Document:

Exhibit 10.10

    AGREEMENT made February 25, 2005 effective as of the 1st day of April 2005
by and between TRANS-LUX CORPORATION, a Delaware corporation having an office at
110 Richards Avenue, Norwalk, CT 06856-5090 (hereinafter called "Employer"), and
MATTHEW BRANDT residing at 2222 North Beachwood Drive, Apartment 413, Los
Angeles, CA 90068 (hereinafter called, "Employee").

                              W I T N E S S E T H:

    1.  Employer hereby employs Employee, and Employee hereby accepts
employment, upon the terms and conditions hereinafter set forth.

    2.  (a) The term ("Term") of the Agreement shall be the period commencing on
April 1, 2005 and terminating March 31, 2009.

        (b) In the event that Employee remains or continues in the employ of
Employer after the Term, such employment, in the absence of a further written
agreement, shall be on an at-will basis, terminable by either party hereto on
thirty (30) days' notice to the other and, upon the 30th day following such
notice, the employment of Employee shall terminate.

        (c) Upon expiration of the Term of this Agreement, neither party shall
have any further obligations or liabilities to the other except as otherwise
specifically provided in this Agreement.

    3.  Employee shall be employed in an executive capacity of Employer (and
such of its affiliates, divisions and subsidiaries as Employer shall designate).
Employer shall use its best efforts to cause Employee to be elected and continue
to be elected Executive Vice President of Employer, Vice Chairman of the
Executive Committee of the Board and President of the Theatre Division during
the Term of this Agreement.  The precise services of Employee may be designated
or assigned from time to time at the direction of the Board of Directors, the
Chairman of the Board, and the Vice-Chairman of the Board, provided, however,
that the duties assigned shall be of a character and dignity appropriate to a
senior executive of a corporation and consistent with Employee's background,
education and experience, and all of the services to be rendered hereunder by
Employee shall at all times be subject to the control, direction and supervision
of the Board of Directors of Employer, to which Employee does hereby agree to be
bound.  Employee shall devote his entire time, attention and energies during
usual business hours (subject to Employer's policy with respect to vacations,
holidays and illnesses for comparable executives of Employer) to the business
and affairs of Employer, its affiliates, divisions and subsidiaries, as Employer
shall from time to time direct.  Employee further agrees during the Term of this
Agreement to serve as an officer or director of Employer or of any affiliate or
subsidiary of Employer as Employer may request, and if Employee serves as such
officer or a director he will do so without additional compensation, other than
director's fees or honoraria, if any; and $5,000.00 per annum if elected Vice
Chairman of the Executive Committee or such other amount as determined by the
Compensation Committee and Board of Directors in fixing fees for Committee
Chairpersons.  Employee has been nominated as a director of Employer for
re-election at Employer's 2005 Annual Meeting of Stockholders, but Employer
cannot guaranty that Employee will be so elected by the stockholders, and the
failure of Employee to be so re-elected as director of Employer shall not
constitute breach of this Agreement.  Employer agrees that during the Term of
this Agreement Employee's principal office of employment shall be within a sixty
(60) mile radius of Los Angeles, San Diego or Santa Barbara, California, Santa
Fe, New Mexico or Norwalk, Connecticut.

        During the Term of this Agreement and during any subsequent employment
of Employee by Employer, Employee shall use his best efforts, skills and
abilities in the performance of his services hereunder and to promote the
interests of Employer, its affiliates, divisions and subsidiaries.  Employee
shall not, during the Term and during any subsequent employment of Employee by
Employer, be engaged in any other business activity, whether or not such
business activity is pursued for gain, profit or other pecuniary advantage
except Employee may engage in non-competitive business activities which do not
interfere with his duties or availability hereunder and are of a part-time
nature.  The foregoing shall not be construed as preventing Employee from
investing his assets in such form or manner as will not require any services on
the part of Employee in the operation of the affairs of the companies in which
such investments are made, provided, however, that Employee shall not, either
directly or indirectly, be a director of or make any investments in any company
or companies which are engaged in businesses competitive with those conducted by
Employer or by any of its subsidiaries or affiliates except where such
investments are in stock of a company listed on a national securities exchange,
and such stock of Employee does not exceed one percent (1%) of the outstanding
shares of stock of such listed company.

