Document:

Exhibit 10.01

 

EXHIBIT 10.01

AMENDMENT NO. 1

     AMENDMENT dated as of April 17, 2007 to the Five-Year Credit Agreement dated as of June 30,
2005 (the “Credit Agreement”) among MARTIN MARIETTA MATERIALS, INC., the LENDERS listed on the
signature pages thereof, JPMORGAN CHASE BANK, N.A., as Administrative Agent, and BANK OF AMERICA,
N.A., BNP PARIBAS, BRANCH BANKING AND TRUST COMPANY and WACHOVIA BANK, NATIONAL ASSOCIATION, as
Co-Syndication Agents.

     The parties hereto agree as follows:

     Section 1. Defined Terms; References. Unless otherwise specifically
defined herein, each term used herein that is defined in the Credit Agreement has the meaning
assigned to such term in the Credit Agreement. Each reference to “hereof”, “hereunder”, “herein”
and “hereby” and each other similar reference and each reference to “this Agreement” and each other
similar reference contained in the Credit Agreement shall, after this Amendment becomes effective,
refer to the Credit Agreement as amended hereby.

     Section 2. Amendments. The Credit Agreement is hereby amended as follows:

     (a) The following two definitions are added to Section 1.01 in their appropriate alphabetical
position:

     “Consolidated EBITDA” means, for any period, net income (or net loss) (before
discontinued operations) plus the sum of (a) consolidated interest expense, (b) income tax
expense, (c) depreciation expense, (d) amortization expense, (e) depletion expense, (f)
stock based compensation expense and (g) any non-cash losses or expenses from any unusual,
extraordinary or otherwise non-recurring items as reasonably determined by the Borrower,
and minus (x) consolidated interest income and (y) the sum of the amounts for such period
of any income tax benefits and any income or gains from any unusual, extraordinary or
otherwise non-recurring items as reasonably determined by the Borrower, in each case
determined on a consolidated basis for the Borrower and its Subsidiaries in accordance
with GAAP and in the case of items (a) through (g) and items (x) and (y), to the extent
such amounts were included in the calculation of net income. For the purpose of
calculating Consolidated EBITDA for any period, if during such period the Borrower or any
Subsidiary shall have made an acquisition or a disposition, Consolidated EBITDA for such
period shall be calculated after giving pro forma effect

 

 

thereto as if such acquisition or disposition, as the case may be, occurred on the
first day of such period.

     “Leverage Ratio” means, at any date, the ratio of (a) Consolidated Debt at such date
to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters most
recently ended on or prior to such date, taken as one accounting period.

     (b) Section 5.08 is amended by inserting the following at the beginning of clause (i) thereof:
“Liens incurred in the ordinary course of business not securing Debt which do not impair in any
material respect the usefulness in the business of the Borrower and its Restricted Subsidiaries of
the assets to which such Liens attach;”

     (c) Section 5.09 is amended as follows:

     (i) the text of the first sentence preceding the proviso is amended to read “The
Leverage Ratio shall not exceed 2.75 to 1.00 as of the end of any fiscal quarter;” and

     (ii) the figure “65%” at the end of such proviso is changed to “3.25 to 1.00.”

     (d) The following provisions are deleted:

     (iii) the definitions of Equity Hybrid Security, Equity Purchase and Total Capital in
Section 1.01; and

     (iv) the second sentence of Section 5.09.

     (e) Paragraph 5 of Exhibit H is amended to read in its entirety as follows:

     5. Maximum Leverage Ratio Calculation. The financial data and computations
supporting the Borrower’s compliance on and as of the Certification Date with the
financial covenant contained in Section 5.09 of the Agreement are set forth below, and
such financial data and computations are true, correct, and complete:

(A) Consolidated Debt
                                        
                           

(B) Consolidated
EBITDA
                                        
                     

Actual leverage
(A)/(B)                                       
;
                            

Maximum Allowable Leverage 2.75 to 1.00

(under certain circumstances set forth in Section 5.09 of the Credit Agreement, Maximum
Allowable Leverage can be 3.25 to 1.00)

2

 

     Section 3. Representations of Borrower. The Borrower represents and
warrants that (i) the representations and warranties of the Borrower set forth in Article 4 of the
Credit Agreement will be true on the Amendment Effective Date and (ii) no Default will have
occurred and be continuing at such time.

     Section 4. Effect of Amendment. Except as expressly set forth herein, nothing contained
herein shall constitute a waiver or amendment of any term or condition of the Credit Agreement, and
all such terms and conditions shall remain in full force and effect and are hereby ratified and
confirmed in all respects.

     Section 5. Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York.

     Section 6. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.

     Section 7. Effectiveness. This Amendment shall become effective as of the
date (the “Amendment Effective Date”) on which the Administrative Agent shall have received from
the Borrower and such Lenders as may be necessary in order that the signatories hereto comprise the
Required Lenders a counterpart hereof signed by such party or facsimile or other written
confirmation (in form satisfactory to the Administrative Agent) that such party has signed a
counterpart hereof.

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

	 	 	 	 	 
	 	MARTIN MARIETTA MATERIALS, INC.

 	 
	 	By:  	/s/  Anne H. Lloyd
 	 
	 	 	Name:  	Anne H. Lloyd 	 
	 	 	Title:  	Senior Vice
President, Chief Financial
Officer and Treasurer 	 
	 
	 	JPMORGAN CHASE BANK, N.A.

as Administrative Agent and as Lender

 	 
	 	By:  	/s/  Anthony W. White
 	 
	 	 	Name:  	Anthony W. White 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

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

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

as Lender

 	 
	 	By:  	/s/  Andrea S. Chen
 	 
	 	 	Name:  	Andrea S. Chen 	 
	 	 	Title:  	Vice President 	 
	 

 

 

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

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

as Lender

 	 
	 	By:  	/s/  Charles R. Dickerson
 	 
	 	 	Name:  	Charles R. Dickerson 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

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

	 	 	 	 	 
	 	CITIBANK, N.A.

as Lender

 	 
	 	By:  	/s/  James M. Buchanan
 	 
	 	 	Name:  	James M. Buchanan 	 
	 	 	Title:  	Vice President 	 
	 

 

 

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

	 	 	 	 	 
	 	BRANCH BANKING AND TRUST COMPANY

as Lender

 	 
	 	By:  	/s/  Jack M. Frost
 	 
	 	 	Name:  	Jack M. Frost 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

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

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.

as Lender

 	 
	 	By:  	/s/  Horace S. Jennings
 	 
	 	 	Name:  	Horace S. Jennings 	 
	 	 	Title:  	Vice PresidentEX-10.1 Enhanced Overnight Share Repurchase Agreem

 

EXHIBIT 10.1

May 8, 2007

To: Harris Corporation

1025 West NASA Blvd

Melbourne, Florida 32919

From: Bank of America, N.A.

c/o Banc of America Securities LLC

9 West 57th Street, 40th Floor

New York, NY 10019

Telephone: 212-583-8373

Facsimile: 415-835-2514

          Re:     Enhanced Overnight Share Repurchase

Ladies and Gentlemen:

     SECTION 1. Initial Shares.

