Document:

<PAGE>
================================================================================

                              BRIDGE LOAN AGREEMENT

                                   dated as of

                                  March 8, 2002

                                      among

                         L-3 COMMUNICATIONS CORPORATION,
                                  as Borrower,

       the Guarantors listed on the signature pages hereto, as Guarantors,

                       L-3 COMMUNICATIONS HOLDINGS, INC.,

                            the LENDERS named herein,

   LEHMAN BROTHERS INC. and BANC OF AMERICA BRIDGE LLC, as Joint Book-Running
                       Managers and Joint Lead Arrangers,

             CREDIT SUISSE FIRST BOSTON CORPORATION, as an Arranger

                                       and

              LEHMAN COMMERCIAL PAPER INC., as Administrative Agent

                         ------------------------------

================================================================================

<PAGE>
                                TABLE OF CONTENTS

<TABLE>
                                                                                                               PAGE

<CAPTION>
<S>                 <C>                                                                                          <C>
ARTICLE I DEFINITIONS.............................................................................................1

   SECTION 1.1.     DEFINED TERMS.................................................................................1
   SECTION 1.2.     INTERPRETATION...............................................................................20

ARTICLE II THE BRIDGE FACILITY...................................................................................20

   SECTION 2.1.     BRIDGE LOANS COMMITMENTS; PROCEDURE FOR BORROWING............................................20
   SECTION 2.2.     MANDATORY EXCHANGE OF BRIDGE LOANS FOR EXCHANGE NOTES........................................21
   SECTION 2.3.     INTEREST AND DEFAULT INTEREST................................................................22
   SECTION 2.4.     MANDATORY PREPAYMENT.........................................................................22
   SECTION 2.5.     OPTIONAL PREPAYMENT..........................................................................23
   SECTION 2.6.     BREAKAGE COSTS; INDEMNITY....................................................................23
   SECTION 2.7.     PAYMENTS.....................................................................................23
   SECTION 2.8.     TAXES........................................................................................24
   SECTION 2.9.     RIGHT OF SET OFF, SHARING OF PAYMENTS, ETC...................................................28
   SECTION 2.10.    CERTAIN FEES.................................................................................29
   SECTION 2.11.    EVIDENCE OF DEBT.............................................................................29
   SECTION 2.12.    REQUIREMENTS OF LAW..........................................................................29
   SECTION 2.13.    REPLACEMENT OF LENDERS.......................................................................31
   SECTION 2.14.    CERTAIN RULES RELATING TO THE PAYMENT OF ADDITIONAL AMOUNTS..................................31
   SECTION 2.15.    INABILITY TO DETERMINE INTEREST RATE.........................................................32
   SECTION 2.16.    ILLEGALITY...................................................................................32

ARTICLE III REPRESENTATIONS AND WARRANTIES.......................................................................32

   SECTION 3.1.     FINANCIAL CONDITION..........................................................................32
   SECTION 3.2.     NO CHANGE....................................................................................33
   SECTION 3.3.     CORPORATE EXISTENCE; COMPLIANCE WITH LAW.....................................................33
   SECTION 3.4.     CORPORATE POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS......................................33
   SECTION 3.5.     NO LEGAL BAR.................................................................................33
   SECTION 3.6.     NO MATERIAL LITIGATION.......................................................................34
   SECTION 3.7.     NO DEFAULT...................................................................................34
   SECTION 3.8.     OWNERSHIP OF PROPERTY; LIENS.................................................................34
   SECTION 3.9.     INTELLECTUAL PROPERTY........................................................................34
   SECTION 3.10.    TAXES........................................................................................34
   SECTION 3.11.    FEDERAL REGULATIONS..........................................................................34
   SECTION 3.12.    ERISA........................................................................................34
   SECTION 3.13.    INVESTMENT COMPANY ACT; OTHER REGULATIONS....................................................35
   SECTION 3.14.    FULL DISCLOSURE..............................................................................35
   SECTION 3.15.    PRIVATE OFFERING; RULE 144A MATTERS..........................................................35
   SECTION 3.16.    FINANCIAL CONDITION; SOLVENCY................................................................36
   SECTION 3.17.    SUBSIDIARIES.................................................................................36
   SECTION 3.18.    PURPOSE OF THE BRIDGE LOAN...................................................................36
   SECTION 3.19.    ENVIRONMENTAL MATTERS........................................................................36
   SECTION 3.20.    ACCURACY AND COMPLETENESS OF INFORMATION.....................................................37
   SECTION 3.21.    LABOR MATTERS................................................................................37

ARTICLE IV COVENANTS.............................................................................................38

   SECTION 4.1.     PAYMENT OF NOTES.............................................................................38
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
<S>        <C>                                                                                                  <C>
   SECTION 4.2.     REPORTS......................................................................................38
   SECTION 4.3.     COMPLIANCE CERTIFICATE.......................................................................39
   SECTION 4.4.     TAXES........................................................................................39
   SECTION 4.5.     RESTRICTED PAYMENTS..........................................................................39
   SECTION 4.6.     DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES...............................41
   SECTION 4.7.     INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK...................................42
   SECTION 4.8.     ASSET SALES..................................................................................45
   SECTION 4.9.     TRANSACTIONS WITH AFFILIATES.................................................................46
   SECTION 4.10.    LIENS........................................................................................46
   SECTION 4.11.    FUTURE SUBSIDIARY GUARANTEES.................................................................46
   SECTION 4.12.    CORPORATE EXISTENCE..........................................................................47
   SECTION 4.13.    CHANGE OF CONTROL............................................................................47
   SECTION 4.14.    NO SENIOR SUBORDINATED DEBT..................................................................48
   SECTION 4.15.    PAYMENTS FOR CONSENT.........................................................................48
   SECTION 4.16.    NO REDEMPTION OF EXISTING SENIOR SUBORDINATED INDEBTEDNESS...................................48
   SECTION 4.17.    MERGER, CONSOLIDATION, OR SALE OF ASSETS.....................................................48

ARTICLE V CONDITIONS.............................................................................................49

   SECTION 5.1.     CONDITIONS PRECEDENT.........................................................................49

ARTICLE VI TRANSFER OF THE BRIDGE LOANS..........................................................................51

   SECTION 6.1.     TRANSFER OF THE BRIDGE LOANS.................................................................51
   SECTION 6.2.     REGISTRATION OF TRANSFER OR EXCHANGE.........................................................52
   SECTION 6.3.     REGISTER.....................................................................................52

ARTICLE VII EVENTS OF DEFAULT....................................................................................53

   SECTION 7.1.     EVENTS OF DEFAULT............................................................................53
   SECTION 7.2.     ACCELERATION.................................................................................54
   SECTION 7.3.     RIGHTS AND REMEDIES CUMULATIVE...............................................................55
   SECTION 7.4.     DELAY OR OMISSION NOT WAIVER.................................................................55
   SECTION 7.5.     RIGHTS OF LENDERS TO RECEIVE PAYMENT.........................................................55
   SECTION 7.6.     WAIVER OF PAST DEFAULTS......................................................................55

ARTICLE VIII PERMANENT SECURITIES................................................................................55

   SECTION 8.1.     PERMANENT SECURITIES.........................................................................55

ARTICLE IX SUBORDINATION.........................................................................................56

   SECTION 9.1.     AGREEMENT TO SUBORDINATE.....................................................................56
   SECTION 9.2.     LIQUIDATION; DISSOLUTION; BANKRUPTCY.........................................................56
   SECTION 9.3.     DEFAULT ON DESIGNATED SENIOR DEBT............................................................56
   SECTION 9.4.     ACCELERATION OF BRIDGE LOANS.................................................................57
   SECTION 9.5.     WHEN DISTRIBUTION MUST BE PAID OVER..........................................................57
   SECTION 9.6.     NOTICE BY BORROWER...........................................................................57
   SECTION 9.7.     SUBROGATION..................................................................................58
   SECTION 9.8.     RELATIVE RIGHTS..............................................................................58
   SECTION 9.9.     SUBORDINATION MAY NOT BE IMPAIRED BY BORROWER................................................58
   SECTION 9.10.    DISTRIBUTION OR NOTICE TO REPRESENTATIVE.....................................................58
   SECTION 9.11.    RIGHTS OF ADMINISTRATIVE AGENT...............................................................59
   SECTION 9.12.    AUTHORIZATION TO EFFECT SUBORDINATION........................................................59

ARTICLE X GUARANTEE..............................................................................................59
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
<S>        <C>                                                                                                  <C>
   SECTION 10.1.    AGREEMENT TO GUARANTEE.......................................................................59
   SECTION 10.2.    EXECUTION AND DELIVERY OF GUARANTEES.........................................................59
   SECTION 10.3.    GUARANTORS MAY CONSOLIDATE, ETC. ON CERTAIN TERMS............................................60
   SECTION 10.4.    RELEASES.....................................................................................62
   SECTION 10.5.    NO RECOURSE AGAINST OTHERS...................................................................63
   SECTION 10.6.    SUBORDINATION OF SUBSIDIARY GUARANTEES; ANTI-LAYERING........................................63

ARTICLE XI THE ADMINISTRATIVE AGENT..............................................................................63

   SECTION 11.1.    APPOINTMENT..................................................................................63
   SECTION 11.2.    DELEGATION OF DUTIES.........................................................................63
   SECTION 11.3.    EXCULPATORY PROVISIONS.......................................................................63
   SECTION 11.4.    RELIANCE BY THE ADMINISTRATIVE AGENT.........................................................64
   SECTION 11.5.    NOTICE OF DEFAULT............................................................................64
   SECTION 11.6.    NON-RELIANCE ON THE ADMINISTRATIVE AGENT AND OTHER LENDERS...................................64
   SECTION 11.7.    INDEMNIFICATION..............................................................................65
   SECTION 11.8.    ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY..............................................65
   SECTION 11.9.    SUCCESSOR ADMINISTRATIVE AGENT...............................................................65
   SECTION 11.10.   LIMITATION OF DUTIES.........................................................................66

ARTICLE XII MISCELLANEOUS........................................................................................66

   SECTION 12.1.    EXPENSES; DOCUMENTARY TAXES..................................................................66
   SECTION 12.2.    NOTICES......................................................................................66
   SECTION 12.3.    CONSENT TO AMENDMENTS AND WAIVERS............................................................67
   SECTION 12.4.    PARTIES......................................................................................69
   SECTION 12.5.    NEW YORK LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL...............................69
   SECTION 12.6.    REPLACEMENT NOTES............................................................................69
   SECTION 12.7.    LIMITATION OF LIABILITY......................................................................69
   SECTION 12.8.    INDEPENDENCE OF COVENANTS....................................................................69
   SECTION 12.9.    CURRENCY INDEMNITY...........................................................................69
   SECTION 12.10.   SUCCESSORS AND ASSIGNS.......................................................................70
   SECTION 12.11.   INTEGRATION CLAUSE...........................................................................70
   SECTION 12.12.   SEVERABILITY CLAUSE..........................................................................70
   SECTION 12.13.   SURVIVAL OF CERTAIN PROVISIONS...............................................................70
</TABLE>

                                      iii
<PAGE>

                                    EXHIBITS
                                    --------

EXHIBIT A          FORM OF ASSIGNMENT AND ACCEPTANCE
EXHIBIT B          FORM OF NOTE
EXHIBIT C          FORM OF ESCROW AGREEMENT
EXHIBIT D          FORM OF EXCHANGE NOTE INDENTURE
EXHIBIT E-1        OPINION OF SPECIAL NEW YORK COUNSEL TO THE BORROWER AND THE
                   GUARANTORS (FUNDING DATE)
EXHIBIT E-2        OPINION OF GENERAL COUNSEL OF THE BORROWER AND THE GUARANTORS
                   (FUNDING DATE)
EXHIBIT F          FORM OF DEBT REGISTRATION RIGHTS AGREEMENT
EXHIBIT G          FORM OF EXEMPTION CERTIFICATE

                                    SCHEDULES
                                    ---------

SCHEDULE 3.4       CONSENTS
SCHEDULE 3.5       VIOLATIONS
SCHEDULE 3.6       LITIGATION
SCHEDULE 3.9       INTELLECTUAL PROPERTY
SCHEDULE 3.10      TAXES
SCHEDULE 3.17      SUBSIDIARIES

                                       iv
<PAGE>
          THIS BRIDGE LOAN AGREEMENT, dated as of March 8, 2002 (as amended,
restated and/or otherwise modified from time to time, this "AGREEMENT"), is by
and among:

          (a) L-3 Communications Corporation, a Delaware corporation (the
     "BORROWER"),

          (b) the Guarantors listed on the signature pages hereto, as Guarantors
     (each a "GUARANTOR" and, collectively, the "GUARANTORS"),

          (c) L-3 Communications Holdings, Inc. ("HOLDINGS"),

          (d) the Lenders (as defined in Article I),

          (e) Lehman Commercial Paper Inc., as Administrative Agent,

          (f) Lehman Brothers Inc. and Banc of America Bridge LLC, as joint
     book-running managers and joint lead arrangers, and

          (g) Credit Suisse First Boston Corporation, as an arranger.

                              W I T N E S S E T H :
                              - - - - - - - - - -

          WHEREAS, the Borrower proposes to acquire all of the assets of
Aircraft Integration Systems ("AIS"), an operating segment of Raytheon Company
(the "ACQUIRED BUSINESS");

          WHEREAS, in that connection, the Borrower has requested loans (i) to
provide a portion of funds required by the Borrower to make the Acquisition (as
defined in Article I) and (ii) to pay fees and expenses in connection with
herewith and therewith;

          WHEREAS, the Lenders are willing to make such loans available upon and
subject to the terms and conditions hereinafter set forth;

          NOW, THEREFORE, in consideration of the premises and the agreements
hereinafter set forth, the parties hereto agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

          Section 1.01 DEFINED TERMS. As used in this Agreement, the following
terms shall have the meanings specified below:

          "1997 INDENTURE" means the indenture, dated as of April 30, 1997,
among The Bank of New York, as trustee, and the Borrower, with respect to the
1997 Notes.

          "1997 NOTES" means the $225,000,000 in aggregate principal amount of
the Borrower's 10 3/8% Senior Subordinated Notes due 2007, issued pursuant to
the 1997 Indenture on April 30, 1997.

          "ACQUIRED DEBT" means, with respect to any specified Person, (i)
Indebtedness of any other Person existing at the time such other Person is
merged with or into, or became a Subsidiary of, such specified Person,
including, without limitation, Indebtedness incurred in connection with, or in
contemplation of, such other Person's merging with or into or becoming a
Subsidiary of such specified Person, and (ii) Indebtedness secured by a Lien
encumbering any asset acquired by such specified Person.
<PAGE>

          "ACQUISITION" means the acquisition of the Acquired Business by the
Borrower.

          "ACQUIRED BUSINESS" has the meaning specified in the preamble to this
Agreement.

          "ACQUISITION DOCUMENTS" means the Asset Purchase Agreement and any
other material instrument or document executed in connection therewith.

          "ADMINISTRATIVE AGENT" means LCPI, acting as agent pursuant to Article
XI or any successor or replacement Administrative Agent, acting in such
capacity.

          "AFFILIATE" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with"), as used with respect to any Person, shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided that
beneficial ownership of 10% or more of the voting securities of a Person shall
be deemed to be control.

          "AFFILIATE TRANSACTION" has the meaning specified in Section 4.9.

          "AGREEMENT" has the meaning specified in the preamble to this
Agreement.

          "ARRANGERS" means Lehman Brothers Inc. and Banc of America Bridge LLC,
as joint lead book-running managers and joint lead arrangers hereunder, and
Credit Suisse First Boston Corporation, as an arranger hereunder.

          "ASSET PURCHASE AGREEMENT" means the Asset Purchase Agreement, dated
as of January 11, 2002, among Raytheon Company, Raytheon Australia Pty Ltd. and
L-3 Communications Corporation, as amended, supplemented or otherwise modified
from time to time.

          "ASSET SALE" means (i) the sale, lease, conveyance or other
disposition of any assets or rights (including, without limitation, by way of a
sale and leaseback) other than sales of inventory in the ordinary course of
business (provided that the sale, lease, conveyance or other disposition of all
or substantially all of the assets of the Borrower and its Restricted
Subsidiaries taken as a whole shall be governed by the covenant contained in
Section 4.13 and not by the covenant contained in Section 4.8), and (ii) the
issue or sale by the Borrower or any of its Subsidiaries of Equity Interests of
any of the Borrower's Restricted Subsidiaries, in the case of either clause (i)
or (ii), whether in a single transaction or a series of related transactions (A)
that have a fair market value in excess of $1.0 million or (B) for net proceeds
in excess of $1.0 million. Notwithstanding the foregoing: (i) a transfer of
assets by the Borrower to a Restricted Subsidiary or by a Restricted Subsidiary
to the Borrower or to another Restricted Subsidiary, (ii) an issuance of Equity
Interests by a Restricted Subsidiary to the Borrower or to another Restricted
Subsidiary, (iii) a Restricted Payment that is permitted by the covenant
contained in Section 4.5 and (iv) a disposition of Cash Equivalents in the
ordinary course of business shall not be deemed to be an Asset Sale.

          "ASSIGNMENT AND ACCEPTANCE" shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the Administrative
Agent, in the form of Exhibit A or such other form as shall be approved by the
Administrative Agent.

                                     -2-
<PAGE>

                  "ATTRIBUTABLE DEBT" in respect of a sale and leaseback
transaction, means, at the time of determination, the present value (discounted
at the rate of interest implicit in such transaction, determined in accordance
with GAAP) of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction
(including any period for which such lease has been extended or may, at the
option of the lessor, be extended).

                  "BANKRUPTCY LAW" means (i) Title 11 of the U.S. Code or (ii)
any other law of the United States, any political subdivision thereof or any
other jurisdiction relating to bankruptcy, insolvency, winding up, liquidation,
reorganization or relief of debtors.

                  "BASE RATE" means, for any day, the higher of: (a) 0.50% per
annum above the last Federal Funds Effective Rate; and (b) the rate of interest
in effect for such day as publicly announced from time to time by BOA in
Charlotte, North Carolina, as its "reference rate." (The "reference rate" is a
rate set by BOA based upon various factors including BOA's costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.)

                  "BENEFICIAL OWNER" and "BENEFICIAL OWNERSHIP" each has the
meaning as defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act.

                  "BOA" means Bank of America, N.A.

                  "BOARD" means the Board of Governors of the Federal Reserve
System of the United States or any successor.

                  "BOARD OF DIRECTORS" means the Board of Directors of the
Borrower, or any authorized committee of the Board of Directors.

                  "BORROWER" has the meaning specified in the preamble to this
Agreement.

                  "BRIDGE LOAN" means a loan made by any Lender to the Borrower
pursuant to Section 2.1.

                  "BUSINESS" has the meaning specified in Section 3.19.

                  "BUSINESS DAY" means a day other than a Saturday, Sunday or
other day on which commercial banks in New York City or San Francisco,
California are authorized or required by law to close.

                  "CAPITAL LEASE OBLIGATION" means, at the time any
determination thereof is to be made, the amount of the liability in respect of a
capital lease that would at such time be required to be capitalized on a balance
sheet in accordance with GAAP.

                  "CAPITAL STOCK" means (i) in the case of a corporation,
corporate stock, (ii) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or
limited) and (iv) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.

                                      -3-
<PAGE>

                  "CASH EQUIVALENTS" means (i) United States dollars, (ii)
securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality thereof having maturities of
not more than one year from the date of acquisition, (iii) certificates of
deposit and eurodollar time deposits with maturities of six months or less from
the date of acquisition, bankers' acceptances with maturities not exceeding six
months and overnight bank deposits, in each case with any domestic financial
institution to the Senior Credit Facilities or with any domestic commercial bank
having capital and surplus in excess of $500.0 million and a Thompson Bank Watch
Rating of "B" or better, (iv) repurchase obligations with a term of not more
than seven days for underlying securities of the types described in clauses (ii)
and (iii) above entered into with any financial institution meeting the
qualifications specified in clause (iii) above, (v) commercial paper having the
highest rating obtainable from Moody's or S&P and in each case maturing within
six months after the date of acquisition, (vi) investment funds investing 95% of
their assets in securities of the types described in clauses (i)-(v) above, and
(vii) readily marketable direct obligations issued by any State of the United
States of America or any political subdivision thereof having maturities of not
more than one year from the date of acquisition and having one of the two
highest rating categories obtainable from either Moody's or S&P.

                  "CHANGE OF CONTROL" means the occurrence of any of the
following: (i) the sale, lease, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the assets of the Borrower and its
Restricted Subsidiaries taken as a whole to any "person" (as such term is used
in Section 13(d)(3) of the Exchange Act) other than the Principals or their
Related Parties, (ii) the adoption of a plan relating to the liquidation or
dissolution of the Borrower, (iii) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of which
is that any "person" (as defined above), other than the Principals and their
Related Parties, becomes the beneficial owner, directly or indirectly, of more
than 50% of the Voting Stock of the Borrower (measured by voting power rather
than number of shares) or (iv) the first day on which a majority of the members
of the Board of Directors of the Borrower are not Continuing Directors.

                  "CHANGE OF CONTROL PAYMENT" has the meaning specified in
Section 4.13(a).

                  "CHANGE OF CONTROL PAYMENT DATE" has the meaning specified in
Section 4.13(a).

                  "CODE" means the Internal Revenue Code of 1986, as amended,
and any regulation promulgated thereunder.

                  "COMMITMENT" means, with respect to any Lender, the amount set
forth opposite such Lender's signature on the signature pages of this Agreement.

                  "COMMITMENT LETTER" means the Interim Loan Commitment Letter
(including all exhibits and annexes thereto) among Lehman Commercial Paper Inc.,
Lehman Brothers Inc., Banc of America Bridge LLC, Banc of America Securities
LLC, Credit Suisse First Boston Corporation, Credit Suisse First Boston, Cayman
Islands Branch, Holdings and the Borrower, dated March 4, 2002, as the same may
be amended, supplemented, replaced or otherwise modified from time to time in
accordance with the terms thereof.

                  "COMMONLY CONTROLLED ENTITY" means an entity, whether or not
incorporated, which is under common control with the Borrower within the meaning
of Section 4001 of ERISA or is part of a group which includes the Borrower and
which is treated as a single employer under Section 414(b) or (c) of the Code.

                                      -4-
<PAGE>

                  "CONSOLIDATED CASH FLOW" means, with respect to any Person for
any period, the Consolidated Net Income of such Person for such period plus (i)
an amount equal to any extraordinary loss plus any net loss realized in
connection with an Asset Sale (to the extent such losses were deducted in
computing such Consolidated Net Income), plus (ii) provision for taxes based on
income or profits of such Person and its Restricted Subsidiaries for such
period, to the extent that such provision for taxes was included in computing
such Consolidated Net Income, plus (iii) consolidated interest expense of such
Person and its Restricted Subsidiaries for such period, whether paid or accrued
and whether or not capitalized (including, without limitation, original issue
discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with
Capital Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers' acceptance financings, and net payments (if any) pursuant
to Hedging Obligations), to the extent that any such expense was deducted in
computing such Consolidated Net Income, plus (iv) depreciation, amortization
(including amortization of goodwill, debt issuance costs and other intangibles
but excluding amortization of other prepaid cash expenses that were paid in a
prior period) and other non-cash expenses (excluding any such non-cash expense
to the extent that it represents an accrual of or reserve for cash expenses in
any future period or amortization of a prepaid cash expense that was paid in a
prior period) of such Person and its Restricted Subsidiaries for such period to
the extent that such depreciation, amortization and other non-cash expenses were
deducted in computing such Consolidated Net Income, minus (v) non-cash items
(excluding any items that were accrued in the ordinary course of business)
increasing such Consolidated Net Income for such period, in each case, on a
consolidated basis and determined in accordance with GAAP.

                  "CONSOLIDATED NET INCOME" means, with respect to any Person
for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP; provided that (i) the Net Income of any Person that is not
a Restricted Subsidiary or that is accounted for by the equity method of
accounting shall be included only to the extent of the amount of dividends or
distributions paid in cash to the referent Person or a Restricted Subsidiary
thereof that is a Guarantor, (ii) the Net Income of any Restricted Subsidiary
shall be excluded to the extent that the declaration or payment of dividends or
similar distributions by that Restricted Subsidiary of that Net Income is not at
the date of determination permitted without any prior governmental approval
(that has not been obtained) or, directly or indirectly, by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders, (iii) the Net Income of any Person acquired in a
pooling of interests transaction for any period prior to the date of such
acquisition shall be excluded, (iv) the cumulative effect of a change in
accounting principles shall be excluded, (v) the Net Income of any Unrestricted
Subsidiary shall be excluded, whether or not distributed to the Borrower or one
of its Restricted Subsidiaries, and (vi) the Net Income of any Restricted
Subsidiary shall be calculated after deducting preferred stock dividends payable
by such Restricted Subsidiary to Persons other than the Borrower and its other
Restricted Subsidiaries.

                  "CONSOLIDATED TANGIBLE ASSETS" means, with respect to the
Borrower, the total consolidated assets of the Borrower and its Restricted
Subsidiaries, less the total intangible assets of the Borrower and its
Restricted Subsidiaries, as shown on the most recent internal consolidated
balance sheet of the Borrower and such Restricted Subsidiaries calculated on a
consolidated basis in accordance with GAAP.

                  "CONTINUING DIRECTORS" means, as of any date of determination,
any member of the Board of Directors who (i) was a member of such Board of
Directors on the Funding Date or (ii) was nominated for election or elected to
such Board of Directors with the approval of a majority of the

                                      -5-
<PAGE>

Continuing Directors who were members of such Board of Directors at the time of
such nomination or election.

                  "CONTRACTUAL OBLIGATION" means as to any Person, any provision
of any security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

                  "CONTROL INVESTMENT AFFILIATE" means, as to any Lender, an
investment fund that is regularly engaged in making, purchasing or investing in
loans or securities and is under common management with such Lender.

                  "CREDIT FACILITIES" means, with respect to the Borrower, one
or more debt facilities (including, without limitation, the Senior Credit
Facilities) or commercial paper facilities with banks or other institutional
lenders providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to such lenders or to special purpose
entities formed to borrow from such lenders against such receivables) or letters
of credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time.

                  "CREDIT PARTIES" means each of the Borrower and the
Guarantors.

                  "CUSTODIAN" means any receiver, interim receiver, receiver and
manager, trustee, assignee, liquidator, sequestrator, custodian or similar
official under any Bankruptcy Law.

                  "DEBT REGISTRATION RIGHTS AGREEMENT" means the registration
rights agreement, dated as of the Funding Date, among the Borrower, the
Guarantors and the Administrative Agent pursuant to which the Exchange Notes are
required to be registered for public sale, in the form attached as Exhibit F.

                  "DECEMBER 1998 NOTES" means the $200,000,000 in aggregate
principal amount of the Borrower's 8% Senior Subordinated Notes due 2008, issued
pursuant to the December 1998 Indenture on December 11, 1998.

                  "DECEMBER 1998 INDENTURE" means the indenture, dated as of
December 11, 1998, among The Bank of New York, as trustee, and the Borrower,
with respect to the December 1998 Notes.

                  "DEFAULT" means any event that is, or with the passage of time
the giving of notice or both would be, an Event of Default.

                  "DESIGNATED SENIOR DEBT" means (i) any Indebtedness
outstanding under the Senior Credit Facilities and (ii) any other Senior Debt
permitted to be incurred under this Agreement the principal amount of which is
$25.0 million or more and that has been designated by the Borrower as
"Designated Senior Debt."

                  "DISQUALIFIED STOCK" means any Capital Stock that, by its
terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, at the option of the holder thereof), or upon the
happening of any event, matures or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, or redeemable at the option of the holder
thereof, in whole or in part, on or prior to the date that is 91 days after the
date on which the Bridge Loans mature; provided, however, that any Capital Stock
that would constitute Disqualified Stock solely because the holders thereof have
the right to require the Borrower to repurchase such Capital Stock upon the
occurrence of a Change of Control or an Asset Sale shall not constitute
Disqualified Stock if the terms of such Capital Stock provide that the Borrower
may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such

                                      -6-
<PAGE>

repurchase or redemption complies with Section 4.5 hereof; and provided further,
that if such Capital Stock is issued to any plan for the benefit of employees of
the Borrower or its Subsidiaries or by any such plan to such employees, such
Capital Stock shall not constitute Disqualified Stock solely because it may be
required to be repurchased by the Borrower in order to satisfy applicable
statutory or regulatory obligations.

                  "DOLLARS" or "$" shall mean dollars, the lawful currency of
the United States of America.

                  "ENGAGEMENT LETTER" means the Engagement Letter among Lehman
Brothers Inc., Banc of America Securities LLC, BOA, Credit Suisse First Boston
Corporation, Holdings and the Borrower, dated March 4, 2002, as the same may be
amended, supplemented, replaced or otherwise modified from time to time in
accordance with the terms thereof.

                  "ENVIRONMENTAL LAWS" means any and all laws, rules, orders,
regulations, statutes, ordinances, codes, decrees, or other legally enforceable
requirement (including, without limitation, common law) of any foreign
government, the United States, or any state, local, municipal or other
governmental authority, regulating, relating to or imposing liability or
standards of conduct concerning protection of the environment or of human health
as affected by the environment as has been, is now, or may at any time hereafter
be, in effect, including, but not limited to, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C.ss.ss.
9601 et seq.; the Toxic Substance Control Act, 15 U.S.C.ss.ss.9601 et seq.; the
Hazardous Materials Transportation Act, 49 U.S.C.ss.ss.1802 et seq.; the
Resource Conservation and Recovery Act, 42 U.S.C.ss.ss.6901 et seq.; the Clean
Water Act; 33 U.S.C.ss.ss.1251 et seq.; the Clean Air Act, 42 U.S.C.ss.ss. 7401
et seq.; or other similar federal and/or state environmental laws.

                  "ENVIRONMENTAL PERMITS" means any and all permits, licenses,
registrations, approvals, notifications, exemptions and any other authorization
required under any Environmental Law.

                  "EQUITY INTERESTS" means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and any regulation promulgated thereunder.

                  "ESCROW AGENT" means The Bank of New York, a New York banking
corporation, in its capacity as escrow agent pursuant to the Escrow Agreement.

                  "ESCROW AGREEMENT" means the escrow agreement, dated as of the
Funding Date, among the Borrower, the Administrative Agent, the Arrangers and
the Escrow Agent, in the form attached as Exhibit C.

                  "EURODOLLAR BUSINESS DAY" means any Business Day on which
commercial banks are open in London for the transaction of international
business, including dealings in Dollar deposits in the international interbank
markets.

                  "EVENT OF DEFAULT" means any of the events specified in
Section 7.1, provided that any requirement for the giving of notice, the lapse
of time, or both, or any other condition has been satisfied.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                                      -7-
<PAGE>

                  "EXCHANGE DATE" means the date on which the Bridge Loans
convert to Exchange Notes in accordance with Section 2.2.

                  "EXCHANGE NOTE INDENTURE" means the indenture relating to the
Exchange Notes, among the Borrower, as issuer, the Guarantors, as guarantors,
and the Exchange Note Trustee, in the form attached as Exhibit D.

                  "EXCHANGE NOTE TRUSTEE" means, on any date of determination,
the trustee under the Exchange Note Indenture.

                  "EXCHANGE NOTES" means those certain Senior Subordinated Notes
of the Borrower, guaranteed by the Guarantors and placed into escrow on the
Funding Date, to be issued in exchange for the Bridge Loans pursuant to Section
2.2, in the form attached as an exhibit to the Exchange Note Indenture.

                  "EXISTING INDEBTEDNESS" means any Indebtedness of the Borrower
and its Restricted Subsidiaries (other than Indebtedness under the Senior Credit
Facilities and the Bridge Loans) in existence on the date of the Agreement,
until such amounts are repaid.

                  "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, the rate
set forth in the weekly statistical release designated as H.15(519), or any
successor publication, published by the Board (including any such successor,
"H.15(519)") for such day opposite the caption "Federal Funds (Effective)." If
on any relevant day the appropriate rate for such previous day is not yet
published in H.15(519), the rate for such day will be the arithmetic mean of the
rates for the last transaction in overnight federal funds arranged prior to 9:00
a.m. (New York City time) on that day by each of three leading brokers of
federal funds transactions in New York City selected by the Administrative
Agent.

                  "FEE LETTER" means the Interim Loan Fee Letter among Lehman
Commercial Paper Inc., Lehman Brothers Inc., Banc of America Bridge LLC, Banc of
America Securities LLC, Credit Suisse First Boston Corporation, Credit Suisse
First Boston, Cayman Islands Branch, and the Borrower, dated March 4, 2002, as
amended, supplemented, replaced or otherwise modified from time to time in
accordance with the terms thereof.

                  "FOREIGN SUBSIDIARY" means a Restricted Subsidiary of the
Borrower that was not organized or existing under the laws of the United States,
any state thereof, the District of Columbia or any territory thereof or that has
not guaranteed or otherwise provided direct credit support for any Indebtedness
of the Borrower.

                  "FIXED CHARGES" means, with respect to any Person for any
period, the sum, without duplication, of (i) the consolidated interest expense
of such Person and its Restricted Subsidiaries for such period, whether paid or
accrued (including, without limitation, original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions,
discounts and other fees and charges incurred in respect of letter of credit or
bankers' acceptance financings, and net payments (if any) pursuant to Hedging
Obligations, but excluding amortization of debt issuance costs) and (ii) the
consolidated interest of such Person and its Restricted Subsidiaries that was
capitalized during such period, and (iii) any interest expense on Indebtedness
of another Person that is guaranteed by such Person or one of its Restricted
Subsidiaries or secured by a Lien on assets of such Person or one of its
Restricted Subsidiaries (whether or not such Guarantee or Lien is called upon)
and (iv) the product of (A) all dividend payments, whether or not in cash, on
any series of preferred stock of such Person or any of its Restricted
Subsidiaries, other than dividend payments on

                                      -8-
<PAGE>

Equity Interests payable solely in Equity Interests of the Borrower, times (B) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current combined federal, state and local statutory tax rate of
such Person, expressed as a decimal, in each case, on a consolidated basis and
in accordance with GAAP.

                  "FIXED CHARGE COVERAGE RATIO" means with respect to any Person
for any period, the ratio of the Consolidated Cash Flow of such Person for such
period to the Fixed Charges of such Person and its Restricted Subsidiaries for
such period. In the event that the Borrower or any of its Restricted
Subsidiaries incurs, assumes, Guarantees or redeems any Indebtedness (other than
revolving credit borrowings) or issues preferred stock subsequent to the
commencement of the period for which the Fixed Charge Coverage Ratio is being
calculated but on or prior to the date on which the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the "CALCULATION DATE"),
then the Fixed Charge Coverage Ratio shall be calculated giving pro forma effect
to such incurrence, assumption, Guarantee or redemption of Indebtedness, or such
issuance or redemption of preferred stock, as if the same had occurred at the
beginning of the applicable four-quarter reference period. In addition, for
purposes of making the computation referred to above, (i) acquisitions that have
been made by the Borrower or any of its Restricted Subsidiaries, including
through mergers or consolidations and including any related financing
transactions, during the four-quarter reference period or subsequent to such
reference period and on or prior to the Calculation Date shall be deemed to have
occurred on the first day of the four-quarter reference period and Consolidated
Cash Flow for such reference period shall be calculated without giving effect to
clause (iii) of the proviso set forth in the definition of Consolidated Net
Income, and (ii) the Consolidated Cash Flow attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses
disposed of prior to the Calculation Date, shall be excluded, and (iii) the
Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses disposed of prior to the
Calculation Date, shall be excluded, but only to the extent that the obligations
giving rise to such Fixed Charges will not be obligations of the referent Person
or any of its Restricted Subsidiaries following the Calculation Date.

                  "FUNDING DATE" means the date on which the Bridge Loans are
funded and the conditions set forth in Section 5.1 are satisfied or waived in
accordance with Section 12.3.

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect on the date hereof.

                  "GOVERNMENTAL AUTHORITY" means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

                  "GUARANTEE" means a guarantee (other than by endorsement of
negotiable instruments for collection in the ordinary course of business),
direct or indirect, in any manner (including, without limitation, letters of
credit and reimbursement agreements in respect thereof), of all or any part of
any Indebtedness.

                  "GUARANTORS" means each Person listed on the signature pages
to this Agreement and each Subsidiary of the Borrower that executes a Subsidiary
Guarantee in accordance with the provisions of the Agreement, and their
respective successors and assigns.

                  "HEDGING OBLIGATIONS" means, with respect to any Person, the
obligations of such Person under (i) currency exchange or interest rate swap
agreements, interest rate cap agreements and currency exchange or interest rate
collar agreements and (ii) other agreements or arrangements designed to protect
such Person against fluctuations in currency exchange rates or interest rates.

                                      -9-
<PAGE>

                 "HOLDINGS" means L-3 Communications Holdings, Inc., a Delaware
corporation.

                 "INDEBTEDNESS" means, with respect to any Person, any
indebtedness of such Person, whether or not contingent, in respect of borrowed
money or evidenced by bonds, notes, debentures or similar instruments or letters
of credit (or reimbursement agreements in respect thereof) or banker's
acceptances or representing Capital Lease Obligations or the balance deferred
and unpaid of the purchase price of any property or representing any Hedging
Obligations, except any such balance that constitutes an accrued expense or
trade payable, if and to the extent any of the foregoing indebtedness (other
than letters of credit and Hedging Obligations) would appear as a liability upon
a balance sheet of such Person prepared in accordance with GAAP, as well as all
indebtedness of others secured by a Lien on any asset of such Person (whether or
not such indebtedness is assumed by such Person) and, to the extent not
otherwise included, the Guarantee by such Person of any indebtedness of any
other Person. The amount of any Indebtedness outstanding as of any date shall be
(i) the accreted value thereof, in the case of any Indebtedness that does not
require current payments of interest, and (ii) the principal amount thereof,
together with any interest thereon that is more than 30 days past due, in the
case of any other Indebtedness.

                 "INSOLVENCY" means, with respect to any Multiemployer Plan,
the condition that such Plan is insolvent within the meaning of Section 4245 of
ERISA.

                 "INSOLVENT" means that which is pertaining to a condition of
Insolvency.

                 "INTELLECTUAL PROPERTY" has the meaning specified in Section
3.9.

                 "INTEREST PAYMENT DATE" means (i) the last day of each
Interest Period, (ii) the date of any prepayment or exchange of all or any
portion of the principal of the Bridge Loans and (iii) the date, if any, on
which the Bridge Loans are converted into Exchange Notes.

                 "INTEREST PERIOD" means, with respect to any Bridge Loan:

                 (a) initially, the period commencing on the Funding Date with
         respect to such Bridge Loan and ending one or three months thereafter,
         as selected by the Borrower in its notice of borrowing with respect
         thereto; and

                 (b) thereafter, each period commencing on the last day of the
         preceding Interest Period applicable to such Bridge Loan and ending one
         or three months thereafter, as selected by the Borrower by irrevocable
         notice to the Administrative Agent not less than three Eurodollar
         Business Days prior to the last day of the then current Interest Period
         with respect thereto; or

                 (c) any other period agreed to by the Borrower and each Lender;

provided that, the foregoing provisions relating to Interest Periods are subject
to the following:

                 (i) if any Interest Period pertaining to a Bridge Loan would
         otherwise end on a day that is not a Eurodollar Business Day, such
         Interest Period shall be extended to the next succeeding Eurodollar
         Business Day unless the result of such extension would be to carry such
         Interest Period into another calendar month, in which event such
         Interest Period shall end on the immediately preceding Eurodollar
         Business Day;

                                      -10-
<PAGE>

                  (ii) any Interest Period for any Bridge Loan that would
         otherwise extend beyond the one-year anniversary of the Funding Date
         shall otherwise end on the one-year anniversary of the Funding Date;

                  (iii) any Interest Period for any Bridge Loan that would
         otherwise extend beyond the Maturity Date shall end on the Maturity
         Date; and

                  (iv) any Interest Period pertaining to a Bridge Loan that
         begins on the last Eurodollar Business Day of a calendar month (or on a
         day for which there is no numerically corresponding day in the calendar
         month in which such Interest Period would otherwise be scheduled to
         end) shall end on the last Eurodollar Business Day of the appropriate
         calendar month.

                  "INTEREST RATE" means the sum of (a) the LIBOR plus (b) 350
basis points.

                  "INVESTMENTS" means, with respect to any Person, all
investments by such Person in other Persons (including Affiliates) in the forms
of direct or indirect loans (including guarantees of Indebtedness or other
obligations), advances or capital contributions (excluding commission, travel,
moving and similar loans or advances to officers and employees made in the
ordinary course of business), purchases or other acquisitions for consideration
of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP. If the Borrower or any Subsidiary of the Borrower sells or
otherwise disposes of any Equity Interests of any direct or indirect Subsidiary
of the Borrower such that, after giving effect to any such sale or disposition,
such Person is no longer a Subsidiary of the Borrower, the Borrower shall be
deemed to have made an Investment on the date of any such sale or disposition
equal to the fair market value of the Equity Interests of such Subsidiary not
sold or disposed of in an amount determined as provided in the last paragraph of
the covenant contained in Section 4.5.

                  "LCPI" means Lehman Commercial Paper Inc.

                  "LENDERS" shall mean (a) each financial institution that has
executed a counterpart to this Agreement (other than any such financial
institution that has ceased to be a party hereto pursuant to an Assignment and
Acceptance) and (b) any financial institution that has become a party hereto
pursuant to an Assignment and Acceptance.

                  "LIBOR" means, as to any Interest Period, the rate per annum
determined on the basis of the rate for deposits in Dollars for a period equal
to such Interest Period commencing on the first day of such Interest Period
quoted on the second Eurodollar Business Day prior to the first day of such
Interest Period, as such rate appears on Page 3750 as of 11:00 A.M. (London
time) on such date, as determined by the Administrative Agent and notified to
the Lenders and the Borrower on such second prior Eurodollar Business Day. If
LIBOR cannot be determined based on Page 3750, LIBOR means the rate per annum,
as supplied to the Administrative Agent, quoted by BOA's London Branch to prime
banks in the London interbank market for deposits in Dollars at approximately
11:00 A.M. (London time) two Eurodollar Business Days prior to the first day of
such Interest Period in an amount approximately equal to the principal amount of
the Bridge Loans to which such Interest Period is to apply and for a period of
time comparable to such Interest Period.

                  "LIEN" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law (including any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of

                                      -11-
<PAGE>

or agreement to give any financing statement under the Uniform Commercial Code
(or equivalent statutes) of any jurisdiction).

                  "LOAN DOCUMENTS" means this Agreement, the Notes and the
Related Documents.

                  "MAJORITY LENDERS" means, at any time, Lenders holding at
least a majority of the then aggregate principal balance of the Bridge Loans
then outstanding, or, if no such principal amount is then outstanding, Lenders
having at least a majority of the total Commitments; provided that, for purposes
hereof, neither the Borrower nor any of its Affiliates shall be included in (i)
the Lenders holding such amount of the Bridge Loans or having such amount of the
Commitments or (ii) determining the aggregate unpaid principal amount of the
Bridge Loans or the total Commitments.

                  "MARKETABLE SECURITIES" means, with respect to any Asset Sale,
any readily marketable equity securities that are (i) traded on the New York
Stock Exchange, the American Stock Exchange or the Nasdaq National Market; and
(ii) issued by a corporation having a total equity market capitalization of not
less than $300.0 million; provided that the excess of (A) the aggregate amount
of securities of any one such corporation held by the Borrower and any
Restricted Subsidiary over (B) ten times the average daily trading volume of
such securities during the 20 immediately preceding trading days shall be deemed
not to be Marketable Securities, as determined on the date of the contract
relating to such Asset Sale.

                  "MATERIAL ADVERSE EFFECT" means a material adverse effect on
(a) the business, assets, operations, property or condition (financial or
otherwise) of Holdings and its Subsidiaries taken as a whole or (b) the validity
or enforceability of this Agreement, any of the other Loan Documents, the
Exchange Note Indenture, the Exchange Notes or the rights or remedies of the
Agents or the Lenders hereunder or thereunder.

                  "MATERIALS OF ENVIRONMENTAL CONCERN" means any hazardous or
toxic substances, materials or wastes, defined or regulated as such in or under,
or that could give rise to liability under, any applicable Environmental Law,
including, without limitation, asbestos, polychlorinated biphenyls,
urea-formaldehyde insulation, gasoline or petroleum (including crude oil or any
fraction thereof) or petroleum products.

                  "MATURITY DATE" means May 15, 2009.

                  "MAY 1998 NOTES" means the $180,000,000 in aggregate principal
amount of the Borrower's 8 1/2% Senior Subordinated Notes due 2008, issued
pursuant to the May 1998 Indenture on May 22, 1998.

                  "MAY 1998 INDENTURE" means the indenture, dated as of May 22,
1998, among The Bank of New York, as trustee, and the Borrower, with respect to
the May 1998 Notes.

                  "MOODY'S" means Moody's Investors Service, Inc.

                  "MULTIEMPLOYER PLAN" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

                  "NET CASH PROCEEDS" means (i) in the case of an Asset Sale,
the aggregate cash proceeds received (including any cash and Cash Equivalents
and cash payments received by way of deferred payment of principal pursuant to a
note, an installment receivable or otherwise, but only as and when received) in
connection with such Asset Sale, net of attorneys' fees, accountants' fees,
investment banking fees, brokers' and underwriters' discounts and commissions
paid to third parties, amounts

                                      -12-
<PAGE>

required to be applied to the repayment of Indebtedness secured by a Lien
expressly permitted hereunder on any asset that is sold or otherwise disposed of
in connection with the Asset Sale, the aggregate amount of reserves that is
required or appropriate in the reasonable judgment of the Borrower to pay
contingent liabilities with respect to the Asset Sale (provided that amounts
deducted from aggregate proceeds pursuant to this clause and not actually paid
by the Borrower or any of its Subsidiaries in liquidation of such contingent
liabilities shall be deemed to be Net Cash Proceeds and shall be applied in
accordance with Section 2.4(a) at such time as the Borrower shall reasonably
determine that such amounts are not required to pay contingent liabilities with
respect to the Asset Sale) and other customary fees and expenses actually
incurred in connection therewith and net of taxes paid or reasonably estimated
to be payable as a result thereof (after taking into account any available tax
credits or deductions and any tax sharing arrangements with any Person other
than the Borrower and its Subsidiaries) and (ii) in connection with any issuance
or sale of Capital Stock or debt securities or instruments or the incurrence of
Indebtedness, the cash proceeds received from such issuance or incurrence, net
of attorneys' fees, investment banking fees, accountants' fees, brokers' and
underwriting discounts and commissions paid to third parties and other customary
fees and expenses actually incurred in connection therewith net of taxes paid or
reasonably estimated to be payable as a result thereof (after taking into
account any available tax credits or deductions and any tax sharing arrangements
with any Person other than the Borrower and its Subsidiaries) and (iii) in
connection with any capital contribution from Holdings made pursuant to Section
2.4(b), the cash proceeds received from such contribution, net of attorney's
fees and other customary fees and expenses actually incurred in connection
therewith and net of taxes paid or reasonably estimated to be payable as a
result thereof (after taking into account any available tax credits or
deductions and any tax sharing arrangements with any Person other than the
Borrower and its Subsidiaries).

                  "NET INCOME" means, with respect to any Person, the net income
(loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends, excluding, however, (i) any
gain or loss, together with any related provision for taxes thereon, realized in
connection with (A) any Asset Sale (including, without limitation, dispositions
pursuant to sale and leaseback transactions) or (B) the disposition of any
securities by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted
Subsidiaries and (ii) any extraordinary gain or loss, together with any related
provision for taxes on such extraordinary gain or loss and (iii) the cumulative
effect of a change in accounting principles.

                  "NET PROCEEDS" means the aggregate cash proceeds received by
the Borrower or any of its Subsidiaries in respect of any Asset Sale (including,
without limitation, any cash received upon the sale or other disposition of any
non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale (including, without limitation, legal, accounting
and investment banking fees, and sales commissions) and any relocation expenses
incurred as a result thereof, taxes paid or payable as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing
arrangements), amounts required to be applied to the repayment of Indebtedness
secured by a Lien on the asset or assets that were the subject of such Asset
Sale and any reserve for adjustment in respect of the sale price of such asset
or assets established in accordance with GAAP.

                  "NONCONSENTING LENDER" has the meaning specified in Section
2.13.

                  "NON-RECOURSE DEBT" means Indebtedness (i) as to which neither
the Borrower nor any of its Restricted Subsidiaries (A) provides credit support
of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (B) is directly or indirectly liable (as a guarantor
or otherwise), or (C) constitutes the lender; and (ii) no default with respect
to which (including any rights that the holders thereof may have to take
enforcement action against an Unrestricted Subsidiary) would permit (upon
notice, lapse of time or both) any holder of any other Indebtedness (other

                                      -13-
<PAGE>

than Indebtedness incurred under Credit Facilities) of the Borrower or any of
its Restricted Subsidiaries to declare a default on such other Indebtedness or
cause the payment thereof to be accelerated or payable prior to its stated
maturity; and (iii) as to which the lenders have been notified in writing that
they will not have any recourse to the stock or assets of the Borrower or any of
its Restricted Subsidiaries.

                  "NON-U.S. LENDER" has the meaning specified in Section 2.8(g).

                  "NOTES" or "BRIDGE NOTES" means the promissory notes of the
Borrower substantially in the form attached as Exhibit B hereto evidencing the
Bridge Loans.

                  "OBLIGATIONS" means any principal, premium (if any), interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization, whether or not a claim for post-filing
interest is allowed in such proceeding), penalties, fees, charges, expenses,
indemnifications, reimbursement obligations, damages, guarantees and other
liabilities or amounts payable under the documentation governing any
Indebtedness or in respect thereto.

                  "OFFICER" means, with respect to any Person, the Chairman of
the Board, the Chief Executive Officer, the President, the Chief Operating
Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer,
the Controller, the Secretary, any Assistant Secretary or any Vice President of
such Person.

                  "OFFICERS' CERTIFICATE" means a certificate signed on behalf
of the Borrower by two Officers of the Borrower, one of whom must be the
principal executive officer, the principal financial officer, the treasurer or
the principal accounting officer of the Borrower.

                  "OTHER TAXES" has the meaning specified in Section 2.8(b).

                  "OUTSTANDING SENIOR SUBORDINATED NOTES" means the 10M%
Senior Subordinated Notes due 2007, 8 1/2% Senior Subordinated Notes due 2008
and 8% Senior Subordinated Notes due 2008 issued by the Borrower and guaranteed
by certain of its Subsidiaries.

                  "PAGE 3750" means the display designated as page "3750" on the
Dow Jones Market Service (formerly known as the Telerate Service) or such other
page as may replace the "3750" page on that service or such other service or
services as may be nominated by the British Bankers' Association for the purpose
of displaying London interbank offered rates for Dollar deposits.

                  "PARTICIPANT" has the meaning specified in Section 6.1(b).

                  "PAYMENT BLOCKAGE NOTICE" has the meaning specified in Section
9.3.

                  "PBGC" means the Pension Benefit Guaranty Corporation or any
entity succeeding to any of its functions under ERISA.

                  "PERMANENT SECURITIES" shall mean any debt securities issued
by the Borrower or any of its Subsidiaries during the term of the Engagement
Letter, whether sold in connection with an underwritten offering or a private
placement.

                  "PERMITTED INDEBTEDNESS" means Indebtedness permitted to be
incurred by the Borrower or any Subsidiary of the Borrower pursuant to Section
4.7.

                                      -14-
<PAGE>

                  "PERMITTED INVESTMENTS" means (i) any Investment in the
Borrower or in a Restricted Subsidiary of the Borrower that is a Guarantor; (ii)
any Investment in cash or Cash Equivalents; (iii) any Investment by the Borrower
or any Restricted Subsidiary of the Borrower in a Person, if as a result of such
Investment (A) such Person becomes a Restricted Subsidiary of the Borrower and a
Guarantor or (B) such Person is merged, consolidated or amalgamated with or
into, or transfers or conveys substantially all of its assets to, or is
liquidated into, the Borrower or a Restricted Subsidiary of the Borrower that is
a Guarantor; (iv) any Restricted Investment made as a result of the receipt of
non-cash consideration from an Asset Sale that was made pursuant to and in
compliance with Section 4.5 or any disposition of assets not constituting an
Asset Sale; (v) any acquisition of assets solely in exchange for the issuance of
Equity Interests (other than Disqualified Stock) of the Borrower; (vi) advances
to employees not to exceed $2.5 million at any one time outstanding; (vii) any
Investment acquired in connection with or as a result of a workout or bankruptcy
of a customer or supplier; (viii) Hedging Obligations permitted to be incurred
under Section 4.7; (ix) any Investment in a Similar Business that is not a
Restricted Subsidiary; provided that the aggregate fair market value of all
Investments outstanding pursuant to this clause (ix) (valued on the date each
such Investment was made and without giving effect to subsequent changes in
value) may not at any one time exceed 10% of the Consolidated Tangible Assets of
the Borrower; and (x) other Investments in any Person having an aggregate fair
market value (measured on the date each such Investment was made and without
giving effect to subsequent changes in value), when taken together with all
other Investments made pursuant to this clause (x) that are at the time
outstanding, not to exceed $15.0 million.

                  "PERMITTED JOINT VENTURE" means any joint venture, partnership
or other Person designated by the Board of Directors (until designation by the
Board of Directors to the contrary); provided that (i) at least 25% of the
Capital Stock thereof with voting power under ordinary circumstances to elect
directors (or Persons having similar or corresponding powers and
responsibilities) is at the time owned (beneficially or directly) by the
Borrower and/or by one or more Restricted Subsidiaries of the Borrower and (ii)
such joint venture, partnership or other Person is engaged in a Similar
Business. Any such designation or designation to the contrary shall be evidenced
to the Administrative Agent by promptly filing with the Administrative Agent a
copy of the resolution giving effect to such designation and an Officers'
Certificate certifying that such designation complied with the foregoing
provisions.

                  "PERMITTED LIENS" means (i) Liens securing Senior Debt of the
Borrower or any Guarantor that was permitted by the terms of this Agreement to
be incurred; (ii) Liens in favor of the Borrower or any Guarantor; (iii) Liens
on property of a Person existing at the time such Person is merged into or
consolidated with the Borrower or any Restricted Subsidiary of the Borrower;
provided that such Liens were in existence prior to the contemplation of such
merger or consolidation and do not extend to any assets other than those of the
Person merged into or consolidated with the Borrower; (iv) Liens on property
existing at the time of acquisition thereof by the Borrower or any Subsidiary of
the Borrower; provided, that such Liens were in existence prior to the
contemplation of such acquisition and do not extend to any other assets of the
Borrower or any of its Restricted Subsidiaries; (v) Liens to secure the
performance of statutory obligations, surety or appeal bonds, performance bonds
or other obligations of a like nature incurred in the ordinary course of
business; (vi) Liens to secure Indebtedness (including Capital Lease
Obligations) permitted by clause (iv) of the second paragraph of Section 4.7
covering only the assets acquired with such Indebtedness; (vii) Liens existing
on the Funding Date; (viii) Liens for taxes, assessments or governmental charges
or claims that are not yet delinquent or that are being contested in good faith
by appropriate proceedings promptly instituted and diligently concluded;
provided that any reserve or other appropriate provision as shall be required in
conformity with GAAP shall have been made therefor; (ix) Liens incurred in the
ordinary course of business of the Borrower or any Restricted Subsidiary of the
Borrower with respect to obligations that do not exceed $5.0 million at any one
time outstanding; (x) Liens on assets of Guarantors to secure Senior Debt of
such Guarantors that was

                                      -15-
<PAGE>

permitted by this Agreement to be incurred; (xi) Liens securing Permitted
Refinancing Indebtedness; provided, that any such Lien does not extend to or
cover any property, shares or debt other than the property, shares or debt
securing the Indebtedness so refunded, refinanced or extended; (xii) Liens
incurred or deposits made to secure the performance of tenders, bids, leases,
statutory obligations, surety and appeal bonds, government contracts,
performance and return of money bonds and other obligations of a like nature, in
each case incurred in the ordinary course of business (exclusive of obligations
for the payment of borrowed money); (xiii) Liens upon specific items of
inventory or other goods and proceeds of any Person securing such Person's
obligations in respect of bankers' acceptances issued or created for the account
of such Person to facilitate the purchase, shipment or storage of such inventory
or other goods in the ordinary course of business; (xiv) Liens encumbering
customary initial deposits and margin deposits, and other Liens incurred in the
ordinary course of business that are within the general parameters customary in
the industry, in each case securing Indebtedness under Hedging Obligations; and
(xv) Liens encumbering deposits made in the ordinary course of business to
secure nondelinquent obligations arising from statutory or regulatory,
contractual or warranty requirements of the Borrower or its Subsidiaries for
which a reserve or other appropriate provision, if any, as shall be required by
GAAP shall have been made.

                  "PERMITTED REFINANCING INDEBTEDNESS" means any Indebtedness of
the Borrower or any of its Subsidiaries issued in exchange for, or the net
proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Borrower or any of its Restricted Subsidiaries;
provided that: (i) the principal amount (or accreted value, if applicable) of
such Permitted Refinancing Indebtedness does not exceed the principal amount of
(or accreted value, if applicable), plus accrued interest on, the Indebtedness
so extended, refinanced, renewed, replaced, defeased or refunded (plus the
amount of reasonable expenses and prepayment premiums incurred in connection
therewith); (ii) such Permitted Refinancing Indebtedness has a final maturity
date no earlier than the final maturity date of, and has a Weighted Average Life
to Maturity equal to or greater than the Weighted Average Life to Maturity of,
the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded; (iii) if the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded is subordinated in right of payment to the Bridge
Loans, such Permitted Refinancing Indebtedness is subordinated in right of
payment to the Bridge Loans on terms at least as favorable to the Lenders as
those contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded; and (iv) such Indebtedness
is incurred either by the Borrower or by the Restricted Subsidiary who is the
obligor on the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded.

