Document:

PLEASE PRINT THIS AGREEMENT AND COMPLETE THE NECESSARY INFORMATION.
     SIGN THE COMPLETED AGREEMENT AND FAX IT TO POWER2SHIP AT 561-998-7618.
If you have any comments or questions, please contact Customer Service toll-free
                               at 1-866-727-4995.

                                POWER2SHIP, INC.
                     MOTOR CARRIER TRANSPORTATION AGREEMENT

This Agreement is entered into this        day of          , 20     , by
                                   --------      ----------    -----
and between Power2Ship, Inc. an Application Service Provider (hereinafter
referred to as "ASP") a Nevada Corporation with its principal place of business
at 903 Clint Moore Road, Boca Raton, Florida 33487 and
                                                       --------------------
(hereinafter referred to as "CARRIER") with Tax Identification #
                                                                ---------------
with its principal place of business  is at
                                           --------------------------------
Phone:                FAX:               .
      ----------------    ---------------

Whereas, ASP, to satisfy some of its customers transportation needs, desires to
engage CARRIER to perform transportation within the limit of the CARRIER's
operating authority according to this Agreement terms and conditions and CARRIER
desires to perform such transportation.

Now, therefore in order to be legally bound the parties agree as follows:

1.1 INTERSTATE. CARRIER is a contract carrier which holds a permit from the
Department of Transportation - Federal Motor Carrier Safety Administration at
Docket  No.  MC-                ,  and  DOT  #                   and  CARRIER is
                ----------------              -------------------
authorized to and shall provide motor carrier contract service (hereinafter
called "Transportation Service") to meet the specific needs of ASP. CARRIER
agrees to provide to ASP a copy of CARRIER'S operating authority upon execution
of this Agreement. CARRIER agrees to notify ASP of any suspension, revocation,
or any other changes in its operating rights at least fifteen (15) days prior to
the effective date of any such suspension, revocation, or change. CARRIER
further represents and warrants that it does not have a conditional or
unsatisfactory safety rating issued from the United States Department of
Transportation.

1.2     INTRASTATE.  CARRIER is authorized to operate as a motor carrier for the
appropriate regulatory agencies for the states of
                                                 -----------------------------
at  Docket  Nos.                    which  authorize  CARRIER  to provide
                --------------------
Transportation  Service  within  the states of                      .  CARRIER
                                              ----------------------
agrees to provide to ASP a copy of CARRIER'S operating authority upon execution
of this Agreement. CARRIER agrees to notify ASP of any suspension, revocation,
or any other change in its operating rights at least fifteen (15) days prior to
the effective date of any such suspension, revocation, or change.

2.     PROPERTY  BROKER  LICENSE.  BROKER  is  a  licensed property broker which
holds authority from the Department of Transportation - Federal Motor Carrier
Safety Administration at Docket No. MC-467847.

3.1     SERVICE  OF CARRIER.  The Transportation Service shall be for the prompt
transportation of products tendered by ASP's customers to and from points and
places designated by ASP and ASP's customers, subject to the provisions of this
Agreement and the limitations of CARRIER'S operating authority. The
Transportation Service to be provided to ASP by CARRIER shall include the
following: (1) the procurement of necessary approvals, authorities or licenses
from all Governmental Agencies; (2) the provision of motor vehicles and allied
equipment (hereinafter called the "Vehicles"); (3) the maintenance of the
vehicles in accordance with the rules and regulations of the Federal Motor
Carrier Safety Administration; (4) the employment of drivers qualified pursuant
to the rules and regulations of the Federal Motor Carrier Safety Administration;
(5) compliance with all of ASP's customers safety program requirements; (6)
proper compliance with State and Federal safety regulations; (7) the safe,
proper, and legal load securement of all products tendered by ASP's customers to
CARRIER; (8) the dispatch of drivers and Vehicles; (9) timely delivery; and (10)
the procurement of all supplies.

<PAGE>

3.2     MINIMUM  TENDER.   There is no Minimum volume of freight contemplated by
this Agreement. ASP is not restricted against tendering its freight to other
carriers; CARRIER is not restricted against performing transportation for other
shippers.

3.3     STATUS  NOTIFICATION.  CARRIER  shall  transport  all  ASP's  customers
shipments without delay. Unless CARRIER is using the P2S GPS PDA data collection
device which updates information directly to the ASP while in transit, CARRIER
shall notify ASP as a minimum, verbally or electronically TWICE a day Monday
through Saturday.

4.     TERM  OF AGREEMENT.  The term of the Agreement shall be for one (1) year,
commencing as of the date first written above, and shall be deemed to be
automatically renewed from year to year thereafter, but can be terminated by
either party, without cause, by giving thirty (30) days' notice. ASP may also
terminate this agreement, by giving one (1) day's notice: (A) if CARRIER fails
to: (1) comply with the rules and regulations of the Federal Motor Carrier
Safety Administration; (2) maintain insurance consistent with Paragraph 21, and
(3) comply with substantial provisions of this agreement. Notice shall be sent
by Certified Mail, Return Receipt Requested, and addressed to the other party at
the address of said party as set forth in this agreement.

