Document:

New Page 1

Exhibit 10.1

$500,000,000

364-DAY CREDIT AGREEMENT

dated as of

July 28, 2003

 

among

 

Textron Financial Corporation

 

The Banks Listed Herein

 

and

 

JPMorgan Chase Bank,

as Administrative Agent

____________________

J.P. Morgan Securities Inc.,

Lead Arranger and Sole Bookrunner

Bank of America, N.A.

Bank One, NA

Citibank, N.A.

Deutsche Bank AG New York Branch,

Syndication Agents

 

     TABLE OF CONTENTS

  
    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
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ARTICLE 1  Definitions

	
      Section 1.01. Definitions
	
      1

	
      Section 1.02. Accounting Terms and Determinations
	
      14

	
      Section 1.03. Types of Borrowing
	
      14

ARTICLE 2  The Credits

	
      Section 2.01. Commitments to Lend
	
      14

	
      Section 2.02. Notice of Committed Borrowing
	
      15

	
      Section 2.03. Competitive Bid Borrowings
	
      15

	
      Section 2.04. Notice to Banks; Funding of Loans
	
      19

	
      Section 2.05. Notes
	
      20

	
      Section 2.06. Maturity of Loans
	
      21

	
      Section 2.07. Interest Rates
	
      21

	
      Section 2.08. Method of Electing Interest Rates
	
      22

	
      Section 2.09. Fees
	
      24

	
      Section 2.10. Optional Termination or Reduction of Commitments
	
      24

	
      Section 2.11. Scheduled Termination of Commitments
	
      25

	
      Section 2.12. Optional Prepayments
	
      25

	
      Section 2.13. General Provisions as to Payments
	
      25

	
      Section 2.14. Funding Losses
	
      26

	
      Section 2.15. Computation of Interest and Fees
	
      26

	
      Section 2.16. Regulation D Compensation
	
      27

	
      Section 2.17. Increased Commitments; Additional Banks
	
      27

ARTICLE 3  Conditions

	
      Section 3.01. Effectiveness
	
      28

	
      Section 3.02. Borrowings
	
      29

ARTICLE 4  Representations and Warranties

	
      Section 4.01. Corporate Existence and Power
	
      30

	
      Section 4.02. Corporate and Governmental Authorization; No
      Contravention
	
      30

	
      Section 4.03. Binding Effect
	
      30

	
      Section 4.04. Financial Information
	
      31

	
      Section 4.05. Litigation
	
      31

	
      Section 4.06. Compliance with ERISA
	
      31

	
      Section 4.07. Environmental Matters
	
      32

	
      Section 4.08. Taxes
	
      32

	
      Section 4.09. Subsidiaries
	
      32

	
      Section 4.10. Not an Investment Company
	
      32

	
      Section 4.11. Validity of Support Agreement
	
      32

	
      Section 4.12. Full Disclosure
	
      33

ARTICLE 5  Covenants

	
      Section 5.01. Information
	
      33

	
      Section 5.02. Notification of Change in Ratings
	
      34

	
      Section 5.03. Payment of Obligations
	
      34

	
      Section 5.04. Maintenance of Property; Insurance
	
      35

	
      Section 5.05. Conduct of Business and Maintenance of Existence
	
      35

	
      Section 5.06. Compliance with Laws
	
      35

	
      Section 5.07. Inspection of Property, Books and Records
	
      35

	
      Section 5.08. Debt
	
      36

	
      Section 5.09. Minimum Consolidated Net Worth
	
      36

	
      Section 5.10. Restricted Payments
	
      36

	
      Section 5.11. Fixed Charges
	
      36

	
      Section 5.12. Negative Pledge
	
      36

	
      Section 5.13. Support Agreement
	
      38

	
      Section 5.14. Consolidations, Mergers and Sales of Asset
	
      38

	
      Section 5.15. Use of Proceeds
	
      38

	
      Section 5.16. Subsidiary Debt
	
      38

ARTICLE 6  Defaults

	
      Section 6.01. Events of Default
	
      38

	
      Section 6.02. Notice of Default
	
      41

ARTICLE 7  The Agents

	
      Section 7.01. Appointment and Authorization
	
      41

	
      Section 7.02. Administrative Agent and Affiliates
	
      41

	
      Section 7.03. Action by Administrative Agent
	
      41

	
      Section 7.04. Consultation with Experts
	
      41

	
      Section 7.05. Liability of Administrative Agent
	
      41

	
      Section 7.06. Indemnification
	
      42

	
      Section 7.07. Credit Decision
	
      42

	
      Section 7.08. Successor Administrative Agent
	
      42

	
      Section 7.09. Agents' Fees
	
      43

	
      Section 7.10. Other Agents
	
      43

ARTICLE 8  Change in Circumstances

	
      Section 8.01. Basis for Determining Interest Rate Inadequate or Unfair
	
      43

	
      Section 8.02. Illegality
	
      44

	
      Section 8.03. Increased Cost and Reduced Return
	
      44

	
      Section 8.04. Taxes
	
      46

	
      Section 8.05. Base Rate Loans Substituted for Affected Fixed Rate Loans
	
      47

	
      Section 8.06. Substitution of Bank or Banks
	
      48

ARTICLE 9  Miscellaneous

	
      Section 9.01. Notices
	
      48

	
      Section 9.02. No Waivers
	
      48

	
      Section 9.03. Expenses; Indemnification
	
      49

	
      Section 9.04. Set-Offs
	
      49

	
      Section 9.05. Amendments and Waivers
	
      50

	
      Section 9.06. Successors and Assigns
	
      50

	
      Section 9.07. Designated Lenders
	
      52

	
      Section 9.08. Collateral
	
      53

	
      Section 9.09. Governing Law; Submission to Jurisdiction
	
      53

	
      Section 9.10. Counterparts; Integration
	
      53

	Section 9.11. Waiver of 
      Jury Trial
	
      54

	
      Section 9.12. Disclosure of Certain Tax Aspects
	
      54

COMMITMENT SCHEDULE

PRICING SCHEDULE

  
    
      
        
EXHIBITS

        

      

    

  

	
      Exhibit A
	
      -
	
      Note

	
      Exhibit B
	
      -
	
      Competitive Bid Quote Request

	
      Exhibit C
	
      -
	
      Invitation for Competitive Bid Quotes

	
      Exhibit D
	
      -
	
      Competitive Bid Quote

	
      Exhibit E
	
      -
	
      Opinion of Counsel for the Borrower

	
      Exhibit F
	
      -
	
      Opinion of Special Counsel for the Administrative Agent

	
      Exhibit G
	
      -
	
      Assignment and Assumption Agreement

	
      Exhibit H
	
      -
	
      Designation Agreement

	
      Exhibit I
	
      -
	
      Subordination Agreement

	
      Exhibit J
	
      -
	
      Opinion of Counsel for Textron Inc.

	
      Exhibit K
	
      -
	
      Support Agreement

364-DAY CREDIT AGREEMENT

 

       AGREEMENT dated as of July 28, 2003 among TEXTRON FINANCIAL CORPORATION, the
BANKS listed on the signature pages hereof and JPMORGAN CHASE BANK, as
Administrative Agent.

      The parties hereto agree as follows:

ARTICLE 1

Definitions

      Section 1.1. Definitions.  The following terms, as used herein, have the following meanings:

      "Absolute
Rate Auction" means a solicitation of Competitive Bid Quotes setting
forth Competitive Bid Absolute Rates pursuant to Section 2.03.

      "Additional
Bank" has the meaning set forth in Section 2.17.

      "Administrative
Agent" means JPMorgan Chase Bank in its capacity as Administrative
Agent for the Banks hereunder, and its successors in such capacity.

       "Administrative
Questionnaire" means, with respect to each Bank, an administrative
questionnaire in the form prepared by the Administrative Agent and submitted to
the Administrative Agent (with a copy to the Borrower) duly completed by such
Bank.

       "Affiliate"
means (i) any Person that directly, or indirectly through one or more
intermediaries, controls the Borrower (a "Controlling Person")
or (ii) any Person (other than the Borrower or a Subsidiary) which is controlled
by or is under common control with a Controlling Person. As used herein, the
term "control" means possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise.

       "Agent"
means any of the Administrative Agent and the Syndication Agents, and "Agents"
means any two or more of the foregoing.

       "Applicable
Lending Office" means, with respect to any Bank, (i) in the case of its
Base Rate Loans, its Domestic Lending Office, (ii) in the case of its
Euro-Dollar Loans, its Euro-Dollar Lending Office and (iii) in
the case of its Competitive Bid Loans, its Competitive Bid Lending Office.

       "Assignee"
has the meaning set forth in Section 9.06(c).

       "Bank"
means each bank listed on the signature pages hereof and each Person which
becomes a Bank pursuant to Section 2.16, 8.06 or 9.06(c), and their respective
successors.

       "Base
Rate" means, for any day, a rate per annum equal to the higher of (i)
the Prime Rate for such day or (ii) the sum of 1⁄2 of 1% plus the Federal Funds
Rate for such day.

       "Base
Rate Loan" means a Committed Loan which bears interest at the Base Rate
pursuant to the applicable Notice of Committed Borrowing or Notice of Interest
Rate Election or the provisions of Section 2.08(a) or Article 8.

       "Borrower"
means Textron Financial Corporation, a Delaware corporation, and its successors.

       "Borrowing"
has the meaning set forth in Section 1.03.

       "Commitment"
means (i) with respect to each Bank listed on the Commitment Schedule,
the amount set forth opposite such Bank's name on the Commitment
Schedule, (ii) with respect to each Additional Bank, the amount of the
Commitment assumed by it pursuant to Section 2.17 and (iii) with
respect to any substitute bank or Assignee which becomes a Bank pursuant to
Section 8.06 or 9.06(c), the amount of the transferor Bank's Commitment
assigned to it pursuant to Section 8.06 or 9.06(c), in each case as such amount
may be changed from time to time pursuant to Section 2.10 or 9.06(c); provided
that, if the context so requires, the term "Commitment" means
the obligation of a Bank to extend credit up to such amount to the Borrower
hereunder.

       "Commitment
Schedule" means the Commitment Schedule attached hereto.

       "Committed
Loan" means a loan made by a Bank pursuant to Section 2.01; provided
that, if any such loan or loans (or portions thereof) are combined or
subdivided pursuant to a Notice of Interest Rate Election, the term "Committed
Loan" shall refer to the combined principal amount resulting from such
combination or to each of the separate principal amounts resulting from such
subdivision, as the case may be.

       "Competitive
Bid Absolute Rate" has the meaning set forth in
Section 2.03(d).

       "Competitive
Bid Absolute Rate Loan" means a loan to be made by a Bank pursuant to
an Absolute Rate Auction.

       "Competitive
Bid Lending Office" means, as to each Bank, its Domestic Lending Office
or such other office, branch or affiliate of such Bank as it may hereafter
designate as its Competitive Bid Lending Office by notice to the Borrower and
the Administrative Agent; provided that any Bank may from time to time by
notice to the Borrower and the Administrative Agent designate separate
Competitive Bid Lending Offices for its Competitive Bid LIBOR Loans, on the one
hand, and its Competitive Bid Absolute Rate Loans, on the other hand, in which
case all references herein to the Competitive Bid Lending Office of such Bank
shall be deemed to refer to either or both of such offices, as the context may
require.

       "Competitive
Bid LIBOR Loan" means a loan to be made by a Bank pursuant to a LIBOR
Auction (including such a loan bearing interest at the Base Rate pursuant to
Section 8.01).

       "Competitive
Bid Loan" means a Competitive Bid LIBOR Loan or a Competitive Bid
Absolute Rate Loan.

       "Competitive
Bid Margin" has the meaning set forth in Section 2.03(d).

       "Competitive
Bid Quote" means an offer by a Bank to make a Competitive Bid Loan in
accordance with Section 2.03.

       "Consolidated
Assets" means at any date the consolidated assets of the Borrower and
its Consolidated Subsidiaries determined as of such date.

       "Consolidated
Debt" means at any date the Debt of the Borrower and its Consolidated
Subsidiaries, determined as of such date.

       "Consolidated
Net Worth" means at any date the consolidated stockholders'
equity of the Borrower and its Consolidated Subsidiaries, determined as of such
date.

       "Consolidated
Subsidiary" means at any date any entity the accounts of which would be
consolidated with those of the Borrower in its consolidated financial statements
if such statements were prepared as of such date.

       "Debt"
of any Person means at any date, without duplication, (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments, (iii) all obligations of
such Person to pay the deferred purchase price of property or services, except
trade accounts payable arising in the ordinary course of business, (iv) all
obligations of such Person as lessee which are capitalized in accordance with
generally accepted accounting principles, (v) all non-contingent
obligations of such Person to reimburse any bank or other Person in respect of
amounts paid under a letter of credit or similar instrument, (vi) all Debt
secured by a Lien on any asset of such Person, whether or not such Debt is
otherwise an obligation of such Person, and (vii) all Debt of others Guaranteed
by such Person; provided that, for the purposes of this Agreement, "Debt"
of the Borrower or a Subsidiary shall not be deemed to include
Non-recourse Debt or Permitted Securitization Obligations, but shall
include liabilities secured by Liens described in clause (y) of Section 5.12(i).

       "Default"
means any condition or event which constitutes an Event of Default or which with
the giving of notice or lapse of time or both would, unless cured or waived,
become an Event of Default.

       "Designated
Lender" means, with respect to any Designating Bank, an Eligible
Designee designated by it pursuant to Section 9.07(a) as a Designated Lender for
purposes of this Agreement.

       "Designating
Bank" means, with respect to each Designated Lender, the Bank that
designated such Designated Lender pursuant to Section 9.07(a).

       "Domestic
Business Day" means any day except a Saturday, Sunday or other day on
which commercial banks in New York City are authorized by law to close.

       "Domestic
Lending Office" means, as to each Bank, its office, branch or affiliate
located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Domestic Lending Office)
or such other office, branch or affiliate as such Bank may hereafter designate
as its Domestic Lending Office by notice to the Borrower and the Administrative
Agent.

       "Earnings
Available for Fixed Charges" means, for any period, the sum of the
Borrower's pre-tax earnings before extraordinary items plus
Fixed Charges.

       "Effective
Date" means the date this Agreement becomes effective in accordance
with Section 3.01.

       "Eligible
Designee" means a special purpose corporation that (i) is organized
under the laws of the United States or any state thereof, (ii) is engaged in
making, purchasing or otherwise investing in commercial loans in the ordinary
course of its business and (iii) issues (or the parent of which issues)
commercial paper rated at least A-1 or the equivalent thereof by S&P
or P-1 or the equivalent thereof by Moody's.

       "Environmental
Laws" means any and all federal, state, local and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or other governmental
restrictions relating to the environment or to emissions, discharges or releases
of pollutants, contaminants, petroleum or petroleum products, chemicals or
industrial, toxic or hazardous substances or wastes into the environment
including, without limitation, ambient air, surface water, ground water, or
land, or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of pollutants, contaminants,
petroleum or petroleum products, chemicals or industrial, toxic or hazardous
substances or wastes or the clean-up or other remediation thereof.

       "ERISA"
means the Employee Retirement Income Security Act of 1974, as amended to the
date hereof and from time to time hereafter and any successor statute.

       "ERISA
Affiliate", as applied to any Person, means any trade or business
(whether or not incorporated) which, together with the Borrower, is treated as a
single employer under Section 414 of the Internal Revenue Code and the
regulations promulgated thereunder.

       "Euro-Dollar
Business Day" means any Domestic Business Day on which commercial banks
are open for international business (including dealings in dollar deposits) in
London.

       "Euro-Dollar
Lending Office" means, as to each Bank, its office, branch or affiliate
located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Euro-Dollar
Lending Office) or such other office, branch or affiliate of such Bank as it may
hereafter designate as its Euro-Dollar Lending Office by notice to the
Borrower and the Administrative Agent.

       "Euro-Dollar
Loan" means a Committed Loan which bears interest at a
Euro-Dollar Rate pursuant to the applicable Notice of Committed
Borrowing or Notice of Interest Rate Election.

       "Euro-Dollar
Margin" means the applicable rate per annum determined in accordance
with the Pricing Schedule.

       "Euro-Dollar
Rate" means a rate of interest determined pursuant to Section 2.07(c)
on the basis of a London Interbank Offered Rate.

       "Euro-Dollar
Reserve Percentage" means for any day that percentage (expressed as a
decimal) which is in effect on such day, as prescribed by the Board of Governors
of the Federal Reserve System (or any successor) for determining the maximum
reserve requirement for a member bank of the Federal Reserve System in New York
City with deposits exceeding five billion dollars in respect of "Eurocurrency
liabilities" (or in respect of any other category of liabilities which
includes deposits by reference to which the interest rate on Euro-Dollar
Loans is determined or any category of extensions of credit or other assets
which includes loans by a non-United States office of any Bank to United
States residents).

       "Event
of Default" has the meaning set forth in Section 6.01.

       "Existing
364-Day Credit Agreement" means the 364-Day Credit
Agreement dated as of July 29, 2002 among the Borrower, the banks parties
thereto and JPMorgan Chase Bank, as administrative agent, as amended and/or
restated prior to the Effective Date.

       "Facility
Fee Rate" means the applicable rate per annum determined in accordance
with the Pricing Schedule.

       "Federal
Funds Rate" means, for any day, the rate per annum (rounded upward, if
necessary, to the nearest 1/100th of 1%) equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Domestic Business Day next
succeeding such day, provided that (i) if such day is not a Domestic Business
Day, the Federal Funds Rate for such day shall be such rate on such transactions
on the next preceding Domestic Business Day as so published on the next
succeeding Domestic Business Day, and (ii) if no such rate is so published on
such next succeeding Domestic Business Day, the Federal Funds Rate for such day
shall be the average rate quoted to JPMorgan Chase Bank on such day on such
transactions as determined by the Administrative Agent.

       "Finance
Business" means (i) the leasing or renting to any Person (directly or
indirectly by financing such leasing or renting), or financing the purchase by
dealers or customers, of products of any Person, (ii) providing capital funds
for any Person, (iii) acquiring and owning notes, receivables (including lease
receivables) and other obligations of any Person and the financing of such
obligations, and (iv) transacting such other business as may be reasonably
incidental to the business specified in the preceding clauses (i), (ii) and
(iii).

       "Fixed
Charges" means, for any period, actual interest (including, without
limitation, dividends on preferred stock characterized as interest under
generally accepted accounting principles) incurred in such period on funded or
unfunded indebtedness and apportionment of debt discount or premium, and, in the
testing of obligations where interest is partially or entirely contingent upon
earnings, includes contingent interest payments.

       "Fixed
Rate Loans" means Euro-Dollar Loans or Competitive Bid Loans
(excluding Competitive Bid LIBOR Loans bearing interest at the Base Rate
pursuant to Section 8.01(a)) or any combination of the foregoing.

       "Group
of Loans" means, at any time, a group of Loans consisting of (i) all
Committed Loans which are Base Rate Loans at such time and (ii) all
Euro-Dollar Loans having the same Interest Period at such time, provided
that, if a Committed Loan of any particular Bank is converted to or made as a
Base Rate Loan pursuant to Article 8, such Loan shall be included in the same
Group or Groups of Loans from time to time as it would have been in if it had
not been so converted or made.

       "Guarantee"
by any Person means any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing any Debt of any other Person and, without
limiting the generality of the foregoing, any obligation, direct or indirect,
contingent or otherwise, of such Person (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Debt (whether arising by
virtue of partnership arrangements, by agreement to keep-well, to
purchase assets, goods, securities or services, to take-or-pay,
or to maintain financial statement conditions or otherwise) or (ii) entered into
for the purpose of assuring in any other manner the holder of such Debt of the
payment thereof or to protect such holder against loss in respect thereof (in
whole or in part), provided that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business. The
term "Guarantee" used as a verb has a corresponding meaning.

       "Interest
Period" means: (1) with respect to each Euro-Dollar Loan, the
period commencing on the date of borrowing specified in the applicable Notice of
Borrowing or on the date specified in the applicable Notice of Interest Rate
Election and ending one, two, three or six months thereafter, as the Borrower
may elect in such notice; provided that:

  
           (a)
     any Interest Period which
    would otherwise end on a day which is not a Euro-Dollar Business Day
    shall be extended to the next succeeding Euro-Dollar Business Day
    unless such Euro-Dollar Business Day falls in another calendar
    month, in which case such Interest Period shall end on the next preceding
    Euro-Dollar Business Day;

  

  
           (b)
     any Interest Period which
    begins on the last Euro-Dollar Business Day of a calendar month (or
    on a day for which there is no numerically corresponding day in the calendar
    month at the end of such Interest Period) shall, subject to the concluding proviso
    below, end on the last Euro-Dollar Business Day of a calendar month;
    and

           (c)
     no Interest Period may end
    after the Maturity Date;

  

       (2)
 with respect to each
Competitive Bid LIBOR Loan, the period commencing on the date of borrowing
specified in the applicable Notice of Borrowing and ending such whole number of
months thereafter as the Borrower may elect in accordance with Section 2.03; provided
that:

  
           (a)
     any Interest Period which
    would otherwise end on a day which is not a Euro-Dollar Business Day
    shall be extended to the next succeeding Euro-Dollar Business Day
    unless such Euro-Dollar Business Day falls in another calendar
    month, in which case such Interest Period shall end on the next preceding
    Euro-Dollar Business Day;

           (b)
     any Interest Period which
    begins on the last Euro-Dollar Business Day of a calendar month (or
    on a day for which there is no numerically corresponding day in the calendar
    month at the end of such Interest Period) shall, subject to the concluding proviso
    below, end on the last Euro-Dollar Business Day of a calendar month;
    and

           (c)
     no Interest Period may end
    after the Termination Date; and

  

       (3)
 with respect to each
Competitive Bid Absolute Rate Loan, the period commencing on the date of
borrowing specified in the applicable Notice of Borrowing and ending such number
of days thereafter (but not less than 7 days) as the Borrower may elect in
accordance with Section 2.03; provided that:

  
          
    (a) any Interest Period which would
    otherwise end on a day which is not a Euro-Dollar Business Day
    shall, subject to the concluding proviso below, be extended to the next
    succeeding Euro-Dollar Business Day; and

          
    (b) no Interest Period may end after
    the Termination Date.

  

       "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended, or
any successor statute.

       "LIBOR
Auction" means a solicitation of Competitive Bid Quotes setting forth
Competitive Bid Margins based on the London Interbank Offered Rate pursuant to
Section 2.03.

       "Lien"
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest, hypothecation or encumbrance of any kind in respect of such asset, provided
that, for the purposes of this Agreement, "Lien" shall not mean
(i) security interests under Article 9 of the Uniform Commercial Code in respect
of sales of accounts or chattel paper, or (ii) a lessee's interest in
any asset leased by the Borrower or any Subsidiary as lessor in the ordinary
course of business. For the purposes of this Agreement, the Borrower or any
Subsidiary shall be deemed to own subject to a Lien any asset which it has
acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, capital lease or other title retention agreement
relating to such asset.

       "Loan"
means a Committed Loan or a Competitive Bid Loan and "Loans"
means Committed Loans or Competitive Bid Loans or any combination of the
foregoing.

       "London
Interbank Offered Rate" has the meaning set forth in
Section 2.07(b).

       "Material
Debt" means Debt (other than the Notes) of the Borrower and/or one or
more of its Subsidiaries, arising in one or more related or unrelated
transactions, in an aggregate principal amount exceeding $50,000,000.

       "Maturity
Date" means the first anniversary of the Termination Date or, if such
day is not a Euro-Dollar Business Day, the next preceding
Euro-Dollar Business Day.

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

       "Multi-employer
Plan" means, at any time, a "multi-employer plan" as defined
in Section 4001(a)(3) of ERISA which is maintained for employees of the Borrower
or any ERISA Affiliate of the Borrower or, for purposes of Sections 4204 and
4212(c) of ERISA, within the preceding five plan years has been maintained for
employees of the Borrower or any ERISA Affiliate of the Borrower, including for
these purposes any Person which ceased to be an ERISA Affiliate of the Borrower
during such five year period.

       "Non-recourse
Debt" of the Borrower or a Subsidiary means any obligations for
borrowed money of the Borrower or a Subsidiary secured by specific assets, which
obligations, in accordance with generally accepted accounting principles, are
not reflected in the balance sheet of the Borrower or a Subsidiary and are
issued pursuant to or evidenced by an instrument which limits the recourse
against the obligor thereunder to such specific assets, and (in the case of all
Non-recourse Debt incurred after the date hereof), if under applicable
law in respect of such obligations, such assets or such obligor, at the time any
such obligation is created, a holder of such obligation could ever become
entitled to recourse against the obligor pursuant to § 1111(b) of the
Bankruptcy Reform Act of 1978 (11 U.S.C. § 1111(b)) or any other
provisions of any bankruptcy, insolvency or other law of any jurisdiction, such
instrument also contains a provision to the effect that such holder's
recourse claim in respect of such obligation shall be and remain in all respects
subordinate and junior to all Debt evidenced by the Notes and such holder shall
not be entitled to receive any payment, under any condition, in respect of any
obligation, other than the proceeds of such specific assets, until all Notes and
all other amounts which may become due pursuant to this Agreement, or are stated
in this Agreement to become due, shall have been paid in full or funds for their
payment shall have been duly and sufficiently provided.

       "Notes"
means promissory notes of the Borrower, substantially in the form of Exhibit A
hereto, evidencing the obligation of the Borrower to repay the Loans, and "Note"
means any one of such promissory notes issued hereunder.

       "Notice
of Borrowing" means a Notice of Committed Borrowing (as defined in
Section 2.02) or a Notice of Competitive Bid Borrowing (as defined in Section
2.03(f)).

       "Notice
of Interest Rate Election" has the meaning set forth in Section 2.08.

       "Parent"
means, with respect to any Bank, any Person controlling such Bank.

       "Participant"
has the meaning set forth in Section 9.06(b).

       "Person"
means an individual, a corporation, a partnership, a limited liability company,
an association, a trust or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

       "Pension
Plan" means, at any time, any employee pension benefit plan (within the
meaning of Section 3(2) of ERISA) which is subject to the provisions of Title IV
of ERISA (other than a Multi-employer Plan) and which is maintained for employees
of the Borrower or any of its ERISA Affiliates or, for purposes of Section 4069
of ERISA, has at any time within the preceding five years been maintained for
employees of any Person which was at such time an ERISA Affiliate of the
Borrower.

       "Permitted
Securitization Obligations" means obligations of the Borrower or any of
its Subsidiaries incurred in connection with any Securitization Transaction; provided,
however, that, if (i) there is recourse to the Borrower or any of its
Subsidiaries (other than a Special Purpose Subsidiary) for credit defaults by
the obligors in respect of the Receivables that are the subject of such
Securitization Transaction and (ii) such recourse is not limited to such
Receivables and the Receivables Related Assets (or undivided or beneficial
interests in such Receivables and Receivables Related Assets) that are the
subject of such Securitization Transaction then such obligations shall not be
considered "Permitted Securitization Obligations" within the meaning
of this definition to the extent that, in accordance with generally accepted
accounting principles, such obligations would be required to be included as a
liability on a consolidated balance sheet of the Borrower or its Consolidated
Subsidiaries.

       "Pricing
Schedule" means the Pricing Schedule attached hereto.

       "Prime
Rate" means the rate of interest publicly announced by JPMorgan Chase
Bank in New York City from time to time as its Prime Rate.

       "Qualifying
Subordinated Debt" means Debt of the Borrower owing to Textron or
another Affiliate; provided that such Debt is subordinated to the Loans and the
obligations of the Borrower hereunder pursuant to a subordination agreement
substantially in the form of Exhibit I hereto.

       "Qualifying
Subordinated Obligations" means Debt and/or other obligations of the
Borrower owing to Textron or another Affiliate; provided that such Debt and/or
other obligations are subordinated to the Loans and the obligations of the
Borrower hereunder pursuant to a subordination agreement substantially in the
form of Exhibit I hereto.

       "Quarterly
Payment Dates" means each March 31, June 30, September 30 and December
31.

       "Receivable"
means any right of payment from or on behalf of any obligor, whether
constituting an account, chattel paper, instrument, general intangible or
otherwise, arising from (i) the financing by the Borrower or any of its
Subsidiaries of property, equipment or services or (ii) the leasing by the
Borrower or any of its Subsidiaries of property or equipment, and monies due
thereunder, security interests in the property, equipment and services financed
or leased thereby and any and all other related rights.

       "Receivables
Related Assets" means, in connection with any Securitization
Transaction with respect to particular Receivables, the collective reference to:
(i) any rights arising under the documentation governing or relating to such
Receivables (including rights in respect of Liens securing such Receivables and
other credit support in respect of such Receivables), (ii) any proceeds of such
Receivables and any lockboxes or accounts in which such proceeds are deposited,
(iii) spread accounts and other similar accounts (and any amounts on deposit
therein) established in connection with such Securitization Transaction, (iv)
any warranty, indemnity, dilution and other intercompany claim arising out of
the documentation evidencing such Securitization Transaction and (v) any rights
or ownership interests in respect of the property or equipment leased or
financed pursuant to such Receivables.

       "Reference
Banks" means the principal London offices of Citibank, N.A., Deutsche
Bank AG and JPMorgan Chase Bank.

       "Regulation
U" means Regulation U of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

       "Required
Banks" means at any time Banks having more than 50% of the aggregate
amount of the Commitments or, if the Commitments shall have been terminated,
holding more than 50% of the aggregate unpaid principal amount of the Loans.

       "Restricted
Payment" means (i) any dividend or other distribution on any shares of
the Borrower's capital stock (except dividends (x) payable on preferred
stock but characterized as interest payments under generally accepted accounting
principles or (y) payable solely in shares of its capital stock) or (ii) any
payment on account of the purchase, redemption, retirement or acquisition of (a)
any shares of the Borrower's capital stock or (b) any option, warrant or
other right to acquire shares of the Borrower's capital stock.

       "Revolving
Credit Period" means the period from and including the Effective Date
to and including the Termination Date.

       "S&P"
means Standard & Poor's Ratings Group.

       "Special
Purpose Subsidiary" means any Subsidiary of the Borrower which (i) is
formed for the purpose of effecting a Securitization Transaction and engaging in
other activities reasonably related thereto and (ii) is structured as a
"bankruptcy-remote subsidiary" in accordance with customary
practices in the asset-backed securitization market.

       "Securitization
Transaction" means any transaction or series of transactions that have
been or may be entered into by the Borrower or any of its Subsidiaries in which
the Borrower or any of its Subsidiaries may sell, convey or otherwise transfer
to any other Person, or may grant a security interest in, any Receivables or
Receivables Related Assets or any undivided or beneficial ownership interests
therein (whether such Receivables or Receivables Related Assets are then
existing or arising in the future) of the Borrower or any of its Subsidiaries, provided
that after giving effect to such transaction or series of transactions, the
Receivables (or interests therein) which are the subject of such transaction or
series of transactions are, in accordance with generally accepted accounting
principles, no longer reflected as assets on a consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries.

       "Subsidiary"
of any Person means (i) any corporation of which securities having ordinary
voting power to elect a majority of the board of directors are at the time
directly or indirectly owned by such Person or (ii) any other entity which
constitutes a Consolidated Subsidiary; provided that the term
"Subsidiary" shall not include any corporation formed and maintained
by the Borrower in the ordinary course of business solely to hold and dispose of
assets acquired in connection with foreclosure, repossession or workout of the
Borrower's leases or loans or any entity owned by such corporation.
Unless otherwise specified "Subsidiary" means a Subsidiary of
the Borrower.

       "Support
Agreement" means the Support Agreement dated as of May 25, 1994,
between the Borrower and Textron, substantially in the form of Exhibit K, as the
same may be amended and in effect from time to time in accordance with the
provisions thereof and hereof.

       "Syndication
Agent" means each of Bank of America, N.A., Bank One, NA, Citibank, N.A.
and Deutsche Bank AG New York Branch, in its capacity as syndication agent in
respect of this Agreement.

       "Termination
Date" means July 26, 2004, or, if such day is not a Euro-Dollar
Business Day, the next preceding Euro-Dollar Business Day.

       "Termination
Event" means (i) a "Reportable Event" described in Section
4043 of ERISA and the regulations issued thereunder (other than a "Reportable
Event" not subject to the provision for 30-day notice to the
Pension Benefit Guaranty Corporation under such regulations), or (ii) the
withdrawal of the Borrower or any of its ERISA Affiliates from a Pension Plan
during a plan year in which it was a "substantial employer" as defined
in Section 4001(a)(2) of ERISA, or (iii) the filing of a notice of intent to
terminate a Pension Plan or the treatment of a Pension Plan amendment as a
termination under Section 4041 of ERISA, or (iv) the institution of proceedings
to terminate a Pension Plan by the Pension Benefit Guaranty Corporation, or (v)
any other event or condition which might constitute grounds under ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan.

       "Textron"
means Textron Inc., a Delaware corporation, and its successors.

       "Wholly-Owned
Subsidiary" of any Person means any Subsidiary all of the shares of
capital stock or other ownership interests of which (except directors'
qualifying shares) are at the time directly or indirectly owned by such Person.

      Section 1.2. Accounting
Terms and Determinations. Unless otherwise specified herein, all accounting
terms used herein shall be interpreted, all accounting determinations hereunder
shall be made, and all financial statements required to be delivered hereunder
shall be prepared in accordance with generally accepted accounting principles as
in effect from time to time, applied on a basis consistent (except for changes
concurred in by the Borrower's independent public accountants) with the
most recent audited consolidated financial statements of the Borrower and its
Consolidated Subsidiaries delivered to the Banks; provided that, if the
Borrower notifies the Administrative Agent that the Borrower wishes to amend any
covenant in Article 5 to eliminate the effect of any change in generally
accepted accounting principles on the operation of such covenant (or if the
Administrative Agent notifies the Borrower that the Required Banks wish to amend
Article 5 for such purpose), then the Borrower's compliance with such
covenant shall be determined on the basis of generally accepted accounting
principles in effect immediately before the relevant change in generally
accepted accounting principles became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Borrower
and the Required Banks.

      Section 1.3. Types
of Borrowing. The term "Borrowing" denotes (i) the aggregation of
Loans made or to be made to the Borrower pursuant to Article 2 on the same day,
all of which Loans are of the same type (subject to Article 8) and, except in
the case of Base Rate Loans, have the same initial Interest Period or (ii) if
the context so requires, the borrowing of such Loans. Borrowings are classified
for purposes of this Agreement either (i) by reference to the pricing of Loans
comprising such Borrowing (e.g., a "Euro-Dollar
Borrowing" is a Borrowing comprised of Euro-Dollar Loans) or (ii)
by reference to the provisions of Article 2 under which participation therein is
determined (i.e., a "Committed Borrowing" is a Borrowing under
Section 2.01 in which all Banks participate in proportion to their Commitments,
while a "Competitive Bid Borrowing" is a Borrowing under Section 2.03
in which one or more Banks participate on the basis of their bids).

ARTICLE 2

The Credits

      Section 2.1. Commitments
to Lend. Each Bank severally agrees, on the terms and conditions set forth
in this Agreement, to make loans to the Borrower pursuant to this Section from
time to time during the Revolving Credit Period; provided that,
immediately after each such loan is made: (i) the aggregate outstanding
principal amount of such Bank's Committed Loans under this Agreement by
such Bank at any one time outstanding shall not exceed its Commitment and (ii)
the aggregate outstanding principal amount of the Loans shall not exceed the
aggregate amount of the Commitments. Each Borrowing under this Section shall be
in an aggregate principal amount of $25,000,000 or any larger multiple of
$1,000,000 (except that any such Borrowing may be in the aggregate amount
available within the limitations in the foregoing proviso) and shall be made
from the several Banks ratably in proportion to their respective Commitments.
Within the foregoing limits, the Borrower may borrow under this Section, repay,
or to the extent permitted by Section 2.12, prepay Loans and reborrow under this
Section 2.01.

      Section 2.2. Notice
of Committed Borrowing. The Borrower shall give the Administrative Agent
notice (a "Notice of Committed Borrowing") not later than (x)
12:00 Noon (New York City time) on the date of each Base Rate Borrowing and (y)
10:30 A.M. (New York City time) on the third Euro-Dollar Business Day
before each Euro-Dollar Borrowing, specifying:

       (a)
 the date of such Borrowing,
which shall be a Domestic Business Day in the case of a Base Rate Borrowing or a
Euro-Dollar Business Day in the case of a Euro-Dollar Borrowing,

       (b)
 the aggregate amount of such
Borrowing,

       (c)
 whether the Loans comprising
such Borrowing are to be Base Rate Loans or Euro-Dollar Loans, and

       (d)
 in the case of a
Euro-Dollar Borrowing, the duration of the Interest Period applicable
thereto, subject to the provisions of the definition of Interest Period.

Section 2.3. Competitive Bid Borrowings.

       (a)
 The Competitive Bid Option.
In addition to Committed Borrowings pursuant to Section 2.01, the Borrower may,
as set forth in this Section, request the Banks to make offers to make
Competitive Bid Loans to the Borrower from time to time during the Revolving
Credit Period. The Banks may, but shall have no obligation to, make such offers
and the Borrower may, but shall have no obligation to, accept any such offers in
the manner set forth in this Section.

       (b)
 Competitive Bid Quote
Request. When the Borrower wishes to request offers to make Competitive Bid
Loans under this Section, it shall transmit to the Administrative Agent by telex
or facsimile transmission a Competitive Bid Quote Request substantially in the
form of Exhibit B hereto so as to be received no later than 10:30 A.M. (New York
City time) on (x) the fifth Euro-Dollar Business Day prior to the date
of Borrowing proposed therein, in the case of a LIBOR Auction or
(y) the Domestic Business Day next preceding the date of Borrowing
proposed therein, in the case of an Absolute Rate Auction (or, in either case,
such other time or date as the Borrower and the Administrative Agent shall have
mutually agreed and shall have notified to the Banks not later than the date of
the Competitive Bid Quote Request for the first LIBOR Auction or Absolute Rate
Auction for which such change is to be effective) specifying:

  
           (i)  the proposed date of
    Borrowing, which shall be a Euro-Dollar Business Day in the case of
    a LIBOR Auction or a Domestic Business Day in the case of an Absolute Rate
    Auction,

           (ii)
     the aggregate amount of
    such Borrowing, which shall be $25,000,000 or a larger multiple of
    $1,000,000,

           (iii)  the duration of the
    Interest Period applicable thereto, subject to the provisions of the
    definition of Interest Period, and

           (iv)  whether the Competitive
    Bid Quotes requested are to set forth a Competitive Bid Margin or a
    Competitive Bid Absolute Rate.

  

      The Borrower may
request offers to make Competitive Bid Loans for more than one Interest Period
in a single Competitive Bid Quote Request. No Competitive Bid Quote Request
shall be given within five Euro-Dollar Business Days (or such other
number of days as the Borrower and the Administrative Agent may agree) of any
other Competitive Bid Quote Request.

       (c)  Invitation for Competitive
Bid Quotes. Promptly upon receipt of a Competitive Bid Quote Request, the
Administrative Agent shall send to the Banks by telex or facsimile transmission
an Invitation for Competitive Bid Quotes substantially in the form of Exhibit C
hereto, which shall constitute an invitation by the Borrower to each Bank to
submit Competitive Bid Quotes offering to make the Competitive Bid Loans to
which such Competitive Bid Quote Request relates in accordance with this
Section.

       (d)  Submission and Contents of
Competitive Bid Quotes. (i) Each Bank may submit a Competitive Bid Quote
containing an offer or offers to make Competitive Bid Loans in response to any
Invitation for Competitive Bid Quotes. Each Competitive Bid Quote must comply
with the requirements of this subsection (d) and must be submitted to the
Administrative Agent by telex or facsimile transmission at its offices specified
in or pursuant to Section 9.01 not later than (x) 2:00 P.M. (New York
City time) on the fourth Euro-Dollar Business Day prior to the proposed
date of Borrowing, in the case of a LIBOR Auction or (y) 9:30 A.M. (New York
City time) on the proposed date of Borrowing, in the case of an Absolute Rate
Auction (or, in either case, such other time or date as the Borrower and the
Administrative Agent shall have mutually agreed and shall have notified to the
Banks not later than the date of the Competitive Bid Quote Request for the first
LIBOR Auction or Absolute Rate Auction for which such change is to be
effective); provided that Competitive Bid Quotes submitted by the
Administrative Agent (or any affiliate of the Administrative Agent) in the
capacity of a Bank may be submitted, and may only be submitted, if the
Administrative Agent or such affiliate notifies the Borrower of the terms of the
offer or offers contained therein not later than (x) one hour prior to the
deadline for the other Banks, in the case of a LIBOR Auction or (y) 15 minutes
prior to the deadline for the other Banks, in the case of an Absolute Rate
Auction. Subject to Articles 3 and 6, any Competitive Bid Quote so made shall be
irrevocable except with the written consent of the Administrative Agent given on
the instructions of the Borrower.

  
           (ii)  Each Competitive Bid Quote
    shall be in substantially the form of Exhibit D hereto and shall in any case
    specify:

    
      
               (A)  the proposed date of
        Borrowing,

               (B)  the principal amount
        of the Competitive Bid Loan for which each such offer is being made,
        which principal amount (w) may be greater than or less than the
        Commitment of the quoting Bank, (x) must be $5,000,000 or a larger
        multiple of $1,000,000, (y) may not exceed the principal amount of
        Competitive Bid Loans for which offers were requested and (z) may be
        subject to an aggregate limitation as to the principal amount of
        Competitive Bid Loans for which offers being made by such quoting Bank
        may be accepted,

               (C)  in the case of a LIBOR
        Auction, the margin above or below the applicable London Interbank
        Offered Rate (the "Competitive Bid Margin") offered for
        each such Competitive Bid Loan, expressed as a percentage (specified to
        the nearest 1/10,000th of 1%) to be added to or subtracted from such
        base rate,

               (D)  in the case of an
        Absolute Rate Auction, the rate of interest per annum (specified to the
        nearest 1/10,000th of 1%) (the "Competitive Bid Absolute Rate")
        offered for each such Competitive Bid Loan, and

               (E)
         the identity of the
        quoting Bank A. Competitive Bid Quote may set forth up to five separate
        offers by the quoting Bank with respect to each Interest Period
        specified in the related Invitation for Competitive Bid Quotes. A Competitive Bid Quote may set forth up to five separate offers by
        the quoting Bank with respect to each Interest Period specified in the
        related Invitation for Competitive Bid Quotes.

      

    

           (iii)  Any Competitive Bid Quote
    shall be disregarded if it:

  

  
    
      
               (A)  is not substantially
        in conformity with Exhibit D hereto or does not specify all of the
        information required by subsection (d)(ii);

               (B)  contains qualifying,
        conditional or similar language;

               (C)  proposes terms other
        than or in addition to those set forth in the applicable Invitation for
        Competitive Bid Quotes; or

               (D)  arrives after the time
        set forth in subsection (d)(i).

      

    

  

       (e)  Notice to Borrower. The
Administrative Agent shall promptly notify the Borrower of the terms (x) of any
Competitive Bid Quote submitted by a Bank that is in accordance with subsection
(d) and (y) of any Competitive Bid Quote that amends, modifies or is otherwise
inconsistent with a previous Competitive Bid Quote submitted by such Bank with
respect to the same Competitive Bid Quote Request. Any such subsequent
Competitive Bid Quote shall be disregarded by the Administrative Agent unless
such subsequent Competitive Bid Quote is submitted solely to correct a manifest
error in such former Competitive Bid Quote. The Administrative Agent's
notice to the Borrower shall specify (A) the aggregate principal amount of
Competitive Bid Loans for which offers have been received for each Interest
Period specified in the related Competitive Bid Quote Request, (B) the
respective principal amounts and Competitive Bid Margins or Competitive Bid
Absolute Rates, as the case may be, so offered and (C) if applicable,
limitations on the aggregate principal amount of Competitive Bid Loans for which
offers in any single Competitive Bid Quote may be accepted.

      (f)  Acceptance and Notice by
Borrower. Not later than 10:30 A.M. (New York City time) on (x) the third
Euro-Dollar Business Day prior to the proposed date of Borrowing, in the
case of a LIBOR Auction or (y) the proposed date of Borrowing, in the case of an
Absolute Rate Auction (or, in either case, such other time or date as the
Borrower and the Administrative Agent shall have mutually agreed and shall have
notified to the Banks not later than the date of the Competitive Bid Quote
Request for the first LIBOR Auction or Absolute Rate Auction for which such
change is to be effective), the Borrower shall notify the Administrative Agent
of its acceptance or non-acceptance of the offers so notified to it
pursuant to subsection (e). In the case of acceptance, such notice (a "Notice
of Competitive Bid Borrowing") shall specify the aggregate principal
amount of offers for each Interest Period that are accepted. The Borrower may
accept any Competitive Bid Quote in whole or in part; provided that:

  
           (i)  the aggregate principal
    amount of each Competitive Bid Borrowing may not exceed the applicable
    amount set forth in the related Competitive Bid Quote Request,

  

  
           (ii)  the principal amount of
    each Competitive Bid Borrowing must be $25,000,000 or a larger multiple of
    $1,000,000,

           (iii)  acceptance of offers may
    only be made on the basis of ascending Competitive Bid Margins or
    Competitive Bid Absolute Rates, as the case may be,

           (iv)  the Borrower may not
    accept any offer that is described in subsection (d)(iii) or that otherwise
    fails to comply with the requirements of this Agreement; and

          (v)
      immediately after such
    Competitive Bid Borrowing is made, the aggregate outstanding principal
    amount of the Loans shall not exceed the aggregate amount of the
    Commitments.

