a period of
three (3) months from the date of termination, or, if sooner, until the expiration of
the SAR term.
	 
	 	(ii)	 	Retirement. Unless the Committee determines otherwise, upon a Participant’s
Retirement, the Participant may exercise only those SARs that were immediately
exercisable by the Participant at the date of Retirement, and only for a period of one
(1) year from the date of Retirement, or, if sooner, until the expiration of the SAR
term.
	 
	 	(iii)	 	Disability or Death. Unless the Committee determines otherwise, upon
termination of a Participant’s employment or service due to Disability or death, all
SARs shall become immediately exercisable and shall remain exercisable for a period of
one (1) year from the date of termination, or, if sooner, until the expiration of the
SAR term.
	 
	 	(iv)	 	Termination for Cause. Unless the Committee determines otherwise, upon
Termination for Cause, all rights to a Participant’s SARs shall expire immediately upon
the effective date of Termination for Cause.

	(b)	 	Acceleration Upon a Change in Control. Upon a Change in Control, all SARs held by an
individual as of the date of the Change in Control shall immediately become exercisable and
shall remain exercisable until the expiration of the SAR term.

	(c)	 	Determination of Number of Shares Issuable Upon Exercise of an SAR. The number of shares of
Common Stock issuable upon the exercise of an SAR shall be determined by dividing:

	 	(i)	 	the number of shares of Common Stock for which the SAR is exercised multiplied
by the amount of appreciation per share of Common Stock (for this purpose the
“appreciation per share of Common Stock” shall be equal to the amount by which the Fair
Market Value of a share of Common Stock on the date that the SAR is exercised exceeds:

	 	(A)	 	in the case of an SAR granted in tandem with an Option, the
exercise price with respect to such Option; or
	 
	 	(B)	 	in the case of an SAR granted alone without reference to an
Option, the base price of the SAR);
	 
	 	 	 	by

     (ii) the Fair Market Value of a share of Common Stock on the date that the SAR is exercised.

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

8. RESTRICTED STOCK AWARDS

     The Committee may make grants of Restricted Stock Awards, which shall consist of the grant of some
number of shares of Common Stock to an individual upon such terms and conditions as it may
determine to the extent such terms and conditions are consistent with the following provisions:

	(a)	 	Grants of Stock. Restricted Stock Awards may only be granted in whole shares of Common
Stock.

	(b)	 	Non-Transferability. Except to the extent permitted by the Code, the rules promulgated under
Section 16(b) of the Exchange Act or any successor statutes or rules:

	 	(i)	 	The recipient of a Restricted Stock Award grant shall not sell, transfer,
assign, pledge, or otherwise encumber shares subject to the grant until full vesting of
such shares has occurred. For purposes of this section, the separation of beneficial
ownership and legal title through the use of any “swap” transaction is deemed to be a
prohibited encumbrance.
	 
	 	(ii)	 	Unless determined otherwise by the Committee and except in the event of the
Participant’s death or pursuant to a domestic relations order, a Restricted Stock Award
grant is not transferable and may be earned in his or her lifetime only by the
individual to whom it is granted. Upon the death of a Participant, a Restricted Stock
Award grant is transferable by will or the laws of descent and distribution. The
designation of a beneficiary shall not constitute a transfer.
	 
	 	(iii)	 	If the recipient of a Restricted Stock Award is subject to the provisions of
Section 16 of the Exchange Act, shares of Common Stock subject to the grant may not,
without the written consent of the Committee (which consent may be given in the Award
Agreement), be sold or otherwise disposed of within six (6) months following the date
of grant.

	(c)	 	Acceleration of Vesting Upon a Change in Control. Upon a Change in Control, all Restricted
Stock Awards held by a Participant as of the date of the Change in Control shall immediately
become vested and any further restrictions shall lapse.

	(d)	 	Termination of Employment or Service. The following rules will govern the treatment of a
Restricted Stock Award upon the termination of a Participant’s termination of employment or
other service:

	 	(i)	 	In General. Unless the Committee determines otherwise, upon the termination of
a Participant’s employment or service for any reason other than Retirement, Disability
or death, or Termination for Cause, any Restricted Stock Award in which the Participant
has not become vested as of the date of such termination shall be forfeited and any
rights the Participant had to such Restricted Stock Award shall become null and void.
	 
	 	(ii)	 	Retirement. Unless the Committee determines otherwise, upon a Participant’s
Retirement, any Restricted Stock Award in which the Participant has not become vested
as of the date of Retirement shall be forfeited and any rights the individual had to
such unvested Restricted Stock Award shall become null and void.
	 
	 	(iii)	 	Disability or Death. Unless otherwise determined by the Committee, in the
event of a termination of a Participant’s service due to Disability or death, all
unvested Restricted Stock Awards held by such Participant shall immediately vest as of
the date of such termination.
	 
	 	(iv)	 	Termination for Cause. Unless otherwise determined by the Committee, in the
event of a Participant’s Termination for Cause, all Restricted Stock Awards in which
the Participant had not become vested as of the effective date of such termination
shall be forfeited and any rights the Participant had to such unvested Restricted Stock
Awards shall become null and void.