        Employee shall not at any time during or after the Term of this
Agreement use (except on behalf of Employer), divulge, furnish or make
accessible to any third person or organization any confidential information
concerning Employer or any of its subsidiaries or affiliates or the businesses
of any of the foregoing including, without limitation, confidential methods of
operations and organization, confidential sources of supply, identity of
employees, customer lists and confidential financial information.  In addition,
Employee agrees that all lists, materials, books, files, reports,
correspondence, records and other documents and information ("Employer
Materials") used, prepared or made available to Employee, shall be and shall
remain the property of Employer.  Upon the termination of employment of Employee
or the expiration of this Agreement, whichever is earlier, all Employer
Materials shall be immediately returned to Trans-Lux Corporation, and Employee
shall not make or retain any copies thereof, nor disclose or otherwise use any
information relating to said Employer Materials to any other party.  As used
herein the term Employer shall include Employer, Employer's subsidiaries and
affiliates, and any individuals employed or formerly employed by any of them.

    4.  (a) For all services rendered by Employee during the Term of this
Agreement, Employer shall pay Employee a salary at the rate of ONE HUNDRED
NINETY-FIVE THOUSAND DOLLARS ($195,000) per annum during the period April 1,
2005 to March 31, 2006, at the rate of TWO HUNDRED FIVE THOUSAND DOLLARS
($205,000) per annum during the period April 1, 2006 to March 31, 2007, at the
rate of TWO HUNDRED TWENTY THOUSAND DOLLARS ($220,000) per annum during the
period April 1, 2007 to March 31, 2008 and at the rate of TWO HUNDRED THIRTY
THOUSAND DOLLARS ($230,000) per annum during the period April 1, 2008 to March
31, 2009.  Such salary shall be payable weekly, or monthly, or in accordance
with the payroll practices of Employer for its executives.  The Employee shall
also be entitled to all rights and benefits for which he shall be eligible under
any stock option plan, bonus, participation or extra compensation plans,
pensions, group insurance or other benefits which Employer presently provides,
or may provide for him and for its employees generally.

        This Agreement shall not be deemed abrogated or terminated if Employer,
in its discretion, shall determine to increase the compensation of Employee for
any period of time, or if the Employee shall accept such increase.  In addition
to the group insurance set forth herein, Employer also agrees consider providing
Employee with additional life insurance if Employee begets or adopts children.
The Employer shall transfer any transferable policy to Employee on his
retirement or termination of this Agreement by either party without cause.  All
payments under this Agreement are in United States dollars unless otherwise
specified.

        (b) Employer may make appropriate deductions from the said payments
required to be made in this Section 4 to Employee to comply with all
governmental withholding requirements.

        (c) If, during the Term of this Agreement and if the Employee is still
in the employ of Employer, Employee shall be prevented from performing or be
unable to perform, or fail to perform, his duties by reason of illness or any
other incapacity for four (4) consecutive months (excluding normal vacation
time) during the Term hereof, Employer agrees to pay Employee thereafter during
the Term for the duration of such incapacity or 24 months, whichever is greater,
50% of the base salary which Employee would otherwise have been entitled to
receive if not for the illness or other incapacity; provided, however, if such
incapacity ceases following the end of the Term, then any such payments shall
cease.  Notwithstanding the foregoing, to the extent such 24 month period
continues after the end of the Term and Employee is entitled to payments under
Section 7, then the payment under this Section 4(c) shall terminate and Section
7 shall apply.  If payments under Section 7 cease because of Employee's death
prior to the end of the 24 month period under this Section 4(c), then the
balance of the payments hereunder will be made, e.g., if Employee has received 6
months of disability payments before the Term expires and dies after receiving
12 months of payments under Section 7, then Employee's beneficiary designated in
writing by Employee from time to time or in the event such beneficiary
pre-deceases Employee, or if there is no beneficiary designated, Employee's
estate (whichever is applicable shall be deemed the "Beneficiary") will receive
the remaining 6 months of payments under this Section 4(c).  If Employee dies
during such 24 month period prior to the end of the Term, then Section 4(e)
shall apply and the payments under this Section 4(c) shall terminate.