  

      (g)  Allocation by
Administrative Agent. If offers are made by two or more Banks with the same
Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be,
for a greater aggregate principal amount than the amount in respect of which
such offers are accepted for the related Interest Period, the principal amount
of Competitive Bid Loans in respect of which such offers are accepted shall be
allocated by the Administrative Agent among such Banks as nearly as possible (in
multiples of $1,000,000, as the Administrative Agent may deem appropriate) in
proportion to the aggregate principal amounts of such offers. Determinations by
the Administrative Agent of the amounts of Competitive Bid Loans shall be
conclusive in the absence of manifest error.

      Section 2.4. Notice
to Banks; Funding of Loans (a) Upon receipt of a Notice of Borrowing, the
Administrative Agent shall promptly notify each Bank of the contents thereof and
of such Bank's share (if any) of such Borrowing and such Notice of
Borrowing shall not thereafter be revocable by the Borrower.

       (b)   Not later than 2:00 P.M. (New
York City time) on the date of each Borrowing, each Bank participating therein
shall (except as provided in subsection (c) of this Section) make available its
share of such Borrowing, in Federal or other funds immediately available in New
York City, to the Administrative Agent at its address referred to in Section
9.01. Unless the Administrative Agent determines that any applicable condition
specified in Article 3 has not been satisfied, the Administrative Agent will
make the funds so received from the Banks available to the Borrower at the
Administrative Agent's aforesaid address.

       (c)   If any Bank makes a new Loan
hereunder on a day on which the Borrower is to repay all or any part of an
outstanding Loan from such Bank, such Bank shall apply the proceeds of its new
Loan to make such repayment and only an amount equal to the difference (if any)
between the amount being borrowed and the amount being repaid shall be made
available by such Bank to the Administrative Agent as provided in subsection
(b), or remitted by the Borrower to the Administrative Agent as provided in
Section 2.13, as the case may be.

      (d)   Unless the Administrative
Agent shall have received notice from a Bank prior to the date of any Borrowing
that such Bank will not make available to the Administrative Agent such
Bank's share of such Borrowing, the Administrative Agent may assume that
such Bank has made such share available to the Administrative Agent on the date
of such Borrowing in accordance with subsections (b) and (c) of this Section
2.04 and the Administrative Agent may, in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount. If and to the
extent that such Bank shall not have so made such share available to the
Administrative Agent, such Bank and the Borrower severally agree to repay to the
Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to
the Borrower until the date such amount is repaid to the Administrative Agent,
at (i) in the case of the Borrower, a rate per annum equal to the higher of the
Federal Funds Rate and the interest rate applicable thereto pursuant to Section
2.07 or (ii) in the case of such Bank, the Federal Funds Rate. If such Bank
shall repay to the Administrative Agent such corresponding amount, such amount
so repaid shall constitute such Bank's Loan included in such Borrowing
for purposes of this Agreement.

      Section 2.5. Notes.
(a) The Loans of each Bank shall be evidenced by a single Note payable to the
order of such Bank for the account of its Applicable Lending Office in an amount
equal to the aggregate unpaid principal amount of such Bank's Loans.

       (b)   Each Bank may, by notice to
the Borrower and the Administrative Agent, request that its Loans of a
particular type be evidenced by a separate Note in an amount equal to the
aggregate unpaid principal amount of such Loans. Each such Note shall be in
substantially the form of Exhibit A hereto with appropriate modifications to
reflect the fact that it evidences solely Loans of the relevant type. Each
reference in this Agreement to the "Note" of such Bank shall be deemed
to refer to and include any or all of such Notes, as the context may require.

       (c)   Upon receipt of each
Bank's Note pursuant to Section 3.01(b), the Administrative Agent shall
forward such Note to such Bank. Each Bank shall record the date, amount, type
and maturity of each Loan made by it and the date and amount of each payment of
principal made by the Borrower with respect thereto, and may, if such Bank so
elects in connection with any transfer or enforcement of its Note, endorse on
the schedule forming a part thereof appropriate notations to evidence the
foregoing information with respect to each such Loan then outstanding; provided
that the failure of any Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Notes. Each
Bank is hereby irrevocably authorized by the Borrower so to endorse its Note and
to attach to and make a part of its Note a continuation of any such schedule as
and when required.

      Section 2.6. Maturity
of Loans. (a) Each Committed Loan shall mature, and the principal amount
thereof shall be due and payable (together with accrued interest thereon), on
the Maturity Date.

       (b)   Each Competitive Bid Loan
included in any Competitive Bid Borrowing shall mature, and the principal amount
thereof shall be due and payable (together with accrued interest thereon), on
the last day of the Interest Period applicable to such Borrowing.

      Section 2.7. Interest
Rates. (a) Each Base Rate Loan shall bear interest on the outstanding
principal amount thereof, for each day from the date such Loan is made until it
becomes due, at a rate per annum equal to the Base Rate for such day. Such
interest shall be payable quarterly in arrears on each Quarterly Payment Date.
Any overdue principal of or interest on any Base Rate Loan shall bear interest,
payable on demand, for each day until paid at a rate per annum equal to the sum
of 2% plus the Base Rate for such day.

       (b)   Each Euro-Dollar Loan
shall bear interest on the outstanding principal amount thereof, for each day
during each Interest Period applicable thereto, at a rate per annum equal to the
sum of the Euro-Dollar Margin for such day plus the London Interbank
Offered Rate applicable to such Interest Period. Such interest shall be payable
for each Interest Period on the last day thereof and, if such Interest Period is
longer than three months, at intervals of three months after the first day
thereof.

      The "London
Interbank Offered Rate" applicable to any Interest Period means the
average (rounded upward, if necessary, to the next higher 1/16 of 1%) of the
respective rates per annum at which deposits in dollars are offered to each of
the Euro-Dollar Reference Banks in the London interbank market at
approximately 11:00 A.M. (London time) two Euro-Dollar Business Days
before the first day of such Interest Period in an amount approximately equal to
the principal amount of the Euro-Dollar Loan of such Euro-Dollar
Reference Bank to which such Interest Period is to apply and for a period of
time comparable to such Interest Period.

       (c)   Any overdue principal of or
interest on any Euro-Dollar Loan shall bear interest, payable on demand,
for each day from and including the date payment thereof was due to but
excluding the date of actual payment, at a rate per annum equal to the sum of 2%
plus the higher of (i) the sum of the Euro-Dollar Margin for such day
plus the London Interbank Offered Rate applicable to such Loan on the day before
such payment was due and (ii) the Euro-Dollar Margin for such day plus
the quotient obtained (rounded upward, if necessary, to the next higher 1/100 of
1%) by dividing (x) the average (rounded upward, if necessary, to the next
higher 1/16 of 1%) of the respective rates per annum at which one day (or, if
such amount due remains unpaid more than three Euro-Dollar Business
Days, then for such other period of time not longer than six months as the
Administrative Agent may select) deposits in dollars in an amount approximately
equal to such overdue payment due to each of the Euro-Dollar Reference
Banks are offered to such Euro-Dollar Reference Bank in the London
interbank market for the applicable period determined as provided above by (y)
1.00 minus the Euro-Dollar Reserve Percentage (or, if the circumstances
described in clause (a) or (b) of Section 8.01 shall exist, at a rate per annum
equal to the sum of 2% plus the rate applicable to Base Rate Loans for such
day).

       (d)   Subject to Section 8.01(a),
each Competitive Bid LIBOR Loan shall bear interest on the outstanding principal
amount thereof, for the Interest Period applicable thereto, at a rate per annum
equal to the sum of the London Interbank Offered Rate for such Interest Period
(determined in accordance with Section 2.07(b) as if the related Competitive Bid
LIBOR Borrowing were a Euro-Dollar Borrowing) plus (or minus) the
Competitive Bid Margin quoted by the Bank making such Loan in accordance with
Section 2.03. Each Competitive Bid Absolute Rate Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period applicable
thereto, at a rate per annum equal to the Competitive Bid Absolute Rate quoted
by the Bank making such Loan in accordance with Section 2.03. Such interest
shall be payable for each Interest Period on the last day thereof and, if such
Interest Period is longer than three months, at intervals of three months after
the first day thereof. Any overdue principal of or interest on any Competitive
Bid Loan shall bear interest, payable on demand, for each day until paid at a
rate per annum equal to the sum of 2% plus the Base Rate for such day.

       (e)   The Administrative Agent shall
determine each interest rate applicable to the Loans hereunder. The
Administrative Agent shall give prompt notice to the Borrower and the
participating Banks of each rate of interest so determined, and its
determination thereof shall be conclusive in the absence of manifest error.

       (f)   Each Reference Bank agrees to
use its best efforts to furnish quotations to the Administrative Agent as
contemplated by this Section. If any Reference Bank does not furnish a timely
quotation, the Administrative Agent shall determine the relevant interest rate
on the basis of the quotation or quotations furnished by the remaining Reference
Bank or Banks or, if none of such quotations is available on a timely basis, the
provisions of Section 8.01 shall apply.

      Section 2.8. Method
of Electing Interest Rates. (a) The Loans included in each Committed
Borrowing shall bear interest initially at the type of rate specified by the
Borrower in the applicable Notice of Committed Borrowing. Thereafter, the
Borrower may from time to time elect to change or continue the type of interest
rate borne by each Group of Loans (subject to Section 2.08(d) and the provisions
of Article 8), as follows:

  
           (i)   if such Loans are Base
    Rate Loans, the Borrower may elect to convert such Loans to
    Euro-Dollar Loans as of any Euro-Dollar Business Day; and

           (ii)   if such Loans are
    Euro-Dollar Loans, the Borrower may elect to convert such Loans to
    Base Rate Loans as of any Domestic Business Day or to continue such Loans as
    Euro-Dollar Loans for an additional Interest Period, subject to
    Section 2.14 if any such conversion is effective on any day other than the
    last day of an Interest Period applicable to such Loans.

  

Each such election shall be made by delivering a notice (a "Notice of
Interest Rate Election") to the Administrative Agent not later than
10:30 A.M. (New York City time) on the third Euro-Dollar Business Day
before the conversion or continuation selected in such notice is to be
effective. A Notice of Interest Rate Election may, if it so specifies, apply to
only a portion of the aggregate principal amount of the relevant Group of Loans;
provided that (i) such portion is allocated ratably among the Loans
comprising such Group and (ii) the portion to which such Notice applies, and the
remaining portion to which it does not apply, are each at least $25,000,000
(unless such portion is comprised of Base Rate Loans). If no such notice is
timely received before the end of an Interest Period for any Group of
Euro-Dollar Loans, the Borrower shall be deemed to have elected that
such Group of Loans be converted to Base Rate Loans at the end of such Interest
Period.

       (b)   Each Notice of Interest Rate
Election shall specify:

  
           (i)   the Group of Loans (or
    portion thereof) to which such notice applies;

           (ii)    the date on which the
    conversion or continuation selected in such notice is to be effective, which
    shall comply with the applicable clause of Section 2.08(a) above;

           (iii)
      if the Loans comprising
    such Group are to be converted, the new type of Loans and, if the Loans
    resulting from such conversion are to be Euro-Dollar Loans, the
    duration of the next succeeding Interest Period applicable thereto; and

  

  
           (iv)
      if such Loans are to be
    continued as Euro-Dollar Loans for an additional Interest Period,
    the duration of such additional Interest Period.

  

Each Interest Period specified in a Notice of Interest Rate Election shall
comply with the provisions of the definition of Interest Period.

       (c)
  Promptly after receiving a
Notice of Interest Rate Election from the Borrower pursuant to Section 2.08(a)
above, the Administrative Agent shall notify each Bank of the contents thereof
and such notice shall not thereafter be revocable by the Borrower.

       (d)
  The Borrower shall not be
entitled to elect to convert any Committed Loans to, or continue any Committed
Loans for an additional Interest Period as, Euro-Dollar Loans if (i) the
aggregate principal amount of any Group of Euro-Dollar Loans created or
continued as a result of such election would be less than $25,000,000 or (ii) a
Default shall have occurred and be continuing when the Borrower delivers notice
of such election to the Administrative Agent.

       (e)
  If any Committed Loan is
converted to a different type of Loan, the Borrower shall pay, on the date of
such conversion, the interest accrued to such date on the principal amount being
converted.

       (f)
  A conversion or continuation
pursuant to this Section 2.08 is not a Borrowing.

      Section 2.9. Fee.
(a) Facility Fee. The Borrower shall pay to the Administrative Agent for
the account of the Banks ratably in proportion to their Commitments a facility
fee calculated for each day at the Facility Fee Rate on the aggregate amount of
the Commitments (whether used or unused) on such day. Such facility fee shall
accrue for the account of each Bank from and including the Effective Date to but
excluding the Termination Date; provided that if any Loan shall remain
outstanding beyond the Termination Date, the facility fee shall accrue for the
account of each Bank on such Bank's outstanding Loans to but excluding
the date such Loans are repaid in full.

       (b)
  Payments. Accrued fees
under this Section shall be payable quarterly in arrears on each March 31, June
30, September 30 and December 31, commencing on the first such date to occur
after the date hereof, and upon the date of termination of the Commitments in
their entirety.

      Section 2.10. Optional
Termination or Reduction of Commitments. (a) The Borrower may, upon at least
three Domestic Business Days' notice to the Administrative Agent, (i)
terminate the Commitments at any time, if no Loans are outstanding at such time
or (ii) ratably reduce from time to time by an aggregate amount of $25,000,000
or any larger multiple of $1,000,000, the aggregate amount of the Commitments in
excess of the aggregate outstanding principal amount of the Loans.

       (b) Promptly
after receiving a notice of prepayment pursuant to this Section, the
Administrative Agent shall notify each Bank of the contents thereof and of such
Bank's ratable share (if any) of such prepayment, and such notice shall
not thereafter be revocable by the Borrower.

      Section 2.11. Scheduled
Termination of Commitments. Unless previously terminated, the Commitments
shall terminate on the Termination Date.

      Section 2.12. Optional
Prepayments. (a) Subject in the case of any Euro-Dollar Borrowing to
Section 2.14, the Borrower may, upon at least one Domestic Business
Day's notice to the Administrative Agent, prepay any Base Rate Borrowing
(or any Competitive Bid Borrowing bearing interest at the Base Rate pursuant to
Section 8.01(a)) or upon at least three Euro-Dollar Business
Days' notice to the Administrative Agent, prepay any Euro-Dollar
Borrowing, in each case in whole at any time, or from time to time in part in
amounts aggregating $25,000,000 or any larger multiple of $1,000,000, by paying
the principal amount to be prepaid together with accrued interest thereon to the
date of prepayment. Each such optional prepayment shall be applied to prepay
ratably the Loans of the several Banks included in such Borrowing.

       (b)
  Except as provided in Section
2.12(a), the Borrower may not prepay all or any portion of the principal amount
of any Competitive Bid Loan prior to the maturity thereof.

       (c)
  Upon receipt of a notice of
prepayment pursuant to this Section, the Administrative Agent shall promptly
notify each Bank of the contents thereof and of such Bank's ratable
share (if any) of such prepayment and such notice shall not thereafter be
revocable by the Borrower.

      Section 2.13. General
Provisions as to Payments. (a) The Borrower shall make each payment of
principal of, and interest on, the Loans and of fees hereunder, not later than
2:00 P.M. (New York City time) on the date when due, in Federal or other funds
immediately available in New York City, to the Administrative Agent at its
address referred to in Section 9.01 (or shall provide evidence satisfactory to
the Administrative Agent, not later than such time, at such address, that such
payment has been released on behalf of the Borrower into the FedWire, CHIPS or
other appropriate payment system), in each case without setoff or counterclaim.
The Administrative Agent will promptly distribute to each Bank its ratable share
of each such payment received by the Administrative Agent for the account of the
Banks. Whenever any payment of principal of, or interest on, the Domestic Loans
or of fees shall be due on a day which is not a Domestic Business Day, the date
for payment thereof shall be extended to the next succeeding Domestic Business
Day. Whenever any payment of principal of, or interest on, the
Euro-Dollar Loans shall be due on a day which is not a
Euro-Dollar Business Day, the date for payment thereof shall be extended
to the next succeeding Euro-Dollar Business Day unless such
Euro-Dollar Business Day falls in another calendar month, in which case
the date for payment thereof shall be the next preceding Euro-Dollar
Business Day. Whenever any payment of principal of, or interest on, the
Competitive Bid Loans shall be due on a day which is not a Euro-Dollar
Business Day, the date for payment thereof shall be extended to the next
succeeding Euro-Dollar Business Day. If the date for any payment of
principal is extended by operation of law or otherwise, interest thereon shall
be payable for such extended time.

       (b)
  Unless the Administrative
Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Banks hereunder that the Borrower will not make such
payment in full, the Administrative Agent may assume that the Borrower has made
such payment in full to the Administrative Agent on such date and the
Administrative Agent may, in reliance upon such assumption, cause to be
distributed to each Bank on such due date an amount equal to the amount then due
such Bank. If and to the extent that the Borrower shall not have so made such
payment, each Bank shall repay to the Administrative Agent forthwith on demand
such amount distributed to such Bank together with interest thereon, for each
day from the date such amount is distributed to such Bank until the date such
Bank repays such amount to the Administrative Agent, at the Federal Funds Rate.

      Section 2.14. Funding
Losses. If the Borrower makes any payment of principal with respect to any
Fixed Rate Loan or any Fixed Rate Loan is converted to a different type of Loan
(whether such payment or conversion is pursuant to Article 2, 6, or 8 or
otherwise) on any day other than the last day of an Interest Period applicable
thereto, or the last day of an applicable period fixed pursuant to Section
2.07(c), or if the Borrower fails to borrow, prepay, convert or continue any
Fixed Rate Loans after notice has been given to any Bank in accordance with
Section 2.04(a), 2.08(c) or 2.12(c), the Borrower shall reimburse each Bank
within 15 days after demand for any resulting loss or expense incurred by it (or
by an existing or prospective Participant in the related Loan), including
(without limitation) any loss incurred in obtaining, liquidating or employing
deposits from third parties, but excluding loss of margin for the period after
any such payment or conversion or failure to borrow, prepay, convert or
continue; provided that such Bank shall have delivered to the Borrower a
certificate as to the amount of such loss or expense, which certificate shall be
conclusive in the absence of manifest error.

      Section 2.15. Computation
of Interest and Fee. Interest based on the Prime Rate hereunder shall be
computed on the basis of a year of 365 days (or 366 days in a leap year) and
paid for the actual number of days elapsed (including the first day but
excluding the last day). All other interest and fees shall be computed on the
basis of a year of 360 days and paid for the actual number of days elapsed
(including the first day but excluding the last day).

      Section 2.16. Regulation
D Compensation. Each Bank may require the Borrower to pay, contemporaneously
with each payment of interest on the Euro-Dollar Loans, additional
interest on the related Euro-Dollar Loan of such Bank at a rate per
annum determined by such Bank up to but not exceeding the excess of (i) (A) the
applicable London Interbank Offered Rate divided by (B) one minus the
Euro-Dollar Reserve Percentage over (ii) the applicable London Interbank
Offered Rate. Any Bank wishing to require payment of such additional interest
(x) shall so notify the Borrower and the Administrative Agent, in which case
such additional interest on the Euro-Dollar Loans of such Bank shall be
payable to such Bank at the place indicated in such notice with respect to each
Interest Period commencing at least three Euro-Dollar Business Days
after the giving of such notice and (y) shall notify the Borrower at least five
Euro-Dollar Business Days prior to each date on which interest is
payable on the Euro-Dollar Loans of the amount then due it under this
Section.

      Section 2.17. Increased
Commitments; Additional Banks. (a) From time to time subsequent to the
Effective Date, the Borrower may, upon at least 30 days' notice to the
Administrative Agent (which shall promptly provide a copy of such notice to the
Banks), propose to increase the aggregate amount of the Commitments by an amount
not to exceed $167,000,000 (the amount of any such increase, the "Increased
Commitments"). Each Bank party to this Agreement at such time shall
have the right (but no obligation), for a period of 15 days following receipt of
such notice, to elect by notice to the Borrower and the Administrative Agent to
increase its Commitment by a principal amount which bears the same ratio to the
Increased Commitments as its then Commitment bears to the aggregate Commitments
then existing.

       (b)
  If any Bank party to this
Agreement shall not elect to increase its Commitment pursuant to subsection (a)
of this Section, the Borrower may, within 10 days of the Bank's
response, designate one or more of the existing Banks or other financial
institutions acceptable to the Administrative Agent and the Borrower (which
consent of the Administrative Agent shall not be unreasonably withheld) which at
the time agree to (i) in the case of any such Person that is an existing Bank,
increase its Commitment and (ii) in the case of any other such Person (an "Additional
Bank"), become a party to this Agreement. The sum of the increases in
the Commitments of the existing Banks pursuant to this subsection (b) plus the
Commitments of the Additional Banks shall not in the aggregate exceed the
unsubscribed amount of the Increased Commitments.

       (c)
  An increase in the aggregate
amount of the Commitments pursuant to this Section 2.17 shall become effective
upon the receipt by the Administrative Agent of an agreement in form and
substance satisfactory to the Administrative Agent signed by the Borrower, by
each Additional Bank and by each other Bank whose Commitment is to be increased,
setting forth the new Commitments of such Banks and setting forth the agreement
of each Additional Bank to become a party to this Agreement and to be bound by
all the terms and provisions hereof, together with such evidence of appropriate
corporate authorization on the part of the Borrower with respect to the
Increased Commitments and such opinions of counsel for the Borrower with respect
to the Increased Commitments as the Administrative Agent may reasonably request.

       (d)
  Upon any increase in the
aggregate amount of the Commitments pursuant to this Section 2.17 that is not
pro rata among all Banks, within five Domestic Business Days, in the case of any
Group of Base Rate Loans then outstanding, and at the end of the then current
Interest Period with respect thereto, in the case of any Group of
Euro-Dollar Loans then outstanding, the Borrower shall prepay such Group
in its entirety and, to the extent the Borrower elects to do so and subject to
the conditions specified in Article 3, the Borrower shall reborrow Committed
Loans from the Banks in proportion to their respective Commitments after giving
effect to such increase, until such time as all outstanding Committed Loans are
held by the Banks in such proportion.

ARTICLE 3

Conditions

      Section 3.1. Effectiveness.
This Agreement shall become effective on the date that each of the following
conditions shall have been satisfied (or waived in accordance with Section
9.05):

       (a)
  receipt by the Administrative
Agent of counterparts hereof signed by each of the parties hereto (or, in the
case of any party as to which an executed counterpart shall not have been
received, receipt by the Administrative Agent in form satisfactory to it of
telegraphic, telex or other written confirmation from such party of execution of
a counterpart hereof by such party);

      (b)   receipt by the Administrative
Agent for the account of each Bank of a duly executed Note dated on or before
the Effective Date complying with the provisions of Section 2.05;

 

       (c)   receipt by the Administrative
Agent of an opinion of the General Counsel or Assistant General Counsel of the
Borrower, substantially in the form of Exhibit E hereto and hereby given on the
express instruction of the Borrower and covering such additional matters
relating to the transactions contemplated hereby as the Required Banks may
reasonably request;

       (d)   receipt by the Administrative
Agent of an opinion of Davis Polk & Wardwell, special counsel for the
Administrative Agent, substantially in the form of Exhibit F hereto and covering
such additional matters relating to the transactions contemplated hereby as the
Required Banks may reasonably request;

       (e)    receipt by the Administrative
Agent of an opinion of the Executive Vice President and General Counsel, the
Vice President and Deputy General Counsel or the Group General Counsel -
Financial Services of Textron, substantially in the form of Exhibit J hereto;

       (f)    receipt by the Administrative
Agent of all documents it may reasonably request relating to the existence of
the Borrower, the corporate authority for and the validity of this Agreement and
the Notes, and any other matters relevant hereto, all in form and substance
satisfactory to the Administrative Agent; and

       (g)    receipt by the Administrative
Agent of evidence satisfactory to it of the payment of all principal of and
interest on any loans outstanding under, and of all other amounts payable under,
the Existing 364-Day Credit Agreement; provided that this
Agreement shall not become effective or be binding on any party hereto unless
all of the foregoing conditions are satisfied not later than July 31, 2003. The
Administrative Agent shall promptly notify the Borrower and the Banks of the
Effective Date, and such notice shall be conclusive and binding on all parties
hereto.

      The Banks that
are parties to the Existing 364-Day Credit Agreement, comprising the
"Required Banks" as defined in the Existing 364-Day Credit
Agreement, and the Borrower agree that the commitments under the Existing
364-Day Credit Agreement shall terminate in their entirety
simultaneously with and subject to the effectiveness of this Agreement and that
the Borrower shall be obligated to pay the accrued facility fees thereunder to
but excluding the date of such effectiveness.

      Section 3.2. Borrowings.
The obligation of any Bank to make a Loan on the occasion of any Borrowing is
subject to the satisfaction of the following conditions:

       (a)    receipt by the Administrative
Agent of a Notice of Borrowing as required by Section 2.02 or 2.03, as
the case may be;

       (b)    the fact that, immediately
after such Borrowing, the aggregate outstanding principal amount of the Loans
will not exceed the aggregate amount of the Commitments;

       (c)    the fact that, immediately
before and after such Borrowing, no Default shall have occurred and be
continuing; and

       (d)    the fact that the
representations and warranties of the Borrower contained in this Agreement
(other than the representation and warranty in Section 4.04(c), which is made
only as of the date hereof) shall be true on and as of the date of such
Borrowing.

      Each Borrowing
hereunder shall be deemed to be a representation and warranty by the Borrower on
the date of such Borrowing as to the facts specified in clauses (b), (c) and (d)
of this Section.

ARTICLE 4

Representations and Warranties

The Borrower represents and warrants that:

      Section 4.1. Corporate
Existence and Power. Borrower is a corporation duly incorporated, validly
existing and in good standing under the laws of Delaware, and has all corporate
powers and all material governmental licenses, authorizations, consents and
approvals required to carry on its business as now conducted.

      Section 4.2. Corporate
and Governmental Authorization; No Contravention. The execution, delivery
and performance by the Borrower of this Agreement and the Notes are within the
Borrower's corporate powers, have been duly authorized by all necessary
corporate action, require no action by or in respect of, or filing with, any
governmental body, agency or official and do not contravene, or constitute a
default under, any provision of applicable law or regulation or of the
certificate of incorporation or by-laws of the Borrower or of any
agreement, judgment, injunction, order, decree or other instrument binding upon
the Borrower or result in the creation or imposition of any Lien on any asset of
the Borrower or any of its Subsidiaries.

      Section 4.3. Binding
Effect. This Agreement constitutes a valid and binding agreement of the
Borrower and each Note, when executed and delivered in accordance with this
Agreement, will constitute a valid and binding obligation of the Borrower, in
each case enforceable in accordance with its respective terms except as the same
may be limited by bankruptcy, insolvency or similar laws affecting
creditors' rights generally and by general principles of equity.

      Section 4.4. Financial
Information. (a) The consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of December 28, 2002 and the related consolidated
statements of income, cash flows and changes in shareholder's equity for
the fiscal year then ended, reported on by Ernst & Young LLP and set forth
in the Borrower's 2002 Annual Report, a copy of each of which has been
delivered to each of the Banks, fairly present, in conformity with generally
accepted accounting principles, the consolidated financial position of the
Borrower and its Consolidated Subsidiaries as of such date and their
consolidated results of operations and cash flows for such fiscal year.

       (b)   The consolidated balance sheet
of the Borrower and its Consolidated Subsidiaries as of March 31, 2003 and the
related consolidated statements of income and cash flows for the three months
then ended, copies of which have been delivered to each of the Banks, fairly
present, in conformity with generally accepted accounting principles applied on
a basis consistent with the financial statements referred to in clause (a)
above, the consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such three month period.

       (c)   Since March 31, 2003 there has
been no material adverse change in the business, financial position or results
of operations of the Borrower and its Consolidated Subsidiaries, considered as a
whole.

      Section 4.5. Litigation.
There is no action, suit, governmental investigation or other proceeding pending
against, or to the knowledge of the Borrower threatened against or affecting,
the Borrower or any of its Subsidiaries before any court or arbitrator or any
governmental body, agency or official in which there is a reasonable possibility
of an adverse decision which could materially adversely affect the business,
consolidated financial position or consolidated results of operations of the
Borrower and its Consolidated Subsidiaries, considered as a whole, or which in
any manner draws into question the validity of this Agreement or the Notes.

      Section 4.6. Compliance
with ERISA. (a) The Borrower and its Subsidiaries and each of their
respective ERISA Affiliates are in compliance in all material respects with all
applicable provisions of ERISA and the regulations and published interpretations
thereunder with respect to all Pension Plans and all Multiemployer Plans.

       (b)   No Termination Event has
occurred or is reasonably expected to occur with respect to any Pension Plan, as
the case may be, which has resulted or would result in any material liability to
the Pension Benefit Guaranty Corporation (or any successor thereto) or to any
other Person under Section 4062, 4063, 4064 or 4069 of ERISA.

       (c)   Neither the Borrower nor any
of its ERISA Affiliates has incurred or reasonably expects to incur any
withdrawal liability under Part E, Title IV of ERISA to any Multiemployer Plan
individually or in the aggregate in excess of $50,000,000.

      Section 4.7. Environmental
Matters. In the ordinary course of its business, the Borrower conducts an
ongoing review of the effect of Environmental Laws on the business, operations
and properties of the Borrower and its Subsidiaries, in the course of which it
identifies and evaluates associated liabilities and costs (including, without
limitation, any capital or operating expenditures required for clean-up
or closure of properties presently or previously owned, any capital or operating
expenditures required to achieve or maintain compliance with environmental
protection standards imposed by law or as a condition of any license, permit or
contract, any related constraints on operating activities, including any
periodic or permanent shutdown of any facility or reduction in the level of or
change in the nature of operations conducted thereat and any actual or potential
liabilities to third parties, including employees, and any related costs and
expenses). On the basis of this review, the Borrower has reasonably concluded
that Environmental Laws are unlikely to have a material adverse effect on the
business, financial condition or results of operations of the Borrower and its
Consolidated Subsidiaries, considered as a whole.

      Section 4.8. Taxes.
The Borrower and its Subsidiaries have filed all United States Federal income
tax returns and all other material tax returns which are required to be filed by
them and have paid all taxes due pursuant to such returns or pursuant to any
assessment received by the Borrower or any Subsidiary. The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Borrower, adequate.

      Section 4.9. Subsidiaries.
Each of the Borrower's corporate Subsidiaries is a corporation duly
incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation, and has all corporate powers and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business as now conducted.

      Section 4.10. Not
an Investment Company. The Borrower is not an "investment company"
within the meaning of the Investment Company Act of 1940, as amended.

      Section 4.11. Validity
of Support Agreement. The Support Agreement constitutes a valid and binding
agreement of Textron enforceable in accordance with its terms.

      Section 4.12. Full
Disclosure. All information heretofore furnished by the Borrower to any
Agent or Bank for purposes of or in connection with this Agreement or any
transaction contemplated hereby is, and all such information hereafter furnished
by the Borrower to the Administrative Agent or any Bank will be, true and
accurate in all material respects on the date as of which such information is
stated or certified. The Borrower has disclosed to the Banks in writing any and
all facts which materially and adversely affect the business, operations or
financial condition of the Borrower and its Consolidated Subsidiaries, taken as
a whole, or the ability of the Borrower to perform its obligations under this
Agreement.

ARTICLE 5

Covenants

      The Borrower
agrees that, so long as any Bank has any Commitment hereunder or any Loan
remains outstanding or any amount payable under any Note remains unpaid:

      Section 5.1. Information.
The Borrower will deliver to each of the Banks:

       (a)   as soon as available and in
any event within 90 days after the end of each fiscal year of the Borrower,
consolidated and consolidating balance sheets of the Borrower and its
Consolidated Subsidiaries as of the end of such fiscal year and the related
consolidated and consolidating statements of income, cash flows and changes in
shareholder's equity for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, such consolidated
financial statements reported on by Ernst & Young LLP or other independent
public accountants of nationally recognized standing;

       (b)   as soon as available and in
any event within 45 days after the end of each of the first three quarters of
each fiscal year of the Borrower, a consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries as of the end of such quarter and the related
consolidated statements of income, cash flows and changes in
shareholder's equity for the portion of the Borrower's fiscal
year ended at the end of such quarter, setting forth in each case in comparative
form the figures for the corresponding quarter and the corresponding portion of
the Borrower's previous fiscal year, all certified (subject to normal
year-end adjustments) as to fairness of presentation, normalcy of
accounting practices and consistency by the chief financial officer or the chief
accounting officer of the Borrower;

       (c)   simultaneously with the
delivery of each set of financial statements referred to in clauses (a) and (b)
above, a certificate of the chief financial officer or the chief accounting
officer of the Borrower (i) setting forth in reasonable detail the calculations
required to establish whether the Borrower was in compliance with the
requirements of Sections 5.08 to 5.11, inclusive, and of Section 5.16 on the
date of such financial statements and (ii) stating whether any Default exists on
the date of such certificate and, if any Default then exists, setting forth the
details thereof and the action which the Borrower is taking or proposes to take
with respect thereto;

       (d)   within five days after any
officer of the Borrower obtains knowledge of any Default, if such Default is
then continuing, a certificate of the chief financial officer or the chief
accounting officer of the Borrower setting forth the details thereof and the
action which the Borrower is taking or proposes to take with respect thereto;

       (e)   promptly upon the filing
thereof, copies of all registration statements (other than the exhibits thereto
and any registration statements on Form S-8 or its equivalent) and
reports on Forms 10-K, 10-Q and 8-K (or their
equivalents) which the Borrower shall have filed with the Securities and
Exchange Commission; and

       (f)   from time to time such
additional information with respect to the Borrower and its Subsidiaries as the
Administrative Agent, at the request of any Bank, may reasonably request.

      Information
required to be delivered pursuant to subsections (a), (b) or (e) above shall be
deemed to have been delivered on the date on which the Borrower provides notice
to the Banks that such information has been posted on the Borrower's
website on the Internet at the website address listed on the signature pages
hereof, at sec.gov/edaux/searches.htm or at another website identified in such
notice and accessible by the Banks without charge; provided that (i) such
notice may be included in a certificate delivered pursuant to subsections
5.01(c) and (ii) the Borrower shall deliver paper copies of the information
referred to in subsections (a), (b), or (e) to any Bank if it requests such
delivery.

      Section 5.2. Notification
of Change in Ratings. The Borrower shall notify the Administrative Agent of
any actual or proposed change in the ratings by S&P or Moody's of
the Borrower's long term debt securities, as soon as the Borrower
becomes aware of such change.

      Section 5.3. Payment
of Obligation. The Borrower will pay and discharge, and will cause each
Subsidiary to pay and discharge, at or before maturity, all their respective
material obligations and liabilities, including, without limitation, tax
liabilities, except where the same may be contested in good faith by appropriate
proceedings, and will maintain, and will cause each Subsidiary to maintain, in
accordance with generally accepted accounting principles, appropriate reserves
for the accrual of any of the same.

      Section 5.4. Maintenance
of Property; Insurance.  (a) The Borrower will keep, and will cause each
Subsidiary to keep, all property useful and necessary in its business in good
working order and condition, ordinary wear and tear excepted.

       (b)   The Borrower will, and will
cause each Subsidiary to, maintain (either in the name of the Borrower or in the
Subsidiary's own name) with financially sound and responsible insurance
companies, insurance on all their respective properties in at least such amounts
and against at least such risks (and with such risk retention) as are usually
insured against in the same general area by companies of established repute
engaged in the same or a similar business; and will furnish to the Banks, upon
request from the Administrative Agent, information presented in reasonable
detail as to the insurance so carried.

      Section 5.5. Conduct
of Business and Maintenance of Existence.  The Borrower will continue, and
will cause each Subsidiary to continue, to engage in the Finance Business, and
will preserve, renew and keep in full force and effect, and will cause each
Subsidiary to preserve, renew and keep in full force and effect their respective
corporate existence and their respective rights, privileges and franchises
necessary or desirable in the normal conduct of business; provided that
nothing in this Section 5.05 shall, subject to Section 5.14, prohibit (i) the
merger of a Subsidiary into the Borrower or the merger or consolidation of a
Subsidiary with or into another Person if the corporation surviving such
consolidation or merger is a Subsidiary and if, in each case, after giving
effect thereto, no Default shall have occurred and be continuing or (ii) the
discontinuation of the Finance Business by or termination of the corporate
existence of any Subsidiary if the Borrower in good faith determines that such
discontinuation or termination is in the best interest of the Borrower and is
not materially disadvantageous to the Banks.

      Section 5.6. Compliance
with Laws. The Borrower will comply, and cause each Subsidiary to comply, in
all material respects, with all applicable laws, ordinances, rules, regulations,
and requirements of governmental authorities (including, without limitation,
Environmental Laws and ERISA and the rules and regulations thereunder) except
where the necessity of compliance therewith is contested in good faith by
appropriate proceedings.

      Section 5.7. Inspection
of Property, Books and Records. The Borrower will keep, and will cause each
Subsidiary to keep, proper books of record and account in which full, true and
correct entries shall be made of all dealings and transactions in relation to
its business and activities; and will permit, and will cause each Subsidiary to
permit, representatives of any Bank at such Bank's expense to visit and
inspect any of their respective properties, to examine and make abstracts from
any of their respective books and records and to discuss their respective
affairs, finances and accounts with their respective officers, employees and
independent public accountants, all at such reasonable times and as often as may
reasonably be desired.

      Section 5.8. Debt.
The ratio of (i) Consolidated Debt less Qualifying Subordinated Debt to (ii) the
sum of Consolidated Net Worth and Qualifying Subordinated Obligations will at no
time exceed 8 to 1. For purposes of this Section any preferred stock of a
Consolidated Subsidiary held by a Person other than the Borrower or a
Wholly-Owned Subsidiary of the Borrower shall be included, at the higher
of its voluntary or involuntary liquidation value, in "Consolidated
Debt".

      Section 5.9. Minimum
Consolidated Net Worth. Consolidated Net Worth will at no time be less than
$200,000,000.

      Section 5.10. Restricted
Payment. Neither the Borrower nor any Subsidiary will declare or make any
Restricted Payment unless, after giving effect thereto, the aggregate of all
Restricted Payments declared or made subsequent to January 1, 1994 does not
exceed the sum of (i) $25,000,000, plus (or minus, in the
case of loss) (ii) the cumulative consolidated net income of the Borrower and
its Consolidated Subsidiaries for the period from January 1, 1994 through the
end of the then most recent fiscal quarter of the Borrower, treated for this
purpose as a single accounting period, plus (iii) the aggregate amount of
cash contributions to the capital of the Borrower made by Textron subsequent to
June 10, 1994 and prior to the date of determination. Nothing in this Section
shall prohibit the payment of any dividend or distribution within 45 days after
the declaration thereof if such declaration was not prohibited by this Section.

      Section 5.11. Fixed
Charges. At the end of each fiscal quarter of the Borrower, the ratio of
Earnings Available for Fixed Charges to Fixed Charges will not, with respect to
the year-to-date period then ended, be less than 125%. For
purposes of this Section 5.11, any payments by Textron made pursuant to the
Support Agreement in respect of any period shall be included in Earnings
Available for Fixed Charges for such period, if made not later than the last day
of the following fiscal quarter.

      Section 5.12. Negative
Pledge. Neither the Borrower nor any Subsidiary will create, assume or
suffer to exist any Lien on any asset now owned or hereafter acquired by it,
except:

       (a)   Liens existing on the date of
this Agreement securing Debt outstanding on the date of this Agreement in an
aggregate principal amount not exceeding $1,000,000;

       (b)   any Lien existing on any asset
of any corporation at the time such corporation becomes a Subsidiary and not
created in contemplation of such event;

       (c)   any Lien on any asset securing
Debt or Non-recourse Debt incurred or assumed for the purpose of
financing all or any part of the cost of acquiring such asset, provided
that such Lien attaches to such asset concurrently with or within 90 days after
the acquisition thereof;

       (d)   any Lien on any asset of any
corporation existing at the time such corporation is merged or consolidated with
or into the Borrower or a Subsidiary and not created in contemplation of such
event;

       (e)   any Lien existing on any asset
prior to the acquisition thereof by the Borrower or a Subsidiary and not created
in contemplation of such acquisition;

       (f)   any Lien arising out of the
refinancing, extension, renewal or refunding of any Debt secured by any Lien
permitted by any of the foregoing clauses of this Section, provided that
such Debt is not increased and is not secured by any additional assets of the
Borrower or any Subsidiary;

       (g)   Liens arising in the ordinary
course of its business which (i) do not secure Debt, (ii) do not secure any
obligation in an amount exceeding $5,000,000 and (iii) do not in the aggregate
materially detract from the value of its assets or materially impair the use
thereof in the operation of its business;

       (h)   Liens not otherwise permitted
securing Debt in an aggregate principal amount at any time outstanding not to
exceed $50,000,000;

       (i)   (x) Liens which are granted
pursuant to any Securitization Transaction and which cover only the Receivables
and Receivables Related Assets or interests therein which are the subject of
such Securitization Transaction and (y) Liens which are granted pursuant to any
transaction that, but for failure to satisfy the conditions set forth in the
proviso of the definition of "Securitization Transaction", would
constitute a Securitization Transaction, which Liens cover only the Receivables
and Receivables Related Assets subject thereto, so long as the aggregate amount
of liabilities that are, or would be, required, in accordance with generally
accepted accounting principles, to be included as liabilities on a consolidated
balance sheet of the Borrower or its Consolidated Subsidiaries with respect to
all such transactions does not exceed $500,000,000; and

       (j)   any Lien securing obligations
owed by a Subsidiary to the Borrower or another Subsidiary.

      Section 5.13. Support
Agreement. The Borrower will cause the Support Agreement at all times to
remain in full force and effect without modification thereto, and will
diligently protect and enforce its rights thereunder.

      Section 5.14. Consolidations,
Mergers and Sales of Asset. The Borrower will not (i) consolidate or merge
with or into any other Person or (ii) sell, lease or otherwise
transfer, directly or indirectly, all or any substantial part of the assets of
the Borrower and its Subsidiaries, taken as a whole, to any other Person; provided
that the Borrower may permit any corporation to be merged into the Borrower or
may consolidate with or merge into or sell or otherwise (except by lease)
dispose of its assets as an entirety or substantially as an entirety to any
solvent corporation organized in the United States of America which is either
Textron or a Wholly-owned Subsidiary of Textron and which expressly
assumes in writing the due and punctual payment of the principal of and interest
on the Notes and the due and punctual performance of the obligations of the
Borrower hereunder and under the Notes, if (1) immediately thereafter the
Support Agreement shall be expressly reaffirmed in writing by Textron, (2) after
giving effect to such consolidation, merger or other disposition, no Default
shall have occurred and be continuing and (3) any such disposition shall not
release the corporation that originally executed this Agreement as the borrower
from its liability as obligor on the Notes, and provided further that this
Section 5.14 shall not prohibit any sale, lease or transfer, directly or
indirectly, of the Receivables and Receivables Related Assets (or interests
therein) of the Borrower or its Subsidiaries in connection with any
Securitization Transaction.

      Section 5.15. Use
of Proceeds. The proceeds of the Loans made under this Agreement will be
used by the Borrower for its general corporate purposes. None of such proceeds
will be used, directly or indirectly, for the purpose, whether immediate,
incidental or ultimate, of buying or carrying any "margin stock"
within the meaning of Regulation U.

      Section 5.16.  Subsidiary
Debt. The aggregate Debt (excluding Debt owed to the Borrower or a
Wholly-Owned Subsidiary) of any Subsidiaries organized under the laws of
the United States or any state thereof shall not exceed the greater of (i)
$100,000,000 or (ii) 20% of Consolidated Net Worth.