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	(e)	 	Issuance of Certificates. Unless otherwise held in trust and registered in the name of the
Plan trustee, reasonably promptly after the date of grant with respect to shares of Common
Stock pursuant to a Restricted Stock Award, the Holding Company shall cause to be issued a
stock certificate, registered in the name of the Participant to whom the Restricted Stock
Award was granted, evidencing such shares; provided, however, that the Holding Company shall
not cause a stock certificate to be issued unless it has received a stock power duly endorsed
in blank with respect to such shares. Each such stock certificate shall bear the following
legend:

The transferability of this certificate and the shares of stock represented hereby
are subject to the restrictions, terms and conditions (including forfeiture
provisions and restrictions against transfer) contained in the Third Amended and
Restated Central Federal Corporation 2003 Equity Compensation Plan entered into
between the registered owner of such shares and Central Federal Corporation or its
Affiliates. A copy of the Plan and Award Agreement is on file in the office of the
Corporate Secretary of Central Federal Corporation, 2923 Smith Road, Fairlawn, Ohio
44333.

	 	 	This legend shall not be removed until the individual becomes vested in such shares pursuant
to the terms of the Plan and Award Agreement. Each certificate issued pursuant to this
Section 8(e) shall be held by the Holding Company or its Affiliates, unless the Committee
determines otherwise.
	 
	(f)	 	Treatment of Dividends. Participants are entitled to all dividends and other distributions
declared and paid on Common Stock with respect to all shares of Common Stock subject to a
Restricted Stock Award, from and after the date such shares are awarded or from and after such
later date as may be specified by the Committee in the Award Agreement. The Participant shall
not be required to return any such dividends or other distributions to the Holding Company in
the event of forfeiture of the Restricted Stock Award. In the event the Committee establishes
a trust for the Plan, the Committee may elect to distribute dividends and other distributions
at the time the Restricted Stock Award vests or pay the dividends (or other distributions)
directly to the Participants.
	 
	(g)	 	Voting of Restricted Stock Awards. Participants who are granted Restricted Stock Awards are
entitled to vote or to direct the Plan trustee to vote, as the case
may be, all unvested shares of Common Stock subject to the Restricted Stock Award.

9. DEFERRED PAYMENTS

The Committee, in its discretion, may permit an individual to elect to defer the receipt of all or
any part of any cash or stock payment under the Plan, or the Committee may determine to defer
receipt by some or all individuals, of all or a portion of any payment. The Committee shall
determine the terms and conditions of any permitted deferral,
including the period of deferral, the manner of deferral and the method used to measure
appreciation on deferred amounts until paid. Notwithstanding the foregoing, the provisions of this
Section 9 shall not apply on and after January 1, 2005 to Options or SARs and, after such date, a
Participant shall not be permitted to defer the receipt of all or any part of any cash or stock
payment under an Award other than an Option or SAR made pursuant to the Plan unless such deferral
is made pursuant to such rules, procedures or programs as the Committee may establish for purposes
of this Plan and which are intended to comply with the requirements of Code Section 409A.

10. METHOD OF EXERCISING OPTIONS

Subject to any applicable Award Agreement, an individual may exercise any Option, in whole or in
part, at such time or times as the Committee specifies in the Award Agreement. The individual may
make payment of the Exercise Price in such form or forms as the Committee specifies in the Award
Agreement, including, without limitation, payment by delivery of cash, Common Stock or a cashless
exercise with a qualified broker. Any Common Stock used in full or partial payment of the Exercise
Price shall be valued at the Fair Market Value of the Common Stock on the date of exercise.
Delivery by the Holding Company of the shares as to which an Option has

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

been exercised shall be
made to the person exercising the Option or the designee of such person. If so provided by the
Committee upon grant of the Option, the shares received upon exercise may be subject to certain
restrictions upon subsequent transfer or sale by the Participant. In the event the Exercise Price
is to be paid in full or in part by surrender of Common Stock, in lieu of actual surrender of
shares of Common Stock the Holding Company may waive such surrender and instead deliver to or on
behalf of the Participant a number of shares equal to the total number of shares as to which the
Option is then being exercised less the number of shares which would otherwise have been
surrendered by the Participant to the Holding Company.

11. RIGHTS OF INDIVIDUALS

No individual shall have any rights as a shareholder with respect to any shares of Common Stock
covered by a grant under this Plan until the date of issuance of a stock certificate for such
Common Stock. Nothing contained in this Plan or in any Award Agreement confers on any person the
right to continue in the employ or service of the Holding Company or an Affiliate or interferes in
any way with the right of the Holding Company or an Affiliate to terminate an individual’s
services.

12. DESIGNATION OF BENEFICIARY

With the Committee’s consent, an individual may designate a person or persons to receive, upon the
individual’s death, any Award to which the individual would then be entitled. This designation
shall be made upon forms supplied by, or otherwise acceptable to, and delivered to the Holding
Company. A designation of beneficiary may be revoked in writing. If an individual fails to
effectively designate a beneficiary, the individual’s estate shall be deemed to be the beneficiary
for purposes of the Plan.