     Bank of America, N.A. (the “Seller”) will sell to Harris Corporation, a Delaware corporation
(the “Company”), and the Company will purchase from the Seller for settlement on May 9, 2007 (the
“Purchase Date”), 3,440,599 shares (the “Initial Shares”) of common stock, par value $1.00 per
share, of the Company (the “Common Stock”) at a purchase price (the “Purchase Price”) equal to the
number of the Initial Shares multiplied by $49.41. Such sale shall be effected in accordance with
the Seller’s customary procedures.

     SECTION 2. Definitions.

     As used in this Letter Agreement, the following terms shall have the following meanings:

     “Averaging Period” means the period of consecutive Trading Days commencing on May 9, 2007 and
ending on June 29, 2007; provided that the Seller may, in its absolute discretion, accelerate the
last day of the Averaging Period to any Trading Day on or after June 1, 2007 upon written notice to
the Company (it being understood that such notice may be given on the same date that the Seller
elects to be the last day of the Averaging Period, but for the avoidance of doubt, may not be given
after such date).

     “Average Purchase Price” means the arithmetic average of the Daily Average Prices for all
Trading Days during the Averaging Period.

     “BAS” means Banc of America Securities LLC.

 

 

     “Calculation Agent” means BAS.

     “Common Stock” has the meaning specified in Section 1.

     “Company” has the meaning specified in Section 1.

     “Daily Average Price” means (i) for any Trading Day in the Averaging Period, the Reported VWAP
for such Trading Day minus $0.31 or (ii) for any Trading Day in the Valuation Period, the dollar
volume weighted average price per share of Common Stock for that Trading Day based on transactions
executed by the Seller or its designated affiliate during that Trading Day in connection with the
settlement of this Letter Agreement.

     “Designee” has the meaning specified in Section 16.

     “Exchange” means, at any time, the principal national securities exchange or automated
quotation system, if any, on which the Common Stock is listed or quoted at such time.

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

     “Federal Funds Rate” means, for any day, the rate on such day for Federal Funds, as published
by Bloomberg and found by pressing the following letters “FEDSOPEN” followed by pressing the
<Index> key and pressing the following letters “HP” followed by pressing the <Go> key;
provided that if any such day is not a New York Banking Day, the Federal Funds Rate for such day
shall be the Federal Funds Rate for the immediately preceding New York Banking Day.

     “Initial Shares” has the meaning specified in Section 1.

     “ISDA Definitions” means the 2002 ISDA Equity Derivatives Definitions, as published by the
International Swaps and Derivatives Association, Inc.

     “Make-Whole Payment Shares” has the meaning specified in Section 5(c).

     “Maximum Deliverable Number” means 10,000,000 shares of Common Stock, subject to adjustment
pursuant to Section 7(a).

     “Merger Event” has the meaning specified in the ISDA Definitions. For purposes of the ISDA
Definitions, the Shares are shares of Common Stock, the Issuer is the Company, the Merger Date
shall be deemed to be the Announcement Date and the final Valuation Date shall be deemed to be the
last day of the Averaging Period.

     “New York Banking Day” means any day except for a Saturday, Sunday or a day on which the
Federal Reserve Bank of New York is closed.

     “Payment Shares” means Restricted Payment Shares or Make-Whole Payment Shares.

     “Potential Adjustment Event” has the meaning specified in the ISDA Definitions, except that
subclause (iii) thereof shall be deleted. For purposes of the ISDA Definitions, the Shares are
shares of Common Stock and the Issuer is the Company.

     “Private Placement Agreement” has the meaning specified in Section 6(a)(iii).

     “Purchase Date” has the meaning specified in Section 1.

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     “Purchase Price” has the meaning specified in Section 1.

     “Refund Shares” has the meaning specified in Section 5(a)(i)(A).

     “Regulation M” means Regulation M under the Exchange Act.

     “Remaining Scheduled Days” means the scheduled number of Trading Days remaining in the
Averaging Period or the Valuation Period as of the time of any suspension of the Averaging Period
or the Valuation Period, as the case may be.

     “Reported VWAP” means, for any Trading Day, the Rule 10b-18 dollar volume weighted average
price per share of Common Stock for that Trading Day as reported on Bloomberg Page “HRS.N
<Equity> AQR SEC” (or any successor thereto), or, in the event such price is not so reported
on such Trading Day for any reason, as determined by the Calculation Agent.

     “Repurchase Cost” means the product of (i) the Average Purchase Price multiplied by (ii) the
number of Initial Shares.

     “Requirements” has the meaning specified in Section 3(b).

     “Restricted Payment Shares” has the meaning specified in Section 5(a)(ii).

     “Restricted Share Amount” means the quotient of (i) the absolute value of the Settlement
Amount divided by (ii) the Restricted Share Value of a Restricted Payment Share.

     “Restricted Share Value” means, with respect to any Restricted Payment Shares or Make-Whole
Payment Shares, 95% of the value thereof per share to the Seller, determined by the Calculation
Agent.

     “Rule 10b-18” means Rule 10b-18 under the Exchange Act.

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

     “Seller” has the meaning specified in Section 1.

     “Seller’s Short Position” means, at any time, the number of shares of Common Stock
constituting the Seller’s theoretical net short position in relation to the transactions
contemplated by this Letter Agreement at such time, as determined by the Calculation Agent.

     “Settlement Amount” means an amount equal to (i) the Purchase Price minus (ii) the Repurchase
Cost.

     “Settlement Balance” has the meaning specified in Section 5(c).

     “Settlement Day” means any day that is not a Saturday, a Sunday or a day on which banking
institutions or trust companies in The City of New York are authorized or obligated by law or
executive order to close. A Settlement Day “corresponds” to a Trading Day if it is the day for
settlement of regular way transactions for equity securities entered into on the Exchange on that
Trading Day.

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     “Share Amount” means, for any Trading Day, the quotient of (i) the product of (A) the
Valuation Fraction multiplied by (B) the absolute value of the Settlement Amount, divided by (ii)
the Daily Average Price for that Trading Day.

     “Tender Offer” has the meaning specified in the ISDA Definitions. For purposes of the ISDA
Definitions, the Issuer is the Company.

     “Trading Day” means any day (i) other than a Saturday, a Sunday or a day on which the Exchange
is not open for business, (ii) during which trading of any securities of the Company on any
national securities exchange has not been suspended and (iii) during which there has not been, in
the Calculation Agent’s judgment, a material limitation in the trading of Common Stock.