ARTICLE 6

Defaults

      Section 6.1. Events
of Default. If one or more of the following events ("Events of
Default") shall have occurred and be continuing:

       (a)
  the Borrower shall fail to pay
when due any principal of any Loan, or shall fail to pay within three Domestic
Business Days of the due date thereof, any interest, fees or any other amount
payable hereunder;

       (b)
  the Borrower shall fail to
observe or perform any covenant contained in Sections 5.08 to 5.16, inclusive,
for five consecutive Domestic Business Days;

       (c)   the Borrower shall fail to
observe or perform any covenant or agreement contained in this Agreement (other
than those covered by clause (a) or (b) above) for 30 days after notice thereof
has been given to the Borrower by the Administrative Agent at the request of the
Required Banks;

       (d)   any representation, warranty,
certification or statement made by the Borrower in this Agreement or in any
certificate, financial statement or other document delivered pursuant to this
Agreement shall prove to have been incorrect in any material respect when made
(or deemed made);

       (e)   the Borrower or any Subsidiary
shall fail to make any payment in respect of any Material Debt when due or
within any applicable grace period;

       (f)   any event or condition shall
occur which results in the acceleration of the maturity of any Material Debt or
enables the holder of such Debt or any Person acting on such holder's
behalf to accelerate the maturity thereof;

       (g)   the Borrower shall cease to
have 100% of its common stock owned directly or indirectly by Textron, except by
reason of a merger with Textron permitted by Section 5.14;

       (h)   the Support Agreement shall
cease to be in full force and effect for any reason or Textron shall seek to
deny its obligations thereunder;

       (i)   Textron, the Borrower or any
Subsidiary of the Borrower (except for a Special Purpose Subsidiary) shall
commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, or shall consent
to any such relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced against it, or
shall make a general assignment for the benefit of creditors, or shall fail
generally or admit its inability to pay its debts as they become due, or shall
take any corporate action to authorize any of the foregoing;

       (j)   an involuntary case or other
proceeding shall be commenced against Textron, the Borrower or any Subsidiary of
the Borrower (except for a Special Purpose Subsidiary) seeking liquidation,
reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for a
period of 60 days; or an order for relief shall be entered against Textron, the
Borrower or any Subsidiary (except for a Special Purpose Subsidiary) under the
federal bankruptcy laws as now or hereafter in effect;

       (k)   the Borrower or any of its
ERISA Affiliates shall terminate or suffer the termination of (by action of the
Pension Benefit Guaranty Corporation or any successor thereto) any Pension Plan,
or shall suffer the appointment of or the institution of proceedings to appoint
a trustee to administer any Pension Plan, or shall withdraw (under Section 4063
of ERISA) from a Pension Plan, if as of the date thereof or any subsequent date
the sum of the Borrower's and each ERISA Affiliate's liabilities
to the Pension Benefit Guaranty Corporation or any other Person under Sections
4062, 4063, 4064 and 4069 of ERISA (calculated after giving effect to the tax
consequences thereof) resulting from or otherwise associated with the
above-described events exceeds $50,000,000;

       (l)   the Borrower or any of its
ERISA Affiliates shall withdraw from any Multiemployer Plan and the aggregate
amount of withdrawal liability (determined pursuant to Sections 4201 et seq. of
ERISA) to which the Borrower and its ERISA Affiliates become obligated to all
Multiemployer Plans requires annual payments in excess of $5,000,000; or

       (m)   a judgment or order for the
payment of money in excess of $50,000,000 shall be rendered against the Borrower
or any Subsidiary and such judgment or order shall continue unsatisfied and
unstayed for a period of 10 days; then, and in every such event, the
Administrative Agent shall (i) if requested by Banks having more than 50% in
aggregate amount of the Commitments, by notice to the Borrower terminate the
Commitments and they shall thereupon terminate, and (ii) if requested by Banks
holding more than 50% in aggregate principal amount of the Loans, by notice to
the Borrower declare the Loans (together with accrued interest thereon and all
other amounts owing hereunder) to be, and the Loans and all such amounts shall
thereupon become, immediately due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Borrower; provided that in the case of any of the Events of Default
specified in clause (i) or (j) above with respect to the Borrower, automatically
without any notice to the Borrower or any other act by the Administrative Agent
or the Banks, the Commitments shall thereupon terminate and the Loans (together
with accrued interest thereon and all other amounts owing hereunder) shall
become immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrower.

      Section 6.2. Notice
of Default. The Administrative Agent shall give notice to the Borrower under
Section 6.01(c) promptly upon being requested to do so by the Required Banks and
shall thereupon notify all the other Banks thereof.

ARTICLE 7

The Agents

      Section 7.1. Appointment
and Authorization. Each Bank irrevocably appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement and the Notes as are delegated to the
Administrative Agent by the terms hereof or thereof, together with all such
powers as are reasonably incidental thereto.

      Section 7.2. Administrative
Agent and Affiliates. JPMorgan Chase Bank shall have the same rights and
powers under this Agreement as any other Bank and may exercise or refrain from
exercising the same as though it were not the Administrative Agent, and JPMorgan
Chase Bank and its affiliates may accept deposits from, lend money to, and
generally engage in any kind of business with the Borrower or any Subsidiary or
affiliate of the Borrower as if it were not the Administrative Agent hereunder.

      Section 7.3. Action
by Administrative Agent. The obligations of the Administrative Agent
hereunder are only those expressly set forth herein. Without limiting the
generality of the foregoing, the Administrative Agent shall not be required to
take any action with respect to any Default, except as expressly provided in
Article 6.

      Section 7.4. Consultation
with Experts. The Administrative Agent may consult with legal counsel (who
may be counsel for the Borrower), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

      Section 7.5. Liability
of Administrative Agent. Neither the Administrative Agent nor any of its
affiliates nor any of their respective directors, officers, agents, or employees
shall be liable for any action taken or not taken by it in connection herewith (i)
with the consent or at the request of the Required Banks or such other number of
Banks as may be expressly required hereunder or (ii) in the absence of its own
gross negligence or willful misconduct. Neither the Administrative Agent nor any
of its affiliates nor any of their respective directors, officers, agents or
employees shall be responsible for or have any duty to ascertain, inquire into
or verify (i) any statement, warranty or representation made in connection with
this Agreement or any borrowing hereunder; (ii) the performance or observance of
any of the covenants or agreements of the Borrower; (iii) the satisfaction of
any condition specified in Article 3, except receipt of items required to be
delivered to the Administrative Agent; or (iv) the validity, effectiveness or
genuineness of this Agreement, the Notes or any other instrument or writing
furnished in connection herewith. The Administrative Agent shall not incur any
liability by acting in reliance upon any notice, consent, certificate,
statement, or other writing (which may be a bank wire, telex, facsimile
transmission or similar writing) believed by it to be genuine or to be signed by
the proper party or parties.

      Section 7.6. Indemnification.
Each Bank shall, ratably in accordance with its Commitment, indemnify the
Administrative Agent, its affiliates and their respective directors, officers,
agents and employees (to the extent not reimbursed by the Borrower) against any
cost, expense (including reasonable counsel fees and disbursements), claim,
demand, action, loss or liability (except such as result from such indemnitees'
gross negligence or willful misconduct) that such indemnitees may suffer or
incur in connection with this Agreement or any action taken or omitted by such
indemnitees hereunder.

      Section 7.7. Credit
Decision. Each Bank acknowledges that it has, independently and without
reliance upon any Agent or any other Bank, 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 Bank also acknowledges that it will,
independently and without reliance upon any Agent or any other Bank, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking any action
under this Agreement.

      Section 7.8. Successor
Administrative Agent. The Administrative Agent may resign at any time by
giving notice thereof to the Banks and the Borrower. Upon any such resignation,
the Required Banks shall have the right to appoint a successor Administrative
Agent. If no successor Administrative Agent shall have been so appointed by the
Required Banks, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent gives notice of resignation, then the retiring
Administrative Agent may, on behalf of the Banks, appoint a successor
Administrative Agent, which shall be a commercial bank organized or licensed
under the laws of the United States of America or of any State thereof and
having a combined capital and surplus of at least $50,000,000. Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder. After any retiring Administrative
Agent's resignation hereunder as Administrative Agent, the provisions of
this Article shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent.

      Section 7.9. Agents'
Fees. The Borrower shall pay to each Agent for its own account fees in the
amounts and at the times previously agreed upon between the Borrower and such
Agent.

      Section 7.10. Other
Agents. Nothing in this Agreement shall impose any duty or liability
whatsoever on any of the Syndication Agents in such capacity.

ARTICLE 8

Change in Circumstances

      Section 8.1. Basis
for Determining Interest Rate Inadequate or Unfair. If on or prior to the
first day of any Interest Period for any Euro-Dollar Loan or Competitive
Bid LIBOR Loan:

  
           (a)   the Administrative Agent
    is advised by the Reference Banks that deposits in dollars (in the
    applicable amounts) are not being offered to the Reference Banks in the
    relevant market for such Interest Period, or

           (b)   in the case of a
    Euro-Dollar Loan, Banks having 50% or more of the aggregate amount
    of the Commitments advise the Administrative Agent that the London Interbank
    Offered Rate as determined by the Administrative Agent will not adequately
    and fairly reflect the cost to such Banks of funding their
    Euro-Dollar Loans for such Interest Period, the Administrative Agent
    shall forthwith give notice thereof to the Borrower and the Banks, whereupon
    until the Administrative Agent notifies the Borrower that the circumstances
    giving rise to such suspension no longer exist, (i) the obligations of the
    Banks to make Euro-Dollar Loans, or to continue to convert
    outstanding Loans as or into Euro-Dollar Loans shall be suspended
    and (ii) each outstanding Euro-Dollar Loan shall be converted into a
    Base Rate Loan on the last day of the then current Interest Period
    applicable thereto. Unless the Borrower notifies the Administrative Agent at
    least two Domestic Business Days before the date of any affected Borrowing
    for which a Notice of Borrowing has previously been given that it elects not
    to borrow on such date, (i) if such affected Borrowing is a
    Euro-Dollar Borrowing, such Borrowing shall instead be made as a
    Base Rate Borrowing and (ii) if such affected Borrowing is a
    Competitive Bid LIBOR Borrowing, the Competitive Bid LIBOR Loans comprising
    such Borrowing shall bear interest for each day from and including the first
    day to but excluding the last day of the Interest Period applicable thereto
    at the Base Rate for such day.

  

      Section 8.2. Illegality.
If, on or after the date of this Agreement, the adoption of any applicable law,
rule or regulation, or any change therein, or any change in any applicable law,
rule or regulation, or any change in the interpretation or Administrative
thereof by any governmental authority, central bank or comparable agency charged
with the interpretation or Administrative thereof, or compliance by any Bank (or
its Euro-Dollar Lending Office) with any request or directive (whether
or not having the force of law) of any such authority, central bank or
comparable agency shall make it unlawful or impossible for any Bank (or its
Euro-Dollar Lending Office) to make, maintain or fund its
Euro-Dollar Loans and such Bank shall so notify the Administrative
Agent, the Administrative Agent shall forthwith give notice thereof to the other
Banks and the Borrower, whereupon until such Bank notifies the Borrower and the
Administrative Agent that the circumstances giving rise to such suspension no
longer exist, the obligation of such Bank to make Euro-Dollar Loans, or
to convert outstanding Loans into Euro-Dollar Loans or continue
outstanding Loans as Euro-Dollar Loans, shall be suspended. Before
giving any notice to the Administrative Agent pursuant to this Section, such
Bank shall designate a different Euro-Dollar Lending Office if such
designation will avoid the need for giving such notice and will not, in the
judgment of such Bank, be otherwise disadvantageous to such Bank. If such notice
is given, each Euro-Dollar Loan of such Bank then outstanding shall be
converted into a Base Rate Loan either (i) on the last day of the then current
Interest Period applicable to such Euro-Dollar Loan if such Bank may
lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan
to such day or (ii) immediately if such Bank shall determine that it may not
lawfully continue to maintain and fund any such Loan as a Euro-Dollar
Loan to such day. Interest and principal on any such Base Rate Loan shall be
payable on the same dates as, and on a pro rata basis with, the interest and
principal payable on the related Euro-Dollar Loans of the other Banks.

      Section 8.3. Increased
Cost and Reduced Return. (a) If on or after (x) the date hereof, in
the case of any Euro-Dollar Loan or any obligation to make
Euro-Dollar Loans or (y) the date of the related Competitive Bid Quote,
in the case of any Competitive Bid Loan, the adoption of any applicable law,
rule or regulation, or any change in any applicable law, rule or regulation, or
any change in the interpretation or Administrative thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
Administrative thereof, or compliance by any Bank (or its Applicable Lending
Office) with any request or directive (whether or not having the force of law)
of any such authority, central bank or comparable agency shall impose, modify or
deem applicable any reserve (including, without limitation, any such requirement
imposed by the Board of Governors of the Federal Reserve System, but excluding
with respect to any Euro-Dollar Loan any such requirement with respect
to which such Bank is entitled to compensation during the relevant Interest
Period under Section 2.16), special deposit, insurance assessment or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Bank (or its Applicable Lending Office) or shall impose on any
Bank (or its Applicable Lending Office) or on the London interbank market any
other condition affecting its Fixed Rate Loans, its Note or its obligation to
make Fixed Rate Loans; and the result of any of the foregoing is to increase the
cost to such Bank (or its Applicable Lending Office) of making or maintaining
any Fixed Rate Loan, or to reduce the amount of any sum received or receivable
by such Bank (or its Applicable Lending Office) under this Agreement or under
its Note with respect thereto, by an amount deemed by such Bank to be material,
then, within 15 days after demand by such Bank (with a copy to the
Administrative Agent), the Borrower shall pay to such Bank such additional
amount or amounts as will compensate such Bank for such increased cost or
reduction, provided that such compensation will be limited to (1) the period
commencing not more than 90 days prior to the date of such demand or (2) any
longer period of retroactive effect of any such adoption, change or requirement
for compliance if such demand is made 90 days or less after such adoption,
change or requirement for compliance.

       (b)   If any Bank shall have
determined that, after the date hereof, the adoption of any applicable law, rule
or regulation regarding capital adequacy, or any change in any such law, rule or
regulation, or any change in the interpretation or Administrative thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or Administrative thereof, or any request or directive regarding
capital adequacy (whether or not having the force of law) of any such authority,
central bank or comparable agency (including any determination by any such
authority, central bank or comparable agency that for purposes of capital
adequacy requirements, the Commitments hereunder do not constitute commitments
with an original maturity of one year or less), has or would have the effect of
reducing the rate of return on capital of such Bank (or its Parent) as a
consequence of such Bank's obligations hereunder to a level below that
which such Bank (or its Parent) could have achieved but for such adoption,
change, request or directive (taking into consideration its policies with
respect to capital adequacy) by an amount deemed by such Bank to be material,
then from time to time, within 15 days after demand by such Bank (with a copy to
the Administrative Agent), the Borrower shall pay to such Bank such additional
amount or amounts as will compensate such Bank (or its Parent) for such
reduction, provided that such compensation will be limited to (A) the period
commencing not more than 90 days prior to the date of such demand or (B) any
longer period of retroactive effect of any such adoption, change, request or
directive if such demand is made 90 days or less after such adoption, change,
request or directive.

       (c)   Each Bank will notify the
Borrower and the Administrative Agent of any event of which it has knowledge,
occurring after the date hereof, which will entitle such Bank to compensation
pursuant to this Section and will use its best efforts to designate a different
Applicable Lending Office if such designation will avoid the need for, or reduce
the amount of, such compensation and will not, in the judgment of such Bank, be
otherwise disadvantageous to such Bank. A certificate of any Bank claiming
compensation under this Section and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
manifest error. In determining such amount, such Bank may use any reasonable
averaging and attribution methods.

      Section 8.4. Taxes.
(a) For purposes of this Section 8.04, the following terms have the following
meanings:

       "Taxes"
means any and all present or future taxes, duties, levies, imposts, deductions,
charges or withholdings with respect to any payment by the Borrower pursuant to
this Agreement or under any Note, and all liabilities with respect thereto, excluding
(i) in the case of each Bank and the Administrative Agent, taxes imposed on its
income, and franchise or similar taxes imposed on it, by a jurisdiction under
the laws of which such Bank or the Administrative Agent (as the case may be) is
organized or in which its principal executive office is located or, in the case
of each Bank, in which its Applicable Lending Office is located and (ii) in the
case of each Bank, any United States withholding tax imposed on such payments
but only to the extent that such Bank is subject to United States withholding
tax at the time such Bank first becomes a party to this Agreement.

       "Other
Taxes" means any present or future stamp or documentary taxes and any
other excise or property taxes, or similar charges or levies, which arise from
any payment made pursuant to this Agreement or under any Note or from the
execution or delivery of, or otherwise with respect to, this Agreement or any
Note.

       (b)   Any and all payments by the
Borrower to or for the account of any Bank or the Administrative Agent hereunder
or under any Note shall be made without deduction for any Taxes or Other Taxes; provided
that, if the Borrower shall be required by law to deduct any Taxes or Other
Taxes from any such payments, (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 8.04) such Bank or the
Administrative Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions, (iii) the Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with applicable
law and (iv) the Borrower shall furnish to the Administrative Agent, at its
address referred to in Section 9.01, the original or a certified copy of a
receipt evidencing payment thereof.

       (c)   The Borrower agrees to
indemnify each Bank and the Administrative Agent for the full amount of Taxes or
Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or
asserted by any jurisdiction on amounts payable under this Section 8.04) paid by
such Bank or the Administrative Agent (as the case may be) and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto. This indemnification shall be paid within 15 days after such Bank or
the Administrative Agent (as the case may be) makes demand therefor.

       (d)   Each Bank organized under the
laws of a jurisdiction outside the United States, on or prior to the date of its
execution and delivery of this Agreement in the case of each Bank listed on the
signature pages hereof and on or prior to the date on which it becomes a Bank in
the case of each other Bank, and from time to time thereafter if requested in
writing by the Borrower (but only so long as such Bank remains lawfully able to
do so), shall provide the Borrower with Internal Revenue Service form
W-8BEN or W-8ECI, as appropriate, or any successor form
prescribed by the Internal Revenue Service, certifying that such Bank is
entitled to benefits under an income tax treaty to which the United States is a
party which exempts the Bank from United States withholding tax or reduces the
rate of withholding tax on payments of interest for the account of such Bank or
certifying that the income receivable pursuant to this Agreement is effectively
connected with the conduct of a trade or business in the United States.

       (e)   For any period with respect to
which a Bank has failed to provide the Borrower with the appropriate form
pursuant to Section 8.04(d) (unless such failure is due to a change in treaty,
law or regulation occurring subsequent to the date on which such form originally
was required to be provided), such Bank shall not be entitled to indemnification
under Section 8.04(b) or 8.04(c) with respect to Taxes imposed by the United
States; provided that if a Bank, which is otherwise exempt from or
subject to a reduced rate of withholding tax, becomes subject to Taxes because
of its failure to deliver a form required hereunder, the Borrower shall take
such steps as such Bank shall reasonably request to assist such Bank to recover
such Taxes.

       (f)
  If the Borrower is required to
pay additional amounts to or for the account of any Bank pursuant to this
Section 8.04, then such Bank will change the jurisdiction of its Applicable
Lending Office if, in the judgment of such Bank, such change (i) will eliminate
or reduce any such additional payment which may thereafter accrue and (ii) is
not otherwise disadvantageous to such Bank.

      Section 8.5. Base
Rate Loans Substituted for Affected Fixed Rate Loan. If (i) the obligation
of any Bank to make, or to continue or convert outstanding Loans as or to,
Euro-Dollar Loans has been suspended pursuant to Section 8.02 or (ii)
any Bank has demanded compensation under Section 8.03 or 8.04 with respect to
its Euro-Dollar Loans, and in any such case the Borrower shall, by at
least five Euro-Dollar Business Days' prior notice to such Bank
through the Administrative Agent, have elected that the provisions of this
Section shall apply to such Bank, then, unless and until such Bank notifies the
Borrower that the circumstances giving rise to such suspension or demand for
compensation no longer exist all Loans which would otherwise be made by such
Bank as (or continued as or converted to) Euro-Dollar Loans shall
instead be Base Rate Loans on which interest and principal shall be payable
contemporaneously with the related Euro-Dollar Loans of the other Banks.
If such Bank notifies the Borrower that the circumstances giving rise to such
suspension or demand for compensation no longer exist, the principal amount of
each such Base Rate Loan shall be converted into a Euro-Dollar Loan on
the first day of the next succeeding Interest Period applicable to any related
Euro-Dollar Loans of the other Banks.

      Section 8.6. Substitution
of Bank or Banks. If (i) the obligation of any Bank to make
Euro-Dollar Loans has been suspended pursuant to Section 8.02,
(ii) any Bank has demanded compensation under Section 8.03 or
(iii) any Bank has required the Borrower to pay additional interest
under Section 2.16, the Borrower shall have the right, with the assistance of
the Administrative Agent, to seek a mutually satisfactory substitute bank or
banks (which may be one or more of the Banks) to purchase the Note and assume
the Commitment of such Bank.

ARTICLE 9

Miscellaneous

      Section 9.1. Notices.
All notices, requests and other communications to any party hereunder shall be
in writing (including bank wire, telex, facsimile transmission or similar
writing) and shall be given to such party: (x) in the case of the Borrower or
the Administrative Agent, at its address, facsimile number or telex or telecopy
number set forth on the signature pages hereof, (y) in the case of any Bank, at
its address, facsimile number or telex or telecopy number set forth in its
Administrative Questionnaire or (z) in the case of any party, such other
address, facsimile number or telex or telecopy number as such party may
hereafter specify for the purpose by notice to the Administrative Agent and the
Borrower. Each such notice, request or other communication shall be effective
(i) if given by telex, when such telex is transmitted to the telex number
specified in this Section and the appropriate answerback is received, (ii) if
given by facsimile transmission, when transmitted to the facsimile number
specified in this Section and confirmation of receipt is received, (iii) if
given by mail, 72 hours after such communication is deposited in the mails with
first class postage prepaid, addressed as aforesaid or (iv) if given by any
other means, when received; provided that notices to the Administrative Agent
under Article 2 or Article 8 shall not be effective until received.

      Section 9.2. No
Waivers. No failure or delay by the Administrative Agent or any Bank in
exercising any right, power or privilege hereunder or under any Note shall
operate as a waiver thereof nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by law.

      Section 9.3. Expenses;
Indemnification. (a) The Borrower shall pay (i) all reasonable
out-of-pocket expenses of the Administrative Agent, including
fees and disbursements of special counsel for the Administrative Agent, in
connection with the preparation of this Agreement, any waiver or consent
hereunder or any amendment hereof or any Default or alleged Default hereunder
and (ii) if an Event of Default occurs, all out-of-pocket
expenses incurred by the Administrative Agent and each Bank, including, for the
Administrative Agent or any Bank, either the fees and disbursements of outside
counsel or the allocated cost of inside counsel in connection with such Event of
Default and collection, bankruptcy, insolvency and other enforcement proceedings
resulting therefrom.

       (b)   The Borrower agrees to
indemnify the Administrative Agent and each Bank, their respective affiliates
and the respective directors, officers, agents and employees of the foregoing
(each an "Indemnitee") and hold each Indemnitee harmless from
and against any and all liabilities, losses, damages, costs and expenses of any
kind, including, without limitation, the reasonable fees and disbursements of
counsel, which may be incurred by such Indemnitee in connection with any
investigative, administrative or judicial proceeding (whether or not such
Indemnitee shall be designated a party thereto) relating to or arising out of
(i) any actual or proposed use of proceeds of Loans hereunder or (ii) the actual
or alleged breach by the Borrower of any covenant in this Agreement or the
actual or alleged untruth or inaccuracy of any representation or warranty made
by the Borrower in or in connection with this Agreement; provided that no
Indemnitee shall have the right to be indemnified hereunder for its own gross
negligence or willful misconduct as determined by a court of competent
jurisdiction.

      Section 9.4. Set-Off.
Each Bank agrees that if it shall, by exercising any right of set-off or
counterclaim or otherwise, receive payment of a proportion of the aggregate
amount of principal and interest then due with respect to any Loans held by it
which is greater than the proportion received by any other Bank in respect of
the aggregate amount of principal and interest then due with respect to any
Loans held by such other Bank, the Bank receiving such proportionately greater
payment shall purchase such participations in the Loans held by the other Banks,
and such other adjustments shall be made, as may be required so that all such
payments of principal and interest with respect to the Loans held by the Banks
shall be shared by the Banks pro rata; provided that nothing in this
Section shall impair the right of any Bank to exercise any right of
set-off or counterclaim it may have and to apply the amount subject to
such exercise to the payment of indebtedness of the Borrower other than its
indebtedness under the Agreement. The Borrower agrees, to the fullest extent it
may effectively do so under applicable law, that any holder of a participation
in a Loan, whether or not acquired pursuant to the foregoing arrangements, may
exercise rights of set-off or counterclaim and other rights with respect
to such participation as fully as if such holder of a participation were a
direct creditor of the Borrower in the amount of such participation.

      Section 9.5. Amendments
and Waivers. Any provision of this Agreement or the Notes may be amended or
waived if, but only if, such amendment or waiver is in writing and is signed by
the Borrower and the Required Banks (and, if the rights or duties of the
Administrative Agent are affected thereby, by the Administrative Agent); provided
that no such amendment or waiver shall:

       (a)
  unless signed by all the
Banks, (i) increase or decrease the Commitment of any Bank (except for a ratable
decrease in the Commitments of all Banks) or subject any Bank to any additional
obligation, (ii) reduce the principal of or rate of interest on any Loan or any
fees hereunder, (iii) postpone the date fixed for any payment of principal of or
interest on any Loan or any fees hereunder or for termination of any Commitment,
(iv) change the percentage of the Commitments or of the aggregate unpaid
principal amount of the Notes, or the number of Banks, which shall be required
for the Banks or any of them to take any action under this Section or any other
provision of this Agreement, or (v) permit the Support Agreement to cease to be
in full force and effect or alter in any way the terms of the Support Agreement;
or

       (b)
  unless signed by a Designated
Lender or its Designating Bank, subject such Designated Lender to any additional
obligation or affect its rights hereunder (unless the rights of all the Banks
hereunder are similarly affected).

It is understood that the operation of Section 2.17 in accordance with its
terms is not an amendment subject to this Section 9.05.

      Section 9.6. 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, except that the Borrower may not assign or otherwise transfer any of
its rights under this Agreement without the prior written consent of all Banks.

      
(b)  Any Bank may at any time grant to one
or more banks or other institutions (each a "Participant")
participating interests in its Commitment or any or all of its Loans. In the
event of any such grant by a Bank of a participating interest to a Participant,
whether or not upon notice to the Borrower and the Administrative Agent, such
Bank shall remain responsible for the performance of its obligations hereunder,
and the Borrower and the Administrative Agent shall continue to deal solely and
directly with such Bank in connection with such Bank's rights and
obligations under this Agreement. Any agreement pursuant to which any Bank may
grant such a participating interest shall provide that such Bank shall retain
the sole right and responsibility to enforce the obligations of the Borrower
hereunder including, without limitation, the right to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such participation agreement may provide that such Bank will not agree to any
modification, amendment or waiver of this Agreement described in clause (i),
(ii) or (iii) of Section 9.05(a) without the consent of the Participant. The
Borrower agrees that each Participant shall, if and only if the Borrower shall
give its consent (which consent shall not be unreasonably withheld) to the
granting of a participating interest to it, be entitled to the benefits of
Section 2.16 and Article 8 with respect to such participating interest. An
assignment or other transfer which is not permitted by subsection (c) or (d)
below shall be given effect for purposes of this Agreement only to the extent of
a participating interest granted in accordance with this subsection (b).

       (c)  Any Bank may at any time
assign to one or more banks or other institutions (each an "Assignee")
all, or a proportionate part (equivalent to a Commitment of not less than
$5,000,000) of all, of its rights and obligations under this Agreement and the
Notes, and such Assignee shall assume such rights and obligations, pursuant to
an Assignment and Assumption Agreement in substantially the form of Exhibit G
hereto executed by such Assignee and such transferor Bank, with (and subject to)
the subscribed consent of the Borrower (but only so long as no Event of Default
has occurred and is then continuing) and the Administrative Agent, which
consents shall not be unreasonably withheld; provided that (i) if an
Assignee is a Bank or an affiliate of such transferor Bank, no such consent
shall be required; and (ii) such assignment may, but need not, include rights of
the transferor Bank in respect of outstanding Competitive Bid Loans. Upon
execution and delivery of such instrument and payment by such Assignee to such
transferor Bank of an amount equal to the purchase price agreed between such
transferor Bank and such Assignee, such Assignee shall be a Bank party to this
Agreement and shall have all the rights and obligations of a Bank with a
Commitment as set forth in such instrument of assumption, and the transferor
Bank shall be released from its obligations hereunder to a corresponding extent,
and no further consent or action by any party shall be required. Upon the
consummation of any assignment pursuant to this subsection (c), the transferor
Bank, the Administrative Agent and the Borrower shall make appropriate
arrangements so that, if required, a new Note is issued to the Assignee. In
connection with any such assignment, the transferor Bank shall pay to the
Administrative Agent an administrative fee for processing such assignment in the
amount of $3,000. If the Assignee is not incorporated under the laws of the
United States of America or a state thereof, it shall deliver to the Borrower
and the Administrative Agent certification as to exemption from deduction or
withholding of any United States federal income taxes in accordance with Section
8.04.

       (d)  Any Bank may at any time
assign all or any portion of its rights under this Agreement and its Note to a
Federal Reserve Bank. No such assignment shall release the transferor Bank from
its obligations hereunder.

       (e)  No Assignee, Participant or
other transferee of any Bank's rights and no Designated Lender
designated by any Designating Bank shall be entitled to receive any greater
payment under Section 8.03 or 8.04 than such Bank or Designating Bank would have
been entitled to receive with respect to the rights transferred, unless such
transfer is made with the Borrower's prior written consent or by reason
of the provisions of Section 8.02, 8.03, or 8.04 requiring such Bank to
designate a different Applicable Lending Office under certain circumstances or
at a time when the circumstances giving rise to such greater payment did not
exist.

      Section 9.7. Designated
Lenders. (a) Subject to the provisions of this Section 9.07(a), any Bank may
from time to time elect to designate an Eligible Designee to provide all or a
portion of the Loans to be made by such Bank pursuant to this Agreement; provided
that such designation shall not be effective unless the Borrower and the
Administrative Agent consent thereto, which consents shall not be unreasonably
withheld. When a Bank and its Eligible Designee shall have signed an agreement
substantially in the form of Exhibit H hereto (a "Designation Agreement")
and the Borrower and the Administrative Agent shall have signed their respective
consents thereto, such Eligible Designee shall become a Designated Lender for
purposes of this Agreement. The Designating Bank shall thereafter have the right
to permit such Designated Lender to provide all or a portion of the Loans to be
made by such Designating Bank pursuant to Section 2.01 or 2.03, and the making
of such Loans or portions thereof shall satisfy the obligation of the
Designating Bank to the same extent, and as if, such Loans or portion thereof
were made by the Designating Bank. As to any Loans or portion thereof made by
it, each Designated Lender shall have all the rights that a Bank making such
Loans or portion thereof would have had under this Agreement and otherwise; provided
that (x) its voting rights under this Agreement shall be exercised solely by the
Designating Bank and (y) its Designating Bank shall remain solely responsible to
the other parties hereto for the performance of its obligations under this
Agreement, including its obligations in respect of the Loans or portion thereof
made by it. No additional Note shall be required to evidence Loans or portions
thereof made by a Designated Lender; and the Designating Bank shall be deemed to
hold its Note as agent for its Designated Lender to the extent of the Loans or
portion thereof funded by such Designated Lender. Each Designating Bank shall
act as administrative agent for its Designated Lender and give and receive
notices and other communications on its behalf. Any payments for the account of
any Designated Lender shall be paid to its Designating Bank as administrative
agent for such Designated Lender and neither the Borrower nor the Administrative
Agent shall be responsible for any Designating Bank's application of
such payments. In addition, any Designated Lender may (i) with notice to, but
without the prior written consent of the Borrower or the Administrative Agent,
assign all or portions of its interest in any Loans to its Designating Bank or
to any financial institutions consented to by the Borrower and the
Administrative Agent providing liquidity and/or credit facilities to or for the
account of such Designated Lender to support the funding of Loans or portions
thereof made by such Designated Lender and (ii) disclose any non-public
information relating to its Loans or portions thereof to any rating agency,
commercial paper dealer or provider of any guarantee, surety, credit or
liquidity enhancement to such Designated Lender.

       (b)  Each party to this Agreement
agrees that it will not institute against, or join any other person in
instituting against, any Designated Lender any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding or other proceeding under any
federal or state bankruptcy or similar law, for one year and a day after all
outstanding senior indebtedness of such Designated Lender is paid in full. The
Designating Bank for each Designated Lender agrees to indemnify, save, and hold
harmless each other party hereto for any loss, cost, damage and expense arising
out of its inability to institute any such proceeding against such Designated
Lender. This Section 9.07(b) shall survive the termination of this Agreement.

      Section 9.8. Collateral.
Each of the Banks represents to each Agent and each of the other Banks that it
in good faith is not relying upon any "margin stock" (as defined in
Regulation U) as collateral in the extension or maintenance of the credit
provided for in this Agreement.

      Section 9.9. Governing
Law; Submission to Jurisdiction. This Agreement and each Note shall be
governed by and construed in accordance with the laws of the State of New York.
The Borrower hereby submits to the nonexclusive jurisdiction of the United
States District Court for the Southern District of New York and of any New York
State court sitting in New York City for purposes of all legal proceedings
arising out of or relating to this Agreement or the transactions contemplated
hereby. The Borrower irrevocably waives, to the fullest extent permitted by law,
any objection which it may now or hereafter have to the laying of the venue of
any such proceeding brought in such a court and any claim that any such
proceeding brought in such a court has been brought in an inconvenient forum.

      Section 9.10. Counterparts;
Integration. This Agreement may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. This Agreement constitutes the
entire agreement and understanding among the parties hereto and supersedes any
and all prior agreements and understandings, oral or written, relating to the
subject matter hereof.

      Section 9.11. WAIVER
OF JURY TRIAL. EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE BANKS
HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

      Section
9.12. Disclosure of Certain Tax Aspects. The Borrower,
each Bank and each Agent (and each employee, representative, or other agent of
each of the foregoing parties) may disclose to any and all Persons without
limitation of any kind, the purported or claimed U.S. federal income tax
treatment (the "U.S. Tax Treatment") and any fact that may be relevant
to understanding the purported or claimed U.S. federal income tax treatment (the
"U.S. Tax Structure") of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to any of the foregoing parties relating to such U.S. Tax Treatment and
U.S. Tax Structure.

      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.

	 	
      TEXTRON FINANCIAL CORPORATION

      

      

      By:

	 	 	
      Name:

	 	 	
      Title:

	 	 	
      Address:
	
      40 Westminster Street

      P.O. Box 6687

      Providence, RI 02940-6687

    
	 	 	
      Telecopy number: (401) 621-5045

 

	 	
      JPMORGAN CHASE BANK

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

	 	
      BANK OF AMERICA, N.A.

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

	 	
      BANK ONE, NA

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      CITIBANK, N.A.

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      DEUTSCHE BANK AG NEW YORK BRANCH

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      BANK OF TOKYO-MITSUBISHI TRUST COMPANY

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

	 	
      BARCLAYS BANK PLC

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

	 	
      CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      FLEET NATIONAL BANK

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      MERRILL LYNCH BANK USA

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      UBS AG, CAYMAN ISLANDS BRANCH

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

	 	
      WACHOVIA BANK, N.A.

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      BMO NESBITT BURNS FINANCING,
           INC.

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      THE BANK OF NOVA SCOTIA

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      THE BANK OF NEW YORK

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      BNP PARIBAS

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

	 	
      HSBC BANK USA

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

	 	
      ROYAL BANK OF CANADA

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

	 	
      SOCIETE GENERALE

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

	 	
      SUNTRUST BANK

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

		
    
	 	
      MELLON BANK, N.A.

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

	 	
      JPMORGAN CHASE BANK,

      as Administrative Agent

      

      

      By:

	 	 	
      Name:

	 	 	
      Title:

	 	 	
      Address:
	
      270 Park Avenue

      New York, NY 10017

	 	 	
      Attention:

	 	 	
      Telecopy number:

COMMITMENT SCHEDULE

  
	
       

      
      Bank
	
      Commitment

	
      JPMorgan Chase Bank
	
      $40,000,000.00

	
      Bank of America, N.A.
	
      $33,333,333.33

	
      Bank One, NA
	
      $33,333,333.33

	
      Citibank, N.A.
	
      $33,333,333.33

	
      Deutsche Bank AG New York Branch
	
      $33,333,333.33

	
      Bank of Tokyo - Mitsubishi Trust Company
	
      $26,666,666.67

	
      Barclays Bank PLC
	
      $26,666,666.67

	
      Credit Suisse First Boston, acting through its Cayman Islands Branch
	
      $26,666,666.67

	
      Fleet National Bank
	
      $26,666,666.67

	
      Merrill Lynch Bank USA
	
      $26,666,666.67

	
      UBS AG, Cayman Islands Branch
	
      $26,666,666.67

	
      Wachovia Bank, N.A.
	
      $26,666,666.67

	
      BMO Nesbitt Burns Financing, Inc.
	
      $21,666,666.66

	
      The Bank of Nova Scotia
	
      $21,666,666.66

	
      The Bank of New York
	
      $15,000,000.00

	
      BNP Paribas
	
      $15,000,000.00

	
      HSBC Bank USA
	
      $15,000,000.00

	
      Royal Bank of Canada
	
      $15,000,000.00

	
      Societe Generale
	
      $15,000,000.00

	
      SunTrust Bank
	
      $15,000,000.00

	
      Mellon Bank, N.A.
	
      $6,666,666.67

	
      Total
	
      $500,000,000.00

  

 

PRICING SCHEDULE

 

      Each of "Facility
Fee Rate" and "Euro-Dollar Margin" means, for
any date, the rate set forth below in the row opposite such term and in the row
corresponding to the "Utilization" at such date and under the
column corresponding to the "Pricing Level" at such date; provided
that the Euro-Dollar Margin for any day on or after the Termination Date
will be the applicable rate set forth below plus 25 basis points:

	
       

    	
      Level I
	
      Level II
	
      Level III
	
      Level IV
	
      Level V
	
      Level VI

	
      Facility Fee Rate
	
      0.06%
	
      0.07%
	
      0.08%
	
      0.100%
	
      0.125%
	
      0.15%

	
      Euro-Dollar Margin

        Utilization < 50%

        Utilization > 50%

    	
       

      0.19%

      0.44%

    	
      

      0.23%

      0.48%

    	
      

      0.295%

      0.545%

    	
       

      0.40%

      0.65%

    	
       

      0.625%

      0.875%

    	
      

      0.85%

      1.10%

    

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

       "Level I
Pricing" applies at any date if, at such date, the Borrower's
long-term debt is rated (i) A+ or higher by S&P or
(ii) A1 or higher by Moody's.

       "Level
II Pricing" applies at any date if, at such date,
(i) (A) the Borrower's long-term debt is rated
A or higher by S&P or (B) A2 or higher by Moody's
and (ii) Level I Pricing does not apply.

       "Level
III Pricing" applies at any date if, at such date,
(i) (A) the Borrower's long-term debt is rated
A- or higher by S&P or (B) A3 or better by
Moody's and (ii) neither Level I Pricing nor Level II Pricing
applies.

       "Level
IV Pricing" applies at any date, if at such date,
(i) (A) the Borrower's long-term debt is rated
BBB+ or higher by S&P or (B) Baa1 or higher by
Moody's and (ii) none of Level I Pricing, Level II Pricing and
Level III Pricing applies.

       "Level V
Pricing" applies at any date if, at such date,
(i) (A) the Borrower's long-term debt is rated
BBB or higher by S&P or (B) Baa2 or higher by
Moody's and (ii) none of Level I Pricing, Level II Pricing, Level III
and Level IV Pricing applies.

       "Level
VI Pricing" applies at any date if, at such date, no other Pricing
Level applies.

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

       "Pricing
Level" refers to the determination of which of Level I, Level II, Level
III, Level IV, Level V or Level VI applies at any date.

       "S&P"
means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc.

       "Utilization"
means, at any date, the percentage equivalent of a fraction (i) the numerator of
which is the aggregate outstanding principal amount of the Loans at such date
(after giving effect to any borrowing or payment on such date) and the
denominator of which is the aggregate amount of the Commitments at such date
(after giving effect to any reduction on such date). If for any reason any Loans
remain outstanding after termination of the Commitments, Utilization shall be
deemed to be 100%.

      The credit
ratings to be utilized for purposes of this Schedule are those assigned to the
senior unsecured long-term debt securities of the Borrower without
third-party enhancement (other than the Textron Inc. Support Agreement),
and any rating assigned to any other debt security of the Borrower shall be
disregarded. The rating in effect at any date is that in effect at the close of
business of such date.

      If the Borrower
is split-rated and the ratings differential is one level, the higher of
the two ratings will apply (e.g. A+/A2 results in Level I Pricing and
A-/Baa1 results in Level III Pricing). If the Borrower is
split-rated and the ratings differential is two levels or more, the
average of the two ratings (or the higher of two intermediate ratings) shall be
used (e.g. A+/Baa1 results in Level II Pricing and A/BBB+ results in
Level III Pricing).

EXHIBIT A

NOTE

New York, New York

July 28, 2003

      For value
received, Textron Financial Corporation, a Delaware corporation (the "Borrower"),
promises to pay to the order of _________________________ (the "Bank"),
for the account of its Applicable Lending Office, the unpaid principal amount of
each Loan made by the Bank to the Borrower pursuant to the Credit Agreement
referred to below on the maturity date provided for in the Credit Agreement. The
Borrower promises to pay interest on the unpaid principal amount of each such
Loan on the dates and at the rate or rates provided for in the Credit Agreement.
All such payments of principal and interest shall be made in lawful money of the
United States in Federal or other immediately available funds at the office of
JPMorgan Chase Bank, 270 Park Avenue, New York, New York.

      All Loans made by
the Bank, the respective types and maturities thereof and all repayments of the
principal thereof shall be recorded by the Bank and, if the Bank so elects in
connection with any transfer or enforcement hereof, appropriate notations to
evidence the foregoing information with respect to each such Loan then
outstanding may be endorsed by the Bank on the schedule attached hereto, or on a
continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

      This note is one
of the Notes referred to in the 364-Day Credit Agreement dated as of
July 28, 2003 among the Borrower, the Banks listed on the signature pages
thereof and JPMorgan Chase Bank, as Administrative Agent (as the same may be
amended from time to time, the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the prepayment
hereof and the acceleration of the maturity hereof.

	 	
      TEXTRON FINANCIAL CORPORATION

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

 

LOANS AND PAYMENTS OF PRINCIPAL

 

  
	
       

      
      Date
	
      

      Amount of Loan
	
      

      

      Type of Loan
	
      Amount of Principal Repaid
	
      

      Maturity Date
	
      

      Notation Made By

	
       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

  

 

 

 

     EXHIBIT B

FORM OF COMPETITIVE BID QUOTE REQUEST

     [Date]

To:     JPMorgan Chase Bank

     (the "Administrative
Agent")

From:     Textron Financial
Corporation

  
    Re:     364-Day
    Credit Agreement (as the same may be amended from time to time, the "Credit
    Agreement") dated as of July 28, 2003 among the Borrower, the Banks
    parties thereto and the Administrative Agent

  

           We
hereby give notice pursuant to Section 2.03 of the Credit Agreement that we
request Competitive Bid Quotes for the following proposed Competitive Bid
Borrowing(s):

           Date
of Borrowing: __________________

 

  
	
      Principal Amount*
	 	
      Interest Period**

	
      $
	 	 

  

           Such
Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute Rate].
[The applicable base rate is the London Interbank Offered Rate.]

           Terms
used herein have the meanings assigned to them in the Credit Agreement.

	 	
      TEXTRON FINANCIAL CORPORATION

	 	 
	 	
      By:

	 	 	
      Name

	 	 	
      Title

 

____________________

         *
Amount must be $25,000,000 or a larger multiple of $1,000,000.

        **
Not less than one month (LIBOR Auction) or not less than 7 days
(Absolute Rate Auction), subject to the provisions of the definition of Interest
Period.

 

EXHIBIT C

 

FORM OF INVITATION FOR COMPETITIVE BID QUOTES

To:     [Name of Bank]

Re:     Invitation for
Competitive Bid Quotes to Textron Financial Corporation

           (the
"Borrower")

         Pursuant
to Section 2.03 of the 364-Day Credit Agreement dated as of July 28,
2003 among the Borrower, the Banks parties thereto and the undersigned, as
Administrative Agent, as the same may be amended from time to time, we are
pleased on behalf of the Borrower to invite you to submit Competitive Bid Quotes
to the Borrower for the following proposed Competitive Bid Borrowing(s):

         Date
of Borrowing: __________________

 

  
	
      Principal Amount
	 	
      Interest Period

	
      $
	 	 

  

         Such
Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute Rate].
[The applicable base rate is the London Interbank Offered Rate.]

         Please
respond to this invitation by no later than [2:00 P.M.] [9:30 A.M.] (New York
City time) on [date].

	 	
      JPMORGAN CHASE BANK, as

      Administrative Agent

	 	 
	 	
      By:

	 	
      Authorized Officer

 

EXHIBIT D

 

FORM OF Competitive Bid QUOTE

 

To:     JPMorgan Chase Bank, as
Administrative Agent

Re:     Competitive Bid Quote to
Textron Financial Corporation

(the "Borrower")

         In
response to your invitation on behalf of the Borrower dated ________, ____, we
hereby make the following Competitive Bid Quote on the following terms:

  1.   Quoting Bank:
________________________________

2.   Person to contact at
Quoting Bank: _________________________

  3.   Date of Borrowing:
____________________*

4.   We hereby offer to make
Competitive Bid Loan(s) in the following principal amounts, for the following
Interest Periods and at the following rates:

 

  
	
      Principal Amount**
	
      Interest

      Period***

    	
      Competitive Bid [Margin****]
	
      [Absolute Rate*****]

	
      $
	 	 	 

  

___________________

         *
As specified in the related Invitation.

