Document:

exv10w1

EXHIBIT 10.1

EXECUTION VERSION

AMENDMENT NO. 2 TO CREDIT AGREEMENT

     This Amendment (this “Amendment”) is made as of March 25, 2011 by and among Molex
Incorporated, a Delaware corporation (the “Company”), JPMorgan Chase Bank, N. A., individually and
as administrative agent (the “Administrative Agent”), and the other financial institutions
signatory hereto.

R E C I T A L S:

     A. The Company, the Subsidiary Borrowers party thereto, the Administrative Agent and the
Lenders are party to that certain Credit Agreement dated as of June 24, 2009 (as amended, restated,
supplemented or otherwise modified from time to time prior to the date hereof, the “Credit
Agreement”). Unless otherwise specified herein, capitalized terms used in this Amendment shall
have the meanings ascribed to them by the Credit Agreement.

     B. The Company, the Administrative Agent and each of the Lenders wish to amend the Credit
Agreement on the terms and conditions set forth below.

     Now, therefore, in consideration of the mutual execution hereof and other good and valuable
consideration, the parties hereto agree as follows:

          1. Amendment to Credit Agreement. Upon the Second Amendment Effective Date (as
defined below), the Credit Agreement is amended to effect all modifications thereto reflected in
Exhibit A hereto, including all Exhibits and Schedules thereto.

          2. Certain Payments. Each Lender hereby agrees that notwithstanding anything to the
contrary in the Credit Agreement, including Section 2.18, the Borrowers may make the payments of
principal, interest and fees on a non-ratable basis among the Lenders as contemplated by Section
4(g) hereof.

          3. Representations and Warranties of the Company. The Company represents and warrants
that:

          (a) The execution, delivery and performance by the Company of this Amendment have been
duly authorized by all necessary corporate action and that this Amendment and the Credit
Agreement as amended hereby (the “Amended Credit Agreement”) are legal, valid and binding
obligations of the Company enforceable against the Company in accordance with their
respective terms, except as the enforcement thereof may be subject to the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors’ rights generally;

          (b) Each of the representations and warranties contained in the Credit Agreement
(treating this Amendment as a Credit Document for purposes thereof) is true and correct in
all material respects (except that any representation

 

 

or warranty which is already qualified as to materiality or by reference to Material
Adverse Effect shall be true and correct in all respects) on and as of the date hereof as
if made on the date hereof (except any such representation or warranty that expressly
relates to or is made expressly as of a specific earlier date, in which case such
representation or warranty shall be true and correct in all material respects (except that
any representation or warranty which is already qualified as to materiality or by reference
to Material Adverse Effect shall be true and correct in all respects) with respect to or as
of such specific earlier date); and

          (c) No Default has occurred and is continuing.

          4. Effective Date. This Amendment shall become effective on the date (the “Second
Amendment Effective Date”) on which each of the following conditions has been satisfied:

          (a) the execution and delivery hereof by the Company, the Administrative Agent and
each Lender;

          (b) the execution and delivery by the Company and each of the Subsidiary Guarantors of
a Reaffirmation of Guaranty substantially in the form of Exhibit B hereto;

          (c) the Administrative Agent shall have received a favorable written opinion
(addressed to the Administrative Agent and the Lenders and dated the Second Amendment
Effective Date) of Mayer Brown LLP, special counsel for the Borrowers, and of Tokyo Aoyama
Aoki Koma Law Office Baker & McKenzie GJBJ, special Japanese counsel for Molex Japan, in
each case in form and substance reasonably satisfactory to the Administrative Agent and
covering such matters relating to the Borrowers, this Amendment, the Amended Credit
Agreement, the Designation Letter referenced below and the transactions contemplated hereby
and thereby as the Administrative Agent shall reasonably request (and the Company hereby
requests such counsel to deliver such opinions);

          (d) the Administrative Agent shall have received such documents and certificates as
the Administrative Agent or its counsel may reasonably request relating to the
organization, existence and, to the extent such concept is applicable, good standing of the
Company and Molex Japan, the authorization of this Amendment, the Amended Credit Agreement,
the Designation Letter referenced below and the transactions contemplated hereby and
thereby and any other legal matters relating to the Company and Molex Japan, this
Amendment, the Amended Credit Agreement or the transactions contemplated hereby or thereby,
all in form and substance reasonably satisfactory to the Administrative Agent and its
counsel;

          (e) the Administrative Agent and the Lenders shall have received all fees and other
amounts due and payable on or prior to the Second Amendment Effective Date, including, to
the extent invoiced, reimbursement or

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payment of all out of pocket expenses required to be reimbursed or paid by the Company
under the Credit Agreement;

          (f) the Administrative Agent shall have received copies of all Governmental Authority
and third party approvals necessary or, in the reasonable discretion of the Administrative
Agent, advisable in connection with this Amendment and the transactions contemplated hereby
and the continuing operations of the Company and its Subsidiaries;

          (g) on the Second Amendment Effective Date, the Company shall have (i) borrowed and
prepaid Loans so that each Lender has a pro rata share (after giving effect to this
Amendment and such borrowings and prepayments) of each Borrowing (and, as applicable, the
Company shall have paid any related breakage costs and/or otherwise compensated the Lenders
for funding losses related to new Loans or the repayment of old Loans);

          (h) the Administrative Agent shall have received a Designation Letter for Molex Japan;

          (i) the Lenders shall have received (i) satisfactory audited consolidated financial
statements of the Company for the fiscal years ended June 30, 2009 and June 30, 2010 and
(ii) satisfactory unaudited interim consolidated financial statements of the Company for
each quarterly period ended subsequent to June 30, 2010; provided, that any such
financial statements shall be deemed to have been delivered if such financial statements,
or one or more annual or quarterly reports containing such information, shall have been
posted by the Administrative Agent on an IntraLinks or similar site to which the Lenders
have been granted access or such reports shall be available on the website of the
Securities and Exchange Commission at http://www.sec.gov or on the Company’s website at
http://www.molex.com and the Company has given notice that such reports are so available
(and the Company hereby gives such notice); and

          (j) the Lenders shall have received such other documents and instruments as are
customary for transactions of this type or as they may reasonably request.

          In the event the Second Amendment Effective Date has not occurred on or before March 30, 2011,
this Amendment shall not become operative and shall be of no force or effect.

          5. Miscellaneous.

          (a) Except as specifically amended or waived above, the Credit Agreement and the other
Credit Documents shall remain in full force and effect and are hereby ratified and
confirmed.

          (b) The execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the

3

 

Administrative Agent or any Lender under the Credit Agreement or any Credit Document,
or constitute a waiver of any provision of the Credit Agreement or any Credit Document,
except as specifically set forth herein. Upon the effectiveness of this Amendment, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or
words of similar import shall mean and be a reference to the Credit Agreement as amended
hereby.

          (c) Section headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purposes.

          (d) This Amendment may be executed in any number of counterparts, each of which when
so executed shall be deemed an original but all such counterparts shall constitute one and
the same instrument. Delivery of an executed signature page of this Amendment by facsimile
transmission or other electronic transmission shall be effective as delivery of manually
executed counterpart hereof.

          6. Costs and Expenses. The Company hereby affirms its obligation under Section 9.03
of the Credit Agreement to reimburse the Administrative Agent for all reasonable and documented
out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation,
negotiation, execution and delivery of this Amendment, including but not limited to the reasonable
and documented fees, charges and disbursements of attorneys for the Administrative Agent with
respect thereto.

          7. Governing Law. This Amendment shall be construed in accordance with and governed
by the law of the State of Illinois.

[signature pages follow]

4

 

          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first
above written.

	 	 	 	 	 
	 	MOLEX INCORPORATED

 	 
	 	By:  	 	 
	 	 	Its: 	 	 
	 	 	 	 

Signature page to Molex Amendment

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N. A.,

individually and as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Its: 	 	 
	 	 	 	 

Signature page to Molex Amendment

 

 

	 	 	 	 	 
	 	[LENDERS]

 	 
	 	By:  	 	 
	 	 	Its: 	 	 
	 	 	 	 

Signature page to Molex Amendment

 

 

EXHIBIT A

CREDIT AGREEMENT

See Attached.

 

 

EXHIBIT B

REAFFIRMATION OF GUARANTY

          Each of the undersigned (a) acknowledges receipt of a copy of Amendment No. 2 to Credit
Agreement (the “Amendment”), amending the Credit Agreement dated as of June 24, 2009 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), (b)
consents to the Amendment and each of the transactions referenced therein, (c) hereby reaffirms its
obligations, as applicable, under the Parent Guaranty and the Subsidiary Guaranty and (d) agrees
that all references in any Credit Document to the “Credit Agreement” shall hereafter mean and be a
reference to the Credit Agreement as amended by the Amendment. Capitalized terms used herein, but
not otherwise defined herein, shall have the meanings ascribed to such terms in the Credit
Agreement.

Dated as of March __, 2011

	 	 	 	 	 
	 	MOLEX INCORPORATED

 	 
	 	By:  	 	 
	 	 	Its: 	 	 
	 	 	 	 
	 
	 	[SUBSIDIARY GUARANTORS]

 	 
	 	By:  	 	 
	 	 	Its: 	 	 
	 	 	 	 
	 

 

 

EXECUTION VERSION

EXHIBIT A TO AMENDMENT NO. 2

 

CREDIT AGREEMENT

dated as of

June 24, 2009

among

MOLEX INCORPORATED,

The Subsidiary Borrowers Party Hereto,

The Lenders Party Hereto,

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

STANDARD CHARTERED BANK,

as Syndication Agent,

and

THE NORTHERN TRUST COMPANY,

as Documentation Agent

__________________________

J.P. MORGAN SECURITIES LLC,

as Co-Lead Arranger and Sole Bookrunner

and

STANDARD CHARTERED BANK,

as Co-Lead Arranger

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions
	 	 	1	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	20	 
	SECTION 1.03. Terms Generally
	 	 	20	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	21	 
	SECTION 1.05. Foreign Currency Calculations
	 	 	21	 
	 
	 	 	 	 
	ARTICLE II The Credits
	 	 	21	 
	SECTION 2.01. Commitments
	 	 	21	 
	SECTION 2.02. Loans and Borrowings
	 	 	22	 
	SECTION 2.03. Requests for Revolving Borrowings
	 	 	23	 
	SECTION 2.04. Effect of Incomplete Borrowing Notice
	 	 	23	 
	SECTION 2.05. Swingline Loans
	 	 	24	 
	SECTION 2.06. Letters of Credit
	 	 	25	 
	SECTION 2.07. Funding of Borrowings
	 	 	29	 
	SECTION 2.08. Interest Elections
	 	 	30	 
	SECTION 2.09. Termination, Reduction and Increase of Commitments
	 	 	31	 
	SECTION 2.10. Repayment of Loans; Evidence of Debt
	 	 	32	 
	SECTION 2.11. Prepayment of Loans
	 	 	33	 
	SECTION 2.12. Fees
	 	 	34	 
	SECTION 2.13. Interest
	 	 	35	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	36	 
	SECTION 2.15. Increased Costs
	 	 	36	 
	SECTION 2.16. Break Funding Payments
	 	 	37	 
	SECTION 2.17. Taxes
	 	 	38	 
	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	41	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	43	 
	SECTION 2.20. Subsidiary Borrowers
	 	 	44	 
	SECTION 2.21. Additional Reserve Costs
	 	 	45	 
	SECTION 2.22. Defaulting Lenders
	 	 	45	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties
	 	 	47	 
	SECTION 3.01. Organization; Powers
	 	 	47	 
	SECTION 3.02. Authorization; Enforceability
	 	 	47	 
	SECTION 3.03. Governmental Approvals; No Conflicts
	 	 	47	 
	SECTION 3.04. Financial Condition; No Material Adverse Change
	 	 	47	 
	SECTION 3.05. Properties
	 	 	48	 
	SECTION 3.06. Litigation and Environmental Matters
	 	 	48	 
	SECTION 3.07. Compliance with Organizational Documents and Laws
	 	 	48	 
	SECTION 3.08. Investment Company Status
	 	 	49	 
	SECTION 3.09. Taxes
	 	 	49	 
	SECTION 3.10. ERISA
	 	 	49	 
	SECTION 3.11. Disclosure
	 	 	49	 

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	 	 	Page	 
	SECTION 3.12. Foreign Pension Plans
	 	 	49	 
	SECTION 3.13. Subsidiaries
	 	 	50	 
	SECTION 3.14. Environmental Matters
	 	 	50	 
	SECTION 3.15. Regulation U
	 	 	50	 
	 
	 	 	 	 
	ARTICLE IV Conditions
	 	 	50	 
	SECTION 4.01. Effective Date
	 	 	50	 
	SECTION 4.02. Each Credit Event
	 	 	52	 
	 
	 	 	 	 
	ARTICLE V Affirmative Covenants
	 	 	52	 
	SECTION 5.01. Financial Statements; Ratings Changes and Other Information
	 	 	53	 
	SECTION 5.02. Notices of Material Events
	 	 	54	 
	SECTION 5.03. Existence; Conduct of Business
	 	 	54	 
	SECTION 5.04. Payment of Obligations
	 	 	54	 
	SECTION 5.05. Maintenance of Properties; Insurance
	 	 	55	 
	SECTION 5.06. Books and Records; Inspection Rights
	 	 	55	 
	SECTION 5.07. Compliance with Laws
	 	 	55	 
	SECTION 5.08. Use of Proceeds and Letters of Credit
	 	 	55	 
	SECTION 5.09. Additional Guarantors.
	 	 	55	 
	 
	 	 	 	 
	ARTICLE VI Negative Covenants
	 	 	56	 
	SECTION 6.01. Indebtedness
	 	 	56	 
	SECTION 6.02. Liens
	 	 	57	 
	SECTION 6.03. Fundamental Changes
	 	 	58	 
	SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	59	 
	SECTION 6.05. Swap Agreements
	 	 	61	 
	SECTION 6.06. Restricted Payments
	 	 	61	 
	SECTION 6.07. Transactions with Affiliates
	 	 	61	 
	SECTION 6.08. Restrictive Agreements
	 	 	62	 
	SECTION 6.09. Minimum Fixed Charge Coverage Ratio
	 	 	62	 
	SECTION 6.10. Maximum Leverage Ratio
	 	 	62	 
	SECTION 6.11. Fiscal Year
	 	 	62	 
	SECTION 6.12. Subordinated Indebtedness; Other Indebtedness and Payments
	 	 	62	 
	 
	 	 	 	 
	ARTICLE VII Events of Default
	 	 	62	 
	 
	 	 	 	 
	ARTICLE VIII The Administrative Agent
	 	 	65	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	67	 
	SECTION 9.01. Notices
	 	 	67	 
	SECTION 9.02. Waivers; Amendments
	 	 	68	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	69	 
	SECTION 9.04. Successors and Assigns
	 	 	70	 
	SECTION 9.05. Survival
	 	 	74	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	74	 
	SECTION 9.07. Severability
	 	 	74	 
	SECTION 9.08. Right of Setoff
	 	 	75	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	75	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	75	 
	SECTION 9.11. Headings
	 	 	76	 
	SECTION 9.12. Confidentiality
	 	 	76	 
	SECTION 9.13. Interest Rate Limitation
	 	 	77	 
	SECTION 9.14. USA PATRIOT Act
	 	 	77	 
	SECTION 9.15. Conversion of Currencies
	 	 	77	 
	SECTION 9.16. Appointment
	 	 	78	 
	SECTION 9.17. Termination of Bilateral Lines of Credit
	 	 	78	 

SCHEDULES:

Schedule 1.01 — Pricing Schedule

Schedule 2.01 — Commitments

Schedule 3.13 — Subsidiaries

Schedule 6.01 — Existing Indebtedness

Schedule 6.02 — Existing Liens

Schedule 6.04 — Existing Investments

Schedule 6.08 — Existing Restrictions

EXHIBITS:

Exhibit A — Form of Assignment and Assumption

Exhibit B — Form of Designation Letter

Exhibit C — Form of Termination Letter

Exhibit D — Mandatory Costs Rate

Exhibit E — Form of U.S. Tax Certificate

iii

 

          CREDIT AGREEMENT dated as of June 24, 2009, among MOLEX INCORPORATED, the Subsidiary
Borrowers party hereto, the Lenders party hereto, and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as
Administrative Agent.

          The parties hereto agree as follows:

ARTICLE I

Definitions

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

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

          “Acquired Entity or Business” means either (a) the assets constituting a business,
division, facility, product line or line of business of any Person not already a Subsidiary or (b)
all or a portion of the capital stock of any such Person, which Person shall, as a result of an
acquisition or merger, become a Subsidiary of the Company (or shall be merged with the Company or a
Subsidiary, provided that the Company shall be the surviving Person of any merger involving the
Company and a Subsidiary shall be the surviving Person of any other such merger).

          “Administrative Agent” means JPMorgan, in its capacity as administrative agent for the
Lenders hereunder.

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

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

          “Agreement” means this Credit Agreement.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1% and (c) the Eurocurrency Rate for deposits in Dollars for a one month
Interest Period on such day (or if such day is not a Business Day, the immediately preceding
Business Day) plus 1%, provided that, for the avoidance of doubt, the Eurocurrency
Rate for any Business Day shall be based on the rate appearing on the Reuters Screen LIBOR01 Page 1
(or on any successor or substitute page of such page) at approximately 11:00 a.m. London time on
such day. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal
Funds Effective Rate or the Eurocurrency Rate shall be effective from and including the effective
date of such change in the Prime Rate, the Federal Funds Effective Rate or the Eurocurrency Rate,
respectively.

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          “Applicable Borrower” means, with respect to any Loan or any other amount payable
hereunder or any Letter of Credit, the Borrower that is the primary obligor on such Loan or other
amount or that is the account party with respect to such Letter of Credit.

          “Applicable Lending Installation” has the meaning set forth in Section 2.02(e).

          “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment; provided that, solely for purposes of
Section 2.22, when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the
percentage of the total Commitments (disregarding any Defaulting Lender’s Commitment) represented
by such Lender’s Commitment. If the Commitments have terminated or expired, the Applicable
Percentages shall be determined based upon the Commitments most recently in effect, giving effect
to any assignments and to any Lender’s status as a Defaulting Lender at the time of determination.

          “Applicable Rate” means, for any day, with respect to any ABR or Eurocurrency Loan or
with respect to the commitment fees payable hereunder, the applicable rate per annum set forth on
Schedule 1.01 under the caption “Eurocurrency Spread”, “ABR Spread” or “Commitment Fee
Rate”, as the case may be, based upon the Leverage Ratio.

          “Asset Disposition” means any sale, transfer or other disposition of any asset of the
Company or any Subsidiary in a single transaction or in a series of related transactions (other
than (a) the sale or lease of inventory or products in the ordinary course or the sale of obsolete
or worn out property in the ordinary course and (b) the sale of Permitted Investments in the
ordinary course of business).

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form
approved by the Administrative Agent.

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

          “Available Cash” means, without duplication, the cash deposit balances and cash
equivalents of the Company and its Subsidiaries, in each case only to the extent that such balances
and cash equivalents are unrestricted and unencumbered; provided, however, that in
no event shall the cash deposit balances or cash equivalents of any Subsidiary constitute Available
Cash to the extent that such Subsidiary or any direct or indirect parent of such Subsidiary would
be prohibited by applicable law, by its formation documents, by contract or otherwise from
transferring such cash deposit balances or cash equivalents (whether in the form of a loan or a
dividend or distribution or any combination thereof) to the Company or an intermediate parent
entity. For the avoidance of doubt, all Permitted Investments shall be considered cash equivalents
for purposes of this definition.

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

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          “Borrower” means the Company or a Subsidiary Borrower, as the context requires, and
“Borrowers” means the Company and the Subsidiary Borrowers collectively.

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

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

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, (a) when used in connection with a Eurocurrency Loan, the term “Business
Day” shall mean any day on which banks are generally open in London for the conduct of
substantially all of their commercial lending activities and, in the case of Eurocurrency Loans
denominated in Euros, for the sale and purchase of Euros which is also a day on which the TARGET
(Trans-European Automated Real-Time Gross Settlement Express Transfer) payment system is open for
settlement of payment in Euros and (b) when used in relation to any funding, disbursement,
settlement or payment in a currency other than Dollars or Euros, the term “Business Day” shall mean
any such day on which banks are also open for foreign exchange business in the principal financial
center of the country of such currency.

          “Canadian Dollars” and “Cdn$” mean the lawful currency of Canada.

          “Capital Expenditures” means, for any period, (a) all expenditures during such period
for the purchase or other acquisition of assets that should be included in “property, plant and
equipment” or in a similar fixed asset account on a consolidated balance sheet of the Company and
its Subsidiaries prepared in accordance with GAAP minus (b) the sum, without duplication,
of (1) expenditures during such period made in connection with the replacement, substitution or
restoration of fixed assets to the extent financed (i) from insurance proceeds (or other similar
recoveries) paid on account of the loss of or damage to the assets being replaced or restored or
(ii) with awards of compensation arising from the taking by eminent domain or condemnation of the
assets being replaced and (2) up to $15,000,000 in cash proceeds from other dispositions (other
than in Sale and Leaseback Transactions) of fixed assets during such period.

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

          “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof), other than Permitted Holders (as defined below), of Equity Interests representing
more than 30% of the aggregate ordinary voting power represented by the issued

3

 

and outstanding Equity Interests of the Company; (b) occupation of a majority of the seats
(other than vacant seats) on the board of directors of the Company by Persons who were neither (i)
nominated by the board of directors of the Company nor (ii) appointed by directors so nominated; or
(c) the acquisition of direct or indirect Control of the Company by any Person or group other than
Permitted Holders. For purposes of the foregoing, “Permitted Holders” means any descendant
of Frederick August Krehbiel (deceased), any spouse of such a descendant, any trust solely for the
benefit of one or more of the foregoing and any partnership or other entity Controlled by any of
the foregoing.

          “Change in Law” means the occurrence, after the date of this Agreement (or with
respect to any Lender, if later, the date on which such Lender becomes a Lender), of any of the
following: (a) the adoption of any law, rule, regulation or treaty, (b) any change in any law,
rule, regulation or treaty or in the interpretation or application thereof by any Governmental
Authority or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(b),
by any lending office of such Lender or by such Lender’s or Issuing Bank’s holding company, if any)
with any request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement; provided that
notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection
therewith shall in each case be deemed to be a “Change in Law”, regardless of the date enacted,
adopted or issued.

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

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

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced or increased from time to time pursuant
to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to
such Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth
on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall
have assumed its Commitment, as applicable. The aggregate amount of the Lenders’ Commitments as of
the Second Amendment Effective Date is $350,000,000.

          “Company” means Molex Incorporated, a Delaware corporation.

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

          “Credit Documents” means this Agreement and, after the execution and delivery thereof
pursuant to the terms of this Agreement, each promissory note, if any, delivered pursuant

4

 

to Section 2.10(e), each Letter of Credit, the Subsidiary Guaranty, the Parent Guaranty and
each amendment hereof.

          “Credit Parties” means the Borrowers and each Subsidiary Guarantor.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Defaulting Lender” means any Lender, as reasonably determined by the Administrative
Agent, that has (a) failed to comply with its obligation to fund any portion of its Loans or
participations in Letters of Credit or Swingline Loans within three Business Days of the date
required to be funded by it hereunder, (b) notified the Company, the Administrative Agent, any
Issuing Bank, the Swingline Lender or any other Lender in writing that it does not intend to comply
with any of its funding obligations under this Agreement or has made a public statement to the
effect that it does not intend to comply with its funding obligations under this Agreement or under
other agreements generally in which it commits to extend credit, (c) failed, within three Business
Days after request by the Administrative Agent, to confirm that it will comply with the terms of
this Agreement relating to its obligations to fund prospective Loans and participations in then
outstanding Letters of Credit and Swingline Loans (provided, however, that a Lender shall cease to
be a Defaulting Lender under this clause (c) upon its providing such confirmation), (d) otherwise
failed to pay over to the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within three Business Days of the date when due, unless the subject of a good
faith dispute, or (e) (i) become or is insolvent or (ii) become the subject of a bankruptcy or
insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it,
or has taken any corporate action in furtherance of, or indicating its consent to, approval of or
acquiescence in, any such proceeding or appointment. No Lender shall be a Defaulting Lender solely
by virtue of the ownership or acquisition by a Governmental Authority or instrumentality thereof of
any Equity Interest in such Lender or parent company thereof or the exercise of Control over such
Lender or any Person Controlling such Lender by a Governmental Authority or instrumentality
thereof.

          “Designation Letter” means a letter in substantially the form of Exhibit B
hereto.

          “Dollars” or “$” refers to lawful money of the United States of America.

          “Dollar Equivalent” means, on any date of determination (a) with respect to any amount
in Dollars, such amount, and (b) with respect to any amount in any Foreign Currency, the equivalent
in Dollars of such amount, determined by the Administrative Agent pursuant to Section 1.05 using
the Exchange Rate with respect to such Foreign Currency at the time in effect under the provisions
of such Section.

          “Domestic Subsidiary” means each Subsidiary that is incorporated under the laws of the
United States, any State thereof or the District of Columbia.

          “Domestic Underfunding Amount” has the meaning set forth in Section 3.10 (b).

5

 

          “EBITDA” means, for any applicable computation period, Net Income from continuing
operations for such period, plus, to the extent included in the determination of such Net
Income (but without duplication), (a) income and franchise taxes paid or accrued, (b) interest
expense, (c) amortization and depreciation, (d) non-cash stock-based compensation expense, (e) the
first $165,000,000 of cash restructuring charges incurred during the period from April 1, 2008
through June 30, 2010 in connection with the Restructuring, (f) non-cash impairment charges, (g)
non-cash restructuring charges incurred in connection with the Restructuring and (h) other
non-recurring non-cash charges, losses and expenses properly deductible in determining Net Income
for such period minus, to the extent included in the determination of such Net Income, (i)
non-cash gains or income arising in connection with the Restructuring and (j) other non-recurring
non-cash gains or income for such period. For purposes of the computation of the Fixed Charge
Coverage Ratio and Leverage Ratio (a) for any period during which an Acquired Entity or Business
was acquired, EBITDA shall be calculated on a pro forma basis as if such Acquired Entity or
Business had been acquired (and any related Indebtedness incurred) on the first day of such period
and (b) for any period during which a Subsidiary or business was disposed of, EBITDA shall be
calculated on a pro forma basis as if such Subsidiary or business had been disposed of on the first
day of such period.

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

          “Entrust Indebtedness” means Indebtedness of a Subsidiary indirectly owed (through a
bank or other financial institution acting as an intermediary) to another Subsidiary that is
organized under the laws of the People’s Republic of China.

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

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

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

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

6

 

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Company, is treated as a single employer under Section 414(b) or (c) of the Code
or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day
notice period is waived); (b) the failure of a Plan to meet the “minimum funding standard” (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing
pursuant to Section 412(c) of the Code or Section 303(c) of ERISA of an application for a waiver of
the minimum funding standard with respect to any Plan; (d) the incurrence by the Company or any
ERISA Affiliate of any liability under Title IV of ERISA with respect to the termination of any
Plan; (e) the appointment of a trustee to administer any Plan under Section 4042 of ERISA; or (f)
the incurrence by the Company or any ERISA Affiliate of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

          “Euro” or “€” means the single currency unit of the Participating Member
States.

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

          “Eurocurrency Rate” means, (a) with respect to any Eurocurrency Borrowing denominated
in Dollars or any Foreign Currency other than Euro for any Interest Period, the rate per annum
determined by the Administrative Agent at approximately 11:00 a.m., London time, on the Quotation
Day for such Interest Period by reference to the British Bankers’ Association Interest Settlement
Rates for deposits in the currency of such Borrowing (as reflected on the Reuters Screen LIBOR01
Page 1 (or on any successor or substitute page of such page)), for a period equal to such Interest
Period and (b) with respect to any Eurocurrency Borrowing denominated in Euros for any Interest
Period, the rate appearing on the Reuters Screen EURIBOR01 Page (it being understood that this rate
is the Euro interbank offered rate (known as the “EURIBOR Rate”) sponsored by the Banking
Federation of the European Union and the Financial Markets Association) at approximately 11:00
a.m., London time, on the Quotation Day for such Interest Period, as the rate for deposits in Euros
with a maturity comparable to such Interest Period. To the extent that an interest rate is not
ascertainable pursuant to the foregoing provisions of this definition, the “Eurocurrency Rate”
shall be the rate at which JPMorgan offers to place deposits in the currency of such Borrowing for
such Interest Period to first-class banks in the London interbank market at approximately 11:00
a.m., London time, on the Quotation Day for such Interest Period.

          “Event of Default” has the meaning set forth in Article VII.

          “Exchange Rate” means on any day, for purposes of determining the Dollar Equivalent of
any currency other than Dollars, the rate at which such currency may be exchanged into Dollars at
11:00 a.m. Local Time on such day on the Reuters Currency pages, if available,

7

 

for such currency. In the event that such rate does not appear on any Reuters Currency pages,
the Exchange Rate shall be determined by reference to such other publicly available service for
displaying exchange rates as may be agreed upon by the Administrative Agent and the Company, or, in
the absence of such an agreement, such Exchange Rate shall instead be the arithmetic average of the
spot rates of exchange of the Administrative Agent in the market where its foreign currency
exchange operations in respect of such currency are then being conducted, at or about such time as
the Administrative Agent shall elect after determining that such rates shall be the basis for
determining the Exchange Rate, on such date for the purchase of Dollars for delivery two Business
Days later; provided that if at the time of any such determination, for any reason, no such
spot rate is being quoted, the Administrative Agent may use any reasonable method it deems
appropriate to determine such rate, and such determination shall be conclusive absent manifest
error.

          “Exchange Rate Date” means, if on such date any outstanding Loan or Letter of Credit
is (or any Loan or Letter of Credit that has been requested at such time would be) denominated in a
currency other than Dollars, each of:

          (a) the last Business Day of each calendar month,

          (b) if an Event of Default has occurred and is continuing, any Business Day designated as an
Exchange Rate Date by the Administrative Agent in its sole discretion, and

          (c) each date (with such date to be reasonably determined by the Administrative Agent) that is
on or about the date of (i) a Borrowing Request or an Interest Election Request with respect to any
Revolving Borrowing or (ii) each request for the issuance, amendment, renewal or extension of any
Letter of Credit.

          “Excluded Taxes” means, with respect to any payment made by any Borrower under this
Agreement, any of the following Taxes imposed on or with respect to a Recipient: (a) income or
franchise Taxes imposed on (or measured by) net income by the United States of America, or by the
jurisdiction under the laws of which such Recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable lending office is located, (b)
any branch profits Taxes imposed by the United States of America or any similar Taxes imposed by
any other jurisdiction in which the Applicable Borrower is organized and (c) in the case of a
Non-U.S. Lender (other than an assignee pursuant to a request by the Company under Section
2.19(b)), any U.S. Federal withholding tax that is imposed by a law in effect at the time such
Non-U.S. Lender becomes a party to this Agreement (or designates a new lending office) or is
attributable to such Non-U.S. Lender’s failure to comply with Section 2.17(f), except to the extent
that such Non-U.S. Lender (or its assignor, if any) was entitled, at the time of designation of a
new lending office (or assignment), to receive additional amounts from the Applicable Borrower with
respect to such withholding Taxes pursuant to Section 2.17(a). For the avoidance of doubt,
Excluded Taxes shall not by virtue of the foregoing clause (c) include withholding taxes imposed on
amounts payable to a Lender by or for the account of a Borrower that was not a Borrower on the date
such Lender became a party to this Agreement.

          “External Subsidiary” means any Subsidiary which is not a Credit Party.

8

 

          “Factoring Indebtedness” means, at any time, the amount at such time of outstanding
receivables or similar obligations sold by Molex Japan pursuant to a factoring agreement with a
non-affiliated third party that would be characterized as principal if such factoring agreement
were structured as a secured lending transaction rather than as a purchase of receivables.

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

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

          “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer, corporate treasury manager or controller of the Company.

     “First Amendment Effective Date” means January 11, 2010.

          “Fitch” means Fitch Ratings Ltd.

          “Fixed Charge Coverage Ratio” means the ratio, determined as of the end of each fiscal
quarter of the Company for the most-recently ended four fiscal quarters, of (a) EBITDA for such
period minus any Capital Expenditures made during such period to (b) Total Interest Expense
for such period, all calculated for the Company and its Subsidiaries on a consolidated basis in
accordance with GAAP.

          “Foreign Currency” means (a) with respect to any Revolving Loan, Euros, Sterling,
Canadian Dollars, Japanese yen and any other currency acceptable to the Administrative Agent and
each of the Lenders that is freely available, freely transferable and freely convertible into
Dollars and in which dealings in deposits are carried on in the London interbank market and (b)
with respect to any Letter of Credit, any currency acceptable to the Administrative Agent that is
freely available, freely transferable and freely convertible into Dollars, and agreed to by the
Issuing Bank issuing such Letter of Credit.

          “Foreign Pension Plan” means any plan, fund (including any superannuation fund) or
other similar program established or maintained outside the United States by the Company or any
Subsidiary primarily for the benefit of employees of the Company or any Subsidiary residing outside
the United States, which plan, fund or other similar program provides, or results in, retirement
income, a deferral of income in contemplation of retirement or payments to be made upon termination
or severance of employment, and which plan is not subject to ERISA or the Code.

9

 

          “Foreign Subsidiary” means any Subsidiary that is incorporated or organized under the
laws of any jurisdiction other than the United States of America, any State thereof or the District
of Columbia.

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

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business. The amount of any Guarantee made by any guarantor shall be
deemed to be the lower of (a) the stated or determinable amount of the primary obligation in
respect of which such Guarantee is made and (b) the maximum amount for which such guarantor may be
liable pursuant to the terms of the instrument embodying such Guarantee, unless (in the case of a
primary obligation that is not Indebtedness) such primary obligation and the maximum amount for
which such guarantor may be liable are not stated or determinable, in which case the amount of such
Guarantee shall be such guarantor’s maximum reasonably anticipated liability in respect thereof as
determined by the Company in good faith.

          “Guaranteed Parties” shall have the meaning assigned that term in the Parent Guaranty
and the Subsidiary Guaranty.

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

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes
or similar instruments, (c) all obligations of such Person under conditional sale

10

 

or other title retention agreements relating to property acquired by such Person, (d) all
obligations of such Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of business), (e) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed (it being understood that
if such Person has not assumed or otherwise become personally liable for any such Indebtedness, the
amount of the Indebtedness of such Person in connection therewith shall be limited to the lesser of
the face amount of such Indebtedness or the fair market value of all property of such Person
securing such Indebtedness), (f) all Guarantees by such Person of Indebtedness of others, (g) all
Capital Lease Obligations of such Person, (h) all obligations, contingent or otherwise, of such
Person as an account party in respect of letters of credit and letters of guaranty, (i) all
obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances and (j) all
Off-Balance Sheet Liabilities. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership interest in or other
relationship with such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor.

          “Indemnified Taxes” means (a) Taxes (other than Excluded Taxes) and (b) Other Taxes.

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

          “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each
March, June, September and December (or, in the case of a Swingline Loan, such other day as may be
agreed between the Company and the Swingline Lender) and (b) with respect to any Eurocurrency Loan,
the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and,
in the case of a Eurocurrency Borrowing with an Interest Period of more than three months’
duration, each day prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period.

          “Interest Period” means with respect to any Eurocurrency Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Company may elect;
provided, that (a) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case such Interest Period
shall end on the next preceding Business Day and (b) any Interest Period pertaining to a
Eurocurrency Borrowing that commences on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the last calendar month of such Interest Period)
shall end on the last Business Day of the last calendar month of such Interest Period. For
purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is
made and thereafter shall be the effective date of the most recent conversion or continuation of
such Borrowing.

11

 

          “IRS” means the United States Internal Revenue Service.

          “Issuing Bank” means JPMorgan and each other Lender reasonably acceptable to the
Administrative Agent that agrees in writing with the Company to issue Letters of Credit, in each
case, in its capacity as an issuer of Letters of Credit hereunder, and its successors in such
capacity as provided in Section 2.06(i). Any Issuing Bank may, in its discretion, arrange for one
or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term
“Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such
Affiliate. With respect to any Letter of Credit, “Issuing Bank” shall mean the issuer thereof.

          “JPMorgan” means JPMorgan Chase Bank, National Association, a national banking
association, and its successors.

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

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Applicable Borrower at such time. The LC
Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at
such time.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that
shall have become a party hereto pursuant to an Assignment and Assumption or pursuant to Section
2.09(d) hereto, other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Assumption. Unless the context otherwise requires, the term “Lenders” includes the
Swingline Lender.

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

          “Leverage Ratio” means, at any time, the ratio of Total Debt at such time to EBITDA
for the most recently completed four fiscal quarters of the Company, all calculated for the Company
and its Subsidiaries on a consolidated basis in accordance with GAAP.

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

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

          “Local Time” means (a) with respect to a Loan, Borrowing or Letter of Credit
denominated in Dollars, New York City time and (b) with respect to a Loan, Borrowing or Letter of
Credit denominated in any Foreign Currency, London time.

12

 

          “Mandatory Costs Rate” means the rate calculated in accordance with the formula and in
the manner set forth in Exhibit D hereto.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, property or financial condition of the Company and its Subsidiaries taken as a whole,
(b) the ability of any Credit Party to perform any of its obligations under this Agreement or any
other Credit Document or (c) the rights of or benefits available to the Lenders under this
Agreement or any other Credit Document.

          “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit) or obligations in respect of one or more Swap Agreements of any one or more of the Company
and its Subsidiaries in an aggregate principal amount exceeding $10,000,000. For purposes of
determining Material Indebtedness, the “principal amount” of the obligations of the Company or any
Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Company or such Subsidiary would be required to
pay if such Swap Agreement were terminated at such time.

          “Material Subsidiary” means a Domestic Subsidiary held directly by the Company or any
Subsidiary Guarantor that is a Domestic Subsidiary which has (as of the date of determination)
assets having a book value in excess of $5,000,000 or which generated in excess of $5,000,000 of
net income over the four fiscal quarter period most recently ended prior to the time of
computation.

          “Maturity Date” means March [__], 2016.

          “Molex Japan” means Molex Japan Co., Ltd., a company organized under the laws of
Japan.

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

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

          “Net Income” means, for any period, the consolidated net income of the Company and its
Subsidiaries for such period as determined in accordance with GAAP.

          “Non-U.S. Lender” means a Lender that is not a U.S. Person.

          “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any
liability under any Sale and Leaseback Transaction other than Capital Lease Obligations, (c) any
liability under any so-called “synthetic lease” arrangement or transaction entered into by such
Person, or (d) any obligation arising with respect to any other transaction which is the functional
equivalent of or takes the place of borrowing but which does not constitute a liability on the
balance sheet of such Person.

          “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a
result of a present or former connection between such Recipient and the jurisdiction

13

 

imposing such Taxes (other than a connection arising from such Recipient having executed,
delivered, enforced, become a party to, performed its obligations under, received payments under,
received or perfected a security interest under, or engaged in any other transaction pursuant to,
or enforced, this Agreement, or sold or assigned an interest in this Agreement).

          “Other Taxes” means any present or future stamp, court, documentary, intangible,
recording, filing or similar excise or property Taxes that arise from any payment made under, from
the execution, delivery, performance, enforcement or registration of, or from the registration,
receipt or perfection of a security interest under, or otherwise with respect to, this Agreement,
except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other
than an assignment under Section 2.19(b)).

          “Parent Guaranty” means the guaranty dated as of the date hereof by the Company in
favor of the Guaranteed Parties.

          “Participant” has the meaning set forth in Section 9.04(c).

          “Participant Register” has the meaning set forth in Section 9.04(c).

          “Participating Member State” means any member state of the European Communities that
adopts or has adopted the Euro as its lawful currency in accordance with the legislation of the
European Community relating to the Economic and Monetary Union.

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

          “Permitted Acquisition” means the acquisition by the Company or a Wholly-Owned
Subsidiary thereof of an Acquired Entity or Business (including by way of merger of such Acquired
Entity or Business with and into the Company (so long as the Company is the surviving corporation)
or a Wholly-Owned Subsidiary thereof (so long as a Wholly-Owned Subsidiary is the surviving
corporation); provided that, in each case, (a) the consideration paid or to be paid by the
Company or such Wholly-Owned Subsidiary consists solely of cash (including proceeds of Revolving
Loans or Swingline Loans), the issuance or incurrence of Indebtedness otherwise permitted by
Section 6.01, the issuance of common stock of the Company to the extent no Default or Event of
Default exists pursuant to clause (m) of Article VII or would result therefrom and the
assumption or acquisition of any Indebtedness (calculated at face value) which is permitted to
remain outstanding by Section 6.01; (b) the Acquired Entity or Business acquired pursuant to the
respective Permitted Acquisition is in a business permitted by Section 6.03(c); (c) in the case of
a stock acquisition, such acquisition shall have been approved by the board of directors of the
Acquired Entity or Business; and (d) all applicable requirements of Sections 6.03 and 6.04(e)
applicable to Permitted Acquisitions are satisfied.

          “Permitted Encumbrances” means:

          (a) Liens imposed by law for Taxes that are not yet due or are being contested in compliance
with Section 5.04;

14

 

          (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s and other
like Liens imposed by law, arising in the ordinary course of business and securing obligations that
are not overdue by more than 30 days or are being contested in compliance with Section 5.04;

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

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

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

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

          (g) Liens arising by virtue of any statutory or common law provision relating to banker’s
liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds
maintained with depository institutions;

          (h) licenses of patents, trademarks or other intellectual property rights granted in the
ordinary course of business;

          (i) Liens deemed to exist in connection with repurchase agreements related to Permitted
Investments; and

          (j) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the import or export of goods;

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

          “Permitted Investments” means:

          (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States of America), in each
case maturing within one year of the settlement date thereof;

          (b) corporate securities, fixed and floating rate, that (i) have a final maturity of not
greater than one year from the settlement date thereof (with the next coupon reset date of floating
rate securities being considered the maturity date of such securities) and (ii) are rated by at
least two of Moody’s, S&P and Fitch with minimum credit quality of such securities at the

15

 

time of purchase thereof to be Aa2/AA/AA as rated by Moody’s, S&P and Fitch, respectively
(with the lowest rating prevailing in the case of split rated securities);

          (c) investments in commercial paper maturing within 270 days of the settlement date thereof
and having, at such settlement date, the highest credit rating obtainable from S&P or from Moody’s;

          (d) investments in certificates of deposit, including “Domestic”, “Yankee” and Euro
certificates of deposit, banker’s acceptances, eurodollar deposits and time deposits maturing
within 360 days of the settlement date thereof issued or guaranteed by or placed with, and money
market deposit accounts issued or offered by, any domestic office of any commercial bank organized
under the laws of the United States of America or any State thereof which has a combined capital
and surplus and undivided profits of not less than $500,000,000;

          (e) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution satisfying
the criteria described in clause (c) above;

          (f) money market funds that (i) comply with the criteria set forth in Securities and Exchange
Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000;

          (g) in the case of a Foreign Subsidiary, direct obligations of, or obligations the principal
of and interest on which are unconditionally guaranteed by, any country (or by any agency thereof
to the extent such obligations are backed by the full faith and credit of such country) that is a
member of the Organisation for Economic Co-operation and Development (the “OECD”), in each
case maturing within one year from the date of acquisition thereof; and

          (h) in the case of a Foreign Subsidiary, investments in certificates of deposit, banker’s
acceptances, eurocurrency deposits and time deposits maturing within 360 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts
issued or offered by, any office of any commercial bank that is (i) a Lender, (ii) organized under
the laws of a member of the OECD or a state, province or territory thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000, (iii) a bank with which
any Foreign Subsidiary has a banking relationship as of the date of this Agreement or (iv) approved
by the Administrative Agent (which approval shall not be unreasonably withheld).

