Document:

Exhibit
10.3

 

AECOM
TECHNOLOGY CORPORATION

$60,000,000

6.93%
Senior Notes due June 9, 2008

 

 

NOTE
PURCHASE AGREEMENT

 

Dated
June 9, 1998

 

Table Of Contents

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Authorization of Notes

  	
   

  	
   

  	
   

  	
  1

  
	
  2.

  	
  sale and purchase of notes

  	
   

  	
   

  	
   

  	
  1

  
	
  3.

  	
  Closing

  	
   

  	
   

  	
   

  	
  1

  
	
  4.

  	
  Conditions To Closing

  	
   

  	
   

  	
   

  	
  2

  
	
   

  	
  4.1

  	
  Representations and Warranties

  	
   

  	
   

  	
   

  	
  2

  
	
   

  	
  4.2

  	
  Performance; No Default

  	
   

  	
   

  	
   

  	
  2

  
	
   

  	
  4.3

  	
  Compliance Certificates

  	
   

  	
   

  	
   

  	
  2

  
	
   

  	
  4.4

  	
  Opinions of Counsel

  	
   

  	
   

  	
   

  	
  3

  
	
   

  	
  4.5

  	
  Purchase Permitted By Applicable Law, etc.

  	
   

  	
   

  	
   

  	
  3

  
	
   

  	
  4.6

  	
  Sale of Other Notes

  	
   

  	
   

  	
   

  	
  3

  
	
   

  	
  4.7

  	
  Payment of Special Counsel Fees

  	
   

  	
   

  	
   

  	
  3

  
	
   

  	
  4.8

  	
  Private Placement Number

  	
   

  	
   

  	
   

  	
  3

  
	
   

  	
  4.9

  	
  Changes in Corporate Structure

  	
   

  	
   

  	
   

  	
  3

  
	
   

  	
  4.10

  	
  Subsidiary Guaranty

  	
   

  	
   

  	
   

  	
  4

  
	
   

  	
  4.11

  	
  Proceedings and Documents

  	
   

  	
   

  	
   

  	
  4

  
	
  5.

  	
  Representations And
  Warranties Of The Company

  	
   

  	
   

  	
   

  	
  4

  
	
   

  	
  5.1

  	
  Organization; Power and Authority

  	
   

  	
   

  	
   

  	
  4

  
	
   

  	
  5.2

  	
  Authorization etc.

  	
   

  	
   

  	
   

  	
  4

  
	
   

  	
  5.3

  	
  Disclosure

  	
   

  	
   

  	
   

  	
  4

  
	
   

  	
  5.4

  	
  Organization and Ownership of Shares of
  Subsidiaries; Affiliates

  	
   

  	
   

  	
   

  	
  5

  
	
   

  	
  5.5

  	
  Financial Statements

  	
   

  	
   

  	
   

  	
  6

  
	
   

  	
  5.6

  	
  Compliance with Laws, Other Instruments, etc.

  	
   

  	
   

  	
   

  	
  6

  
	
   

  	
  5.7

  	
  Governmental Authorizations, etc.

  	
   

  	
   

  	
   

  	
  6

  
	
   

  	
  5.8

  	
  Litigation; Observance of Agreements, Statutes and
  Orders

  	
   

  	
   

  	
   

  	
  6

  
	
   

  	
  5.9

  	
  Taxes

  	
   

  	
   

  	
   

  	
  7

  
	
   

  	
  5.10

  	
  Title to Property; Leases

  	
   

  	
   

  	
   

  	
  7

  
	
   

  	
  5.11

  	
  Licenses Permits, etc.

  	
   

  	
   

  	
   

  	
  7

  
	
   

  	
  5.12

  	
  Compliance with ERISA

  	
   

  	
   

  	
   

  	
  8

  
	
   

  	
  5.13

  	
  Private Offering by the Company

  	
   

  	
   

  	
   

  	
  8

  
	
   

  	
  5.14

  	
  Use of Proceeds; Margin Regulations

  	
   

  	
   

  	
   

  	
  9

  

 

 i
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.15

  	
  Existing Indebtedness; Future Liens

  	
   

  	
   

  	
   

  	
  9

  
	
   

  	
  5.16

  	
  Foreign Assets Control Regulations, etc.

  	
   

  	
   

  	
   

  	
  9

  
	
   

  	
  5.17

  	
  Status under Certain Statutes

  	
   

  	
   

  	
   

  	
  10

  
	
   

  	
  5.18

  	
  Environmental Matters

  	
   

  	
   

  	
   

  	
  10

  
	
  6.

  	
  Representations Of The
  Purchaser

  	
   

  	
   

  	
   

  	
  10

  
	
   

  	
  6.1

  	
  Purchase for Investment

  	
   

  	
   

  	
   

  	
  10

  
	
   

  	
  6.2

  	
  Source of Funds

  	
   

  	
   

  	
   

  	
  10

  
	
  7.

  	
  Information As To Company

  	
   

  	
   

  	
   

  	
  12

  
	
   

  	
  7.1

  	
  Financial and Business Information

  	
   

  	
   

  	
   

  	
  12

  
	
   

  	
  7.2

  	
  Officer’s Certificate

  	
   

  	
   

  	
   

  	
  14

  
	
   

  	
  7.3

  	
  Inspection

  	
   

  	
   

  	
   

  	
  15

  
	
  8.

  	
  Prepayment Of The Notes

  	
   

  	
   

  	
   

  	
  15

  
	
   

  	
  8.1

  	
  Required Prepayments

  	
   

  	
   

  	
   

  	
  15

  
	
   

  	
  8.2

  	
  Optional Prepayments with Make-Whole Amount

  	
   

  	
   

  	
   

  	
  15

  
	
   

  	
  8.3

  	
  Allocation of Partial Prepayments

  	
   

  	
   

  	
   

  	
  16

  
	
   

  	
  8.4

  	
  Maturity; Surrender, etc.

  	
   

  	
   

  	
   

  	
  16

  
	
   

  	
  8.5

  	
  Purchase of Notes

  	
   

  	
   

  	
   

  	
  16

  
	
   

  	
  8.6

  	
  Make-Whole Amount

  	
   

  	
   

  	
   

  	
  16

  
	
  9.

  	
  Affirmative Covenants

  	
   

  	
   

  	
   

  	
  17

  
	
   

  	
  9.1

  	
  Compliance with Law

  	
   

  	
   

  	
   

  	
  17

  
	
   

  	
  9.2

  	
  Insurance

  	
   

  	
   

  	
   

  	
  17

  
	
   

  	
  9.3

  	
  Maintenance of Properties

  	
   

  	
   

  	
   

  	
  17

  
	
   

  	
  9.4

  	
  Payment of Taxes and Claims

  	
   

  	
   

  	
   

  	
  18

  
	
   

  	
  9.5

  	
  Corporate Existence, etc.

  	
   

  	
   

  	
   

  	
  18

  
	
   

  	
  9.6

  	
  Additional Major Subsidiaries

  	
   

  	
   

  	
   

  	
  18

  
	
  10.

  	
  Negative Covenants

  	
   

  	
   

  	
   

  	
  18

  
	
   

  	
  10.1

  	
  Transactions with Affiliates

  	
   

  	
   

  	
   

  	
  18

  
	
   

  	
  10.2

  	
  Merger, Consolidation, Etc.

  	
   

  	
   

  	
   

  	
  19

  
	
   

  	
  10.3

  	
  Liens

  	
   

  	
   

  	
   

  	
  19

  
	
   

  	
  10.4

  	
  Interest Charges Coverage Ratio

  	
   

  	
   

  	
   

  	
  21

  

 

 ii
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.5

  	
  Fixed Charges Coverage Ratio

  	
   

  	
   

  	
   

  	
  21

  
	
   

  	
  10.6

  	
  Maintenance of Consolidated Debt

  	
   

  	
   

  	
   

  	
  21

  
	
   

  	
  10.7

  	
  Subsidiary Debt

  	
   

  	
   

  	
   

  	
  21

  
	
   

  	
  10.8

  	
  Consolidated Net Worth

  	
   

  	
   

  	
   

  	
  22

  
	
   

  	
  10.9

  	
  Sale of Assets

  	
   

  	
   

  	
   

  	
  22

  
	
   

  	
  10.10

  	
  Line of Business

  	
   

  	
   

  	
   

  	
  22

  
	
  11.

  	
  EVENTS OF DEFAULT

  	
   

  	
   

  	
   

  	
  23

  
	
  12.

  	
  REMEDIES ON DEFAULT, ETC.

  	
   

  	
   

  	
   

  	
  25

  
	
   

  	
  12.1

  	
  Acceleration

  	
   

  	
   

  	
   

  	
  25

  
	
   

  	
  12.2

  	
  Other Remedies

  	
   

  	
   

  	
   

  	
  26

  
	
   

  	
  12.3

  	
  Rescission

  	
   

  	
   

  	
   

  	
  26

  
	
   

  	
  12.4

  	
  No Waivers or Election of Remedies, Expenses, etc.

  	
   

  	
   

  	
   

  	
  27

  
	
  13.

  	
  REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES

  	
   

  	
   

  	
   

  	
  27

  
	
   

  	
  13.1

  	
  Registration of Notes

  	
   

  	
   

  	
   

  	
  27

  
	
   

  	
  13.2

  	
  Transfer and Exchange of Notes

  	
   

  	
   

  	
   

  	
  27

  
	
   

  	
  13.3

  	
  Replacement of Notes

  	
   

  	
   

  	
   

  	
  28

  
	
  14.

  	
  PAYMENTS ON NOTES

  	
   

  	
   

  	
   

  	
  28

  
	
   

  	
  14.1

  	
  Place of Payment

  	
   

  	
   

  	
   

  	
  28

  
	
   

  	
  14.2

  	
  Home Office Payment

  	
   

  	
   

  	
   

  	
  28

  
	
  15.

  	
  EXPENSES, ETC.

  	
   

  	
   

  	
   

  	
  29

  
	
   

  	
  15.1

  	
  Transaction Expenses

  	
   

  	
   

  	
   

  	
  29

  
	
   

  	
  15.2

  	
  Survival

  	
   

  	
   

  	
   

  	
  29

  
	
  16.

  	
  SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
  AGREEMENT

  	
   

  	
   

  	
   

  	
  29

  
	
  17.

  	
  AMENDMENT AND WAIVER

  	
   

  	
   

  	
   

  	
  30

  
	
   

  	
  17.1

  	
  Requirements

  	
   

  	
   

  	
   

  	
  30

  
	
   

  	
  17.2

  	
  Solicitation of Holders of Notes

  	
   

  	
   

  	
   

  	
  30

  
	
   

  	
  17.3

  	
  Binding Effect, Etc.

  	
   

  	
   

  	
   

  	
  30

  
	
   

  	
  17.4

  	
  Notes held by Company, Etc.

  	
   

  	
   

  	
   

  	
  31

  
	
  18.

  	
  NOTICES

  	
   

  	
   

  	
   

  	
  31

  
	
  19.

  	
  REPRODUCTION OF DOCUMFNTS

  	
   

  	
   

  	
   

  	
  31

  

 

 iii
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  CONFIDENTIAL INFORMATION

  	
   

  	
   

  	
   

  	
  32

  
	
  21.

  	
  SUBSTITUTION OF PURCHASER

  	
   

  	
   

  	
   

  	
  32

  
	
  22.

  	
  MISCELLANEOUS

  	
   

  	
   

  	
   

  	
  33

  
	
   

  	
  22.1

  	
  Successors and Assigns

  	
   

  	
   

  	
   

  	
  33

  
	
   

  	
  22.2

  	
  Payments Due on Non-Business Days

  	
   

  	
   

  	
   

  	
  33

  
	
   

  	
  22.3

  	
  Severability

  	
   

  	
   

  	
   

  	
  33

  
	
   

  	
  22.4

  	
  Construction

  	
   

  	
   

  	
   

  	
  33

  
	
   

  	
  22.5

  	
  Counterparts

  	
   

  	
   

  	
   

  	
  33

  
	
   

  	
  22.6

  	
  Governing Law

  	
   

  	
   

  	
   

  	
  33

  

 

	
  Schedule A

  	
   

  	
  —

  	
   

  	
  Information Relating to Purchasers

  
	
  Schedule B

  	
   

  	
  —

  	
   

  	
  Defined Terms

  
	
  Schedule 4.9

  	
   

  	
  —

  	
   

  	
  Changes in Corporate Structure

  
	
  Schedule 5.3

  	
   

  	
  —

  	
   

  	
  Disclosure Materials

  
	
  Schedule 5.4

  	
   

  	
  —

  	
   

  	
  Subsidiaries of the Company and Ownership of
  Subsidiary Stock

  
	
  Schedule 5.5

  	
   

  	
  —

  	
   

  	
  Financial Statements

  
	
  Schedule 5.7

  	
   

  	
  —

  	
   

  	
  Governmental Authorizations, Etc.

  
	
  Schedule 5.11

  	
   

  	
  —

  	
   

  	
  Patents, etc.

  
	
  Schedule 5.14

  	
   

  	
  —

  	
   

  	
  Use of Proceeds

  
	
  Schedule 5.15

  	
   

  	
  —

  	
   

  	
  Existing Indebtedness; Future Liens; Investments

  

 

	
  Exhibit 1

  	
   

  	
  —

  	
   

  	
  Form of 6.93% Senior Note due June 9, 2008

  
	
  Exhibit 4.4(a)

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Special Counsel for the Company

  
	
  Exhibit 4.4(b)

  	
   

  	
  —

  	
   

  	
  Form of Opinion of General Counsel for the Company

  
	
  Exhibit 4.4(c)

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Special Counsel for the
  Purchasers

  

 

 iv

AECOM TECHNOLOGY CORPORATION

3250 Wilshire Boulevard

Los Angeles, CA 90010

6.93% Senior Notes due June 9, 2008

June 9, 1998

TO EACH OF THE
PURCHASERS NAMED ON THE SIGNATURE PAGES HERETO:

Ladies and Gentlemen:

AECOM TECHNOLOGY CORPORATION, a Delaware corporation (the “Company”), agrees with
you as follows:

1.                                      AUTHORIZATION OF NOTES.

The Company will authorize the issue and sale of
$60,000,000.00 aggregate principal amount of its 6.93% Senior Notes due June 9,
2008 (the “Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 13 of this
Agreement or the Other Agreements (as hereinafter defined)). The Notes shall be
substantially in the form set out in Exhibit 1, with such changes
therefrom, if any, as may be approved by you and the Company. Certain
capitalized terms used in this Agreement are defined in Schedule B; references
to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule
or an Exhibit attached to this Agreement.

2.                                      SALE AND PURCHASE OF NOTES.

Subject to the terms and conditions of this Agreement,
the Company will issue and sell to you and you will purchase from the Company,
at the Closing provided for in Section 3, Notes in the principal amount specified opposite your name in Schedule A at the
purchase price of 100% of the
principal amount thereof. Contemporaneously with entering into this Agreement,
the Company is entering into separate
Note Purchase Agreements (the “Other Agreements”) identical with this
Agreement with each of the other purchasers named in Schedule A (the “Other Purchasers”), providing for the sale at such
Closing to each of the Other Purchasers of Notes in the principal amount
specified opposite its name in Schedule A. Your obligation hereunder and the
obligations of the Other Purchasers under the Other Agreements are several and
not joint obligations and you shall have no obligation under any Other
Agreement and no liability to any Person for the performance or
non-performance by any Other Purchaser thereunder.

3.                                      CLOSING.

The sale and purchase of the Notes to be purchased by
you and the Other Purchasers shall occur at the offices of Cooley Godward LLP,
One Maritime Plaza, 20th Floor, San Francisco, California, at 9:00 a.m., Pacific time, at a closing (the “Closing”) on
June 9, 1998 or on such other Business
Day thereafter on or prior to June 17, 1998 as may be agreed upon by the Company
and you and the Other Purchasers. At the Closing the Company will deliver to
you the Notes to be purchased by you in the
form of a single Note (or such greater number of Notes in

 1
 

denominations of at least
$1,000,000 as you may request) dated the date of the Closing and registered in your name (or in the name of your
nominee), against delivery by you to the Company or its order of
immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for
the account of the Company to account number 1235-7-01224 at Bank of
America National Trust and Savings Association, P.O. Box 27128, Concord, California,
ABA No. 121000358. If at the Closing the Company shall fail to tender such
Notes to you as provided above in this Section 3, or any of the conditions
specified in Section 4 shall not have been
fulfilled to your satisfaction, you shall, at your election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights you may have by reason of such
failure or such nonfulfillment.

4.                                    CONDITIONS TO CLOSING.

Your obligation to purchase and
pay for the Notes to be sold to you at the Closing is subject to the
fulfillment to your satisfaction, prior to or at the Closing, of the following
conditions:

4.1                               Representations and Warranties.  The representations and warranties of the Company
in this Agreement shall be correct when made and at the time of the Closing.
The representations and warranties of each of the Guarantors in the Subsidiary
Guaranty shall be correct when made and at the time of the Closing.

4.2                               Performance; No Default.  The Company and each of the Guarantors shall have performed
and complied with all agreements and conditions contained in this Agreement and
the Subsidiary Guaranty required to be
performed or complied with by it and by them prior to or at the Closing and after giving effect to the issue
and sale of the Notes (and the application of the proceeds thereof as
contemplated by Schedule 5.14) no Default or Event of Default shall have occurred and be continuing. Neither the Company nor
any Subsidiary shall have entered into any
transaction since the date of the Memorandum that would have been prohibited by
Sections 10.1, 10.2, 10.3 or 10.9
hereof had such Sections applied since such date.

4.3                               Compliance Certificates.

(a)                                  Officer’s
Certificate.  The Company shall
have delivered to you an Officer’s Certificate, dated the date of the Closing,
certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been
fulfilled. Each Major Subsidiary shall have delivered to you a certificate of
the chief financial officer, principal accounting officer, treasurer or
comptroller of that Major Subsidiary dated the date of the Closing, certifying
that the conditions specified in Sections 4.1, 4.2 and 4.9 (insofar as they
apply to that Major Subsidiary) have been fulfilled.

(b)                                  Secretary’s
Certificate.  The Company shall
have delivered to you a certificate certifying as to the resolutions attached
thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Notes and the Agreements. The Major Subsidiaries
shall have delivered to you a certificate certifying as to the resolutions
attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Subsidiary Guaranty.

 2
 

4.4                               Opinions
of Counsel.  You shall have received opinions in form and
substance satisfactory to you, dated the date
of the Closing (a) from O’Melveny & Myers LLP, special counsel
for the Company, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated
hereby as you or your counsel may reasonably request (and the Company
hereby instructs its special counsel to deliver such opinion to you), (b)
from R. Keeffe Griffith, Esq., general
counsel for the Company, covering the matters set forth in Exhibit 4.4(b) and covering such other matters
incident to the transactions contemplated hereby as you or your counsel may reasonably request (and the Company hereby
instructs its general counsel to
deliver such opinion to you), and (c) from Cooley Godward LLP, your special counsel in
connection with such transactions, substantially in the form set forth in
Exhibit 4.4(c) and covering such other
matters incident to such transactions as you may reasonably request.

4.5                               Purchase Permitted By Applicable Law, etc.  On the date of the Closing your purchase of Notes shall (i) be permitted by
the laws and regulations of each jurisdiction to which you are subject,
without recourse to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by
insurance companies without restriction as
to the character of the particular
investment, (ii) not violate any applicable law or regulation (including, without limitation, Regulation T, U or
X of the Board of Governors of the Federal Reserve System) and (iii) not subject you to any tax, penalty or
liability under or pursuant to any applicable law or regulation, which
law or regulation was not in effect on the date hereof. If requested by you, you shall have received an
Officer’s Certificate certifying as to such matters of fact as you may reasonably specify to enable you
to determine whether such purchase is so permitted.

4.6                               Sale of Other Notes.  Contemporaneously with the Closing the Company
shall sell to the Other Purchasers and the Other Purchasers shall purchase the
Notes to be purchased by them at the Closing as specified in Schedule A.