         **
Principal amount bid for each Interest Period may not exceed principal amount
requested. Specify aggregate limitation if the sum of the individual offers
exceeds the amount the Bank is willing to lend. Bids must be made for $5,000,000
or a larger multiple of $1,000,000.

         ***
Not less than one month or not less than 7 days, as specified in the related
Invitation. No more than five bids are permitted for each Interest Period.

         ****
Margin over or under the London Interbank Offered Rate determined for the
applicable Interest Period. Specify percentage (to the nearest 1/10,000 of 1%)
and specify whether "PLUS" or "MINUS".

         *****
Specify rate of interest per annum (to the nearest 1/10,000th of 1%).

 

  
	
      $
	 	 	 

  

         
[Provided, that the aggregate principal amount of Competitive Bid Loans for
which the above offers may be accepted shall not exceed $____________.]**

         We
understand and agree that the offer(s) set forth above, subject to the
satisfaction of the applicable conditions set forth in the 364-Day
Credit Agreement dated as of July 28, 2003 among the Borrower, the Banks parties
thereto and yourselves, as Administrative Agent, as the same may be amended from
time to time, irrevocably obligates us to make the Competitive Bid Loan(s) for
which any offer(s) are accepted, in whole or in part.

	 	
      Very truly yours,

	 	 
	 	
      [NAME OF BANK]

	 	 
	 	 
	
      Dated:_______
	 	
      By:
	
       

    
	 	 	 	
      Authorized Officer

 

 

 

EXHIBIT E

 

OPINION OF COUNSEL FOR THE BORROWER

 

To the Banks and the Administrative Agent

   Referred to Below

c/o JPMorgan Chase Bank, as Administrative Agent

270 Park Avenue

New York, New York 10017

Dear Sirs:

         I
am [General Counsel] [Assistant General Counsel] of Textron Financial
Corporation (the "Borrower") and am delivering this opinion in
connection with the 364-Day Credit Agreement (the "Credit
Agreement") dated as of July 28, 2003 among the Borrower, the banks
listed on the signature pages thereof and JPMorgan Chase Bank, as Administrative
Agent, the Subordination Agreement (the "Subordination Agreement")
dated as of August 21, 1991 between the Borrower and Textron Inc., and the
Support Agreement (the "Support Agreement") dated as of May 25,
1994 between the Borrower and Textron Inc.. Terms defined in the Credit
Agreement are used herein as therein defined. This opinion is being rendered to
you at the request of our client pursuant to Section 3.01(c) of the Credit
Agreement.

         We
have examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as we have deemed necessary or advisable for purposes of this
opinion. As to the opinion expressed below relating to the existence,
qualification and good standing of any corporation or other entity in any
jurisdiction, this opinion relies solely upon and is limited by those
certificates and telegraphic and telephonic confirmations given by public
officials and assumes the same to have been properly given and to be accurate.

         Upon
the basis of the foregoing, I am of the opinion that:

            1.
     The Borrower is a corporation
duly incorporated, validly existing and in good standing under the laws of
Delaware, and has all corporate powers and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now
conducted.

            2.
     The execution, delivery and
performance by the Borrower of the Credit Agreement, the Subordination
Agreement, the Support Agreement and the Notes are within the Borrower's
corporate powers, have been duly authorized by all necessary corporate action,
require no action by or in respect of, or filing with, any governmental body,
agency or official and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the certificate of incorporation
or by-laws of the Borrower or of any agreement, judgment, injunction,
order, decree or other instrument binding upon the Borrower or any of its
Subsidiaries or result in the creation or imposition of any Lien on any asset of
the Borrower or any of its Subsidiaries.

            3.
     The Credit Agreement, the
Subordination Agreement and Support Agreement constitute valid and binding
agreements of the Borrower and each Note constitutes a valid and binding
obligation of the Borrower, in each case enforceable in accordance with its
terms, except as the same may be limited by bankruptcy, insolvency or similar
laws affecting creditors' rights generally and by general principles of
equity.

            4.
     There is no action, suit or
proceeding pending against, or to the best of our knowledge threatened against
or affecting, the Borrower or any of its Subsidiaries before any court or
arbitrator or any governmental body, agency or official, in which there is a
reasonable possibility of an adverse decision which could materially adversely
affect the business, consolidated financial position or consolidated results of
operations of the Borrower and its Consolidated Subsidiaries, considered as a
whole or which in any manner draws into question the validity of the Credit
Agreement, the Subordination Agreement, the Support Agreement or the Notes.

            5.
     Each of the Borrower's
corporate Subsidiaries is a corporation validly existing and in good standing
under the laws of its jurisdiction of incorporation, and has all corporate
powers and all material governmental licenses, authorizations, consents and
approvals required to carry on its business as now conducted.

            I
am a member of the bar of the State of Rhode Island and do not purport to
express any opinion herein concerning any laws other than the laws of the State
of Rhode Island, the corporate laws of the State of Delaware and the federal
laws of the United States of America as in effect on the date hereof.

	 	
      Very truly yours,

 

EXHIBIT F

OPINION OF DAVIS POLK & WARDWELL,

SPECIAL COUNSEL FOR THE ADMINISTRATIVE AGENT

 

To the Banks and the Administrative Agent

   Referred to Below

c/o JPMorgan Chase Bank, as Administrative Agent

270 Park Avenue

New York, New York 10017

Dear Sirs:

         We
have participated in the preparation of the 364-Day Credit Agreement
(the "Credit Agreement") dated as of July 28, 2003 among
Textron Financial Corporation, a Delaware corporation (the "Borrower"),
the banks listed on the signature pages thereof (the "Banks")
and JPMorgan Chase Bank, as Administrative Agent (the "Administrative
Agent"), and have acted as special counsel for the Administrative Agent
for the purpose of rendering this opinion pursuant to Section 3.01(d) of the
Credit Agreement. Terms defined in the Credit Agreement are used herein as
therein defined.

We have examined originals or copies, certified or otherwise identified to
our satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as we have deemed necessary or advisable for purposes of this
opinion.

         Upon
the basis of the foregoing, we are of the opinion that:

         1.
     The execution, delivery and
performance by the Borrower of the Credit Agreement and the Notes are within the
Borrower's corporate powers and have been duly authorized by all
necessary corporate action.

         2.
     The Credit Agreement
constitutes a valid and binding agreement of the Borrower and each Note
constitutes a valid and binding obligation of the Borrower, in each case
enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency or similar laws affecting creditors' rights
generally and by general principles of equity.

         We
are members of the Bar of the State of New York and the foregoing opinion is
limited to the laws of the State of New York, the federal laws of the United
States of America and the General Corporation Law of the State of Delaware. In
giving the foregoing opinion, we express no opinion as to the effect (if any) of
any law of any jurisdiction (except the State of New York) in which

any Bank is located which limits the rate of interest that such Bank may
charge or collect.

         This
opinion is rendered solely to you in connection with the above matter. This
opinion may not be relied upon by you for any other purpose or relied upon by
any other person without our prior written consent.

	 	
      Very truly yours,

 

EXHIBIT G

ASSIGNMENT AND ASSUMPTION AGREEMENT

          AGREEMENT
dated as of _________, ____ among [ASSIGNOR] (the "Assignor"),
[ASSIGNEE] (the "Assignee"), TEXTRON FINANCIAL CORPORATION (the
"Borrower") and JPMORGAN CHASE BANK, as Administrative Agent
(the "Administrative Agent").

W I T N E S S E T H

         WHEREAS,
this Assignment and Assumption Agreement (the "Agreement")
relates to the 364-Day Credit Agreement dated as of July 28, 2003 among
the Borrower, the Assignor and the other Banks party thereto, as Banks, and the
Administrative Agent (as the same may be amended from time to time, the "Credit
Agreement");

         WHEREAS,
as provided under the Credit Agreement, the Assignor has a Commitment to make
Committed Loans to the Borrower in an aggregate principal amount at any time
outstanding not to exceed $__________;

         WHEREAS,
Committed Loans made to the Borrower by the Assignor under the Credit Agreement
in the aggregate principal amount of $__________ are outstanding at the date
hereof; and

         WHEREAS,
the Assignor proposes to assign to the Assignee all of the rights of the
Assignor under the Credit Agreement in respect of a portion of its Commitment
thereunder in an amount equal to $__________* (the "Assigned
Amount"), together with a corresponding portion of its outstanding
Committed Loans, and the Assignee proposes to accept assignment of such rights
and assume the corresponding obligations from the Assignor on such terms;

         NOW,
THEREFORE, in consideration of the foregoing and the mutual agreements contained
herein, the parties hereto agree as follows:

Section 1. Definitions. All capitalized terms not otherwise defined
herein shall have the respective meanings set forth in the Credit Agreement.

____________________

* Minimum $5,000,000

         Section
2. Assignment. Assignor hereby assigns and sells to the Assignee all of
the rights of the Assignor under the Credit Agreement to the extent of the
Assigned Amount, and the Assignee hereby accepts such assignment from the
Assignor and assumes all of the obligations of the Assignor under the Credit
Agreement to the extent of the Assigned Amount, including the purchase from the
Assignor of the corresponding portion of the principal amount of the Committed
Loans made by the Assignor outstanding at the date hereof. Upon the execution
and delivery hereof by the Assignor, the Assignee, the Borrower and the
Administrative Agent and the payment of the amounts specified in
Section 3 required to be paid on the date hereof (i) the Assignee
shall, as of the date hereof, succeed to the rights and be obligated to perform
the obligations of a Bank under the Credit Agreement with a Commitment in an
amount equal to the Assigned Amount, and (ii) the Commitment of the Assignor
shall, as of the date hereof, be reduced by a like amount and the Assignor
released from its obligations under the Credit Agreement to the extent such
obligations have been assumed by the Assignee. The assignment provided for
herein shall be without recourse to the Assignor.

         Section
3. Payments. As consideration for the assignment and sale contemplated in
Section 2 hereof, the Assignee shall pay to the Assignor on the date hereof in
Federal funds the amount heretofore agreed between them.* It is
understood that facility fees accrued to the date hereof are for the account of
the Assignor and such fees accruing from and including the date hereof are for
the account of the Assignee. Each of the Assignor and the Assignee hereby agrees
that if it receives any amount under the Credit Agreement which is for the
account of the other party hereto, it shall receive the same for the account of
such other party to the extent of such other party's interest therein
and shall promptly pay the same to such other party.

         Section
4. Consent of the Borrower and the Administrative Agent. [This Agreement
is conditioned upon the consent of the Borrower and the Administrative Agent
pursuant to Section 9.06(c) of the Credit Agreement. The execution of this
Agreement by the Borrower and the Administrative Agent is evidence of this
consent. Pursuant to Section 9.06(c) the Borrower agrees to execute and deliver a Note payable to the order of the Assignee to evidence
the assignment and assumption provided for herein.]

_____________________________________________

* Amount should combine principal together with
accrued interest and breakage compensation, if any, to be paid by the Assignee,
net of any portion of any upfront fee to be paid by the Assignor to the
Assignee. It may be preferable in an appropriate case to specify these amounts
generically or by formula rather than as a fixed sum.

         Section
5. Non-reliance on Assignor. The Assignor makes no representation
or warranty in connection with, and shall have no responsibility with respect
to, the solvency, financial condition, or statements of the Borrower or Textron,
or the validity and enforceability of the obligations of the Borrower in respect
of the Credit Agreement or any Note or of Textron in respect of the Support
Agreement. The Assignee acknowledges that it has, independently and without
reliance on the Assignor, and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this
Agreement and will continue to be responsible for making its own independent
appraisal of the business, affairs and financial condition of the Borrower and
Textron.

         Section
6. Governing Law. Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

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

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

	
      
	
      [ASSIGNOR]

	
       
	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

	 	 
	 	 
	 	
      [ASSIGNEE]

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

 

	 	
      TEXTRON FINANCIAL CORPORATION

    
	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

 

	 	
      JPMORGAN CHASE BANK

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

 

EXHIBIT H

 

DESIGNATION AGREEMENT

dated as of ________________, _____

 

         Reference
is made to the 364-Day Credit Agreement dated as of July 28, 2003 (as
amended from time to time, the "Credit Agreement") among
Textron Financial Corporation, a Delaware corporation (the "Borrower"),
the banks party thereto (the "Banks") and JPMorgan Chase Bank,
as Administrative Agent (the "Administrative Agent"). Terms
defined in the Credit Agreement are used herein with the same meaning.

         _________________
(the "Designator") and ________________ (the "Designee")
agree as follows:

         1.
     The Designator designates the
Designee as its Designated Lender under the Credit Agreement and the Designee
accepts such designation.

         2.
     The Designator makes no
representations or warranties and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto.

         3.
     The Designee confirms that it
is an Eligible Designee; appoints and authorizes the Designator as its
administrative agent and attorney-in-fact and grants the
Designator an irrevocable power of attorney to receive payments made for the
benefit of the Designee under the Credit Agreement and to deliver and receive
all communications and notices under the Credit Agreement, if any, that the
Designee is obligated to deliver or has the right to receive thereunder; and
acknowledges that the Designator retains the sole right and responsibility to
vote under the Credit Agreement, including, without limitation, the right to
approve any amendment or waiver of any provision of the Credit Agreement, and
agrees that the Designee shall be bound by all such votes, approvals, amendments
and waivers and all other agreements of the Designator pursuant to or in
connection with the Credit Agreement, all subject to Section 9.05(b) of the
Credit Agreement.

         4.
     The Designee confirms that it
has received a copy of the Credit Agreement, together with copies of the most
recent financial statements referred to in Article 4 or delivered pursuant to
Article 5 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Designation Agreement; agrees that it will, independently and without reliance
upon the Administrative Agent, the Designator or any other Bank and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking any action it
may be permitted to take under the Credit Agreement.

         5.
     Following the execution of
this Designation Agreement by the Designator and the Designee and the consent
hereto by the Borrower, it will be delivered to the Administrative Agent for its
consent. This Designation Agreement shall become effective when the
Administrative Agent consents hereto or on any later date specified on the
signature page hereof.

         6.
     Upon the effectiveness hereof,
(a) the Designee shall have the right to make Loans or portions thereof as a
Bank pursuant to Section 2.01 or 2.03 of the Credit Agreement and the rights of
a Bank related thereto and (b) the making of any such Loans or portions thereof
by the Designee shall satisfy the obligations of the Designator under the Credit
Agreement to the same extent, and as if, such Loans or portions thereof were
made by the Designator.

         7.
     This Designation Agreement
shall be governed by, and construed in accordance with, the laws of the State of
New York.

         IN
WITNESS WHEREOF, the parties have caused this Designation Agreement to be
executed by their respective officers hereunto duly authorized, as of the date
first above written.

Effective Date*:______ , ____

 

	 	
      [NAME OF DESIGNATOR]

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

	 	
      [NAME OF DESIGNEE]

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

________________________________

*This date should be no earlier than the date of the Administrative
Agent's consent hereto.

The undersigned consent to the foregoing designation.

 

	 	
      TEXTRON FINANCIAL CORPORATION

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

	 	
      JPMORGAN CHASE BANK,

           as Administrative Agent

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

 

EXHIBIT I

 

SUBORDINATION AGREEMENT

         SUBORDINATION
AGREEMENT dated as of August 21, 1991, between TEXTRON FINANCIAL CORPORATION
(the "Company") and TEXTRON INC. (the "Parent").

W I T N E S S E T H :

         WHEREAS,
the Parent and the Company wish to subordinate pursuant to the terms set forth
herein all indebtedness of the Company to the Parent, outstanding on the date
hereof or from time to time incurred, to certain other indebtedness of the
Company, outstanding on the date hereof or from time to time incurred, as more
fully described herein.

         NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         Section
1. Definitions.

         
"Senior Debt" means all obligations of the Company in respect
of indebtedness for borrowed money (including interest accruing on such borrowed
money after commencement of any bankruptcy or insolvency proceeding of the
Company whether or not such interest constitutes an allowed claim in such
proceeding), other than indebtedness which by its terms is subordinate in right
of payment to other indebtedness of the Company on substantially the same terms
as the Subordinated Debt, whether outstanding on the date of this Agreement or
hereafter created.

         
"Subordinated Debt" means all obligations of whatsoever nature
of the Company owing to the Parent.

         Section
2. Subordinated Debt. The parties hereto agree for the benefit of the
holders of Senior Debt that the Subordinated Debt shall, in the manner
hereinafter set forth, be subordinated and junior in right of payment to the
Senior
Debt.         Section
3. No Subordinated Debt Payments in Certain Circumstances . (a) Upon the
maturity of all or any part of the Senior Debt by lapse of time, acceleration or
otherwise, such Senior Debt shall first be paid in full, or such payment shall
be duly provided for in cash or in a manner satisfactory to the holders of such
Senior Debt, before any payment by the Company is made on account of the
principal of or premium, if any, or interest on, or any other amount payable
with respect to, the Subordinated Debt.

(b)      In the event and during
the continuation of (x) a default in any payment with respect to any Senior Debt
or (y) an event of default (as defined in such Senior Debt or in the instrument
under which the same is outstanding, other than a default in the payment of
amounts due thereon) with respect to any Senior Debt permitting the holders
thereof to accelerate the maturity thereof (provided that any event that
would become such an event of default only upon the giving of notice of such
event to the Company and the lapse of time, shall constitute such an event of
default for purposes of this Agreement if such notice has been given to the
Company) (such default and event of default being referred to in this Agreement
as a "Senior Debt Default") no payment shall be made by the
Company on or with respect to the principal of, or premium, if any, or interest
on, or any other amount payable with respect to, the Subordinated Debt unless
and until such Senior Debt Default shall have been remedied, nor shall any such
payment be made if after giving effect, as if paid, to such payment any Senior
Debt Default would exist. In any such event, the Parent shall not demand, accept
or receive, any direct or indirect payment (in cash or property or by setoff,
exercise of contractual or statutory rights or otherwise) of or on account of
the Subordinated Debt, notwithstanding the terms of the Subordinated Debt or of
any agreement or instrument which governs the Subordinated Debt, and no such
payment shall be due.

         (c)
     Unless and until all principal
of, premium, if any, and interest on, and all other obligations of the Company
under, the Senior Debt shall have been paid in full, the Company shall not make,
and the Parent shall not demand, accept or receive (in cash or property or by
setoff, exercise of contractual or statutory rights or otherwise), or attempt to
collect or commence any legal proceedings to collect, any direct or indirect
payment on account of the Subordinated Debt prior to the date such payment
becomes due and payable pursuant to the terms thereof or, if later, prior to the
first date such amount is not prohibited from being paid pursuant to this
Agreement.

         (d)
     Unless and until all principal
of, premium, if any, and interest on, and all other obligations of the Company
in respect of, the Senior Debt shall have been paid in full, the Parent will not
commence or maintain any action, suit or any other legal or equitable proceeding
against the Company, or join with any creditor in any such proceeding, under any
insolvency, bankruptcy, receivership, liquidation, reorganization or other
similar law, unless the holders of Senior Debt shall also join in bringing such
proceeding, provided that this Section 3(d) shall not prohibit the Parent from
filing a proof of claim or otherwise participating in any such proceeding not
commenced by it.

         Section
4. Subordinated Debt Subordinated to Prior Payment of all Senior Debt on
Dissolution, Liquidation or Reorganization of the Company. In the event of
any insolvency or bankruptcy proceedings, and any receivership, liquidation,
reorganization or other similar proceedings in connection therewith, relative to
the Company or to its creditors, in their capacity as creditors of the Company,
or to substantially all of the Company's property, in the event of any
proceedings for voluntary liquidation, dissolution or other winding up of the
Company, whether or not involving insolvency or bankruptcy, then

         (a)
     the holders of all Senior Debt
shall first be entitled to receive payment in full of the principal of, premium,
if any, interest and all amounts payable on such Senior Debt (accruing before
and after the commencement of any proceedings described above) before the Parent
is entitled to receive any payment on account of the principal of, premium, if
any, or interest on, or any other amount payable with respect to, the
Subordinated Debt;

         (b)
     any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities to which the Parent would be entitled, but for the provisions of this
Agreement, shall be paid or distributed by the liquidating trustee or agent or
other Person making such payment or distribution, directly to the holders of
Senior Debt (pro rata to such holders on the basis of the respective amounts of
Senior Debt held by such holders) or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments
evidencing any of such Senior Debt may have been issued, as their respective
interests may appear (such representatives or trustees being referred to in this
Agreement as "Representative" or "Representatives"),
to the extent necessary to make payment in full of all principal, premium, if
any, interest on and all other amounts payable with respect to Senior Debt
remaining unpaid, after giving effect to any concurrent payment or distribution
to the holders of Senior Debt;

         (c)
     the Parent, as holder of the
Subordinated Debt, irrevocably authorizes and empowers (without imposing any
obligation on) each holder of Senior Debt to demand, sue for, collect and
receive all payments and distributions in respect of the Subordinated Debt, and
to file and prove all claims therefor and take all such other action not
inconsistent with the foregoing (including the right to vote with respect to the
Subordinated Debt) in the name of the Parent or otherwise, as such holder of
Senior Debt or any Representative on behalf of holders of Senior Debt may
determine to be necessary or appropriate for the enforcement of this Agreement;
and

         (d)
     the Parent, as holder of the
Subordinated Debt, shall execute and deliver to such holder of Senior Debt or
any Representative all such further instruments confirming the above
authorization, and all such powers of attorney, proofs of claim, assignments of
claim and other instruments, and shall take all such other action as may be
reasonably requested by any holder of Senior Debt, in order to enable such
holder of Senior Debt or any Representative to enforce all claims upon or in
respect of the Subordinated Debt.

         Section
5. Rights of the Holders of Senior Debt; Subrogation .
(a) Should any payment or distribution or security or the proceeds of
any thereof be collected or received by the Parent in respect of the
Subordinated Debt, and such collection or receipt is prohibited hereunder prior
to the payment in full of the Senior Debt, the Parent will forthwith deliver the
same to the holders of Senior Debt (pro rata to such holders on the basis of the
respective amounts of Senior Debt held by such holders) or their Representatives
in precisely the form received (except for the endorsement or the assignment of
or by the Parent where necessary) for application to payment in full of all
Senior Debt, after giving effect to any concurrent payment or distribution to
the holders of the Senior Debt and, until so delivered, the same shall be held
in trust by the Parent as the property of the holders of the Senior Debt.

         
(b)      All payments and
distributions received by any Representative of holders of Senior Debt on behalf
of such holders of Senior Debt in respect of the Subordinated Debt, to the
extent received in or converted into cash, may be applied by such Representative
first to the payment of any and all reasonable out-of-pocket
expenses (including attorney's fees and legal expenses) paid or incurred
by such Representative in enforcing the provisions hereof or in endeavoring to
collect or realize upon the Subordinated Debt or any security therefor, and any
balance thereof shall, solely as between the Parent, as holder of the
Subordinated Debt, on the one hand, and such holders of Senior Debt, on the
other hand, be applied by such Representative in such order of application as
such Representative may from time to time select, toward the payment of Senior
Debt remaining unpaid.

         (c)
     The Parent, as holder of the
Subordinated Debt, shall not be subrogated to the rights of the holders of
Senior Debt to receive payments or distributions of assets of the Company until
all amounts payable with respect to the Senior Debt shall be paid in full; and,
for the purposes of such subrogation, no payments or distributions to the
holders of Senior Debt of any cash, property or securities to which the Parent
would be entitled except for these provisions shall, as among the Company, its
creditors other than the holders of Senior Debt, and the Parent, as holder of
the Subordinated Debt, be deemed to be a payment by the Company to or on account
of the Senior Debt. The provisions of this Agreement are intended solely for the
purpose of defining the relative rights of the Parent, as holder of the
Subordinated Debt, on the one hand, and the holders of Senior Debt, on the other
hand.

         
(d)      Subject to the payment in
full of all Senior Debt, the Parent, as holder of the Subordinated Debt, shall
be subrogated to the rights of the holders of Senior Debt to receive payments or
distributions of cash, property or securities of the Company applicable to the
Senior Debt until all amounts owing on the Subordinated Debt shall be paid in
full. For purposes of such subrogation, no payments or distributions to the
Parent of cash, property, securities or other assets by virtue of the
subrogation herein provided which otherwise would have been made to the holders
of Senior Debt shall, as among the Company, its creditors other than the holders
of Senior Debt, and the Parent, as holder of the Subordinated Debt, be deemed to
be a payment to or on account of the Subordinated Debt. The Parent agrees that,
in the event that all or any part of any payment made on account of the Senior
Debt is recovered from the holders of Senior Debt as a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law, any
payment or distribution received by the Parent on account of the Subordinated
Debt at any time after the date of the payment so recovered, whether pursuant to
the right of subrogation provided for in this Section 5(d) or otherwise, shall
be deemed to have been received by the Parent in trust as the property of the
holders of Senior Debt and the Parent shall forthwith deliver the same to the
holders of Senior Debt for the equal and ratable benefit of the holders of
Senior Debt for application to payment of all Senior Debt in full.

         Section
5. Renewals, Extensions and Increases of Senior Debt. The Parent by its
acceptance thereof waives any and all notice of renewal, extension, accrual or
increase in the amount of any of the Senior Debt, present or future, and agrees
and consents that without notice to or assent by the Parent:

  
             
    (i)      the obligation and
    liabilities of the Company or any other party or parties for or upon the
    Senior Debt (or any promissory note, security document or guaranty
    evidencing or securing the same) may, from time to time, in whole or in
    part, be renewed, extended, increased, modified, amended, accelerated,
    compromised, supplemented, terminated, sold, exchanged, waived or released;

             
    (ii)      any Representative
    acting on behalf of holders of Senior Debt and any holder of Senior Debt may
    exercise or refrain from exercising any right, remedy or power granted by or
    in connection with any agreements relating to the Senior Debt; and

             
    (iii)      any balance or
    balances of funds with any holders of the Senior Debt at any time
    outstanding to the credit of the Company may, from time to time, in whole or
    in part, be surrendered or released; all as any Representative acting on
    behalf of holders of Senior Debt and any holder of Senior Debt may deem
    advisable and all without impairing, abridging, diminishing, releasing or
    affecting the subordination of the Subordinated Debt to the Senior Debt
    provided for herein.

  

         Section
6. Obligation of the Company Unconditional. Nothing contained in this
Agreement is intended to or shall impair, as among the Company, its creditors
other than the holders of Senior Debt, and the Parent, as holder of the
Subordinated Debt, the obligation of the Company, which is absolute and
unconditional, to pay to the Parent the principal of, premium, if any, and
interest on, and all other amounts payable with respect to, the Subordinated
Debt, as and when the same shall become due and payable (except as otherwise
provided in Section 3), by lapse of time, acceleration or otherwise, in
accordance with their terms, or is intended to or shall affect the relative
rights of the Parent, as holder of the Subordinated Debt, and other creditors of
the Company other than the holders of Senior Debt, nor shall anything herein or
therein prevent the Parent, as holder of the Subordinated Debt, (i) from taking
all appropriate actions to preserve its rights under the Subordinated Debt not
inconsistent with the rights of the holders of Senior Debt under this Agreement,
or (ii) from exercising all remedies otherwise permitted by applicable law upon
default under the Subordinated Debt, subject to the rights, if any, under this
Agreement of the holders of Senior Debt in respect of cash, property or
securities of the Company otherwise payable or delivered to such holders upon
the exercise of any such remedy.

         Section
7. Miscellaneous. (a) The Parent, as the holder of the Subordinated Debt,
by its acceptance hereof agrees that it will not assign or otherwise transfer
any of its rights in respect of the Subordinated Debt to any Person without the
prior written consent of the holders of Senior Debt.

         
(b)      No present or future
holder of the Senior Debt shall be prejudiced in his right to enforce the
subordination contained herein in accordance with the terms hereof by any act or
failure to act on the part of the Company or the Parent. The subordination
provisions contained herein are for the benefit of the holders of Senior Debt
and, so long as Senior Debt is outstanding, may not be rescinded, canceled or
modified in any way adverse to the holders of Senior Debt without the prior
written consent of each holder of Senior Debt affected thereby.

         
(c)      This Agreement shall be
binding upon the Company and the Parent, and their respective successors, and
shall inure to the benefit of the holders of Senior Debt and their respective
successors and assigns.

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

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

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

	 	
      TEXTRON FINANCIAL CORPORATION

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

	 	
      TEXTRON INC.

	 	 
	 	 
	 	
      By:

	 	 	
      Name:

	 	 	
      Title:

 

 

EXHIBIT J

 

OPINION OF COUNSEL FOR TEXTRON INC.

 

 

To the Banks and the Administrative Agent

    Referred to Below

c/o JPMorgan Chase Bank, as Administrative Agent

270 Park Avenue

New York, New York 10017

Re: Textron Financial Corporation

Dear Sirs:

         I
am _______________________________ of Textron Inc. This opinion is provided to
you pursuant to the 364-Day Credit Agreement dated as of July 28, 2003
among Textron Financial Corporation, the Banks listed on the signature pages
thereof and JPMorgan Chase Bank, as Administrative Agent (the "Credit
Agreement"). Capitalized terms used in this opinion and not otherwise
defined herein have the respective meanings assigned thereto in the Credit
Agreement.

         I
am familiar with the Support Agreement (the " Support Agreement")
dated as of May 25, 1994 between Textron and TFC and the Subordination Agreement
(the "Subordination Agreement") dated as of August 21, 1991, between
Textron and TFC. I have examined or supervised the examination of originals, or
copies certified or otherwise identified to my satisfaction, of such documents,
corporate records, certificates of public officials and other instruments and
have conducted such other investigations of fact and law as I have deemed
necessary or advisable for purposes of this opinion.

         In
my examination, I have assumed the legal capacity of all natural persons, the
genuineness of all signatures, the authenticity of all documents submitted to me
as originals, the conformity to original documents of all documents submitted to
me as certified or photostatic copies and the authenticity of all of the
originals of such copies. In making my examination of documents executed by
parties other than Textron, I have assumed that such parties had the power,
corporate or other, to enter into and perform all obligations thereunder and
have also assumed the due authorization by all requisite actions, corporate or
other, and execution and delivery by such parties of such documents and the
validity and binding effect thereof. In rendering this opinion, I have relied as
to matters of fact, to the extent I have deemed proper, on certificates of
responsible officers of Textron and public officials.

 

 

         Upon
the basis of the foregoing, I am of the opinion that:

  
             
    (i)     all of the issued and
    outstanding shares of capital stock of Textron Financial Corporation are
    owned by Textron Inc., a Delaware corporation, and such shares are validly
    issued, fully paid and nonassessable;

             (ii)     the
    Support Agreement has been duly authorized, executed and delivered by
    Textron Inc. and the obligations of Textron Inc. thereunder constitute
    legal, valid and binding obligations of Textron Inc., enforceable in
    accordance with their respective terms, except as limited by bankruptcy,
    insolvency or other similar laws affecting the enforcement of
    creditors' rights generally; provided, however, that no
    opinion is given herein as to the availability of the remedies of specific
    performance or injunctive relief or other equitable remedies; and

             (iii)     the
    Subordination Agreement dated as of August 21, 1991 between Textron Inc. and
    Textron Financial Corporation has been duly authorized, executed and
    delivered by Textron Inc. and constitutes the legal, valid and binding
    obligation of Textron Inc. enforceable in accordance with its terms, except
    as limited by bankruptcy, insolvency or other similar laws affecting the
    enforcement of creditors' rights generally; provided,
    however, that no opinion is given herein as to the availability of the
    remedies of specific performance or injunctive relief or other equitable
    remedies.

     

    
      
        
          
            
              
                
Very truly yours,

                

              

            

          

        

      

    

  

 

 

 

 

EXHIBIT K

 

SUPPORT AGREEMENT

 

         THIS
SUPPORT AGREEMENT is entered into as of May 25, 1994 by and between TEXTRON
FINANCIAL CORPORATION, a Delaware corporation ("TFC"), and
TEXTRON INC., a Delaware corporation ("Textron").

         In
consideration of the mutual covenants hereinafter set forth, Textron and TFC
agree as follows:

         1.
     Fixed Charge Coverage.

         Commencing
with the fiscal quarter in which this Agreement is executed and terminating with
the fiscal quarter in which this Agreement terminates, Textron shall pay TFC a
cash payment sufficient to provide that with respect to the
year-to-date period then ended the sum of TFC's
pre-tax earnings before extraordinary items plus Fixed Charges will not
be less than one hundred and twenty-five (125%) percent of TFC's
Fixed Charges. Such payment shall be made not later than the end of the next
fiscal quarter. As used herein, "Fixed Charges" shall mean actual
interest incurred in each quarter on funded or unfunded indebtedness and
apportionment of debt discount or premium (in the testing of obligation where
interest is partially or entirely contingent upon the earnings "Fixed
Charges" will include contingent interest payments).

         2.
     Ownership of TFC.

         Textron
and TFC agree that one hundred (100%) percent of the issued and outstanding
shares of common stock of TFC shall at all times be owned by Textron or
corporation controlled by, controlling or under common control with Textron, and
that Textron or any such corporation will at all times have a controlling
interest in TFC.

         3.
     Minimum
Shareholder's Equity.

         Commencing
with the fiscal quarter in which this Agreement is executed and terminating with
the fiscal quarter in which this Agreement terminates, Textron shall make such
equity contributions to TFC as may be required to ensure that the consolidated
shareholders equity of TFC shall not be less than $200,000,000. Any
contributions of equity required by this Agreement shall be made not later than
the end of the next fiscal quarter. Such additional equity contributions may be
in any form of asset which is eligible for treatment as shareholder equity in
accordance with generally accepted accounting principles.

         4.
     Computations.

         All
computations under this Agreement shall be made in accordance with generally
accepted accounting principles consistently applied, and all computations shall
be made on a consolidated basis so as to include all of TFC's
consolidated subsidiaries now or hereafter organized.

         5.
     No Guarantee of
TFC's Obligations.

This Agreement is not intended to be and is not, and nothing contained herein
and nothing done by Textron pursuant hereto shall be deemed to constitute a
guarantee by Textron of the payment of the interest or principal of any
obligation, indebtedness or liability of any kind or character, however
evidenced or arising, of TFC or any person or persons.

         6.
     Third-party
Beneficiaries.

         Textron
and TFC acknowledge and agree that this Agreement is entered into for the
benefit of and is enforceable by any party which lends funds to TFC and their
successors and assigns.

         7.
     Default.

         Upon
any default by either party hereunder and the expiration of all applicable grace
periods, the non-defaulting party shall have all rights and remedies
available under applicable law.

         8.
     Termination, Amendments and
Supplements.

  
             
    (a)      Either Textron or TFC
    shall have the right to terminate this Agreement upon thirty (30)
    days' written notice to the other.

             
    (b)      This Agreement shall
    not be terminated pursuant to Section 8(a) above or supplemented or amended
    pursuant to Section 10(c) below, if TFC has any indebtedness for money
    borrowed outstanding (other than to Textron) under the terms of which such
    action would constitute a default, unless the holder of such indebtedness
    has consented to such action.

             
    (c)      This Agreement shall
    continue in effect until terminated as provided above.

  

         9.
     No Waiver.

 

         Except
as specifically provided elsewhere in this Agreement, Textron and TFC hereby
waive any failure or delay on the part of the other in asserting or enforcing
any right which it may have at any time under this Agreement

         10.
     Miscellaneous.

  
             
    (a)      This Agreement shall
    be binding upon, and shall inure to the benefit of, the parties hereto and
    their respective successors and assigns.

             
    (b)      This Agreement and all
    rights and obligations hereunder shall be governed by and construed and
    enforced in accordance with the laws of the State of Rhode Island.

             
    (c)      This Agreement may not
    be amended or supplemented except by an instrument in writing signed by the
    parties. All headings herein are for convenience of reference only and shall
    be disregarded in the interpretation hereof.

  

         IN
WITNESS WHEREOF, the parties hereto have caused this instrument to be duly
executed as of the day and year first above written.

	
      Attest:
	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 
	 	 	 
	 	 	
      By:

	 	 	 	 
	 	 	 	 

	
      Attest:
	 	
      TEXTRON INC.

	 	 	 
	 	 	 
	 	 	
      By:New Page 1

Exhibit 10.2

$1,000,000,000

 

FIVE-YEAR CREDIT AGREEMENT

 

dated as of

 

July 28, 2003

 

 

among

 

Textron Financial Corporation

 

The Banks Listed Herein

and

JPMorgan Chase Bank,

as Administrative Agent

____________________

J.P. Morgan Securities Inc.,

Lead Arranger and Sole Bookrunner

Bank of America, N.A.

Bank One, NA

Citibank, N.A.

Deutsche Bank AG New York Branch,

Syndication Agents

 

   TABLE OF CONTENTS

 

	 	
      Page

 

ARTICLE 1

Definitions

 

	
      Section 1.01. Definitions
	
      1

	
      Section 1.02. Accounting Terms and Determinations
	
      14

	
      Section 1.03. Types of Borrowing
	
      15

ARTICLE 2

The Credits

 

	
      Section 2.01. Commitments to Lend
	
      15

	
      Section 2.02. Notice of Committed Borrowing
	
      16

	
      Section 2.03. Competitive Bid Borrowings
	
      16

	
      Section 2.04. Notice to Banks; Funding of Loans
	
      20

	
      Section 2.05. Notes
	
      21

	
      Section 2.06. Maturity of Loans
	
      21

	
      Section 2.07. Interest Rates
	
      22

	
      Section 2.08. Method of Electing Interest Rates
	
      23

	
      Section 2.09. Fees
	
      25

	
      Section 2.10. Optional Termination or Reduction of Commitments
	
      25

	
      Section 2.11. Scheduled Termination of Commitments
	
      26

	
      Section 2.12. Optional Prepayments
	
      26

	
      Section 2.13. General Provisions as to Payments
	
      26

	
      Section 2.14. Funding Losses
	
      27

	
      Section 2.15. Computation of Interest and Fees
	
      28

	
      Section 2.16. Regulation D Compensation
	
      28

	
      Section 2.17. Increased Commitments; Additional Banks
	
      28

	
      Section 2.18. Letters of Credit
	
      29

ARTICLE 3

Conditions

 

	
      Section 3.01. Effectiveness
	
      35

	
      Section 3.02. Borrowings and Issuances of Letters of Credit
	
      36

ARTICLE 4

Representations and Warranties

 

	
      Section 4.01. Corporate Existence and Power
	
      37

	
      Section 4.02. Corporate and Governmental Authorization; No
      Contravention
	
      37

	
      Section 4.03. Binding Effect
	
      37

	
      Section 4.04. Financial Information
	
      37

	
      Section 4.05. Litigation
	
      38

	
      Section 4.06. Compliance with ERISA
	
      38

	
      Section 4.07. Environmental Matters
	
      38

	
      Section 4.08. Taxes
	
      39

	
      Section 4.09. Subsidiaries
	
      39

	
      Section 4.10. Not an Investment Company
	
      39

	
      Section 4.11. Validity of Support Agreement
	
      39

	
      Section 4.12. Full Disclosure
	
      39

ARTICLE 5

Covenants

 

	
      Section 5.01. Information
	
      40

	
      Section 5.02. Notification of Change in Ratings
	
      41

	
      Section 5.03. Payment of Obligations
	
      41

	
      Section 5.04. Maintenance of Property; Insurance
	
      41

	
      Section 5.05. Conduct of Business and Maintenance of Existence
	
      42

	
      Section 5.06. Compliance with Laws
	
      42

	
      Section 5.07. Inspection of Property, Books and Records
	
      42

	
      Section 5.08. Debt
	
      42

	
      Section 5.09. Minimum Consolidated Net Worth
	
      43

	
      Section 5.10. Restricted Payments
	
      43

	
      Section 5.11. Fixed Charges
	
      43

	
      Section 5.12. Negative Pledge
	
      43

	
      Section 5.13. Support Agreement
	
      44

	
      Section 5.14. Consolidations, Mergers and Sales of Asset
	
      44

	
      Section 5.15. Use of Proceeds
	
      45

	
      Section 5.16. Subsidiary Debt
	
      45

ARTICLE 6

Defaults

 

	
      Section 6.01. Events of Default
	
      45

	
      Section 6.02. Notice of Default
	
      47

	
      Section 6.03. Cash Cover
	
      47

ARTICLE 7

The Agents

 

	
      Section 7.01. Appointment and Authorization
	
      48

	
      Section 7.02. Administrative Agent and Affiliates
	
      48

	
      Section 7.03. Action by Administrative Agent
	
      48

	
      Section 7.04. Consultation with Experts
	
      48

	
      Section 7.05. Liability of Administrative Agent
	
      48

	
      Section 7.06. Indemnification
	
      49

	
      Section 7.07. Credit Decision
	
      49

	
      Section 7.08. Successor Administrative Agent
	
      49

	
      Section 7.09. Agents' Fees
	
      50

	
      Section 7.10. Other Agents
	
      50

ARTICLE 8

Change in Circumstances

 

	
      Section 8.01. Basis for Determining Interest Rate Inadequate or Unfair
	
      50

	
      Section 8.02. Illegality
	
      51

	
      Section 8.03. Increased Cost and Reduced Return
	
      51

	
      Section 8.04. Taxes
	
      53

	
      Section 8.05. Base Rate Loans Substituted for Affected Fixed Rate Loans
	
      54

	
      Section 8.06. Substitution of Bank or Banks
	
      55

ARTICLE 9

Miscellaneous

 

	
      Section 9.01. Notices
	
      55

	
      Section 9.02. No Waivers
	
      55

	
      Section 9.03. Expenses; Indemnification
	
      56

	
      Section 9.04. Set-Offs
	
      56

	
      Section 9.05. Amendments and Waivers
	
      57

	
      Section 9.06. Successors and Assigns
	
      57

	
      Section 9.07. Designated Lenders
	
      59

	
      Section 9.08. Collateral
	
      60

	
      Section 9.09. Governing Law; Submission to Jurisdiction
	
      60

	
      Section 9.10. Counterparts; Integration
	
      61

	
      Section 9.11. Waiver of Jury Trial
	
      61

	
      Section 9.12. Disclosure of Certain Tax Aspects
	
      61

 

COMMITMENT SCHEDULE

PRICING SCHEDULE

                                                         
 EXHIBITS

	
      Exhibit A
	
      -
	
      Note

	
      Exhibit B
	
      -
	
      Competitive Bid Quote Request

	
      Exhibit C
	
      -
	
      Invitation for Competitive Bid Quotes

	
      Exhibit D
	
      -
	
      Competitive Bid Quote

	
      Exhibit E
	
      -
	
      Opinion of Counsel for the Borrower

	
      Exhibit F
	
      -
	
      Opinion of Special Counsel for the Administrative Agent

	
      Exhibit G
	
      -
	
      Assignment and Assumption Agreement

	
      Exhibit H
	
      -
	
      Designation Agreement

	
      Exhibit I
	
      -
	
      Subordination Agreement

	
      Exhibit J
	
      -
	
      Opinion of Counsel for Textron Inc.

	
      Exhibit K
	
      -
	
      Support Agreement

 

FIVE-YEAR CREDIT AGREEMENT

 

          
AGREEMENT dated as of July 28, 2003 among TEXTRON FINANCIAL CORPORATION, the
BANKS listed on the signature pages hereof and JPMORGAN CHASE BANK, as
Administrative Agent.

          
The parties hereto agree as follows:

ARTICLE 1

Definitions

          
Section 1.1. Definitions. The following terms, as used herein, have the
following meanings:

          
"Absolute Rate Auction" means a solicitation of Competitive Bid
Quotes setting forth Competitive Bid Absolute Rates pursuant to Section 2.03.

          
"Additional Bank" has the meaning set forth in Section 2.17.

          
"Administrative Agent" means JPMorgan Chase Bank in its
capacity as Administrative Agent for the Banks hereunder, and its successors in
such capacity.

          
"Administrative Questionnaire" means, with respect to each
Bank, an administrative questionnaire in the form prepared by the Administrative
Agent and submitted to the Administrative Agent (with a copy to the Borrower)
duly completed by such Bank.

          
"Affiliate" means (i) any Person that directly, or indirectly
through one or more intermediaries, controls the Borrower (a "Controlling
Person") or (ii) any Person (other than the Borrower or a Subsidiary)
which is controlled by or is under common control with a Controlling Person. As
used herein, the term "control" means possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

          
"Agent" means any of the Administrative Agent and the
Syndication Agents, and "Agents" means any two or more of the
foregoing.

          
"Applicable Lending Office" means, with respect to any Bank, (i)
in the case of its Base Rate Loans, its Domestic Lending Office, (ii) in the
case of its Euro-Dollar Loans, its Euro-Dollar Lending Office
and (iii) in the case of its Competitive Bid Loans, its Competitive Bid Lending
Office.

          
"Assignee" has the meaning set forth in Section 9.06(c).