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

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which the Company or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

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

          “Pro Forma Basis” means, with respect to compliance with Sections 6.09 and 6.10,
compliance with such sections after giving effect to any proposed acquisition or incurrence of
Indebtedness, as applicable, as if such proposed acquisition or incurrence of Indebtedness, as
applicable, and any Indebtedness or other liabilities to be incurred or repaid in connection
therewith had been consummated and incurred or repaid at the beginning of such period and assuming
all Indebtedness so assumed to be outstanding shall be deemed to have borne interest (a) in the
case of fixed rate indebtedness, at the rate applicable thereto or (b) in the case of floating rate
Indebtedness, at the rates which were or would have been applicable thereto during the period when
such Indebtedness was or was deemed to be outstanding.

          “Pro Forma Compliance” means, at any date of determination, that the Company shall be
in pro forma compliance with Sections 6.09 and 6.10 as of the last day of the most recently
completed period of four fiscal quarters for which financial statements shall have been delivered
to the Administrative Agent (computed, as the case may be, on the basis of (a) balance sheet
amounts as of such date and (b) income statement amounts for the period of four consecutive fiscal
quarters then ended and calculated on a Pro Forma Basis in respect of the event giving rise to such
determination).

          “Quotation Day” means, with respect to any Eurocurrency Borrowing and any Interest
Period, the day on which it is market practice in the relevant interbank market for prime banks to
give quotations for deposits in the currency of such Borrowing for delivery on the first day of
such Interest Period. If such quotations would normally be given by prime banks on more than one
day, the Quotation Day will be the last of such days.

          “Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c)
the Issuing Bank.

          “Reference EBITDA” has the meaning set forth in Section 6.06.

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

          “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and
unused Commitments representing more than 50% of the sum of the total Revolving Credit Exposures
and unused Commitments at such time.

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

17

 

          “Restructuring” means the reorganization and restructuring activities publicly
announced by the Company from time to time prior to the date hereof covering activities occurring
during the period from June 1, 2007 through June 30, 2010.

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

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

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

          “Sale and Leaseback Transaction” means any sale or other transfer of property by any
Person with the intent to lease such property as lessee.

          “Second Amendment Effective Date” means March [__], 2011.

          “Sterling” or “£” means the lawful currency of the United Kingdom of Great
Britain and Northern Ireland.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

          “Subsidiary” means any subsidiary of the Company.

          “Subsidiary Borrower” means Molex Japan and any other Wholly-Owned Subsidiary that is
a Foreign Subsidiary designated as such by the Company pursuant to Section 2.20.

          “Subsidiary Guarantor” means each Subsidiary of the Company which is a party to the
Subsidiary Guaranty.

          “Subsidiary Guaranty” means the Subsidiary Guaranty dated as of the date hereof made
by the Subsidiaries party thereto in favor of the Guaranteed Parties. The Subsidiary Guarantors
initially party to the Subsidiary Guaranty are so designated on Schedule 3.13.

          “Substantial Portion” means, with respect to the property of the Company and its
Subsidiaries, property which represents more than 5% of the consolidated assets of the Company and
its Subsidiaries as would be shown in the consolidated financial statements of the Company

18

 

and its Subsidiaries as at the beginning of the twelve-month period ending with the last day
of the month preceding the month in which such determination is made.

          “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Company or any Subsidiary shall be a
Swap Agreement.

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

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

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

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

          “Termination Letter” means a letter in substantially the form of Exhibit C
hereto.

          “Total Debt” means the sum, without duplication, of (a) all Indebtedness of the
Company and its Subsidiaries on a consolidated basis, calculated in accordance with GAAP,
plus (b) the face amount of all outstanding letters of credit (other than trade letters of
credit) in respect of which the Company or any Subsidiary has any actual or contingent
reimbursement obligation, plus (c) the principal amount of all Guarantees by the Company
and its Subsidiaries of Indebtedness, plus (d) the stated amount of all obligations of the
Company and its Subsidiaries under letters of guarantee, plus (e) the amount of all
Factoring Indebtedness. Notwithstanding the foregoing, “Total Debt” shall not include contingent
obligations of the Company or any Subsidiary under letters of credit issued and letters of guaranty
obtained to support underlying obligations that do not constitute Indebtedness or any Guarantee of
any such contingent obligation, except to the extent that the aggregate amount of all such
contingent obligations (without duplication and excluding obligations under trade letters of
credit) exceeds $15,000,000.

          “Total Interest Expense” means, for any period, total cash interest expense deducted
in the computation of Net Income for such period (including that attributable to Capital Lease
Obligations) of the Company and its Subsidiaries for such period with respect to all outstanding
Indebtedness of the Company and its Subsidiaries (including all commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net
costs of rate hedging in respect of interest rates to the extent such net costs are allocable to
such period in accordance with GAAP).

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          “Transactions” means the execution, delivery and performance by the Borrowers of this
Agreement, each other Credit Document and any Designation Letters, the borrowing of Loans, the use
of the proceeds thereof and the issuance of Letters of Credit hereunder.

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

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

          “U.S. Tax Certificate” has the meaning set forth in Section 2.17(f)(ii)(D)(2).

          “Wholly-Owned Subsidiary” of a Person means (a) any subsidiary all of the outstanding
voting securities of which shall at the time be owned or controlled, directly or indirectly, by
such Person or one or more Wholly-Owned Subsidiaries of such Person, or by such Person and one or
more Wholly-Owned Subsidiaries of such Person, or (b) any partnership, limited liability company,
association, joint venture or similar business organization 100% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled (other than in the case
of Foreign Subsidiaries, director’s qualifying shares and/or other nominal amounts of shares
required to be held by Persons other than the Company and its Subsidiaries under applicable law).

          “Withholding Agent” means any Credit Party and the Administrative Agent.

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or
by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency
Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a
“Revolving Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type
(e.g., a “Eurocurrency Revolving Borrowing”).

          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented, restated or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and assigns, (c) the
words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof, (d) all references
herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property”
shall be construed to have the same

20

 

meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that (a) GAAP will be deemed to treat operating leases
in a manner consistent with its treatment under generally accepted accounting principles as in
effect on the Effective Date, notwithstanding any modification or interpretive change thereto that
may occur thereafter; and (b) if the Company notifies the Administrative Agent that the Company
requests an amendment to any provision hereof to eliminate the effect of any change occurring after
the date hereof in GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Company that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is given before or after
such change in GAAP or in the application thereof, then such provision shall be interpreted on the
basis of GAAP as in effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in accordance herewith.

          SECTION 1.05. Foreign Currency Calculations. (a) For purposes of determining the
Dollar Equivalent of any Loan or Letter of Credit denominated in a Foreign Currency or any related
amount, the Administrative Agent shall determine the Exchange Rate as of the applicable Exchange
Rate Date with respect to each Foreign Currency in which any requested or outstanding Loan or
Letter of Credit is denominated and shall apply such Exchange Rate to determine such amount.

          (b) For purposes of any determination hereunder (including determinations under Section 6.01,
6.02, 6.04, 6.09 or 6.10 or under Article VII), all amounts incurred, outstanding or
proposed to be incurred or outstanding in currencies other than Dollars shall be translated into
Dollars at the appropriate currency Exchange Rate; provided that no Default shall arise as
a result of any limitation set forth in Dollars in Section 6.01 or 6.02 being exceeded solely as a
result of changes in Exchange Rates from those rates applicable at the time or times Indebtedness
or Liens were initially consummated in reliance on the exceptions under such Sections. For
purposes of any determination under Section 6.04, 6.09 or 6.10, the amount of each investment,
asset disposition or other applicable transaction denominated in a currency other than Dollars
shall be translated into Dollars at the applicable Exchange Rate. Such Exchange Rates shall be
determined in good faith by the Company.

ARTICLE II

The Credits

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

21

 

all Revolving Credit Exposure of all Lenders relative to all Subsidiary Borrowers exceeding
$200,000,000 or (d) the Dollar Equivalent of the aggregate amount of all Revolving Loans and
Letters of Credit denominated in Foreign Currencies exceeding $200,000,000. Within the foregoing
limits and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay
and reborrow Revolving Loans.

          SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as part of
a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their
respective Commitments. The failure of any Lender to make any Loan required to be made by it shall
not relieve any other Lender of its obligations hereunder; provided that the Commitments of
the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make
Loans as required hereby.

          (b) Subject to Section 2.14, (i) each Revolving Borrowing denominated in Dollars shall be
comprised entirely of ABR Loans or Eurocurrency Loans as the Company may request in accordance
herewith and (ii) each Revolving Borrowing denominated in a Foreign Currency shall be comprised
entirely of Eurocurrency Loans. Each Swingline Loan shall be an ABR Loan or shall bear interest at
such rate otherwise agreed to between the Company and the Swingline Lender.

          (c) At the commencement of each Interest Period for any Eurocurrency Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less
than $5,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in
an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000;
provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the
entire unused balance of the total Commitments or that is required to finance the reimbursement of
an LC Disbursement as contemplated by Section 2.06(e). Each Swingline Loan shall be in an amount
that is an integral multiple of $500,000 and not less than $1,000,000. Borrowings of more than one
Type and Class may be outstanding at the same time; provided that there shall not at any
time be more than a total of eight (or such greater number as may be agreed to from time to time by
the Company and the Administrative Agent) Eurocurrency Revolving Borrowings outstanding.
Notwithstanding the foregoing, Loans which are not denominated in Dollars may be made in amounts
and increments in the applicable Foreign Currency reasonably satisfactory to the Administrative
Agent.

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

          (e) Notwithstanding any other provision of this Agreement, each Lender at its option may make
any ABR Loan or Eurocurrency Loan by causing any domestic or foreign office, branch or Affiliate of
such Lender that has been designated by such Lender to the Company and the Administrative Agent (an
“Applicable Lending Installation”) to make such Loan. All terms of this Agreement shall
apply to any such Applicable Lending Installation of such Lender and the Loans and any notes issued
hereunder shall be deemed held by each Lender for the benefit of any such Applicable Lending
Installation. Each Lender may, by written notice to the Administrative Agent and the Company,
designate replacement or additional Applicable

22

 

Lending Installations through which Loans will be made by it and for whose account Loan
payments are to be made.

          SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing
(other than a Swingline Loan), the Company shall notify the Administrative Agent of such request by
telephone (or, in the case of requests in respect of Eurocurrency Borrowings denominated in Foreign
Currencies, by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request
in a form approved the Administrative Agent and signed by the Company) (a) in the case of a
Eurocurrency Borrowing, not later than 11:00 a.m., Local Time, three Business Days before the date
of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., Local
Time, one Business Day before the date of the proposed Borrowing; provided that any such
notice of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.06(e) may be given not later than 10:00 a.m., Local Time, on the date of
the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing
Request in a form approved by the Administrative Agent and signed by the Company. Each such
telephonic and written Borrowing Request shall specify the following information in compliance with
Section 2.02:

     (i) the identity of the Applicable Borrower;

     (ii) the aggregate amount of the requested Borrowing;

     (iii) the currency (which may be Dollars or a Foreign Currency) in which such Borrowing
is to be denominated;

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

     (v) in the case of a Borrowing denominated in Dollars, whether such Borrowing is to be
an ABR Borrowing or a Eurocurrency Borrowing;

     (vi) in the case of a Eurocurrency Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by clause (a) of the definition of
the term “Interest Period”; and

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

Promptly following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04. Effect of Incomplete Borrowing Notice. If no election as to the Type
of Revolving Borrowing is specified in a notice requesting a Revolving Borrowing denominated in
Dollars, then the requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period
is specified in a notice requesting a Eurocurrency Revolving Borrowing, then the Company shall be
deemed to have selected an Interest Period of one month’s duration.

23

 

          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Dollar-denominated Swingline Loans to the Company from
time to time during the Availability Period, in an aggregate principal amount at any time
outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline
Loans exceeding $50,000,000 or (ii) the sum of the total Revolving Credit Exposures exceeding the
total Commitments; provided that the Swingline Lender shall not be required to make a
Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject
to the terms and conditions set forth herein, the Company may borrow, prepay and reborrow Swingline
Loans.

          (b) To request a Swingline Loan, the Company shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy), not later than 12:00 noon, Local Time, on the day of
a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify (i) the
requested date (which shall be a Business Day) and (ii) the amount of the requested Swingline Loan.
The Administrative Agent will promptly advise the Swingline Lender of any such notice received
from the Company. Each Swingline Loan shall bear interest at the rate applicable to ABR Loans or,
if applicable, at such other rate as the Company and the Swingline Lender shall have agreed prior
to the request for such Swingline Loan. The Swingline Lender shall make each Swingline Loan
available to the Company by means of a credit to the general deposit account of the Company with
the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an
LC Disbursement as provided in Section 2.06(e), by remittance to the applicable Issuing Bank) by
3:00 p.m., Local Time, on the requested date of such Swingline Loan.

          (c) The Swingline Lender may by written notice given to the Administrative Agent not later
than 10:00 a.m., Local Time, on any Business Day require the Lenders to acquire participations on
such Business Day in all or a portion of the Swingline Loans outstanding. Such notice shall
specify the aggregate amount of Swingline Loans in which Lenders will participate, and such amount
of Swingline Loans shall bear interest at the Alternate Base Rate. Promptly upon receipt of such
notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice
such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely
and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative
Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such
Swingline Loan or Loans. Each Lender acknowledges and agrees that its obligation to acquire
participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a
Default or reduction or termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever. Each Lender shall comply with
its obligation under this paragraph by wire transfer of immediately available funds, in the same
manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07
shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from
the Lenders. The Administrative Agent shall notify the Company of any participations in any
Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such
Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any
amounts received by the Swingline Lender from the Company (or other party on behalf of the Company)

24

 

in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale
of participations therein shall be promptly remitted to the Administrative Agent; any such amounts
received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the
Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender,
as their interests may appear; provided that any such payment so remitted shall be repaid
to the Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such
payment is required to be refunded to the Company for any reason. The purchase of participations
in a Swingline Loan pursuant to this paragraph shall not relieve the Company of any default in the
payment thereof.

          SECTION 2.06. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Company may request the issuance of Letters of Credit for its own
account or for the account of any Subsidiary Borrower, in a form reasonably acceptable to the
Administrative Agent and the applicable Issuing Bank, at any time and from time to time during the
Availability Period. In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by the Company to, or entered into by the Company with, any Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Company shall hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the applicable Issuing Bank) to the applicable
Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount
of such Letter of Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If
requested by the applicable Issuing Bank, the Company also shall submit a letter of credit
application on such Issuing Bank’s standard form in connection with any request for a Letter of
Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon
issuance, amendment, renewal or extension of each Letter of Credit the Company shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment, renewal or extension
(i) the Dollar Equivalent of the LC Exposure shall not exceed $75,000,000, (ii) the sum of the
total Revolving Credit Exposures shall not exceed the total Commitments, (iii) the Dollar
Equivalent of the aggregate outstanding principal amount of all Revolving Credit Exposure of all
Lenders relative to all Subsidiary Borrowers shall not exceed $200,000,000 and (iv) the Dollar
Equivalent of the aggregate amount of all Revolving Loans and Letters of Credit denominated in
Foreign Currencies shall not exceed $200,000,000.

          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five Business Days prior to the Maturity Date;
provided that a

25

 

Letter of Credit may expire after the date referred to in clause (ii) above (but not
after the date referred to in clause (i) above) so long as not later than five Business Days prior
to the Maturity Date, the Company has cash collateralized such Letter of Credit in accordance with
Section 2.06(j).

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
applicable Issuing Bank or the Lenders, each Issuing Bank hereby grants to each Lender, and each
Lender hereby acquires from each Issuing Bank, a participation in such Letter of Credit equal to
such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter
of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the applicable
Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank
and not reimbursed by the Applicable Borrower on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to the Applicable Borrower for any
reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant
to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

          (e) Reimbursement. If any Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Applicable Borrower shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, Local Time,
on the date that such LC Disbursement is made, if such Borrower shall have received notice of such
LC Disbursement prior to 10:00 a.m., Local Time, on such date, or, if such notice has not been
received by such Borrower prior to such time on such date, then not later than 12:00 noon, Local
Time, on (i) the Business Day that such Borrower receives such notice, if such notice is received
prior to 10:00 a.m., Local Time, on the day of receipt, or (ii) the Business Day immediately
following the day that such Borrower receives such notice, if such notice is not received prior to
such time on the day of receipt; provided that the Company may, subject to the conditions
to borrowing set forth herein, request in accordance with Section 2.03 or 2.05 that such payment be
financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the
extent so financed, the Applicable Borrower’s obligation to make such payment shall be discharged
and replaced by the resulting ABR Revolving Borrowing or Swingline Loan. If the Applicable
Borrower fails to make such payment when due, such amount, if denominated in Foreign Currency,
shall be converted to Dollars and shall bear interest at the Alternate Base Rate and the
Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then
due from such Borrower in respect thereof and such Lender’s Applicable Percentage thereof.
Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its
Applicable Percentage of the payment then due from the Applicable Borrower, in the same manner as
provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply,
mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the applicable Issuing Bank the amounts so received by
it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from
any Borrower pursuant to this paragraph, the

26

 

Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the
extent that Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank,
then to such Lenders and such Issuing Bank as their interests may appear. Any payment made by a
Lender pursuant to this paragraph to reimburse any Issuing Bank for any LC Disbursement (other than
the funding of ABR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute
a Loan and shall not relieve the Applicable Borrower of its obligation to reimburse such LC
Disbursement.

          (f) Obligations Absolute. The obligation of the Applicable Borrower to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under
any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability
of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in
any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by
any Issuing Bank under a Letter of Credit against presentation of a draft or other document that
does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of, or provide a right of setoff against,
such Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor any
Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or
failure to make any payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of any Issuing Bank;
provided that the foregoing shall not be construed to excuse any Issuing Bank from
liability to the Applicable Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by each Borrower to the extent
permitted by applicable law) suffered by such Borrower that are caused by such Issuing Bank’s
failure to exercise care when determining whether drafts and other documents presented under a
Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the
absence of gross negligence or willful misconduct on the part of the applicable Issuing Bank (as
finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have
exercised care in each such determination. In furtherance of the foregoing and without limiting
the generality thereof, the parties agree that, with respect to documents presented which appear on
their face to be in substantial compliance with the terms of a Letter of Credit, the applicable
Issuing Bank may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or information to the
contrary, or refuse to accept and make payment upon such documents if such documents are not in
strict compliance with the terms of such Letter of Credit.

          (g) Disbursement Procedures. The applicable Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for payment under a
Letter of Credit. The applicable Issuing Bank shall promptly notify the Administrative Agent and
the Applicable Borrower by telephone (confirmed by telecopy) of

27

 

such demand for payment and whether such Issuing Bank has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such notice shall not
relieve such Borrower of its obligation to reimburse such Issuing Bank and the Lenders with respect
to any such LC Disbursement.

          (h) Interim Interest. If any Issuing Bank shall make any LC Disbursement, then,
unless the Applicable Borrower shall reimburse such LC Disbursement in full on the date such LC
Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the date that such Borrower
reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans;
provided that, if any Borrower fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.13(d) shall apply. Interest accrued pursuant to this
paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on
and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse
such Issuing Bank shall be for the account of such Lender to the extent of such payment.

          (i) Replacement of Issuing Banks. Any Issuing Bank may be replaced at any time by
written agreement among the Company, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement
of an Issuing Bank. At the time any such replacement shall become effective, the Company shall pay
all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b).
From and after the effective date of any such replacement, (i) the successor Issuing Bank shall
have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters
of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all
previous or current Issuing Banks, as the context shall require. After the replacement of an
Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to
have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters
of Credit issued by it prior to such replacement, but shall not be required to issue additional
Letters of Credit.

          (j) Cash Collateralization. If (i) any Event of Default shall occur and be
continuing, within two (2) Business Days of the Company’s receipt of notice from the Administrative
Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this paragraph
or (ii) as of the date five Business Days prior to the Maturity Date, any Letter of Credit remains
outstanding, in either case, the Company shall deposit in an account with the Administrative Agent,
in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash in
Dollars equal to 105% of the Dollar Equivalent of the LC Exposure as of such date plus any accrued
and unpaid interest thereon; provided that the obligation to deposit such cash collateral
shall become effective immediately, and such deposit shall become immediately due and payable,
without demand or other notice of any kind, upon the occurrence of any Event of Default with
respect to the Company described in clause (h) or (i) of Article VII. Any such deposit
shall be held by the Administrative Agent as collateral for the payment and performance of the
obligations of the Borrowers under this Agreement. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such account. Other than
any interest earned on the investment of such

28

 

deposits, which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Company’s risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing Banks for LC
Disbursements for which they have not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at
such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other
obligations of the Borrowers under this Agreement. If the Company is required to provide an amount
of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to the Company within three Business Days
after all Events of Default have been cured or waived.

          SECTION 2.07. Funding of Borrowings. (a) Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available funds by
12:00 noon, Local Time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as
provided in Section 2.05. The Administrative Agent will make such Loans available to the
Applicable Borrower by promptly crediting the amounts so received, in like funds, to an account of
the Applicable Borrower maintained with the Administrative Agent in New York City (or, in the case
of Subsidiary Borrowers or Loans denominated in a Foreign Currency, in such other location as may
be reasonably designated by the Applicable Borrower) and designated by the Company in the
applicable Borrowing Request; provided that ABR Revolving Loans made to finance the
reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by the
Administrative Agent to the applicable Issuing Bank.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Applicable Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the Applicable Borrower severally agree to
pay to the Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available to the Applicable
Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of
such Lender, (x) the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation (in the
case of a Borrowing denominated in Dollars) or (y) the rate reasonably determined by the
Administrative Agent to be the cost to it of funding such amount (in the case of a Borrowing
denominated in a Foreign Currency) or (ii) in the case of the Applicable Borrower, (A) the interest
rate applicable to ABR Loans (in the case of a Borrowing denominated in Dollars) or (B) the
interest rate otherwise applicable to such Borrowing, including any applicable Mandatory Costs Rate
(in the case of a Borrowing denominated in a Foreign Currency). If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

29

 

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

          (b) To make an election pursuant to this Section, the Company shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would be required under
Section 2.03 if the Company were requesting a Revolving Borrowing of the Type and denominated in
the Foreign Currency resulting from such election to be made on the effective date of such
election. Each such telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by the Company.

          (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency
Borrowing; and

     (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an
Interest Period, then the Company shall be deemed to have selected an Interest Period of one
month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

30

 

          (e) If the Company fails to deliver a timely Interest Election Request with respect to a
Eurocurrency Revolving Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing (unless such Borrowing is denominated in a Foreign
Currency, in which case such Borrowing shall be continued as a Eurocurrency Borrowing with an
Interest Period of one month’s duration commencing on the last day of such Interest Period).
Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the
Company, then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing
denominated in Dollars may be converted to or continued as a Eurocurrency Borrowing, (ii) unless
repaid, each Eurocurrency Revolving Borrowing denominated in Dollars shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto, and (iii) unless repaid, each
Eurocurrency Revolving Borrowing denominated in a Foreign Currency shall be continued as a
Eurocurrency Revolving Borrowing with an Interest Period of one month’s duration.

          SECTION 2.09. Termination, Reduction and Increase of Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Maturity Date.

          (b) The Company may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Company shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.11, the sum of the Revolving Credit Exposures would exceed the
total Commitments.

          (c) The Company shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under paragraph (b) of this Section at least three Business Days prior to the
effective date of such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any such notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Company pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments delivered by
the Company may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Company (by notice to the
Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of
the Commitments shall be made ratably among the Lenders in accordance with their respective
Commitments.

          (d) On up to two occasions, the Company may, from time to time, at its option, seek to
increase the total Commitments by up to an aggregate amount of $175,000,000 (resulting in maximum
total Commitments of $525,000,000) upon at least three (3) Business Days’ prior written notice to
the Administrative Agent, which notice shall specify the amount of any such increase and shall be
delivered at a time when no Default has occurred and is continuing. After delivery of such notice,
the Administrative Agent or the Company, in consultation with the Administrative Agent, may offer
the increase (which may be declined by any Lender in its sole discretion) in the total Commitments
on either a ratable basis to the

31

 

Lenders or on a non pro-rata basis to one or more Lenders and/or to other Lenders or entities
reasonably acceptable to the Administrative Agent and the Company. No increase in the total
Commitments shall become effective until the existing or new Lenders extending such incremental
Commitment amount and the Company shall have delivered to the Administrative Agent a document in
form reasonably satisfactory to the Administrative Agent (which shall include the Company’s
representation that the conditions set forth in Section 4.02 are then satisfied) pursuant to which
any such existing Lender states the amount of its Commitment increase, any such new Lender states
its Commitment amount and agrees to assume and accept the obligations and rights of a Lender
hereunder and the Company accepts such incremental Commitments. Upon the effectiveness of any
increase in the total Commitments pursuant hereto, (i) each Lender (new or existing) shall be
deemed to have accepted an assignment from the existing Lenders, and the existing Lenders shall be
deemed to have made an assignment to each new or existing Lender accepting a new or increased
Commitment, of an interest in each then outstanding Revolving Loan (in each case, on the terms and
conditions set forth in the Assignment and Assumption) and (ii) the Swingline Exposure and LC
Exposure of the existing and new Lenders shall be automatically adjusted such that, after giving
effect to such assignments and adjustments, all Revolving Credit Exposure hereunder is held ratably
by the Lenders in proportion to their respective Commitments. Assignments pursuant to the
preceding sentence shall be made in exchange for, and substantially contemporaneously with the
payment to the assigning Lenders of, the principal amount assigned plus accrued and unpaid interest
and commitment and Letter of Credit fees. Payments received by assigning Lenders pursuant to this
Section in respect of the principal amount of any Eurocurrency Loan shall, for purposes of Section
2.16, be deemed prepayments of such Loan. Any increase of the total Commitments pursuant to this
Section shall be subject to receipt by the Administrative Agent from the Company of such
supplemental opinions, resolutions, certificates and other documents as the Administrative Agent
may reasonably request.

          SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) Each Applicable Borrower
hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each
Lender the then unpaid principal amount of each of its Revolving Loans on the Maturity Date and
(ii) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier
of the Maturity Date and the first date after such Swingline Loan is made that is the 15th or last
day of a calendar month and is at least two Business Days after such Swingline Loan is made;
provided that on each date that a Revolving Borrowing is made, the Company shall repay all
Swingline Loans then outstanding.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrowers to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

32

 

          (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation
of the Borrowers to repay the Loans in accordance with the terms of this Agreement.

          (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrowers shall prepare, execute and deliver to such Lender a promissory note payable to
such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a
form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory note
and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be
represented by one or more promissory notes in such form payable to the payee named therein (or, if
such promissory note is a registered note, to such payee and its registered assigns).

          (f) If at any time the aggregate Revolving Credit Exposure of the Lenders exceeds the
aggregate Commitments of the Lenders, the Company shall (or shall cause one or more Subsidiary
Borrowers to) immediately prepay the Loans in the amount of such excess. To the extent that, after
the prepayment of all Loans an excess of the Revolving Credit Exposure over the aggregate
Commitments still exists, the Company shall (or shall cause one or more Subsidiary Borrowers to)
promptly cash collateralize the Letters of Credit in the manner described in Section 2.06(j) in an
amount sufficient to eliminate such excess.

          (g) The Administrative Agent will determine the Dollar Equivalent of the aggregate LC Exposure
and the Dollar Equivalent of each Loan on each Exchange Rate Date. If at any time the sum of such
amounts exceeds 105% of the aggregate Commitments of the Lenders, the Company shall (or shall cause
one or more Subsidiary Borrowers to) immediately prepay the Loans in the amount of such excess. To
the extent that, after the prepayment of all Loans an excess of the sum of such amounts over the
aggregate Commitments still exists, the Company shall (or shall cause one or more Subsidiary
Borrowers to) promptly cash collateralize the Letters of Credit in the manner described in Section
2.06(j) in an amount sufficient to eliminate such excess.

          SECTION 2.11. Prepayment of Loans. (a) The Borrowers shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in
accordance with paragraph (b) of this Section.

          (b) The Company shall notify the Administrative Agent (and, in the case of prepayment of a
Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any prepayment
hereunder (i) in the case of prepayment of a Eurocurrency Revolving Borrowing, not later than 11:00
a.m., Local Time, three Business Days before the date of prepayment, (ii) in the case of prepayment
of an ABR Revolving Borrowing, not later than 11:00 a.m., Local Time, one Business Day before the
date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 12:00
noon, Local Time, on the date of prepayment. Each such notice shall be irrevocable and shall
specify the prepayment date and the principal amount of each Borrowing or portion thereof to be
prepaid; provided that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments

33

 

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

          SECTION 2.12. Fees. (a) The Company agrees to pay to the Administrative Agent for
the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the daily
amount of the difference between the Commitment of such Lender and the Revolving Credit Exposure of
such Lender (excluding its Swingline Exposure) during the period from and including the date hereof
to but excluding the date on which such Commitment terminates. Commitment fees shall be payable in
arrears on the third Business Day of April, July, October and January of each year (to the extent
accrued during the preceding calendar quarter) and on the date on which the Commitments terminate
(to the extent not previously paid), commencing on the first such date to occur after the date
hereof. All commitment fees shall be computed on the basis of a year of 360 days and shall be
payable for the actual number of days elapsed (including the first day but excluding the last day).

          (b) The Company agrees to pay (i) to the Administrative Agent for the account of each Lender a
participation fee with respect to its participations in Letters of Credit, which shall accrue at
the same Applicable Rate used to determine the interest rate applicable to Eurocurrency Revolving
Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and including the Effective
Date to but excluding the later of the date on which such Lender’s Commitment terminates and the
date on which such Lender ceases to have any LC Exposure, and (ii) to each Issuing Bank for its own
account a fronting fee, which shall accrue at the rate or rates per annum separately agreed upon
between the Company and such Issuing Bank on the average daily amount of the LC Exposure (excluding
any portion thereof attributable to unreimbursed LC Disbursements) during the period from and
including the Effective Date to but excluding the later of the date of termination of the
Commitments and the date on which there ceases to be any LC Exposure, as well as such Issuing
Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of
Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through
and including the last day of March, June, September and December of each year shall be payable in
arrears on the third Business Day following such last day, commencing on the first such date to
occur after the Effective Date; provided that all such fees shall be payable on the date on
which the Commitments terminate and any such fees accruing after the date on which the Commitments
terminate shall be payable on demand. Any other fees payable to any Issuing Bank pursuant to this
paragraph shall be payable within 10 days after demand. All participation fees and fronting fees
shall be computed on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

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          (c) The Company agrees to pay to the Administrative Agent, for its own account, fees in the
amounts and at the times separately agreed upon between the Company and the Administrative Agent.

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

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

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

          (c) Each Swingline Loan shall bear interest as determined in accordance with Section 2.05.

          (d) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by any Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

          (e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan, upon the final maturity thereof and upon termination of the Commitments pursuant to
Section 2.09; provided that (i) interest accrued pursuant to paragraph (d) of this Section
shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other
than a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on
the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment
and (iii) in the event of any conversion of any Eurocurrency Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of
such conversion.

          (f) All interest hereunder shall be computed on the basis of a year of 360 days, except that
(i) interest on Borrowings denominated in Sterling shall be computed on the basis of a year of 365
days (or 366 days in a leap year), (ii) interest on Borrowings denominated in any other Foreign
Currency for which it is required by applicable law or customary to compute interest on the basis
of a year of 365 days or, if required by applicable law or customary, 366 days in a leap year,
shall be computed on such basis, and (iii) interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the
basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the
actual number of days elapsed (including the first day but excluding the last day). The applicable
Alternate Base Rate or Eurocurrency Rate shall be

35

 

determined by the Administrative Agent, and such determination shall be conclusive absent
manifest error.

          SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurocurrency Borrowing denominated in any currency:

     (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the
Eurocurrency Rate for such Interest Period; or

     (b) the Administrative Agent is advised by the Required Lenders that the Eurocurrency
Rate for such Interest Period will not adequately and fairly reflect the cost to such
Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such
Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Company and the Lenders by telephone
or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the
Company and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any
Interest Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurocurrency Borrowing denominated in such currency
shall be ineffective, (ii) such Borrowing shall be converted to or continued as on the last day of
the Interest Period applicable thereto (A) if such Borrowing is denominated in Dollars, an ABR
Borrowing or (B) if such Borrowing is denominated in a Foreign Currency, as a Borrowing in respect
of which the rate to apply to each Lender’s applicable Loan is an interest rate equal to the sum of
(1) the Applicable Rate for Eurocurrency Loans, (2) the rate notified to the Administrative Agent
by such Lender as soon as practicable and in any event before interest is due to be paid in respect
of the applicable Interest Period, to be that which expresses as a percentage rate per annum the
cost to such Lender of funding its applicable Loan from whatever source it may reasonably select
and (3) the Mandatory Costs Rate, if any, applicable to such Lender’s applicable Loan, and (iii) if
any Borrowing Request requests a Eurocurrency Borrowing in such currency, such Borrowing shall be
made as an ABR Borrowing (if such Borrowing is requested to be made in Dollars) or shall be made as
a Borrowing bearing interest at the rate described under (ii)(B) above.

          SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement compensated for by the Mandatory Cost Rate
or pursuant to Section 2.21(b)) or any Issuing Bank;

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

     (iii) subject any Recipient to any Taxes on its loans, loan principal, letters of
credit, commitments, or other obligations, or its deposits, reserves, other liabilities or
capital attributable thereto (other than (A) Indemnified Taxes; (B) Excluded Taxes and

36

 

(C) Other Connection Taxes on gross or net income, profits or revenue (including
value-added or similar Taxes));

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

          (b) If any Lender or Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or
Issuing Bank’s capital or on the capital of such Lender’s or Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below
that which such Lender or Issuing Bank or such Lender’s or Issuing Bank’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or Issuing Bank’s
policies and the policies of such Lender’s or Issuing Bank’s holding company with respect to
capital adequacy), then from time to time the Company will pay to such Lender or Issuing Bank, as
the case may be, such additional amount or amounts as will compensate such Lender or Issuing Bank
or such Lender’s or Issuing Bank’s holding company for any such reduction suffered.

          (c) A certificate of a Lender or Issuing Bank setting forth the amount or amounts necessary to
compensate such Lender or Issuing Bank or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section shall be delivered to the Company and shall be conclusive
absent manifest error. The Company (or, in the case of paragraph (a), the Applicable Borrower)
shall pay such Lender or Issuing Bank, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.

          (d) Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant
to this Section shall not constitute a waiver of such Lender’s or Issuing Bank’s right to demand
such compensation; provided that no Borrower shall be required to compensate a Lender or
Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 270
days prior to the date that such Lender or Issuing Bank, as the case may be, notifies the Company
of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or
Issuing Bank’s intention to claim compensation therefor; provided further that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the
270-day period referred to above shall be extended to include the period of retroactive effect
thereof.

          SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurocurrency Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurocurrency

37

 

Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to
borrow, convert, continue or prepay any Eurocurrency Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.11(b)
and is revoked in accordance therewith) or (d) the assignment of any Eurocurrency Loan other than
on the last day of the Interest Period applicable thereto as a result of a request by the Company
pursuant to Section 2.19, then, in any such event, the Applicable Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event, which loss, cost or expense shall
be an amount equal to the amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such Loan had such event not
occurred, at the Eurocurrency Rate that would have been applicable to such Loan, for the period
from the date of such event to the last day of the then current Interest Period therefor (or, in
the case of a failure to borrow, convert or continue, for the period that would have been the
Interest Period for such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would bid were it to bid,
at the commencement of such period, for Dollar deposits in the applicable currency of a comparable
amount and period from other banks in the eurocurrency market. A certificate of any Lender setting
forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall
be delivered to the Applicable Borrower and shall be conclusive absent manifest error. The
Applicable Borrower shall pay such Lender the amount shown as due on any such certificate within 10
days after receipt thereof.

          SECTION 2.17. Taxes. (a) Withholding of Taxes; Gross-Up. Each payment by or
on account of any Credit Party under this Agreement or any Credit Document shall be made free and
clear of and without withholding or deduction for any Taxes, unless such withholding or deduction
is required by any law. If any Withholding Agent determines, in its sole discretion exercised in
good faith, that it is so required to withhold Taxes, then such Withholding Agent may so withhold
and shall timely pay the full amount of withheld Taxes to the relevant Governmental Authority in
accordance with applicable law. If such Taxes are Indemnified Taxes, then the amount payable by
such Credit Party shall be increased as necessary so that, net of such withholding (including such
withholding applicable to additional amounts payable under this Section), the applicable Recipient
receives the amount it would have received had no such withholding been made.

          (b) Payment of Other Taxes by the Borrower. The Credit Parties shall timely pay any
Other Taxes to the relevant Governmental Authority in accordance with applicable law.

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

          (d) Indemnification by the Applicable Borrower. The Credit Parties shall indemnify
each Recipient for any Indemnified Taxes that are withheld in respect of payment to, or paid or
payable by, such Recipient in connection with this Agreement or any Credit Document (including
amounts paid or payable under this Section 2.17(d)) and any reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes were correctly

38

 

or legally imposed or asserted by the relevant Governmental Authority. The indemnity under
this Section 2.17(d) shall be paid within 10 days after the Recipient delivers to the Applicable
Borrower a certificate stating the amount of any Indemnified Taxes so withheld, paid or payable by
such Recipient and describing the basis for the indemnification claim. Such certificate shall be
conclusive of the amount so paid or payable absent manifest error. Such Recipient shall deliver a
copy of such certificate to the Administrative Agent.

          (e) Indemnification by the Lenders. Each Lender shall severally indemnify the
Administrative Agent for any Taxes (but, in the case of any Indemnified Taxes, only to the extent
that any Credit Party has not already indemnified the Administrative Agent for such Indemnified
Taxes and without limiting the obligation of the Credit Parties to do so) attributable to such
Lender that are paid or payable by the Administrative Agent in connection with this Agreement and
any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority. The indemnity
under this Section 2.17(e) shall be paid within 10 days after the Administrative Agent delivers to
the applicable Lender a certificate stating the amount of Taxes so paid or payable by the
Administrative Agent. Such certificate shall be conclusive of the amount so paid or payable absent
manifest error

          (f) Status of Lenders. (i) Any Lender that is entitled to an exemption from, or
reduction of, any applicable withholding Tax with respect to any payments under this Agreement
shall deliver to the Applicable Borrower and the Administrative Agent, at the time or times
reasonably requested by such Borrower or the Administrative Agent, such properly completed and
executed documentation reasonably requested by such Borrower or the Administrative Agent as will
permit such payments to be made without, or at a reduced rate of, withholding. In addition, any
Lender, if requested by the Applicable Borrower or the Administrative Agent, shall deliver such
other documentation prescribed by law or reasonably requested by such Borrower or the
Administrative Agent as will enable such Borrower or the Administrative Agent to determine whether
or not such Lender is subject to any withholding (including backup withholding) or information
reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences,
the completion, execution and submission of such documentation (other than such documentation set
forth in Section 2.17(f)(ii)(A) through (E) below) shall not be required if in the Lender’s
judgment such completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal position of such Lender with
respect to any tax matter. Upon the reasonable request of such Borrower or the Administrative
Agent, any Lender shall update any form or certification previously delivered pursuant to this
Section 2.17(f) (to the extent it is legally eligible to do so). If any form or certification
previously delivered pursuant to this Section expires or becomes obsolete or inaccurate in any
respect with respect to a Lender, such Lender shall promptly (and in any event within 10 days after
such expiration, obsolescence or inaccuracy) notify such Borrower and the Administrative Agent in
writing of such expiration, obsolescence or inaccuracy and update the form or certification if it
is legally eligible to do so.

     (ii) Without limiting the generality of the foregoing, if the Applicable Borrower is a
U.S. Person, any Lender with respect to such Borrower shall, if it is legally eligible to do
so, deliver to such Borrower and the Administrative Agent (in such number of copies
reasonably requested by such Borrower and the Administrative Agent) on or

39

 

prior to the date on which such Lender becomes a party hereto, duly completed and
executed copies of whichever of the following is applicable:

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

          (B) in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to
which the United States is a party (1) with respect to payments of interest under any this
Agreement, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. Federal
withholding Tax pursuant to the “interest” article of such tax treaty and (2) with respect
to any other applicable payments under this Agreement, IRS Form W-8BEN establishing an
exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the “business
profits” or “other income” article of such tax treaty;

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

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

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

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

     (iii) If a payment made to a Lender under this Agreement would be subject to U.S.
Federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the
applicable reporting requirements of FATCA (including those contained in Section 1471(b) or
1472(b) of the Code, as applicable), such Lender shall deliver to the Withholding Agent, at
the time or times prescribed by law and at such time or times

40

 

reasonably requested by the Withholding Agent, such documentation prescribed by
applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such
additional documentation reasonably requested by the Withholding Agent as may be necessary
for the Withholding Agent to comply with its obligations under FATCA, to determine that such
Lender has or has not complied with such Lender’s obligations under FATCA and, as necessary,
to determine the amount to deduct and withhold from such payment. Solely for purposes of
this Section 2.17(f)(iii), “FATCA” shall include any amendments made to FATCA after the date
of this Agreement.

          (g) Treatment of Certain Refunds. If any party determines, in its sole discretion
exercised in good faith, that it has received a refund of any Taxes as to which it has been
indemnified pursuant to this Section 2.17 (including additional amounts paid pursuant to this
Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to
the extent of indemnity payments made under this Section with respect to the Taxes giving rise to
such refund), net of all out-of-pocket expenses (including any Taxes) of such indemnified party and
without interest (other than any interest paid by the relevant Governmental Authority with respect
to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay
to such indemnified party the amount paid to such indemnified party pursuant to the previous
sentence (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) in the event such indemnified party is required to repay such refund to such
Governmental Authority. Notwithstanding anything to the contrary in this Section 2.17(g), in no
event will any indemnified party be required to pay any amount to any indemnifying party pursuant
to this Section 2.17(g) if such payment would place such indemnified party in a less favorable
position (on a net after-Tax basis) than such indemnified party would have been in if the
indemnification payments or additional amounts giving rise to such refund had never been paid.
This Section 2.17(g) shall not be construed to require any indemnified party to make available its
Tax returns (or any other information relating to its Taxes which it deems confidential) to the
indemnifying party or any other Person.

          (h) Survival. Each party’s obligations under this Section 2.17 shall survive any
assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and
the repayment, satisfaction or discharge of all other obligations under the Credit Documents.

          (i) Issuing Bank. For purposes of paragraphs (e) and (f) of this Section, the term
“Lender” includes any Issuing Bank.

          SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) Each
Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16
or 2.17, or otherwise) prior to 12:00 noon, Local Time, on the date when due, in immediately
available funds, without set off or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such payments shall be
made to the Administrative Agent at its offices at 10 South Dearborn, Floor 7, Chicago, Illinois
60603, except payments to be made directly to any Issuing Bank or Swingline Lender as expressly
provided herein and except that payments pursuant to Sections

41

 

2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon
shall be payable for the period of such extension. All payments hereunder of (i) principal or
interest in respect of any Loan shall be made in the currency in which such Loan is denominated,
(ii) reimbursement obligations shall be made in the currency in which the Letter of Credit in
respect of which such reimbursement obligation exists is denominated or (iii) any other amount due
hereunder or under another Credit Document shall be made in Dollars. Any payment required to be
made by the Administrative Agent hereunder shall be deemed to have been made by the time required
if the Administrative Agent shall at or before such time have taken the necessary steps to make
such payment in accordance with the regulations or operating procedures of the clearing or
settlement system used by the Administrative Agent to make such payment.

          (b) So long as no Event of Default exists, all payments by any Borrower hereunder shall be
applied as directed by such Borrower ratably among the parties entitled thereto in accordance with
the amounts of payments then due to such parties. If at any time during the existence of an Event
of Default insufficient funds are received by and available to the Administrative Agent to pay
fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due
hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and unreimbursed LC Disbursements then due to such parties.

          (c) If any Lender shall, by exercising any right of set off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Revolving Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any
other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Revolving Loans and participations in LC Disbursements and Swingline
Loans of other Lenders without recourse or warranty from the other Lenders except as contemplated
by Section 9.04 in respect of assignments to the extent necessary so that the benefit of all such
payments shall be shared by the Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Revolving Loans and participations in LC
Disbursements and Swingline Loans; provided that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any
payment made by any Borrower pursuant to and in accordance with the express terms of this Agreement
or any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Company or any Subsidiary or Affiliate thereof

42

 

(as to which the provisions of this paragraph shall apply). Each Borrower consents to the
foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against such Borrower
rights of set-off and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of such Borrower in the amount of such participation.

          (d) Unless the Administrative Agent shall have received notice from the Applicable Borrower
prior to the date on which any payment is due to the Administrative Agent for the account of the
Lenders or any Issuing Bank hereunder that the Applicable Borrower will not make such payment, the
Administrative Agent may assume that the Applicable Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or such
Issuing Bank, as the case may be, the amount due. In such event, if the Applicable Borrower has
not in fact made such payment, then each of the Lenders or the applicable Issuing Bank, as the case
may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender or Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, (i) at the greater of the Federal Funds Effective Rate and a rate determined
by the Administrative Agent in accordance with banking industry rules on interbank compensation (in
the case of an amount denominated in Dollars) and (ii) the rate reasonably determined by the
Administrative Agent to be the cost to it of funding such amount (in the case of an amount
denominated in a Foreign Currency).

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to Section
2.05(c), 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), then the Administrative Agent may, in its
discretion and notwithstanding any contrary provision hereof, apply any amounts thereafter received
by the Administrative Agent for the account of such Lender and for the benefit of the
Administrative Agent or the applicable Issuing Bank to satisfy such Lender’s obligations under such
Sections until all such unsatisfied obligations are fully paid in any order determined by the
Administrative Agent in its discretion.

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if any Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or
2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Company hereby
agrees to pay, or to cause the Applicable Borrower to pay, all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

          (b) If any Lender requests compensation under Section 2.15, or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, or if any Lender becomes a Defaulting Lender, then the Company may, at
its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such
Lender to assign and delegate, without recourse (in

43

 

accordance with and subject to the restrictions contained in Section 9.04), all its interests,
rights and obligations under this Agreement to an assignee that shall assume such obligations
(which assignee may be another Lender, if a Lender accepts such assignment); provided that
(i) the Company shall have received the prior written consent of the Administrative Agent (and if a
Commitment is being assigned, each Issuing Bank), which consent shall not unreasonably be withheld,
(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its
Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under
Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result
in a reduction in such compensation or payments. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise,
the circumstances entitling the Company to require such assignment and delegation cease to apply.

          SECTION 2.20. Subsidiary Borrowers.

          (a) The Company may, at any time or from time to time, designate any Wholly-Owned Subsidiary
of the Company that is a Foreign Subsidiary as a “Subsidiary Borrower” hereunder by furnishing to
the Administrative Agent a Designation Letter in duplicate, duly completed and executed by the
Company and such Wholly-Owned Subsidiary, together with the items described in Section 4.01(e) and
(f) relating to such Subsidiary Borrower in substantially the same form and scope as those
delivered with respect to any Subsidiary Borrower designated on the date of this Agreement (or, as
the Administrative Agent may reasonably require if there were no such deliveries) and such other
documents as the Administrative Agent shall reasonably request. The Administrative Agent shall
promptly notify each Lender of any such designation by the Company and the Company shall promptly
furnish any related “know your customer” information requested by any Lender. Upon such
designation and the approval of the Administrative Agent and each Lender thereof (which approval
each Lender shall use commercially reasonable efforts to grant within ten (10) Business Days unless
such Lender has in good faith determined that there exists a practical or legal impediment to its
performance as a Lender with respect to such Foreign Subsidiary (or that it would incur any
incremental expense as a result of such designation for which it would not be entitled to be
compensated hereunder)), such designated Foreign Subsidiary shall become a Subsidiary Borrower
hereunder (with the related rights and obligations) and shall be entitled to request Revolving
Loans on and subject to the terms and conditions of, and to the extent provided in, this Agreement.

          (b) So long as all Loans made to any Subsidiary Borrower and any related obligations have been
paid in full, the Company may terminate the status of such Subsidiary Borrower as a Subsidiary
Borrower hereunder by furnishing to the Administrative Agent a Termination Letter in duplicate,
duly completed and executed by the Company and such Subsidiary. Any Termination Letter furnished
hereunder shall be effective upon receipt by the Administrative Agent, which shall promptly notify
the Lenders. Notwithstanding the foregoing, the delivery of a Termination Letter with respect to
any Subsidiary Borrower shall not terminate (i) any obligation of such Subsidiary Borrower that
remains unpaid at the time of such delivery

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or (ii) the obligations of the Company under the Parent Guaranty or any Subsidiary Guarantor
under the Subsidiary Guaranty with respect to any such unpaid obligations.

          SECTION 2.21. Additional Reserve Costs. (a) For so long as any Lender is required to
comply with (i) the requirements of the Bank of England and/or the Financial Services Authority
(or, in either case, any other authority which replaces all or any of its functions) or (ii) the
requirements of the European Central Bank, in each case in respect of such Lender’s Eurocurrency
Loans, such Lender shall be entitled to require the Applicable Borrower to pay, contemporaneously
with each payment of interest on each of such Loans, additional interest on such Loan at a rate per
annum equal to the Mandatory Costs Rate calculated in accordance with the formula and in the manner
set forth in Exhibit D hereto.

          (b) Each Applicable Borrower shall pay to each Lender, as long as such Lender shall be
required to maintain reserves with respect to liabilities or assets consisting of or including
Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest
on the unpaid principal amount of each Eurocurrency Loan equal to the actual costs of such reserves
allocated to such Loan by such Lender.

          (c) Any additional interest owed pursuant to paragraph (a) or (b) of this Section shall be
determined by the applicable Lender, which determination shall be conclusive absent manifest error,
and notified to the Applicable Borrower (with a copy to the Administrative Agent) at least five
Business Days before each date on which interest is payable for the applicable Loan, and such
additional interest so notified to the Applicable Borrower by such Lender shall be due and payable
to the Administrative Agent for the account of such Lender on each date on which interest is
payable for such Loan. If a Lender fails to give such notice at least five Business Days before
such date, then such additional interest shall be due and payable five Business Days after such
notice is given.

          SECTION 2.22. Defaulting Lenders.

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

          (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting
Lender pursuant to Section 2.12(a);

          (b) the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be
included in determining whether the Required Lenders have taken or may take any action hereunder
(including any consent to any amendment or waiver pursuant to Section 9.02); provided that
this clause (b) shall not apply to the vote of a Defaulting Lender in the case of an amendment,
waiver or other modification that proposes to (i) extend the scheduled maturity date of any
principal of any Loan of such Lender or extend the date for payment of any interest on any Loan of
such Lender or any fees payable to such Lender hereunder, (ii) increase or extend the Commitment
of such Lender or (iii) reduce the principal amount of any Loan of such Lender or the rate of
interest thereon (except for the waiver of any default rate) or any fees payable to such Lender
hereunder;

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

     (i) all or any part of such Swingline Exposure and LC Exposure shall be reallocated
among the non-Defaulting Lenders in accordance with their respective Applicable Percentages
but only to the extent (x) the sum of all non-Defaulting Lenders’ Revolving Credit Exposures
plus such Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the total
of all non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section 4.02
are satisfied at such time;

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the Company shall within one Business Day following notice by the
Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash
collateralize for the benefit of any Issuing Bank only the Borrowers’ obligations
corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial
reallocation pursuant to clause (i) above) in accordance with the procedures set forth in
Section 2.06(j) for so long as such LC Exposure is outstanding;

     (iii) if the Company cash collateralizes any portion of such Defaulting Lender’s LC
Exposure pursuant to clause (ii) above, the Company shall not be required to pay any fees to
such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s
LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

     (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause
(i) above, then the fees payable to the Lenders pursuant to Section 2.12(a) and Section
2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable
Percentages; or

     (v) if all or any portion of such Defaulting Lender’s LC Exposure is neither cash
collateralized nor reallocated pursuant to clause (i) or (ii) above, then, without prejudice
to any rights or remedies of any Issuing Bank or any other Lender hereunder, all letter of
credit fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC
Exposure shall be payable to the applicable Issuing Bank until such LC Exposure is cash
collateralized and/or reallocated; and

          (d) the Swingline Lender shall not be required to fund any Swingline Loan, and the Issuing
Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied
that the related exposure and such Defaulting Lender’s then outstanding LC Exposure will be 100%
covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by
the Company in accordance with Section 2.22(c), and participating interests in any such newly
issued or increased Letter of Credit or newly made Swingline Loan shall be allocated among
non-Defaulting Lenders in a manner consistent with Section 2.22(c)(i) (and such Defaulting Lender
shall not participate therein).

          In the event that the Administrative Agent, the Company, the Issuing Banks and the Swingline
Lender each agrees that a Defaulting Lender has adequately remedied all matters

46

 

that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure
of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such
date such Lender shall purchase at par such of the Loans of the other Lenders (other than Swingline
Loans) as the Administrative Agent shall determine may be necessary in order for such Lender to
hold such Loans in accordance with its Applicable Percentage.

ARTICLE III

Representations and Warranties

          The Company represents and warrants to the Administrative Agent and the Lenders that:

          SECTION 3.01. Organization; Powers. Each of the Company and each Subsidiary is duly
organized, validly existing and, to the extent such concept is applicable, in good standing under
the laws of the jurisdiction of its organization, has all requisite power and authority to carry on
its business as now conducted and, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, every jurisdiction where such qualification is
required.

          SECTION 3.02. Authorization; Enforceability. The Transactions are within the
Borrowers’ organizational powers and have been duly authorized by all necessary organizational and,
if required, stockholder action. As of the Effective Date (or such later date (including the
Second Amendment Effective Date) as any Credit Document is to be executed and delivered in
accordance with the terms hereof), each Credit Party has duly executed and delivered each of the
Credit Documents to which it is a party, and each of such Credit Documents constitutes its legal,
valid and binding obligation enforceable in accordance with its terms, except to the extent that
the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

          SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation that is binding on the Company or any
Subsidiary or the charter, by-laws, memorandum or articles of association or other organizational
documents of the Company or any Subsidiary or any order of any Governmental Authority, (c) will not
violate or result in a default under any material indenture, agreement or other instrument binding
upon the Company or any Subsidiary or on any of their respective assets, or give rise to a right
thereunder to require any payment to be made by the Company or any Subsidiary, and (d) will not
result in the creation or imposition of any Lien on any asset of the Company or any Subsidiary
(other than Liens granted pursuant to the Credit Documents).

          SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Company has
heretofore furnished to the Lenders its consolidated balance sheet and statements

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of income, stockholders equity and cash flows (i) as of and for the fiscal years ended June
30, 2010, reported on by Ernst & Young LLP, independent public accountants, and (ii) as of and for
the fiscal quarter and the portion of the fiscal year ended December 31, 2010, certified by its
President, a Vice President thereof or a Financial Officer. Such financial statements present
fairly, in all material respects, the financial position and results of operations and cash flows
of the Company and its consolidated Subsidiaries as of such dates and for such periods in
accordance with GAAP, subject to year end audit adjustments and the absence of footnotes in the
case of the statements referred to in clause (ii) above.

          (b) Since June 30, 2010, there has been no material adverse change in the business, assets,
properties, operations, or financial condition of the Company and its Subsidiaries, taken as a
whole.

          SECTION 3.05. Properties. (a) Each of the Company and each Subsidiary has good title
to, or valid leasehold interests in, all its real and personal property material to its business,
except for minor defects in title that do not interfere with its ability to conduct its business as
currently conducted or to utilize such properties for their intended purposes.

          (b) Each of the Company and each Subsidiary owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to its business, and the
use thereof by the Company and its Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.06. Litigation and Environmental Matters. (a) Except as disclosed in the
Company’s Form 10-Q filed with the Securities and Exchange Commission for the quarterly period
ending December 31, 2010, there are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of the Company, threatened against or
affecting the Company or any Subsidiary (i) as to which there is a reasonable possibility of an
adverse determination and that, if adversely determined, could reasonably be expected, individually
or in the aggregate, to result in a Material Adverse Effect or (ii) that involve any Credit
Document or the Transactions.

          (b) Except with respect to any other matters that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, neither the Company nor any
Subsidiary (i) has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental Liability.

          SECTION 3.07. Compliance with Organizational Documents and Laws. Each of the Company
and each Subsidiary is in compliance with (a) the charter, by-laws, memorandum or articles of
association or other organizational documents applicable to it and (b) all laws, regulations and
orders of any Governmental Authority applicable to it or its property, except, in each case, where
the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect. No Default has occurred and is continuing.

48

 

Neither the Company nor any Subsidiary is subject to any charter or other corporate
restriction which could reasonably be expected to have a Material Adverse Effect.

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

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

          SECTION 3.10. ERISA. (a) No ERISA Event has occurred or is reasonably expected to
occur that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect.

          (b) The amount (the “Domestic Underfunding Amount”) by which the present value of all
accumulated benefit obligations of all Plans (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87), as of the date of the most recent financial
statements reflecting such amounts, exceeds the fair market value of the assets of all Plans does
not, when aggregated with the Foreign Underfunding Amount (as defined in Section 3.12(b)), exceed
$150,000,000.

          SECTION 3.11. Disclosure. As of the Effective Date and, except as disclosed in the
Company’s Form 10-Q filed with the Securities and Exchange Commission for the quarterly period
ending December 31, 2010, as of the Second Amendment Effective Date, the Company has disclosed to
the Lenders all agreements, instruments and corporate or other restrictions to which it or any
Subsidiary is subject, and all other matters known to it, that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect. None of the reports,
financial statements, certificates or other information furnished by or on behalf of the Company to
the Administrative Agent or any Lender in connection with the negotiation of this Agreement or
delivered hereunder (as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that, with respect to projected financial information, the Company represents only
that such information was prepared in good faith based upon assumptions believed to be reasonable
at the time.

          SECTION 3.12. Foreign Pension Plans. (a) Except to the extent the failure to do so
could not reasonably be expected to have a Material Adverse Effect, (i) each Foreign Pension Plan
has been maintained in substantial compliance with its terms and in substantial compliance with the
requirements of any and all applicable laws, statutes, rules, regulations and orders (including all
funding requirements and the respective requirements of the governing documents for each such
Foreign Pension Plan) and has been maintained, where required, in good standing

49

 

with applicable regulatory authorities and (ii) all contributions required to be made with
respect to a Foreign Pension Plan have been timely made. Neither the Company nor any Subsidiary
has incurred any obligation in connection with the termination of or withdrawal from any Foreign
Pension Plan that could reasonably be expected to have a Material Adverse Effect. No actions or
proceedings have been taken or instituted to terminate or wind-up a Foreign Pension Plan that could
reasonably be expected to have a Material Adverse Effect.

          (b) The Dollar Equivalent of the amount (the “Foreign Underfunding Amount”) by which
the present value of the accrued benefit liabilities (whether or not vested) under all Foreign
Pension Plans, determined as of the end of the Company’s most recently ended fiscal year on the
basis of actuarial assumptions, each of which is reasonable, exceeds the current value of the
assets of all Foreign Pension Plans allocable to such benefit liabilities does not, when aggregated
with the Domestic Underfunding Amount, exceed $150,000,000.

          SECTION 3.13. Subsidiaries. As of the Second Amendment Effective Date, the Company
has no Subsidiaries other than those Subsidiaries listed on Schedule 3.13. Schedule
3.13 correctly sets forth, as of the Second Amendment Effective Date, the jurisdiction of
organization of each Subsidiary. Schedule 3.13 correctly identifies those Subsidiaries
which constitute Material Subsidiaries as of the Second Amendment Effective Date.

          SECTION 3.14. Environmental Matters. In the ordinary course of its business, the
officers of the Company consider the effect of Environmental Laws on the business of the Company
and its Subsidiaries, in the course of which they identify and evaluate potential risks and
liabilities accruing to the Company due to Environmental Laws. On the basis of this consideration,
the Company has concluded that Environmental Laws cannot reasonably be expected to have a Material
Adverse Effect. Neither the Company nor any Subsidiary has received any notice to the effect that
its operations are not in material compliance with any of the requirements of applicable
Environmental Laws or are the subject of any federal or state investigation evaluating whether any
remedial action is needed to respond to a release of any toxic or hazardous waste or substance into
the environment, which non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect.

          SECTION 3.15. Regulation U. Margin stock (as defined in Regulation U of the Board)
constitutes less than 25% of the value of those assets of the Company and its Subsidiaries which
are subject to any limitation on sale or pledge or any other restriction hereunder. None of the
making of any Loan or the use of the proceeds thereof, the issuance of any Letter of Credit
hereunder or any other aspect of the Transactions hereunder will violate or be inconsistent with
the provisions of Regulation T, Regulation U or Regulation X of the Board.

ARTICLE IV

Conditions

          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of
the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

50

 

          (a) The Administrative Agent (or its counsel) shall have received from each party hereto
either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy or email transmission of a
signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement.

          (b) The Borrowers shall have duly executed and delivered to the Administrative Agent (or its
counsel) a note payable to each applicable Lender that has requested a note in the amount of its
respective Commitment and all other Credit Documents shall have been duly executed and delivered by
the appropriate Credit Party to the Administrative Agent (or its counsel), all of which shall be in
full force and effect.

          (c) The Administrative Agent (or its counsel) shall have received from each Subsidiary
Guarantor a duly executed and delivered Subsidiary Guaranty.

          (d) The Administrative Agent (or its counsel) shall have received from the Company a duly
executed and delivered Parent Guaranty.

          (e) The Administrative Agent shall have received a favorable written opinion (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of Mayer Brown LLP, counsel for
the Borrowers, in form and substance reasonably satisfactory to the Administrative Agent and
covering such other matters relating to the Borrowers, this Agreement or the Transactions as the
Required Lenders shall reasonably request. The Company hereby requests such counsel to deliver
such opinion.

          (f) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the organization, existence
and, to the extent such concept is applicable, good standing of the Borrowers, the authorization of
the Transactions and any other legal matters relating to the Borrowers, this Agreement or the
Transactions, all in form and substance reasonably satisfactory to the Administrative Agent and its
counsel.

          (g) The Administrative Agent shall have received a certificate, dated the Effective Date and
signed by the President, a Vice President or a Financial Officer of the Company, confirming
compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02.

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

          (i) The Administrative Agent shall have received copies of all Governmental Authority and
third party approvals necessary or, in the reasonable discretion of the Administrative Agent,
advisable in connection with the Transactions and all other documents reasonably requested by the
Administrative Agent.

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          (j) The Administrative Agent shall have received evidence satisfactory to it that all amounts
owing under any existing bilateral credit agreement of the Company (but not of any Subsidiary) with
any Lender have been (or concurrently with the effectiveness hereof will be) paid in full.

          (k) If applicable, the Administrative Agent shall have received a Designation Letter for any
Subsidiary Borrower being designated as such as of the Effective Date.

The Administrative Agent shall notify the Company and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or waived pursuant to
Section 9.02) at or prior to 3:00 p.m., New York City time, on June 25, 2009 (and, in the event
such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

          SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, and of each Issuing Bank to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

     (a) The representations and warranties of the Company set forth in this Agreement shall
be true and correct in all material respects (except that any representation or warranty
which is already qualified as to materiality or by reference to Material Adverse Effect
shall be true and correct in all respects) on and as of the date of such Borrowing or the
date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable
(except any such representation or warranty that expressly relates to or is made expressly
as of a specific earlier date, in which case such representation or warranty shall be true
and correct in all material respects (except that any representation or warranty which is
already qualified as to materiality or by reference to Material Adverse Effect shall be true
and correct in all respects) with respect to or as of such specific earlier date).

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

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

ARTICLE V

Affirmative Covenants

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Company
covenants and agrees with the Lenders that:

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          SECTION 5.01. Financial Statements; Ratings Changes and Other Information. The
Company will furnish to the Administrative Agent:

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

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

     (c) concurrently with any delivery of financial statements under clause (a) or (b)
above, a certificate of a Financial Officer of the Company (i) certifying as to whether a
Default has occurred and, if a Default has occurred, specifying the details thereof and any
action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Sections 6.09 and 6.10 and (iii) stating
whether any change in GAAP or in the application thereof has occurred since the date of the
audited financial statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements accompanying such
certificate;

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

     (e) within 60 days following the first day of each fiscal year of the Company a copy of
the investor outlook presentation prepared by the Company for such fiscal year, which shall
be accompanied by the statement of a Financial Officer of the Company to the effect that, to
the best of his or her knowledge at the time made, such presentation is a reasonable
estimate for the periods covered thereby; and

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     (f) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of the Company or any Subsidiary, or
compliance with the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.

     Information required to be delivered pursuant to this Section 5.01 shall be deemed to have
been delivered if such information, or one or more annual or quarterly reports containing such
information, shall have been posted by the Administrative Agent on an IntraLinks or similar site to
which the Lenders have been granted access or such reports shall be available on the website of the
Securities and Exchange Commission at http://www.sec.gov or on the Company’s website at
http://www.molex.com and the Company has given notice that such reports are so available.
Information required to be delivered pursuant to this Section may also be delivered by electronic
communications pursuant to procedures approved by the Administrative Agent.

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

     (a) the occurrence of any Default;

     (b) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Company or any Affiliate
thereof as to which there is a reasonable possibility of an adverse determination and that,
if adversely determined, could reasonably be expected to result in a Material Adverse
Effect;

     (c) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Company and its Subsidiaries in an aggregate amount exceeding $10,000,000; and

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

Each notice delivered under this Section 5.02 shall be accompanied by a statement of a Financial
Officer or other executive officer of the Company setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken with respect
thereto.

          SECTION 5.03. Existence; Conduct of Business. The Company will, and will cause each
Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, licenses, permits, privileges and franchises
material to the conduct of its business; provided that the foregoing shall not prohibit any
merger, consolidation, liquidation or dissolution permitted under Section 6.03.

          SECTION 5.04. Payment of Obligations. The Company will, and will cause each
Subsidiary to, pay its obligations, including Tax liabilities but excluding Indebtedness, that, if
not paid, could reasonably be expected to result in a Material Adverse Effect before the same shall
become delinquent or in default, except where (a) the validity or amount thereof is being contested
in good faith by appropriate proceedings, (b) the Company or such Subsidiary has set

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aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the
failure to make payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect.

          SECTION 5.05. Maintenance of Properties; Insurance. The Company will, and will cause
each Subsidiary to, (a) use reasonable commercial efforts to keep and maintain all property
material to the conduct of its business in good working order and condition, ordinary wear and tear
excepted, and (b) maintain, with financially sound and reputable insurance companies, insurance in
such amounts and against such risks as are customarily maintained by companies engaged in the same
or similar businesses operating in the same or similar locations.

          SECTION 5.06. Books and Records; Inspection Rights. The Company will, and will cause
each Subsidiary to, keep proper books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and activities. The Company
will, and will cause each Subsidiary to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice and during normal business hours,
to visit and inspect its properties, to examine and make extracts from its books and records, and
to discuss its affairs, finances and condition with its officers and independent accountants, all
at such reasonable times and as often as reasonably requested; provided that (a) so long as
no Default exists, no Lender shall have the right to make more than two such visits or inspections
in any year, (b) each Lender shall coordinate its activities pursuant to this Section 5.06 with the
Administrative Agent so as to minimize the number of visits by Lenders and avoid disruption to the
businesses of the Company and its Subsidiaries and (c) the Company shall have the right to have
representatives present at and participate in any discussions with any independent accountants.

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

          SECTION 5.08. Use of Proceeds and Letters of Credit. The proceeds of the Loans will
be used only for general corporate purposes of the Company and its Subsidiaries, including the
refinancing of certain credit facilities of Molex Japan. No part of the proceeds of any Loan will
be used, whether directly or indirectly, for any purpose that entails a violation of any of the
Regulations of the Board, including Regulations T, U and X. Letters of Credit will be issued only
in support of the foregoing purposes.

          SECTION 5.09. Additional Guarantors.

     (a) Effective upon any Domestic Subsidiary which is not a Material Subsidiary on the
Second Amendment Effective Date (either because it is not a Subsidiary on the date hereof or
because it does not on the date hereof meet the criteria for a Material Subsidiary) becoming
a Material Subsidiary, the Company shall cause such Domestic Subsidiary to, within 10
Business Days (or such longer period to which the Administrative Agent may agree), execute
and deliver to the Administrative Agent for the benefit of the Guaranteed Parties a joinder
to the Subsidiary Guaranty reasonably

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acceptable to the Administrative Agent together with a legal opinion and such related
certificates and corporate documents as the Administrative Agent may reasonably request.
The Company shall promptly notify the Administrative Agent at any time at which any Domestic
Subsidiary becomes a Material Subsidiary.

     (b) If, following a change in the relevant sections of the Code or the regulations,
rules, rulings, notices or other official pronouncements issued or promulgated thereunder,
the Company does not within 30 days after a request from the Administrative Agent or the
Required Lenders deliver evidence, in form and substance reasonably satisfactory to the
Administrative Agent (which evidence may be in the form of an opinion of counsel), with
respect to any Subsidiary Borrower which has not already become party to the Subsidiary
Guaranty, that the entering into by such Subsidiary Borrower of a guaranty in substantially
the form of the Subsidiary Guaranty could reasonably be expected to cause (i) any
undistributed earnings of such Subsidiary Borrower or its parent as determined for Federal
income tax purposes to be treated as a deemed dividend to such Subsidiary Borrower’s direct
or indirect United States parent for Federal income tax purposes or (ii) other Federal
income tax consequences to the Credit Parties having an adverse financial consequence to any
Credit Party, then in the case of a failure to deliver the evidence described above, such
Subsidiary Borrower shall promptly execute and deliver the Subsidiary Guaranty (or another
guaranty in substantially similar form, if needed), guaranteeing the obligations of the
other Borrowers under the Credit Documents and under any Swap Agreement entered into with a
Guaranteed Party, in each case to the extent that the entering into of a Subsidiary Guaranty
is permitted by the laws of the respective foreign jurisdiction and with all documents
delivered pursuant to this Section 5.09(b) to be in form and substance reasonably
satisfactory to the Administrative Agent.

ARTICLE VI

Negative Covenants

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed, the Company covenants and agrees
with the Lenders that:

          SECTION 6.01. Indebtedness. The Company will not, and will not permit any Subsidiary
to, create, incur, assume or permit to exist any Indebtedness, except:

          (a) Indebtedness under the Credit Documents;

          (b) Indebtedness existing on, or arising under lines of credit existing on (or anticipated to
be entered into shortly after), the Second Amendment Effective Date, in each case as set forth on
Schedule 6.01, and extensions, renewals and replacements of any such Indebtedness that do
not increase the outstanding principal or committed amount thereof except as contemplated by such
Schedule;

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          (c) intercompany Indebtedness arising out of loans or advances permitted by Section 6.04(c),
(k) or (l);

          (d) Guarantees of Indebtedness of the Company or any Wholly Owned Subsidiary of the Company to
the extent permitted by Section 6.04(c), (k) or (l);

          (e) Entrust Indebtedness;

          (f) Factoring Indebtedness of Molex Japan in an aggregate principal amount at no time
exceeding $35,000,000;

          (g) contingent obligations of the Company or any Subsidiary under letters of credit issued and
letters of guaranty obtained to support underlying obligations that do not constitute Indebtedness
so long as the aggregate amount of all such contingent obligations (excluding obligations permitted
by another provision of this Section 6.01) do not at any time exceed $25,000,000;

          (h) Indebtedness of the Company or any Subsidiary as an account party in respect of ordinary
course of business trade letters of credit;

          (i) other Indebtedness of External Subsidiaries in an aggregate outstanding principal amount
at no time exceeding $100,000,000; and

          (j) other Indebtedness (including Guarantees) of the Credit Parties so long as, both before
and after giving effect to the incurrence of such Indebtedness, the Company is in Pro Forma
Compliance.

          SECTION 6.02. Liens. The Company will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any asset now owned or hereafter acquired by
it, or assign or sell any income or revenues (including accounts receivable) or rights in respect
of any thereof, except:

     (a) Permitted Encumbrances;

     (b) any Lien on any asset of the Company or any Subsidiary existing on the Second
Amendment Effective Date and set forth in Schedule 6.02; provided that (i)
such Lien shall not apply to any asset of the Company or any Subsidiary other than the
assets described on such Schedule (and the proceeds thereof) and (ii) such Lien shall secure
only those obligations which it secures on the Second Amendment Effective Date and
extensions, renewals and replacements thereof that do not increase the outstanding principal
amount thereof;

     (c) any Lien existing on any asset prior to the acquisition thereof by the Company or
any Subsidiary or existing on any asset of any Person that becomes a Subsidiary after the
date hereof prior to the time such Person becomes a Subsidiary; provided that (i)
such Lien is not created in contemplation of or in connection with such acquisition or such
Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any
other assets of the Company or any Subsidiary and (iii) such Lien shall

57

 

secure only those obligations which it secures on the date of such acquisition or the
date such Person becomes a Subsidiary, as the case may be and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount thereof;

     (d) Liens on fixed assets acquired, constructed or improved by the Company or any
Subsidiary; provided that (i) such security interests secure Indebtedness (including
Capital Lease Obligations) at no time exceeding $35,000,000 in aggregate outstanding
principal amount, (ii) such security interests and the Indebtedness secured thereby are
incurred prior to or within 90 days after such acquisition or the completion of such
construction or improvement, (iii) the Indebtedness secured thereby does not exceed 100% of
the cost of acquiring, constructing or improving such fixed assets and (iv) such security
interests shall apply only to such fixed assets and proceeds thereof;

     (e) Liens arising out of and securing Entrust Indebtedness;

     (f) Liens in factored receivables securing Factoring Indebtedness permitted by Section
6.01(f); and

     (g) other Liens securing obligations at no time exceeding $35,000,000 in aggregate
principal amount.

          SECTION 6.03. Fundamental Changes. (a) The Company will not, and will not permit any
Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Default shall have occurred and be continuing (i) any
Person may merge into the Company in a transaction in which the Company is the surviving
corporation, (ii) any Person may merge into any Subsidiary in a transaction in which the surviving
entity is a Subsidiary (and, if either such Subsidiary is a Subsidiary Guarantor, then the
surviving entity shall also be a Subsidiary Guarantor) and (iii) any Subsidiary may liquidate or
dissolve if the Company determines in good faith that such liquidation or dissolution is in the
best interests of the Company and is not materially disadvantageous to the Lenders;
provided that any such merger involving a Person that is not a Wholly-Owned Subsidiary
immediately prior to such merger shall not be permitted unless also permitted by Section 6.04.

          (b) The Company will not, nor will it permit any Subsidiary to, make any Asset Disposition
except for (i) Asset Dispositions among Credit Parties, (ii) Asset Dispositions among External
Subsidiaries, (iii) Asset Dispositions from External Subsidiaries to Credit Parties, (iv) Asset
Dispositions expressly permitted by Section 6.04(a) through (l) or Section 6.06, (v) transfers of
accounts receivable (and rights ancillary thereto) of Molex Japan pursuant to, and in accordance
with the terms of, the factoring agreement pursuant to which the Factoring Indebtedness referred to
in Section 6.01(f) is incurred, and (vi) other Asset Dispositions (including pursuant to the last
sentence of Section 6.04) of property that, together with all other property of the Company and its
Subsidiaries previously leased, sold or disposed of in Asset Dispositions made pursuant to this
Section 6.03(b)(vi) during the twelve-month period ending with the month in which any such lease,
sale or other disposition occurs, do not constitute a Substantial Portion of the property of the
Company and its Subsidiaries.

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          (c) The Company will not, and will not permit any Subsidiary to, engage to any material extent
in any business other than businesses of the type conducted by the Company and its Subsidiaries on
the date of execution of this Agreement and businesses reasonably related thereto.

          SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The Company
will not, and will not permit any Subsidiary to, purchase, hold or acquire (including pursuant to
any merger with any Person that was not a Wholly-Owned Subsidiary prior to such merger) any capital
stock, evidences of indebtedness or other securities (including any option, warrant or other right
to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee
any obligations of, or make or permit to exist any investment or any other interest in, any other
Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any
assets of any other Person constituting a business unit, except:

          (a) Permitted Investments;

          (b) existing investments in Subsidiaries and other investments, loans and advances existing
(or required to be made pursuant to existing commitments) on the Second Amendment Effective Date
and described in Schedule 6.04;

          (c) loans, advances, investments or Guarantees made by the Company to, in or in respect of the
obligations of any Subsidiary or made by any Subsidiary to, in or in respect of the obligations of
the Company or any other Subsidiary; provided, that the aggregate amount of all outstanding
loans, advances and Guarantees and the amount of all investments, in each case made in reliance on
this clause (c), shall at no time exceed the total of (i) $150,000,000 plus (ii) the aggregate net
cash proceeds of any sale or liquidation by any Credit Party of any such investment or of any
repayment to any Credit Party of any such loan or advance, in each case previously made in reliance
on this clause (c) (not to exceed the initial cost of such investment or the principal amount of
such loan or advance);

          (d) Guarantees constituting Indebtedness permitted by Section 6.01 subject, in the case of
intercompany Guarantees, to the limitations set forth in Sections 6.04(c), (k) or (l);

          (e) subject to the provisions of this Section 6.04(e) and the requirements contained in the
definition of Permitted Acquisition, the Company and its Wholly-Owned Subsidiaries may from time to
time effect Permitted Acquisitions, so long as: (i) no Default shall have occurred and be
continuing at the time of the consummation of the proposed Permitted Acquisition or immediately
after giving effect thereto; (ii) immediately after giving pro forma effect to such proposed
Permitted Acquisition and any Indebtedness to be incurred in connection therewith, the Company is
in Pro Forma Compliance; (iii) if the proposed Permitted Acquisition is for aggregate consideration
of $50,000,000 or more, the Company shall have given to the Administrative Agent written notice of
such proposed Permitted Acquisition on the earlier of (x) the date on which the Permitted
Acquisition is publicly announced and (y) ten (10) Business Days prior to consummation of such
Permitted Acquisition (or such shorter period of time as may be reasonably acceptable to the
Administrative Agent), which notice shall be executed by the President, a Vice President or a
Financial Officer of the Company and (A) shall describe in reasonable detail the principal terms
and conditions of such Permitted Acquisition and (B)

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include computations in reasonable detail reflecting that the Company is in Pro Forma
Compliance as required by clause (ii) of this Section 6.04(e); and (iv) at the time of any such
Permitted Acquisition involving the creation or acquisition of a Subsidiary, or the acquisition of
capital stock or other Equity Interest of any Person, the Company and its Subsidiaries shall have
complied with Section 5.09;

          (f) investments constituting Entrust Indebtedness;

          (g) bank deposits in the ordinary course of business;

          (h) payroll, travel and similar advances in the ordinary course of business;

          (i) investments (including debt obligations) received in connection with the bankruptcy or
reorganization of suppliers and customers and in good faith settlement of delinquent obligations,
or other disputes with, customers and suppliers, in each case in the ordinary course of business;

          (j) investments (including debt obligations) arising in connection with the sale of assets;

          (k) other loans, advances, investments and Guarantees by the Credit Parties made after the
Second Amendment Effective Date; provided, that the aggregate amount of all outstanding
loans, advances and Guarantees and the amount of all investments, in each case made in reliance on
this clause (k), shall at no time exceed the total of (i) $50,000,000 plus (ii) the aggregate net
cash proceeds received by the Company or any Subsidiary in connection with the sale of its existing
investment in Hi-P International Ltd. plus (iii) the aggregate net cash proceeds of any
sale or liquidation by any Credit Party of any such investment or of any repayment to any Credit
Party of any such loan or advance, in each case previously made in reliance on this clause (k) (not
to exceed the initial cost of such investment or the principal amount of such loan or advance); and

          (l) other loans, advances, investments and Guarantees by External Subsidiaries made after the
Second Amendment Effective Date; provided, that the aggregate amount of all outstanding
loans, advances and Guarantees and the amount of all investments, in each case made in reliance on
this clause (l), shall at no time exceed the total of (i) $100,000,000 plus (ii) the aggregate net
cash proceeds of any sale or liquidation by any External Subsidiary of any such investment or of
any repayment to any External Subsidiary of any such loan or advance, in each case previously made
in reliance on this clause (l) (not to exceed the initial cost of such investment or the principal
amount of such loan or advance).

For purposes of this Section 6.04, Equity Interests in any Foreign Subsidiary transferred by a
Credit Party to an External Subsidiary for bona fide tax planning purposes shall not be deemed an
investment in such External Subsidiary; provided that any such transfer must otherwise be
permitted pursuant to Section 6.03(b). For purposes of Sections 6.04(c), (k) and (l), (1)
investments shall be valued at all times as the Dollar Equivalent thereof at the time made
regardless of any subsequent change in the value or amount thereof due to appreciation, loss of
value, currency fluctuation or otherwise or any dividends or similar distributions thereon (but
giving effect to any redemption or other return of the capital amount of any such investment not

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exceeding the initial cost of such investment) and (2) loans, advances and Guarantees shall at all
times be deemed to be in the Dollar Equivalent of the then outstanding amount thereof determined,
in the case of any of the foregoing denominated in a Foreign Currency, using the Exchange Rate with
respect to such Foreign Currency as of the time such loan, advance or Guarantee was made.

          SECTION 6.05. Swap Agreements. The Company will not, and will not permit any
Subsidiary to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks to which the Company or any Subsidiary has actual exposure (other than those in
respect of Equity Interests of the Company or any Subsidiary), and (b) Swap Agreements entered into
in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from
one floating rate to another floating rate or otherwise) with respect to any interest-bearing
liability or investment of the Company or any Subsidiary.

          SECTION 6.06. Restricted Payments. The Company will not, and will not permit any
Subsidiary to, declare, pay or make, or agree to declare, pay or make, directly or indirectly, any
Restricted Payment, except (a) the Company may declare and pay dividends with respect to its Equity
Interests payable solely in additional shares of its common stock, (b) Subsidiaries may declare and
pay dividends ratably with respect to their Equity Interests, (c) so long as no Default exists
immediately prior to or immediately after giving effect to any such Restricted Payment, the Company
may make other Restricted Payments of up to $27,000,000 in the aggregate during any calendar
quarter and (d) so long as no Default exists immediately prior to or immediately after giving
effect to any such Restricted Payment, the Company may make other Restricted Payments (i) if after
giving effect to such Restricted Payment, the Leverage Ratio (calculated based on EBITDA for the
most recently ended period of four fiscal quarters of the Company for which financial statements
are available (the “Reference EBITDA”)) is less than 1.00:1.00, in amounts which, when
added to all other Restricted Payments made by the Company during the one year period ending on the
date of such Restricted Payment (including any Restricted Payments made in reliance on clause (c)
of this Section 6.06), do not exceed 75% of the Reference EBITDA; and (ii) if after giving effect
to such Restricted Payment, the Leverage Ratio (calculated based on the Reference EBITDA) is
greater than or equal to 1.00:1.00, in amounts which, when added to all other Restricted Payments
made by the Company during the one year period ending on the date of such Restricted Payment
(including any Restricted Payments made in reliance on clause (c) of this Section 6.06), do not
exceed 60% of the Reference EBITDA.

          SECTION 6.07. Transactions with Affiliates. The Company will not, and will not
permit any Subsidiary to, sell, lease or otherwise transfer any assets to, or purchase, lease or
otherwise acquire any assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not
less favorable to the Company or such Subsidiary than could be obtained on an arm’s-length basis
from unrelated third parties, (b) transactions between or among Credit Parties and not involving
any other Affiliate, (c) transactions between or among External Subsidiaries and not involving any
other Affiliate, (d) transfers of assets which, pursuant to the last sentence of Section 6.04, do
not constitute investments in External Subsidiaries and (e) any Restricted Payment permitted by
Section 6.06.

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          SECTION 6.08. Restrictive Agreements. The Company will not, and will not permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement or other
arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Company
or any Subsidiary to create, incur or permit to exist any Lien upon any of its assets to secure the
obligations of the Borrowers hereunder or under any guaranty thereof, or (b) the ability of any
Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock
or to make or repay loans or advances to the Company or any other Subsidiary or to Guarantee
Indebtedness of the Company or any other Subsidiary; provided that (i) the foregoing shall
not apply to restrictions and conditions imposed by law or by this Agreement or any Swap Agreement
with a Lender or an Affiliate of a Lender that incorporates the covenants herein by reference, (ii)
the foregoing shall not apply to restrictions and conditions existing or anticipated on the Second
Amendment Effective Date identified on Schedule 6.08 (but shall apply to any extension or
renewal of, or any amendment or modification of, any such restriction or condition expanding the
scope thereof), (iii) the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Subsidiary pending such sale, provided
that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale
is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or
conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if
such restrictions or conditions apply only to the assets securing such Indebtedness and (v) clause
(a) of the foregoing shall not apply to customary provisions in leases and other contracts
restricting the assignment thereof.

          SECTION 6.09. Minimum Fixed Charge Coverage Ratio. The Company will not permit the
Fixed Charge Coverage Ratio as of the end of any fiscal quarter of the Company to be less than
1.50:1.00.

          SECTION 6.10. Maximum Leverage Ratio. The Company will not permit the Leverage Ratio
as of the end of any fiscal quarter of the Company to be greater than 2.50:1.00.

          SECTION 6.11. Fiscal Year. The Company will not, nor will it permit any Subsidiary
to, change its fiscal year to end on any date other than June 30 of each year; provided,
that any Subsidiary may change its fiscal year to end on December 31 of each year.

          SECTION 6.12. Subordinated Indebtedness; Other Indebtedness and Payments. The
Company will not, and will not permit any Subsidiary to, make any amendment or modification to the
indenture, note or other agreement evidencing or governing any subordinated Indebtedness or
directly or indirectly voluntarily prepay, defease or in substance defease, purchase, redeem,
retire or otherwise acquire, any subordinated Indebtedness prior to the date when due while a
Default has occurred and is continuing or in violation of any relevant term of subordination.