5.     RATES  AND  CHARGES.  The  parties  agree  the  rates and charges for the
contemplated  transportation  shall  be:
     5.1 On manually processed loads only those rates on the individual Rate
Confirmation Sheets, signed by each party prior to each shipment.
     5.2 When CARRIER has been granted access to the P2S electronic asset
management tool and CARRIER is classified as a MEMBER CARRIER, then their unused
CARRIER assets have CARRIER entered rates for the unused capacity, then that
CARRIER rate will be displayed to SHIPPER for their selection and when carrier
accepts the shipment tendered to them from an action item, then CARRIER is
confirming acceptance of the rate to perform the transportation transaction.

ASP will pay CARRIER the agreed amount within thirty days of ASP's receipt of
CARRIER's freight bill, bill of lading, clear delivery receipt, and any other
documents necessary to enable ASP to ascertain transportation has been properly
provided. Should CARRIER desire to accelerate the settlement of freight charges,
the use of the P2S GPS/PDA will enable them to do so for a service fee. CARRIER
agrees ASP, at its option, may offset against any payments owed to CARRIER
amounts CARRIER owes ASP.

6.     ASP AUDIT. ASP reserves the  right  to  continually  audit  CARRIER's
information for accuracy. If ASP discovers that CARRIER is imputing incorrect
information then ASP can terminate this contract immediately.

7.     CORRECTION OF A FREIGHT CHARGE.  If CARRIER does not agree with a freight
charge paid, CARRIER must notify ASP as to the correct amount of the freight
charge within ninety (90) days of receipt of payment, OTHERWISE, CARRIER, its
legal representatives, successors and assignees, shall have waived the right to
claim that any additional freight charge due from ASP or any other party. Both
parties agree that if the amount to be corrected is Five Dollars ($5.00) or
less, that the correction will not be necessary and no further action needs to
be taken to correct the amount.

8.     ASP BILLING OF FREIGHT  CHARGES  TO ITS CUSTOMERS.  ASP shall have the
exclusive right to bill all freight charges to its customers for shipments
handled pursuant to this Agreement. CARRIER shall not seek to collect from
Customer or any other party involved with the shipment.

<PAGE>

9.     BILL  OF LADING.  CARRIER shall sign a bill of lading or receipt for each
shipment tendered to it in the form required by ASP, an example attached, or
ASP's customer. If ASP and/or ASP's customer elects to use a bill of lading or
other form of freight receipt or contract for each shipment, any terms,
conditions, or provisions of such bill of lading or other form shall be subject
and subordinate to the terms of this Agreement. Any bill of lading or other form
inconsistent with the terms of this Agreement shall be null and void, and the
terms of this Agreement shall govern. Upon delivery of each shipment, CARRIER
shall obtain a signed delivery receipt from the consignee in a form acceptable
to ASP, setting forth the goods delivered, correct count, condition of such
goods and date and time of delivery. All such documents shall show the actual
consignor (Shipper) and Consignee (Receiver) and Freight Rate shall appear in
the "Bill To:" section and in the "Special Instructions" section as being
"SHIPPED UNDER CONTRACTOR AUTHORITY WITH ASP CUSTOMER."

10.     CONTRACT  CARRIAGE.  Regardless  of  whether  CARRIER  is  authorized to
operate or does operate as a Common Carrier, each and every shipment tendered to
CARRIER by ASP shall be deemed to be tendered to CARRIER as a motor Contract
Carrier and shall be subject only to the terms of this Agreement and the
provisions of law applicable to motor contract carriage. The CARRIER rules;
waivable statutory provisions under 49 USC 14101; and other documents which are
inconsistent with the terms of this contract are hereby expressly waived and
shall be null and void, and the terms of this contract shall govern.

11.     INDEPENDENT CONTRACTOR.  The relationship of CARRIER to ASP shall at all
times be that of an independent contractor and such status shall govern all
relations between CARRIER, ASP, and any third party.

12.     CARRIER'S LIABILITY FOR TRANSPORTATION SERVICE.  CARRIER does not have
the right to assign, allocate, or tender Power2Ship Customer's freight to a
third party that would in any way negate, eliminate, circumvent, or alleviate
CARRIER'S liability to ASP. CARRIER shall be responsible for all liabilities
incident to the Transportation Service rendered by CARRIER under this Agreement
including, but not limited to, all costs, expenses and liabilities incident to
or arising out of accidents, repairs of equipment, labor, fuel and insurance.

13.     REGULATIONS OF THE FEDERAL GOVERNMENT.  CARRIER must comply with all the
rules and regulations of the Federal Motor Carrier Safety Administration.

14.     CARRIER'S LIABILITY FOR FREIGHT LOSS OR DAMAGE. CARRIER shall be liable
for all loss and damage to the property which ASP arranges for CARRIER to
transport, and CARRIER hereby agrees to be liable for loss or damage to the
freight from the time CARRIER receives the freight until the time the freight is
delivered. CARRIER shall be liable to ASP and/or ASP's Customer for the full
actual loss, damage or injury.

15.     NOTICE OF CARGO CLAIM. In the event that CARRIER loses or damages all
or any part of a shipment consigned by ASP, CARRIER agrees to notify ASP at the
earliest date and time, and such notice shall be no later than twenty-four (24)
hours after CARRIER'S receipt of notice of loss or damage. CARRIER and ASP also
agree that CARRIER should promptly notify ASP as described above of any
conditional delivery receipt or of a refused delivery of all or any portion of a
shipment.