          
"Bank" means each bank listed on the signature pages hereof and
each Person which becomes a Bank pursuant to Section 2.16, 8.06 or 9.06(c), and
their respective successors.

          
"Base Rate" means, for any day, a rate per annum equal to the
higher of (i) the Prime Rate for such day or (ii) the sum of 1⁄2 of 1% plus the
Federal Funds Rate for such day.

          
"Base Rate Loan" means a Committed Loan which bears interest at
the Base Rate pursuant to the applicable Notice of Committed Borrowing or Notice
of Interest Rate Election or the provisions of Section 2.08(a) or Article 8.

          
"Borrower" means Textron Financial Corporation, a Delaware
corporation, and its successors.

          
"Borrowing" has the meaning set forth in Section 1.03.

          
"Commitment" means (i) with respect to each Bank
listed on the Commitment Schedule, the amount set forth opposite such
Bank's name on the Commitment Schedule, (ii) with respect to each
Additional Bank, the amount of the Commitment assumed by it pursuant to Section
2.17 and (iii) with respect to any substitute bank or Assignee which
becomes a Bank pursuant to Section 8.06 or 9.06(c), the amount of the transferor
Bank's Commitment assigned to it pursuant to Section 8.06 or 9.06(c), in
each case as such amount may be changed from time to time pursuant to Section
2.10 or 9.06(c); provided that, if the context so requires, the term
"Commitment" means the obligation of a Bank to extend credit up
to such amount to the Borrower hereunder.

          
"Commitment Schedule" means the Commitment Schedule attached
hereto.

          
"Committed Loan" means a loan made by a Bank pursuant to
Section 2.01; provided that, if any such loan or loans (or
portions thereof) are combined or subdivided pursuant to a Notice of Interest
Rate Election, the term "Committed Loan" shall refer to the
combined principal amount resulting from such combination or to each of the
separate principal amounts resulting from such subdivision, as the case may be.

          
"Competitive Bid Absolute Rate" has the meaning set forth in
Section 2.03(d).

          
"Competitive Bid Absolute Rate Loan" means a loan to be made by
a Bank pursuant to an Absolute Rate Auction.

          
"Competitive Bid Lending Office" means, as to each Bank, its
Domestic Lending Office or such other office, branch or affiliate of such Bank
as it may hereafter designate as its Competitive Bid Lending Office by notice to
the Borrower and the Administrative Agent; provided that any Bank may
from time to time by notice to the Borrower and the Administrative Agent
designate separate Competitive Bid Lending Offices for its Competitive Bid LIBOR
Loans, on the one hand, and its Competitive Bid Absolute Rate Loans, on the
other hand, in which case all references herein to the Competitive Bid Lending
Office of such Bank shall be deemed to refer to either or both of such offices,
as the context may require.

          
"Competitive Bid LIBOR Loan" means a loan to be made by a Bank
pursuant to a LIBOR Auction (including such a loan bearing interest at the Base
Rate pursuant to Section 8.01).

          
"Competitive Bid Loan" means a Competitive Bid LIBOR Loan or a
Competitive Bid Absolute Rate Loan.

          
"Competitive Bid Margin" has the meaning set forth in Section
2.03(d).

          
"Competitive Bid Quote" means an offer by a Bank to make a
Competitive Bid Loan in accordance with Section 2.03.

          
"Consolidated Assets" means at any date the consolidated assets
of the Borrower and its Consolidated Subsidiaries determined as of such date.

          
"Consolidated Debt" means at any date the Debt of the Borrower
and its Consolidated Subsidiaries, determined as of such date.

          
"Consolidated Net Worth" means at any date the consolidated
stockholders' equity of the Borrower and its Consolidated Subsidiaries,
determined as of such date.

          
"Consolidated Subsidiary" means at any date any entity the
accounts of which would be consolidated with those of the Borrower in its
consolidated financial statements if such statements were prepared as of such
date.

          
"Debt" of any Person means at any date, without duplication, (i)
all obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii)
all obligations of such Person to pay the deferred purchase price of property or
services, except trade accounts payable arising in the ordinary course of
business, (iv) all obligations of such Person as lessee which are capitalized in
accordance with generally accepted accounting principles, (v) all
non-contingent obligations of such Person to reimburse any bank or other
Person in respect of amounts paid under a letter of credit or similar
instrument, (vi) all Debt secured by a Lien on any asset of such Person, whether
or not such Debt is otherwise an obligation of such Person, and (vii) all Debt
of others Guaranteed by such Person; provided that, for the purposes of
this Agreement, "Debt" of the Borrower or a Subsidiary shall
not be deemed to include Non-recourse Debt or Permitted Securitization
Obligations, but shall include liabilities secured by Liens described in clause
(y) of Section 5.12(i).

          
"Default" means any condition or event which constitutes an
Event of Default or which with the giving of notice or lapse of time or both
would, unless cured or waived, become an Event of Default.

          
"Designated Lender" means, with respect to any Designating
Bank, an Eligible Designee designated by it pursuant to Section 9.07(a) as a
Designated Lender for purposes of this Agreement.

          
"Designating Bank" means, with respect to each Designated
Lender, the Bank that designated such Designated Lender pursuant to Section
9.07(a).

          
"Domestic Business Day" means any day except a Saturday, Sunday
or other day on which commercial banks in New York City are authorized by law to
close.

          
"Domestic Lending Office" means, as to each Bank, its office,
branch or affiliate located at its address set forth in its Administrative
Questionnaire (or identified in its Administrative Questionnaire as its Domestic
Lending Office) or such other office, branch or affiliate as such Bank may
hereafter designate as its Domestic Lending Office by notice to the Borrower and
the Administrative Agent.

          
"Earnings Available for Fixed Charges" means, for any period,
the sum of the Borrower's pre-tax earnings before extraordinary
items plus Fixed Charges.

          
"Effective Date" means the date this Agreement becomes
effective in accordance with Section 3.01.

          
"Eligible Designee" means a special purpose corporation that (i)
is organized under the laws of the United States or any state thereof, (ii) is
engaged in making, purchasing or otherwise investing in commercial loans in the
ordinary course of its business and (iii) issues (or the parent of which issues)
commercial paper rated at least A-1 or the equivalent thereof by S&P
or P-1 or the equivalent thereof by Moody's.

          
"Environmental Laws" means any and all federal, state, local
and foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or other
governmental restrictions relating to the environment or to emissions,
discharges or releases of pollutants, contaminants, petroleum or petroleum
products, chemicals or industrial, toxic or hazardous substances or wastes into
the environment including, without limitation, ambient air, surface water,
ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, petroleum or petroleum products, chemicals or
industrial, toxic or hazardous substances or wastes or the clean-up or
other remediation thereof.

          
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended to the date hereof and from time to time hereafter and any
successor statute.

          
"ERISA Affiliate", as applied to any Person, means any trade or
business (whether or not incorporated) which, together with the Borrower, is
treated as a single employer under Section 414 of the Internal Revenue Code and
the regulations promulgated thereunder.

          
"Euro-Dollar Business Day" means any Domestic Business
Day on which commercial banks are open for international business (including
dealings in dollar deposits) in London.

          
"Euro-Dollar Lending Office" means, as to each Bank,
its office, branch or affiliate located at its address set forth in its
Administrative Questionnaire (or identified in its Administrative Questionnaire
as its Euro-Dollar Lending Office) or such other office, branch or
affiliate of such Bank as it may hereafter designate as its Euro-Dollar
Lending Office by notice to the Borrower and the Administrative Agent.

          
"Euro-Dollar Loan" means a Committed Loan which bears
interest at a Euro-Dollar Rate pursuant to the applicable Notice of
Committed Borrowing or Notice of Interest Rate Election.

          
"Euro-Dollar Margin" means the applicable rate per
annum determined in accordance with the Pricing Schedule.

          
"Euro-Dollar Rate" means a rate of interest determined
pursuant to Section 2.07(c) on the basis of a London Interbank Offered Rate.

          
"Euro-Dollar Reserve Percentage" means for any day that
percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement for a member bank of
the Federal Reserve System in New York City with deposits exceeding five billion
dollars in respect of "Eurocurrency liabilities" (or in respect
of any other category of liabilities which includes deposits by reference to
which the interest rate on Euro-Dollar Loans is determined or any
category of extensions of credit or other assets which includes loans by a
non-United States office of any Bank to United States residents).

          
"Event of Default" has the meaning set forth in Section 6.01.

          
"Existing Credit Agreements" means the 364-Day Credit
Agreement dated as of July 29, 2002 and the Five-Year Credit Agreement
dated as of July 30, 2001, each among the Borrower, the banks parties thereto
and JPMorgan Chase Bank (successor to The Chase Manhattan Bank), as agent, each
as amended and/or restated prior to the Effective Date.

          
"Facility Fee Rate" means the applicable rate per annum
determined in accordance with the Pricing Schedule.

          
"Federal Funds Rate" means, for any day, the rate per annum
(rounded upward, if necessary, to the nearest 1/100th of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Domestic
Business Day next succeeding such day, provided that (i) if such day is
not a Domestic Business Day, the Federal Funds Rate for such day shall be such
rate on such transactions on the next preceding Domestic Business Day as so
published on the next succeeding Domestic Business Day, and (ii) if no such rate
is so published on such next succeeding Domestic Business Day, the Federal Funds
Rate for such day shall be the average rate quoted to JPMorgan Chase Bank on
such day on such transactions as determined by the Administrative Agent.

          
"Finance Business" means (i) the leasing or renting to any
Person (directly or indirectly by financing such leasing or renting), or
financing the purchase by dealers or customers, of products of any Person, (ii)
providing capital funds for any Person, (iii) acquiring and owning notes,
receivables (including lease receivables) and other obligations of any Person
and the financing of such obligations, and (iv) transacting such other business
as may be reasonably incidental to the business specified in the preceding
clauses (i), (ii) and (iii).

          
"Fixed Charges" means, for any period, actual interest
(including, without limitation, dividends on preferred stock characterized as
interest under generally accepted accounting principles) incurred in such period
on funded or unfunded indebtedness and apportionment of debt discount or
premium, and, in the testing of obligations where interest is partially or
entirely contingent upon earnings, includes contingent interest payments.

          
"Fixed Rate Loans" means Euro-Dollar Loans or
Competitive Bid Loans (excluding Competitive Bid LIBOR Loans bearing interest at
the Base Rate pursuant to Section 8.01(a)) or any combination of the foregoing.

          
"Fully Drawn Margin" means at any date, the Euro-Dollar
Margin applicable at such date assuming Utilization greater than 50%.

          
"Group of Loans" means, at any time, a group of Loans
consisting of (i) all Committed Loans which are Base Rate Loans at such time and
(ii) all Euro-Dollar Loans having the same Interest Period at such time,
provided that, if a Committed Loan of any particular Bank is converted to
or made as a Base Rate Loan pursuant to Article 8, such Loan shall be included
in the same Group or Groups of Loans from time to time as it would have been in
if it had not been so converted or made.

          
"Guarantee" by any Person means any obligation, contingent or
otherwise, of such Person directly or indirectly guaranteeing any Debt of any
other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Debt (whether arising by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or
otherwise) or (ii) entered into for the purpose of assuring in any other manner
the holder of such Debt of the payment thereof or to protect such holder against
loss in respect thereof (in whole or in part), provided that the term
Guarantee shall not include endorsements for collection or deposit in the
ordinary course of business. The term "Guarantee" used as a
verb has a corresponding meaning.

          
"Interest Period" means: (1) with respect to each
Euro-Dollar Loan, the period commencing on the date of borrowing
specified in the applicable Notice of Borrowing or on the date specified in the
applicable Notice of Interest Rate Election and ending one, two, three or six
months thereafter, as the Borrower may elect in such notice; provided
that:

  
              
    (a)    any Interest Period which would otherwise
    end on a day which is not a Euro-Dollar Business Day shall be
    extended to the next succeeding Euro-Dollar Business Day unless such
    Euro-Dollar Business Day falls in another calendar month, in which
    case such Interest Period shall end on the next preceding
    Euro-Dollar Business Day;

              
    (b)    any Interest Period which begins on the
    last Euro-Dollar Business Day of a calendar month (or on a day for
    which there is no numerically corresponding day in the calendar month at the
    end of such Interest Period) shall, subject to the concluding proviso
    below, end on the last Euro-Dollar Business Day of a calendar month;
    and

              
    (c)    no Interest Period may end after the
    Termination Date;

  

          
(2)    with respect to each Competitive Bid LIBOR
Loan, the period commencing on the date of borrowing specified in the applicable
Notice of Borrowing and ending such whole number of months thereafter as the
Borrower may elect in accordance with Section 2.03; provided that:

  
              
    (a)    any Interest Period which would otherwise
    end on a day which is not a Euro-Dollar Business Day shall be
    extended to the next succeeding Euro-Dollar Business Day unless such
    Euro-Dollar Business Day falls in another calendar month, in which
    case such Interest Period shall end on the next preceding
    Euro-Dollar Business Day;

              
    (b)    any Interest Period which begins on the
    last Euro-Dollar Business Day of a calendar month (or on a day for
    which there is no numerically corresponding day in the calendar month at the
    end of such Interest Period) shall, subject to the concluding proviso
    below, end on the last Euro-Dollar Business Day of a calendar month;
    and

              
    (c)    no Interest Period may end after the
    Termination Date; and

  

          
(3)    with respect to each Competitive Bid Absolute
Rate Loan, the period commencing on the date of borrowing specified in the
applicable Notice of Borrowing and ending such number of days thereafter (but
not less than 7 days) as the Borrower may elect in accordance with Section 2.03;
provided that:

  
                      
            (a)   any Interest Period which would
            otherwise end on a day which is not a Euro-Dollar Business
            Day shall, subject to the concluding proviso below, be extended to
            the next succeeding Euro-Dollar Business Day; and

                      
            (b)   no Interest Period may end after
            the Termination Date.

  

          
"Internal Revenue Code" means the Internal Revenue Code of
1986, as amended, or any successor statute.

          
"Issuing Bank" means JPMorgan Chase Bank or any other Bank
designated by the Borrower that may agree to issue letters of credit hereunder
pursuant to an instrument in form reasonably satisfactory to the Administrative
Agent, each in its capacity as an issuer of a Letter of Credit hereunder.

          
"Letter of Credit" means a letter of credit to be issued
hereunder by an Issuing Bank.

          
"Letter of Credit Liabilities" means, for any Bank and at any
time, such Bank's ratable participation in the sum of (x) the aggregate
amount then owing by the Borrower in respect of amounts paid by the Issuing Bank
upon a drawing under a Letter of Credit issued hereunder and (y) the aggregate
amount then available for drawing under all outstanding Letters of Credit.

          
"Letter of Credit Termination Date" means the fifth Domestic
Business Day prior to the Termination Date.

          
"LIBOR Auction" means a solicitation of Competitive Bid Quotes
setting forth Competitive Bid Margins based on the London Interbank Offered Rate
pursuant to Section 2.03.

          
"Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest, hypothecation or encumbrance of any kind in
respect of such asset, provided that, for the purposes of this Agreement,
"Lien" shall not mean (i) security interests under Article 9 of
the Uniform Commercial Code in respect of sales of accounts or chattel paper, or
(ii) a lessee's interest in any asset leased by the Borrower or any
Subsidiary as lessor in the ordinary course of business. For the purposes of
this Agreement, the Borrower or any Subsidiary shall be deemed to own subject to
a Lien any asset which it has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement relating to such asset.

          
"Loan" means a Committed Loan or a Competitive Bid Loan and
"Loans" means Committed Loans or Competitive Bid Loans or any
combination of the foregoing.

          
"London Interbank Offered Rate" has the meaning set forth in
Section 2.07(b).

          
"Material Debt" means Debt (other than the Notes) of the
Borrower and/or one or more of its Subsidiaries, arising in one or more related
or unrelated transactions, in an aggregate principal amount exceeding
$50,000,000.

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

          
"Multi-employer Plan" means, at any time, a "multi-employer
plan" as defined in Section 4001(a)(3) of ERISA which is maintained for
employees of the Borrower or any ERISA Affiliate of the Borrower or, for
purposes of Sections 4204 and 4212(c) of ERISA, within the preceding five plan
years has been maintained for employees of the Borrower or any ERISA Affiliate
of the Borrower, including for these purposes any Person which ceased to be an
ERISA Affiliate of the Borrower during such five year period.

          
"Non-recourse Debt" of the Borrower or a Subsidiary
means any obligations for borrowed money of the Borrower or a Subsidiary secured
by specific assets, which obligations, in accordance with generally accepted
accounting principles, are not reflected in the balance sheet of the Borrower or
a Subsidiary and are issued pursuant to or evidenced by an instrument which
limits the recourse against the obligor thereunder to such specific assets, and
(in the case of all Non-recourse Debt incurred after the date hereof),
if under applicable law in respect of such obligations, such assets or such
obligor, at the time any such obligation is created, a holder of such obligation
could ever become entitled to recourse against the obligor pursuant to
§ 1111(b) of the Bankruptcy Reform Act of 1978 (11 U.S.C.
§ 1111(b)) or any other provisions of any bankruptcy,
insolvency or other law of any jurisdiction, such instrument also contains a
provision to the effect that such holder's recourse claim in respect of
such obligation shall be and remain in all respects subordinate and junior to
all Debt evidenced by the Notes and such holder shall not be entitled to receive
any payment, under any condition, in respect of any obligation, other than the
proceeds of such specific assets, until all Notes and all other amounts which
may become due pursuant to this Agreement, or are stated in this Agreement to
become due, shall have been paid in full or funds for their payment shall have
been duly and sufficiently provided.

          
"Notes" means promissory notes of the Borrower, substantially
in the form of Exhibit A hereto, evidencing the obligation of the Borrower to
repay the Loans, and "Note" means any one of such promissory
notes issued hereunder.

          
"Notice of Borrowing" means a Notice of Committed Borrowing (as
defined in Section 2.02) or a Notice of Competitive Bid Borrowing (as defined in
Section 2.03(f)).

          
"Notice of Interest Rate Election" has the meaning set forth in
Section 2.08.

          
"Parent" means, with respect to any Bank, any Person
controlling such Bank.

          
"Participant" has the meaning set forth in Section 9.06(b).

          
"Person" means an individual, a corporation, a partnership, a
limited liability company, an association, a trust or any other entity or
organization, including a government or political subdivision or an agency or
instrumentality thereof.

          
"Pension Plan" means, at any time, any employee pension benefit
plan (within the meaning of Section 3(2) of ERISA) which is subject to the
provisions of Title IV of ERISA (other than a Multi-employer Plan) and which is
maintained for employees of the Borrower or any of its ERISA Affiliates or, for
purposes of Section 4069 of ERISA, has at any time within the preceding five
years been maintained for employees of any Person which was at such time an
ERISA Affiliate of the Borrower.

          
"Percentage" means, with respect to any Bank at any time, the
percentage which the amount of its Commitment at such time represents of the
aggregate amount of all the Commitments at such time. At any time after the
Commitments shall have terminated, the term "Percentage" shall refer
to a Bank's Percentage immediately before such termination, adjusted to
reflect any subsequent assignments pursuant to Section 9.06(c).

          
"Permitted Securitization Obligations" means obligations of the
Borrower or any of its Subsidiaries incurred in connection with any
Securitization Transaction; provided, however, that, if (i) there is
recourse to the Borrower or any of its Subsidiaries (other than a Special
Purpose Subsidiary) for credit defaults by the obligors in respect of the
Receivables that are the subject of such Securitization Transaction and (ii)
such recourse is not limited to such Receivables and the Receivables Related
Assets (or undivided or beneficial interests in such Receivables and Receivables
Related Assets) that are the subject of such Securitization Transaction then
such obligations shall not be considered "Permitted Securitization
Obligations" within the meaning of this definition to the extent that, in
accordance with generally accepted accounting principles, such obligations would
be required to be included as a liability on a consolidated balance sheet of the
Borrower or its Consolidated Subsidiaries.

          
"Pricing Schedule" means the Pricing Schedule attached hereto.

          
"Prime Rate" means the rate of interest publicly announced by
JPMorgan Chase Bank in New York City from time to time as its Prime Rate.

          
"Qualifying Subordinated Debt" means Debt of the Borrower owing
to Textron or another Affiliate; provided that such Debt is subordinated
to the Loans and the obligations of the Borrower hereunder pursuant to a
subordination agreement substantially in the form of Exhibit I hereto.

          
"Qualifying Subordinated Obligations" means Debt and/or other
obligations of the Borrower owing to Textron or another Affiliate; provided
that such Debt and/or other obligations are subordinated to the Loans and the
obligations of the Borrower hereunder pursuant to a subordination agreement
substantially in the form of Exhibit I hereto.

          
"Quarterly Payment Dates" means each March 31, June 30,
September 30 and December 31.

          
"Receivable" means any right of payment from or on behalf of
any obligor, whether constituting an account, chattel paper, instrument, general
intangible or otherwise, arising from (i) the financing by the Borrower or any
of its Subsidiaries of property, equipment or services or (ii) the leasing by
the Borrower or any of its Subsidiaries of property or equipment, and monies due
thereunder, security interests in the property, equipment and services financed
or leased thereby and any and all other related rights.

          
"Receivables Related Assets" means, in connection with any
Securitization Transaction with respect to particular Receivables, the
collective reference to: (i) any rights arising under the documentation
governing or relating to such Receivables (including rights in respect of Liens
securing such Receivables and other credit support in respect of such
Receivables), (ii) any proceeds of such Receivables and any lockboxes or
accounts in which such proceeds are deposited, (iii) spread accounts and other
similar accounts (and any amounts on deposit therein) established in connection
with such Securitization Transaction, (iv) any warranty, indemnity, dilution and
other intercompany claim arising out of the documentation evidencing such
Securitization Transaction and (v) any rights or ownership interests in respect
of the property or equipment leased or financed pursuant to such Receivables.

          
"Reference Banks" means the principal London offices of
Citibank, N.A., Deutsche Bank AG and JPMorgan Chase Bank.

          
"Regulation U" means Regulation U of the Board of Governors of
the Federal Reserve System, as in effect from time to time.

          
"Reimbursement Obligation" has the meaning specified in Section
2.18(c).

          
"Required Banks" means at any time Banks having more than 50%
of the aggregate amount of the Commitments or, if the Commitments shall have
been terminated, holding more than 50% of the Total Outstanding Amount.

          
"Restricted Payment" means (i) any dividend or other
distribution on any shares of the Borrower's capital stock (except
dividends (x) payable on preferred stock but characterized as interest payments
under generally accepted accounting principles or (y) payable solely in shares
of its capital stock) or (ii) any payment on account of the purchase,
redemption, retirement or acquisition of (a) any shares of the
Borrower's capital stock or (b) any option, warrant or other right to
acquire shares of the Borrower's capital stock.

          
"Revolving Credit Period" means the period from and including
the Effective Date to and including the Termination Date.

          
"S&P" means Standard & Poor's Ratings Group.

          
"Special Purpose Subsidiary" means any Subsidiary of the
Borrower which (i) is formed for the purpose of effecting a Securitization
Transaction and engaging in other activities reasonably related thereto and (ii)
is structured as a "bankruptcy-remote subsidiary" in
accordance with customary practices in the asset-backed securitization
market.

          
"Securitization Transaction" means any transaction or series of
transactions that have been or may be entered into by the Borrower or any of its
Subsidiaries in which the Borrower or any of its Subsidiaries may sell, convey
or otherwise transfer to any other Person, or may grant a security interest in,
any Receivables or Receivables Related Assets or any undivided or beneficial
ownership interests therein (whether such Receivables or Receivables Related
Assets are then existing or arising in the future) of the Borrower or any of its
Subsidiaries, provided that after giving effect to such transaction or
series of transactions, the Receivables (or interests therein) which are the
subject of such transaction or series of transactions are, in accordance with
generally accepted accounting principles, no longer reflected as assets on a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries.

          
"Subsidiary" of any Person means (i) any corporation of which
securities having ordinary voting power to elect a majority of the board of
directors are at the time directly or indirectly owned by such Person or (ii)
any other entity which constitutes a Consolidated Subsidiary; provided
that the term "Subsidiary" shall not include any corporation formed
and maintained by the Borrower in the ordinary course of business solely to hold
and dispose of assets acquired in connection with foreclosure, repossession or
workout of the Borrower's leases or loans or any entity owned by such
corporation. Unless otherwise specified "Subsidiary" means a
Subsidiary of the Borrower.

          
"Support Agreement" means the Support Agreement dated as of May
25, 1994, between the Borrower and Textron, substantially in the form of Exhibit
K, as the same may be amended and in effect from time to time in accordance with
the provisions thereof and hereof.

          
"Syndication Agent" means each of Bank of America, N.A., Bank
One, NA, Citibank, N.A. and Deutsche Bank AG New York Branch, in its capacity as
syndication agent in respect of this Agreement.

          
"Termination Date" means July 28, 2008, or, if such day is not
a Euro-Dollar Business Day, the next preceding Euro-Dollar
Business Day.

          
"Termination Event" means (i) a "Reportable Event"
described in Section 4043 of ERISA and the regulations issued thereunder (other
than a "Reportable Event" not subject to the provision for
30-day notice to the Pension Benefit Guaranty Corporation under such
regulations), or (ii) the withdrawal of the Borrower or any of its ERISA
Affiliates from a Pension Plan during a plan year in which it was a
"substantial employer" as defined in Section 4001(a)(2) of ERISA, or
(iii) the filing of a notice of intent to terminate a Pension Plan or the
treatment of a Pension Plan amendment as a termination under Section 4041 of
ERISA, or (iv) the institution of proceedings to terminate a Pension Plan by the
Pension Benefit Guaranty Corporation, or (v) any other event or condition which
might constitute grounds under ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan.

          
"Textron" means Textron Inc., a Delaware corporation, and its
successors.

          
"Total Outstanding Amount" means, at any time, the sum of (i)
the aggregate outstanding principal amount of the Loans (including both
Committed Loans and Competitive Bid Loans) determined at such time after giving
effect, if one or more Loans are being made at such time, to any substantially
concurrent application of the proceeds thereof to repay one or more other Loans
plus, without duplication, (ii) the aggregate amount of the Letter of Credit
Liabilities of all Banks at such time.

          
"Utilization" has the meaning specified in the Pricing
Schedule.

          
"Wholly-Owned Subsidiary" of any Person means any
Subsidiary all of the shares of capital stock or other ownership interests of
which (except directors' qualifying shares) are at the time directly or
indirectly owned by such Person.

          Section
1.2. Accounting Terms and Determinations. Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to
be delivered hereunder shall be prepared in accordance with generally accepted
accounting principles as in effect from time to time, applied on a basis
consistent (except for changes concurred in by the Borrower's
independent public accountants) with the most recent audited consolidated
financial statements of the Borrower and its Consolidated Subsidiaries delivered
to the Banks; provided that, if the Borrower notifies the Administrative
Agent that the Borrower wishes to amend any covenant in Article 5 to eliminate
the effect of any change in generally accepted accounting principles on the
operation of such covenant (or if the Administrative Agent notifies the Borrower
that the Required Banks wish to amend Article 5 for such purpose), then the
Borrower's compliance with such covenant shall be determined on the
basis of generally accepted accounting principles in effect immediately before
the relevant change in generally accepted accounting principles became
effective, until either such notice is withdrawn or such covenant is amended in
a manner satisfactory to the Borrower and the Required Banks.

          Section
1.3. Types of Borrowing. The term "Borrowing" denotes (i) the
aggregation of Loans made or to be made to the Borrower pursuant to Article 2 on
the same day, all of which Loans are of the same type (subject to Article 8)
and, except in the case of Base Rate Loans, have the same initial Interest
Period or (ii) if the context so requires, the borrowing of such Loans.
Borrowings are classified for purposes of this Agreement either (i) by reference
to the pricing of Loans comprising such Borrowing (e.g., a
"Euro-Dollar Borrowing" is a Borrowing comprised of
Euro-Dollar Loans) or (ii) by reference to the provisions of Article 2
under which participation therein is determined (i.e., a "Committed
Borrowing" is a Borrowing under Section 2.01 in which all Banks participate
in proportion to their Commitments, while a "Competitive Bid
Borrowing" is a Borrowing under Section 2.03 in which one or more Banks
participate on the basis of their bids).

ARTICLE 2

The Credits

          Section
2.1. Commitments to Lend. Each Bank severally agrees, on the terms and
conditions set forth in this Agreement, to make loans to the Borrower pursuant
to this Section from time to time during the Revolving Credit Period; provided
that, immediately after each such loan is made: (i) the sum of the aggregate
outstanding principal amount of such Bank's Committed Loans plus the
aggregate amount of such Bank's Letter of Credit Liabilities shall not
exceed its Commitment and (ii) the Total Outstanding Amount shall not exceed the
aggregate amount of the Commitments. Each Borrowing under this Section shall be
in an aggregate principal amount of $25,000,000 or any larger multiple of
$1,000,000 (except that any such Borrowing may be in the aggregate amount
available within the limitations in the foregoing proviso) and shall be made
from the several Banks ratably in proportion to their respective Commitments.
Within the foregoing limits, the Borrower may borrow under this Section, repay,
or to the extent permitted by Section 2.12, prepay Loans and reborrow under this
Section 2.01.

          Section
2.2. Notice of Committed Borrowing. The Borrower shall give the
Administrative Agent notice (a "Notice of Committed Borrowing")
not later than (x) 12:00 Noon (New York City time) on the date of each Base Rate
Borrowing and (y) 10:30 A.M. (New York City time) on the third
Euro-Dollar Business Day before each Euro-Dollar Borrowing,
specifying:

          
(a)    the date of such Borrowing, which shall be a
Domestic Business Day in the case of a Base Rate Borrowing or a
Euro-Dollar Business Day in the case of a Euro-Dollar Borrowing,

          
(b)    the aggregate amount of such Borrowing,

          
(c)    whether the Loans comprising such Borrowing are
to be Base Rate Loans or Euro-Dollar Loans, and

          
(d)    in the case of a Euro-Dollar Borrowing,
the duration of the Interest Period applicable thereto, subject to the
provisions of the definition of Interest Period.

          Section
2.3. Competitive Bid Borrowings.

          
(a)    The Competitive Bid Option. In addition
to Committed Borrowings pursuant to Section 2.01, the Borrower may, as set forth
in this Section, request the Banks to make offers to make Competitive Bid Loans
to the Borrower from time to time during the Revolving Credit Period. The Banks
may, but shall have no obligation to, make such offers and the Borrower may, but
shall have no obligation to, accept any such offers in the manner set forth in
this Section.

          
(b)    Competitive Bid Quote Request. When the
Borrower wishes to request offers to make Competitive Bid Loans under this
Section, it shall transmit to the Administrative Agent by telex or facsimile
transmission a Competitive Bid Quote Request substantially in the form of
Exhibit B hereto so as to be received no later than 10:30 A.M. (New York City
time) on (x) the fifth Euro-Dollar Business Day prior to the date of
Borrowing proposed therein, in the case of a LIBOR Auction or (y) the
Domestic Business Day next preceding the date of Borrowing proposed therein, in
the case of an Absolute Rate Auction (or, in either case, such other time or
date as the Borrower and the Administrative Agent shall have mutually agreed and
shall have notified to the Banks not later than the date of the Competitive Bid
Quote Request for the first LIBOR Auction or Absolute Rate Auction for which
such change is to be effective) specifying:

               (i)    the proposed date of Borrowing, which shall
    be a Euro-Dollar Business Day in the case of a LIBOR Auction or a
    Domestic Business Day in the case of an Absolute Rate Auction,

              
    (ii)    the aggregate amount of such Borrowing,
    which shall be $25,000,000 or a larger multiple of $1,000,000,

              
    (iii)    the duration of the Interest Period
    applicable thereto, subject to the provisions of the definition of Interest
    Period, and

  
              
    (iv)    whether the Competitive Bid Quotes
    requested are to set forth a Competitive Bid Margin or a Competitive Bid
    Absolute Rate.

  

          The
Borrower may request offers to make Competitive Bid Loans for more than one
Interest Period in a single Competitive Bid Quote Request. No Competitive Bid
Quote Request shall be given within five Euro-Dollar Business Days (or
such other number of days as the Borrower and the Administrative Agent may
agree) of any other Competitive Bid Quote Request.

          
(c)    Invitation for Competitive Bid Quotes.
Promptly upon receipt of a Competitive Bid Quote Request, the Administrative
Agent shall send to the Banks by telex or facsimile transmission an Invitation
for Competitive Bid Quotes substantially in the form of Exhibit C hereto, which
shall constitute an invitation by the Borrower to each Bank to submit
Competitive Bid Quotes offering to make the Competitive Bid Loans to which such
Competitive Bid Quote Request relates in accordance with this Section.

          
(d)    Submission and Contents of Competitive Bid
Quotes. (i) Each Bank may submit a Competitive Bid Quote containing an offer
or offers to make Competitive Bid Loans in response to any Invitation for
Competitive Bid Quotes. Each Competitive Bid Quote must comply with the
requirements of this subsection (d) and must be submitted to the Administrative
Agent by telex or facsimile transmission at its offices specified in or pursuant
to Section 9.01 not later than (x) 2:00 P.M. (New York City time) on
the fourth Euro-Dollar Business Day prior to the proposed date of
Borrowing, in the case of a LIBOR Auction or (y) 9:30 A.M. (New York City time)
on the proposed date of Borrowing, in the case of an Absolute Rate Auction (or,
in either case, such other time or date as the Borrower and the Administrative
Agent shall have mutually agreed and shall have notified to the Banks not later
than the date of the Competitive Bid Quote Request for the first LIBOR Auction
or Absolute Rate Auction for which such change is to be effective); provided
that Competitive Bid Quotes submitted by the Administrative Agent (or any
affiliate of the Administrative Agent) in the capacity of a Bank may be
submitted, and may only be submitted, if the Administrative Agent or such
affiliate notifies the Borrower of the terms of the offer or offers contained
therein not later than (x) one hour prior to the deadline for the other Banks,
in the case of a LIBOR Auction or (y) 15 minutes prior to the deadline for the
other Banks, in the case of an Absolute Rate Auction. Subject to Articles 3 and
6, any Competitive Bid Quote so made shall be irrevocable except with the
written consent of the Administrative Agent given on the instructions of the
Borrower.

              
    (ii)    Each Competitive Bid Quote shall be in
    substantially the form of Exhibit D hereto and shall in any case specify:

  
                  
        (A)    the proposed date of Borrowing,

                  
        (B)    the principal amount of the Competitive
        Bid Loan for which each such offer is being made, which principal amount
        (w) may be greater than or less than the Commitment of the
        quoting Bank, (x) must be $5,000,000 or a larger multiple of $1,000,000,
        (y) may not exceed the principal amount of Competitive Bid Loans for
        which offers were requested and (z) may be subject to an aggregate
        limitation as to the principal amount of Competitive Bid Loans for which
        offers being made by such quoting Bank may be accepted,

                  
        (C)    in the case of a LIBOR Auction, the
        margin above or below the applicable London Interbank Offered Rate (the
        "Competitive Bid Margin") offered for each such
        Competitive Bid Loan, expressed as a percentage (specified to the
        nearest 1/10,000th of 1%) to be added to or subtracted from such base
        rate,

                  
        (D)    in the case of an Absolute Rate
        Auction, the rate of interest per annum (specified to the nearest
        1/10,000th of 1%) (the "Competitive Bid Absolute Rate")
        offered for each such Competitive Bid Loan, and

                  
        (E)    the identity of the quoting Bank.

    
      
                                                                A Competitive
                                                                Bid Quote may
                                                                set forth up to
                                                                five separate
                                                                offers by the
                                                                quoting Bank
                                                                with respect to
                                                                each Interest
                                                                Period specified
                                                                in the related
                                                                Invitation for
                                                                Competitive Bid
                                                                Quotes.

      

              
    (iii)    Any Competitive Bid Quote shall be
    disregarded if it:

    

                  
        (A)    is not substantially in conformity with
        Exhibit D hereto or does not specify all of the information required by
        subsection (d)(ii);

                  
        (B)    contains qualifying, conditional or
        similar language;

                  
        (C)    proposes terms other than or in
        addition to those set forth in the applicable Invitation for Competitive
        Bid Quotes; or

  

  
                  
        (D)    arrives after the time set forth in
        subsection (d)(i).

  

          
(e)    Notice to Borrower. The Administrative
Agent shall promptly notify the Borrower of the terms (x) of any Competitive Bid
Quote submitted by a Bank that is in accordance with subsection (d) and (y) of
any Competitive Bid Quote that amends, modifies or is otherwise inconsistent
with a previous Competitive Bid Quote submitted by such Bank with respect to the
same Competitive Bid Quote Request. Any such subsequent Competitive Bid Quote
shall be disregarded by the Administrative Agent unless such subsequent
Competitive Bid Quote is submitted solely to correct a manifest error in such
former Competitive Bid Quote. The Administrative Agent's notice to the
Borrower shall specify (A) the aggregate principal amount of Competitive Bid
Loans for which offers have been received for each Interest Period specified in
the related Competitive Bid Quote Request, (B) the respective principal amounts
and Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may
be, so offered and (C) if applicable, limitations on the aggregate principal
amount of Competitive Bid Loans for which offers in any single Competitive Bid
Quote may be accepted.

          
(f )   Acceptance and Notice by Borrower. Not
later than 10:30 A.M. (New York City time) on (x) the third Euro-Dollar
Business Day prior to the proposed date of Borrowing, in the case of a LIBOR
Auction or (y) the proposed date of Borrowing, in the case of an Absolute Rate
Auction (or, in either case, such other time or date as the Borrower and the
Administrative Agent shall have mutually agreed and shall have notified to the
Banks not later than the date of the Competitive Bid Quote Request for the first
LIBOR Auction or Absolute Rate Auction for which such change is to be
effective), the Borrower shall notify the Administrative Agent of its acceptance
or non-acceptance of the offers so notified to it pursuant to subsection
(e). In the case of acceptance, such notice (a "Notice of Competitive
Bid Borrowing") shall specify the aggregate principal amount of offers
for each Interest Period that are accepted. The Borrower may accept any
Competitive Bid Quote in whole or in part; provided that:

  
               (i)    the aggregate principal amount of each
    Competitive Bid Borrowing may not exceed the applicable amount set forth in
    the related Competitive Bid Quote Request,

              
    (ii)    the principal amount of each Competitive
    Bid Borrowing must be $25,000,000 or a larger multiple of $1,000,000,

              
    (iii)    acceptance of offers may only be made on
    the basis of ascending Competitive Bid Margins or Competitive Bid Absolute
    Rates, as the case may be,

  

  
              
    (iv)    the Borrower may not accept any offer that
    is described in subsection (d)(iii) or that otherwise fails to comply with
    the requirements of this Agreement; and

              
    (v)    immediately after such Competitive Bid
    Borrowing is made, the aggregate outstanding principal amount of the Loans
    shall not exceed the aggregate amount of the Commitments.

  

          
(g)    Allocation by Administrative Agent. If
offers are made by two or more Banks with the same Competitive Bid Margins or
Competitive Bid Absolute Rates, as the case may be, for a greater aggregate
principal amount than the amount in respect of which such offers are accepted
for the related Interest Period, the principal amount of Competitive Bid Loans
in respect of which such offers are accepted shall be allocated by the
Administrative Agent among such Banks as nearly as possible (in multiples of
$1,000,000, as the Administrative Agent may deem appropriate) in proportion to
the aggregate principal amounts of such offers. Determinations by the
Administrative Agent of the amounts of Competitive Bid Loans shall be conclusive
in the absence of manifest error.

          Section
2.4. Notice to Banks; Funding of Loans. (a) Upon receipt of a Notice of
Borrowing, the Administrative Agent shall promptly notify each Bank of the
contents thereof and of such Bank's share (if any) of such Borrowing and
such Notice of Borrowing shall not thereafter be revocable by the Borrower.

          
(b)    Not later than 2:00 P.M. (New York City time)
on the date of each Borrowing, each Bank participating therein shall (except as
provided in subsection (c) of this Section) make available its share of such
Borrowing, in Federal or other funds immediately available in New York City, to
the Administrative Agent at its address referred to in Section 9.01. Unless the
Administrative Agent determines that any applicable condition specified in
Article 3 has not been satisfied, the Administrative Agent will make the funds
so received from the Banks available to the Borrower at the Administrative
Agent's aforesaid address.

          
(c)    If any Bank makes a new Loan hereunder on a day
on which the Borrower is to repay all or any part of an outstanding Loan from
such Bank, such Bank shall apply the proceeds of its new Loan to make such
repayment and only an amount equal to the difference (if any) between the amount
being borrowed and the amount being repaid shall be made available by such Bank
to the Administrative Agent as provided in subsection (b), or remitted by the
Borrower to the Administrative Agent as provided in Section 2.13, as the case
may be.

          
(d)    Unless the Administrative Agent shall have
received notice from a Bank prior to the date of any Borrowing that such Bank
will not make available to the Administrative Agent such Bank's share of
such Borrowing, the Administrative Agent may assume that such Bank has made such
share available to the Administrative Agent on the date of such Borrowing in
accordance with subsections (b) and (c) of this Section 2.04 and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount. If and to the extent that such
Bank shall not have so made such share available to the Administrative Agent,
such Bank and the Borrower severally agree to repay to the Administrative Agent
forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to the Borrower until
the date such amount is repaid to the Administrative Agent, at (i) in the case
of the Borrower, a rate per annum equal to the higher of the Federal Funds Rate
and the interest rate applicable thereto pursuant to Section 2.07 or (ii) in the
case of such Bank, the Federal Funds Rate. If such Bank shall repay to the
Administrative Agent such corresponding amount, such amount so repaid shall
constitute such Bank's Loan included in such Borrowing for purposes of
this Agreement.

          Section
2.5. Notes. (a) The Loans of each Bank shall be evidenced by a single Note
payable to the order of such Bank for the account of its Applicable Lending
Office in an amount equal to the aggregate unpaid principal amount of such
Bank's Loans.

          
(b)    Each Bank may, by notice to the Borrower and
the Administrative Agent, request that its Loans of a particular type be
evidenced by a separate Note in an amount equal to the aggregate unpaid
principal amount of such Loans. Each such Note shall be in substantially the
form of Exhibit A hereto with appropriate modifications to reflect the fact that
it evidences solely Loans of the relevant type. Each reference in this Agreement
to the "Note" of such Bank shall be deemed to refer to and include any
or all of such Notes, as the context may require.

          
(c)    Upon receipt of each Bank's Note
pursuant to Section 3.01(b), the Administrative Agent shall forward such Note to
such Bank. Each Bank shall record the date, amount, type and maturity of each
Loan made by it and the date and amount of each payment of principal made by the
Borrower with respect thereto, and may, if such Bank so elects in connection
with any transfer or enforcement of its Note, endorse on the schedule forming a
part thereof appropriate notations to evidence the foregoing information with
respect to each such Loan then outstanding; provided that the failure of
any Bank to make any such recordation or endorsement shall not affect the
obligations of the Borrower hereunder or under the Notes. Each Bank is hereby
irrevocably authorized by the Borrower so to endorse its Note and to attach to
and make a part of its Note a continuation of any such schedule as and when
required.

          Section
2.6. Maturity of Loans. (a) Each Committed Loan shall mature, and the
principal amount thereof shall be due and payable (together with accrued
interest thereon), on the Termination Date.

          
(b)    Each Competitive Bid Loan included in any
Competitive Bid Borrowing shall mature, and the principal amount thereof shall
be due and payable (together with accrued interest thereon), on the last day of
the Interest Period applicable to such Borrowing.

          Section
2.7. Interest Rates. (a) Each Base Rate Loan shall bear interest on the
outstanding principal amount thereof, for each day from the date such Loan is
made until it becomes due, at a rate per annum equal to the Base Rate for such
day. Such interest shall be payable quarterly in arrears on each Quarterly
Payment Date. Any overdue principal of or interest on any Base Rate Loan shall
bear interest, payable on demand, for each day until paid at a rate per annum
equal to the sum of 2% plus the Base Rate for such day.

          
(b)    Each Euro-Dollar Loan shall bear
interest on the outstanding principal amount thereof, for each day during each
Interest Period applicable thereto, at a rate per annum equal to the sum of the
Euro-Dollar Margin for such day plus the London Interbank Offered Rate
applicable to such Interest Period. Such interest shall be payable for each
Interest Period on the last day thereof and, if such Interest Period is longer
than three months, at intervals of three months after the first day thereof.

          The
"London Interbank Offered Rate" applicable to any Interest
Period means the average (rounded upward, if necessary, to the next higher 1/16
of 1%) of the respective rates per annum at which deposits in dollars are
offered to each of the Euro-Dollar Reference Banks in the London
interbank market at approximately 11:00 A.M. (London time) two
Euro-Dollar Business Days before the first day of such Interest Period
in an amount approximately equal to the principal amount of the
Euro-Dollar Loan of such Euro-Dollar Reference Bank to which
such Interest Period is to apply and for a period of time comparable to such
Interest Period.