     “Valuation Fraction” means a fraction, the numerator of which is one and the denominator of
which is the number of Trading Days in the Valuation Period.

     “Valuation Period” means, in the case of settlement pursuant to Section 5(a)(i)(A), the
period commencing on the first Trading Day immediately following the later to occur of (i) the last
day of the Averaging Period and (ii) the day on which the Seller receives the Company’s notice
pursuant to Section 5(a), and in the case of settlement pursuant to Section 5(a)(ii)(A), the
period commencing on the first Trading Day immediately following the last day of the Averaging
Period. The number of Trading Days in the Valuation Period shall be determined by the Seller in
its discretion and notified to the Company by the Seller prior to the commencement of the Valuation
Period. Without limiting the generality of Section 3(b), in the case of settlement pursuant to
Section 5(a)(i)(A), the number of Trading Days in the Valuation Period shall be a number of
Trading Days that the Seller reasonably expects, based on information provided to the Seller by the
Company and readily available market information, will result in Share Amounts for each Trading Day
during the Valuation Period that will be less than or equal to the maximum number of shares of
Common Stock that the Company could have purchased on such Trading Day in compliance with the
conditions set forth in Rule 10b-18. For the avoidance of doubt, if the Company elects either to
receive a cash payment pursuant to Section 5(a)(i)(B) or make a cash payment pursuant to Section
5(a)(ii)(B), there will be no Valuation Period.

     SECTION 3. Seller Purchases.

     (a) The Initial Shares may be sold short to the Company. It is understood that during the
Averaging Period the Seller may purchase shares of Common Stock in connection with this Letter
Agreement, which shares may be used to cover all or a portion of such short sale and, if the
Settlement Amount is greater than zero, during the Valuation Period the Seller will purchase shares
of Common Stock to fulfill its obligations to deliver Refund Shares to the Company pursuant to
Section 5. Such purchases will be conducted independently of the Company. The timing of such
purchases by the Seller, the number of shares purchased by the Seller on any day, the price paid
per share of Common Stock pursuant to such purchases and the manner in which such purchases are
made, including without limitation whether such purchases are made on any securities exchange or
privately, shall be within the absolute discretion of the Seller. The Seller shall use
commercially reasonable efforts to effect such purchases of Common Stock in a manner that would, if
the Seller were the Company or an affiliated purchaser of the Company, be subject to the provisions
contained in Rule 10b-18(b)(1), (2) and (3). It is the intent of the parties that this transaction
comply with the requirements of Rule 10b5-1(c)(1)(i)(B) of the Exchange Act, and the parties agree
that this Letter Agreement shall be interpreted to comply with the requirements of Rule 10b5-1(c).
Without limiting the generality of the preceding sentence, the Company acknowledges and agrees that
(A) the Company does not have, and shall not attempt to exercise, any influence over how, when or
whether the Seller effects any purchases of Common Stock in connection with this Letter Agreement,
(B) during the period beginning on (but excluding) the

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date of this Letter Agreement and ending on the last day of the Valuation Period, if any,
neither the Company nor its officers or employees shall, directly or indirectly, communicate any
material non-public information regarding the Company or the Common Stock to any employee of the
Seller or its affiliates responsible for trading the Common Stock in connection with the
transactions contemplated hereby, who currently include the individuals specified in Annex A
hereto, (C) the Company is entering into this Letter Agreement in good faith and not as part of a
plan or scheme to evade compliance with federal securities laws including, without limitation, Rule
10b-5 promulgated under the Exchange Act and (D) the Company will not enter into or alter a
corresponding hedging transaction with respect to the Common Stock. The Company also acknowledges
and agrees that any amendment, modification, waiver or termination of this Letter Agreement must be
effected in accordance with the requirements for the amendment or termination of a “plan” as
defined in Rule 10b5-1(c) under the Exchange Act. Without limiting the generality of the
foregoing, any such amendment, modification, waiver or termination shall be made in good faith and
not as part of a plan or scheme to evade the prohibitions of Rule 10b-5 under the Exchange Act, and
no such amendment, modification, waiver or termination shall be made at any time at which the
Company is aware of any material nonpublic information regarding the Company or the Common Stock.

     (b) In the event that the Seller, in its discretion, determines that it is appropriate with
regard to any legal, regulatory or self-regulatory requirements or related policies and procedures
(whether or not such requirements, policies or procedures are imposed by law or have been
voluntarily adopted by the Seller, and including without limitation Rule 10b-18, Rule 10b-5,
Regulation 13D-G and Regulation 14E under the Exchange Act, “Requirements”), for the Seller to
refrain from purchasing Common Stock or to purchase fewer than the number of shares of Common Stock
that the Seller would otherwise purchase on any Trading Day during the Averaging Period or, if the
Settlement Amount is greater than zero, the Valuation Period, then the Seller may, in its
discretion, elect that the Averaging Period or the Valuation Period, as the case may be, be
suspended as appropriate with regard to any Requirements. The Seller shall notify the Company upon
the exercise of the Seller’s rights pursuant to this Section 3(b) and shall subsequently notify
the Company on the day the Seller believes that the circumstances giving rise to such exercise have
changed. If the Averaging Period or the Valuation Period is suspended by the Seller pursuant to
this Section 3(b), at the end of such suspension the Seller shall determine the number of Trading
Days remaining in the Averaging Period or the Valuation Period, as the case may be, which number
shall not exceed the Remaining Scheduled Days as of the time of such suspension.

     (c) The Company agrees that neither the Company nor any of its affiliates or agents shall take
any action that would cause Regulation M to be applicable to any purchases of Common Stock, or any
security for which the Common Stock is a reference security (as defined in Regulation M), by the
Company or any of its affiliated purchasers (as defined in Regulation M) during the Averaging
Period or, if the Settlement Amount is greater than zero, the Valuation Period.

     (d) The Company shall, at least one day prior to the first day of the Averaging Period, notify
the Seller of the total number of shares of Common Stock purchased in Rule 10b-18 purchases of
blocks pursuant to the once-a-week block exception contained in Rule 10b-18(b)(4) by or for the
Company or any of its affiliated purchasers during each of the four calendar weeks preceding the
first day of the Averaging Period and during the calendar week in which the first day of the
Averaging Period occurs (“Rule 10b-18 purchase”, “blocks” and “affiliated purchaser” each being
used as defined in Rule 10b-18), which notice shall be substantially in the form set forth as
Appendix B hereto.