                  "PERMITTED SECURITIES" means, with respect to any Asset Sale,
Voting Stock of a Person primarily engaged in one or more Similar Businesses;
provided, that after giving effect to the Asset Sale such Person shall becomes a
Restricted Subsidiary and a Guarantor.

                  "PERSON" means an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or other
entity of whatever nature.

                  "PLAN" means at a particular time, any employee benefit plan
which is covered by ERISA and in respect of which the Borrower or any Commonly
Controlled Entity maintains, administers, contributes to or is under which the
Borrower or any Commonly Controlled Entity may incur any liability.

                  "PREPAYMENT TRANSACTION" has the meaning specified in Section
2.4(a).

                                      -16-
<PAGE>

                  "PRINCIPALS"  means Lehman Brothers  Holdings,  Inc. and any
of its Affiliates, Lockheed Martin Corporation, Frank C. Lanza and Robert V.
LaPenta.

                  "PROPERTIES" has the meaning specified in Section 3.19.

                  "REGISTER" means the register maintained by the Administrative
Agent on behalf of the Borrower pursuant to Section 6.3.

                  "REGULATION D" means Regulation D of the Securities Act as the
same may be amended or supplemented from time to time.

                  "RELATED DOCUMENTS" means the Escrow Agreement; the Debt
Registration Rights Agreement; the Engagement Letter; and the Fee Letter.

                  "RELATED PARTY" with respect to any Principal means (i) any
controlling stockholder, 50% (or more) owned Subsidiary, or spouse or immediate
family member (in the case of an individual) of such Principal or (ii) any
trust, corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons beneficially holding a more than 50%
controlling interest of which consist of such Principal and/or such other
Persons referred to in the immediately preceding clause (i).

                  "REORGANIZATION" means, with respect to any Multiemployer
Plan, the condition that such plan is in reorganization within the meaning of
Section 4241 of ERISA.

                  "REPORTABLE EVENT" means any of the events set forth in
Section 4043(c) of ERISA, other than those events as to which the thirty-day
notice period is waived under the regulations of the PBGC.

                  "REPRESENTATIVE" means the indenture trustee or other trustee,
agent or representative for any Senior Debt.

                  "REQUIREMENT OF LAW" means as to any Person, the Certificate
of Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
any of its Property is subject.

                  "RESTRICTED INVESTMENT" means an Investment other than a
Permitted Investment.

                  "RESTRICTED PAYMENTS" has the meaning specified in Section
4.5.

                  "RESTRICTED SUBSIDIARY" means, with respect to any Person,
each Subsidiary of such Person that is not an Unrestricted Subsidiary.

                  "S&P" means Standard & Poor's Rating Service, a division of
The McGraw-Hill Companies.

                   "SEC" means the Securities and Exchange Commission (or
successors thereto or an analogous Governmental Authority).

                  "SECURITIES ACT" means the Securities Act of 1933, as amended.

                  "SENIOR CREDIT FACILITIES" means the Second Amended and
Restated 364 Day Credit Agreement, dated as of May 16, 2001, among the Borrower
and a syndicate of banks and other financial

                                      -17-
<PAGE>

institutions led by BOA, as administrative agent, and Lehman Commercial Paper
Inc., as syndication agent and documentation agent, and the Third Amended and
Restated Credit Agreement, dated as of May 16, 2001, among the Borrower and a
syndicate of banks and other financial institutions led by BOA, as
administrative agent, and Lehman Commercial Paper Inc., as syndication agent and
documentation agent, and any related notes, collateral documents, letters of
credit and guarantees, including any appendices, exhibits or schedules to any of
the foregoing (as the same may be in effect from time to time), in each case, as
such agreements may be amended, modified, supplemented or restated from time to
time, or refunded, refinanced, restructured, replaced, renewed, repaid or
extended from time to time (whether with the original agents and lenders or
other agents and lenders or otherwise, and whether provided under the original
credit agreements or other credit agreements or otherwise).

                  "SENIOR DEBT" means (i) all Indebtedness of the Borrower or
any of its Restricted Subsidiaries outstanding under Credit Facilities and all
Hedging Obligations with respect thereto, (ii) any other Indebtedness permitted
to be incurred by the Borrower or any of its Restricted Subsidiaries under the
terms of the Agreement, in each case, unless the instrument under which such
Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Bridge Loans and (iii) all Obligations
with respect to the foregoing. Notwithstanding anything to the contrary in the
foregoing, Senior Debt will not include (i) any liability for federal, state,
local or other taxes owed or owing by the Borrower, (ii) any Indebtedness of the
Borrower to any of its Subsidiaries or other Affiliates, (iii) any trade
payables or (iv) any Indebtedness that is incurred in violation of this
Agreement.

                  "SIGNIFICANT SUBSIDIARY" means any Subsidiary which is a
"significant subsidiary" within the meaning of Rule 405 under the Securities
Act, as such Regulation is in effect on the date hereof.

                  "SIMILAR BUSINESS" means a business, a majority of whose
revenues in the most recently ended calendar year were derived from (i) the sale
of defense products, electronics, communications systems, aerospace products,
avionics products and/or communications products, (ii) any services related
thereto, (iii) any business or activity that is reasonably similar thereto or a
reasonable extension, development or expansion thereof or ancillary thereto, and
(iv) any combination of any of the foregoing.

                  "SINGLE EMPLOYER PLAN" means any Plan which is covered by
Title IV of ERISA but is not a Multiemployer Plan.

                  "SOLVENT" means, when used with respect to any Person, means
that, as of any date of determination, (a) the amount of the "present fair
saleable value" of the assets of such Person will, as of such date, exceed the
amount of all "liabilities of such Person, contingent or otherwise," as of such
date, as such quoted terms are determined in accordance with applicable federal
and state laws governing determinations of the insolvency of debtors, (b) the
present fair saleable value of the assets of such Person will, as of such date,
be greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with
which to conduct its business, and (d) such Person will be able to pay its debts
as they mature. For purposes of this definition, (i) "debt" means liability on a
"claim," and (ii) "claim" means any (x) right to payment, whether or not such a
right is reduced to judgment, liquidated, unliquidated, fixed, contingent,
matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured
or (y) right to an equitable remedy for breach of performance if such breach
gives rise to a right to payment, whether or not such right to an equitable
remedy is reduced to judgment, fixed, contingent, matured or unmatured,
disputed, undisputed, secured or unsecured.

                  "STATED MATURITY" means, with respect to any installment of
interest or principal on any series of Indebtedness, the date on which such
payment of interest or principal was scheduled to be paid

                                      -18-
<PAGE>

in the original documentation governing such Indebtedness, and shall not include
any contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

                  "SUBSIDIARY" means, as to any Person, a corporation,
partnership, limited liability company or other entity of which shares of stock
or other ownership interests having ordinary voting power (other than stock or
such other ownership interests having such power only by reason of the happening
of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned,
or the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person. Unless otherwise
qualified, all references to a "Subsidiary" or to "Subsidiaries" in this
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

                  "SUBSIDIARY GUARANTEE" means, as to any Guarantor, the
Guarantee of the Bridge Loans given by such Guarantor, whether evidenced by its
execution of this Agreement or a separate instrument.

                  "TAXES" has the meaning specified in Section 2.8(a).

                  "TRANSACTIONS" means, collectively, the Acquisition, the
related financing transactions and each of the other transactions contemplated
by the Transaction Documents.

                  "TRANSACTION DOCUMENTS" means the Loan Documents and the
Acquisition Documents.

                  "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939,
as amended.

                  "UNRESTRICTED SUBSIDIARY" means any Subsidiary that is
designated by the Board of Directors as an Unrestricted Subsidiary pursuant to a
resolution of the Board of Directors, but only to the extent that such
Subsidiary: (i) has no Indebtedness other than Non-Recourse Debt; (ii) is not
party to any agreement, contract, arrangement or understanding with the Borrower
or any Restricted Subsidiary of the Borrower unless the terms of any such
agreement, contract, arrangement or understanding are no less favorable to the
Borrower or such Restricted Subsidiary than those that might be obtained at the
time from Persons who are not Affiliates of the Borrower; (iii) is a Person with
respect to which neither the Borrower nor any of its Restricted Subsidiaries has
any direct or indirect obligation (A) to subscribe for additional Equity
Interests or (B) to maintain or preserve such Person's financial condition or to
cause such Person to achieve any specified levels of operating results; (iv) has
not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Borrower or any of its Restricted Subsidiaries; and (v)
has at least one director on its board of directors that is not a director or
executive officer of the Borrower or any of its Restricted Subsidiaries and has
at least one executive officer that is not a director or executive officer of
the Borrower or any of its Restricted Subsidiaries. Any such designation by the
Board of Directors shall be evidenced to the Administrative Agent by filing with
the Administrative Agent a certified copy of the resolution of the Board of
Directors giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the foregoing conditions and was
permitted by Section 4.5. If, at any time, any Unrestricted Subsidiary would
fail to meet the foregoing requirements as an Unrestricted Subsidiary, it shall
thereafter cease to be an Unrestricted Subsidiary for purposes of this Agreement
and any Indebtedness of such Subsidiary shall be deemed to be incurred by a
Restricted Subsidiary of the Borrower as of such date (and, if such Indebtedness
is not permitted to be incurred as of such date under Section 4.7, the Borrower
shall be in default of such covenant). The Board of Directors of the Borrower
may at any time designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided that such designation shall be deemed to be an incurrence
of Indebtedness by a Restricted Subsidiary of the Borrower of any outstanding
Indebtedness of such Unrestricted Subsidiary and such designation shall only be
permitted if (i) such

                                      -19-
<PAGE>

Indebtedness is permitted under Section 4.7, calculated on a pro forma basis as
if such designation had occurred at the beginning of the four-quarter reference
period, and (ii) no Default or Event of Default would be in existence following
such designation.

     "VOTING STOCK" of any Person as of any date means the Capital Stock of such
Person that is at the time entitled to vote in the election of the Board of
Directors of such Person.

     "WEIGHTED AVERAGE LIFE TO MATURITY" means, when applied to any Indebtedness
at any date, the number of years obtained by dividing (i) the sum of the
products obtained by multiplying (A) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect thereof, by (B) the
number of years (calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment, by (ii) the then outstanding principal
amount of such Indebtedness.

     "WHOLLY OWNED" means, when used with respect to any Subsidiary or
Restricted Subsidiary of a Person, a Subsidiary (or Restricted Subsidiary, as
appropriate) of such Person all of the outstanding Capital Stock or other
ownership interests of which (other than directors' qualifying shares) shall at
the time be owned by such Person or by one or more Wholly Owned Subsidiaries (or
Wholly Owned Restricted Subsidiaries, as appropriate) of such Person and one or
more Wholly Owned Subsidiaries (or Wholly Owned Restricted Subsidiaries, as
appropriate) of such Person.

     Section 1.2 INTERPRETATION. In this Agreement, the singular includes the
plural and the plural includes the singular; words implying any gender include
the other genders; references to any section, exhibit or schedule are to
sections, exhibits or schedules hereto unless otherwise indicated; references to
statutes are to be construed as including all statutory provisions
consolidating, amending or replacing the statute referred to; references to
"writing" include printing, typing, lithography and other means of reproducing
words in a visible form; "including" following a word or phrase shall not be
construed to limit the generality of such word or phrase; and an accounting term
not otherwise defined has the meaning assigned to it in accordance with GAAP.

                                    ARTICLE 2
                               THE BRIDGE FACILITY

     Section 2.1 BRIDGE LOANS COMMITMENTS; PROCEDURE FOR BORROWING.

     (a) In reliance upon the representations and warranties of the Borrower
herein and subject to the terms and conditions hereof, each of the Lenders
severally (but not jointly) agrees to make a Bridge Loan to the Borrower on the
Funding Date in an amount not to exceed the amount of such Lender's Commitment.
The Commitments shall automatically terminate upon the earliest of (i) the
funding of the Bridge Loans on the Funding Date in accordance with this Section
2.1, (ii) the termination of the Asset Purchase Agreement in accordance with its
terms, (iii) the consummation of the Acquisition without the funding of the
Bridge Loans and (iv) 5:00 p.m., New York City time, on April 15, 2002.

     (b) The Borrower shall give the Administrative Agent irrevocable notice
(which notice must be received by the Administrative Agent prior to 12:00 noon,
New York City time, three Eurodollar Business Days prior to the anticipated
Funding Date) requesting that the Lenders make the Bridge Loans on the Funding
Date and specifying the amount to be borrowed. Upon receipt of such notice the
Administrative Agent shall promptly notify each Lender thereof. Not later than
12:00 Noon, New York City time, on the Funding Date each Lender shall make
available to the Administrative Agent at the Funding Office an amount in
immediately available funds equal to the Bridge Loan to be made by such Lender.
The Administrative Agent shall make available to the Borrower the aggregate of
the amounts

                                      -20-
<PAGE>

made available to the Administrative Agent by the Lenders in like funds as
received by the Administrative Agent.

     (c) The Commitment of each Lender shall be reduced to zero immediately
after the making of a Bridge Loan by such Lender on the Funding Date. The unpaid
principal amount of the Bridge Loans, together with all accrued and unpaid
interest thereon, shall become due and payable on the Maturity Date. For Bridge
Loans outstanding after the Maturity Date, interest will be payable on demand at
the rate provided in Section 2.3(c).

     (d) The Borrower agrees to pay the original Lenders named on the signature
pages to this Agreement (in proportion to the aggregate amount funded by such
Lender on the Funding Date), for their own accounts, a funding fee based upon
the principal amount of Bridge Loans outstanding on the dates set forth below,
payable as follows:

     Basis
    Points                        Due Date
    ------                        --------
      25                90 days after the Funding Date
      25                180 days after the Funding Date
      25                270 days after the Funding Date

     Section 2.2 MANDATORY EXCHANGE OF BRIDGE LOANS FOR EXCHANGE NOTES.

     (a) If the Bridge Loans are not repaid in full on or prior to the one-year
anniversary of the Funding Date, then on such anniversary date, following
payment by the Company of all interest and fees accrued on or in respect of the
Bridge Loans to such date (including the fees contemplated by Section 2.1), each
Bridge Loan will be automatically converted into an Exchange Note having a
principal amount equal to the principal amount of that Bridge Loan (the
"EXCHANGE DATE"). From and after the Exchange Date, all outstanding Notes will
be converted into the right to receive a like principal amount of Exchange
Notes. Each Lender will deliver its Notes to the Administrative Agent on the
Exchange Date (or as soon thereafter as practicable), and the Administrative
Agent will deliver all such Notes to the Escrow Agent on the Exchange Date (or
as soon thereafter as practicable). The Exchange Notes will be governed by and
construed in accordance with the provisions of the Exchange Note Indenture. The
Exchange Notes will be dated the Exchange Date and will be guaranteed by all of
the Guarantors.

     (b) The Exchange Notes will be authenticated and released from escrow on
the terms and pursuant to the procedures provided in the Escrow Agreement.

     (c) Each Exchange Note issued pursuant to this Section 2.2 shall bear
interest from and after the Exchange Date at a fixed rate equal to the
yield-to-maturity (as calculated by the Administrative Agent) on the Borrower's
highest yielding Existing Senior Subordinated Indebtedness as of 5:00 p.m. (New
York City time) on the Business Day immediately preceding the Exchange Date,
plus 100 basis points.

                                      -21-
<PAGE>

     Section 2.3 INTEREST AND DEFAULT INTEREST.

     (a) INTEREST RATE APPLICABLE TO BRIDGE LOANS. Subject to Section 2.3(c),
the unpaid principal balance of each Bridge Loan shall bear interest for each
day during each Interest Period with respect thereto at a rate per annum equal
to the Interest Rate then in effect.

     (b) BASIS OF COMPUTATION OF INTEREST; PAYMENT OF INTEREST. All interest
(including default interest, if any) shall be calculated on the basis of the
actual number of days elapsed and a 360-day year and shall be payable in arrears
by the Borrower not later than 12:00 noon (New York City time) on each Interest
Payment Date by wire transfer of immediately available funds in accordance with
Section 2.7.

     (c) DEFAULT INTEREST. (i) If the Borrower shall default in the payment of
the principal of or interest on any Bridge Loan by acceleration or otherwise,
until such amount (plus all accrued and unpaid interest) is paid in full, the
Borrower shall on demand from time to time pay interest, to the extent permitted
by law, on such defaulted amount to but excluding the date of actual payment
(after as well as before judgment) to the extent lawful, at a rate per annum
equal to 200 basis points in excess of the then current Interest Rate on the
Loans. The Borrower shall pay such default interest in cash on demand from time
to time.

     Section 2.4 MANDATORY PREPAYMENT.

     (a) The Borrower shall prepay the Bridge Loans ratably in accordance with
the aggregate outstanding principal balances thereof with the Net Cash Proceeds
of: (i) any direct or indirect public offering or private placement of the
Permanent Securities, or any other debt securities of the Borrower or any of its
Subsidiaries or any Equity Interests of the Borrower or any direct or indirect
parent holding company of the Borrower, including, without limitation, Holdings;
(ii) the incurrence of any other Indebtedness by the Borrower or any Subsidiary
of the Borrower or any direct or indirect parent holding company of the
Borrower, including, without limitation, Holdings (other than under the Senior
Credit Facilities as in effect on the date hereof and Permitted Indebtedness);
and (iii) any future issuance or sale of stock of Subsidiaries or any Asset Sale
by the Borrower or any Subsidiary of the Borrower after the Funding Date (each
of the transactions in the foregoing clauses (i), (ii) and (iii), a "PREPAYMENT
TRANSACTION"). Notwithstanding the foregoing sentence, the Borrower shall not be
required to prepay the Bridge Loans with the Net Cash Proceeds received by the
Borrower or any Subsidiary from an Asset Sale (a) if the Borrower is required to
apply such Net Cash Proceeds to prepay loans and permanently reduce commitments
pursuant to the Senior Credit Facilities (and does so apply such Net Cash
Proceeds) or (b) in the case of any sale of assets of PerkinElmer, Inc. for Net
Cash Proceeds aggregating up to $75.0 million since the date of this Agreement;
provided that such Net Cash Proceeds are re-invested in the Borrower and its
Subsidiaries in accordance with the provisions of the Senior Credit Facilities
as in effect on the date of this Agreement. Subject to the preceding sentence,
the Borrower shall, not later than the third Business Day following the receipt
of Net Cash Proceeds with respect to any Prepayment Transaction, apply such Net
Cash Proceeds to prepay the Bridge Loans pursuant to this Section 2.4, without
premium or penalty, by paying to each Lender an amount equal to 100% of such
Lender's pro rata share of the aggregate principal amount of the Bridge Loans to
be prepaid, plus all accrued fees and all accrued and unpaid interest thereon to
the date of prepayment.

     (b) Holdings hereby agrees to be bound by the foregoing provision and
agrees to contribute the net proceeds of any issuance of its Equity Interests to
the Borrower as common equity capital promptly upon the receipt of such net
proceeds.

                                      -22-
<PAGE>

     Section 2.5 OPTIONAL PREPAYMENT. The Borrower may, upon three Business
Days' prior written notice to the Administrative Agent, prepay the Bridge Loans
at any time, in whole or in part, on a pro rata basis, by paying to each
applicable Lender an amount equal to 100% of such Lender's pro rata share of the
aggregate principal amount of Bridge Loans to be prepaid, plus accrued and
unpaid interest thereon to the prepayment date. Upon receipt of any such notice,
the Administrative Agent shall promptly notify each Lender thereof. Once such
notice is sent or mailed, the Bridge Loans to be prepaid shall become due and
payable on the prepayment date set forth in such notice. Such notice may not be
conditional.

     Section 2.6 BREAKAGE COSTS; INDEMNITY. The Borrower agrees to indemnify
and hold each Lender harmless from and against any loss or expense which such
Lender sustains or incurs as a consequence of:

     (a) the failure by the Borrower to borrow Bridge Loans on the Funding Date
after the Borrower has given a notice with respect thereof in accordance with
Section 2.1;

     (b) default by the Borrower in making any prepayment after the Borrower has
given a notice thereof in accordance with the provisions of Section 2.4 or 2.5,
as applicable; or

     (c) the mandatory or optional prepayment of Bridge Loans on a day that is
not the last day of an Interest Period (but excluding loss of margin).

Such indemnification may include an amount equal to the excess, if any, of (i)
the amount of interest which would have accrued on the amount so prepaid, or not
so borrowed, for the period from the date of such prepayment or of such failure
to borrow to the last day of such Interest Period (or, in the case of a failure
to borrow, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans provided
for herein (but excluding loss of margin) over (ii) the amount of interest (as
reasonably determined by such Lender) which would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank eurodollar market. Each Lender claiming any
payment pursuant to this Section 2.6 shall do so by giving notice thereof to the
Borrower and the Administrative Agent (showing calculation of the amount claimed
in reasonable detail) within 60 Business Days after a failure to borrow, or to
prepay, after notice or after a prepayment of Bridge Loans on a day which is not
the last day of an Interest Period therefor. This covenant shall survive the
termination of this Agreement and the payment of all of the Bridge Loans and all
other amounts payable hereunder.

     Section 2.7 PAYMENTS.

     (a) WIRE TRANSFER. The principal of, fees, premium, if any, and interest on
each Bridge Loan and all other Obligations arising under the Loan Documents
shall be payable by wire transfer in immediately available funds (in United
States dollars) to the Administrative Agent for the respective accounts of the
Lenders set forth below their signatures on the signature pages of this
Agreement or otherwise designated in the Register from time to time to the
Borrower by the Administrative Agent at least three Business Days prior to the
due date therefor.

     (b) PAYMENTS ON BUSINESS DAYS. If any payment to be made hereunder or under
any Bridge Loan shall be due on a day other than a Eurodollar Business Day, such
payment shall be made on the next succeeding Eurodollar Business Day (and such
extension of time shall be included in computing interest in connection with
such payment); provided, however, that if such succeeding Eurodollar Business
Day falls in the next calendar month or quarter, as applicable, such payment
shall be made on the next preceding Eurodollar Business Day.

                                      -23-
<PAGE>

     (c) NO DEFENSE. To the fullest extent permitted by law, the Borrower and
the Guarantors shall make all payments hereunder and under the Notes regardless
of any defense (other than the defense of payment) or counterclaim.

     (d) ALLOCATION. Any money paid to, received by, or collected by the
Administrative Agent or any Lender pursuant to this Agreement or any other Loan
Document, shall be applied in the following order, at the date or dates fixed by
the Administrative Agent:

                  FIRST: to any unpaid fees and reimbursement or unpaid expenses
         of the Administrative Agent hereunder and under the Fee Letter;

                  SECOND: to the payment of all costs, expenses, other fees,
         commissions and taxes owing to any Lender hereunder;

                  THIRD: to the indefeasible payment of all accrued interest to
         the date of such payment or collection; and

                  FOURTH: to the indefeasible payment of the amounts then due
         and unpaid under this Agreement, the Notes or any other Loan Document
         for principal, in respect of which or for the benefit of which such
         money has been paid or collected, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Notes for principal.

     Section 2.8 TAXES.

     (a) TAXES. Any and all payments by the Borrower and each Guarantor
hereunder or under the Bridge Loans or any other Loan Document shall be made, in
accordance with Section 2.7 or the other applicable provision of the applicable
Loan Document, free and clear of and without deduction or withholding for or on
account of any and all present or future taxes, levies, imposts, deductions,
charges or withholdings now or hereafter imposed, levied, collected, withheld or
assessed by any Governmental Authority, excluding net income, franchise or
similar taxes imposed or levied on the Administrative Agent or the Lenders as a
result of a present or former connection between the Administrative Agent or the
Lenders and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Administrative Agent or such Lenders
having executed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement) (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings being hereinafter referred to as
"TAXES"). If the Borrower or any Guarantor shall be required by law to deduct or
withhold any Taxes from, or in respect of, any sum payable hereunder or under
the Notes or any other Loan Document to the Administrative Agent or the Lenders:
(i) the sum payable thereunder shall be increased as may be necessary so that
after making all required deductions or withholdings (including deductions or
withholdings applicable to additional sums payable under this Section 2.8) the
Administrative Agent or the Lenders receives an amount equal to the sum it would
have received had no such deductions or withholdings been made; (ii) the
Borrower or such Guarantor, as the case may be, shall make such deductions or
withholdings; and (iii) the Borrower or such Guarantor, as the case may be,
shall pay the full amount deducted to the relevant tax authority or other
authority in accordance with applicable laws; provided that the Borrower and the
Guarantors shall not be required to increase such payments, or pay such amounts
to any Non-U.S. Lender with respect to deductions or withholding that are
imposed on amounts payable to such Non-U.S. Lender at the time such Lender
becomes a party to this Agreement (except, in the case of a Non-U.S. Lender
becoming a party to this Agreement as a result of an assignment, to the extent
such Non-U.S. Lender's assignor is entitled to a greater payment or additional
amount from the Borrower pursuant to this Section 2.8 at the time of the

                                      -24-
<PAGE>

assignment) or that are attributable to such Non-U.S. Lender's failure to comply
with Section 2.8(g). Whenever any Taxes are payable by the Borrower, as promptly
as possible thereafter, the Borrower shall send to the Administrative Agent for
its own account or for the account of a Lender, as the case may be, a certified
copy of an original official receipt, if any, received by the Borrower showing
payment thereof, or, if such receipt is not available, any other proof of
payment reasonably satisfactory to the Administrative Agent.

     (b) OTHER TAXES. In addition, the Borrower and each of the Guarantors
agrees to pay any present or future stamp, mortgage recording or documentary
taxes or any other excise or property taxes, charges or similar levies which
arise from any payment made hereunder or under the Note, other Loan Documents or
from the execution, delivery or registration of, or otherwise with respect to,
this Agreement or the other Loan Documents (hereinafter referred to as "OTHER
TAXES") and hold the Administrative Agent and each Lender harmless from and
against any and all liabilities with respect to or resulting from any delay or
omission (other than to the extent attributable to such Lender) to pay such
Other Taxes.

     (c) INDEMNITY. The Borrower and the Guarantors will indemnify the
Administrative Agent and any Lender for the full amount of Taxes or Other Taxes
arising in connection with payments made under this Agreement or any other Loan
Document (including, without limitation, any Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 2.8) paid by the
Administrative Agent or any Lender and any liability (including penalties,
additions to tax interest and expenses) arising therefrom or with respect
thereto. Payment under this indemnification shall be made within 30 days from
the date the Administrative Agent or any Lender makes written demand therefor;
provided, however, that the Borrower and the Guarantors shall not be obligated
to make payment to the Lender or the Administrative Agent (as the case may be)
pursuant to this Section 2.8(c) in respect of penalties, interest and other
liabilities attributable to any Taxes or Other Taxes, if written demand therefor
has not been made by such Lender or the Administrative Agent within 60 days from
the date on which such Lender or the Administrative Agent received written
notice of the imposition of Taxes or Other Taxes by the relevant taxing or
Governmental Authority, but only to the extent such penalties, interest and
other similar liabilities are attributable to such failure or delay by the
Administrative Agent or the Lender in making such written demand; provided,
further, that the Borrower and the Guarantors shall not be required to indemnity
pursuant to this Section 2.8(c) any Non-U.S. Lender that fails to comply with
Section 2.8(g). After the Lender or the Administrative Agent (as the case may
be) receive written notice of the imposition of the Taxes or Other Taxes which
are subject to this Section 2.8(c), such Lender and Administrative Agent will
promptly notify the Borrower and the Guarantors of their obligations hereunder;
provided, however, that the failure to so act shall not, standing alone, affect
the rights of the Administrative Agent or the Lenders under this Section 2.8(c).

     (d) FURNISH EVIDENCE TO ADMINISTRATIVE AGENT. The Borrower will make
reasonable efforts to obtain certified copies of tax receipts evidencing the
payment of any Taxes deducted or withheld from each taxing authority imposing
such Taxes. The Borrower will furnish to the Administrative Agent, within 60
days after the date the payment of any Taxes so deducted or withheld are due
pursuant to applicable law, original or certified copies of tax receipts
evidencing such payment by the Borrower or, if such receipts are not obtainable,
other evidence of such payments by the Borrower reasonably satisfactory to the
Administrative Agent.

     (e) SURVIVAL. Without prejudice to the survival of any other agreement of
the Borrower or any Guarantor hereunder, the agreements and obligations of the
Borrower and the Guarantors contained in this Section 2.8 shall survive the
payment in full of all amounts due hereunder and under the Notes.

                                      -25-
<PAGE>

     (f) MITIGATION. If the Borrower or any Guarantor (as the case may be) is
required to pay additional amounts to or for the account of any Lender pursuant
to this Section 2.8 as a result of a change in any Requirement of Law or the
interpretation or application thereof occurring after such Lender first became a
party to this Agreement, then such Lender will, at the request of the Borrower
or such Guarantor, change the jurisdiction in which its Bridge Loans are
maintained if such change (i) will eliminate or reduce any such additional
payment which may thereafter accrue and (ii) is, in such Lender's, reasonable
discretion, determined not to be disadvantageous to such Lender.

     (g) NON-U.S. LENDERS. Each Lender (or transferee) that is not a corporation
or partnership created or organized in or under the laws of the United States,
any estate that is subject to U.S. U.S. federal income taxation regardless of
the source of its income or any trust which is subject to the primary
supervision of a court within the United States and one or more United States
persons has the authority to control all substantial decisions of the trust as
described in section 7701(a)(30) of the Code (a "NON-U.S. LENDER") shall deliver
to the Borrower and the Administrative Agent (or, in the case of a Participant,
to the Lender from which the related participation shall have been purchased) on
or before the date on which it becomes a party to this Agreement (or, in the
case of a Participant, on or before the date on which such Participant purchases
the related participation) either:

                  (A) two duly completed and signed copies of either Internal
         Revenue Service Form W-8 BEN (relating to such Non-U.S. Lender and
         entitling it to a complete exemption from withholding of United States
         Taxes on all amounts to be received by such Non-U.S. Lender pursuant to
         this Agreement, the other Loan Documents under an applicable treaty) or
         Form W-8 ECI (relating to all amounts to be received by such Non-U.S.
         Lender pursuant to this Agreement, the other Loan Documents), or
         successor and related applicable forms, as the case may be; or

                  (B) in the case of a Non-U.S. Lender that is not a "bank"
         within the meaning of Section 881(c)(3)(A) of the Code and that does
         not comply with the requirements of clause (A) hereof, (x) a statement
         in the form of Exhibit G (or such other form of statement as shall be
         reasonably requested by the Borrower or the Administrative Agent from
         time to time) to the effect that such Non-U.S. Lender is eligible for a
         complete exemption from withholding of U.S. Taxes under Code Section
         871(h) or 881(c), and (y) two duly completed and signed copies of
         Internal Revenue Service Form W-8 BEN (relating to its status as a
         non-United States person) or successor and related applicable form (it
         being understood that no Participant and, without the prior written
         consent of the Borrower described in Section 6.1(a), no Assignee shall
         be entitled to deliver any forms or statements under this clause (B),
         but rather shall be required to deliver forms pursuant to clause (A) of
         this Section 2.8(g)).

Further, each Non-U.S. Lender agrees (i) to deliver to the Borrower and the
Administrative Agent, and if applicable, the assigning Lender (or, in the case
of a Participant, to the Lender from which the related participation shall have
been purchased) two further duly completed and signed copies of such Forms W-8
BEN or W-8 ECI, as the case may be, or successor and related applicable forms,
on or before the date that any such form expires or becomes obsolete and
promptly after the occurrence of any event requiring a change from the most
recent form(s) previously delivered by it to the Borrower or the Administrative
Agent (or, in the case of a Participant, to the Lender from which the related
participation shall have been purchased) in accordance with applicable United
States laws and regulations and (ii) in the case of a Non-U.S. Lender that
delivers a statement in the form of Exhibit G (or such other form of statement
as shall have been requested by the Borrower), to deliver to the Borrower and
the Administrative Agent, and, if applicable, the assigning Lender, such
statement on an annual basis on the anniversary of the date on which such
Non-U.S. Lender became a party to this Agreement and to deliver promptly to the
Borrower and the Administrative Agent, and, if applicable, the assigning Lender,
such additional statements and forms as shall be reasonably requested by the
Borrower from time to time; unless, in any such case, any

                                      -26-
<PAGE>

change in law or regulation has occurred subsequent to the date such Lender
became a party to this Agreement (or in the case of a Participant, the date on
which such Participant purchased the related Participation) which renders all
such forms inapplicable or which would prevent such Lender (or Participant) from
properly completing and executing any such form with respect to it and such
Lender promptly notifies the Borrower and the Administrative Agent (or, in the
case of a Participant, the Lender from which the related participation shall
have been purchased) if it is no longer able to deliver, or if it is required to
withdraw or cancel, any form or statement previously delivered by it pursuant to
this Section 2.8(g). Each Non-U.S. Lender agrees to indemnify and hold harmless
the Borrower as a result of the failure of the Borrower to comply with its
obligations to deduct or withhold any Taxes from any payments made pursuant to
this Agreement to such Non-U.S. Lender or the Administrative Agent, which
failure resulted from the Borrower's reliance on any form, statement,
certificate or other information provided to it by such Non-U.S. Lender pursuant
to clause (B) or clause (ii) of this Section 2.8(g). A Non-U.S. Lender shall not
be required to deliver any form or statement pursuant to the immediately
preceding sentences in this Section 2.8(g) that such Non-U.S. Lender is not
legally able to deliver (it being understood and agreed that the Borrower shall
withhold or deduct such amounts from any payments made to such Non-U.S. Lender
that the Borrower reasonably determines are required by law and that withholding
or deduction resulting from a failure to comply with this paragraph (g) shall
not be subject to payment or indemnity by the Borrower pursuant to this Section
2.8; provided, however, that if a Non-U.S. Lender's failure to so comply is
caused by a change in law (or interpretation thereof) that becomes effective
after the Funding Date, any withholding or deduction resulting therefrom shall
be subject to payment and indemnity by the Borrower under this Section 2.8);
provided, further, however, that if such change in law provides that such
Non-U.S. Lender is entitled to an exemption from or reduction of withholding tax
with respect to payments under this Agreement or the other Loan Documents, such
Non-U.S. Lender shall deliver to the Borrower, at the time or times prescribed
by applicable law or reasonably requested by the Borrower, such properly
completed and executed documentation prescribed by applicable law as will permit
such payments to be made without withholding or at a reduced rate. If the
Guarantor makes any payment to any Non-U.S. Lender under any Loan Document, the
foregoing provisions of this Section 2.8(g) shall apply to such Non-U.S. Lender
and such Guarantor as if such Guarantor were the Borrower (but a Non-U.S. Lender
shall not be required to provide any form or make any statement to any such
Guarantor unless such Non-U.S. Lender has received a request to do so from such
Guarantor and has a reasonable time to comply with such request).

                  Nothing in this Section 2.8 shall oblige any Lender to
disclose to the Borrower or any other person any information regarding its tax
affairs or tax computations (except to the extent any such information may be
contained in the forms described in clauses (A) and (B) of this Section 2.8(g))
or interfere with the right of any Lender to arrange its tax affairs in whatever
manner it thinks fit and, in particular, no Lender shall be under any obligation
to claim relief from its corporate profits or similar tax liability in credits
or deductions available to it and, if it does claim, the extent, order and
manner in which it does so shall be at its absolute discretion.

     (h) If a Lender shall become aware that it is entitled to receive a refund
(whether by way of a direct payment or by offset) in respect of any Taxes paid
by the Borrower, which refund, in the good faith judgment of such Lender, is
allocable to such payment made pursuant to this Section 2.8 and can be applied
for without prejudice to such Lender, it shall promptly notify the Borrower of
the availability of such refund and shall, within 30 days after the receipt of a
request from the Borrower, apply for such refund at the Borrower's sole expense.
If any Lender receives such refund (as described in the previous sentence), it
shall repay the amount of such refund (together with any interest received
thereon) to the Borrower if all the payments due under this Section 2.8 have
been paid in full.

                                      -27-
<PAGE>

     Section 2.9 RIGHT OF SET OFF, SHARING OF PAYMENTS, ETC.

     (a) RIGHT OF SET-OFF. In addition to any rights now or hereafter granted
under applicable law or otherwise, and not by way of limitation of any such
rights, upon the occurrence and during the continuance of any Event of Default
or if the Borrower becomes insolvent, however evidenced, the Borrower authorizes
each Lender at any time or from time to time, without presentment, demand,
protest or other notice of any kind to the Borrower or to any other Person, any
such notice being hereby expressly waived, to set off and to appropriate and
apply any and all deposits (general or special, time or demand, provisional or
final, whether or not collected or available) in any currency and any other
indebtedness at any time held or owing by such Lender or any of its Affiliates
(including, without limitation, by branches and agencies of such Lender wherever
located) to or for the credit or the account of the Borrower against and on
account of the Obligations of the Borrower to such Lender or its Affiliates
under this Agreement, the other Loan Documents including, without limitation,
all interests in or participations in the Obligations purchased by such Lender,
and all other claims of any nature or description arising out of or in
connection with this Agreement or any other Loan Document, irrespective of
whether or not such Lender shall have made any demand therefor. A Lender may
exercise such rights notwithstanding that the amounts concerned may be expressed
in different currencies and each Lender is authorized to effect any necessary
conversions at a market rate of exchange selected by it in good faith. A Lender
exercising its rights under this Section 2.9(a) shall provide prompt notice to
the Borrower and the Administrative Agent following such exercise.

     (b) SHARING. If any Lender shall obtain from the Borrower payment of any
principal of or interest on any Bridge Loan owing to it or payment of any other
amount under this Agreement, any Loan Document or any Notes held by it through
the exercise of any right of set-off, banker's lien or counterclaim or similar
right or otherwise (other than from the Administrative Agent as provided herein)
and, as a result of such payment, such Lender shall have received a greater
percentage of the principal of or interest on the Bridge Loans or such other
amounts then due to such Lender by the Borrower than the percentage received by
any other Lenders, it shall promptly purchase from such other Lenders
participations in (or, if and to the extent specified by such Lender, direct
interests in) the Bridge Loans or such other amounts, respectively, owing to
such other Lenders (or any interest due thereon, as the case may be) in such
amounts, and make such other adjustments from time to time as shall be
equitable, to the end that all the Lenders shall share the benefit of such
excess payment (net of any expenses which may be incurred by such Lender in
obtaining or preserving such excess payment) pro rata in accordance with the
unpaid principal of and/or interest on the Bridge Loans or such other amounts,
respectively, owing to each of the Lenders. To such end all the Lenders shall
make appropriate adjustments among themselves (by the resale of participations
sold or otherwise) if such payment is rescinded or must otherwise be restored.

     (c) NO REQUIREMENT. Nothing in this Agreement shall require any Lender to
exercise any right described in this Section 2.9 or shall affect the right of
any Lender to exercise, and retain the benefits of exercising, any such right
with respect to any other indebtedness or obligation of the Borrower. If, under
any applicable bankruptcy, insolvency or other similar law, any Lender receives
a secured claim in lieu of a set-off to which this Section 2.9 applies, such
Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of the Lenders entitled
under this Section 2.9 to share in the benefits of any recovery on such secured
claim.

                                      -28-
<PAGE>

     Section 2.10 CERTAIN FEES. The Borrower and each of the Guarantors hereby
jointly and severally agree to pay to each of the Lenders, for their own
accounts, the fees and expenses specified in the Fee Letter on the terms
described therein with respect to the Bridge Loans, the Exchange Notes and the
transactions contemplated by the Fee Letter and the Commitment Letter
(including, without limitation, the rollover fee and the refinancing fee
described therein).

     Section 2.11 EVIDENCE OF DEBT

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

     (b) The Administrative Agent, on behalf of the Borrower, shall maintain the
Register pursuant to Section 6.3, and a subaccount therein for each Lender, in
which shall be recorded (i) the amount of each Bridge Loan made hereunder and
any Note evidencing such Bridge Loan and each Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder and (iii) both
the amount of any sum received by the Administrative Agent hereunder from the
Borrower and each Lender's share thereof.

     (c) The entries made in the Register and the accounts of each Lender
maintained pursuant to Section 2.11(a) shall, to the extent permitted by
applicable law, and in the absence of any manifest error, be conclusive evidence
of the existence and amounts of the obligations of the Borrower therein
recorded. In the event of a discrepancy between the Register and any Lender's
books relating to such matters, the Register shall be controlling in the absence
of manifest error.

     (d) The Borrower agrees that, upon the request to the Administrative Agent
by any Lender, the Borrower will execute and deliver to such Lender a Note of
the Borrower evidencing any Bridge Loan, substantially in the form of Exhibit B,
with appropriate insertions as to date and principal amount.

     Section 2.12 REQUIREMENTS OF LAW.

     (a) If the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof or compliance by any Lender with any
request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the date hereof:

                  (i) shall subject any Lender to any tax of any kind whatsoever
         with respect to this Agreement or any Note, or change the basis of
         taxation of payments to such Lender in respect thereof (except for
         Taxes covered by Section 2.8 and changes in the rate of net income
         taxes, franchise taxes, branch profits taxes, minimum taxes or similar
         taxes of such Lender and any other taxes that are excluded from the
         definition of Taxes in Section 2.8);

                  (ii) shall impose, modify or hold applicable any reserve,
         special deposit, compulsory loan or similar requirement against assets
         held by, deposits or other liabilities in or for the account of,
         advances, loans or other extensions of credit by, or any other
         acquisition of funds by, any office of such Lender which is not
         otherwise included in the determination of the Interest Rate hereunder;
         or

                  (iii) shall impose on such Lender any other condition;

                                      -29-
<PAGE>

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making or maintaining
the Bridge Loans or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall promptly pay such Lender
upon written demand such additional amount or amounts as will compensate such
Lender for such increased cost or reduced amount receivable; provided that
before making any such demand, each Lender agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions and
so long as such efforts would not be disadvantageous to it, in its reasonable
discretion, in any legal, economic or regulatory manner) to designate a
different lending office if the making of such designation would allow the
Lender or its lending office to continue to perform its obligations to make
Bridge Loans or to maintain Bridge Loans and avoid the need for, or reduce the
amount of, such increased cost. If any Lender becomes entitled to claim any
additional amounts pursuant to this subsection, it shall promptly notify the
Borrower, through the Administrative Agent, of the event by reason of which it
has become so entitled. Each Lender shall notify the Borrower within 120 days
after it becomes aware of the imposition of such costs; provided that if such
Lender fails to so notify the Borrower within such 120-day period, such Lender
shall not be entitled to claim any additional amounts pursuant to this
subsection for any period ending on a date which is prior to 120 days before
such notification.

     (b) If any Lender shall have determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether or
not having the force of law) from any Governmental Authority made subsequent to
the date hereof shall have the effect of reducing the rate of return on such
Lender's or such corporation's capital as a consequence of its obligations
hereunder to a level below that which such Lender or such corporation could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender's or such corporation's policies with respect to capital adequacy)
by an amount deemed by such Lender to be material, then from time to time, after
submission by such Lender to the Borrower (with a copy to the Administrative
Agent) of a prompt written request therefor, the Borrower shall promptly pay to
such Lender such additional amount or amounts as will compensate such Lender for
such reduction. Each Lender shall notify the Borrower within 120 days after it
becomes aware of the imposition of such additional amount or amounts; provided
that if such Lender fails to so notify the Borrower within such 120-day period,
such Lender shall not be entitled to claim any additional amount or amounts
pursuant to this subsection for any period ending on a date which is prior to
120 days before such notification.

     (c) If any Lender becomes entitled to claim any additional amounts pursuant
to this Section 2.12, it shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so entitled.
A certificate as to any additional amounts payable pursuant to this subsection,
showing the calculation thereof in reasonable detail, submitted by such Lender
to the Borrower (with a copy to the Administrative Agent) shall be conclusive in
the absence of manifest error. The agreements in this Section 2.12 shall survive
the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

     (d) If the Borrower or any Guarantor (as the case may be) is required to
pay additional amounts to or for the account of any Lender pursuant to this
Section 2.12 as a result of a change in any Requirement of Law or the
application or interpretation thereof occurring after such Lender first became a
party to this Agreement, then such Lender will, at the request of the Borrower
or such Guarantor, change the jurisdiction in which its Bridge Loans are
maintained if such change (i) will eliminate or reduce any such additional
payment which may thereafter accrue and (ii) is, in such Lender's reasonable
discretion, determined not to be disadvantageous to such Lender.

                                      -30-
<PAGE>

     Section 2.13 Replacement of Lenders. If at any time (a) the Borrower
becomes obligated to pay additional amounts pursuant to Section 2.8, 2.12 or
2.16 as a result of any condition described in those sections, (b) any Lender
ceases to make Bridge Loans pursuant to Section 2.16, (c) any Lender becomes
insolvent and its assets become subject to a receiver, liquidator, trustee,
custodian or other Person having similar powers or (d) any Lender becomes a
Nonconsenting Lender (as defined below), then the Borrower may, on five Business
Days' prior written notice to the Administrative Agent and such Lender, replace
such Lender by causing such Lender to (and such Lender shall) assign pursuant to
Section 6.1 all of its rights and obligations under this Agreement to a Lender
or other entity selected by the Borrower and acceptable to the Administrative
Agent for a purchase price equal to the outstanding principal amount of such
Lender's Loans and all accrued interest and fees and other amounts payable
hereunder (including amounts payable under Section 2.6 as though such Loans were
being paid instead of being purchased); provided that (i) the Borrower shall
have no right to replace the Administrative Agent, (ii) neither the
Administrative Agent nor any Lender shall have any obligation to the Borrower to
find a replacement Lender, (iii) in the event of a replacement of a
Nonconsenting Lender or a Lender to which the Borrower becomes obligated to pay
additional amounts under Section 2.8, 2.12 or 2.16, in order for the Borrower to
be entitled to replace such a Lender, such replacement must take place no later
than 180 days after (A) the date the Nonconsenting Lender shall have notified
the Borrower and the Administrative Agent of its failure to agree to any
requested consent, waiver or amendment or (B) the Lender shall have demanded
payment of additional amounts under Section 2.8, 2.12 or 2.16, and (iv) in no
event shall the Lender hereby replaced be required to pay or surrender to its
replacement Lender or other entity any of the fees received by such Lender
hereby replaced pursuant to this Agreement. In the case of a replacement of a
Lender to which the Borrower becomes obligated to pay additional amounts under
this Section 2.13, the Borrower shall pay such additional amounts to such Lender
prior to such Lender being replaced and the payment of such additional amounts
shall be a condition to the replacement of such Lender. In the event that (x)
the Borrower or the Administrative Agent has requested the Lenders to consent to
a departure or waiver of any provisions of the Loan Documents, the Exchange
Notes or the Exchange Note Indenture or to agree to any amendment thereto, (y)
the consent, waiver or amendment in question requires the agreement of all
Lenders in accordance with the terms of Section 12.3 and (z) the Majority
Lenders have agreed to such consent, waiver or amendment, then any Lender who
does not agree to such consent, waiver or amendment shall be deemed a
"NONCONSENTING LENDER."

     Section 2.14 CERTAIN RULES RELATING TO THE PAYMENT OF ADDITIONAL AMOUNTS.

     (a) Upon request, and at the expense, of the Borrower, each Lender to which
the Borrower is required to pay any additional amount pursuant to Section 2.8 or
2.12 shall reasonably afford the Borrower the opportunity to contest, and
reasonably cooperate with the Borrower in contesting, the imposition of any
Taxes or other amounts giving rise to such payment; provided, that (i) such
Lender shall not be required to afford the Borrower the opportunity to so
contest unless the Borrower shall have confirmed in writing to such Lender its
obligation to pay such amounts pursuant to this Agreement and (ii) the Borrower
shall reimburse such Lender for its reasonable attorneys' and accountants' fees
and disbursements incurred in so cooperating with the Borrower in contesting the
imposition of such Taxes or other amounts.

     (b) Each Lender agrees that if it makes any demand for payment under
subsection 2.8 or 2.12(a), or if any adoption or change of the type described in
subsection 2.16 shall occur with respect to it, it will use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions and
so long as such efforts would not be disadvantageous to it, as determined in its
reasonable discretion) to designate a different lending office if the making of
such a designation would allow the Lender to continue to make and maintain
Bridge Loans and would reduce or obviate the need for the Borrower to make
payments under subsection 2.8 or 2.12(a), or would eliminate or reduce the
effect of any adoption or change described in subsection 2.16.

                                      -31-

<PAGE>

     Section 2.15 INABILITY TO DETERMINE INTEREST RATE. If prior to the first
day of any Interest Period:

     (a) the Administrative Agent shall have determined (which determination
shall be conclusive and binding upon the Borrower) that, by reason of
circumstances affecting the eurodollar market, adequate and reasonable means do
not exist for ascertaining the Interest Rate for such Interest Period, or

     (b) the Administrative Agent shall have received notice from the Majority
Lenders that the Interest Rate determined or to be determined for such Interest
Period will not adequately and fairly reflect the cost to such Lenders (as
conclusively certified by such Lenders) of making or maintaining their affected
Bridge Loans during such Interest Period, the Administrative Agent shall give
telecopy or telephonic notice thereof to the Borrower and the Lenders as soon as
practicable thereafter.

     If such notice is given, any outstanding Bridge Loans shall bear interest
at the Base Rate until such notice has been withdrawn in writing by the
Administrative Agent (which the Administrative Agent agrees to do when the
Administrative Agent has determined, or has been instructed by the Majority
Lenders that, the circumstances that prompted the delivery of such notice no
longer exist).

     Section 2.16 ILLEGALITY. Notwithstanding any other provision herein, if the
adoption of or any change in any Requirement of Law or in the interpretation or
application thereof shall make it unlawful for any Lender to make or maintain
Bridge Loans as contemplated by this Agreement, (a) the commitment of such
Lender hereunder to make Bridge Loans and continue Bridge Loans as such shall
forthwith be canceled and (b) such Lender's Bridge Loans then outstanding shall,
on the respective last days of the then current Interest Periods with respect to
such Loans or within such earlier period as required by law, bear interest at
the Base Rate. If any such change in the rate of interest to the Base Rate
occurs on a day which is not the last day of the then current Interest Period
with respect thereto, the Borrower shall pay to such Lender such amounts, if
any, as may be required pursuant to Section 2.6. If circumstances subsequently
change so that any affected Lender shall determine that it is no longer so
affected, such Lender will promptly notify the Borrower and the Administrative
Agent, and upon receipt of such notice, the obligations of such Lender to make
or continue Bridge Loan Loans at the Interest Rate shall be reinstated.

                                  ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

     As of the date hereof and as of the Funding Date, the Borrower and each of
the Guarantors and, as applicable, Holdings, hereby jointly and severally
represent and warrant to the Lenders, the Arrangers and the Administrative Agent
that each of the following representations and warranties is true and will be
true after giving effect to the Transactions:

     Section 3.1 FINANCIAL CONDITION. The audited consolidated balance sheets
at December 31, 2000 and the related statements of income and cash flows of
Borrower and its Subsidiaries for the fiscal year then ended, certified by
PricewaterhouseCoopers LLP, and the unaudited consolidated balance sheets at
September 30, 2001 and the related statements of income and cash flows of
Borrower and its Subsidiaries for the three quarters then ended, have been
delivered to the Administrative Agent and the Lenders and have been prepared in
accordance with GAAP consistently applied throughout the

                                      -32-
<PAGE>

periods covered (except as disclosed therein and except, with respect to
unaudited financial statements, for the absence of footnotes and normal year-end
audit adjustments) and present fairly in all material respects the financial
position of the Persons covered thereby as at the dates thereof and the results
of their operations and cash flows for the periods then ended.

     Section 3.2 NO CHANGE. There has not occurred any event, development or
circumstance since September 30, 2001 that has caused or could reasonably be
expected to cause a material adverse condition or material adverse change in or
affecting: (i) the Acquisition, (ii) the business, assets, results of
operations, management, prospects, property or condition (financial or
otherwise) of the Borrower and its Subsidiaries, taken as a whole, (iii) the
business, assets, results of operations, prospects, property or condition
(financial or otherwise) of the Acquired Business and its subsidiaries, taken as
a whole, or (iv) the validity or enforceability of any of the Loan Documents,
the Exchange Note Indenture or the Exchange Notes or the rights and remedies of
the Administrative Agent and the Lenders thereunder.

     Section 3.3 Corporate Existence; Compliance with Law. Each of the Borrower
and its Subsidiaries (a) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (b) has the
corporate power and authority, and the legal right, to own and operate its
property, to lease the property it operates as lessee and to conduct the
business in which it is currently engaged, (c) is duly qualified as a foreign
corporation and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business
requires such qualification, except to the extent that the failure to so qualify
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect and (d) is in compliance with all Requirements of Law except to the
extent that the failure to comply therewith could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     Section 3.4 Corporate Power; Authorization; Enforceable Obligations. Each
of the Borrower and its Subsidiaries has the corporate power and authority, and
the legal right, to make, deliver and perform the Transaction Documents, the
Exchange Note Indenture and the Exchange Notes to which it is a party and, in
the case of the Borrower, to borrow hereunder and has taken all necessary
corporate action to authorize the borrowings on the terms and conditions of this
Agreement and to authorize the execution, delivery and performance of such
Transaction Documents, the Exchange Note Indenture and the Exchange Notes. No
consent or authorization of, filing with, notice to or other act by or in
respect of, any Governmental Authority or any other Person is required in
connection with the borrowings hereunder or with the execution, delivery,
performance, validity or enforceability of the Transaction Documents, the
Exchange Note Indenture or the Exchange Notes to which the Borrower and each
other Credit Party is a party, except those set forth in Schedule 3.4. This
Agreement has been, and each other Transaction Document will be, duly executed
and delivered on behalf of the Borrower and each other Credit Party. This
Agreement constitutes, and each other Transaction Document to which it is a
party when executed and delivered will constitute, a legal, valid and binding
obligation of each Credit Party thereto enforceable against each such Credit
Party, as the case may be, in accordance with its terms, subject to the effects
of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors' rights generally, general
equitable principles (whether considered in a proceeding in equity or at law)
and an implied covenant of good faith and fair dealing.

     Section 3.5 NO LEGAL BAR. Except as set forth on Schedule 3.5 or as could
not reasonably be expected to, individually or in the aggregate, have a Material
Adverse Effect, the execution, delivery and performance of each Transaction
Document, the borrowing and use of the proceeds of the Bridge Loans and the
consummation of the transactions contemplated by the Transaction Documents, the
Exchange Notes and the Exchange Note Indenture: (a) will not violate any
Requirement of Law or any Contractual Obligation applicable to or binding upon
Holdings, the Borrower or any Subsidiary of the

                                      -33-
<PAGE>

Borrower or any of their respective properties or assets and (b) will not result
in the creation or imposition of any Lien on any of its properties or assets
pursuant to any Requirement of Law applicable to it or any of its Contractual
Obligations.

     Section 3.6 NO MATERIAL LITIGATION. Except as set forth on Schedule 3.6,
no litigation by, investigation by, or proceeding of or before any arbitrator or
any Governmental Authority is pending or, to the knowledge of the Borrower,
overtly threatened by or against the Borrower or any of its Subsidiaries or
against any of its or their respective properties or revenues with respect to
any Transaction Document or any of the transactions contemplated hereby or
thereby or which could reasonably be expected to have a Material Adverse Effect.

     Section 3.7 NO DEFAULT. Neither Holdings, the Borrower nor any of its
Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect which could reasonably be expected to have a Material
Adverse Effect. No Default or Event of Default has occurred and is continuing.

     Section 3.8 OWNERSHIP OF PROPERTY; LIENS. Each of Holdings, the Borrower
and its Subsidiaries (i) has good record and insurable title in fee simple to,
or a valid leasehold interest in, all its material real property, (ii) has good
title to, or a valid leasehold interest in, all its other material property and
(iii) none of such property in clauses (i) and (ii) is or shall be subject to
any Lien except as permitted by Section 4.10.

     Section 3.9 INTELLECTUAL PROPERTY. Holdings, the Borrower and each of its
Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, technology, know-how and processes necessary for the conduct of its
business as currently conducted except for those the failure to own or license
which could not reasonably be expected to have a Material Adverse Effect (the
"INTELLECTUAL PROPERTY"). To the best of the Borrower's knowledge, and except as
set forth on Schedule 3.9, no claim has been asserted and is pending by any
Person challenging or questioning the use of any such Intellectual Property or
the validity or effectiveness of any such Intellectual Property, nor does the
Borrower know of any valid basis for any such claim which could reasonably be
expected to have a Material Adverse Effect. The use of such Intellectual
Property by Holdings, the Borrower and its Subsidiaries does not infringe on the
rights of any Person, except for such claims and infringements that, in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

     Section 3.10 TAXES. Except as set forth on Schedule 3.10, each of Holdings,
the Borrower and its Subsidiaries has filed or caused to be filed all material
tax returns which, to the knowledge of the Borrower, are required to be filed
and has paid all taxes shown to be due and payable on said returns or on any
assessments made against it or any of its property and all other material taxes,
fees or other charges imposed on it or any of its property by any Governmental
Authority (other than any the amount or validity of which are currently being
contested in good faith by appropriate proceedings and with respect to which
reserves in conformity with GAAP have been provided on the books of Holdings,
the Borrower or its Subsidiaries, as the case may be); no tax Lien has been
filed, and, to the knowledge of the Borrower, no claim is being asserted, with
respect to any such tax, fee or other charge.

     Section 3.11 FEDERAL REGULATIONS. None of the transactions contemplated by
this Agreement (including, without limitation, the use of the proceeds of the
Bridge Loans) will violate or result in a violation of Section 7 of the Exchange
Act or any regulation issued pursuant thereto, including, without limitation,
Regulations T, U and X of the Board.