4.7                               Payment of Special Counsel Fees.  Without limiting the provisions of Section 15.1,
the Company shall have paid on or before the Closing the fees, charges and disbursements
of your special counsel referred to in Section 4.4 to the extent reflected in a
statement of such counsel rendered to the Company at least one Business Day
prior to the Closing.

4.8                               Private Placement Number.  A Private Placement number issued by Standard
& Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation
Office of the National Association of Insurance Commissioners) shall have been
obtained for the Notes.

4.9                               Changes in Corporate Structure.  Except as specified in Schedule 4.9, the Company
shall not have changed its jurisdiction of incorporation or been a party to any
merger or consolidation and shall not have succeeded to all or any substantial
part of the liabilities of any other entity, at any time following the date of
the most recent financial statements referred to in Schedule 5.5. Except as
specified in Schedule 4.9, none of the Guarantors shall have changed its
jurisdiction of incorporation or been a party to any merger or consolidation,
or shall have succeeded to all or any substantial part of the liabilities of
any other entity, at any time following the date of the most recent financial
statements referred to in Schedule 5.5.

 3
 

4.10                        Subsidiary
Guaranty.  The Company, the
Guarantors, you, the Other Purchasers, Bank of America National Trust and
Savings Association, as agent under the Bank Credit Agreement, the banks party
to the Bank Credit Agreement, and Bank of America National Trust and Savings
Association, as creditor agent, shall have executed and delivered a Master Subsidiary
Guaranty and Intercreditor Agreement in form and substance satisfactory to you
(the “Subsidiary Guaranty”).

4.11                        Proceedings
and Documents.  All corporate
and other proceedings in connection with the transactions contemplated by this
Agreement and the Subsidiary Guaranty and all documents and instruments
incident to such transactions shall be satisfactory to you and your special
counsel, and you and your special counsel shall have received all such
counterpart originals or certified or other copies of such documents as you or
they may reasonably request.

5.                                      REPRESENTATIONS AND
WARRANTIES OF THE COMPANY.

The Company represents and warrants to you that:

5.1                                  Organization; Power and Authority.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation, and is duly qualified as a foreign corporation and is in good
standing in each jurisdiction in which such qualification is required by law,
other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The Company has the corporate power
and authority to own or hold under lease the properties it purports to own or
hold under lease, to transact the business it transacts and proposes to
transact, to execute and deliver this Agreement and the Other Agreements and
the Notes and to perform the provisions hereof and thereof.

5.2                               Authorization, etc.  This Agreement, the Other Agreements, the Notes,
and the Subsidiary Guaranty have been duly authorized by all necessary
corporate action on the part of the Company, and this Agreement constitutes,
and upon execution and delivery thereof each Note and the Subsidiary Guaranty
will constitute, a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

5.3                               Disclosure.  The Company, through its agent, BancAmerica
Robertson Stephens, has delivered to you and each Other Purchaser a copy of a
Private Placement Memorandum, dated April, 1998 (the “Memorandum”), relating to
the transactions contemplated hereby. The Memorandum fairly describes, in all
material respects, the general nature of the business and principal properties
of the Company and its Restricted Subsidiaries. Except as disclosed in Schedule
5.3, this Agreement, the Memorandum, the documents, certificates or other
writings delivered to you by or on behalf of the Company in connection with the
transactions contemplated hereby and the financial statements listed in
Schedule 5.5, taken as a whole, do not contain any untrue statement of a
material fact or omit to state any material fact necessary to

 4
 

make the statements therein not misleading in light of
the circumstances under which they were made. Except as disclosed in the
Memorandum or as expressly described in Schedule 5.3, or in one of the
documents, certificates or other writings identified therein, or in the
financial statements listed in Schedule 5.5, since September 30, 1997, there
has been no change in the financial condition, operations, business, properties
or prospects of the Company or any Restricted Subsidiary except changes that
individually or in the aggregate could not reasonably be expected to have a
Material Adverse Effect. There is no fact known to the Company that could
reasonably be expected to have a Material Adverse Effect that has not been set
forth herein or in the Memorandum or in the other documents, certificates and
other writings delivered to you by or on behalf of the Company specifically for
use in connection with the transactions contemplated hereby.

5.4                               Organization
and Ownership of Shares of Subsidiaries; Affiliates.

(a)                                  Schedule
5.4 contains complete and correct lists (i) of the Company’s
Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the
jurisdiction of its organization, and the percentage of shares of each class of
its capital stock or similar equity interests outstanding owned by the Company
and each other Subsidiary, (ii) of the Company’s Affiliates, other than
Subsidiaries and U.S. Trust Company of California N.A., and (iii) of the
Company’s directors and senior officers. Schedule 5.4 identifies which of the
Subsidiaries of the Company are Restricted Subsidiaries.

(b)                                  All
of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries
have been validly issued, are fully paid and nonassessable and are owned by the
Company or another Restricted Subsidiary free and clear of any Lien (except as
otherwise disclosed in Schedule 5.4). All of the outstanding shares of capital
stock or similar equity interests of each Restricted Subsidiary shown in
Schedule 5.4 are owned by the Company and/or one or more Wholly-Owned
Restricted Subsidiaries.

(c)                                  Each
Restricted Subsidiary identified in Schedule 5.4 is a corporation or other
legal entity duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, and is duly qualified as a foreign
corporation or other legal entity and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. Each such Restricted Subsidiary has the corporate or other
power and authority to own or hold under lease the properties it purports to
own or hold under lease and to transact the business it transacts and proposes
to transact.

(d)                                  No
Restricted Subsidiary is a party to, or otherwise subject to any legal
restriction or any agreement (other than this Agreement, the agreements listed
on Schedule 5.4 and customary limitations imposed by corporate law statutes)
restricting the ability of such Restricted Subsidiary to pay dividends out of
profits or make any other similar distributions of profits to the Company or
any of its Restricted Subsidiaries that owns outstanding shares of capital
stock or similar equity interests of such Restricted Subsidiary.

 5
 

5.5                               Financial
Statements.  The Company has delivered to each Purchaser copies
of the financial statements of the Company and its Subsidiaries listed on
Schedule 5.5. All of said financial statements (including in each case the
related schedules and notes) fairly present in all material respects the
consolidated financial position of the Company and its Subsidiaries as of the
respective dates specified in such Schedule and the consolidated results of
their operations and cash flows for the respective periods so specified and
have been prepared in accordance with GAAP consistently applied throughout the
periods involved except as set forth in the notes thereto (subject, in the case
of any interim financial statements, to normal year-end adjustments).

5.6                               Compliance
with Laws, Other Instruments, etc.  The execution, delivery and
performance by the Company of this Agreement and the Notes will not (i)
contravene, result in any breach of, or constitute a default under, or result
in the creation of any Lien in respect of any property of the Company or any
Restricted Subsidiary under, any indenture, mortgage, deed of trust, loan,
purchase or credit agreement, lease, corporate charter or by-laws, or any other
agreement or instrument to which the Company or any Restricted Subsidiary is
bound or by which the Company or any Restricted Subsidiary or any of their
respective properties may be bound or affected, (ii) conflict with
or result in a breach of any of the terms, conditions or provisions of any
order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to the Company or any Restricted Subsidiary or (iii)
violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Restricted Subsidiary.

5.7                               Governmental
Authorizations, etc.  Except as disclosed in Schedule 5.7, no
consent, approval or authorization of, or registration, filing or declaration
with, any Governmental Authority is required in connection with the execution,
delivery or performance by the Company of this Agreement or the Notes.

5.8          Litigation;
Observance of Agreements, Statutes and Orders.

(a)                                  There are no actions,
suits or proceedings pending or, to the knowledge of the Company, threatened
against or affecting the Company or any Restricted Subsidiary or any property
of the Company or any Restricted Subsidiary in any court or before any
arbitrator of any kind or before or by any Governmental Authority that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

(b)                                  Neither
the Company nor any Restricted Subsidiary is in default under any term of any
agreement or instrument to which it is a party or by which it is bound, or any
order, judgment, decree or ruling of any court, arbitrator or Governmental
Authority or is in violation of any applicable law, ordinance, rule or
regulation (including without limitation Environmental Laws) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

5.9                               Taxes.  The
Company and its Subsidiaries have filed all tax returns that are required to
have been filed in any jurisdiction, and have paid all taxes shown to be due
and payable on such returns and all other taxes and assessments levied upon them
or their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (i) the

 6
 

amount of which is not individually or in the aggregate
Material or (ii) the amount, applicability or validity of which is currently
being contested in good faith by appropriate proceedings and with respect to
which the Company or a Subsidiary, as the case may be, has established adequate
reserves in accordance with GAAP. The Company knows of no basis for any other
tax or assessment that could reasonably be expected to have a Material Adverse
Effect. The charges, accruals and reserves on the books of the Company and its
Subsidiaries in respect of Federal, state or other taxes for all fiscal periods
are adequate.

5.10                        Title to
Property; Leases.  The Company and its Restricted Subsidiaries
have good and sufficient title to their respective properties that individually
or in the aggregate are Material, including all such properties reflected in
the most recent audited balance sheet referred to in Section 5.5 or purported
to have been acquired by the Company or any Restricted Subsidiary after said
date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens prohibited by this Agreement.
All leases that individually or in the aggregate are Material are valid and
subsisting and are in full force and effect in all material respects.

5.11                        Licenses,
Permits, etc.  Except as disclosed in Schedule 5.11,

(a)                                  the
Company and its Restricted Subsidiaries own or possess all licenses, permits,
franchises, authorizations, patents, copyrights, service marks, trademarks and
trade names, or rights thereto, that individually or in the aggregate are
Material, without known conflict with the rights of others;

(b)                                  to
the best knowledge of the Company, no product of the Company infringes in any
material respect any license, permit, franchise, authorization, patent,
copyright, service mark, trademark, trade name or other right owned by any
other Person; and

(c)                                  to
the best knowledge of the Company, there is no Material violation by any Person
of any right of the Company or any of its Restricted Subsidiaries with respect
to any patent, copyright, service mark, trademark, trade name or other right
owned or used by the Company or any of its Restricted Subsidiaries.

5.12                        Compliance
with ERISA.

(a)                                  The
Company and each ERISA Affiliate have operated and administered each Plan in
compliance with all applicable laws except for such instances of noncompliance
as have not resulted in and could not reasonably be expected to result in a
Material Adverse Effect. Neither the Company nor any ERISA Affiliate has
incurred any Material liability pursuant to Title I or IV of ERISA or the
penalty or excise tax provisions of the Code relating to employee benefit plans
(as defined in Section 3 of ERISA). No event, transaction or condition has
occurred or exists that could reasonably be expected to result in the
incurrence of any such liability by the Company or any ERISA Affiliate, or in
the imposition of any Lien on any of the rights, properties or assets of the
Company or any ERISA Affiliate, in either case pursuant to Title I or IV of
ERISA, or to such penalty or excise tax provisions or to Section 401(a)(29) or
412 of the Code, other than such liabilities or Liens as have not resulted in
and could not reasonably be expected to result in a Material Adverse Effect.

 7
 

(b)                                  The present value of the accrued benefit
liabilities under each of the Plans (other
than Multiemployer Plans), determined as of the end of such Plan’s most
recently ended plan year on the basis of the actuarial assumptions
specified for funding purposes in such Plan’s most
recent actuarial valuation report, did not exceed the aggregate current value
of the assets of such Plan allocable
to such benefit liabilities. The term “benefit
liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.

(c)                                  The Company and its ERISA Affiliates have not
incurred withdrawal liabilities (and
are not subject to contingent withdrawal liabilities) under section 4201 or
4204 of ERISA in respect of Multiemployer Plans that individually or in the
aggregate are Material.

(d)                                  The expected postretirement benefit obligation
(determined as of the last day of the Company’s most recently ended
fiscal year in accordance with
Financial Accounting Standards Board Statement
No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of
the Company and its Subsidiaries, to the extent not reflected in the consolidated financial statements of the
Company, is not Material.

(e)                                  The
execution and delivery of this Agreement and the issuance and sale of the Notes
hereunder will not involve any transaction that is subject to the prohibitions
of section 406 of ERISA or in connection with which a tax could be imposed
pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the
Company in the first sentence of this Section 5.12(e) is made in reliance upon
and subject to the accuracy of your representation in Section 6.2 as to the
sources of the funds used to pay the purchase price of the Notes to be
purchased by you.

5.13                        Private Offering by the Company.  Neither the Company nor anyone acting on its
behalf has offered the Notes or any similar securities for sale to, or
solicited any offer to buy any of the same
from, or otherwise approached or negotiated in respect thereof with, any person
other than you, the Other Purchasers
and not more than 50 other Institutional Investors, each of which has been offered the Notes at a private sale
for investment. Neither the Company nor anyone acting on its behalf has
taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements
of Section 5 of the Securities Act.

5.14                        Use of Proceeds; Margin Regulations.  The Company will apply the proceeds of the sale of
the Notes as set forth in Schedule 5.14. No part of the proceeds from the sale
of the Notes hereunder will be used, directly or indirectly, for the purpose of
buying or carrying any margin stock
within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of
buying or carrying or trading in any securities under such circumstances
as to involve the Company in a violation of Regulation X of said Board (12 CFR
224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not
constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the Company
does not have any present intention
that margin stock will constitute more than 5% of the value of such assets. As used
in this Section, the terms “margin stock” and
“purpose of buying or carrying” shall
have the meanings assigned to them in said
Regulation U.

 8
 

5.15                        Existing Indebtedness; Future Liens.

(a)                                  Schedule
5.15 sets forth a complete and correct list of all outstanding Indebtedness of
the Company and its Restricted Subsidiaries as of March 31, 1998, since which
date there has been no Material change in the amounts, interest rates, sinking
funds, installment payments or maturities of the Indebtedness of the Company or
its Restricted Subsidiaries. Neither the Company nor any Restricted Subsidiary
is in default and no waiver of default is currently in effect, in the payment
of any principal or interest on any Indebtedness of the Company or such
Restricted Subsidiary and no event or condition exists with respect to any Indebtedness
of the Company or any Restricted Subsidiary that would permit (or that with
notice or the lapse of time, or both, would permit) one or more Persons to
cause such Indebtedness to become due and payable before its stated maturity or
before its regularly scheduled dates of payment.

(b)                                  Except
as disclosed in Schedule 5.15, neither the Company nor any Restricted
Subsidiary has agreed or consented to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property, whether now owned
or hereafter acquired, to be subject to a Lien not permitted by Section 10.3.

(c)                                  Schedule
5.15 sets forth a complete and correct list of all outstanding Investments of
the Company and its Restricted Subsidiaries as of the date hereof.

5.16                        Foreign Assets Control Regulations, etc.  Neither
the sale of the Notes by the Company hereunder nor its use of the proceeds
thereof will violate the Trading with the Enemy Act, as amended, or any of the
foreign assets control regulations of the United States Treasury Department (31
CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive
order relating thereto.

5.17                        Status under Certain Statutes.  Neither
the Company nor any Restricted Subsidiary is subject to regulation under the
Investment Company Act of 1940, as amended, the Public Utility Holding Company
Act of 1935, as amended, the Interstate Commerce Act, as amended, or the
Federal Power Act, as amended.

5.18                        Environmental Matters.  Neither
the Company nor any Subsidiary has knowledge of any claim or has received any
notice of any claim, and no proceeding has been instituted raising any claim
against the Company or any of its Subsidiaries or any of their respective real
properties now or formerly owned, leased or operated by any of them or other
assets, alleging any damage to the environment or violation of any
Environmental Laws, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect. Except as otherwise disclosed
to you in writing.

(a)                neither
the Company nor any Subsidiary has knowledge of any facts which would give rise
to any claim, public or private, of violation of Environmental Laws or damage
to the environment emanating from, occurring on or in any way related to real
properties now or formerly owned, leased or operated by any of them or to other
assets or their use, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect;

 9
 

(b)                                  neither the Company
nor any of its Subsidiaries has knowledge of any facts concerning storage of
any Hazardous Materials on real properties now or formerly owned, leased or
operated by any of them and has not disposed of any Hazardous Materials in a
manner contrary to any Environmental Laws in each case in any manner that could
reasonably be expected to result in a Material Adverse Effect; and

(c)                                  all
buildings on all real properties now owned, leased or operated by the Company
or any of its Subsidiaries are in compliance with applicable Environmental
Laws, except where failure to comply could not reasonably be expected to result
in a Material Adverse Effect.

6.                                      REPRESENTATIONS OF THE PURCHASER.

6.1                                  Purchase for Investment.  You
represent that you are purchasing the Notes for your own account or for one or
more separate accounts maintained by you or for the account of one or more
pension or trust funds and not with a view to the distribution thereof, provided
that the disposition of your or their property shall at all times be within
your or their control. You understand that the Notes have not been registered
under the Securities Act and may be resold only if registered pursuant to the
provisions of the Securities Act or if an exemption from registration is
available, except under circumstances where neither such registration nor such
an exemption is required by law, and that the Company is not required to
register the Notes.

6.2                               Source of Funds.  You
represent that at least one of the following statements is an accurate
representation as to each source of funds (a “Source”)
to be used by you to pay the purchase price of the Notes to be purchased by you
hereunder:

(a)                                  the Source is an
“insurance company general account” within the meaning of Department of Labor
Prohibited Transaction Exemption (“PTE”) 95-60 (issued July 12, 1995) and there
is no employee benefit plan, treating as a single plan, all plans maintained by
the same employer or employee organization, with respect to which the amount of
general account reserves and liabilities of all contracts held by or on behalf
of such plan, exceed ten percent (10%) of the total reserves and liabilities of
such general account (exclusive of separate account liabilities) plus surplus,
as set forth in the National Association of Insurance Commissioners’ Annual
Statement filed with your state of domicile; or

(b)                                  the
Source is either (i) an insurance company pooled separate account, within the
meaning of PTE 90-1 (issued January 29, 1990), or (ii) a bank collective
investment fund, within the meaning of the PTE 91-38 (issued July 12, 1991)
and, except as you shall have disclosed to the Company in writing pursuant to
this paragraph (b), no employee benefit plan or group of plans maintained by
the same employer or employee organization beneficially owns more than 10% of
all assets allocated to such pooled separate account or collective investment
fund; or

(c)                                  the
Source constitutes assets of an “investment fund” (within the meaning of Part V
of the QPAM Exemption) managed by a “qualified professional asset manager” or
“QPAM” (within the meaning of Part V of the QPAM Exemption), no employee
benefit plan’s assets that are included in such investment fund, when combined
with the assets of all other

 10
 

employee benefit plans established or maintained by
the same employer or by an affiliate (within the meaning of Section V(c) (1) of
the QPAM Exemption) of such employer or by the same employee organization and
managed by such QPAM, exceed 20% of the total client assets managed by such
QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied,
neither the QPAM nor a person controlling or controlled by the QPAM (applying the
definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or
more interest in the Company and (i) the identity of such QPAM and (ii) the
names of all employee benefit plans whose assets are included in such
investment fund have been disclosed to the Company in writing pursuant to this
paragraph (c); or

(d)                                  the Source is a
governmental plan; or

(e)                                  the Source is one or
more employee benefit plans, or a separate account or trust fund comprised of
one or more employee benefit plans, each of which has been identified to the
Company in writing pursuant to this paragraph (e); or

(f)                                    the Source does not
include assets of any employee benefit plan, other than a plan exempt from the
coverage of ERISA.