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     (e) From the date hereof through the last day of the Averaging Period or, if the Settlement
Amount is greater than zero, through the last day of the Valuation Period, the Company shall (i)
notify the Seller prior to the opening of trading in the Common Stock on any day on which the
Company makes, or expects to be made, any public announcement (as defined in Rule 165(f) under the
Securities Act) of any merger, acquisition, or similar transaction involving a recapitalization
relating to the Company (other than any such transaction in which the consideration consists solely
of cash and there is no valuation period), (ii) promptly notify the Seller following any such
announcement that such announcement has been made, and (iii) promptly deliver to the Seller
following the making of any such announcement a certificate indicating (A) the Company’s average
daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months
preceding the date of the announcement of such transaction and (B) the Company’s block purchases
(as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three
full calendar months preceding the date of the announcement of such transaction. In addition, the
Company shall promptly notify the Seller of the earlier to occur of the completion of such
transaction and the completion of the vote by target shareholders. The Company acknowledges that
any such public announcement may cause the Averaging Period or Valuation Period, as the case may
be, to be suspended pursuant to Section 3(b). Accordingly, the Company acknowledges that its
actions in relation to any such announcement or transaction must comply with the standards set
forth in Section 3(a).

     SECTION 4. Company Purchases.

     Without the prior written consent of the Seller, the Company shall not, and shall cause its
affiliates and affiliated purchasers (each as defined in Rule 10b-18) not to, directly or
indirectly (including, without limitation, by means of a cash-settled or other derivative
instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase
of, or commence any tender offer relating to, any shares of Common Stock (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a depository
share) or any security convertible into or exchangeable for shares of Common Stock during the
period beginning on, and including, the Purchase Date and ending on, and including, the earlier of
(i) the last scheduled Trading Day of the Averaging Period (without giving effect to any
acceleration thereof) and (ii) if the last day of the Averaging Period has been accelerated, five
days after the last day of the Averaging Period. During such time, any purchases of Common Stock
(or any security convertible into or exchangeable for shares of Common Stock) by the Company shall
be made through BAS, which is an affiliate of the Seller, pursuant to a letter substantially in the
form of Appendix A hereto and subject to such conditions as the Seller shall reasonably impose, and
shall be in compliance with Rule 10b-18 or otherwise in a manner that the Company and the Seller
reasonably believe is in compliance with the requirements of applicable law (including, without
limitation, Rule 10b-5, Regulation 13D-G and Regulation 14E under the Exchange Act); provided, that
this Section 4 shall not apply to: (i) privately negotiated purchases of Common Stock (or any
security convertible into or exchangeable for shares of Common Stock) by an affiliate or affiliated
purchaser of the Company from another such affiliate or affiliated purchaser; (ii) purchases of
Common Stock pursuant to exercises of stock options granted to affiliates or affiliated purchasers
of the Company; (iii) purchases of Common Stock from holders of performance shares or units or
restricted shares or units to satisfy tax withholding requirements in connection with vesting; (iv)
the conversion by holders of convertible securities of the Company previously issued; or (v) the
purchases of shares of Common Stock effected by or for a plan of the Company by an agent
independent of the issuer that satisfy the requirements of Section 10b-18(a)(13)(ii), and provided
further that for the avoidance of doubt, the receipt by affiliates or affiliated purchasers of the
Company of grants under any Company equity incentive plan or retirement plan shall not constitute a
purchase of Common Stock governed by Section 4.

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     SECTION 5. Purchase Price Adjustment and Settlement.

     (a) After the expiration of the Averaging Period,

          (i) if the Settlement Amount is greater than zero, as an adjustment to the
Purchase Price, the Company shall elect either for

     (A) the Seller to transfer to the Company, for no additional consideration,
a number of shares of Common Stock equal to the sum of the Share Amounts for
each of the Trading Days in the Valuation Period (the “Refund Shares”) in the
manner provided in Section 5(b), or

     (B) the Seller to make a cash payment to the Company in immediately
available funds in an amount equal to the Settlement Amount on the Settlement
Day corresponding to the last Trading Day of the Averaging Period, and

          (ii) if the Settlement Amount is less than zero, as an adjustment to the
Purchase Price, the Company shall elect to

     (A)
transfer to the Seller, for no additional consideration, a number of shares of Common Stock, which will not be registered for resale, equal to the
Restricted Share Amount (the “Restricted Payment Shares”) on the Settlement Day
corresponding to the last Trading Day of the Averaging Period in the manner
provided in Section 5(b), and any Make-Whole Payment Shares as provided in
Section 5(c), or

     (B) make a cash payment to the Seller in immediately available funds in an
amount equal to the absolute value of the Settlement Amount on the Settlement
Day corresponding to the last Trading Day of the Averaging Period.

The Company shall give written notice to the Seller not later than the later of (i) three
Trading Days prior to the then scheduled last Trading Day of the Averaging Period or (ii)
the third Trading Day after receiving notice of acceleration of the Averaging Period from
the Seller, of the Company’s election, if the Settlement Amount is greater than zero, for
the Seller to deliver Refund Shares or make a cash payment or, if the Settlement Amount is
less than zero, for the Company to deliver Payment Shares or to make a cash payment. Once
made, such election will be irrevocable. If the Company fails to make such an election by
the election deadline, the Company shall have been deemed to have elected to receive or
deliver, as the case may be, a cash payment. If the Company elects to deliver Payment
Shares pursuant to this Section 5(a)(ii), the Calculation Agent shall have the right to
adjust the Settlement Amount to compensate the Seller for its cost of funds at the Federal
Funds Rate during the Valuation Period.

     (b) Delivery of Refund Shares or Restricted Payment Shares shall be made as follows:

     (i) if Refund Shares are to be transferred to the Company, the Seller shall
deliver the shares to the Company on the second Settlement Day following the last day of
the Valuation Period, and

     (ii) if Restricted Payment Shares are to be transferred to the Seller, on
the Settlement Day corresponding to the last Trading Day in the Averaging Period, the

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Company shall deliver to the Seller a number of Restricted Payment Shares equal to
the Restricted Share Amount, and the Company shall deliver any additional Make-Whole
Payment Shares as provided in Section 5(c).

     (c) If Restricted Payment Shares are delivered in accordance with Section 5(b)(ii), on the
last Trading Day of the Averaging Period a balance (the “Settlement Balance”) shall be established
with an initial balance equal to the absolute value of the Settlement Amount. Following the
delivery of Restricted Payment Shares or any Make-Whole Payment Shares, Seller shall sell all such
Restricted Payment Shares or Make-Whole Payment Shares in a commercially reasonable manner. At the
end of each Trading Day upon which sales have been made, the Settlement Balance shall be reduced by
an amount equal to 95% of the aggregate proceeds received by Seller upon the sale of such
Restricted Payment Shares or Make-Whole Payment Shares. If, on any Trading Day, all Restricted
Payment Shares and Make-Whole Payment Shares have been sold and after giving effect thereto the
Settlement Balance has not been reduced to zero, the Company shall (i) deliver to Seller or as
directed by Seller on the Settlement Day corresponding to such Trading Day an additional number of
Shares (the “Make-Whole Payment Shares”) equal to (x) the Settlement Balance as of such Trading Day
divided by (y) the Restricted Share Value of the Make-Whole Payment Shares or (ii) promptly deliver
to Seller cash in an amount equal to the then remaining Settlement Balance. This provision shall
be applied successively until either the Settlement Balance is reduced to zero or the aggregate
number of Restricted Payment Shares and Make-Whole Payment Shares equals the Maximum Deliverable
Number. Seller shall not reduce the Settlement Balance below zero, and shall return to the Company
any Restricted Payment Shares or Make-Whole Payment Shares that remain after the Settlement Balance
has been reduced to zero.