ARTICLE VII

Events of Default

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

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     (a) any Borrower shall fail to pay any principal of any Loan or any cash collateral
amount due pursuant to Section 2.06(j) when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

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

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

     (d) the Company shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.02, 5.03 (with respect to the Company’s existence) or 5.08 or in
Article VI;

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

     (f) the Company or any Subsidiary shall fail to make any payment (whether of principal
or interest and regardless of amount) in respect of any Material Indebtedness, when and as
the same shall become due and payable (subject to any applicable grace period);

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

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, winding-up, administration, reorganization or other relief in
respect of the Company or any Subsidiary or its debts, or of a substantial part of

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its assets, under any Federal, state or foreign bankruptcy, insolvency, administration,
receivership or similar law now or hereafter in effect or (ii) the appointment of a
liquidator, receiver, trustee, custodian, sequestrator, conservator, administrator,
administrative receiver or similar official for the Company or any Subsidiary or for a
substantial part of its assets, and, in any such case, such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

     (i) the Company or any Subsidiary shall (i) voluntarily commence any proceeding or file
any petition seeking liquidation, winding-up, administration, reorganization or other relief
under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now
or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely
and appropriate manner, any proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a liquidator, receiver, trustee, custodian,
sequestrator, conservator, administrator or similar official for the Company or any
Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors or (vi) take any action for the purpose of
effecting any of the foregoing;

     (j) the Company or any Subsidiary shall become unable, admit in writing its inability
or fail generally to pay its debts as they become due;

     (k) one or more judgments for the payment of money in an aggregate amount in excess of
$10,000,000 shall be rendered against the Company, any Subsidiary or any combination thereof
and the same shall remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be legally taken by one or
more judgment creditors to attach or levy upon any assets of the Company or any Subsidiary
to enforce one or more judgments in such aggregate amount;

     (l) an ERISA Event or circumstance in respect of any Foreign Pension Plan shall have
occurred that, in the reasonable opinion of the Required Lenders, when taken together with
all other ERISA Events and such circumstances that have occurred, could reasonably be
expected to result in a Material Adverse Effect;

     (m) a Change in Control shall occur; or

     (n) except as otherwise provided in Section 6.03(a), the Parent Guaranty, the
Subsidiary Guaranty or any provisions thereof shall cease to be in full force or effect as
to the Company or any Subsidiary Guarantor, or the Company, any Subsidiary Guarantor or any
Person acting for or on behalf of the Company or any Subsidiary Guarantor shall deny or
disaffirm the Company’s or such Subsidiary Guarantor’s obligations under the Parent Guaranty
or the Subsidiary Guaranty, as applicable;

then, and in every such event (other than an event with respect to any Credit Party described in
clause (h) or (i) of this Article), and at any time thereafter during the continuance of such
event,

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the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Company, take either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrowers accrued hereunder, shall
become due and payable immediately, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrowers; and in case of any event with respect to any
Credit Party described in clause (h) or (i) of this Article, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrowers.

ARTICLE VIII

The Administrative Agent

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

          The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Company or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to the Company or any Subsidiary that is
communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in
any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number or percentage of
the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the
absence of its own gross negligence or willful misconduct. The Administrative Agent shall be
deemed not to have knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by the

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

          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for any
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

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

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Banks and the Company. Upon any such resignation, the Required Lenders shall have the
right, in consultation with the Company, to appoint a successor. If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative
Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent
which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon
the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder. The fees payable by the Company to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Company and such successor. After the Administrative Agent’s resignation hereunder, the provisions
of this Article and Section 9.03 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while it was acting as Administrative Agent.

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

          The Administrative Agent shall be permitted from time to time to designate one of its
Affiliates to perform the duties to be performed by the Administrative Agent hereunder with respect
to Loans and Borrowings denominated in Foreign Currencies. The provisions of this Article
VIII and the other provisions of this Agreement shall apply to any such Affiliate
mutatis mutandis.

          No Lender identified in this Agreement as a “Co-Documentation Agent” or a “Co-Syndication
Agent” shall have any right, power, obligation, liability, responsibility or duty under this
Agreement other than those applicable to all Lenders as such. Without limiting the foregoing, none
of such Lenders shall have or be deemed to have a fiduciary relationship with any Lender. Each
Lender hereby makes the same acknowledgments with respect to such Lenders as it makes with respect
to the Agent in this Article VIII.

          Without limiting the foregoing, if all of the Equity Interests held by the Company and its
Subsidiaries in any Subsidiary Guarantor are sold or transferred in a transaction permitted
hereunder (other than to the Company or to a Subsidiary thereof), such Subsidiary Guarantor and its
subsidiaries shall be released from the Subsidiary Guaranty upon the consummation of such
transaction and the Administrative Agent is authorized and directed to take any actions deemed
appropriate in order to effect the foregoing.

ARTICLE IX

Miscellaneous

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

     (i) if to the Company or any Subsidiary Borrower, to it at Molex Incorporated, 2222
Wellington Court, Lisle, Illinois 60532, Attention of David D. Johnson (Telecopy No. (630)
416-4936);

     (ii) if to the Administrative Agent, to JPMorgan Chase Bank, National Association, 10
South Dearborn Street, Floor 7, Chicago, IL 60603, Attention of Nanette Wilson (Telecopy No.
(312) 385-7098);

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     (iii) if to the Administrative Agent for Eurocurrency Loans in Foreign Currencies, to
J.P. Morgan Europe Limited, 125 London Wall, London EC1W 2JD, Attention of Ching Loh/The
Manager, Telecopy No. +44(0) 207 777 2360);

     (iv) if to JPMorgan in its capacity as Issuing Bank, to it at 10 South Dearborn Street,
Floor 7, Chicago, IL 60603, Attention of Nanette Wilson (Telecopy No. (312) 385-7098);

     (v) if to the Swingline Lender, to it at 10 South Dearborn Street, Floor 7, Chicago, IL
60603, Attention of Nanette Wilson (Telecopy No. (312) 385-7098); and

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

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

          (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

          SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Administrative
Agent, any Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Administrative Agent, the Issuing Banks and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or consent to any departure by the Borrowers therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver
or consent shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of
Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative
Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Company and the Required
Lenders or by the Company and the Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the

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Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal
amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the
scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest
thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment,
or postpone the scheduled date of expiration of any Commitment, without the written consent of each
Lender affected thereby, (iv) change Section 2.18(b) or (c) in a manner that would alter the pro
rata sharing of payments required thereby, without the written consent of each Lender, (v) change
any of the provisions of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to (A) waive, amend or
modify any rights hereunder, (B) make any determination or grant any consent hereunder, (C) approve
any Foreign Currency hereunder or (D) approve any Subsidiary Borrower pursuant to Section 2.20(a),
without the written consent of each Lender or (vi) except in connection with a transaction
permitted by Section 6.03, release any Subsidiary Guarantor (which at the time of such release is a
Material Subsidiary) from its obligations under the Subsidiary Guaranty, without the written
consent of each Lender; provided further that no such agreement shall amend, modify
or otherwise affect the rights or duties of the Administrative Agent, any Issuing Bank or the
Swingline Lender hereunder without the prior written consent of the Administrative Agent, such
Issuing Bank or the Swingline Lender, as the case may be, and, without limiting the foregoing,
Section 2.22 shall not be amended or modified without the consent of each of such parties.
Notwithstanding the foregoing, upon the execution and delivery of all documentation required by the
Administrative Agent to be delivered pursuant to Section 2.09(d) in connection with an increase in
the Commitments, this Agreement shall be deemed amended without further action by any Lender or any
Credit Party to reflect, as applicable, the new Lenders and the terms of their new Commitments or
Loans.

          SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Company shall pay (i) all
reasonable and documented out of pocket expenses incurred by the Administrative Agent and its
Affiliates, including the reasonable and documented fees, charges and disbursements of counsel for
the Administrative Agent, in connection with the syndication of the credit facilities provided for
herein, the preparation and administration of the Credit Documents or any amendments, modifications
or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby
or thereby shall be consummated), (ii) all reasonable and documented out-of-pocket expenses
incurred by any Issuing Bank in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented
out-of-pocket expenses incurred by the Administrative Agent, any Issuing Bank or any Lender,
including the reasonable and documented fees, charges and disbursements of any counsel for the
Administrative Agent, any Issuing Bank or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement, including its rights under this
Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all
such out-of pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit.

          (b) The Company shall indemnify the Administrative Agent, each Issuing Bank and each Lender,
and each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all

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losses, claims, damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto
of their respective obligations hereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds
therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Company or any Subsidiary, or any
Environmental Liability related in any way to the Company or any Subsidiary, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be available
to the extent that such losses, claims, damages, liabilities or related expenses are determined by
a court of competent jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee or any of its Affiliates. This Section
9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses or damages
arising from any non-Tax claim.

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

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

          (e) All amounts due under this Section shall be payable promptly after written demand
therefor.

          SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of
Credit), except that (i) the Borrowers may not assign or otherwise transfer any of their respective
rights or obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrowers without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder

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except in accordance with this Section. Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues
any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and,
to the extent expressly contemplated hereby, the Related Parties of each of the Administrative
Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

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

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

          (C) each Issuing Bank.

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

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

          (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement;

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

          (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire in which the assignee designates one or more credit
contacts to whom all syndicate-level information (which may contain material non-public
information about the Company and its affiliates, the other Credit Parties and their related
parties or their respective securities) will be made available and

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who may receive such information in accordance with the assignee’s compliance
procedures and applicable laws, including Federal and state securities laws.

          For the purposes of this Section 9.04(b), the term “Approved Fund” has the following
meaning:

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

     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03).
Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

     (iv) The Administrative Agent, acting for this purpose as an agent of the Borrowers,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered to
it and a register for the recordation of the names and addresses of the Lenders, and the
Commitment of, and principal amount of (and interest on) the Loans and LC Disbursements
owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, and the Borrowers,
the Administrative Agent, the Issuing Banks and the Lenders may treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by any Borrower, any Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

     (v) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b)(ii)(C) of this Section and any written consent to such
assignment required by paragraph (b)(i) of this Section, the Administrative Agent shall
accept such Assignment and Assumption and record the information contained therein in the
Register; provided that if either the assigning Lender or the assignee shall have
failed to make any payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or
(e), 2.07(b), 2.18(d) or 9.03(c), the Administrative Agent

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shall have no obligation to accept such Assignment and Assumption and record the
information therein in the Register unless and until such payment shall have been made in
full, together with all accrued interest thereon. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in this
paragraph.

          (c) (i) Any Lender may, without the consent of the Borrowers, the Administrative Agent, any
Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrowers, the Administrative Agent, the Issuing Banks and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 9.02(b) that affects such Participant. The
Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and
2.17 (subject to the requirements and limitations therein, including the requirements under Section
2.17(f) (it being understood that the documentation required under Section 2.17(f) shall be
delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to paragraph (b) of this Section; provided that such
Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an
assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater
payment under Sections 2.15 or 2.17, with respect to any participation, than its participating
Lender would have been entitled to receive, except to the extent such entitlement to receive a
greater payment results from a Change in Law that occurs after the Participant acquired the
applicable participation. To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be
subject to Section 2.18(c) as though it were a Lender.

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

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Register as the owner of such participation for all purposes of this Agreement
notwithstanding any notice to the contrary.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

          SECTION 9.05. Survival. All covenants, agreements, representations and warranties
made by the Borrowers herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that the Administrative Agent, any Issuing Bank or any
Lender may have had notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended hereunder, and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any fee or any other amount payable under
this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not expired or terminated. The provisions of Sections 2.15, 2.16, 2.17 and 9.03
and Article VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Commitments or the termination of this Agreement or
any provision hereof.

          SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy or email (in a .pdf or
similar file) shall be effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 9.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

74

 

          SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of any Borrower against
any of and all the obligations of such Person now or hereafter existing under this Agreement held
by such Lender, irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of setoff) which such
Lender may have.

          SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of Illinois.

          (b) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of the courts of the State of Illinois sitting in
Cook County and of the United States District Court of the Northern District of Illinois, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such Illinois State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that the
Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement against the Borrowers or their respective properties in the
courts of any jurisdiction.

          (c) Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS

75

 

REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

          SECTION 9.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Confidentiality. Each of the Administrative Agent, the Issuing Banks
and the Lenders agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to any Borrower and its obligations, (g) with the consent of the Company or (h) to the
extent such Information (i) becomes publicly available other than as a result of a breach of this
Section or (ii) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a
non-confidential basis from a source other than the Company or any Affiliate thereof. For the
purposes of this Section, “Information” means all information received from the Company or
any Affiliate thereof relating to the Company or its business, other than any such information that
is available to the Administrative Agent, any Issuing Bank or any Lender on a non-confidential
basis prior to disclosure by the Company or any Affiliate thereof. Any Person required to maintain
the confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

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

76

 

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

          SECTION 9.13. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

          SECTION 9.14. USA PATRIOT Act. Each Lender that is subject to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”) hereby notifies the Borrowers that pursuant to the requirements of the Act, it is
required to obtain, verify and record information that identifies such Person, which information
includes the names and addresses of the Borrowers and other information that will allow such Lender
to identify the Borrowers in accordance with the Act.

          SECTION 9.15. Conversion of Currencies. (a) If, for the purpose of obtaining
judgment in any court, it is necessary to convert a sum owing hereunder in one currency into
another currency, each party hereto agrees, to the fullest extent that it may effectively do so,
that the rate of exchange used shall be that at which in accordance with normal banking procedures
in the relevant jurisdiction the first currency could be purchased with such other currency on the
Business Day immediately preceding the day on which final judgment is given.

          (b) The obligations of each Borrower in respect of any sum due to any party hereto or any
holder of the obligations owing hereunder (the “Applicable Creditor”) shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than the
currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be
discharged only to the extent that, on the Business Day following receipt by the Applicable
Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance

77

 

with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency
with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the
sum originally due to the Applicable Creditor in the Agreement Currency, each Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor
against such loss; and if the amount of the Agreement Currency so purchased exceeds the sum
originally due to the Applicable Credit in the Agreement Currency, the Applicable Creditor shall
return such excess to the Applicable Borrower. The obligations of the Borrowers contained in this
Section 9.15 shall survive the termination of this Agreement and the payment of all other amounts
owing hereunder.

          SECTION 9.16. Appointment. Each Subsidiary Borrower hereby authorizes and empowers
the Company to act as its representative and attorney-in-fact for the purposes of signing documents
and giving and receiving notices (including borrowing requests and interest elections hereunder)
and other communications in connection with the this Agreement and the transactions contemplated
thereby and for the purposes of modifying or amending any provision of this Agreement and further
agrees that the Administrative Agent and each Lender may conclusively rely on the foregoing
authorization.

          SECTION 9.17. Termination of Bilateral Lines of Credit. Each Lender with whom the
Company (but not any Subsidiary) has an uncommitted bilateral line of credit as of the Effective
Date agrees that such line of credit shall be terminated upon the effectiveness of this Agreement.

[signature pages follow]

78

 

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

	 	 	 	 	 
	 	MOLEX INCORPORATED

 	 
	 	By  	 	 
	 	 	Name:  	David D. Johnson 	 
	 	 	Title:  	Executive Vice President, Chief Financial
Officer and Treasurer 	 
	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
individually and as Administrative Agent

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page to Credit Agreement 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	[LENDER]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page to Credit Agreement 

 

 

	 	 	 	 	 

Schedule 1.01

PRICING SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I	 	 	Level II	 	 	Level III	 	 	Level IV	 
	Applicable Rate	 	Status	 	 	Status	 	 	Status	 	 	Status	 
	Eurocurrency Spread
	 	 	1.50	%	 	 	1.75	%	 	 	2.00	%	 	 	2.25	%
	ABR Spread
	 	 	0.50	%	 	 	0.75	%	 	 	1.00	%	 	 	1.25	%
	Commitment Fee Rate
	 	 	0.25	%	 	 	0.30	%	 	 	0.35	%	 	 	0.40	%

     For the purposes of this Schedule, the following terms have the following meanings, subject to
the final paragraph of this Schedule:

     “Financials” means the annual or quarterly financial statements of the Company delivered
pursuant to Section 5.01 of this Agreement.

     “Level I Status” exists at any date if, as of the last day of the fiscal quarter of the
Company referred to in the most recent Financials, the Leverage Ratio is less than or equal to 1.00
to 1.00.

     “Level II Status” exists at any date if, as of the last day of the fiscal quarter of the
Company referred to in the most recent Financials, (i) the Company has not qualified for Level I
Status and (ii) the Leverage Ratio is less than or equal to 1.50 to 1.00.

     “Level III Status” exists at any date if, as of the last day of the fiscal quarter of the
Company referred to in the most recent Financials, (i) the Company has not qualified for Level I
Status or Level II Status and (ii) the Leverage Ratio is less than or equal to 2.00 to 1.00.

     “Level IV Status” exists at any date if the Company has not qualified for Level I Status,
Level II Status or Level III Status.

     “Status” means Level I Status, Level II Status, Level III Status or Level IV Status.

     The Applicable Rate shall be determined in accordance with the foregoing table based on the
Company’s Status as reflected in the then most recent Financials. Adjustments, if any, to the
Applicable Rate shall be effective five Business Days after the Administrative Agent has received
the applicable Financials. If the Company fails to deliver the Financials to the Administrative
Agent at the time required pursuant to the Credit Agreement, then the Applicable Rate shall be the
highest Applicable Rate set forth in the foregoing table until five Business Days after such
Financials are so delivered. Until adjusted after the Second Amendment Effective Date, Level I
Status shall be deemed to exist.exv4w5

Exhibit 4.5

HUNTINGTON INGALLS INDUSTRIES

FINANCIAL SECURITY AND SAVINGS PROGRAM

Effective as of March 31, 2011

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE 1 GENERAL
	 	 	1	 
	Section 1.01 Introduction
	 	 	1	 
	Section 1.02 Spin-Off
	 	 	1	 
	Section 1.03 Transfer of Assets and Liabilities; Service Credit
	 	 	1	 
	Section 1.04 Applicability
	 	 	1	 
	Section 1.05 Construction
	 	 	1	 
	Section 1.06 Special Effective Date
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2 DEFINITIONS
	 	 	3	 
	Section 2.01 Accounting Date
	 	 	3	 
	Section 2.02 Affiliated Company
	 	 	3	 
	Section 2.03 Aggregation Group
	 	 	3	 
	Section 2.04 Beneficiary
	 	 	3	 
	Section 2.05 Board
	 	 	4	 
	Section 2.06 Break in Service Period
	 	 	4	 
	Section 2.07 Code
	 	 	4	 
	Section 2.08 Committee
	 	 	4	 
	Section 2.09 Company
	 	 	4	 
	Section 2.10 Compensation
	 	 	5	 
	Section 2.11 Deposits
	 	 	5	 
	Section 2.12 Determination Date
	 	 	5	 
	Section 2.13 Disqualified Person
	 	 	6	 
	Section 2.14 Dividends
	 	 	6	 
	Section 2.15 Elect or Elected
	 	 	6	 
	Section 2.16 Election
	 	 	6	 
	Section 2.17 Eligible Employee
	 	 	6	 
	Section 2.18 Employee
	 	 	6	 
	Section 2.19 ERISA
	 	 	6	 
	Section 2.20 ESOP
	 	 	6	 
	Section 2.21 ESOP Account
	 	 	6	 
	Section 2.22 Forfeiture
	 	 	6	 
	Section 2.23 Highly Compensated Participant
	 	 	6	 
	Section 2.24 Huntington Ingalls Industries Fund
	 	 	7	 
	Section 2.25 Hour of Service.
	 	 	7	 
	Section 2.26 Investment Committee
	 	 	7	 
	Section 2.27 Investment Fund
	 	 	7	 
	Section 2.28 Key Employee
	 	 	7	 
	Section 2.29 Leased Employee
	 	 	7	 
	Section 2.30 Limitation Year
	 	 	8	 
	Section 2.31 Litton
	 	 	8	 
	Section 2.32 Mandatory Commencement Date
	 	 	8	 
	Section 2.33 Northrop Grumman Fund
	 	 	8	 
	Section 2.34 Participant
	 	 	8	 

i

 

	 	 	 	 	 

	Section 2.35 Participating Companies
	 	 	8	 
	Section 2.36 Period of Service
	 	 	8	 
	Section 2.37 Plan
	 	 	9	 
	Section 2.38 Plan Year
	 	 	9	 
	Section 2.39 Qualifying Securities
	 	 	10	 
	Section 2.40 Related Entity
	 	 	10	 
	Section 2.41 Retirement Plan
	 	 	10	 
	Section 2.42 Severance Benefit Policy
	 	 	10	 
	Section 2.43 Special Contribution
	 	 	10	 
	Section 2.44 Spin-Off
	 	 	10	 
	Section 2.45 Suspense Account
	 	 	10	 
	Section 2.46 Termination of Employment
	 	 	10	 
	Section 2.47 Top-Heavy Group
	 	 	11	 
	Section 2.48 Trust or Trust Fund
	 	 	11	 
	Section 2.49 Trust Agreement
	 	 	11	 
	Section 2.50 Trustee
	 	 	11	 
	Section 2.51 Year of Service
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 3 ELIGIBILITY TO PARTICIPATE
	 	 	12	 
	Section 3.01 Eligibility
	 	 	12	 
	Section 3.02 Enrollment
	 	 	12	 
	Section 3.03 Salary Reductions
	 	 	12	 
	Section 3.04 Participation Upon Reemployment
	 	 	12	 
	Section 3.05 Employees Assigned to Northrop Grumman Security Systems, LLC
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 4 PLAN CONTRIBUTIONS
	 	 	14	 
	Section 4.01 Employee Deposits
	 	 	14	 
	Section 4.02 Catch-Up Contributions
	 	 	14	 
	Section 4.03 Company Contribution on Matched Deposits
	 	 	14	 
	Section 4.04 Payment to Trust Fund
	 	 	14	 
	Section 4.05 Limits
	 	 	14	 
	Section 4.06 Rollovers from Other Plans
	 	 	15	 
	Section 4.07 Contributions for Certain Periods of Qualified Military Service
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 5 ACCRUED BENEFITS
	 	 	17	 
	Section 5.01 Individual Accounts
	 	 	17	 
	Section 5.02 Determination of Account Balances
	 	 	17	 
	Section 5.03 Allocation of Trust Income to Accounts
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 6 VESTING
	 	 	18	 
	Section 6.01 Deposits Always Vested
	 	 	18	 
	Section 6.02 Full Vesting at Age 65, Death, Disability, Plan Termination
	 	 	18	 
	Section 6.03 Vesting in Company Contributions
	 	 	18	 
	Section 6.04 Forfeitures
	 	 	18	 

ii

 

	 	 	 	 	 

	Section 6.05 Application of Forfeitures
	 	 	19	 
	Section 6.06 Reinstatement of Forfeitures
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 7 INVESTMENT FUNDS AND ELECTIONS REGARDING DEPOSIT RATES AND ELECTION OF FUNDS
	 	 	20	 
	Section 7.01 Investment Funds
	 	 	20	 
	Section 7.02 Northrop Grumman Fund
	 	 	20	 
	Section 7.03 Election of Investment Fund
	 	 	21	 
	Section 7.04 Elections
	 	 	21	 
	Section 7.05 The Huntington Ingalls Industries Fund
	 	 	23	 
	Section 7.06 Investment Trading Restrictions for Officers
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 8 ELIGIBILITY FOR AND PAYMENT OF BENEFITS
	 	 	24	 
	Section 8.01 Eligibility to Receive Benefits
	 	 	24	 
	Section 8.02 Application for Benefits
	 	 	24	 
	Section 8.03 Hardship Withdrawals
	 	 	24	 
	Section 8.04 Involuntary Distributions
	 	 	25	 
	Section 8.05 Form of Benefit
	 	 	25	 
	Section 8.06 Death Benefits
	 	 	27	 
	Section 8.07 Payments of Benefits
	 	 	28	 
	Section 8.08 Income Tax Withholding
	 	 	29	 
	Section 8.09 Direct Rollovers
	 	 	29	 
	Section 8.10 Elective Transfers to a Plan Under Code Section 401(k)
Sponsored by an Affiliated Company
	 	 	31	 
	Section 8.11 Age 701/2 Distributions
	 	 	31	 
	Section 8.12 Minimum Distribution Requirements
	 	 	31	 
	Section 8.13 Age 591/2 Withdrawals
	 	 	36	 
	Section 8.14 Annuity Form of Distribution
	 	 	36	 
	Section 8.15 Military Reservist Distributions
	 	 	36	 
	Section 8.16 Military Service Distributions
	 	 	36	 
	Section 8.17 Restriction on Withdrawals for Officers
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 9 LOAN PROVISIONS
	 	 	38	 
	Section 9.01 Loans to Participants
	 	 	38	 
	Section 9.02 Certain Transferred Loans
	 	 	39	 
	Section 9.03 Restriction on Loans for Officers
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 10 LIMITATIONS ON CONTRIBUTIONS AND BENEFITS
	 	 	41	 
	Section 10.01 Code Section 415(c) Limitation
	 	 	41	 
	Section 10.02 Compensation Limited to Comply With Code Section 401(a)(17)
	 	 	41	 
	Section 10.03 Code Section 402(g) Limitation
	 	 	41	 
	Section 10.04 401(k) and 401(m) Tests
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 11 ADMINISTRATION
	 	 	42	 
	Section 11.01 In General
	 	 	42	 
	Section 11.02 The Committee
	 	 	42	 

iii

 

	 	 	 	 	 

	Section 11.03 Resignation of Committee Members
	 	 	42	 
	Section 11.04 Conduct of Business
	 	 	42	 
	Section 11.05 Quorum
	 	 	42	 
	Section 11.06 Voting
	 	 	42	 
	Section 11.07 Records and Reports of the Committee

	 	 	42	 
	Section 11.08 Powers of the Committee
	 	 	42	 
	Section 11.09 Allocation or Delegation of Duties and Responsibilities
	 	 	43	 
	Section 11.10 Procedure for the Allocation or Delegation of Fiduciary Duties
	 	 	43	 
	Section 11.11 Expenses of the Plan
	 	 	44	 
	Section 11.12 Indemnification
	 	 	44	 
	Section 11.13 Extensions of Time Periods
	 	 	45	 
	Section 11.14 Corrections Involving Participant Direction
	 	 	45	 
	Section 11.15 Claims and Appeals; Time Limitations; Exhaustion of
Remedies
	 	 	45	 
	Section 11.16 Qualified Domestic Relations Orders
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 12 MANAGEMENT OF FUNDS
	 	 	46	 
	Section 12.01 The Trust
	 	 	46	 
	Section 12.02 The Trustee
	 	 	46	 
	Section 12.03 Trust Agreement
	 	 	46	 
	Section 12.04 The Investment Committee
	 	 	46	 
	Section 12.05 Alternate Members
	 	 	46	 
	Section 12.06 Actions by the Investment Committee
	 	 	47	 
	Section 12.07 Investment Responsibilities
	 	 	47	 
	Section 12.08 Liability and Indemnity
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 13 AMENDMENT AND TERMINATION
	 	 	49	 
	Section 13.01 Right to Amend the Plan
	 	 	49	 
	Section 13.02 Termination or Reduction
	 	 	49	 
	Section 13.03 Partial Terminations
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 14 MERGERS
	 	 	50	 
	Section 14.01 Merger of Plans
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 15 MISCELLANEOUS
	 	 	51	 
	Section 15.01 Headings
	 	 	51	 
	Section 15.02 Construction
	 	 	51	 
	Section 15.03 No Employment Rights
	 	 	51	 
	Section 15.04 Limitation to Trust Fund
	 	 	51	 
	Section 15.05 Severability
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 16 OTHER RULES ON DISTRIBUTIONS
	 	 	52	 
	Section 16.01 Lost Payee
	 	 	52	 
	Section 16.02 Disputes About Payee
	 	 	52	 
	Section 16.03 Administrative Delays
	 	 	52	 

iv

 

	 	 	 	 	 

	Section 16.04 Facility of Payment
	 	 	52	 
	Section 16.05 Incorrect Payment of Benefits
	 	 	52	 
	Section 16.06 Disposition of Employees
	 	 	53	 
	Section 16.07 Top Heavy Rules
	 	 	53	 
	Section 16.08 Claims and Issues
	 	 	53	 
	 
	APPENDIX A SECTION 415 LIMITS
	 	 	54	 
	Section A.01 In General
	 	 	54	 
	Section A.02 Reductions Among Defined Contribution Plans
	 	 	54	 
	Section A.03 Compensation
	 	 	54	 
	Section A.04 Annual Additions
	 	 	54	 
	Section A.05 Limitation Year
	 	 	55	 
	Section A.06 Special Aggregation Group
	 	 	55	 
	 
	APPENDIX B TOP HEAVY PROVISIONS
	 	 	56	 
	Section B.01 Generally
	 	 	56	 
	Section B.02 Eligibility for Required Contributions
	 	 	56	 
	Section B.03 Required Contribution
	 	 	56	 
	Section B.04 Top-Heavy Minimum
	 	 	56	 
	Section B.05 Participants Under Defined Benefit Plans
	 	 	57	 
	Section B.06 Leased Employees
	 	 	58	 
	Section B.07 Determination of Top Heaviness
	 	 	58	 
	Section B.08 Calculation of Top-Heavy Ratios
	 	 	58	 
	Section B.09 Cumulative Accounts and Cumulative Accrued Benefits
	 	 	58	 
	Section B.10 Other Definitions
	 	 	60	 
	Section B.11 Affiliated Companies
	 	 	60	 
	Section B.12 Aggregation Group
	 	 	61	 
	Section B.13 Compensation
	 	 	61	 
	Section B.14 Determination Date
	 	 	61	 
	Section B.15 Key Employee
	 	 	61	 
	Section B.16 Limitation Year
	 	 	62	 
	Section B.17 Nonintegrated
	 	 	62	 
	Section B.18 Special Member
	 	 	62	 
	Section B.19 Test Period
	 	 	62	 
	Section B.20 Year of Service
	 	 	62	 
	 
	APPENDIX C THE 401(K) AND 401(M) TESTS
	 	 	63	 
	Section C.01 In General
	 	 	63	 
	Section C.02 The 401(k) Test
	 	 	63	 
	Section C.03 K Percentage
	 	 	63	 
	Section C.04 401(k) Limit
	 	 	64	 
	Section C.05 Highly Compensated Individual K Percentage Limit
	 	 	65	 
	Section C.06 Excess Tax Deferred Contributions
	 	 	65	 
	Section C.07 Treatment of Excess Tax Deferred Compensation
	 	 	65	 
	Section C.08 The 401(m) Test
	 	 	66	 
	Section C.09 A&C Percentage
	 	 	66	 

v

 

	 	 	 	 	 

	Section C.10 Highly Compensated Group Limit
	 	 	68	 
	Section C.11 Highly Compensated Individual A&C Limit
	 	 	68	 
	Section C.12 Excess A&C Contributions
	 	 	68	 
	Section C.13 Treatment of Excess A&C Contributions
	 	 	69	 
	Section C.14 Reductions During the Year
	 	 	69	 
	Section C.15 Unmatched Company Contributions
	 	 	69	 
	Section C.16 Employee Stock Ownership Plan
	 	 	70	 
	Section C.17 Compensation
	 	 	70	 
	 
	APPENDIX D HIGHLY-COMPENSATED PARTICIPANTS
	 	 	71	 
	Section D.01 In General
	 	 	71	 
	Section D.02 Highly-Compensated Participant
	 	 	71	 
	Section D.03 5%-Owner Test
	 	 	71	 
	Section D.04 Preceding Plan Year Compensation Test
	 	 	71	 
	Section D.05 5%-Owner
	 	 	71	 
	Section D.06 Nonresident Aliens
	 	 	71	 
	Section D.07 Compensation
	 	 	71	 
	 
	APPENDIX E VETERANS’ REEMPLOYMENT RIGHTS
	 	 	73	 
	Section E.01 In General
	 	 	73	 
	Section E.02 Service Credit
	 	 	73	 
	Section E.03 Compensation Credit
	 	 	73	 
	Section E.04 Qualified Veteran
	 	 	73	 
	Section E.05 Qualified Military Service
	 	 	73	 
	 
	APPENDIX F SERVICE COUNTING AFTER ACQUISITION BY NORTHROP GRUMMAN CORPORATION
	 	 	74	 
	Section F.01 General
	 	 	74	 
	Section F.02 Acquisition of Litton Industries, Inc
	 	 	74	 
	Section F.03 Controlled Group Parent After Affiliation
	 	 	75	 
	Section F.04 Coverage
	 	 	75	 
	Section F.05 Service with Northrop Grumman Group
	 	 	75	 
	Section F.06 Compensation
	 	 	75	 
	Section F.07 Nonduplication
	 	 	75	 
	 
	 	 	 	 
	 
	APPENDIX G EMPLOYEE STOCK OWNERSHIP PLAN
	 	 	76	 
	 
	 	 	 	 
	ARTICLE G1 GENERAL PROVISIONS
	 	 	76	 
	Section G1.01 Single Plan
	 	 	76	 
	Section G1.02 Application of Plan Provisions
	 	 	76	 
	Section G1.03 Form of Contributions
	 	 	76	 
	Section G1.04 Discrimination Testing
	 	 	76	 
	Section G1.05 Vesting
	 	 	76	 
	Section G1.06 Forfeitures
	 	 	76	 
	Section G1.07 Section 415 Limitations
	 	 	76	 

vi

 

	 	 	 	 	 

	 
	 	 	 	 
	ARTICLE G2 LOAN REQUIREMENTS
	 	 	77	 
	Section G2.01 In General
	 	 	77	 
	Section G2.02 Use of Loan Proceeds
	 	 	77	 
	Section G2.03 Price of Securities
	 	 	77	 
	Section G2.04 Suspense Account
	 	 	77	 
	Section G2.05 Restrictions on Securities
	 	 	77	 
	Section G2.06 Liability and Collateral
	 	 	77	 
	Section G2.07 Release of Collateral
	 	 	78	 
	Section G2.08 Payments
	 	 	78	 
	Section G2.09 Separate Accounting
	 	 	78	 
	Section G2.10 Default
	 	 	78	 
	Section G2.11 Interest Rate
	 	 	78	 
	Section G2.12 Loan Term
	 	 	78	 
	 
	 	 	 	 
	ARTICLE G3 LOAN REPAYMENTS
	 	 	79	 
	Section G3.01 Ordering Rule
	 	 	79	 
	Section G3.02 Special Contributions
	 	 	79	 
	Section G3.03 Use of Qualifying Securities
	 	 	79	 
	 
	 	 	 	 
	ARTICLE G4 SUSPENSE ACCOUNT
	 	 	80	 
	Section G4.01 Application
	 	 	80	 
	Section G4.02 Suspense Account
	 	 	80	 
	Section G4.03 Income
	 	 	80	 
	Section G4.04 Rights to Suspense Account Amounts
	 	 	80	 
	Section G4.05 General Rule for Release From Suspense
	 	 	80	 
	Section G4.06 Special Election
	 	 	80	 
	 
	 	 	 	 
	ARTICLE G5 COMPANY CONTRIBUTIONS
	 	 	82	 
	Section G5.01 Special Company Contributions
	 	 	82	 
	Section G5.02 Allocation of Special Contributions
	 	 	82	 
	Section G5.03 Section 415 Limitations
	 	 	82	 
	 
	 	 	 	 
	ARTICLE G6 DIVIDENDS
	 	 	83	 
	Section G6.01 In General
	 	 	83	 
	Section G6.02 Allocation of Dividends
	 	 	83	 
	Section G6.03 Loan Repayments
	 	 	83	 
	Section G6.04 Excess Dividends.
	 	 	83	 
	Section G6.05 Conditioned on Deductibility
	 	 	83	 
	Section G6.06 Direct Distribution of Dividends
	 	 	83	 
	Section G6.07 Meaning of “Participant”
	 	 	84	 
	 
	 	 	 	 
	ARTICLE G7 ALLOCATIONS OF SUSPENSE ACCOUNT AMOUNTS
	 	 	85	 
	Section G7.01 In General
	 	 	85	 
	Section G7.02 Release From Suspense Account
	 	 	85	 
	Section G7.03 Allocation of Amounts Attributable to Special Contributions
	 	 	86	 

vii

 

	 	 	 	 	 

	Section G7.04 Release of Collateral
	 	 	86	 
	Section G7.05 Section 415 Limits
	 	 	86	 
	 
	 	 	 	 
	ARTICLE G8 VOTING RIGHTS AND TENDER OFFERS
	 	 	87	 
	Section G8.01 In General
	 	 	87	 
	Section G8.02 Voting of Qualifying Securities
	 	 	87	 
	Section G8.03 Tender Offers, etc
	 	 	88	 
	 
	 	 	 	 
	ARTICLE G9 INVESTMENTS
	 	 	92	 
	Section G9.01 Huntington Ingalls Industries Fund
	 	 	92	 
	Section G9.02 Primary Investment
	 	 	92	 
	 
	 	 	 	 
	ARTICLE G10 DIVERSIFICATION
	 	 	93	 
	Section G10.01 In General
	 	 	93	 
	Section G10.02 Eligibility
	 	 	93	 
	Section G10.03 Diversification Election
	 	 	93	 
	Section G10.04 Timing of Election
	 	 	93	 
	 
	 	 	 	 
	ARTICLE G11 DISTRIBUTIONS
	 	 	94	 
	Section G11.01 Application
	 	 	94	 
	Section G11.02 Timing of Distributions
	 	 	94	 
	Section G11.03 Exception for Financed Securities
	 	 	94	 
	Section G11.04 Form of Distributions
	 	 	94	 
	Section G11.05 Condition of Distributions
	 	 	94	 
	 
	 	 	 	 
	ARTICLE G12 TERMINATION
	 	 	95	 
	Section G12.01 Termination
	 	 	95	 
	 
	APPENDIX H HUNTINGTON INGALLS INDUSTRIES TRANSFER PROVISIONS
	 	 	96	 
	 
	 	 	 	 
	ARTICLE H1 APPLICATION AND DEFINITIONS
	 	 	96	 
	Section H1.01 Application
	 	 	96	 
	Section H1.02 Definitions
	 	 	96	 
	 
	 	 	 	 
	ARTICLE H2 TRANSFERS AND REHIRES
	 	 	97	 
	Section H2.01 Service Credit
	 	 	97	 
	Section H2.02 Former Employees
	 	 	97	 
	Section H2.03 Continuation of Elections
	 	 	97	 
	Section H2.04 Transfers to Northrop Grumman Group
	 	 	97	 
	 
	 	 	 	 
	ARTICLE H3 PLAN LIMITS AND NON-DISCRIMINATION TESTING
	 	 	98	 
	Section H3.01 Code Section 401(a)(17) Limits
	 	 	98	 
	Section H3.02 Code Section 415 Limits
	 	 	98	 
	Section H3.03 Code Section 402(g) Limits
	 	 	98	 
	Section H3.04 Non-Discrimination Testing
	 	 	98	 

viii

 

	 	 	 	 	 

	 
	 	 	 	 
	EXHIBIT A PARTICIPATING COMPANIES
	 	 	99	 
	 
	 	 	 	 
	EXHIBIT B ELIGIBLE PAY
	 	 	100	 

ix

 

ARTICLE 1

General

     Section 1.01 Introduction. Effective as of March 31, 2011, Huntington
Ingalls Industries, Inc. (the “Company”) established the Huntington Ingalls Industries Financial
Security and Savings Program (the “Plan”). This Plan is intended to provide a means for Employees
to defer and invest part of their pay until retirement and to encourage such deferral by matching
part of the amounts deferred with contributions from the Company in order to promote the welfare
and financial security of Employees by the accumulation of additional funds for their retirement
years. The Plan and Trust are intended to qualify for tax exemption under Code Sections 401(a),
401(k) and 501(a), and are to be interpreted and administered accordingly. Plan language concerning
the requirements for tax-qualified plans under the Code or ERISA — or the regulations or rulings
under the Code or ERISA — is to be interpreted only to implement the statute, regulation or ruling,
unless Plan language explicitly and clearly provides additional rights or benefits. The Plan is
established and maintained by Huntington Ingalls Industries, Inc. under EIN 90-0607005.

     Section 1.02 Spin-Off. In connection with Northrop Grumman Corporation’s
(“Northrop Grumman”) spin-off of its shipbuilding business, Northrop Grumman underwent an internal
reorganization and incorporated the Company on August 4, 2010 as an indirect subsidiary of Northrop
Grumman. The Company was spun-off effective March 31, 2011 (the “Spin-Off”) pursuant to a
Separation and Distribution Agreement, dated March 31, 2011. Effective as of the Spin-Off, the
Company is an independent, publicly traded corporation which owns and operates the shipbuilding
business previously owned and operated by Northrop Grumman (through its direct and indirect
subsidiaries). Prior to the Spin-Off, Northrop Grumman’s EIN was 95-4840775. After the Spin-Off,
Northrop Grumman’s EIN will be 80-0640649.

     Section 1.03 Transfer of Assets and Liabilities; Service Credit. Coincident
with the Spin-Off and as described in that certain Employee Matters Agreement dated March 31, 2011,
the Company and its affiliates established a number of qualified defined contribution pension plans
that are substantially similar to those plans maintained by Northrop Grumman. Certain employees,
former employees and retirees identified as of the Spin-Off (“HII Participants”) had their account
balances under the Northrop Grumman Financial Security and Savings Program transferred to this
Plan. The assets and liabilities attributable to these HII Participants are transferred to this
Plan in accordance with Code Section 414(l) and ERISA Section 208.

     Section 1.04 Applicability. The Plan becomes applicable to Employees on the
respective dates specified in Exhibit A hereto or in such other document(s) whereby the Plan is
adopted on behalf of the Employees. Any amendment to the Plan that becomes effective thereafter
shall apply only to Participants whose Termination of Employment occurs on or after the effective
date of such amendment, except to the extent that the amendment otherwise provides.

     Section 1.05 Construction. As used in the Plan, words of masculine gender
shall be construed to include the feminine or neuter gender, as the identity of the person or
persons may require, and words of singular or plural number shall be construed to include the
plural

1

 

 or singular number, respectively, unless the context in which they are used clearly requires
the contrary construction.

     Section 1.06 Special Effective Date. For Plan participants who became
eligible to commence benefits under the Litton Corporate Severance Policy before July 1, 2002, and
whose benefits under that policy continued after December 31, 2002, the provisions of Exhibit B in
effect on December 31, 2002 under the Northrop Grumman Financial Security and Savings Program
shall continue to apply to post-December 31, 2002 remuneration paid by the Company.

 2

 

ARTICLE 2

Definitions

     As used in the Plan, each of the following terms shall have the meaning respectively indicated
below:

     Section 2.01 Accounting Date. The term Accounting Date refers to end of
each business day as defined by and in accordance with the rules of the Committee, which rules may
be changed at any time without advance notice to Participants.

     Section 2.02 Affiliated Company. The term Affiliated Company shall refer to
each entity that satisfies the conditions of any of subsections (a) through (d), but only during
such periods that such entity satisfies the conditions of any of subsections (a) through (d):

          (a) Any corporation that is included in a controlled group of corporations, within the
meaning of Code Section 414(b), that includes the Company;

          (b) Any trade or business that is under common control with the Company within the
meaning of Code Section 414(c);

          (c) Any member of an affiliated service group, within the meaning of Code Section
414(m), that includes the Company; and

          (d) Any entity required to be included under Code Section 414(o).

     Section 2.03 Aggregation Group. The term Aggregation Group shall refer to a
group of plans including any plan that is qualified under Code Section 401(a), that is maintained
by a Participating Company or a Related Entity and that is:

          (a) a plan in which a Key Employee participates;

          (b) a plan that covers no Key Employees but that enables any plan in which a Key
Employee participates to meet the requirements of Code Sections 401(a)(4) or 410; or

          (c) a plan that is not described in (a) or (b) above, but that satisfies the
requirements of Code Sections 401(a)(4) and 410 when considered together with the plans
described in (a) or (b) above.