The Company shall deliver a certificate on the date of
the Closing, with respect to you and each Other Purchaser and, if legally and
factually able to do so, on or prior to the date of any transfer of the Notes,
with respect to any subsequent holder of the Notes, which certificate shall
either state that (i) the Company is neither a “party in interest” (as defined
in Title I, Section 3(14) of ERISA) nor a “disqualified person” (as defined in
Section 4975(e)(2) of the Code), with respect to any plan identified pursuant
to paragraphs (b) or (c) above, or (ii) with respect to any plan identified
pursuant to paragraph (c) above, neither the Company nor any “affiliate” (as
defined in Section V(c) of the QPAM Exemption) has at this time, and during the
immediately preceding one year, has exercised the authority to appoint or
terminate said QPAM as manager of the assets of any plan identified in writing
pursuant to paragraph (c) above or to negotiate the terms of said QPAM’s
management agreement on behalf of any such identified plans.

As used in this Section 6.2, the terms “employee
benefit plan,” “governmental plan,” “party in interest,” and “separate account”
shall have the respective meanings assigned to such terms in Section 3 of
ERISA.

7.                                      Information As To Company.

7.1                               Financial
and Business Information.  The Company shall deliver to each
holder of Notes that is an Institutional Investor:

(a)                                  Quarterly
Statements — within 45 days after the end of each quarterly fiscal period
in each fiscal year of the Company (other than the last quarterly fiscal period
of each such fiscal year), duplicate copies of,

(i)                                    a consolidated
balance sheet of the Company and its Restricted Subsidiaries as at the end of
such quarter, and

 11

(ii)                                consolidated
statements of income, changes in shareholders’ equity and cash flows of the
Company and its Restricted Subsidiaries, for such quarter and (in the case of
the second and third quarters) for the portion of the fiscal year ending with
such quarter,

setting forth in each
case in comparative form the figures for the corresponding periods in the
previous fiscal year, all in reasonable detail, prepared in accordance with
GAAP applicable to quarterly financial statements generally, and certified by a
Senior Financial Officer as fairly presenting, in all material respects, the
financial position of the companies being reported on and their results of
operations and cash flows, subject to changes resulting from year-end
adjustments;

(b)                                  Annual
Statements — within 120 days after the end of each fiscal year of the
Company, duplicate copies of,

(i)                                    a
consolidated balance sheet of the Company and its Subsidiaries and a
consolidated balance sheet of the Company and its Restricted Subsidiaries, each
as at the end of such year, and

(ii)                                consolidated
statements of income, changes in shareholders’ equity and cash flows of the
Company and its Subsidiaries and consolidating statements of income, changes in
shareholders’ equity and cash flows of the Company and its Restricted
Subsidiaries, each for such year,

setting forth in each
case in comparative form the figures for the previous fiscal year, all in
reasonable detail, prepared in accordance with GAAP, and accompanied

(A)                               by
an opinion thereon of independent certified public accountants of recognized
national standing, which opinion shall state that such financial statements
present fairly, in all material respects, the financial position of the
companies being reported upon and their results of operations and cash flows
and have been prepared in conformity with GAAP, and that the examination of
such accountants in connection with such financial statements has been made in
accordance with generally accepted auditing standards, and that such audit
provides a reasonable basis for such opinion in the circumstances, provided,
however, that the consolidating and consolidated financial statements of
the Company and its Restricted Subsidiaries need not be accompanied by the
opinion described in this clause (A) if Unrestricted Subsidiaries, then as a
whole, do not constitute either (i) five percent (5%) or more of the total
assets of the Company and its Subsidiaries shown on the consolidated balance
sheet of the Company and its Subsidiaries described in clause 7.1(b)(i) above
or (ii) five percent (5%) or more of the total net income of the Company and
its Subsidiaries shown on the consolidated financial statements of the Company
and its Subsidiaries described in clause 7.1(b)(ii) above.

(B)                               a
report of such accountants stating that they have reviewed the financial
covenants contained in Section 10 of this Agreement and stating further that,
in making their audit, they have not become aware of any condition or event
that then constitutes a Default or an Event of Default with respect to such
covenants, and, if they become aware that any such condition or event then
exists, the nature and period of the existence thereof will be included in
their report (it being understood that such accountants shall not be liable,
directly or

 12
 

indirectly, for any
failure to obtain knowledge of any Default or Event of Default unless such
accountants should have obtained knowledge thereof in making an audit in
accordance with generally accepted auditing standards or did not make such an
audit);

(c)                                  SEC
and Other Reports — promptly upon
their becoming available, one copy of (i) each financial statement, report,
notice or proxy statement sent by the Company or any Restricted Subsidiary to
public securities holders generally, and (ii) each regular or periodic report,
each registration statement (without exhibits except as expressly requested by
such holder), and each prospectus and all amendments thereto filed by the
Company or any Restricted Subsidiary with the Securities and Exchange
Commission and of all press releases and other statements made available
generally by the Company or any Restricted Subsidiary to the public concerning
developments that are Material;

(d)                                  Notice
of Default or Event of Default — promptly, and in any event within five
days after a Responsible Officer becoming aware of the existence of any Default
or Event of Default or that any Person has given any notice or taken any action
with respect to a claimed default hereunder or that any Person has given any
notice or taken any action with respect to a claimed default of the type
referred to in Section ll(f), a written notice specifying the nature and period
of existence thereof and what action the Company is taking or proposes to take
with respect thereto;

(e)                                  ERISA
Matters — promptly, and in any event within five days after a Responsible
Officer becoming aware of any of the following, a written notice setting forth
the nature thereof and the action, if any, that the Company or an ERISA
Affiliate proposes to take with respect thereto:

(i)                                    with
respect to any Plan, any reportable event, as defined in section 4043 (b) of
ERISA and the regulations thereunder, for which notice thereof has not been
waived pursuant to such regulations as in effect on the date hereof; or

(ii)                                the
taking by the PBGC of steps to institute, or the threatening by the PBGC of the
institution of, proceedings under section 4042 of ERISA for the termination of,
or the appointment of a trustee to administer, any Plan, or the receipt by the
Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such
action has been taken by the PBGC with respect to such Multiemployer Plan; or

(iii)                            any
event, transaction or condition that could result in the incurrence of any
liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights,
properties or assets of the Company or any ERISA Affiliate pursuant to Title I
or IV of ERISA or such penalty or excise tax provisions, if such liability or
Lien, taken together with any other such liabilities or Liens then existing,
could reasonably be expected to have a Material Adverse Effect;

(f)                                    Notices
from Governmental Authority — promptly, and in any event within 30 days of
receipt thereof, copies of any notice to the Company or any Subsidiary from

 13
 

any Federal or state
Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse Effect;
and

(g)                                 Requested
Information — with reasonable promptness, such other data and information
relating to the business, operations, affairs, financial condition, assets or
properties of the Company or any of its Restricted Subsidiaries or relating to
the ability of the Company to perform its obligations hereunder and under the
Notes as from time to time may be reasonably requested by any such holder of
Notes.

7.2                               Officer’s
Certificate.  Each set of financial statements delivered to a
holder of Notes pursuant to Section 7.1 (a) or Section 7.1(b) hereof shall be
accompanied by a certificate of a Senior Financial Officer setting forth:

(a)                                  Covenant
Compliance — the information (including detailed calculations) required in
order to establish whether the Company was in compliance with the requirements
of Section 10.3 through Section 10.9 hereof, inclusive, during the quarterly or
annual period covered by the statements then being furnished (including with
respect to each such Section, where applicable, the calculations of the maximum
or minimum amount, ratio or percentage, as the case may be, permissible under
the terms of such Sections, and the calculation of the amount, ratio or
percentage then in existence); and

(b)                                  Event
of Default — a statement that such officer has reviewed the relevant terms
hereof and has made, or caused to be made, under his or her supervision, a
review of the transactions and conditions of the Company and its Restricted
Subsidiaries from the beginning of the quarterly or annual period covered by
the statements then being furnished to the date of the certificate and that
such review shall not have disclosed the existence during such period of any
condition or event that constitutes a Default or an Event of Default or, if any
such condition or event existed or exists (including, without limitation, any
such event or condition resulting from the failure of the Company or any
Subsidiary to comply with any Environmental Law), specifying the nature and
period of existence thereof and what action the Company shall have taken or
proposes to take with respect thereto.

7.3                               Inspection.  The
Company shall permit the representatives of each holder of Notes that is an
Institutional Investor:

(a)                                  No
Default — if no Default or Event of Default then exists, at the expense of
such holder and upon reasonable prior notice to the Company, to visit the
principal executive office of the Company, to discuss the affairs, finances and
accounts of the Company and its Restricted Subsidiaries with the Company’s
officers, and (with the consent of the Company, which consent will not be
unreasonably withheld) its independent public accountants, and (with the
consent of the Company, which consent will not be unreasonably withheld) to
visit the other offices and properties of the Company and each Restricted
Subsidiary, all at such reasonable times and as often as may be reasonably
requested in writing; and

(b)                                  Default
— if a Default or Event of Default then exists, at the expense of the
Company to visit and inspect any of the offices or properties of the Company or
any Restricted Subsidiary, to examine all their respective books of account,
records, reports and other

 14
 

papers, to make copies and extracts therefrom, and to
discuss their respective affairs, finances and accounts with their respective
officers and independent public accountants (and by this provision the Company
authorizes said accountants to discuss the affairs, finances and accounts of
the Company and its Restricted Subsidiaries), all at such times and as often as
may be requested.

8.                                      PREPAYMENT OF THE NOTES.

8.1                               Required
Prepayments.  On June 9, 2002 and on each June 9 thereafter to
and including June 9, 2007 the Company will prepay $8,571,428.50 principal
amount (or such lesser principal amount as shall then be outstanding) of the
Notes at par and without payment of the Make-Whole Amount or any premium, provided
that upon any partial prepayment of the Notes pursuant to Section 8.2 or
purchase of the Notes permitted by Section 8.5 the principal amount of each
required prepayment of the Notes becoming due under this Section 8.1 on and
after the date of such prepayment or purchase shall be reduced in the same
proportion as the aggregate unpaid principal amount of the Notes is reduced as
a result of such prepayment or purchase.

8.2                               Optional
Prepayments with Make-Whole Amount.  The Company may, at its
option, upon notice as provided below, prepay at any time all, or from time to
time any part of, the Notes, in an amount not less than $1,000,000 in the case
of a partial prepayment, at 100% of the principal amount so prepaid, plus the
Make-Whole Amount determined for the prepayment date with respect to such
principal amount. The Company will give each holder of Notes written notice of
each optional prepayment under this Section 8.2 not less than 30 days and not
more than 60 days prior to the date fixed for such prepayment. Each such notice
shall specify such date, the aggregate principal amount of the Notes to be
prepaid on such date, the principal amount of each Note held by such holder to
be prepaid (determined in accordance with Section 8.3), and the interest to be
paid on the prepayment date with respect to such principal amount being
prepaid, and shall be accompanied by a certificate of a Senior Financial
Officer as to the estimated Make-Whole Amount due in connection with such
prepayment (calculated as if the date of such notice were the date of the
prepayment), setting forth the details of such computation. Two Business Days
prior to such prepayment, the Company shall deliver to each holder of Notes a
certificate of a Senior Financial Officer specifying the calculation of such
Make-Whole Amount as of the specified prepayment date.

8.3                               Allocation
of Partial Prepayments.  In the case of each partial prepayment
of the Notes, the principal amount of the Notes to be prepaid shall be
allocated among all of the Notes at the time outstanding in proportion, as
nearly as practicable, to the respective unpaid principal amounts thereof not
theretofore called for prepayment.

8.4                               Maturity;
Surrender, etc.  In the case of each prepayment of Notes pursuant
to this Section 8, the principal amount of each Note to be prepaid shall mature
and become due and payable on the date fixed for such prepayment, together with
interest on such principal amount accrued to such date and the applicable
Make-Whole Amount, if any. From and after such date, unless the Company shall
fail to pay such principal amount when so due and payable, together with the interest
and Make-Whole Amount, if any, as aforesaid, interest on such principal amount
shall cease to accrue. Any Note paid or prepaid in full shall be cancelled, and
at the

 15
 

request of the Company, surrendered to the Company,
and shall not be reissued, and no Note shall be issued in lieu of any prepaid
principal amount of any Note.

8.5                               Purchase
of Notes.  The Company will not and will not permit any
Subsidiary or any other Affiliate which it and/or any Subsidiary controls to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of
the outstanding Notes except upon the payment or prepayment of the Notes in
accordance with the terms of this Agreement and the Notes. The Company will
promptly cancel all Notes acquired by it or any Subsidiary or any such other
Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to
any provision of this Agreement and no Notes may be issued in substitution or
exchange for any such Notes.

8.6                               Make-Whole
Amount.  The term “Make-Whole
Amount” means, with respect to any Note, an amount equal to the
excess, if any, of the Discounted Value of the Remaining Scheduled Payments
with respect to the Called Principal of such Note over the amount of such
Called Principal, provided that the Make-Whole Amount may in no event be
less than zero. For the purposes of determining the Make-Whole Amount, the
following terms have the following meanings:

“Called
Principal” means, with respect to any Note, the principal of
such Note that is to be prepaid pursuant to Section 8.2 or has become or is
declared to be immediately due and payable pursuant to Section 12.1, as the
context requires.

“Discounted
Value” means, with respect to the Called Principal of any
Note, the amount obtained by discounting all Remaining Scheduled Payments with
respect to such Called Principal from their respective scheduled due dates to
the Settlement Date with respect to such Called Principal, in accordance with
accepted financial practice and at a discount factor (applied on the same periodic
basis as that on which interest on the Notes is payable) equal to the
Reinvestment Yield with respect to such Called Principal.

“Reinvestment
Yield” means, with respect to the Called Principal of any
Note, 0.50% over the yield to maturity implied by (i) the yields
reported, as of 10:00 A.M. (New York City time) on the second Business Day
preceding the Settlement Date with respect to such Called Principal, on the
display designated as “Page 678” on the Dow Jones Markets Service (or such
other display as may replace Page 678 on the Dow Jones Markets Service) for
actively traded U.S. Treasury securities having a maturity equal to the
Remaining Average Life of such Called Principal as of such Settlement Date, or
(ii) if such yields are not reported as of such time or the yields
reported as of such time are not ascertainable, the Treasury Constant Maturity
Series Yields reported, for the latest day for which such yields have been so
reported as of the second Business Day preceding the Settlement Date with respect
to such Called Principal, in Federal Reserve Statistical Release H.I5 (519) (or
any comparable successor publication) for actively traded U.S. Treasury
securities having a constant maturity equal to the Remaining Average Life of
such Called Principal as of such Settlement Date. Such implied yield will be
determined, if necessary, by (a) converting U.S. Treasury bill
quotations to bond-equivalent yields in accordance with accepted financial
practice and (b) interpolating linearly between (1) the actively
traded U.S. Treasury security with the average life closest to and greater than
the Remaining Average Life and (2) the actively traded U.S. Treasury
security with the average life closest to and less than the Remaining Average
Life.

 16
 

“Remaining Average Life” means, with respect to any Called Principal, the
number of years (calculated to the nearest one-twelfth year) obtained by
dividing (i) such Called Principal into (ii) the sum of the
products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such
Called Principal by (b) the number of years (calculated to the
nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled
due date of such Remaining Scheduled Payment.

“Remaining Scheduled Payments” means, with respect to the Called Principal of any
Note, all payments of such Called
Principal and interest thereon that would be due after the Settlement Date with
respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided
that if such Settlement Date is not a date on which interest payments are due
to be made under the terms of the Notes, then the amount of the next succeeding
scheduled interest payment will be reduced by the amount of interest accrued to
such Settlement Date and required to be paid on such Settlement Date pursuant
to Section 8.2 or 12.1.

“Settlement Date” means, with respect to the Called Principal of any
Note, the date on which such Called
Principal is to be prepaid pursuant to Section 8.2 or has become or is declared
to be immediately due and payable pursuant to Section 12.1, as the context
requires.

9.                                      AFFIRMATIVE
COVENANTS.

The Company covenants that so long as any of the Notes are outstanding:

9.1                                  Compliance with Law.  The Company will and will cause each
of its Subsidiaries to comply with
all laws, ordinances or governmental rules or regulations to which each
of them is subject, including, without limitation, Environmental Laws, and will
obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations necessary to the ownership of their
respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure
that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses,
certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

9.2                               Insurance.  The Company will and will cause each of its Restricted
Subsidiaries to maintain, with
financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such
casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and
self-insurance, if adequate reserves
are maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in
the same or a similar business and similarly situated.

9.3                               Maintenance of Properties.  The Company will and will cause each of
its Restricted Subsidiaries to
maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and
condition (other than ordinary wear and tear), so that the business carried on in connection
therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Restricted
Subsidiary from

 17
 

discontinuing the
operation and the maintenance of any of its properties if such discontinuance
is desirable in the conduct of its business
and the Company has concluded that such discontinuance could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

9.4                               Payment of Taxes and Claims.  The Company will and will cause each of
its Subsidiaries to file all tax returns required to be filed in any
jurisdiction and to pay and discharge all
taxes shown to be due and payable on such returns and all other taxes,
assessments, governmental charges, or
levies imposed on them or any of their properties, assets, income or
franchises, to the extent such taxes and assessments have become due and
payable and before they have become
delinquent and all claims for which sums have become due and payable that have
or might become a Lien on properties or assets of the Company or any
Subsidiary, provided that neither the
Company nor any Subsidiary need pay any such tax or assessment or claims if (i)
the amount, applicability or validity thereof is contested by the Company or
such Subsidiary on a timely basis in good
faith and in appropriate proceedings, and the Company or such Subsidiary
has established adequate reserves therefor in accordance with GAAP on the books
of the Company or such Subsidiary or (ii) the nonpayment of all such
taxes and assessments in the aggregate could
not reasonably be expected to have a Material Adverse Effect.

9.5                               Corporate Existence, etc.  Subject to Section 10.2, the Company
will at all times preserve and keep in full force and effect its corporate
existence. Subject to Section 10.2, the Company will at all times preserve and keep in full force and effect the
corporate existence of each of its Restricted Subsidiaries and all
rights and franchises of the Company and its Restricted Subsidiaries unless, in
the good faith judgment of the Company, the termination of or failure to
preserve and keep in full force and effect such corporate existence, right or
franchise could not, individually or in the
aggregate, have a Material Adverse Effect.

9.6                               Additional Major Subsidiaries  Upon the creation or acquisition of any
Major Subsidiary after the Closing,
the Company shall immediately cause such Major Subsidiary to execute and
deliver a joinder agreement to the Subsidiary Guaranty and deliver to you
copies of the items delivered pursuant to
Section 7.9 of the Bank Credit Agreement. If any existing Subsidiary that is not a Major Subsidiary at
Closing thereafter becomes a Major Subsidiary, such Subsidiary shall be
a Major Subsidiary and the Company shall promptly give you written notice of such additional Major Subsidiary and comply
with the foregoing sentence.

10.                               NEGATIVE
COVENANTS.

The Company covenants that so long as any of the Notes are outstanding:

10.1                        Transactions with Affiliates.  The Company will not and will not
permit any Restricted Subsidiary to
enter into directly or indirectly any transaction or Material group of related transactions (including without limitation
the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any
Affiliate (other than the Company or
another Restricted Subsidiary), except (i) in the ordinary course and
pursuant to the reasonable
requirements of the Company’s or such Restricted Subsidiary’s business and upon
fair and reasonable terms no less favorable to the Company or such
Restricted Subsidiary than would be
obtainable in a comparable arm’s-length transaction with a Person not an
Affiliate,

 18
 

(ii) for stock
related transactions with officers and directors of the Company and its
Restricted Subsidiaries, and (iii) for stock related transactions with Plans
upon fair and reasonable terms no less favorable to the Company or such
Restricted Subsidiary than would be obtainable in a comparable arm’s-length
transaction with a Person not an Affiliate.