     Section 3.12 ERISA. Except as could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect, no
Reportable Event has occurred with respect to any

                                      -34-
<PAGE>

Single Employer Plan, all contributions required to be made with respect to a
Plan have been timely made; none of the Borrower or any of its Subsidiaries nor
any Commonly Controlled Entity has incurred any material liability to or on
account of a Plan pursuant to Section 409, 502(i), 502(1), 515, 4062, 4063,
4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971, 4975 or
4980 of the Code or expects to incur any liability (including any indirect,
contingent or secondary liability) under any of the foregoing Sections with
respect to any Plan; no termination of, or institution of proceedings to
terminate or appoint a trustee to administer, a Single Employer Plan has
occurred; and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code (except that with respect to any
Multiemployer Plan, such representation is deemed made only to the knowledge of
the Borrower); no "accumulated funding deficiency" (within the meaning of
Section 412 of the Code or Section 302 of ERISA), extension of any amortization
period (within the meaning of Section 412 of the Code) or Lien in favor of the
PBGC or a Plan has arisen or has occurred during the five-year period prior to
the date on which this representation is made or deemed made with respect to any
Single Employer Plan. Neither the Borrower nor any Commonly Controlled Entity
has had a complete or partial withdrawal from any Multiemployer Plan for which
there is any outstanding liability, and neither the Borrower nor any Commonly
Controlled Entity would become subject to any liability under ERISA if the
Borrower or any such Commonly Controlled Entity were to withdraw completely from
all Multiemployer Plans as of the valuation date most closely preceding the date
on which this representation is made or deemed made in an amount which would be
reasonably likely to have a Material Adverse Effect. To the best knowledge of
the Borrower, no such Multiemployer Plan is in Reorganization or Insolvent.

     Section 3.13 INVESTMENT COMPANY ACT; OTHER REGULATIONS. None of the
Borrower or any of its Subsidiaries is an "investment company," or a company
"controlled" by an "investment company," within the meaning of the Investment
Company Act of 1940, as amended. None of the Borrower or any of its Subsidiaries
is subject to regulation under any Federal or State statute or regulation (other
than Regulation X of the Board, which is not applicable to the transactions
contemplated by this Agreement) which limits its ability to incur Indebtedness.

     Section 3.14 FULL DISCLOSURE. No information, report, financial statement
or certificate delivered or to be delivered to the Lenders in connection with
the Transactions, with all such information, reports, financial statements and
certificates taken as a whole, contains or will contain as of the date delivered
any untrue statement of material fact or omitted or omits or will omit to state
a material fact necessary to make such statements, taken as a whole, not
misleading in the light of the circumstances under which such statements were
made; provided that to the extent any such information, report, financial
statement, exhibit or schedule was based upon or constitutes a forecast or
projection, the Borrower represents only that it acted in good faith and
utilized assumptions believed to be reasonable at the time of preparation and
due care in the preparation of such information, report, financial statement,
exhibit or schedule.

     Section 3.15 PRIVATE OFFERING; RULE 144A MATTERS.

     (a) Based in part on the accuracy of the representations and warranties of,
and compliance with the covenants and agreements by, the Lenders in Section 6.1,
and by the Administrative Agent and the Lenders in writing to the Borrower, the
making of the Bridge Loans hereunder and the issuance of the instruments
evidencing such Bridge Loans and the issuance of the Exchange Notes in the
manner contemplated by this Agreement and the Exchange Note Indenture,
respectively, are and will be exempt from the registration and prospectus
delivery requirements of the Securities Act. Neither the Borrower nor any
Guarantor has issued or sold Bridge Loans, the instruments evidencing such
Bridge Loans or the Exchange Notes to anyone other than the Lenders. No
securities of the same class as the Bridge Loans, the instruments evidencing
such Bridge Loans or the Exchange Notes have been issued or sold by the Borrower
or any Guarantor within the six-month period immediately prior to the date
hereof.

                                      -35-
<PAGE>

The Borrower and each Guarantor agrees that neither it, nor anyone acting on its
behalf, will (i) offer the Bridge Loans, the instruments evidencing such Bridge
Loans or the Exchange Notes so as to subject the making, issuance and/or sale of
the Bridge Loans, the instruments evidencing such Bridge Loans or the Exchange
Notes to the registration or prospectus delivery requirements of the Securities
Act or (ii) offer any similar securities for issuance or sale to, or solicit any
offer to acquire any of the same from, or otherwise approach or negotiate with
respect to the same with, anyone if the issuance or sale of the Bridge Loans,
the instruments evidencing such Bridge Loans, the Exchange Notes and any such
securities would be integrated as a single offering for the purposes of the
Securities Act, including without limitation, Regulation D thereunder, in such a
manner as would require registration under the Securities Act thereof. Each
Note, and (subject to the terms of the Exchange Note Indenture and the Escrow
Agreement) each of the Exchange Notes shall have a legend setting forth the
restrictions on the transferability thereof imposed by the Securities Act for so
long as such restrictions apply.

     (b) In the case of each offer, sale or issuance of the Bridge Loans or the
Exchange Notes, no form of general solicitation or general advertising was or
will be used by the Borrower or any Guarantor or their representatives,
including, but not limited to, advertisements, articles, notices or other
communications published in any newspaper, magazine or similar medium or
broadcast over television or radio, or any seminar or meeting whose attendees
have been invited by any general solicitation or general advertising.

     (c) The Exchange Notes will be eligible for resale pursuant to Rule 144A
under the Securities Act. When the Exchange Notes are issued and delivered
pursuant to the Transaction Documents and the Exchange Note Indenture, they will
not be of the same class (within the meaning of Rule 144A(d)(3) under the
Securities Act) as any other security of the Borrower or any Guarantor that is
listed on a national securities exchange registered under Section 6 of the
Exchange Act or that is quoted in a United States automated interdealer
quotation system. Neither the issuance of the Exchange Notes nor the execution,
delivery and performance of the Transaction Documents or the Exchange Note
Indenture will require the qualification of an indenture under the Trust
Indenture Act.

     Section 3.16 FINANCIAL CONDITION; SOLVENCY. The Borrower and its
Subsidiaries, taken as a whole, are, and after giving effect to the consummation
of the Transactions will be, Solvent.

     Section 3.17 SUBSIDIARIES. The Subsidiaries of the Borrower and their
respective jurisdictions of incorporation shall be as set forth on Schedule
3.17, and all the Subsidiaries of the Borrower are Restricted Subsidiaries
unless otherwise identified.

     Section 3.18 PURPOSE OF THE BRIDGE LOAN. The Borrower shall use the
proceeds of the Bridge Loans to finance the Acquisition and the fees and
expenses incurred in connection therewith.

     Section 3.19 ENVIRONMENTAL MATTERS. Except insofar as any exception to any
of the following, or any aggregation of such exceptions, is not reasonably
likely to result in a Material Adverse Effect:

     (a) The facilities and properties owned, leased or operated by the Borrower
or any of its Subsidiaries (the "PROPERTIES") do not contain, and have not
previously contained, any Materials of Environmental Concern in amounts or
concentrations which (i) constitute or constituted a violation of, or (ii) could
reasonably be expected to give rise to liability under, any applicable
Environmental Law.

     (b) None of Holdings, the Borrower nor any of its Subsidiaries has received
any written notice of violation, alleged violation, non-compliance, liability or
potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the

                                      -36-
<PAGE>

Business, nor does the Borrower have knowledge or reason to believe that any
such notice will be received or is being threatened.

     (c) Materials of Environmental Concern have not been transported or
disposed of from the Properties in violation of, or in a manner or to a location
which could reasonably be expected to give rise to liability under, any
applicable Environmental Law, nor have any Materials of Environmental Concern
been generated, treated, stored or disposed of at, on or under any of the
Properties in violation of, or in a manner that could reasonably be expected to
give rise to liability under, any applicable Environmental Law.

     (d) No judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Borrower, threatened, under any
Environmental Law to which the Borrower or any Subsidiary is or, to the
knowledge of the Borrower, will be named as a party or with respect to the
Properties or the Business, nor are there any consent decrees or other decrees,
consent orders, administrative orders or other orders, or other administrative
or judicial requirements outstanding under any Environmental Law with respect to
the Properties or the Business.

     (e) There has been no release or threat of release of Materials of
Environmental Concern at or from the Properties, or arising from or related to
the operations of the Borrower or any Subsidiary in connection with the
Properties or otherwise in connection with the Business, in violation of or in
amounts or in a manner that could reasonably give rise to liability under any
applicable Environmental Laws.

     (f) The Properties and all operations at the Properties are in compliance,
and have in the last 3 years been in compliance, in all material respects with
all applicable Environmental Laws, and there is no contamination at, under or
about the Properties or violation of any applicable Environmental Law with
respect to the Properties or the business operated by Holdings, the Borrower or
any of its Subsidiaries (the "BUSINESS") which could materially interfere with
the continued operation of the Properties or materially impair the fair saleable
value thereof.

     (g) Holdings, the Borrower and its Subsidiaries hold and are in compliance
with all Environmental Permits necessary for their operations.

     Section 3.20 ACCURACY AND COMPLETENESS OF INFORMATION. No fact is known to
Holdings, the Borrower or any of its Subsidiaries which has had or could
reasonably be expected to have a Material Adverse Effect, which has not been
disclosed to the Lenders by Holdings, the Borrower or its Subsidiaries in
writing prior to the date hereof. Neither Holdings, the Borrower nor any
Subsidiary of the Borrower is aware of any material liability of the Borrower or
any of its Subsidiaries which is not fully disclosed in the most recent
financial statements delivered to the Agents and Lenders pursuant to Section 3.1
hereto.

     Section 3.21 LABOR MATTERS. There are no strikes pending or, to the
Borrower's knowledge, overtly threatened against Holdings, the Borrower or any
of its Subsidiaries which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. The hours worked and payments made
to employees of Holdings, the Borrower and each of its Subsidiaries (and their
predecessors) have not been in violation of the Fair Labor Standards Act or any
other applicable Requirement of Law, except to the extent such violations could
not, or in the aggregate, be reasonably expected to have a Material Adverse
Effect.

                                      -37-
<PAGE>

                                   ARTICLE IV
                                    COVENANTS

     Section 4.1 PAYMENT OF NOTES.

     The Borrower shall pay or cause to be paid the principal of, premium, if
any, and interest on the Notes on the dates and in the manner provided in this
Agreement. Principal, premium, if any, and interest shall be considered paid on
the date due if the Administrative Agent holds as of 10:00 a.m. Eastern Time on
the due date money deposited by the Borrower in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due.

     The Borrower shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
2% per annum in excess of the then applicable interest rate on the Notes to the
extent lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace period) at the same rate to the extent
lawful.

     Section 4.2 REPORTS.

     Notwithstanding that the Borrower may not be subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act or otherwise report on
an annual and quarterly basis on forms provided for such annual and quarterly
reporting pursuant to rules and regulations promulgated by the SEC, the Borrower
shall file with the SEC (and provide the Administrative Agent and Lenders with
copies thereof), without cost to the Lenders, within 15 days after it files them
with the SEC:

     (a) within 90 days after the end of each fiscal year, annual reports on
Form 10-K (or any successor or comparable form) containing the information
required to be contained therein (or required in such successor or comparable
form);

     (b) within 45 days after the end of each of the first three fiscal quarters
of each fiscal year, reports on Form 10-Q (or any successor or comparable form);

     (c) promptly from time to time after the occurrence of an event required to
be therein reported, such other reports on Form 8-K (or any successor or
comparable form); and

     (d) any other information, documents and other reports which the Borrower
would be required to file with the SEC if it were subject to Section 13 or 15(d)
of the Exchange Act; provided, however, the Borrower shall not be so obligated
to file such reports with the SEC if the SEC does not permit such filing, in
which event the Borrower will make available such information to the
Administrative Agent and Lenders within 15 days after the time the Borrower
would be required to file such information with the SEC, if it were subject to
Sections 13 or 15(d) of the Exchange Act.

     In addition to the foregoing, the Borrower shall provide to the
Administrative Agent, with copies for the Lenders, any financial or other report
or notice delivered by the Borrower to, or received from, any holder of Senior
Debt, including, without limitation, any lender under the Senior Credit
Facilities, each such report or notice to be provided to the Administrative
Agent, with copies for the Lenders, promptly upon delivery to or receipt from
any holder of Senior Debt of such notice or report.

     Delivery of such reports, information and documents to the Administrative
Agent and Lenders is for informational purposes only and the receipt of such by
the Administrative Agent and Lenders shall not constitute constructive notice of
any information contained therein or determinable from

                                      -38-
<PAGE>

information contained therein, including the Borrower's compliance with any of
its covenants hereunder (as to which the Administrative Agent and Lenders are
entitled to rely exclusively on Officers' Certificates).

     Section 4.3 COMPLIANCE CERTIFICATE.

     (a) The Borrower shall deliver to the Administrative Agent, with copies for
each Lender, within 90 days after the end of each fiscal year, an Officers'
Certificate stating that a review of the activities of the Borrower and its
Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Borrower has kept, observed, performed and fulfilled its obligations under this
Agreement and further stating, as to each such Officer signing such certificate,
that to the best of his or her knowledge, the Borrower has kept, observed,
performed and fulfilled each and every covenant contained in this Agreement and
is not in default in the performance or observance of any of the terms,
provisions and conditions of this Agreement (or, if a Default or Event of
Default shall have occurred, describing all such Defaults or Events of Default
of which he or she may have knowledge and what action the Borrower is taking or
proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Bridge Loans
is prohibited or if such event has occurred, a description of the event and what
action the Borrower is taking or proposes to take with respect thereto.

     (b) So long as not contrary to the then current recommendations of the
American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.3(a) above shall be accompanied by a
written statement of the Borrower's independent public accountants (who shall be
a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to
their attention that would lead them to believe that the Borrower has violated
any provisions of Article IV hereof or, if any such violation has occurred,
specifying the nature and period of existence thereof, it being understood that
such accountants shall not be liable directly or indirectly to any Person for
any failure to obtain knowledge of any such violation.

     (c) The Borrower shall, so long as any of the Bridge Loans are outstanding,
deliver to the Administrative Agent and the Lenders, as soon as possible and in
any event within five Business Days after any Officer becomes aware of any
Default or Event of Default, an Officers' Certificate specifying such Default or
Event of Default and what action the Borrower is taking or proposes to take with
respect thereto.

     Section 4.4 TAXES.

     The Borrower shall pay, and shall cause each of its Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies
except such as are contested in good faith and by appropriate proceedings or
where the failure to effect such payment is not adverse in any material respect
to the Lenders.

     Section 4.5 RESTRICTED PAYMENTS.

     The Borrower shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly: (i) declare or pay any dividend or make
any other payment or distribution on account of the Borrower's or any of its
Restricted Subsidiaries' Equity Interests (including, without limitation, any
payment in connection with any merger or consolidation involving the Borrower)
or to the direct or indirect holders of the Borrower's or any of its Restricted
Subsidiaries' Equity Interests in their capacity

                                      -39-
<PAGE>

as such (other than (A) dividends or distributions payable in Equity Interests
(other than Disqualified Stock) of the Borrower or (B) dividends or
distributions by a Restricted Subsidiary so long as, in the case of any dividend
or distribution payable on or in respect of any class or series of securities
issued by a Restricted Subsidiary other than a Wholly Owned Restricted
Subsidiary, the Borrower or a Restricted Subsidiary receives at least its pro
rata share of such dividend or distribution in accordance with its Equity
Interests in such class or series of securities); (ii) purchase, redeem or
otherwise acquire or retire for value (including without limitation, in
connection with any merger or consolidation involving the Borrower) any Equity
Interests of the Borrower or any direct or indirect parent of the Borrower;
(iii) make any payment on or with respect to, or purchase, redeem, defease or
otherwise acquire or retire for value any Indebtedness that is subordinated to
the Bridge Loans except a payment of interest or principal at Stated Maturity;
or (iv) make any Restricted Investment (all such payments and other actions set
forth in clauses (i) through (iv) above being collectively referred to as
"RESTRICTED PAYMENTS"), unless, at the time of and after giving effect to such
Restricted Payment:

     (a) no Default or Event of Default shall have occurred and be continuing or
would occur as a consequence thereof; and

     (b) the Borrower would, at the time of such Restricted Payment and after
giving pro forma effect thereto as if such Restricted Payment had been made at
the beginning of the applicable four-quarter period, have been permitted to
incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge
Coverage Ratio test set forth in the first paragraph of Section 4.7; and

     (c) such Restricted Payment, together with the aggregate amount of all
other Restricted Payments made by the Borrower and its Restricted Subsidiaries
since April 30, 1997 (excluding Restricted Payments permitted by clauses (ii)
through (vii) of the next succeeding paragraph or of the kind contemplated by
such clauses that were made prior to the date of this Agreement), is less than
the sum of (i) 50% of the Consolidated Net Income of the Borrower for the period
(taken as one accounting period) from July 1, 1997 to the end of the Borrower's
most recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment (or, if such Consolidated Net
Income for such period is a deficit, less 100% of such deficit), plus (ii) 100%
of the aggregate net cash proceeds received by the Borrower since April 30, 1997
from a contribution to its common equity capital or the issue or sale of Equity
Interests of the Borrower (other than Disqualified Stock) or of Disqualified
Stock or debt securities of the Borrower that have been converted into such
Equity Interests (other than Equity Interests (or Disqualified Stock or
convertible debt securities) sold to a Subsidiary of the Borrower and other than
Disqualified Stock or convertible debt securities that have been converted into
Disqualified Stock), plus (iii) to the extent that any Restricted Investment
that was made after April 30, 1997 is sold for cash or otherwise liquidated or
repaid for cash, the amount of cash received in connection therewith (or from
the sale of Marketable Securities received in connection therewith), plus (iv)
to the extent not already included in such Consolidated Net Income of the
Borrower for such period and without duplication, (A) 100% of the aggregate
amount of cash received as a dividend from an Unrestricted Subsidiary, (B) 100%
of the cash received upon the sale of Marketable Securities received as a
dividend from an Unrestricted Subsidiary, and (C) 100% of the net assets of any
Unrestricted Subsidiary on the date that it becomes a Restricted Subsidiary.

                  The foregoing provisions shall not prohibit: (i) the payment
of any dividend within 60 days after the date of declaration thereof, if at said
date of declaration such payment would have complied with the provisions of this
Agreement; (ii) the redemption, repurchase, retirement, defeasance or other
acquisition of any subordinated Indebtedness or Equity Interests of the Borrower
in exchange for, or out of the net cash proceeds of the substantially concurrent
sale (other than to a Subsidiary of the Borrower) of, other Equity Interests of
the Borrower (other than any Disqualified Stock); provided that the amount of
any such net cash proceeds that are utilized for any such redemption,
repurchase, retirement,

                                      -40-
<PAGE>

defeasance or other acquisition shall be excluded from clause (c) (ii) of the
preceding paragraph; (iii) the defeasance, redemption, repurchase or other
acquisition of subordinated Indebtedness (other than intercompany Indebtedness)
in exchange for, or with the net cash proceeds from an incurrence of, Permitted
Refinancing Indebtedness; (iv) the repurchase, retirement or other acquisition
or retirement for value of common Equity Interests of the Borrower or Holdings
held by any future, present or former employee, director or consultant of the
Borrower or any Subsidiary or Holdings issued pursuant to any management equity
plan or stock option plan or any other management or employee benefit plan or
agreement; provided, however, that the aggregate amount of Restricted Payments
made under this clause (iv) does not exceed $1.5 million in any calendar year
and provided, further, that cancellation of Indebtedness owing to the Borrower
from members of management of the Borrower or any of its Restricted Subsidiaries
in connection with a repurchase of Equity Interests of the Borrower shall not be
deemed to constitute a Restricted Payment for purposes of this covenant or any
other provision of this Agreement; (v) repurchases of Equity Interests deemed to
occur upon exercise of stock options upon surrender of Equity Interests to pay
the exercise price of such options; (vi) payments to Holdings (A) in amounts
equal to the amounts required for Holdings to pay franchise taxes and other fees
required to maintain its legal existence and provide for other operating costs
of up to $500,000 per fiscal year and (B) in amounts equal to amounts required
for Holdings to pay federal, state and local income taxes to the extent such
income taxes are actually due and owing; provided that the aggregate amount paid
under this clause (B) does not exceed the amount that the Borrower would be
required to pay in respect of the income of the Borrower and its Subsidiaries if
the Borrower were a stand alone entity that was not owned by Holdings; and (vii)
other Restricted Payments in an aggregate amount since May 22, 1998 not to
exceed $20.0 million.

     The Board of Directors of the Borrower may designate any Restricted
Subsidiary to be an Unrestricted Subsidiary if such designation would not cause
a Default. For purposes of making such determination, all outstanding
Investments by the Borrower and its Restricted Subsidiaries (except to the
extent repaid in cash) in the Subsidiary so designated shall be deemed to be
Restricted Payments at the time of such designation and shall reduce the amount
available for Restricted Payments under the first paragraph of this covenant.
All such outstanding Investments shall be deemed to constitute Investments in an
amount equal to the fair market value of such Investments at the time of such
designation. Such designation shall only be permitted if such Restricted Payment
would be permitted at such time and if such Restricted Subsidiary otherwise
meets the definition of an Unrestricted Subsidiary.

     The amount of all Restricted Payments (other than cash) shall be the fair
market value on the date of the Restricted Payment of the asset(s) or securities
proposed to be transferred or issued by the Borrower or such Subsidiary, as the
case may be, pursuant to the Restricted Payment. The fair market value of any
non-cash Restricted Payment shall be determined by the Board of Directors whose
resolution with respect thereto shall be delivered to the Administrative Agent.
Not later than the date of making any Restricted Payment, the Borrower shall
deliver to the Administrative Agent an Officers' Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the
calculations required by this Section 4.5 were computed.

     Section 4.6 DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES.

     The Borrower shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any encumbrance or restriction on the ability of any
Restricted Subsidiary to (i)(A) pay dividends or make any other distributions to
the Borrower or any of its Restricted Subsidiaries (1) on its Capital Stock or
(2) with respect to any other interest or participation in, or measured by, its
profits, or (B) pay any indebtedness owed to the Borrower or any of its
Restricted Subsidiaries, (ii) make loans or advances to the Borrower or any of
its Restricted Subsidiaries, or (iii) transfer any of its properties or assets
to the Borrower or any of

                                      -41-
<PAGE>

its Restricted Subsidiaries, except for such encumbrances or restrictions
existing under or by reason of (A) the provisions of security agreements that
restrict the transfer of assets that are subject to a Lien created by such
security agreements, (B) the provisions of agreements governing Indebtedness
incurred pursuant to clause (v) of the second paragraph of Section 4.7, (C) the
Senior Credit Facilities, this Agreement, the Notes, the 1997 Indenture, the
1997 Notes, the May 1998 Indenture, the May 1998 Notes, the December 1998
Indenture and the December 1998 Notes, in each case as the same are in effect on
the date of this Agreement, (D) applicable law, (E) any instrument governing
Indebtedness or Capital Stock of a Person acquired by the Borrower or any of its
Restricted Subsidiaries as in effect at the time of such acquisition (except to
the extent such Indebtedness was incurred in connection with or in contemplation
of such acquisition), which encumbrance or restriction is not applicable to any
Person, or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired; provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Agreement to
be incurred, (F) by reason of customary non-assignment provisions in leases
entered into in the ordinary course of business and consistent with past
practices, (G) purchase money obligations for property acquired in the ordinary
course of business that impose restrictions of the nature described in this
clause (iii) on the property so acquired, (H) Permitted Refinancing
Indebtedness, provided that the restrictions contained in the agreements
governing such Permitted Refinancing Indebtedness are no more restrictive than
those contained in the agreements governing the Indebtedness being refinanced,
(I) contracts for the sale of assets, including, without limitation, customary
restrictions with respect to a Subsidiary pursuant to an agreement that has been
entered into for the sale or disposition of all or substantially all of the
Capital Stock or assets of such Subsidiary, (J) agreements relating to secured
Indebtedness otherwise permitted to be incurred pursuant to Section 4.7 and 4.10
that limit the right of the debtor to dispose of the assets securing such
Indebtedness, (K) restrictions on cash or other deposits or net worth imposed by
customers under contracts entered into in the ordinary course of business, or
(L) customary provisions in joint venture agreements and other similar
agreements entered into in the ordinary course of business.

     Section 4.7 INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK.

     The Borrower shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise, with respect to
(collectively, "INCUR") any Indebtedness (including Acquired Debt) and that the
Borrower shall not issue any Disqualified Stock and shall not permit any of its
Subsidiaries to issue any shares of preferred stock; provided, however, that the
Borrower and any Restricted Subsidiary may incur Indebtedness (including
Acquired Debt) or issue shares of preferred stock if the Fixed Charge Coverage
Ratio for the Borrower's most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such additional Indebtedness is incurred or such preferred stock is issued
would have been at least 2.0 to 1.0, determined on a pro forma basis (including
a pro forma application of the net proceeds therefrom), as if the additional
Indebtedness had been incurred, or the preferred stock had been issued, as the
case may be, at the beginning of such four-quarter period. The provisions of the
first paragraph of this Section 4.7 shall not apply to the incurrence of any of
the following items of Indebtedness (collectively, "PERMITTED INDEBTEDNESS"):

                  (i) the incurrence by the Borrower of additional Indebtedness
         under Credit Facilities (and the guarantee thereof by the Guarantors)
         in an aggregate principal amount outstanding pursuant to this clause
         (i) at any one time (with letters of credit being deemed to have a
         principal amount equal to the maximum potential liability of the
         Borrower and its Restricted Subsidiaries thereunder), including all
         Permitted Refinancing Indebtedness then outstanding incurred to refund,
         refinance or replace any other Indebtedness incurred pursuant to this
         clause (i), not to

                                      -42-
<PAGE>

         exceed $375.0 million less the aggregate amount of all Net Proceeds of
         Asset Sales applied since December 11, 1998 to repay any such
         Indebtedness pursuant to Section 4.8;

                  (ii) the incurrence by the Borrower and its Restricted
         Subsidiaries of the Existing Indebtedness;

                  (iii) the incurrence by the Borrower and the Guarantors of
         $500.0 million in aggregate principal amount of the Bridge Loans and
         the Guarantees thereof;

                  (iv) the incurrence by the Borrower or any of its Restricted
         Subsidiaries of Indebtedness represented by Capital Lease Obligations,
         mortgage financings or purchase money obligations, in each case
         incurred for the purpose of financing all or any part of the purchase
         price or cost of construction or improvement of property, plant or
         equipment used in the business of the Borrower or such Restricted
         Subsidiary, in an aggregate principal amount, including all Permitted
         Refinancing Indebtedness then outstanding incurred to refund, refinance
         or replace any other Indebtedness incurred pursuant to this clause
         (iv), not to exceed $30.0 million at any time outstanding;

                  (v) the incurrence by the Borrower or any of its Restricted
         Subsidiaries of Indebtedness in connection with the acquisition of
         assets or a new Restricted Subsidiary; provided that such Indebtedness
         was incurred by the prior owner of such assets or such Restricted
         Subsidiary prior to such acquisition by the Borrower or one of its
         Restricted Subsidiaries and was not incurred in connection with, or in
         contemplation of, such acquisition by the Borrower or one of its
         Restricted Subsidiaries; and provided further that the principal amount
         (or accreted value, as applicable) of such Indebtedness, together with
         any other outstanding Indebtedness incurred pursuant to this clause
         (v), does not exceed $10.0 million;

                  (vi) the incurrence by the Borrower or any of its Restricted
         Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or
         the net proceeds of which are used to refund, refinance or replace,
         Indebtedness that was permitted by this Agreement to be incurred (other
         than intercompany Indebtedness or Indebtedness incurred pursuant to
         clause (i) above);

                  (vii) Indebtedness incurred by the Borrower or any of its
         Restricted Subsidiaries constituting reimbursement obligations with
         respect to letters of credit issued in the ordinary course of business
         in respect of workers' compensation claims or self-insurance, or other
         Indebtedness with respect to reimbursement-type obligations regarding
         workers' compensation claims; provided, however, that upon the drawing
         of such letters of credit or the incurrence of such Indebtedness, such
         obligations are reimbursed within 30 days following such drawing or
         incurrence;

                  (viii) Indebtedness arising from agreements of the Borrower or
         a Restricted Subsidiary providing for indemnification, adjustment of
         purchase price or similar obligations, in each case, incurred or
         assumed in connection with the disposition of any business, assets or a
         Subsidiary, other than guarantees of Indebtedness incurred by any
         Person acquiring all or any portion of such business, assets or a
         Subsidiary for the purpose of financing such acquisition; provided,
         however, that (A) such Indebtedness is not reflected on the balance
         sheet of the Borrower or any Restricted Subsidiary (contingent
         obligations referred to in a footnote to financial statements and not
         otherwise reflected on the balance sheet shall not be deemed to be
         reflected on such balance sheet for purposes of this clause (A)) and
         (B) the maximum assumable liability in respect of all such Indebtedness
         shall at no time exceed the gross proceeds, including noncash proceeds
         (the fair market value of such noncash proceeds being measured at the
         time received and without giving

                                      -43-
<PAGE>

         effect to any subsequent changes in value), actually received by the
         Borrower and its Restricted Subsidiaries in connection with such
         disposition;

                  (ix) the incurrence by the Borrower or any of its Restricted
         Subsidiaries of intercompany Indebtedness between or among the Borrower
         and any of its Restricted Subsidiaries; provided, however, that (A) if
         the Borrower is the obligor on such Indebtedness, such Indebtedness is
         expressly subordinated to the prior payment in full in cash of all
         Obligations with respect to the Bridge Loans and (B)(1) any subsequent
         issuance or transfer of Equity Interests that results in any such
         Indebtedness being held by a Person other than the Borrower or one of
         its Restricted Subsidiaries and (2) any sale or other transfer of any
         such Indebtedness to a Person that is not either the Borrower or one of
         its Restricted Subsidiaries shall be deemed, in each case, to
         constitute an incurrence of such Indebtedness by the Borrower or such
         Restricted Subsidiary, as the case may be;

                  (x) the incurrence by the Borrower or any of the Guarantors of
         Hedging Obligations that are incurred for the purpose of (A) fixing,
         hedging or capping interest rate risk with respect to any floating rate
         Indebtedness that is permitted by the terms of this Agreement to be
         outstanding or (B) protecting the Borrower and its Restricted
         Subsidiaries against changes in currency exchange rates;

                  (xi) the guarantee by the Borrower or any of the Guarantors of
         Indebtedness of the Borrower or a Restricted Subsidiary of the Borrower
         that was permitted to be incurred by another provision of this Section
         4.7;

                  (xii) the incurrence by the Borrower's Unrestricted
         Subsidiaries of Non-Recourse Debt; provided, however, that if any such
         Indebtedness ceases to be Non-Recourse Debt of an Unrestricted
         Subsidiary, such event shall be deemed to constitute an incurrence of
         Indebtedness by a Restricted Subsidiary of the Borrower that was not
         permitted by this clause (xii), and the issuance of preferred stock by
         Unrestricted Subsidiaries;

                  (xiii) obligations in respect of performance and surety bonds
         and completion guarantees provided by the Borrower or any Restricted
         Subsidiaries in the ordinary course of business; and

                  (xiv) the incurrence by the Borrower or any of its Restricted
         Subsidiaries of additional Indebtedness in an aggregate principal
         amount (or accreted value, as applicable) at any time outstanding,
         including all Permitted Refinancing Indebtedness then outstanding
         incurred to refund, refinance or replace any other Indebtedness
         incurred pursuant to this clause (xiv), not to exceed $50.0 million.

     For purposes of determining compliance with this Section 4.7, in the event
that an item of Indebtedness meets the criteria of more than one of the
categories of Permitted Indebtedness described in clauses (i) through (xiv)
above or is entitled to be incurred pursuant to the first paragraph of this
Section 4.7, the Borrower shall, in its sole discretion, classify, or later
reclassify, such item of Indebtedness in any manner that complies with this
covenant. Accrual of interest, the accretion of accreted value and the payment
of interest in the form of additional Indebtedness shall not be deemed to be an
incurrence of Indebtedness for purposes of this Section 4.7.

                                      -44-
<PAGE>

     Section 4.8 ASSET SALES.

     The Borrower shall not, and shall not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless (i) the Borrower (or the
Restricted Subsidiary, as the case may be) receives consideration at the time of
such Asset Sale at least equal to the fair market value (evidenced by an
Officers' Certificate delivered to the Administrative Agent which will include a
resolution of the Board of Directors with respect to such fair market value in
the event such Asset Sale involves aggregate consideration in excess of $5.0
million) of the assets or Equity Interests issued or sold or otherwise disposed
of and (ii) at least 80% of the consideration therefor received by the Borrower
or such Restricted Subsidiary, as the case may be, consists of cash, Cash
Equivalents and/or Marketable Securities; provided, however, that (A) the amount
of any Senior Debt of the Borrower or such Restricted Subsidiary that is assumed
by the transferee in any such transaction and (B) any consideration received by
the Borrower or such Restricted Subsidiary, as the case may be, that consists of
(1) all or substantially all of the assets of one or more Similar Businesses,
(2) other long-term assets that are used or useful in one or more Similar
Businesses and (3) Permitted Securities shall be deemed to be cash for purposes
of this provision.

     The Net Cash Proceeds from any Asset Sale shall be applied in accordance
with Section 2.4. Subject to Section 2.4, within 365 days after the receipt of
any Net Proceeds from any Asset Sale, the Borrower may apply such Net Proceeds,
at its option, (i) to repay Indebtedness under a Credit Facility, or (ii) to
acquire Permitted Securities, all or substantially all of the assets of one or
more Similar Businesses, or the making of a capital expenditure or the
acquisition of other long-term assets in a Similar Business. Pending the final
application of any such Net Proceeds, the Borrower may temporarily reduce
Indebtedness under a Credit Facility or otherwise invest such Net Proceeds in
any manner that is not prohibited by this Agreement. Any Net Proceeds from Asset
Sales that are not applied or invested as provided in the first sentence of this
paragraph shall be deemed to constitute "Excess Proceeds." When the aggregate
amount of Excess Proceeds exceeds $10.0 million, the Borrower shall make an
offer to all holders of 1997 Notes (an "ASSET SALE OFFER") to purchase the
maximum principal amount of 1997 Notes that may be purchased out of the Excess
Proceeds, at an offer price in cash in an amount equal to 100% of the principal
amount thereof plus accrued and unpaid interest to the date of purchase, in
accordance with the procedures set forth in the 1997 Indenture. To the extent
that the aggregate amount of 1997 Notes tendered pursuant to an Asset Sale Offer
is less than the remaining Excess Proceeds ("REMAINING EXCESS PROCEEDS") and the
sum of (A) such amount of Remaining Excess Proceeds and (B) the Remaining Excess
Proceeds from any subsequent Asset Sale Offers exceeds $3.0 million, the
Borrower will be required to make an offer to repay the Bridge Loans and any
other Indebtedness that ranks pari passu with the Bridge Loans (including,
without limitation, the May 1998 Notes and the December 1998 Notes) that, by its
terms, requires the Borrower to offer to repay or repurchase such Indebtedness
with such Remaining Excess Proceeds (a "SECONDARY ASSET SALE OFFER") to repay
the maximum principal amount of Bridge Loans and purchase the maximum principal
amount of pari passu Indebtedness that may be repaid or purchased out of such
Remaining Excess Proceeds, at an offer price in cash in an amount equal to 100%
of the principal amount thereof plus accrued and unpaid interest thereon, if
any, to the date of repayment or purchase, in accordance with the procedures set
forth in this Agreement. To the extent that the aggregate amount of Bridge Loans
and pari passu Indebtedness tendered pursuant to a Secondary Asset Sale Offer is
less than the Remaining Excess Proceeds, the Borrower may use any Remaining
Excess Proceeds for general corporate purposes. If the aggregate principal
amount of Bridge Loans or pari passu Indebtedness surrendered by holders thereof
exceeds the amount of Remaining Excess Proceeds in a Secondary Asset Sale Offer,
the Borrower shall repay or repurchase such Indebtedness on a pro rata basis and
the Administrative Agent shall select the Bridge Loans and Notes to be repaid on
a pro rata basis. Upon completion of such offer to repay or purchase, the amount
of Excess Proceeds shall be reset at zero.

                                      -45-
<PAGE>

     Section 4.9 TRANSACTIONS WITH AFFILIATES.

     The Borrower shall not, and shall not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate (each of the foregoing, an "AFFILIATE TRANSACTION"), unless
(i) such Affiliate Transaction is on terms that are no less favorable to the
Borrower or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Borrower or such Restricted
Subsidiary with an unrelated Person and (ii) the Borrower delivers to the
Administrative Agent (A) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of
$5.0 million, a resolution of the Board of Directors set forth in an Officers'
Certificate certifying that such Affiliate Transaction complies with clause (i)
above and that such Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors and (B) with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $15.0 million, an opinion as to the
fairness to the Lenders of such Affiliate Transaction from a financial point of
view issued by an accounting, appraisal or investment banking firm of national
standing.

     The foregoing provisions shall not prohibit: (i) any employment agreement
entered into by the Borrower or any of its Restricted Subsidiaries in the
ordinary course of business; (ii) any transaction with Lehman Brothers Holdings,
Inc. or any of its Affiliates; (iii) any transaction between or among the
Borrower and/or its Restricted Subsidiaries; (iv) transactions between the
Borrower or any of its Restricted Subsidiaries, on the one hand, and Lockheed
Martin Corporation or any of its Subsidiaries or a Permitted Joint Venture, on
the other hand, on terms that are not materially less favorable to the Borrower
or the applicable Restricted Subsidiary of the Borrower than those that could
have been obtained from an unaffiliated third party; provided that (A) in the
case of any such transaction or series of related transactions pursuant to this
clause (iv) involving aggregate consideration in excess of $5.0 million but less
than $25.0 million, such transaction or series of transactions (or the agreement
pursuant to which the transactions were executed) was approved by the Borrower's
Chief Executive Officer or Chief Financial Officer and (B) in the case of any
such transaction or series of related transactions pursuant to this clause (iv)
involving aggregate consideration equal to or in excess of $25.0 million, such
transaction or series of related transactions (or the agreement pursuant to
which the transactions were executed) was approved by a majority of the
disinterested members of the Board of Directors; (v) any transaction pursuant to
and in accordance with the provisions of the Transaction Documents as the same
are in effect on the date of this Agreement; and (vi) any Restricted Payment
that is permitted by the provisions of Section 4.5.

     Section 4.10 LIENS.

                  The Borrower shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
suffer to exist any Lien securing Indebtedness on any asset now owned or
hereafter acquired, or any income or profits therefrom or assign or convey any
right to receive income therefrom, except Permitted Liens.

     Section 4.11 FUTURE SUBSIDIARY GUARANTEES.

                  If the Borrower or any of its Subsidiaries shall acquire or
create a Subsidiary (other than a Foreign Subsidiary or an Unrestricted
Subsidiary) after the date of this Agreement, then such Subsidiary shall
promptly and, in any event, within 30 days become a Guarantor and execute a
supplemental agreement in form and substance satisfactory to the Administrative
Agent, and deliver an opinion of counsel to the Administrative Agent as to the
validity of such Subsidiary Guarantee. The Subsidiary

                                      -46-
<PAGE>

Guarantee of each Guarantor will be subordinated to the prior payment in full of
all Senior Debt of such Guarantor, which would include the guarantees of amounts
borrowed under the Senior Credit Facilities. The obligations of each Guarantor
under its Subsidiary Guarantee will be limited so as not to constitute a
fraudulent conveyance under applicable law.

     Section 4.12 CORPORATE EXISTENCE.

     Subject to Section 4.17 hereof, the Borrower shall do or cause to be done
all things necessary to preserve and keep in full force and effect (i) its
corporate existence, and the corporate, partnership or other existence of each
of its Restricted Subsidiaries, in accordance with the respective organizational
documents (as the same may be amended from time to time) of the Borrower or any
such Restricted Subsidiary and (ii) the rights (charter and statutory), licenses
and franchises of the Borrower and its Restricted Subsidiaries; provided,
however, that the Borrower shall not be required to preserve any such right,
license or franchise, or the corporate, partnership or other existence of any of
its Restricted Subsidiaries, if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Borrower and its Restricted Subsidiaries, taken as a whole, and that the
loss thereof is not adverse in any material respect to the Lenders.

     Section 4.13 CHANGE OF CONTROL.

     (a) Upon the occurrence of a Change of Control, each Lender shall have the
right to require the Borrower to prepay all or any part of the principal amount
of such Lender's Bridge Loans pursuant to that described below at a prepayment
price in cash equal to 101% of the aggregate principal amount thereof, plus
accrued and unpaid interest thereon, to the date of prepayment (the "CHANGE OF
CONTROL PAYMENT"). Within ten days following any Change of Control, the Borrower
shall mail a notice to each Lender describing the transaction or transactions
that constitute the Change of Control and offering to repay the Bridge Loans on
the date specified in such notice, which date shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the "CHANGE OF
CONTROL PAYMENT DATE") pursuant to the procedures set forth below. Prior to the
prepayment of any Bridge Loans following a Change of Control, but in any event
within 90 days following a Change of Control, the Borrower shall either repay
all outstanding Senior Debt or obtain the requisite consents, if any, under all
agreements governing such Indebtedness to permit the prepayment of such Bridge
Loans pursuant to this Section 4.13.

     (b) Notice of a Change of Control shall be mailed by the Borrower to the
Lenders at their addresses set forth in the Register. The Change of Control
offer shall remain open from the time of mailing until five Business Days prior
to the Change of Control Payment Date. The notice shall contain all instructions
and materials necessary to enable such Lenders to elect to be prepaid pursuant
to the Change of Control offer.

     (c) On the Change of Control Payment Date, the Borrower shall (i) repay in
accordance with Section 2.7 all Bridge Loans or portions thereof of each Lender
that properly elected repayment thereof pursuant to the Change of Control offer,
(ii) pay the Change of Control Payment for each such Bridge Loan (or portion
thereof) elected to be repaid and (iii) deliver to each such Lender a new Note
equal in principal amount (excluding premiums, if any) to the unpurchased
portion of the corresponding Notes surrendered, if any. The Borrower will notify
the remaining Lenders of the results of the Change of Control offer on or as
soon as practicable after the Change of Control Payment Date.

                                      -47-
<PAGE>

     Section 4.14 NO SENIOR SUBORDINATED DEBT.

     The Borrower shall not incur, create, issue, assume, guarantee or otherwise
become liable for any Indebtedness that is subordinate or junior in right of
payment to the Senior Credit Facilities or any other Senior Debt and senior in
any respect in right of payment to the Bridge Loans. No Guarantor shall incur,
create, issue, assume, guarantee or otherwise become liable for any Indebtedness
that is subordinate or junior in right of payment to the Senior Credit
Facilities or any other Senior Debt of a Guarantor and senior in any respect in
right of payment to any of the Subsidiary Guarantees.

     Section 4.15 PAYMENTS FOR CONSENT.

     Neither the Borrower nor any of its Subsidiaries shall, directly or
indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Lender for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this Agreement
or the Notes unless such consideration is offered to be paid or is paid to all
Lenders that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

     Section 4.16 NO REDEMPTION OF EXISTING SENIOR SUBORDINATED INDEBTEDNESS.

     Notwithstanding anything contained in this Agreement to the contrary,
neither the Borrower nor any of its Subsidiaries will voluntarily purchase,
redeem, defease or otherwise retire for value any of its existing senior
subordinated Indebtedness (including, without limitation, the 1997 Notes, the
December 1998 Notes, the May 1998 Notes, the 5.25% Convertible Senior
Subordinated Notes due 2009 issued by Holdings and the 4.00% Senior Subordinated
Convertible Contingent Debt Securities due 2011 issued by Holdings), prior to
such Indebtedness' stated maturity, until the Bridge Loans and all related
Obligations have been paid in full in cash; provided that Holdings, the Borrower
and the Borrower's Subsidiaries may purchase, redeem, defease or otherwise
retire for value any of the outstanding 5.25% Convertible Senior Subordinated
Notes due 2009 issued by Holdings or the 4.00% Senior Subordinated Convertible
Contingent Debt Securities due 2011 issued by Holdings with Equity Interests
(other than Disqualified Stock) of Holdings or the Borrower. In the event that
the Borrower or Holdings is required to purchase, redeem, defease or otherwise
retire for value any of its existing senior subordinated Indebtedness
(including, without limitation, the 1997 Notes, the December 1998 Notes, the May
1998 Notes, the 5.25% Convertible Senior Subordinated Notes due 2009 issued by
Holdings and the 4.00% Senior Subordinated Convertible Contingent Debt
Securities due 2011 issued by Holdings), it will repay in full, in cash, all
Obligations with respect to the Bridge Loans at least two Business Days prior to
such purchase, redemption, defeasance or retirement.

     Section 4.17 MERGER, CONSOLIDATION, OR SALE OF ASSETS.

     (a) The Borrower may not consolidate or merge with or into (whether or not
the Borrower is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets in one or more related transactions, to another corporation, Person or
entity unless (i) the Borrower is the surviving corporation or the entity or the
Person formed by or surviving any such consolidation or merger (if other than
the Borrower) or to which such sale, assignment, transfer, lease, conveyance or
other disposition shall have been made is a corporation organized or existing
under the laws of the United States, any state thereof or the District of
Columbia; (ii) the entity or Person formed by or surviving any such
consolidation or merger (if other than the Borrower) or the entity or Person to
which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made assumes all the Obligations of the Borrower under the Notes
and this Agreement pursuant to an amendment to this Agreement in a form
reasonably satisfactory to the

                                      -48-
<PAGE>

Administrative Agent; (iii) immediately after such transaction no Default or
Event of Default exists; and (iv) except in the case of a merger of the Borrower
with or into a Wholly Owned Restricted Subsidiary of the Borrower, the Borrower
or the entity or Person formed by or surviving any such consolidation or merger
(if other than the Borrower), or to which such sale, assignment, transfer,
lease, conveyance or other disposition shall have been made, after giving pro
forma effect to such transaction as if such transaction had occurred at the
beginning of the most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding such
transaction either (A) would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the
first paragraph of Section 4.7 or (B) would have a pro forma Fixed Charge
Coverage Ratio that is greater than the actual Fixed Charge Coverage Ratio for
the same four-quarter period without giving pro forma effect to such
transaction.

     (b) Notwithstanding clause (iv) in the immediately foregoing paragraph, (i)
any Restricted Subsidiary may consolidate with, merge into or transfer all or
part of its properties and assets to the Borrower and (ii) the Borrower may
merge with an Affiliate that has no significant assets or liabilities and was
incorporated solely for the purpose of reincorporating the Borrower in another
State of the United States so long as the amount of Indebtedness of the Borrower
and its Restricted Subsidiaries is not increased thereby.

     (c) Upon any consolidation or merger, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the assets
of the Borrower in accordance with Section 4.17 hereof, the successor
corporation formed by such consolidation or into or with which the Borrower is
merged or to which such sale, assignment, transfer, lease, conveyance or other
disposition is made shall succeed to, and be substituted for (so that from and
after the date of such consolidation, merger, sale, lease, conveyance or other
disposition, the provisions of this Agreement referring to the "Borrower" shall
refer instead to the successor corporation and not to the Borrower), and may
exercise every right and power of the Borrower under this Agreement with the
same effect as if such successor Person had been named as the Borrower herein;
provided, however, that the predecessor Borrower shall not be relieved from the
obligation to pay the principal of and interest on the Notes except in the case
of a sale of all of the Borrower's assets that meets the requirements of Section
4.17 hereof.

                                   ARTICLE V
                                   CONDITIONS

     Section 5.1 CONDITIONS PRECEDENT. The obligations of the Lenders to make
the Bridge Loans shall be subject to the satisfaction (or waiver in accordance
with Section 12.3) of each of the following conditions:

     (a) The representations and warranties of the Company, Holdings and each of
the Guarantors in Article III shall be true, accurate and correct as of the date
given and as of the Funding Date.

     (b) Holdings, the Company and each of the Guarantors shall have complied in
all material respects with all of their agreements contained in any of the Loan
Documents that were required to be complied with on or prior to the Funding
Date.

     (c) The Company shall have furnished to the Administrative Agent a
certificate, dated the Funding Date and delivered on behalf of the Company, of
its Chairman of the Board, its President or a Vice President and its chief
financial officer, in form and substance satisfactory to the Administrative
Agent, to the effect of 5.1(a) and 5.1(b).

                                      -49-
<PAGE>

     (d) Each Credit Party shall have executed and delivered counterparts to
each of the Loan Documents and the Exchange Note Indenture, and the Borrower and
the Guarantors shall have executed the Exchange Notes and the related
authentication order, delivered such authentication order to the trustee under
the Exchange Note Indenture and placed the Exchange Notes into escrow pursuant
to the Escrow Agreement.

     (e) There shall not exist (pro forma for the Acquisition and the financing
thereof) any Default or Event of Default hereunder, under the Senior Credit
Facilities or any other material Indebtedness or agreement of the Borrower or
the Acquired Business.

     (f) Funds needed to finance the Acquisition will be provided as follows:
(i) approximately $215.0 million of cash on hand; (ii) approximately $415.0
million of borrowings by the Borrower under the existing Credit Facilities; and
(iii) $500.0 million in Bridge Loans provided hereunder. On the Funding Date,
neither the Borrower nor any of its Subsidiaries will have any Indebtedness or
Equity Interests outstanding except that which are outstanding as of the date on
which the Commitment Letter was executed and Indebtedness incurred to finance
the Acquisition as described above.

     (g) The Acquisition shall have been consummated for an aggregate purchase
price not exceeding $1.13 billion (not including fees and expenses not exceeding
$30 million in the aggregate) and subject to the post-closing adjustments
provided in the Asset Purchase Agreement pursuant to the Asset Purchase
Agreement and the exhibits thereto and no material provision thereof shall have
been waived, amended, supplemented or otherwise modified.

     (h) There shall not have occurred any event, development or circumstance
since September 30, 2001 that has caused or could reasonably be expected to
cause a material adverse condition or material adverse change in or affecting
(i) the Acquisition, (ii) the business, assets, results of operations,
management, prospects, property or condition (financial or otherwise) of the
Borrower and its Subsidiaries, taken as a whole, (iii) the business, assets,
results of operations, prospects, property or condition (financial or otherwise)
of the Acquired Business and its subsidiaries, taken as a whole, or (iv) the
validity or enforceability of any of the Loan Documents, the Exchange Note
Indenture or the Exchange Notes or the rights and remedies of the Administrative
Agent and the Lenders thereunder.

     (i) The Arrangers shall not have become aware after the date hereof of any
information or other matter affecting the Borrower, the Acquired Business or the
transactions contemplated hereby which is inconsistent in a material and adverse
manner with any such information or other matter disclosed to the Lenders prior
to the date hereof.

     (j) There shall not have occurred any material disruption or adverse
change, as determined by the Arrangers in their sole discretion, in the
financial or capital markets generally, or in the markets for bank loan or
bridge loan syndication, high yield debt or equity securities in particular, or
affecting the syndication or funding of bank loans or bridge loans (or the
refinancing thereof), that has had or could reasonably be expected to have a
material adverse impact on the ability to sell or place the Permanent
Securities.

     (k) All material governmental and third party approvals necessary in
connection with the Acquisition and the financing contemplated hereby shall have
been obtained and be in full force and effect, and all applicable waiting
periods shall have expired without any action being taken or threatened by any
competent authority that would restrain, prevent or otherwise impose adverse
conditions on the Acquisition or the financing thereof.

                                      -50-
<PAGE>

     (l) The Arrangers shall have received satisfactory pro forma financial
statements of the Borrower reflecting the completion of the Acquisition and all
other completed or probable acquisitions, all in form and substance reasonably
satisfactory to the Arrangers in their sole discretion. Such financial
statements shall show pro forma Consolidated Cash Flow of the Borrower
(calculated in good faith and including only those adjustments the
Administrative Agent agrees are appropriate) for the twelve-month period ended
December 31, 2001 of not less than $500.0 million.

     (m) The Lenders shall have received such legal opinions (including opinions
(i) from counsel to the Borrower and its Subsidiaries and (ii) from such special
and local counsel as may be reasonably required by the Administrative Agent)
including without limitation those represented by Exhibits E-1 and E-2 hereto.

     (l) The Senior Credit Facilities shall have been amended so that they
permit the transactions contemplated by the Loan Documents, the Exchange Notes
and the Exchange Note Indenture, including without limitation, the payments
required by Section 2.4.

                                   ARTICLE VI
                          TRANSFER OF THE BRIDGE LOANS

     Section 6.1 TRANSFER OF THE BRIDGE LOANS.

     (a) ASSIGNMENT BY LENDERS. Any Lender may assign to one or more assignees
all or a portion of its rights and obligations under this Agreement without the
consent of the Borrower, any Guarantor or any other Lender, but in compliance
with all applicable laws; provided, however, that except in the case of an
assignment to a Lender, an Affiliate or a Control Investment Affiliate thereof,
no interest in any Bridge Loans may be pledged to any commercial bank or other
institutional lender or sold, assigned or otherwise transferred to any third
party except with the prior consent of the Administrative Agent (which consent
shall not unreasonably be withheld). Except in the case of an assignment to a
Lender, an Affiliate of a Lender, or an assignment of the entire remaining
amount of the assigning Lender's Bridge Loans, the amount of the Bridge Loans of
the assigning Lender subject to each such assignment (determined as of the date
the Assignment and Acceptance with respect to such assignment is delivered to
the Administrative Agent) shall not be less than $5,000,000 unless the Borrower
otherwise consents. Each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender's rights and obligations under
this Agreement. Each assignee that is a Non-U.S. Lender shall comply with the
provisions of clause (A) of Section 2.8(g) or, with the prior written consent of
the Borrower, which shall not be unreasonably withheld, the provisions of clause
(B) of Section 2.8(g). The parties to each assignment shall execute and deliver
to the Administrative Agent an Assignment and Acceptance. Upon recording thereof
pursuant to Section 6.3, from and after the effective date specified in each
Assignment and Acceptance the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Acceptance, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.6, 2.8 and 2.9).

     (b) PARTICIPATIONS. Any Lender may, without the consent of any Person, in
accordance with applicable law, sell participations to one or more banks or
other entities (a "PARTICIPANT") in all or a portion of such Lender's rights and
obligations under this Agreement, but in such event (i) such Lender's
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the

                                      -51-
<PAGE>

Guarantors, the Administrative Agent and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce the Transaction Documents, the
Exchange Notes and the Exchange Note Indenture and to approve any amendment,
modification or waiver of any provision of the Transaction Documents, the
Exchange Note Indenture and the Exchange Notes, except to the extent that such
amendment, waiver or consent would reduce the principal of, or interest on, the
Bridge Loans or any fees payable hereunder, or postpone the date of the final
maturity of the Bridge Loans, in each case to the extent subject to such
participation. The Borrower agrees that if amounts outstanding under this
Agreement and the Bridge Loans are due or unpaid, or shall have been declared or
shall have become due and payable upon the occurrence of an Event of Default,
each Participant shall, to the maximum extent permitted by applicable law, be
deemed to have the right of setoff in respect of its participating interest in
amounts owing under this Agreement to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement; provided that, in purchasing such participating interest, such
Participant shall be deemed to have agreed to share with the Lenders the
proceeds thereof as provided in Section 2.9(b) as fully as if it were a Lender
hereunder. The Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.6 and 2.8 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to Section 6.1(a); provided
that, in the case of Section 2.8(g), such Participant shall have complied with
the requirements of said Section and provided, further, that no Participant
shall be entitled to receive any greater amount pursuant to any such Section
than the transferor Lender would have been entitled to receive in respect of the
amount of the participation transferred by such transferor Lender to such
Participant had no such transfer occurred.

     (c) The provisions of this Section concerning assignments of Bridge Loans
and Notes relate only to absolute assignments; such provisions do not prohibit
assignments creating security interests, including, without limitation, any
pledge or assignment by a Lender of any Bridge Loan or Note to any Federal
Reserve Bank in accordance with applicable law.

     Section 6.2 REGISTRATION OF TRANSFER OR EXCHANGE. Against receipt of
evidence of cancellation, discharge or surrender of any Notes by a Lender for
registration of transfer or exchange, the Borrower will execute and deliver in
exchange therefor a new Note or Notes of the same aggregate tenor and principal
amount, registered in such names and in such denominations as such Lender may
request. The Borrower will pay any stamp tax or governmental charge imposed in
respect of any such transfer.

     Section 6.3 REGISTER. The Administrative Agent shall, on behalf of the
Borrower, maintain a register of the names and addresses of each Lender and the
principal amount of the Bridge Loans owing to it pursuant to the terms hereof
from time to time (the "REGISTER"). Upon its receipt of an Assignment Acceptance
executed by an assigning Lender and an assignee together with payment by the
assigning Lender or the assignee to the Administrative Agent of a registration
and processing fee of $3,500 (provided that no such payment shall be required
with respect to assignments involving LCPI as assignor or assignee), the
Administrative Agent shall (i) promptly accept such Assignment and Acceptance
and (ii) on the effective date determined pursuant thereto record the
information contained therein in the Register and give notice of such acceptance
and recordation to the Borrower. No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this Section 6.3. On or prior to such effective date, the Borrower, at its own
expense, upon request, shall execute and deliver to the applicable Lenders one
or more new Notes. The entries in the Register shall conculsive, absent manifest
error, and the Administrative Agent, the Arrangers, the Borrower, the Guarantors
and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. Any assignment or transfer of
all or part of a Bridge Loan evidenced by a Note shall be registered on the
Register only upon surrender for registration of assignment or transfer of the

                                      -52-
<PAGE>

Note evidencing such Bridge Loan, accompanied by a duly executed Assignment and
Acceptance; thereupon one or more new Notes in the same aggregate principal
amount shall be issued to the designated assignee, and the old Notes shall be
returned by the Administrative Agent to the Borrower marked "canceled." The
Register shall be available for inspection by the Borrower or any Lender (with
respect to any entry to such Lender's Bridge Loans), at any reasonable time and
from time to time upon reasonable prior notice.