     Section 2.04 Beneficiary. The term Beneficiary shall refer to the spouse of
a Participant or, if either there is no spouse at the time of the Participant’s death or the spouse
consents, such other person whom a deceased Participant had designated, on a form or in a format
prescribed by the Committee, to receive his or her account balance from the Plan in the event of
his or her death. If no such designation was made or if the person so designated did not survive
the Participant, then the Beneficiary shall be the estate of the Participant. The spousal consent
described in the preceding sentence shall be invalid unless the consent is signed by the spouse who
survives the Participant, and such signature is witnessed by a member of the Committee, the
Committee’s appointed representative, or a notary public.

3

 

     A Participant’s Beneficiary may not be changed following the Participant’s death, except by
(a) a written instrument intended to be a “qualified disclaimer” within the meaning of Code
Section 2518, or any successor provision, that is received by the Committee not later than nine
months after the Participant’s death and is accepted by the Committee prior to payment of benefits,
or (b) a qualified domestic relations order under Code Section 414(p) that is received and accepted
by the Committee prior to payment of benefits. The Committee may provide rules and procedures for
these authorizations, which rules and procedures may be changed at any time without advance notice
to Participants.

     Section 2.05 Board. The term Board shall mean the Board of Directors of the
Company.

     Section 2.06 Break in Service Period. Break-in-Service Period shall mean a
period of severance of at least 12 consecutive months commencing on the day after the Employee’s
Termination from Employment or the day which marks the first anniversary of an absence due to
disability, vacation, leave, layoff or similar reason, and ending on the date the Employee again
performs an Hour of Service for the Company. For purposes of determining whether or not an
Employee has incurred a Break in Service Period, an Employee’s period of severance shall be deemed
to commence on the second anniversary of the Employee’s absence on account of:

          (a) Absence by an individual by reason of the individual’s pregnancy;

          (b) Absence by an individual by reason of the birth of a child of the individual;

          (c) Absence by an individual by reason of the placement of a child with the individual
in connection with the adoption of such child by the individual; or

          (d) Absence by an individual for purposes of caring for such a child for a period
immediately following such birth or placement.

Solely for the purposes of determining whether an Employee has incurred a Break in Service
Period, the Employee will be credited with Years of Service during a period of leave for the
birth, adoption or placement of a child, to care for a spouse or an immediate family member
with a serious illness or for the Employee’s own illness to the extent required by the
Family and Medical Leave Act of 1993 and applicable regulations thereunder.

     Section 2.07 Code. The term Code shall refer to the Internal Revenue Code
of 1986, as amended.

     Section 2.08 Committee. The administrator of the Plan as described in
Article 12.

     Section 2.09 Company. The term Company means Huntington Ingalls Industries,
Inc., a Delaware corporation, and any successor.

4

 

     Section 2.10 Compensation.

	          (a)	 	Exhibit B describes items that are specifically included in and excluded from
Compensation.

          (b)For the Plan Year in which an Eligible Employee has a Termination of Employment,
Compensation includes only amounts paid before the end of the first full calendar month
following the calendar month in which the Employee’s employment
terminates.

     Section 2.11 Deposits. Deposits shall be defined as follows:

          (a) Generally, “Deposits” refers to the amount of Compensation that an Employee has
Elected in accordance with Article 4 to defer and to contribute to the Plan in lieu of
receiving cash. Except as otherwise provided, this amount will not be designated as, or
deemed to be, an Employee contribution.

          (b) “Retirement Fund Deposits” refers to all Deposits that do not exceed 4% of
Compensation, determined separately for each Participant and for each payment of
Compensation.

          (c) “Savings Account Deposits” refers to all Deposits that exceed 4% of Compensation.
Any excess is determined separately for each payment of Compensation, but may be reallocated
annually to a Participant’s Retirement Fund Deposits, if necessary, so that for any
particular Plan Year a Participant’s total Retirement Fund Deposits are equal to the lesser
of 4% of Compensation or the maximum amount permitted to be deposited by such Participant to
a Code Section 401(k) plan for such Plan Year, if less.

          (d) “Matched Deposits” refers to Deposits for various groups as described in (1) and
(2) below. Matched Deposits will be determined separately for each payment of Compensation,
but will be adjusted annually to reflect any reallocation of a Participant’s Deposits under
(c) above to ensure that a Participant’s total Retirement Fund Deposits for the Plan Year
equal the lesser of 4% of Compensation for the Plan Year or the maximum amount permitted to
be deposited by such Participant to a Code Section 401(k) plan for the Plan Year.

          (1) In General. Except as provided in (2) below, Matched Deposits
means all Deposits up to 6% of Compensation that are not covered by Section 4.06.

          (2) Represented Employees of Ingalls Shipbuilding, Inc. For represented
Employees of Ingalls Shipbuilding, Inc., Matched Deposits means all Deposits that
exceed 4% of Compensation, do not exceed 8% of Compensation, and are not covered by
Section 4.06.

Section 2.12 Determination Date. This term is defined in Section B.14.

5

 

     Section 2.13 Disqualified Person. A person who is a “disqualified person”
within the meaning of Code Section 4975(e)(2).

     Section 2.14 Dividends. Dividends on Qualifying Securities whether held in
the Suspense Account or allocated to Participants’ ESOP Accounts.

     Section 2.15 Elect or Elected. The term Elect or Elected shall refer to the
act of making an Election.

     Section 2.16 Election. The term Election shall refer to a designation
permitted by the Plan and made in accordance with Article 7.

     Section 2.17 Eligible EmployeeThe term Eligible Employee shall refer to each
Employee of a Participating Company, excluding (a) each Employee who is included in a unit of
employees covered by a negotiated collective bargaining agreement that does not provide for
participation in this Plan, (b) each Employee who is an Ingalls non-represented employee under
Entity Code 146. All determinations of who is an Eligible Employee are within the sole discretion
of the Participating Company.

     Section 2.18 Employee. The term Employee means any person who is reported
on the payroll records of a Participating Company or Affiliated Company as a common law employee.
This term does not include any other common law employee or any Leased Employee. In particular, it
is expressly intended that individuals not treated as common law employees on payroll records are
to be excluded from Plan participation even if a court or administrative agency determines that
such individuals are common law employees and not independent contractors. Any person who is
eligible for benefits under the Severance Benefit Policy will continue to be an Employee until
salary continuation payments cease under the terms of that plan.

     Section 2.19 ERISA. ERISA shall refer to the Employee Retirement Income
Security Act of 1974, as amended.

     Section 2.20 ESOP. The Huntington Ingalls Industries, Inc. Employee Stock
Ownership Plan, a part of the Huntington Ingalls Industries Financial Security and Savings Program.

     Section 2.21 ESOP Account. A subaccount of a Participant’s account under
the Plan to account for allocations, earnings and distributions with respect to the Participant
under the ESOP.

     Section 2.22 Forfeiture. The term Forfeiture shall refer to the nonvested
portion of a Participant’s account which is forfeited under Section 6.04 after the Participant’s
Termination of Employment.

     Section 2.23 Highly Compensated Participant. See Appendix D.

6

 

Section 2.24 Huntington Ingalls Industries Fund. This is described under the ESOP.

Section 2.25 Hour of Service.

The term Hour of Service shall refer to the following:

     (a) Each Hour of Service for which the Employee is directly or indirectly paid or
entitled to payment by a Participating Company or Related Entity for the performance of
duties.

     (b) For purposes of determining whether or not an Employee has incurred a one-year
Break in Service Period, notwithstanding anything herein to the contrary, the period of
severance shall be deemed to commence on the second anniversary of the first day of absence
in the case of an Employee who is absent beyond the first anniversary of the first day of:

          (1) Absence by reason of the individual’s pregnancy;

          (2) Absence by reason of the birth of a child of the individual;

          (3) Absence by reason of the placement of a child with the individual in
connection with the adoption of such child by the individual; or

          (4) Absence for purposes of caring for such child for a period immediately
following such birth or placement. The period between the first and second
anniversaries of the first day of absence is neither a Period of Service nor a Break
in Service Period.

     (c) Notwithstanding anything herein to the contrary, an Employee will receive credit
for service performed for a Participating Company or Related Entity while he or she was a
Leased Employee (except as provided in Code Section 414(n)(5)).

     Section 2.26 Investment Committee. The Investment Committee shall refer to
the committee appointed by the Board and described in Section 11.02 of the Plan.

     Section 2.27 Investment Fund. The Investment Fund shall refer to an
investment vehicle in which an Employee may Elect to invest that part of his or her account balance
which is subject to his or her control as described in Article 7.

     Section 2.28 Key Employee. See Appendix B.

     Section 2.29 Leased Employeeshall mean any person (excluding a person who is
a common law employee of an Affiliated Company or Participating Company) who, under an agreement
between a Participating Company (or an Affiliated Company) and any other person (“leasing
organization”) has performed services for the Participating Company (or an Affiliated Company) and
related persons determined in accordance with Code Section 414(n)(6) on a “substantially full-time
basis” for a period of at least one year and such services are performed under the primary
direction or control of a Participating Company (or an Affiliated Company).

7

 

     A person is considered to have performed services on a “substantially full-time basis” for a
period of at least one year if: (a) during any consecutive 12-month period such person has
performed at least 1,500 Hours of Service for the Employer or (b) during any consecutive 12-month
period such person performed services for the Employer for a number of Hours of Service at least
equal to 75% of the average number of hours that are customarily performed by an employee of the
Employer in the particular position.

     Such a person will not be a Leased Employee if the person (a) is covered by a money purchase
pension plan providing (i) a nonintegrated employer contribution rate of at least 10% of such
person’s W-2 wages, (ii) immediate participation, and (iii) full and immediate vesting, and (b)
provided, the Leased Employee, determined without regard to whether such person is a participant in
the above described money purchase plan, do not constitute more than 20 percent of the recipient’s
nonhighly compensated workforce.

     In the event that any Leased Employee subsequently becomes an Eligible Employee, then unless
the Plan is otherwise excluded by applicable Treasury Regulations from the requirements of Code
Section 414(n), the total period that such former Leased Employee provided services to the
Participating Company shall be treated under the Plan, for participation eligibility and vesting
purposes as though he or she had been an Employee of the Participating Company or Affiliated
Company.

     Section 2.30 Limitation Year. The term Limitation Year shall refer to the
Plan Year.

     Section 2.31 Litton. The term Litton shall refer to Litton Industries,
Inc., a Delaware corporation.

     Section 2.32 Mandatory Commencement Date. The April 1 of the calendar year
following the year in which a Participant attains age 70-1/2.

     Section 2.33 Northrop Grumman Fund. The investment fund the sole purpose of
which is to invest in Northrop Grumman Corporation common stock, other than cash or short-term
investments necessary to fund participant transactions or to pay Plan expenses. The Northrop
Grumman Fund will be maintained under the Plan subject to the terms of Section 7.02 of the Plan.

     Section 2.34 Participant. The term Participant shall refer to any Employee
who is participating in the Plan in accordance with Section 3.01 of the Plan or an individual whose
vested account balance has not been distributed to him or her or to his or her Beneficiary.

     Section 2.35 Participating Companies. The term Participating Companies
shall refer to those entities listed in Exhibit A. Changes to the name or status of a
Participating Company will be reflected automatically in the Plan.

     Section
2.36 Period of Service.

          (a) In General. The term Period of Service refers to the period of time
beginning on the day the Employee first performs an Hour of Service with the Company and
ending on the earlier of (1) Termination of Employment or (2) the day which marks

8

 

the
first anniversary of an absence due to disability, vacation, leave, layoff or similar reason
(except, in the case of absence due to maternity or paternity leave as described in
Section 2.25 (b) of the Plan, the second anniversary of the date the individual is first
absent). All individual Periods of Service under the Plan shall be aggregated in
determining an Employee’s total Period of Service, unless such Periods of Service may be
disregarded under Section 3.04 of the Plan.

     (b) Periods of Severance Treated as Periods of Service. In determining a
Participant’s Period of Service, the following periods of severance shall be taken into
account:

          (1) If an Employee severs from service by reason of a quit, discharge or
retirement and then performs an Hour of Service within the meaning of
Section 2.25(a) of the Plan within 12 months of the severance from service date, the
period of severance shall be taken into account;

          (2) If an Employee severs from service by reason of a quit, discharge or
retirement during an absence from service of 12 months or less for any reason other
than a quit, discharge, retirement or death, and then performs an Hour of Service
within the meaning of Section 2.25(a) of the Plan within 12 months of the date on
which the Employee was first absent from service, the period of severance shall be
taken into account.

     (c) Service with Other Companies Treated as Periods of Service. The provisions
of this subsection (c) are for historical reference only:

          (1) For Employees described in (2), pre-acquisition service performed after
September 30, 1984 as an employee of either FiberCom, Inc. or Ferretec, Inc. will be
treated as Periods of Service to the extent that the service was not forfeited
because of cashout or application of the break in service rules under Code Section
411(a)(6) and ERISA Section 203(b).

          (2) Paragraph (1) above applies, as of August 1, 1994, to Employees of FiberCom
– PolyScientific Division (all Employees affiliated with the Roanoke, Virginia
facility) and Employees of Northrop Grumman Guidance and Electronics Company, Inc.
(Ferretec Operations of Solid State Division).

     (d) Layoff with Recall Rights. In determining a Participant’s Period of
Service, any layoff period with recall rights of up to three years shall be taken into
account, but only up to the processing date of a distribution.

     Section 2.37 Plan. The term Plan refers to the Huntington Ingalls
Industries Financial Security and Savings Program and Trust Agreement.

     Section 2.38 Plan Year. The term Plan Year shall be the 12-month period
commencing on January 1, except the initial Plan Year shall be the period beginning on March 31,
2011 and ending on December 31, 2011; provided that, in the event the Plan is terminated or
contributions

9

 

to the Plan are discontinued, the period between January 1 and the date that such
termination or discontinuance occurs shall be the Plan Year.

     Section 2.39 Qualifying Securities. “Qualifying Securities” means common
stock issued by the Company (or a corporation which is a member of the same controlled group) that
is readily tradable on an established securities market. The term “controlled group of
corporations” has the meaning given such term by Code Section 409(l)(4).

     Section 2.40 Related Entity. The term Related Entity shall refer to each
company 80% or more of whose voting stock is owned directly or indirectly by the Company, its
successors or assigns, and which company is not a Participating Company.

     Section 2.41 Retirement Plan. The term Retirement Plan shall refer to the
Litton Industries, Inc. Retirement Plan “A,” the Litton Industries Retirement Plan “B,” the Ingalls
Shipbuilding, Inc. Salaried Employees’ Retirement Plan or the HII Ingalls Shipbuilding, Inc. Hourly
Employees’ Retirement Plan.

     Section 2.42 Severance Benefit Policy. The term Severance Benefit Policy
refers to the December 21, 2000 Litton Severance Benefit Policy.

     Section 2.43 Special Contribution. A discretionary contribution made by the
Affiliated Companies in addition to any Company contributions on Matched Deposits.

     Section 2.44 Spin-Off. This term is defined in Section 1.02.

     Section 2.45 Suspense Account. An account in the Trust Fund maintained by
the Trustee under the ESOP to hold unallocated Qualifying Securities acquired with the proceeds of
a loan, Dividends on such unallocated Qualifying Securities, earnings on such Dividends and any
proceeds from the disposition of such unallocated Qualifying Securities.

     Section 2.46 Termination of Employment.

     The term Termination of Employment shall refer to:

     (a) General. When an Employee ceases to be an Employee of a Participating
Company or Affiliated Company because he or she is discharged, quits or dies. For
Participants covered by the Severance Benefit Policy, Termination of Employment occurs as of
the cessation of salary continuation payments under that plan.

     (b)Effect of Transferring Liabilities. If the obligation hereunder to pay the
accrued benefits of some Participants is transferred to and assumed by a successor defined
contribution plan and if the transfer meets the requirements of Section 12.01, such
Participants will have no rights under this Plan after the transfer is completed. If a
Participant is no longer employed by a Participating Company or Affiliated Company as a
result of a sale, outsourcing of the Participant’s job function, or similar transaction with
an unrelated employer, that constitutes a severance from employment, he or she will be
considered to have a termination of employment only to the extent, consistent with IRS
interpretations as determined in the sole discretion of the Committee, that the Plan would

10

 

     remain qualified under Code Sections 401(a) and 401(k) if it treated the Participant as
having a termination of employment.

     Section 2.47 Top-Heavy Group. See Appendix B.

     Section 2.48 Trust or Trust Fund. The terms Trust and Trust Fund refer to
the fund or funds established with the Trustee by the Company on behalf of the Plan to hold the
assets of the Plan.

     Section 2.49 Trust Agreement. The term Trust Agreement shall refer to the
written agreement or agreements between the Trustee and the Company that describes the power and
duties of the Trustee with respect to the Plan. The powers and duties of the Trustee under such
agreements may be different with respect to different portions of the Plan.

     Section 2.50 Trustee. The term Trustee refers to the entity holding assets
of the Plan in trust pursuant to the Trust Agreement.

     Section 2.51 Year of Service. The term Year of Service shall refer to each
12-month Period of Service.

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ARTICLE 3

Eligibility To Participate

     Section 3.01 Eligibility. Each Employee who is at least 18 years of age,
who is not eligible to participate in any other defined contribution plan sponsored by an
Affiliated Company, who is not a Leased Employee and who is not covered under a collective
bargaining agreement (unless the collective bargaining agreement specifically provides for
participation in the Plan) will be eligible to participate in the Plan. Individuals who are not
Eligible Employees but had their accounts under the Northrop Grumman Financial Security and Savings
Program transferred to this Plan in connection with the Spin-Off will become inactive Participants
in the Plan.

     Section 3.02 Enrollment. To participate, an Eligible Employee must enroll
in the Plan in accordance with the methods prescribed by the Committee or its delegate.

     Section 3.03 Salary Reductions. Salary reductions for the purpose of making
Deposits may commence as of the first pay period following the date upon which the Employee becomes
eligible to participate in the Plan and Elects to make Deposits.

     Section 3.04 Participation Upon Reemployment. If a former Employee who has
earned a vested right to a portion of his or her account attributable to Company contributions in
accordance with Article 6 is reemployed by the Company, such Employee shall again be eligible to
participate in the Plan on the date of reemployment. If a former Employee who has not earned a
vested right to any portion of his or her account attributable to Company contributions in
accordance with Article 6 is reemployed by the Company, then such Employee shall be treated as a
new Employee for purposes of the eligibility requirements of the Plan unless the Break in Service
Period incurred by such Employee prior to his or her rehire is less than the greater of (i) five
years or (ii) the number of Years of Service earned prior to such Break in Service Period.

     Section 3.05 Employees Assigned to Northrop Grumman Security Systems, LLC.

          (a) Employees who were Eligible Employees as of April 14, 2002 and were assigned to
Northrop Grumman Security Systems, LLC (“NGSS”) on April 15, 2002 will continue to be
Eligible Employees for the duration of their service with NGSS. Those Employees will
continue to be eligible to participate under the terms of the Plan that covered them
immediately before their assignment to NGSS.

          (b) Any other Eligible Employees who are assigned to NGSS after April 15, 2002 will
continue to be Eligible Employees for the duration of their service with NGSS. Those
Employees will continue to be eligible to participate under the terms of the Plan that
covered them immediately before their assignment to NGSS.

          (c) This Section is not intended to confer Eligible Employee status upon anyone who was
not an Eligible Employee immediately before assignment to NGSS.

               (1) Specifically, this Section is not intended to extend eligibility to
participate in this Plan to any other individuals assigned to NGSS. Employees who
are eligible to participate in other plans maintained by a Participating

12

 

Company or
Related Entity will continue to be eligible to participate in the plans for which
they were eligible immediately before their assignment to NGSS.

          (2) This Section is intended only to allow individuals who are assigned to NGSS
to continue to be eligible to participate in the Plan under the same terms that
applied to them immediately before their NGSS assignment.

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ARTICLE 4

Plan Contributions

     Section 4.01 Employee Deposits. Each Eligible Employee who is a Highly
Compensated Participant may Elect to make Deposits out of any payment of his or her Compensation at
a rate of 1% to 25% of such Compensation in increments of 1%, subject to the limitations of Article
10. Each Eligible Employee who is a not a Highly Compensated Participant may Elect to make
Deposits out of any payment of his or her Compensation at a rate of 1% to 75% of such Compensation
in increments of 1%, subject to the limitations of Article 10. The Deposits so Elected shall be
withheld from each payment of Compensation to which such Election applies. Such Elections shall be
made in accordance with 7.

     Section 4.02 Catch-Up Contributions. In accordance with, and subject to the
limitations of Code Section 414(v) and the regulations issued under that Section:

          (a) All Employees who are eligible to make elective deferrals under the Plan and who
are projected to attain age 50 before the end of the calendar year (“Catch-Up Eligible
Participants”) may make an annual election to defer an amount in excess of the maximum
contribution level provided in Section 4.01 up to the limits under Code Section 414(v)
(“Catch-Up Contributions”).

          (b) If a Catch-Up Eligible Participant’s elective deferrals exceed the otherwise
applicable limits on elective deferrals or annual additions of Code Sections 401(a)(30) or
415(c), or Section 4.01 of the Plan, those deferrals shall be treated as Catch-Up
Contributions.

Such Catch-Up Contributions shall be taken into account for purposes of determining Matched
Deposits under the Plan, but shall not be taken into account for purposes of the Plan provisions
implementing the required limitations of Code Sections 402(g) and 415(c). The Plan will not be
treated as failing to satisfy Code Sections 401(a)(4), 401(k)(3), 410(b), or 416, as applicable,
because a Participant makes Catch-Up Contributions.

     Section 4.03 Company Contribution on Matched Deposits. The Company will
allocate to each Participant’s account as of each Accounting Date an amount equal to 50% of his or
her Matched Deposits withheld since the previous Accounting Date.

     Section 4.04 Payment to Trust Fund. The Company shall remit to the Trustee
the Deposits on a monthly basis and any Company contributions allocable thereto as soon as
reasonably possible following the period during which such Deposits were withheld from the
Employees’ pay, but not later than the 15th business day of the month following the month in which
such Deposits were withheld from the Employees’ pay. The amounts so remitted shall become part of
the Trust Fund when received by the Trustee and, except for Retirement Fund Deposits, shall then be
allocated to the Investment Fund that the Employee has Elected pursuant to Article 7.

     Section 4.05 Limits. The Plan contributions described in this Article are
subject to all of the limits of Article 10.

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     Section 4.06 Rollovers from Other Plans.

          (a) Subject to (b), (c), (d) and (e), an Eligible Employee may contribute to the Plan
an “eligible rollover distribution” from an “eligible retirement plan.”

               (1) “Eligible rollover distribution” means any distribution described in Code
Section 402(c)(4) (including any distribution attributable to an Eligible Employee’s
spouse as described in Code Section 402(c)(9)), 403(b)(8), or 408(d)(3). The term
does not include Roth money.

               (2) “Eligible retirement plan” means an eligible retirement plan under Code
Section 402(c)(8)(B), except that term does not include plans described in Code
Section 457(b). The term includes arrangements described in Code Section 408 only
if no amount in the account or annuity is attributable to any source other than a
rollover contribution from an employees’ trust described in Code Section 401(a) (a
“conduit IRA”).

          (b) The amounts rolled into the Plan will be allocated to a subaccount for rollover
contributions.

          (c) The option described in (a) to make rollover contributions is available only in
accordance with procedures established by the Committee.

          (d) The Committee may condition acceptance of a rollover contribution described in (a)
upon its reasonable conclusion that the distributing plan is qualified, such as by requiring
written confirmation, as described in Treasury Regulation Section 1.401(a)(31)-1, Q&A-13(b).
The Committee may set up rules that may be changed at any time without advance notice to
Eligible Employees or Participants.

          (e) An Eligible Employee may make a rollover contribution that the Committee later
determines does not qualify as an eligible rollover contribution. In such a case, the
Committee will distribute to the Employee as soon as practicable the amount to the
Employee’s credit in the rollover contribution subaccount, valued as of the time of the
distribution.

          Section 4.07 Contributions for Certain Periods of Qualified Military
Service. This Section 4.07 shall apply with respect to a Participant who becomes disabled or
dies during a period of qualified military service, as determined under Code Section 414(u). The
Company shall make the Company contributions on behalf of the Participant to the extent that such
contributions would have been made under the terms of the Plan, as modified by this Section 4.06,
if the Participant had been reemployed by a Participating Company on the date immediately preceding
his or her disability or death, as applicable, and then terminated employment on the date of his or
her disability or death.

          The Company contributions that are conditioned on Participant Deposits and/or Catch-Up
Contributions shall be determined based on the Participant’s average Deposits and Catch-Up
Contributions for the 12 months immediately preceding the period of qualified military service, or
if shorter his or her actual continuous Period of Service with the Participating Company. Any

15

 

other Company contributions shall be determined based on either: (a) the Compensation that the
Participant would have received during the period of qualified military service if the Participant
had continued to be employed by the Participating Company, determined by the Committee in
accordance with the Code and applicable regulations; or (b) if the amount in clause (a) is not
reasonably certain, the Participant’s Compensation from the Participating Company during the
12-month period (or, if shorter, his or her actual continuous Period of Service with the
Participating Company) immediately preceding the start of such qualified military service.
Notwithstanding the foregoing, the amounts contributed under this Section 4.07 shall be limited by
application of Article 10 during the year(s) to which the contributions relate and shall be reduced
by any Company contributions actually made on behalf of the Participant during such period of
qualified military service.

16

 

ARTICLE 5

Accrued Benefits

          Section 5.01 Individual Accounts. Each Participant’s accrued benefit under
the Plan shall be represented by the balance of his or her accounts. The Committee shall keep
separate subaccounts for each Participant, reflecting Deposits and Company contributions including
Forfeitures and the income or loss allocable thereto.

          Section 5.02 Determination of Account Balances. As of each Accounting Date,
each Participant’s account shall be credited or debited, as appropriate, with (a) his or her
Deposits withheld since the previous Accounting Date, (b) any Company contributions described in
Section 4.03 and 6.05 that are then allocable or apportioned to the Participant’s account and (c)
any payments from the account made pursuant to Article 8. The net income or loss shall be
apportioned to the account of each Participant pursuant to Section 5.03 as of each Accounting Date,
unless the Plan is terminated on another such date, in which event the apportionment shall occur
effective as of the date of termination. The amounts so credited or debited shall be allocated to
the appropriate subaccounts in accordance with Section 5.01.

          Section 5.03 Allocation of Trust Income to Accounts.

          (a) Investment Funds. The Trustee will determine separately for each
Investment Fund and for the balance of the Trust Fund not invested in an Investment Fund the
net income or loss for each business day.

          (b) Net Income or Loss. Net income or loss will consist of the investment
income or loss of the Investment Fund or the Trust Fund for the appropriate valuation
period. This includes the net appreciation or depreciation in the fair value of the
Investment Fund or the Trust Fund all properly allocable to such period, less investment
expenses and expenses of administering the Plan (other than expenses of administration not
paid by the Trustee or the payment of which would be a prohibited transaction under ERISA
and not exempt thereunder).

          (c) Apportioning Net Income or Loss. The Committee or its delegate will
apportion and credit or debit, as the case may be, the amount determined under
subsection (b) to the accounts of Participants at the end of the appropriate period in
proportion to their respective account balances under the Plan as determined at the
beginning of the period. For the purpose of apportioning items based on the status of the
account at the beginning of a valuation period, all account balances or portions thereof
that, during the month, were payable, paid, or forfeited will be deemed to have been zero at
the beginning of the period.

17

 

ARTICLE 6

Vesting

     Section 6.01 Deposits Always Vested. A Participant shall always be 100
percent vested in amounts attributable to his or her Deposits.

     Section 6.02 Full Vesting at Age 65, Death, Disability, Plan Termination. A
Participant who is an Employee shall be 100 percent vested in his or her total account balance as
of the earliest of the following dates: (a) the date of his or her 65th birthday, (b) the date of
his or her death, or (c) the date he or she becomes totally disabled. An Employee is totally
disabled if he or she is permanently, continuously, and wholly prevented by bodily injury or
disease for life from engaging in any occupation for wage or profit and is also entitled to receive
disability benefits under the Social Security Act. A Participant will also be 100 percent vested
in his or her total account balance if Company contributions to the Plan are completely
discontinued or if the Plan is terminated as described in Code Section 411(d).

     Section 6.03 Vesting in Company Contributions.

          (a) Except as provided in subsection (b) and (c), a Participant will be 50% vested in
his or her Company contributions upon completion of two Years of Service and 100% vested
upon completion of three Years of Service.

          (b) Any Participant whose Termination of Employment occurs on or after March 1, 2001 as
a result of the closing or “downsizing” of the corporate offices of Litton will be 100%
vested in his or her Company contributions, regardless of his or her Years of Service.

          (c) To the extent a Participant has not been vested in accordance with another
provision of this Plan, the provisions of this subsection shall apply in the event of the
disposition of all or any part of a CT Business Unit.

               (1) To the extent required under the terms of the agreement governing the
disposition of a CT Business Unit, any affected Participant as of the Closing Date
under the applicable agreement will be 100% vested in his or her Company
contributions, regardless of his or her Years of Service, as of the day before the
Closing Date. For purposes of this subsection, “Closing Date” means the closing
date under the agreement governing the disposition the terms of which require the
vesting described above.

               (2) For purposes of this subsection, “CT Business Unit” means: Kester Solder
Division (Entity Code 205), Interconnect (Entity Code 206), Winchester Electronics
Division (Entity Code 208), and Poly-Scientific Division (Entity Code 209), not
including employees who provided services at the Charlotte location that was
subsequently re-designated as the Synoptics Division (Entity Code 416).

     Section 6.04 Forfeitures. If a Participant’s Termination of Employment
occurs and such Participant receives a distribution of his or her vested accrued benefit under the
Plan, the 

18

 

portion of his or her account balance that is not vested shall be forfeited. Otherwise,
the portion of his or her account balance that is not vested shall be forfeited only after such
Participant has incurred a Break in Service Period of five years.

     Section 6.05 Application of Forfeitures. To the extent not used in the Plan
Year to restore Participants’ accounts pursuant to Section 6.06, the Committee shall apply
Forfeitures to reduce Company contributions due for the accounting period in which they arise. Any
Forfeitures in excess of the amounts applied to reduce Company contributions and to restore
Participants’ accounts in such accounting period shall be carried forward to restore Participants’
accounts and to reduce Company contributions due for succeeding accounting periods that fall in the
same Plan Year as the accounting period in which the Forfeitures arose. In the event that
Forfeitures arise in the year the Plan terminates, such Forfeitures shall be used to restore
Participants’ accounts and the excess, if any, shall be used to reduce Company contributions (if
any) due for the year.

     Section 6.06 Reinstatement of Forfeitures. If upon Termination of
Employment a Participant incurred a Forfeiture, and if he or she is reemployed by the Company
before he or she has incurred a Break in Service Period of five years, then the balance of his or
her account that was forfeited pursuant to Section 6.04, unadjusted by any gains or losses, shall
be reinstated upon rehire. The restored balance shall be funded, first, by Forfeitures arising in
the accounting period of the rehire or repayment and succeeding accounting periods within the same
Plan Year, and, second, by additional Company contributions, which shall be due by the end of said
Plan Year. Thereafter, the balance of his or her reinstated account that is considered vested
shall be determined in accordance with Section 6.03 as if the Participant had remained continuously
employed by the Company, but excluding the Break in Service Period, in determining Years of
Service.

19

 

ARTICLE 7

Investment Funds And Elections

Regarding Deposit Rates And Election Of Funds

     Section 7.01 Investment Funds. The Investment Committee will establish a
number of different investment funds or other investment options for the Plan. The Investment
Committee may change the funds or other investment options from time to time, except that the Plan
shall maintain the Huntington Ingalls Industries Fund in accordance with Appendix G and the
Northrop Grumman Fund subject to the terms and conditions of Section 7.02.

     Section 7.02 Northrop Grumman Fund.

     (a) General. As a result of the Spin-Off, the Plan will receive a transfer of
a portion of the Northrop Grumman Fund under the Northrop Grumman Financial Security and
Savings Program. In order to permit Participants a reasonable opportunity to decide when
they wish to liquidate, in an orderly fashion, their investment in the Northrop Grumman
Fund, the Plan will maintain the Northrop Grumman Fund in accordance with the provisions of
this Section 7.02. However, no new investment in the Northrop Grumman Fund shall be
permitted. Any cash dividends paid with respect to a Participant’s interest in the Northrop
Grumman Fund shall be reinvested in the Northrop Grumman Fund.

The Northrop Grumman Fund shall be maintained until such date as determined by the
Investment Committee for the purpose of permitting Participants the opportunity to divest
their interests in the Northrop Grumman Fund. Prior to such date selected by the Investment
Committee, Participants may direct the transfer of investment out of the Northrop Grumman
Fund, subject to Section 7.03, but may not direct any transfers, contributions or other
investments to the Northrop Grumman Fund. Commencing on the date selected by the Investment
Committee, there shall be implemented reasonable and prudent measures to liquidate, in an
orderly fashion, the common stock of Northrop Grumman Corporation held in the Northrop
Grumman Fund. At the conclusion of such liquidation, the proceeds from the liquidation
shall be deposited in Plan participant Accounts in an investment fund to be determined by
the Investment Committee.

     (b) Voting a Participant’s Investment in Common Stock. Each Participant shall
be entitled to direct the manner in which the shares (including fractional shares) of
Northrop Grumman Corporation common stock in his or her Account in the Northrop Grumman
Fund are to be voted. The Trustee shall vote such shares in accordance with the directions
of the Participants. This requirement will be met if the Trustee votes the combined
fractional shares to the extent possible to reflect the direction of the voting
Participants. All shares credited to Participants’ Accounts as to which the Trustee does
not receive voting directions, and all unallocated shares held by the Trustee, shall be
voted by the Trustee proportionately in the same manner as the Trustee votes shares as to
which the Trustee has received voting instructions. The Company will cause proxy materials
to be distributed to all Participants who have an Account balance in the Northrop Grumman
Fund prior to each stockholders’ meeting at the same time it distributes such materials to
all other stockholders.

20

 

     Section 7.03 Election of Investment Fund. The Investment Committee shall
manage the investment of all amounts attributable to Retirement Fund Deposits. All other amounts
held in each Participant’s accounts shall be invested in accordance with the Election of such
Participant, made pursuant to Section 7.04(b) below.

     Section 7.04 Elections. The following procedures shall govern the making of
Elections regarding Deposits and Investment Funds.

          (a) Elections Regarding Deposit Rates.

     (1) Election of Participant Contributions. An active Participant may
elect to make contributions by filing an authorization with the Committee. In the
authorization, the Participant:

              (A) Agrees to be bound by the terms of the Plan,

              (B) Chooses the percentages of Compensation that he or she wishes to
contribute, and

              (C) Authorizes the Employer to withhold his or her contributions from
his or her paychecks.

The Committee may specify further rules and procedures for these
authorizations, which rules and procedures may be changed at any time
without advance notice to Participants.

     (2) Elections for Transferring Employees. If an Employee transfers
from an ineligible position to a position that makes him or her an Eligible Employee
and such Eligible Employee was previously a Participant in the Plan, his or her
Deposit Election at the time of his or her prior participation will be applied under
the Plan when he or she recommences participation in accordance with the rules and
procedures determined by the Committee. If an Employee transfers from an ineligible
position to a position that makes him or her an Eligible Employee and such
transferring Employee was not previously a Participant in the Plan, his or her
Deposit Election shall be governed by Section 4.01.

     (3) Changes in Participant Contributions.

    (A) An active Participant may change the amount of his or her
contributions and select a new percentage of contributions as often as
permitted under rules established by the Committee.

    (B) The Committee may specify the rules and procedures for these
changes, including timing rules for when the changes become effective, which
rules and procedures may be changed at any time without advance notice to
Participants.

21

 

     (4) Stopping Contributions. An active Participant may stop making all
contributions under rules prescribed by the Committee.

          (A) To resume making contributions, a Participant must elect to begin
contributions again in accordance with the rules and procedures of the
Committee.

          (B) The Committee may specify further rules and procedures for these
changes, including timing rules for when the contributions cease, which
rules and procedures may be changed at any time without advance notice to
Participants.

     (b) Elections Regarding Investment Funds.

     (1) Initial Elections. When an Employee first makes an Election
regarding a Deposit rate pursuant to subparagraph (a)(1) above, an Investment Fund
or Funds shall be specified for the investment of all amounts that are not
Retirement Fund Deposits and income thereon. The Elected Investment Fund or Funds
shall be effective with respect to Deposits (except Retirement Fund Deposits) and
Company contributions made on and after the first date of the calendar month after
the calendar month during which the Election is received by the Committee’s
delegate. The Election shall be irrevocable except as provided in (2) below.

     (2) Subsequent Elections Future Deposits. An Employee may elect new
Investment Funds for future contributions by doing so in accordance with the
instructions provided under the Plan’s website or interactive telephone system. The
effective date of the new Election will be in accordance with procedures established
by the Committee or its delegate.

     (3) Reallocation of Assets. An Employee may reallocate assets among
the Investment Funds for an existing account through the Plan’s website or
interactive telephone system. New Elections may be made as frequently as daily and
will be effective as of the close of the business day on which the new Election is
made.

     (4) Limits on Election Regarding Investments. No Participant may Elect
to allocate to any Investment Fund less than 100% of any item that he or she can
otherwise so allocate unless the percentage Elected (i) is a whole multiple of 1%
and (ii) totals 100% when added to other such percentages Elected at the same time.

     (5) Special Restrictions Regarding Investments in Northrop Grumman
Fund. Participants shall not be permitted to invest any contributions to the
Plan in, or to transfer existing Account balances to, the Northrop Grumman Fund.
Participants shall be permitted to divest their interest in the Northrop Grumman
Fund in accordance with Sections 7.02(a) and 7.03, subject to this Section 7.04.

22

 

     (6) Notwithstanding the preceding provisions of this Section 7.04(b) and except
as necessary under Section 11.16, Employees who are officers subject to Section 16
of the Securities Exchange Act of 1934 and other appointed or elected officers of
the Company may not, absent prior approval of the office of the Corporate Secretary
of the Company, transfer out of the Northrop Grumman Fund outside the window period
specified by the Corporate Vice President and General Counsel of the Company.
Except as determined by the Corporate Vice President and General Counsel of the
Company, each window period shall begin the second day following the release of the
Company’s quarterly or annual statement of sales and earnings and end as of the 30th
day following such announcement.

The Committee may specify further rules and procedures for these changes, including
timing rules for when the contributions cease, which rules and procedures may be
changed at any time without advance notice to Participants

     Section 7.05 The Huntington Ingalls Industries Fund. The Huntington Ingalls
Industries Fund will invest in Huntington Ingalls Industries, Inc. stock, subject to Article G9 of
the ESOP. No amounts may be transferred to or from the Huntington Ingalls Industries Fund, except
to the extent permitted by the ESOP. Huntington Ingalls Industries, Inc. stock held in the
Huntington Ingalls Industries Fund will be voted in accordance with the ESOP.

     Section 7.06 Investment Trading Restrictions for Officers. Notwithstanding
the preceding provisions of this Article 7 and except as necessary under Section 11.16, Company
policy provides that Employees who are officers subject to Section 16 of the Securities Exchange
Act of 1934 and other appointed or elected officers of the Company may not, absent prior approval
of the office of the Corporate Secretary of the Company, make any investment elections impacting,
or transfer into or out of, the Huntington Ingalls Industries Fund outside the window period
specified by the Corporate Vice President and General Counsel of the Company. Except as determined
by the Corporate Vice President and General Counsel of the Company, each window period shall begin
the second day following the release of the Company’s quarterly or annual statement of sales and
earning and end as of the 30th day following such announcement. The restrictions in this Section
7.06 shall be implemented by the Plan as soon as administratively feasible after March 31, 2011.

23

 

ARTICLE 8

Eligibility For And Payment Of Benefits

     Section 8.01 Eligibility to Receive Benefits. A Participant shall become
eligible to receive his or her vested accrued benefit under the Plan upon his or her Termination of
Employment. If the Participant dies before such benefit is paid, his or her Beneficiary shall be
eligible to receive such benefit.

     Section 8.02 Application for Benefits. No person who is eligible to receive
benefits under the Plan pursuant to Section 8.01 with a value exceeding $1,000 on the date of
distribution shall receive such benefits until he or she has made a properly completed written
request to the Committee or his or her delegate. This Section 8.02 shall be applied without
regard to the $1,000 threshold with respect to a Participant employed by Ingalls Shipbuilding, Inc.
who is represented by a collective bargaining agreement or who was represented by a collective
bargaining agreement but has transferred to a non-represented position.

     Section 8.03 Hardship Withdrawals. While this Plan is in effect, an
Employee may apply for a withdrawal from his or her account of any amount not in excess of sum of
(i) the vested portion of his or her Company contributions related to Savings Account Deposits and
(2) his or her Savings Account Deposits and the net income credited thereon before January 1, 1989.
Any application for a hardship withdrawal will be approved by the Committee or his or her delegate
if the Employee demonstrates that the withdrawal is on account of a “financial hardship.” For
purposes of this Section, a “financial hardship” means an immediate and heavy financial need. A
distribution shall be deemed to be made on account of an immediate and heavy financial need if the
distribution is on account of:

     (a) Medical expenses described in Code Section 213(d) (determined without regard to
whether the expenses exceed 7.5% of adjusted gross income), incurred by the Participant, his
or her spouse, or any dependent (as defined in Code Section 152, determined without regard
to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)) of the Participant, or the Beneficiary;

     (b) Purchase (excluding mortgage payments) of a principal residence for the
Participant;

     (c) Payment for all or a portion of the next 12 months of post-secondary education for
the Participant, his or her spouse, children, dependents (as defined in Code Section 152,
determined without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)) or Beneficiary;

     (d) Need to prevent the eviction of the Participant from his or her principal residence
or foreclosure on the mortgage of the Participant’s principal residence;

     (e) Payment of burial or funeral expenses for the Participant’s deceased parent,
spouse, children or dependents (as defined in Code Section 152, determined without regard to
Code Section 152(d)(1)(B)) or Beneficiary;

24

 

     (f) Payment of expenses for the repair of damage to the Participant’s principal
residence that would qualify for the casualty deduction under Code Section 165 (determined
without regard to whether the loss exceeds 10% of adjusted gross income);

     (g) Payment of any federal, state or local income taxes or penalties reasonably
anticipated to result from the hardship withdrawal; or

     (h) To satisfy any other circumstances determined by the Secretary of the Treasury to
constitute immediate and heavy financial need for this purpose.

A hardship distribution may not exceed the amount necessary to meet the immediate and heavy
financial need created by the hardship and any taxes reasonably expected to result from the
distribution, and which financial need can not be satisfied from other resources reasonably
available to the Participant. The Plan shall not require an Employee to request a loan from
any plan maintained by the Company or maintained by any Related Entity if the Employee
certifies that obtaining the loan will increase the Employee’s hardship.

Only one such withdrawal shall be permitted during any period of 12 consecutive months. An
Employee who receives a hardship distribution pursuant hereto shall continue to become
vested in his or her nonvested accrued benefit in accordance with Section 6.03. A
Participant who receives a hardship distribution will be prohibited from making elective
deferrals and receiving Company contributions under this Plan and all other plans of the
Company or any Affiliated Company for six months after receipt of the distribution.