10.2                        Merger, Consolidation, Etc.  The Company shall not, and shall not permit any of
its Restricted Subsidiaries to, consolidate with or merge with any other
corporation or convey, transfer or lease all or substantially all of its assets
in a single transaction or series of transactions to any Person (except that a Restricted Subsidiary may consolidate with
or merge with, or convey, transfer or lease all or substantially all of
its assets in a single transaction or series of transactions to (x) the Company, (y) a Wholly-Owned Restricted
Subsidiary, or (z) another Person so
long as, in the case of clause (z), the Restricted Subsidiary is the surviving
entity) unless:

(a)                                  the
successor formed by such consolidation or the survivor of such merger or the
Person that acquires by conveyance, transfer or lease all or substantially all
of the assets of the Company, as the case
may be, shall be a solvent corporation organized and existing under the laws of the United States or any State thereof
(including the District of Columbia), and (i) such corporation shall have
executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of
each covenant and condition of this Agreement,
the Other Agreements, the Subsidiary Guaranty (where applicable), and the Notes
and (ii) shall have caused to be delivered to each holder of any Notes an
opinion of nationally recognized
independent counsel, or other independent counsel reasonably satisfactory to
the Required Holders, to the effect
that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and
comply with the terms hereof;

(b)                                  immediately after giving effect to such
transaction, no Default or Event of Default shall have occurred and be
continuing.

No
such conveyance, transfer or lease of all or substantially all of the assets of
the Company shall have the effect of releasing the Company or any
successor corporation that shall theretofore have become such in the manner
prescribed in this Section 10.2 from its liability under this Agreement or the Notes.

10.3          Liens.  The
Company will not, and will not permit any of its Restricted Subsidiaries
to, directly or indirectly create, incur, assume or permit to exist (upon the
happening of a contingency or otherwise) any Lien on or with respect to any
property or asset (including, without limitation, any document or instrument in
respect of goods or accounts receivable) of the Company or any such Restricted
Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or
otherwise convey any right to receive income or profits, except:

(a)                                  Liens
for taxes, assessments or other governmental charges which are not yet due and payable or the payment of which is not
at the time required by Section 9.4;

(b)                                  statutory Liens of
landlords and Liens of carriers, warehousemen, mechanics, materialmen and other
similar Liens, in each case incurred in the ordinary course of

 19
 

business for sums not yet due and payable or the
payment of which is not at the time required by Section 9.4;

(c)                                  Liens
(other than any Lien imposed by ERISA) incurred or deposits made in the
ordinary course of business, including without limitation (i) in connection with workers’
compensation, unemployment insurance and other types of social security or
retirement benefits, or (ii) to
secure (or to obtain letters of credit that secure) the performance of tenders,
statutory obligations, surety bonds, appeal bonds, bids, leases (other than
Capital Leases), performance bonds, purchase, construction or sales contracts
and other similar obligations, in each case not incurred or made in connection
with the borrowing of money, the obtaining of advances or credit or the payment
of the deferred purchase price of property, which Liens collectively do not
materially interfere with the conduct of the Company’s or any of its Restricted
Subsidiaries’ business or the use of their properties;

(d)                                  any
attachment or judgment Lien, unless the judgment it secures shall not, within
60 days after the entry thereof, have been discharged or execution thereof
stayed pending appeal, or shall not have been discharged within 60 days after
the expiration of any such stay; and any attachment or judgment Lien as to
which the Company or a Restricted Subsidiary has established adequate reserves
in accordance with GAAP on the books of the Company or such Restricted
Subsidiary;

(e)                                  leases
or subleases granted to others, easements, rights-of-way, restrictions and
other similar charges or encumbrances, in each case incidental to, and not
interfering with, the ordinary conduct of the business of the Company or any of
its Restricted Subsidiaries, provided
that such Liens do not, in the aggregate, materially detract from the value of
such property;

(f)                                    Liens
on property or assets of the Company securing Debt of the Company owing to a
Wholly-Owned Restricted Subsidiary or Liens on property or assets of a
Restricted Subsidiary securing Debt of such Restricted Subsidiary owing to the
Company or to a Wholly- Owned Restricted Subsidiary;

(g)                                 Liens
existing on the date of this Agreement and set forth on Schedule 5.15;

(h)                                 any
Lien created to secure all or any part of the purchase price, or to secure Debt
incurred or assumed to pay all or any part of the purchase price or cost of
construction, of property (or any improvement thereon) acquired or constructed
by the Company or a Restricted Subsidiary after the date of the Closing, provided that:

(i)                                    any
such Lien shall extend solely to the item or items of such property (or
improvement thereon) so acquired or constructed and, if required by the terms
of the instrument originally creating such Lien, other property (or improvement
thereon) which is an improvement to or is acquired for specific use in
connection with such acquired or constructed property (or improvement thereon)
or which is real property being improved by such acquired or constructed
property (or improvement thereon),

 20
 

(ii)                                the
principal amount of the Debt secured by any such Lien shall at no time exceed
an amount equal to the lesser of (A)
the cost to the Company or such Restricted Subsidiary of the property (or
improvement thereon) so acquired or constructed and (B) the Fair Market Value (as determined in good faith by the
board of directors of the Company) of such property (or improvement thereon) at
the time of such acquisition or construction, and

(iii)                            any
such Lien shall be created contemporaneously with, or within 180 days after the
acquisition or construction of such property (or improvement thereon);

(i)                                    any
Lien existing on property of a Person immediately prior to its being
consolidated with or merged into the Company or a Restricted Subsidiary or its
becoming a Restricted Subsidiary, or any Lien existing on any property acquired
by the Company or any Restricted Subsidiary at the time such property is so
acquired (whether or not the Debt secured thereby shall have been assumed), provided that (i) no such Lien shall have been created or assumed in
contemplation of such consolidation or merger or such Person’s becoming a
Restricted Subsidiary or such acquisition of property, and (ii) each such Lien shall extend solely to
the item or items of property so acquired and, if required by the terms of the
instrument originally creating such Lien, other property which is an
improvement to or is acquired for specific use in connection with such acquired
property;

(j)                                    any
Lien renewing, extending or refunding any Lien permitted by paragraphs (g), (h)
or (i) of this Section 10.3, provided that
(i) the principal amount of Debt
secured by such Lien immediately prior to such extension, renewal or refunding
is not increased or the maturity thereof reduced, (ii) such Lien is not extended to any other property, and (iii) immediately after such extension,
renewal or refunding no Default or Event of Default would exist; and

(k)                                other
Liens securing Debt not otherwise permitted by paragraphs (a) through (j) of
this Section 10.3, provided that
the total amount of Priority Debt at no time exceeds 20% of Consolidated Net
Worth.

10.4                        Interest
Charges Coverage Ratio.  The Company will not permit the Interest
Charges Coverage Ratio on the last day of each fiscal quarter of the Company to
be less than 2.5 to l.

10.5                        Fixed
Charges Coverage Ratio. The Company will not permit the Fixed Charges
Coverage Ratio on the last day of each fiscal year of the Company to be less
than 1.4 to 1.

10.6                        Maintenance
of Consolidated Debt.The Company will not at any time permit
Consolidated Debt to exceed 62% of Total Capitalization determined at such
time.

10.7                        Subsidiary
Debt.The Company will not at
any time permit any Restricted Subsidiary to, directly or indirectly, create,
incur, assume, guarantee, have outstanding, or otherwise become or remain
directly or indirectly liable with respect to, any Debt other than:

(a)                                  Debt
owed to the Company or a Wholly-Owned Restricted Subsidiary;

 21
 

(b)                                  Debt
of a Restricted Subsidiary outstanding at the time such Subsidiary becomes a
Restricted Subsidiary, provided that
(i) such Debt shall not have been
incurred in contemplation of such Subsidiary becoming a Restricted Subsidiary
and (ii) immediately after such
Subsidiary becomes a Restricted Subsidiary no Default or Event of Default shall
exist, and provided further that
such Debt may not be extended, renewed or refunded except as otherwise
permitted by this Agreement; and

(c)                                  Debt
of a Restricted Subsidiary in addition to that otherwise permitted by
subparagraph (a) or (b) of this Section 10.7, provided
that the total amount of Priority Debt at no time exceeds 20% of
Consolidated Net Worth.

10.8                        Consolidated
Net Worth.  The Company will not, at any time, permit
Consolidated Net Worth to be less than the sum of (a) $60,000,000, plus (b)
an aggregate amount equal to 25% of its Consolidated Net Income
(but, in each case, only if a positive number) for each completed fiscal
quarter beginning with the fiscal quarter ended December 31, 1997.

10.9                        Sale of
Assets.  Except as permitted under Section 10.2, the Company will
not, and will not permit any of its Restricted Subsidiaries to, make any Asset
Disposition unless:

(a)                                  in
the good faith opinion of the Company, the Asset Disposition is in exchange for
consideration having a Fair Market Value at least equal to that of the property
exchanged and is in the best interest of the Company or such Restricted
Subsidiary; and

(b)                                  immediately
after giving effect to the Asset Disposition, no Default or Event of Default
would exist; and

(c)                                  immediately
after giving effect to the Asset Disposition, the Disposition Value of all
property that was the subject of any Asset Disposition occurring in the then
current fiscal year of the Company would not exceed 10% of Consolidated Assets
as of the end of the then most recently ended fiscal year of the Company.

If the Net Proceeds Amount for any Transfer is applied
to a Debt Prepayment Application or a Property Reinvestment Application within
180 days after such Transfer, then such Transfer, only for the purpose of
determining compliance with subsection (c) of this Section 10.9 as of any date,
shall be deemed not to be an Asset Disposition.

Notwithstanding the
above, the Company or any Restricted Subsidiary may enter into a Sale and
Leaseback Transaction.

10.10                 Line of Business.  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
engage in any business if, as a result, the general nature of the business in
which the Company and its Restricted Subsidiaries, taken as a whole, would then
be engaged would be substantially changed from the general nature of the
business in which the Company and its Restricted Subsidiaries, taken as a
whole, are engaged on the date of this Agreement as described in the
Memorandum.

 22

11.                               EVENTS
OF DEFAULT.

An “Event of Default” shall exist if any of
the following conditions or events shall occur and be continuing:

(a)                                  The
Company defaults in the payment of any principal or Make-Whole Amount, if any,
on any Note when the same becomes due and payable, whether at maturity or at a
date fixed for prepayment or by declaration or otherwise; or

(b)                                  the
Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or

(c)                                  the
Company defaults in the performance of or compliance with any term contained in
Section 7.1(d) or Section 10; or

(d)                                  the
Company defaults in the performance of or compliance with any term contained
herein (other than those referred to in paragraphs (a), (b) and (c) of this
Section 11) and such default is not remedied within 30 days after the earlier
of (i) a Responsible Officer obtaining actual knowledge of such default
and (ii) the Company receiving written notice of such default from any
holder of a Note (any such written notice to be identified as a “notice of
default” and to refer specifically to this paragraph (d) of Section 11); or

(e)                                  any
representation or warranty made in writing by or on behalf of the Company or
any Restricted Subsidiary or by any officer of the Company or any Restricted
Subsidiary in this Agreement or the Subsidiary Guaranty or in any writing
furnished in connection with the transactions contemplated hereby proves to
have been false or incorrect in any material respect on the date as of which
made; or

(f)                                    (i)
the Company or any Restricted Subsidiary is in default (as principal or as
guarantor or other surety) in the payment of any principal of or premium or
make-whole amount or interest on any outstanding Indebtedness beyond any period
of grace provided with respect thereto, or (ii) the Company or any
Restricted Subsidiary is in default in the performance of or compliance with
any term of any evidence of any outstanding Indebtedness or of any mortgage,
indenture or other agreement relating thereto or any other condition exists,
and as a consequence of such default or condition any Indebtedness has become,
or has been declared (or one or more Persons are entitled to declare any
Indebtedness to be), due and payable before its stated maturity or before its
regularly scheduled dates of payment, or (iii) as a consequence of the
occurrence or continuation of any event or condition (other than the passage of
time or the right of the holder of Indebtedness to convert such Indebtedness
into equity interests), (x) the Company or any Restricted Subsidiary has
become obligated to purchase or repay Indebtedness before its regular maturity
or before its regularly scheduled dates of payment, or (y) one or more
Persons have the right to require the Company or any Restricted Subsidiary so
to purchase or repay such Indebtedness, provided that the aggregate amount of
all Indebtedness to which such a payment default shall occur and be continuing
or such a failure or other event causing or permitting acceleration (or resale
to the Company or any Restricted Subsidiary) shall occur and be continuing
exceeds $10,000,000; or

 23
 

(g)                                 the
Company or any Restricted Subsidiary (i) is generally not paying, or
admits in writing its inability to pay, its debts as they become due, (ii)
files, or consents by answer or otherwise to the filing against it of, a
petition for relief or reorganization or arrangement or any other petition in
bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency,
reorganization, moratorium or other similar law of any jurisdiction, (iii)
makes an assignment for the benefit of its creditors, (iv) consents to
the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its
property, (v) is adjudicated as insolvent or to be liquidated, or (vi)
takes corporate action for the purpose of any of the foregoing; or

(h)                                 a
court or governmental authority of competent jurisdiction enters an order
appointing, without consent by the Company or any of its Restricted
Subsidiaries, a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its
property, or constituting an order for relief or approving a petition for
relief or reorganization or any other petition in bankruptcy or for liquidation
or to take advantage of any bankruptcy or insolvency law of any jurisdiction,
or ordering the dissolution, winding-up or liquidation of the Company or any of
its Restricted Subsidiaries, or any such petition shall be filed against the
Company or any of its Restricted Subsidiaries and such petition shall not be
dismissed within 60 days; or

(i)                                    a
final judgment or judgments for the payment of money aggregating in excess of
$5,000,000 are rendered against one or more of the Company and its Restricted
Subsidiaries and which judgments are not, within 60 days after entry thereof,
bonded, discharged or stayed pending appeal, or are not discharged within 60 days
after the expiration of such stay; or

(j)                                    if
the Subsidiary Guaranty shall at any time for any reason be purportedly revoked
by any Guarantor or be declared by any Guarantor to be null and void, or the
validity or enforceability thereof shall be contested by any Guarantor, or a
proceeding shall be commenced by any Guarantor seeking to establish the
invalidity or unenforceability thereof, or any Guarantor shall deny that it has
any liability or obligation purported to be created thereunder; or

(k)                                if
(i) any Plan shall fail to satisfy the minimum funding standards of
ERISA or the Code for any plan year or part thereof or a waiver of such
standards or extension of any amortization period is sought or granted under
section 412 of the Code, (ii) a notice of intent to terminate any Plan
shall have been or is reasonably expected to be filed with the PBGC or the PBGC
shall have instituted proceedings under ERISA section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified the
Company or any ERISA Affiliate that a Plan may become a subject of any such
proceedings, (iii) the aggregate “amount of unfunded benefit liabilities”
(within the meaning of section 4001(a)(18) of ERISA) under all Plans,
determined in accordance with the actuarial assumptions used by the Company for
financial reporting purposes, shall exceed $10,000,000, (iv) the Company
or any ERISA Affiliate shall have incurred or is reasonably expected to incur
any liability pursuant to Title I or IV of ERISA or the penalty or excise tax
provisions of the Code relating to employee benefit plans, (v) the
Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi)
the Company or any Subsidiary establishes or amends any employee welfare
benefit plan that provides post-employment welfare benefits in a manner that
would increase the liability of the

 24
 

Company or any Subsidiary thereunder; and any such
event or events described in clauses (i) through (vi) above, either
individually or together with any other such event or events, could reasonably
be expected to have a Material Adverse Effect.

As used in Section 11(k), the terms “employee
benefit plan” and “employee
welfare benefit plan” shall have the respective meanings assigned to
such terms in Section 3 of ERISA.

12.                               REMEDIES
ON DEFAULT, ETC. 

12.1                        Acceleration.

(a)                                  If
an Event of Default with respect to the Company described in paragraph (g) or
(h) of Section 11 (other than an Event of Default described in clause (i) of
paragraph (g) or described in clause (vi) of paragraph (g) by virtue of the
fact that such clause encompasses clause (i) of paragraph (g)) has occurred,
all the Notes then outstanding shall automatically become immediately due and
payable.

(b)                                  If
any Event of Default described in paragraphs (c), (d), (e), (f), clause (i) of
paragraph (g), clause (vi) of paragraph (g) by virtue of the fact that such
clause encompasses clause (i) of paragraph (g), (i), (j) or (k) of Section 11
has occurred and is continuing, any holder or holders of 34% or more in
principal amount of the Notes at the time outstanding may at any time at its or
their option, by notice or notices to the Company, declare all the Notes then
outstanding to be immediately due and payable.

(c)                                  If
any Event of Default described in paragraph (a) or (b) of Section 11 has
occurred and is continuing, any holder or holders of Notes at the time
outstanding affected by such Event of Default may at any time, at its or their
option, by notice or notices to the Company, declare all the Notes held by it
or them to be immediately due and payable.

Upon any Notes becoming
due and payable under this Section 12.1, whether automatically or by
declaration, such Notes will forthwith mature and the entire unpaid principal
amount of such Notes, plus (x) all accrued and unpaid interest thereon
and (y) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the
Company (except as herein specifically provided for) and that the provision for
payment of a Make-Whole Amount by the Company in the event that the Notes are
prepaid or are accelerated as a result of an Event of Default, is intended to
provide compensation for the deprivation of such right under such
circumstances.

12.2                        Other
Remedies.  If any Default or Event of Default has occurred and is
continuing, and irrespective of whether any Notes have become or have been
declared immediately due and payable under Section 12.1, the holder of any Note
at the time outstanding may proceed to protect and enforce the rights of such
holder by an action at law, suit in equity or other appropriate proceeding,
whether for the specific performance of any agreement contained herein or in
any Note, or for an injunction against a violation of any of the terms hereof
or thereof, or in aid of the exercise of any power granted hereby or thereby or
by law or otherwise.

 25
 

12.3                        Rescission.  At
any time after any Notes have been declared due and payable pursuant to clause
(b) of Section 12.1, the holders of not less than 67% in principal amount of
the Notes then outstanding, by written notice to the Company, may rescind and
annul any such declaration and its consequences if (a) the Company has
paid all overdue interest on the Notes, all principal of and Make-Whole Amount,
if any, on any Notes that are due and payable and are unpaid other than by
reason of such declaration, and all interest on such overdue principal and
Make-Whole Amount, if any, and (to the extent permitted by applicable law) any
overdue interest in respect of the Notes, at the Default Rate, (b) all
Events of Default and Defaults, other than non-payment of amounts that have
become due solely by reason of such declaration, have been cured or have been
waived pursuant to Section 17, and (c) no judgment or decree has been
entered for the payment of any monies due pursuant hereto or to the Notes. No
rescission and annulment under this Section 12.3 will extend to or affect any
subsequent Event of Default or Default or impair any right consequent thereon.

12.4                        No Waivers
or Election of Remedies, Expenses, etc.  No course of dealing and
no delay on the part of any holder of any Note in exercising any right, power
or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s
rights, powers or remedies. No right, power or remedy conferred by this
Agreement or by any Note upon any holder thereof shall be exclusive of any
other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the
obligations of the Company under Section 15, the Company will pay to the holder
of each Note on demand such further amount as shall be sufficient to cover all
costs and expenses of such holder incurred in any enforcement or collection
under this Section 12, including, without limitation, reasonable attorneys’
fees, expenses and disbursements.

13.                               REGISTRATION;
EXCHANGE; SUBSTITUTION OF NOTES.

13.1        Registration of Notes.  The
Company shall keep at its principal executive office a register for the
registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and
address of each transferee of one or more Notes shall be registered in such
register. Prior to due presentment for registration of transfer, the Person in
whose name any Note shall be registered shall be deemed and treated as the
owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to
any holder of a Note that is an Institutional Investor promptly upon request
therefor, a complete and correct copy of the names and addresses of all
registered holders of Notes.