16.     FILING OF A CARGO CLAIM. A claim resulting from loss or damage of goods
will be filed in writing with CARRIER within nine (9) months of the delivery
date, and such a claim will contain sufficient facts to identify the involved
shipment and the amount of loss or damage. ASP agrees to provide CARRIER with
documentation in its possession or under its control which is reasonably
necessary.

<PAGE>

ASP shall be deemed to have filed such a claim in a timely manner in the event
of any of the following:

     a. by the mailing of a claim within the time limit; or

     b. by CARRIER'S knowing acceptance or sale of the goods in their damaged
condition.

A claim shall not be invalidated when ASP is unable to quantify the exact amount
of loss within nine (9) months.

17.     PAYMENT,  COMPROMISE, OR DISALLOWANCE OF A CARGO CLAIM.  ASP's cargo
claim against CARRIER shall either be paid, compromised, or disallowed within
One Hundred and Twenty (120) days of receipt by CARRIER, unless ASP has failed
to provide complete documentation. If ASP has provided complete documentation,
and CARRIER fails to pay, compromise or disallow a claim in One Hundred and
Twenty (120) days of receipt by CARRIER, then CARRIER shall be liable for
interest at the rate of one and one half percent (1-1/2%) per month on the
amount of the claim commencing at the end of said One Hundred and Twenty (120)
day  period,  and  such  interest  shall  continue  until the claim is resolved.

18.     FILING SUIT TO COLLECT A CARGO CLAIM.  The time limit for filing suit
against CARRIER for a loss or damage claim shall be two (2) years from the date
ASP receives a written disallowance from CARRIER which states a lawful reason
for declining to accept liability of a loss or damage.

If ASP is successful in recovering for loss, damage, or delay in a Court of law
or through Arbitration, it shall be entitled to recover reasonable attorney fees
in addition to other costs and interest accrued from the date of delivery or
scheduled delivery.

19.     INDEMNIFICATION. CARRIER shall defend, indemnify and hold harmless ASP
and ASP's Customer from and against any and all liability arising out of
CARRIER's act, omission, or negligence, as to the following:

     a.   All losses, damages, expenses, actions and claims for injury to or
          death of persons and damage to property arising out of or in
          connection with the load, handling, transportation, unloading or
          delivery of any shipments pursuant to this Agreement;

     b.   All losses, damages or expenses incurred by ASP and/or ASP's Customer
          from any breach by CARRIER of this Agreement;

     c.   All acts authorized by this Agreement, which are performed by CARRIER,
          its agents, employees or helpers, including but not limited to,
          criminal acts, gross negligence, and intentional or negligent conduct
          in violation of federal, state or local governmental laws, rules or
          regulations.

20.     CARRIER'S  UNLAWFUL RETENTION OF CARGO. CARRIER agrees that it will not
seize or assume control of products tendered by ASP and/or ASP's Customer.
CARRIER waives and releases all liens which it might otherwise have to any of
ASP's Customer's freight in its possession.

21.     INSURANCE. CARRIER shall maintain at its own cost, at all times during
the life of this Agreement, a policy for liability insurance in an amount not
less than Seven Hundred and Fifty Thousand dollars ($750,000) or such higher
insurance coverage as may be required by law, which policy shall provide
coverage for public liability, property damage, environmental restoration, and
injury or death to persons resulting from the performance of the Transportation
Service. CARRIER shall also maintain at its own cost, at all times during the
life of this Agreement, a policy for cargo liability insurance in an amount not
less than One Hundred Thousand dollars ($100,000) or such higher insurance
coverage as may be required by law or by ASP from time to time. These insurance
policies providing the above coverage shall be written by a reputable insurance
company. These policies shall also provide that the Insurance Company issuing
such policies shall notify both the CARRIER and ASP of its intention to cancel
any policy at least ten (10) days prior to the effective date of cancellation.
CARRIER shall furnish ASP with a Certificate or Certificates of Insurance
designating ASP as an Additional Insured.

<PAGE>

22.     HAZARDOUS MATERIAL TRANSPORTATION. For any shipment arranged by ASP to
be transported by CARRIER involving transportation of hazardous materials or
waste requiring vehicle placarding under 49 CFR Part 172, the parties agree to
the following provisions shall apply, in addition to provisions in the this
Agreement:

     a.   CARRIER also represent and warrants it holds all Federal and/or State
          permits and registrations necessary to transport the hazardous
          materials or waste, and CARRIER shall provide ASP copies of all
          appropriate documents upon ASP's request.

     b.   CARRIER shall immediately notify ASP of (1) any revocation or
          suspension of the permits and registrations in (a) above and (2) any
          change in CARRIER's "satisfactory" USDOT safety rating. CARRIER
          acknowledges a "satisfactory" USDOT safety rating is a prerequisite to
          transporting hazardous materials or waste under this Agreement.

     c.   CARRIER also represents and warrants all CARRIER's drivers
          transporting hazardous materials or waste (1) are properly trained
          under Federal and State Laws, including, as example, 49 CFR 172.700
          and 177.800, and (2) have the proper endorsements on their Commercial
          Driver's License to transport such shipment.

     d.   CARRIER shall comply with all Federal, State and Local Laws regarding
          the transportation of hazardous materials or waste, including, as
          example 49 CFR 172 and 397.

     e.   If CARRIER is requested to transport hazardous materials or waste for
          which CARRIER must maintain Five Million Dollars ($5,000,000)
          liability coverage under 49 CFR 387.9, CARRIER shall procure and
          maintain, at its sole expense, public liability and property damage
          insurance from a reputable and financially responsible insurance
          company insuring CARRIER for at least Five Million per occurrence.
          Such insurance shall name ASP as insured's for any and all liabilities
          for personal injuries (including death) and property damage, including
          environmental damage due to the release of a hazardous substance,
          arising out of or in any way related to CARRIER's transportation.