        (d) The Board upon the recommendation of the Compensation Committee of
the Board shall consider no later than May 31, 2006, 2007, 2008, 2009 and 2010
respectively (provided there is no delay in obtaining the financial statements
as provided below, but in no event later than 45 days following receipt thereof)
the grant of a bonus ("Bonus") to Employee based on Employer's performance for
Employer's immediately preceding fiscal year.  Notwithstanding the foregoing,
based on Employer's annual pre-tax consolidated earnings for the applicable
fiscal year, Employer shall pay Employee a Bonus at the rate (i) of one and one-
half percent (1 1/2%) of the pre-tax consolidated earnings for the fiscal years
ending December 31, 2005 (including the period January 1 - March 31, 2005 as
provided hereafter in Section 13) and 2006, and two percent (2%) of the pre-tax
consolidated earnings for each of the fiscal years ending December 31, 2007,
2008 and 2009, plus (ii) seven-eighths of one percent (7/8 of 1%) of the
Employer's theatrical net pre-tax cash flow for each such fiscal year ending
December 31, 2005 through 2009 ("Theatrical Flow") as hereinafter defined in
Schedule A attached hereto (provided however that the Bonus and Theatrical Flow,
if any, for 2009 shall be 25% of the amount for such year).

        No Bonus shall be payable for any fiscal year in which annual pre-tax
consolidated earnings, regardless of Theatrical Flow, as determined in
accordance with Section 4(d), are less than $500,000.  Notwithstanding the
foregoing, the portion of the Bonus applicable to Theatrical Flow shall be paid
at 50% of such formula if annual pre-tax earnings are less than $500,000.  There
shall be excluded from the calculation of annual pre-tax consolidated earnings
during the Term of this Agreement the amount by which (x) any item or items of
unusual or extraordinary gain in the aggregate exceeds 20% of the Employer's net
book value as at the end of the immediate preceding fiscal year, (y) any item of
unusual or extraordinary loss in the aggregate exceeds 20% of the Employer's net
book value as at the end of the immediate preceding fiscal year, in each case in
(x) and (y) above as determined in accordance with generally accepted accounting
principles and items of gain and loss shall not be netted against each other for
purpose of the above 20% calculation, or (z) any contractual Bonuses and or
contractual profit participations accrued or paid to Employee and other
employees.

        Provided Employee is not in default of the Agreement, the Board may, in
any event, even if any of the aforesaid pre-tax consolidated earnings levels are
not exceeded, grant the Employee the aforesaid Bonus or any portion thereof for
such year based on his performance.

        Notwithstanding anything to the contrary contained herein, if Employee
is not in the employ of Employer at the end of any aforesaid 2005, 2006, 2007
and 2008 fiscal year, or on March 31, 2009 no Bonus shall be paid for such
fiscal year or part thereof as to 2009.  In the event of Employee's death on or
after January 1 of 2006, 2007 2008,or 2009, or April 1, 2009 as to 2009, any
Bonus to which he is otherwise entitled for the prior fiscal year or 2009, as
the case may be, shall be paid to his Beneficiary.

        Such annual pre-tax consolidated earnings and Theatrical Flow shall be
fixed and determined by the independent certified public accountants regularly
employed by Employer.  Such independent certified public accountants, in
ascertaining such annual pre-tax consolidated earnings, shall apply all
accounting practices and procedures heretofore applied by Employer's independent
certified public accountants in arriving at such annual pre-tax consolidated
earnings as disclosed in Employer's annual statement for that year of profit and
loss released to its stockholders.  The determination by such independent
certified public accountants shall be final, absolute and controlling upon the
parties.  Notwithstanding the foregoing, any interest expense savings resulting
from conversion of the Employer's 7 1/2% Convertible Subordinated Notes due 2006
and 8 1/4% Limited Convertible Senior Subordinated Notes due 2012 may be
included or excluded in such calculation by the Board in its sole discretion.
Payment of such amount, if any is due, shall be made for each year by Employer
to Employee within sixty (60) days after which such accountant shall have
furnished such statement to Employer disclosing Employer's pre-tax consolidated
earnings for each of the years 2005, 2006, 2007, 2008 and 2009.  Employer
undertakes to use reasonable efforts to cause said accountants to prepare and
furnish such statements within one hundred thirty (130) days from the close of
each such fiscal year and to cause said independent certified public
accountants, concomitantly with delivery of such statement by accountants to it,
to deliver a copy of such statement to Employee.  The Employer shall not have
any liability to Employee arising out of any delays with respect to the
foregoing.