13.2                        Transfer
and Exchange of Notes.  Upon surrender of any Note at the
principal executive office of the Company for registration of transfer or
exchange (and in the case of a surrender for registration of transfer, duly
endorsed or accompanied by a written instrument of transfer duly executed by
the registered holder of such Note or his attorney duly authorized in writing
and accompanied by the address for notices of each transferee of such Note or
part thereof), the Company shall execute and deliver, at the Company’s expense
(except as provided below), one or more new Notes (as requested by the holder
thereof) in exchange therefor, in an aggregate principal amount equal to the
unpaid principal amount of the surrendered Note. Each such new Note shall be
payable to such Person as such holder may request and shall be substantially in
the form of Exhibit 1. Each such new Note shall be dated and bear interest from

 26
 

the date to which interest shall have been paid on the
surrendered Note or dated the date of the surrendered Note if no interest shall
have been paid thereon. The Company may require payment of a sum sufficient to
cover any stamp tax or governmental charge imposed in respect of any such
transfer of Notes. Notes shall not be transferred in denominations of less than
$1,000,000, provided that if necessary to enable the registration of
transfer by a holder of its entire holding of Notes, one Note may be in a
denomination of less than $1,000,000. Any transferee, by its acceptance of a
Note registered in its name (or the name of its nominee), shall be deemed to
have made the representations set forth in Article 6; provided, however, that
the Company shall not be required to effect any such transfer if the Company is
legally unable to deliver the certificate described in the penultimate
paragraph of Section 6.2. Each transferee of a Note which is not already a
party to the Subsidiary Guaranty shall execute and deliver a joinder agreement
in the form attached as Exhibit A to the Subsidiary Guaranty.

13.3                        Replacement
of Notes.  Upon receipt by the Company of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Note (which evidence shall be, in the case of an
Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and

(a)                                  in
the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder
of such Note is, or is a nominee for, an original Purchaser or another holder
of a Note with a minimum net worth of at least $50,000,000, such Person’s own
unsecured agreement of indemnity shall be deemed to be satisfactory), or

(b)                                  in
the case of mutilation, upon surrender and cancellation thereof,

the Company at its own expense shall execute and
deliver, in lieu thereof, a new Note, dated and bearing interest from the date
to which interest shall have been paid on such lost, stolen, destroyed or
mutilated Note or dated the date of such lost, stolen, destroyed or mutilated
Note if no interest shall have been paid thereon.

14.                               PAYMENTS
ON NOTES.

14.1        Place of Payment.  Subject
to Section 14.2, payments of principal, Make-Whole Amount, if any, and interest
becoming due and payable on the Notes shall be made in New York, New York, at
the principal office of Bank of America National Trust and Savings Association
in such jurisdiction. The Company may at any time, by notice to each holder of
a Note, change the place of payment of the Notes so long as such place of
payment shall be either the principal office of the Company in such
jurisdiction or the principal office of a bank or trust company in such
jurisdiction.

14.2                        Home
Office Payment.  So long as you or your nominee shall be the
holder of any Note, and notwithstanding anything contained in Section 14.1 or
in such Note to the contrary, the Company will pay all sums becoming due on
such Note for principal, Make-Whole Amount, if any, and interest by the method
and at the address specified for such purpose below your name in Schedule A, or
by such other method or at such other address as you shall have from time to
time specified to the Company in writing for such purpose, without the
presentation or surrender of such Note or the making of any notation thereon,
except that upon written request

 27
 

of the Company made concurrently with or reasonably
promptly after payment or prepayment in full of any Note, you shall surrender
such Note for cancellation, reasonably promptly after any such request, to the
Company at its principal executive office or at the place of payment most
recently designated by the Company pursuant to Section 14.1. Prior to any sale
or other disposition of any Note held by you or your nominee you will, at your
election, either endorse thereon the amount of principal paid thereon and the
last date to which interest has been paid thereon or surrender such Note to the
Company in exchange for a new Note or Notes pursuant to Section 13.2. The
Company will afford the benefits of this Section 14.2 to any Institutional
Investor that is the direct or indirect transferee of any Note purchased by you
under this Agreement and that has made the same agreement relating to such Note
as you have made in this Section 14.2.

15.                               EXPENSES,
ETC.

15.1                        Transaction
Expenses.  Whether or not the transactions contemplated hereby
are consummated, the Company will pay all costs and expenses (including
reasonable attorneys’ fees of a special counsel and, if reasonably required,
local or other counsel) incurred by you and each Other Purchaser or holder of a
Note in connection with such transactions and in connection with any
amendments, waivers or consents under or in respect of this Agreement, the
Subsidiary Guaranty, or the Notes (whether or not such amendment, waiver or
consent becomes effective), including, without limitation: (a) the costs and
expenses incurred in enforcing or defending (or determining whether or how to
enforce or defend) any rights under this Agreement, the Subsidiary Guaranty, or
the Notes or in responding to any subpoena or other legal process or informal
investigative demand issued in connection with this Agreement, the Subsidiary
Guaranty, or the Notes, or by reason of being a holder of any Note, and (b) the
costs and expenses, including financial advisors’ fees, incurred in connection
with the insolvency or bankruptcy of the Company or any Subsidiary or in
connection with any work-out or restructuring of the transactions contemplated
hereby and by the Notes. The Company will pay, and will save you and each other
holder of a Note harmless from, all claims in respect of any fees, costs or
expenses if any, of brokers and finders (other than those retained by you).

15.2                        Survival.  The
obligations of the Company under this Section 15 will survive the payment or
transfer of any Note, the enforcement, amendment or waiver of any provision of
this Agreement, the Subsidiary Guaranty, or the Notes, and the termination of
this Agreement.

16.                               SURVIVAL
OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

All representations and
warranties contained herein shall survive the execution and delivery of this
Agreement and the Notes, the purchase or transfer by you of any Note or portion
thereof or interest therein and the payment of any Note, and may be relied upon
by any subsequent holder of a Note, regardless of any investigation made at any
time by or on behalf of you or any other holder of a Note. All statements
contained in any certificate or other instrument delivered by or on behalf of
the Company pursuant to this Agreement shall be deemed representations and
warranties of the Company under this Agreement. Subject to the preceding
sentence, this Agreement and the Notes embody the entire agreement and
understanding between you and the Company and supersede all prior agreements
and understandings relating to the subject matter hereof.

 28
 

17.                               AMENDMENT
AND WAIVER.

17.1                        Requirements.  This
Agreement and the Notes may be amended, and the observance of any term hereof
or of the Notes may be waived (either retroactively or prospectively), with
(and only with) the written consent of the Company and the Required Holders,
except that (a) no amendment or waiver of any of the provisions of Section 1,
2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be
effective as to you unless consented to by you in writing, and (b) no such
amendment or waiver may, without the written consent of the holder of each Note
at the time outstanding affected thereby, (i) subject to the provisions of
Section 12 relating to acceleration or rescission, change the amount or time of
any prepayment or payment of principal of, or reduce the rate or change the
time of payment or method of computation of interest or of the Make-Whole
Amount on, the Notes, (ii) change the percentage of the principal amount of the
Notes the holders of which are required to consent to any such amendment or
waiver, or (iii) amend any of Sections 8, 11 (a), 11(b), 12, 17 or 20 or any
defined term (as it is used therein).

17.2                        Solicitation
of Holders of Notes.

(a)                                  Solicitation.  The
Company will provide each holder of the Notes (irrespective of the amount of
Notes then owned by it) with sufficient information, sufficiently far in
advance of the date a decision is required, to enable such holder to make an
informed and considered decision with respect to any proposed amendment, waiver
or consent in respect of any of the provisions hereof or of the Notes. The
Company will deliver executed or true and correct copies of each amendment,
waiver or consent effected pursuant to the provisions of this Section 17 to
each holder of outstanding Notes promptly following the date on which it is
executed and delivered by, or receives the consent or approval of, the
requisite holders of Notes.

(b)                                  Payment.  The
Company will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or
otherwise, or grant any security, to any holder of Notes as consideration for
or as an inducement to the entering into by any holder of Notes or any waiver
or amendment of any of the terms and provisions hereof unless such remuneration
is concurrently paid, or security is concurrently granted, on the same terms,
ratably to each holder of Notes then outstanding even if such holder did not
consent to such waiver or amendment.

17.3                        Binding
Effect, Etc.  Any amendment or waiver consented to as provided in
this Section 17 applies equally to all holders of Notes and is binding upon
them and upon each future holder of any Note and upon the Company without
regard to whether such Note has been marked to indicate such amendment or
waiver. No such amendment or waiver will extend to or affect any obligation,
covenant, agreement, Default or Event of Default not expressly amended or
waived or impair any right consequent thereon. No course of dealing between the
Company and the holder of any Note nor any delay in exercising any rights
hereunder or under any Note shall operate as a waiver of any rights of any
holder of such Note. As used herein, the term “this Agreement” and references
thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

 29
 

17.4                        Notes held
by Company, Etc.  Solely for the purpose of determining whether
the holders of the requisite percentage of the aggregate principal amount of
Notes then outstanding approved or consented to any amendment, waiver or
consent to be given under this Agreement or the Notes, or have directed the
taking of any action provided herein or in the Notes to be taken upon the direction
of the holders of a specified percentage of the aggregate principal amount of
Notes then outstanding, Notes directly or indirectly owned by the Company or
any of its Affiliates (other than U.S. Trust Company of California N.A. (other
than in its capacity as trustee of a Plan)) shall be deemed not to be
outstanding.

18.                               NOTICES.

All notices and
communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice
by a recognized overnight delivery service (charges prepaid), or (b) by
registered or certified mail with return receipt requested (postage prepaid),
or (c) by a recognized overnight delivery service (with charges prepaid). Any
such notice must be sent:

(i)                                    if
to you or your nominee, to you or it at the address specified for such
communications in Schedule A, or at such other address as you or it shall
have specified to the Company in writing,

(ii)                                if
to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing, or

(iii)                            if to
the Company, to the Company at its address set forth at the beginning hereof to
the attention of Chief Financial Officer, or at such other address as the
Company shall have specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually
received.

19.                               REPRODUCTION
OF DOCUMENTS.

This Agreement and all
documents relating thereto, including, without limitation, (a) consents,
waivers and modifications that may hereafter be executed, (b) documents
received by you at the Closing (except the Notes themselves), and (c) financial
statements, certificates and other information previously or hereafter
furnished to you, may be reproduced by you by any photographic, photostatic,
microfilm, microcard, miniature photographic or other similar process and you
may destroy any original document so reproduced. The Company agrees and
stipulates that, to the extent permitted by applicable law, any such
reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by you in the regular
course of business) and any enlargement, facsimile or further reproduction of
such reproduction shall likewise be admissible in evidence. This Section 19
shall not prohibit the Company or any other holder of Notes from contesting any
such reproduction to the same extent that it could contest the original, or
from introducing evidence to demonstrate the inaccuracy of any such
reproduction.

 30
 

20.                               CONFIDENTIAL
INFORMATION.

For the purposes of this
Section 20, “Confidential Information”
means information delivered to you by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by or otherwise
pursuant to this Agreement that is proprietary in nature and that was clearly
marked or labeled or otherwise adequately identified in writing when received
by you as being confidential information of the Company or such Subsidiary, providedthat
such term does not include information that (a) was publicly known or otherwise
known to you prior to the time of such disclosure, (b) subsequently becomes
publicly known through no act or omission by you or any person acting on your
behalf, (c) otherwise becomes known to you other than through disclosure by the
Company or any Subsidiary or (d) constitutes financial statements delivered to
you under Section 7.1 that are otherwise publicly available. You will maintain
the confidentiality of such Confidential Information in accordance with
procedures adopted by you in good faith to protect confidential information of
third parties delivered to you, providedthat you may deliver or disclose
Confidential Information to (i) your directors, officers, employees, agents,
attorneys and affiliates (to the extent such disclosure reasonably relates to
the administration of the investment represented by your Notes), (ii) your financial
advisors and other professional advisors who agree to hold confidential the
Confidential Information substantially in accordance with the terms of this
Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor
to which you sell or offer to sell such Note or any part thereof or any
participation therein (if such Person has agreed in writing prior to its
receipt of such Confidential Information to be bound by the provisions of this
Section 20), (v) any Person from which you offer to purchase any security of
the Company (if such Person has agreed in writing prior to its receipt of such
Confidential Information to be bound by the provisions of this Section 20),
(vi) any federal or state regulatory authority having jurisdiction over you,
(vii) the National Association of Insurance Commissioners or any similar
organization, or any nationally recognized rating agency that requires access
to information about your investment portfolio or (viii) any other Person to
which such delivery or disclosure may be necessary or appropriate (w) to effect
compliance with any law, rule, regulation or order applicable to you, (x) in
response to any subpoena or other legal process, (y) in connection with any
litigation to which you are a party or (z) if an Event of Default has occurred
and is continuing, to the extent you may reasonably determine such delivery and
disclosure to be necessary or appropriate in the enforcement or for the
protection of the rights and remedies under your Notes and this Agreement. Each
holder of a Note, by its acceptance of a Note, will be deemed to have agreed to
be bound by and to be entitled to the benefits of this Section 20 as though it
were a party to this Agreement. On reasonable request by the Company in
connection with the delivery to any holder of a Note of information required to
be delivered to such holder under this Agreement or requested by such holder
(other than a holder that is a party to this Agreement or its nominee), such
holder will enter into an agreement with the Company embodying the provisions
of this Section 20.

21.                               SUBSTITUTION
OF PURCHASER.

You shall have the right
to substitute any one of your Affiliates as the purchaser of the Notes that you
have agreed to purchase hereunder, by written notice to the Company, which
notice shall be signed by both you and such Affiliate, shall contain such
Affiliate’s agreement to be bound by this Agreement, shall contain a
confirmation by such Affiliate of the accuracy with

 31
 

respect to it of the representations set forth in
Section 6, and shall be accompanied by a duly executed joinder agreement in the
form attached as Exhibit A to the Subsidiary Guaranty. Upon receipt of such
notice, wherever the word “you” is used in this Agreement (other than in this
Section 21), such word shall be deemed to refer to such Affiliate in lieu of
you. In the event that such Affiliate is so substituted as a purchaser
hereunder and such Affiliate thereafter transfers to you all of the Notes then
held by such Affiliate, upon receipt by the Company of notice of such transfer,
wherever the word “you” is used in this Agreement (other than in this Section
21), such word shall no longer be deemed to refer to such Affiliate, but shall
refer to you, and you shall have all the rights of an original holder of the
Notes under this Agreement.

22.                               MISCELLANEOUS.

22.1                        Successors
and Assigns.  All covenants and other agreements contained in
this Agreement by or on behalf of any of the parties hereto bind and inure to
the benefit of their respective successors and assigns (including, without
limitation, any subsequent holder of a Note) whether so expressed or not.

22.2                        Payments
Due on Non-Business Days.  Anything in this Agreement or the
Notes to the contrary notwithstanding, any payment of principal of or Make-Whole
Amount or interest on any Note that is due on a date other than a Business Day
shall be made on the next succeeding Business Day without including the
additional days elapsed in the computation of the interest payable on such next
succeeding Business Day.

22.3                        Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
(to the full extent permitted by law) not invalidate or render unenforceable
such provision in any other jurisdiction.

22.4                        Construction.  Each
covenant contained herein shall be construed (absent express provision to the
contrary) as being independent of each other covenant contained herein, so that
compliance with any one covenant shall not (absent such an express contrary
provision) be deemed to excuse compliance with any other covenant. Where any
provision herein refers to action to be taken by any Person, or which such
Person is prohibited from taking, such provision shall be applicable whether
such action is taken directly or indirectly by such Person.

22.5                        Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies hereof, each signed by less than
all, but together signed by all, of the parties hereto.

22.6                        Governing
Law.  This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the law of
the State of New York excluding choice-of-law principles of the law of such
State that would require the application of the laws of a jurisdiction other
than such State.

*    *    *    *    *

 32
 

If you are in agreement
with the foregoing, please sign the form of agreement on the accompanying
counterpart of this Agreement and return it to the Company, whereupon the
foregoing shall become a binding agreement between you and the Company.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AECOM TECHNOLOGY CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ R. Keeffe Griffith

  
	
   

  	
   

  	
  Its:

  	
  Vice President,
  Secretary,

  General Counsel

  

 

The foregoing is hereby agreed to as of

the date thereof.

	
  THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Illegible

  	
   

  	
   

  
	
  Its:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  PRUCO LIFE INSURANCE COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Illegible

  	
   

  	
   

  
	
  Its:

  	
  Assistant Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  U.S. PRIVATE PLACEMENT FUND

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Prudential Private Placement

  	
   

  
	
   

  	
  Investors, L.P., Investment Advisor

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Prudential Private Placement

  	
   

  
	
   

  	
  Investors, Inc., its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Illegible

  	
   

  	
   

  
	
   

  	
  Vice President

  	
   

  
					

 

 33

EXHIBIT 1

[FORM
OF NOTE]

THIS
NOTE IS ISSUED PURSUANT TO AN EXEMPTION FROM THE SECURITIES ACT OF 1933, AS
AMENDED, AND CERTAIN STATE SECURITIES LAWS, AND HAS NOT BEEN REGISTERED WITH
THE SECURITIES AND EXCHANGE COMMISSION OR SUCH STATES’ SECURITIES COMMISSIONS.
THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE TRANSFERRED, RESOLD, PLEDGED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT AS
PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE
STATE SECURITIES LAWS, PURSUANT 

TO REGISTRATION OR EXEMPTION THEREFROM.

AECOM
TECHNOLOGY CORPORATION

6.93%
SENIOR NOTE DUE JUNE 9, 2008

	
  No. [           ]

  	
  June 9, 1998

  
	
  $[                ]

  	
  PPN[                         ]

  

FOR VALUE RECEIVED, the undersigned, AECOM Technology Corporation (herein
called the “Company”), a corporation organized and existing under the laws of
the State of Delaware, hereby promises to pay to [                           ],
or registered assigns, the principal sum of [                             ]
DOLLARS on June 9, 2008, with interest (computed on the basis of a 360-day year
of twelve 30-day months) (a) on the unpaid balance thereof at the rate of 6.93%
per annum from the date hereof, payable semiannually, on the 9th day of June
and December in each year, commencing with the June or December next succeeding
the date hereof, until the principal hereof shall have become due and payable,
and (b) to the extent permitted by law on any overdue payment (including any
overdue prepayment) of principal, any overdue payment of interest and any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreements referred to below), payable semiannually as aforesaid (or, at the
option of the registered holder hereof, on demand), at a rate per annum from
time to time equal to the greater of (i) 8.93% or (ii) 2% over the rate of
interest publicly announced by Bank of New York from time to time in New York,
New York as its “base” or “prime” rate.

Payments of principal of,
interest on and any Make-Whole Amount with respect to this Note are to be made
in lawful money of the United States of America at the main office of Bank of
America National Trust and Savings Association, New York, New York, or at such
other place as the Company shall have designated by written notice to the
holder of this Note as provided in the Note Purchase Agreements referred to
below.

This Note is one of a
series of Senior Notes (herein called the “Notes”) issued pursuant to separate
Note Purchase Agreements, dated as of June 9, 1998 (as from time to time
amended, the

 1
 

“Note Purchase Agreements”), between the Company and the respective
Purchasers named therein and is entitled to the benefits thereof. Each holder
of this Note will be deemed, by its acceptance hereof, (i) to have agreed to
the confidentiality provisions set forth in Section 20 of the Note Purchase
Agreements and (ii) to have made the representation set forth in Section 6.2 of
the Note Purchase Agreements.

This Note is a registered
Note and, as provided in the Note Purchase Agreements, upon surrender of this
Note for registration of transfer, duly endorsed, or accompanied by a written
instrument of transfer duly executed, by the registered holder hereof or such
holder’s attorney duly authorized in writing, a new Note for a like principal
amount will be issued to, and registered in the name of, the transferee. Prior
to due presentment for registration of transfer, the Company may treat the
person in whose name this Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company will
not be affected by any notice to the contrary.

This Note is guaranteed
by certain of the Company’s Subsidiaries (as defined in the Note Purchase
Agreements) pursuant to a Subsidiary Guaranty (as defined in the Note Purchase
Agreements).