                                  ARTICLE VII
                                EVENTS OF DEFAULT

     Section 7.1 EVENTS OF DEFAULT. If any of the following events shall occur
and be continuing:

     (a) the Borrower shall fail to pay any principal of any Bridge Loan when
due in accordance with the terms hereof, whether or not prohibited by the terms
of Article IX; or the Borrower shall fail to pay any interest on any Bridge
Loan, or any other amount payable hereunder or under any other Loan Document,
within 15 days after any such interest or other amount becomes due in accordance
with the terms hereof, whether or not prohibited by the terms of Article IX; or

     (b) the Borrower shall fail to comply with any of the provisions of Section
4.8 or 4.13 hereof; or

     (c) the Borrower shall fail to observe or perform any other covenant or
other agreement in this Agreement or the Notes for 60 days after notice to the
Borrower by the Administrative Agent; or

     (d) a default occurs under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Borrower or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Borrower or any of
its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists,
or is created after the date of this Agreement, which default results in the
acceleration of such Indebtedness prior to its express maturity and, in each
case, the principal amount of such Indebtedness, together with the principal
amount of any other such Indebtedness, the maturity of which has been so
accelerated, aggregates $10.0 million or more; or

     (e) the Borrower or any of its Restricted Subsidiaries is subject to a
final judgments aggregating in excess of $10.0 million, which judgments are not
paid, discharged or stayed for a period of 60 days; or

     (f) the Borrower or any of its Significant Subsidiaries or any group of
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary
pursuant to or within the meaning of Bankruptcy Law:

                  (i) commences a voluntary case,

                  (ii) consents to the entry of an order for relief against it
         in an involuntary case,

                  (iii) consents to the appointment of a Custodian of it or for
         all or substantially all of its property,

                  (iv) makes a general assignment for the benefit of its
         creditors, or

                                      -53-
<PAGE>

                  (v) generally is not paying its debts as they become due; or

     (g) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:

                  (i) is for relief against the Borrower or any of its
         Significant Subsidiaries or any group of Subsidiaries that, taken as a
         whole, would constitute a Significant Subsidiary in an involuntary
         case;

                  (ii) appoints a custodian of the Borrower or any of its
         Significant Subsidiaries or any group of Subsidiaries that, taken as a
         whole, would constitute a Significant Subsidiary or for all or
         substantially all of the property of the Borrower or any of its
         Significant Subsidiaries or any group of Subsidiaries that, taken as a
         whole, would constitute a Significant Subsidiary; or

                  (iii) orders the liquidation of the Borrower or any of its
         Significant Subsidiaries or any group of Subsidiaries that, taken as a
         whole, would constitute a Significant Subsidiary;

                  and the order or decree remains unstayed and in effect for 60
         consecutive days; or

     (h) except as permitted herein, any Subsidiary Guarantee shall be held in
any judicial proceeding to be unenforceable or invalid; or

     (i) any representation or warranty made or deemed made by the Borrower or
any Guarantor herein or in any other Loan Document or that is contained in any
certificate, document or financial or other statement furnished by any of them
at any time under or in connection with this Agreement or any such other Loan
Document shall prove to have been incorrect in any material respect on or as of
the date made or deemed made; or

     (j) (i) any Person shall engage in any "prohibited transaction" (as defined
in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii)
any "accumulated funding deficiency" (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan or any Lien in favor
of the PBGC or a Plan shall arise on the assets of the Borrower or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is,
in the reasonable opinion of the Majority Lenders, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Single
Employer Plan shall terminate for purposes of Title IV of ERISA, (v) the
Borrower or any Commonly Controlled Entity shall, or in the reasonable opinion
of the Majority Lenders is likely to, incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan
that is not in the ordinary course; or (vi) any other similar event or condition
shall occur or exist with respect to a Plan; and in each case in clauses (i)
through (vi) above, such event or condition, together with all other such events
or conditions, if any, could reasonably be expected to have a Material Adverse
Effect.

     Section 7.2 ACCELERATION

     If any Event of Default occurs and is continuing, with the consent of the
Lenders holding at least 33% in aggregate principal amount of the then
outstanding Notes the Administrative Agent may, or upon request of the Lenders
holding at least 33% in aggregate principal amount of the then outstanding Notes
the Administrative Agent shall, by notice to the Borrower, declare all the
Bridge Loans to be due

                                      -54-
<PAGE>

and payable immediately; provided, however, that so long as any Designated
Senior Debt is outstanding, such declaration shall not become effective until
the earlier of (i) the day which is five Business Days after receipt by the
Representatives of Designated Senior Debt of such notice of acceleration or (ii)
the date of acceleration of any Designated Senior Debt. Notwithstanding the
foregoing, in the case of an Event of Default specified in Section 7.1(f) or
7.1(g) with respect to the Borrower or any Significant Subsidiary or any group
of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary, all outstanding Bridge Loans (with accrued interest thereon) will
become due and payable without further action or notice.

     Section 7.3 RIGHTS AND REMEDIES CUMULATIVE. No right or remedy herein
conferred upon or reserved to the Lenders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent or subsequent assertion or employment of any other
appropriate right or remedy.

     Section 7.4 DELAY OR OMISSION NOT WAIVER. No delay or omission by any
Lender to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. Every right and remedy given by this Article
VII or by law to the Lenders may be exercised from time to time, and as often as
may be deemed expedient, by the Lenders.

     Section 7.5 RIGHTS OF LENDERS TO RECEIVE PAYMENT. Notwithstanding anything
to the contrary contained in this Agreement but subject to the provisions of
Article IX, the right of any Lender to receive payment of principal of, premium,
if any, and interest on the Bridge Loans and Notes held by such Lender, on or
after the respective due dates expressed in this Agreement or the Notes, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Lender.

     Sectin 7.6 WAIVER OF PAST DEFAULTS.Subject to Section 12.3, the Majority
Lenders, by written notice to the Borrower, may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default (except nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived.

                                  ARTICLE VIII
                              PERMANENT SECURITIES

     Section 8.1 PERMANENT SECURITIES.

     Commencing upon the execution hereof, the Borrower will take all action
reasonably required in the opinion of Lehman Brothers, after consultation with
Banc of America Securities LLC, in connection with any underwritten offering(s)
or private placement(s) (including, without limitation, the purchase and resale
of securities pursuant to Rule 144A under the Securities Act) of any debt
securities issued by the Borrower or any of its Subsidiaries during the term of
the Engagement Letter (for purposes of this Agreement, the term "PERMANENT
SECURITIES" shall include all such debt securities). In connection with the sale
of Permanent Securities, (i) the Borrower will prepare and deliver to Lehman
Brothers Inc., Banc of America Securities LLC and Credit Suisse First Boston
Corporation preliminary offering documents, (ii) if requested by Lehman Brothers
Inc. or Banc of America Securities LLC, the Borrower will make appropriate
Officers of the Borrower available for meetings with rating agencies, and obtain
a rating for the Permanent Securities from S&P and Moody's and (iii) the
Borrower will cooperate with Lehman Brothers Inc., Banc of America Securities
LLC and Credit Suisse First Boston Corporation in

                                      -55-
<PAGE>

preparing "road show" materials as reasonably requested by Lehman Brothers Inc.,
Banc of America Securities LLC and Credit Suisse First Boston Corporation in
customary form for high yield transactions. The Borrower will also make its
senior executives available for "road show" presentations in the United States
at reasonable times to be mutually agreed as is customary for similar high yield
offerings and otherwise cooperate as reasonably requested by Lehman Brothers
Inc., Banc of America Securities LLC and Credit Suisse First Boston Corporation
in marketing the Permanent Securities. All of the above described actions will
be taken with a view to refinancing the Bridge Loans as soon as possible after
the Funding Date.Additionally, the Borrower agrees to comply with all of its
obligations under the Engagement Letter.

                                   ARTICLE IX
                                  SUBORDINATION

     Section 9.1 AGREEMENT TO SUBORDINATE. The Borrower and Lenders agree that
the Bridge Loans and the Indebtedness evidenced by the Notes are subordinated in
right of payment, to the extent and in the manner provided in this Article IX,
to the prior payment in full in cash of the Senior Credit Facilities and all
other Senior Debt (whether outstanding on the date hereof or hereafter created,
incurred, assumed or guaranteed), and that the subordination is for the benefit
of the lenders under the Senior Credit Facilities and the holders of all other
Senior Debt. Notwithstanding anything to the contrary contained herein, the
Indebtedness evidenced by the Notes and the Subsidiary Guarantees shall rank
pari passu with all of the Borrowers' outstanding senior subordinated
Indebtedness, including, without limitation, the Outstanding Senior Subordinated
Notes.

     Section 9.2 LIQUIDATION; DISSOLUTION; BANKRUPTCY. Upon any distribution to
creditors of the Borrower in a liquidation or dissolution of the Borrower or in
a bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Borrower or its property, an assignment for the benefit of
creditors or any marshalling of the Borrower's assets and liabilities, the
holders of Senior Debt shall be entitled to receive payment in full in cash of
all Obligations due in respect of such Senior Debt (including interest after the
commencement of any such proceeding at the rate specified in the applicable
Senior Debt, whether or not an allowable claim in any such proceeding) before
any Lender will be entitled to receive any payment with respect to its Bridge
Loan, and until all Obligations with respect to Senior Debt are paid in full in
cash, any distribution to which any Lender would be entitled shall be made to
the holders of Senior Debt.

     Section 9.3 DEFAULT ON DESIGNATED SENIOR DEBT. The Borrower may not make
any payment or distribution to the Administrative Agent or any Lender in respect
of Obligations with respect to the Bridge Loans and may not acquire from the
Administrative Agent or any Lender any Bridge Loans for cash or property (other
than securities that are subordinated to at least the same extent as the Bridge
Loans to (a) Senior Debt and (b) any securities issued in exchange for Senior
Debt) until all principal and other Obligations with respect to the Senior Debt
have been paid in full if:

                  (i) a default in the payment of any principal or other
         Obligations with respect to Designated Senior Debt occurs and is
         continuing; or

                  (ii) a default, other than a payment default, on Designated
         Senior Debt occurs and is continuing that then permits holders of the
         Designated Senior Debt to accelerate its maturity and the
         Administrative Agent receives a notice of the default (a "PAYMENT
         BLOCKAGE NOTICE") from the Borrower or a Representative with respect to
         such Designated Senior Debt. If the Administrative Agent receives any
         such Payment Blockage Notice, no subsequent Payment Blockage Notice
         shall be effective for purposes of this Section unless and until (i) at
         least 360 days shall have elapsed since the effectiveness of the
         immediately prior Payment Blockage

                                      -56-
<PAGE>

         Notice and (ii) all scheduled payments of principal, premium, if any,
         and interest on the Bridge Loans that have come due have been paid in
         full in cash. No nonpayment default that existed or was continuing on
         the date of delivery of any Payment Blockage Notice to the
         Administrative Agent shall be, or be made, the basis for a subsequent
         Payment Blockage Notice unless such default shall have been waived or
         cured for a period of not less than 90 days.

     The Borrower may and shall resume payments on and distributions in respect
of the Bridge Loans and may acquire them upon the earlier of:

                  (1) the date upon which the default is cured or waived, or

                  (2) in the case of a default referred to in Section 9.3(ii)
         hereof, 179 days pass after notice is received if the maturity of such
         Designated Senior Debt has not been accelerated,

if this Article otherwise permits the payment, distribution or acquisition at
the time of such payment or acquisition.

     Section 9.4 ACCELERATION OF BRIDGE LOANS. If payment of the Bridge Loans
is accelerated because of an Event of Default, the Borrower shall promptly
notify holders of Senior Debt of the acceleration.

     Section 9.5 WHEN DISTRIBUTION MUST BE PAID OVER. In the event that the
Administrative Agent or any Lender receives any payment of any Obligations with
respect to the Bridge Loans at a time when the Administrative Agent or such
Lender, as applicable, has actual knowledge that such payment is prohibited by
Article IX hereof, such payment shall be held by the Administrative Agent or
such Lender, in trust for the benefit of, and shall be paid forthwith over and
delivered, upon written request, to, the holders of Senior Debt as their
interests may appear or their Representative under the indenture or other
agreement (if any) pursuant to which Senior Debt may have been issued, as their
respective interests may appear, for application to the payment of all
Obligations with respect to Senior Debt remaining unpaid to the extent necessary
to pay such Obligations in full in accordance with their terms, after giving
effect to any concurrent payment or distribution to or for the holders of Senior
Debt.

     With respect to the holders of Senior Debt, the Administrative Agent
undertakes to perform only such obligations on the part of the Administrative
Agent as are specifically set forth in this Article IX, and no implied covenants
or obligations with respect to the holders of Senior Debt shall be read into
this Agreement against the Administrative Agent. The Administrative Agent shall
not be deemed to owe any fiduciary duty to the holders of Senior Debt, and shall
not be liable to any such holders if the Administrative Agent shall pay over or
distribute to or on behalf of the Lenders or the Borrower or any other Person
money or assets to which any holders of Senior Debt shall be entitled by virtue
of this Article IX, except if such payment is made as a result of the willful
misconduct or negligence of the Administrative Agent.

     Section 9.6 NOTICE BY BORROWER. The Borrower shall promptly notify the
Administrative Agent of any facts known to the Borrower that would cause a
payment of any Obligations with respect to the Bridge Loans to violate this
Article IX, but failure to give such notice shall not affect the subordination
of the Bridge Loans to the Senior Debt as provided in this Article IX.

     The Administrative Agent shall be entitled to rely on the delivery to it of
a written notice by a person representing himself to be a holder of Senior Debt
(or a trustee or agent on behalf of such holder) to establish that such notice
has been given by a holder of Senior Debt (or a trustee or agent on behalf of
any such holder). In the event that the Administrative Agent determines in good
faith that

                                      -57-
<PAGE>

further evidence is required with respect to the right of any person as holder
of Senior Debt to participate in any payment or distribution pursuant to this
Article IX, the Administrative Agent may request such person to furnish evidence
to the reasonable satisfaction of the Administrative Agent as to the amount of
Senior Debt held by such person and the extent to which such person is entitled
to participate in such payment or distribution if such person does not furnish
such evidence, the Administrative Agent may defer any payment which it may be
required to make for the benefit of such person pursuant to the terms of this
Agreement pending judicial determination as to the rights of such person to
receive such payment.

     Section 9.7 SUBROGATION. After all Senior Debt is paid in full in cash and
until the Bridge Loans are paid in full, the Lenders shall be subrogated
(equally and ratably with all other Indebtedness pari passu with the Bridge
Loans) to the rights of holders of Senior Debt to receive distributions
applicable to Senior Debt to the extent that distributions otherwise payable to
the Lenders have been applied to the payment of Senior Debt. A distribution made
under this Article IX to holders of Senior Debt that otherwise would have been
made to the Lenders is not, as between the Borrower and the Lenders, a payment
by the Borrower on the Bridge Loans.

     Section 9.8 RELATIVE RIGHTS. This Article IX defines the relative rights
of the Lenders and holders of Senior Debt. Nothing in this Agreement shall:

                  (1) impair, as between the Borrower and the Lenders, the
         obligation of the Borrower, which is absolute and unconditional, to pay
         principal of and interest on the Bridge Loans in accordance with their
         terms;

                  (2) affect the relative rights of the Lenders and creditors of
         the Borrower other than their rights in relation to holders of Senior
         Debt; or

                  (3) prevent the Administrative Agent or any Lender from
         exercising its available remedies upon a Default or Event of Default,
         subject to the rights of holders and owners of Senior Debt to receive
         distributions and payments otherwise payable to the Lenders.

     If the Borrower fails because of this Article IX to pay principal of or
interest on a Bridge Loan on the due date, the failure is still a Default or
Event of Default.

     Section 9.9 SUBORDINATION MAY NOT BE IMPAIRED BY BORROWER. No right of any
holder of Senior Debt to enforce the subordination of the Indebtedness evidenced
by the Bridge Loans shall be impaired by any act or failure to act by the
Borrower or any Lender or by the failure of the Borrower or any Lender to comply
with this Agreement.

     Section 9.10 DISTRIBUTION OR NOTICE TO REPRESENTATIVE. Whenever a
distribution is to be made or a notice given to holders of Senior Debt, the
distribution may be made and the notice given to their Representative.

     Upon any payment or distribution of assets of the Borrower referred to in
this Article IX, the Administrative Agent and the Lenders shall be entitled to
rely upon any order or decree made by any court of competent jurisdiction or
upon any certificate of such Representative or of the liquidating trustee or
agent or other Person making any distribution to the Administrative Agent or to
the Lenders for the purpose of ascertaining the Persons entitled to participate
in such distribution, the holders of the Senior Debt and other Indebtedness of
the Borrower, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article
IX.

                                      -58-
<PAGE>

     Section 9.11 RIGHTS OF ADMINISTRATIVE AGENT. Notwithstanding the provisions
of this Article IX or any other provision of this Agreement, the Administrative
Agent shall not be charged with knowledge of the existence of any facts that
would prohibit the making of any payment or distribution by the Administrative
Agent, and the Administrative Agent may continue to make payments on the Bridge
Loans, unless the Administrative Agent shall have received at the address set
forth in Section 12.2 at least three Business Days prior to the date of such
payment written notice of facts that would cause the payment of any Obligations
with respect to the Bridge Loans to violate this Article IX. Only the Borrower
or a Representative may give the notice.

     The Administrative Agent in its individual or any other capacity may hold
Senior Debt with the same rights it would have if it were not the Administrative
Agent. Any agent may do the same with like rights.

     Section 9.12 AUTHORIZATION TO EFFECT SUBORDINATION. Each Lender, by the
Lender's acceptance thereof, authorizes and directs the Administrative Agent on
such Lender's behalf to take such action as may be necessary or appropriate to
effectuate the subordination as provided in this Article IX, and appoints the
Administrative Agent to act as such Lender's attorney-in-fact for any and all
such purposes.

                                    ARTICLE X
                                    GUARANTEE

     Section 10.1 AGREEMENT TO GUARANTEE. Each of the Guarantors hereby agrees
as follows:

     (a) The Guarantors, jointly and severally with all other Guarantors, if
any, unconditionally guarantee to each Lender and to the Administrative Agent
and each of their respective successors and assigns, regardless of the validity
and enforceability of the Agreement, the Notes or the Obligations of the
Borrower under the Agreement or the Notes, that:

                  (i) the principal of, premium and interest on the Bridge Loans
         will be promptly paid in full when due, whether at maturity, by
         acceleration, redemption or otherwise, and interest on the overdue
         principal of, and premium, if any, and interest on the Bridge Loans, to
         the extent lawful, and all other Obligations of the Borrower to the
         Lenders or the Administrative Agent thereunder or under the Agreement
         will be promptly paid in full, all in accordance with the terms
         thereof; and

                  (ii) in case of any extension of time for payment or renewal
         of any Bridge Loans or any of such other Obligations, that the same
         will be promptly paid in full when due in accordance with the terms of
         the extension or renewal, whether at stated maturity, by acceleration
         or otherwise.

     (b) Notwithstanding the foregoing, in the event that this Guarantee would
constitute or result in a violation of any applicable fraudulent conveyance or
similar law of any relevant jurisdiction, the liability of the Guarantors under
this Agreement shall be reduced to the maximum amount permissible under such
fraudulent conveyance or similar law.

     Section 10.2 EXECUTION AND DELIVERY OF GUARANTEES. To evidence their
Guarantees set forth in this Agreement, the Guarantors hereby agree that a
notation of such Guarantee shall be endorsed by an Officer of each Guarantor on
any Note authenticated and delivered by the Administrative

                                      -59-
<PAGE>

Agent on or after the date hereof. The form of such notation is included in the
Form of Note attached as Exhibit B to this Agreement.

     (a) Notwithstanding the foregoing, the Guarantors hereby agree that their
Guarantee set forth herein shall remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of such Guarantee.

     (b) The Guarantors hereby waive diligence, presentment, demand of payment,
filing of claims with a court in the event of insolvency or bankruptcy of the
Borrower, any right to require a proceeding first against the Borrower, protest,
notice and all demands whatsoever, and each Guarantor covenants that its
Guarantee made pursuant to this Agreement will not be discharged except by
complete performance of the obligations contained in the Notes and the
Agreement.

     (c) If any Lender or the Administrative Agent is required by any court or
otherwise to return to the Borrower or the Guarantors, or any Custodian,
Administrative Agent, liquidator or other similar official acting in relation to
either the Borrower or the Guarantors, any amount paid by either to the
Administrative Agent or such Lender, the Guarantee made pursuant to this
Agreement, to the extent theretofore discharged, shall be reinstated in full
force and effect.

     (d) The Guarantors hereby agree that their obligations hereunder shall be
unconditional, regardless of the validity, regularity or enforceability of the
Notes or the Agreement, the absence of any action to enforce the same, any
waiver or consent by any Lender with respect to any provisions of the Notes or
the Agreement, the recovery of any judgment against the Borrower, any action to
enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a guarantor.

     (e) The Guarantors agree that they shall not be entitled to any right of
subrogation in relation to the Lenders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. The
Guarantors further agree that, as between the Guarantors, on the one hand, and
the Lenders and the Administrative Agent, on the other hand:

                  (i) the maturity of the Obligations guaranteed hereby may be
         accelerated as provided in Article VII of this Agreement for the
         purposes of the Guarantee made pursuant to this Agreement,
         notwithstanding any stay, injunction or other prohibition preventing
         such acceleration in respect of the obligations guaranteed hereby;

                  (ii) in the event of any declaration of acceleration of such
         Obligations as provided in Article VII of this Agreement, such
         Obligations (whether or not due and payable) shall forthwith become due
         and payable by the Guarantors for the purpose of the Guarantee made
         pursuant to this Agreement; and

                  (iii) the Guarantors shall have the right to seek contribution
         from any other non-paying Guarantor so long as the exercise of such
         right does not impair the rights of the Lenders or the Administrative
         Agent under the Guarantee made pursuant to this Agreement.

     Section 10.3 GUARANTORS MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

     (a) Nothing contained in this Agreement or in the Notes shall prevent (a)
any consolidation or merger of any of the Guarantors with or into the Borrower
or any other Guarantor, (b) any transfer, sale or conveyance of the property of
any of the Guarantors as an entirety or substantially as an entirety to the
Borrower or any other Guarantor or (c) any merger of a Guarantor with or into an

                                      -60-
<PAGE>

Affiliate of that Guarantor that has no significant assets or liabilities and
was incorporated solely for the purpose of reincorporating such Guarantor in
another State of the United States so long as the amount of Indebtedness of the
Borrower and its Restricted Subsidiaries is not increased thereby.

     (b) No Guarantor may consolidate with or merge with or into (whether or not
such Guarantor is the surviving Person) another Person (except the Borrower or
another Guarantor) unless:

                  (i) subject to the provisions of the following paragraph, the
         Person formed by or surviving any such consolidation or merger (if
         other than such Guarantor) or to which such sale, assignment, transfer,
         lease, conveyance or other disposition shall have been made assumes all
         the obligations of such Guarantor pursuant to a supplemental agreement
         in form and substance reasonably satisfactory to the Administrative
         Agent under the Notes and this Agreement;

                  (ii) immediately after giving effect to such transaction, no
         Default or Event of Default exists; and

                  (iii) the Borrower (A) would be permitted by virtue of the
         Borrower's pro forma Fixed Charge Coverage Ratio, immediately after
         giving effect to such transaction, to incur at least $1.00 of
         additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
         test set forth in Section 4.7 or (B) would have a pro forma Fixed
         Charge Coverage Ratio that is greater than the actual Fixed Charge
         Coverage Ratio for the same four-quarter period without giving pro
         forma effect to such transaction.

         Notwithstanding the foregoing paragraph, (i) any Guarantor may
consolidate with, merge into or transfer all or part of its properties and
assets to the Borrower and (ii) any Guarantor may merge with an Affiliate that
has no significant assets or liabilities and was incorporated solely for the
purpose of reincorporating such Guarantor in another State of the United States
so long as the amount of Indebtedness of the Borrower and its Restricted
Subsidiaries is not increased thereby.

     (c) In the event of a sale or other disposition of all of the assets of any
Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of all of the Capital Stock of any Guarantor, then such Guarantor
(in the event of a sale or other disposition, by way of such a merger,
consolidation or otherwise, of all of the Capital Stock of such Guarantor) or
the corporation acquiring the property (in the event of a sale or other
disposition of all of the assets of such Guarantor) will be released and
relieved of any obligations under its Subsidiary Guarantee; provided that the
Net Proceeds of such sale or other disposition are applied in accordance with
the applicable provisions of Section 4.8.

     (d) In case of any such consolidation, merger, sale or conveyance and upon
the assumption by a successor corporation, by a supplemental agreement, executed
and delivered to the Administrative Agent and satisfactory in form to the
Administrative Agent, of the Guarantee made pursuant to this Agreement and the
due and punctual performance of all of the covenants and conditions of this
Agreement to be performed by the Guarantors, such successor corporation shall
succeed to and be substituted for the Guarantors with the same effect as if it
had been named herein as one of the Guarantors. Such successor corporation
thereupon may cause to be signed any or all of the Guarantees to be endorsed
upon the Notes issuable under this Agreement which theretofore shall not have
been signed by the Borrower and delivered to the Administrative Agent. All the
Guarantees so issued shall in all respects have the same legal rank and benefit
under the Agreement as the Guarantees theretofore and

                                      -61-
<PAGE>

thereafter issued in accordance with the terms of this Agreement as though all
of such Guarantees had been issued at the date of the execution hereof.

     Section 10.4 RELEASES. (a) Concurrently with any sale of assets (including,
if applicable, all of the Capital Stock of the Guarantors), all Liens, if any,
in favor of the Administrative Agent in the assets sold thereby shall be
released. If the assets sold in such sale or other disposition include all or
substantially all of the assets of the Guarantors or all of the Capital Stock of
the Guarantors, then the Guarantors (in the event of a sale or other disposition
of all of the Capital Stock of any of the Guarantors) or the Person acquiring
the property (in the event of a sale or other disposition of all or
substantially all of the assets of any of the Guarantors) shall be released from
and relieved of its obligations under this Agreement and its Guarantee made
pursuant hereto ; provided, that in the event of an Asset Sale, the Net Proceeds
from such sale or other disposition are treated in accordance with Sections 2.4
and 4.8. Upon delivery by the Borrower to the Administrative Agent of an
Officers' Certificate to the effect that such sale or other disposition was made
by the Borrower or the Guarantors, as the case may be, in accordance with the
provisions of this Agreement, including without limitation, Sections 2.4 and
4.8, the Administrative Agent shall execute any documents reasonably required in
order to evidence the release of the Guarantors from their obligations under
this Agreement and their Guarantee made pursuant hereto. If the Guarantors are
not released from their obligations under their Guarantees, they shall remain
liable for the full amount of principal of and interest on the Notes and for the
other obligations of the Guarantors under this Agreement.

     (b) Upon the designation of any of the Guarantors as an Unrestricted
Subsidiary in accordance with the terms of this Agreement, such Guarantor shall
be released and relieved of all of its obligations under this Agreement. Upon
delivery by the Borrower to the Administrative Agent of an Officers' Certificate
and an opinion of counsel to the effect that such designation of such Guarantor
as an Unrestricted Subsidiary was made by the Borrower in accordance with the
provisions of this Agreement, the Administrative Agent shall execute any
documents reasonably required in order to evidence the release of such Guarantor
from its obligations under its Guarantee. Any of the Guarantors not released
from their obligations under the Guarantee shall remain liable for the full
amount of principal of and interest on the Notes and for the other obligations
of any of the Guarantors under this Agreement as provided in this Article X.

                                      -62-
<PAGE>

     Section 10.5 NO RECOURSE AGAINST OTHERS. No past, present or future
director, officer, employee, incorporator, stockholder or agent of the
Guarantors, as such, shall have any liability for any obligations of the
Borrower or any Guarantor, any Subsidiary Guarantee, this Agreement or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each Lender by making a Bridge Loan waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Notes.

     Section 10.6 SUBORDINATION OF SUBSIDIARY GUARANTEES; ANTI-LAYERING. No
Guarantor shall incur, create, issue, assume, guarantee or otherwise become
liable for any Indebtedness that is subordinate or junior in right of payment to
any Senior Debt of a Guarantor and senior in any respect in right of payment to
any of the Guarantees. Notwithstanding the foregoing sentence, the Guarantee of
each Guarantor shall be subordinated to the prior payment in full of all Senior
Debt of that Guarantor (in the same manner and to the same extent that the Notes
are subordinated to Senior Debt), which shall include all guarantees of Senior
Debt.

                                   ARTICLE XI
                            THE ADMINISTRATIVE AGENT

     Section 11.1 APPOINTMENT. Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement, the other Loan Documents, the Exchange Note Indenture and the
Exchange Notes, and each such Lender irrevocably authorizes the Administrative
Agent, in such capacity, to take such action on its behalf under the provisions
of this Agreement, the other Loan Documents, the Exchange Note Indenture and the
Exchange Notes and to exercise such powers and perform such duties as are
expressly delegated to the Administrative Agent by the terms of this Agreement,
the other Loan Documents, the Exchange Note Indenture and the Exchange Notes,
together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.

     Section 11.2 DELEGATION OF DUTIES. The Administrative Agent may execute any
of its duties under this Agreement, the other Loan Documents, the Exchange Note
Indenture and the Exchange Notes by or through agents or attorneys-in-fact and
shall be entitled to the advice of counsel concerning all matters pertaining to
such duties. The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

     Section 11.3 EXCULPATORY PROVISIONS. Neither the Administrative Agent, nor
any of its officers, directors, employees, agents, advisors, attorneys-in-fact
or Affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with this Agreement or any
other Loan Document (except to the extent that any of the foregoing are found by
a final and nonappealable decision of a court of competent jurisdiction to have
resulted solely from its or such Person's own gross negligence or willful
misconduct) or (ii) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by the Borrower or any
of its Subsidiaries or any officer thereof contained in this Agreement or any
other Loan Document or in any certificate, report, statement, opinion or other
document referred to or provided for in, or received by the Administrative Agent
under or in connection with, this Agreement or any other Loan Document or for
the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Loan Document or for any failure of the Borrower
or any of its Subsidiaries to perform its obligations hereunder or thereunder.
The Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or

                                      -63-
<PAGE>

conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of the Borrower or any of its Subsidiaries.

     Section 11.4 RELIANCE BY THE ADMINISTRATIVE AGENT. The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
instrument, writing, resolution, notice, consent, certificate, affidavit,
letter, facsimile, telex or teletype message, statement, order or other document
or conversation believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the
Borrower or any of its Subsidiaries), independent accountants and other experts
selected by the Administrative Agent. The Administrative Agent may deem and
treat the payee of the Notes as the owner thereof for all purposes unless a
written notice of assignment, negotiation or transfer thereof shall have been
filed with the Administrative Agent. The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document unless it shall first receive such advice or concurrence of
the Majority Lenders as it deems appropriate or it shall first be indemnified to
its satisfaction by the Lenders against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action.
The Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement, the other Loan Documents, the
Exchange Notes and the Exchange Note Indenture in accordance with a request of
the Majority Lenders, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders and all future holders of
the Bridge Loans.

     Section 11.5 NOTICE OF DEFAULT. The Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless the Administrative Agent has received notice from a
Lender, the Borrower or any of its Subsidiaries referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
"notice of default." In the event that the Administrative Agent receives such a
notice, the Administrative Agent shall give notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Majority Lenders;
provided that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interests of the
Lenders.

     Section 11.6 NON-RELIANCE ON THE ADMINISTRATIVE AGENT AND OTHER LENDERS.
Each Lender expressly acknowledges that neither the Administrative Agent nor the
Arrangers, or any of their officers, directors, employees, agents, advisors,
attorneys-in-fact or Affiliates has made any representations or warranties to it
and that no act by the Administrative Agent or Arrangers hereafter taken,
including any review of the affairs of the Borrower or any of its Subsidiaries,
shall be deemed to constitute any representation or warranty by the
Administrative Agent or Arrangers to any Lender. Each Lender represents to the
Administrative Agent and the Arrangers that it has, independently and without
reliance upon the Administrative Agent, and the Arrangers or any other Lenders,
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, operations, property,
financial and other condition, prospects and creditworthiness of the Borrower
and its Subsidiaries and made its own decision to make its Bridge Loans
hereunder and enter into this Agreement. Each Lender confirms that it is a
qualified institutional buyer within the meaning of Rule 144A under the
Securities Act. Each Lender also represents that it will, independently and
without reliance upon the Administrative Agent, the Arrangers or any other
Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit analysis, appraisals and decisions
in taking or not taking action under this Agreement, the other Loan Documents,
the Exchange Notes and the Exchange Note Indenture, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition, prospects and
creditworthiness of the Borrower and its Subsidiaries. Except for notices,
reports and other

                                      -64-
<PAGE>

documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent and the Arrangers shall
have no any duty or responsibility to provide any Lender with any credit or
other information concerning the business, operations, property, financial or
other condition, prospects or creditworthiness of the Borrower or any of its
Subsidiaries which may come into the possession of the Administrative Agent, the
Arrangers or any of their respective officers, directors, employees, agents,
advisors, attorneys-in-fact or Affiliates.

     Section 11.7 INDEMNIFICATION. The Lenders agree to indemnify the Arrangers
and the Administrative Agent in their respective capacities as such (to the
extent not reimbursed by the Borrower or any of its Subsidiaries and without
limiting the obligation of the Borrower and any of its Subsidiaries to do so),
ratably according to their respective Commitments in effect on the date on which
indemnification is sought (or, if indemnification is sought after the date upon
which the Commitments shall have terminated, ratably in accordance with the
aggregate principal amount of Bridge Loans held by each Lender on such date, or,
if indemnification is sought after the date upon which the Bridge Loans have
been paid in full, ratably in accordance with the aggregate principal amount of
Bridge Loans held by each Lender immediately prior to such date), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without limitation, at any time
following the payment of the Bridge Loans) be imposed on, incurred by or
asserted against the Arrangers or the Administrative Agent in any way relating
to or arising out of, the Commitments, this Agreement, any other Loan Document
or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by
the Administrative Agent under or in connection with any of the foregoing;
provided, that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements that are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted solely from the
Administrative Agent's gross negligence or willful misconduct. The agreements in
this subsection shall survive the payment of the Bridge Loans and all other
Obligations payable hereunder.

     Section 11.8 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY. The
Administrative Agent and its Affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Borrower as though the
Administrative Agent were not acting in such capacities hereunder and under the
other Loan Documents, the Exchange Notes and the Exchange Note Indenture. With
respect to the Bridge Loans made or renewed by it and the Notes issued to it,
the Administrative Agent shall have the same rights and powers under this
Agreement, the other Loan Documents the Exchange Notes and the Exchange Note
Indenture as any Lender and may exercise the same as though it were not the
Administrative Agent, and the terms "Lender" and "Lenders" shall include the
Administrative Agent in its individual capacity.

     Section 11.9 SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may
resign as Administrative Agent upon 30 days' notice to the Lenders. If the
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Loan Documents, then the Majority Lenders shall appoint from among
the Lenders a successor agent for the Lenders, which successor agent shall
(unless an Event of Default shall have occurred and be continuing) be subject to
approval by the Borrower, whereupon such successor agent shall succeed to the
rights, powers and duties of the Administrative Agent, hereunder. Effective upon
such appointment and approval, the term "Administrative Agent" shall mean and
include such successor agent, and the former Administrative Agent's rights,
powers and duties as Administrative Agent shall be terminated, without any other
or further act or deed on the part of such former Administrative Agent any of
the parties to this Agreement or any holders of the Bridge Loans. If no
successor agent has accepted appointment to replace such resigning Agent by the
date that is 30 days following such Agent's notice of resignation, such Agent's
resignation shall nevertheless thereupon become effective, and the Lenders shall
assume and perform all

                                      -65-
<PAGE>

of the duties of such Agent hereunder until such time, if any, as the Majority
Lenders appoint a successor agent as provided for above. After any retiring
Administrative Agent's resignation as Administrative Agent the provisions of
this Article XI shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent under this Agreement and the
other Loan Documents.

Section 11.10 LIMITATION OF DUTIES. Except as expressly set forth herein, the
Arrangers, in their respective capacities as such, shall have no duties or
responsibilities, and shall incur no liabilities, under this Agreement, the
other Loan Documents, the Exchange Notes or the Exchange Note Indenture.

                                  ARTICLE XII
                                  MISCELLANEOUS

     Section 12.1 EXPENSES; DOCUMENTARY TAXES. The Borrower and the Guarantors
hereby jointly and severally agree (a) to pay or reimburse the Administrative
Agent and the Arrangers for all their reasonable out-of-pocket costs and
expenses incurred in connection with the syndication of the Facilities (other
than fees payable to syndicate members, but including, without limitation,
expenses incurred in connection with due diligence) and the development,
preparation and execution of, and any amendment, supplement or modification to,
this Agreement, the other Loan Documents the Exchange Note, the Exchange Note
Indenture and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including, without limitation, the reasonable fees and
disbursements of a single counsel to the Administrative Agent (in addition to
any local counsel), (b) to pay or reimburse each Lender, the Administrative
Agent and each of the Arrangers for all their costs and expenses incurred in
connection with the enforcement or preservation of any rights under this
Agreement, the other Loan Documents, the Exchange Notes, the Exchange Note
Indenture and any such other documents, including, without limitation, the fees
and disbursements of counsel to each Lender and of counsel to the Administrative
Agent, and (c) to pay, indemnify, and hold each Lender and the Administrative
Agent harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp,
excise and other taxes, if any, which may be payable or determined to be payable
in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, other Loan Documents, the Exchange Notes and the Exchange Note
Indenture and any such other documents; provided, that such amounts shall only
be payable to the extent that they are not due and payable by the Borrower under
any other provision herein.

     Section 12.2 NOTICES. All notices and other communications pertaining to
this Agreement or any Notes shall be in writing and shall be delivered (a) in
Person, (b) by facsimile, (c) by registered or certified mail, return receipt
requested, postage prepaid, or (d) by overnight courier, addressed as follows:

                       (i) If to the Administrative Agent, to it at:

                           Lehman Commercial Paper Inc.
                           790 Seventh Avenue
                           New York, New York 10019
                           Attention:  Andrew Keith
                           Facsimile No.:  (212) 526-0242

                                      -66-
<PAGE>

                           with a copy to:

                           Latham & Watkins
                           885 Third Avenue, Suite 1000
                           New York, New York 10022
                           Attention:  Kirk A. Davenport II
                           Facsimile No.:  (212) 751-4864

                  (ii) If to any Lender, to it at its address set forth on the
         signature pages hereto;

                  (iii) If to the Borrower or any Guarantor, to it at:

                           L-3 Communications Corporation
                           600 Third Avenue, 34th Floor
                           New York, New York 10016
                           Attention:  Senior Vice President--Finance
                           Facsimile No.:  (212) 805-5440

                           with copies to:

                           L-3 Communications Corporation
                           600 Third Avenue, 34th Floor
                           New York, New York 10016
                           Attention: Senior Vice President, Secretary and
                             General Counsel
                           Facsimile No.: (212) 805-5494

                           Simpson Thacher & Bartlett
                           425 Lexington Avenue
                           New York, New York 10017
                           Attn:  Marissa C. Wesely
                           Facsimile No.:  (212) 455-2502

or to such other Person or address as shall be furnished in writing delivered to
the other parties in compliance with this Section.

     Section 12.3 CONSENT TO AMENDMENTS AND WAIVERS.

     (a) Except as provided in Section 12.3(b), this Agreement and the Notes may
be amended, supplemented or modified with the consent of the Borrower, each
Guarantor and the Majority Lenders and any existing Default or Event of Default
and its consequences or compliance with any provision of this Agreement or the
Notes may be waived with the consent of the Majority Lenders.

     (b) Notwithstanding the provisions of Section 12.3(a), without the consent
of each Lender affected thereby, no amendment, change, modification or waiver
may: (i) extend the maturity of or time of payment of principal or interest on
any Bridge Loan or alter or waive any of the provisions with respect to the
mandatory prepayment of any Bridge Loan, (ii) reduce the rate of interest,
including default interest, or the principal amount of any Bridge Loan, (iii)
waive a Default or Event of Default in the payment of principal of or premium,
if any, or interest on the Bridge Loans (except a rescission of acceleration of
the Notes by the Majority Lenders and a waiver of the payment default that
resulted from such acceleration), (iv) make any Bridge Loan payable in money
other than that stated in this Agreement,

                                      -67-
<PAGE>

(v) make any change in the provisions of this Agreement relating to waivers of
past Defaults set forth in Section 7.5 and 7.6 or the rights of Lenders to
receive payments of principal or interest on the Bridge Loans, (vi) change the
subordination provisions in a manner that would adversely affect the Lenders,
(vii) reduce the percentage of Lenders necessary to amend, modify, supplement or
change the Loan Documents, including, without limitation, this Section 12.3,
(viii) reduce or extend the date of payment of fees to be paid in connection
with the Loan Documents, (ix) release any Guarantor from its Guarantee except as
provided in this Agreement or (x) change the mandatory exchange provisions set
forth in this Agreement. Notwithstanding the provisions of Section 12.3(a), the
provisions of Article XII shall not be amended or supplemented without the
consent of the Administrative Agent.

     (c) Any waiver or amendment, supplement or modification pursuant to this
Section 12.3 shall apply equally to each of the Lenders and shall be binding
upon the Borrower, the Lenders, the Administrative Agent, the Arrangers and all
future holders of the Bridge Loans. In the case of any waiver, the Borrower, the
Lenders, the Administrative Agent and the Arrangers shall be restored to their
former positions and rights hereunder and under the other Loan Documents, and
any Default or Event of Default waived shall be deemed to be cured and not
continuing. No such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereon.

                                      -68-
<PAGE>

     Section 12.4 PARTIES. This Agreement shall inure to the benefit of and be
binding upon the Borrower, each Guarantor, the Lenders, the Administrative
Agent, the Arrangers and each of their respective successors and assigns. Except
as expressly in this Agreement, nothing expressed or mentioned in this Agreement
is intended or shall be construed to give any other Person any legal or
equitable right, remedy or claim under or in respect of this Agreement or any
provision herein contained.

     Section 12.5 New York Law; Submission to Jurisdiction; Waiver of Jury
Trial. THIS AGREEMENT AND THE NOTES SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HEREBY SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY
(EACH, A "NEW YORK COURT") FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF
OR RELATING TO THE NOTES, THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, THE
EXCHANGE NOTES, THE EXCHANGE NOTE INDENTURE OR THE TRANSACTIONS CONTEMPLATED
HEREBY. EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF
ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THE NOTES, THIS AGREEMENT, ANY OF THE
OTHER LOAN DOCUMENTS, THE EXCHANGE NOTES, THE EXCHANGE NOTE INDENTURE OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

     Section 12.6 REPLACEMENT NOTES. If any Note becomes mutilated and is
surrendered by the applicable Lender to the Borrower, or if any Lender claims
that any of its Notes has been lost, destroyed or wrongfully taken, the Borrower
shall execute and deliver to such Lender a replacement Notes, upon the delivery
by such Lender evidence to the Borrower's reasonable satisfaction of such
Lender's ownership thereof and of an indemnity to the Borrower to save it and
any agent of it harmless in respect of such loss, destruction or wrongful taking
with respect to such Notes.

     Section 12.7 LIMITATION OF LIABILITY. No claim may be made by the
Borrower, any Guarantor or any other Person against the Administrative Agent,
the Arrangers or any Lender or the Affiliates, directors, officers, employees,
attorneys or agents of any of them for any special, indirect, consequential or
punitive damages in respect of any claim for breach of contract or any theory of
liability arising out of or related to the transactions contemplated by this
Agreement, the other Loan Documents, the Exchange Notes or the Exchange Note
Indenture or any act, omission or event occurring in connection therewith; and
the Borrower and each Guarantor hereby waive, release and agree not to sue and
shall cause each of its respective Subsidiaries to waive, release or agree not
to sue (if required), upon any claim for any such damages, whether or not
accrued and whether or not known or suspected to exist in its favor.

     Section 12.8 INDEPENDENCE OF COVENANTS. All covenants hereunder shall be
given independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or be otherwise within the limitations of, another covenant shall
not avoid the occurrence of a Default or Event of Default if such action is
taken or condition exists.

Section 12.9 CURRENCY INDEMNITY. The Borrower acknowledges and agrees that this
is a credit transaction where specification of Dollars is of the essence and
Dollars shall be the currency of

                                      -69-
<PAGE>

account and payment in all events. If, pursuant to a judgment or for any other
reason, payment shall be made in another currency and such payment, after prompt
conversion to Dollars and transfer to New York City in accordance with normal
banking procedures, falls short of the sum due the Lenders in Dollars, the
Borrower shall pay the Lender such shortfall and the Lenders shall have a
separate cause of action for such amount. If the amount of Dollars so purchased
exceeds the sum due the Lenders in Dollars, the Lenders shall remit promptly to
the Borrower such excess.

     Section 12.10 SUCCESSORS AND ASSIGNS. Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party; and all covenants and agreements of the
Borrower and each Guarantor in this Agreement shall bind their respective
successors and assigns. Neither the Borrower nor any Guarantor may assign or
transfer any of its rights or obligations hereunder without the prior written
consent of all of the Lenders.

     Section 12.11 INTEGRATION CLAUSE. This Agreement, the Exchange Note
Indenture, the Escrow Agreement and the other documents executed in connection
therewith constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements among the
parties relating to the subject matter hereof, except for those provisions in
the Fee Letter and the Engagement Letter that are in addition to the provisions
contained herein.

     Section 12.12 SEVERABILITY CLAUSE. In case any provision in this Agreement
or any Notes shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby and such provision shall be ineffective
in such jurisdiction only to the extent of such invalidity, illegality or
unenforceability.

     Section 12.13 SURVIVAL OF CERTAIN PROVISIONS. All representations and
warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of the
Bridge Loans hereunder. In addition, whether or not the transactions
contemplated by this Agreement are consummated, (i) the Obligations of the
Borrower and the Guarantors to reimburse the Lenders for all of their
out-of-pocket expenses pursuant to Section 12.1 and the Engagement Letter and
(ii) the indemnity provisions contained in Sections 2.6, 2.8 and 11.7 shall, in
each case, remain operative and in full force and effect.

                            [signature pages follow]

                                      -70-
<PAGE>

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

                                   L-3 COMMUNICATIONS CORPORATION

                                   By:
                                       ------------------------------------
                                         Name:
                                         Title:

COLEMAN RESEARCH CORPORATION
EER SYSTEMS, INC.
ELECTRODYNAMICS, INC.
HENSCHEL, INC.
HYGIENETICS ENVIRONMENTAL SERVICES, INC.
INTERSTATE ELECTRONICS CORPORATION
KDI PRECISION PRODUCTS, INC.
L-3 COMMUNICATIONS AIS GP CORPORATION
L-3 COMMUNICATIONS ANALYTICS CORPORATION
L-3 COMMUNICATIONS AYDIN CORPORATION
L-3 COMMUNICATIONS DBS MICROWAVE, INC.
L-3 COMMUNICATIONS ESSCO, INC.
L-3 COMMUNICATIONS ILEX SYSTEMS, INC.
L-3 COMMUNICATIONS INVESTMENTS, INC.
L-3 COMMUNICATIONS SPD TECHNOLOGIES, INC.
L-3 COMMUNICATIONS STORM CONTROL SYSTEMS, INC.
MICRODYNE CORPORATION
MPRI, INC.
PAC ORD, INC.
POWER PARAGON, INC.
SOUTHERN CALIFORNIA MICROWAVE, INC.
SPD ELECTRICAL SYSTEMS, INC.
SPD HOLDINGS, INC.
SPD SWITCHGEAR, INC.
         as the Guarantors

By:
   -------------------------------------------
         Name: Christopher C. Cambria
         Title:   Vice President and Secretary

                                      -71-
<PAGE>

L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.

By:     L-3 Communications AIS GP Corporation,
             as general partner

     By:
         -------------------------------------
                Name:
                Title:  Authorized Person

                                             Accepted and agreed to with respect
                                             to Sections 2.4, 3.7, 3.8, 3.9,
                                             3.10, 3.20 and 3.21 only:

                                             L-3 COMMUNICATIONS HOLDINGS, INC.

                                             By:
                                                --------------------------------
                                                   Name:
                                                   Title:

                                      -72-
<PAGE>

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

LEHMAN COMMERCIAL PAPER INC.,
as Administrative Agent

By:
   --------------------------
     Name:
     Title:

LEHMAN BROTHERS INC.,
as Joint Book-Running Manager and Joint Lead Arranger

By:
   --------------------------
        Name:
        Title:

BANC OF AMERICA BRIDGE LLC
as Joint Book-Running Manager and Joint Lead Arranger

By:
   --------------------------
        Name:
        Title:

CREDIT SUISSE FIRST BOSTON CORPORATION
as an Arranger

By:
   --------------------------
        Name:
        Title:

                                      -73-
<PAGE>

LENDERS:

Commitment Amount:

$250,000,000.00              LEHMAN COMMERCIAL PAPER INC.

                             By:
                                -----------------------------------------
                                 Name:
                                 Title:

                             Wire Transfer Instructions

                             Name of Bank:          Bankers Trust Company
                             Address:               4 Albany Street
                                                    New York, New York  10006

                             ABA#:                  021001033
                             For the account of     NYLTD Loan Services
                                                    Omnibus Account
                             Account No.:           01-422-898

                             FOR FURTHER CREDIT TO LEHMAN COMMERCIAL PAPER INC.
                             Reference:
                             Attention:
                             Telephone:                 212-
                             Fax:                       212-

                                      -74-
<PAGE>

Commitment Amount:

$125,000,000.00               BANC OF AMERICA BRIDGE LLC

                              By:
                                 ------------------------------------
                                  Name:
                                  Title:

                              Wire Transfer Instructions

                              Name of Bank:
                              Address:

                              ABA#:
                              For the account of

                              Account No.:

                              FOR FURTHER CREDIT TO BANC OF AMERICA BRIDGE LLC
                              Reference:
                              Attention:
                              Telephone:                 212-
                              Fax:                       212-

                                      -75-

<PAGE>

Commitment Amount:

$125,000,000.00              CREDIT SUISSE FIRST BOSTON, CAYMAN
                             ISLANDS BRANCH

                             By:
                                 -------------------------------
                                 Name:
                                 Title:

                             Wire Transfer Instructions

                             Name of Bank:
                             Address:

                             ABA#:
                             For the account of

                             Account No.:

                             FOR FURTHER CREDIT TO CREDIT SUISSE FIRST BOSTON,
                             CAYMAN ISLANDS BRANCH
                             Reference:
                             Attention:
                             Telephone:                 212-
                             Fax:                       212-

                                      -76-

<PAGE>

                                                                      EXHIBIT A

                                     FORM OF
                            ASSIGNMENT AND ACCEPTANCE

                  Reference is made to the Bridge Loan Agreement, dated as of
March 8, 2002 (as amended, supplemented or otherwise modified from time to time,
the "BRIDGE LOAN AGREEMENT"), by and among L-3 Communications Corporation, a
Delaware corporation (the "BORROWER"), L-3 Communications Holdings, Inc., the
Guarantors party thereto, the Lenders party thereto, Lehman Brothers Inc. and
Banc of America Bridge LLC, as joint book-running managers and joint lead
arrangers, Credit Suisse First Corporation, as an arranger, and Lehman
Commercial Paper Inc., as Administrative Agent for the Lenders (in such
capacity, the "ADMINISTRATIVE AGENT"). Unless otherwise defined herein, terms
defined in the Bridge Loan Agreement and used herein shall have the meanings
given to them in the Bridge Loan Agreement.

                  1. The Assignor identified on Schedule I hereto (the
"ASSIGNOR") and the Assignee identified on Schedule I hereto (the "ASSIGNEE")
agree as follows:The Assignor hereby irrevocably sells and assigns to the
Assignee without recourse to the Assignor, and the Assignee hereby irrevocably
purchases and assumes from the Assignor without recourse to the Assignor, as of
the Effective Date (as defined below), the percentage interest described in
Schedule 1 hereto (the "ASSIGNED INTEREST") in and to the Assignor's rights and
obligations under the Bridge Loan Agreement, in a principal amount as set forth
on Schedule I hereto.

                  2. The Assignor (a) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Bridge Loan Agreement or with
respect to the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Bridge Loan Agreement, any other Loan Document or
any other instrument or document furnished pursuant thereto, other than that the
Assignor has not created any adverse claim upon the interest being assigned by
it hereunder and that such interest is free and clear of any such adverse claim;
(b) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower, any of its Subsidiaries or
any other obligor or the performance or observance by the Borrower, any of its
Subsidiaries or any other obligor of any of their respective obligations under
the Bridge Loan Agreement or any other Loan Document or any other instrument or
document furnished pursuant hereto or thereto; and (c) attaches any Notes held
by it evidencing the Assigned Interest and (i) requests that the Administrative
Agent, upon request by the Assignee, exchange the attached Notes for a new Note
or Notes payable to the Assignee and (ii) if the Assignor has retained any
interest under the Bridge Loan Agreement, requests that the Administrative Agent
exchange the attached Notes for a new Note or Notes payable to the Assignor, in
each case in amounts which reflect the assignment being made hereby (and after
giving effect to any other assignments which are effective on the Effective
Date).

                  3. The Assignee (a) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance; (b) confirms that it
has received a copy of the Bridge Loan Agreement, and all schedules and exhibits
thereto together with copies of the financial information delivered pursuant to
Section 4.2 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (c) agrees that it will, independently and without
reliance upon the Assignor, the Administrative Agent or any other Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Bridge Loan Agreement, the other Loan Documents, the Exchange Notes,
the Exchange Note Indenture or any other instrument or document furnished
pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent
to take such

<PAGE>

action as agent on its behalf and to exercise such powers and discretion under
the Bridge Loan Agreement, the other Loan Documents, the Exchange Notes, the
Exchange Note Indenture or any other instrument or document furnished pursuant
hereto or thereto as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are incidental thereto; (e) agrees that it
will be bound by the provisions of the Bridge Loan Agreement and will perform in
accordance with its terms all the obligations which by the terms of the Bridge
Loan Agreement are required to be performed by it as a Lender; and (f) agrees
that it shall have no recourse against the Assignor with respect to any matters
relating to the Bridge Loan Agreement, the other Loan Documents, the Exchange
Notes, the Exchange Note Indenture or any other instruments or documents
furnished pursuant hereto or thereto.

                  4. The Assignor hereby assigns to Assignee all of its rights
and obligations under the Fee Letter with respect to the Assigned Interest.

                  5. The effective date of this Assignment and Acceptance shall
be the Effective Date of Assignment described in Schedule I hereto (the
"EFFECTIVE DATE"). Following the execution of this Assignment and Acceptance, it
will be delivered to the Administrative Agent for acceptance by it and recording
by the Administrative Agent pursuant to Section 6.3 of the Bridge Loan
Agreement, effective as of the Effective Date (which shall not, unless otherwise
agreed to by the Administrative Agent, be earlier than five Business Days after
the date of such acceptance and recording by the Administrative Agent).

                  6. Upon such acceptance and recording, from and after the
Effective Date, the Administrative Agent shall make all payments in respect of
the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignor for amounts which have accrued to the Effective Date
and to the Assignee for amounts which have accrued subsequent to the Effective
Date. The Assignor and the Assignee shall make all appropriate adjustments in
payments by the Administrative Agent for periods prior to the Effective Date or
with respect to the making of this assignment directly between themselves.

                  7. From and after the Effective Date, (a) the Assignee shall
be a party to the Bridge Loan Agreement and, to the extent provided in this
Assignment and Acceptance, have the rights and obligations of a Lender
thereunder, under the other Loan Documents, the Exchange Notes and the Exchange
Note Indenture and shall be bound by the provisions thereof and (b) the Assignor
shall, to the extent provided in this Assignment and Acceptance, relinquish its
rights and be released from its obligations under the Bridge Loan Agreement.

                  8. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                                       2

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed as of the date first above written by
their respective duly authorized officers on Schedule I hereto.

                                       3

<PAGE>

                                   Schedule I
                          to Assignment and Acceptance

Name of Assignor: ______________________________

Name of Assignee: ______________________________

Effective Date of Assignment: __________________

 Principal Commitment or
       Bridge Loan                Commitment or Bridge Loan Percentage
     Amount Assigned                            Assigned(1)
 -----------------------          ------------------------------------

$ -----------------                         ----- . -----------%

----------

1    Calculate the Commitment Percentage that is assigned to at least 9 decimal
     places and show as a percentage of the aggregate commitments of all
     Lenders.