     SECTION 6. Payment Shares.

     (a) The Company may only deliver Restricted Payment Shares pursuant to Section 5(a)(ii)(A)
and Make-Whole Payment Shares pursuant to Section 5(c) subject to satisfaction of the following
conditions:

     (i) all Restricted Payment Shares and Make-Whole Payment Shares shall be
delivered to the Seller (or any affiliate of the Seller designated by the Seller) pursuant
to the exemption from the registration requirements of the Securities Act provided by
Section 4(2) thereof;

     (ii) BAS, the Seller and any potential purchaser of any such shares from
the Seller (or any affiliate of the Seller designated by the Seller) identified by BAS or
the Seller shall have been afforded a commercially reasonable opportunity to conduct a due
diligence investigation with respect to the Company customary in scope for private
placements of equity securities (including, without limitation, the right to have made
available to them for inspection all financial and other records, pertinent corporate
documents and other information reasonably requested by them); and

     (iii) an agreement (a “Private Placement Agreement”) shall have been
entered into between the Company and the Seller (or any affiliate of the Seller designated
by the Seller) in connection with the private placement of such shares by the Company to
the Seller (or any such affiliate) and the private resale of such shares by the Seller (or
any such affiliate), substantially similar to private placement purchase agreements
customary for private placements of equity securities, in form and substance commercially
reasonably satisfactory to the Seller, which Private Placement Agreement shall include,
without limitation, provisions substantially similar to those contained in such private
placement purchase agreements relating to the indemnification of, and contribution in

8

 

connection with the liability of, the Seller and its affiliates, and shall provide
for the payment by the Company of all reasonable out-of-pocket fees and expenses in
connection with such resale, including all reasonable out-of-pocket fees and expenses of
counsel for the Seller, and shall contain representations, warranties and agreements of
the Company reasonably necessary or advisable to establish and maintain the availability
of an exemption from the registration requirements of the Securities Act for such resales.
For the avoidance of doubt, the Seller or an affiliate of the Seller designated by it
will enter into a Private Placement Agreement with the Company on commercially reasonable
terms.

If the Settlement Amount is less than zero and the Company has elected to deliver Restricted
Payment Shares and any of the above conditions is not satisfied as of the last Trading Day of the
Averaging Period and on each date when any Make-Whole Payment Shares are to be delivered, the
Company shall, in lieu of delivery of the Restricted Payment Shares or such Make-Whole Payment
Shares, as the case may be, make a cash payment to the Seller in immediately available funds in an
amount equal to the absolute value of the Settlement Amount or the then remaining Settlement
Balance, as the case may be, in either case on the second Settlement Day following the date when
such delivery would have otherwise been required and shall reimburse the Seller for all reasonable
out-of-pocket expenses it incurs in connection with the anticipated delivery of the Restricted
Payment Shares or the Make-Whole Payment Shares, including, without limitation, the reasonable fees
and expenses of outside counsel to the Seller incurred in connection thereof.

     (b) If the Company elects to deliver Restricted Payment Shares pursuant to Section
5(a)(ii)(A) above, the Company shall not take or cause to be taken any action that would make
unavailable either (i) the exemption set forth in Section 4(2) of the Securities Act for the sale
of any Restricted Payment Shares or Make-Whole Payment Shares by the Company to the Seller or (ii)
an exemption from the registration requirements of the Securities Act reasonably acceptable to the
Seller for resales of Restricted Payment Shares and Make-Whole Payment Shares by the Seller.

     (c) If the Settlement Amount is less than zero and the Company elects to deliver Restricted
Payment Shares pursuant to Section 5(a)(ii)(A), then, if necessary, the Company shall use its
commercially reasonable efforts to cause the number of authorized but unissued shares of Common
Stock to be increased to an amount sufficient to permit the Company to fulfill its obligations
under Section 5 above.

     (d) The Company expressly agrees and acknowledges that the Company has the ability to disclose
all material information relating to the Company.

     (e) Notwithstanding the provisions of Section 5(a) above, if the Company has elected to
deliver any Payment Shares hereunder, the Company shall not be required to deliver more than the
Maximum Deliverable Number of shares of Common Stock as Payment Shares hereunder.

     SECTION 7. Adjustment of Terms.

     (a) In the event (i) of the bankruptcy, insolvency, reorganization or recapitalization of the
Company, a Merger Event, Tender Offer, Potential Adjustment Event, the issuance of any securities
convertible or exchangeable into shares of Common Stock, or the announcement of any of the
foregoing, or (ii) the Seller determines, in its commercially reasonable discretion after using
commercially reasonable efforts to borrow Common Stock from third parties, that it is unable to
borrow Common Stock at a rebate rate greater than or equal to the Federal Funds Rate minus 50 basis
points per annum, then, in each case, the terms of the transaction (including, without limitation,
the number of Trading Days in the Averaging Period, any Daily Average Price and the

9

 

Settlement Amount) described herein shall be subject to adjustment by the Calculation Agent as
appropriate under the circumstances; provided that no adjustment pursuant to this Section 7 shall
eliminate any of the settlement methods available to the Company in Section 5.

     (b) Notwithstanding the authority provided to the Calculation Agent in subsection(a) of this
Section 7, in the event of a corporate event (such as certain reorganizations, mergers, or other
similar events) in which all holders of Common Stock may receive consideration other than the
common equity securities of the continuing or surviving entity, the adjustments referred to in such
subsection shall permit the Company to satisfy its settlement obligations hereunder by delivering
the consideration received by holders of Common Stock upon such corporate event, in such
proportions the Calculation Agent deems appropriate under the circumstances.

     SECTION 8. Governing Law; Waiver of Jury Trial.

     (a) THIS LETTER AGREEMENT SHALL BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. The parties
hereto irrevocably submit to the non-exclusive jurisdiction of the Federal and state courts located
in the Borough of Manhattan, in the City of New York in any suit or proceeding arising out of or
relating to this Letter Agreement or the transactions contemplated hereby.

     (b) EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY WITH RESPECT TO
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS LETTER AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

     SECTION 9. Assignment and Transfer.

     The rights and duties under this Letter Agreement may not be assigned or transferred by the
Company or the Seller without the prior written consent of the other party, such consent not to be
unreasonably withheld.