The Company will make
required prepayments of principal on the dates and in the amounts specified in
the Note Purchase Agreements. This Note is also subject to optional prepayment,
in whole or from time to time in part, at the times and on the terms specified
in the Note Purchase Agreements, but not otherwise.

If an Event of Default,
as defined in the Note Purchase Agreements, occurs and is continuing, the
principal of this Note may be declared or otherwise become due and payable in
the manner, at the price (including any applicable Make-Whole Amount) and with
the effect provided in the Note Purchase Agreements.

This Note shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such State that would require the application of the
laws of a jurisdiction other than such State.

	
   

  	
   

  	
  AECOM TECHNOLOGY CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  [Title]

  
					

 

 2

SCHEDULE A

PURCHASER
SCHEDULE

	
   

  	
   

  	
   

  	
   

  	
  Aggregate

  Principal Amount

  Of Notes To Be

  Purchased

  	
   

  	
  Note

  Denomination(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

  	
   

  	
  $

  	
  22,000,000

  	
   

  	
  $

  	
  22,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
   

  	
  All
  payments on account of the Notes held by such purchaser shall be made by wire
  transfer of immediately available funds for credit to:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Account
  No. 890-0304-391

  Bank of New York

  New York, New York

  ABA No.: 021-000-018

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each
  such wire transfer shall set forth the name of the Company, a reference to
  “6.93% Senior Notes due June 9, 2008, PPN #00765*\B INV6000” and the due date
  and application (as among principal, interest and Make-Whole Amount) of the
  payment being made.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Address
  for all notices relating to payments:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Prudential Insurance Company of America

  c/o Prudential Capital Group

  Three Gateway Center

  100 Mulberry Street

  Newark, New Jersey 07102-4077

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:
  Investment Administration Unit

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Address
  for all other communications and notices:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Prudential
  Insurance Company of America

  c/o Prudential Capital Group – Private Placements

  Four Embarcadero Center

  Suite 2700

  San Francisco, CA 94111

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

 1
 

 

	
   

  	
   

  	
   

  	
   

  	
  Aggregate

  Principal Amount

  Of Notes To Be

  Purchased

  	
   

  	
  Note

  Denomination(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Recipient of telephonic prepayment notices:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Manager, Asset Management Unit

  (201) 802-6429

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Tax
  Identification No.: 22-1211670

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRUCO
  LIFE INSURANCE COMPANY

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
   

  	
  All payments on account of the Notes held by such
  Purchaser shall be made by wire transfer of immediately available funds for
  credit to:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Account No. 890-0304-421

  Bank of New York

  New York, New York

  (ABA No.: 021-000-018)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each such wire transfer shall set forth the name of
  the Company, a reference to “6.93% Senior Notes due June 9, 2008, PPN
  #00765*\B INV6001” and the due date and application (as among principal,
  interest and Make-Whole Amount) of the payment being made.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Address for all notices relating to payments:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pruco Life Insurance Company

  c/o Prudential Capital Group

  Three Gateway Center

  100 Mulberry Street

  Newark, New Jersey 07102-4077

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: Investment Administration Unit

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Address for all other communications and notices:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pruco Life
  Insurance Company

  c/o Prudential Capital Group – Private Placements

  Four Embarcadero Center

  Suite 2700

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

 

 

 2
 

 

	
   

  	
   

  	
   

  	
   

  	
  Aggregate

  Principal Amount

  Of Notes To Be

  Purchased

  	
   

  	
  Note

  Denomination(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  San Francisco,
  CA 94111

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Recipient of
  telephonic prepayment notices:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Manager, Asset Management Unit

  (201) 802-6429

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Tax
  Identification No.: 22-1944557

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S.
  PRIVATE PLACEMENT FUND

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
   

  	
  All payments on account of the Notes held by such
  Purchaser shall be made by wire transfer of immediately available funds for
  credit to:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Account No. UIFF1000002

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Boston Safe Deposit and Trust Company

  One Boston Place

  Boston, MA 02108

  ABA No.: 011-001-234

  DDA No.: 108111

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Account Name: U.S. Private Placement Fund

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each such wire transfer shall set forth the name of
  the Company, a reference to “6.93% Senior Notes due June 9, 2008,” and the
  due date and application (as among principal, interest and Make-Whole Amount)
  of the payment being made.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Address for all notices relating to payments:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mellon Trust

  One Cabot Road

  Mail Stop #028-003C

  Medford, MA 02155-5159

  Attention: Derek von Vliet

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

 3
 

 

	
   

  	
   

  	
   

  	
   

  	
  Aggregate

  Principal Amount

  Of Notes To Be

  Purchased

  	
   

  	
  Note

  Denomination(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone: (617) 382-4850

  Facsimile: (617) 382-4003

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Address for copies of notices under (2) above and
  all other communications and notices:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o Prudential Capital Group – Private Placements

  Four Embarcadero Center

  Suite 2700

  San Francisco, CA 94111

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Recipient of
  telephonic prepayment notices:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mellon Trust

  One Cabot Road

  Mail Stop #028-003C

  Medford, MA 02155-5159

  Attention: Derek von Vliet

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone: (617)
  382-4850

  Facsimile: (617) 382-4003

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 4
 

 

	
   

  	
   

  	
   

  	
   

  	
  AGGREGATE

  PRINCIPAL AMOUNT

  OF NOTES TO BE

  PURCHASED

  	
   

  	
  NOTE 

  DENOMINATION(S)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE
  NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
   

  	
  All payments by wire transfer of immediately
  available funds to:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bankers Trust Company

  16 Wall Street

  Insurance Unit – 4th Floor

  New York, NY 10005

  ABA # 0210-0103-3

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For the account of:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Northwestern Mutual Life Insurance Company

  Account No. 00-000-027

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with sufficient information to identify the source
  of the transfer, the amount of interest, principal or premium, the series of
  Notes and the PPN

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  All notices of payments and written confirmations of
  such wire transfers:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Northwestern Mutual Life Insurance Company

  720 East Wisconsin Avenue

  Milwaukee, WI 53202

  Attention: Investment Operations

  Facsimile: (414)299-5714

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)
  

  	
   

  	
  All other communications:

  The Northwestern Mutual Life Insurance Company

  720 East Wisconsin Avenue

  Milwaukee, WI 53202

  Attention: Securities Department

  Facsimile: (414)
  299-7124

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
										

 

 5
 

 

	
   

  	
   

  	
   

  	
   

  	
  AGGREGATE

  PRINCIPAL AMOUNT

  OF NOTES TO BE

  PURCHASED

  	
   

  	
  NOTE 

  DENOMINATION(S)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)
  

  	
   

  	
  Address for
  delivery of Notes:

  The Northwestern
  Mutual Life Insurance Company

  720 East
  Wisconsin Avenue

  Milwaukee, WI
  53202

  Attention:
  Timothy A. Otto

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Tax Identification Number:
  39-0509570

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 6

SCHEDULE B

DEFINED TERMS

As used herein, the
following terms have the respective meanings set forth below or set forth in
the Section hereof following such term:

“Affiliate”
means, at any time, and with respect to any Person, (a) any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, (b) any Person beneficially owning or holding, directly or
indirectly, 10% or more of any class of voting or equity interests of the
Company or any Restricted Subsidiary or any corporation of which the Company
and its Restricted Subsidiaries beneficially own or hold, in the aggregate,
directly or indirectly, 10% or more of any class of voting or equity interests,
and (c) any officer or director (or Person performing similar functions) of
such Person. As used in this definition, “Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise. Unless the context otherwise clearly
requires, any reference to an “Affiliate” is a reference to an Affiliate of the
Company.

“Asset
Disposition” means any Transfer except:

(a)
any Transfer from a Restricted Subsidiary to the Company so long as immediately
before and immediately after the consummation of any such Transfer and after
giving effect thereto, no Default or Event of Default exists; and

(b)
any Transfer made in the ordinary course of business and involving only
property that is either (i) inventory held for sale or (ii) equipment,
fixtures, supplies or materials no longer required in the operation of the
business of the Company or any of its Subsidiaries or that is obsolete.

“Bank
Credit Agreement” means the Credit Agreement dated as of June
9, 1998 among the Company, the several financial institutions from time to time
parties thereto (“Banks”), each Bank in its capacity as an “Issuing Bank,” and
Bank of America National Trust and Savings Association, as agent, as thereafter
amended, restated, refinanced, increased or reduced from time to time and any
successor Bank Credit Agreement.

“Business
Day” means (a) for the purposes of Section 8.6 only, any day
other than a Saturday, a Sunday or a day on which commercial banks in New York
City are required or authorized to be closed, and (b) for the purposes of any
other provision of this Agreement, any day other than a Saturday, a Sunday or a
day on which commercial banks in New York, New York or Los Angeles, California
are required or authorized to be closed.

“Capital
Lease” means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and
the incurrence of a liability in accordance with GAAP.

 1
 

“Capital
Lease Obligation” means, with respect to any Person and a
Capital Lease, the amount of the obligation of such Person as the lessee under
such Capital Lease which would, in accordance with GAAP, appear as a liability
on a balance sheet of such Person.

“Closing”
is defined in Section 3.

“Code” means
the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time.

“Company”
means AECOM Technology Corporation, a Delaware corporation.

“Confidential
Information” is defined in Section 20.

“Consolidated
Assets” means, at any time, the total assets of the Company
and its Restricted Subsidiaries which would be shown as assets on a
consolidated balance sheet of the Company and its Restricted Subsidiaries as of
such time prepared in accordance with GAAP, after eliminating all amounts
properly attributable to minority interests, if any, in the stock and surplus
of Restricted Subsidiaries.

“Consolidated
Debt” means, as of any date of determination, the total of
all Debt of the Company and its Restricted Subsidiaries outstanding on such
date, after eliminating all offsetting debits and credits between the Company
and its Restricted Subsidiaries and all other items required to be eliminated
in the course of the preparation of consolidated financial statements of the
Company and its Restricted Subsidiaries in accordance with GAAP.

“Consolidated
Income Available for Fixed Charges” means, with respect to
any period, Consolidated Net Income for such period plus all amounts deducted
in the computation thereof on account of (a) taxes imposed on or measured by
income or excess profits, as determined in accordance with GAAP, (b)
depreciation, as determined in accordance with GAAP, (c) amortization, as
determined in accordance with GAAP, (d) non-cash ESOP and stock plan related
expenses, and (e) Fixed Charges, minus non-cash interest income related to
executive compensation programs.

“Consolidated
Income Available for Interest Charges” means, with respect to
any period, Consolidated Net Income for such period plus all amounts deducted
in the computation thereof on account of (a) taxes imposed on or measured by
income or excess profits, as determined in accordance with GAAP, (b)
depreciation, as determined in accordance with GAAP, (c) amortization, as
determined in accordance with GAAP, (d) non-cash ESOP and stock plan related
expenses, and (e) Interest Charges, minus non-cash interest income related to
executive compensation programs.

“Consolidated
Net Income” means, with reference to any period, the net
income (or loss) of the Company and its Restricted Subsidiaries for such
period, as determined in accordance with GAAP, after eliminating all offsetting
debits and credits between the Company and its Restricted Subsidiaries and all
other items required to be eliminated in the course of the preparation of
consolidated financial statements of the Company and its Restricted
Subsidiaries in accordance with GAAP, provided
that there shall be excluded:

 2
 

 

(a)                     the income (or loss) of any Person
accrued prior to the date it becomes a Restricted Subsidiary or is merged into
or consolidated with the Company or a Restricted Subsidiary, and the income (or
loss) of any Person, substantially all of the assets of which have been
acquired in any manner, realized by such other Person prior to the date of
acquisition,

(b)                     the income (or loss) of any Person
(other than (i) a Restricted Subsidiary or (ii) a joint venture entered into by
the Company or any Restricted Subsidiary in the ordinary course of business for
the purpose of bidding on and performing a contract or contracts) in which the
Company or any Restricted Subsidiary has an ownership interest, except to the
extent that any such income has been actually received by the Company or such
Restricted Subsidiary in the form of cash dividends or similar cash
distributions,

(c)                     the undistributed earnings of any
Restricted Subsidiary or any joint venture described in subparagraph (b) above
to the extent that the declaration or payment of dividends or similar
distributions by such Restricted Subsidiary or joint venture is not at the time
permitted by the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to such
Restricted Subsidiary or joint venture,

(d)                     any aggregate net gain (or
aggregate net loss), net of any tax effect, during such period arising from the
sale, conversion, exchange or other disposition of capital assets (such term to
include, without limitation, (i) all non-current assets and, without
duplication, (ii) the following, whether or not current: all fixed assets,
whether tangible or intangible, all inventory sold in conjunction with the
disposition of fixed assets, and all Securities),

(e)                     any gains resulting from any
write-up of any assets (but not any loss resulting from any write-down of any
assets),

(f)                       any net gain from the collection
of the proceeds of life insurance policies,

(g)                    any gain arising from the
acquisition of any Security, or the extinguishment, under GAAP, of any Debt, of
the Company or any Restricted Subsidiary,

(h)                    any net income
or gain (but not any net loss) during such period from (i) any change in
accounting principles in accordance with GAAP, (ii) any prior period
adjustments resulting from any change in accounting principles in accordance
with GAAP, or (iii) any discontinued operations or the disposition thereof,

 3
 

(i)                       any net income or gain (or net
loss), net of any tax effect, during such period from any extraordinary items
as defined according to GAAP,

(j)                       any deferred credit representing
the excess of equity in any Restricted Subsidiary at the date of acquisition
over the cost of the investment in such Restricted Subsidiary,

(k)                   in the case of a successor to the
Company by consolidation or merger or as a transferee of its assets, any
earnings of the successor corporation prior to such consolidation, merger or
transfer of assets, and

(l)                       any portion of such net income
that cannot be converted into United States Dollars.

“Consolidated
Net Worth” means, at any time, the sum of (i) the par value (or value stated on the
books of the corporation) of the capital stock (but excluding treasury stock
and capital stock subscribed and unissued) of the Company and its Restricted
Subsidiaries, plus (ii)the
amount of the paid-in capital, translation adjustment, and retained earnings of
the Company and its Restricted Subsidiaries, in each case as such amounts would
be shown on a consolidated balance sheet of the Company and its Restricted
Subsidiaries as of such time prepared in accordance with GAAP, plus (iii)the value of the Company’s mandatorily
redeemable convertible preferred stock outstanding on September 30, 1997, minus (iv) the amount by which Restricted
Investments exceeds 10% of the sum of clauses (i), (ii), and (iii) of this
definition.

“Current
Maturities of Funded Debt” means, at any time and with
respect to any item of Funded Debt, the portion of such Funded Debt outstanding
at such time which by the terms of such Funded Debt or the terms of any
instrument or agreement relating thereto is due on demand or within one year
from such time (whether by sinking fund, other required prepayment or final
payment at maturity) and is not directly or indirectly renewable, extendible or
refundable at the option of the obligor under an agreement or firm commitment
in effect at such time to a date one year or more from such time.

“Debt”
means, with respect to any Person, at any time, without duplication,

(a)             its liabilities
for borrowed money;

(b)             its liabilities
for the deferred purchase price of property acquired by such Person (excluding
accounts payable arising in the ordinary course of business but including,
without limitation, all liabilities created or arising under any conditional
sale or other title retention agreement with respect to any such property);

(c)             its Capital Lease
Obligations;

(d)             all liabilities
for borrowed money secured by any Lien with respect to any property owned by
such Person (whether or not it has assumed or otherwise become liable for such
liabilities);

 4
 

(e)             all
its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its
account by banks and other financial institutions
(whether or not representing obligations for borrowed money) to the extent that any amounts have been drawn by the
beneficiary thereunder;

(f)               any
Guaranty of such Person with respect to liabilities of a type described in any
of clauses (a) through (e) hereof.

Debt of any Person shall
include all obligations of such Person of the character described in clauses
(a) through (f) to the extent such Person remains legally liable in respect
thereof notwithstanding that any such
obligation is deemed to be extinguished under GAAP.

“Debt Prepayment Application” means, with respect to any Transfer of property,
the application by the Company or its Restricted Subsidiaries of cash in
an amount equal to the Net Proceeds Amount with respect to such Transfer to pay
Senior Funded Debt (other than Senior Funded Debt owing to the Company, any of
its Subsidiaries or any Affiliate and Senior Funded Debt in respect of any revolving credit or similar credit facility
providing the Company or any of its Restricted Subsidiaries with the
right to obtain loans or other extensions of credit from time to time, except to the extent that in connection with
such payment of Senior Funded Debt the availability of credit under such
credit facility is permanently reduced by an amount not less than the amount of such proceeds applied to the payment
of such Senior Funded Debt).

“Default” means an event or condition the
occurrence or existence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.

“Default Rate” means that rate of interest that is the greater
of (i) 2% per annum above the rate of interest stated in clause (a) of
the first paragraph of the Notes or (ii) 2% over the rate of interest publicly announced by Bank of New York
in New York, New York as its “base” or “prime” rate.

“Disposition Value” means, at any time,
with respect to any property

(a)             in
the case of property that does not constitute Subsidiary Stock, the book value thereof, and

(b)             in
the case of property that constitutes Subsidiary Stock, an amount equal to that percentage of book value of the assets of
the Subsidiary that issued such stock as is equal to the percentage that
the book value of such Subsidiary Stock represents of the book value of all of the outstanding capital stock
of such Subsidiary (assuming, in making
such calculations, that all Securities convertible into such capital stock are
so converted and giving full effect to
all transactions that would occur or be required in connection with such conversion).

“Environmental Laws” means any and all Federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating
to pollution and the protection of
the environment or the release of any materials into the environment, including
but

 5
 

 

not limited to those related to hazardous substances
or wastes, air emissions and discharges to waste or public systems.

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in
effect.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated
as a single employer together with the Company under section 414 of the Code.

“Event
of Default” is defined in Section 11.

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

“Fair
Market Value” means, at any time and with respect to any
property, the sale value of such property
that would be realized in an arm’s-length sale at such time between an informed
and willing buyer and an informed and willing seller (neither being
under a compulsion to buy or sell).

“Fixed
Charges” means, with respect to any period, the sum of (a)
Interest Charges for such period and (b)
Lease Rentals for such period.

“Fixed Charges Coverage Ratio” means, at any time, the ratio of (a) Consolidated Income
Available for Fixed Charges for the period of four consecutive fiscal quarters
ending on, or most recently ended prior to, such time to (b) Fixed Charges for
the period of four consecutive fiscal quarters ending on, or most recently
ended prior to, such time.

“Funded
Debt” means with respect to any Person, all Debt of such
Person which by its terms or by the terms of any instrument or agreement
relating thereto matures, or which is otherwise
payable or unpaid, one year or more from, or is directly or indirectly
renewable or extendible at the option
of the obligor in respect thereof to a date one year or more (including, without limitation, an option of such obligor
under a revolving credit or similar agreement obligating the lender or
lenders to extend credit over a period of one year or more) from, the date of the creation thereof, provided that Funded Debt shall include,
as at any date of determination, Current Maturities of Funded Debt.

“GAAP” means
generally accepted accounting principles as in effect from time to time in
the United States of America; provided, however, that the
requirement to prepare any financial statements
of, or determine any amount with respect to, the Company and its Restricted Subsidiaries in accordance with GAAP shall be
satisfied even if not strictly in accordance with GAAP if, but only if, the
sole deviation is the exclusion of Unrestricted Subsidiaries from the preparation of such financial statements or the
determination of such amount.

“Governmental
Authority” means

(a)
the government of

 6
 

 

(i)                            the United States of
America or any State or other political subdivision
thereof, or

(ii)                        any jurisdiction in which the Company or any
Subsidiary conducts all or any part of its business, or which asserts
jurisdiction over any properties of the Company
or any Subsidiary, or

(iii)                    any entity exercising
executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

“Guarantor”
means (a) each Major Subsidiary and (b) each other Subsidiary
party to the Subsidiary Guaranty.