<PAGE>

[Name of Assignee]                           [Name of Assignor]

By:_______________________________           By: ______________________________
    Name:                                        Name:
    Title:                                       Title:

Accepted:

LEHMAN COMMERCIAL PAPER INC.,
as Administrative Agent

By:_______________________________
    Name:
    Title:<PAGE>

                                                                  EXECUTION COPY

================================================================================

                         L-3 COMMUNICATIONS CORPORATION,
                                    As Issuer

                       SENIOR SUBORDINATED NOTES DUE 2009

                           ---------------------------

                                    INDENTURE

                            Dated as of March 8, 2002

                           ---------------------------

                           ---------------------------

                              The Bank of New York,
                                   As Trustee

                           ---------------------------

================================================================================

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

<S>                    <C>                                                                                       <C>
ARTICLE 1. DEFINITIONS AND INCORPORATION BY REFERENCE.............................................................1
-----------------------------------------------------

   SECTION 1.01       DEFINITIONS.................................................................................1
   ------------       ------------
   SECTION 1.02       OTHER DEFINITIONS..........................................................................18
   ------------       ------------------
   SECTION 1.03       INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT..........................................19
   ------------       --------------------------------------------------
   SECTION 1.04       RULES OF CONSTRUCTION......................................................................19
   ------------       ----------------------

ARTICLE 2. THE NOTES.............................................................................................20
--------------------

   SECTION 2.01       FORM AND DATING............................................................................20
   ------------       ----------------
   SECTION 2.02       EXECUTION AND AUTHENTICATION...............................................................20
   ------------       -----------------------------
   SECTION 2.03       REGISTRAR AND PAYING AGENT.................................................................21
   ------------       ---------------------------
   SECTION 2.04       PAYING AGENT TO HOLD MONEY IN TRUST........................................................21
   ------------       ------------------------------------
   SECTION 2.05       HOLDER LISTS...............................................................................22
   ------------       -------------
   SECTION 2.06       TRANSFER AND EXCHANGE......................................................................22
   ------------       ----------------------
   SECTION 2.07       REPLACEMENT NOTES..........................................................................34
   ------------       ------------------
   SECTION 2.08       OUTSTANDING NOTES..........................................................................34
   ------------       ------------------
   SECTION 2.09       TREASURY NOTES.............................................................................35
   ------------       ---------------
   SECTION 2.10       TEMPORARY NOTES............................................................................35
   ------------       ----------------
   SECTION 2.11       CANCELLATION...............................................................................35
   ------------       -------------
   SECTION 2.12       DEFAULTED INTEREST.........................................................................35
   ------------       -------------------
   SECTION 2.13       CUSIP NUMBERS..............................................................................36
   ------------       --------------

ARTICLE 3. REDEMPTION AND PREPAYMENT.............................................................................36
------------------------------------

   SECTION 3.01       [RESERVED].................................................................................36
   ------------       -----------
   SECTION 3.02       SELECTION OF NOTES TO BE REDEEMED..........................................................36
   ------------       ----------------------------------
   SECTION 3.03       NOTICE OF REDEMPTION.......................................................................37
   ------------       ---------------------
   SECTION 3.04       EFFECT OF NOTICE OF REDEMPTION.............................................................37
   ------------       -------------------------------
   SECTION 3.05       DEPOSIT OF REDEMPTION PRICE................................................................38
   ------------       ----------------------------
   SECTION 3.06       NOTES REDEEMED IN PART.....................................................................38
   ------------       -----------------------
   SECTION 3.07       [RESERVED].................................................................................38
   ------------       -----------
   SECTION 3.08       MANDATORY REDEMPTION.......................................................................38
   ------------       ---------------------
   SECTION 3.09       OFFER TO PURCHASE BY APPLICATION OF EXCESS PROCEEDS........................................38
   ------------       ----------------------------------------------------

ARTICLE 4. COVENANTS.............................................................................................40
--------------------

   SECTION 4.01       PAYMENT OF NOTES...........................................................................40
   ------------       -----------------
   SECTION 4.02       MAINTENANCE OF OFFICE OR AGENCY............................................................40
   ------------       --------------------------------
   SECTION 4.03       REPORTS....................................................................................41
   ------------       --------
   SECTION 4.04       COMPLIANCE CERTIFICATE.....................................................................42
   ------------       -----------------------
   SECTION 4.05       TAXES......................................................................................42
   ------------       ------
   SECTION 4.06       [INTENTIONALLY OMITTED]....................................................................43
   ------------       -----------------------
   SECTION 4.07       RESTRICTED PAYMENTS........................................................................43
   ------------       --------------------
   SECTION 4.08       DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES.............................45
   ------------       ---------------------------------------------------------------
   SECTION 4.09       INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK.................................46
   ------------       -----------------------------------------------------------
   SECTION 4.10       ASSET SALES................................................................................49
   ------------       ------------
   SECTION 4.11       TRANSACTIONS WITH AFFILIATES...............................................................50
   ------------       -----------------------------
   SECTION 4.12       LIENS......................................................................................51
   ------------       ------

                                       i
<PAGE>

   SECTION 4.13       FUTURE SUBSIDIARY GUARANTEES...............................................................51
   ------------       -----------------------------
   SECTION 4.14       CORPORATE EXISTENCE........................................................................52
   ------------       --------------------
   SECTION 4.15       OFFER TO REPURCHASE UPON CHANGE OF CONTROL.................................................52
   ------------       -------------------------------------------
   SECTION 4.16       NO SENIOR SUBORDINATED DEBT................................................................53
   ------------       ----------------------------
   SECTION 4.17       PAYMENTS FOR CONSENT.......................................................................53
   ------------       ---------------------
   SECTION 4.18       NO REDEMPTION OF EXISTING SENIOR SUBORDINATED INDEBTEDNESS.................................53
   ------------       -----------------------------------------------------------

ARTICLE 5. SUCCESSORS............................................................................................54
---------------------

   SECTION 5.01       MERGER, CONSOLIDATION, OR SALE OF ASSETS...................................................54
   ------------       -----------------------------------------
   SECTION 5.02       SUCCESSOR CORPORATION SUBSTITUTED..........................................................55
   ------------       ----------------------------------

ARTICLE 6. DEFAULTS AND REMEDIES.................................................................................55
--------------------------------

   SECTION 6.01       EVENTS OF DEFAULT..........................................................................55
   ------------       ------------------
   SECTION 6.02       ACCELERATION...............................................................................57
   ------------       -------------
   SECTION 6.03       OTHER REMEDIES.............................................................................57
   ------------       ---------------
   SECTION 6.04       WAIVER OF PAST DEFAULTS....................................................................57
   ------------       ------------------------
   SECTION 6.05       CONTROL BY MAJORITY........................................................................58
   ------------       --------------------
   SECTION 6.06       LIMITATION ON SUITS........................................................................58
   ------------       --------------------
   SECTION 6.07       RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT..............................................58
   ------------       ----------------------------------------------
   SECTION 6.08       COLLECTION SUIT BY TRUSTEE.................................................................58
   ------------       ---------------------------
   SECTION 6.09       TRUSTEE MAY FILE PROOFS OF CLAIM...........................................................59
   ------------       ---------------------------------
   SECTION 6.10       PRIORITIES.................................................................................59
   ------------       -----------
   SECTION 6.11       UNDERTAKING FOR COSTS......................................................................60
   ------------       ----------------------

ARTICLE 7. TRUSTEE...............................................................................................60
------------------

   SECTION 7.01       DUTIES OF TRUSTEE..........................................................................60
   ------------       ------------------
   SECTION 7.02       RIGHTS OF TRUSTEE..........................................................................61
   ------------       ------------------
   SECTION 7.03       INDIVIDUAL RIGHTS OF TRUSTEE...............................................................62
   ------------       -----------------------------
   SECTION 7.04       TRUSTEE'S DISCLAIMERS......................................................................62
   ------------       ----------------------
   SECTION 7.05       NOTICE OF DEFAULTS.........................................................................62
   ------------       -------------------
   SECTION 7.06       REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES.................................................62
   ------------       -------------------------------------------
   SECTION 7.07       COMPENSATION AND INDEMNITY.................................................................63
   ------------       ---------------------------
   SECTION 7.08       REPLACEMENT OF TRUSTEE.....................................................................64
   ------------       -----------------------
   SECTION 7.09       SUCCESSOR TRUSTEE BY MERGER, ETC...........................................................65
   ------------       ---------------------------------
   SECTION 7.10       ELIGIBILITY; DISQUALIFICATION..............................................................65
   ------------       ------------------------------
   SECTION 7.11       PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY..........................................65
   ------------       --------------------------------------------------

ARTICLE 8. LEGAL DEFEASANCE AND COVENANT DEFEASANCE..............................................................65
---------------------------------------------------

   SECTION 8.01       OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE...................................65
   ------------       ---------------------------------------------------------
   SECTION 8.02       LEGAL DEFEASANCE AND DISCHARGE.............................................................65
   ------------       -------------------------------
   SECTION 8.03       COVENANT DEFEASANCE........................................................................66
   ------------       --------------------
   SECTION 8.04       CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.................................................66
   ------------       -------------------------------------------
   SECTION 8.05       DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS
   ------------       ----------------------------------------------------------------------------------
                           PROVISIONS............................................................................67
                           -----------
   SECTION 8.06       REPAYMENT TO COMPANY.......................................................................68
   ------------       ---------------------
   SECTION 8.07       REINSTATEMENT..............................................................................68
   ------------       --------------

ARTICLE 9. AMENDMENT, SUPPLEMENT AND WAIVER......................................................................69
-------------------------------------------

   SECTION 9.01       WITHOUT CONSENT OF HOLDERS OF NOTES........................................................69
   ------------       ------------------------------------

                                       ii

<PAGE>

   SECTION 9.02       WITH CONSENT OF HOLDERS OF NOTES...........................................................69
   ------------       ---------------------------------
   SECTION 9.03       COMPLIANCE WITH TRUST INDENTURE ACT........................................................71
   ------------       ------------------------------------
   SECTION 9.04       REVOCATION AND EFFECT OF CONSENTS..........................................................71
   ------------       ----------------------------------
   SECTION 9.05       NOTATION ON OR EXCHANGE OF NOTES...........................................................71
   ------------       ---------------------------------
   SECTION 9.06       TRUSTEE TO SIGN AMENDMENTS, ETC............................................................71
   ------------       --------------------------------

ARTICLE 10. SUBORDINATION........................................................................................72
-------------------------

   SECTION 10.01      AGREEMENT TO SUBORDINATE...................................................................72
   -------------      -------------------------
   SECTION 10.02      LIQUIDATION; DISSOLUTION; BANKRUPTCY.......................................................72
   -------------      -------------------------------------
   SECTION 10.03      DEFAULT ON DESIGNATED SENIOR DEBT..........................................................72
   -------------      ----------------------------------
   SECTION 10.04      ACCELERATION OF SECURITIES.................................................................73
   -------------      ---------------------------
   SECTION 10.05      WHEN DISTRIBUTION MUST BE PAID OVER........................................................73
   -------------      ------------------------------------
   SECTION 10.06      NOTICE BY COMPANY..........................................................................73
   -------------      -----------------
   SECTION 10.07      SUBROGATION................................................................................74
   -------------      ------------
   SECTION 10.08      RELATIVE RIGHTS............................................................................74
   -------------      ----------------
   SECTION 10.09      SUBORDINATION MAY NOT BE IMPAIRED BY COMPANY...............................................75
   -------------      ---------------------------------------------
   SECTION 10.10      DISTRIBUTION OR NOTICE TO REPRESENTATIVE...................................................75
   -------------      -----------------------------------------
   SECTION 10.11      RIGHTS OF TRUSTEE AND PAYING AGENT.........................................................75
   -------------      -----------------------------------
   SECTION 10.12      AUTHORIZATION TO EFFECT SUBORDINATION......................................................75
   -------------      --------------------------------------
   SECTION 10.13      AMENDMENTS.................................................................................76
   -------------      -----------

ARTICLE 11. MISCELLANEOUS........................................................................................76
-------------------------

   SECTION 11.01      TRUST INDENTURE ACT CONTROLS...............................................................76
   -------------      -----------------------------
   SECTION 11.02      NOTICES....................................................................................76
   -------------      --------
   SECTION 11.03      COMMUNICATIONS BY HOLDERS OF NOTES WITH OTHER HOLDERS OF NOTES.............................77
   -------------      ---------------------------------------------------------------
   SECTION 11.04      CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.........................................77
   -------------      ---------------------------------------------------
   SECTION 11.05      STATEMENTS REQUIRED IN CERTIFICATE OR OPINION..............................................77
   -------------      ----------------------------------------------
   SECTION 11.06      RULE BY TRUSTEE AND AGENTS.................................................................78
   -------------      ---------------------------
   SECTION 11.07      NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS...................78
   -------------      -------------------------------------------------------------------------
   SECTION 11.08      GOVERNING LAW..............................................................................78
   -------------      --------------
   SECTION 11.09      NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS..............................................78
   -------------      ----------------------------------------------
   SECTION 11.10      SUCCESSORS.................................................................................78
   -------------      -----------
   SECTION 11.11      SEVERABILITY...............................................................................78
   -------------      -------------
   SECTION 11.12      COUNTERPART ORIGINALS......................................................................79
   -------------      ----------------------
   SECTION 11.13      TABLE OF CONTENTS, HEADINGS, ETC...........................................................79
   -------------      ---------------------------------
   SECTION 11.14      HOLDERS OF NOTES PRIOR TO THEIR ISSUANCE...................................................79
   -------------      -----------------------------------------
</TABLE>
                                      iii

<PAGE>

                                    EXHIBITS

EXHIBIT A                         FORM OF NOTE

EXHIBIT B                         FORM OF CERTIFICATE OF TRANSFER

EXHIBIT C                         FORM OF CERTIFICATE OF EXCHANGE

EXHIBIT D                         FORM OF CERTIFICATE FROM ACQUIRING
                                  INSTITUTIONAL ACCREDITED INVESTORS

EXHIBIT E                         FORM OF SUPPLEMENTAL INDENTURE

EXHIBIT F                         FORM OF NOTATION ON SENIOR
                                  SUBORDINATED NOTE RELATING TO
                                  SUBSIDIARY GUARANTEE

                                       iv

<PAGE>

                             CROSS-REFERENCE TABLE*

Trust Indenture                                                  Indenture
Act Section                                                       Section
310   (a)(1)...............................................        7.10
      (a)(2)...............................................        7.10
      (a)(3)...............................................        N.A.
      (a)(4)...............................................        N.A.
      (a)(5)...............................................        7.10
      (b)..................................................        7.10
      (c)..................................................        N.A.
311   (a)..................................................        7.11
      (b)..................................................        7.11
      (c)..................................................        N.A.
312   (a)..................................................        2.05
      (b)..................................................        11.03
      (c)..................................................        11.03
313   (a)..................................................        7.06
      (b)(1)...............................................        10.03
      (b)(2)...............................................        7.07
      (c)..................................................     7.06;11.02
      (d)..................................................        7.06
314   (a)..................................................     4.03;11.02
      (b)..................................................        10.02
      (c)(1)...............................................        11.04
      (c)(2)...............................................        11.04
      (c)(3)...............................................        N.A.
      (d).................................................. 10.03, 10.04, 10.05
      (e)..................................................        11.05
      (f)..................................................        N.A.
315   (a)..................................................        7.01
      (b)..................................................     7.05, 11.02
      (c)..................................................        7.01
      (d)..................................................        7.01
      (e)..................................................        6.11
316   (a)(last sentence)...................................        2.09
      (a)(1)(A)............................................        6.05
      (a)(1)(B)............................................        6.04
      (a)(2)...............................................        N.A.
      (b)..................................................        6.07
      (c)..................................................        2.12
317   (a)(1)...............................................        6.08

----------
      *This Cross-Reference Table is not part of the Indenture.

                                       v

<PAGE>

      (a)(2)...............................................        6.09
      (b)..................................................        2.04
318   (a)..................................................        11.01
      (b)..................................................        N.A.
      (c)..................................................        11.01

N.A. means not applicable.

*This Cross-Reference Table is not part of the Indenture.

                                       vi

<PAGE>

                  This INDENTURE dated as of March 8, 2002, among L-3
Communications Corporation, a Delaware corporation (the "Company"), Hygienetics
Environmental Services, Inc., a Delaware corporation, L-3 Communications ILEX
Systems, Inc., a Delaware corporation, Southern California Microwave, Inc., a
California corporation, L-3 Communications SPD Technologies, Inc., a Delaware
corporation, L-3 Communications ESSCO, Inc., a Delaware corporation, L-3
Communications Storm Control Systems, Inc., a California corporation, L-3
Communications DBS Microwave, Inc., a California corporation, SPD Electrical
Systems Inc., a Delaware corporation, SPD Switchgear Inc., a Delaware
corporation, Pac Ord Inc., a Delaware corporation, Henschel Inc., a Delaware
corporation, SPD Holdings, Inc., a Delaware corporation, Power Paragon, Inc., a
Delaware corporation, L-3 Communications Aydin Corporation, a Delaware
corporation, MPRI, Inc., a Delaware corporation, Electrodynamics, Inc., an
Arizona corporation, Interstate Electronics Corporation, a California
corporation, Microdyne Corporation, a Maryland corporation, L-3 Communications
Integrated Systems L.P., a Delaware limited partnership, L-3 Communications
Analytics Corporation, a California corporation, L-3 Communications AIS GP
Corporation, a Delaware corporation, L-3 Communications Investments Inc., a
Deleware corporation, Coleman Research Corporation, a Florida corporation, KDI
Precision Products, Inc., a Delaware corporation and EER Systems, Inc., a
Virginia corporation (collectively, the "Guarantors"), and The Bank of New York,
as trustee (the "Trustee").

                  The Company and the Trustee agree as follows for the benefit
of each other and for the equal and ratable benefit of the Holders of the Senior
Subordinated Notes due 2009 (the "Series A Notes") and the Senior Subordinated
Notes due 2009 (the "Exchange Notes" and, together with the Series A Notes, the
"Notes"):

                                   ARTICLE 1.
                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

Section 1.01      Definitions.

                  "144A Global Note" means the global note in the form of
Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend
and deposited with and registered in the name of the Depositary or its nominee
that will be issued in a denomination equal to the outstanding principal amount
of the Notes sold in reliance on Rule 144A.

                  "1997 Indenture" means the indenture, dated as of April 30,
1997, among The Bank of New York, as trustee, and the Company, with respect to
the 1997 Notes.

                  "1997 Notes" means the $225,000,000 in aggregate principal
amount of the Company's 10 3/8% Senior Subordinated Notes due 2007, issued
pursuant to the 1997 Indenture on April 30, 1997.

                  "Acquired Debt" means, with respect to any specified Person,
(i) Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Subsidiary of such specified Person, including,
without limitation, Indebtedness incurred in

<PAGE>

connection with, or in contemplation of, such other Person merging with or into
or becoming a Subsidiary of such specified Person, and (ii) Indebtedness secured
by a Lien encumbering any asset acquired by such specified Person.

                  "Additional Amounts" means all additional amounts then owing
pursuant to Section 3 of the Registration Rights Agreement.

                  "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition,
"control" (including, with correlative meanings, the terms "controlling",
"controlled by" and "under common control with"), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by agreement or otherwise;
provided that beneficial ownership of 10% or more of the voting securities of a
Person shall be deemed to be control.

                  "Agent" means any Registrar, Paying Agent or co-registrar.

                  "Applicable Procedures" means, with respect to any transfer or
exchange of or for beneficial interests in any Global Note, the rules and
procedures of the Depositary, Euroclear and Clearstream that apply to such
transfer or exchange.

                  "Asset Sale" means (i) the sale, lease, conveyance or other
disposition of any assets or rights (including, without limitation, by way of a
sale and leaseback) other than sales of inventory in the ordinary course of
business (provided that the sale, lease, conveyance or other disposition of all
or substantially all of the assets of the Company and its Restricted
Subsidiaries taken as a whole shall be governed by the covenant contained in
Section 4.15 and/or the covenant contained in Section 5.01 and not by the
covenant contained in Section 4.10), and (ii) the issue or sale by the Company
or any of its Subsidiaries of Equity Interests of any of the Company's
Restricted Subsidiaries, in the case of either clause (i) or (ii), whether in a
single transaction or a series of related transactions (A) that have a fair
market value in excess of $1.0 million or (B) for net proceeds in excess of $1.0
million. Notwithstanding the foregoing: (i) a transfer of assets by the Company
to a Restricted Subsidiary or by a Restricted Subsidiary to the Company or to
another Restricted Subsidiary, (ii) an issuance of Equity Interests by a
Restricted Subsidiary to the Company or to another Restricted Subsidiary, (iii)
a Restricted Payment that is permitted by the covenant contained in Section 4.07
and (iv) a disposition of Cash Equivalents in the ordinary course of business
shall not be deemed to be an Asset Sale.

                  "Attributable Debt" in respect of a sale and leaseback
transaction means, at the time of determination, the present value (discounted
at the rate of interest implicit in such transaction, determined in accordance
with GAAP) of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction
(including any period for which such lease has been extended or may, at the
option of the lessor, be extended).

                  "Bankruptcy Law" means Title 11, U.S. Code or any similar
federal or state law for the relief of debtors.

                                       2

<PAGE>

                  "Board of Directors" means the Board of Directors of the
Company, or any authorized committee of the Board of Directors.

                  "Bridge Loan Agreement" means the Bridge Loan Agreement, dated
as of March 8, 2002, among the Company as the borrower thereunder, L-3
Communications Holdings, Inc., the guarantors party thereto, Lehman Brothers
Inc., Banc of America Bridge LLC, Credit Suisse First Boston Corporation and
Lehman Commercial Paper Inc., including any related notes, guarantees,
collateral documents, instruments and agreements executed in connection
therewith, and in each case as amended, restated, supplemented, modified,
renewed, refunded, replaced or refinanced from time to time.

                  "Bridge Loans" means up to $500.0 million in aggregate
principal amount of Indebtedness under the Bridge Loan Agreement.

                  "Bridge Notes" means the promissory notes of the Company
issued under the Bridge Loans.

                  "Business Day" means any day other than a Legal Holiday.

                  "Capital Lease Obligation" means, at the time any
determination thereof is to be made, the amount of the liability in respect of a
capital lease that would at such time be required to be capitalized on a balance
sheet in accordance with GAAP.

                  "Capital Stock" means (i) in the case of a corporation,
corporate stock, (ii) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or
limited) and (iv) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.

                  "Cash Equivalents" means (i) United States dollars, (ii)
securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality thereof having maturities of
not more than one year from the date of acquisition, (iii) certificates of
deposit and eurodollar time deposits with maturities of six months or less from
the date of acquisition, bankers' acceptances with maturities not exceeding six
months and overnight bank deposits, in each case with any domestic financial
institution to the Senior Credit Facilities or with any domestic commercial bank
having capital and surplus in excess of $500.0 million and a Thompson Bank Watch
Rating of "B" or better, (iv) repurchase obligations with a term of not more
than seven days for underlying securities of the types described in clauses (ii)
and (iii) above entered into with any financial institution meeting the
qualifications specified in clause (iii) above, (v) commercial paper having the
highest rating obtainable from Moody's or S&P and in each case maturing within
six months after the date of acquisition, (vi) investment funds investing 95% of
their assets in securities of the types described in clauses (i)-(v) above, and
(vii) readily marketable direct obligations issued by any State of the United
States of America or any political subdivision thereof having maturities of not
more than one year from the date of acquisition and having one of the two
highest rating categories obtainable from either Moody's or S&P.

                                       3

<PAGE>

                  "Change of Control" means the occurrence of any of the
following: (i) the sale, lease, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the assets of the Company and its
Restricted Subsidiaries taken as a whole to any "person" (as such term is used
in Section 13(d)(3) of the Exchange Act) other than the Principals or their
Related Parties (as defined below), (ii) the adoption of a plan relating to the
liquidation or dissolution of the Company, (iii) the consummation of any
transaction (including, without limitation, any merger or consolidation) the
result of which is that any "person" (as defined above), other than the
Principals and their Related Parties, becomes the "beneficial owner" (as such
term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly
or indirectly, of more than 50% of the Voting Stock of the Company (measured by
voting power rather than number of shares) or (iv) the first day on which a
majority of the members of the Board of Directors of the Company are not
Continuing Directors.

                  "Clearstream" means Clearstream Banking, societe anonyme
(formerly Cedelbank).

                  "Consolidated Cash Flow" means, with respect to any Person for
any period, the Consolidated Net Income of such Person for such period plus (i)
an amount equal to any extraordinary loss plus any net loss realized in
connection with an Asset Sale (to the extent such losses were deducted in
computing such Consolidated Net Income), plus (ii) provision for taxes based on
income or profits of such Person and its Restricted Subsidiaries for such
period, to the extent that such provision for taxes was included in computing
such Consolidated Net Income, plus (iii) consolidated interest expense of such
Person and its Restricted Subsidiaries for such period, whether paid or accrued
and whether or not capitalized (including, without limitation, original issue
discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with
Capital Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers' acceptance financings, and net payments (if any) pursuant
to Hedging Obligations), to the extent that any such expense was deducted in
computing such Consolidated Net Income, plus (iv) depreciation, amortization
(including amortization of goodwill, debt issuance costs and other intangibles
but excluding amortization of other prepaid cash expenses that were paid in a
prior period) and other non-cash expenses (excluding any such non-cash expense
to the extent that it represents an accrual of or reserve for cash expenses in
any future period or amortization of a prepaid cash expense that was paid in a
prior period) of such Person and its Restricted Subsidiaries for such period to
the extent that such depreciation, amortization and other non-cash expenses were
deducted in computing such Consolidated Net Income, minus (v) non-cash items
(excluding any items that were accrued in the ordinary course of business)
increasing such Consolidated Net Income for such period, in each case, on a
consolidated basis and determined in accordance with GAAP.

                  "Consolidated Net Income" means, with respect to any Person
for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP; provided that (i) the Net Income of any Person that is not
a Restricted Subsidiary or that is accounted for by the equity method of
accounting shall be included only to the extent of the amount of dividends or
distributions paid in cash to the referent Person or a Restricted Subsidiary
thereof that is a Guarantor, (ii) the Net

                                       4

<PAGE>

Income of any Restricted Subsidiary shall be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that Net Income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Restricted Subsidiary or its stockholders, (iii)
the Net Income of any Person acquired in a pooling of interests transaction for
any period prior to the date of such acquisition shall be excluded, (iv) the
cumulative effect of a change in accounting principles shall be excluded, (v)
the Net Income of any Unrestricted Subsidiary shall be excluded, whether or not
distributed to the Company or one of its Restricted Subsidiaries, and (vi) the
Net Income of any Restricted Subsidiary shall be calculated after deducting
preferred stock dividends payable by such Restricted Subsidiary to Persons other
than the Company and its other Restricted Subsidiaries.

                  "Consolidated Tangible Assets" means, with respect to the
Company, the total consolidated assets of the Company and its Restricted
Subsidiaries, less the total intangible assets of the Company and its Restricted
Subsidiaries, as shown on the most recent internal consolidated balance sheet of
the Company and such Restricted Subsidiaries calculated on a consolidated basis
in accordance with GAAP.

                  "Continuing Directors" means, as of any date of determination,
any member of the Board of Directors of the Company who (i) was a member of such
Board of Directors on the date of this Indenture or (ii) was nominated for
election or elected to such Board of Directors with the approval of a majority
of the Continuing Directors who were members of such Board at the time of such
nomination or election.

                  "Corporate Trust Office of the Trustee" shall be at the
address of the Trustee specified in Section 11.02 hereof or such other address
as to which the Trustee may give notice to the Company.

                  "Credit Facilities" means, with respect to the Company, one or
more debt facilities (including, without limitation, the Senior Credit
Facilities) or commercial paper facilities with banks or other institutional
lenders providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to such lenders or to special purpose
entities formed to borrow from such lenders against such receivables) or letters
of credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time.

                  "December 1998 Notes" means the $200,000,000 in aggregate
principal amount of the Company's 8% Senior Subordinated Notes due 2008, issued
pursuant to the December 1998 Indenture.

                  "December 1998 Indenture" means the indenture, dated as of
December 11, 1998, among The Bank of New York, as trustee, and the Company, with
respect to the December 1998 Notes.

                                       5

<PAGE>

                  "Default" means any event that is, or with the passage of time
or the giving of notice or both would be, an Event of Default.

                  "Definitive Note" means a certificated Note registered in the
name of the Holder thereof and issued in accordance with Article 2 hereof,
substantially in the form of Exhibit A hereto, except that such Note shall not
bear the Global Note Legend and shall not have the "Schedule of Exchanges of
Interests in the Global Note" attached thereto.

                  "Depositary" means, with respect to the Notes issuable or
issued in whole or in part in global form, the Person specified in Section 2.03
hereof as the Depositary with respect to the Notes, until a successor shall have
been appointed and become such pursuant to the applicable provision of this
Indenture, and, thereafter, "Depositary" shall mean or include such successor.

                  "Designated Senior Debt" means (i) any Indebtedness
outstanding under the Senior Credit Facilities and (ii) any other Senior Debt
permitted under the Indenture the principal amount of which is $25.0 million or
more and that has been designated by the Company as "Designated Senior Debt".

                  "Disqualified Stock" means any Capital Stock that, by its
terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, at the option of the holder thereof), or upon the
happening of any event, matures or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, or redeemable at the option of the Holder
thereof, in whole or in part, on or prior to the date that is 91 days after the
date on which the Notes mature; provided, however, that any Capital Stock that
would constitute Disqualified Stock solely because the holders thereof have the
right to require the Company to repurchase such Capital Stock upon the
occurrence of a Change of Control or an Asset Sale shall not constitute
Disqualified Stock if the terms of such Capital Stock provide that the Company
may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.07 hereof; and
provided further, that if such Capital Stock is issued to any plan for the
benefit of employees of the Company or its Subsidiaries or by any such plan to
such employees, such Capital Stock shall not constitute Disqualified Stock
solely because it may be required to be repurchased by the Company in order to
satisfy applicable statutory or regulatory obligations.

                  "Equity Interests" means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).

                  "Equity Offering" means any public or private sale of equity
securities (excluding Disqualified Stock) of the Company or Holdings, other than
any private sales to an Affiliate of the Company or Holdings.

                  "Escrow Agreement" means the escrow agreement dated the date
hereof among the Company, Lehman Brothers Inc., Lehman Commercial Paper Inc.,
Banc of America Bridge LLC, Credit Suisse First Boston Corporation and The Bank
of New York relating to this Indenture and the Notes.

                                       6

<PAGE>

                  "Euroclear" means Morgan Guaranty Trust Company of New York,
Brussels office, as operator of the Euroclear system.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Exchange Notes" means the Notes issued in the Exchange Offer
pursuant to Section 2.06(f).

                  "Exchange Offer" has the meaning set forth in the Registration
Rights Agreement.

                  "Existing Indebtedness" means any Indebtedness of the Company
and its Restricted Subsidiaries (other than Indebtedness under the Senior Credit
Facilities and the Notes) in existence on the date of the Indenture, until such
amounts are repaid.

                  "Fixed Charges" means, with respect to any Person for any
period, the sum, without duplication, of (i) the consolidated interest expense
of such Person and its Restricted Subsidiaries for such period, whether paid or
accrued (including, without limitation, original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions,
discounts and other fees and charges incurred in respect of letter of credit or
bankers' acceptance financings, and net payments (if any) pursuant to Hedging
Obligations, but excluding amortization of debt issuance costs) and (ii) the
consolidated interest of such Person and its Restricted Subsidiaries that was
capitalized during such period, and (iii) any interest expense on Indebtedness
of another Person that is guaranteed by such Person or one of its Restricted
Subsidiaries or secured by a Lien on assets of such Person or one of its
Restricted Subsidiaries (whether or not such Guarantee or Lien is called upon)
and (iv) the product of (A) all dividend payments, whether or not in cash, on
any series of preferred stock of such Person or any of its Restricted
Subsidiaries, other than dividend payments on Equity Interests payable solely in
Equity Interests of the Company, times (B) a fraction, the numerator of which is
one and the denominator of which is one minus the then current combined federal,
state and local statutory tax rate of such Person, expressed as a decimal, in
each case, on a consolidated basis and in accordance with GAAP.

                  "Fixed Charge Coverage Ratio" means with respect to any Person
for any period, the ratio of the Consolidated Cash Flow of such Person for such
period to the Fixed Charges of such Person and its Restricted Subsidiaries for
such period. In the event that the Company or any of its Restricted Subsidiaries
incurs, assumes, Guarantees or redeems any Indebtedness (other than revolving
credit borrowings) or issues preferred stock subsequent to the commencement of
the period for which the Fixed Charge Coverage Ratio is being calculated but on
or prior to the date on which the event for which the calculation of the Fixed
Charge Coverage Ratio is made (the "Calculation Date"), then the Fixed Charge
Coverage Ratio shall be calculated giving pro forma effect to such incurrence,
assumption, Guarantee or redemption of Indebtedness, or such issuance or
redemption of preferred stock, as if the same had occurred at the beginning of
the applicable four-quarter reference period. In addition, for purposes of
making the computation referred to above, (i) acquisitions that have been made
by the Company or any of its Restricted Subsidiaries, including through mergers
or consolidations and including any related financing transactions, during the
four-quarter reference period or subsequent to such reference period and

                                       7

<PAGE>

on or prior to the Calculation Date shall be deemed to have occurred on the
first day of the four-quarter reference period and Consolidated Cash Flow for
such reference period shall be calculated without giving effect to clause (iii)
of the proviso set forth in the definition of Consolidated Net Income, and (ii)
the Consolidated Cash Flow attributable to discontinued operations, as
determined in accordance with GAAP, and operations or businesses disposed of
prior to the Calculation Date, shall be excluded, and (iii) the Fixed Charges
attributable to discontinued operations, as determined in accordance with GAAP,
and operations or businesses disposed of prior to the Calculation Date, shall be
excluded, but only to the extent that the obligations giving rise to such Fixed
Charges will not be obligations of the referent Person or any of its Restricted
Subsidiaries following the Calculation Date.

                  "Foreign Subsidiary" means a Restricted Subsidiary of the
Company that was not organized or existing under the laws of the United States,
any state thereof, the District of Columbia or any territory thereof or that has
not guaranteed or otherwise provided direct credit support for any Indebtedness
of the Company.

                  "GAAP" means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession, which were in effect April 30, 1997.

                  "Global Notes" means, individually and collectively, each of
the Restricted Global Notes and the Unrestricted Global Notes, substantially in
the form of Exhibit A hereto issued in accordance with Article 2 hereof.

                  "Global Note Legend" means the legend set forth in Section
2.06(g)(ii) to be placed on all Global Notes issued under this Indenture.

                  "Government Securities" means direct obligations of, or
obligations guaranteed by, the United States of America for the payment of which
guarantee or obligations the full faith and credit of the United States is
pledged.

                  "Guarantee" means a guarantee (other than by endorsement of
negotiable instruments for collection in the ordinary course of business),
direct or indirect, in any manner (including, without limitation, letters of
credit and reimbursement agreements in respect thereof), of all or any part of
any Indebtedness.

                  "Guarantors" means each Person listed in the preamble to the
Indenture and each Subsidiary of the Company that executes a Subsidiary
Guarantee in accordance with the provisions of the Indenture, and their
respective successors and assigns.

                  "Hedging Obligations" means, with respect to any Person, the
obligations of such Person under (i) currency exchange or interest rate swap
agreements, interest rate cap agreements and currency exchange or interest rate
collar agreements and (ii) other agreements or arrangements designed to protect
such Person against fluctuations in currency exchange rates or interest rates.

                                       8

<PAGE>

                  "Holder" means a Person in whose name a Note is registered.

                  "Holdings" means L-3 Communications Holdings, Inc., a Delaware
corporation.

                  "IAI Global Note" means the global Note in the form of Exhibit
A hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with and registered in the name of the Depositary or its nominee that
will be issued in a denomination equal to the outstanding principal amount of
the Notes sold to Institutional Accredited Investors.

                  "Indebtedness" means, with respect to any Person, any
indebtedness of such Person, whether or not contingent, in respect of borrowed
money or evidenced by bonds, notes, debentures or similar instruments or letters
of credit (or reimbursement agreements in respect thereof) or banker's
acceptances or representing Capital Lease Obligations or the balance deferred
and unpaid of the purchase price of any property or representing any Hedging
Obligations, except any such balance that constitutes an accrued expense or
trade payable, if and to the extent any of the foregoing indebtedness (other
than letters of credit and Hedging Obligations) would appear as a liability upon
a balance sheet of such Person prepared in accordance with GAAP, as well as all
indebtedness of others secured by a Lien on any asset of such Person (whether or
not such indebtedness is assumed by such Person) and, to the extent not
otherwise included, the Guarantee by such Person of any indebtedness of any
other Person. The amount of any Indebtedness outstanding as of any date shall be
(i) the accreted value thereof, in the case of any Indebtedness that does not
require current payments of interest, and (ii) the principal amount thereof,
together with any interest thereon that is more than 30 days past due, in the
case of any other Indebtedness.

                  "Indenture" means this Indenture, as amended or supplemented
from time to time.

                  "Indirect Participant" means a Person who holds a beneficial
interest in a Global Note through a Participant.

                  "Institutional Accredited Investor" means an institution that
is an "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act.

                  "Investments" means, with respect to any Person, all
investments by such Person in other Persons (including Affiliates) in the forms
of direct or indirect loans (including guarantees of Indebtedness or other
obligations), advances or capital contributions (excluding commission, travel,
moving and similar loans or advances to officers and employees made in the
ordinary course of business), purchases or other acquisitions for consideration
of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP. If the Company or any Subsidiary of the Company sells or
otherwise disposes of any Equity Interests of any direct or indirect Subsidiary
of the Company such that, after giving effect to any such sale or disposition,
such Person is no longer a Subsidiary of the Company, the Company shall be
deemed to have made an Investment on the date of any such sale or disposition
equal to the fair market value of the Equity Interests of such Subsidiary not
sold or disposed of in an amount determined as provided in the last paragraph of
the covenant contained in Section 4.07.

                  "Issue Date" means March 8, 2003.

                                       9

<PAGE>

                  "Legal Holiday" means a Saturday, a Sunday or a day on which
banking institutions in The City of New York or at a place of payment are
authorized by law, regulation or executive order to remain closed. If a payment
date is a Legal Holiday at a place of payment, payment may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period.

                  "Lehman Investor" means Lehman Brothers Holdings Inc. and any
of its Affiliates.

                  "Letter of Transmittal" means the letter of transmittal to be
prepared by the Company and sent to all Holders of the Series A Notes for use by
such Holders in connection with the Exchange Offer.

                  "Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law (including any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction).

                  "Marketable Securities" means, with respect to any Asset Sale,
any readily marketable equity securities that are (i) traded on the New York
Stock Exchange, the American Stock Exchange or the Nasdaq National Market; and
(ii) issued by a corporation having a total equity market capitalization of not
less than $300.0 million; provided that the excess of (A) the aggregate amount
of securities of any one such corporation held by the Company and any Restricted
Subsidiary over (B) ten times the average daily trading volume of such
securities during the 20 immediately preceding trading days shall be deemed not
to be Marketable Securities; as determined on the date of the contract relating
to such Asset Sale.

                  "May 1998 Notes" means the $180,000,000 in aggregate principal
amount of the Company's 8 1/2% Senior Subordinated Notes due 2008, issued
pursuant to the May 1998 Notes Indenture on May 22, 1998.

                  "May 1998 Notes Indenture" means the indenture, dated as of
May 22, 1998, among The Bank of New York, as trustee, and the Company, with
respect to the May 1998 Notes.

                  "Moody's" means Moody's Investors Services, Inc.

                  "Net Income" means, with respect to any Person, the net income
(loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends, excluding, however, (i) any
gain or loss, together with any related provision for taxes thereon, realized in
connection with (A) any Asset Sale (including, without limitation, dispositions
pursuant to sale and leaseback transactions) or (B) the disposition of any
securities by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted
Subsidiaries and (ii) any extraordinary gain or loss, together with any related
provision for taxes on such extraordinary gain or loss and (iii) the cumulative
effect of a change in accounting principles.

                                       10

<PAGE>

                  "Net Proceeds" means the aggregate cash proceeds received by
the Company or any of its Subsidiaries in respect of any Asset Sale (including,
without limitation, any cash received upon the sale or other disposition of any
non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale (including, without limitation, legal, accounting
and investment banking fees, and sales commissions) and any relocation expenses
incurred as a result thereof, taxes paid or payable as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing
arrangements), amounts required to be applied to the repayment of Indebtedness
secured by a Lien on the asset or assets that were the subject of such Asset
Sale and any reserve for adjustment in respect of the sale price of such asset
or assets established in accordance with GAAP.

                  "Non-Recourse Debt" means Indebtedness (i) as to which neither
the Company nor any of its Restricted Subsidiaries (A) provides credit support
of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (B) is directly or indirectly liable (as a guarantor
or otherwise), or (C) constitutes the lender; and (ii) no default with respect
to which (including any rights that the holders thereof may have to take
enforcement action against an Unrestricted Subsidiary) would permit (upon
notice, lapse of time or both) any holder of any other Indebtedness (other than
Indebtedness incurred under Credit Facilities) of the Company or any of its
Restricted Subsidiaries to declare a default on such other Indebtedness or cause
the payment thereof to be accelerated or payable prior to its stated maturity;
and (iii) as to which the lenders have been notified in writing that they will
not have any recourse to the stock or assets of the Company or any of its
Restricted Subsidiaries.

                  "Non-U.S. Person" means a person who is not a U.S. Person.

                  "Note Custodian" means the Trustee, as custodian with respect
to the Notes in global form, or any successor entity thereto.

                  "Obligations" means any principal, premium (if any), interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization, whether or not a claim for post-filing
interest is allowed in such proceeding), penalties, fees, charges, expenses,
indemnifications, reimbursement obligations, damages (including Additional
Amounts), guarantees and other liabilities or amounts payable under the
documentation governing any Indebtedness or in respect thereto.

                  "Offering" means the offering of the Notes by the Company.

                  "Officer" means, with respect to any Person, the Chairman of
the Board, the Chief Executive Officer, the President, the Chief Operating
Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer,
the Controller, the Secretary, any Assistant Secretary or any Vice-President of
such Person.

                  "Officers' Certificate" means a certificate signed on behalf
of the Company by two Officers of the Company, one of whom must be the principal
executive officer, the principal financial officer, the treasurer or the
principal accounting officer of the Company, that meets the requirements of
Section 11.05 hereof.

                                       11
<PAGE>

                  "Opinion of Counsel" means an opinion from legal counsel who
is reasonably acceptable to the Trustee, that meets the requirements of Section
11.05 hereof. The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company or the Trustee.

                  "Participant" means, with respect to DTC, Euroclear or
Clearstream, a Person who has an account with DTC, Euroclear or Clearstream,
respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

                  "Permitted Investments" means (i) any Investment in the
Company or in a Restricted Subsidiary of the Company that is a Guarantor; (ii)
any Investment in cash or Cash Equivalents; (iii) any Investment by the Company
or any Restricted Subsidiary of the Company in a Person, if as a result of such
Investment (A) such Person becomes a Restricted Subsidiary of the Company and a
Guarantor or (B) such Person is merged, consolidated or amalgamated with or
into, or transfers or conveys substantially all of its assets to, or is
liquidated into, the Company or a Restricted Subsidiary of the Company that is a
Guarantor; (iv) any Restricted Investment made as a result of the receipt of
non-cash consideration from an Asset Sale that was made pursuant to and in
compliance with Section 4.07 or any disposition of assets not constituting an
Asset sale; (v) any acquisition of assets solely in exchange for the issuance of
Equity Interests (other than Disqualified Stock) of the Company; (vi) advances
to employees not to exceed $2.5 million at any one time outstanding; (vii) any
Investment acquired in connection with or as a result of a workout or bankruptcy
of a customer or supplier; (viii) Hedging Obligations permitted to be incurred
under Section 4.09; (ix) any Investment in a Similar Business that is not a
Restricted Subsidiary; provided that the aggregate fair market value of all
Investments outstanding pursuant to this clause (ix) (valued on the date each
such Investment was made and without giving effect to subsequent changes in
value) may not at any one time exceed 10% of the Consolidated Tangible Assets of
the Company; and (x) other Investments in any Person having an aggregate fair
market value (measured on the date each such Investment was made and without
giving effect to subsequent changes in value), when taken together with all
other Investments made pursuant to this clause (x) that are at the time
outstanding, not to exceed $15.0 million.

                  "Permitted Joint Venture" means any joint venture, partnership
or other Person designated by the Board of Directors (until designation by the
Board of Directors to the contrary); provided that (i) at least 25% of the
Capital Stock thereof with voting power under ordinary circumstances to elect
directors (or Persons having similar or corresponding powers and
responsibilities) is at the time owned (beneficially or directly) by the Company
and/or by one or more Restricted Subsidiaries of the Company and (ii) such joint
venture, partnership or other Person is engaged in a Similar Business. Any such
designation or designation to the contrary shall be evidenced to the Trustee by
promptly filing with the Trustee a copy of the resolution giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the foregoing provisions.

                  "Permitted Junior Securities" means Equity Interests in the
Company or debt securities that are subordinated to all Senior Debt (and any
debt securities issued in exchange for Senior Debt) to substantially the same
extent as, or to a greater extent than, the Notes and the Subsidiary Guarantees
are subordinated to Senior Debt pursuant to Article 10 of this Indenture.

                                       12

<PAGE>

                  "Permitted Liens" means (i) Liens securing Senior Debt of the
Company or any Guarantor that was permitted by the terms of this Indenture to be
incurred; (ii) Liens in favor of the Company or any Guarantor; (iii) Liens on
property of a Person existing at the time such Person is merged into or
consolidated with the Company or any Restricted Subsidiary of the Company;
provided that such Liens were in existence prior to the contemplation of such
merger or consolidation and do not extend to any assets other than those of the
Person merged into or consolidated with the Company; (iv) Liens on property
existing at the time of acquisition thereof by the Company or any Subsidiary of
the Company, provided that such Liens were in existence prior to the
contemplation of such acquisition and do not extend to any other assets of the
Company or any of its Restricted Subsidiaries; (v) Liens to secure the
performance of statutory obligations, surety or appeal bonds, performance bonds
or other obligations of a like nature incurred in the ordinary course of
business; (vi) Liens to secure Indebtedness (including Capital Lease
Obligations) permitted by clause (iv) of the second paragraph of Section 4.09
covering only the assets acquired with such Indebtedness; (vii) Liens existing
on the date of this Indenture; (viii) Liens for taxes, assessments or
governmental charges or claims that are not yet delinquent or that are being
contested in good faith by appropriate proceedings promptly instituted and
diligently concluded, provided that any reserve or other appropriate provision
as shall be required in conformity with GAAP shall have been made therefor; (ix)
Liens incurred in the ordinary course of business of the Company or any
Restricted Subsidiary of the Company with respect to obligations that do not
exceed $5.0 million at any one time outstanding; (x) Liens on assets of
Guarantors to secure Senior Debt of such Guarantors that was permitted by this
Indenture to be incurred; (xi) Liens securing Permitted Refinancing
Indebtedness, provided that any such Lien does not extend to or cover any
property, shares or debt other than the property, shares or debt securing the
Indebtedness so refunded, refinanced or extended; (xii) Liens incurred or
deposits made to secure the performance of tenders, bids, leases, statutory
obligations, surety and appeal bonds, government contracts, performance and
return of money bonds and other obligations of a like nature, in each case
incurred in the ordinary course of business (exclusive of obligations for the
payment of borrowed money); (xiii) Liens upon specific items of inventory or
other goods and proceeds of any Person securing such Person's obligations in
respect of bankers' acceptances issued or created for the account of such Person
to facilitate the purchase, shipment or storage of such inventory or other goods
in the ordinary course of business; (xiv) Liens encumbering customary initial
deposits and margin deposits, and other Liens incurred in the ordinary course of
business that are within the general parameters customary in the industry, in
each case securing Indebtedness under Hedging Obligations; and (xv) Liens
encumbering deposits made in the ordinary course of business to secure
nondelinquent obligations arising from statutory or regulatory, contractual or
warranty requirements of the Company or its Subsidiaries for which a reserve or
other appropriate provision, if any, as shall be required by GAAP shall have
been made.

                  "Permitted Refinancing Indebtedness" means any Indebtedness of
the Company or any of its Subsidiaries issued in exchange for, or the net
proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Company or any of its Restricted Subsidiaries;
provided that: (i) the principal amount (or accreted value, if applicable) of
such Permitted Refinancing Indebtedness does not exceed the principal amount of
(or accreted value, if applicable), plus accrued interest on, the Indebtedness
so extended, refinanced, renewed, replaced, defeased or refunded (plus the
amount of reasonable expenses and prepayment premiums incurred in connection
therewith); (ii) such Permitted Refinancing Indebtedness has a

                                       13

<PAGE>

final maturity date no earlier than the final maturity date of, and has a
Weighted Average Life to Maturity equal to or greater than the Weighted Average
Life to Maturity of, the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; (iii) if the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded is subordinated in right of
payment to the Notes, such Permitted Refinancing Indebtedness is subordinated in
right of payment to the Notes on terms at least as favorable to the Holders of
Notes as those contained in the documentation governing the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded; and (iv) such
Indebtedness is incurred either by the Company or by the Restricted Subsidiary
who is the obligor on the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded.

                  "Permitted Securities" means, with respect to any Asset Sale,
Voting Stock of a Person primarily engaged in one or more Similar Businesses;
provided that after giving effect to the Asset Sale such Person shall become a
Restricted Subsidiary and a Guarantor.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or agency or political subdivision thereof (including any subdivision
or ongoing business of any such entity or substantially all of the assets of any
such entity, subdivision or business).

                  "Principals" means any Lehman Investor, Lockheed Martin
Corporation, Frank C. Lanza and Robert V. LaPenta.

                  "Private Placement Legend" means the legend set forth in
Section 2.07(g)(i) to be placed on all Notes issued under this Indenture except
as otherwise permitted by the provisions of this Indenture.

                  "QIB" means a "qualified institutional buyer" as defined in
Rule 144A.

                  "Registration Rights Agreement" means the Debt Registration
Rights Agreement, dated as of the date hereof, by and among the Company and the
other parties named on the signature pages thereof, as such agreement may be
amended, modified or supplemented from time to time, relating to rights given by
the Company to the purchasers of Notes to register such Notes under the
Securities Act.

                  "Regulation S" means Regulation S promulgated under the
Securities Act.

                  "Regulation S Global Note" means a global Note bearing the
Private Placement Legend and deposited with and registered in the name of the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Regulation S.

                  "Related Party" with respect to any Principal means (i) any
controlling stockholder, 50% (or more) owned Subsidiary, or spouse or immediate
family member (in the case of an individual) of such Principal or (ii) any
trust, corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons beneficially holding a more than 50%
controlling interest of which consist of such Principal and/or such other
Persons referred to in the immediately preceding clause (i).

                                       14

<PAGE>

                  "Representative" means the indenture trustee or other trustee,
agent or representative for any Senior Debt.

                  "Responsible Officer" when used with respect to the Trustee,
means any officer within the Corporate Trust Administration of the Trustee (or
any successor group of the Trustee) or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

                  "Restricted Definitive Note" means a Definitive Note bearing
the Private Placement Legend.

                  "Restricted Global Notes" means the 144A Global Note, the IAI
Global Note and the Regulation S Global Note, each of which shall bear the
Private Placement Legend.

                  "Restricted Investment" means an Investment other than a
Permitted Investment.

                  "Restricted Period" means the 40-day restricted period as
defined in Regulation S.

                  "Restricted Subsidiary" means, with respect to any Person,
each Subsidiary of such Person that is not an Unrestricted Subsidiary.

                  "Rule 144" means Rule 144 under the Securities Act.

                  "Rule 144A" means Rule 144A under the Securities Act.

                  "Rule 903" means Rule 903 under the Securities Act.

                  "Rule 904" means Rule 904 under the Securities Act.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Senior Credit Facilities" means the Second Amended and
Restated 364 Day Credit Agreement, dated as of May 16, 2001, as in effect on the
date of this Indenture among the Company, the lenders party thereto, Banc of
America, N.A., as administrative agent, and Lehman Commercial Paper Inc., as
syndication agent and documentation agent, and the Third Amended and Restated
Credit Agreement, dated as of May 16, 2001, as in effect on the date of this
Indenture among the Company, the lenders party thereto, Banc of America, N.A.,
as administrative agent, and Lehman Commercial Paper Inc., as syndication agent
and documentation agent, and any related notes, collateral documents, letters of
credit and guarantees, including any appendices, exhibits or schedules to any of
the foregoing (as the same may be in effect from time to time), in each case, as
such agreements may be amended, modified, supplemented or restated from time to
time, or refunded, refinanced, restructured, replaced, renewed, repaid or
extended from time to time (whether with the original agents and

                                       15

<PAGE>

lenders or other agents and lenders or otherwise, and whether provided under the
original credit agreement or other credit agreements or otherwise).

                  "Senior Debt" means (i) all Indebtedness of the Company or any
of its Restricted Subsidiaries outstanding under Credit Facilities and all
Hedging Obligations with respect thereto, (ii) any other Indebtedness permitted
to be incurred by the Company or any of its Restricted Subsidiaries under the
terms of the Indenture, unless the instrument under which such Indebtedness is
incurred expressly provides that it is on a parity with or subordinated in right
of payment to the Notes and (iii) all Obligations with respect to the foregoing.
Notwithstanding anything to the contrary in the foregoing, Senior Debt will not
include (i) any liability for federal, state, local or other taxes owed or owing
by the Company, (ii) any Indebtedness of the Company to any of its Subsidiaries
or other Affiliates, (iii) any trade payables or (iv) any Indebtedness that is
incurred in violation of the Indenture.

                  "Shelf Registration Statement" means the Shelf Registration
Statement as defined in the Registration Rights Agreement.

                  "Significant Subsidiary" means any Subsidiary which is a
"significant subsidiary" within the meaning of Rule 405 under the Securities
Act.

                  "Similar Business" means a business, a majority of whose
revenues in the most recently ended calendar year were derived from (i) the sale
of defense products, electronics, communications systems, aerospace products,
avionics products and/or communications products, (ii) any services related
thereto, (iii) any business or activity that is reasonably similar thereto or a
reasonable extension, development or expansion thereof or ancillary thereto, and
(iv) any combination of any of the foregoing.

                  "Stated Maturity" means, with respect to any installment of
interest or principal on any series of Indebtedness, the date on which such
payment of interest or principal was scheduled to be paid in the original
documentation governing such Indebtedness, and shall not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior
to the date originally scheduled for the payment thereof.

                  "Subsidiary" means, with respect to any Person, (i) any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof is at the time owned or controlled, directly or indirectly, by
such Person or one or more of the other Subsidiaries of that Person (or a
combination thereof) and (ii) any partnership (A) the sole general partner or
the managing general partner of which is such Person or a Subsidiary of such
Person or (B) the only general partners of which are such Person or of one or
more Subsidiaries of such Person (or any combination thereof).

                  "S&P" means Standard and Poor's Corporation.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. ss.ss.
77aaa-77bbbb) as in effect on the date on which this Indenture is qualified
under TIA.

                                       16

<PAGE>

                  "Transaction Documents" means the Indenture, the Notes, the
Bridge Loan Agreement and the Registration Rights Agreement.

                  "Transfer Restricted Securities" means securities that bear or
are required to bear the Private Placement Legend set forth in Section
2.06(g)(i) hereof.

                  "Trustee" means the party named as such above until a
successor replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving hereunder.

                  "Unrestricted Global Note" means one or more global Notes, in
the form of Exhibit A attached hereto, that do not and are not required to bear
the Private Placement Legend and are deposited with and registered in the name
of the Depositary or its nominee.

                  "Unrestricted Definitive Note" means one or more Definitive
Notes that do not and are not required to bear the Private Placement Legend.

                  "Unrestricted Subsidiary" means any Subsidiary that is
designated by the Board of Directors as an Unrestricted Subsidiary pursuant to a
Board Resolution, but only to the extent that such Subsidiary: (i) has no
Indebtedness other than Non-Recourse Debt; (ii) is not party to any agreement,
contract, arrangement or understanding with the Company or any Restricted
Subsidiary of the Company unless the terms of any such agreement, contract,
arrangement or understanding are no less favorable to the Company or such
Restricted Subsidiary than those that might be obtained at the time from Persons
who are not Affiliates of the Company; (iii) is a Person with respect to which
neither the Company nor any of its Restricted Subsidiaries has any direct or
indirect obligation (A) to subscribe for additional Equity Interests or (B) to
maintain or preserve such Person's financial condition or to cause such Person
to achieve any specified levels of operating results; (iv) has not guaranteed or
otherwise directly or indirectly provided credit support for any Indebtedness of
the Company or any of its Restricted Subsidiaries; and (v) has at least one
director on its board of directors that is not a director or executive officer
of the Company or any of its Restricted Subsidiaries and has at least one
executive officer that is not a director or executive officer of the Company or
any of its Restricted Subsidiaries. Any such designation by the Board of
Directors shall be evidenced to the Trustee by filing with the Trustee a
certified copy of the Board Resolution giving effect to such designation and an
Officers' Certificate certifying that such designation complied with the
foregoing conditions and was permitted by Section 4.07. If, at any time, any
Unrestricted Subsidiary would fail to meet the foregoing requirements as an
Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of this Indenture and any Indebtedness of such
Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the
Company as of such date (and, if such Indebtedness is not permitted to be
incurred as of such date under Section 4.09, the Company shall be in default of
such covenant). The Board of Directors of the Company may at any time designate
any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such
designation shall be deemed to be an incurrence of Indebtedness by a Restricted
Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted
Subsidiary and such designation shall only be permitted if (i) such Indebtedness
is permitted under Section 4.09, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-

                                       17

<PAGE>

quarter reference period, and (ii) no Default or Event of Default would be in
existence following such designation.

                  "U.S. Person" means a U.S. person as defined in Rule 902(o)
under the Securities Act.

                  "Voting Stock" of any Person as of any date means the Capital
Stock of such Person that is at the time entitled to vote in the election of the
Board of Directors of such Person.

                  "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing (i) the sum
of the products obtained by multiplying (A) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect thereof, by (B) the
number of years (calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment, by (ii) the then outstanding principal
amount of such Indebtedness.

                  "Wholly Owned" means, when used with respect to any Subsidiary
or Restricted Subsidiary of a Person, a Subsidiary (or Restricted Subsidiary, as
appropriate) of such Person all of the outstanding Capital Stock or other
ownership interests of which (other than directors' qualifying shares) shall at
the time be owned by such Person or by one or more Wholly Owned Subsidiaries (or
Wholly Owned Restricted Subsidiaries, as appropriate) of such Person and one or
more Wholly Owned Subsidiaries (or Wholly Owned Restricted Subsidiaries, as
appropriate) of such Person.

Section 1.02      Other Definitions.