     SECTION 10. No Condition of Confidentiality.

     The Seller and the Company hereby acknowledge and agree that the Seller has authorized the
Company to disclose this Letter Agreement and the transactions contemplated hereby to any and all
persons, and there are no express or implied agreements, arrangements or understandings to the
contrary, and the Seller hereby waives any and all claims to any proprietary rights with respect to
this Letter Agreement and the transactions contemplated hereby, and authorizes the Company to use
any information that the Company receives or has received with respect to this Letter Agreement and
the transactions contemplated hereby in any manner.

     SECTION 11. Calculations.

     The Calculation Agent shall make all calculations and determinations in good faith, applying
commercially reasonable standards, in respect of this Letter Agreement.

     SECTION 12. Representations, Warranties and Agreements of the Company.

     The Company represents and warrants to, and agrees with, the Seller as follows:

     (a) The Company acknowledges and agrees that it is not relying, and has not relied, upon the
Seller or any affiliate of the Seller with respect to the legal, accounting, tax or other
implications of this Letter Agreement and that it has conducted its own analyses of the legal,

10

 

accounting, tax and other implications hereof. The Company further acknowledges and agrees
that neither the Seller nor any affiliate of the Seller has acted as its advisor in any capacity in
connection with this Letter Agreement or the transactions contemplated hereby. The Company is
entering into this Letter Agreement with a full understanding of all of the terms and risks hereof
(economic and otherwise), has adequate expertise in financial matters to evaluate those terms and
risks and is capable of assuming (financially and otherwise) those risks.

     (b) The Company has all corporate power and authority to enter into this Letter Agreement and
to consummate the transactions contemplated hereby. This Letter Agreement has been duly authorized
and validly executed and delivered by the Company and constitutes a valid and legally binding
obligation of the Company, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general
equitable principles.

     (c) If Payment Shares are delivered pursuant to Section 5(a)(ii), such Payment Shares, when
delivered, shall have been duly authorized and shall be duly and validly issued, fully paid and
nonassessable and free of preemptive or similar rights, and such delivery shall pass title thereto
free and clear of any liens or encumbrances.

     (d) The Company is not entering into this Letter Agreement to facilitate a distribution of the
Common Stock (or any security convertible into or exchangeable for Common Stock) or in connection
with a future issuance of securities.

     (e) The Company is not entering into this Letter Agreement to create actual or apparent
trading activity in the Common Stock (or any security convertible into or exchangeable for Common
Stock) or to raise or depress or otherwise manipulate the price of the Common Stock (or any
security convertible into or exchangeable for Common Stock).

     (f) The execution and delivery by the Company of, and the compliance by the Company with all
of the provisions of, this Letter Agreement and the consummation of the transactions herein
contemplated will not conflict with or result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan agreement or any other
agreement or instrument to which the Company or any of its subsidiaries is a party or by which the
Company or any of its subsidiaries is bound or to which any of the property or assets of the
Company or any of its subsidiaries is subject, nor will such action result in any violation of the
provisions of the Certificate of Incorporation or By-laws or other constitutive documents of the
Company or any statute or any order, rule or regulation of any court or governmental agency or body
having jurisdiction over the Company or any of its subsidiaries or any of their respective
properties.

     (g) On the Purchase Date and on each day to and including the final day of the Valuation
Period (i) the assets of the Company at their fair valuation exceed the liabilities of the Company,
including contingent liabilities, (ii) the capital of the Company is adequate to conduct the
business of the Company and (iii) the Company has the ability to pay its debts and obligations as
such debts mature and does not intend to, or does not believe that it will, incur debt beyond its
ability to pay as such debts mature.

     (h) Except as contemplated by clause (i) below, no consent, approval, authorization, order,
registration, qualification or filing of or with any court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their respective properties is
required for the execution and delivery by the Company of, and the compliance by the Company with
all the terms of, this Letter Agreement or the consummation by the Company of the transactions
contemplated hereby.

11

 

     (i) The Company has made, and shall use its best efforts during the Averaging Period and the
Valuation Period (if any) to make, all filings, if any, required to be made by it with the
Securities and Exchange Commission, any securities exchange or any other regulatory body with
respect to the transactions contemplated hereby.

     (j) As of the date hereof and as of the date, if any, that the Company elects to transfer any
Payment Shares to the Seller or for the Seller to transfer any Refund Shares to the Company, (i)
none of the Company and its executive officers and directors is, or will be, as the case may be,
aware of any material nonpublic information regarding the Company or the Common Stock and (ii) all
reports and other documents filed by the Company with the Securities and Exchange Commission
pursuant to the Exchange Act when considered as a whole (with the more recent such reports and
documents deemed to amend inconsistent statements contained in any earlier such reports and
documents), do not or will not, as the case may be, contain any untrue statement of a material fact
or any omission of a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances in which they were made, not misleading.

     (k) The Company has publicly disclosed on May 1, 2007 its intention to institute a program for
the acquisition of shares of Common Stock.

     (l) In the event that the Seller or the Calculation Agent or any of their affiliates becomes
involved in any capacity in any action, proceeding or investigation brought by or against any
person in connection with the transactions by the Company contemplated by this Letter Agreement,
the Company shall reimburse the Seller or the Calculation Agent or such affiliate for its
reasonable legal and other out-of-pocket expenses (including the cost of any investigation and
preparation) incurred in connection therewith within 30 days of receipt of notice of such expenses,
and shall indemnify and hold the Seller or the Calculation Agent or such affiliate harmless on an
after-tax basis against any losses, claims, damages or liabilities to which the Seller or the
Calculation Agent or such affiliate may become subject in connection with any such action,
proceeding or investigation, except to the extent that any such expenses, losses, claims, damages
or liabilities result from the negligence, willful misconduct, bad faith or breach by the Seller or
the Calculation Agent of any of the representations, warranties, covenants or agreements hereunder.
If for any reason the foregoing indemnification is unavailable to the Seller or the Calculation
Agent or such affiliate or insufficient to hold it harmless, then the Company shall contribute to
the amount paid or payable by the Seller or the Calculation Agent or such affiliate as a result of
such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and the Seller or the Calculation Agent
or such affiliate on the other hand in the matters contemplated by this Letter Agreement or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits received by the Company on the one hand
and the Seller or the Calculation Agent or such affiliate on the other hand in the matters
contemplated by this Letter Agreement but also the relative fault of the Company and the Seller or
the Calculation Agent or such affiliate with respect to such losses, claims, damages or liabilities
and any other relevant equitable considerations. The relative benefits received by the Company, on
the one hand, and the Seller or the Calculation Agent or such affiliate, on the other hand, shall
be in the same proportion as the Purchase Price bears to any fees paid to Seller hereunder. The
reimbursement, indemnity and contribution obligations of the Company under this Section 12(l)
shall be in addition to any liability that the Company may otherwise have, shall extend upon the
same terms and conditions to the partners, directors, officers, agents, employees and controlling
persons (if any), as the case may be, of the Seller or the Calculation Agent and their affiliates
and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal
representatives of the Company, the Seller or the Calculation Agent, any such affiliate and any
such person. The Company also agrees that neither the Seller, the Calculation Agent nor any of
such affiliates, partners, directors, officers, agents, employees or controlling persons shall have

12

 

any liability to the Company for or in connection with any matter referred to in this Letter
Agreement except to the extent that any losses, claims, damages, liabilities or expenses incurred
by the Company result from the gross negligence, willful misconduct or bad faith of the Seller or
the Calculation Agent or a breach by the Seller or the Calculation Agent of any of its covenants or
obligations hereunder. The foregoing provisions shall survive any termination or completion of
this Letter Agreement.