“Guaranty”
means, with respect to any Person, any obligation (except the
endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing
any indebtedness, dividend or other obligation of any other Person in any
manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement,
contingent or otherwise, by such Person:

(a)             to
purchase such indebtedness or obligation or any property constituting security therefor;

(b)             to
advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any
working capital or other balance sheet condition or any income statement
condition of any other Person or otherwise to advance or make available funds
for the purchase or payment of such indebtedness or obligation;

(c)             to
lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness
or obligation of the ability of any other
Person to make payment of the indebtedness or obligation; or

(d)             otherwise
to assure the owner of such indebtedness or obligation against loss in respect thereof.

In any computation of the indebtedness or other
liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty
shall be assumed to be direct obligations of such obligor.

“Hazardous
Material” means any and all pollutants, toxic or hazardous
wastes or any other substances that might
pose a hazard to health or safety, the removal of which may be required
or the generation, manufacture, refining, production, processing, treatment,
storage, handling, transportation, transfer, use, disposal, release, discharge,
spillage, seepage, or filtration of which is
or shall be restricted, prohibited or penalized by any applicable law
(including, without limitation, asbestos, urea formaldehyde foam
insulation and polycholorinated biphenyls).

“Holder”
means, with respect to any Note, the Person in whose name such
Note is registered in the register
maintained by the Company pursuant to Section 13.1.

 7
 

“Indebtedness”
with respect to any Person means, at any time, without
duplication,

(a)             its liabilities for borrowed money and
its redemption obligations in respect of mandatorily redeemable Preferred
Stock;

(b)             its liabilities for the deferred
purchase price of property acquired by such Person (excluding accounts payable
arising in the ordinary course of business but including all liabilities
created or arising under any conditional sale or other title retention
agreement with respect to any such property);

(c)             all Capital Lease Obligations;

(d)             all liabilities for borrowed money
secured by any Lien with respect to any property owned by such Person (whether
or not it has assumed or otherwise become liable for such liabilities);

(e)             all its liabilities in respect of
letters of credit or instruments serving a similar function issued or accepted
for its account by banks and other financial institutions (whether or not representing
obligations for borrowed money);

(f)               Swaps of such Person; and

(g)            any Guaranty of such Person with
respect to liabilities of a type described in any of clauses (a) through (f)
hereof.

Indebtedness of any Person shall include all
obligations of such Person of the character described in clauses (a) through
(g) to the extent such Person remains legally liable in respect thereof
notwithstanding that any such obligation is deemed to be extinguished under
GAAP.

“Institutional
Investor” means (a) any original purchaser of a Note, (b) any
holder of a Note holding more than 5% of the aggregate principal amount of the
Notes then outstanding, and (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment
company, any insurance company, any broker or dealer, or any other similar
financial institution or entity, regardless of legal form.

“Interest
Charges” means, with respect to any period, the sum (without
duplication) of the following (in each case, eliminating all offsetting debits
and credits between the Company and its Restricted Subsidiaries and all other
items required to be eliminated in the course of the preparation of
consolidated financial statements of the Company and its Restricted Subsidiaries
in accordance with GAAP): (a) all interest in respect of Debt of the Company
and its Restricted Subsidiaries (including imputed interest on Capital Lease
Obligations) deducted in determining Consolidated Net Income for such period,
together with all interest capitalized or deferred during such period and not
deducted in determining Consolidated Net Income for such period, and (b) all
debt discount and expense amortized or required to be amortized in the
determination of Consolidated Net Income for such period, minus interest income related to executive
compensation programs to the extent it offsets interest expense related to
executive compensation programs included in paragraph (a) above.

 8
 

“Interest
Charges Coverage Ratio” means, at any time, the ratio of (a)
Consolidated Income Available for Interest Charges for the period of four
consecutive fiscal quarters ending on, or most recently ended prior to, such
time to (b) Interest Charges for the period of four consecutive fiscal quarters
ending on, or most recently ended prior to, such time.

“Investment”
means any investment, made in cash or by delivery of
property, by the Company or any of its Restricted Subsidiaries (i) in any
Person, whether by acquisition of stock, Indebtedness or other obligation or
Security, or by loan, Guaranty, advance, capital contribution or otherwise, or
(ii) in any property.

“Lease
Rentals” means, with respect to any period, the sum of the
rental and other obligations required to be paid during such period by the
Company or any Restricted Subsidiary as lessee under all leases of real or
personal property (other than Capital Leases), excluding any amount required to
be paid by the lessee (whether or not therein designated as rental or
additional rental) on account of maintenance and repairs, insurance, taxes,
assessments, water rates and similar charges, provided
that, if at the date of determination, any such rental or other
obligations (or portion thereof) are contingent or not otherwise definitely
determinable by the terms of the related lease, the amount of such obligations
(or such portion thereof) (i)
shall be assumed to be equal to the amount of such obligations for the period
of 12 consecutive calendar months immediately preceding the date of
determination or (ii)if the related lease was not in effect
during such preceding 12-month period, shall be the amount estimated by a
Senior Financial Officer of the Company on a reasonable basis and in good
faith.

“Lien” means,
with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor,
lender or other secured party to or of such Person under any conditional sale
or other title retention agreement or Capital Lease, upon or with respect to any
property or asset of such Person (including in the case of stock, stockholder
agreements, voting trust agreements and all similar arrangements).

“Make-Whole
Amount” is defined in Section 8.6.

“Major
Subsidiary” means (a) Consoer Townsend Envirodyne Engineers,
Inc.; Daniel, Mann, Johnson, & Mendenhall; Frederic R. Harris, Inc.; Holmes
& Narver, Inc.; The McClier Corporation; MC Acquisition Corporation; and
TCB Inc.; and (b) any other direct or indirect domestic Subsidiary of the
Company that, together with any other domestic Subsidiaries owned by such
Subsidiary, (i) has assets with a book value that total ten percent (10%) or
more of Consolidated Assets or (ii) has “Consolidated Income Available for
Interest Charges” (determined by applying the definition of Consolidated Income
Available for Interest Charges (and all definitions contained within such
definition) solely to such Subsidiary) in any fiscal year of the Company that
is ten percent (10%) or more of Consolidated Income Available for Interest
Charges in such fiscal year.

“Material”
means material in relation to the business, operations,
affairs, financial condition, assets, properties, or prospects of the Company
and its Restricted Subsidiaries taken as a whole.

 9
 

“Material
Adverse Effect” means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets or properties of the
Company and its Restricted Subsidiaries taken as a whole, or (b) the ability of
the Company to perform its obligations under this Agreement and the Notes, or
(c) the validity or enforceability of this Agreement or the Notes.

“Memorandum”
is defined in Section 5.3.

“Multiemployer
Plan” means any Plan that is a “multiemployer plan” (as such
term is defined in section 4001(a)(3) of ERISA).

“Net
Proceeds Amount” “ means, with respect to any Transfer of any
property by any Person, an amount equal to the difference
of

(a)             the aggregate amount of the
consideration (valued at the Fair Market Value of such consideration at the
time of the consummation of such Transfer) received by such Person in respect
of such Transfer, minus

(b)             all ordinary and reasonable
out-of-pocket costs and expenses actually incurred by such Person in connection
with such Transfer and any taxes paid or payable as a result of such Transfer.

“Notes”
is defined in Section 1.

“Officer’s
Certificate” means a certificate of a Senior Financial
Officer or of any other officer of the Company whose responsibilities extend to
the subject matter of such certificate.

“Other
Agreements” is defined in Section 2.

“Other
Purchasers” is defined in Section 2.

“PBGC” means
the Pension Benefit Guaranty Corporation referred to and defined in ERISA or
any successor thereto.

“Person”
means an individual, partnership, corporation, limited
liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

“Plan” means
an “employee benefit plan” (as defined in section 3(3) of ERISA) that is or,
within the preceding five years, has been established or maintained, or to
which contributions are or, within the preceding five years, have been made or
required to be made, by the Company or any ERISA Affiliate or with respect to
which the Company or any ERISA Affiliate may have any liability.

“Preferred
Stock” means any class of capital stock of a corporation that
is preferred over any other class of capital stock of such corporation as to
the payment of dividends or the payment of any amount upon liquidation or
dissolution of such corporation.

 10
 

“Priority
Debt” means (without duplication) the sum of (i) Debt of
Restricted Subsidiaries including Debt ofthe
Company guaranteed by any Restricted Subsidiary, but excluding (A) Debt
described in clause (a) or(b) of Section 10.7 and (B) Debt evidenced by the
Subsidiary Guaranty, and (ii) Debt of the Company and its Restricted
Subsidiaries secured by a Lien described in clause (k) ofSection 10.3.

“property”
or “properties” means,
unless otherwise specifically limited, real or personal property of any kind,
tangible or intangible, choate or inchoate.

“Property
Reinvestment Application” means, with respect to any Transfer
of property, the application of an amount equal to the Net Proceeds Amount with
respect to such Transfer to the acquisition by the Company or any Restricted
Subsidiary of operating assets of the Company or any Restricted Subsidiary to
be used in the ordinary course of the principal business of such Person.

“QPAM
Exemption” means Prohibited Transaction Class Exemption 84-14
issued by the United States Department of Labor.

“Required
Holders” means, at any time, the holders of at least 51% in
principal amount of the Notes at the time outstanding (exclusive of Notes then
owned by the Company or any of its Affiliates (other than U.S. Trust Company of
California N.A. (other than in its capacity as trustee of a Plan))).

“Responsible
Officer” means any Senior Financial Officer and any other
officer of the Company with responsibility for the administration of the
relevant portion of this Agreement.

“Restricted
Investments” means all Investments except the following:

(a)                     property to be used in the
ordinary course of business of the Company and its Restricted Subsidiaries;

(b)                     current assets arising from the
sale of goods and services in the ordinary course of business of the Company
and its Restricted Subsidiaries;

(c)                     Investments in one or more
Restricted Subsidiaries or any Person that concurrently with such Investment
becomes a Restricted Subsidiary and Investments in joint ventures entered into
in connection with contracts entered into in the ordinary course of business by
the Company;

(d)                     Investments existing on the date
of the Closing and disclosed in Schedule 5.15;

(e)                     Investments in United States
Governmental Securities, provided that such obligations mature within 365 days
from the date of acquisition thereof;

(f)                       Investments in tax-exempt
obligations of any state of the United States of America, or any municipality
of any such state, in each case rated “AA” or

 11
 

 

better by S&P, “Aa2” or better by Moody’s or an
equivalent rating by any other credit rating agency of recognized national
standing, provided that such obligations mature within 365 days from the date
of acquisition thereof;

(g)                    Investments in certificates of
deposit or banker’s acceptances issued by an Acceptable Bank, provided that
such obligations mature within 365 days from the date of acquisition thereof;

(h)                    Investments in commercial paper
given the highest or the next to highest rating by a credit rating agency of
recognized national standing and maturing not more than 270 days from the date
of creation thereof; and

(i)                       Investments in money market
instrument programs of investment companies regulated under the Investment
Company of 1940, as amended, which are classified as current assets in
accordance with GAAP.

As of any date of
determination, each Restricted Investment shall be valued at the greater of:

(x)                     the amount at which such
Restricted Investment is shown on the books of the Company or any of its
Restricted Subsidiaries (or zero if such Restricted Investment is not shown on
any such books); and

(y)                     either

(i)                      in the case of any Guaranty of
the obligation of any Person, the amount which the Company or any of its
Restricted Subsidiaries has paid on account of such obligation less any
recoupment by the Company or such Restricted Subsidiary of any such payments,
or

(ii)                  in the case of any other Restricted
Investment, the excess of (x) the greater of (A) the amount originally entered
on the books of the Company or any of its Restricted Subsidiaries with respect
thereto and (B) the cost thereof to the Company or its Restricted Subsidiary
over (y) any return of capital (after income taxes applicable thereto) upon
such Restricted Investment through the sale or other liquidation thereof or
part thereof or otherwise.

As used in this
definition of “Restricted Investments”:

“Acceptable Bank”means any bank or trust company (i) which is organized
under the laws of the United States of America or any State thereof, (ii) which
has capital, surplus and undivided profits aggregating at least $750,000,000,
and (iii) whose long-term unsecured debt obligations (or the long-term
unsecured debt obligations of the bank holding company owning all of the
capital stock of such bank or trust company) shall have been given a

 12
 

 

rating of “A” or better by S&P, “A2” or better by
Moody’s or an equivalent rating by any other credit rating agency of recognized
national standing.

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

“S&P”means Standard & Poor’s Ratings Group, a division of McGraw
Hill, Inc.

“Restricted
Subsidiary” means (i) Staff Source Inc. so long as the
Company and/or one or more Wholly-Owned Restricted Subsidiaries own at least
50% of its equity and it is treated as a subsidiary of the Company in
accordance with GAAP, and (ii) any Subsidiary (a) of which at least 80% of the
voting securities are owned by the Company and/or one or more Wholly-Owned
Restricted Subsidiaries, and (b) which the Company has designated a Restricted
Subsidiary by notice in writing given to the holders of the Notes, provided
that the designation of a Subsidiary as “unrestricted” or “restricted” shall
not be changed more than twice during the time the Notes are outstanding.

“Sale
and Leaseback Transaction” means a transaction or series of
transactions pursuant to which the Company or any Restricted Subsidiary shall
sell or transfer to any Person (other than the Company or a Restricted
Subsidiary) any property, whether now owned or hereafter acquired, and, within
180 days following such sale or transfer, as part of the same transaction or
series of transactions, the Company or any Subsidiary shall rent or lease as
lessee (other than pursuant to a Capital Lease) or similarly acquire the right
to possession or use of, such property or one or more properties which it
intends to use for the same purpose or purposes as such property.

“Securities
Act” means the Securities Act of 1933, as amended from time
to time.

“Security”
has the meaning set forth in section 2(1) of the Securities
Act.

“Senior
Financial Officer” means the chief financial officer,
principal accounting officer, treasurer or comptroller of the Company.

“Senior
Funded Debt” means (a) any Funded Debt of the Company (other
than Subordinated Debt) and (b) any Funded Debt of any Restricted Subsidiary.

“Subordinated
Debt” means any Debt that is in any manner subordinated in
right of payment or security in any respect to Debt evidenced by the Notes.

“Subsidiary”
means, as to any Person, any corporation, association or
other business entity in which such Person or one or more of its Subsidiaries
or such Person and one or more of its Subsidiaries owns sufficient equity or
voting interests to enable it or them (as a group) ordinarily, in the absence
of contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a 50% interest in the profits or capital thereof is owned by such Person
or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries
(unless such partnership can and does ordinarily take major business actions
without the prior approval of such Person or one or

 13
 

more of its
Subsidiaries). Unless the context otherwise clearly requires, any reference to
a “Subsidiary” is a reference to a Subsidiary of the Company.

“Subsidiary
Guaranty” is defined in Section 4.10.

“Subsidiary Stock” means, with respect to any Person, the stock (or any options or
warrants to purchase stock or other Securities exchangeable for or convertible
into stock) of any Subsidiary of such Person.

“Swaps” means, with respect to any Person, payment obligations with respect to
interest rate swaps, currency swaps and similar obligations obligating such
Person to make payments, whether periodically or upon the happening of a
contingency. For the purposes of this Agreement, the amount of the obligation
under any Swap shall be the amount determined in respect thereof as of the end
of the then most recently ended fiscal quarter of such Person, based on the
assumption that such Swap had terminated at the end of such fiscal quarter, and
in making such determination, if any agreement relating to such Swap provides
for the netting of amounts payable by and to such Person thereunder or if any
such agreement provides for the simultaneous payment of amounts by and to such
Person, then in each such case, the amount of such obligation shall be the net
amount so determined.

“Total Capitalization” means the sum of (a) Consolidated Debt and
(b) Consolidated Net Worth.

“Transfer” means, with respect to any Person, any transaction in which such
Person sells, conveys, transfers or leases (as lessor) any of its property,
including, without limitation, Subsidiary Stock.

“Unrestricted Subsidiary” means any Subsidiary other than a Restricted
Subsidiary.

“Wholly-Owned Restricted Subsidiary” means, at any time, any Restricted
Subsidiary one hundred percent (100%) of all of the equity interests (except
directors’ qualifying shares) and voting interests of which are owned by any
one or more of the Company and the Company’s other Wholly-Owned Restricted
Subsidiaries at such time.

 14

Schedule 5.15(a)

Existing Indebtedness as
of March 31, 1998

(unless otherwise noted)

A. Existing Obligations for Borrowed Money

1.                          Term
and Revolving Loans under the First Amended and Restated Credit Agreement dated
as of September 29, 1995 (as amended from time to time) among AECOM Technology
Corporation, the Other Financial Institutions Party Hereto and Bank of America
NT & SA, as Agent.

	
  Balance Outstanding 3/31/98

  	
   

  	
  $

  	
  58,200,000

  	
   

  
	
  Balance Outstanding 5/29/98

  	
   

  	
  $

  	
  69,200,000

  	
   

  

 

2.                          Various
Unsecured Notes Payable to Terminated Employees of AECOM Technology Corporation
for the repurchase of AECOM stock, initially payable over a five-year period,
requiring annual (in December of each year) principal and interest (at a rate
of 1 percent over prime) payments.

	
  Balance Outstanding 3/31/98

  	
   

  	
  $

  	
  878,000

  	
   

  

 

3.                          EEI
Acquisition Notes (unsecured) remaining principal $2,062,400 due June 30, 1998,
interest at 1 percent over the Citibank “Prime” rate, payable quarterly on the last
day of the calendar quarter.

4.                          Dutch
Guilder 1,000,000 (approximately $500,000 at May 30, 1998) credit facility at
ABN-AMRO Bank N.V. in Holland for overdrafts and letters of credit.

	
  

  	
   

  	
  Utilization at 5/30/98

  	
   

  
	
   

  	
   

  	
  Guilders

  	
   

  	
  Approx. US$

  	
   

  
	
  L/C’s

  	
   

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
  Overdrafts

  	
   

  	
  1,000,000

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
  1,000,000

  	
   

  	
  $

  	
  500,000

  	
   

  

 

 1

Schedule 5.15(b)

Existing Liens

As noted on Schedule 5.15(a), item “D”, if AECOM Technology Corporation
(“AECOM”) (through its wholly owned subsidiary, AECOM Management Services
Corp.) acquires the remaining 75 percent of the KHN Joint Venture which owns the
Holmes & Narver Building, a lien, which currently exists on the building,
will exist on a property then 100 percent owned by AECOM.

The Company and its
Subsidiaries have pledged substantially all of their assets pursuant to the
First Amended and Restated Credit Agreement dated as of September 29, 1995
among AECOM Technology Corporation, the other financial institutions party
thereto and Bank of America National Trust and Savings Association as Agent
(the “Existing Credit Agreement”). Concurrently with the Closing contemplated
hereby, the Company is entering into a new Bank Credit Agreement pursuant to
which the financial institutions which are a party to the Existing Credit
Agreement have agreed to terminate their security interests in the assets of
the Company and its Subsidiaries.

 

B.             Existing
Obligations Evidenced by Bonds, Notes, Debentures or Other Similar Instructions

None

C.             Existing
Obligations to Pay the Deferred Purchase Price of Property or Services

None

D.            Existing
Capitalized Lease Obligations

AECOM Technology Corporation (“AECOM”) has capitalized lease
obligations totaling $3.0 million (at March 31, 1998) relating to the Holmes
& Narver Building. AECOM has an option from Ashland Inc. to acquire (for
$1) the remaining 75 percent of the KHN Joint Venture (which it does not
currently own) which owns the Building. The lease expires in 2002. As of March
31, 1998, the net capitalized assets on AECOM’s books is $5.0 million
(including the write up to market at the April 1990 Separation from Ashland and
the purchase of the ground lease in December 1997 by AECOM Management Services
Corp., a wholly owned subsidiary of AECOM). The KHN Joint Venture has an
indebtedness of $3.3 million secured by the Building.