                                                            Defined in
                 Term                                         Section

         "Affiliate Transaction"...............................4.11
         "Asset Sale Offer"....................................3.09
         "Bankruptcy Law"......................................4.01
         "Change of Control Offer".............................4.15
         "Change of Control Payment"...........................4.15
         "Change of Control Payment Date"......................4.15
         "Covenant Defeasance".................................8.03
         "DTC".................................................2.03
         "Event of Default"....................................6.01
         "Excess Proceeds".....................................4.10
         "Exchange Notes"...................................preamble
         "Global Note Legend"..................................2.06
         "incur"...............................................4.09
         "Legal Defeasance"....................................8.02
         "Notes"............................................preamble
         "Offer Amount"........................................3.09
         "Offer Period"........................................3.09
         "Paying Agent"........................................2.03

                                       18
<PAGE>

         "Purchase Date".......................................3.09
         "Registrar"...........................................2.03
         "Remaining Excess Proceeds"...........................4.10
         "Restricted Payments".................................4.07
         "Secondary Asset Sale Offer"..........................4.10
         "Series A Notes"...................................preamble

Section 1.03      Incorporation by Reference of Trust Indenture Act.

                  Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture.

                  The following TIA terms used in this Indenture have the
following meanings:

                  "indenture securities" means the Notes;

                  "indenture security Holder" means a Holder of a Note;

                  "indenture to be qualified" means this Indenture;

                  "indenture trustee" or "institutional trustee" means the
Trustee;

                  "obligor" on the Notes means the Company and any successor
obligor upon the Notes.

                  All other terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by SEC rule under
the TIA have the meanings so assigned to them.

Section 1.04      Rules of Construction.

                  Unless the context otherwise requires:

                  (1)   a term has the meaning assigned to it;

                  (2)   an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP; (3) "or" is not exclusive;

                  (4)   words in the singular include the plural, and in the
         plural include the singular;

                  (5)   provisions apply to successive events and transactions;
         and

                                       19

<PAGE>

                  (6)   references to sections of or rules under the Securities
         Act shall be deemed to include substitute, replacement of successor
         sections or rules adopted by the SEC from time to time.

                                   ARTICLE 2.
                                    THE NOTES

Section 2.01      Form and Dating.

                  The Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A hereto. The Notes may be issued
in the form of Definitive Notes or Global Notes, as specified by the Company.
The Notes may have notations, legends or endorsements required by law, stock
exchange rule or usage. Each Note shall be dated the date of its authentication.
The Notes shall be in denominations of $1,000 and integral multiples thereof.

                  The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Indenture and the
Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be
controlling.

                  Notes issued in global form shall be substantially in the form
of Exhibit A attached hereto (including the Global Note Legend and the "Schedule
of Exchanges in the Global Note" attached thereto). Notes issued in definitive
form shall be substantially in the form of Exhibit A attached hereto (but
without the Global Note Legend and without the "Schedule of Exchanges of
Interests in the Global Note" attached thereto). Each Global Note shall
represent such of the outstanding Notes as shall be specified therein and each
shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges and redemptions.
Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the aggregate principal amount of outstanding Notes represented
thereby shall be made by the Trustee or the Note Custodian, at the direction of
the Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.06 hereof.

                  The provisions of the "Operating Procedures of the Euroclear
System" and "Terms and Conditions Governing Use of Euroclear" and the "General
Terms and Conditions of Clearstream Banking" and "Customer Handbook" of
Clearstream Banking shall be applicable to interests in the Regulation S Global
Notes that are held by the Agent Members through Euroclear or Clearstream
Banking.

Section 2.02      Execution and Authentication.

                  Two Officers shall sign the Notes for the Company by manual or
facsimile signature.

                  If an Officer whose signature is on a Note no longer holds
that office at the time a Note is authenticated, the Note shall nevertheless be
valid.

                                       20

<PAGE>

                  A Note shall not be valid until authenticated by the manual
signature of the Trustee. The signature shall be conclusive evidence that the
Note has been authenticated under this Indenture.

                  The Trustee shall, upon the receipt of both: (a) a
non-revocable written order of the Company signed by two Officers and (b) a
written order, substantially in the form of Exhibit A to the Escrow Agreement,
authenticate Notes provided to the Trustee by the escrow agent under the Escrow
Agreement for original issue up to the aggregate principal amount stated in
paragraph 4 of the Notes. The aggregate principal amount of Notes outstanding at
any time may not exceed such amount except as provided in Section 2.07 hereof.

                  The Trustee may appoint an authenticating agent acceptable to
the Company to authenticate Notes. An authenticating agent may authenticate
Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or an
Affiliate of the Company.

Section 2.03      Registrar and Paying Agent.

                  The Company shall maintain an office or agency where Notes may
be presented for registration of transfer or for exchange ("Registrar") and an
office or agency where Notes may be presented for payment ("Paying Agent"). The
Registrar shall keep a register of the Notes and of their transfer and exchange.
The Company may appoint one or more co-registrars and one or more additional
paying agents. The term "Registrar" includes any co-registrar and the term
"Paying Agent" includes any additional paying agent. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company shall notify
the Trustee in writing of the name and address of any Agent not a party to this
Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

                  The Company initially appoints The Depository Trust Company
("DTC") to act as Depositary with respect to the Global Notes.

                  The Company initially appoints the Trustee to act as the
Registrar and Paying Agent and to act as Note Custodian with respect to the
Global Notes.

Section 2.04      Paying Agent To Hold Money In Trust.

                  The Company shall require each Paying Agent other than the
Trustee to agree in writing that the Paying Agent will hold in trust for the
benefit of Holders or the Trustee all money held by the Paying Agent for the
payment of principal, premium or Additional Amounts, if any, or interest on the
Notes, and will notify the Trustee of any default by the Company in making any
such payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon
any

                                       21

<PAGE>

bankruptcy or reorganization proceedings relating to the Company, the
Trustee shall serve as Paying Agent for the Notes.

Section 2.05      Holder Lists.

                  The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA ss. 312(a). If the
Trustee is not the Registrar, the Company shall furnish to the Trustee at least
five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Company shall otherwise comply with TIA ss. 312(a).

Section 2.06      Transfer and Exchange.

                  (a)    Transfer and Exchange of Global Notes. A Global Note
may not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes
will be exchanged by the Company for Definitive Notes if (i) the Company
delivers to the Trustee notice from the Depositary that it is unwilling or
unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by the Company within 120 days after the date of
such notice from the Depositary or (ii) the Company in its sole discretion
determines that the Global Notes (in whole but not in part) should be exchanged
for Definitive Notes and delivers a written notice to such effect to the
Trustee. Upon the occurrence of either of the preceding events in (i) or (ii)
above, Definitive Notes shall be issued in such names as the Depositary shall
instruct the Trustee. Global Notes also may be exchanged or replaced, in whole
or in part, as provided in Sections 2.07 and 2.11 hereof. Every Note
authenticated and made available for delivery in exchange for, or in lieu of, a
Global Note or any portion thereof, pursuant to Section 2.07 or 2.11 hereof,
shall be authenticated and made available for delivery in the form of, and shall
be, a Global Note. A Global Note may not be exchanged for another Note other
than as provided in this Section 2.06(a), however beneficial interests in a
Global Note may be transferred and exchanged as provided in Section 2.06(b), (c)
or (f) hereof.

                  (b)    Transfer and Exchange of Beneficial Interests in the
Global Notes. The transfer and exchange of beneficial interests in the Global
Notes shall be effected through the Depositary, in accordance with the
provisions of this Indenture and the procedures of the Depositary therefor.
Beneficial interests in the Restricted Global Notes shall be subject to
restrictions on transfer comparable to those set forth herein to the extent
required by the Securities Act. The Trustee shall have no obligation to
ascertain the Depositary's compliance with any such restrictions on transfer.
Transfers of beneficial interests in the Global Notes also shall require
compliance with either subparagraph (i) or (ii) below, as applicable, as well as
one or more of the other following subparagraphs as applicable:

                  (i)    Transfer of Beneficial Interests in the Same Global
          Note. Beneficial interests in any Restricted Global Note may be
          transferred to Persons who take delivery

                                       22

<PAGE>

          thereof in the form of a beneficial interest in the same Restricted
          Global Note in accordance with the transfer restrictions set forth in
          the Private Placement Legend; provided, however, that prior to the
          expiration of the Restricted Period transfers of beneficial interests
          in the Regulation S Global Note may not be made to a U.S. Person or
          for the account or benefit of a U.S. Person (other than an Initial
          Purchaser). Beneficial interests in any Unrestricted Global Note may
          be transferred only to Persons who take delivery thereof in the form
          of a beneficial interest in an Unrestricted Global Note. No written
          orders or instructions shall be required to be delivered to the
          Registrar to effect the transfers described in this Section
          2.06(b)(i).

                  (ii)   All Other Transfers and Exchanges of Beneficial
          Interests in Global Notes. In connection with all transfers and
          exchanges of beneficial interests (other than transfers of beneficial
          interests in a Global Note to Persons who take delivery thereof in the
          form of a beneficial interest in the same Global Note), the transferor
          of such beneficial interest must deliver to the Registrar either (A)
          (1) a written order from a Participant or an Indirect Participant
          given to the Depositary in accordance with the Applicable Procedures
          directing the Depositary to credit or cause to be credited a
          beneficial interest in the specified Global Note in an amount equal to
          the beneficial interest to be transferred or exchanged and (2)
          instructions given in accordance with the Applicable Procedures
          containing information regarding the Participant account to be
          credited with such increase or (B) (1) a written order from a
          Participant or an Indirect Participant given to the Depositary in
          accordance with the Applicable Procedures directing the Depositary to
          cause to be issued a Definitive Note in an amount equal to the
          beneficial interest to be transferred or exchanged and (2)
          instructions given by the Depositary to the Registrar containing
          information regarding the Person in whose name such Definitive Note
          shall be registered to effect the transfer or exchange referred to in
          (1) above. Upon an Exchange Offer by the Company in accordance with
          Section 2.06(f) hereof, the requirements of this Section 2.06(b)(ii)
          shall be deemed to have been satisfied upon receipt by the Registrar
          of the instructions contained in the Letter of Transmittal delivered
          by the Holder of such beneficial interests in the Restricted Global
          Notes. Upon satisfaction of all of the requirements for transfer or
          exchange of beneficial interests in Global Notes contained in this
          Indenture, the Notes and otherwise applicable under the Securities
          Act, the Trustee shall adjust the principal amount of the relevant
          Global Note(s) pursuant to Section 2.06(h) hereof.

                  (iii)  Transfer of Beneficial Interests to Another Restricted
          Global Note. Beneficial interests in any Restricted Global Note may be
          transferred to Persons who take delivery thereof in the form of a
          beneficial interest in another Restricted Global Note if the Registrar
          receives the following:

                         (A)    if the transferee will take delivery in the form
                  of a beneficial interest in the 144A Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications in item (1) thereof;

                         (B)    if the transferee will take delivery in the form
                  of a beneficial interest in the Regulation S Global Note, then
                  the transferor must deliver a

                                       23

<PAGE>

                  certificate in the form of Exhibit B hereto, including the
                  certifications in item (2) thereof; and

                         (C)    if the transferee will take delivery in the form
                  of a beneficial interest in the IAI Global Note, then the
                  transferor must deliver (x) a certificate in the form of
                  Exhibit B hereto, including the certifications in item (3)
                  thereof, (y) to the extent required by item 3(d) of Exhibit B
                  hereto, an Opinion of Counsel in form reasonably acceptable to
                  the Company to the effect that such transfer is in compliance
                  with the Securities Act and such beneficial interest is being
                  transferred in compliance with any applicable blue sky
                  securities laws of any State of the United States and (z) if
                  the transfer is being made to an Institutional Accredited
                  Investor and effected pursuant to an exemption from the
                  registration requirements of the Securities Act other than
                  Rule 144A under the Securities Act, Rule 144 under the
                  Securities Act or Rule 904 under the Securities Act, a
                  certificate from the transferee in the form of Exhibit D
                  hereto.

                  (iv)   Transfer and Exchange of Beneficial Interests in a
          Restricted Global Note for Beneficial Interests in the Unrestricted
          Global Note. Beneficial interests in any Restricted Global Note may be
          exchanged by any holder thereof for a beneficial interest in the
          Unrestricted Global Note or transferred to Persons who take delivery
          thereof in the form of a beneficial interest in the Unrestricted
          Global Note if:

                         (A)    such exchange or transfer is effected pursuant
                  to the Exchange Offer in accordance with the Registration
                  Rights Agreement and the holder, in the case of an exchange,
                  or the transferee, in the case of a transfer, is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                         (B)    any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                         (C)    any such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                         (D)    the Registrar receives the following:

                                (1)    if the holder of such beneficial
                  interest in a Restricted Global Note proposes to exchange such
                  beneficial interest for a beneficial interest in the
                  Unrestricted Global Note, a certificate from such holder in
                  the form of Exhibit C hereto, including the certifications in
                  item (1 )(a) thereof;

                                (2)    if the holder of such beneficial
                  interest in a Restricted Global Note proposes to transfer such
                  beneficial interest to a Person who shall take delivery
                  thereof in the form of a beneficial interest in the
                  Unrestricted Global Note, a certificate from such holder in
                  the form of Exhibit B hereto, including the certifications in
                  item (4) thereof;

                                       24

<PAGE>

                                (3)     in each such case set forth in this
                  subparagraph (D), an Opinion of Counsel in form reasonably
                  acceptable to the Registrar to the effect that such exchange
                  or transfer is in compliance with the Securities Act, that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are not required in order to maintain
                  compliance with the Securities Act, and such beneficial
                  interest is being exchanged or transferred in compliance with
                  any applicable blue sky securities laws of any State of the
                  United States.

                  If any such transfer is effected pursuant to subparagraph (B)
or (D) above at a time when an Unrestricted Global Note has not yet been issued,
the Company shall issue and, upon receipt of an authentication order in
accordance with Section 2.02 hereof, the Trustee shall authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of beneficial interests transferred pursuant to subparagraph
(B) or (D) above.

                  Beneficial interests in an Unrestricted Global Note cannot be
exchanged for, or transferred to Persons who take delivery thereof in the form
of, a beneficial interest in any Restricted Global Note.

                  (c)    Transfer or Exchange of Beneficial Interests for
          Definitive Notes.

                  (i)    If any holder of a beneficial interest in a Restricted
          Global Note proposes to exchange such beneficial interest for a
          Definitive Note or to transfer such beneficial interest to a Person
          who takes delivery thereof in the form of a Definitive Note, then,
          upon receipt by the Registrar of the following documentation (all of
          which may be submitted by facsimile):

                         (A)    if the holder of such beneficial interest in a
                  Restricted Global Note proposes to exchange such beneficial
                  interest for a Definitive Note, a certificate from such holder
                  in the form of Exhibit C hereto, including the certifications
                  in item (2)(a) thereof;

                         (B)    if such beneficial interest is being transferred
                  to a QIB in accordance with Rule 144A under the Securities
                  Act, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications in item (1) thereof;

                         (C)    if such beneficial interest is being transferred
                  to a Non-U.S. Person in an offshore transaction in accordance
                  with Rule 904 under the Securities Act, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (2) thereof;

                         (D)    if such beneficial interest is being transferred
                  pursuant to an exemption from the registration requirements of
                  the Securities Act in accordance with Rule 144 under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(a)
                  thereof;

                         (E)    if such beneficial interest is being transferred
                  to an Institutional Accredited Investor in reliance on an
                  exemption from the registration requirements of the Securities
                  Act other than those listed in subparagraphs (B)

                                       25

<PAGE>

                  through (D) above, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(d)
                  thereof, a certificate from the transferee to the effect set
                  forth in Exhibit D hereof and, to the extent required by item
                  3(d) of Exhibit B, an Opinion of Counsel from the transferee
                  or the transferor reasonably acceptable to the Company to the
                  effect that such transfer is in compliance with the Securities
                  Act and such beneficial interest is being transferred in
                  compliance with any applicable blue sky securities laws of any
                  State of the United States;

                         (F)    if such beneficial interest is being transferred
                  to the Company or any of its Subsidiaries, a certificate to
                  the effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(b) thereof; or

                         (G)    if such beneficial interest is being transferred
                  pursuant to an effective registration statement under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(c)
                  thereof, the Trustee shall cause the aggregate principal
                  amount of the applicable Global Note to be reduced accordingly
                  pursuant to Section 2.06(h) hereof, and the Company shall
                  execute and the Trustee shall authenticate and deliver to the
                  Person designated in the instructions a Definitive Note in the
                  appropriate principal amount. Definitive Notes issued in
                  exchange for beneficial interests in a Restricted Global Note
                  pursuant to this Section 2.06(c) shall be registered in such
                  names and in such authorized denominations as the holder shall
                  instruct the Registrar through instructions from the
                  Depositary and the Participant or Indirect Participant. The
                  Trustee shall deliver such Definitive Notes to the Persons in
                  whose names such Notes are so registered. Definitive Notes
                  issued in exchange for a beneficial interest in a Restricted
                  Global Note pursuant to this Section 2.06(c)(i) shall bear the
                  Private Placement Legend and shall be subject to all
                  restrictions on transfer contained therein.

                  (ii)   Notwithstanding 2.06(c)(i), a holder of a beneficial
          interest in a Restricted Global Note may exchange such beneficial
          interest for an Unrestricted Definitive Note or may transfer such
          beneficial interest to a Person who takes delivery thereof in the form
          of an Unrestricted Definitive Note only if:

                         (A)    such exchange or transfer is effected pursuant
                  to the Exchange Offer in accordance with the Registration
                  Rights Agreement and the holder, in the case of an exchange,
                  or the transferee, in the case of a transfer, is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                         (B)    any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                         (C)    any such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                                       26

<PAGE>

                         (D)    the Registrar receives the following:

                                (1)    if the holder of such beneficial
                  interest in a Restricted Global Note proposes to exchange such
                  beneficial interest for a Definitive Note that does not bear
                  the Private Placement Legend, a certificate from such holder
                  in the form of Exhibit C hereto, including the certifications
                  in item (1)(b) thereof;

                                (2)    if the holder of such beneficial
                  interest in a Restricted Global Note proposes to transfer such
                  beneficial interest to a Person who shall take delivery
                  thereof in the form of a Definitive Note that does not bear
                  the Private Placement Legend, a certificate from such holder
                  in the form of Exhibit B hereto, including the certifications
                  in item (4) thereof; and

                                (3)    in each such case set forth in this
                  subparagraph (D), an Opinion of Counsel in form reasonably
                  acceptable to the Company, to the effect that such exchange or
                  transfer is in compliance with the Securities Act, that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are not required in order to maintain
                  compliance with the Securities Act, and such beneficial
                  interest in a Restricted Global Note is being exchanged or
                  transferred in compliance with any applicable blue sky
                  securities laws of any State of the United States.

                  (iii)  If any holder of a beneficial interest in an
          Unrestricted Global Note proposes to exchange such beneficial interest
          for a Definitive Note or to transfer such beneficial interest to a
          Person who takes delivery thereof in the form of a Definitive Note,
          then, upon satisfaction of the conditions set forth in Section
          2.06(b)(ii), the Trustee shall cause the aggregate principal amount of
          the applicable Global Note to be reduced accordingly pursuant to
          Section 2.06(h) hereof, and the Company shall execute and the Trustee
          shall authenticate and deliver to the Person designated in the
          instructions a Definitive Note in the appropriate principal amount.
          Definitive Notes issued in exchange for a beneficial interest pursuant
          to this Section 2.06(c)(iii) shall be registered in such names and in
          such authorized denominations as the holder shall instruct the
          Registrar through instructions from the Depositary and the Participant
          or Indirect Participant. The Trustee shall deliver such Definitive
          Notes to the Persons in whose names such Notes are so registered.
          Definitive Notes issued in exchange for a beneficial interest pursuant
          to this section 2.06(c)(iii) shall not bear the Private Placement
          Legend. Beneficial interests in an Unrestricted Global Note cannot be
          exchanged for a Definitive Note bearing the Private Placement Legend
          or transferred to a Person who takes delivery thereof in the form of a
          Definitive Note bearing the Private Placement Legend.

                  (d)    Transfer or Exchange of Definitive Notes for Beneficial
          Interests.

                  (i)    If any Holder of Restricted Definitive Notes proposes
          to exchange such Notes for a beneficial interest in a Restricted
          Global Note or to transfer such Definitive Notes to a Person who takes
          delivery thereof in the form of a beneficial interest in a Restricted
          Global Note, then, upon receipt by the Registrar of the following
          documentation (all of which may be submitted by facsimile):

                                       27

<PAGE>

                         (A)    if the Holder of such Restricted Definitive
                  Notes proposes to exchange such Notes for a beneficial
                  interest in a Restricted Global Note, a certificate from such
                  Holder in the form of Exhibit C hereto, including the
                  certifications in item (2)(b) thereof;

                         (B)    if such Definitive Notes are being transferred
                  to a QIB in accordance with Rule 144A under the Securities
                  Act, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications in item (1) thereof;

                         (C)    if such Definitive Notes are being transferred
                  to a Non-U.S. Person in an offshore transaction in accordance
                  with Rule 904 under the Securities Act, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (2) thereof;

                         (D)    if such Definitive Notes are being transferred
                  pursuant to an exemption from the registration requirements of
                  the Securities Act in accordance with Rule 144 under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(a)
                  thereof;

                         (E)    if such Definitive Notes are being transferred
                  to an Institutional Accredited Investor in reliance on an
                  exemption from the registration requirements of the Securities
                  Act other than those listed in subparagraphs (B) through (D)
                  above, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications in item (3)(d) thereof, a
                  certificate from the transferee to the effect set forth in
                  Exhibit D hereof and, to the extent required by item 3(d) of
                  Exhibit B, an Opinion of Counsel from the transferee or the
                  transferor reasonably acceptable to the Company to the effect
                  that such transfer is in compliance with the Securities Act
                  and such Definitive Notes are being transferred in compliance
                  with any applicable blue sky securities laws of any State of
                  the United States;

                         (F)    if such Definitive Notes are being transferred
                  to the Company or any of its Subsidiaries, a certificate to
                  the effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(b) thereof; or

                         (G)    if such Definitive Notes are being transferred
                  pursuant to an effective registration statement under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(c)
                  thereof,

          the Trustee shall cancel the Definitive Notes, increase or cause to be
          increased the aggregate principal amount of, in the case of clause (A)
          above, the appropriate Restricted Global Note, in the case of clause
          (B) above, the 144A Global Note, in the case of clause (C) above, the
          Regulation S Global Note, and in all other cases, the IAI Global Note.

                  (ii)   A Holder of Restricted Definitive Notes may exchange
          such Notes for a beneficial interest in the Unrestricted Global Note
          or transfer such Restricted Definitive Notes to a Person who takes
          delivery thereof in the form of a beneficial interest in the
          Unrestricted Global Note only if:

                                       28

<PAGE>

                         (A)    such exchange or transfer is effected pursuant
                  to the Exchange Offer in accordance with the Registration
                  Rights Agreement and the Holder, in the case of an exchange,
                  or the transferee, in the case of a transfer, is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                         (B)    any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                         (C)    any such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                         (D)    the Registrar receives the following:

                                (1)    if the Holder of such Definitive Notes
                  proposes to exchange such Notes for a beneficial interest in
                  the Unrestricted Global Note, a certificate from such Holder
                  in the form of Exhibit C hereto, including the certifications
                  in item (1)(c) thereof;

                                (2)    if the Holder of such Definitive Notes
                  proposes to transfer such Notes to a Person who shall take
                  delivery thereof in the form of a beneficial interest in the
                  Unrestricted Global Note, a certificate from such Holder in
                  the form of Exhibit B hereto, including the certifications
                  in item (4) thereof; and

                                (3)    in each such case set forth in this
                  subparagraph (D), an Opinion of Counsel in form reasonably
                  acceptable to the Company to the effect that such exchange or
                  transfer is in compliance with the Securities Act, that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are not required in order to maintain
                  compliance with the Securities Act, and such Definitive Notes
                  are being exchanged or transferred in compliance with any
                  applicable blue sky securities laws of any State of the United
                  States.

          Upon satisfaction of the conditions of any of the subparagraphs in
          this Section 2.06(d)(ii), the Trustee shall cancel the Definitive
          Notes and increase or cause to be increased the aggregate principal
          amount of the Unrestricted Global Note.

                  (iii)  A Holder of Unrestricted Definitive Notes may exchange
          such Notes for a beneficial interest in the Unrestricted Global Note
          or transfer such Definitive Notes to a Person who takes delivery
          thereof in the form of a beneficial interest in the Unrestricted
          Global Note. Upon receipt of a request for such an exchange or
          transfer, the Trustee shall cancel the Unrestricted Definitive Notes
          and increase or cause to be increased the aggregate principal amount
          of the Unrestricted Global Note.

                  If any such exchange or transfer from a Definitive Note to a
beneficial interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or
(iii) above at a time when an Unrestricted Global Note has not yet been issued,
the Company shall issue and, upon receipt of an authentication order in
accordance with Section 2.02 hereof, the Trustee shall authenticate one or

                                       29

<PAGE>

more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of beneficial interests transferred pursuant to subparagraphs
(ii)(B), (ii)(D) or (iii) above.

                  (e)    Transfer and Exchange of Definitive Notes. Upon request
by a Holder of Definitive Notes and such Holder's compliance with the provisions
of this Section 2.06(e), the Registrar shall register the transfer or exchange
of Definitive Notes. Prior to such registration of transfer or exchange, the
requesting Holder shall present or surrender to the Registrar the Definitive
Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by his attorney,
duly authorized in writing. In addition, the requesting Holder shall provide any
additional certifications, documents and information, as applicable, pursuant to
the provisions of this Section 2.06(e).

                  (i)    Restricted Definitive Notes may be transferred to and
          registered in the name of Persons who take delivery thereof if the
          Registrar receives the following:

                         (A)    if the transfer will be made pursuant to Rule
                  144A under the Securities Act, then the transferor must
                  deliver a certificate in the form of Exhibit B hereto,
                  including the certifications in item (1) thereof;

                         (B)    if the transfer will be made pursuant to Rule
                  904, then the transferor must deliver a certificate in the
                  form of Exhibit B hereto, including the certifications in item
                  (2) thereof; and

                         (C)    if the transfer will be made pursuant to any
                  other exemption from the registration requirements of the
                  Securities Act, then the transferor must deliver (x) a
                  certificate in the form of Exhibit B hereto, including the
                  certifications in item (3) thereof, (y) to the extent required
                  by item 3(d) of Exhibit B hereto, an Opinion of Counsel in
                  form reasonably acceptable to the Company to the effect that
                  such transfer is in compliance with the Securities Act and
                  such beneficial interest is being transferred in compliance
                  with any applicable blue sky securities laws of any State of
                  the United States and (z) if the transfer is being made to an
                  Institutional Accredited Investor and effected pursuant to an
                  exemption from the registration requirements of the Securities
                  Act other than Rule 144A under the Securities Act, Rule 144
                  under the Securities Act or Rule 904 under the Securities Act,
                  a certificate from the transferee in the form of Exhibit D
                  hereto.

                  (ii)   Restricted Definitive Notes may be exchanged by any
          Holder thereof for an Unrestricted Definitive Note or transferred to
          Persons who take delivery thereof in the form of an Unrestricted
          Definitive Note if:

                         (A)    such exchange or transfer is effected pursuant
                  to the Exchange Offer in accordance with the Registration
                  Rights Agreement and the holder, in the case of an exchange,
                  or the transferee, in the case of a transfer, is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                         (B)    any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                                       30

<PAGE>

                         (C)    any such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                         (D)    the Registrar receives the following:

                                (1)    if the Holder of such Restricted
                  Definitive Notes proposes to exchange such Notes for an
                  Unrestricted Definitive Note, a certificate from such Holder
                  in the form of Exhibit C hereto, including the certifications
                  in item (1)(a) thereof;

                                (2)    if the Holder of such Restricted
                  Definitive Notes proposes to transfer such Notes to a Person
                  who shall take delivery thereof in the form of an Unrestricted
                  Definitive Note, a certificate from such Holder in the form of
                  Exhibit B hereto, including the certifications in item (4)
                  thereof; and

                                (3)    in each such case set forth in this
                  subparagraph (D), an Opinion of Counsel in form reasonably
                  acceptable to the Company to the effect that such exchange or
                  transfer is in compliance with the Securities Act, that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are not required in order to maintain
                  compliance with the Securities Act, and such Restricted
                  Definitive Note is being exchanged or transferred in
                  compliance with any applicable blue sky securities laws of any
                  State of the United States.

                  (iii)  A Holder of Unrestricted Definitive Notes may transfer
          such Notes to a Person who takes delivery thereof in the form of an
          Unrestricted Definitive Note. Upon receipt of a request for such a
          transfer, the Registrar shall register the Unrestricted Definitive
          Notes pursuant to the instructions from the Holder thereof.
          Unrestricted Definitive Notes cannot be exchanged for or transferred
          to Persons who take delivery thereof in the form of a Restricted
          Definitive Note.

                  (f)    Exchange Offer. Upon the occurrence of the Exchange
Offer in accordance with the Registration Rights Agreement, the Company shall
issue and, upon receipt of an authentication order in accordance with Section
2.02, the Trustee shall authenticate (i) one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by persons that
are not (x) broker-dealers, (y) Persons participating in the distribution of the
Exchange Notes or (z) Persons who are affiliates (as defined in Rule 144) of the
Company and accepted for exchange in the exchange Offer and (ii) Definitive
Notes in an aggregate principal amount equal to the principal amount of the
Restricted Definitive Notes accepted for exchange in the Exchange Offer.
Concurrent with the issuance of such Notes, the Trustee shall cause the
aggregate principal amount of the applicable Restricted Global Notes to be
reduced accordingly, and the Company shall execute and the Trustee shall
authenticate and make available for delivery to the Persons designated by the
Holders of Definitive Notes so accepted Definitive Notes in the appropriate
principal amount.

                                       31

<PAGE>

                  (g)    Legends. The following legends shall appear on the face
of all Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

                  (i)    Private Placement Legend.

                         (A)    Except as permitted by subparagraph (b) below,
                  each Global Note and each Definitive Note (and all Notes
                  issued in exchange therefor or substitution thereof) shall
                  bear the legend in substantially the following form:

         "THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY
         ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE
         UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
         ACT"), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR
         OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
         APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY
         EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON
         THE EXEMPTION FROM THE PROVISION OF SECTION 5 OF THE SECURITIES ACT
         PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED
         HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY
         BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1) (a) TO A PERSON
         WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
         (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
         MEETING THE REQUIREMENTS OF RULE 144A, (b) IN A TRANSACTION MEETING THE
         REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (c) OUTSIDE THE
         UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE
         REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT OR (d) IN ACCORDANCE
         WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
         SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO
         REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE
         REGISTRATION STATEMENT, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE
         SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
         APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
         HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
         EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE."

                         (B)    Notwithstanding the foregoing, any Global Note
                  or Definitive Note issued pursuant to subparagraphs (b)(iv),
                  (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f)
                  to this Section 2.06 (and all Notes issued in exchange
                  therefor or substitution thereof) shall not bear the Private
                  Placement Legend.

                  (ii)   Global Note Legend. Each Global Note shall bear a
          legend in substantially the following form:

                                       32

<PAGE>

         "THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
         INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
         BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
         PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE
         SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF
         THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT
         IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL
         NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
         SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
         TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF
         THE COMPANY."

                  (h)    Cancellation and/or Adjustment of Global Notes. At such
time as all beneficial interests in a particular Global Note have been exchanged
for Definitive Notes or a particular Global Note has been redeemed, repurchased
or canceled in whole and not in part, each such Global Note shall be returned to
or retained and canceled by the Trustee in accordance with Section 2.11 hereof.
At any time prior to such cancellation, if any beneficial interest in a Global
Note is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note, by the
Trustee or by the Depositary at the direction of the Trustee, to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note, by the Trustee or by the
Depositary at the direction of the Trustee, to reflect such increase.

                  (i)    General Provisions Relating to Transfers and Exchanges.

                  (i)    To permit registrations of transfers and exchanges, the
          Company shall execute and the Trustee shall authenticate Global Notes
          and Definitive Notes upon the Company's order or at the Registrar's
          request.

                  (ii)   No service charge shall be made to a holder of a
          beneficial interest in a Global Note or to a Holder of a Definitive
          Note for any registration of transfer or exchange, but the Company may
          require payment of a sum sufficient to cover any transfer tax or
          similar governmental charge payable in connection therewith (other
          than any such transfer taxes or similar governmental charge payable
          upon exchange or transfer pursuant to Sections 2.10, 3.06, 4.10, 4.15
          and 9.05 hereof).

                  (iii)  The Registrar shall not be required to register the
          transfer of or exchange any Note selected for redemption in whole or
          in part, except the unredeemed portion of any Note being redeemed in
          part.

                  (iv)   All Global Notes and Definitive Notes issued upon any
          registration of transfer or exchange of Global Notes or Definitive
          Notes shall be the valid obligations of

                                       33

<PAGE>

          the Company, evidencing the same debt, and entitled to the same
          benefits under this Indenture, as the Global Notes or Definitive Notes
          surrendered upon such registration of transfer or exchange.

                  (v)    The Company shall not be required (A) to issue, to
          register the transfer of or to exchange Notes during a period
          beginning at the opening of business 15 days before the day of any
          selection of Notes for redemption under Section 3.02 hereof and ending
          at the close of business on the day of selection, (B) to register the
          transfer of or to exchange any Note so selected for redemption in
          whole or in part, except the unredeemed portion of any Note being
          redeemed in part or (C) to register the transfer of or to exchange a
          Note between a record date and the next succeeding Interest Payment
          Date.

                  (vi)   Prior to due presentment for the registration of a
          transfer of any Note, the Trustee, any Agent and the Company may deem
          and treat the Person in whose name any Note is registered as the
          absolute owner of such Note for the purpose of receiving payment of
          principal of and interest on such Notes and for all other purposes,
          and none of the Trustee, any Agent or the Company shall be affected by
          notice to the contrary.

                  (vii)  The Trustee shall authenticate Global Notes and
          Definitive Notes in accordance with the provisions of Section 2.02
          hereof.

Section 2.07      Replacement Notes.

                  If any mutilated Note is surrendered to the Trustee, or the
Company and the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, the Company shall issue and the Trustee,
upon the written order of the Company signed by two Officers of the Company,
shall authenticate a replacement Note if the Trustee's requirements are met. If
required by the Trustee or the Company, an indemnity bond must be supplied by
the Holder that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent and any authenticating agent from
any loss that any of them may suffer if a Note is replaced. The Company may
charge for its expenses in replacing a Note.

                  Every replacement Note is an additional obligation of the
Company and shall be entitled to all of the benefits of this Indenture equally
and proportionately with all other Notes duly issued hereunder.

Section 2.08      Outstanding Notes.

                  The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest in a Global Note effected
by the Trustee in accordance with the provisions hereof, and those described in
this Section as not outstanding. Except as set forth in Section 2.09 hereof, a
Note does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Note.

                  If a Note is replaced pursuant to Section 2.07 hereof, it
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Note is held by a bona fide purchaser.

                                       34

<PAGE>

                  If the principal amount of any Note is considered paid under
Section 4.01 hereof, it ceases to be outstanding and interest on it ceases to
accrue.

                  If the Paying Agent (other than the Company, a Subsidiary or
an Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay Notes payable on that date, then on and after that date such
Notes shall be deemed to be no longer outstanding and shall cease to accrue
interest.

Section 2.09      Treasury Notes.

                  In determining whether the Holders of the required principal
amount of Notes have concurred in any direction, waiver or consent, Notes owned
by the Company, or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company, shall
be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes that a Trustee knows are so owned shall
be so disregarded.

Section 2.10      Temporary Notes.

                  Until Definitive Notes are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Notes upon a written order
of the Company signed by two Officers of the Company. Temporary Notes shall be
substantially in the form of Definitive Notes but may have variations that the
Company considers appropriate for temporary Notes and as shall be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company shall prepare
and the Trustee shall authenticate Definitive Notes in exchange for temporary
Notes.

                  Holders of temporary Notes shall be entitled to all of the
benefits of this Indenture.

Section 2.11      Cancellation.

                  The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The
Trustee and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall destroy
canceled Notes (subject to the record retention requirement of the Exchange
Act). Certification of the destruction of all canceled Notes shall be delivered
to the Company. The Company may not issue new Notes to replace Notes that it has
paid or that have been delivered to the Trustee for cancellation.

Section 2.12      Defaulted Interest.

                  If the Company defaults in a payment of interest on the Notes,
it shall pay the defaulted interest in any lawful manner plus, to the extent
lawful, interest payable on the defaulted interest, to the Persons who are
Holders on a subsequent special record date, in each case at the rate provided
in the Notes and in Section 4.01 hereof. The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and
the date of the proposed payment. The Company shall fix or cause to be fixed
each such special

                                       35

<PAGE>

record date and payment date, provided that no such special record date shall be
less than 10 days prior to the related payment date for such defaulted interest.
At least 15 days before the special record date, the Company (or, upon the
written request of the Company, the Trustee in the name and at the expense of
the Company) shall mail or cause to be mailed to Holders a notice that states
the special record date, the related payment date and the amount of such
interest to be paid.

Section 2.13      CUSIP Numbers.

                  The Company in issuing the Notes may use CUSIP numbers (if
then generally in use), and, if so, the Trustee shall use CUSIP numbers in
notices of redemption as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Notes or as contained in any notice of a redemption and
that reliance may be placed only on the other identification numbers printed on
the Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee of any
change in the CUSIP numbers.

                                   ARTICLE 3.
                            REDEMPTION AND PREPAYMENT

Section 3.01      [Reserved].

Section 3.02      Selection of Notes to Be Redeemed.

                  If less than all of the Notes are to be redeemed at any time,
selection of Notes for redemption shall be made by the Trustee in compliance
with the requirements of the principal national securities exchange, if any, on
which the Notes are listed, or, if the Notes are not so listed, on a pro rata
basis, by lot or by such method as the Trustee shall deem fair and appropriate;
provided that no Notes of $1,000 or less shall be redeemed in part. Notices of
redemption shall be mailed by first class mail at least 30 but not more than 60
days before the redemption date to each Holder of Notes to be redeemed at its
registered address. Notices of redemption may not be conditional. If any Note is
to be redeemed in part only, the notice of redemption that relates to such Note
shall state the portion of the principal amount thereof to be redeemed. A new
Note in principal amount equal to the unredeemed portion thereof shall be issued
in the name of the Holder thereof upon cancellation of the original Note. Notes
called for redemption become due on the date fixed for redemption. On and after
the redemption date, interest ceases to accrue on Notes or portions of them
called for redemption.

                  The Trustee shall promptly notify the Company in writing of
the Notes selected for redemption and, in the case of any Note selected for
partial redemption, the principal amount thereof to be redeemed. Notes and
portions of Notes selected shall be in amounts of $1,000 or whole multiples of
$1,000; except that if all of the Notes of a Holder are to be redeemed, the
entire outstanding amount of Notes held by such Holder, even if not a multiple
of $1,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption also
apply to portions of Notes called for redemption.

                                       36

<PAGE>

Section 3.03      Notice Of Redemption.

                  Subject to the provisions of Section 3.09 hereof, at least 30
days but not more than 60 days before a redemption date, the Company shall mail
or cause to be mailed, by first class mail, a notice of redemption to each
Holder whose Notes are to be redeemed at its registered address.

                  The notice shall identify the Notes to be redeemed (including
CUSIP Numbers, if any) and shall state:

                  (a)    the redemption date;

                  (b)    the redemption price;

                  (c)    if any Note is being redeemed in part, the portion of
the principal amount of such Note to be redeemed and that, after the redemption
date upon surrender of such Note, a new Note or Notes in principal amount equal
to the unredeemed portion shall be issued upon cancellation of the original
Note;

                  (d)    the name and address of the Paying Agent;

                  (e)    that Notes called for redemption must be surrendered to
the Paying Agent to collect the redemption price;

                  (f)    that, unless the Company defaults in making such
redemption payment, interest on Notes called for redemption ceases to accrue on
and after the redemption date;

                  (g)    the paragraph of the Notes and/or Section of this
Indenture pursuant to which the Notes called for redemption are being redeemed;
and

                  (h)    that no representation is made as to the correctness or
accuracy of the CUSIP number, if any, listed in such notice or printed on the
Notes.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided, however, that the
Company shall have delivered to the Trustee, at least 45 days prior to the
redemption date, an Officers' Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided
in the preceding paragraph.

Section 3.04      Effect Of Notice Of Redemption.

                  Once notice of redemption is mailed in accordance with Section
3.03 hereof, Notes called for redemption become irrevocably due and payable on
the redemption date at the redemption price. A notice of redemption may not be
conditional.

                                       37

<PAGE>

Section 3.05      Deposit Of Redemption Price.

                  Prior to 11:00 a.m. on the Business Day prior to the
redemption date, the Company shall deposit with the Trustee or with the Paying
Agent money sufficient to pay the redemption price of and accrued interest on
all Notes to be redeemed on that date. The Trustee or the Paying Agent shall
promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the
redemption price of, and accrued interest on, all Notes to be redeemed.

                  If the Company complies with the provisions of the preceding
paragraph, on and after the redemption date, interest shall cease to accrue on
the Notes or the portions of Notes called for redemption. If a Note is redeemed
on or after an interest record date but on or prior to the related interest
payment date, then any accrued and unpaid interest shall be paid to the Person
in whose name such Note was registered at the close of business on such record
date. If any Note called for redemption shall not be so paid upon surrender for
redemption because of the failure of the Company to comply with the preceding
paragraph, interest shall be paid on the unpaid principal, from the redemption
date until such principal is paid, and to the extent lawful on any interest not
paid on such unpaid principal, in each case at the rate provided in the Notes
and in Section 4.01 hereof.

Section 3.06      Notes Redeemed In Part.

                  Upon surrender of a Note that is redeemed in part, the Company
shall issue and, upon the Company's written request, the Trustee shall
authenticate for the Holder at the expense of the Company a new Note equal in
principal amount to the unredeemed portion of the Note surrendered.

Section 3.07      [Reserved].

Section 3.08      Mandatory Redemption.

                  Except as set forth under Sections 4.10 and 4.15, the Company
is not required to make mandatory redemption or sinking fund payments with
respect to the Notes.

Section 3.09      Offer To Purchase By Application Of Excess Proceeds.

                  In the event that, pursuant to Section 4.10 hereof, the
Company shall be required to commence an offer to all Holders to purchase Notes
(an "Asset Sale Offer"), it shall follow the procedures specified below.

                  The Asset Sale Offer shall remain open for a period of 20
Business Days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the "Offer Period"). No
later than five Business Days after the termination of the Offer Period (the
"Purchase Date"), the Company shall purchase the principal amount of Notes
required to be purchased pursuant to Section 4.10 hereof (the "Offer Amount")
or, if less than the Offer Amount has been tendered, all Notes tendered in
response to the Asset Sale Offer. Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

                                       38

<PAGE>

                  If the Purchase Date is on or after an interest record date
and on or before the related interest payment date, any accrued and unpaid
interest shall be paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional interest shall be
payable to Holders who tender Notes pursuant to the Asset Sale Offer.

                  Upon the commencement of an Asset Sale Offer, the Company
shall send, by first class mail, a notice to the Trustee and each of the
Holders, with a copy to the Trustee. The notice shall contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The Asset Sale Offer shall be made to all Holders. The notice,
which shall govern the terms of the Asset Sale Offer, shall state:
(a) that the Asset Sale Offer is being made pursuant to this Section 3.09 and
Section 4.10 hereof and the length of time the Asset Sale Offer shall remain
open;

                  (b)    the Offer Amount, the purchase price and the Purchase
Date;

                  (c)    that any Note not tendered or accepted for payment
shall continue to accrete or accrue interest;

                  (d)    that, unless the Company defaults in making such
payment, any Note accepted for payment pursuant to the Asset Sale Offer shall
cease to accrete or accrue interest after the Purchase Date;

                  (e)    that Holders electing to have a Note purchased pursuant
to an Asset Sale Offer may only elect to have all of such Note purchased and may
not elect to have only a portion of such Note purchased;

                  (f)    that Holders electing to have a Note purchased pursuant
to any Asset Sale Offer shall be required to surrender the Note, with the form
entitled "Option of Holder to Elect Purchase" on the reverse of the Note
completed, or transfer by book-entry transfer, to the Company, a depositary, if
appointed by the Company, or a Paying Agent at the address specified in the
notice at least three days before the Purchase Date;

                  (g)    that Holders shall be entitled to withdraw their
election if the Company, the depositary or the Paying Agent, as the case may be,
receives, not later than the expiration of the Offer Period, a facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of the Note the Holder delivered for purchase and a statement that such
Holder is withdrawing his election to have such Note purchased;

                  (h)    that, if the aggregate principal amount of Notes
surrendered by Holders exceeds the Offer Amount, the Company shall select the
Notes to be purchased on a pro rata basis (with such adjustments as may be
deemed appropriate by the Company so that only Notes in denominations of $1,000,
or integral multiples thereof, shall be purchased); and

                  (i)    that Holders whose Notes were purchased only in part
shall be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered (or transferred by book-entry transfer).

                                       39

<PAGE>

                  On or before the Purchase Date, the Company shall, to the
extent lawful, accept for payment, on a pro rata basis to the extent necessary,
the Offer Amount of Notes or portions thereof tendered pursuant to the Asset
Sale Offer, or if less than the Offer Amount has been tendered, all Notes
tendered, and shall deliver to the Trustee an Officers' Certificate stating that
such Notes or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.09. The Company, the Depositary or
the Paying Agent, as the case may be, shall promptly (but in any case not later
than five days after the Purchase Date) mail or deliver to each tendering Holder
an amount equal to the purchase price of the Notes tendered by such Holder and
accepted by the Company for purchase, and the Company shall promptly issue a new
Note, and the Trustee, upon written request from the Company shall authenticate
and mail or deliver such new Note to such Holder, in a principal amount equal to
any unpurchased portion of the Note surrendered. Any Note not so accepted shall
be promptly mailed or delivered by the Company to the Holder thereof. The
Company shall publicly announce the results of the Asset Sale Offer on the
Purchase Date.

                  Other than as specifically provided in this Section 3.09, any
purchase pursuant to this Section 3.09 shall be made pursuant to the provisions
of Sections 3.02 through 3.06 hereof.

                                   ARTICLE 4.
                                    COVENANTS

                  The covenants contained in this Article 4 shall be suspended
until such time as the Notes are Issued and released from escrow pursuant to the
Escrow Agreement, at which time such covenants shall be deemed to have been in
full force and effect since the date of this Indenture.

Section 4.01      Payment Of Notes.

                  The Company shall pay or cause to be paid the principal of,
premium, if any, and interest on the Notes on the dates and in the manner
provided in the Notes. Principal, premium, if any, and interest shall be
considered paid on the date due if the Paying Agent, if other than the Company
or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date
money deposited by the Company in immediately available funds and designated for
and sufficient to pay all principal, premium, if any, and interest then due. The
Company shall pay all Additional Amounts, if any, in the same manner on the
dates and in the amounts set forth in the Registration Rights Agreement.

                  The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at the
rate equal to 2.0% per annum in excess of the then applicable interest rate on
the Notes to the extent lawful; it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Amounts (without regard to any applicable grace period)
at the same rate to the extent lawful.

Section 4.02      Maintenance Of Office Or Agency.

                  The Company shall maintain in the Borough of Manhattan, The
City of New York, an office or agency (which may be an office of the Trustee or
an affiliate of the Trustee,

                                       40

<PAGE>

Registrar or co-registrar) where Notes may be surrendered for registration of
transfer or for exchange and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served. The Company shall give
prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee.

                  The Company may also from time to time designate one or more
other offices or agencies where the Notes may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, The City of New York for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency.

                  The Company hereby designates the Corporate Trust Office of
the Trustee as one such office or agency of the Company in accordance with
Section 2.03.

Section 4.03      Reports.

                  Notwithstanding that the Company may not be subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act or otherwise
report on an annual and quarterly basis on forms provided for such annual and
quarterly reporting pursuant to rules and regulations promulgated by the SEC,
the Company shall file with the SEC (and provide the Trustee and Holders with
copies thereof), without cost to each Holder, within 15 days after it files them
with the SEC:

                  (a)    within 90 days after the end of each fiscal year,
annual reports on Form 10-K (or any successor or comparable form) containing the
information required to be contained therein (or required in such successor or
comparable form);

                  (b)    within 45 days after the end of each of the first three
fiscal quarters of each fiscal year, reports on Form 10-Q (or any successor or
comparable form);

                  (c)    promptly from time to time after the occurrence of an
event required to be therein reported, such other reports on Form 8-K (or any
successor or comparable form); and

                  (d)    any other information, documents and other reports
which the Company would be required to file with the SEC if it were subject to
Section 13 or 15(d) of the Exchange Act; provided, however, the Company shall
not be so obligated to file such reports with the SEC if the SEC does not permit
such filing, in which event the Company will make available such information to
prospective purchasers of Notes, in addition to providing such information to
the Trustee and the Holders, in each case within 15 days after the time the
Company would be required to file such information with the SEC, if it were
subject to Sections 13 or 15(d) of the Exchange Act.

                                       41

<PAGE>

                  Subject to the provisions of Article 7, delivery of such
reports, information and documents to the Trustee is for informational purposes
only and the Trustee's receipt of such shall not constitute constructive notice
of any information contained therein or determinable from information contained
therein, including the Company's compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers'
Certificates).

Section 4.04      Compliance Certificate.

                  (a)    The Company shall deliver to the Trustee, within 90
days after the end of each fiscal year, an Officers' Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his or her knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this
Indenture (or, if a Default or Event of Default shall have occurred, describing
all such Defaults or Events of Default of which he or she may have knowledge and
what action the Company is taking or proposes to take with respect thereto) and
that to the best of his or her knowledge no event has occurred and remains in
existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a
description of the event and what action the Company is taking or proposes to
take with respect thereto.

                  (b)    So long as not contrary to the then current
recommendations of the American Institute of Certified Public Accountants, the
year-end financial statements delivered pursuant to Section 4.03(a) above shall
be accompanied by a written statement of the Company's independent public
accountants (who shall be a firm of established national reputation) that in
making the examination necessary for certification of such financial statements,
nothing has come to their attention that would lead them to believe that the
Company has violated any provisions of Article 4 or Article 5 hereof or, if any
such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants shall not be liable directly
or indirectly to any Person for any failure to obtain knowledge of any such
violation.

                  (c)    The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, as soon as possible and in any event within
five Business Days after any Officer becoming aware of any Default or Event of
Default, an Officers' Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

Section 4.05      Taxes.

                  The Company shall pay, and shall cause each of its
Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes.

                                       42

<PAGE>

Section 4.06      [Intentionally Omitted]

Section 4.07      Restricted Payments.

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly: (i) declare or pay any
dividend or make any other payment or distribution on account of the Company's
or any of its Restricted Subsidiaries' Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving
the Company) or to the direct or indirect holders of the Company's or any of its
Restricted Subsidiaries' Equity Interests in their capacity as such (other than
(A) dividends or distributions payable in Equity Interests (other than
Disqualified Stock) of the Company or (B) dividends or distributions by a
Restricted Subsidiary so long as, in the case of any dividend or distribution
payable on or in respect of any class or series of securities issued by a
Restricted Subsidiary other than a Wholly Owned Restricted Subsidiary, the
Company or a Restricted Subsidiary receives at least its pro rata share of such
dividend or distribution in accordance with its Equity Interests in such class
or series of securities); (ii) purchase, redeem or otherwise acquire or retire
for value (including without limitation, in connection with any merger or
consolidation involving the Company) any Equity Interests of the Company or any
direct or indirect parent of the Company; (iii) make any payment on or with
respect to, or purchase, redeem, defease or otherwise acquire or retire for
value any Indebtedness that is subordinated to the Notes except a payment of
interest or principal at Stated Maturity; or (iv) make any Restricted Investment
(all such payments and other actions set forth in clauses (i) through (iv) above
being collectively referred to as "Restricted Payments"), unless, at the time of
and after giving effect to such Restricted Payment:

                  (a)    no Default or Event of Default shall have occurred and
          be continuing or would occur as a consequence thereof; and

                  (b)    the Company would, at the time of such Restricted
          Payment and after giving pro forma effect thereto as if such
          Restricted Payment had been made at the beginning of the applicable
          four-quarter period, have been permitted to incur at least $1.00 of
          additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
          test set forth in the first paragraph of Section 4.09; and

                  (c)    such Restricted Payment, together with the aggregate
          amount of all other Restricted Payments made by the Company and its
          Restricted Subsidiaries since April 30, 1997 (excluding Restricted
          Payments permitted by clauses (ii) through (vii) of the next
          succeeding paragraph or of the kind contemplated by such clauses that
          were made prior to the date of the Indenture), is less than the sum of
          (i) 50% of the Consolidated Net Income of the Company for the period
          (taken as one accounting period) from July 1, 1997 to the end of the
          Company's most recently ended fiscal quarter for which internal
          financial statements are available at the time of such Restricted
          Payment (or, if such Consolidated Net Income for such period is a
          deficit, less 100% of such deficit), plus (ii) 100% of the aggregate
          net cash proceeds received by the Company since April 30, 1997 as a
          contribution to its common equity capital or the issue or sale of
          Equity Interests of the Company (other than Disqualified Stock) or of
          Disqualified Stock or debt securities of the Company that have been
          converted into such Equity Interests (other than Equity

                                       43

<PAGE>

          Interests (or Disqualified Stock or convertible debt securities) sold
          to a Subsidiary of the Company and other than Disqualified Stock or
          convertible debt securities that have been converted into Disqualified
          Stock), plus (iii) to the extent that any Restricted Investment that
          was made after April 30, 1997 is sold for cash or otherwise liquidated
          or repaid for cash, the amount of cash received in connection
          therewith (or from the sale of Marketable Securities received in
          connection therewith), plus (iv) to the extent not already included in
          such Consolidated Net Income of the Company for such period and
          without duplication, (A) 100% of the aggregate amount of cash received
          as a dividend from an Unrestricted Subsidiary, (B) 100% of the cash
          received upon the sale of Marketable Securities received as a dividend
          from an Unrestricted Subsidiary, and (C) 100% of the net assets of any
          Unrestricted Subsidiary on the date that it becomes a Restricted
          Subsidiary.

                  The foregoing provisions shall not prohibit: (i) the payment
of any dividend within 60 days after the date of declaration thereof, if at said
date of declaration such payment would have complied with the provisions of this
Indenture; (ii) the redemption, repurchase, retirement, defeasance or other
acquisition of any subordinated Indebtedness or Equity Interests of the Company
in exchange for, or out of the net cash proceeds of the substantially concurrent
sale (other than to a Subsidiary of the Company) of, other Equity Interests of
the Company (other than any Disqualified Stock); provided that the amount of any
such net cash proceeds that are utilized for any such redemption, repurchase,
retirement, defeasance or other acquisition shall be excluded from clause (c)
(ii) of the preceding paragraph; (iii) the defeasance, redemption, repurchase or
other acquisition of subordinated Indebtedness (other than intercompany
Indebtedness) in exchange for, or with the net cash proceeds from an incurrence
of, Permitted Refinancing Indebtedness; (iv) the repurchase, retirement or other
acquisition or retirement for value of common Equity Interests of the Company or
Holdings held by any future, present or former employee, director or consultant
of the Company or any Subsidiary or Holdings issued pursuant to any management
equity plan or stock option plan or any other management or employee benefit
plan or agreement; provided, however, that the aggregate amount of Restricted
Payments made under this clause (iv) does not exceed $1.5 million in any
calendar year and provided further that cancellation of Indebtedness owing to
the Company from members of management of the Company or any of its Restricted
Subsidiaries in connection with a repurchase of Equity Interests of the Company
shall not be deemed to constitute a Restricted Payment for purposes of this
covenant or any other provision of this Indenture; (v) repurchases of Equity
Interests deemed to occur upon exercise of stock options upon surrender of
Equity Interests to pay the exercise price of such options; (vi) payments to
Holdings (A) in amounts equal to the amounts required for Holdings to pay
franchise taxes and other fees required to maintain its legal existence and
provide for other operating costs of up to $500,000 per fiscal year and (B) in
amounts equal to amounts required for Holdings to pay federal, state and local
income taxes to the extent such income taxes are actually due and owing;
provided that the aggregate amount paid under this clause (B) does not exceed
the amount that the Company would be required to pay in respect of the income of
the Company and its Subsidiaries if the Company were a stand alone entity that
was not owned by Holdings; and (vii) other Restricted Payments in an aggregate
amount since May 22, 1998 not to exceed $20.0 million.

                  The Board of Directors of the Company may designate any
Restricted Subsidiary to be an Unrestricted Subsidiary if such designation would
not cause a Default. For purposes of

                                       44

<PAGE>

making such determination, all outstanding Investments by the Company and its
Restricted Subsidiaries (except to the extent repaid in cash) in the Subsidiary
so designated shall be deemed to be Restricted Payments at the time of such
designation and shall reduce the amount available for Restricted Payments under
the first paragraph of this covenant. All such outstanding Investments shall be
deemed to constitute Investments in an amount equal to the fair market value of
such Investments at the time of such designation. Such designation shall only be
permitted if such Restricted Payment would be permitted at such time and if such
Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.

                  The amount of all Restricted Payments (other than cash) shall
be the fair market value on the date of the Restricted Payment of the asset(s)
or securities proposed to be transferred or issued by the Company or such
Subsidiary, as the case may be, pursuant to the Restricted Payment. The fair
market value of any non-cash Restricted Payment shall be determined by the Board
of Directors whose resolution with respect thereto shall be delivered to the
Trustee. Not later than the date of making any Restricted Payment, the Company
shall deliver to the Trustee an Officers' Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the
calculations required by Section 4.07 were computed.

Section 4.08     Dividend And Other Payment Restrictions Affecting Subsidiaries.