          
(c)    Any overdue principal of or interest on any
Euro-Dollar Loan shall bear interest, payable on demand, for each day
from and including the date payment thereof was due to but excluding the date of
actual payment, at a rate per annum equal to the sum of 2% plus the higher of (i)
the sum of the Euro-Dollar Margin for such day plus the London Interbank
Offered Rate applicable to such Loan on the day before such payment was due and
(ii) the Euro-Dollar Margin for such day plus the quotient obtained
(rounded upward, if necessary, to the next higher 1/100 of 1%) by dividing (x)
the average (rounded upward, if necessary, to the next higher 1/16 of 1%) of the
respective rates per annum at which one day (or, if such amount due remains
unpaid more than three Euro-Dollar Business Days, then for such other
period of time not longer than six months as the Administrative Agent may
select) deposits in dollars in an amount approximately equal to such overdue
payment due to each of the Euro-Dollar Reference Banks are offered to
such Euro-Dollar Reference Bank in the London interbank market for the
applicable period determined as provided above by (y) 1.00 minus the
Euro-Dollar Reserve Percentage (or, if the circumstances described in
clause (a) or (b) of Section 8.01 shall exist, at a rate per annum equal to the
sum of 2% plus the rate applicable to Base Rate Loans for such day).

          
(d)    Subject to Section 8.01(a), each Competitive
Bid LIBOR Loan shall bear interest on the outstanding principal amount thereof,
for the Interest Period applicable thereto, at a rate per annum equal to the sum
of the London Interbank Offered Rate for such Interest Period (determined in
accordance with Section 2.07(b) as if the related Competitive Bid LIBOR
Borrowing were a Euro-Dollar Borrowing) plus (or minus) the Competitive
Bid Margin quoted by the Bank making such Loan in accordance with Section 2.03.
Each Competitive Bid Absolute Rate Loan shall bear interest on the outstanding
principal amount thereof, for the Interest Period applicable thereto, at a rate
per annum equal to the Competitive Bid Absolute Rate quoted by the Bank making
such Loan in accordance with Section 2.03. Such interest shall be payable for
each Interest Period on the last day thereof and, if such Interest Period is
longer than three months, at intervals of three months after the first day
thereof. Any overdue principal of or interest on any Competitive Bid Loan shall
bear interest, payable on demand, for each day until paid at a rate per annum
equal to the sum of 2% plus the Base Rate for such day.

          
(e)    The Administrative Agent shall determine each
interest rate applicable to the Loans hereunder. The Administrative Agent shall
give prompt notice to the Borrower and the participating Banks of each rate of
interest so determined, and its determination thereof shall be conclusive in the
absence of manifest error.

          
(f)    Each Reference Bank agrees to use its best
efforts to furnish quotations to the Administrative Agent as contemplated by
this Section. If any Reference Bank does not furnish a timely quotation, the
Administrative Agent shall determine the relevant interest rate on the basis of
the quotation or quotations furnished by the remaining Reference Bank or Banks
or, if none of such quotations is available on a timely basis, the provisions of
Section 8.01 shall apply.

          Section
2.8. Method of Electing Interest Rates. (a) The Loans included in each
Committed Borrowing shall bear interest initially at the type of rate specified
by the Borrower in the applicable Notice of Committed Borrowing. Thereafter, the
Borrower may from time to time elect to change or continue the type of interest
rate borne by each Group of Loans (subject to Section 2.08(d) and the provisions
of Article 8), as follows:

  
               (i)    if such Loans are Base Rate Loans, the
    Borrower may elect to convert such Loans to Euro-Dollar Loans as of
    any Euro-Dollar Business Day; and

              
    (ii)    if such Loans are Euro-Dollar
    Loans, the Borrower may elect to convert such Loans to Base Rate Loans as of
    any Domestic Business Day or to continue such Loans as Euro-Dollar
    Loans for an additional Interest Period, subject to Section 2.14 if any such
    conversion is effective on any day other than the last day of an Interest
    Period applicable to such Loans.

  

          Each
such election shall be made by delivering a notice (a "Notice of
Interest Rate Election") to the Administrative Agent not later than
10:30 A.M. (New York City time) on the third Euro-Dollar Business Day
before the conversion or continuation selected in such notice is to be
effective. A Notice of Interest Rate Election may, if it so specifies, apply to
only a portion of the aggregate principal amount of the relevant Group of Loans;
provided that (i) such portion is allocated ratably among the Loans
comprising such Group and (ii) the portion to which such Notice applies, and the
remaining portion to which it does not apply, are each at least $25,000,000
(unless such portion is comprised of Base Rate Loans). If no such notice is
timely received before the end of an Interest Period for any Group of
Euro-Dollar Loans, the Borrower shall be deemed to have elected that
such Group of Loans be converted to Base Rate Loans at the end of such Interest
Period.

          
(b)    Each Notice of Interest Rate Election shall
specify:

  
              
    (i)    the Group of Loans (or portion thereof) to
    which such notice applies;

              
    (ii)    the date on which the conversion or
    continuation selected in such notice is to be effective, which shall comply
    with the applicable clause of Section 2.08(a) above;

              
    (iii)    if the Loans comprising such Group are
    to be converted, the new type of Loans and, if the Loans resulting from such
    conversion are to be Euro-Dollar Loans, the duration of the next
    succeeding Interest Period applicable thereto; and

              
    (iv)    if such Loans are to be continued as
    Euro-Dollar Loans for an additional Interest Period, the duration of
    such additional Interest Period.

  

          Each
Interest Period specified in a Notice of Interest Rate Election shall comply
with the provisions of the definition of Interest Period.

          
(c)    Promptly after receiving a Notice of Interest
Rate Election from the Borrower pursuant to Section 2.08(a) above, the
Administrative Agent shall notify each Bank of the contents thereof and such
notice shall not thereafter be revocable by the Borrower.

          
(d)    The Borrower shall not be entitled to elect to
convert any Committed Loans to, or continue any Committed Loans for an
additional Interest Period as, Euro-Dollar Loans if (i) the aggregate
principal amount of any Group of Euro-Dollar Loans created or continued
as a result of such election would be less than $25,000,000 or (ii) a Default
shall have occurred and be continuing when the Borrower delivers notice of such
election to the Administrative Agent.

          
(e)    If any Committed Loan is converted to a
different type of Loan, the Borrower shall pay, on the date of such conversion,
the interest accrued to such date on the principal amount being converted.

          
(f)    A conversion or continuation pursuant to this
Section 2.08 is not a Borrowing.

          Section
2.9. Fees. (a) Facility Fee. The Borrower shall pay to the
Administrative Agent for the account of the Banks ratably in proportion to their
Commitments a facility fee calculated for each day at the Facility Fee Rate on
the aggregate amount of the Commitments (whether used or unused) on such day.
Such facility fee shall accrue for the account of each Bank from and including
the Effective Date to but excluding the Termination Date; provided that
if any Loan shall remain outstanding beyond the Termination Date, the facility
fee shall accrue for the account of each Bank on such Bank's outstanding
Loans to but excluding the date such Loans are repaid in full.

          
(b)    The Borrower shall pay (i) to the Agent for
the account of the Banks ratably a letter of credit fee accruing daily on the
aggregate undrawn amount of all outstanding Letters of Credit at a rate per
annum equal to the Fully Drawn Margin for such day and (ii) to each Issuing Bank
for its own account, a letter of credit fronting fee accruing daily on the
aggregate amount then available for drawing under all Letters of Credit issued
by such Issuing Bank at such rate as may be mutually agreed between the Borrower
and such Issuing Bank from time to time.

          
(c)    Payments. Accrued fees under this
Section shall be payable quarterly in arrears on each March 31, June 30,
September 30 and December 31, commencing on the first such date to occur after
the date hereof, and upon the date of termination of the Commitments in their
entirety.

          Section
2.10. Optional Termination or Reduction of Commitments. (a) The Borrower
may, upon at least three Domestic Business Days' notice to the
Administrative Agent, (i) terminate the Commitments at any time, if no Loans or
Letter of Credit Liabilities are outstanding at such time or (ii) ratably reduce
from time to time by an aggregate amount of $25,000,000 or any larger multiple
of $1,000,000, the aggregate amount of the Commitments in excess of the Total
Outstanding Amount.

          
(b) Promptly after receiving a notice of prepayment pursuant to this Section,
the Administrative Agent shall notify each Bank of the contents thereof and of
such Bank's ratable share (if any) of such prepayment, and such notice
shall not thereafter be revocable by the Borrower.

          Section
2.11. Scheduled Termination of Commitments. Unless previously terminated,
the Commitments shall terminate on the Termination Date.

          Section
2.12. Optional Prepayments. (a) Subject in the case of any
Euro-Dollar Borrowing to Section 2.14, the Borrower may, upon at least
one Domestic Business Day's notice to the Administrative Agent, prepay
any Base Rate Borrowing (or any Competitive Bid Borrowing bearing interest at
the Base Rate pursuant to Section 8.01(a)) or upon at least three
Euro-Dollar Business Days' notice to the Administrative Agent,
prepay any Euro-Dollar Borrowing, in each case in whole at any time, or
from time to time in part in amounts aggregating $25,000,000 or any larger
multiple of $1,000,000, by paying the principal amount to be prepaid together
with accrued interest thereon to the date of prepayment. Each such optional
prepayment shall be applied to prepay ratably the Loans of the several Banks
included in such Borrowing.

          
(b)    Except as provided in Section 2.12(a), the
Borrower may not prepay all or any portion of the principal amount of any
Competitive Bid Loan prior to the maturity thereof.

          
(c)    Upon receipt of a notice of prepayment
pursuant to this Section, the Administrative Agent shall promptly notify each
Bank of the contents thereof and of such Bank's ratable share (if any)
of such prepayment and such notice shall not thereafter be revocable by the
Borrower.

          Section
2.13. General Provisions as to Payments. (a) The Borrower shall make each
payment of principal of, and interest on, the Loans and of fees hereunder, not
later than 2:00 P.M. (New York City time) on the date when due, in Federal or
other funds immediately available in New York City, to the Administrative Agent
at its address referred to in Section 9.01 (or shall provide evidence
satisfactory to the Administrative Agent, not later than such time, at such
address, that such payment has been released on behalf of the Borrower into the
FedWire, CHIPS or other appropriate payment system), in each case without setoff
or counterclaim. The Administrative Agent will promptly distribute to each Bank
its ratable share of each such payment received by the Administrative Agent for
the account of the Banks. Whenever any payment of principal of, or interest on,
the Domestic Loans or of fees shall be due on a day which is not a Domestic
Business Day, the date for payment thereof shall be extended to the next
succeeding Domestic Business Day. Whenever any payment of principal of, or
interest on, the Euro-Dollar Loans shall be due on a day which is not a
Euro-Dollar Business Day, the date for payment thereof shall be extended
to the next succeeding Euro-Dollar Business Day unless such
Euro-Dollar Business Day falls in another calendar month, in which case
the date for payment thereof shall be the next preceding Euro-Dollar
Business Day. Whenever any payment of principal of, or interest on, the
Competitive Bid Loans shall be due on a day which is not a Euro-Dollar
Business Day, the date for payment thereof shall be extended to the next
succeeding Euro-Dollar Business Day. If the date for any payment of
principal is extended by operation of law or otherwise, interest thereon shall
be payable for such extended time.

          
(b)    Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Banks hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Bank on such due
date an amount equal to the amount then due such Bank. If and to the extent that
the Borrower shall not have so made such payment, each Bank shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Bank
together with interest thereon, for each day from the date such amount is
distributed to such Bank until the date such Bank repays such amount to the
Administrative Agent, at the Federal Funds Rate.

          Section
2.14. Funding Losses. If the Borrower makes any payment of principal with
respect to any Fixed Rate Loan or any Fixed Rate Loan is converted to a
different type of Loan (whether such payment or conversion is pursuant to
Article 2, 6, or 8 or otherwise) on any day other than the last day of an
Interest Period applicable thereto, or the last day of an applicable period
fixed pursuant to Section 2.07(c), or if the Borrower fails to borrow, prepay,
convert or continue any Fixed Rate Loans after notice has been given to any Bank
in accordance with Section 2.04(a), 2.08(c) or 2.12(c), the Borrower shall
reimburse each Bank within 15 days after demand for any resulting loss or
expense incurred by it (or by an existing or prospective Participant in the
related Loan), including (without limitation) any loss incurred in obtaining,
liquidating or employing deposits from third parties, but excluding loss of
margin for the period after any such payment or conversion or failure to borrow,
prepay, convert or continue; provided that such Bank shall have delivered
to the Borrower a certificate as to the amount of such loss or expense, which
certificate shall be conclusive in the absence of manifest error.

          Section
2.15. Computation of Interest and Fees. Interest based on the Prime Rate
hereunder shall be computed on the basis of a year of 365 days (or 366 days in a
leap year) and paid for the actual number of days elapsed (including the first
day but excluding the last day). All other interest and fees shall be computed
on the basis of a year of 360 days and paid for the actual number of days
elapsed (including the first day but excluding the last day).

          Section
2.16. Regulation D Compensation. Each Bank may require the Borrower to
pay, contemporaneously with each payment of interest on the Euro-Dollar
Loans, additional interest on the related Euro-Dollar Loan of such Bank
at a rate per annum determined by such Bank up to but not exceeding the excess
of (i) (A) the applicable London Interbank Offered Rate divided by (B) one minus
the Euro-Dollar Reserve Percentage over (ii) the applicable London
Interbank Offered Rate. Any Bank wishing to require payment of such additional
interest (x) shall so notify the Borrower and the Administrative Agent, in which
case such additional interest on the Euro-Dollar Loans of such Bank
shall be payable to such Bank at the place indicated in such notice with respect
to each Interest Period commencing at least three Euro-Dollar Business
Days after the giving of such notice and (y) shall notify the Borrower at least
five Euro-Dollar Business Days prior to each date on which interest is
payable on the Euro-Dollar Loans of the amount then due it under this
Section.

          Section
2.17. Increased Commitments; Additional Banks. (a) From time to time
subsequent to the Effective Date, the Borrower may, upon at least 30
days' notice to the Administrative Agent (which shall promptly provide a
copy of such notice to the Banks), propose to increase the aggregate amount of
the Commitments by an amount not to exceed $333,000,000 (the amount of any such
increase, the "Increased Commitments"). Each Bank party to this
Agreement at such time shall have the right (but no obligation), for a period of
15 days following receipt of such notice, to elect by notice to the Borrower and
the Administrative Agent to increase its Commitment by a principal amount which
bears the same ratio to the Increased Commitments as its then Commitment bears
to the aggregate Commitments then existing.

          
(b)    If any Bank party to this Agreement shall not
elect to increase its Commitment pursuant to subsection (a) of this Section, the
Borrower may, within 10 days of the Bank's response, designate one or
more of the existing Banks or other financial institutions acceptable to the
Administrative Agent and the Borrower (which consent of the Administrative Agent
shall not be unreasonably withheld) which at the time agree to (i) in the case
of any such Person that is an existing Bank, increase its Commitment and (ii) in
the case of any other such Person (an "Additional Bank"),
become a party to this Agreement. The sum of the increases in the Commitments of
the existing Banks pursuant to this subsection (b) plus the Commitments of the
Additional Banks shall not in the aggregate exceed the unsubscribed amount of
the Increased Commitments.

          
(c)    An increase in the aggregate amount of the
Commitments pursuant to this Section 2.17 shall become effective upon the
receipt by the Administrative Agent of an agreement in form and substance
satisfactory to the Administrative Agent signed by the Borrower, by each
Additional Bank and by each other Bank whose Commitment is to be increased,
setting forth the new Commitments of such Banks and setting forth the agreement
of each Additional Bank to become a party to this Agreement and to be bound by
all the terms and provisions hereof, together with such evidence of appropriate
corporate authorization on the part of the Borrower with respect to the
Increased Commitments and such opinions of counsel for the Borrower with respect
to the Increased Commitments as the Administrative Agent may reasonably request.

          
(d)    Upon any increase in the aggregate amount of
the Commitments pursuant to this Section 2.17 that is not pro rata among all
Banks, (x) within five Domestic Business Days, in the case of any Group of Base
Rate Loans then outstanding, and at the end of the then current Interest Period
with respect thereto, in the case of any Group of Euro-Dollar Loans then
outstanding, the Borrower shall prepay such Group in its entirety and, to the
extent the Borrower elects to do so and subject to the conditions specified in
Article 3, the Borrower shall reborrow Committed Loans from the Banks in
proportion to their respective Commitments after giving effect to such increase,
until such time as all outstanding Committed Loans are held by the Banks in such
proportion and (y) effective upon such increase, the amount of the
participations held by each Bank in each Letter of Credit then outstanding shall
be adjusted such that, after giving effect to such adjustments, the Banks shall
hold participations in each such Letter of Credit in the proportion its
respective Commitment bears to the aggregate Commitments after giving effect to
such increase.

          Section
2.18. Letters of Credit.

          
(a)    Commitment to Issue Letters of Credit.
Subject to the terms and conditions hereof, each Issuing Bank agrees to issue
Letters of Credit from time to time before the Letter of Credit Termination Date
upon the request of the Borrower; provided that, immediately after each
Letter of Credit is issued (i) the Total Outstanding Amount shall not exceed the
aggregate amount of the Commitments and (ii) the aggregate amount of the Letter
of Credit Liabilities shall not exceed $100,000,000. Upon the date of issuance
by an Issuing Bank of a Letter of Credit, the Issuing Bank shall be deemed,
without further action by any party hereto, to have sold to each Bank, and each
Bank shall be deemed, without further action by any party hereto, to have
purchased from the Issuing Bank, a participation in such Letter of Credit and
the related Letter of Credit Liabilities in the proportion its respective
Commitment bears to the aggregate Commitments.

          
(b)    Method for Issuance; Terms; Extensions.

  
               (i)    The Borrower shall give the Issuing Bank
    notice at least three Domestic Business Days (or such shorter notice as may
    be acceptable to the Issuing Bank in its discretion) prior to the requested
    issuance of a Letter of Credit (or, in the case of renewal or extension,
    prior to the Issuing Bank's deadline for notice of nonextension)
    specifying the date such Letter of Credit is to be issued, and describing
    the terms of such Letter of Credit and the nature of the transactions to be
    supported thereby (such notice, including any such notice given in
    connection with the extension of a Letter of Credit, a "Notice of
    Issuance"). Upon receipt of a Notice of Issuance, the Issuing Bank
    shall promptly notify the Administrative Agent, and the Administrative Agent
    shall promptly notify each Bank of the contents thereof and of the amount of
    such Bank's participation in such Letter of Credit.

              
    (ii)    The obligation of the Issuing Bank to
    issue each Letter of Credit shall, in addition to the conditions precedent
    set forth in Section 3.02 be subject to the conditions precedent that such
    Letter of Credit shall be in such form and contain such terms as shall be
    reasonably satisfactory to the Issuing Bank and that the Borrower shall have
    executed and delivered such other customary instruments and agreements
    relating to such Letter of Credit as the Issuing Bank shall have reasonably
    requested. The Borrower shall also pay to the Issuing Bank for its own
    account issuance, drawing, amendment, settlement and extension charges, if
    any, in the amounts and at the times as agreed between the Borrower and the
    Issuing Bank.

              
    (iii)    The extension or renewal of any Letter
    of Credit shall be deemed to be an issuance of such Letter of Credit, and if
    any Letter of Credit contains a provision pursuant to which it is deemed to
    be extended unless notice of termination is given by the Issuing Bank, the
    Issuing Bank shall timely give such notice of termination unless it has
    theretofore timely received a Notice of Issuance and the other conditions to
    issuance of a Letter of Credit have also theretofore been met with respect
    to such extension. Each Letter of Credit shall expire at or before the close
    of business on the date that is one year after such Letter of Credit is
    issued (or, in the case of any renewal or extension thereof, one year after
    such renewal or extension); provided that (i) a Letter of Credit may
    contain a provision pursuant to which it is deemed to be extended on an
    annual basis unless notice of termination is given by the Issuing Bank and
    (ii) in no event will a Letter of Credit expire (including pursuant to a
    renewal or extension thereof) on a date later than the Letter of Credit
    Termination Date.

  

          
(c)    Payments; Reimbursement Obligations.

  
              
    (i)    Upon receipt from the beneficiary of any
    Letter of Credit of any notice of a drawing under such Letter of Credit, the
    Issuing Bank shall notify the Administrative Agent and the Administrative
    Agent shall promptly notify the Borrower and each other Bank as to the
    amount to be paid as a result of such demand or drawing and the date such
    payment is to be made by the Issuing Bank (the "Payment Date").
    The Borrower shall be irrevocably and unconditionally obligated to reimburse
    the Issuing Bank for any amounts paid by the Issuing Bank upon any drawing
    under any Letter of Credit, without presentment, demand, protest or other
    formalities of any kind. Such reimbursement shall be due on the Payment
    Date; provided that no such payment shall be due from the Borrower
    any earlier than the date of receipt by it of notice of its obligation to
    make such payment (or, if such notice is received by the Borrower after
    10:00 A.M. (New York City time) on any date, on the next succeeding Domestic
    Business Day); and provided further that if and to the extent any
    such reimbursement is not made by the Borrower in accordance with this
    clause (i) or clause (ii) below on the Payment Date, then (irrespective of
    when notice thereof is received by the Borrower), such reimbursement
    obligation shall bear interest, payable on demand, for each day from and
    including the Payment Date to but not including the date such reimbursement
    obligation is paid in full at a rate per annum equal to the rate applicable
    to Base Rate Loans for such day.

  

  
              
    (ii)    If the Commitments remain in effect on
    the Payment Date, all such amounts paid by the Issuing Bank and remaining
    unpaid by the Borrower after the date and time required by Section
    2.18(c)(i) (a "Reimbursement Obligation") shall, if and to
    the extent that the amount of such Reimbursement Obligation would be
    permitted as a Borrowing of Committed Loans pursuant to Section 3.02, and
    unless the Borrower otherwise instructs the Administrative Agent by not less
    than one Domestic Business Day's prior notice, convert automatically
    to Base Rate Loans on the date such Reimbursement Obligation arises. The
    Administrative Agent shall, on behalf of the Borrower (which hereby
    irrevocably directs the Administrative Agent so to act on its behalf), give
    notice no later than 12:00 Noon (New York City time) on such date requesting
    each Bank to make, and each Bank hereby agrees to make, a Base Rate Loan, in
    an amount equal to such Bank's Percentage of the Reimbursement
    Obligation with respect to which such notice relates. Each Bank shall make
    such Loan available to the Administrative Agent at its address referred to
    in Section 9.01 in immediately available funds, not later than 2:00 P.M.
    (New York City time), on the date specified in such notice. The
    Administrative Agent shall pay the proceeds of such Loans to the Issuing
    Bank, which shall immediately apply such proceeds to repay the Reimbursement
    Obligation.

              
    (iii)    To the extent the Reimbursement
    Obligation is not refunded by a Bank pursuant to clause (ii) above, such
    Bank will pay to the Administrative Agent, for the account of the Issuing
    Bank, immediately upon the Issuing Bank's demand at any time during
    the period commencing after such Reimbursement Obligation arises until
    reimbursement therefor in full by the Borrower, an amount equal to such
    Bank's Percentage of such Reimbursement Obligation, together with
    interest on such amount for each day from the date of the Issuing
    Bank's demand for such payment (or, if such demand is made after
    1:00 P.M. (New York City time) on such date, from the next succeeding
    Domestic Business Day) to the date of payment by such Bank of such amount at
    a rate of interest per annum equal to the Federal Funds Rate for the first
    three Domestic Business Days after the date of such demand and thereafter at
    a rate per annum equal to the Base Rate for each additional day. The Issuing
    Bank will pay to each Bank ratably all amounts received from the Borrower
    for application in payment of its Reimbursement Obligations in respect of
    any Letter of Credit, but only to the extent such Bank has made payment to
    the Issuing Bank in respect of such Letter of Credit pursuant hereto; provided
    that in the event such payment received by the Issuing Bank is required to
    be returned, such Bank will return to the Issuing Bank any portion thereof
    previously distributed to it by the Issuing Bank.

  

          
(d)   Obligations Absolute. The obligations of
the Borrower and each Bank under subsection (c) above shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under all circumstances whatsoever, including
without limitation the following circumstances:

  
              
    (i)    any lack of validity or enforceability of
    this Agreement or any Letter of Credit or any document related hereto or
    thereto;

              
    (ii)    any amendment or waiver of or any consent
    to departure from all or any of the provisions of this Agreement or any
    Letter of Credit or any document related hereto or thereto, provided by any
    party affected thereby;

              
    (iii)    the use which may be made of the Letter
    of Credit by, or any acts or omission of, a beneficiary of a Letter of
    Credit (or any Person for whom the beneficiary may be acting);

  

  
              
    (iv)    the existence of any claim,
    set-off, defense or other rights that the Borrower may have at any
    time against a beneficiary of a Letter of Credit (or any Person for whom the
    beneficiary may be acting), any Bank (including the Issuing Bank) or any
    other Person, whether in connection with this Agreement or the Letter of
    Credit or any document related hereto or thereto or any unrelated
    transaction;

              
    (v)    any statement or any 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 whatsoever;

              
    (vi)    payment under a Letter of Credit against
    presentation to the Issuing Bank of documents that do not comply with the
    terms of such Letter of Credit;

              
    (vii)   any termination of the Commitments prior
    to, on or after the Payment Date for any Letter of Credit, whether at the
    scheduled termination thereof, by operation of Section 6.01 or otherwise; or

              
    (viii)   any other act or omission to act or
    delay of any kind by any Bank (including the Issuing Bank), the
    Administrative Agent or any other Person or any other event or circumstance
    whatsoever that might, but for the provisions of this subsection (viii),
    constitute a legal or equitable discharge of or defense to the
    Borrower's or the Bank's obligations hereunder; provided,
    that this Section 2.18(d) shall not limit the rights of the
       Borrower under Section 2.18(e)(ii)

  

          
(e)    Indemnification; Expenses.

  
              
    (i)    The Borrower hereby indemnifies and holds
    harmless each Bank (including each Issuing Bank) and the Administrative
    Agent from and against any and all claims, damages, losses, liabilities,
    costs or expenses which it may reasonably incur in connection with a Letter
    of Credit issued pursuant to this Section 2.18; provided that the
    Borrower shall not be required to indemnify any Bank, or the Administrative
    Agent, for any claims, damages, losses, liabilities, costs or expenses, to
    the extent found by a court of competent jurisdiction to have been caused by
    the gross negligence or willful misconduct of such Person.

  

  
              
    (ii)    None of the Banks (including, subject to
    subsection (g) below, an Issuing Bank) nor the Administrative Agent nor any
    of their officers or directors or employees or agents shall be liable or
    responsible, by reason of or in connection with the execution and delivery
    or transfer of or payment or failure to pay under any Letter of Credit,
    including without limitation any of the circumstances enumerated in
    subsection (d) above; provided that, notwithstanding Sections 2.18(d)
    , the Borrower shall have a claim for direct (but not consequential) damage
    suffered by it, to the extent finally determined by a court of competent
    jurisdiction to have been caused by (x) the Issuing Bank's gross
    negligence or willful misconduct in determining whether documents presented
    under any Letter of Credit complied with the terms of such Letter of Credit
    or (y) the Issuing Bank's failure to pay under any Letter of Credit
    after the presentation to it of documents strictly complying with the terms
    and conditions of the Letter of Credit. 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 Issuing Bank may, in
    its 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.

              
    (iii)    Nothing in this subsection (e) is
    intended to limit the obligations of the Borrower under any other provision
    of this Agreement. To the extent the Borrower does not indemnify an Issuing
    Bank as required by this subsection, the Banks agree to do so ratably in
    accordance with their Commitments.

  

          
(f)    Stop Issuance Notice. If the Required
Banks reasonably determine at any time that the conditions set forth in Section
3.02 would not be satisfied in respect of a Borrowing at such time, then the
Required Banks may request that the Administrative Agent issue a "Stop
Issuance Notice", and the Administrative Agent shall issue such notice
to each Issuing Bank. Such Stop Issuance Notice shall be withdrawn upon a
determination by the Required Banks that the circumstances giving rise thereto
no longer exist. No Letter of Credit shall be issued while a Stop Issuance
Notice is in effect. The Required Banks may request issuance of a Stop Issuance
Notice only if there is a reasonable basis therefor, and shall consider
reasonably and in good faith a request from the Borrower for withdrawal of the
same on the basis that the conditions in Section 3.02 are satisfied, provided
that the Administrative Agent and the Issuing Banks may and shall conclusively
rely upon any Stop Issuance Notice while it remains in effect.

          
(g)   If the terms and conditions of any form of
letter of credit application or other agreement submitted by the Borrower to or
entered into by the Issuing Bank relating to any Letter of Credit are not
consistent with the terms and conditions of this Agreement, the terms and
conditions of this Agreement shall control, provided that, to the extent
the Issuing Bank so agrees in such other documentation, its liabilities and
responsibilities in connection with a Letter of Credit may be governed thereby
rather than by subsection (e)(ii), but such agreement by the Issuing Bank may
not directly or indirectly alter the rights and obligations of any other Bank
under this Agreement.

ARTICLE 3

Conditions

          Section
3.1. Effectiveness. This Agreement shall become
effective on the date that each of the following conditions shall have been
satisfied (or waived in accordance with Section 9.05):

          
(a)    receipt by the Administrative Agent of
counterparts hereof signed by each of the parties hereto (or, in the case of any
party as to which an executed counterpart shall not have been received, receipt
by the Administrative Agent in form satisfactory to it of telegraphic, telex or
other written confirmation from such party of execution of a counterpart hereof
by such party);

           (b)   receipt by the
Administrative Agent for the account of each Bank of a duly executed Note dated
on or before the Effective Date complying with the provisions of Section 2.05;

           (c)   receipt by the
Administrative Agent of an opinion of the General Counsel or Assistant General
Counsel of the Borrower, substantially in the form of Exhibit E hereto and
hereby given on the express instruction of the Borrower and covering such
additional matters relating to the transactions contemplated hereby as the
Required Banks may reasonably request;

          
(d)    receipt by the
Administrative Agent of an opinion of Davis Polk & Wardwell, special counsel
for the Administrative Agent, substantially in the form of Exhibit F hereto and
covering such additional matters relating to the transactions contemplated
hereby as the Required Banks may reasonably request;

          
(e)    receipt by the Administrative Agent of an
opinion of the Executive Vice President and General Counsel, the Vice President
and Deputy General Counsel or the Group General Counsel - Financial
Services of Textron, substantially in the form of Exhibit J hereto;

          
(f)    receipt by the Administrative Agent of all
documents it may reasonably request relating to the existence of the Borrower,
the corporate authority for and the validity of this Agreement and the Notes,
and any other matters relevant hereto, all in form and substance satisfactory to
the Administrative Agent; and

          
(g)    receipt by the Administrative Agent of
evidence satisfactory to it of the payment of all principal of and interest on
any loans outstanding under, and of all other amounts payable under, both
Existing Credit Agreements; provided
that this Agreement shall not become effective or be binding on any party hereto
unless all of the foregoing conditions are satisfied not later than July 31,
2003. The Administrative Agent shall promptly notify the Borrower and the Banks
of the Effective Date, and such notice shall be conclusive and binding on all
parties hereto.

          The
Banks that are parties to the Existing Credit Agreements, comprising the
"Required Banks" as defined in each of the Existing Credit Agreements,
and the Borrower agree that the commitments under both Existing Credit
Agreements shall terminate in their entirety simultaneously with and subject to
the effectiveness of this Agreement and that the Borrower shall be obligated to
pay the accrued facility fees thereunder to but excluding the date of such
effectiveness.

          Section
3.2. Borrowings and Issuances of Letters of Credit. The
obligation of any Bank to make a Loan on the occasion of any Borrowing and the
obligation of an Issuing Bank to issue (or renew or extend the term of) any
Letter of Credit, is subject to the satisfaction of the following conditions:

          
(a)    receipt by the Administrative Agent of (i) a
Notice of Borrowing as required by Section 2.02 or 2.03, as the case
may be or (ii) a Notice of Issuance as required by Section 2.18(b);

          
(b)    the fact that, immediately after such
Borrowing or issuance (or renewal or extension), the Total Outstanding Amount
will not exceed the aggregate amount of the Commitments and the aggregate amount
of the Letter of Credit Liabilities shall not exceed $100,000,000 (or, if less,
the aggregate amount of the Commitments);

          
(c)    the fact that, immediately before and after
such Borrowing, no Default shall have occurred and be continuing; and

          
(d)    the fact that the representations and
warranties of the Borrower contained in this Agreement (other than the
representation and warranty in Section 4.04(c), which is made only as of the
date hereof) shall be true on and as of the date of such Borrowing.

          Each
Borrowing or issuance of any Letter of Credit hereunder shall be deemed to be a
representation and warranty by the Borrower on the date of such Borrowing as to
the facts specified in clauses (b), (c) and (d) of this Section.

ARTICLE 4

Representations and
Warranties

The Borrower represents and warrants that:

          Section
4.1. Corporate Existence and Power. Borrower is a
corporation duly incorporated, validly existing and in good standing under the
laws of Delaware, and has all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted.

          Section
4.2. Corporate and Governmental Authorization; No
Contravention. The execution, delivery and performance by the Borrower of
this Agreement and the Notes are within the Borrower's corporate powers,
have been duly authorized by all necessary corporate action, require no action
by or in respect of, or filing with, any governmental body, agency or official
and do not contravene, or constitute a default under, any provision of
applicable law or regulation or of the certificate of incorporation or
by-laws of the Borrower or of any agreement, judgment, injunction,
order, decree or other instrument binding upon the Borrower or result in the
creation or imposition of any Lien on any asset of the Borrower or any of its
Subsidiaries.

          Section
4.3. Binding Effect. This Agreement constitutes a valid
and binding agreement of the Borrower and each Note, when executed and delivered
in accordance with this Agreement, will constitute a valid and binding
obligation of the Borrower, in each case enforceable in accordance with its
respective terms except as the same may be limited by bankruptcy, insolvency or
similar laws affecting creditors' rights generally and by general
principles of equity.

          Section
4.4. Financial Information. (a) The consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of December 28, 2002 and the
related consolidated statements of income, cash flows and changes in
shareholder's equity for the fiscal year then ended, reported on by
Ernst & Young LLP and set forth in the Borrower's 2002 Annual
Report, a copy of each of which has been delivered to each of the Banks, fairly
present, in conformity with generally accepted accounting principles, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such fiscal year.

          
(b)    The consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries as of March 31, 2003 and the related
consolidated statements of income and cash flows for the three months then
ended, copies of which have been delivered to each of the Banks, fairly present,
in conformity with generally accepted accounting principles applied on a basis
consistent with the financial statements referred to in clause (a) above, the
consolidated financial position of the Borrower and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and
cash flows for such three month period.

          
(c)    Since March 31, 2003 there has been no
material adverse change in the business, financial position or results of
operations of the Borrower and its Consolidated Subsidiaries, considered as a
whole.

          Section
4.5. Litigation. There is no action, suit, governmental investigation or
other proceeding pending against, or to the knowledge of the Borrower threatened
against or affecting, the Borrower or any of its Subsidiaries before any court
or arbitrator or any governmental body, agency or official in which there is a
reasonable possibility of an adverse decision which could materially adversely
affect the business, consolidated financial position or consolidated results of
operations of the Borrower and its Consolidated Subsidiaries, considered as a
whole, or which in any manner draws into question the validity of this Agreement
or the Notes.

          Section
4.6. Compliance with ERISA. (a) The Borrower and its Subsidiaries and
each of their respective ERISA Affiliates are in compliance in all material
respects with all applicable provisions of ERISA and the regulations and
published interpretations thereunder with respect to all Pension Plans and all
Multiemployer Plans.

          
(b)    No Termination Event has occurred or is
reasonably expected to occur with respect to any Pension Plan, as the case may
be, which has resulted or would result in any material liability to the Pension
Benefit Guaranty Corporation (or any successor thereto) or to any other Person
under Section 4062, 4063, 4064 or 4069 of ERISA.

          
(c)    Neither the Borrower nor any of its ERISA
Affiliates has incurred or reasonably expects to incur any withdrawal liability
under Part E, Title IV of ERISA to any Multiemployer Plan individually or in the
aggregate in excess of $50,000,000.

          Section
4.7. Environmental Matters. In the ordinary course of its business, the
Borrower conducts an ongoing review of the effect of Environmental Laws on the
business, operations and properties of the Borrower and its Subsidiaries, in the
course of which it identifies and evaluates associated liabilities and costs
(including, without limitation, any capital or operating expenditures required
for clean-up or closure of properties presently or previously owned, any
capital or operating expenditures required to achieve or maintain compliance
with environmental protection standards imposed by law or as a condition of any
license, permit or contract, any related constraints on operating activities,
including any periodic or permanent shutdown of any facility or reduction in the
level of or change in the nature of operations conducted thereat and any actual
or potential liabilities to third parties, including employees, and any related
costs and expenses). On the basis of this review, the Borrower has reasonably
concluded that Environmental Laws are unlikely to have a material adverse effect
on the business, financial condition or results of operations of the Borrower
and its Consolidated Subsidiaries, considered as a whole.

          Section
4.8. Taxes. The Borrower and its Subsidiaries have filed all United
States Federal income tax returns and all other material tax returns which are
required to be filed by them and have paid all taxes due pursuant to such
returns or pursuant to any assessment received by the Borrower or any
Subsidiary. The charges, accruals and reserves on the books of the Borrower and
its Subsidiaries in respect of taxes or other governmental charges are, in the
opinion of the Borrower, adequate.

          Section
4.9. Subsidiaries. Each of the Borrower's corporate Subsidiaries
is a corporation duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation, and has all corporate powers and
all material governmental licenses, authorizations, consents and approvals
required to carry on its business as now conducted.

          Section
4.10. Not an Investment Company. The Borrower is not an "investment
company" within the meaning of the Investment Company Act of 1940, as
amended.

          Section
4.11. Validity of Support Agreement. The Support Agreement constitutes a
valid and binding agreement of Textron enforceable in accordance with its terms.

          Section
4.12. Full Disclosure. All information heretofore furnished by the
Borrower to any Agent or Bank for purposes of or in connection with this
Agreement or any transaction contemplated hereby is, and all such information
hereafter furnished by the Borrower to the Administrative Agent or any Bank will
be, true and accurate in all material respects on the date as of which such
information is stated or certified. The Borrower has disclosed to the Banks in
writing any and all facts which materially and adversely affect the business,
operations or financial condition of the Borrower and its Consolidated
Subsidiaries, taken as a whole, or the ability of the Borrower to perform its
obligations under this Agreement.

ARTICLE 5

Covenants

          The
Borrower agrees that, so long as any Bank has any Commitment hereunder or any
Loan or Letter of Credit remains outstanding or any amount payable under any
Note remains unpaid:

          Section
5.1. Information. The Borrower will deliver to each of the Banks:

          
(a)    as soon as available and in any event within
90 days after the end of each fiscal year of the Borrower, consolidated and
consolidating balance sheets of the Borrower and its Consolidated Subsidiaries
as of the end of such fiscal year and the related consolidated and consolidating
statements of income, cash flows and changes in shareholder's equity for
such fiscal year, setting forth in each case in comparative form the figures for
the previous fiscal year, such consolidated financial statements reported on by
Ernst & Young LLP or other independent public accountants of nationally
recognized standing;

          
(b)    as soon as available and in any event within
45 days after the end of each of the first three quarters of each fiscal year of
the Borrower, a consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries as of the end of such quarter and the related consolidated
statements of income, cash flows and changes in shareholder's equity for
the portion of the Borrower's fiscal year ended at the end of such
quarter, setting forth in each case in comparative form the figures for the
corresponding quarter and the corresponding portion of the Borrower's
previous fiscal year, all certified (subject to normal year-end
adjustments) as to fairness of presentation, normalcy of accounting practices
and consistency by the chief financial officer or the chief accounting officer
of the Borrower;

          
(c)    simultaneously with the delivery of each set
of financial statements referred to in clauses (a) and (b) above, a certificate
of the chief financial officer or the chief accounting officer of the Borrower (i)
setting forth in reasonable detail the calculations required to establish
whether the Borrower was in compliance with the requirements of Sections 5.08 to
5.11, inclusive, and of Section 5.16 on the date of such financial statements
and (ii) stating whether any Default exists on the date of such certificate and,
if any Default then exists, setting forth the details thereof and the action
which the Borrower is taking or proposes to take with respect thereto;

          (d)
   within five days after any officer of the Borrower
obtains knowledge of any Default, if such Default is then continuing, a
certificate of the chief financial officer or the chief accounting officer of
the Borrower setting forth the details thereof and the action which the Borrower
is taking or proposes to take with respect thereto;

          
(e)    promptly upon the filing thereof, copies of
all registration statements (other than the exhibits thereto and any
registration statements on Form S-8 or its equivalent) and reports on
Forms 10-K, 10-Q and 8-K (or their equivalents) which
the Borrower shall have filed with the Securities and Exchange Commission; and

          
(f)    from time to time such additional information
with respect to the Borrower and its Subsidiaries as the Administrative Agent,
at the request of any Bank, may reasonably request.

          Information
required to be delivered pursuant to subsections (a), (b) or (e) above shall be
deemed to have been delivered on the date on which the Borrower provides notice
to the Banks that such information has been posted on the Borrower's
website on the Internet at the website address listed on the signature pages
hereof, at sec.gov/edaux/searches.htm or at another website identified in such
notice and accessible by the Banks without charge; provided that (i) such
notice may be included in a certificate delivered pursuant to subsections
5.01(c) and (ii) the Borrower shall deliver paper copies of the information
referred to in subsections (a), (b), or (e) to any Bank if it requests such
delivery.

          Section
5.2. Notification of Change in Ratings. The Borrower shall notify the
Administrative Agent of any actual or proposed change in the ratings by S&P
or Moody's of the Borrower's long term debt securities, as soon
as the Borrower becomes aware of such change.

          Section
5.3. Payment of Obligations. The Borrower will pay and discharge, and
will cause each Subsidiary to pay and discharge, at or before maturity, all
their respective material obligations and liabilities, including, without
limitation, tax liabilities, except where the same may be contested in good
faith by appropriate proceedings, and will maintain, and will cause each
Subsidiary to maintain, in accordance with generally accepted accounting
principles, appropriate reserves for the accrual of any of the same.

          Section
5.4. Maintenance of Property; Insurance. (a) The Borrower will keep, and
will cause each Subsidiary to keep, all property useful and necessary in its
business in good working order and condition, ordinary wear and tear excepted.

          
(b)    The Borrower will, and will cause each
Subsidiary to, maintain (either in the name of the Borrower or in the
Subsidiary's own name) with financially sound and responsible insurance
companies, insurance on all their respective properties in at least such amounts
and against at least such risks (and with such risk retention) as are usually
insured against in the same general area by companies of established repute
engaged in the same or a similar business; and will furnish to the Banks, upon
request from the Administrative Agent, information presented in reasonable
detail as to the insurance so carried.

          Section
5.5. Conduct of Business and Maintenance of Existence. The Borrower will
continue, and will cause each Subsidiary to continue, to engage in the Finance
Business, and will preserve, renew and keep in full force and effect, and will
cause each Subsidiary to preserve, renew and keep in full force and effect their
respective corporate existence and their respective rights, privileges and
franchises necessary or desirable in the normal conduct of business; provided
that nothing in this Section 5.05 shall, subject to Section 5.14, prohibit (i)
the merger of a Subsidiary into the Borrower or the merger or consolidation of a
Subsidiary with or into another Person if the corporation surviving such
consolidation or merger is a Subsidiary and if, in each case, after giving
effect thereto, no Default shall have occurred and be continuing or (ii) the
discontinuation of the Finance Business by or termination of the corporate
existence of any Subsidiary if the Borrower in good faith determines that such
discontinuation or termination is in the best interest of the Borrower and is
not materially disadvantageous to the Banks.

          Section
5.6. Compliance with Laws. The Borrower will comply, and cause each
Subsidiary to comply, in all material respects, with all applicable laws,
ordinances, rules, regulations, and requirements of governmental authorities
(including, without limitation, Environmental Laws and ERISA and the rules and
regulations thereunder) except where the necessity of compliance therewith is
contested in good faith by appropriate proceedings.

          Section
5.7. Inspection of Property, Books and Records. The Borrower will keep,
and will cause each Subsidiary to keep, proper books of record and account in
which full, true and correct entries shall be made of all dealings and
transactions in relation to its business and activities; and will permit, and
will cause each Subsidiary to permit, representatives of any Bank at such
Bank's expense to visit and inspect any of their respective properties,
to examine and make abstracts from any of their respective books and records and
to discuss their respective affairs, finances and accounts with their respective
officers, employees and independent public accountants, all at such reasonable
times and as often as may reasonably be desired.

          Section
5.8. Debt. The ratio of (i) Consolidated Debt less Qualifying
Subordinated Debt to (ii) the sum of Consolidated Net Worth and Qualifying
Subordinated Obligations will at no time exceed 8 to 1. For purposes of this
Section any preferred stock of a Consolidated Subsidiary held by a Person other
than the Borrower or a Wholly-Owned Subsidiary of the Borrower shall be
included, at the higher of its voluntary or involuntary liquidation value, in
"Consolidated Debt".