          Section 8.04 Involuntary Distributions. Unless he or she otherwise elects,
a Participant whose Termination of Employment has occurred shall be deemed to have automatically
elected distribution of his or her benefits immediately, if such benefits equal $1,000 or less on
the date of distribution. Anything herein contained to the contrary notwithstanding, the
distribution of benefits to a Participant who was a 5% or more owner at any time during the Plan
Year ending with the calendar year in which such Participant attained age 701/2 must begin no later
than the April 1 of the calendar year following the year in which the Participant attains age 701/2,
in accordance with Code Section 401(a)(9) and the regulations thereunder. The first sentence of
this Section 8.04 shall not apply to Participants employed by Ingalls Shipbuilding, Inc. who are
represented by a collective bargaining agreement or who were represented by a collective bargaining
agreement but have transferred to a non-represented position.

          Section 8.05 Form of Benefit.

          (a) Except as provided below, Plan benefits shall be paid in a lump sum in cash.

          (b) Anything herein contained to the contrary notwithstanding, if the Participant’s
benefits exceed $1,000 on the date of distribution, benefits attributable to Retirement Fund
Deposits shall be payable in the form of a Joint and Surviving Spouse Annuity unless the
Participant has elected otherwise pursuant to paragraph (d)(d).

25

 

          (c) For purposes of the Plan, “Joint and Surviving Spouse Annuity” means:

     (1) for a married Participant, an annuity that provides a monthly benefit to
the Participant for his or her life and, upon his or her death, an annuity for the
life of his or her surviving spouse in a monthly amount to be selected by the
Participant and his or her spouse equal to at least one-half of the amount payable
to the Participant during his or her life, including a 50% joint and survivor
annuity and a 75% optional survivor annuity, in compliance with Code
Sections 401(a)(11) and 417; and

     (2) for a single Participant, an annuity for his or her life. Unless a
Participant’s account balance attributable to his or her Retirement Fund Deposits is
transferred to a Retirement Plan, the monthly amount of the Joint and Surviving
Spouse Annuity shall be provided by the life insurance company selected from time to
time by the Company, in consideration for the full value of the Participant’s
attributable to his or her Retirement Fund Deposits account balance.

In lieu of receipt of a life insurance company annuity, a Participant may elect to
have the Trustee transfer his or her benefits attributable to his or her Retirement
Fund Deposits (provided that on the date of distribution his or her Retirement Fund
Deposits account balance exceeds $1,000) into the Retirement Plan in which he or she
had participated at the time of his or her election to be paid in the form and
manner provided under such Retirement Plan.

          (d) Subject to the spousal consent requirements of this paragraph (d), a Participant
may elect to receive benefits attributable to his or her Retirement Fund Deposits in a form
other than as a Joint and Surviving Spouse Annuity or transfer to a Retirement Plan under
paragraph (c). The Participant must make this election during the 90-day period before the
annuity starting date. If the Participant is married, the election must be accompanied by a
valid spousal consent that acknowledges the effect of the election, is signed by the
Participant’s spouse, and is witnessed by the Committee or its representative, or a notary
public. In addition, the election may be revoked in writing, and after such revocation
another election in writing not to receive benefits attributable to Retirement Fund Deposits
in the form of a Joint and Surviving Spouse Annuity may be made at any time and any number
of times during the 90-day period prior to the annuity starting date. For purposes of this
Article, the term “annuity starting date” means the first day of the first period for which
an amount is paid as an annuity or paid in any other form.

	          (e)	 	(1) Within a reasonable time prior to the Employee’s fifty-fifth (55th)
birthday, or, if later, on or about the date of his or her commencement of
participation in the Plan, the Committee shall furnish the Employee with the following:

          (A) a general description of the Joint and Surviving Spouse Annuity,
the circumstances under which it will be provided unless the

26

 

Employee has
elected not to have benefits provided in that form, and the availability of
such election,

          (B) a general explanation of the relative financial effect on an
Employee’s Plan benefit of the election described in (A), and

          (C) information as to the availability of the additional information
described in the following paragraph (2) and how it may be obtained.

	 	(2)	 	Upon written request to the Committee within 60 days of the receipt of the
material described in paragraph (1), an Employee shall be furnished, within 30 days,
a written explanation of the terms and conditions of the Joint and Surviving Spouse
Annuity and the financial effect of such annuity form on the Employee’s Plan benefit
based on the annuity purchase rates then most recently quoted by insurers to the
Committee. Unless previously furnished to the Committee, such request by the
Employee must include the name, date of birth and social security number of both the
Employee and his or her spouse.

     (f) An Employee shall not be considered to be a “married Employee” for purposes of
Section 8.05 unless he or she shall have been legally married to his or her spouse
throughout the one-year period ending on the commencement date of the Joint and Surviving
Spouse Annuity.

     (g) A Participant’s interest in the Huntington Ingalls Industries Fund will be
distributed in accordance with the ESOP.

     (h) Participants may elect to receive a distribution with respect to that portion of
his or her Account then invested in the Northrop Grumman Fund in whole shares of common
stock of Northrop Grumman Corporation, with any fractional shares paid in cash. If no such
election is made, that portion of a Participant’s Account invested in the Northrop Grumman
Fund shall be distributed in cash.

     (i) The Committee shall maintain, within the Plan, provisions for the systematic
payment of distributions of a Participant’s total vested benefit, including Employee and
employer contributions, after retirement in a form that is paid or payable for the life of
the Participant at the option of the Participant.

Section 8.06 Death Benefits.

          (a) Except as provided below, Plan benefits paid to a Beneficiary shall be paid in a
lump sum in cash. If a Beneficiary entitled to a payment dies, any amount payable to the
Beneficiary will be paid to the Beneficiary’s estate in a lump sum in cash as soon as
administratively practicable.

          (b) If a married Participant dies before beginning to receive benefits pursuant to
Section 8.05, his or her surviving spouse, if legally married to the Participant for at
least one year prior to the Participant’s death, shall be entitled to receive Plan benefits

27

 

attributable to Retirement Fund Deposits in the form of a surviving spouse annuity. In
order to pay such surviving spouse annuity, the Trustee shall transfer the benefit
attributable to the Participant’s Retirement Fund Deposits into the appropriate Retirement
Plan, provided that the value of the benefits payable to the spouse exceeds $1,000 on the
date of distribution, to be paid in the form and manner provided under the Retirement Plan.
Such election must acknowledge the effect of the election to transfer benefits, and the
surviving spouse’s signature must be witnessed by the Committee, his or her representative,
or a notary public.

          (c) A Participant’s surviving spouse may reject the surviving spouse annuity form of
death benefit by filing a properly completed written election form with the Committee
acknowledging the effect of the election, signed by the surviving spouse and witnessed by
the Committee, his or her representative, or a notary public. If the surviving spouse
annuity is waived, death benefits shall be paid in accordance with paragraph (a) above.

          (d) Death benefits payable hereunder will be distributed either (i) within five years
after the Participant’s death or (ii) over the life of the Participant’s spouse, in the case
of benefits payable in the form of the surviving spouse annuity, beginning not later than
the end of the calendar year following the calendar year in which the Participant would have
attained age 701/2.

          (e) A Participant’s interest in the Huntington Ingalls Industries Fund will be
distributed in accordance with the ESOP.

          (f) Notwithstanding anything in this Plan to the contrary, the Plan shall distribute a
surviving spouse’s entire benefit in a single, lump sum as soon as administratively feasible
after Code Section 401(a)(9) requires the surviving spouse to receive a minimum required
distribution; and (2) the Plan shall distribute each other Beneficiary’s entire benefit in a
single, lump sum as soon as administratively feasible after the date the Participant dies.

          (g) If a Participant dies during a period of qualified military service, as determined
under Code Section 414(u), his or her Beneficiary shall be entitled to any additional
benefits, other than benefit accruals, as if the Participant was reemployed by a
Participating Company on the date immediately preceding his or her death and terminated
employment on the date of his or her death.

Section 8.07 Payments of Benefits. Unless otherwise elected, benefits will
commence no later than the later of the following:

          (a) the Participant’s Mandatory Commencement Date; or

          (b) Sixty days after the close of the Plan Year in which the Participant separates from
service with the Employer.

	 	 	Notwithstanding the preceding sentence and except as provided under Code Section 401(a)(9),
payment of benefits shall not commence until the Committee receives 

28

 

	 	 	a properly completed
election form in accordance with Section 8.02, except as otherwise provided in Section 8.04.
The recipient’s elected benefit shall be paid from the Trust Fund and/or purchased from an
insurance company or transferred to the Retirement Plan within 120 days following the
Accounting Date after the Committee receives the election, and shall be based on the value
of the Participant’s accounts as of such Accounting Date.

     Section 8.08 Income Tax Withholding. All payments hereunder shall be
subject to income tax withholding to the extent required by the Code and, if not preempted by
ERISA, applicable state law.

Section 8.09 Direct Rollovers.

       (a) Notwithstanding any provision of the Plan to the contrary that would otherwise
limit a Distributee’s election under this Article 8, a Distributee may elect, at the time
and in the manner prescribed by the Committee, to have any portion of an Eligible Rollover
Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a
Direct Rollover (as those terms are defined in this Section). This Section is intended only
to implement Code Section 401(a)(31):

     (1) Eligible Rollover Distribution: An Eligible Rollover Distribution
is any distribution of all or any portion of the balance to the credit of the
Distributee, except that an Eligible Rollover Distribution does not include:

          (A) any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or
life expectancy) of the Distributee or the joint lives (or joint life
expectancies) of the Distributee and the Distributee’s designated
Beneficiary, or for a specified period of ten years or more;

          (B) any distribution to the extent such distribution is required under
Code Section 401(a)(9); or

          (C) any distribution which is made upon hardship of the Distributee.

If the Plan permits Participants to make after-tax contributions, for purposes of
this Section, a portion of a distribution shall not fail to be an Eligible Rollover
Distribution merely because the portion consists of after-tax contributions, which
are not includible in gross income. After-tax contributions, however, may be
transferred only to an individual retirement account or annuity described in Code
Sections 408(a) or (b) (including a Roth individual retirement account described in
Code Section 408A) or to a qualified defined contribution plan described in Code
Sections 401(a), 403(a) or 403(b) that agrees to separately account for amounts so
transferred, including separately accounting for the portion of a distribution that
is includible in gross income and the portion of a distribution that is not
includible in gross income

          (2) Eligible Retirement Plan: An Eligible Retirement Plan is:

29

 

         (A) an individual retirement account described in Code Section 408(a),
including a Roth individual retirement account described in Code Section
408A;

               (B) an individual retirement annuity described in Code Section 408(b);

               (C) an annuity plan described in Code Section 403(a);

               (D) a qualified trust described in Code Section 401(a);

         (E) an eligible deferred compensation plan described in Code Section
457(b) which is maintained by a state, political subdivision of a state, or
any agency or instrumentality of a state or political subdivision of a
state; or

               (F) an annuity contract described in Code Section 403(b) that accepts
the Distributee’s Eligible Rollover Distribution.

However, in the case of an Eligible Rollover Distribution to a Beneficiary
who is a designated beneficiary as defined in Code Section 401(a)(9)(E), but
is not a surviving spouse or a former spouse who is an alternate payee under
a qualified domestic relations order as defined in Code Section 414(p), an
Eligible Retirement Plan is only an individual retirement account or
individual retirement annuity that is treated as an inherited account under
Code Section 402(c)(11).

     (3) Distributee: A Distributee includes an Employee or former
Employee. In addition, the Employee’s surviving spouse and Employee’s or former
Employee’s spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Code Section 414(p), are Distributees with
regard to the interest of the spouse or former spouse. In addition, a Beneficiary
who is a designated beneficiary as defined in Code Section 401(a)(9)(E) is a
Distributee with regard to the Beneficiary’s interest in the Plan.

     (4) Direct Rollover: A Direct Rollover is a payment by the Plan to the
Eligible Retirement Plan specified by the Distributee.

(b) The Committee shall prescribe reasonable procedures for the election of Direct
Rollovers under this Section, including but not limited to:

          (1) Requirements that the Distributee provide the Committee with adequate
information, including, but not limited to, the name of the Eligible Retirement Plan
to which the rollover is to be made, a representation that the recipient plan is an
individual retirement account or annuity, a 403(a) annuity or a qualified plan (as
applicable), acknowledgment from the recipient plan that it will

30

 

accept the Direct
Rollover, and any other information necessary to make the Direct Rollover;
 

          (2) Limitations on the amount of a Direct Rollover, providing that a Direct
Rollover may not be elected by a Distributee whose Eligible Rollover Distributions
during a year are reasonably expected to be less than $200, and providing that, in
the case of a Distributee who elects to receive part of his or her distribution in
cash and to have the remainder paid to an Eligible Retirement Plan, the portion to
be directly rolled-over must be equal to at least $500; and

          (3) Requirements prohibiting the division of an Eligible Rollover Distribution
into separate distributions to be paid to more than one Eligible Retirement Plan.

(c)
If a distribution is one to which Code Sections 401(a)(11) and 417 do not apply,
such distribution may commence less than 30 days after the notice required under Treasury
Regulation Section 1.411(a)-11(c) is given, provided that:

          (1) the Committee clearly informs the Participant that the Participant has a
right to a period of at least 30 days after receiving the notice to consider the
decision of whether or not to elect a distribution (and, if applicable, a particular
distribution option), and

          (2) the Participant, after receiving the notice, affirmatively elects a
distribution.

     Section 8.10 Elective Transfers to a Plan Under Code Section 401(k) Sponsored by
an Affiliated Company. For the period ending April 30, 2002, a Participant in the Plan may
irrevocably elect to transfer account balances attributable to either or both of his Retirement
Fund and/or Savings Account Deposits under the Plan to another plan sponsored by an Affiliated
Company which plan is intended to qualify under Code Section 401(k). Such Participant is only
allowed to do so if he is employed by such Affiliated Company. If such an elective transfer is
made, the Participant shall, for purposes of Section 6.03, be treated as having completed three
Years of Service notwithstanding his actual number of Years of Service. If such an elective
transfer is made, the Participant shall not be allowed to redeposit any of such amounts or any
earnings thereon to the Plan thereafter. For the period beginning on or after May 1, 2002, a
Participant may only elect a rollover distribution as permitted under Section 8.09.

     Section 8.11 Age 701/2 Distributions. Any Participant who attains age 701/2 on
or after January 1, 1999, may not receive his or her vested accrued benefit until he or she incurs
a Termination of Employment.

     Section 8.12 Minimum Distribution Requirements.

     (a)    Treasury
Regulations Incorporated.  All distributions required under this
Section will be determined and made in accordance with the Treasury
Regulations under Code Section 401(a)(9).

31

 

     (b) TEFRA Code Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Section, distributions may be made under a designation made before
January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal
Responsibility Act (“TEFRA”) and the provisions of the Plan that relate to Section
242(b)(2) of TEFRA.

     (c) Time and Manner of Distribution.

     (1) Mandatory Commencement Date. The Participant’s entire interest
will be distributed, or begin to be distributed, to the Participant no later than
the Participant’s Mandatory Commencement Date.

     (2) Death of Participant Before Distributions Begin. If the
Participant dies before distributions begin, the Participant’s entire interest will
be distributed, or begin to be distributed, no later than as follows:

     (A) If the Participant’s surviving spouse is the Participant’s sole
Designated Beneficiary, then distributions to the surviving spouse will
begin by December 31 of the calendar year immediately following the calendar
year in which the Participant died, or by December 31 of the calendar year
in which the Participant would have attained age 70-1/2, if later.

     (B) If the Participant’s surviving spouse is not the Participant’s sole
Designated Beneficiary, then distributions to the Designated Beneficiary
will begin by December 31 of the calendar year immediately following the
calendar year in which the Participant died.

     (C) If there is no Designated Beneficiary as of September 30 of the
year following the year of the Participant’s death, the Participant’s entire
interest will be distributed by December 31 of the calendar year containing
the fifth anniversary of the Participant’s death.

     (D) If the Participant’s surviving spouse is the Participant’s sole
Designated Beneficiary and the surviving spouse dies after the Participant
but before distributions to the surviving spouse begin, this Section
8.12(c)(2), other than Section 8.12(c)(2)(A), will apply as if the surviving
spouse were the Participant.

For purposes of this Section 8.12 (c) and Section 8.12(e), unless Section
8.12(c)(2)(D) applies, distributions are considered to begin on the Participant’s
Mandatory Commencement Date. If Section 8.12(c)(2)(D) applies, distributions are
considered to begin on the date distributions are required to begin to the surviving
spouse under Section 8.12(c)(2)(A). If distributions under an annuity purchased
from an insurance company irrevocably commence to the Participant before the
Participant’s Mandatory Commencement Date (or to the Participant’s surviving spouse
before the date distributions are required to begin

32

 

to the surviving spouse under
Section 8.12(c)(2)(A), the date distributions are considered to begin is the date
distributions actually commence.

     (3) Forms of Distribution. Unless the Participant’s interest is
distributed in the form of an annuity purchased from an insurance company or in a
single sum on or before the Mandatory Commencement Date, as of the first
Distribution Calendar Year, distributions will be made in accordance with
subsections (d) and (e) herein. If the Participant’s interest is distributed in the
form of an annuity purchased from an insurance company, distributions under that
annuity will be made in accordance with the requirements of Code Section 401(a)(9)
and the Treasury Regulations thereunder.

     (d) Required Minimum Distributions During Participant’s Lifetime.

     (1) Amount of Required Minimum Distribution For Each Distribution Calendar
Year. During the Participant’s lifetime, the minimum amount that will be
distributed for each Distribution Calendar Year is the lesser of:

     (A) the quotient obtained by dividing the Participant’s Account Balance
by the distribution period in the Uniform Lifetime Table set forth in
Treasury Regulation Section 1.401(a)(9)-9, using the Participant’s age as of
the Participant’s birthday in the Distribution Calendar Year; or

     (B) if the Participant’s sole Designated Beneficiary for the
Distribution Calendar Year is the Participant’s spouse, the quotient
obtained by dividing the Participant’s Account Balance by the number in the
Joint and Last Survivor Table provided in Treasury Regulation Section
1.401(a)(9)-9, using the Participant’s and spouse’s attained ages as of the
Participant’s and spouse’s birthdays in the Distribution Calendar Year.

     (2) Lifetime Required Minimum Distributions Continue Through Year of
Participant’s Death. Required minimum distributions will be determined under
this Section 8.12(d) beginning with the first Distribution Calendar Year and up to
and including the Distribution Calendar Year that includes the Participant’s date of
death.

     (e) Required Minimum Distributions After Participant’s Death.

     (1) Death On or After Date Distributions Begin.

     (A) Participant Survived by Designated Beneficiary. If the
Participant dies on or after the date distributions begin and there is a
Designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s Account Balance by the
longer of the remaining Life Expectancy of the Participant or the

33

 

remaining
Life Expectancy of the Participant’s Designated Beneficiary, determined as
follows:

     (i) The Participant’s remaining Life Expectancy is calculated using the
age of the Participant in the year of death, reduced by one for each
subsequent year.

     (ii) If the Participant’s surviving spouse is the Participant’s sole
Designated Beneficiary, the remaining Life Expectancy of the surviving
spouse is calculated for each Distribution Calendar Year after the year of
the Participant’s death using the surviving spouse’s age as of the spouse’s
birthday in that year. For Distribution Calendar Years after the year of
the surviving spouse’s death, the remaining Life Expectancy of the surviving
spouse is calculated using the age of the surviving spouse as of the
spouse’s birthday in the calendar year of the spouse’s death, reduced by one
for each subsequent calendar year.

     (iii) If the Participant’s surviving spouse is not the Participant’s
sole Designated Beneficiary, the Designated Beneficiary’s remaining Life
Expectancy is calculated using the age of the Designated Beneficiary in the
year following the year of the Participant’s death, reduced by one for each
subsequent year.

     (B) No Designated Beneficiary. If the Participant dies on or
after the date distributions begin and there is no Designated Beneficiary as
of September 30 of the year after the year of the Participant’s death, the
minimum amount that will be distributed for each Distribution Calendar Year
after the year of the Participant’s death is the quotient obtained by
dividing the Participant’s Account Balance by the Participant’s remaining
Life Expectancy calculated using the age of the Participant in the year of
death, reduced by one for each subsequent year.

     (2) Death Before Date Distributions Begin.

     (A) Participant Survived by Designated Beneficiary. If the
Participant dies before the date distributions begin and there is a
Designated Beneficiary, the minimum amount that will be distributed for each
Distribution Calendar Year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s Account Balance by the
remaining Life Expectancy of the Participant’s Designated Beneficiary,
determined as provided in Section 8.12(e)(1).

     (B) No Designated Beneficiary. If the Participant dies before
the date distributions begin and there is no Designated Beneficiary as of
September 30 of the year following the year of the Participant’s death,
distribution of the Participant’s entire interest will be completed by

34

 

December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.

     (C) Death of Surviving Spouse Before Distributions to Surviving
Spouse Are Required to Begin. If the Participant dies before the date
distributions begin, the Participant’s surviving spouse is the Participant’s
sole Designated Beneficiary, and the surviving spouse dies before
distributions are required to begin to the surviving spouse under Section
8.12(c)(2)(A), this Section 8.12(e)(2) will apply as if the surviving spouse
were the Participant.

     (f) Definitions.

     (1) Designated Beneficiary. The individual who is designated as the
Beneficiary under the Plan and is the designated beneficiary under Code Section
401(a)(9) and Treasury Regulation Section 1.401(a)(9)-1, Q&A-4.

     (2) Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Participant’s
death, the first Distribution Calendar Year is the calendar year immediately
preceding the calendar year containing the Participant’s Mandatory Commencement
Date. For distributions beginning after the Participant’s death, the first
Distribution Calendar Year is the calendar year in which distributions are required
to begin under Section 8.12(c)(2). The required minimum distribution for the
Participant’s first Distribution Calendar Year will be made on or before the
Participant’s Mandatory Commencement Date. The required minimum distribution for
other Distribution Calendar Years, including the required minimum distribution for
the Distribution Calendar Year in which the Participant’s Mandatory Commencement
Date occurs, will be made on or before December 31 of that Distribution Calendar
Year.

     (3) Life Expectancy. Life expectancy as computed under the Single Life
Table in Treasury Regulation Section 1.401(a)(9)-9.

     (4) Mandatory Commencement Date. The date specified as the
Participant’s required beginning date in the Plan.

     (5) Participant’s Account Balance. The account balance as of the last
valuation date in the calendar year immediately preceding the Distribution Calendar
Year (valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the account balance as of dates in the
valuation calendar year after the valuation date and decreased by distributions made
in the valuation calendar year after the valuation date. The account balance for
the valuation calendar year includes any amounts rolled over or transferred to the
Plan either in the valuation calendar year or in the Distribution Calendar Year if
distributed or transferred in the valuation calendar year.

35

 

     Section 8.13 Age 591/2 Withdrawals.

     (a) Except as provided in (b) and (c), a Participant may withdraw all or a portion of
his or her Savings Account Deposits and Matched Deposits upon reaching age 591/2. This
includes Participants under the circumstances described in Section 8.03 and any earnings
attributable to these Deposits.

     (b) Withdrawals of a Participant’s interest in the Huntington Ingalls Industries Fund
are subject to the ESOP.

     (c) A Participant may not withdraw amounts from the Retirement Fund Deposits under this
Section.

     Section 8.14 Annuity Form of Distribution. To the extent required under Code Sections
401(a)(11) and 417, a married Participant who elects payment of his or her benefits in the form of
a life annuity (if available under the Plan) must receive his or her benefits in the form of a
qualified joint and 50% survivor annuity (“QJSA”) unless the Participant elects another form of
distribution permitted under the Plan, which shall include a single life annuity or a qualified
optional 75% survivor annuity (“QOSA”), with the written consent of his or her spouse that
satisfies the provisions of Code Section 417(a)(2). The required consent must be signed by the
spouse, contain an acknowledgment by the spouse of the effect of the consent, and be witnessed by a
Plan representative (other than the Participant) or by a notary public. Notwithstanding the
foregoing, spousal consent need not be required if the Committee determines that there is no spouse
because the spouse cannot be located or under other circumstances permitted by regulations under
the Code. The provision for the distribution of any annuity form of distribution may be satisfied
by the application of the Participant’s vested benefit to purchase an annuity contract from an
insurance company or other annuity provider.

     The Committee shall provide to the Participant, within a reasonable period before payment of
benefits commences, a written explanation of the terms and conditions of the QJSA and the QOSA, the
Participant’s right to make, and the effect of, an election to waive the QJSA option and elect
another option, the rights of the Participant’s spouse and the Participant’s right to make, and the
effect of, a revocation of a waiver of the QJSA form of distribution.

     Section 8.15 Military Reservist Distributions. Any Participant who is a member of the
U.S. military reserves and who is called or ordered to duty for a period of at least 180 days
during the period after September 11, 2001 and before December 31, 2007, or such other period
designated under Code Section 72(t)(2)(G), may request a distribution from his or her Employee
Deposits by notifying the Committee. The Committee may establish such rules, impose such
requirements and require the completion of such forms and documents (in electronic or paper
formats), in its sole discretion, and applied in a nondiscriminatory and objective basis, in order
to administer this Section 8.15.

     Section 8.16 Military Service Distributions. A Participant may request a distribution
of his or her Deposits during a period of qualified military service, as determined under Code
Section 414(u), of more than 30 days by notifying the Committee. No Deposits shall be made on
behalf of a Participant who takes a distribution pursuant to this Section 8.16 for a period of six

36

 

months following such distribution. The Committee may establish such other rules, impose such
requirements and require the completion of such forms and documents (in electronic or paper
formats), in its sole discretion, and applied in a nondiscriminatory and objective basis, in order
to administer this Section 8.16.

     Section 8.17 Restriction on Withdrawals for Officers.

     (a) Huntington Ingalls Industries Fund. Company policy provides that an
Employee who is an officer subject to Section 16 of the Securities Exchange Act of 1934 or
other appointed or elected officer of the Company may not, absent prior approval of the
office of the Corporate Secretary of the Company, take any withdrawal pursuant to this
Article 8 from the Huntington Ingalls Industries Fund outside the window period specified by
the Corporate Vice President and General Counsel of the Company; however, the portion of
such Participant’s account balance invested in the Huntington Ingalls Industries Fund shall
be taken into consideration for determining the amount available for withdrawals. Except as
determined by the Corporate Vice President and General Counsel of the Company, each window
period shall begin the second day following the release of the Company’s quarterly or annual
statement of sales and earning and end as of the 30th day following such
announcement. The restrictions in this subsection (a) shall be implemented by the Plan as
soon as administratively feasible after March 31, 2011.

     (b) Northrop Grumman Fund. An Employee who is an officer subject to Section 16
of the Securities Exchange Act of 1934 or other appointed or elected officer of the Company
may not, absent prior approval of the office of the Corporate Secretary of the Company, take
any withdrawal pursuant to this Article 8 from the Northrop Grumman Fund outside the window
period specified by the Corporate Vice President and General Counsel of the Company;
however, the portion of such Participant’s Account invested in the Northrop Grumman Fund
shall be taken into consideration for determining the amount available for withdrawals.
Except as determined by the Corporate Vice President and General Counsel of the Company,
each window period shall begin the second day following the release of the Company’s
quarterly or annual statement of sales and earnings and end as of the 30th day
following such announcement.

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ARTICLE 9

Loan Provisions

     Section 9.01 Loans to Participants.

     (a) In General. A Participant who is an active Employee may obtain a loan from
his or her account balance attributable to vested Savings Account Deposits in accordance
with Code Sections 72(p) and 401(k) and the Huntington Ingalls Industries Employee Benefit
Plan Loan Guidelines (“Guidelines”), which can be found in Article 3 of the Standard
Definitions and Procedures for Certain Huntington Ingalls Industries, Inc. Retirement Plans.

     (b) Special Layoff Rule.

     (1) Except as provided in (2) and (3), a Participant described in (4) who
continues to be identified as an Employee on the Company’s payroll system after
layoff (because of open recall rights) generally has the same options as a
Participant who is on authorized leave of absence without pay under Section 3.14(b)
of the Guidelines.

     (2) The maximum term of the suspension period for a Participant described in
(1) equals the lesser of (i) the length of the recall protection period; (ii) the
date the Participant voluntarily terminates employment before the end of the recall
period; or (iii) one year.

     (3) A Participant whose layoff is considered a termination of employment is
subject to the same rules as any other terminated Participant.

     (4) This subsection (b) applies to Participants covered by the following
collective bargaining units:

	 	•	The International Brotherhood of Electrical
Workers, Local Union No. 733, Unit 733.1 Mississippi Gulf Coast
Independent Union of Guards and Watchmen, Local No. 1 International
Association of Machinists and Aerospace Workers, Local No. 1133 The
Office and Professional Employees International Union, AFL-CIO, Local
No. 204

	 	•	The Metal Trades Department, AFL-CIO,
Pascagoula Metal Trades Council (which includes the following members)

	 	–	The International Brotherhood of
Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and
Helpers of America, Local No. 693

	 	–	The International Union of
Operating Engineers, Local No. 624

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	 	–	The International Association of
Sheetmetal Workers, Local No. 441

	 	–	The United Association of
Journeymen and Apprentices of the Plumbing and Pipefitting
Industry, Local No. 436

	 	–	The United Brotherhood of
Carpenters and Joiners of America, Local No. 303

	 	–	The Brotherhood of Painters and
Allied Trades, Local No. 1225

	 	–	The Laborers International Union,
Local No. 689

	 	–	The International Brotherhood of
Teamsters, Chauffeurs, Warehousemen and Helpers of America,
Local No. 991

	 	–	The International Association of
Machinists and Aerospace Workers, Local No. 1133

     (c) Amendments. The Guidelines may be amended at any time without advance
notice to Participants by the individual or entity identified in the Guidelines as having
amendment authority.

     Section 9.02 Certain Transferred Loans. Any Participant with a plan loan outstanding
under the Northrop Grumman Financial Security and Savings Program as of the Spin-Off that was
transferred to this Plan will continue to be required to repay that loan on the same terms and over
the same period as in effect under the terms of the Northrop Grumman Financial Security and Savings
Program as of the date of transfer to this Plan.

     Section 9.03 Restriction on Loans for Officers.

     (a) Huntington Ingalls Industries Fund. Company policy provides that an
Employee who is an officer subject to Section 16 of the Securities Exchange Act of 1934 or
other appointed or elected officer of the Company may not, absent prior approval of the
office of the Corporate Secretary of the Company, take any loan pursuant to this Article 9
from the Huntington Ingalls Industries Fund outside the window period specified by the
Corporate Vice President and General Counsel of the Company; however, the portion of such
Participant’s account balance invested in the Huntington Ingalls Industries Fund shall be
taken into consideration for determining the amount available for loans. Except as
determined by the Corporate Vice President and General Counsel of the Company, each window
period shall begin the second day following the release of the Company’s quarterly or annual
statement of sales and earning and end as of the 30th day following such
announcement. The restrictions in this subsection (a) shall be implemented by the Plan as
soon as administratively feasible after March 31, 2011.

     (b) Northrop Grumman Fund. An Employee who is an officer subject to Section 16
of the Securities Exchange Act of 1934 or other appointed or elected officer of

39

 

the Company may not, absent prior approval of the office of the Corporate Secretary of
the Company, take any loan pursuant to this Article 9 from the Northrop Grumman Fund outside
the window period specified by the Corporate Vice President and General Counsel of the
Company; however, the portion of such Participant’s Account invested in the Northrop Grumman
Fund shall be taken into consideration for determining the amount available for loans.
Except as determined by the Corporate Vice President and General Counsel of the Company,
each window period shall begin the second day following the release of the Company’s
quarterly or annual statement of sales and earnings and end as of the 30th day
following such announcement.

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ARTICLE 10

Limitations On Contributions And Benefits

     Section 10.01 Code Section 415(c) Limitation. See Appendix A.

     Section 10.02 Compensation Limited to Comply With Code Section 401(a)(17). The annual
Compensation of each Participant taken into account in determining allocations for any Plan Year
shall not exceed $200,000, as adjusted for cost-of-living increases in accordance with Code Section
401(a)(17)(B). Annual Compensation means Compensation during the Plan Year or such other
consecutive 12-month period over which Compensation is otherwise determined under the Plan (the
determination period). The cost-of-living adjustment in effect for a calendar year applies to
annual Compensation for the determination period that begins with or within such calendar year. If
a determination period consists of fewer than 12 months, the annual compensation limit will be
multiplied by a fraction, the numerator of which is the number of months in the determination
period, and the denominator of which is 12.

     Section 10.03 Code Section 402(g) Limitation. In no event shall Deposits on behalf of
any Participant exceed the Code Section 402(g) amount (as adjusted by the Secretary of the Treasury
or his or her delegate) in any calendar year, except to the extent permitted under Section 4.02 and
Code Section 414(v), if applicable. Upon notification by a Participant who participates in other
plans allowing deferrals that there has been an excess deferral, the Plan may distribute the excess
amount and income thereon through the end of the Plan Year, determined under Section 5.03 hereof,
provided, however, that the Participant must notify the Committee of the amount of the excess
deferral by March 1 following the year such excess deferral was made, and the distribution will be
made by the following April 14. In the event that the excess deferral arises solely by taking into
account qualified plans of the Company, the Participant shall be deemed to have notified the
Committee. Any Company contributions on Matched Deposits made pursuant to Section 4.03 of the Plan
with respect to an excess deferral which is distributed shall be forfeited.

     Section 10.04 401(k) and 401(m) Tests. See Appendix C.

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ARTICLE 11

Administration

     Section 11.01 In General. The general administration of the Plan is the
responsibility of the Committee. The Committee is the “plan administrator” under ERISA. In
addition, the Committee is the “named fiduciary” of the Plan under ERISA. Committee members and
all other Plan fiduciaries may serve in more than one fiduciary capacity with respect to the Plan.

     Section 11.02 The Committee. The Committee consists of at least three members
appointed by the Board who serve at the pleasure of the Board, without compensation, unless
otherwise determined by the Board.

     Section 11.03 Resignation of Committee Members. A member of the Committee may resign
at any time by delivering a written resignation to the Company and to the Secretary of the
Committee. The member’s resignation will be effective as of the date of delivery or, if later, the
date specified in the notice of resignation.

     Section 11.04 Conduct of Business. The Committee shall elect a Chairman from among
its members and a Secretary who may or may not be a member. The Committee will conduct its
business in accordance with this Article and hold meetings in any convenient location.

     Section 11.05 Quorum. A majority of all of the members of the Committee constitutes a
quorum and has power to act for the entire Committee.

     Section 11.06 Voting. All actions taken shall be by majority vote of the members
attending a meeting, whether physically present or through remote communications. In addition,
actions may be taken by written consent of a majority of the Committee members without a meeting.
The agreement or disagreement of any member may be by means of any form of written or oral
communications.

     Section 11.07 Records and Reports of the Committee. The Committee shall keep such
written records as it shall deem necessary or proper, which records shall be open to inspection by
the Board.

     Section 11.08 Powers of the Committee. The Committee shall have all powers necessary
or incident to its office as plan administrator. Such powers include, but are not limited to, full
discretionary authority to:

     (a) Prescribe rules for the operation of the Plan.

     (b) Determine eligibility.

     (c) Comply with the requirements of reporting and disclosure under ERISA and any other
applicable law and to prepare and distribute other communications to Employees as part of
Plan operations.

     (d) Prescribe forms to facilitate the operation of the Plan.

42

 

     (e) Secure government approvals for the Plan.

     (f) Construe and interpret the terms of the Plan, including the power to remedy
possible ambiguities, inconsistencies or omissions.

     (g) Determine the amount of benefits and authorize payments from the Trust Fund.

     (h) Maintain records.

     (i) Litigate, settle claims, and respond to and comply with court proceedings and
orders on the Plan’s behalf.

     (j) Enter into contracts on the Plan’s behalf.

     (k) Take all measures it deems reasonably necessary or desirable to properly administer
the Plan, including institution of black-out periods during which some or all ordinary Plan
administration functions will be suspended.

     (l) Exercise all other powers given to the Committee under other Sections of the Plan.

     Section 11.09 Allocation or Delegation of Duties and Responsibilities. The Committee
and the Board may:

     (a) Employ agents to carry out nonfiduciary responsibilities.

     (b) Employ agents to carry out fiduciary responsibilities (other than trustee
responsibilities as defined in ERISA Section 405(c)(3)) under the rules of the next Section.

     (c) Consult with counsel, who may be of counsel to the Company.

     (d) Provide for the allocation of fiduciary responsibilities (other than trustee
responsibilities as defined in ERISA Section 405(c)(3)) among their members under the rules
of the next Section.

     (e) In particular, designate one or more Employees to have responsibility for designing
and implementing administrative procedures for the Plan.

     Section 11.10 Procedure for the Allocation or Delegation of Fiduciary Duties.

     (a) Any allocation or delegation of fiduciary responsibilities must be approved by
majority vote, in a resolution approved by the majority;

     (b) The vote cast by each member for or against the adoption of such resolution must be
recorded and made a part of the written record of the proceedings;

43

 

     (c) Any delegation or allocation of fiduciary responsibilities may be changed or ended
only under the rules of (a) and (b) of this Section.

     Section 11.11 Expenses of the Plan. All reasonable and proper expenses of
administration of the Trust Fund including counsel fees will be paid out of the Trust Fund unless
paid by the Affiliated Companies.

     (a) No expenses may be withdrawn without the consent of the Committee. The Committee
may authorize the Trustee to withdraw particular expenses or kinds of expenses on a standing
basis.

     (b) The Affiliated Companies may initially pay any expense that normally would be a
charge on the Trust Fund and later obtain reimbursement from the Trust Fund.

     (1) This even applies in cases where at the time of the Affiliated Companies’
initial payment of the expense, it is not clear that the Affiliated Companies may
lawfully seek reimbursement from the Trust Fund but the Affiliated Companies’ legal
right to reimbursement is later clarified.

     (2) It is specifically anticipated that there may be situations, such as
litigation, where the Affiliated Companies might choose to bear costs initially, but
later obtain reimbursement many years after the costs were incurred. Such delayed
reimbursements shall be permissible.

     (c) Expenses will be withdrawn from the Trust Fund in accordance with rules and
procedures established by the Committee, which rules and procedures may be changed at any
time without advance notice to Participants. These rules and procedures may include:

     (1) Charging expenses against the investment return of one or more Plan
investment funds, even if the fund has a negative return;

     (2) Charging fees against any other accounts, including contribution,
distribution or forfeiture accounts;

     (3) The imposition of percentage and/or flat dollar fees for any feature or
aspect of the Plan, including for example, initiation of loans or participation in
particular investment options; or

     (4) Any other method or means for recovering expenses.

     Section 11.12 Indemnification. The Company agrees to indemnify and reimburse, to the
fullest extent permitted by law, members of the Board, the Committee and Employees acting for the
Affiliated Companies, as well as former members and former Employees, for any and all expenses,
liabilities, or losses arising out of any act or omission relating to the rendition of services for
or the management and administration of the Plan, except in instances of gross misconduct.

44

 

     Section 11.13 Extensions of Time Periods. For good cause shown, the Committee may
extend any period set forth in the Plan for taking any action required of any Participant or
Beneficiary to the extent permitted by law.

     Section 11.14 Corrections Involving Participant Direction. If the Committee
determines in its sole discretion that the Plan failed to properly follow a Participant’s election
or direction, and that a correction is necessary or desirable under the law, that correction will
be made as soon as reasonably possible after the error is discovered.

     (a) Contribution Election. If a Participant’s contribution election is not
followed correctly, corrections may be made by adjusting the amount of contributions
withheld from the Participant’s future paychecks. Adjusted contributions under this Section
may be made in fractional percentages of a Participant’s Compensation.

     (b) Investment Direction. If a Participant’s investment or transfer direction
is not followed correctly, the Participant’s account will be adjusted to the position it
would have been in had the direction been correctly followed. The adjustment shall be made
in accordance with the rules and actuarial and investment assumptions determined in the sole
discretion of the Committee.

     Section 11.15 Claims and Appeals; Time Limitations; Exhaustion of Remedies. All
claims and appeals related to benefits under the Plan shall be governed by the terms of Article 6
in the Standard Definitions and Procedures for Certain Huntington Ingalls Industries, Inc.
Retirement Plans.

     Section 11.16 Qualified Domestic Relations Orders. The Committee shall establish
rules and procedures for handling domestic relations orders, which rules and procedures may be
changed at any time without advance notice to Participants.

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ARTICLE 12

Management of Funds

     Section 12.01 The Trust. All assets of the Plan shall be held as a special trust in
accordance with the terms of the Trust Agreement for the benefit of Participants and their
Beneficiaries; in no event shall it be possible at any time prior to the satisfaction of all
liabilities (as defined in Code Section 401(a)(2)) with respect to such individuals for any part of
the assets of the Plan to be used for or diverted to purposes other than for the exclusive benefit
of Participants or their Beneficiaries, except to the extent permitted by law. No person shall
have any interest in, or right to, any of such assets or earnings thereon except as expressly
provided in the Plan and the Trust Agreement. The Trust Agreement shall be deemed to form a part
of this Plan and all rights and benefits that may accrue to any person under this Plan shall be
subject to all the terms and provisions of the Trust Agreement.

     Section 12.02 The Trustee. The Trustee shall be appointed by the Board in accordance
with the respective provisions of the Trust Agreement with such powers as may be provided in such
agreement. The Board may remove the Trustee at any time upon reasonable notice; upon removal or
resignation of such Trustee, the Board shall designate a successor in the place and stead of such
removed or resigning Trustee.

     Section 12.03 Trust Agreement. To provide for the administration of the Trust Fund,
the Company will enter into a Trust Agreement with a Trustee appointed by the Board. The Trust
Agreement shall be in such form and contain such provisions as the Company may deem appropriate,
including, but not limited to, provisions with respect to the powers and authority of the Trustee,
the authority of the Company to amend the Trust Agreement and to terminate the Trust Fund, the
authority of the Company and the Committee to settle the accounts of the Trustee on behalf of all
persons having an interest in the Trust Fund, a provision that it shall be impossible for any part
of the corpus or income of the Trust Fund to be (within the taxable year or thereafter) used for or
diverted to purposes other than for the exclusive benefit of Participants or their Beneficiaries,
except as may be permitted by law.

     Section 12.04 The Investment Committee. The Investment Committee shall consist of not
less than three persons appointed from time to time by, and to serve at the pleasure of, the Board.
The members of the Investment Committee shall elect one of their number as Chairman and shall
appoint a Secretary and such other officers as the Investment Committee may deem necessary. The
Investment Committee may employ such counsel, including investment counsel, as it may require in
carrying out the provisions hereof.

     Section 12.05 Alternate Members. The Board may from time to time appoint one or more
persons as alternate members of the Investment Committee to serve in the absence of members of the
Investment Committee, in the manner hereinafter stated, with the same effect as if they were
members. The Chairman of the Investment Committee, in his or her discretion, shall designate which
of the alternate members shall attend any particular meeting of the Investment Committee for the
purpose of obtaining a quorum or full attendance as the Chairman may elect, upon notice given by
the Chairman or at his or her direction. Each alternate member shall have all the rights and
powers and obligations of a member in respect to the business of meetings which he or she so
attends.