23.     CONFIDENTIALITY. CARRIER acknowledges that his position as CARRIER for
ASP gives him access to special knowledge of ASP's organization and business
methods which could be harmful to ASP if used for any purpose other than the
promotion of ASP's business as provided in this Agreement. CARRIER agrees that
during the term of this Agreement that CARRIER will not communicate with any of
ASP's customers. CARRIER agrees that in the event of any breach of the covenants
contained in this paragraph ASP will be entitled, in addition to any other
rights and remedies, to an injunction or restraining order restraining CARRIER
from committing or continuing to commit any breach of these provisions, and
CARRIER hereby consents to the issuance of such injunction or restraining order
or other equitable relief without bond or other security and without the
necessity of actual damage to ASP.

<PAGE>

24.     COVENANT NOT TO COMPETE. CARRIER agrees not to directly solicit freight
from ASP's Customers that it hauled freight for as a result of the efforts of
ASP under this Agreement for a period of three (3) years after termination of
this Agreement. Should CARRIER breach the provision in this paragraph, it is
understood between the parties that damages to ASP would be hard to calculate.
Therefore, the parties have stipulated and agreed that should CARRIER breach the
above provision, that the ASP will be entitled to the following:

     a.   ASP will be entitled, in addition to any other rights and remedies, to
          an injunction or restraining order restraining CARRIER from committing
          or continuing to commit any breach of these provisions, and CARRIER
          hereby consents to the issuance of such injunction or restraining
          order or other equitable relief without bond or other security and
          without the necessity of actual damage to ASP.

     b.   CARRIER shall pay ASP a commission of fifteen percent (15%) of the
          transportation or revenue received on the movement of traffic.

25.     ENTIRE  AGREEMENT.  This Agreement constitutes the entire contract
between the parties. This Agreement shall not be modified or changed by any
express or implied promises, warranties, guarantees, representations or other
information unless expressly and specifically set forth in the Agreement or an
Addendum properly executed by the parties.

It is agreed that there are no oral representations, agreements, or
understandings affecting this instrument and that any future representation,
agreements, understandings or waivers to be binding upon the parties hereto,
must be reduced to writing. Either party's failure strictly to enforce any
provisions of this Agreement shall not be construed as a waiver or modification
thereof excusing the other party from performance.

If any provision of this Agreement is found to be unlawful or unenforceable for
any reason, such provision shall be severable from this Agreement, and all other
provisions shall be binding upon the parties and shall remain in effect.

26.     JURISDICTION. This Agreement shall be deemed to have been drawn under
Florida Law and this Agreement shall be construed in accordance with the laws of
the State of Florida. If there is a dispute, any legal action must be brought in
Florida and Florida's laws shall apply, without regard to its conflict of laws
rules.

27.     NOTICES.  Notices shall be sent by registered mail, return receipt
requested, to each party at the address shown above, or to such other addresses
as shall have been designated in writing.

In Witness Whereof, the parties hereto have caused this Agreement to be executed
in their respective names by their duly authorized representatives as of the
date first above written.

ASP:  Power2Ship,  INC.:

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

CARRIER:

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

<PAGE>Exhibit 4a

	 EXHIBIT 4a	 	 EXECUTION COPY

AMENDMENT NO. 3 TO

REVOLVING CREDIT AGREEMENT

 

    This AMENDMENT NO. 3 TO REVOLVING CREDIT AGREEMENT (this “Amendment”) is made and dated as of September 30, 2004, by and among (a) Kaman Corporation (the “Company”), (b) the undersigned Banks, and (c) The Bank of Nova Scotia (“Scotiabank”) and Fleet National Bank (“Fleet”) as the Co-Administrative Agents for the Banks. Unless otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement are used herein as therein defined.

    

    WHEREAS, the Company, the Banks and the Co-Administrative Agents and certain other parties have entered into that Revolving Credit Agreement, dated as of November 13, 2000 (as amended by Amendment No. 1 to Revolving Credit Agreement, dated as of June 28, 2002, Amendment No. 2 to Revolving Credit Agreement, dated as of September 12, 2003, and as further amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Banks have made, and have committed to make, Loans and other credit extensions to the Company on the terms set forth therein; and

 

    WHEREAS, the Company has requested that the Banks amend the Credit Agreement and the Majority Banks, on the terms and subject to the conditions set forth below, have agreed to amend the Credit Agreement;

 

    NOW, THEREFORE, in consideration of the foregoing premises, the Company, the undersigned Majority Banks and the Co-Administrative Agents agree as follows:

 

    §1.    Amendments to the Credit Agreement.  