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any encumbrance or restriction on the
ability of any Restricted Subsidiary to (i)(A) pay dividends or make any other
distributions to the Company or any of its Restricted Subsidiaries (1) on its
Capital Stock or (2) with respect to any other interest or participation in, or
measured by, its profits, or (B) pay any indebtedness owed to the Company or any
of its Restricted Subsidiaries, (ii) make loans or advances to the Company or
any of its Restricted Subsidiaries, or (iii) transfer any of its properties or
assets to the Company or any of its Restricted Subsidiaries, except for such
encumbrances or restrictions existing under or by reason of (A) the provisions
of security agreements that restrict the transfer of assets that are subject to
a Lien created by such security agreements, (B) the provisions of agreements
governing Indebtedness incurred pursuant to clause (v) of the second paragraph
of Section 4.09, (C) the Senior Credit Facilities, this Indenture, the Notes,
the 1997 Indenture, the 1997 Notes, the May 1998, Indenture, the May 1998 Notes,
the December 1998 Indenture and the December 1998 Notes, (D) applicable law, (E)
any instrument governing Indebtedness or Capital Stock of a Person acquired by
the Company or any of its Restricted Subsidiaries as in effect at the time of
such acquisition (except to the extent such Indebtedness was incurred in
connection with or in contemplation of such acquisition), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person, or the property or assets of the Person, so
acquired, provided that, in the case of Indebtedness, such Indebtedness was
permitted by the terms of this Indenture to be incurred, (F) by reason of
customary non-assignment provisions in leases entered into in the ordinary
course of business and consistent with past practices, (G) purchase money
obligations for property acquired in the ordinary course of business that impose
restrictions of the nature described in this clause (iii) on the property so
acquired, (H) Permitted Refinancing Indebtedness, provided that the restrictions
contained in the agreements governing such Permitted Refinancing Indebtedness
are no more restrictive than those contained in the agreements governing the
Indebtedness being refinanced, (I) contracts for the sale of assets,

                                       45

<PAGE>

including, without limitation, customary restrictions with respect to a
Subsidiary pursuant to an agreement that has been entered into for the sale or
disposition of all or substantially all of the Capital Stock or assets of such
Subsidiary, (J) agreements relating to secured Indebtedness otherwise permitted
to be incurred pursuant to 4.09 and 4.12 that limit the right of the debtor to
dispose of the assets securing such Indebtedness, (K) restrictions on cash or
other deposits or net worth imposed by customers under contracts entered into in
the ordinary course of business, or (L) customary provisions in joint venture
agreements and other similar agreements entered into in the ordinary course of
business.

Section 4.09      Incurrence Of Indebtedness And Issuance Of Preferred Stock.

                  The Company shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable, contingently or otherwise,
with respect to (collectively, "incur") any Indebtedness (including Acquired
Debt) and that the Company shall not issue any Disqualified Stock and shall not
permit any of its Subsidiaries to issue any shares of preferred stock; provided,
however, that the Company and any Restricted Subsidiary may incur Indebtedness
(including Acquired Debt) or issue shares of preferred stock if the Fixed Charge
Coverage Ratio for the Company's most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the
date on which such additional Indebtedness is incurred or such preferred stock
is issued would have been at least 2.0 to 1.0, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if the
additional Indebtedness had been incurred, or the preferred stock had been
issued, as the case may be, at the beginning of such four-quarter period.

                  The provisions of the first paragraph of this Section 4.09
shall not apply to the incurrence of any of the following items of Indebtedness
(collectively, "Permitted Debt"):

                  (i)    the incurrence by the Company of additional
          Indebtedness under Credit Facilities (and the guarantee thereof by the
          Guarantors) in an aggregate principal amount outstanding pursuant to
          this clause (i) at any one time (with letters of credit being deemed
          to have a principal amount equal to the maximum potential liability of
          the Company and its Restricted Subsidiaries thereunder), including all
          Permitted Refinancing Indebtedness then outstanding incurred to
          refund, refinance or replace any other Indebtedness incurred pursuant
          to this clause (i), not to exceed $375.0 million less the aggregate
          amount of all Net Proceeds of Asset Sales applied since December 11,
          1998 to repay any such Indebtedness pursuant to Section 4.10;

                  (ii)   the incurrence by the Company and its Restricted
          Subsidiaries of the Existing Indebtedness;

                  (iii)  the incurrence by the Company and the Guarantors of
          $500.0 million in aggregate principal amount of the Notes and the
          Subsidiary Guarantees thereof in exchange for the Bridge Loans;

                  (iv)   the incurrence by the Company or any of its Restricted
          Subsidiaries of Indebtedness represented by Capital Lease Obligations,
          mortgage financings or purchase

                                       46

<PAGE>

          money obligations, in each case incurred for the purpose of financing
          all or any part of the purchase price or cost of construction or
          improvement of property, plant or equipment used in the business of
          the Company or such Restricted Subsidiary, in an aggregate principal
          amount, including all Permitted Refinancing Indebtedness then
          outstanding incurred to refund, refinance or replace any other
          Indebtedness incurred pursuant to this clause (iv), not to exceed
          $30.0 million at any time outstanding;

                  (v)    the incurrence by the Company or any of its Restricted
          Subsidiaries of Indebtedness in connection with the acquisition of
          assets or a new Restricted Subsidiary; provided that such Indebtedness
          was incurred by the prior owner of such assets or such Restricted
          Subsidiary prior to such acquisition by the Company or one of its
          Restricted Subsidiaries and was not incurred in connection with, or in
          contemplation of, such acquisition by the Company or one of its
          Restricted Subsidiaries; and provided further that the principal
          amount (or accreted value, as applicable) of such Indebtedness,
          together with any other outstanding Indebtedness incurred pursuant to
          this clause (v), does not exceed $10.0 million;

                  (vi)   the incurrence by the Company or any of its Restricted
          Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or
          the net proceeds of which are used to refund, refinance or replace,
          Indebtedness that was permitted by this Indenture to be incurred
          (other than intercompany Indebtedness or Indebtedness incurred
          pursuant to clause (i) above);

                  (vii)  Indebtedness incurred by the Company or any of its
          Restricted Subsidiaries constituting reimbursement obligations with
          respect to letters of credit issued in the ordinary course of business
          in respect of workers' compensation claims or self-insurance, or other
          Indebtedness with respect to reimbursement type obligations regarding
          workers' compensation claims; provided, however, that upon the drawing
          of such letters of credit or the incurrence of such Indebtedness, such
          obligations are reimbursed within 30 days following such drawing or
          incurrence;

                  (viii) Indebtedness arising from agreements of the Company or
          a Restricted Subsidiary providing for indemnification, adjustment of
          purchase price or similar obligations, in each case, incurred or
          assumed in connection with the disposition of any business, assets or
          a Subsidiary, other than guarantees of Indebtedness incurred by any
          Person acquiring all or any portion of such business, assets or a
          Subsidiary for the purpose of financing such acquisition; provided,
          however, that (A) such Indebtedness is not reflected on the balance
          sheet of the Company or any Restricted Subsidiary (contingent
          obligations referred to in a footnote to financial statements and not
          otherwise reflected on the balance sheet shall not be deemed to be
          reflected on such balance sheet for purposes of this clause (A)) and
          (B) the maximum assumable liability in respect of all such
          Indebtedness shall at no time exceed the gross proceeds including
          noncash proceeds (the fair market value of such noncash proceeds being
          measured at the time received and without giving effect to any
          subsequent changes in value) actually received by the Company and its
          Restricted Subsidiaries in connection with such disposition;

                                       47

<PAGE>

                  (ix)   the incurrence by the Company or any of its Restricted
          Subsidiaries of intercompany Indebtedness between or among the Company
          and any of its Restricted Subsidiaries; provided, however, that (A) if
          the Company is the obligor on such Indebtedness, such Indebtedness is
          expressly subordinated to the prior payment in full in cash of all
          Obligations with respect to the Notes and (B)(1) any subsequent
          issuance or transfer of Equity Interests that results in any such
          Indebtedness being held by a Person other than the Company or one of
          its Restricted Subsidiaries and (2) any sale or other transfer of any
          such Indebtedness to a Person that is not either the Company or one of
          its Restricted Subsidiaries shall be deemed, in each case, to
          constitute an incurrence of such Indebtedness by the Company or such
          Restricted Subsidiary, as the case may be;

                  (x)    the incurrence by the Company or any of the Guarantors
          of Hedging Obligations that are incurred for the purpose of (A)
          fixing, hedging or capping interest rate risk with respect to any
          floating rate Indebtedness that is permitted by the terms of this
          Indenture to be outstanding or (B) protecting the Company and its
          Restricted Subsidiaries against changes in currency exchange rates;

                  (xi)   the guarantee by the Company or any of the Guarantors
          of Indebtedness of the Company or a Restricted Subsidiary of the
          Company that was permitted to be incurred by another provision of this
          Section 4.09;

                  (xii)  the incurrence by the Company's Unrestricted
          Subsidiaries of Non-Recourse Debt, provided, however, that if any such
          Indebtedness ceases to be Non-Recourse Debt of an Unrestricted
          Subsidiary, such event shall be deemed to constitute an incurrence of
          Indebtedness by a Restricted Subsidiary of the Company that was not
          permitted by this clause (xii), and the issuance of preferred stock by
          Unrestricted Subsidiaries;

                  (xiii) obligations in respect of performance and surety bonds
          and completion guarantees provided by the Company or any Restricted
          Subsidiaries in the ordinary course of business; and

                  (xiv)  the incurrence by the Company or any of its Restricted
          Subsidiaries of additional Indebtedness in an aggregate principal
          amount (or accreted value, as applicable) at any time outstanding,
          including all Permitted Refinancing Indebtedness then outstanding
          incurred to refund, refinance or replace any other Indebtedness
          incurred pursuant to this clause (xiv), not to exceed $50.0 million.

                  For purposes of determining compliance with this Section 4.09,
in the event that an item of Indebtedness meets the criteria of more than one of
the categories of Permitted Debt described in clauses (i) through (xiv) above or
is entitled to be incurred pursuant to the first paragraph of this Section 4.09,
the Company shall, in its sole discretion, classify, or later reclassify, such
item of Indebtedness in any manner that complies with this covenant. Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness shall not be deemed to be an incurrence of
Indebtedness for purposes of this Section 4.09.

                                       48

<PAGE>

Section 4.10      Asset Sales.

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, consummate an Asset Sale unless (i) the Company (or
the Restricted Subsidiary, as the case may be) receives consideration at the
time of such Asset Sale at least equal to the fair market value (evidenced by an
Officers' Certificate delivered to the Trustee which will include a resolution
of the Board of Directors with respect to such fair market value in the event
such Asset Sale involves aggregate consideration in excess of $5.0 million) of
the assets or Equity Interests issued or sold or otherwise disposed of and (ii)
at least 80% of the consideration therefor received by the Company or such
Restricted Subsidiary, as the case may be, consists of cash, Cash Equivalents
and/or Marketable Securities; provided, however, that (A) the amount of any
Senior Debt of the Company or such Restricted Subsidiary that is assumed by the
transferee in any such transaction and (B) any consideration received by the
Company or such Restricted Subsidiary, as the case may be, that consists of (1)
all or substantially all of the assets of one or more Similar Businesses, (2)
other long-term assets that are used or useful in one or more Similar Businesses
and (3) Permitted Securities shall be deemed to be cash for purposes of this
provision.

                  Within 365 days after the receipt of any Net Proceeds from an
Asset Sale, the Company may apply such Net Proceeds, at its option, (i) to repay
Indebtedness under a Credit Facility, or (ii) to the acquisition of Permitted
Securities, all or substantially all of the assets of one or more Similar
Businesses, or the making of a capital expenditure or the acquisition of other
long-term assets in a Similar Business. Pending the final application of any
such Net Proceeds, the Company may temporarily reduce Indebtedness under a
Credit Facility or otherwise invest such Net Proceeds in any manner that is not
prohibited by this Indenture. Any Net Proceeds from Asset Sales that are not
applied or invested as provided in the first sentence of this paragraph shall be
deemed to constitute "Excess Proceeds". When the aggregate amount of Excess
Proceeds exceeds $10.0 million, the Company shall make an offer to all holders
of 1997 Notes (an "Asset Sale Offer") to purchase the maximum principal amount
of 1997 Notes that may be purchased out of the Excess Proceeds, at an offer
price in cash in an amount equal to 100% of the principal amount thereof plus
accrued and unpaid interest to the date of purchase, in accordance with the
procedures set forth in the 1997 Indenture. To the extent that the aggregate
amount of 1997 Notes tendered pursuant to an Asset Sale Offer is less than the
remaining Excess Proceeds ("Remaining Excess Proceeds") and the sum of (A) such
amount of Remaining Excess Proceeds and (B) the Remaining Excess Proceeds from
any subsequent Asset Sale Offers exceeds $3.0 million, the Company will be
required to make an offer to all Holders of Notes and any other Indebtedness
that ranks pari passu with the Notes (including, without limitation, the May
1998 Notes and the December 1998 Notes) that, by its terms, requires the Company
to offer to repurchase such Indebtedness with such Remaining Excess Proceeds (a
"Secondary Asset Sale Offer") to purchase the maximum principal amount of Notes
and pari passu Indebtedness that may be purchased out of such Remaining Excess
Proceeds, at an offer price in cash in an amount equal to 100% of the principal
amount thereof plus accrued and unpaid interest thereon, if any, to the date of
purchase, in accordance with the procedures set forth in this Indenture. To the
extent that the aggregate amount of Notes or pari passu Indebtedness tendered
pursuant to a Secondary Asset Sale Offer is less than the Remaining Excess
Proceeds, the Company may use any Remaining Excess Proceeds for general
corporate purposes. If the aggregate principal amount of Notes or pari passu
Indebtedness surrendered by Holders thereof exceeds the amount of

                                       49

<PAGE>

Remaining Excess Proceeds in a Secondary Asset Sale Offer, the Company shall
repurchase such Indebtedness on a pro rata basis and the Trustee shall select
the Notes to be purchased on a pro rata basis. Upon completion of such offer to
purchase, the amount of Excess Proceeds shall be reset at zero.

Section 4.11      Transactions With Affiliates.

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or
otherwise dispose of any of its properties or assets to, or purchase any
property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate (each of the foregoing, an "Affiliate Transaction"),
unless (i) such Affiliate Transaction is on terms that are no less favorable to
the Company or the relevant Restricted Subsidiary than those that would have
been obtained in a comparable transaction by the Company or such Restricted
Subsidiary with an unrelated Person and (ii) the Company delivers to the Trustee
(A) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $5.0 million, a
resolution of the Board of Directors set forth in an Officers' Certificate
certifying that such Affiliate Transaction complies with clause (i) above and
that such Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors and (B) with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $15.0 million, an opinion as to the
fairness to the Holders of such Affiliate Transaction from a financial point of
view issued by an accounting, appraisal or investment banking firm of national
standing.

                  The foregoing provisions shall not prohibit: (i) any
employment agreement entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business; (ii) any transaction with a
Lehman Investor; (iii) any transaction between or among the Company and/or its
Restricted Subsidiaries; (iv) transactions between the Company or any of its
Restricted Subsidiaries, on the one hand, and Lockheed Martin or any of its
Subsidiaries or a Permitted Joint Venture, on the other hand, on terms that are
not materially less favorable to the Company or the applicable Restricted
Subsidiary of the Company than those that could have been obtained from an
unaffiliated third party; provided that (A) in the case of any such transaction
or series of related transactions pursuant to this clause (iv) involving
aggregate consideration in excess of $5.0 million but less than $25.0 million,
such transaction or series of transactions (or the agreement pursuant to which
the transactions were executed) was approved by the Company's Chief Executive
Officer or Chief Financial Officer and (B) in the case of any such transaction
or series of related transactions pursuant to this clause (iv) involving
aggregate consideration equal to or in excess of $25.0 million, such transaction
or series of related transactions (or the agreement pursuant to which the
transactions were executed) was approved by a majority of the disinterested
members of the Board of Directors; (v) any transaction pursuant to and in
accordance with the provisions of the Transaction Documents as the same are in
effect on the date of this Indenture; and (vi) any Restricted Payment that is
permitted by the provisions of Section 4.07.

                                       50
<PAGE>

Section 4.12      Liens.

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
suffer to exist any Lien securing Indebtedness on any asset now owned or
hereafter acquired, or any income or profits therefrom or assign or convey any
right to receive income therefrom, except Permitted Liens.

Section 4.13      Future Subsidiary Guarantees.

                  If the Company or any of its Subsidiaries shall acquire or
create a Subsidiary (other than a Foreign Subsidiary or an Unrestricted
Subsidiary) after the date of the Indenture, then such Subsidiary shall execute
a Subsidiary Guarantee, in the form of the Supplemental Indenture attached
hereto as Exhibit E, and the Form of Notation on Senior Subordinated Note,
attached hereto as Exhibit F, and deliver an opinion of counsel as to the
validity of such Subsidiary Guarantee, in accordance with the terms of this
Indenture. The Subsidiary Guarantee of each Guarantor will be subordinated to
the prior payment in full of all Senior Debt of such Guarantor, which would
include the guarantees of amounts borrowed under the Senior Credit Facilities.
The obligations of each Guarantor under its Subsidiary Guarantee will be limited
so as not to constitute a fraudulent conveyance under applicable law.

                  No Guarantor may consolidate with or merge with or into
(whether or not such Guarantor is the surviving Person) another Person (except
the Company or another Guarantor) unless (i) subject to the provisions of the
following paragraph, the Person formed by or surviving any such consolidation or
merger (if other than such Guarantor) or to which such sale, assignment,
transfer, lease, conveyance or other disposition shall have been made assumes
all the obligations of such Guarantor pursuant to a supplemental indenture in
form and substance reasonably satisfactory to the Trustee, under the Notes and
this Indenture; (ii) immediately after giving effect to such transaction, no
Default or Event of Default exists; (iii) the Company (A) would be permitted by
virtue of the Company's pro forma Fixed Charge Coverage Ratio, immediately after
giving effect to such transaction, to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in
Section 4.09 or (B) would have a pro forma Fixed Charge Coverage Ratio that is
greater than the actual Fixed Charge Coverage Ratio for the same four-quarter
period without giving pro forma effect to such transaction.

                  Notwithstanding the foregoing paragraph, (i) any Guarantor may
consolidate with, merge into or transfer all or part of its properties and
assets to the Company and (ii) any Guarantor may merge with an Affiliate that
has no significant assets or liabilities and was incorporated solely for the
purpose of reincorporating such Guarantor in another State of the United States
so long as the amount of Indebtedness of the Company and its Restricted
Subsidiaries is not increased thereby.

                  In the event of a sale or other disposition of all of the
assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale
or other disposition of all of the capital stock of any Guarantor, then such
Guarantor (in the event of a sale or other disposition, by way of such a merger,
consolidation or otherwise, of all of the capital stock of such Guarantor) or
the corporation acquiring the property (in the event of a sale or other
disposition of all of the assets

                                       51
<PAGE>

of such Guarantor) will be released and relieved of any obligations under its
Subsidiary Guarantee; provided that the Net Proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of Section
4.10.

Section 4.14      Corporate Existence.

                  Subject to Article 5 hereof, the Company shall do or cause to
be done all things necessary to preserve and keep in full force and effect (i)
its corporate existence, and the corporate, partnership or other existence of
each of its Restricted Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Company or any such Restricted Subsidiary and (ii) the rights (charter and
statutory), licenses and franchises of the Company and its Restricted
Subsidiaries; provided, however, that the Company shall not be required to
preserve any such right, license or franchise, or the corporate, partnership or
other existence of any of its Restricted Subsidiaries, if the Board of Directors
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and its Restricted Subsidiaries, taken as
a whole, and that the loss thereof is not adverse in any material respect to the
Holders of the Notes.

Section 4.15      Offer To Repurchase Upon Change Of Control.

                  (a)    Upon the occurrence of a Change of Control, each Holder
of Notes shall have the right to require the Company to repurchase all or any
part (equal to $1,000 or an integral multiple thereof) of such Holder's Notes
pursuant to the offer described below (the "Change of Control Offer") at an
offer price in cash equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest and Additional Amounts thereon, if any, to the date
of purchase (the "Change of Control Payment"). Within ten days following any
Change of Control, the Company shall mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and offering
to repurchase Notes on the date specified in such notice, which date shall be no
earlier than 30 days and no later than 60 days from the date such notice is
mailed (the "Change of Control Payment Date"). Such notice, which shall govern
the terms of the Change of Control offer, shall state: (i) that the Change of
Control Offer is being made pursuant to this Section 4.15 and that all Notes
tendered will be accepted for payment; (ii) the purchase price and the purchase
date; (iii) that any Note not tendered will continue to accrue interest; (iv)
that, unless the Company defaults in the payment of the Change of Control
Payment, all Notes accepted for payment pursuant to the Change of Control Offer
shall cease to accrue interest after the Change of Control Payment Date; (v)
that Holders electing to have any Notes purchased pursuant to a Change of
Control Offer will be required to surrender the Notes, with the form entitled
"Option of Holder to Elect Purchase" on the reverse of the Notes completed, to
the Paying Agent at the address specified in the notice prior to the close of
business on the third Business Day preceding the Change of Control Payment Date;
(vi) that Holders will be entitled to withdraw their election if the Paying
Agent receives, not later than the close of business on the second Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Notes delivered for purchase, and a statement that such Holder is
withdrawing his election to have the Notes purchased; and (vii) that Holders
whose Notes are being purchased only in part will be issued new Notes equal in
principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $1,000 in principal amount or an

                                       52
<PAGE>

integral multiple thereof. The Company shall comply with the requirements of
Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection
with the repurchase of Notes in connection with a Change of Control.

                  (b)    On the Change of Control Payment Date, the Company
shall, to the extent lawful, (i) accept for payment all Notes or portions
thereof properly tendered pursuant to the Change of Control Offer, (ii) deposit
with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions thereof so tendered and (iii) deliver or cause
to be delivered to the Trustee the Notes so accepted together with an Officers'
Certificate stating the aggregate principal amount of Notes or portions thereof
being purchased by the Company. The Paying Agent shall promptly mail to each
Holder of Notes so tendered the Change of Control Payment for such Notes, and
the Trustee shall promptly authenticate and mail (or cause to be transferred by
book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided that each such
new Note shall be in a principal amount of $1,000 or an integral multiple
thereof. Prior to mailing a Change of Control Offer, but in any event within 90
days following a Change of Control, the Company shall either repay all
outstanding Senior Debt or offer to repay all Senior Debt and terminate all
commitments thereunder of each lender who has accepted such offer or obtain the
requisite consents, if any, under all agreements governing outstanding Senior
Debt to permit the repurchase of Notes required by this Section 4.15. The
Company shall publicly announce the results of the Change of Control Offer on or
as soon as practicable after the Change of Control Payment Date.

Section 4.16      No Senior Subordinated Debt.

                  The Company shall not incur, create, issue, assume, guarantee
or otherwise become liable for any Indebtedness that is subordinate or junior in
right of payment to any Senior Debt and senior in any respect in right of
payment to the Notes. No Guarantor shall incur, create, issue, assume, guarantee
or otherwise become liable for any Indebtedness that is subordinate or junior in
right of payment to any Senior Debt of a Guarantor and senior in any respect in
right of payment to any of the Subsidiary Guarantees.

Section 4.17      Payments For Consent.

                  Neither the Company nor any of its Subsidiaries shall,
directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fee or otherwise, to any Holder of any Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of this Indenture or the Notes unless such consideration is offered to be paid
or is paid to all Holders of the Notes that consent, waive or agree to amend in
the time frame set forth in the solicitation documents relating to such consent,
waiver or agreement.

Section 4.18      No Redemption of Existing Senior Subordinated Indebtedness.

                  Notwithstanding anything contained in this Indenture to the
contrary, neither the Company nor any of its Subsidiaries will voluntarily
purchase, redeem, defease or otherwise retire for value any of its existing
senior subordinated Indebtedness (including, without

                                       53
<PAGE>

limitation, the 1997 Notes, the December 1998 Notes, the May 1998 Notes, the
5.25% Convertible Senior Subordinated Notes due 2009 issued by Holdings and the
4.00% Senior Subordinated Convertible Contingent Debt Securities due 2011 issued
by Holdings), prior to such Indebtedness' stated maturity, until the Notes and
all related Obligations have been paid in full in cash; provided that the
Company and its Subsidiaries may purchase, redeem, defease or otherwise retire
for value with Equity Interests of Holdings, the Company or any of the
Guarantors, other than Disqualified Stock, any of the outstanding 5.25%
Convertible Senior Subordinated Notes due 2009 issued by Holdings or the 4.00%
Senior Subordinated Convertible Contingent Debt Securities due 2011 issued by
Holdings. In the event that the Company is required to purchase, redeem, defease
or otherwise retire for value any of its existing senior subordinated
Indebtedness (including, without limitation, the 1997 Notes, the December 1998
Notes, the May 1998 Notes, the 5.25% Convertible Senior Subordinated Notes due
2009 issued by Holdings and the 4.00% Senior Subordinated Convertible Contingent
Debt Securities due 2011 issued by Holdings), it will repay in full, in cash,
all Obligations with respect to the Notes at least two Business Days prior to
such purchase, redemption, defeasance or retirement

                                   ARTICLE 5.
                                   SUCCESSORS

Section 5.01      Merger, Consolidation, Or Sale Of Assets.

                  The Company may not consolidate or merge with or into (whether
or not the Company is the surviving corporation), or sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of its properties
or assets in one or more related transactions, to another corporation, Person or
entity unless (i) the Company is the surviving corporation or the entity or the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, assignment, transfer, lease, conveyance or
other disposition shall have been made is a corporation organized or existing
under the laws of the United States, any state thereof or the District of
Columbia; (ii) the entity or Person formed by or surviving any such
consolidation or merger (if other than the Company) or the entity or Person to
which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made assumes all the obligations of the Company under the
Registration Rights Agreement, the Notes and this Indenture pursuant to a
supplemental indenture in a form reasonably satisfactory to the Trustee; (iii)
immediately after such transaction no Default or Event of Default exists; and
(iv) except in the case of a merger of the Company with or into a Wholly Owned
Restricted Subsidiary of the Company, the Company or the entity or Person formed
by or surviving any such consolidation or merger (if other than the Company), or
to which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made, after giving pro forma effect to such transaction as if
such transaction had occurred at the beginning of the most recently ended four
full fiscal quarters for which internal financial statements are available
immediately preceding such transaction either (A) would be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in the first paragraph of Section 4.09 or (B) would have a
pro forma Fixed Charge Coverage Ratio that is greater than the actual Fixed
Charge Coverage Ratio for the same four-quarter period without giving pro forma
effect to such transaction.

                                       54
<PAGE>

                  Notwithstanding clause (iv) in the immediately foregoing
paragraph, (i) any Restricted Subsidiary may consolidate with, merge into or
transfer all or part of its properties and assets to the Company and (ii) the
Company may merge with an Affiliate that has no significant assets or
liabilities and was incorporated solely for the purpose of reincorporating the
Company in another State of the United States so long as the amount of
Indebtedness of the Company and its Restricted Subsidiaries is not increased
thereby.

Section 5.02      Successor Corporation Substituted.

                  Upon any consolidation or merger, or any sale, assignment,
transfer, lease, conveyance or other disposition of all or substantially all of
the assets of the Company in accordance with Section 5.01 hereof, the successor
corporation formed by such consolidation or into or with which the Company is
merged or to which such sale, assignment, transfer, lease, conveyance or other
disposition is made shall succeed to, and be substituted for (so that from and
after the date of such consolidation, merger, sale, lease, conveyance or other
disposition, the provisions of this Indenture referring to the "Company" shall
refer instead to the successor corporation and not to the Company), and may
exercise every right and power of the Company under this Indenture with the same
effect as if such successor Person had been named as the Company herein;
provided, however, that the predecessor Company shall not be relieved from the
obligation to pay the principal of and interest on the Notes except in the case
of a sale of all of the Company's assets that meets the requirements of Section
5.01 hereof.

                                   ARTICLE 6.
                              DEFAULTS AND REMEDIES

Section 6.01      Events of Default.

                  An "Event of Default" occurs if:

                  (a)    the Company defaults in the payment when due of
interest on, or Additional Amounts, if any, with respect to, the Notes and such
default continues for a period of 30 days (whether or not prohibited by the
subordination provisions of this Indenture);

                  (b)    the Company defaults in the payment when due of the
principal of or premium, if any, on the Notes (whether or not prohibited by the
subordination provisions of this Indenture);

                  (c)    the Company fails to comply with any of the provisions
of Section 4.10, 4.15, or 5.01 hereof;

                  (d)    the Company fails to observe or perform any other
covenant, representation, warranty or other agreement in this Indenture or the
Notes for 60 days after notice to the Company by the Trustee or the Holders of
at least 25% in aggregate principal amount of the Notes then outstanding;

                  (e)    a default occurs under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its
Restricted Subsidiaries (or the payment of which is

                                       55
<PAGE>

guaranteed by the Company or any of its Restricted Subsidiaries), whether such
Indebtedness or guarantee now exists, or is created after the date of this
Indenture, which default results in the acceleration of such Indebtedness prior
to its express maturity and, in each case, the principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness,
the maturity of which has been so accelerated, aggregates $10.0 million or more;

                  (f)    the Company or any of its Restricted Subsidiaries is
subject to a final judgments aggregating in excess of $10.0 million, which
judgments are not paid, discharged or stayed for a period of 60 days;

                  (g)    the Company or any of its Significant Subsidiaries or
any group of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary pursuant to or within the meaning of Bankruptcy Law:

                  (i)    commences a voluntary case,

                  (ii)   consents to the entry of an order for relief against it
          in an involuntary case,

                  (iii)  consents to the appointment of a custodian of it or for
          all or substantially all of its property,

                  (iv)   makes a general assignment for the benefit of its
          creditors, or

                  (v)    generally is not paying its debts as they become due;

                  (h)    a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that:

                  (i)    is for relief against the Company or any of its
          Significant Subsidiaries or any group of Subsidiaries that, taken as a
          whole, would constitute a Significant Subsidiary in an involuntary
          case;

                  (ii)   appoints a custodian of the Company or any of its
          Significant Subsidiaries or any group of Subsidiaries that, taken as a
          whole, would constitute a Significant Subsidiary or for all or
          substantially all of the property of the Company or any of its
          Significant Subsidiaries or any group of Subsidiaries that, taken as a
          whole, would constitute a Significant Subsidiary; or

                  (iii)  orders the liquidation of the Company or any of its
          Significant Subsidiaries or any group of Subsidiaries that, taken as a
          whole, would constitute a Significant Subsidiary;

          and the order or decree remains unstayed and in effect for 60
          consecutive days; or

                  (i)    except as permitted herein, any Subsidiary Guarantee
          shall be held in any judicial proceeding to be unenforceable or
          invalid.

                                       56
<PAGE>

                  The Holders of a majority in aggregate principal amount of the
Notes then outstanding by notice to the Trustee may on behalf of the Holders of
all of the Notes waive any existing Default or Event of Default and its
consequences under the Indenture except a continuing Default or Event of Default
in the payment of interest on, or the principal of, the Notes.

Section 6.02      Acceleration.

                  If any Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the then outstanding Notes
may declare all the Notes to be due and payable immediately; provided, however,
that so long as any Designated Senior Debt is outstanding, such declaration
shall not become effective until the earlier of (i) the day which is five
Business Days after receipt by the Representatives of Designated Senior Debt of
such notice of acceleration or (ii) the date of acceleration of any Designated
Senior Debt. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, with respect to the
Company or any Significant Subsidiary or any group of Subsidiaries that, taken
as a whole, would constitute a Significant Subsidiary, all outstanding Notes
will become due and payable without further action or notice. Holders of the
Notes may not enforce this Indenture or the Notes except as provided in this
Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders of the Notes notice of
any continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest.

Section 6.03      Other Remedies.

                  If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal, premium, if
any, and interest on the Notes or to enforce the performance of any provision of
the Notes or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Notes or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Holder of a Note in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. All remedies
are cumulative to the extent permitted by law.

Section 6.04      Waiver of Past Defaults.

                  Holders of not less than a majority in aggregate principal
amount of the then outstanding Notes by notice to the Trustee may on behalf of
the Holders of all of the Notes waive an existing Default or Event of Default
and its consequences hereunder, except a continuing Default or Event of Default
in the payment of the principal of, premium and Additional Amounts, if any, or
interest on, the Notes (including in connection with an offer to purchase)
(provided, however, that the Holders of a majority in aggregate principal amount
at maturity of the then outstanding Notes may rescind an acceleration and its
consequences, including any related payment default that resulted from such
acceleration). Upon any such waiver, such

                                       57
<PAGE>

Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

Section 6.05      Control By Majority.

                  Holders of a majority in principal amount of the then
outstanding Notes may direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee or exercising any
trust or power conferred on it. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture that the Trustee determines
may be unduly prejudicial to the rights of other Holders of Notes or that may
involve the Trustee in personal liability.

Section 6.06      Limitation On Suits.

                  A Holder of a Note may pursue a remedy with respect to this
Indenture or the Notes only if:

                  (a)    the Holder of a Note gives to the Trustee written
notice of a continuing Event of Default;

                  (b)    the Holders of at least 25% in principal amount of the
then outstanding Notes make a written request to the Trustee to pursue the
remedy;

                  (c)    such Holder of a Note or Holders of Notes offer and, if
requested, provide to the Trustee indemnity satisfactory to the Trustee against
any loss, liability or expense;

                  (d)    the Trustee does not comply with the request within 60
days after receipt of the request and the offer and, if requested, the provision
of indemnity; and

                  (e)    during such 60-day period the Holders of a majority in
principal amount of the then outstanding Notes do not give the Trustee a
direction inconsistent with the request.

A Holder of a Note may not use this Indenture to prejudice the rights of another
Holder of a Note or to obtain a preference or priority over another Holder of a
Note.

Section 6.07      Rights of Holders of Notes to Receive Payment.

                  Notwithstanding any other provision of this Indenture, the
right of any Holder of a Note to receive payment of principal, premium and
Additional Amounts, if any, and interest on the Note, on or after the respective
due dates expressed in the Note (including in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

Section 6.08      Collection Suit by Trustee.

                  If an Event of Default specified in Section 6.01(a) or (b)
occurs and is continuing, the Trustee is authorized to recover judgment in its
own name and as trustee of an express trust

                                       58
<PAGE>

against the Company for the whole amount of principal of, premium and Additional
Amounts, if any, and interest remaining unpaid on the Notes and interest on
overdue principal and, to the extent lawful, interest and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

Section 6.09      Trustee May File Proofs Of Claim.

                  The Trustee is authorized to file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel) and
the Holders of the Notes allowed in any judicial proceedings relative to the
Company (or any other obligor upon the Notes), its creditors or its property and
shall be entitled and empowered to collect, receive and distribute any money or
other property payable or deliverable on any such claims and any custodian in
any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07 hereof. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 hereof out
of the estate in any such proceeding, shall be denied for any reason, payment of
the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the
Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

Section 6.10      Priorities.

                  If the Trustee collects any money pursuant to this Article, it
shall pay out the money in the following order:

                  First:  to the Trustee, its agents and attorneys for amounts
due under Section 7.07 hereof, including payment of all compensation, expense
and liabilities incurred, and all advances made, by the Trustee and the costs
and expenses of collection;

                  Second: to Holders of Notes for amounts due and unpaid on the
Notes for principal, premium and Additional Amounts, if any, and interest,
ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes for principal, premium and Additional Amounts, if
any and interest, respectively; and

                  Third:  to the Company or to such party as a court of
competent jurisdiction shall direct.

                                       59
<PAGE>

                  The Trustee may fix a record date and payment date for any
payment to Holders of Notes pursuant to this Section 6.10.

Section 6.11      Undertaking for Costs.

                  In any suit for the enforcement of any right or remedy under
this Indenture or in any suit against the Trustee for any action taken or
omitted by it as a Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a
Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more
than 10% in principal amount of the then outstanding Notes.

                                   ARTICLE 7.
                                     TRUSTEE

Section 7.01      Duties Of Trustee.

                  (a)    If an Event of Default has occurred and is continuing,
the Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in its exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person's affairs.

                  (b)    Except during the continuance of an Event of Default:

                  (i)    the duties of the Trustee shall be determined solely by
          the express provisions of this Indenture and the Trustee need perform
          only those duties that are specifically set forth in this Indenture
          and no others, and no implied covenants or obligations shall be read
          into this Indenture against the Trustee; and

                  (ii)   in the absence of bad faith or negligence on its part,
          the Trustee may conclusively rely, as to the truth of the statements
          and the correctness of the opinions expressed therein, upon
          certificates or opinions furnished to the Trustee and conforming to
          the requirements of this Indenture. However, the Trustee shall examine
          the certificates and opinions to determine whether or not they conform
          to the requirements of this Indenture (but need not confirm or
          investigate the accuracy of mathematical calculations or other facts
          stated therein).

                  (c)    The Trustee may not be relieved from liabilities for
its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                  (i)    this paragraph does not limit the effect of paragraph
          (b) of this Section;

                  (ii)   the Trustee shall not be liable for any error of
          judgment made in good faith by a Responsible Officer, unless it is
          proved that the Trustee was negligent in ascertaining the pertinent
          facts; and

                                       60
<PAGE>

                  (iii)  the Trustee shall not be liable with respect to any
          action it takes or omits to take in good faith in accordance with a
          direction received by it pursuant to Section 6.05 hereof.

                  (d)    Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b), and (c) of this Section.

                  (e)    No provision of this Indenture shall require the
Trustee to expend or risk its own funds or incur any liability. The Trustee
shall be under no obligation to exercise any of its rights and powers under this
Indenture at the request of any Holders, unless such Holder shall have offered
to the Trustee security and indemnity satisfactory to it against any loss,
liability or expense.

                  (f)    The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree in writing with the
Company. Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law.

Section 7.02      Rights Of Trustee.

                  (a)    The Trustee may conclusively rely upon any document
believed by it to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in such
document.

                  (b)    Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel or both. The Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on such Officers' Certificate or Opinion of Counsel. The Trustee may
consult with counsel and the written advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection from liability
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

                  (c)    The Trustee may act through its attorneys and agents
and shall not be responsible for the misconduct or negligence of any agent
appointed with due care.

                  (d)    The Trustee shall not be liable for any action it takes
or omits to take in good faith that it believes to be authorized or within the
rights or powers conferred upon it by this Indenture.

                  (e)    Unless otherwise specifically provided in this
Indenture, any demand, request, direction or notice from the Company shall be
sufficient if signed by an Officer of the Company.

                  (f)    The Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders unless such Holders shall have offered to the
Trustee reasonable security or indemnity against the costs, expenses and
liabilities that might be incurred by it in compliance with such request or
direction.

                                       61
<PAGE>

                  (g)    The Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any misconduct
or negligence on the part of any agent or attorney appointed with due care by it
hereunder.

                  (h)    The Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is in fact
such a default is received by the Trustee at the Corporate Trust Office of the
Trustee, and such notice references the Notes and this Indenture.

                  (i)    Money held by the Trustee in trust hereunder need not
be segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed in writing with the Company.

Section 7.03      Individual Rights of Trustee.

                  The Trustee in its individual or any other capacity may become
the owner or pledgee of Notes and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

Section 7.04      Trustee's Disclaimers.

                  The Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Indenture or the Notes, it
shall not be accountable for the Company's use of the proceeds from the Notes or
any money paid to the Company or upon the Company's direction under any
provision of this Indenture, it shall not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee,
and it shall not be responsible for any statement or recital herein or any
statement in the Notes or any other document in connection with the sale of the
Notes or pursuant to this Indenture other than its certificate of
authentication.

Section 7.05      Notice of Defaults.

                  If a Default or Event of Default occurs and is continuing and
if it is known to the Trustee, the Trustee shall mail to Holders of Notes a
notice of the Default or Event of Default within 90 days after it occurs. Except
in the case of a Default or Event of Default in payment of principal of,
premium, if any, or interest on any Note, the Trustee may withhold the notice if
and so long as a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of the Holders of the Notes.

Section 7.06      Reports by Trustee to Holders of the Notes.

                  Within 60 days after each May 15 beginning with the May 15
following the date of this Indenture, and for so long as Notes remain
outstanding, the Trustee shall mail to the

                                       62
<PAGE>

Holders of the Notes a brief report dated as of such reporting date that
complies with TIA ss. 313(a) (but if no event described in TIA ss. 313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted). The Trustee also shall comply with TIA ss. 313(b)(2). The
Trustee shall also transmit by mail all reports as required by TIA ss. 313(c).

                  A copy of each report at the time of its mailing to the
Holders of Notes shall be mailed to the Company and filed with the SEC and each
stock exchange on which the Notes are listed in accordance with TIA ss. 313(d).
The Company shall promptly notify the Trustee when the Notes are listed on any
stock exchange.

Section 7.07      Compensation and Indemnity.

                  The Company shall pay to the Trustee from time to time such
compensation as the Company and the Trustee shall from time to time agree in
writing for its acceptance of this Indenture and services hereunder. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee promptly
upon request for all reasonable disbursements, advances and expenses incurred or
made by it in addition to the compensation for its services. Such expenses shall
include the reasonable compensation, disbursements and expenses of the Trustee's
agents and counsel.

                  The Company shall indemnify the Trustee or any predecessor
Trustee against any and all losses, liabilities or expenses incurred by it
arising out of or in connection with the acceptance or administration of its
duties under this Indenture, including the costs and expenses of enforcing this
Indenture against the Company (including this Section 7.07) and defending itself
against any claim (whether asserted by the Company or any Holder or any other
person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability or
expense may be attributable to its negligence or bad faith. The Trustee shall
notify the Company promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so notify the Company shall not relieve the Company of
its obligations hereunder. The Company shall defend the claim and the Trustee
shall cooperate in the defense. The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company
need not pay for any settlement made without its consent, which consent shall
not be unreasonably withheld.

                  The obligations of the Company under this Section 7.07 shall
survive the satisfaction and discharge of this Indenture.

                  When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(g) or (h) hereof occurs, the expenses
and the compensation for the services (including the fees and expenses of its
agents and counsel) are intended to constitute expenses of administration under
any Bankruptcy Law.

                  The Trustee shall comply with the provisions of TIA ss.
313(b)(2) to the extent applicable.

                                       63
<PAGE>

Section 7.08      Replacement of Trustee.

                  A resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section.

                  The Trustee may resign in writing at any time and be
discharged from the trust hereby created by so notifying the Company. The
Holders of Notes of a majority in principal amount of the then outstanding Notes
may remove the Trustee by so notifying the Trustee and the Company in writing.
The Company may remove the Trustee if:

                  (a)    the Trustee fails to comply with Section 7.10 hereof;

                  (b)    the Trustee is adjudged a bankrupt or an insolvent or
an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

                  (c)    a Custodian or public officer takes charge of the
Trustee or its property; or

                  (d)    the Trustee becomes incapable of acting.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the then outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

                  If a successor Trustee does not take office within 30 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company, or the Holders of Notes of at least 10% in principal amount of the then
outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

                  If the Trustee, after written request by any Holder of a Note
who has been a Holder of a Note for at least six months, fails to comply with
Section 7.10, such Holder of a Note may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders of the Notes. The retiring Trustee shall promptly transfer
all property held by it as Trustee to the successor Trustee, provided all sums
owing to the Trustee hereunder have been paid and subject to the Lien provided
for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant
to this Section 7.08, the Company's obligations under Section 7.07 hereof shall
continue for the benefit of the retiring Trustee.

                                       64
<PAGE>

Section 7.09      Successor Trustee by Merger, Etc.

                  If the Trustee consolidates, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee.

Section 7.10      Eligibility; Disqualification.

                  There shall at all times be a Trustee hereunder that is a
corporation organized and doing business under the laws of the United States of
America or of any state thereof that is authorized under such laws to exercise
corporate trustee power, that is subject to supervision or examination by
federal or state authorities and that has a combined capital and surplus of at
least $50 million as set forth in its most recent published annual report of
condition.

                  This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1), (2) and (5). The Trustee is subject to TIA
ss. 310(b).

Section 7.11      Preferential Collection of Claims Against Company.

                  The Trustee is subject to TIA ss. 311(a), excluding any
creditor relationship listed in TIA ss. 311(b). A Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

                                   ARTICLE 8.
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01      Option to Effect Legal Defeasance or Covenant Defeasance.

                  The Company may, at the option of its Board of Directors
evidenced by a resolution set forth in an Officers' Certificate, at any time,
elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding
Notes upon compliance with the conditions set forth below in this Article 8.

Section 8.02      Legal Defeasance and Discharge.

                  Upon the Company's exercise under Section 8.01 hereof of the
option applicable to this Section 8.02, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to
have been discharged from its obligations with respect to all outstanding Notes
on the date the conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, Legal Defeasance means that the Company shall be
deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which shall thereafter be deemed to be "outstanding" only for
the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive
until otherwise terminated or discharged hereunder: (a) the rights of Holders of
outstanding Notes to receive solely from the trust fund described in Section
8.04 hereof, and as more fully set forth in such Section, payments in respect of
the

                                       65
<PAGE>

principal of, premium, if any, and interest on such Notes when such payments
are due, (b) the Company's obligations with respect to such Notes under Sections
2.06, 2.07, 2.10 and 4.02 hereof, (c) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and the Company's obligations in connection
therewith and (d) this Article 8. Subject to compliance with this Article 8, the
Company may exercise its option under this Section 8.02 notwithstanding the
prior exercise of its option under Section 8.03 hereof.

Section 8.03      Covenant defeasance.

                  Upon the Company's exercise under Section 8.01 hereof of the
option applicable to this Section 8.03, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be released
from its obligations under Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12,
4.13, 4.15 and 4.16 and Article 5 hereof with respect to the outstanding Notes
on and after the date the conditions set forth below are satisfied (hereinafter,
"Covenant Defeasance"), and the Notes shall thereafter be deemed not
"outstanding" for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed "outstanding" for all other purposes
hereunder (it being understood that such Notes shall not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes, the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under
Section 6.01 hereof, but, except as specified above, the remainder of this
Indenture and such Notes shall be unaffected thereby. In addition, upon the
Company's exercise under Section 8.01 hereof of the option applicable to this
Section 8.03 hereof, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, Sections 6.01(d) through 6.01(f) hereof shall not
constitute Events of Default.

Section 8.04      Conditions to Legal or Covenant Defeasance.

                  The following shall be the conditions to the application of
either Section 8.02 or 8.03 hereof to the outstanding Notes:

                  In order to exercise either Legal Defeasance or Covenant
Defeasance:

                  (a)    the Company must irrevocably deposit with the Trustee,
in trust, for the benefit of the Holders, cash in United States dollars,
non-callable Government Securities, or a combination thereof, in such amounts as
will be sufficient, in the opinion of a nationally recognized firm of
independent public accountants, to pay the principal of, premium and Additional
Amounts, if any, and interest on the outstanding Notes on the stated date for
payment thereof or on the applicable redemption date, as the case may be;

                  (b)    in the case of an election under Section 8.02 hereof,
the Company shall have delivered to the Trustee an Opinion of Counsel in the
United States reasonably acceptable to the Trustee confirming that (A) the
Company has received from, or there has been published

                                       66
<PAGE>

by, the Internal Revenue Service a ruling or (B) since the date of this
Indenture, there has been a change in the applicable federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

                  (c)    in the case of an election under Section 8.03 hereof,
the Company shall have delivered to the Trustee an Opinion of Counsel in the
United States reasonably acceptable to the Trustee confirming that the Holders
of the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

                  (d)    no Default or Event of Default shall have occurred and
be continuing on the date of such deposit (other than a Default or Event of
Default resulting from the incurrence of Indebtedness all or a portion of the
proceeds of which will be used to defease the Notes pursuant to this Article 8
concurrently with such incurrence) or insofar as Sections 6.01(g) or 6.01(h)
hereof is concerned, at any time in the period ending on the 91st day after the
date of deposit;

                  (e)    such Legal Defeasance or Covenant Defeasance shall not
result in a breach or violation of, or constitute a default under, any material
agreement or instrument (other than this Indenture) to which the Company or any
of its Restricted Subsidiaries is a party or by which the Company or any of its
Restricted Subsidiaries is bound;

                  (f)    the Company shall have delivered to the Trustee an
opinion of counsel to the effect that on the 91st day following the deposit, the
trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors' rights
generally;

                  (g)    the Company shall have delivered to the Trustee an
Officers' Certificate stating that the deposit was not made by the Company with
the intent of preferring the Holders over any other creditors of the Company or
with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company; and

                  (h)    the Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for or relating to the Legal Defeasance or the
Covenant Defeasance have been complied with.

Section 8.05      Deposited Money and Government Securities to be held in Trust;
                  Other Miscellaneous Provisions.

                  Subject to Section 8.06 hereof, all money and non-callable
Government Securities (including the proceeds thereof) deposited with the
Trustee (or other qualifying trustee, collectively for purposes of this Section
8.05, the "Trustee") pursuant to Section 8.04 hereof in respect of the
outstanding Notes shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
Paying Agent) as the Trustee may

                                       67
<PAGE>

determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.

                  The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the cash or non-callable
Government Securities deposited pursuant to Section 8.04 hereof or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

                  Anything in this Article 8 to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon the
request of the Company any money or non-callable Government Securities held by
it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 8.04(a) hereof), are in excess of the amount thereof
that would then be required to be deposited to effect an equivalent Legal
Defeasance or Covenant Defeasance.

Section 8.06      Repayment to Company.

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of, premium,
if any, or interest on any Note and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter, as a
secured creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in The New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

Section 8.07      Reinstatement.

                  If the Trustee or Paying Agent is unable to apply any United
States dollars or non-callable Government Securities in accordance with Section
8.02 or 8.03 hereof, as the case may be, by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company's obligations under this
Indenture and The Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee
or Paying Agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company
makes any payment of principal of, premium, if any, or interest on any Note
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money held by the Trustee or Paying Agent.

                                       68
<PAGE>

                                   ARTICLE 9.
                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01      Without Consent of Holders of Notes.

                  Notwithstanding Section 9.02 of this Indenture, the Company
and the Trustee may amend or supplement this Indenture or the Notes without the
consent of any Holder of a Note:

                  (a)    to cure any ambiguity, defect or inconsistency;

                  (b)    to provide for uncertificated Notes in addition to or
in place of certificated Notes;

                  (c)    to provide for the assumption of the Company's
obligations to the Holders of the Notes in the case of a merger or consolidation
pursuant to Article 5 hereof;

                  (d)    to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely affect
the legal rights hereunder of any Holder of the Note; or

                  (e)    to comply with requirements of the SEC in order to
effect or maintain the qualification of this Indenture under the TIA.

                  Upon the request of the Company accompanied by a resolution of
its Board of Directors authorizing the execution of any such amended or
supplemental Indenture, and upon receipt by the Trustee of the documents
described in Section 7.02 hereof, the Trustee shall join with the Company in the
execution of any amended or supplemental Indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

Section 9.02      With Consent of Holders of Notes.

                  Except as provided below in this Section 9.02, the Company and
the Trustee may amend or supplement this Indenture (including Section 3.09, 4.10
and 4.15 hereof) and the Notes may be amended or supplemented with the consent
of the Holders of at least a majority in principal amount of the Notes then
outstanding (including consents obtained in connection with a tender offer or
exchange offer for the Notes), and, subject to Sections 6.04 and 6.07 hereof,
any existing Default or Event of Default (other than a Default or Event of
Default in the payment of the principal of, premium, if any, or interest on the
Notes, except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture or the Notes may
be waived with the consent of the Holders of a majority in principal amount of
the then outstanding Notes (including consents obtained in connection with a
tender offer or exchange offer for the Notes).

                                       69
<PAGE>

                  Upon the request of the Company accompanied by a resolution of
its Board of Directors authorizing the execution of any such amended or
supplemental Indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid,
and upon receipt by the Trustee of the documents described in Section 7.02
hereof, the Trustee shall join with the Company in the execution of such amended
or supplemental Indenture unless such amended or supplemental Indenture affects
the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such amended or supplemental Indenture.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to consent to any
indenture supplemental hereto. If a record date is fixed, the Holders on such
record date, or their duly designated proxies, and only such Persons, shall be
entitled to consent to such supplemental indenture, whether or not such Holders
remain Holders after such record date; provided, that unless such consent shall
have become effective by virtue of the requisite percentage having been obtained
prior to the date which is 180 days after such record date, any such consent
previously given shall automatically and without further action by any Holder be
canceled and of no further effect.

                  It shall not be necessary for the consent of the Holders of
Notes under this Section 9.02 to approve the particular form of any proposed
amendment or waiver, but it shall be sufficient if such consent approves the
substance thereof.

                  After an amendment, supplement or waiver under this Section
becomes effective, the Company shall mail to the Holders of Notes affected
thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such amended or
supplemental Indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the
Holders of a majority in aggregate principal amount of the Notes then
outstanding may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Notes. However, without the consent of
each Holder affected, an amendment or waiver may not (with respect to any Notes
held by a non-consenting Holder):

                  (a)    reduce the principal amount of Notes whose Holders must
consent to an amendment, supplement or waiver;

                  (b)    reduce the principal of or change the fixed maturity of
any Note or alter or waive any of the provisions with respect to the redemption
of the Notes except as provided above with respect to Sections 4.10 and 4.15
hereof;

                  (c)    reduce the rate of or change the time for payment of
interest, including default interest, on any Note;

                  (d)    waive a Default or Event of Default in the payment of
principal of or premium, if any, or interest on the Notes (except a rescission
of acceleration of the Notes by the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes and a waiver of the payment
default that resulted from such acceleration);

                                       70
<PAGE>

                  (e)    make any Note payable in money other than that stated
in the Notes;

                  (f)    make any change in the provisions of this Indenture
relating to waivers of past Defaults or the rights of Holders of Notes to
receive payments of principal of or interest on the Notes; or

                  (g)    waive a redemption payment with respect to any Note
(other than a payment required by Sections 3.09, 4.10 and 4.15 hereof).

                  (h)    make any change in Section 6.04 or 6.07 hereof or in
the foregoing amendment and waiver provisions.

Section 9.03      Compliance with Trust Indenture Act.

                  Every amendment or supplement to this Indenture or the Notes
shall be set forth in a amended or supplemental Indenture that complies with the
TIA as then in effect.

Section 9.04      Revocation and Effect of Consents.

                  Until an amendment, supplement or waiver becomes effective, a
consent to it by a Holder of a Note is a continuing consent by the Holder of a
Note and every subsequent Holder of a Note or portion of a Note that evidences
the same debt as the consenting Holder's Note, even if notation of the consent
is not made on any Note. However, any such Holder of a Note or subsequent Holder
of a Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

Section 9.05      Notation on or Exchange of Notes.

                  The Trustee may place an appropriate notation about an
amendment, supplement or waiver on any Note thereafter authenticated. The
Company in exchange for all Notes may issue and the Trustee shall authenticate
new Notes that reflect the amendment, supplement or waiver.

                  Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

Section 9.06      Trustee to Sign Amendments, Etc.

                  The Trustee shall sign any amended or supplemental Indenture
authorized pursuant to this Article 9 if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
The Company may not sign an amendment or supplemental Indenture until the Board
of Directors approves it. In executing any amended or supplemental indenture,
the Trustee shall be entitled to receive and (subject to Section 7.01) shall be
fully protected in relying upon, an Officer's Certificate and an Opinion of
Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture.

                                       71
<PAGE>

                                  ARTICLE 10.
                                  SUBORDINATION

Section 10.01     Agreement to Subordinate.

                  The Company agrees, and each Holder by accepting a Note
agrees, that the Indebtedness evidenced by the Notes is subordinated in right of
payment, to the extent and in the manner provided in this Article 10, to the
prior payment in full in cash of all Senior Debt (whether outstanding on the
date hereof or hereafter created, incurred, assumed or guaranteed), and that the
subordination is for the benefit of the holders of Senior Debt.

Section 10.02     Liquidation; Dissolution; Bankruptcy.

                  Upon any distribution to creditors of the Company in a
liquidation or dissolution of the Company or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Company or its
property, an assignment for the benefit of creditors or any marshalling of the
Company's assets and liabilities, the holders of Senior Debt shall be entitled
to receive payment in full in cash of all Obligations due in respect of such
Senior Debt (including interest after the commencement of any such proceeding at
the rate specified in the applicable Senior Debt, whether or not an allowable
claim in any such proceeding) before the Holders of Notes will be entitled to
receive any payment with respect to the Notes, and until all Obligations with
respect to Senior Debt are paid in full in cash, any distribution to which the
Holders of Notes would be entitled shall be made to the holders of Senior Debt
(except, in each case, that Holders of Notes may receive Permitted Junior
Securities and payments made from the trust described under Article 8).

Section 10.03     Default on Designated Senior Debt.

                  The Company may not make any payment or distribution to the
Trustee or any Holder in respect of Obligations with respect to the Notes and
may not acquire from the Trustee or any Holder any Notes for cash or property
(other than (i) securities that are subordinated to at least the same extent as
the Notes to (a) Senior Debt and (b) any securities issued in exchange for
Senior Debt and (ii) payments and other distributions made from any defeasance
trust created pursuant to Section 8.01 hereof) until all principal and other
Obligations with respect to the Senior Debt have been paid in full if:

                  (i)    a default in the payment of any principal or other
          Obligations with respect to Designated Senior Debt occurs and is
          continuing; or

                  (ii)   a default, other than a payment default, on Designated
          Senior Debt occurs and is continuing that then permits holders of the
          Designated Senior Debt to accelerate its maturity and the Trustee
          receives a notice of the default (a "Payment Blockage Notice") from
          the Company or a Representative with respect to such Designated Senior
          Debt. If the Trustee receives any such Payment Blockage Notice, no
          subsequent Payment Blockage Notice shall be effective for purposes of
          this Section unless and until (i) at least 360 days shall have elapsed
          since the effectiveness of the immediately prior Payment Blockage
          Notice and (ii) all scheduled payments of principal, premium, if any,
          and interest on the Notes that have come due have been paid in full in
          cash. No nonpayment

                                       72
<PAGE>

          default that existed or was continuing on the date of delivery of any
          Payment Blockage Notice to the Trustee shall be, or be made, the basis
          for a subsequent Payment Blockage Notice unless such default shall
          have been waived or cured for a period of not less than 90 days.