46

 

     Section 12.06 Actions by the Investment Committee. The majority in number of the
members of the Investment Committee at the time in office, represented at a meeting by members or
alternate members or both, shall constitute a quorum for the transaction of business. Any
determination or action of the Investment Committee may be made or taken by a majority of a quorum
present at any meeting thereof, or without a meeting, by resolution or written memorandum signed by
a majority of the members then in office.

     Section 12.07 Investment Responsibilities.

     (a) The Trustee shall have exclusive authority and discretion to manage, control,
purchase, sell, and invest the assets of the Plan, unless one or more investment managers
are appointed, as provided below in this Section.

     (b) The Board may, in its discretion, appoint one or more investment managers who shall
have, until terminated by the Board, the power to manage, acquire, and dispose of all or any
part of the assets of the Plan allocated to an investment manager by the Board. Each
investment manager other than the Investment Committee must represent in writing that it
qualifies under the provisions of ERISA Section 3(38)(B), and acknowledge in writing that it
is a fiduciary with respect to the Plan. In that event, the Trustee shall have no
obligation to invest or otherwise manage any asset of the Plan that is subject to the
management of an investment manager.

     (c) In the event that investment powers are divided among two or more Trustees or
investment managers, the Board shall formulate investment policies for such Trustees and
investment managers to diversify the investments of the Plan so as to minimize the risk of
large losses, unless under the circumstances it is clearly prudent not to do so.

     (d) The Investment Committee shall periodically review and evaluate the investment
performance of each Trustee and investment manager and advise the Board of such review and
evaluation. The Board may delegate to the Investment Committee the responsibility to
appoint and terminate Trustees and investment managers, to allocate Plan assets, to
formulate investment policies, and to instruct the Trustee or investment manager with
respect thereto. In case of such a delegation, the Investment Committee may also appoint
itself to serve as an investment manager.

     (e) The Investment Committee will establish a funding policy and method to carry out
the Plan’s objectives and will communicate it in writing to those responsible for the
investment of Plan assets.

     Section 12.08 Liability and Indemnity.

     (a) No person, Committee member, Investment Committee member, Trustee, or investment
manager who has a fiduciary responsibility, or to whom such responsibility is allocated, as
provided in this Article, by appointment or otherwise, shall be liable for any act or
omission or investment policy of any other such fiduciary except as provided in ERISA
Section 405.

47

 

     (b) To the extent permitted by law, the Company shall indemnify and hold harmless its
directors, officers, and Employees with respect to their responsibilities under this
Article, and may purchase insurance to cover the liabilities of such persons for breach of
fiduciary duty and any other error or omission.

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ARTICLE 13

Amendment and Termination

     Section 13.01 Right to Amend the Plan. The Company’s right to amend the Plan is
provided in Article 5 of the Standard Definitions and Procedures for Certain Huntington Ingalls
Industries, Inc. Retirement Plans, which Article is incorporated herein by reference.

     Section 13.02 Termination or Reduction. The Plan is entirely voluntary on the part of
the Company.

     (a) The Company reserves the right at any time to terminate the Plan or to suspend,
reduce or partially or completely discontinue contributions to the Plan through written
resolution of the Board.

     (b) In the event of a termination of or a complete discontinuance of contributions to
the Plan (as defined under Code Section 411(d)(3)), the interests of all Participants in
their accounts will be fully vested and nonforfeitable.

     (c) Distributions may be made only in the event of a complete termination of the Plan
and only to the extent permitted by the tax rules governing the Plan.

     (d) This Section does not apply to partial terminations.

     Section 13.03 Partial Terminations. The Company reserves the right at any time to
partially terminate the Plan through written resolution of the Board.

     (a) In the event of a partial termination of the Plan (as described in Code Section
411(d)(3) and Treasury Regulation Section 1.411(d)-2(b)), the rights of Participants
affected by the partial termination shall automatically become fully vested but only to the
extent required by statute and regulation.

     (b) In the event of a horizontal partial termination described in Treasury Regulation
Section 1.411(d)-2(b)(2), only that portion of a Participant’s benefit (if any) which is
affected by the horizontal partial termination will become vested.

     (c) No amounts will be distributed on account of a partial termination.

     (d) Nothing in this Plan is intended to give any rights greater than those required by
statute or regulation with respect to partial terminations.

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ARTICLE 14

Mergers

     Section 14.01 Merger of Plans. If the Plan shall merge or consolidate with, or
transfer its assets or liabilities to, any other plan, then, to the extent required by ERISA, each
Participant shall be entitled to receive a benefit immediately after such merger, consolidation or
transfer (assuming that the Plan had then terminated) which is equal to or greater than the benefit
which he or she would have been entitled to receive immediately before such merger, consolidation
or transfer (assuming that the Plan had then terminated).

     (a) This Section is intended only to implement Code Sections 401(a)(12) and 414(1) and
ERISA Section 208 and shall not be construed to require anything more than those statutes
require.

     (b) In particular, a merger or transfer under this Section shall not be deemed to
require any act or change in status that would be required by an actual termination, such as
liquidation of the Trust Fund.

     (c) This Section is also not intended to guarantee accounts at the level they were at
immediately prior to a merger or transfer. Accounts may decrease in value following a
merger or transfer just as in the ordinary course and the risk of any such decreases remains
on the Participants.

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ARTICLE 15

Miscellaneous

     Section 15.01 Headings. The headings and subheadings in this Plan have been inserted
for convenience of reference only. In the event of a conflict between a heading and the content of
a Section, the content of the Section shall control.

     Section 15.02 Construction. Except to the extent preempted by federal law pursuant to
ERISA, this Plan shall be construed in accordance with the laws of the State of California.

     Section 15.03 No Employment Rights. Nothing in this Plan shall be deemed to confer
upon any Employee any right to be retained in the service of the Affiliated Companies or
Participating Companies or to interfere with their right to otherwise deal with their Employees
without regard to the existence of the Plan.

     Section 15.04 Limitation to Trust Fund. The Participating Companies will have no
liability for benefits under the Plan beyond the contributions required by the terms of the Plan.
Nothing in the Plan will be deemed to give any Participant or Beneficiary any right to assets of
the Participating Companies or Affiliated Companies and all Plan benefits will be limited to the
amounts in the Trust Fund. The Participating Companies, the Committee and the Investment Committee
do not guarantee the Trust Fund in any manner against loss or depreciation and do not guarantee the
payment of any benefit that may become due under the Plan.

     Section 15.05 Severability. If any provision of the Plan shall be held invalid or
unenforceable, such invalidity or unenforceability shall not affect any other provision of the
Plan, and the Plan shall be construed and enforced as if such provision had not been included.

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ARTICLE 16

Other Rules on Distributions

     Section 16.01 Lost Payee. The account of a Participant or Beneficiary will be
forfeited if the Committee is unable to locate the person to whom payment is due. The forfeiture
is used to reduce the Affiliated Companies’ future contributions. The Affiliated Companies will
replenish any forfeited account through a special contribution if the payee is ever found, unless
the account previously escheated to a state government.

     Section 16.02 Disputes About Payee. In the event that the Committee determines that
there is some uncertainty as to whom any Plan payment is due, the Committee is authorized to delay
payment, seek agreements from the interested parties, make payment to an appropriate judicial forum
and allow the court to determine the identity of the proper payee, and/or take any other necessary
or appropriate steps to protect the Plan and the interested parties.

     Section 16.03 Administrative Delays. If the amount of any payment cannot be
determined by the date it is supposed to be paid, or if it is not possible to make payments on time
because the Committee cannot find the payee, or adequate information is not available to make the
distribution, or the payee has failed to make the applicable elections with the Committee, or
because of other legal, financial or administrative obstacles, payments may be made no later than
60 days after the date payment becomes possible.

     Section 16.04 Facility of Payment. If the Committee deems any person entitled to
receive any payment under the Plan incapable of receiving it by reason of age, illness or
infirmity, mental incompetency or incapacity of any kind, the Committee may, in its discretion,
direct that payment be made in any one or more of the following manners:

     (a) applying the amount directly for the comfort, support and maintenance of the payee;

     (b) reimbursing any person for any such support supplied by any other person to the
payee;

     (c) paying the amount to a legal representative or guardian or any other person
selected by the Committee on behalf of the payee; or

     (d) depositing the amount in a bank account to the credit of the payee.

     Section 16.05 Incorrect Payment of Benefits. If the Committee determines in its sole
discretion that the Plan made an incorrect payment of benefits, and that a correction is necessary
or desirable under the law, then:

     (a) If the Plan makes an overpayment of the amount of any benefits due any payee under
the Plan, the Plan may recover the amounts either by requiring the payee to return the
excess to the Plan, by reducing any future Plan payments to the payee, or by any other
method deemed reasonable to the Committee.

52

 

     (b) If the Plan makes a late payment or an underpayment of the amount of any benefits
due any payee under the Plan, correct payment will be made as soon as reasonably possible
after the late payment or underpayment is discovered.

     Section 16.06 Disposition of Employees. If a Participant terminates employment with
the Affiliated Companies as a result of a sale, outsourcing of the Participant’s job function, or
similar transaction between the Affiliated Companies and an unrelated entity, he or she will be
considered to have a termination of employment only to the extent, consistent with IRS
interpretations as determined in the sole discretion of the Committee, that the Plan would remain
qualified under Code Sections 401(a), 401(k) and 4975(e)(7) if it treated the Participant as having
a termination of employment.

     Section 16.07 Top Heavy Rules. The Plan will be subject to the top heavy provisions
of Appendix B if the Plan ever becomes top-heavy.

     Section 16.08 Claims and Issues. From time to time, claims or issues may arise that
involve the Plan, including, among others, claims and issues raised by Participants, those
addressed under any of the Internal Revenue Service’s Employee Plans Compliance Resolution System
programs or similar programs, or those permitted under the terms of a qualified domestic relations
order that complies with Code Section 414(p). The resolution, settlement or adjudication of these
claims or issues may result in a compliance procedure that is not expressly permitted under some
other section of the Plan document. Such a procedure, agreement or order will be respected to the
extent that, as determined in the sole discretion of the Committee, it does not result in
disqualification of the Plan or violate (or cause the Plan to violate) any applicable statute,
government regulation or ruling.

     IN WITNESS WHEREOF, Huntington Ingalls Industries, Inc. has caused this amended and restated
Plan to be executed by its duly authorized representative on this 30th day of March, 2011.

	 	 	 	 	 
	 	HUNTINGTON INGALLS INDUSTRIES, INC.

 	 
	 	By:  	/s/ William Ermatinger
 	 
	 	 	William Ermatinger 	 
	 	 	Vice President and Chief Human Resources Officer 	 
	 

53

 

APPENDIX A

Section 415 Limits

     Section A.01 In General. Annual additions under this Plan will be subject to the
limitations of Code Section 415 and its regulations, which are incorporated here by reference.
Except to the extent permitted under Section 4.02 and Code Section 414(v), if applicable, the
annual addition that may be contributed or allocated to a Participant’s account under the Plan for
any limitation year shall not exceed the lesser of:

     (a) $49,000, as adjusted for increases in the cost-of-living under Code Section 415(d),
or

     (b) 100 percent of the Participant’s Compensation, within the meaning of Code Section
415(c)(3), for the limitation year.

The Compensation limit referred to in (b) shall not apply to any contribution for medical benefits
after separation from service (within the meaning of Code Section 401(h) or Code Section
419A(f)(2)) that is otherwise treated as an annual addition.

     Section A.02 Reductions Among Defined Contribution Plans. If a Participant
participates in another defined contribution plan and the total Annual Additions on his or her
behalf under all defined contribution plans sponsored by the Company exceed the limitations under
Code Section 415, the Participating Company may elect, consistent with Treasury Regulation Section
1.415(g)-1(b)(3)(iii), to treat the other defined contribution plan as causing a violation under
Code Section 415, subject to the correction methods permitted thereunder.

     Section A.03 Compensation. For purposes of this Appendix, the term “Compensation”
means all amounts paid to the Employee by the Affiliated Companies which are treated as
“Compensation” under Code Section 415(c)(3). “Compensation” shall include elective amounts that
are not includible in the gross income of the Employee by reason of Code Section 132(f)(4).

     Section A.04 Annual Additions. Annual additions are, for any Limitation Year,

     (a) the sum, credited to a Participant for such Limitation Year under plans of the
Special Aggregation Group, of:

     (1) employer contributions allocated to an account,

     (2) employee contributions,

     (3) forfeitures allocated to an account,

     (4) contributions to individual medical accounts described in Code Section
415(l)(1),

     (5) contributions to individual medical accounts described in Code Section
419A(d)(2).

54

 

     (b) Amounts under (a)(1)-(4) shall include any such amounts whether under a qualified
defined contribution or defined benefit plan.

     (c) For purposes of this Section, “employee contributions” do not include:

     (1) Rollover contributions;

     (2) Loan repayments;

     (3) Buyback repayments under Code Section 411(a)(3)(D) or 411(a)(7)(C); or

     (4) Direct transfers of employee contributions from one qualified plan to
another.

     Section A.05 Limitation Year. The limitation year specified in a plan, but if none is
specified, the calendar year.

     Section A.06 Special Aggregation Group. The Affiliated Companies plus any entity
which is or which is part of an entity which is:

     (a) a member of a controlled group of corporations (within the meaning of Code Section
414(b)) with the Company,

     (b) under common control (within the meaning of Code Section 414(c)) with the Company,

     (c) aggregated with the Company under the rules of Code Sections 414(m) or (o).

For purposes of making the determination under this Section, the phrase “more than 50 percent”
shall be substituted for the phrase “at least 80 percent” each time it appears in Code Section
1563(a)(1).

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APPENDIX B

Top Heavy Provisions

     Section B.01 Generally. This Appendix applies only if the Plan becomes Top-Heavy.
The rules in this Appendix are intended to conform to Code Section 416.

     Section B.02 Eligibility for Required Contributions. For any Plan Year in which the
Plan is Top-Heavy, the required contributions described in Section B.03 shall be provided under
this Plan to any Employee who meets the requirements of (a) and (b):

     (a) The Employee is not a Key Employee.

     (b) The Employee has previously become a Participant in the Plan and has not separated
from service by the end of the Plan Year, with the determination of whether an Employee is a
Participant for purposes of this Section to be made without regard to whether the Employee:

     (1) failed to complete 1000 Hours of Service during the Plan Year;

     (2) would otherwise be excluded from participation (or receive no contributions
or less than a full contribution) because of a failure to make mandatory Employee
contributions (or elective deferrals); or

     (3) would otherwise be excluded from participation (or receive no contributions
or less than a full contribution) because his or her earnings are less than a stated
amount.

     Section B.03 Required Contribution. The required contribution under this Section
shall be:

     (a) An employer contribution equal to the employer contribution to be provided under
this Plan without regard to the provisions of this Appendix, increased by the Top-Heavy
Minimum under Section B.04 or Section B.05, whichever applies.

     (b) For purposes of this Appendix, references to “employer contributions” shall include
amounts attributable to forfeitures but shall not include amounts attributable to a salary
reduction or similar arrangement.

     Section B.04 Top-Heavy Minimum. Unless Section B.05 applies, the Top-Heavy Minimum
shall be determined under (a) and reduced by (b):

     (a) The amount of the minimum employer contribution shall be the lesser of the
following percentages of Compensation:

     (1) Three percent, or

     (2) The highest percentage at which employer contributions are made under the
Plan for the Plan Year on behalf of a Key Employee.

56

 

     (A) For purposes of this paragraph (2), all defined contribution plans
required to be included in an Aggregation Group shall be treated as one
plan.

     (B) This paragraph (2) shall not apply if the Plan is required to be
included in an Aggregation Group and the Plan enables a defined benefit plan
required to be included in the Aggregation Group to meet the requirements of
Code Section 401(a)(4) or 410.

     (C) For purposes of this paragraph (2), the calculation of the
percentage at which contributions are made for a Key Employee shall be based
only on his or her Compensation.

     (D) For purposes of this paragraph (2), pre-tax salary deferral
contributions made by a Key Employee shall be counted as employer
contributions.

     (b) The Top-Heavy Minimum of this Section shall be reduced by the amount of
Nonintegrated employer contributions and employer matching contributions (as defined in Code
Section 401(m)(4)) otherwise made on the Employee’s behalf under this Plan and all other
defined contribution plans of the Affiliated Companies.

     Section B.05 Participants Under Defined Benefit Plans. For any Plan Year in which the
Plan is Top-Heavy, if any Employee for whom a contribution is required under the provisions of
Section B.02 with respect to such Plan Year would also be eligible for a top-heavy minimum benefit
for a corresponding plan year (as defined in (d)) under a defined benefit plan of the Affiliated
Companies (prior to the application of the provisions of this Section), then:

     (a) This Section rather than Section B.04 shall apply as to such Employee for such Plan
Year, and

     (b) The Top-Heavy Minimum shall be a Nonintegrated employer contribution for such
Employee for such Plan Year, equal to 5% of such Employee’s Compensation (without regard to
profits and without regard to the amount of contributions, if any, made to defined
contribution plans on behalf of Key Employees).

     (c) The Top-Heavy Minimum in (b) shall be reduced by the amount of Nonintegrated
employer contributions and employer matching contributions (as defined in Code Section
401(m)(4)) otherwise made on the Employee’s behalf under this Plan and all other defined
contribution plans of the Affiliated Companies.

     (d) The corresponding plan year shall be determined as follows:

     (1) Ascertain the Determination Date for this Plan utilized to determine that
this Plan is Top-Heavy for the relevant year.

57

 

     (2) Next ascertain the Determination Date for the defined benefit plan which
was aggregated with the Determination Date in (d)(1) under the provisions of Section
B.12.

     (3) The corresponding plan year for the defined benefit plan shall be the plan
year for which the defined contribution plan was determined to be Top-Heavy on the
basis of the Determination Date ascertained in (d)(2).

     Section B.06 Leased Employees. For purposes of this Appendix, Leased Employees are
not considered “employees” unless they are eligible to participate under the terms of the Plan.

     Section B.07 Determination of Top Heaviness. The determination of whether a plan is
Top-Heavy is made as follows:

     (a) If the Plan is not required to be included in an Aggregation Group with other
plans, then it is Top-Heavy only if:

     (1) when considered by itself it is a Top-Heavy Plan and

     (2) it is not included in a permissive Aggregation Group that is not a
Top-Heavy Group.

     (b) If the Plan is required to be included in an Aggregation Group with other plans, it
is Top-Heavy only if the Aggregation Group, including any permissively aggregated plans, is
Top-Heavy.

     (c) If a plan is not a Top-Heavy Plan and is not required to be included in an
Aggregation Group, then it is not Top-Heavy even if it is permissively aggregated in an
Aggregation Group which is a Top-Heavy Group.

     Section B.08 Calculation of Top-Heavy Ratios. A plan is Top-Heavy and an Aggregation
Group is a Top-Heavy Group with respect to any plan year if the sum as of the Determination Dates
of the Cumulative Accrued Benefits and the Cumulative Accounts of Special Members who are Key
Employees for the plan year exceeds 60% of a similar sum determined for all Special Members,
excluding Cumulative Accrued Benefits and Cumulative Accounts of former Key Employees from the
calculations entirely.

     Section B.09 Cumulative Accounts and Cumulative Accrued Benefits. The Cumulative
Accounts and Cumulative Accrued Benefits for any Employee are determined as follows:

     (a) “Cumulative Account” means the sum of the amounts of a Special Member’s accounts
under a defined contribution plan (for an unaggregated plan) or under all defined
contribution plans included in an Aggregation Group (for aggregated plans) determined as of
the most recent plan valuation date within a 12-month period ending on the Determination
Date, increased by:

58

 

     (1) For plans not subject to the minimum funding requirements of Code Section
412, except for the first plan year, amounts actually contributed after the
valuation date and on or before the Determination Date.

     (2) For plans not subject to the minimum funding requirements of Code Section
412, for the first plan year, the contributions referred to in (1) as well as
amounts contributed after the Determination Date but allocated as of a date within
the first plan year.

     (3) For plans subject to the minimum funding requirements of Code Section 412,
amounts that would be allocated as of a date after the valuation date but no later
than the Determination Date (even though not then required to be contributed) and
amounts contributed or due before the expiration of the Code Section 412(c)(10)
extended payment period.

     (b) “Cumulative Accrued Benefit” means the sum of the present value of a Special
Member’s accrued benefits under a defined benefit plan (for an unaggregated plan) or under
all defined benefit plans included in an Aggregation Group (for aggregated plans),
determined under the actuarial assumptions set forth in such plan or plans, as of the most
recent plan valuation date within a 12-month period ending on the Determination Date as if
the Participant voluntarily terminated service—

     (1) as of the Determination Date, for the first plan year of the plan, or

     (2) for any other plan year, as of the most recent valuation date within the
12-month period ending on the Determination Date, or

     (3) if earlier, the Participant’s actual termination date.

The valuation date used must be the same valuation date used for computing costs for
minimum funding purposes, regardless of whether a valuation is performed for the
year.

     (c) Accounts and benefits are calculated to include all amounts attributable to both
employer and Employee contributions and forfeitures but excluding amounts attributable to
voluntary deductible Employee contributions.

     (d) Accounts and benefits are increased by the aggregate distributions (except for
amounts already included at the valuation date under (a) and (b)) during the Test Period
made with respect to a Special Member under the plan or plans as the case may be or under a
terminated plan which, if it had not been terminated, would have been required to be
included in the Aggregation Group. For distributions made for a reason other than
separation from service, death, or disability, this provision is applied by substituting
‘5-year period ending on the Determination Date’ for ‘Test Period.

59

 

     (e) Rollovers and direct plan-to-plan transfers are treated as follows:

     (1) If the transfer is initiated by the Special Member and made from a plan
maintained by an employer not a member of the Affiliated Companies to a plan
maintained by the Affiliated Companies, or vice-versa, the transferring plan
continues to count the amount transferred under the rules for counting
distributions. The receiving plan does not count the amount if accepted after
December 31, 1983, but does count it if accepted prior to January 1, 1984.

     (2) If the transfer is not initiated by the Special Member or is made between
plans maintained by the Affiliated Companies, the transferring plan no longer counts
the amount transferred and the receiving plan does count the amount transferred.

     (f) For plan years beginning after December 31, 1984, the accrued benefits and accounts
attributable to any Employee who has not performed services for the Affiliated Companies at
any time during the Test Period are not taken into account.

     (g) Benefits paid on account of death are counted as distributions only to the extent
they do not exceed the present value of accrued benefits existing immediately prior to
death. For life insurance under defined contribution plans, only the cash value of life
insurance policies distributed on account of death will be counted as a distribution.

     (h) Solely for the purpose of determining if the Plan, or any other plan included in a
required Aggregation Group of which this Plan is a part, is Top-Heavy, the accrued benefit
of a Special Member other than a Key Employee shall be determined under:

     (1) The method, if any, that uniformly applies for accrual purposes under all
plans maintained by the Affiliated Companies, or

     (2) If there is no such method, as is described in (1), as if such benefit
accrued not more rapidly than the slowest accrual rate permitted under the
fractional accrual rule of Code Section 411(b)(1)(C).

     (i) Calculations are made separately for each plan as of each plan’s Determination Date
and then all plans are combined by utilizing the Determination Dates for such plans that
fall within the same calendar year.

     Section B.10 Other Definitions. For purposes of this Appendix, the following
definitions in Sections B.11-B.20 shall apply, to be interpreted in accordance with the provisions
of Code Section 416 and the regulations thereunder.

     Section B.11 Affiliated Companies. The Company and any entity which is or which is a
part of an entity which is:

     (a) a member of a controlled group of corporations (within the meaning of Code Section
414(b)) with the Company,

60

 

     (b) under common control (within the meaning of Code Section 414(c)) with the Company,

     (c) a member of an affiliated service group (within the meaning of Code Section 414(m))
with the Company, or

     (d) otherwise required to be aggregated with the Company pursuant to regulations under
Code Section 414(o).

     Section B.12 Aggregation Group. For any Determination Date, the Aggregation Group
includes a plan or group of plans qualified under Code Sections 401(a), 403(a) or 408(k) maintained
by the Affiliated Companies (including plans which have terminated within the Test Period) which:

     (a) during the Test Period had a Key Employee participant, or

     (b) during the Test Period enabled any plan in which a Key Employee was a participant
to meet the requirements of Code Section 401(a)(4) or 410, or

     (c) were selected by the Company for permissive aggregation (as long as inclusion of
the permissive plans would not prevent the entire group of plans from continuing to meet the
requirements of Code Section 401(a)(4) or 410).

     Section B.13 Compensation. For purposes of this Appendix, the term “Compensation”
means all amounts paid to the Employee by the Affiliated Companies which are treated as
“Compensation” under Code Section 415(c)(3).

     Section B.14 Determination Date. With respect to a plan for any plan year,

     (a) the last day of the preceding plan year, or

     (b) in the case of the first plan year of the plan, the last day of the plan year.

     Section B.15 Key Employee. Any Special Member who is or was, at any time during the
Test Period, described in (a), (b) or (c).

     (a) Subject to (1) and (2), an officer of the Employer having annual Compensation
greater than $160,000, as adjusted under Code Section 416(i)(1).

     (1) The maximum number of officers is the lesser of:

     (A) Fifty, or

     (B) The greater of (i) three or (ii) 10 percent (rounded to the next
highest integer) of the greatest number of Employees who performed services
for the Affiliated Companies in the Test Period.

     (2) The following are not “officers” for purposes of this Section:

61

 

     (A) Employees described in Code Section 414(q)(5).

     (B) Employees and officers of entities referred to in Code Section
414(d).

     (b) An Employee who owns (or is treated as owning under Code Section 318) more than
five percent of the outstanding stock of any member of the Affiliated Companies or stock
possessing more than five percent of the total combined voting power of that stock.

     (c) An Employee who would be described in (b) above if “one percent” were substituted
for “five percent” and who has annual pay of more than $150,000 for the Plan Year of
ownership.

     (d) For purposes of determining ownership under this Section, Code Section 318(a)(2)(C)
are applied by substituting “five percent” for “50 percent,” and Code Sections 414(b), (c),
(m), and (o) do not apply.

     Section B.16 Limitation Year. The limitation year specified in a plan, but if none is
specified, the calendar year.

     Section B.17 Nonintegrated. A “Nonintegrated” benefit means a benefit determined
without taking into account contributions or benefits under Code Chapter 2 (relating to tax on
self-employment income), Code Chapter 21 (relating to the Federal Insurance Contributions Act),
Title II of the Social Security Act, or any other federal or state law.

     Section B.18 Special Member. For purposes of this Appendix, any person employed or
formerly employed by the Affiliated Companies and shall also include any Beneficiary of any such
person, provided that the requirements of Sections B.02-B.06 shall not apply to any person included
in a unit of Employees covered by an agreement which the Secretary of Labor finds (in accordance
with the rules of Code Section 7701(b)) to be a collective bargaining agreement between employee
representatives and one or more members of the Affiliated Companies if there is evidence that
retirement benefits were the subject of good faith bargaining between such employee representatives
and such member or members of the Affiliated Companies.

     Section B.19 Test Period. The plan year containing the Determination Date concerned.

     Section B.20 Year of Service. Years of Service shall be determined under the same
rules as for vesting under the Plan, to the extent not inconsistent with the provisions of this
Appendix.

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APPENDIX C

The 401(k) and 401(m) Tests

     Section C.01 In General. This Appendix sets forth the limitations imposed by the
federal tax laws on contributions which may be made to the Plan on behalf of Highly Compensated
Participants. This Appendix should be interpreted as intended solely to implement the requirements
of Code Section 401(k) and (m).

     Section C.02 The 401(k) Test. Sections C.03-C.07 are intended to implement the
nondiscrimination requirements set forth in Code Section 401(k) and the regulations under that
section, which are incorporated here by reference.

     Section C.03 K Percentage. This term means the average of the K Ratios, calculated
separately for each Participant in a group. The K Ratio is the amount of all tax-deferred
contributions made to a Participant’s account for a Plan Year, plus the “qualified matching
contributions” and the “qualified nonelective contributions” treated by the Committee as
tax-deferred contributions, divided by the Participant’s Compensation for that Plan Year.

     (a) Qualified Matching Contributions And Qualified Nonelective Contributions.

     (1) Qualified Matching Contributions. The term “qualified matching
contributions” means matching contributions that satisfy the additional requirements
of (3).

     (2) Qualified Nonelective Contributions. The term “qualified
nonelective contributions” means employer contributions, other than elective
contributions and matching contributions, that satisfy the additional requirements
of (3).

     (3) Additional Requirements. Except to the extent that Treasury
Regulation Section 1.401(k)-1(c) and (d) specifically provide otherwise, the
matching contributions and the nonelective contributions must satisfy the
requirements of Treasury Regulation Section 1.401(k)-1(c) and (d) as though the
contributions were elective contributions, without regard to whether the
contributions are actually taken into account as elective contributions under
paragraph (b)(2) of this Section. Thus, the matching and nonelective contributions
must satisfy the vesting requirements of Treasury Regulation Section 1.401(k)-1(c)
and be subject to the distribution requirements of Treasury Regulation Section
1.401(k)-1(d) when they are contributed to the Plan.

     (b) Qualified Nonelective Contributions And Qualified Matching Contributions That
May Be Taken Into Account Under The Actual Deferral Percentage Test. All or part of the
qualified nonelective contributions and qualified matching contributions made with respect
to any or all employees who are eligible employees under the plan being tested may be
treated as elective contributions, provided that each of the following requirements (to the
extent applicable) is satisfied:

63

 

     (1) The amount of nonelective contributions, including those qualified
nonelective contributions treated as elective contributions for purposes of the
actual deferral percentage test, satisfies the requirements of Code Section
401(a)(4). See Treasury Regulation Section 1.401(a)(4)-1(b)(2).

     (2) The amount of nonelective contributions, excluding those qualified
nonelective contributions treated as elective contributions for purposes of the
actual deferral percentage test and those qualified nonelective contributions
treated as matching contributions for purposes of the actual contribution percentage
test, satisfies the requirements of Code Section 401(a)(4). See Treasury Regulation
Section 1.401(a)(4)-1(b)(2).

     (3) The qualified nonelective contributions and qualified matching
contributions satisfy the requirements of Treasury Regulation Section
1.401(k)-2(a)(4)(i)(A) for the Plan Year as if the contributions were elective
contributions.

     (4) The Code Section 401(k) plan and the plan or plans to which the qualified
nonelective contributions and qualified matching contributions are made, could be
aggregated under Treasury Regulation Section 1.410(b)-7(d) after application of the
mandatory disaggregation rules of Treasury Regulation Section 1.410(b)-7(c), as
modified in Treasury Regulation Section 1.401(k)-1(b)(4)(v). If the plan year of
the Code Section 401(k) plan is changed to satisfy the requirement under Treasury
Regulation Section 1.410(b)-7(d)(5) that aggregated plans have the same plan year,
the qualified nonelective contributions and qualified matching contributions may be
taken into account in the resulting short plan year only if the contributions
satisfy the requirements of Treasury Regulation Section 1.401(k)-2(a)(4)(i) with
respect to the short year as if the contributions were elective contributions and
the aggregated plans could otherwise be aggregated for purposes of Code Section
410(b).

     Section C.04 401(k) Limit. In any Plan Year, the K Percentage for Highly Compensated
Participants may not be more than the greater of—

     (a) the K Percentage for the preceding Plan Year for all Participants that were not
Highly Compensated Participants in that preceding Plan Year multiplied by 1.25; or

     (b) the lesser of 2% plus the K Percentage for the preceding Plan Year for all
Participants that were not Highly Compensated Participants in that preceding Plan Year or
the K Percentage for the preceding Plan Year for all Participants that were not Highly
Compensated Participants in the preceding Plan Year multiplied by 2.0.

64

 

	 	 	 
	K Percentage for Nonhighly Compensated	 	Maximum K Percentage allowed for
	(Non-HC%)	 	Highly Compensated
	0%
	 	0%
	Greater than 0%, up to 2%
	 	Non-HC% x 2
	Greater than 2%, up to 8%
	 	Non-HC% + 2
	Over 8%
	 	Non-HC% x 1.25

     Section C.05 Highly Compensated Individual K Percentage Limit. If at the end of any
Plan Year the K Percentage for Highly Compensated Participants exceeds the group limit in the
previous Section, the Committee will determine the initial maximum individual K Percentage limit
for Highly Compensated Participants. The initial maximum limit is a ceiling on each Highly
Compensated Participant’s individual K Percentage which, if imposed, would bring the group K
Percentage for Highly Compensated Participants within the limits imposed by the previous Section.

     Section C.06 Excess Tax Deferred Contributions. In any Plan Year in which the K
Percentage for Highly Compensated Participants exceeds the 401(k) limit, the Excess Tax-Deferred
Contributions are determined under this Section.

     (a) The total “Excess Tax-Deferred Contributions” means the sum of the Individual
Excess Tax-Deferred Contributions for each Highly Compensated Participant.

     (b) The “Individual Excess Tax-Deferred Contributions” for a Highly Compensated
Participant means the excess of the Participant’s tax-deferred contributions for the Plan
Year over (1) multiplied by (2) as follows:

     (1) the maximum individual K Percentage limit for Highly Compensated
Participants (see Section C.05);

     (2) the Participant’s Compensation.

     Section C.07 Treatment of Excess Tax Deferred Compensation. The Committee shall have
Excess Tax-Deferred Contributions either recharacterized as after-tax contributions (in accordance
with Treasury Regulations) or repaid to the Participants, along with earnings on the excess
amounts.

     (a) Excess Tax-Deferred Contributions will be recharacterized or repaid as follows:

     (1) An amount will be recharacterized or repaid to the Highly Compensated
Participant(s) with the most Individual Excess Tax-Deferred Contributions as
follows:

     (A) The amount recharacterized or repaid is the amount necessary to
reduce that Participant’s Individual Excess Tax-Deferred Contributions to
the dollar amount of Individual Excess Tax-Deferred

65

 

	 	 	 	Contributions of the Highly Compensated Participant with the next most
Individual Excess Tax-Deferred Contributions.

     (B) A lesser amount will be recharacterized or repaid if such lesser
amount, when added to the total dollar amount already recharacterized or
repaid, equals the Total Excess Tax-Deferred Contributions.

     (2) The process in subsection (1) is repeated until the Total Excess
Tax-Deferred Contributions have been recharacterized or repaid in full.

     (b) The following additional rules apply:

     (1) Repaid earnings include amounts earned for the Plan Year in which the
contributions were made.

     (2) Any repayment under this Section must be made before the end of the Plan
Year following the Plan Year to which the excesses are attributable.

     (3) Recharacterization will not occur with respect to any Highly Compensated
Participant to the extent that the recharacterized amounts, in combination with
after-tax contributions made by or on behalf of the Participant, exceed the maximum
amount of after-tax contributions the Participant would be permitted to make under
the Plan in absence of recharacterization.

     Section C.08 The 401(m) Test. Sections C.09-C.13 are intended to implement the
nondiscrimination requirements set forth in Code Section 401(m) and the regulations under that
section, which are incorporated here by reference. The limitations of this Section will be imposed
after the operation of the 401(k) test.

     Section C.09 A&C Percentage. This term means the average of the A&C Ratios,
calculated separately for each Participant in a group. The A&C Ratio is the amount of all
after-tax contributions and Company contributions on Matched Deposits made to a Participant’s
account for a Plan Year, plus the “elective contributions” and the “qualified nonelective
contributions” treated by the Committee as matching contributions, divided by the Participant’s
Compensation for that Plan Year. However, the A&C Ratio does not count amounts counted under the
401(k) test.

     (a) Qualified Nonelective Contributions.

     (1) Qualified Nonelective Contributions. The term “qualified
nonelective contributions” means employer contributions, other than elective
contributions and matching contributions, that satisfy the additional requirements
of (2).

     (2) Additional Requirements. Except to the extent that Treasury
Regulation Section 1.401(k)-1(c) and (d) specifically provide otherwise, the
nonelective contributions must satisfy the requirements of Treasury Regulation

66

 

	 	 	 	Section 1.401(k)-1(c) and (d) as though the contributions were elective
contributions, without regard to whether the contributions are actually taken into
account as elective contributions under paragraph (b)(2) of this Section. Thus, the
nonelective contributions must satisfy the vesting requirements of Treasury
Regulation Section 1.401(k)-1(c) and be subject to the distribution requirements of
Treasury Regulation Section 1.401(k)-1(d) when they are contributed to the Plan.

     (b) Qualified Nonelective Contributions And Elective Contributions That May Be
Taken Into Account Under The Actual Contribution Percentage Test. All or part of the
qualified nonelective contributions and elective contributions made with respect to any or
all employees who are eligible employees under the plan being tested may be treated as
matching contributions provided that each of the following requirements (to the extent
applicable) is satisfied:

     (1) The amount of nonelective contributions, including those qualified
nonelective contributions treated as matching contributions for purposes of the
actual contribution percentage test, satisfies the requirements of Code Section
401(a)(4).

     (2) The amount of nonelective contributions, excluding those qualified
nonelective contributions treated as matching contributions for purposes of the
actual contribution percentage test and those qualified nonelective contributions
treated as elective contributions under Treasury Regulation Section 1.401(k)-2(a)(6)
for purposes of the actual deferral percentage test, satisfies the requirements of
Code Section 401(a)(4).

     (3) The elective contributions, including those treated as matching
contributions for purposes of the actual contribution percentage test, satisfy the
requirements of Code Section 401(k)(3).

     (4) The qualified nonelective contributions are allocated to the employee under
the plan as of a date within the plan year (within the meaning of Treasury
Regulation Section 1.401(k)-2(a)(4)(i)(A)), and the elective contributions satisfy
Treasury Regulation Section 1.401(k)-2(a)(4)(i) for the plan year.

     (5) The plan that takes qualified nonelective contributions and elective
contributions into account in determining whether employee and matching
contributions satisfy the requirements of Code Section 401(m)(2)(A), and the plans
to which the qualified nonelective contributions and elective contributions are
made, are or could be aggregated for purposes of Code Section 410(b) (other than the
average benefit percentage test). If the plan year of the plan being tested is
changed to satisfy the requirement under Code Section 410(b) that the aggregated
plans have the same plan year, the elective contributions may be taken into account
in the resulting short plan year only if these contributions satisfy the
requirements of Treasury Regulation Section 1.401(k)-2(a)(4) with respect to the

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	 	 	 	short year, and the qualified nonelective contributions may be taken into
account in the resulting short plan year only if these contributions satisfy the
requirements of Treasury Regulation Section 1.401(k)-2(a)(4)(i)(A) with respect to
the short year as if they were elective contributions.

     Section C.10 Highly Compensated Group Limit. In any Plan Year, the A&C Percentage for
the group of Highly Compensated Participants may not be more than the greater of—

     (a) the A&C Percentage for the preceding Plan Year for all Participants that were not
Highly Compensated Participants in that preceding Plan Year multiplied by 1.25, or

     (b) the lesser of 2% plus the A&C Percentage for the preceding Plan Year for all
Participants that were not Highly Compensated Participants in the preceding Plan Year or the
A&C Percentage for the preceding Plan Year for all Participants that were not Highly
Compensated Participants in the preceding Plan Year multiplied by 2.0.

This is also expressed by the following chart:

	 	 	 
	A&C Percentage for Nonhighly	 	Maximum A&C Percentage allowed for
	Compensated (Non-HC%)	 	Highly Compensated
	0%
	 	0%
	Greater than 0%, up to 2%
	 	Non-HC% x 2
	Greater than 2%, up to 8%
	 	Non-HC% + 2
	Over 8%
	 	Non-HC% x 1.25

     Section C.11 Highly Compensated Individual A&C Limit. If at the end of any Plan Year
the A&C Percentage for Highly Compensated Participants exceeds the group limit in the previous
Section, the Committee will determine the initial maximum individual A&C percentage limit for
Highly Compensated Participants. The initial maximum limit is a ceiling on each Highly Compensated
Participant’s individual A&C percentage which, if imposed, would bring the group A&C Percentage for
Highly Compensated Participants within the limits imposed by the previous Section.

     Section C.12 Excess A&C Contributions. In any Plan Year in which the A&C Percentage
for Highly Compensated Participants exceeds the A&C limit, the Excess A&C Contributions are
determined under this Section.

     (a) The Total Excess A&C Contributions equal the sum of the Individual Excess A&C
Contributions for each Highly Compensated Participant.

     (b) The Individual Excess A&C Contributions for a Highly Compensated Participant equal
the excess of the Participant’s after-tax contributions and Company contributions on Matched
Deposits for such Plan Year over (1) multiplied by (2) as follows:

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     (1) the maximum individual A&C limit for Highly Compensated Participants (see
Section C.11);

     (2) the Participant’s Compensation.

     Section C.13 Treatment of Excess A&C Contributions. Excess A&C Contributions are
treated as follows:

     (a) Excess A&C Contributions are repaid as follows:

     (1) An amount will be repaid to the Highly Compensated Participant(s) with the
most Individual Excess A&C Contributions as follows:

     (A) The amount repaid is the amount necessary to reduce that
Participant’s Individual Excess A&C Contributions to the dollar amount of
Individual Excess A&C Contributions of the Highly Compensated Participant
with the next most Individual Excess A&C Contributions.

     (B) A lesser amount will be repaid if such lesser amount, when added to
the total dollar amount already repaid, equals the Total Excess A&C
Contributions.

     (2) The process in subsection (1) is repeated until the Total Excess A&C
Contributions have been repaid in full.

     (b) The following additional rules apply:

     (1) Participant contributions are repaid to a Participant along with earnings
on the repaid amounts.

     (2) Company contributions on Matched Deposits are forfeited along with their
earnings and applied to reduce future Company contributions to the Plan. Repayments
and forfeitures must be made before the end of the Plan Year following the Plan Year
to which the excess amounts are attributable.

     (3) Earnings include amounts earned for the Plan Year in which the
contributions were made.

     Section C.14 Reductions During the Year. The provisions of this Appendix in no way
restrict the Committee’s ability to reduce the amount of contributions which may be made during a
Plan Year in order to try to prevent the Plan from exceeding the limits in this Appendix.

     Section C.15 Unmatched Company Contributions. If as the result of the operation of
Section 6.02 (the dollar limit on pre-tax deferrals, as indexed) and/or the 401(k) test and/or the
401(m) test, a Participant’s contributions are reduced so that Company contributions on Matched
Deposits previously made are no longer matched by sufficient Participant contributions, the
Participant’s Company contributions on Matched Deposits will be reduced to properly match the

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Participant’s remaining contributions. The excess Company contributions on Matched Deposits
will be forfeited and applied to reduce future Company contributions to the Plan.

     Section C.16 Employee Stock Ownership Plan. Amounts allocated under an employee stock
ownership plan described in Code Section 4975(e)(7) are counted under the 401(k) test and the
401(m) test for the Plan.

     Section C.17 Compensation. For purposes of this Appendix, Compensation means
Compensation as defined under Code Section 414(s).

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APPENDIX D

Highly-Compensated Participants

     Section D.01 In General. This Appendix is intended only to implement Code Section
414(q) and shall not be construed to require anything more than that statute requires.

     Section D.02 Highly-Compensated Participant. A Highly Compensated Participant is any
Employee who performs services for the Affiliated Companies during the Plan Year and is:

     (a) An Eligible Employee who could actively participate in the Plan (i.e., by making
contributions) during a Plan Year whether or not he or she does actively participate in the
Plan; and

     (b) Described under the 5%-Owner test of Section D.03 or the Preceding Plan Year
Compensation Test of Section D.04.