 

        (a)    Section 4.1(a) and (b) of the Credit Agreement are hereby amended and restated in their entirety as follows:

 

         “(a) within (i) thirty (30) days after the close of each calendar month, (ii) sixty (60) days after the close of each of the first three quarters of each fiscal year of the Company and (iii) within one hundred twenty (120) days after the close of each fiscal year of the Company, the consolidated and consolidating balance sheets of the Company and its Subsidiaries as of the close of each such period and consolidated and consolidating statements of income, cash flows and shareholders’ equity for such period, prepared in conformity with GAAP, applied on a basis consistent with that of the preceding period or containing disclosure of the effect on financial position or results of operations of any change in the application of GAAP during the period, and certified by the president or a principal financial officer of the Company as accurate, true and correct in all material respects; (b) together with each such balance sheet referred to in clause (a)(ii) and (iii) above, a Compliance Certificate substantially in the form of Exhibit G attached thereto; (which Compliance Certificate shall contain written calculations by the Company in reasonable detail concerning compliance or non-compliance, as the case may be, by the Company with the financial covenants referred to herein);”

 

       (b)    Section 5.1(e) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

           “(e)    any other Liens at any time on assets owned by the Company or any of its Subsidiaries which, in the aggregate, do not secure Indebtedness in excess of $15,000,000; and”

 

        (c)    Article VI is amended by adding the following new Section 6.3 thereto as follows:

 

        “Section 6.3. Accounts Receivable and Inventory to Debt Ratio. At any time that the Company’s Adjusted Fixed Charge Coverage Ratio does not exceed 6.00 to 1.00, cause or permit the ratio of (a) the aggregate amount of (i) the Applicable Kaman Entities’ Eligible Accounts for which invoices have been issued and are payable plus (ii) the Eligible Inventory of the Applicable Kaman Entities, in each case calculated as at the end of the most recently completed fiscal quarter of the Company, to (b) the Company’s Consolidated Total Indebtedness as at the end of any fiscal quarter, to be less than 1.60 to 1.0.

 

  (d)    Section 9.2 of the Credit Agreement is hereby amended as follows:

 

       (i)    by amending and restating the definition of  “EBITDA” in its entirety as follows:

 

                     ““EBITDA” shall mean the consolidated operating earnings of the Company and its Subsidiaries for any fiscal period, after all expenses and other proper charges but before the payment or provision for any income taxes, interest expense, special items such as gains or losses on sales of assets, extraordinary or special items reported net of taxes, depreciation or amortization, and all other items reported as non-operating income for such period, in each case without duplication, and all determined in accordance with GAAP; provided that, notwithstanding the foregoing, EBITDA for any period shall be increased by Permitted 2004 Restructuring Charges, to the extent such Permitted 2004 Restructuring Charges were deducted in determining consolidated operating earnings of the Company and its Subsidiaries for such period.”

 

          (ii)    by adding the following new definitions in the appropriate alphabetical location:

 

                ““Accounts Receivable” shall mean all rights of any Applicable Kaman Entity to payment for goods sold, leased or otherwise marketed in the ordinary course of business and all rights of any Applicable Kaman Entity to payment for services rendered in the ordinary course of business and all sums of money or other proceeds due thereon pursuant to transactions with account debtors, except for that portion of the sum of money or other proceeds due thereon that relate to sales, use or property taxes in conjunction with such transactions, recorded on books of account in accordance with GAAP.”

““Adjusted Fixed Charge Coverage Ratio” shall mean the ratio of (a) the Company’s EBITDA (without adding back the Permitted 2004 Restructuring Charge as permitted by the proviso contained in the definition of EBITDA) for the four (4) most recently completed fiscal quarters of the Company, to (b) the aggregate consolidated interest expense on borrowed money (including the Obligations) (net of cash income from investments) of the Company and its Subsidiaries for such four fiscal quarters.”

““Applicable Kaman Entities” shall mean the Company and its Industrial Distribution and Music segments, and elements of the Aerospace segment, including Kamatics Corporation, RWG Frankejura Industrie Flugwerklager GmbH, Plastics Fabricating Company, Inc., Kaman Dayron, Inc., and Kaman Aerospace Corporation’s Fuzing and Measurement and Memory operations (the aforementioned segments being the Company’s operating segments identified pursuant to Statement of Financial Accounting Standards No. 131).”

“Eligible Accounts” shall mean the aggregate of the unpaid portions of Accounts Receivable (net of any credits, rebates, offsets, holdbacks or other adjustments or commissions payable to third parties that are adjustments to such Accounts Receivable) (a) that the Company reasonably and in good faith determines to be collectible and (b) that are with account debtors or other obligors that (i) are not affiliates of any Applicable Kaman Entity, (ii) purchased the goods or services giving rise to the relevant Account Receivable in an arm's length transaction and (iii) are not known by such Applicable Kaman Entities to be insolvent or involved in any case or proceeding, whether voluntary or involuntary, under any bankruptcy, reorganization, arrangement, insolvency, adjustment of debt, dissolution, liquidation or similar law of any jurisdiction.”

““Eligible Inventory” shall mean the net book value (determined by the average costing method and at lower of cost or market) of finished goods, work in progress and raw materials and component parts inventory owned by any Applicable Kaman Entity; provided that Eligible Inventory shall not include any inventory (a) held on consignment, or not otherwise owned by any such Applicable Kaman Entity, or of a type no longer sold by any such Applicable Kaman Entity or (b) which is damaged, obsolete or not marketable.”

““Permitted 2004 Restructuring Charges” shall mean all non-cash sales and pre-tax charges against earnings taken by the Company, in accordance with GAAP, for the fiscal quarter ending September 30, 2004, in respect of write-offs of accounts receivable and capitalized development and other start-up costs relating to development and production of helicopter fuselages and rotor blades for MD Helicopters, Inc., such charges not to exceed, in the aggregate, $21,000,000.