          Section
5.9. Minimum Consolidated Net Worth. Consolidated Net Worth will at no
time be less than $200,000,000.

          Section
5.10. Restricted Payments. Neither the Borrower nor any Subsidiary will
declare or make any Restricted Payment unless, after giving effect thereto, the
aggregate of all Restricted Payments declared or made subsequent to January 1,
1994 does not exceed the sum of (i) $25,000,000, plus (or minus,
in the case of loss) (ii) the cumulative consolidated net income of the Borrower
and its Consolidated Subsidiaries for the period from January 1, 1994 through
the end of the then most recent fiscal quarter of the Borrower, treated for this
purpose as a single accounting period, plus (iii) the aggregate amount of
cash contributions to the capital of the Borrower made by Textron subsequent to
June 10, 1994 and prior to the date of determination. Nothing in this Section
shall prohibit the payment of any dividend or distribution within 45 days after
the declaration thereof if such declaration was not prohibited by this Section.

          Section
5.11. Fixed Charges. At the end of each fiscal quarter of the Borrower,
the ratio of Earnings Available for Fixed Charges to Fixed Charges will not,
with respect to the year-to-date period then ended, be less than
125%. For purposes of this Section 5.11, any payments by Textron made pursuant
to the Support Agreement in respect of any period shall be included in Earnings
Available for Fixed Charges for such period, if made not later than the last day
of the following fiscal quarter.

          Section
5.12. Negative Pledge. Neither the Borrower nor any Subsidiary will
create, assume or suffer to exist any Lien on any asset now owned or hereafter
acquired by it, except:

          (a)
   Liens existing on the date of this Agreement
securing Debt outstanding on the date of this Agreement in an aggregate
principal amount not exceeding $1,000,000;

          
(b)    any Lien existing on any asset of any
corporation at the time such corporation becomes a Subsidiary and not created in
contemplation of such event;

          (c)
   any Lien on any asset securing Debt or
Non-recourse Debt incurred or assumed for the purpose of financing all
or any part of the cost of acquiring such asset, provided that such Lien
attaches to such asset concurrently with or within 90 days after the acquisition
thereof;

          (d)
   any Lien on any asset of any corporation existing
at the time such corporation is merged or consolidated with or into the Borrower
or a Subsidiary and not created in contemplation of such event;

          
(e)    any Lien existing on any asset prior to the
acquisition thereof by the Borrower or a Subsidiary and not created in
contemplation of such acquisition;

          
(f)    any Lien arising out of the refinancing,
extension, renewal or refunding of any Debt secured by any Lien permitted by any
of the foregoing clauses of this Section, provided that such Debt is not
increased and is not secured by any additional assets of the Borrower or any
Subsidiary;

          
(g)    Liens arising in the ordinary course of its
business which (i) do not secure Debt, (ii) do not secure any obligation in an
amount exceeding $5,000,000 and (iii) do not in the aggregate materially detract
from the value of its assets or materially impair the use thereof in the
operation of its business;

          
(h)    Liens not otherwise permitted securing Debt in
an aggregate principal amount at any time outstanding not to exceed $50,000,000;

          
(i)    (x) Liens which are granted pursuant to any
Securitization Transaction and which cover only the Receivables and Receivables
Related Assets or interests therein which are the subject of such Securitization
Transaction and (y) Liens which are granted pursuant to any transaction that,
but for failure to satisfy the conditions set forth in the proviso of the
definition of "Securitization Transaction", would constitute a
Securitization Transaction, which Liens cover only the Receivables and
Receivables Related Assets subject thereto, so long as the aggregate amount of
liabilities that are, or would be, required, in accordance with generally
accepted accounting principles, to be included as liabilities on a consolidated
balance sheet of the Borrower or its Consolidated Subsidiaries with respect to
all such transactions does not exceed $500,000,000; and

          
(j)    any Lien securing obligations owed by a
Subsidiary to the Borrower or another Subsidiary.

          Section
5.13. Support Agreement. The Borrower will cause the Support Agreement at
all times to remain in full force and effect without modification thereto, and
will diligently protect and enforce its rights thereunder.

          Section
5.14. Consolidations, Mergers and Sales of Asset. The Borrower will not (i)
consolidate or merge with or into any other Person or (ii) sell, lease
or otherwise transfer, directly or indirectly, all or any substantial part of
the assets of the Borrower and its Subsidiaries, taken as a whole, to any other
Person; provided that the Borrower may permit any corporation to be
merged into the Borrower or may consolidate with or merge into or sell or
otherwise (except by lease) dispose of its assets as an entirety or
substantially as an entirety to any solvent corporation organized in the United
States of America which is either Textron or a Wholly-owned Subsidiary
of Textron and which expressly assumes in writing the due and punctual payment
of the principal of and interest on the Notes and the due and punctual
performance of the obligations of the Borrower hereunder and under the Notes, if
(1) immediately thereafter the Support Agreement shall be expressly reaffirmed
in writing by Textron, (2) after giving effect to such consolidation, merger or
other disposition, no Default shall have occurred and be continuing and (3) any
such disposition shall not release the corporation that originally executed this
Agreement as the borrower from its liability as obligor on the Notes, and
provided further that this Section 5.14 shall not prohibit any sale, lease or
transfer, directly or indirectly, of the Receivables and Receivables Related
Assets (or interests therein) of the Borrower or its Subsidiaries in connection
with any Securitization Transaction.

          Section
5.15. Use of Proceeds. The proceeds of the Loans made or the Letters of
Credit issued under this Agreement will be used by the Borrower for its general
corporate purposes. None of such proceeds will be used, directly or indirectly,
for the purpose, whether immediate, incidental or ultimate, of buying or
carrying any "margin stock" within the meaning of Regulation U.

          Section
5.16. Subsidiary Debt. The aggregate Debt (excluding Debt owed to the
Borrower or a Wholly-Owned Subsidiary) of any Subsidiaries organized
under the laws of the United States or any state thereof shall not exceed the
greater of (i) $100,000,000 or (ii) 20% of Consolidated Net Worth.

ARTICLE 6

Defaults

          Section
6.1. Events of Default. If one or more of the following events ("Events
of Default") shall have occurred and be continuing:

          
(a)    the Borrower shall fail to pay when due any
principal of any Loan or any draw under any Letter of Credit, or shall fail to
pay within three Domestic Business Days of the due date thereof, any interest,
fees or any other amount payable hereunder;

          
(b)    the Borrower shall fail to observe or perform
any covenant contained in Sections 5.08 to 5.16, inclusive, for five consecutive
Domestic Business Days;

          
(c)    the Borrower shall fail to observe or perform
any covenant or agreement contained in this Agreement (other than those covered
by clause (a) or (b) above) for 30 days after notice thereof has been given to
the Borrower by the Administrative Agent at the request of the Required Banks;

          
(d)    any representation, warranty, certification or
statement made by the Borrower in this Agreement or in any certificate,
financial statement or other document delivered pursuant to this Agreement shall
prove to have been incorrect in any material respect when made (or deemed made);

          (e)
   the Borrower or any Subsidiary shall fail to make
any payment in respect of any Material Debt when due or within any applicable
grace period;

          
(f)    any event or condition shall occur which
results in the acceleration of the maturity of any Material Debt or enables the
holder of such Debt or any Person acting on such holder's behalf to
accelerate the maturity thereof;

          
(g)    the Borrower shall cease to have 100% of its
common stock owned directly or indirectly by Textron, except by reason of a
merger with Textron permitted by Section 5.14;

          
(h)    the Support Agreement shall cease to be in
full force and effect for any reason or Textron shall seek to deny its
obligations thereunder;

          
(i)    Textron, the Borrower or any Subsidiary of the
Borrower (except for a Special Purpose Subsidiary) shall commence a voluntary
case or other proceeding seeking liquidation, reorganization or other relief
with respect to itself or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it, or shall make a general assignment for
the benefit of creditors, or shall fail generally or admit its inability to pay
its debts as they become due, or shall take any corporate action to authorize
any of the foregoing;

          
(j)    an involuntary case or other proceeding shall
be commenced against Textron, the Borrower or any Subsidiary of the Borrower
(except for a Special Purpose Subsidiary) seeking liquidation, reorganization or
other relief with respect to it or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, and such involuntary case or other proceeding
shall remain undismissed and unstayed for a period of 60 days; or an order for
relief shall be entered against Textron, the Borrower or any Subsidiary (except
for a Special Purpose Subsidiary) under the federal bankruptcy laws as now or
hereafter in effect;

          
(k)    the Borrower or any of its ERISA Affiliates
shall terminate or suffer the termination of (by action of the Pension Benefit
Guaranty Corporation or any successor thereto) any Pension Plan, or shall suffer
the appointment of or the institution of proceedings to appoint a trustee to
administer any Pension Plan, or shall withdraw (under Section 4063 of ERISA)
from a Pension Plan, if as of the date thereof or any subsequent date the sum of
the Borrower's and each ERISA Affiliate's liabilities to the
Pension Benefit Guaranty Corporation or any other Person under Sections 4062,
4063, 4064 and 4069 of ERISA (calculated after giving effect to the tax
consequences thereof) resulting from or otherwise associated with the
above-described events exceeds $50,000,000;

          
(l)    the Borrower or any of its ERISA Affiliates
shall withdraw from any Multiemployer Plan and the aggregate amount of
withdrawal liability (determined pursuant to Sections 4201 et seq. of ERISA) to
which the Borrower and its ERISA Affiliates become obligated to all
Multiemployer Plans requires annual payments in excess of $5,000,000; or

          
(m)    a judgment or order for the payment of money
in excess of $50,000,000 shall be rendered against the Borrower or any
Subsidiary and such judgment or order shall continue unsatisfied and unstayed
for a period of 10 days; then,
and in every such event, the Administrative Agent shall (i) if requested by
Banks having more than 50% in aggregate amount of the Commitments, by notice to
the Borrower terminate the Commitments and they shall thereupon terminate, and
(ii) if requested by Banks holding more than 50% in aggregate principal amount
of the Loans, by notice to the Borrower declare the Loans (together with accrued
interest thereon and all other amounts owing hereunder) to be, and the Loans and
all such amounts shall thereupon become, immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower; provided that in the case of any of the
Events of Default specified in clause (i) or (j) above with respect to the
Borrower, automatically without any notice to the Borrower or any other act by
the Administrative Agent or the Banks, the Commitments shall thereupon terminate
and the Loans (together with accrued interest thereon and all other amounts
owing hereunder) shall become immediately due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower.

          Section
6.2. Notice of Default. The Administrative Agent shall give notice to the
Borrower under Section 6.01(c) promptly upon being requested to do so by the
Required Banks and shall thereupon notify all the other Banks thereof.

          Section
6.3. Cash Cover. The Borrower agrees, in addition to
the provisions of Section 6.01 hereof, that upon the occurrence and during the
continuance of any Event of Default, it shall, if requested by the
Administrative Agent upon the instruction of the Banks having more than 50% of
the Letter of Credit Liabilities, pay to the Administrative Agent an amount in
immediately available funds (which funds shall be held as collateral pursuant to
arrangements satisfactory to the Administrative Agent) equal to the aggregate
amount available for drawing under all Letters of Credit outstanding at such
time, provided that, upon the occurrence of any Event of Default
specified in Section 6.01(i) or 6.01(j) with respect to the Borrower, the
Borrower shall pay such amount forthwith without any notice or demand or any
other act by the Administrative Agent or the Banks.

ARTICLE 7

The Agents

          Section
7.1. Appointment and Authorization. Each Bank
irrevocably appoints and authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers under this Agreement and the
Notes as are delegated to the Administrative Agent by the terms hereof or
thereof, together with all such powers as are reasonably incidental thereto.

          Section
7.2. Administrative Agent and Affiliates. JPMorgan
Chase Bank shall have the same rights and powers under this Agreement as any
other Bank and may exercise or refrain from exercising the same as though it
were not the Administrative Agent, and JPMorgan Chase Bank and its affiliates
may accept deposits from, lend money to, and generally engage in any kind of
business with the Borrower or any Subsidiary or affiliate of the Borrower as if
it were not the Administrative Agent hereunder.

          Section
7.3. Action by Administrative Agent. The obligations of
the Administrative Agent hereunder are only those expressly set forth herein.
Without limiting the generality of the foregoing, the Administrative Agent shall
not be required to take any action with respect to any Default, except as
expressly provided in Article 6.

          Section
7.4. Consultation with Experts. The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken by it in good faith in
accordance with the advice of such counsel, accountants or experts.

          Section
7.5. Liability of Administrative Agent. Neither the
Administrative Agent nor any of its affiliates nor any of their respective
directors, officers, agents, or employees shall be liable for any action taken
or not taken by it in connection herewith (i) with the consent or at the request
of the Required Banks or such other number of Banks as may be expressly required
hereunder or (ii) in the absence of its own gross negligence or willful
misconduct. Neither the Administrative Agent nor any of its affiliates nor any
of their respective directors, officers, agents or employees shall be
responsible for or have any duty to ascertain, inquire into or verify (i) any
statement, warranty or representation made in connection with this Agreement or
any borrowing or issuance of a Letter of Credit hereunder; (ii) the performance
or observance of any of the covenants or agreements of the Borrower; (iii) the
satisfaction of any condition specified in Article 3, except receipt of items
required to be delivered to the Administrative Agent; or (iv) the validity,
effectiveness or genuineness of this Agreement, the Notes or any other
instrument or writing furnished in connection herewith. The Administrative Agent
shall not incur any liability by acting in reliance upon any notice, consent,
certificate, statement, or other writing (which may be a bank wire, telex,
facsimile transmission or similar writing) believed by it to be genuine or to be
signed by the proper party or parties.

          Section
7.6. Indemnification. Each Bank shall, ratably in
accordance with its Commitment, indemnify the Administrative Agent and each
Issuing Bank, its affiliates and their respective directors, officers, agents
and employees (to the extent not reimbursed by the Borrower) against any cost,
expense (including reasonable counsel fees and disbursements), claim, demand,
action, loss or liability (except such as result from such indemnitees'
gross negligence or willful misconduct) that such indemnitees may suffer or
incur in connection with this Agreement or any Letter of Credit or any action
taken or omitted by such indemnitees hereunder.

          Section
7.7. Credit Decision. Each Bank acknowledges that it
has, independently and without reliance upon any Agent or any other Bank, 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 Bank also
acknowledges that it will, independently and without reliance upon any Agent or
any other Bank, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking any action under this Agreement.

          Section
7.8. Successor Administrative Agent. The Administrative
Agent may resign at any time by giving notice thereof to the Banks and the
Borrower. Upon any such resignation, the Required Banks shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent
shall have been so appointed by the Required Banks, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent gives notice
of resignation, then the retiring Administrative Agent may, on behalf of the
Banks, appoint a successor Administrative Agent, which shall be a commercial
bank organized or licensed under the laws of the United States of America or of
any State thereof and having a combined capital and surplus of at least
$50,000,000. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor Administrative
Agent shall thereupon succeed to and become vested with all the rights and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. After any
retiring Administrative Agent's resignation hereunder as Administrative
Agent, the provisions of this Article shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent.

          Section
7.9. Agents' Fees. The Borrower shall pay to
each Agent for its own account fees in the amounts and at the times previously
agreed upon between the Borrower and such Agent.

          Section
7.10. Other Agents. Nothing in this Agreement shall
impose any duty or liability whatsoever on any of the Syndication Agents in such
capacity.

ARTICLE 8

Change in Circumstances

          Section
8.1. Basis for Determining Interest Rate
Inadequate or Unfair. If on or prior to the first day of any Interest Period
for any Euro-Dollar Loan or Competitive Bid LIBOR Loan:

  
               (a)   the Administrative Agent
    is advised by the Reference Banks that deposits in dollars (in the
    applicable amounts) are not being offered to the Reference Banks in the
    relevant market for such Interest Period, or

              (b)
       in the case of a Euro-Dollar Loan,
    Banks having 50% or more of the aggregate amount of the Commitments advise
    the Administrative Agent that the London Interbank Offered Rate as
    determined by the Administrative Agent will not adequately and fairly
    reflect the cost to such Banks of funding their Euro-Dollar Loans
    for such Interest Period, the Administrative Agent shall forthwith give
    notice thereof to the Borrower and the Banks, whereupon until the
    Administrative Agent notifies the Borrower that the circumstances giving
    rise to such suspension no longer exist, (i) the obligations of the Banks to
    make Euro-Dollar Loans, or to continue to convert outstanding Loans
    as or into Euro-Dollar Loans shall be suspended and (ii) each
    outstanding Euro-Dollar Loan shall be converted into a Base Rate
    Loan on the last day of the then current Interest Period applicable thereto.
    Unless the Borrower notifies the Administrative Agent at least two Domestic
    Business Days before the date of any affected Borrowing for which a Notice
    of Borrowing has previously been given that it elects not to borrow on such
    date, (i) if such affected Borrowing is a Euro-Dollar
    Borrowing, such Borrowing shall instead be made as a Base Rate Borrowing and
    (ii) if such affected Borrowing is a Competitive Bid LIBOR
    Borrowing, the Competitive Bid LIBOR Loans comprising such Borrowing shall
    bear interest for each day from and including the first day to but excluding
    the last day of the Interest Period applicable thereto at the Base Rate for
    such day.

  

          Section
8.2. Illegality. If, on or after the
date of this Agreement, the adoption of any applicable law, rule or regulation,
or any change therein, or any change in any applicable law, rule or regulation,
or any change in the interpretation or Administrative thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or Administrative thereof, or compliance by any Bank (or its
Euro-Dollar Lending Office) with any request or directive (whether or
not having the force of law) of any such authority, central bank or comparable
agency shall make it unlawful or impossible for any Bank (or its
Euro-Dollar Lending Office) to make, maintain or fund its
Euro-Dollar Loans and such Bank shall so notify the Administrative
Agent, the Administrative Agent shall forthwith give notice thereof to the other
Banks and the Borrower, whereupon until such Bank notifies the Borrower and the
Administrative Agent that the circumstances giving rise to such suspension no
longer exist, the obligation of such Bank to make Euro-Dollar Loans, or
to convert outstanding Loans into Euro-Dollar Loans or continue
outstanding Loans as Euro-Dollar Loans, shall be suspended. Before
giving any notice to the Administrative Agent pursuant to this Section, such
Bank shall designate a different Euro-Dollar Lending Office if such
designation will avoid the need for giving such notice and will not, in the
judgment of such Bank, be otherwise disadvantageous to such Bank. If such notice
is given, each Euro-Dollar Loan of such Bank then outstanding shall be
converted into a Base Rate Loan either (i) on the last day of the then current
Interest Period applicable to such Euro-Dollar Loan if such Bank may
lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan
to such day or (ii) immediately if such Bank shall determine that it may not
lawfully continue to maintain and fund any such Loan as a Euro-Dollar
Loan to such day. Interest and principal on any such Base Rate Loan shall be
payable on the same dates as, and on a pro rata basis with, the interest and
principal payable on the related Euro-Dollar Loans of the other Banks.

          Section
8.3. Increased Cost and Reduced Return.
(a) If on or after (x) the date hereof, in the case of any
Euro-Dollar Loan or Letters of Credit or any obligation to make
Euro-Dollar Loans or issue or participate in any Letters of Credit or
(y) the date of the related Competitive Bid Quote, in the case of any
Competitive Bid Loan, the adoption of any applicable law, rule or regulation, or
any change in any applicable law, rule or regulation, or any change in the
interpretation or Administrative thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or Administrative
thereof, or compliance by any Bank (or its Applicable Lending Office) with any
request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency shall impose, modify or deem
applicable any reserve (including, without limitation, any such requirement
imposed by the Board of Governors of the Federal Reserve System, but excluding
with respect to any Euro-Dollar Loan any such requirement with respect
to which such Bank is entitled to compensation during the relevant Interest
Period under Section 2.16), special deposit, insurance assessment or similar
requirement against assets of, deposits with or for the account of, or credit
(including Letters of Credit and participations therein) extended by, any Bank
(or its Applicable Lending Office) or shall impose on any Bank (or its
Applicable Lending Office) or on the London interbank market any other condition
affecting its Fixed Rate Loans or the Letters of Credit, its Note or its
obligation to make Fixed Rate Loans or its obligations hereunder in respect of
Letters of Credit; and the result of any of the foregoing is to increase the
cost to such Bank (or its Applicable Lending Office) of making or maintaining
any Fixed Rate Loan or of issuing or participating in any Letters of Credit, or
to reduce the amount of any sum received or receivable by such Bank (or its
Applicable Lending Office) or such Issuing Bank under this Agreement or under
its Note with respect thereto, by an amount deemed by such Bank or Issuing Bank
to be material, then, within 15 days after demand by such Bank or Issuing Bank
(with a copy to the Administrative Agent), the Borrower shall pay to such Bank
or Issuing Bank such additional amount or amounts as will compensate such Bank
or Issuing Bank for such increased cost or reduction, provided that such
compensation will be limited to (1) the period commencing not more than 90 days
prior to the date of such demand or (2) any longer period of retroactive effect
of any such adoption, change or requirement for compliance if such demand is
made 90 days or less after such adoption, change or requirement for compliance.

          (b)
   If any Bank shall have determined that, after the
date hereof, the adoption of any applicable law, rule or regulation regarding
capital adequacy, or any change in any such law, rule or regulation, or any
change in the interpretation or Administrative thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
Administrative thereof, or any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return
on capital of such Bank (or its Parent) as a consequence of such Bank's
obligations hereunder to a level below that which such Bank (or its Parent)
could have achieved but for such adoption, change, request or directive (taking
into consideration its policies with respect to capital adequacy) by an amount
deemed by such Bank to be material, then from time to time, within 15 days after
demand by such Bank (with a copy to the Administrative Agent), the Borrower
shall pay to such Bank such additional amount or amounts as will compensate such
Bank (or its Parent) for such reduction, provided that such compensation
will be limited to (A) the period commencing not more than 90 days prior to the
date of such demand or (B) any longer period of retroactive effect of any such
adoption, change, request or directive if such demand is made 90 days or less
after such adoption, change, request or directive.

          
(c)    Each Bank will notify the Borrower and the
Administrative Agent of any event of which it has knowledge, occurring after the
date hereof, which will entitle such Bank to compensation pursuant to this
Section and will use its best efforts to designate a different Applicable
Lending Office if such designation will avoid the need for, or reduce the amount
of, such compensation and will not, in the judgment of such Bank, be otherwise
disadvantageous to such Bank. A certificate of any Bank claiming compensation
under this Section and setting forth the additional amount or amounts to be paid
to it hereunder shall be conclusive in the absence of manifest error. In
determining such amount, such Bank may use any reasonable averaging and
attribution methods.

          Section
8.4. Taxes. (a) For purposes of this
Section 8.04, the following terms have the following meanings:

          
"Taxes" means any and all present or future taxes, duties,
levies, imposts, deductions, charges or withholdings with respect to any payment
by the Borrower pursuant to this Agreement or under any Note, and all
liabilities with respect thereto, excluding (i) in the case of each Bank
and the Administrative Agent, taxes imposed on its income, and franchise or
similar taxes imposed on it, by a jurisdiction under the laws of which such Bank
or the Administrative Agent (as the case may be) is organized or in which its
principal executive office is located or, in the case of each Bank, in which its
Applicable Lending Office is located and (ii) in the case of each Bank, any
United States withholding tax imposed on such payments but only to the extent
that such Bank is subject to United States withholding tax at the time such Bank
first becomes a party to this Agreement.

          
"Other Taxes" means any present or future stamp or documentary
taxes and any other excise or property taxes, or similar charges or levies,
which arise from any payment made pursuant to this Agreement or under any Note
or from the execution or delivery of, or otherwise with respect to, this
Agreement or any Note.

          
(b)    Any and all payments by the
Borrower to or for the account of any Bank or the Administrative Agent hereunder
or under any Note shall be made without deduction for any Taxes or Other Taxes; provided
that, if the Borrower shall be required by law to deduct any Taxes or Other
Taxes from any such payments, (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 8.04) such Bank or the
Administrative Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions, (iii) the Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with applicable
law and (iv) the Borrower shall furnish to the Administrative Agent, at its
address referred to in Section 9.01, the original or a certified copy of a
receipt evidencing payment thereof.

          
(c)    The Borrower agrees to
indemnify each Bank and the Administrative Agent for the full amount of Taxes or
Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or
asserted by any jurisdiction on amounts payable under this Section 8.04) paid by
such Bank, including any Issuing Bank, or the Administrative Agent (as the case
may be) and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto. This indemnification shall be paid within 15
days after such Bank, including any Issuing Bank, or the Administrative Agent
(as the case may be) makes demand therefor.

           
(d)    Each Bank organized under
the laws of a jurisdiction outside the United States, on or prior to the date of
its execution and delivery of this Agreement in the case of each Bank listed on
the signature pages hereof and on or prior to the date on which it becomes a
Bank in the case of each other Bank, and from time to time thereafter if
requested in writing by the Borrower (but only so long as such Bank remains
lawfully able to do so), shall provide the Borrower with Internal Revenue
Service form W-8BEN or W-8ECI, as appropriate, or any successor
form prescribed by the Internal Revenue Service, certifying that such Bank is
entitled to benefits under an income tax treaty to which the United States is a
party which exempts the Bank from United States withholding tax or reduces the
rate of withholding tax on payments of interest for the account of such Bank or
certifying that the income receivable pursuant to this Agreement is effectively
connected with the conduct of a trade or business in the United States.

          
(e)    For any period with respect to which a Bank
has failed to provide the Borrower with the appropriate form pursuant to Section
8.04(d) (unless such failure is due to a change in treaty, law or regulation
occurring subsequent to the date on which such form originally was required to
be provided), such Bank shall not be entitled to indemnification under Section
8.04(b) or 8.04(c) with respect to Taxes imposed by the United States; provided
that if a Bank, which is otherwise exempt from or subject to a reduced rate of
withholding tax, becomes subject to Taxes because of its failure to deliver a
form required hereunder, the Borrower shall take such steps as such Bank shall
reasonably request to assist such Bank to recover such Taxes.

          
(f)    If the Borrower is required to pay additional
amounts to or for the account of any Bank pursuant to this Section 8.04, then
such Bank will change the jurisdiction of its Applicable Lending Office if, in
the judgment of such Bank, such change (i) will eliminate or reduce any such
additional payment which may thereafter accrue and (ii) is not otherwise
disadvantageous to such Bank.

          Section
8.5. Base Rate Loans Substituted for Affected Fixed Rate Loans. If (i)
the obligation of any Bank to make, or to continue or convert outstanding Loans
as or to, Euro-Dollar Loans has been suspended pursuant to Section 8.02
or (ii) any Bank has demanded compensation under Section 8.03 or 8.04 with
respect to its Euro-Dollar Loans, and in any such case the Borrower
shall, by at least five Euro-Dollar Business Days' prior notice
to such Bank through the Administrative Agent, have elected that the provisions
of this Section shall apply to such Bank, then, unless and until such Bank
notifies the Borrower that the circumstances giving rise to such suspension or
demand for compensation no longer exist all Loans which would otherwise be made
by such Bank as (or continued as or converted to) Euro-Dollar Loans
shall instead be Base Rate Loans on which interest and principal shall be
payable contemporaneously with the related Euro-Dollar Loans of the
other Banks. If such Bank notifies the Borrower that the circumstances giving
rise to such suspension or demand for compensation no longer exist, the
principal amount of each such Base Rate Loan shall be converted into a
Euro-Dollar Loan on the first day of the next succeeding Interest Period
applicable to any related Euro-Dollar Loans of the other Banks.

          Section
8.6. Substitution of Bank or Banks. If (i) the obligation of any Bank to
make Euro-Dollar Loans has been suspended pursuant to Section 8.02,
(ii) any Bank has demanded compensation under Section 8.03 or
(iii) any Bank has required the Borrower to pay additional interest
under Section 2.16, the Borrower shall have the right, with the assistance of
the Administrative Agent, to seek a mutually satisfactory substitute bank or
banks (which may be one or more of the Banks) to purchase the Note and assume
the Commitment of such Bank.

ARTICLE 9

Miscellaneous

          Section
9.1. Notices. All notices, requests and other communications to any party
hereunder shall be in writing (including bank wire, telex, facsimile
transmission or similar writing) and shall be given to such party: (x) in the
case of the Borrower or the Administrative Agent, at its address, facsimile
number or telex or telecopy number set forth on the signature pages hereof, (y)
in the case of any Bank, at its address, facsimile number or telex or telecopy
number set forth in its Administrative Questionnaire or (z) in the case of any
party, such other address, facsimile number or telex or telecopy number as such
party may hereafter specify for the purpose by notice to the Administrative
Agent and the Borrower. Each such notice, request or other communication shall
be effective (i) if given by telex, when such telex is transmitted to the telex
number specified in this Section and the appropriate answerback is received,
(ii) if given by facsimile transmission, when transmitted to the facsimile
number specified in this Section and confirmation of receipt is received, (iii)
if given by mail, 72 hours after such communication is deposited in the mails
with first class postage prepaid, addressed as aforesaid or (iv) if given by any
other means, when received; provided that notices to the Administrative
Agent under Article 2 or Article 8 shall not be effective until received.

          Section
9.2. No Waivers. No failure or delay by the Administrative Agent or any
Bank in exercising any right, power or privilege hereunder or under any Note or
Letter of Credit shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

          Section
9.3. Expenses; Indemnification. (a) The Borrower shall pay (i) all
reasonable out-of-pocket expenses of the Administrative Agent,
including fees and disbursements of special counsel for the Administrative
Agent, in connection with the preparation of this Agreement, any waiver or
consent hereunder or any amendment hereof or any Default or alleged Default
hereunder and (ii) if an Event of Default occurs, all
out-of-pocket expenses incurred by the Administrative Agent and
each Bank (including any Issuing Bank), including, for the Administrative Agent
or any Bank, either the fees and disbursements of outside counsel or the
allocated cost of inside counsel in connection with such Event of Default and
collection, bankruptcy, insolvency and other enforcement proceedings resulting
therefrom.

          
(b)    The Borrower agrees to indemnify the
Administrative Agent and each Bank (including any Issuing Bank), their
respective affiliates and the respective directors, officers, agents and
employees of the foregoing (each an "Indemnitee") and hold each
Indemnitee harmless from and against any and all liabilities, losses, damages,
costs and expenses of any kind, including, without limitation, the reasonable
fees and disbursements of counsel, which may be incurred by such Indemnitee in
connection with any investigative, administrative or judicial proceeding
(whether or not such Indemnitee shall be designated a party thereto) relating to
or arising out of (i) any actual or proposed use of proceeds of Loans or Letters
of Credit hereunder or (ii) the actual or alleged breach by the Borrower of any
covenant in this Agreement or the actual or alleged untruth or inaccuracy of any
representation or warranty made by the Borrower in or in connection with this
Agreement or any Letter of Credit; provided that no Indemnitee shall have
the right to be indemnified hereunder for its own gross negligence or willful
misconduct as determined by a court of competent jurisdiction.

          Section
9.4. Set-Offs. Each Bank agrees that if it shall, by exercising
any right of set-off or counterclaim or otherwise, receive payment of a
proportion of the aggregate amount of principal and interest then due with
respect to any Loans and Letter of Credit Liabilities held by it which is
greater than the proportion received by any other Bank in respect of the
aggregate amount of principal and interest then due with respect to any Loans
and Letter of Credit Liabilities held by such other Bank, the Bank receiving
such proportionately greater payment shall purchase such participations in the
Loans and Letter of Credit Liabilities held by the other Banks, and such other
adjustments shall be made, as may be required so that all such payments of
principal and interest with respect to the Loans and Letter of Credit
Liabilities held by the Banks shall be shared by the Banks pro rata; provided
that nothing in this Section shall impair the right of any Bank to exercise any
right of set-off or counterclaim it may have and to apply the amount
subject to such exercise to the payment of indebtedness of the Borrower other
than its indebtedness under the Agreement. The Borrower agrees, to the fullest
extent it may effectively do so under applicable law, that any holder of a
participation in a Loan or Letter of Credit Liability, whether or not acquired
pursuant to the foregoing arrangements, may exercise rights of set-off
or counterclaim and other rights with respect to such participation as fully as
if such holder of a participation were a direct creditor of the Borrower in the
amount of such participation.

          Section
9.5. Amendments and Waivers. Any provision of this
Agreement or the Notes may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed by the Borrower and the Required Banks
(and, if the rights or duties of any Issuing Bank or the Administrative Agent
are affected thereby, by the Administrative Agent); provided that no such
amendment or waiver shall:

          
(a)    unless signed by all the Banks, (i) increase
or decrease the Commitment of any Bank (except for a ratable decrease in the
Commitments of all Banks) or subject any Bank to any additional obligation, (ii)
reduce the principal of or rate of interest on any Loan or the amount to be
reimbursed in respect of any Letter of Credit or any interest thereon, or any
fees hereunder, (iii) postpone the date fixed for any payment of principal of or
interest on any Loan or for reimbursement in respect of any Letter of Credit or
any fees hereunder or for termination of any Commitment, or (except as expressly
provided in Section 2.18) the expiry date of any Letter of Credit, (iv) change
the percentage of the Commitments or of the aggregate unpaid principal amount of
the Notes, or the number of Banks, which shall be required for the Banks or any
of them to take any action under this Section or any other provision of this
Agreement, or (v) permit the Support Agreement to cease to be in full force and
effect or alter in any way the terms of the Support Agreement; or

          
(b)    unless signed by a Designated Lender or its
Designating Bank, subject such Designated Lender to any additional obligation or
affect its rights hereunder (unless the rights of all the Banks hereunder are
similarly affected).

          It
is understood that the operation of Section 2.17 in accordance with its terms is
not an amendment subject to this Section 9.05.

          Section
9.6. 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, except that the Borrower may not assign or
otherwise transfer any of its rights under this Agreement without the prior
written consent of all Banks.

          
(b)    Any Bank may at any time grant to one or more
banks or other institutions (each a "Participant")
participating interests in its Commitment or any or all of its Loans and/or
Letter of Credit Liabilities at the time owing to it. In the event of any such
grant by a Bank of a participating interest to a Participant, whether or not
upon notice to the Borrower and the Administrative Agent, such Bank shall remain
responsible for the performance of its obligations hereunder, and the Borrower
and the Administrative Agent shall continue to deal solely and directly with
such Bank in connection with such Bank's rights and obligations under
this Agreement. Any agreement pursuant to which any Bank may grant such a
participating interest shall provide that such Bank shall retain the sole right
and responsibility to enforce the obligations of the Borrower hereunder
including, without limitation, the right to approve any amendment, modification
or waiver of any provision of this Agreement; provided that such
participation agreement may provide that such Bank will not agree to any
modification, amendment or waiver of this Agreement described in clause (i),
(ii) or (iii) of Section 9.05(a) without the consent of the Participant. The
Borrower agrees that each Participant shall, if and only if the Borrower shall
give its consent (which consent shall not be unreasonably withheld) to the
granting of a participating interest to it, be entitled to the benefits of
Section 2.16 and Article 8 with respect to such participating interest. An
assignment or other transfer which is not permitted by subsection (c) or (d)
below shall be given effect for purposes of this Agreement only to the extent of
a participating interest granted in accordance with this subsection (b).

          
(c)    Any Bank may at any time assign to one or more
banks or other institutions (each an "Assignee") all, or a
proportionate part (equivalent to a Commitment of not less than $5,000,000) of
all, of its rights and obligations under this Agreement and the Notes, and such
Assignee shall assume such rights and obligations, pursuant to an Assignment and
Assumption Agreement in substantially the form of Exhibit G hereto executed by
such Assignee and such transferor Bank, with (and subject to) the subscribed
consent of the Borrower (but only so long as no Event of Default has occurred
and is then continuing) and the Administrative Agent, which consents shall not
be unreasonably withheld; provided that (i) if an Assignee is a Bank or
an affiliate of such transferor Bank, no such consent shall be required; and
(ii) such assignment may, but need not, include rights of the transferor Bank in
respect of outstanding Competitive Bid Loans. Upon execution and delivery of
such instrument and payment by such Assignee to such transferor Bank of an
amount equal to the purchase price agreed between such transferor Bank and such
Assignee, such Assignee shall be a Bank party to this Agreement and shall have
all the rights and obligations of a Bank with a Commitment as set forth in such
instrument of assumption, and the transferor Bank shall be released from its
obligations hereunder to a corresponding extent, and no further consent or
action by any party shall be required. Upon the consummation of any assignment
pursuant to this subsection (c), the transferor Bank, the Administrative Agent
and the Borrower shall make appropriate arrangements so that, if required, a new
Note is issued to the Assignee. In connection with any such assignment, the
transferor Bank shall pay to the Administrative Agent an administrative fee for
processing such assignment in the amount of $3,000. If the Assignee is not
incorporated under the laws of the United States of America or a state thereof,
it shall deliver to the Borrower and the Administrative Agent certification as
to exemption from deduction or withholding of any United States federal income
taxes in accordance with Section 8.04.

          
(d)    Any Bank may at any time assign all or any
portion of its rights under this Agreement and its Note to a Federal Reserve
Bank. No such assignment shall release the transferor Bank from its obligations
hereunder.

          
(e)    No Assignee, Participant or other transferee
of any Bank's rights and no Designated Lender designated by any
Designating Bank shall be entitled to receive any greater payment under Section
8.03 or 8.04 than such Bank or Designating Bank would have been entitled to
receive with respect to the rights transferred, unless such transfer is made
with the Borrower's prior written consent or by reason of the provisions
of Section 8.02, 8.03, or 8.04 requiring such Bank to designate a different
Applicable Lending Office under certain circumstances or at a time when the
circumstances giving rise to such greater payment did not exist.

          Section
9.7. Designated Lenders. (a) Subject to the provisions of this Section
9.07(a), any Bank may from time to time elect to designate an Eligible Designee
to provide all or a portion of the Loans to be made by such Bank pursuant to
this Agreement; provided that such designation shall not be effective
unless the Borrower and the Administrative Agent consent thereto, which consents
shall not be unreasonably withheld. When a Bank and its Eligible Designee shall
have signed an agreement substantially in the form of Exhibit H hereto (a "Designation
Agreement") and the Borrower and the Administrative Agent shall have
signed their respective consents thereto, such Eligible Designee shall become a
Designated Lender for purposes of this Agreement. The Designating Bank shall
thereafter have the right to permit such Designated Lender to provide all or a
portion of the Loans to be made by such Designating Bank pursuant to Section
2.01 or 2.03, and the making of such Loans or portions thereof shall satisfy the
obligation of the Designating Bank to the same extent, and as if, such Loans or
portion thereof were made by the Designating Bank. As to any Loans or portion
thereof made by it, each Designated Lender shall have all the rights that a Bank
making such Loans or portion thereof would have had under this Agreement and
otherwise; provided that (x) its voting rights under this Agreement shall
be exercised solely by the Designating Bank and (y) its Designating Bank shall
remain solely responsible to the other parties hereto for the performance of its
obligations under this Agreement, including its obligations in respect of the
Loans or portion thereof made by it. No additional Note shall be required to
evidence Loans or portions thereof made by a Designated Lender; and the
Designating Bank shall be deemed to hold its Note as agent for its Designated
Lender to the extent of the Loans or portion thereof funded by such Designated
Lender. Each Designating Bank shall act as administrative agent for its
Designated Lender and give and receive notices and other communications on its
behalf. Any payments for the account of any Designated Lender shall be paid to
its Designating Bank as administrative agent for such Designated Lender and
neither the Borrower nor the Administrative Agent shall be responsible for any
Designating Bank's application of such payments. In addition, any
Designated Lender may (i) with notice to, but without the prior written consent
of the Borrower or the Administrative Agent, assign all or portions of its
interest in any Loans to its Designating Bank or to any financial institutions
consented to by the Borrower and the Administrative Agent providing liquidity
and/or credit facilities to or for the account of such Designated Lender to
support the funding of Loans or portions thereof made by such Designated Lender
and (ii) disclose any non-public information relating to its Loans or
portions thereof to any rating agency, commercial paper dealer or provider of
any guarantee, surety, credit or liquidity enhancement to such Designated
Lender.

          
(b)    Each party to this
Agreement agrees that it will not institute against, or join any other person in
instituting against, any Designated Lender any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding or other proceeding under any
federal or state bankruptcy or similar law, for one year and a day after all
outstanding senior indebtedness of such Designated Lender is paid in full. The
Designating Bank for each Designated Lender agrees to indemnify, save, and hold
harmless each other party hereto for any loss, cost, damage and expense arising
out of its inability to institute any such proceeding against such Designated
Lender. This Section 9.07(b) shall survive the termination of this Agreement.

          Section
9.8. Collateral. Each of the Banks represents to each Agent and each of
the other Banks that it in good faith is not relying upon any "margin
stock" (as defined in Regulation U) as collateral in the extension or
maintenance of the credit provided for in this Agreement.

          Section
9.9. Governing Law; Submission to Jurisdiction. This
Agreement and each Note shall be governed by and construed in accordance with
the laws of the State of New York. The Borrower hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York State court sitting in New York City
for purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby. The Borrower irrevocably
waives, to the fullest extent permitted by law, any objection which it may now
or hereafter have to the laying of the venue of any such proceeding brought in
such a court and any claim that any such proceeding brought in such a court has
been brought in an inconvenient forum.

          Section
9.10. Counterparts; Integration. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. This
Agreement constitutes the entire agreement and understanding among the parties
hereto and supersedes any and all prior agreements and understandings, oral or
written, relating to the subject matter hereof.

          Section
9.11. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE
ADMINISTRATIVE AGENT AND THE BANKS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

          Section
9.12. Disclosure of Certain Tax Aspects. The
Borrower, each Bank and each Agent (and each employee, representative, or other
agent of each of the foregoing parties) may disclose to any and all Persons
without limitation of any kind, the purported or claimed U.S. federal income tax
treatment (the "U.S. Tax Treatment") and any fact that may be relevant
to understanding the purported or claimed U.S. federal income tax treatment (the
"U.S. Tax Structure") of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to any of the foregoing parties relating to such U.S. Tax Treatment and
U.S. Tax Structure.

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.

	 	 	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	 
	 	 	 	
      Name:

	 	 	 	
      Title

	 	 	 	
      Address:
	
      40 Westminster Street

	 	 	 	 	
      P.O. Box 6687

	 	 	 	 	
      Providence, RI 02940-6687

	 	 	 	
      Telecopy number (401) 621-5045

 

 

 

	 	 	
      JPMORGAN CHASE BANK

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      BANK OF AMERICA, N.A.

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

 

 

	 	 	
      BANK ONE, NA

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      CITIBANK, N.A.

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      DEUTSCHE BANK AG NEW YORK BRANCH

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      BANK OF TOKYO-MITSUBISHI TRUST COMPANY

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      BARCLAYS BANK PLC

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      CREDIT SUISSE FIRST BOSTON, acting

      through its Cayman Islands Branch

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      FLEET NATIONAL BANK

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      MERRILL LYNCH BANK USA

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      UBS AG, CAYMAN ISLANDS BRANCH

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

				
	 	 	 By:	
       

    
	 	 	
      
	
      Name

	 	 	 	
      Title

	 	 	
      WACHOVIA BANK, N.A.

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      BMO NESBITT BURNS FINANCING, INC.

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      THE BANK OF NOVA SCOTIA

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      THE BANK OF NEW YORK

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      BNP PARIBAS

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

				
	 	 	 By:	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      HSBC BANK USA

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      ROYAL BANK OF CANADA

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      SOCIETE GENERALE

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      SUNTRUST BANK

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      MELLON BANK, N.A.

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      JPMORGAN CHASE BANK,

      as Administrative Agent

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	 
	 	 	 	
      Name:

	 	 	 	
      Title

	 	 	 	
      Address:
	
      270 Park Avenue

	 	 	 	 	
      New York, NY 10017

	 	 	 	 	 
	 	 	 	
      Attention:

	 	 	 	
      Telecopy number

 

COMMITMENT SCHEDULE

 

  
	
       

      
      Bank
	
      Commitment

	
      JPMorgan Chase
	
      $80,000,000.00

	
      Bank of America, N.A.
	
      $66,666,666.67

	
      Bank One, NA
	
      $66,666,666.67

	
      Citibank, N.A
	
      $66,666,666.67

	
      Deutsche Bank AG New York Branch
	
      $66,666,666.67

	
      Bank of Tokyo - Mitsubishi Trust Company
	
      $53,333,333.33

	
      Barclays Bank PLC
	
      $53,333,333.33

	
      Credit Suisse First Boston, acting through its Cayman Islands Branch
	
      $53,333,333.33

	
      Fleet National Bank
	
      $53,333,333.33

	
      Merrill Lynch Bank USA
	
      $53,333,333.33

	
      UBS AG, Cayman Islands Branch
	
      $53,333,333.33

	
      Wachovia Bank, N.A.
	
      $53,333,333.33

	
      BMO Nesbitt Burns Financing, Inc.
	