     (m) For the avoidance of doubt, the parties agree that the commissions incorporated in the
definitions of Share Amount and Restricted Share Value and in Section 5(c) above are commercially
reasonable fees for BAS’s activities in connection with Settlement under Section 5.

     (n) The parties hereto agree and acknowledge that the Seller is a “financial institution,”
“swap participant” and “financial participant” within the meaning of Sections 101(22), 101(53C)
and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The parties hereto
further agree and acknowledge that (A) this Letter Agreement is (i) a “securities contract,” as
such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment
and delivery hereunder or in connection herewith is a “settlement payment” within the meaning of
Sections 362 and 546 of the Bankruptcy Code and (ii) a “swap agreement,” as such term is defined in
Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder
or in connection herewith is a “transfer” and a “payment or other transfer of property” within the
meaning of Sections 362 and 546 of the Bankruptcy Code, and (B) the Seller is entitled to the
protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e),
546(g), 555, 560 and 561 of the Bankruptcy Code.

     (o) On each date on which the Company pays an ordinary cash dividend to holders of Common
Stock for which the record date falls within the Averaging Period, the Company shall pay to the
Seller, by wire transfer of immediately available U.S. dollars, an amount equal to the product of
(i) $0.11 and (ii) the Seller’s Short Position for the third Trading Day immediately preceding the
record date for such ordinary cash dividend.

     (p) The Company shall not, without the prior consent of the Seller, (i) increase the amount
per share or frequency of its ordinary cash dividend on the Common Stock, or (ii) declare any
dividend other than an ordinary cash dividend on the Common Stock, in either case that affects any
dividend for which the ex-dividend date occurs from and including the date of this Letter Agreement
through and including the last day of the Averaging Period.

     SECTION 13. Representations, Warranties and Agreements of the Seller.

     The Seller represents and warrants to, and agrees with, the Company as follows:

     (a) The Seller acknowledges and agrees that it is not relying, and has not relied, upon the
Company or any affiliate of the Company with respect to the legal, accounting, tax or other
implications of this Letter Agreement and that it has conducted its own analyses of the legal,
accounting, tax and other implications hereof. The Seller further acknowledges and agrees that
neither the Company nor any affiliate of the Company has acted as its advisor in any capacity in
connection with this Letter Agreement or the transactions contemplated hereby. The Seller is
entering into this Letter Agreement with a full understanding of all of the terms and risks hereof
(economic and otherwise), has adequate expertise in financial matters to evaluate those terms and
risks and is capable of assuming (financially and otherwise) those risks.

     (b) The Seller has all corporate power and authority to enter into this Letter Agreement and
to consummate the transactions contemplated hereby. This Letter Agreement has been duly authorized
and validly executed and delivered by the Seller and constitutes a valid and

13

 

legally binding obligation of the Seller, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to
general equitable principles.

     (c) The execution and delivery by the Seller of, and the compliance by the Seller with all of
the provisions of, this Letter Agreement and the consummation of the transactions herein
contemplated will not conflict with or result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan agreement or any other
agreement or instrument to which the Seller or any of its subsidiaries is a party or by which the
Seller or any of its subsidiaries is bound or to which any of the property or assets of the Seller
or any of its subsidiaries is subject, nor will such action result in any violation of the
provisions of the constitutive documents of the Seller or any statute or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over the Seller or any
of its subsidiaries or any of their respective properties.

     (d) No consent, approval, authorization, order, registration, qualification or filing of or
with any court or governmental agency or body having jurisdiction over the Seller or any of its
subsidiaries or any of their respective properties is required for the execution and delivery by
the Seller of, and the compliance by the Seller with all the terms of, this Letter Agreement or the
consummation by the Seller of the transactions contemplated hereby.

     SECTION 14. Acknowledgments and Agreements With Respect To Hedging and Market Activity.

     (a) The Company acknowledges and agrees that:

     (i) During the Averaging Period and, if applicable, the Valuation Period, the Seller
and its affiliates may buy or sell shares of Common Stock or other securities or buy or
sell options or futures contracts or enter into swaps or other derivative securities in
order to adjust its hedge position with respect to the transactions contemplated by this
Letter Agreement;

     (ii) The Seller and its affiliates also may be active in the market for the Common
Stock other than in connection with hedging activities in relation to the transactions
contemplated by this Letter Agreement;

     (iii) The Seller shall make its own determination as to whether, when or in what
manner any hedging or market activities in the Company’s securities shall be conducted and
shall do so in a manner that it deems appropriate to hedge its price and market risk with
respect to the Daily Average Price and Reported VWAP; and

     (iv) Any market activities of the Seller and its affiliates with respect to the
Common Stock may affect the market price and volatility of the Common Stock, as well as
the Daily Average Price and Reported VWAP, each in a manner that may be adverse to the
Company.

     (b) Each of the Company and the Seller agrees that Non-Reliance as set forth in Section 13.1
of the ISDA Definitions, Agreements and Acknowledgments Regarding Hedging Activities as set forth
in Section 13.2 of the ISDA Definitions and Additional Acknowledgments as set forth in Section 13.4
of the ISDA Definitions shall be deemed to be Applicable to the transactions contemplated by this
Letter Agreement as if this Letter Agreement were a confirmation that was governed by, and
incorporated, such Sections of the ISDA Definitions.

14

 

     SECTION 15. Notices.

     Unless otherwise specified, notices under this contract may be made by telephone, to be
confirmed in writing to the address below. Changes to the notice information below must be made in
writing.

			
	     (a)	 	If to the Company:

Harris Corporation

1025 West NASA Blvd

Melbourne, Florida 32919

Attn: Charles J. Greene

Telephone: (321) 727-9268

Facsimile: (321) 727-9648

with a copy to:

Harris Corporation

1025 West NASA Blvd

Melbourne, Florida 32919

Attn: Scott T. Mikuen, Esq.