 

        (e)    Exhibit G of the Credit Agreement (Form of Compliance Certificate) is hereby amended and restated in its entirety to read as set forth on Annex A hereto.

 

    §2.    Representation and Warranties. The Company represents and warrants to each of the Banks and the Co-Administrative Agents as follows:

 

            (a)    The representations and warranties of the Company contained in the Credit Agreement (i) were true and correct in all material respects when made and (ii) shall be true and correct in all material respects on and as of the Effective Date.

 

            (b)    The execution and delivery by the Company of this Amendment and the performance by the Company of its agreements and obligations under this Amendment are within its corporate authority, have been duly authorized by all necessary corporate action. Such execution, delivery, and performance by the Company, do not and will not (a) contravene any provision of the Company’s Governing Documents, (b) conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under or result in the creation of any Lien upon any of the property of the Company, under any agreement, trust, deed, indenture, mortgage or other instrument to which the Company is a party or by which the Company or any of its properties are bound or affected, or (c) require any waiver, consent or approval by any creditors, shareholders, or public authorit

 

            (c)    This Amendment and the Credit Agreement, as amended hereby, constitutes the legal, valid and binding obligations of the Company, enforceable in accordance with their respective terms, except as enforcement may be limited by principles of equity, bankruptcy, insolvency, or other laws affecting the enforcement of creditors’ rights generally.

 

        (d)    After giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

     §3.    Condition to Effectiveness.  This Amendment shall become effective as of the date hereof (the “Effective Date”) subject to satisfaction of the following conditions precedent:

(a)    Amendment Agreement. This Amendment shall have been duly authorized, executed and delivered to the Administrator by the Company and each of the Majority Banks.

 (b)    Guarantor Consent. Each of the Obligors (other than the Company) shall have duly authorized, executed and delivered to the Administrator its consent to this Amendment, in form and substance satisfactory to the Administrator.

  (c)    Amendment Fee. The Company shall have paid to the Administrator, for the account of each Bank who executes and delivers this Amendment to the Administrator on or prior to 5:00 p.m. Boston, Massachusetts time, October 15, 2004, a non-refundable amendment fee equal to .005% of the sum of such Bank's outstanding Revolver A Commitment. 

 (d)    Officer's Certificate. The Administrator shall have received from the Company a certificate, dated the Effective Date, of its Secretary as to:

 (i)  resolutions of its Board of Directors then in full force and effect authorizing the execution, delivery and performance of the Amendment;

 (ii)  the incumbency and signatures of the officers of the Company authorized to act with respect to the Amendment; and

 (iii)  any amendments to the Governing Documents of the Company since such Governing Documents were last certified to the Co-Administrative Agents.

Such certificate shall be in form and substance satisfactory to the Administrator.

 (e)    Opinion of Counsel. The Administrator shall have received an opinion addressed to the Banks, the Administrator and each of the Co-Administrative Agents from Candace A. Clark, Esq., counsel for the Company, dated the Effective Date and accompanied by such supporting documents as either of the Co-Administrative Agents may reasonably require, in form and substance satisfactory to the Administrator.

 (f)    Fees and Expenses. The Company shall have paid all reasonable out-of-pocket costs and expenses incurred by the Co-Administrative Agents in connection with the preparation, negotiation, execution and delivery of this Amendment and the implementation of the transactions contemplated hereby, including, but not limited to, the reasonable fees and expenses of Bingham McCutchen LLP and such other costs and expenses as are otherwise required to be paid under the Credit Agreement.

 

§4.     Miscellaneous.  From and after the date hereof, this Amendment shall be deemed a Credit Document for all purposes of the Credit Agreement and the other Credit Documents and each reference to Credit Documents in the Credit Agreement and the other Credit Documents shall be deemed to include this Amendment. Except as expressly provided herein, this Amendment shall not, by implication or otherwise, limit, impair, constitute a waiver of or otherwise affect any rights or remedies of the Co-Administrative Agents or the Banks under the Credit Agreement or the other Credit Documents, nor alter, modify, amend or in any way affect any of the obligations or covenants contained in the Credit Agreement or any of the other Credit Documents, all of which are ratified and confirmed in all respects and shall continue in full force and effect. 

 

§5.    Counterparts.  This Amendment may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. Delivery of an executed counterpart of a signature page by facsimile transmission shall be effective as delivery of a manually executed counterpart of this Amendment. In making proof of this Amendment, it shall not be necessary to produce or account for more than one such counterpart.

 

§6.    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CONNECTICUT (WITHOUT REFERENCE TO CONFLICT OF LAWS).

[Remainder of Page Intentionally Left Blank]

	  
		Page 1	
	

	 

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as a sealed instrument as of the date first set forth above.