                  The Company may and shall resume payments on and distributions
in respect of the Notes and may acquire them upon the earlier of:

                                (1)    the date upon which the default is cured
                  or waived, or

                                (2)    in the case of a default referred to in
                  Section 10.03(ii) hereof, 179 days pass after notice is
                  received if the maturity of such Designated Senior Debt has
                  not been accelerated,

if this Article otherwise permits the payment, distribution or acquisition at
the time of such payment or acquisition.

Section 10.04     Acceleration of Securities.

                  If payment of the Securities is accelerated because of an
Event of Default, the Company shall promptly notify holders of Senior Debt of
the acceleration.

Section 10.05     When Distribution Must Be Paid Over.

                  In the event that the Trustee or any Holder receives any
payment of any Obligations with respect to the Notes at a time when the Trustee
or such Holder, as applicable, has actual knowledge that such payment is
prohibited by Article 10 hereof, such payment shall be held by the Trustee or
such Holder, in trust for the benefit of, and shall be paid forthwith over and
delivered, upon written request, to, the holders of Senior Debt as their
interests may appear or their Representative under the indenture or other
agreement (if any) pursuant to which Senior Debt may have been issued, as their
respective interests may appear, for application to the payment of all
Obligations with respect to Senior Debt remaining unpaid to the extent necessary
to pay such Obligations in full in accordance with their terms, after giving
effect to any concurrent payment or distribution to or for the holders of Senior
Debt.

                  With respect to the holders of Senior Debt, the Trustee
undertakes to perform only such obligations on the part of the Trustee as are
specifically set forth in this Article 10, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt, and shall not be liable to any
such holders if the Trustee shall pay over or distribute to or on behalf of
Holders or the Company or any other Person money or assets to which any holders
of Senior Debt shall be entitled by virtue of this Article 10, except if such
payment is made as a result of the willful misconduct or negligence of the
Trustee.

Section 10.06     Notice by Company

                  The Company shall promptly notify the Trustee and the Paying
Agent of any facts known to the Company that would cause a payment of any
Obligations with respect to the Notes

                                       73
<PAGE>

to violate this Article 10, but failure to give such notice shall not affect the
subordination of the Notes to the Senior Debt as provided in this Article 10.

                  The Trustee shall be entitled to rely on the delivery to it of
a written notice by a person representing himself to be a holder of Senior Debt
(or a trustee or agent on behalf of such holder) to establish that such notice
has been given by a holder of Senior Debt (or a trustee or agent on behalf of
any such holder). In the event that the Trustee determines in good faith that
further evidence is required with respect to the right of any person as holder
of Senior Debt to participate in any payment or distribution pursuant to this
Article 10, the Trustee may request such person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt held by
such person, the extent to which such person is entitled to participate in such
evidence is not furnish, the Trustee may defer any payment which it may be
required to make for the benefit of such person pursuant to the terms of this
Indenture pending judicial determination as to the rights of such person to
receive such payment.

Section 10.07     Subrogation.

                  After all Senior Debt is paid in full in cash and until the
Notes are paid in full, Holders of Notes shall be subrogated (equally and
ratably with all other Indebtedness pari passu with the Notes) to the rights of
holders of Senior Debt to receive distributions applicable to Senior Debt to the
extent that distributions otherwise payable to the Holders of Notes have been
applied to the payment of Senior Debt. A distribution made under this Article 10
to holders of Senior Debt that otherwise would have been made to Holders of
Notes is not, as between the Company and Holders, a payment by the Company on
the Notes.

Section 10.08     Relative Rights.

                  This Article 10 defines the relative rights of Holders of
Notes and holders of Senior Debt. Nothing in this Indenture shall:

                                (1)    impair, as between the Company and
                  Holders of Notes, the obligation of the Company, which is
                  absolute and unconditional, to pay principal of and interest
                  on the Notes in accordance with their terms;

                                (2)    affect the relative rights of Holders of
                  Notes and creditors of the Company other than their rights in
                  relation to holders of Senior Debt; or

                                (3)    prevent the Trustee or any Holder of
                  Notes from exercising its available remedies upon a Default or
                  Event of Default, subject to the rights of holders and owners
                  of Senior Debt to receive distributions and payments otherwise
                  payable to Holders of Notes.

                  If the Company fails because of this Article 10 to pay
principal of or interest on a Note on the due date, the failure is still a
Default or Event of Default.

                                       74
<PAGE>

Section 10.09     Subordination May Not Be Impaired by Company.

                  No right of any holder of Senior Debt to enforce the
subordination of the Indebtedness evidenced by the Notes shall be impaired by
any act or failure to act by the Company or any Holder or by the failure of the
Company or any Holder to comply with this Indenture.

Section 10.10     Distribution or Notice to Representative.

                  Whenever a distribution is to be made or a notice given to
holders of Senior Debt, the distribution may be made and the notice given to
their Representative.

                  Upon any payment or distribution of assets of the Company
referred to in this Article 10, the Trustee and the Holders of Notes shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction or upon any certificate of such Representative or of the
liquidating trustee or agent or other Person making any distribution to the
Trustee or to the Holders of Notes for the purpose of ascertaining the Persons
entitled to participate in such distribution, the holders of the Senior Debt and
other Indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 10.

Section 10.11     Rights of Trustee and Paying Agent.

                  Notwithstanding the provisions of this Article 10 or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts that would prohibit the making of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue
to make payments on the Notes, unless the Trustee shall have received at its
Corporate Trust Office at least three Business Days prior to the date of such
payment written notice of facts that would cause the payment of any Obligations
with respect to the Notes to violate this Article 10. Only the Company or a
Representative may give the notice. Nothing in this Article 10 shall impair the
claims of, or payments to, the Trustee under or pursuant to Section 7.07 hereof.

                  The Trustee in its individual or any other capacity may hold
Senior Debt with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights.

Section 10.12     Authorization to Effect Subordination.

                  Each Holder of Notes, by the Holder's acceptance thereof,
authorizes and directs the Trustee on such Holder's behalf to take such action
as may be necessary or appropriate to effectuate the subordination as provided
in this Article 10, and appoints the Trustee to act as such Holder's
attorney-in-fact for any and all such purposes. If the Trustee does not file a
proper proof of claim or proof of debt in the form required in any proceeding
referred to in Section 6.09 hereof at least 30 days before the expiration of the
time to file such claim, the credit agents are hereby authorized to file an
appropriate claim for and on behalf of the Holders of the Notes.

                                       75
<PAGE>

Section 10.13     Amendments.

                  The provisions of this Article 10 shall not be amended or
modified without the written consent of the holders of at least 75% in aggregate
principal amount of the Notes then outstanding if such amendment would adversely
affect the rights of Holders of Notes.

                                  ARTICLE 11.
                                  MISCELLANEOUS

Section 11.01     Trust Indenture Act Controls.

                  If any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by TIA ss.318(c), the imposed duties shall
control.

Section 11.02     Notices.

                  Any notice or communication by the Company or the Trustee to
the others is duly given if in writing and delivered in Person or mailed by
first class mail (registered or certified, return receipt requested), telecopier
or overnight air courier guaranteeing next day delivery, to the others' address:

                  If to the Company or any Guarantor:

                  L-3 Communications Corporation
                  600 Third Avenue, 34th Floor,
                  New York, New York  10016
                  Attention:  Vice President-Finance (Fax: 212-805-5470)

                  With a copy to:

                  Simpson Thacher & Bartlett
                  425 Lexington Avenue
                  New York, New York  10017
                  Attention:  Vincent Pagano Jr. (Fax: 212-455-2502)

                  If to the Trustee:

                  The Bank of New York
                  101 Barclay Street, Floor 21 West
                  New York, New York  10286
                  Attention:  Corporate Trust Administration (Fax: 212-896-7299)

                  The Company or the Trustee, by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

                  All notices and communications (other than those sent to
Holders) shall be deemed to have been duly given: at the time delivered by hand,
if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when receipt

                                       76
<PAGE>

acknowledged, if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier guaranteeing next day delivery.

                  Any notice or communication to a Holder shall be mailed by
first class mail, certified or registered, return receipt requested, or by
overnight air courier guaranteeing next day delivery to its address shown on the
register kept by the Registrar. Any notice or communication shall also be so
mailed to any Person described in TIA ss. 313(c), to the extent required by the
TIA. Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders.

                  If a notice or communication is mailed in the manner provided
above within the time prescribed, it is duly given, whether or not the addressee
receives it.

                  If the Company mails a notice or communication to Holders, it
shall mail a copy to the Trustee and each Agent at the same time.

Section 11.03    Communications By Holders of Notes with Other Holders of Notes.

                  Holders may communicate pursuant to TIA ss. 312(b) with other
Holders with respect to their rights under this Indenture or the Notes. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA ss. 312(c).

Section 11.04     Certificate and Opinion as to Conditions Precedent.

                  Upon any request or application by the Company to the Trustee
to take any action under this Indenture, the Company shall furnish to the
Trustee:

                  (a)    an Officers' Certificate in form and substance
reasonably satisfactory to the Trustee (which shall include the statements set
forth in Section 11.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been satisfied; and

                  (b)    an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 11.05 hereof) stating that, in the opinion of such counsel, all such
conditions precedent and covenants have been satisfied.

Section 11.05     Statements required in Certificate or Opinion.

                  Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA ss. 314(a)(4)) shall comply with the provisions of TIA
ss. 314(e) and shall include:

                  (a)    a statement that the Person making such certificate or
opinion has read such covenant or condition;

                  (b)    a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

                                       77
<PAGE>

                  (c)    a statement that, in the opinion of such Person, he or
she has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been satisfied; and

                  (d)    a statement as to whether or not, in the opinion of
such Person, such condition or covenant has been satisfied.

Section 11.06     Rule by Trustee and Agents.

                  The Trustee may make reasonable rules for action by or at a
meeting of Holders. The Registrar or Paying Agent may make reasonable rules and
set reasonable requirements for its functions.

Section 11.07     No Personal Liability of Directors, Officers, Employees and
                  Stockholders.

                  No director, officer, employee, incorporator or stockholder of
the Company or any Guarantor, as such, shall have any liability for any
obligations of the Company or any Guarantor under the Notes or the Subsidiary
Guarantees and this Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. Such waiver may not be effective
to waive liabilities under the federal securities laws and it is the view of the
Commission that such a waiver is against public policy.

Section 11.08     Governing Law.

                  THIS INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

Section 11.09     No Adverse Interpretation of other Agreements.

                  This Indenture may not be used to interpret any other
indenture, loan or debt agreement of the Company or its Subsidiaries or of any
other Person. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

Section 11.10     Successors.

                  All agreements of the Company in this Indenture and the Notes
shall bind its successors. All agreements of the Trustee in this Indenture shall
bind its successors.

Section 11.11     Severability.

                  In case any provision in this Indenture or in the Notes shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

                                       78
<PAGE>

Section 11.12     Counterpart Originals.

                  The parties may sign any number of copies of this Indenture.
Each signed copy shall be an original, but all of them together represent the
same agreement.

Section 11.13     Table of Contents, Headings, Etc.

                  The Table of Contents, Cross-Reference Table and Headings of
the Articles and Sections of this Indenture have been inserted for convenience
of reference only, are not to be considered a part of this Indenture and shall
in no way modify or restrict any of the terms or provisions hereof.

Section 11.14     Holders of Notes Prior to their Issuance.

                  The holders of the Bridge Notes will be deemed to be the
Holders of Notes equal in principal amount to such holder's Bridge Notes until
the Notes are issued and released from escrow pursuant to the terms of the
Escrow Agreement.

                         [Signatures on following pages]

                                       79
<PAGE>
                                   SIGNATURES

Dated as of March 8, 2002

                                           L-3 COMMUNICATIONS CORPORATION

                                           By:__________________________________
                                              Name:
                                              Title:

GUARANTORS:

HYGIENETICS ENVIROMENTAL SERVICES, INC.
L-3 COMMUNICATIONS ILEX SYSTEMS, INC.
SOUTHERN CALIFORNIA MICROWAVE, INC.
L-3 COMMUNICATIONS SPD TECHNOLOGIES, INC.
L-3 COMMUNICATIONS ESSCO, INC.
L-3 COMMUNICATIONS STORM CONTROL SYSTEMS, INC.
L-3 COMMUNICATIONS DBS MICROWAVE, INC.
SPD ELECTRICAL SYSTEMS, INC.
SPD SWITCHGEAR , INC.
PAC ORD, INC
HENSCHEL, INC.
SPD HOLDINGS, INC.
POWER PARAGON, INC.
L-3 COMMUNICATIONS AYDIN CORPORATION
MPRI, INC.
ELECTRODYNAMICS, INC.
INTERSTATE ELECTRONICS CORPORATION
MICRODYNE CORPORATION
L-3 COMMUNICATIONS ANALYTICS CORPORATION
L-3 COMMUNICATIONS AIS GP CORPORATION
L-3 COMMUNICATIONS INVESTMENTS INC.
COLEMAN RESEARCH CORPORATION
KDI PRECISION PRODUCTS, INC.
EER SYSTEMS, INC.
         as Guarantors

By: ______________________________________
         Name: Christopher C. Cambria
         Title:   Vice President

                                      S-1
<PAGE>

L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.
         as Guarantor

By:      L-3 COMMUNICATIONS AIS GP CORPORATION,
         as General Partner

         By:  _________________________________
                Name:
                Title:   Authorized Person

                                      S-2
<PAGE>

THE BANK OF NEW YORK,
     as Trustee

By:  ______________________________________
      Name:
      Title:

                                      S-3
<PAGE>

                                    EXHIBIT A
                                 (Face of Note)
================================================================================

                                                          CUSIP/CINS  __________

                       Senior Subordinated Notes due 2009

         No. ___                                                      $_________

                         L-3 COMMUNICATIONS CORPORATION

         promises to pay to __________________________________________

         or registered assigns,

         the principal sum of ________________________________________

         Dollars on May 15, 2009.

         Interest Payment Dates:  May 15 and November 15.

         Record Dates:  May 1 and November 1.
                                             Dated:  March 8, 2002

                                             L-3 Communications Corporation

                                             By:________________________________
                                                  Name:
                                                  Title:

                                             By:________________________________
                                                  Name:
                                                  Title:

This is one of the [Global]
Notes referred to in the                                    (SEAL)
within-mentioned Indenture:

Dated:  March 8, 2003

THE BANK OF NEW YORK,
as Trustee

By:________________________________
   Name:
   Title:
================================================================================

                                      A-1
<PAGE>

                                 (Back of Note)

                       Senior Subordinated Notes due 2009

[THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE,
(III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT
TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO
A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.](1)

[THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISION OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY
MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1) (a) TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (b) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
SECURITIES ACT, (c) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT OR (d)
IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO
REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER
FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN
(A) ABOVE.](2)

----------
(1)  This paragraph should be included only if the Note is issued in global
     form.

(2)  This paragraph should be included only if applicable pursuant to the terms
     of the Indenture.

                                      A-2
<PAGE>

                  Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

                                      A-3
<PAGE>

         1.    INTEREST. L-3 Communications Corporation, a Delaware corporation
(the "Company"), promises to pay interest on the principal amount of this Note
at ___% per annum from March 8, 2003 until maturity and shall pay the Additional
Amounts payable pursuant to Section 3 of the Registration Rights Agreement
referred to below. The Company will pay interest and Additional Amounts, if any,
semi-annually on May 15 and November 15 of each year, or if any such day is not
a Business Day, on the next succeeding Business Day (each an "Interest Payment
Date"), with the same force and effect as if made on the date for such payment.
Interest on the Notes will accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from _______ p.m. March 8, 2003;
provided that if there is no existing Default in the payment of interest, and if
this Note is authenticated between a record date referred to on the face hereof
and the next succeeding Interest Payment Date, interest shall accrue from such
next succeeding Interest Payment Date; provided, further, that the first
Interest Payment Date shall be November 15, 2003. The Company shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at a rate
that is 2% per annum in excess of the rate then in effect; it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest and Additional Amounts (without regard to any
applicable grace periods) from time to time on demand at the same rate to the
extent lawful. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

         2.    METHOD OF PAYMENT. The Company will pay interest on the Notes
(except defaulted interest) and Additional Amounts to the Persons who are
registered Holders of Notes at the close of business on the May 1 or November 1
next (whether or not a Business Day) preceding the Interest Payment Date, even
if such Notes are canceled after such record date and on or before such Interest
Payment Date, except as provided in Section 2.12 of the Indenture with respect
to defaulted interest. The Notes will be payable as to principal, premium and
Additional Amounts, if any, and interest at the office or agency of the Company
maintained for such purpose within The City and State of New York, or, at the
option of the Company, payment of interest and Additional Amounts may be made by
check mailed to the Holders at their addresses set forth in the register of
Holders; provided that payment by wire transfer of immediately available funds
will be required with respect to principal of and interest, premium and
Additional Amounts on, all Global Notes and all other Notes the Holders of which
shall have provided wire transfer instructions to the Company or the Paying
Agent if such Holders shall be registered Holders of at least $250,000 in
principal amount of the Notes. Such payment shall be in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.

         3.    PAYING AGENT AND REGISTRAR. Initially, The Bank of New York, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company
may change any Paying Agent or Registrar without notice to any Holder. The
Company or any of its Subsidiaries may act in any such capacity.

         4.    INDENTURE. The Company issued the Notes under an Indenture dated
as of March 8, 2002 ("Indenture") among the Company, the Guarantors named
therein and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code ss.ss. 77aaa-77bbbb). The Notes
are subject to all such terms, and Holders are referred to the Indenture and

                                      A-4
<PAGE>

such Act for a statement of such terms. To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling. The Notes issuable under the
Indenture are obligations of the Company limited to $500.0 million in aggregate
principal amount, plus amounts, if any, issued to pay Additional Amounts on
outstanding Notes as set forth in Paragraph 2 hereof.

         5.    OPTIONAL REDEMPTION.

               (a)  The Notes shall not be redeemable at the Company's option
                    prior to maturity.

         6.    MANDATORY REDEMPTION.

               Except as set forth in paragraph 7 below, the Company shall
not be required to make mandatory redemption payments with respect to the Notes.

         7.    REPURCHASE AT OPTION OF HOLDER.

               (a) If there is a Change of Control, the Company shall be
required to make an offer (a "Change of Control Offer") to repurchase all or any
part (equal to $1,000 or an integral multiple thereof) of each Holder's Notes at
a purchase price equal to 101% of aggregate principal amount thereof plus
accrued and unpaid interest, if any, to the date of purchase (in either case,
the "Change of Control Payment"). Within 10 days following any Change of
Control, the Company shall mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

               (b) If the Company or a Subsidiary consummates any Asset Sales,
within five Business Days of each date on which the aggregate amount of Excess
Proceeds exceeds $10.0 million, the Company shall commence an offer to all
holders of 1997 Notes (an "Asset Sale Offer") pursuant to Section 3.09 of the
Indenture to purchase the maximum principal amount of 1997 Notes that may be
purchased out of the Excess Proceeds, at an offer price in cash in an amount
equal to 100% of the principal amount thereof plus accrued and unpaid interest
to the date of purchase, in accordance with the procedures set forth in the 1997
Indenture. To the extent that the aggregate amount of 1997 Notes tendered
pursuant to an Asset Sale Offer is less than the remaining Excess Proceeds
("Remaining Excess Proceeds") and the sum of (A) such amount of Remaining Excess
Proceeds and (B) the Remaining Excess Proceeds from any subsequent Asset Sale
Offers exceeds $3.0 million, the Company will be required to make an offer to
all Holders of Notes and any other Indebtedness that ranks pari passu with the
Notes (including the May 1998 Notes and the December 1998 Notes) that, by its
terms, requires the Company to offer to repurchase such Indebtedness with such
Remaining Excess Proceeds (a "Secondary Asset Sale Offer") to purchase the
maximum principal amount of Notes and pari passu Indebtedness that may be
purchased out of such Remaining Excess Proceeds, at an offer price in cash in an
amount equal to 100% of the principal amount thereof plus accrued and unpaid
interest thereon, if any, to the date of purchase, in accordance with the
procedures set forth in the Indenture. To the extent that the aggregate amount
of Notes or pari passu Indebtedness tendered pursuant to a Secondary Asset Sale
Offer is less than the Remaining Excess Proceeds, the Company may use any
Remaining Excess Proceeds for general corporate purposes. If the aggregate
principal amount of Notes or pari passu Indebtedness surrendered by Holders
thereof exceeds the amount of

                                      A-5
<PAGE>

Remaining Excess Proceeds in a Secondary Asset Sale Offer, the Company shall
repurchase such Indebtedness on a pro rata basis and the Trustee shall select
the Notes to be purchased on a pro rata basis. Holders of Notes that are the
subject of an offer to purchase will receive an Asset Sale Offer from the
Company prior to any related purchase date and may elect to have such Notes
purchased by completing the form entitled "Option of Holder to Elect Purchase"
on the reverse of the Notes.

         8. NOTICE OF REDEMPTION. Notice of redemption will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof
called for redemption.

         9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, it need not
exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and
the corresponding Interest Payment Date.

         10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be
treated as its owner for all purposes.

         11. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
the Indenture or the Notes may be amended or supplemented with the consent of
the Holders of at least a majority in principal amount of the then outstanding
Notes, and any existing default or compliance with any provision of the
Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes. Without the consent
of any Holder of a Note, the Indenture or the Notes may be amended or
supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company's obligations to Holders of the Notes
in case of a merger or consolidation, to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Indenture of any such Holder, or to
comply with the requirements of the Commission in order to effect or maintain
the qualification of the Indenture under the Trust Indenture Act.

         12. DEFAULTS AND REMEDIES. An "Event of Default" occurs if: (i) default
for 30 days in the payment when due of interest on, or Additional Amounts with
respect to, the Notes (whether or not prohibited by the subordination provisions
of the Indenture); (ii) default in payment when due of the principal of or
premium, if any, on the Notes (whether or not prohibited by the subordination
provisions of the Indenture); (iii) failure by the Company to

                                      A-6
<PAGE>

comply with the covenants contained in sections 4.10, 4.15 or 5.10 of the
Indenture; (iv) failure by the Company for 60 days after notice to comply with
any of its other agreements in the Indenture or the Notes; (v) default under any
mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is
guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the date of the
Indenture, which default results in the acceleration of such Indebtedness prior
to its express maturity and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness
the maturity of which has been so accelerated, aggregates $10.0 million or more;
(vi) failure by the Company or any of its Restricted Subsidiaries to pay final
judgments aggregating in excess of $10.0 million, which judgments are not paid,
discharged or stayed for a period of 60 days; (vii) certain events of bankruptcy
or insolvency with respect to the Company or any of its Significant Subsidiaries
or any group of Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary; and (viii) except as permitted by the Indenture, any
Subsidiary Guarantee shall be held in any judicial proceeding to be
unenforceable or invalid.

         If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately; provided, however, that
so long as any Designated Senior Debt is outstanding, such declaration shall not
become effective until the earlier of (i) the day which is five Business Days
after receipt by the Representatives of Designated Senior Debt of such notice of
acceleration or (ii) the date of acceleration of any Designated Senior Debt.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency, with respect to the Company or any
Significant Subsidiary or any group of Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary, all outstanding Notes will become due
and payable without further action or notice. Holders of the Notes may not
enforce the Indenture or the Notes except as provided in the Indenture. Subject
to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default (except a Default or Event of Default relating to
the payment of principal or interest) if it determines that withholding notice
is in their interest.

         The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of the Holders of all of
the Notes waive any existing Default or Event of Default and its consequences
under the Indenture except a continuing Default or Event of Default in the
payment of interest on, or the principal of, the Notes.

         13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or
any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

         14. NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder, of the Company or any Guarantor, as such, shall not
have any liability for any obligations of the Company or any Guarantor under the
Notes, or the Indenture or the Subsidiary

                                      A-7
<PAGE>

Guarantees or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

         15. AUTHENTICATION. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

         16. ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

         17. ADDITIONAL RIGHTS OF HOLDERS OF TRANSFER RESTRICTED SECURITIES. In
addition to the rights provided to Holders of Notes under the Indenture, Holders
of Transferred Restricted Securities shall have all the rights set forth in the
Registration Rights Agreement dated as of March 8, 2002, between the Company and
the parties named on the signature pages thereof (the "Registration Rights
Agreement").

         18. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

         19. GOVERNING LAW. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

                  L-3 Communications Corporation
                  600 Third Avenue, 34th Floor,
                  New York, New York  10016
                  Attention: Vice President-Finance (Fax: 212-805-5470)

                                      A-8
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below: (I) or (we) assign and
transfer this Note to

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ________________________________________________________
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

--------------------------------------------------------------------------------

Date:
     ---------------------------

                                    Your Signature:
                                                   -----------------------------
                                    (Sign exactly as your name appears on the
                                    face of this Note)

Signature Guarantee.

                                      A-9
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Company
pursuant to Section 4.10 or 4.15 of the Indenture, check the box below:

         [ ] Section 4.10                [ ] Section 4.15

         If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the
amount you elect to have purchased: $______________

Date:                                  Your Signature:
       -----------------------------                  --------------------------
                                       (Sign exactly as your name appears on the
                                       Note)

                                       Tax Identification No.:
                                                              ------------------

Signature Guarantee.

                                      A-10
<PAGE>

            SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE(3)

         The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:

<TABLE>
<CAPTION>
                                                                          Principal Amount of
                                                                           this Global Note         Signature of
                           Amount of decrease    Amount of increase in      following such       authorized officer
                           in Principal Amount    Principal Amount of          decrease          of Trustee or Note
    Date of Exchange       of this Global Note      this Global Note         (or increase)            Custodian
    ----------------       -------------------      ----------------         -------------            ---------
    <S>                    <C>                    <C>                     <C>                     <C>

</TABLE>

----------

(3) This should be included only if the Note is issued in global form.

                                      A-11
<PAGE>

                                    EXHIBIT B
                         FORM OF CERTIFICATE OF TRANSFER

L-3 Communications Corporation
600 Third Avenue, 34th Floor,
New York, New York  10016

[Registrar address block]

         Re:  Senior Subordinated Notes due 2009.
              ----------------------------------

         Reference is hereby made to the Indenture, dated as of March 8, 2002
(the "Indenture"), among L-3 Communications Corporation, as issuer (the
"Company"), the Guarantors named therein and The Bank of New York, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

         ________________, (the "Transferor") owns and proposes to transfer the
Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of $___________ in such Note[s] or interests (the "Transfer"),
to ___________ (the "Transferee"), as further specified in Annex A hereto. In
connection with the Transfer, the Transferor hereby certifies that:

                             [CHECK ALL THAT APPLY]

1. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF BOOK-ENTRY INTERESTS IN THE
144A GLOBAL NOTE OR DEFINITIVE NOTES PURSUANT TO RULE 144A. The Transfer is
being effected pursuant to and in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the "Securities Act"), and,
accordingly, the Transferor hereby further certifies that the Book-Entry
Interests or Definitive Notes are being transferred to a Person that the
Transferor reasonably believes is purchasing the Book-Entry Interests or
Definitive Notes for its own account, or for one or more accounts with respect
to which such Person exercises sole investment discretion, and such Person and
each such account is a "qualified institutional buyer" within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and such
Transfer is in compliance with any applicable blue sky securities laws of any
state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred Book-Entry Interest
or Definitive Note will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the 144A Global Note and/or the
Definitive Note and in the Indenture and the Securities Act.

2. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF BOOK-ENTRY INTERESTS IN THE
TEMPORARY REGULATION S GLOBAL NOTE, THE REGULATION S GLOBAL NOTE OR DEFINITIVE
NOTES PURSUANT TO REGULATION S. The Transfer is being effected pursuant to and
in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor hereby further certifies that (i) the Transfer is
not being made to a person in the United States and (x) at the time the buy
order was originated, the Transferee was outside the United States or such
Transferor and any Person acting on its behalf reasonably believed and believes
that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore

                                      B-1
<PAGE>

securities market and neither such Transferor nor any Person acting on its
behalf knows that the transaction was prearranged with a buyer in the United
States, (ii) no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities
Act and (iii) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act and (iv) if the proposed
transfer is being made prior to the expiration of the Restricted Period, the
transfer is not being made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed
transfer in accordance with the terms of the Indenture, the transferred
Book-Entry Interest or Definitive Note will be subject to the restrictions on
Transfer enumerated in the Private Placement Legend printed on the Regulation S
Global Note and/or the Definitive Note and in the Indenture and the Securities
Act.

3. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF BOOK-ENTRY
INTERESTS IN THE IAI GLOBAL NOTE OR DEFINITIVE NOTES PURSUANT TO ANY PROVISION
OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The Transfer is
being effected in compliance with the transfer restrictions applicable to
Book-Entry Interests in Restricted Global Notes and Definitive Notes bearing the
Private Placement Legend and pursuant to and in accordance with the Securities
Act and any applicable blue sky securities laws of any State of the United
States, and accordingly the Transferor hereby further certifies that (check
one):

     (a) [ ] such Transfer is being effected pursuant to and in accordance with
Rule 144 under the Securities Act;

                                       or

     (b) [ ] such Transfer is being effected to the Company or a subsidiary
thereof,

                                       or

     (c) [ ] such Transfer is being effected pursuant to an effective
registration statement under the Securities Act;

                                       or

     (d) [ ] such Transfer is being effected to an Institutional Accredited
Investor and pursuant to an exemption from the registration requirements of the
Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor
hereby further certifies that the Transfer complies with the transfer
restrictions applicable to Book-Entry Interests in a Restricted Global Note or
Definitive Notes bearing the Private Placement Legend and the requirements of
the exemption claimed, which certification is supported by (x) if such Transfer
is in respect of a principal amount of Notes at the time of Transfer of $250,000
or more, a certificate executed by the Transferee in the form of Exhibit D to
the Indenture, or (y) if such Transfer is in respect of a principal amount of
Notes at the time of transfer of less than $250,000, (1) a certificate executed
by the Transferee in the form of Exhibit D to the Indenture and (2) an Opinion
of Counsel provided by the Transferor or the Transferee (a copy of which the
Transferor has attached to this certification), to the effect that (1) such
Transfer is in compliance with the Securities Act and (2) such Transfer complies
with any applicable blue sky securities laws of any state of the United States.
Upon consummation of the proposed transfer in accordance with the terms of the

                                      B-2
<PAGE>

Indenture, the transferred Book-Entry Interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the IAI Global Note and/or the Definitive Notes and in the
Indenture and the Securities Act.

4. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF BOOK-ENTRY INTERESTS IN THE
UNRESTRICTED GLOBAL NOTE OR IN DEFINITIVE NOTES THAT DO NOT BEAR THE PRIVATE
PLACEMENT LEGEND.

     (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred Book-Entry Interests or Definitive
Notes will no longer be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Global Notes, on
Definitive Notes bearing the Private Placement Legend and in the Indenture.

     (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred Book-Entry Interests or
Definitive Notes will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Definitive Notes bearing the Private Placement Legend and in the
Indenture.

     (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The Transfer
is being effected pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act other than Rule 144, Rule 903 or
Rule 904 and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any State of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred Book-Entry Interests or
Definitive Notes will not be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Global Notes or
Definitive Notes bearing the Private Placement Legend and in the Indenture.

     This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                     ---------------------------------------
                                     [Insert Name of Transferor]

                                      B-3
<PAGE>

                                         By:
                                            --------------------------------
                                            Name:
                                            Title:

Dated:  ____________, ____

                                      B-4
<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

1.   The Transferor owns and proposes to transfer the following:

                            [CHECK ONE OF (a) OR (b)]

     (a) [ ] Book-Entry Interests in the:

          (i)   [ ] 144A Global Note (CUSIP _______), or

          (ii)  [ ] Regulation S Global Note (CUSIP ______), or

          (iii) [ ] IAI Global Note (CUSIP ________); or

     (b) [ ] Restricted Definitive Notes.

2.   After the Transfer the Transferee will hold:

                                   [CHECK ONE]

     (a) [ ] Book-Entry Interests in the:

          (i)   [ ] 144A Global Note (CUSIP _____), or

          (ii)  [ ] Regulation S Global Note (CUSIP _____), or

          (iii) [ ] IAI Global Note (CUSIP ______); or

          (iv)  [ ] Unrestricted Global Note (CUSIP ______); or

     (b) [ ] Restricted Definitive Notes; or

     (c) [ ] Definitive Notes that do not bear the Private Placement Legend,

             in accordance with the terms of the Indenture.

                                      B-5
<PAGE>

                                    EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

L-3 Communications Corporation
600 Third Avenue, 34th Floor,
New York, New York 10016
Attention:  Vice President-Finance (Fax: 212-805-5470)

         Re: Senior Subordinated Notes due 2009
             ----------------------------------

                              (CUSIP ____________)

         Reference is hereby made to the Indenture, dated as of March 8, 2002
(the "Indenture"), among L-3 Communications Corporation, as issuer (the
"Company"), the Guarantors named therein and The Bank of New York, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

         ______________, (the "Holder") owns and proposes to exchange the
Note[s] or interest in such Note[s] specified herein, in the principal amount of
$______________ in such Note[s] or interests (the "Exchange"). In connection
with the Exchange, the Holder hereby certifies that:

1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR RESTRICTED BOOK-ENTRY INTERESTS
FOR DEFINITIVE NOTES THAT DO NOT BEAR THE PRIVATE PLACEMENT LEGEND OR
UNRESTRICTED BOOK-ENTRY INTERESTS

         (a) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED BOOK-ENTRY INTEREST TO
UNRESTRICTED BOOK-ENTRY Interest. In connection with the Exchange of the
Holder's Restricted Book-Entry Interest for Unrestricted Book-Entry Interests in
an equal principal amount, the Holder hereby certifies (i) the Unrestricted
Book-Entry Interests are being acquired for the Holder's own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Global Notes and pursuant to and in accordance
with the United States Securities Act of 1933, as amended (the "Securities
Act"), (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the Unrestricted Book-Entry Interests are being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

         (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED BOOK-ENTRY INTEREST TO
DEFINITIVE NOTES THAT DO NOT BEAR THE PRIVATE PLACEMENT LEGEND. In connection
with the Exchange of the Holder's Restricted Book-Entry Interests for Definitive
Notes that do not bear the Private Placement Legend, the Holder hereby certifies
(i) the Definitive Notes are being acquired for the Holder's own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the

                                      C-1
<PAGE>

Securities Act and (iv) the Definitive Notes are being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

         (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTES TO
UNRESTRICTED BOOK-ENTRY INTERESTS. In connection with the Holder's Exchange of
Restricted Definitive Notes for Unrestricted Book-Entry Interests, (i) the
Unrestricted Book-Entry Interests are being acquired for the Holder's own
account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Book-Entry Interests are being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

         (d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTES TO
DEFINITIVE NOTES THAT DO NOT BEAR THE PRIVATE PLACEMENT LEGEND. In connection
with the Holder's Exchange of a Restricted Definitive Note for Definitive
Notes that do not bear the Private Placement Legend, the Holder hereby
certifies (i) the Definitive Notes that do not bear the Private Placement
Legend are being acquired for the Holder's own account without transfer, (ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act , (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Notes are being
acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR RESTRICTED BOOK-ENTRY INTERESTS
FOR RESTRICTED DEFINITIVE NOTES OR RESTRICTED BOOK-ENTRY INTERESTS

         (a) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED BOOK-ENTRY INTERESTS TO
RESTRICTED DEFINITIVE NOTE. In connection with the Exchange of the Holder's
Restricted Book-Entry Interest for Restricted Definitive Notes with an equal
principal amount, (i) the Restricted Definitive Notes are being acquired for the
Holder's own account without transfer and (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to the Restricted Global
Notes and pursuant to and in accordance with the Securities Act, and in
compliance with any applicable blue sky securities laws of any state of the
United States. Upon consummation of the proposed Exchange in accordance with the
terms of the Indenture, the Restricted Definitive Notes issued will be subject
to the restrictions on transfer enumerated in the Private Placement Legend
printed on the Restricted Definitive Notes and in the Indenture and the
Securities Act.

         (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTES TO
RESTRICTED BOOK-ENTRY INTERESTS. In connection with the Exchange of the Holder's
Restricted Definitive Note for Restricted Book-Entry Interests in the [CHECK
ONE] [ ] 144A Global Note, [ ] Regulation S Global Note, [ ] IAI Global Note
with an equal principal amount, (i) the Definitive Notes are being acquired for
the Holder's own account without transfer and (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the
Restricted Definitive Note and pursuant to and in accordance with the Securities
Act, and in compliance with any applicable blue sky securities laws of any state
of the United States. Upon

                                      C-2
<PAGE>

consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Book-Entry Interests issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                          -----------------------------------
                                          [Insert Name of Transferor]

                                           By:
                                              -------------------------------
                                              Name:
                                              Title:

Dated:  ____________, ____

                                      C-3
<PAGE>

                                    EXHIBIT D

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

L-3 Communications Corporation
600 Third Avenue, 34th Floor,
New York, New York  10016
Attention:  Vice President-Finance (Fax: 212-805-5470)

      Re:  Senior Subordinated Notes due 2009
           ----------------------------------

         Reference is hereby made to the Indenture, dated as of March 8, 2002
(the "Indenture"), among L-3 Communications Corporation, as issuer (the
"Company"), the Guarantors named therein and The Bank of New York, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

         In connection with our proposed purchase of $____________ aggregate
principal amount at maturity of:

      (a) [ ] Book-Entry Interests, or

      (b) [ ] Definitive Notes,

      we confirm that:

         1. We understand that any subsequent transfer of the Notes or any
interest therein is subject to certain restrictions and conditions set forth in
the Indenture and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the "Securities Act").

         2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes and any interest therein
may not be offered or sold except as permitted in the following sentence. We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest therein,
we will do so only (A) to the Company or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a "qualified institutional
buyer" (as defined therein), (C) to an institutional "accredited investor" (as
defined below) that, prior to such transfer, furnishes (or has furnished on its
behalf by a U.S. broker-dealer) to you and to the Company a signed letter
substantially in the form of this letter and, if such transfer is in respect of
a principal amount of Notes, at the time of transfer of less than $250,000, an
Opinion of Counsel in form reasonably acceptable to the Company to the effect
that such transfer is in compliance with the Securities Act, (D) outside the
United States in accordance with Rule 904 of Regulation S under the Securities
Act, (E) pursuant to the provisions of Rule 144 under the Securities Act or (F)
pursuant to an effective registration statement under the Securities Act, and we
further agree to provide to any person purchasing the Definitive Notes or
Book-Entry

                                      D-1
<PAGE>

Interests from us in a transaction meeting the requirements of clauses (A)
through (E) of this paragraph a notice advising such purchaser that resales
thereof are restricted as stated herein.

         3. We understand that, on any proposed resale of the Notes or
Book-Entry Interests, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect. We further understand that any subsequent
transfer by us of the Notes or Book-Entry Interests therein acquired by us must
be effected through one of the Placement Agents.

         4. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Notes, and we and
any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

         5. We are acquiring the Notes or Book-Entry Interests purchased by us
for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

         You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                         -----------------------------------
                                         [Insert Name of Accredited Investor]

                                         By:
                                            --------------------------------
                                            Name:
                                            Title:

Dated:  ____________, ____

                                      D-2
<PAGE>

                                    EXHIBIT E

                 FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED
                           BY GUARANTEEING SUBSIDIARY

         SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as of
_________________, between ____________________ (the "Guaranteeing Subsidiary"),
a subsidiary of L-3 Communications Corporation (or its permitted successor), a
Delaware corporation (the "Company"), the Company, the other Guarantors (as
defined in the Indenture referred to herein) and The Bank of New York, as
trustee under the indenture referred to below (the "Trustee").

                                   WITNESSETH

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an indenture (the "Indenture"), dated as of March 8, 2002 providing for
the issuance of an aggregate principal amount of up to $500,000,000 of Senior
Subordinated Notes due 2009 (the "Notes");

         WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Subsidiary Guarantee"); and

         WHEREAS, pursuant to Section 4.13 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

     1. CAPITALIZED TERMS. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

     2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees as
follows:

          (a)  The Guaranteeing Subsidiary, jointly and severally with all other
               Guaranteeing Subsidiaries, if any, unconditionally guarantees to
               each Holder of a Note authenticated and delivered by the Trustee
               and to the Trustee and its successors and assigns, regardless of
               the validity and enforceability of the Indenture, the Notes or
               the Obligations of the Company under the Indenture or the Notes,
               that:

               (i)  the principal of, premium and interest on the Notes will be
                    promptly paid in full when due, whether at maturity, by

                                      E-1
<PAGE>

                    acceleration, redemption or otherwise, and interest on the
                    overdue principal of, premium and interest on the Notes, to
                    the extent lawful, and all other Obligations of the Company
                    to the Holders or the Trustee thereunder or under the
                    Indenture will be promptly paid in full, all in accordance
                    with the terms thereof; and

               (ii) in case of any extension of time for payment or renewal of
                    any Notes or any of such other Obligations, that the same
                    will be promptly paid in full when due in accordance with
                    the terms of the extension or renewal, whether at stated
                    maturity, by acceleration or otherwise.

          (b)  Notwithstanding the foregoing, in the event that this Subsidiary
               Guarantee would constitute or result in a violation of any
               applicable fraudulent conveyance or similar law of any relevant
               jurisdiction, the liability of the Guaranteeing Subsidiary under
               this Supplemental Indenture and its Subsidiary Guarantee shall be
               reduced to the maximum amount permissible under such fraudulent
               conveyance or similar law.

     3. EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEES.

          (a)  To evidence its Subsidiary Guarantee set forth in this
               Supplemental Indenture, the Guaranteeing Subsidiary hereby agrees
               that a notation of such Subsidiary Guarantee substantially in the
               form of Exhibit F to the Indenture shall be endorsed by an
               officer of such Guaranteeing Subsidiary on each Note
               authenticated and delivered by the Trustee after the date hereof.

          (b)  Notwithstanding the foregoing, the Guaranteeing Subsidiary hereby
               agrees that its Subsidiary Guarantee set forth herein shall
               remain in full force and effect notwithstanding any failure to
               endorse on each Note a notation of such Subsidiary Guarantee.

          (c)  If an Officer whose signature is on this Supplemental Indenture
               or on the Subsidiary Guarantee no longer holds that office at the
               time the Trustee authenticates the Note on which a Subsidiary
               Guarantee is endorsed, the Subsidiary Guarantee shall be valid
               nevertheless.

          (d)  The delivery of any Note by the Trustee, after the authentication
               thereof under the Indenture, shall constitute due delivery of the
               Subsidiary Guarantee set forth in this Supplemental Indenture on
               behalf of the Guaranteeing Subsidiary.

          (e)  The Guaranteeing Subsidiary hereby agrees that its obligations
               hereunder shall be unconditional, regardless of the validity,
               regularity or enforceability of the Notes or the Indenture, the
               absence of any action to enforce the same, any waiver or consent
               by any Holder of the Notes with respect to any provisions of the
               Notes or the Indenture, the recovery of any

                                      E-2
<PAGE>

               judgment against the Company, any action to enforce the same or
               any other circumstance which might otherwise constitute a legal
               or equitable discharge or defense of a guarantor.

          (f)  The Guaranteeing Subsidiary hereby waives diligence, presentment,
               demand of payment, filing of claims with a court in the event of
               insolvency or bankruptcy of the Company, any right to require a
               proceeding first against the Company, protest, notice and all
               demands whatsoever and covenants that its Subsidiary Guarantee
               made pursuant to this Supplemental Indenture will not be
               discharged except by complete performance of the obligations
               contained in the Notes and the Indenture.

          (g)  If any Holder or the Trustee is required by any court or
               otherwise to return to the Company or the Guaranteeing
               Subsidiary, or any custodian, Trustee, liquidator or other
               similar official acting in relation to either the Company or the
               Guaranteeing Subsidiary, any amount paid by either to the Trustee
               or such Holder, the Subsidiary Guarantee made pursuant to this
               Supplemental Indenture, to the extent theretofore discharged,
               shall be reinstated in full force and effect.

          (h)  The Guaranteeing Subsidiary agrees that it shall not be entitled
               to any right of subrogation in relation to the Holders in respect
               of any obligations guaranteed hereby until payment in full of all
               obligations guaranteed hereby. The Guaranteeing Subsidiary
               further agrees that, as between the Guaranteeing Subsidiary, on
               the one hand, and the Holders and the Trustee, on the other hand:

               (i)  the maturity of the obligations guaranteed hereby may be
                    accelerated as provided in Article 6 of the Indenture for
                    the purposes of the Subsidiary Guarantee made pursuant to
                    this Supplemental Indenture, notwithstanding any stay,
                    injunction or other prohibition preventing such acceleration
                    in respect of the obligations guaranteed hereby; and

               (ii) in the event of any declaration of acceleration of such
                    obligations as provided in Article 6 of the Indenture, such
                    obligations (whether or not due and payable) shall forthwith
                    become due and payable by the Guaranteeing Subsidiary for
                    the purpose of the Subsidiary Guarantee made pursuant to
                    this Supplemental Indenture.

          (i)  The Guaranteeing Subsidiary shall have the right to seek
               contribution from any other non-paying Guaranteeing Subsidiary so
               long as the exercise of such right does not impair the rights of
               the Holders or the Trustee under the Subsidiary Guarantee made
               pursuant to this Supplemental Indenture.

     4. GUARANTEEING SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

                                      E-3
<PAGE>

          (a)  Except as set forth in Articles 4 and 5 of the Indenture, nothing
               contained in the Indenture, this Supplemental Indenture or in the
               Notes shall prevent any consolidation or merger of the
               Guaranteeing Subsidiary with or into the Company or any other
               Guaranteeing Subsidiary or shall prevent any transfer, sale or
               conveyance of the property of the Guaranteeing Subsidiary as an
               entirety or substantially as an entirety, to the Company or any
               other Guaranteeing Subsidiary.

          (b)  Except as set forth in Article 4 of the Indenture, nothing
               contained in the Indenture, this Supplemental Indenture or in the
               Notes shall prevent any consolidation or merger of the
               Guaranteeing Subsidiary with or into a corporation or
               corporations other than the Company or any other Guaranteeing
               Subsidiary (in each case, whether or not affiliated with the
               Guaranteeing Subsidiary), or successive consolidations or mergers
               in which a Guaranteeing Subsidiary or its successor or successors
               shall be a party or parties, or shall prevent any sale or
               conveyance of the property of a Guaranteeing Subsidiary as an
               entirety or substantially as an entirety, to a corporation other
               than the Company or any other Guaranteeing Subsidiary (in each
               case, whether or not affiliated with the Guaranteeing Subsidiary)
               authorized to acquire and operate the same; provided, however,
               that the Guaranteeing Subsidiary hereby covenants and agrees that
               (i) subject to the Indenture, upon any such consolidation,
               merger, sale or conveyance, the due and punctual performance and
               observance of all of the covenants and conditions of the
               Indenture and this Supplemental Indenture to be performed by such
               Guaranteeing Subsidiary, shall be expressly assumed (in the event
               that the Guaranteeing Subsidiary is not the surviving corporation
               in the merger), by supplemental indenture satisfactory in form to
               the Trustee, executed and delivered to the Trustee, by the
               corporation formed by such consolidation, or into which the
               Guaranteeing Subsidiary shall have been merged, or by the
               corporation which shall have acquired such property and (ii)
               immediately after giving effect to such consolidation, merger,
               sale or conveyance no Default or Event of Default exists.

          (c)  In case of any such consolidation, merger, sale or conveyance and
               upon the assumption by the successor corporation, by supplemental
               indenture, executed and delivered to the Trustee and satisfactory
               in form to the Trustee, of the Subsidiary Guarantee made pursuant
               to this Supplemental Indenture and the due and punctual
               performance of all of the covenants and conditions of the
               Indenture and this Supplemental Indenture to be performed by the
               Guaranteeing Subsidiary, such successor corporation shall succeed
               to and be substituted for the Guaranteeing Subsidiary with the
               same effect as if it had been named herein as the Guaranteeing
               Subsidiary. Such successor corporation thereupon may cause to be
               signed any or all of the Subsidiary Guarantees to be endorsed
               upon the Notes issuable under the Indenture which theretofore
               shall not have been signed by the Company and delivered to the
               Trustee. All the Subsidiary

                                      E-4
<PAGE>

               Guarantees so issued shall in all respects have the same legal
               rank and benefit under the Indenture and this Supplemental
               Indenture as the Subsidiary Guarantees theretofore and thereafter
               issued in accordance with the terms of the Indenture and this
               Supplemental Indenture as though all of such Subsidiary
               Guarantees had been issued at the date of the execution hereof.

     5. RELEASES.

          (a)  Concurrently with any sale of assets (including, if applicable,
               all of the Capital Stock of the Guaranteeing Subsidiary), all
               Liens, if any, in favor of the Trustee in the assets sold thereby
               shall be released; provided that in the event of an Asset Sale,
               the Net Proceeds from such sale or other disposition are treated
               in accordance with the provisions of Section 4.10 of the
               Indenture. If the assets sold in such sale or other disposition
               include all or substantially all of the assets of the
               Guaranteeing Subsidiary or all of the Capital Stock of the
               Guaranteeing Subsidiary, then the Guaranteeing Subsidiary (in the
               event of a sale or other disposition of all of the Capital Stock
               of such Guaranteeing Subsidiary) or the Person acquiring the
               property (in the event of a sale or other disposition of all or
               substantially all of the assets of such Guaranteeing Subsidiary)
               shall be released from and relieved of its obligations under this
               Supplemental Indenture and its Subsidiary Guarantee made pursuant
               hereto; provided that in the event of an Asset Sale, the Net
               Proceeds from such sale or other disposition are treated in
               accordance with the provisions of Section 4.10 of the Indenture.
               Upon delivery by the Company to the Trustee of an Officers'
               Certificate to the effect that such sale or other disposition was
               made by the Company or the Guaranteeing Subsidiary, as the case
               may be, in accordance with the provisions of the Indenture and
               this Supplemental Indenture, including without limitation,
               Section 4.10 of the Indenture, the Trustee shall execute any
               documents reasonably required in order to evidence the release of
               the Guaranteeing Subsidiary from its obligations under this
               Supplemental Indenture and its Subsidiary Guarantee made pursuant
               hereto. If the Guaranteeing Subsidiary is not released from its
               obligations under its Subsidiary Guarantee, it shall remain
               liable for the full amount of principal of and interest on the
               Notes and for the other obligations of such Guaranteeing
               Subsidiary under the Indenture as provided in this Supplemental
               Indenture.

          (b)  Upon the designation of a Guaranteeing Subsidiary as an
               Unrestricted Subsidiary in accordance with the terms of the
               Supplemental Indenture, such Guaranteeing Subsidiary shall be
               released and relieved of its obligations under its Subsidiary
               Guarantee and this Supplemental Indenture. Upon delivery by the
               Company to the Trustee of an Officers' Certificate and an Opinion
               of Counsel to the effect that such designation of such
               Guaranteeing Subsidiary as an Unrestricted Subsidiary was made by
               the Company in accordance with the provisions of this
               Supplemental

                                      E-5
<PAGE>

               Indenture, also including without limitation Section 4.07 of the
               Indenture, the Trustee shall execute any documents reasonably
               required in order to evidence the release of such Guaranteeing
               Subsidiary from its obligations under its Subsidiary Guarantee.
               Any Guaranteeing Subsidiary not released from its obligations
               under its Subsidiary Guarantee shall remain liable for the full
               amount of principal of and interest on the Notes and for the
               other obligations of any Guaranteeing Subsidiary under the
               Indenture as provided in Article 10.

     6. NO RECOURSE AGAINST OTHERS. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive liabilities under the federal securities laws and it
is the view of the Commission that such a waiver is against public policy.

     7. New York Law To Govern. This Supplemental Indenture shall be governed
by, and construed in accordance with, the laws Of The State Of New York.

     8. COUNTERPARTS. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

     9. EFFECT OF HEADINGS. The Section headings herein are for convenience only
and shall not affect the construction hereof.

     10. THE TRUSTEE. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiary and the Company.

                                      E-6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the date first above
written.

Dated:  ______________, ______                    [GUARANTEEING SUBSIDIARY]

                                                  By:
                                                     --------------------------
                                                     Name:
                                                     Title:

                                         L-3 COMMUNICATIONS CORPORATION

                                         By:
                                            -----------------------------------
                                            Name:
                                            Title:

GUARANTORS:

HYGIENETICS ENVIROMENTAL SERVICES, INC.
L-3 COMMUNICATIONS ILEX SYSTEMS, INC.
SOUTHERN CALIFORNIA MICROWAVE, INC.
L-3 COMMUNICATIONS SPD TECHNOLOGIES, INC.
L-3 COMMUNICATIONS ESSCO, INC.
L-3 COMMUNICATIONS STORM CONTROL SYSTEMS, INC.
L-3 COMMUNICATIONS DBS MICROWAVE, INC.
SPD ELECTRICAL SYSTEMS, INC.
SPD SWITCHGEAR , INC.
PAC ORD, INC
HENSCHEL, INC.
SPD HOLDINGS, INC.
POWER PARAGON, INC.
L-3 COMMUNICATIONS AYDIN CORPORATION
MPRI, INC.
ELECTRODYNAMICS, INC.
INTERSTATE ELECTRONICS CORPORATION
MICRODYNE CORPORATION
L-3 COMMUNICATIONS ANALYTICS CORPORATION
L-3 COMMUNICATIONS AIS GP CORPORATION
L-3 COMMUNICATIONS INVESTMENTS INC.
COLEMAN RESEARCH CORPORATION
KDI PRECISION PRODUCTS, INC.
EER SYSTEMS, INC.
         as Guarantors

                                      E-7
<PAGE>

By:  ______________________________________
     Name:  Christopher C. Cambria
     Title: Vice President

L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.
      as Guarantor

By:  L-3 COMMUNICATIONS AIS GP CORPORATION,
     as General Partner

     By: _________________________________
         Name:
         Title: Authorized Person

Dated:  ______________, ______

THE BANK OF NEW YORK,
      as Trustee

By: ______________________________________
    Name:
    Title:

                                      E-8
<PAGE>

                                    EXHIBIT F

            FORM OF NOTATION ON SENIOR SUBORDINATED NOTE RELATING TO
                              SUBSIDIARY GUARANTEE

         Pursuant to the Indenture (the "Indenture") dated as of March 8, 2002
among L-3 Communications Corporation, the Guarantors named therein and The Bank
of New York, as trustee (the "Trustee"), each Guarantor (i) has jointly and
severally unconditionally guaranteed (a) the due and punctual payment of the
principal of, and premium, interest and Additional Amounts on the Notes, whether
at maturity or an interest payment date, by acceleration, call for redemption or
otherwise, (b) the due and punctual payment of interest on the overdue principal
and premium of, and interest and Additional Amounts on the Notes, and (c) in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, the same will be promptly paid in full when due in accordance
with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise and (ii) has agreed to pay any and all costs and
expenses (including reasonable attorneys' fees) incurred by the Trustee or any
Holder in enforcing any rights under this Subsidiary Guarantee.

         Notwithstanding the foregoing, in the event that the Subsidiary
Guarantee of any Guarantor would constitute or result in a violation of any
applicable fraudulent conveyance or similar law of any relevant jurisdiction,
the liability of such Guarantor under its Subsidiary Guarantee shall be reduced
to the maximum amount permissible under such fraudulent conveyance or similar
law.

         No past, present or future director, officer, employee, agent,
incorporator, stockholder or agent of any Guarantor, as such, shall have any
liability for any obligations of the Company or any Guarantor under the Notes,
any Subsidiary Guarantee, the Indenture, any supplemental indenture delivered
pursuant to the Indenture by such Guarantor or any Subsidiary Guarantees, or for
any claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting a Note waives and releases all such
liability.

         This Subsidiary Guarantee shall be binding upon each Guarantor and its
successors and assigns and shall inure to the benefit of the successors and
assigns of the Trustee and the Holders and, in the event of any transfer or
assignment of rights by any Holder or the Trustee, the rights and privileges
herein conferred upon that party shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions hereof.

         This Subsidiary Guarantee shall not be valid or obligatory for any
purpose until the certificate of authentication on the Note upon which this
Subsidiary Guarantee is noted have been executed by the Trustee under the
Indenture by the manual signature of one of its authorized officers. Capitalized
terms used herein have the meaning assigned to them in the Indenture.

                                       1

<PAGE>

HYGIENETICS ENVIROMENTAL SERVICES, INC.
L-3 COMMUNICATIONS ILEX SYSTEMS, INC.
SOUTHERN CALIFORNIA MICROWAVE, INC.
L-3 COMMUNICATIONS SPD TECHNOLOGIES, INC.
L-3 COMMUNICATIONS ESSCO, INC.
L-3 COMMUNICATIONS STORM CONTROL SYSTEMS, INC.
L-3 COMMUNICATIONS DBS MICROWAVE, INC.
SPD ELECTRICAL SYSTEMS, INC.
SPD SWITCHGEAR , INC.
PAC ORD, INC
HENSCHEL, INC.
SPD HOLDINGS, INC.
POWER PARAGON, INC.
L-3 COMMUNICATIONS AYDIN CORPORATION
MPRI, INC.
ELECTRODYNAMICS, INC.
INTERSTATE ELECTRONICS CORPORATION
MICRODYNE CORPORATION
L-3 COMMUNICATIONS ANALYTICS CORPORATION
L-3 COMMUNICATIONS AIS GP CORPORATION
L-3 COMMUNICATIONS INVESTMENTS INC.
COLEMAN RESEARCH CORPORATION
KDI PRECISION PRODUCTS, INC.
EER SYSTEMS, INC.
         as Guarantors

By:  ______________________________________
         Name:  Christopher C. Cambria
         Title: Vice President

L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P.
         as Guarantor

By:      L-3 COMMUNICATIONS AIS GP CORPORATION,
         as General Partner

         By:  _________________________________
              Name:
              Title:  Authorized Person

                                       2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]