E.              Existing
Obligations or Liabilities of Others Secured by Liens on the Property of AECOM
or its Subsidiaries

None

F.              Existing
Obligations in Respect of any Letters of Credit or Bankers’ acceptances

	
  AECOM Technology Corporation

  	
   

  	
  $

  	
  934,000

  	
   

  	
  (financial)

  	
   

  
	
  (Letter of Credit)

  	
   

  	
  3,330,000

  	
   

  	
  (other)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Daniel, Mann, Johnson, & Mendenhall

  	
   

  	
  1,241,000

  	
   

  	
  (financial)

  	
   

  
	
  (Letters of Credit)

  	
   

  	
  6,670,000

  	
   

  	
  (other)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frederic R. Harris, Inc.

  	
   

  	
  452,000

  	
   

  	
  (financial)

  	
   

  
	
  (Letters of Credit)

  	
   

  	
  3,118,000

  	
   

  	
  (other)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other Operating Companies

  	
   

  	
  193,006

  	
   

  	
  (financial)

  	
   

  
	
  (Letters of Credit)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  15,938,000

  	
   

  	
   

  	
   

  

 

The above Letters of Credit were issued by Bank of
America (under terms of the existing Credit Agreement) or by Gulf International
Bank, NY, NY.

 2
 

G.                                     Existing
Contingent Obligations

1.                          Credit
facilities for unconsolidated subsidiaries guaranteed by AECOM or its
operating companies.

None

2.                          Open
Foreign Exchange Contracts

None

H.            Existing SWAPS

	
  

  	
   

  	
  No. 1*

  	
   

  	
  No. 2*

  	
   

  	
  No. 3

  	
   

  
	
  Notional Amount

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  Effective Date

  	
   

  	
  9/8/1995

  	
   

  	
  9/8/1995

  	
   

  	
  9/26/1997

  	
   

  
	
  Termination Date

  	
   

  	
  9/8/2000

  	
   

  	
  9/8/2000

  	
   

  	
  9/24/1999

  	
   

  
	
  Fixed Rate Payer

  	
   

  	
  AECOM

  	
   

  	
  AECOM

  	
   

  	
  AECOM

  	
   

  
	
  Fixed Rate

  	
   

  	
  6.095

  	
  %

  	
  6.0925

  	
  %

  	
  6.10

  	
  %

  
	
  Payment Dates

  	
   

  	
   

  	
  (a)

  	
   

  	
  (a)

  	
   

  	
  (b)

  
	
  Floating Rate Payer

  	
   

  	
  Union Bank

  of California

  	
   

  	
  ABN-AMRO

  Bank

  	
   

  	
  ABN-AMRO

  Bank

  	
   

  
	
  Floating Rate
  Option

  	
   

  	
  USD - LIBOR

  	
   

  	
  USD - LIBOR

  	
   

  	
  USD - LIBOR

  	
   

  
											

 

(a) 8th day of September, December, March and June.

(b) Quarterly on or about the 25th day of December, March, June and September.

* It is expected that these SWAPS will be terminated at the Closing.

I.                 Existing
Guaranties

The “Joint and Several Continuing Guaranty of
Subsidiaries” dated March 2, 1994 or thereafter, issued in conjunction with the
First Amended and Restated Credit Agreement shown under “Existing Obligations
for Borrowed Money” above (Section A.1.).

 3

Schedule 5.15(c)

Investments (as of
5/29/98)

Partnerships and/or Joint
Ventures of

	
  Subsidiary: Consoer. Townsend & Associates.
  Inc.

  
	
   

  	
   

  	
  Group One Design

  
	
   

  	
   

  	
   

  
	
  Subsidiary: Frederic R. Harris. Inc.

  
	
  1.

  	
   

  	
  Pier 400 Design Consultants

  
	
  2.

  	
   

  	
  DMJM/FRH

  
	
  3.

  	
   

  	
  Maguire/Harris

  
	
  4.

  	
   

  	
  SPA/Harris, AJV (new 11/01/97)

  
	
  5.

  	
   

  	
  Stone & Webster/Harris

  
	
  6.

  	
   

  	
  PCS, GPI, FR Harris

  
	
  7.

  	
   

  	
  Boclouva/Harris, JV (new 12/23/97)

  
	
   

  	
   

  	
   

  
	
  Subsidiary: 
  Holmes & Narver. Inc.

  
	
  1.

  	
   

  	
  Metcalf & Eddy/Holmes & Narver (aka
  TEMS)

  
	
  2.

  	
   

  	
  SHW

  
	
  3.

  	
   

  	
  Interstate/H&N J.V.

  
	
  4.

  	
   

  	
  H&N/Arcost/FEJ J.V

  
	
  5.

  	
   

  	
  Rock island Integrated Services (new 10/97)

  
	
  6.

  	
   

  	
  H&N/DEL JEN JV

  
	
  7.

  	
   

  	
  AGS/H&N JV

  
	
  8.

  	
   

  	
  M&E/H&N JV

  
	
   

  	
   

  	
   

  
	
  Subsidiary: Holmes & Narver Services. Inc.

  
	
  1.

  	
   

  	
  Dillingham/H&N

  
	
  2.

  	
   

  	
  Kalama Services

  
	
  3.

  	
   

  	
  Antarctic Support Services

  
	
   

  	
   

  	
   

  
	
  Subsidiary: TCB Inc.

  
	
  1.

  	
   

  	
  TC&B/GB Joint Venture

  
	
  2.

  	
   

  	
  GBA/SURVCON Joint Venture

  
	
  3.

  	
   

  	
  J. Simmons Group, Inc. (15% interest in TX
  Corp.)

  
	
  4.

  	
   

  	
  Katy West Venture

  
	
  5.

  	
   

  	
  Spring West 23 Venture

  
	
  6.

  	
   

  	
  Spring/2920 Venture

  
	
  7.

  	
   

  	
  Spring/2920 Venture II

  
							

 

 1
 

Schedule 5.15(c)

Investments (as of
5/29/98)

Partnerships and/or Joint
Ventures of

Subsidiary; Daniel, Mann,
Johnson, & Mendenhall

	
  1.

  	
   

  	
  Turner Collie & Braden Inc./Daniel, Mann,
  Johnson, & Mendenhall, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  KAISER ENGINEERS, INC./DMJM A Joint Venture

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  PARSONS/DMJM, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  AL-HEJAILAN A/E CONSULTANTS

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  AL-HEJAILAN/TMSI

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  DMJM/AL-HEJAILAN

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Metro Rail Transit Consultant, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  DMJM/B&V, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  HOUSTON TRANSIT CONSULTANTS

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Warneoke/DMJM

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  CONSECO/DMJM, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  PRESEARCH/DMJM

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  RTKL/DMJM, a JOINT VENTURE

  
	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  GRW/DMJM, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  DMJM/KE

  
	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Delon Hampton & Associates/Daniel, Mann, Johnson
  & Mendenhall, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  HOK/RTKL/DMJM, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  DMJM ARCHITECTS & ENGINEERS

  
	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Transit Consultants of Southern California

  
	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  PARSONS MANAGEMENT CONSULTANTS

  
	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  DMJM/SINOTECH

  
	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  JMM/DMJM

  
	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  SHV/DMJM

  
	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  STA/DMJM

  
	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  TRANSCAL II

  
	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  NF&A/DMJM

  
	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  DMJM-HTB, A JOINT VENTURE

  
	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  DMJM/3DI II

  
	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  DMJM/M&N, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
  DMJM/FRH, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  CSG/DMJM, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
  DMJM/CSG, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  Parsons Brinckerhoff/DMJM (EMC)

  
	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  Los Angeles Community Partnership (Rebuild L.A.)

  
	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  SMP/DMJM

  
	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
  Environmental Transportation Consultants

  
	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  DMJM/WBCM a Joint Venture

  
	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
  Crandell/DMJM, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
  DMJM/Mesch Engineering, P.C.

  
	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
  Rafael Vinoly Architects/DMJM Architects &
  Engineers

  
	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
  Canadian Transit Consultants (Consortium)

  

 

 2
 

Schedule 5.15(c)

Investments (as of
5/29/98)

Partnerships and/or Joint
Ventures of

Subsidiary; Daniel, Mann,
Johnson, & Mendenhall

	
  42.

  	
   

  	
  DMJM/Heery International, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
  DMJM/LUSTER/AGS, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  44.

  	
   

  	
  DMJM/TGI, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  45.

  	
   

  	
  CH2M/DMJM, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  46.

  	
   

  	
  BRW/DMJM, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  47.

  	
   

  	
  Gerwick/Sverdrup/DMJM

  
	
   

  	
   

  	
   

  
	
  48.

  	
   

  	
  DMJM Sinotech II

  
	
   

  	
   

  	
   

  
	
  49.

  	
   

  	
  Alameda Corridor Engineering Team

  
	
   

  	
   

  	
   

  
	
  50.

  	
   

  	
  DMJM-Cornell, A Joint Venture

  
	
   

  	
   

  	
   

  
	
  51.

  	
   

  	
  DMJM Associates

  
	
   

  	
   

  	
   

  
	
  52.

  	
   

  	
  Emergency Response Management Consultants

  
	
   

  	
   

  	
   

  
	
  53.

  	
   

  	
  Davis and Schuld

  
	
   

  	
   

  	
   

  
	
  54.

  	
   

  	
  DMJM/ICF Kaiser (new 2/10/98)

  
	
   

  	
   

  	
   

  
	
  55.

  	
   

  	
  DMJM/Kalser/PBQD

  
	
   

  	
   

  	
   

  
	
  56.

  	
   

  	
  Transport 21

  
	
   

  	
   

  	
   

  
	
  57.

  	
   

  	
  DMJM/ICF Kaiser, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  58.

  	
   

  	
  DMJM/Gannett, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  59.

  	
   

  	
  Grand Central Express Group, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  60.

  	
   

  	
  DMJM/HLA, a Joint Venture

  
	
   

  	
   

  	
   

  
	
  61.

  	
   

  	
  West/East Rail Joint Venture

  
	
   

  	
   

  	
   

  
	
  62.

  	
   

  	
  M&N/DMJM

  
	
   

  	
   

  	
   

  
	
  63.

  	
   

  	
  DMJM/Thomson

  
	
   

  	
   

  	
   

  
	
  64.

  	
   

  	
  JCW&A/DMJM

  

 

 3
 

Schedule 5.15(c)

Investments (as of
5/29/98)

Other Investments

	
  Company Name

  	
   

  	
  Owner

  	
   

  	
  Ownership

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DIT-Harris,
  S.A.

  	
   

  	
  Frederic R. Harris,
  Inc.

  	
   

  	
  2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DMJM
  Timmahaz Sdn. Bhd.

  	
   

  	
  DMJM Far East Limited

  	
   

  	
  30

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Los
  Angeles Community Partnership, Inc.

  	
   

  	
  Daniel, Mann, Johnson,
  & Mendenhall

  	
   

  	
  20

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Resource
  Sciences Arabia Ltd.

  	
   

  	
  The Resource Sciences
  Corporation

  	
   

  	
  49

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Resources
  Engineering Consultants Company Ltd.

  	
   

  	
  Frederic R. Harris,
  Inc.

  	
   

  	
  42

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TMSI
  Arabia, Ltd.

  	
   

  	
  Technical Management
  Services, Inc.

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Williams
  Brothers Iran Consulting Engineers

  	
   

  	
  The Resource Sciences
  Corporation

  	
   

  	
  49

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chow-Harris
  Consultants, Ltd., Hong Kong

  	
   

  	
  Frederic R. Harris,
  Inc.

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AAEC Inc.

  	
   

  	
  TCB Inc.

  	
   

  	
  45

  	
  %

  

 

 4Exhibit 10.4

December 30, 2003

AECOM
Technology Corporation

3250
Wilshire Boulevard

Los Angeles, California 90010

Re:    Amendment to Note Purchase Agreements dated
as of June 9, 1998

Ladies and Gentlemen:

Reference
is made to (1) the Note Purchase Agreement, dated as of June 9, 1998, by and between AECOM Technology Corporation, a Delaware
corporation (the “Company”), on the one hand, and The Prudential Insurance Company of America, Pruco Life
Insurance Company, and U.S. Private Placement Fund, on the other hand,
and (2) the Note Purchase Agreement, dated as
of June 9, 1998, by and between the Company and The Northwestern Mutual Life
Insurance Company (as amended, and
as further amended from time to time, each a “Note
Agreement” and collectively,
the “Note Agreements”). The
purchasers of Notes under the Note Agreements, together with their
respective successors and transferees, are collectively referred to herein as
the “Purchasers”. Capitalized
terms used and not otherwise defined herein shall have the meanings provided in
the Note Agreements (after giving effect to the amendments effected hereby).

Pursuant to the request of the Company and the provisions
of Section 17.1 of the Note Agreements, and subject to the terms and
conditions of this letter agreement, the Purchasers hereby agree with the
Company that each of the Note Agreements shall be amended as follows:

The definitions for the
following terms contained in Schedule B are amended and restated, as follows:

““Bank Credit Agreement” means the Credit Agreement, dated as of December
30, 2003, among the Company, each of the parties identified as “Obligor Subsidiaries” on the signature pages of
the Subsidiary Guaranty, the several financial institutions from time to time
parties thereto, Harris Trust and Savings
Bank, as an issuing lender thereunder, and Union Bank of California, N.A., as administrative agent, and as an issuing
lender and swing line lender thereunder, as thereafter amended, restated,
refinanced, increased, reduced, or otherwise
modified from time to time and any successor Bank Credit Agreement.

“Major
Subsidiary” means: (a) Consoer, Townsend Envirodyne
Engineers, Inc. (formerly EEI Acquisition Corporation), DMJMH+N, Inc. (formerly
Daniel, Mann, Johnson & Mendenhall),
DMJM + Harris, Inc. (formerly Frederic R. Harris, Inc.), The McClier Corporation, Metcalf & Eddy, Inc., AECOM
Global, Inc., and Turner, Collie
& Braden, Inc.; and (b) any other direct or indirect domestic Subsidiary of the Company that, together
with any other direct or indirect domestic
Subsidiaries owned by such Subsidiary, (i) has assets with a book value that total 10% or more of Consolidated
Assets or (ii) has “Consolidated
Income Available for Interest Charges” (determined by applying the definition
of Consolidated Income Available for Interest Charges (and all definitions utilized by such definition) solely to
such Subsidiary) in any fiscal year of the Company that is 10% or more
of Consolidated Income Available for Interest Charges in such fiscal year.

“Subsidiary
Guaranty” means the Master Guaranty and Intercreditor Agreement, dated as of December 30, 2003, among
the Company, the Guarantors, the Obligor Subsidiaries, The Prudential
Insurance Company of America, Pruco Life Insurance Company, U.S. Private
Placement Fund, Hartford Life Insurance
Company, ING Life Insurance and Annuity Company, The Northwestern Mutual
Life Insurance Company, Union Bank of California, N.A., as administrative agent under the Bank Credit Agreement, the financial institutions
party to the Bank Credit Agreement, Union Bank of California, N.A., as creditor agent, and each Person not named above
which issues or purchases Notes from time to time, as such agreement is
amended, restated or otherwise modified from time to time and any successor
Master Guaranty and Intercreditor Agreement.
Notwithstanding that this term is “Subsidiary Guaranty”, it is understood that the Company is also a “Guarantor”
under the Subsidiary Guaranty.”

The
amendments set forth in this letter agreement shall be limited precisely as written
and shall not be deemed to be (a) an
amendment, consent or waiver of any other terms or conditions of the Note Agreements or any other
document related to the Note Agreements or (b) a consent to any future amendment, consent or waiver. Except as expressly
set forth in this letter, the Note
Agreements and the documents related to the Note Agreements shall continue in full
force and effect.

The
Company hereby represents and warrants as follows (both before and after giving
effect to the effectiveness of this letter
agreement): (i) no Default or Event of Default has occurred and is
continuing (or would result from the transactions contemplated by this letter
agreement); (ii) the Company’s execution, delivery and performance of the Note
Agreements, as modified by this letter agreement, and the Subsidiary Guaranty
have been duly authorized by all necessary
corporate and other action and do not and will not require any registration
with, consent or approval of, or
notice to or action by, any Person (including any governmental authority) in order to be effective and
enforceable; (iii) each of the Note Agreements, as modified by this
letter agreement, and the Subsidiary Guaranty constitutes the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms
except as the enforceability thereof may be limited by bankruptcy, insolvency
or other similar laws of general application relating to or affecting
the enforcement of creditors’ rights or by general principles of equity; and
(iv) each of the representations and warranties set forth in Section 5 of the Note Agreements is true, correct
and complete as of the date hereof (except to the extent such representations and warranties expressly relate to
another date, in which case such representations and warranties are
true, correct and complete as of such other date).

This
letter agreement shall become effective on the date on which: (i) the
Purchasers shall have received a fully executed counterpart of this letter agreement
executed by the Company and each Guarantor; (ii) the Purchasers shall have
received a fully executed copy of each of the Bank Credit Agreement and the
Subsidiary Guaranty; and (iii) the Company shall have paid Bingham McCutchen
LLP its accrued and unpaid legal fees and expenses.

This
document may be executed in multiple counterparts, which together shall
constitute a single document.

[Signature pages
follow.]

 2

If you are in agreement
with the foregoing, please sign the enclosed counterpart of this letter in the
space indicated below and return it to Prudential at Four Embarcadero Center,
Suite 2700, San Francisco, California 94111 and to The Northwestern Mutual Life
Insurance Company at 720 East Wisconsin
Avenue, Milwaukee, WI 53202 whereupon, subject to the conditions expressed
herein, it shall become a binding agreement between the Company, on the one
hand, and the Purchasers, on the other hand.

	
  

  	
  Sincerely,

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  PURCHASERS

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Illegible

  	
   

  	 

	
   

  	
  Its:

  	
  Vice President

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  

  	
  PRUCO LIFE INSURANCE COMPANY

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Illegible

  	
   

  	 

	
   

  	
  Its:

  	
  Vice President

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  

  	
  U.S. PRIVATE PLACEMENT FUND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential
  Private Placement

  Investors, L.P., Investment Advisor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential Private Placement
Investors, Inc., its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Illegible

  	
   

  
	
   

  	
  Its:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Illegible

  	
   

  
	
   

  	
  Its:

  	
  Its Authorized
  Representative

  	
   

  
							

 

 

Accepted and agreed to as of the date first appearing above:

	
  AECOM TECHNOLOGY CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Eric Chen

  	
   

  
	
  Its:

  	
  Senior Vice President

  	
   

  
				

Each
undersigned Guarantor (i) acknowledges that it has read the Amendment to Note
Purchase Agreements dated as of June 9, 1998, dated as of December 30, 2003
(the “Amendment”), made by AECOM TECHNOLOGY CORPORATION, a Delaware
corporation (the “Company”), and
the Purchasers (as defined in the Amendment), (ii) consents to the amendment
and modification made by the Amendment, and (iii) reaffirms its obligations
under the Subsidiary Guaranty (as defined in the Amendment), which it
acknowledges shall remain in full force and effect with respect to such Note
Purchase Agreements (as amended by the Amendment) and all the other obligations
described in the Subsidiary Guaranty.

 

	
  

  	
  CONSOER, TOWNSEND ENVIRODYNE 

  ENGINEERS, INC. (formerly EEI ACQUISITION

  CORPORATION)

  
	
   

  	
   

  
	
   

  	
  DMJMH+N, INC. (formerly DANIEL, MANN,

  JOHNSON & MENDENHALL)

  
	
   

  	
   

  
	
   

  	
  DMJM + HARRIS, INC. (formerly FREDERIC

  R. HARRIS, INC.)

  
	
   

  	
   

  
	
   

  	
  THE MCCLIER CORPORATION

  
	
   

  	
   

  
	
   

  	
  METCALF & EDDY, INC.

  
	
   

  	
   

  
	
   

  	
  AECOM GLOBAL, INC.

  
	
   

  	
   

  
	
   

  	
  TURNER, COLLIE & BRADEN, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric Chen

  	
   

  
	
   

  	
  Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]