	 	 	 
	 	KAMAN CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Executive Vice President and Chief Financial Officer

 

		 	 
	 	THE BANK OF NOVA SCOTIA,
	 	 as a Co-Administrative Agent
	 
 	 
 	 
 
		By:  	/s/  Todd Meller
	 	

	 	Name:  Todd Meller
	 	Title:    Managing Director
	 

		 	 
	 	FLEET NATIONAL BANK,
	 	as a Co-Administrative Agent and the Administrator
	 
 	 
 	 
 
		By:  	/s/  Kenneth S. Struglia
	 	

	 	Name:  Kenneth S. Struglia
	 	Title:    Director
	 

   

	 	BANKS

 

		 	 
	 	THE BANK OF NOVA SCOTIA,
	 	 as a Bank and as an Issuer
	 
 	 
 	 
 
		By:  	/s/  Todd Meller
	 	

	 	Name:  Todd Meller
	 	Title:    Managing Director
	 

		 	 
	 	FLEET NATIONAL BANK
	 
 	 
 	 
 
		By:  	/s/  Kenneth S. Struglia
	 	

	 	Name:  Kenneth S. Struglia
	 	Title:    Director
	 

 

		 	 
	 	
CITIZENS BANK OF MASSACHUSETTS

	 
 	 
 	 
 
		By:  	/s/  Daniel G. Eastman
	 	

	 	Name:  Daniel G. Eastman
	 	Title:    Senior Vice President
	 

		 	 
	 	WEBSTER BANK
	 
 	 
 	 
 
		By:  	/s/  Peter F. Samson
	 	

	 	Name:  Peter F. Samson
	 	Title:    Vice President
	 

		 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
 	 
 	 
 
		By:  	/s/  Robert Sevin
	 	

	 	Name:  Robert Sevin
	 	Title:    Director
	 

		 	 
	 	JPMORGAN CHASE BANK
	 
 	 
 	 
 
		By:  	/s/  Peter M. Killea
	 	

	 	Name:  Peter M. Killea
	 	Title:    Vice President
	 

 

		 	 
	 	MELLON BANK, N.A.
	 
 	 
 	 
 
		By:  	/s/  William M. Feathers
	 	

	 	Name:  William M. Feathers
	 	Title:    Vice President
	 

 

		 	 
	 	KEYBANK NATIONAL ASSOCIATION
	 
 	 
 	 
 
		By:  	/s/  Suzannah Harris
	 	

	 	Name:  Suzannah Harris
	 	Title:    Asst. Vice President
	 

 

	 
		Page 2	
	

	 

CONSENT OF GUARANTORS

 Each of the undersigned hereby acknowledges and consents to Amendment No. 3 to Revolving Credit Agreement, dated as of September 30, 2004, and agrees that each of the Subsidiary Guarantees, dated as of November 13, 2000, executed by such Person in favor of each of the Bank Parties (as defined therein), and all of the other Credit Documents to which such Person is a party remain in full force and effect, and such Person confirms and ratifies all of its obligations thereunder.

		 	 
	 	KAMAN AEROSPACE GROUP, INC. 
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

 

		 	 
	 	KAMAN INDUSTRIAL TECHNOLOGIES CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

 

		 	 
	 	KAMAN MUSIC CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

		 	 
	 	KAMAN AEROSPACE CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

		 	 
	 	KAMAN AEROSPACE INTERNATIONAL CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

		 	 
	 	KAMATICS CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

		 	 
	 	KAMAN X CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

		 	 
	 	KMI EUROPE, INC.
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

		 	 
	 	K-MAX CORPORATION
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

 

		 	 
	 	KAMAN PLASTICFAB GROUP, INC.
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

		 	 
	 	PLASTIC FABRICATING COMPANY, INC.
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

 

		 	 
	 	KAMAN DAYRON, INC.
	 
 	 
 	 
 
		By:  	/s/  Robert M. Garneau
	 	

	 	Name:  Robert M. Garneau
	 	Title:    Vice President and Treasurer
	 

	  
		Page 3	
	

	 

	 	 	 Annex A

		Page 4	
	

	 

EXHIBIT G

KAMAN CORPORATION

FORM OF COMPLIANCE CERTIFICATE

 The undersigned, ____________, hereby certifies that s/he is the duly elected, qualified and acting  _______________ of Kaman Corporation (the “Company”), a Connecticut corporation, and as such officer, s/he is familiar with the terms, covenants and conditions of the Revolving Credit Agreement, dated as of November 13, 2000 (together with all amendments and other modifications, if any, from time to time thereafter made thereto, the “Credit Agreement”), among the Company, the various financial institutions as are or may from time to time become parties thereto (individually a “Bank” and collectively the “Banks”), The Bank of Nova Scotia (“Scotiabank”) and Fleet National Bank (“Fleet”), as the co-administrative agents (each a “Co-Administrative Agent” collectively, the “Co-Administrative Agents”), and Bank One Corporation as documentation agent (the “Documentation Agent”). All terms not specifically defined herein shall have the definitions ascribed in the Credit Agreement.

This is to certify that, as of the date hereof (i) the company has complied, and shall be in compliance, with all terms, covenants and conditions of the Credit Agreement as required thereby; (ii) there exists no Default or Event of Default; and (iii) the representations and warranties set forth in Article II of the Credit Agreement are true and correct with the same effect as though such representations had been made as of the date of this Certificate.

The computations which produced the figures contained in this Compliance Certificate are set forth on Annex A hereto.