     Section D.03 5%-Owner Test. A Participant is considered a Highly Compensated
Participant in the current Plan Year if he or she was a 5%-Owner at any time during the current
Plan Year or during the preceding Plan Year.

     Section D.04 Preceding Plan Year Compensation Test. A Participant is considered a
Highly Compensated Participant in the current Plan Year if he or she earned compensation from the
Affiliated Companies in excess of $110,000 (as indexed) during the preceding Plan Year.

     Section D.05 5%-Owner. For purposes of this Section, an Employee is treated as a
5%-owner in a Plan Year if at any time during the Plan Year the Employee owned more than 5% of the
outstanding stock of any member of the Affiliated Companies or stock possessing more than 5% of the
total combined voting power of such stock.

     (a) An Employee will be deemed to own not only his or her own stock but also any stock
which he or she is treated as owning by Code Section 318. In addition, Code Section
318(a)(2)(C) is applied by substituting “5%” for “50%”.

     (b) The rules of subsections (b), (c) and (m) of Code Section 414, which treat
different but related employers as a single employer, do not apply for purposes of
determining whether an Employee owns more than 5% of any member of the Affiliated Companies.
That is, an Employee who owns more than just over 5% of a single subsidiary is a 5%-Owner.

     Section D.06 Nonresident Aliens. For purposes of this Appendix, nonresident aliens
who receive no earned income (within the meaning of Code Section 911(d)(2)) from the Affiliated
Companies which constitutes income from sources within the United States (within the meaning of
Code Section 861(a)(3)) shall not be considered Employees.

     Section D.07 Compensation. For purposes of this Appendix, the term “compensation”
means all amounts paid to the Employee by the Affiliated Companies which is treated as
“Compensation” under Code Section 415(c)(3). This includes amounts paid to the Employee during the
entire Plan Year even if the Employee was an active Participant in the Plan only for

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part of the year. “Compensation” shall include elective amounts that are not includible in
the gross income of the Employee by reason of Code Section 132(f)(4).

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APPENDIX E

Veterans’ Reemployment Rights

     Section E.01 In General. This Appendix is intended only to implement Code Section
414(u) and shall not be construed to require anything more than that statute requires.

     (a) Sections E.02-E.03 contain rules applicable to Qualified Veterans.

     (b) Sections E.04-E.05 contain definitions applicable for purposes of this Appendix.

     Section E.02 Service Credit. The following rules apply to Qualified Veterans:

     (a) Qualified Military Service is counted as vesting service to the extent that the
Qualified Veteran would have earned vesting service had he or she remained an Employee.

     (b) Qualified Military Service is counted as months of points service to the extent
that the Qualified Veteran would have earned months of points service had he or she remained
an Employee.

     (c) Qualified Military Service is counted as months of benefit service to the extent
that the Qualified Veteran would have earned months of benefit service had he or she
remained an Employee.

     Section E.03 Compensation Credit. A Qualified Veteran’s rate of annual salary for
periods of Qualified Military Service is determined by treating the Qualified Veteran as having
received compensation during the Qualified Military Service equal to:

     (a) The compensation that the Qualified Veteran would have received during the period
of Qualified Military Service if the Qualified Veteran had continued to be employed by the
Participating Companies, determined by the Committee in accordance with the Code and
applicable regulations; or

     (b) If the amount in paragraph (a) is not reasonably certain, the Qualified Veteran’s
average compensation from the Participating Companies during the calendar year (or, if
shorter, such period of total employment) immediately preceding the calendar year in which
the Qualified Veteran started his or her Qualified Military Service.

     Section E.04 Qualified Veteran. An individual with Qualified Military Service who is
entitled to reemployment rights as described in Code Section 414(u)(5).

     Section E.05 Qualified Military Service. Service in the uniformed services (as
described in Code Section 414(u)(5)) that entitles an individual to reemployment rights as
described in Code Section 414(u)(5).

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APPENDIX F

Service Counting After Acquisition By

Northrop Grumman Corporation

     Section F.01 General.

     (a) Historical Reference. This Appendix is intended for historical reference.

     (b) Purpose. This Appendix prevents employees of the Northrop Grumman Group
from receiving coverage or any credit for service or compensation under this Plan unless
mandated by the minimum statutory requirements of the Code or ERISA or until the Plan and
this Appendix are explicitly amended to provide otherwise. (For this purpose, “minimum
statutory requirements” refers only to statutory provisions concerning coverage,
compensation, and service. This Appendix overrides any Plan language that might otherwise
give further rights than what the statutes alone require.)

     (c) General Override. The provisions of this Appendix override any contrary
provisions elsewhere in the documents governing the Plan.

     (d) Definitions. For purposes of this Appendix:

     (1) The term “Northrop Grumman Group” generally means Northrop Grumman
Corporation and any entity affiliated with it under Code Sections 414(b), (c), (m),
or (o).

     (A) With reference to periods before the Litton Acquisition Date, the
term “Northrop Grumman Group” means the entire affiliated group.

     (B) With reference to periods after the Litton Acquisition Date, the
term “Northrop Grumman Group” means the entire affiliated group, but not
including Litton (and any successor entity) and its subsidiaries.

     (2) The term “Litton Acquisition Date” means the date on which Northrop
Grumman Corporation purchased a majority interest in the shares of Litton in
accordance with the exchange offer filed with the Securities and Exchange Commission
on Form S-4.

     (3) The term “Litton Affiliation Date” means the date as of which
Litton (or any successor entity) becomes affiliated with Northrop Grumman
Corporation under the rules of Code Sections 414(b), (c), (m), or (o).

     Section F.02 Acquisition of Litton Industries, Inc. Effective as of the Litton
Acquisition Date, Litton was acquired and became a subsidiary of Northrop Grumman Corporation.

     Section F.03 Controlled Group Parent After Affiliation. As of the Litton Affiliation
Date, Northrop Grumman Corporation became the parent of the controlled group instead of

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Litton. For periods on and after the Litton Affiliation Date, references to Litton
Industries, Inc. as parent of the controlled group will be deemed instead to refer to Northrop
Grumman Corporation.

     Section F.04 Coverage. No individuals who were employees of Northrop Grumman Group
immediately before the Litton Acquisition Date may participate in this Plan. No individuals who
became employees of the Northrop Grumman Group after the Litton Acquisition Date may participate in
this Plan.

     Section F.05 Service with Northrop Grumman Group.

     (a) Service with Northrop Grumman Group is counted under this Plan only if required by
the provisions in the Code and ERISA governing service counting. No language in this Plan
will be interpreted to give further rights than these statutes require.

     (b) Service with the Northrop Grumman Group before the Litton Affiliation Date will not
be counted as service for any purpose.

     (c) Service performed with the Northrop Grumman Group after the Litton Affiliation Date
is credited for participation and vesting purposes under this Plan only to the extent
required by Code Sections 410(a) and 411(a) and ERISA Sections 202 and 203.

     (d) No service with the Northrop Grumman Group will be counted in calculating benefits
or determining entitlement to optional forms of payment or early retirement, disability,
layoff, or plant shutdown benefits, even if otherwise determined by reference to vesting
service.

     Section F.06 Compensation. No compensation for services performed for the Northrop
Grumman Group will be treated as compensation under this Plan, except to the extent required by
ERISA or the Code.

     Section F.07 Nonduplication. Employees are not covered by this Plan for any Plan Year
or portion of a Plan Year if they are actively participating under any plan of the Northrop Grumman
Group qualified under Code Section 401(a).

     (a) Solely for purposes of this Section, employees are active participants in another
plan if they are generally eligible to make or receive contributions or accrue benefits
under the plan or would be but for limits in the plan.

     (b) If an employee could be covered by two plans, both of which include this provision
(or a similar provision), the plan administrators will resolve the discrepancy to allow
eligibility for one plan or another but not both.

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APPENDIX G

Employee Stock Ownership Plan

ARTICLE G1

General Provisions

     Section G1.01 Single Plan. The ESOP is a part of the Plan. The ESOP and the Plan
constitute a single plan. References to “the Plan” mean the entire Huntington Ingalls Industries
Financial Security and Savings Program, including the ESOP.

     Section G1.02 Application of Plan Provisions. The overall provisions of the Plan
apply to the ESOP, except as modified by the ESOP provisions.

     (a) Employee Deposits, Company contributions on Matched Deposits, and Special
Contributions may be made to the ESOP.

     (b) The only investment available under the ESOP is the Huntington Ingalls Industries
Fund (except for amounts diversified under Article G10).

     Section G1.03 Form of Contributions. Any contributions made to the ESOP may be made
in the form of cash or Qualifying Securities at the discretion of the Company.

     Section G1.04 Discrimination Testing. Contributions to the ESOP must separately pass
the 401(k) and 401(m) test and are not counted under the 401(k) or 401(m) test with respect to the
Plan. See Appendix C.

     Section G1.05 Vesting. Allocations to ESOP Accounts vest in the same manner as
contributions to the Plan generally. Qualifying Securities will be forfeited only after other
assets in accordance with Treasury Regulation Section 54.4975-11(d)(4).

     Section G1.06 Forfeitures. Nonvested amounts under the ESOP are forfeited, restored
and applied to reduce Company contributions on Matched Deposits in the same manner as nonvested
amounts under the Plan generally.

     Section G1.07 Section 415 Limitations. In the event the ESOP obtains a loan, the
limitations of Code Section 415 (see Appendix A) will be based on contributions made to repay the
loan which are allocated to a Participant’s ESOP Account rather than with respect to amounts
released from the Suspense Account and allocated to a Participant’s account.

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ARTICLE G2

Loan Requirements

     Section G2.01 In General. The Board may direct that the ESOP obtain a loan to
purchase Qualifying Securities or to repay a prior loan for the purchase of Qualifying Securities.

     Section G2.02 Use of Loan Proceeds. The proceeds of any loan must be used within a
reasonable time after their receipt only for any or all of the following purposes:

     (a) To acquire Qualifying Securities.

     (b) To repay the loan.

     (c) To repay a prior loan.

     Section G2.03 Price of Securities. The Trustee shall take all appropriate and
necessary measures to ensure that the Plan trust pays no more than “adequate consideration” (within
the meaning of ERISA Section 3(18)) for Qualifying Securities.

     Section G2.04 Suspense Account. All Qualifying Securities acquired with the proceeds
of a loan must be placed unallocated in the Suspense Account established by the Trustee. To the
extent required for the purpose of pledging Qualifying Securities as collateral for a loan, the
shares held as collateral in the Suspense Account may be physically segregated from other Trust
assets.

     Section G2.05 Restrictions on Securities. No security acquired with the proceeds of a
loan may be subject to a put, call, or other option, or buy-sell or similar arrangement while held
by and when distributed from the ESOP, whether or not the ESOP is still an ESOP at the time.

     Section G2.06 Liability and Collateral. Any loan must be without recourse against the
Plan.

     (a) The only assets of the ESOP that may be given as collateral on a loan are
Qualifying Securities that were acquired with the proceeds of the loan and those that were
used as collateral on a prior loan repaid with the proceeds of the current loan.

     (b) No person entitled to payment under a loan may have any right to assets of the ESOP
other than:

     (1) Collateral given for the loan;

     (2) Contributions (other than contributions of Qualifying Securities) that are
made under the ESOP to meet its obligations under the loan; and

     (3) Proceeds from the disposition of Qualifying Securities.

     (4) Earnings attributable to such collateral and the investment of such
earnings and contributions and proceeds under (2) and (3).

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     Section G2.07 Release of Collateral. A loan must provide for the release of
collateral in accordance with the provisions of Article G4.

     Section G2.08 Payments. Payments made with respect to a loan during a Plan Year may
not exceed an amount equal to the sum of:

     (a) Contributions (and their earnings) made to the ESOP to meet its obligations under
the loan minus such payments in prior years,

     (b) Dividends (and their earnings) on Qualifying Securities held under the ESOP, and

     (c) Proceeds (and their earnings) from the disposition of Qualifying Securities held in
the Suspense Account.

     Section G2.09 Separate Accounting. Amounts used to make loan payments under the
preceding Section must be separately accounted for until the loan is repaid.

     Section G2.10 Default. In the event of default on a loan, the value of Plan assets
transferred in satisfaction of the loan may not exceed the amount of default. If the lender is a
Disqualified Person, a loan must provide for a transfer of Plan assets upon default only upon and
to the extent of the failure of the Plan to meet the payment schedule of the loan.

     Section G2.11 Interest Rate. The interest rate on a loan may not be in excess of a
reasonable rate of interest, taking into account the amount and duration of the loan, the security
and guarantee (if any) involved, the credit standing of the ESOP and the guarantor (if any), and
the interest rate prevailing for comparable loans. A variable interest rate may be reasonable.

     Section G2.12 Loan Term. Any loan obtained by the ESOP must be for a specific term.
A loan may not be payable at the demand of any person, except in the case of default.

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ARTICLE G3

Loan Repayments

     Section G3.01 Ordering Rule. Loan repayments will generally be made from the
following sources in the following order:

     (a) Dividends on Qualifying Securities held in the Suspense Account.

     (b) Dividends on Qualifying Securities actually allocated to Participants’ ESOP
Account.

     (c) Company contributions on Matched Deposits under the ESOP.

To the extent only a portion of categories (b) or (c) are needed, amounts in a category will be
taken pro rata from each Participant’s ESOP Account based on the ratio of the Participant’s
Dividends or Company contributions on Matched Deposits for the month to the total amount taken from
the particular category.

     Section G3.02 Special Contributions. Special Contributions may also be used to repay
a loan. For purposes of the ordering rule of the preceding Section, Special Contributions will be
treated as allocated Dividends or Company contributions on Matched Deposits to the extent allocated
on the basis of such Dividends or Contributions respectively. To the extent that Special
Contributions are allocated on the basis of Compensation, they will be used to make loan repayments
only after the amounts in (a), (b) and (c) of the preceding Section.

     Section G3.03 Use of Qualifying Securities. Proceeds from the sale of Qualifying
Securities may be used to repay a loan. The Committee will determine in what order such proceeds
will be used for loan repayments in relation to the amounts specified in Section G3.01 and Section
G3.02.

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ARTICLE G4

Suspense Account

     Section G4.01 Application. The rules of this Article apply whether or not Qualifying
Securities are given as collateral for any loan.

     Section G4.02 Suspense Account. All Qualifying Securities acquired from the proceeds
of a loan (and any proceeds from the disposition of such Qualifying Securities) are held
unallocated in the Suspense Account until released from the Suspense Account in accordance with
this Article.

     Section G4.03 Income. Any income on Qualifying Securities and any earnings on such
income held in the Suspense Account will also be retained unallocated in the Suspense Account
except to the extent used to pay off an ESOP loan.

     Section G4.04 Rights to Suspense Account Amounts. No Participant or Beneficiary will
have any right to any amounts in the Suspense Account until an amount is released from the Suspense
Account and allocated to his or her ESOP Account.

     Section G4.05 General Rule for Release From Suspense. Unless the special election
described below is made, amounts held in the Suspense Account will be released from suspense as
follows:

     (a) As of the close of each calendar month during the duration of a loan, the number of
Qualifying Securities released must equal the number of Qualifying Securities held
immediately before release multiplied by a fraction:

     (1) The numerator of the fraction is the amount of principal and interest paid
for the month.

     (2) The denominator of the fraction is the sum of the numerator plus the
principal and interest to be paid for all future months.

     (b) The number of future months under the loan must be determined without taking into
account any possible extension or renewal periods.

     (c) If the interest rate under the loan is variable, the interest to be paid in the
future must be computed by using the interest rate applicable as of the end of the month of
the allocation.

     (d) If collateral includes more than one class of securities, the number of securities
of each class to be released for a Plan Year must be determined by applying the same
fraction to each class.

     Section G4.06 Special Election. The Committee may elect (at the time a loan is
obtained) or the terms of a loan may provide for the release of Qualifying Securities from the
Suspense Account based solely on the ratio that the payment of principal for each Plan Year

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bears to the total principal amount of the loan. This method may be used only if the
following rules are met:

     (a) The loan must provide for annual payments of principal and interest at a cumulative
rate that is not less rapid at any time than level annual payment of such amounts for 10
years.

     (b) The interest included in any payment is disregarded only to the extent that it
would be determined to be interest under standard loan amortization tables.

     (c) This special election is not applicable from the time that, by reason of a renewal,
extension, or refinancing, the sum of the expired duration of the original loan, the renewal
period, the extension period, and the duration of a new exempt loan exceeds 10 years.

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ARTICLE G5

Company Contributions

     Section G5.01 Special Company Contributions. The Affiliated Companies may make
special additional contributions to the ESOP not otherwise called for by the Plan. The decision
whether to make such Special Contributions and the amount of any such contributions will be in the
sole discretion of the Board.

     Section G5.02 Allocation of Special Contributions. In the event that the Affiliated
Companies decide to make a Special Contribution under Section G5.01, the ESOP will be amended to
specify how the Special Contribution will be allocated.

     Section G5.03 Section 415 Limitations. Allocations to a Participant’s ESOP Account
under this Article will be subject to the limitations of Code Section 415 (see Appendix A).

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ARTICLE G6

Dividends

     Section G6.01 In General. This Article provides for the treatment of Dividends.
These rules apply to Dividends on Qualifying Securities held in the Suspense Account as well as
those already allocated to ESOP Accounts.

     Section G6.02 Allocation of Dividends. Dividends on Qualifying Securities held in the
Suspense Account will be held in the Suspense Account. Dividends on Qualifying Securities already
allocated to a Participant’s ESOP Account will be allocated to that ESOP Account.

     Section G6.03 Loan Repayments. If the ESOP has an outstanding loan, Dividends will be
used to the maximum extent possible to repay the loan. Dividends will be taken first from the
Suspense Account and then from Participants’ ESOP Accounts in proportion to the amount of Dividends
in each ESOP Account.

     Section G6.04 Excess Dividends.

     (a) Cash Dividends. Cash Dividends that are not applied (or to be applied) to
loan repayments under the preceding Section are subject to the election provided under Code
Section 404(k)(2)(A)(iii). Each Participant will be provided, on a quarterly basis, with an
option to have cash Dividends:

     (1) Distributed to the Participant no later than 90 days after the close of the
Plan Year in which the cash Dividends are paid to the Plan; or

     (2) Paid to the Plan and reinvested in Qualifying Securities in the
Participant’s Account.

If a Participant fails to make an election, the cash Dividends will be paid to the Plan and
reinvested in Qualifying Securities in the Participant’s account. Participants will be
fully vested in cash Dividends with respect to which an election under this Section is
offered.

     (b) Stock Dividends. Stock Dividends are not applied to loan repayments and are
not subject to the election in (a). Stock Dividends on Qualifying Securities already
allocated to a Participant’s ESOP Account will be allocated to that ESOP Account as
Qualifying Securities.

     Section G6.05 Conditioned on Deductibility. Distribution of Dividends under the
preceding Section will be made only if the Committee can reasonably determine that the distributed
Dividends will be deductible for federal income tax purposes by the Company under the provisions of
the Code, including Code Section 404(k) or any successor provision.

     Section G6.06 Direct Distribution of Dividends. The Company may, in its discretion,
distribute Dividends directly to Participants rather than paying them to the Plan for distribution
to Participants.

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     Section G6.07 Meaning of “Participant”. For purposes of this Article, the term
“Participant” includes a Beneficiary who retains credit under an ESOP Account following a
Participant’s death.

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ARTICLE G7

Allocations of Suspense Account Amounts

     Section G7.01 In General. Qualifying Securities and other amounts released from the
Suspense Account are allocated to Participants’ Accounts under the rules of this Article.

     Section G7.02 Release From Suspense Account. Amounts released from the Suspense
Account are allocated as of the close of each month in the following order (until all amounts
available for allocation are used up):

     (a) First, to the extent Dividends on Qualifying Securities allocated to a
Participant’s ESOP Account (which includes a Beneficiary’s ESOP Account) are used to make a
loan payment, Qualifying Securities with a fair market value equal to the greater of the
following two amounts will be allocated to the Participant’s ESOP Account:

     (1) The amount of the dividend that would have been allocated to the
Participant’s account but for the loan payment.

     (2) The amount determined by multiplying the total amount released from
suspense for the month by the ratio of the amount determined in (1) to the total
loan payment for the month.

     (b) Second, to the extent Company contributions on Matched Deposits on behalf of a
Participant are used to make a loan payment, the greater of the following two amounts will
be allocated to the Participant’s ESOP Account:

     (1) The amount of the Company contribution on Matched Deposits that would have
been allocated to the Participant’s account but for the loan payment.

     (2) The amount determined by multiplying the total amount released from
suspense for the month by the ratio of the amount determined in (1) to the total
loan payment for the month.

     (c) Third, an amount will be allocated with respect to Dividends on Qualifying
Securities held in the Suspense Account.

     (1) This amount will be determined by multiplying the total amount released
from suspense for the month by the ratio of the unallocated Dividends used to make a
loan payment for the month to the total loan payment for the month. If this is
greater than the amount which remains to be allocated after (a) and (b), then such
lesser amount will be allocated under this paragraph (c).

     (2) The amount determined in (1) will be allocated to Participants based on the
ratio of the Company contributions on Matched Deposits allocated to their ESOP
Accounts for the month to the total Company contributions allocated to ESOP Accounts
for the month.

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     (d) Fourth, if any amounts remain, they will be allocated in proportion to Compensation
for the Plan Year to the ESOP Account of all Participants who have a contribution made to
the ESOP for the month or to Participants who are Eligible Employees as of the last day of
the month, depending on which group received an allocation of Special Contributions for the
month (see Section G5.02).

     Section G7.03 Allocation of Amounts Attributable to Special Contributions. Special
Contributions will be treated as Dividends under (a) of the preceding Section or Company
contributions on Matched Deposits under (b) of the preceding Section if they are allocated on the
basis of such Dividends or Company contributions on Matched Deposits respectively.

     Section G7.04 Release of Collateral. Amounts released from the Suspense Account will
not necessarily correspond to the amount of collateral released each year. The amount of
collateral released will depend on the terms of a loan and whether securities purchased with the
proceeds of a loan increase or decrease in value.

     Section G7.05 Section 415 Limits. Amounts released from the Suspense Account during a
year and allocated to Participants’ ESOP Accounts are not counted as “annual additions” for
purposes of Code Section 415 (see Appendix A).

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ARTICLE G8

Voting Rights and Tender Offers

     Section G8.01 In General. Qualifying Securities may be subject to an offer to
purchase or otherwise acquire from time to time. In addition, Qualifying Securities may carry the
right to vote on particular (or all) issues subject to a vote by shareholders of the Company and
such votes may be subject to proxy solicitations. This Article sets forth provisions governing
responses to such offers for and such voting of Qualifying Securities held under the Trust
Agreement and for responses to proxy solicitations. The provisions of this Article, and the
corresponding provisions in the Employee Benefit Plans Master Trust Agreement are to be construed
identically.

     Section G8.02 Voting of Qualifying Securities. Shares of Qualifying Securities shall
be voted by the Trustee only in accordance with directions from Participants as provided below:

     (a) Participants Entitled to Vote: Participants entitled to instruct the
Trustee with regard to voting shall be those Participants, including beneficiaries, (the
“Eligible Voting Participants”) who retain credit under an ESOP Account. The list of
Eligible Voting Participants will be fixed by the Committee as of the Determination Date for
purposes of this Section, which shall be the last day of the month next preceding the record
date established by the Board for the matter or matters to be voted on. However, if such
Determination Date is less than twenty-five days prior to such record date, the applicable
Determination Date shall be the last day of the second preceding month. Eligible Voting
Participants shall be named fiduciaries (under ERISA Section 403(a)(1)) for purposes of
directing the Trustee under this Section.

     (b) Allocation of Shares: The number of shares initially allocated to an
Eligible Voting Participant for purposes of voting will be the number (calculated to 5
decimal places) obtained by (1) dividing the number of shares of Qualifying Securities of
the Plan held in the Huntington Ingalls Industries Fund (as defined in the Plan’s Trust
Agreement) as of the close of business on the applicable Determination Date by the number of
units in the Huntington Ingalls Industries Fund credited to the accounts of all Eligible
Voting Participants as of such Determination Date, and (2) multiplying the quotient so
obtained by the number of units in the Huntington Ingalls Industries Fund credited to the
account of such Eligible Voting Participant as of the close of business on such
Determination Date.

     (c) Notification of Participants: In connection with the solicitation of
proxies, the Company, on behalf of the Trustee, shall notify all Eligible Voting
Participants of their rights with respect to voting and:

     (1) shall furnish to the Eligible Voting Participants all soliciting and other
materials furnished to the Company’s shareholders generally concerning the matter or
matters to be voted on;

     (2) shall solicit for the Trustee voting instructions from the Eligible Voting
Participants concerning such matter or matters;

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     (3) shall state in the notice the date as of which instructions must be
received by the Company from Eligible Voting Participants in order to be considered
timely;

     (4) shall notify each Eligible Voting Participant in writing of the number of
shares of Qualifying Securities as to which such Eligible Voting Participant is
entitled to give voting instructions to the Trustee under Section G8.02(b); and

     (5) shall state in such notice that the Eligible Voting Participant’s
instructions shall also apply to his or her portion of the undirected shares
(described below).

     (d) Voting of Shares: Each Eligible Voting Participant is entitled to direct
the Trustee with respect to the voting of the shares allocated to such Eligible Voting
Participant under Section G8.02(b) as well as the Eligible Voting Participant’s portion of
the Plan’s undirected shares. The Trustee shall follow timely and proper instructions
received from Eligible Voting Participants.

     (1) The portion of undirected shares allocable to each Eligible Voting
Participant from whom timely and proper directions are received shall be equal to
the total number of the Plan’s undirected shares multiplied by a fraction. The
numerator of the fraction shall be the number of shares allocated to the Eligible
Voting Participant under Section G8.02(b) and the denominator of the fraction will
be the total number of shares allocated under Section G8.02(b) to Eligible Voting
Participants from whom timely and proper instructions are received.

     (2) The total number of undirected shares shall be the sum of all shares held
by Eligible Voting Participants for which timely and proper instructions are not
received, shares of the Plan credited to the Huntington Ingalls Industries Fund
after the applicable Determination Date but on or before the record date for the
vote in question, less undirected shares of the Plan sold or otherwise disposed of
by the Huntington Ingalls Industries Fund after the applicable Determination Date
but on or before such record date, and shares of the Plan held in a suspense account
and not allocated to Participants’ accounts as of the Determination Date.

     (e) Action by Trustee: As soon as practicable prior to the annual meeting or
other meeting or voting deadline for which proxies have been solicited, the Trustee shall
execute and deliver to the Company a proxy or proxies which accord with the rules of Section
G8.02(d).

     Section G8.03 Tender Offers, etc. In the event any offer is made to shareholders
generally by any person, corporation or other entity (the “Offeror”) to purchase or otherwise
acquire any or all of the Company’s Qualifying Securities, including Qualifying Securities then
held in the Huntington Ingalls Industries Fund (an “Offer”), such Qualifying Securities shall be
tendered for sale or exchange by the Trustee only in accordance with directions from Participants
as provided below:

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     (a) Participants Entitled to Direct Trustee: Participants entitled to instruct
the Trustee with regard to an Offer shall be those Participants, including beneficiaries,
(the “Eligible Tender Offer Participants”) who retain credit under an ESOP Account. The
list of Eligible Tender Offer Participants will be fixed as of the Determination Date for
purposes of this Section, which shall be the last day of the month next preceding the date
on which copies of the offer or invitation for tenders are first published or sent or given
to the Company’s shareholders. However, if such Determination Date is less than twenty-five
days prior to such date on which copies of the offer or invitation for tenders are first so
published or sent or given, the applicable Determination Date shall be the last day of the
second preceding month. Eligible Tender Offer Participants shall be named fiduciaries
(under ERISA Section 403(a)(1)) for purposes of directing the Trustee under this Section.

     (b) Allocation of Shares: The number of shares initially allocated to an
Eligible Tender Offer Participant for purposes of directing a response to an Offer will be
the number (calculated to 5 decimal places) obtained by (1) dividing the number of shares of
Qualifying Securities of the Plan held in the Huntington Ingalls Industries Fund as of the
close of business on the applicable Determination Date by the number of units in the
Huntington Ingalls Industries Fund credited to the accounts of all Eligible Tender Offer
Participants as of such Determination Date, and (2) multiplying the quotient so obtained by
the number of units in the Huntington Ingalls Industries Fund credited to the account of
such Eligible Tender Offer Participant as of the close of business on such Determination
Date.

     (c) Notification of Participants: In connection with the solicitation of
instructions, the Company, on behalf of the Trustee, shall notify all Eligible Tender Offer
Participants of their rights with respect to directing the disposition of shares under this
Section G8.03 and:

     (1) shall furnish to the Eligible Tender Offer Participants all materials and
written information furnished to the Company’s shareholders generally by the Offeror
and by the Company in connection with the Offer;

     (2) shall solicit for the Trustee instructions from the Eligible Tender Offer
Participants concerning the Offer;

     (3) shall state in the notice the date as of which instructions must be
received by the Company from Eligible Tender Offer Participants in order to be
considered timely;

     (4) shall notify each Eligible Offer Participant in writing of the number of
shares of Qualifying Securities as to which such Eligible Tender Offer Participant
is entitled to give instructions to the Trustee under Section G8.03(b); and

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     (5) shall state in such notice that the Eligible Tender Offer Participant’s
instructions shall also apply to his or her portion of the undirected shares
(described below).

     (d) Direction of Shares: Each Eligible Tender Offer Participant is entitled to
give the Trustee instructions which are consistent as to all (but not less than all) of the
shares allocated to such Eligible Tender Offer Participant under Section G8.03(b) as well as
the Eligible Tender Offer Participant’s portion of the Plan’s undirected shares. For
instance, the Eligible Tender Offer Participant may direct the Trustee to tender all such
shares, or not to tender all such shares. The Trustee shall follow timely and proper
instructions received from Eligible Tender Offer Participants.

     (1) The portion of undirected shares allocable to each Eligible Tender Offer
Participant from whom timely and proper directions are received shall be equal to
the total number of the Plan’s undirected shares multiplied by a fraction. The
numerator of the fraction shall be the number of shares allocated to the Eligible
Tender Offer Participant under Section G8.03(b) and the denominator of the fraction
will be the total number of shares allocated under Section G8.03(b) to Eligible
Tender Offer Participants from whom timely and proper instructions are received.

     (2) The total number of undirected shares shall be the sum of all shares held
by Eligible Tender Offer Participants for which timely and proper instructions are
not received, shares of the Plan credited to the Huntington Ingalls Industries Fund
after the applicable Determination Date but on or before the record date for the
vote in question, less shares of the Plan sold or otherwise disposed of by the
Huntington Ingalls Industries Fund after the applicable Determination Date but on or
before such record date, and shares of the Plan held in a suspense account and not
allocated to Participants’ accounts as of the Determination Date.

     (3) The Trustee will tender undirected shares proportionately from all
Participant accounts (as well as any suspense account) which contain undirected
shares. For example, if the Trustee receives directions which are, in the
aggregate, 25% in favor of tendering and 75% against tendering, it will tender one
share from an account with four undirected shares.

     (e) Withdrawals of Shares: In the event, under the terms of an Offer or
otherwise, any shares of Qualifying Securities tendered for sale or exchange pursuant to
such Offer may be withdrawn from such Offer, the Trustee will follow timely and proper
instructions from Eligible Tender Offer Participants respecting the withdrawal of shares
from the Offer in the same manner as instructions under Section G8.03(d).

     (f) Multiple Offers: If more than one Offer is made covering overlapping time
periods for Qualifying Securities in the Huntington Ingalls Industries Fund, the Trustee
will follow the rules of this Section G8.03 with respect to all such Offers. This may
require (1) more than one notification to Eligible Tender Offer Participants under

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Section G8.03(c); (2) soliciting instructions from Eligible Tender Offer Participants
as to whether they wish to withdraw shares from one Offer and tender them for sale or
exchange under another Offer, and (3) soliciting instructions from Eligible Tender Offer
Participants who have rejected one Offer to see whether they wish to direct the tender of
shares for sale or exchange under another Offer.

     (g) Allocation of Shares Accepted by Offeror: In the event that the Offeror
takes up and pays for fewer than all of the shares tendered for sale or exchange by the
Trustee on behalf of Eligible Tender Offer Participants, then the Trustee shall, to the
extent necessary, reduce the number of shares proffered from each account proportionately.
The Trustee shall use a random method to the extent necessary to allocate any residual
fractional shares between accounts.

     (h) Treatment of Proceeds: In the event that shares are tendered for sale or
exchange on behalf of an Eligible Tender Offer Participant pursuant to this Section, the
proceeds (cash or otherwise) received upon the acceptance of such tender or exchange by the
Offeror shall be credited to the account of such Eligible Tender Offer Participant. The
cash proceeds so credited shall purchase units and fractions of units in the Plan’s funds
other than the Huntington Ingalls Industries Fund (as defined in the Plan), in accordance
with the allocation then in effect for such Eligible Tender Offer Participant’s own
contributions. The non-cash proceeds (if any) so credited shall be held by the Trustee
pending further instructions from the Investment Committee.

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ARTICLE G9

Investments

     Section G9.01 Huntington Ingalls Industries Fund. Except as otherwise provided in the
Trust Agreement, all amounts held under the ESOP and not diversified under Article G10 shall be
held in the Huntington Ingalls Industries Fund under the Trust Agreement and shall be used to
purchase Qualifying Securities.

     (a) Cash set aside to meet ongoing liquidity needs and amounts temporarily liquid
pending investment in Qualifying Securities may be invested in obligations of the federal
government (including any agency or instrumentality thereof), certificates of deposit, any
common or group trust funds maintained by the Trustee or other bank or trust company, and in
commercial paper other than obligations of the Company.

     (b) Purchases of Qualifying Securities may be made from or through any source including
the Company or a Participant.

     (c) Rights, options, or warrants offered to purchase Huntington Ingalls Industries,
Inc. common stock shall be exercised by the Trustee to the extent that there is cash
available for investment. To the extent cash is not available, the same shall be sold on
the open market.

     (d) Conversion of convertible preferred stock shall be accomplished at the discretion
of the Trustee. Stock distributions shall be made only in Huntington Ingalls Industries,
Inc. common stock which is publicly traded and is not subject to a trading limitation. For
these purposes, a “trading limitation” on a security is a restriction under any federal or
state securities law, any regulation under a federal or state securities law, or any
agreement affecting the security which would make the security not as freely tradable as one
not subject to such restriction. The preceding sentence is to be construed in accordance
with Treasury Regulation Section 54.4975-7(b)(10).

     Section G9.02 Primary Investment. Funds held under the ESOP are to be primarily
invested in Qualifying Securities as required by ERISA and the Code, except to the extent
diversified under Article G10.

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ARTICLE G10

Diversification

     Section G10.01 In General. This Article provides for the diversification of
investments under the ESOP in certain circumstances for Participants meeting certain conditions.

     Section G10.02 Eligibility. Each Participant is immediately eligible for the
diversification election below.

     Section G10.03 Diversification Election. A Participant eligible to make the
diversification election may elect to diversify up to 100% of his or her ESOP Account.

     (a) Diversification consists of transferring amounts among the ESOP Account and one or
more of the other investment funds under the Plan.

     (b) The general rules under the Plan applicable to transfers between investment funds
will apply (except for the rule forbidding transfers from the Huntington Ingalls Industries
Fund).

     Section G10.04 Timing of Election. An eligible Participant may elect to diversify at
any time. Elections must be made according to the rules and procedures of the Committee.

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ARTICLE G11

Distributions

     Section G11.01 Application. The distributions rules of this Article are in addition
to the regular distributions rules of the Plan and are not intended to supplant those rules.

     Section G11.02 Timing of Distributions. The distribution of the vested portion of a
Participant’s ESOP Account will be made at the same time as his or her distribution under the Plan,
as soon as possible after the election of distribution.

     Section G11.03 Exception for Financed Securities. That portion of a Participant’s
ESOP Account which includes Qualifying Securities acquired with the proceeds of a loan will not be
distributed until the close of the Plan Year in which the loan is repaid in full.

     Section G11.04 Form of Distributions. Participants may elect to receive between
1-100%, in whole percentages, of the amounts in their ESOP Account (excluding any amounts which
have been diversified under Article G10) in the form of Qualifying Securities. Any amount not
distributed in the form of Qualifying Securities will be distributed in cash.

     Section G11.05 Condition of Distributions. The rules for distributions under the ESOP
are all conditioned on the present requirement that stock distributions shall be made only in
Huntington Ingalls Industries, Inc. common stock which is publicly traded and is not subject to a
trading limitation (see Section G9.01(d)) and the absence of any investments in Qualifying
Securities other than such common stock. Should these conditions change in the future, the ESOP
may be amended to provide for other distribution rules.

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ARTICLE G12

Termination

     Section G12.01 Termination. In addition to the general termination provisions of the
Plan, the ESOP shall terminate if the Company does not receive an initial determination from the
IRS that the ESOP qualifies as an ESOP under Code Section 4975(e)(7) or if changes in the law
prevent a deduction under Code Section 404(k) of all Dividends under the ESOP that are applied to
repay a loan or passed-through to Participants.

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APPENDIX H

HUNTINGTON INGALLS INDUSTRIES TRANSFER PROVISIONS

ARTICLE H1

Application and Definitions

     Section H1.01 Application. The provisions of this Appendix H provide special rules
governing the spin-off of the shipbuilding businesses of the Northrop Grumman Group to the
Affiliated Companies.

     Section H1.02 Definitions. The following definitions apply exclusively for purposes
of this Appendix H:

     (a) Delayed Transfer Employee. An employee whose employment transfers upon
mutual agreement of Huntington Ingalls Industries, Inc. and Northrop Grumman Corporation,
within 45 days after the Spin-Off, from the Northrop Grumman Group to the Affiliated
Companies or from the Affiliated Companies to the Northrop Grumman Group because the
employee was inadvertently and erroneously treated as employed by the wrong employer on the
Distribution Date, and who was continuously employed by a member of the Affiliated Companies
or the Northrop Grumman Group (as applicable) from the Distribution Date through the date
such employee commences active employment with a member of the Northrop Grumman Group or the
Affiliated Companies (as applicable). Notwithstanding anything herein to the contrary, the
mutual agreement with respect to, and actual commencement of employment with the Affiliated
Companies or the Northrop Grumman Group (as applicable) of, any Delayed Transfer Employee
must occur on or before 45 days after the Distribution Date.

     (b) Distribution Date. The date the Northrop Grumman Group distributes to its
stockholders its entire interest in the Company and any Affiliated Company by way of a stock
dividend.

     (c) Northrop Grumman Group. The Northrop Grumman Corporation and all members
of the Northrop Grumman Corporation’s controlled group as determined under Code Section 414.

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ARTICLE H2

Transfers and Rehires

     Section H2.01 Service Credit. For Eligible Employees transferred to the Affiliated
Companies on the Distribution Date or as Delayed Transfer Employees, the Affiliated Companies shall
provide credit under the Plan for service before the Distribution Date with the Affiliated
Companies and the Northrop Grumman Group for purposes of calculating Years of Service to the same
extent that such service was recognized under the relevant Northrop Grumman Group employee benefit
plans; provided, however, that the Plan shall apply any applicable break-in-service rules to the
extent provided under the Plan, as if such service was service with the Company or any Affiliated
Company. Additionally, a Delayed Transfer Employee’s service with the Northrop Grumman Group
following the Distribution Date shall be recognized for purposes of Years of Service under the
Plan, subject to the otherwise applicable provisions. Notwithstanding the prior provisions of this
Section H2.01, no employee shall receive duplicative service under this Plan and an employee
benefit plan maintained by the Northrop Grumman Group.

     Section H2.02 Former Employees. If a former Employee of the Northrop Grumman Group
becomes employed by the Affiliated Companies other than on the Distribution Date or as a Delayed
Transfer Employee, then the Plan will not recognize for any purpose such individual’s service with
the Northrop Grumman Group before or after the Distribution Date, except to the extent required by
law.

     Section H2.03 Continuation of Elections. The Company shall cause the Plan to
recognize and maintain all elections of a Participant, beneficiary or alternate payee in effect
under the Northrop Grumman Financial Security and Savings Program immediately prior to the transfer
of his or her account(s) from the Northrop Grumman Financial Security and Savings Program to the
Plan, including, but not limited to, deferral, investment and payment form elections, beneficiary
designations, and the rights of alternate payees under qualified domestic relations orders;
provided, however, that, investment elections relating to the Northrop Grumman Fund shall be deemed
to apply to an Investment Fund that is a “qualified default investment alternative” under 29 CFR
Section 2550.404c-5(e) unless otherwise specified by the Investment Committee.

     Section H2.04 Transfers to Northrop Grumman Group. In the event that a Participant
returns to employment with the Northrop Grumman Group as a Delayed Transfer Employee, the Company
shall cause the Plan to transfer to the applicable Northrop Grumman Group employee benefit plan the
accounts, liabilities and related assets in the Plan attributable to such Participant (and his or
her alternate payees, if any) as soon as reasonably practicable following the date of rehire by the
Northrop Grumman Group. The transfer of assets shall be in cash and include outstanding loan
balances and forfeitures and be conducted in accordance with Code Section 414(l) and Treasury
Regulation Section 1.414(1)-1, and ERISA Section 208. In the event that a Participant returns to
employment with the Northrop Grumman Group other than as a Delayed Transfer Employee, the Plan has
no obligation to make any transfer to the applicable Northrop Grumman Group employee benefit plan
other than as may be otherwise required by law or other terms of the Plan.

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ARTICLE H3

Plan Limits and Non-Discrimination Testing

     Section H3.01 Code Section 401(a)(17) Limits. For the 2011 Plan Year, the Code
Section 401(a)(17) limit on Compensation shall apply to all compensation paid by the Northrop
Grumman Group or the Affiliated Companies. Consequently, all 2011 Plan benefits shall be based on
no more than $245,000 of compensation, regardless of whether such compensation was paid by the
Northrop Grumman Group or the Affiliated Companies.

     Section H3.02 Code Section 415 Limits. For the 2011 Plan Year, the combined benefits
under the Plan, and any defined contribution plan sponsored by the Northrop Grumman Group or the
Affiliated Companies shall not exceed the 2011 Code Section 415 limits, applying such limits as if
all such plans were sponsored within the same controlled group, as defined under Code Section 414.
Consequently, combined benefits under the Plan, and any defined contribution plan sponsored by the
Northrop Grumman Group or the Affiliated Companies shall not exceed the lesser of $49,000 or 100%
of an individual’s total compensation paid by the Northrop Grumman Group or the Affiliated
Companies.

     Section H3.03 Code Section 402(g) Limits. During the 2011 Plan Year, a Participant’s
Deposits shall be limited to the Code Section 402(g) limit taking into account any equivalent
contributions made by such Participant to a defined contribution sponsored by the Northrop Grumman
Group.

     Section H3.04 Non-Discrimination Testing. All applicable non-discrimination testing
not expressly mentioned above shall be performed by the Plan without reference to any employee
benefit plan sponsored by the Northrop Grumman Group.

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EXHIBIT A

Participating Companies

Ingalls Ships Systems (Represented employees except Guards) (Entity 146)

99

 

EXHIBIT B

Eligible Pay

     For a listing of specific elements included in and excluded from “Compensation,” see the
definition of “Standard Compensation” in the Standard Definitions and Procedures for Certain
Huntington Ingalls Industries, Inc. Retirement Plans (the “Document”). The Document may be amended
at any time by the individual or entity named in Section 1.02 of the Document.

100

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