Telephone: (321) 727-9125

Facsimile: (321) 727-9222

			
	     (b)	 	If to the Seller:

Bank of America, N.A.

c/o Banc of America Securities LLC

9 West 57th Street, 40th Floor

New York, NY 10019

Attn: John Servidio

Telephone: 212-847-6527

Facsimile: 212-230-8610

     SECTION 16. Designation of Affiliate for Transactions in Common Stock.

     The Seller may designate any of its affiliates (the “Designee”) to deliver or take delivery,
as the case may be, and otherwise perform its obligations to deliver or take delivery of, as the
case may be, any shares of Common Stock in respect of the transactions contemplated by this Letter
Agreement, and the Designee may assume such obligations and the obligations of the Seller under
this Letter Agreement with respect to such shares of Common Stock. Such designation shall not
relieve the Seller of any of its obligations hereunder. Notwithstanding the previous sentence, if
the Designee shall have performed the obligations of the Seller hereunder, then the Seller shall be
discharged of its obligations to the Company to the extent of such performance. In addition, the
parties acknowledge and agree that every time that the Seller is described in this Letter Agreement
as buying, selling or otherwise transacting with third parties in the Common Stock, such buying,
selling or transacting may be conducted by the Seller or one or more of its affiliates.

     SECTION 17. Equity Rights.

     The Seller acknowledges and agrees that this Letter Agreement is not intended to convey to it
rights with respect to this transaction that are senior to the claims of common stockholders in
the event of the Company’s bankruptcy. For the avoidance of doubt, the parties agree that the
preceding sentence shall not apply at any time other than during the Company’s bankruptcy to any
claim arising as a result of a breach by the Company of any of its obligations under this Letter
Agreement. For the avoidance of doubt, the parties acknowledge that this Letter Agreement is not
secured by any collateral that would otherwise secure the obligations of the Company herein under
or pursuant to any other agreement.

15

 

     Please confirm your agreement to the foregoing by signing and returning to Jake Mendelsohn via
facsimile at 415-835-2514 the enclosed duplicate of this Letter Agreement.

	 	 	 	 	 
	 	Very truly yours,

BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Christopher Hutmaker
 	 
	 	 	Name:  	Christopher Hutmaker 	 
	 	 	Title:  	Principal 	 
	 

Acknowledged and agreed to as of

the date first above written,

	 	 	 	 	 
	HARRIS CORPORATION

 	 
	By:  	/s/ Charles J. Greene
 	 
	 	Name:  	Charles J. Greene 	 
	 	Title:  	Vice President — Tax and Treasurer 	 

16

 

	 	 	 	 	 

APPENDIX A

[Date]

Harris Corporation

1025 West NASA Blvd

Melbourne, Florida 32919

          Re:       Enhanced Overnight Share Repurchase

Ladies and Gentlemen:

     Reference is made to the Enhanced Overnight Share Repurchase Letter Agreement between you and
Bank of America, N.A. dated as of May 8, 2007 (the “Agreement”). Capitalized terms used without
definition in this letter have the definitions assigned to them in the Agreement.

     In accordance with Section 4 of the Agreement, the Seller agrees that Company may purchase
shares of Common Stock during the Averaging Period subject to the following procedures:

     (i) all such purchases will be made by Banc of America Securities LLC (“BAS”) in
accordance with Rule 10b-18(b) or otherwise in a manner that Company and BAS believe is in
compliance with applicable requirements;

     (ii) each purchase order Company places with BAS will be an all or nothing order to
purchase a minimum of 10,000 shares;

     (iii) Company will pay to BAS a $0.025 per share commission for each share of Common
Stock purchased; and

     (iv)
Company agrees that, in purchasing shares of Common Stock, BAS may purchase shares of Common Stock for the account of the Seller, which is an affiliate of BAS, other
than any single block of 10,000 or more shares of Common Stock, without your prior
consent; you acknowledge that, because any orders you place pursuant to the above
procedures will be all or nothing orders, other orders to purchase Common Stock (including
orders placed by the Seller or BAS) may reduce the number of shares of Common Stock
available for purchase and may therefore impact your ability to obtain execution of any
such all or nothing orders.

 

 

     We may terminate this letter agreement upon the effectiveness of any change in applicable law
or regulation that would cause the procedures set forth herein to impede our ability to execute
appropriate trading transactions in relation to our obligations under the Agreement (including,
without limitation, Section 3(a) of the Agreement) in a manner consistent with applicable law and
regulation.

     Please indicate your agreement to, and acknowledgment of, the above by signing and returning
to us a copy of this letter.

	 	 	 	 	 
	 	Very truly yours,

BANC OF AMERICA SECURITIES LLC

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and agreed to as of

the date first above written,

	 	 	 	 	 
	HARRIS CORPORATION

 	 
	By:  	/s/
 	 
	 	Name:  	 	 
	 	Title:  	 	 

 

 

	 	 	 	 	 

APPENDIX B

[Company Letterhead]

Bank of America, N.A.

c/o Banc of America Securities LLC

9 W. 57th Street

New York, New York 10019

Attn:

          Re:     Enhanced Overnight Share Repurchase

Ladies and Gentlemen:

     In connection with our entry into an Enhanced Overnight Share Repurchase Letter Agreement
dated as of May 8, 2007 (the “Agreement”), we hereby represent that set forth below is the total
number of shares of our common stock purchased by or for us or any of our affiliated purchasers in
Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception contained in Rule
10b-18(b)(4) (all defined in Rule 10b-18 under the Securities Exchange Act of 1934, as amended)
during the four full calendar weeks immediately preceding the first day of the Averaging Period (as
defined in the Agreement) and the week during which the first day of the Averaging Period occurs:

	 	 	 	 	 	 	 	 	 
	 	 	Monday’s	 	Friday’s	 	Share
	 	 	Date	 	Date	 	Number
	Week 4:

	 	April 9, 2007
	 	April 13, 2007
	 	 	0	 
	Week 3:

	 	April 16, 2007
	 	April 20, 2007
	 	 	0	 
	Week 2:

	 	April 23, 2007
	 	April 27, 2007
	 	 	0	 
	Week 1:

	 	April 30, 2007
	 	May 4, 2007
	 	 	0	 
	Current Week:

	 	May 7, 2007
	 	May 11, 2007
	 	 	0	 

     We understand that you will use this information in calculating trading volume for purposes of
Rule 10b-18.

	 	 	 	 	 
	 	Very truly yours,

HARRIS CORPORATION

 	 
	 	By:  	/s/ John Draheim
 	 
	 	 	Name:  	John Draheim 	 
	 	 	Title:  	Vice President Financial Services 	 

 

 

	 	 	 	 	 

ANNEX A

Dmitry Genkin

Sean Groenewald

François Lu

Soo-il Lee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]