13. DILUTION AND OTHER ADJUSTMENTS

In the event of any change in the outstanding shares of Common Stock, by reason of any stock
dividend or split, recapitalization, merger, consolidation, spin-off, reorganization, combination
or exchange of shares, or other similar corporate change, or any other increase or decrease in such
shares, without receipt or payment of consideration by the Holding Company, or in the event an
extraordinary capital distribution is made, the Committee may make adjustments to previously
granted Awards, to prevent dilution, diminution, or enlargement of the rights of individuals,
including any or all of the following:

	(a)	 	adjustments in the aggregate number or kind of shares of Common Stock or other securities
that may underlie future Awards under the Plan;

	(b)	 	adjustments in the aggregate number or kind of shares of Common Stock or other securities
that underlie Awards already made under the Plan; and

	(c)	 	adjustments in the Exercise Price of outstanding Options or base price of outstanding SARs.

The Committee, however, shall not make adjustments that materially change the value of benefits
available to an individual under a previously granted Award. All Awards under this Plan shall be
binding upon any successors or assigns of the Holding Company.

14. TAXES

Under this Plan, whenever cash or shares of Common Stock are to be delivered, the Committee is
entitled to require as a condition of delivery that:

	(a)	 	the individual remit an amount sufficient to satisfy all related federal, state, and local
withholding tax requirements;

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	(b)	 	the withholding of such sums may come from compensation otherwise due to the individual or
from shares of Common Stock due to the individual under this Plan; or

	(c)	 	any combination of (a) and (b), above; provided, however, that no amount shall be withheld
from any cash payment or shares of Common Stock related to an Option transferred by the
individual in accordance with this Plan.

15. NOTIFICATION UNDER SECTION 83(b)

The Committee may, on the date of grant or at a later date, prohibit an individual from making the
election described below. If the Committee has not prohibited an individual from making this
election, and the individual shall, in connection with the exercise of any Award, make the election
permitted under Section 83(b) of the Code, the individual shall notify the Committee of the
election within ten (10) days of filing notice of the election with the Internal Revenue Service.
This requirement is in addition to any filing and notification required under the regulations
issued under the authority of Section 83(b) of the Code.

16. AMENDMENT OF THE PLAN AND AWARD GRANTS

	(a)	 	Except as provided in paragraph (c) of this Section 16, the Board of Directors may at any
time, and from time to time, modify or amend the Plan in any respect, prospectively or
retroactively; provided, however, that provisions governing grants of Incentive Stock Options
shall be submitted for shareholder approval to the extent required by law, regulation, or
otherwise. Failure to ratify or approve amendments or modifications by shareholders shall be
effective only as to the specific amendment or modification requiring shareholder ratification
or approval. Other provisions of this Plan shall remain in full force and effect. No
termination, modification, or amendment of this Plan may adversely affect the rights of an
individual under an outstanding Award without the written permission of the affected
individual.

	(b)	 	Except as provided in paragraph (c) of this Section 16, the Committee may amend any Award
Agreement, prospectively or retroactively; provided, however, that no amendment shall
adversely affect the rights of an individual under an outstanding Award Agreement without the
written consent of the affected individual.

	(c)	 	In no event shall the Board of Directors amend the Plan or shall the Committee amend an Award
Agreement in any manner that effectively:

	 	(i)	 	allows any Option to be granted with an Exercise Price below the Fair Market
Value of the Common Stock on the date of grant; or
	 
	 	(ii)	 	allows the Exercise Price of any Option previously granted under the Plan to be
reduced after the date of grant.

	(d)	 	It is intended that this Plan and any Awards made pursuant to this Plan shall comply with the
provisions of Section 409A of the Code, to the extent applicable. If Code Section 409A
becomes applicable to this Plan or any Award, this Plan and such Award shall be administered
in a manner consistent with such intent and any provision that would cause this Plan or any
Award to fail to satisfy Code Section 409A shall have no force or effect until amended to
comply with Code Section 409A (which amendments may be made retroactive to the extent
permitted by Code Section 409A and may be made by the Board of Directors without the consent
of the Participants). References in this Plan to Code Section 409A shall include any
proposed, temporary or final regulations, or any other guidance, promulgated with respect to
Code Section 409A by the United States Department of the Treasury or the Internal Revenue
Service.

17. TERMINATION OF THE PLAN

The right to grant Awards under the Plan will terminate upon the earlier of:

 

 

CENTRAL FEDERAL CORPORATION

Exhibit 10.1

Third Amended and Restated Central Federal Corporation 2003 Equity Compensation Plan

	(a)	 	April 23, 2013, which is ten (10) years after the original Effective Date of the Plan; or

	(b)	 	the issuance of a number of shares of Common Stock pursuant to the exercise of Options and
Stock Appreciation Rights and the vesting of Restricted Stock Awards equal to the maximum
number of shares reserved under the Plan, as set forth in Section 5. The Board of Directors
may suspend or terminate the Plan at any time; provided, however, that no such action will
adversely affect an individual’s vested rights under a previously granted Award, without the
consent of the affected individual.

18. APPLICABLE LAW

The Plan will be administered in accordance with the laws of the state of Delaware, except to the
extent that Federal law is deemed to apply.

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