Without limiting the generality of the foregoing, the Company certifies specifically as follows as of [insert last day of most recently ended fiscal quarter]:

	  
		Page 5	
	

	 

	
Section of
Credit Agreement
	 	 	
 

Dollars in Thousands)

	 	 	 	
Requirement or Ceiling

 
	 	
Actual

 

	
5.1(e)

 
	
Liens not to secure

Indebtedness in excess of $15,000,000

 
	 	
$15,000,000

 
	 	
$ ____________

 

	
5.6(b)(i)

 
	
Sale of Assets pursuant to Section 5.6 (b) for this fiscal year through the date of this certificate

 
	 	
$ ____________

(figure represents 15% of Company’s Consolidated Tangible Assets as calculated pursuant to Section 5.6)

 
	 	
$ ___________

 

	
5.6(b)(ii)

 
	
Sale of Assets pursuant to Section 5.6 (b) through the date of this certificate since Effective Date

 
	 	
$ ____________

(figure represents 45% of Company’s Consolidated Tangible Assets as calculated pursuant to Section 5.6)

 
	 	
$ ___________

 

	
6.1

 
	
Fixed Charge Coverage Ratio

 
	 	
3.00:1.0 for the four (4) most recently completed fiscal quarters of the Company

 
	 	
__:1.0

 

	
6.2

 
	
Consolidated Total Indebtedness as a percentage of Total Capitalization

 
	 	
55%

 
	 	
     %

 

	
6.3

 
	
Accounts Receivable and Inventory to Debt Ratio (Only tested when Adjusted Fixed Charge Coverage Ratio is less than 6.0:1.0)

 
	 	
1.60:1.0 as at the end of the most recently completed fiscal quarter of the Company

 
	 	
__:1.0

 

 

KAMAN CORPORATION

Dated: [date of delivery

of Certificate]

By: _________________________________________

Name:

Title:

	 
		Page 6	
	

	 

Annex A

	
A.  5.6: Sale of Assets

    (i)  Applicable Percentage:

        (a)    The aggregate book value of all tangible assets sold (as determined at the time of such sale) divided by the Consolidated Tangible Assets as of the most recently completed fiscal quarter at the time of such asset sale:
	 	
$ ____________

	
    (ii)  Aggregate Percentage:

        The sum of all Applicable Percentages:

        (a)   For the current fiscal year - not to exceed 15%, and therefore the Company [was] (was not] in compliance with Section 5.6:
	 	
____________%

	
        (b)   Since the Effective Date - not to exceed 45%, and therefore the Company [was] [was not] in compliance with Section 5.6:
	 	
____________%

	
   (iii)  Designated Percentage:

Either of:

(a) 15%, for any fiscal year; or

        (b) not to exceed a cumulative aggregate percentage of 45% since the Effective Date:
	 	
[15%]

[45%]

	
    (iv)  Reduction Amount:

      An amount equal to:

        (a)    if Item (iii) (a) above applies, the book value of all asset sales during the current fiscal year less 15% of the Consolidated Tangible Assets as of the most recently completed fiscal quarter less any Total Revolver A Commitment reduction and Total Revolver B Commitment reduction during such current fiscal year; or
	 	
$ ____________

	  
		Page 7	
	

 

	
        (b)   if Item (iii) (b) above applies, the book value of all asset sales during the current fiscal year less any Total Revolver A Commitment reduction and Total Revolver B Commitment reduction during such current fiscal year:
	 	
$ ____________

	
B.  Consolidated Net Worth

    (i)    consolidated shareholders, equity:
	 	
$ ____________

	
    (ii)    Qualifying Preferred Stock:
	 	
$ ____________

	
    (iii)    Consolidated Net Worth (Item (i) plus Item (ii)):
	 	
$ ____________

	
C.  6.1: Fixed Charge Coverage Ratio

    (i)    EBITDA for the four (4) most recently completed fiscal quarters of Company:
	 	
$ ____________

	
    (ii)   aggregate consolidated interest expense on borrowed money (including the Obligations) (net of cash income from Investments) for the four (4) most recently completed fiscal quarters of the Company:
	 	
$ ____________

	
    (iii)    Fixed Charge Coverage Ratio (ratio of Item (i) to Item (ii) ): *
	 	
__:1.0

	
D.  6.2: Consolidated Total Indebtedness to Total Capitalization

    (i)    Consolidated Total Indebtedness:
	 	
$ ____________

	
    (ii)    Consolidated Net Worth (see Item (iii) from Section B above):
	 	
$ ____________

	
    (iii)    Total Capitalization (Item (i) plus Item (ii)):
	 	
$ ____________

	
    (iv)    Item (i) divided by Item (iii): **
	 	
    %

	
E.  6.3: Accounts Receivable and Inventory to Debt Ratio

    (i)     Eligible Accounts:
	 	
$ ____________

	
    (ii)    Eligible Inventory
	 	
$ ____________

	
    (iii)   sum of (i) and (ii)  
	 	
$ ____________

	
    (iv)    Consolidated Total Indebtedness:
	 	
$ ____________

	
    (v)    Account Receivable and Inventory to Debt Ratio (ratio of Item (iii) to Item (iv)): ***
	 	
__:1.0

 

* Section 6.1 of the Credit Agreement requires the Fixed Charge Coverage Ratio to be greater than or equal to 3.00:1.0.

 

** Section 6.2 of the Credit Agreement requires the Company’s Consolidated Total Indebtedness to be less than or equal to 55% of its Total Capitalization

 

*** Section 6.3 of the Credit Agreement requires the Account Receivable and Inventory to Debt Ratio to be greater than or equal to 1.60:1.0. This Section is only tested during periods when Adjusted Fixed Charge Coverage Ratio is less than 6.0:1.0.

		Page 8

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