      $43,333,333.34

	
      The Bank of Nova Scotia
	
      $43,333,333.34

	
      The Bank of New York
	
      $30,000,000.00

	
      BNP Paribas
	
      $30,000,000.00

	
      HSBC Bank USA
	
      $30,000,000.00

	
      Royal Bank of Canada
	
      $30,000,000.00

	
      Societe Generale
	
      $30,000,000.00

	
      SunTrust Bank
	
      $30,000,000.00

	
      Mellon Bank, N.A.
	
      $13,333,333.33

	
      Total Commitments
	
      $1,000,000,000.00

  

PRICING SCHEDULE

          Each
of "Facility Fee Rate" and "Euro-Dollar Margin"
means, for any date, the rate set forth below in the row opposite such term and
in the row corresponding to the "Utilization" at such date and
under the column corresponding to the "Pricing Level" at such
date:

  
	
      

    
	
      

      Level I
	
      

      Level II
	
      

      Level III
	
      

      Level IV
	
      

      Level V
	
      

      Level VI

	
      Facility Fee Rate
	
      0.08%
	
      0.09%
	
      0.10%
	
      0.125%
	
      0.150%
	
      0.175%

	
      Euro-Dollar Margin

        Utilization < 50%

        Utilization > 50%

    
	
      

      0.17%

      0.42%
	
      

      0.21%

      0.46%
	
      

      0.275%

      0.525%

    	
      

      0.375%

      0.625%
	
      

      0.600%

      0.85%
	
      

      0.825%

      1.075%

  

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

          
"Level I Pricing" applies at any date if, at such date, the
Borrower's long-term debt is rated (i) A+ or higher by
S&P or (ii) A1 or higher by Moody's.

          
"Level II Pricing" applies at any date if, at such date, (i) (A) the
Borrower's long-term debt is rated A or higher by S&P or
(B) A2 or higher by Moody's and (ii) Level I Pricing
does not apply.

          
"Level III Pricing" applies at any date if, at such date, (i) (A) the
Borrower's long-term debt is rated A- or higher by
S&P or (B) A3 or better by Moody's and
(ii) neither Level I Pricing nor Level II Pricing applies.

          
"Level IV Pricing" applies at any date, if at such date, (i) (A) the
Borrower's long-term debt is rated BBB+ or higher by S&P or
(B) Baa1 or higher by Moody's and (ii) none of Level I
Pricing, Level II Pricing and Level III Pricing applies.

          
"Level V Pricing" applies at any date if, at such date, (i) (A) the
Borrower's long-term debt is rated BBB or higher by S&P or
(B) Baa2 or higher by Moody's and (ii) none of Level I Pricing,
Level II Pricing, Level III and Level IV Pricing applies.

          
"Level VI Pricing" applies at any date if, at such date, no
other Pricing Level applies.

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

          
"Pricing Level" refers to the determination of which of Level
I, Level II, Level III, Level IV, Level V or Level VI applies at any date.

          
"S&P" means Standard & Poor's Ratings Services,
a division of The McGraw-Hill Companies, Inc.

          
"Utilization" means, at any date, the percentage equivalent of
a fraction (i) the numerator of which is the Total Outstanding Amount at such
date (after giving effect to any borrowing or payment on such date) and the
denominator of which is the aggregate amount of the Commitments at such date
(after giving effect to any reduction on such date). If for any reason any Loans
remain outstanding after termination of the Commitments, Utilization shall be
deemed to be 100%.

          The
credit ratings to be utilized for purposes of this Schedule are those assigned
to the senior unsecured long-term debt securities of the Borrower
without third-party enhancement (other than the Textron Inc. Support
Agreement), and any rating assigned to any other debt security of the Borrower
shall be disregarded. The rating in effect at any date is that in effect at the
close of business of such date.

          If
the Borrower is split-rated and the ratings differential is one level,
the higher of the two ratings will apply (e.g. A+/A2 results in Level I
Pricing and A-/Baa1 results in Level III Pricing). If the Borrower is
split-rated and the ratings differential is two levels or more, the
average of the two ratings (or the higher of two intermediate ratings) shall be
used (e.g. A+/Baa1 results in Level II Pricing and A/BBB+ results in
Level III Pricing).

EXHIBIT A

NOTE

New York, New York

July 28, 2003

          For
value received, Textron Financial Corporation, a Delaware corporation (the
"Borrower"), promises to pay to the order of
_________________________ (the "Bank"), for the account of its
Applicable Lending Office, the unpaid principal amount of each Loan made by the
Bank to the Borrower pursuant to the Credit Agreement referred to below on the
maturity date provided for in the Credit Agreement. The Borrower promises to pay
interest on the unpaid principal amount of each such Loan on the dates and at
the rate or rates provided for in the Credit Agreement. All such payments of
principal and interest shall be made in lawful money of the United States in
Federal or other immediately available funds at the office of JPMorgan Chase
Bank, 270 Park Avenue, New York, New York.

          All
Loans made by the Bank, the respective types and maturities thereof and all
repayments of the principal thereof shall be recorded by the Bank and, if the
Bank so elects in connection with any transfer or enforcement hereof,
appropriate notations to evidence the foregoing information with respect to each
such Loan then outstanding may be endorsed by the Bank on the schedule attached
hereto, or on a continuation of such schedule attached to and made a part
hereof; provided that the failure of the Bank to make any such
recordation or endorsement shall not affect the obligations of the Borrower
hereunder or under the Credit Agreement.

          This
note is one of the Notes referred to in the Five-Year Credit Agreement
dated as of July 28, 2003 among the Borrower, the Banks listed on the signature
pages thereof and JPMorgan Chase Bank, as Administrative Agent (as the same may
be amended from time to time, the "Credit Agreement"). Terms
defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the prepayment
hereof and the acceleration of the maturity hereof.

	 	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

   Note (contd.)

 

   LOANS AND PAYMENTS OF PRINCIPAL

 

  
	
      
      

      

      Date
	
      

      Amount of Loan
	
      

      

      Type of Loan
	
      Amount of Principal Repaid
	
      

      Maturity Date
	
      

      Notation Made By

	
       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

	
       

       
	
       

       
	
       

       
	
       

       
	
       

       
	
       

       

  

EXHIBIT B

 

FORM OF COMPETITIVE BID QUOTE REQUEST

[Date]

To:   JPMorgan Chase Bank

          
(the "Administrative Agent")

From:   Textron Financial Corporation

  
    Re:   Five-Year Credit Agreement (as
    the same may be amended from time to time, the "Credit Agreement")
    dated as of July 28, 2003 among the Borrower, the Banks parties thereto and
    the Administrative Agent

  

          We
hereby give notice pursuant to Section 2.03 of the Credit Agreement that we
request Competitive Bid Quotes for the following proposed Competitive Bid
Borrowing(s):

          Date
of Borrowing: __________________

 

  
	
      Principal Amount*
	 	
      Interest Period**

	
      $
	 	 

  

            Such Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute
Rate]. [The applicable base rate is the London Interbank Offered Rate.]

            Terms used herein have the meanings assigned to them in the Credit Agreement.

	 	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

  
    
      
        
          
            
              
                
                   

                

              

            

          

        

      

    

  

_________________________________________

* Amount must be $25,000,000 or a larger multiple
of $1,000,000.

    
    ** Not less than one month (LIBOR Auction) or not less than
    7 days (Absolute Rate Auction), subject to the provisions of the
    definition of Interest Period.

EXHIBIT C

 

FORM OF INVITATION FOR COMPETITIVE BID QUOTES

To:   [Name of Bank]

  
    Re:   Invitation for Competitive Bid Quotes to
    Textron Financial Corporation

  

(the "Borrower")

          Pursuant
to Section 2.03 of the Five-Year Credit Agreement dated as of July 28,
2003 among the Borrower, the Banks parties thereto and the undersigned, as
Administrative Agent, as the same may be amended from time to time, we are
pleased on behalf of the Borrower to invite you to submit Competitive Bid Quotes
to the Borrower for the following proposed Competitive Bid Borrowing(s):

Date of Borrowing: __________________

 

  
	
      Principal Amount
	 	
      Interest Period

	
      $
	 	 

  

          Such
Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute Rate].
[The applicable base rate is the London Interbank Offered Rate.]

          Please
respond to this invitation by no later than [2:00 P.M.] [9:30 A.M.] (New York
City time) on [date].

	 	 	
      JPMORGAN CHASE BANK,

      as Administrative Agent

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	
      Authorized Officer

EXHIBIT D

   FORM OF COMPETITIVE BID QUOTE

To:   JPMorgan Chase Bank, as Administrative Agent

Re:   Competitive Bid Quote to Textron Financial
Corporation

(the "Borrower")

          In
response to your invitation on behalf of the Borrower dated ________, ____, we
hereby make the following Competitive Bid Quote on the following terms:

          1.   Quoting
Bank: ________________________________

          2.   Person
to contact at Quoting Bank: _________________________

          3.   Date
of Borrowing: ____________________*

          4.   We
hereby offer to make Competitive Bid Loan(s) in the following principal amounts,
for the following Interest Periods and at the following rates:

 

  
	
      Principal

      Amount**
	
      Interest

      Period***

    	
      Competitive Bid [Margin****]
	
      [Absolute Rate*****]

	
      $
	 	 	 
	 	 	 	 

  

 

_____________________________

* As specified in the related Invitation.

** Principal amount bid for each Interest Period may not exceed
principal amount requested. Specify aggregate limitation if the sum of the
individual offers exceeds the amount the Bank is willing to lend. Bids must be
made for $5,000,000 or a larger multiple of $1,000,000.

*** Not less than one month or not less than 7 days, as specified in
the related Invitation. No more than five bids are permitted for each Interest
Period.

**** Margin over or under the London Interbank Offered Rate determined
for the applicable Interest Period. Specify percentage (to the nearest 1/10,000
of 1%) and specify whether "PLUS" or "MINUS".

***** Specify rate of interest per annum (to the nearest 1/10,000th of
1%).

        $

        [Provided, that the aggregate principal amount of Competitive Bid Loans for
which the above offers may be accepted shall not exceed $____________.]**

We understand and agree that the offer(s) set forth above, subject to the
satisfaction of the applicable conditions set forth in the Five-Year
Credit Agreement dated as of July 28, 2003 among the Borrower, the Banks parties
thereto and yourselves, as Administrative Agent, as the same may be amended from
time to time, irrevocably obligates us to make the Competitive Bid Loan(s) for
which any offer(s) are accepted, in whole or in part.

 

	 	 	
      Very truly yours,

	 	 	 	 
	 	 	
      [NAME OF BANK]

	 	 	 
	 	 	
      By:
	
       

    
	
      Date:____________
	 	 	
      Authorized Officer

	 	 	 	 

 

EXHIBIT E

 

OPINION OF COUNSEL FOR THE BORROWER

 

To the Banks and the Administrative Agent

    Referred to Below

c/o JPMorgan Chase Bank, as Administrative Agent

270 Park Avenue

New York, New York 10017

Dear Sirs:

          I
am [General Counsel] [Assistant General Counsel] of Textron Financial
Corporation (the "Borrower") and am delivering this opinion in
connection with the Five-Year Credit Agreement (the "Credit
Agreement") dated as of July 28, 2003 among the Borrower, the banks
listed on the signature pages thereof and JPMorgan Chase Bank, as Administrative
Agent, the Subordination Agreement (the "Subordination Agreement")
dated as of August 21, 1991 between the Borrower and Textron Inc., and the
Support Agreement (the "Support Agreement") dated as of May 25,
1994 between the Borrower and Textron Inc. Terms defined in the Credit Agreement
are used herein as therein defined. This opinion is being rendered to you at the
request of our client pursuant to Section 3.01(c) of the Credit Agreement.

          We
have examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as we have deemed necessary or advisable for purposes of this
opinion. As to the opinion expressed below relating to the existence,
qualification and good standing of any corporation or other entity in any
jurisdiction, this opinion relies solely upon and is limited by those
certificates and telegraphic and telephonic confirmations given by public
officials and assumes the same to have been properly given and to be accurate.

          Upon
the basis of the foregoing, I am of the opinion that:

          1.
   The Borrower is a corporation duly incorporated,
validly existing and in good standing under the laws of Delaware, and has all
corporate powers and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted.

          2.
   The execution, delivery and performance by the
Borrower of the Credit Agreement, the Subordination Agreement, the Support
Agreement and the Notes are within the Borrower's corporate powers, have
been duly authorized by all necessary corporate action, require no action by or
in respect of, or filing with, any governmental body, agency or official and do
not contravene, or constitute a default under, any provision of applicable law
or regulation or of the certificate of incorporation or by-laws of the
Borrower or of any agreement, judgment, injunction, order, decree or other
instrument binding upon the Borrower or any of its Subsidiaries or result in the
creation or imposition of any Lien on any asset of the Borrower or any of its
Subsidiaries.

          3.
   The Credit Agreement, the Subordination Agreement
and Support Agreement constitute valid and binding agreements of the Borrower
and each Note constitutes a valid and binding obligation of the Borrower, in
each case enforceable in accordance with its terms, except as the same may be
limited by bankruptcy, insolvency or similar laws affecting creditors'
rights generally and by general principles of equity.

          4.
   There is no action, suit or proceeding pending
against, or to the best of our knowledge threatened against or affecting, the
Borrower or any of its Subsidiaries before any court or arbitrator or any
governmental body, agency or official, in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the
business, consolidated financial position or consolidated results of operations
of the Borrower and its Consolidated Subsidiaries, considered as a whole or
which in any manner draws into question the validity of the Credit Agreement,
the Subordination Agreement, the Support Agreement or the Notes.

          5.
   Each of the Borrower's corporate
Subsidiaries is a corporation validly existing and in good standing under the
laws of its jurisdiction of incorporation, and has all corporate powers and all
material governmental licenses, authorizations, consents and approvals required
to carry on its business as now conducted.

          I
am a member of the bar of the State of Rhode Island and do not purport to
express any opinion herein concerning any laws other than the laws of the State
of Rhode Island, the corporate laws of the State of Delaware and the federal
laws of the United States of America as in effect on the date hereof.

	 	
      Very truly yours,

 

EXHIBIT F

 

OPINION OF DAVIS POLK & WARDWELL,

SPECIAL COUNSEL FOR THE ADMINISTRATIVE AGENT

 

To the Banks and the Administrative Agent

    Referred to Below

c/o JPMorgan Chase Bank, as Administrative Agent

270 Park Avenue

New York, New York 10017

Dear Sirs:

          We
have participated in the preparation of the Five-Year Credit Agreement
(the "Credit Agreement") dated as of July 28, 2003 among
Textron Financial Corporation, a Delaware corporation (the "Borrower"),
the banks listed on the signature pages thereof (the "Banks")
and JPMorgan Chase Bank, as Administrative Agent (the "Administrative
Agent"), and have acted as special counsel for the Administrative Agent
for the purpose of rendering this opinion pursuant to Section 3.01(d) of the
Credit Agreement. Terms defined in the Credit Agreement are used herein as
therein defined.

          We
have examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records, certificates of public
officials and other instruments and have conducted such other investigations of
fact and law as we have deemed necessary or advisable for purposes of this
opinion.

          Upon
the basis of the foregoing, we are of the opinion that:

          1.
   The execution, delivery and performance by the
Borrower of the Credit Agreement and the Notes are within the Borrower's
corporate powers and have been duly authorized by all necessary corporate
action.

          2.
   The Credit Agreement constitutes a valid and
binding agreement of the Borrower and each Note constitutes a valid and binding
obligation of the Borrower, in each case enforceable in accordance with its
terms, except as the same may be limited by bankruptcy, insolvency or similar
laws affecting creditors' rights generally and by general principles of
equity.

          We
are members of the Bar of the State of New York and the foregoing opinion is
limited to the laws of the State of New York, the federal laws of the United
States of America and the General Corporation Law of the State of Delaware. In
giving the foregoing opinion, we express no opinion as to the effect (if any) of
any law of any jurisdiction (except the State of New York) in which any Bank is
located which limits the rate of interest that such Bank may charge or collect.

          This
opinion is rendered solely to you in connection with the above matter. This
opinion may not be relied upon by you for any other purpose or relied upon by
any other person without our prior written consent.

	 	
      Very truly yours,

EXHIBIT G

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

          AGREEMENT
dated as of _________, ____ among [ASSIGNOR] (the "Assignor"),
[ASSIGNEE] (the "Assignee"), TEXTRON FINANCIAL CORPORATION (the
"Borrower") and JPMorgan Chase Bank, as Administrative Agent
(the "Administrative Agent").

W I T N E S S E T H

          WHEREAS,
this Assignment and Assumption Agreement (the "Agreement")
relates to the Five-Year Credit Agreement dated as of July 28, 2003
among the Borrower, the Assignor and the other Banks party thereto, as Banks,
and the Administrative Agent (as the same may be amended from time to time, the
"Credit Agreement");

          WHEREAS,
as provided under the Credit Agreement, the Assignor has a Commitment to make
Committed Loans to the Borrower in an aggregate principal amount at any time
outstanding not to exceed $__________;

          WHEREAS,
Committed Loans made to the Borrower by the Assignor under the Credit Agreement
in the aggregate principal amount of $__________ are outstanding at the date
hereof; and

          WHEREAS,
the Assignor has Letter of Credit Liabilities in an aggregate amount of $______
under the Credit Agreement at the date hereof; and

          WHEREAS,
the Assignor proposes to assign to the Assignee all of the rights of the
Assignor under the Credit Agreement in respect of a portion of its Commitment
thereunder in an amount equal to $__________*(the "Assigned
Amount"), together with a corresponding portion of its outstanding
Committed Loans and Letter of Credit Liabilities, and the Assignee proposes to
accept assignment of such rights and assume the corresponding obligations from
the Assignor on such terms;

          NOW,
THEREFORE, in consideration of the foregoing and the mutual agreements contained
herein, the parties hereto agree as follows:

___________________________________________________

* Minimum $5,000,000

          Section
1. Definitions. All capitalized terms not otherwise defined herein shall
have the respective meanings set forth in the Credit Agreement.

          Section
2. Assignment. Assignor hereby assigns and sells to the Assignee all of
the rights of the Assignor under the Credit Agreement to the extent of the
Assigned Amount, and the Assignee hereby accepts such assignment from the
Assignor and assumes all of the obligations of the Assignor under the Credit
Agreement to the extent of the Assigned Amount, including the purchase from the
Assignor of the corresponding portion of the principal amount of the Committed
Loans made by the Assignor and Letter of Credit Liabilities of the Assignor
outstanding at the date hereof. Upon the execution and delivery hereof by the
Assignor, the Assignee, the Borrower and the Administrative Agent and the
payment of the amounts specified in Section 3 required to be paid on
the date hereof (i) the Assignee shall, as of the date hereof, succeed to the
rights and be obligated to perform the obligations of a Bank under the Credit
Agreement with a Commitment in an amount equal to the Assigned Amount and
acquire the rights of the Assignor with respect to a corresponding portion of
each of its outstanding Committed Loans and Letter of Credit Liabilities, and
(ii) the Commitment of the Assignor shall, as of the date hereof, be reduced by
a like amount and the Assignor released from its obligations under the Credit
Agreement to the extent such obligations have been assumed by the Assignee. The
assignment provided for herein shall be without recourse to the Assignor.

          Section
3. Payments. As consideration for the assignment and sale contemplated in
Section 2 hereof, the Assignee shall pay to the Assignor on the date hereof in
Federal funds the amount heretofore agreed between them.* It is
understood that facility fees accrued to the date hereof are for the account of
the Assignor and such fees accruing from and including the date hereof are for
the account of the Assignee. Each of the Assignor and the Assignee hereby agrees
that if it receives any amount under the Credit Agreement which is for the
account of the other party hereto, it shall receive the same for the account of
such other party to the extent of such other party's interest therein
and shall promptly pay the same to such other party.

______________________________

* Amount should combine principal together with
accrued interest and breakage compensation, if any, to be paid by the Assignee,
net of any portion of any upfront fee to be paid by the Assignor to the
Assignee. It may be preferable in an appropriate case to specify these amounts
generically or by formula rather than as a fixed sum.

          Section
4. Consent of the Borrower and the Administrative Agent. [This Agreement
is conditioned upon the consent of the Borrower and the Administrative Agent
pursuant to Section 9.06(c) of the Credit Agreement. The execution of this
Agreement by the Borrower and the Administrative Agent is evidence of this
consent. Pursuant to Section 9.06(c) the Borrower agrees to execute and deliver
a Note payable to the order of the Assignee to evidence the assignment and
assumption provided for herein.]

          Section
5. Non-reliance on Assignor. The Assignor makes no representation
or warranty in connection with, and shall have no responsibility with respect
to, the solvency, financial condition, or statements of the Borrower or Textron,
or the validity and enforceability of the obligations of the Borrower in respect
of the Credit Agreement or any Note or of Textron in respect of the Support
Agreement. The Assignee acknowledges that it has, independently and without
reliance on the Assignor, and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this
Agreement and will continue to be responsible for making its own independent
appraisal of the business, affairs and financial condition of the Borrower and
Textron.

          Section
6. Governing Law. Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

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

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

	 	 	
      [ASSIGNOR]

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	 	 
	 	 	
      [ASSIGNEE]

	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      JPMORGAN CHASE BANK

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

 

EXHIBIT H

 

DESIGNATION AGREEMENT

dated as of ________________, _____

          Reference
is made to the Five-Year Credit Agreement dated as of July 28, 2003 (as
amended from time to time, the "Credit Agreement") among
Textron Financial Corporation, a Delaware corporation (the "Borrower"),
the banks party thereto (the "Banks") and JPMorgan Chase Bank,
as Administrative Agent (the "Administrative Agent"). Terms
defined in the Credit Agreement are used herein with the same meaning.

          _________________
(the "Designator") and ________________ (the "Designee")
agree as follows:

          1.
   The Designator designates the Designee as its
Designated Lender under the Credit Agreement and the Designee accepts such
designation.

          2.
   The Designator makes no representations or
warranties and assumes no responsibility with respect to the financial condition
of the Borrower or the performance or observance by the Borrower of any of its
obligations under the Credit Agreement or any other instrument or document
furnished pursuant thereto.

          3.
   The Designee confirms that it is an Eligible
Designee; appoints and authorizes the Designator as its administrative agent and
attorney-in-fact and grants the Designator an irrevocable power
of attorney to receive payments made for the benefit of the Designee under the
Credit Agreement and to deliver and receive all communications and notices under
the Credit Agreement, if any, that the Designee is obligated to deliver or has
the right to receive thereunder; and acknowledges that the Designator retains
the sole right and responsibility to vote under the Credit Agreement, including,
without limitation, the right to approve any amendment or waiver of any
provision of the Credit Agreement, and agrees that the Designee shall be bound
by all such votes, approvals, amendments and waivers and all other agreements of
the Designator pursuant to or in connection with the Credit Agreement, all
subject to Section 9.05(b) of the Credit Agreement.

          4.
   The Designee confirms that it has received a copy
of the Credit Agreement, together with copies of the most recent financial
statements referred to in Article 4 or delivered pursuant to Article 5 thereof
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into this Designation Agreement;
agrees that it will, independently and without reliance upon the Administrative
Agent, the Designator or any other Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking any action it may be permitted to take
under the Credit Agreement.

          5.
   Following the execution of this Designation
Agreement by the Designator and the Designee and the consent hereto by the
Borrower, it will be delivered to the Administrative Agent for its consent. This
Designation Agreement shall become effective when the Administrative Agent
consents hereto or on any later date specified on the signature page hereof.

          6.
   Upon the effectiveness hereof, (a) the Designee
shall have the right to make Loans or portions thereof as a Bank pursuant to
Section 2.01 or 2.03 of the Credit Agreement and the rights of a Bank related
thereto and (b) the making of any such Loans or portions thereof by the Designee
shall satisfy the obligations of the Designator under the Credit Agreement to
the same extent, and as if, such Loans or portions thereof were made by the
Designator.

          7.
   This Designation Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York.

          IN
WITNESS WHEREOF, the parties have caused this Designation Agreement to be
executed by their respective officers hereunto duly authorized, as of the date
first above written.

Effective Date:______ , ____

	 	 	
      [NAME OF DESIGNATOR]

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	 	 
	 	 	
      [NAME OF DESIGNEE]

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

* This date should be no earlier than the date of
the Administrative Agent's consent hereto.

The undersigned consent to the foregoing designation.

	 	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

 

	 	 	
      JPMORGAN CHASE BANK, as

          Administrative Agent

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

 

 

EXHIBIT I

 

SUBORDINATION AGREEMENT

 

          SUBORDINATION
AGREEMENT dated as of August 21, 1991, between TEXTRON FINANCIAL CORPORATION
(the "Company") and TEXTRON INC. (the "Parent").

W I T N E S S E T H :

          WHEREAS,
the Parent and the Company wish to subordinate pursuant to the terms set forth
herein all indebtedness of the Company to the Parent, outstanding on the date
hereof or from time to time incurred, to certain other indebtedness of the
Company, outstanding on the date hereof or from time to time incurred, as more
fully described herein.

          NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

          Section
1. Definitions.

          
"Senior Debt" means all obligations of the Company in respect
of indebtedness for borrowed money (including interest accruing on such borrowed
money after commencement of any bankruptcy or insolvency proceeding of the
Company whether or not such interest constitutes an allowed claim in such
proceeding), other than indebtedness which by its terms is subordinate in right
of payment to other indebtedness of the Company on substantially the same terms
as the Subordinated Debt, whether outstanding on the date of this Agreement or
hereafter created.

          
"Subordinated Debt" means all obligations of whatsoever nature
of the Company owing to the Parent.

          Section
2. Subordinated Debt. The parties hereto agree for the benefit of the
holders of Senior Debt that the Subordinated Debt shall, in the manner
hereinafter set forth, be subordinated and junior in right of payment to the
Senior Debt.

          Section
3. No Subordinated Debt Payments in Certain Circumstances . (a) Upon the
maturity of all or any part of the Senior Debt by lapse of time, acceleration or
otherwise, such Senior Debt shall first be paid in full, or such payment shall
be duly provided for in cash or in a manner satisfactory to the holders of such
Senior Debt, before any payment by the Company is made on account of the
principal of or premium, if any, or interest on, or any other amount payable
with respect to, the Subordinated Debt.

          
(b)    In the event and during the continuation of
(x) a default in any payment with respect to any Senior Debt or (y) an event of
default (as defined in such Senior Debt or in the instrument under which the
same is outstanding, other than a default in the payment of amounts due thereon)
with respect to any Senior Debt permitting the holders thereof to accelerate the
maturity thereof (provided that any event that would become such an event
of default only upon the giving of notice of such event to the Company and the
lapse of time, shall constitute such an event of default for purposes of this
Agreement if such notice has been given to the Company) (such default and event
of default being referred to in this Agreement as a "Senior Debt Default")
no payment shall be made by the Company on or with respect to the principal of,
or premium, if any, or interest on, or any other amount payable with respect to,
the Subordinated Debt unless and until such Senior Debt Default shall have been
remedied, nor shall any such payment be made if after giving effect, as if paid,
to such payment any Senior Debt Default would exist. In any such event, the
Parent shall not demand, accept or receive, any direct or indirect payment (in
cash or property or by setoff, exercise of contractual or statutory rights or
otherwise) of or on account of the Subordinated Debt, notwithstanding the terms
of the Subordinated Debt or of any agreement or instrument which governs the
Subordinated Debt, and no such payment shall be due.

          
(c)    Unless and until all principal of, premium, if
any, and interest on, and all other obligations of the Company under, the Senior
Debt shall have been paid in full, the Company shall not make, and the Parent
shall not demand, accept or receive (in cash or property or by setoff, exercise
of contractual or statutory rights or otherwise), or attempt to collect or
commence any legal proceedings to collect, any direct or indirect payment on
account of the Subordinated Debt prior to the date such payment becomes due and
payable pursuant to the terms thereof or, if later, prior to the first date such
amount is not prohibited from being paid pursuant to this Agreement.

          
(d)    Unless and until all principal of, premium, if
any, and interest on, and all other obligations of the Company in respect of,
the Senior Debt shall have been paid in full, the Parent will not commence or
maintain any action, suit or any other legal or equitable proceeding against the
Company, or join with any creditor in any such proceeding, under any insolvency,
bankruptcy, receivership, liquidation, reorganization or other similar law,
unless the holders of Senior Debt shall also join in bringing such proceeding,
provided that this Section 3(d) shall not prohibit the Parent from filing a
proof of claim or otherwise participating in any such proceeding not commenced
by it.

          Section
4. Subordinated Debt Subordinated to Prior Payment of all Senior Debt on
Dissolution, Liquidation or Reorganization of the Company. In the event of
any insolvency or bankruptcy proceedings, and any receivership, liquidation,
reorganization or other similar proceedings in connection therewith, relative to
the Company or to its creditors, in their capacity as creditors of the Company,
or to substantially all of the Company's property, in the event of any
proceedings for voluntary liquidation, dissolution or other winding up of the
Company, whether or not involving insolvency or bankruptcy, then

          
(a)    the holders of all Senior Debt shall first be
entitled to receive payment in full of the principal of, premium, if any,
interest and all amounts payable on such Senior Debt (accruing before and after
the commencement of any proceedings described above) before the Parent is
entitled to receive any payment on account of the principal of, premium, if any,
or interest on, or any other amount payable with respect to, the Subordinated
Debt;

          (b)
   any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities to
which the Parent would be entitled, but for the provisions of this Agreement,
shall be paid or distributed by the liquidating trustee or agent or other Person
making such payment or distribution, directly to the holders of Senior Debt (pro
rata to such holders on the basis of the respective amounts of Senior Debt held
by such holders) or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any of
such Senior Debt may have been issued, as their respective interests may appear
(such representatives or trustees being referred to in this Agreement as "Representative"
or "Representatives"), to the extent necessary to make payment
in full of all principal, premium, if any, interest on and all other amounts
payable with respect to Senior Debt remaining unpaid, after giving effect to any
concurrent payment or distribution to the holders of Senior Debt;

          (c)
   the Parent, as holder of the Subordinated Debt,
irrevocably authorizes and empowers (without imposing any obligation on) each
holder of Senior Debt to demand, sue for, collect and receive all payments and
distributions in respect of the Subordinated Debt, and to file and prove all
claims therefor and take all such other action not inconsistent with the
foregoing (including the right to vote with respect to the Subordinated Debt) in
the name of the Parent or otherwise, as such holder of Senior Debt or any
Representative on behalf of holders of Senior Debt may determine to be necessary
or appropriate for the enforcement of this Agreement; and

          
(d)    the Parent, as holder of the Subordinated
Debt, shall execute and deliver to such holder of Senior Debt or any
Representative all such further instruments confirming the above authorization,
and all such powers of attorney, proofs of claim, assignments of claim and other
instruments, and shall take all such other action as may be reasonably requested
by any holder of Senior Debt, in order to enable such holder of Senior Debt or
any Representative to enforce all claims upon or in respect of the Subordinated
Debt.

          Section
5. Rights of the Holders of Senior Debt; Subrogation .
(a) Should any payment or distribution or security or the proceeds of
any thereof be collected or received by the Parent in respect of the
Subordinated Debt, and such collection or receipt is prohibited hereunder prior
to the payment in full of the Senior Debt, the Parent will forthwith deliver the
same to the holders of Senior Debt (pro rata to such holders on the basis of the
respective amounts of Senior Debt held by such holders) or their Representatives
in precisely the form received (except for the endorsement or the assignment of
or by the Parent where necessary) for application to payment in full of all
Senior Debt, after giving effect to any concurrent payment or distribution to
the holders of the Senior Debt and, until so delivered, the same shall be held
in trust by the Parent as the property of the holders of the Senior Debt.

          
(b)    All payments and distributions received by any
Representative of holders of Senior Debt on behalf of such holders of Senior
Debt in respect of the Subordinated Debt, to the extent received in or converted
into cash, may be applied by such Representative first to the payment of any and
all reasonable out-of-pocket expenses (including
attorney's fees and legal expenses) paid or incurred by such
Representative in enforcing the provisions hereof or in endeavoring to collect
or realize upon the Subordinated Debt or any security therefor, and any balance
thereof shall, solely as between the Parent, as holder of the Subordinated Debt,
on the one hand, and such holders of Senior Debt, on the other hand, be applied
by such Representative in such order of application as such Representative may
from time to time select, toward the payment of Senior Debt remaining unpaid.

          
(c)    The Parent, as holder of the Subordinated
Debt, shall not be subrogated to the rights of the holders of Senior Debt to
receive payments or distributions of assets of the Company until all amounts
payable with respect to the Senior Debt shall be paid in full; and, for the
purposes of such subrogation, no payments or distributions to the holders of
Senior Debt of any cash, property or securities to which the Parent would be
entitled except for these provisions shall, as among the Company, its creditors
other than the holders of Senior Debt, and the Parent, as holder of the
Subordinated Debt, be deemed to be a payment by the Company to or on account of
the Senior Debt. The provisions of this Agreement are intended solely for the
purpose of defining the relative rights of the Parent, as holder of the
Subordinated Debt, on the one hand, and the holders of Senior Debt, on the other
hand.

          
(d)    Subject to the payment in full of all Senior
Debt, the Parent, as holder of the Subordinated Debt, shall be subrogated to the
rights of the holders of Senior Debt to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior Debt until
all amounts owing on the Subordinated Debt shall be paid in full. For purposes
of such subrogation, no payments or distributions to the Parent of cash,
property, securities or other assets by virtue of the subrogation herein
provided which otherwise would have been made to the holders of Senior Debt
shall, as among the Company, its creditors other than the holders of Senior
Debt, and the Parent, as holder of the Subordinated Debt, be deemed to be a
payment to or on account of the Subordinated Debt. The Parent agrees that, in
the event that all or any part of any payment made on account of the Senior Debt
is recovered from the holders of Senior Debt as a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law, any
payment or distribution received by the Parent on account of the Subordinated
Debt at any time after the date of the payment so recovered, whether pursuant to
the right of subrogation provided for in this Section 5(d) or otherwise, shall
be deemed to have been received by the Parent in trust as the property of the
holders of Senior Debt and the Parent shall forthwith deliver the same to the
holders of Senior Debt for the equal and ratable benefit of the holders of
Senior Debt for application to payment of all Senior Debt in full.

          Section
6. Renewals, Extensions and Increases of Senior Debt. The Parent by its
acceptance thereof waives any and all notice of renewal, extension, accrual or
increase in the amount of any of the Senior Debt, present or future, and agrees
and consents that without notice to or assent by the Parent:

  
              
    (i)    the obligation and liabilities of the
    Company or any other party or parties for or upon the Senior Debt (or any
    promissory note, security document or guaranty evidencing or securing the
    same) may, from time to time, in whole or in part, be renewed, extended,
    increased, modified, amended, accelerated, compromised, supplemented,
    terminated, sold, exchanged, waived or released;

              
    (ii)    any Representative acting on behalf of
    holders of Senior Debt and any holder of Senior Debt may exercise or refrain
    from exercising any right, remedy or power granted by or in connection with
    any agreements relating to the Senior Debt; and

              
    (iii)    any balance or balances of funds with
    any holders of the Senior Debt at any time outstanding to the credit of the
    Company may, from time to time, in whole or in part, be surrendered or
    released; all as any Representative acting on behalf of holders of Senior
    Debt and any holder of Senior Debt may deem advisable and all without
    impairing, abridging, diminishing, releasing or affecting the subordination
    of the Subordinated Debt to the Senior Debt provided for herein.

  

          Section
7. Obligation of the Company Unconditional. Nothing contained in this
Agreement is intended to or shall impair, as among the Company, its creditors
other than the holders of Senior Debt, and the Parent, as holder of the
Subordinated Debt, the obligation of the Company, which is absolute and
unconditional, to pay to the Parent the principal of, premium, if any, and
interest on, and all other amounts payable with respect to, the Subordinated
Debt, as and when the same shall become due and payable (except as otherwise
provided in Section 3), by lapse of time, acceleration or otherwise, in
accordance with their terms, or is intended to or shall affect the relative
rights of the Parent, as holder of the Subordinated Debt, and other creditors of
the Company other than the holders of Senior Debt, nor shall anything herein or
therein prevent the Parent, as holder of the Subordinated Debt, (i) from taking
all appropriate actions to preserve its rights under the Subordinated Debt not
inconsistent with the rights of the holders of Senior Debt under this Agreement,
or (ii) from exercising all remedies otherwise permitted by applicable law upon
default under the Subordinated Debt, subject to the rights, if any, under this
Agreement of the holders of Senior Debt in respect of cash, property or
securities of the Company otherwise payable or delivered to such holders upon
the exercise of any such remedy.

          Section
8. Miscellaneous. (a) The Parent, as the holder of the Subordinated Debt,
by its acceptance hereof agrees that it will not assign or otherwise transfer
any of its rights in respect of the Subordinated Debt to any Person without the
prior written consent of the holders of Senior Debt.

          
(b)    No present or future holder of the Senior Debt
shall be prejudiced in his right to enforce the subordination contained herein
in accordance with the terms hereof by any act or failure to act on the part of
the Company or the Parent. The subordination provisions contained herein are for
the benefit of the holders of Senior Debt and, so long as Senior Debt is
outstanding, may not be rescinded, canceled or modified in any way adverse to
the holders of Senior Debt without the prior written consent of each holder of
Senior Debt affected thereby.

          
(c)    This Agreement shall be binding upon the
Company and the Parent, and their respective successors, and shall inure to the
benefit of the holders of Senior Debt and their respective successors and
assigns.

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

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

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

	 	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

	 	 	
      TEXTRON INC.

	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
       

    
	 	 	 	
      Name

	 	 	 	
      Title

 

EXHIBIT J

 

OPINION OF COUNSEL FOR TEXTRON INC.

 

To the Banks and the Administrative Agent

    Referred to Below

c/o JPMorgan Chase Bank, as Administrative Agent

270 Park Avenue

New York, New York 10017

Re: Textron Financial Corporation

Dear Sirs:

          I
am _______________________________ of Textron Inc. This opinion is provided to
you pursuant to the Five-Year Credit Agreement dated as of July 28, 2003
among Textron Financial Corporation, the Banks listed on the signature pages
thereof and JPMorgan Chase Bank, as Administrative Agent (the "Credit
Agreement"). Capitalized terms used in this opinion and not otherwise
defined herein have the respective meanings assigned thereto in the Credit
Agreement.

          I
am familiar with the Support Agreement (the " Support Agreement")
dated as of May 25, 1994 between Textron and TFC and the Subordination Agreement
(the "Subordination Agreement") dated as of August 21, 1991, between
Textron and TFC. I have examined or supervised the examination of originals, or
copies certified or otherwise identified to my satisfaction, of such documents,
corporate records, certificates of public officials and other instruments and
have conducted such other investigations of fact and law as I have deemed
necessary or advisable for purposes of this opinion.

          In
my examination, I have assumed the legal capacity of all natural persons, the
genuineness of all signatures, the authenticity of all documents submitted to me
as originals, the conformity to original documents of all documents submitted to
me as certified or photostatic copies and the authenticity of all of the
originals of such copies. In making my examination of documents executed by
parties other than Textron, I have assumed that such parties had the power,
corporate or other, to enter into and perform all obligations thereunder and
have also assumed the due authorization by all requisite actions, corporate or
other, and execution and delivery by such parties of such documents and the
validity and binding effect thereof. In rendering this opinion, I have relied as
to matters of fact, to the extent I have deemed proper, on certificates of
responsible officers of Textron and public officials.

          Upon
the basis of the foregoing, I am of the opinion that:

  
              
    (i)   all of the issued and outstanding shares of
    capital stock of Textron Financial Corporation are owned by Textron Inc., a
    Delaware corporation, and such shares are validly issued, fully paid and
    nonassessable;

              
    (ii)   the Support Agreement has been duly
    authorized, executed and delivered by Textron Inc. and the obligations of
    Textron Inc. thereunder constitute legal, valid and binding obligations of
    Textron Inc., enforceable in accordance with their respective terms, except
    as limited by bankruptcy, insolvency or other similar laws affecting the
    enforcement of creditors' rights generally; provided,
    however, that no opinion is given herein as to the availability of the
    remedies of specific performance or injunctive relief or other equitable
    remedies; and

              
    (iii)   the Subordination Agreement dated as of
    August 21, 1991 between Textron Inc. and Textron Financial Corporation has
    been duly authorized, executed and delivered by Textron Inc. and constitutes
    the legal, valid and binding obligation of Textron Inc. enforceable in
    accordance with its terms, except as limited by bankruptcy, insolvency or
    other similar laws affecting the enforcement of creditors' rights
    generally; provided, however, that no opinion is given herein as to
    the availability of the remedies of specific performance or injunctive
    relief or other equitable remedies.

  

	 	
      Very truly yours,

EXHIBIT K

SUPPORT AGREEMENT

 

          THIS
SUPPORT AGREEMENT is entered into as of May 25, 1994 by and between TEXTRON
FINANCIAL CORPORATION, a Delaware corporation ("TFC"), and
TEXTRON INC., a Delaware corporation ("Textron").

          In
consideration of the mutual covenants hereinafter set forth, Textron and TFC
agree as follows:

          1.
   Fixed Charge Coverage.

          Commencing
with the fiscal quarter in which this Agreement is executed and terminating with
the fiscal quarter in which this Agreement terminates, Textron shall pay TFC a
cash payment sufficient to provide that with respect to the
year-to-date period then ended the sum of TFC's
pre-tax earnings before extraordinary items plus Fixed Charges will not
be less than one hundred and twenty-five (125%) percent of TFC's
Fixed Charges. Such payment shall be made not later than the end of the next
fiscal quarter. As used herein, "Fixed Charges" shall mean actual
interest incurred in each quarter on funded or unfunded indebtedness and
apportionment of debt discount or premium (in the testing of obligation where
interest is partially or entirely contingent upon the earnings "Fixed
Charges" will include contingent interest payments).

          2.
   Ownership of TFC.

          Textron
and TFC agree that one hundred (100%) percent of the issued and outstanding
shares of common stock of TFC shall at all times be owned by Textron or
corporation controlled by, controlling or under common control with Textron, and
that Textron or any such corporation will at all times have a controlling
interest in TFC.

          3.
   Minimum Shareholder's Equity.

          Commencing
with the fiscal quarter in which this Agreement is executed and terminating with
the fiscal quarter in which this Agreement terminates, Textron shall make such
equity contributions to TFC as may be required to ensure that the consolidated
shareholders equity of TFC shall not be less than $200,000,000. Any
contributions of equity required by this Agreement shall be made not later than
the end of the next fiscal quarter. Such additional equity contributions may be
in any form of asset which is eligible for treatment as shareholder equity in
accordance with generally accepted accounting principles.

          4.
   Computations.

          All
computations under this Agreement shall be made in accordance with generally
accepted accounting principles consistently applied, and all computations shall
be made on a consolidated basis so as to include all of TFC's
consolidated subsidiaries now or hereafter organized.

          5.
   No Guarantee of TFC's Obligations.

          This
Agreement is not intended to be and is not, and nothing contained herein and
nothing done by Textron pursuant hereto shall be deemed to constitute a
guarantee by Textron of the payment of the interest or principal of any
obligation, indebtedness or liability of any kind or character, however
evidenced or arising, of TFC or any person or persons.

          6.
   Third-party Beneficiaries.

          Textron
and TFC acknowledge and agree that this Agreement is entered into for the
benefit of and is enforceable by any party which lends funds to TFC and their
successors and assigns.

          7.
   Default.

          Upon
any default by either party hereunder and the expiration of all applicable grace
periods, the non-defaulting party shall have all rights and remedies
available under applicable law.

          8.
   Termination, Amendments and Supplements.

  
              
    (a)    Either Textron or TFC shall have the right
    to terminate this Agreement upon thirty (30) days' written notice to
    the other.

              
    (b)    This Agreement shall not be terminated
    pursuant to Section 8(a) above or supplemented or amended pursuant to
    Section 10(c) below, if TFC has any indebtedness for money borrowed
    outstanding (other than to Textron) under the terms of which such action
    would constitute a default, unless the holder of such indebtedness has
    consented to such action.

              
    (c)    This Agreement shall continue in effect
    until terminated as provided above.

  

          9.
   No Waiver.

          Except
as specifically provided elsewhere in this Agreement, Textron and TFC hereby
waive any failure or delay on the part of the other in asserting or enforcing
any right which it may have at any time under this Agreement

          10.
   Miscellaneous.

  
              
    (a)    This Agreement shall be binding upon, and
    shall inure to the benefit of, the parties hereto and their respective
    successors and assigns.

              
    (b)    This Agreement and all rights and
    obligations hereunder shall be governed by and construed and enforced in
    accordance with the laws of the State of Rhode Island.

              
    (c)    This Agreement may not be amended or
    supplemented except by an instrument in writing signed by the parties. All
    headings herein are for convenience of reference only and shall be
    disregarded in the interpretation hereof.

  

          IN
WITNESS WHEREOF, the parties hereto have caused this instrument to be duly
executed as of the day and year first above written.

 

	
      Attest:
	 	
      TEXTRON FINANCIAL CORPORATION

	 	 	 
	 	 	 
	
       

    	 	
      By:_______________________________

	 	 	 
	 	 	 
	 	 	 
	
      Attest:
	 	
      TEXTRON INC.

	 	 	 
	 	 	 
	
       

    	 	
      By:_______________________________

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