        (e) In the event Employee dies during the Term of this Agreement while
the Employee is still in the Employ of Employer, Employer shall pay to
Employee's Beneficiary for twenty-four (24) months, annual death benefits
payable weekly or in accordance with Employer's payroll practices in an amount
equal to 50% of Employee's then annual base salary rate.

        (f) So long as Employer's Common Stock is publicly traded, Employee, in
lieu of receiving cash payment of any Bonus, may elect to receive all or part of
any such Bonus by delivery of the Employer's Common Stock, par value $1.00 per
share ("Common Stock") valued at the closing market price on date of election,
or if not traded on such date, the last reported closing market price.  Such
election must (i) be made within ten (10) days after notice of the amount of
such Bonus and (ii) require a minimum of one hundred (100) shares.  No
fractional shares will be issued.  Employee acknowledges that any such shares
must be purchased for investment and not with a view to distribution and cannot
be resold without an exemption from registration under the Securities Act of
1933, as amended, such as Rule 144 which requires, among other things, a one (1)
year holding period.  Prior to commencement of any fiscal year period under
Section 4(d), Employee may also elect to defer payment of any such Bonus for up
to ten (10) years by giving written notice to Employer of Employee's request for
said deferral.  Any such deferred Bonus shall not accrue interest whatsoever.

    5.  During the Term of this Agreement, Employer will reimburse Employee for
traveling or other out-of-pocket expenses and disbursements incurred by Employee
with Employer's approval in furtherance of the businesses of Employer, its
affiliates, divisions or subsidiaries, upon presentation of such supporting
information as Employer may from time to time request.

    6.  During the Term of this Agreement, Employee shall be entitled to a
vacation during the usual vacation period of Employer in accordance with such
vacation schedules as Employer may prescribe.

    7.  Both parties recognize that the services to be rendered by Employee
pursuant to this Agreement are extraordinary and unique.  During the Term of
this Agreement, and during any subsequent employment of Employee by Employer,
Employee shall not, directly or indirectly, enter into the employ of or render
any services to any person, partnership, association or corporation engaged in a
business or businesses in any way, directly or indirectly, competitive to those
now or hereafter engaged in by Employer or by any of its subsidiaries during the
Term of this Agreement and during any subsequent employment of Employee by
Employer and Employee shall not engage in any such business, directly or
indirectly on his own account and, except as permitted by Section 3 of this
Agreement, Employee shall not become interested in any such business, directly
or indirectly, as an individual, partner, shareholder, director, officer,
principal, agent, employee, trustee, consultant, or in any other relationship or
capacity.  For a period of two (2) years following termination of employment,
Employee shall not directly or indirectly (i) engage or otherwise be involved in
the recruitment or employment of the Employer's employees or any individual who
was such an employee within one (1) year prior to any such termination of
employment, (ii) solicit or assist in obtaining business from a customer of the
Employer who was a customer during the two (2) year period prior to termination
of employment, with respect to products or services competitive with products or
services of Employer, or (iii) communicate, publish, or otherwise transmit, in
any manner whatsoever, untrue or negative information or comments regarding
Employer.  Notwithstanding the foregoing, Employee may engage in the theatre,
movie and real estate business subject to (i), (ii) with regard to the display
business only and (iii) above.

        The restriction in (ii) above shall not apply if following the end of
the Term (x) Employee's employment is terminated without cause by Employer or
(y) Employee resigns because Employee is not offered a replacement contract for
a term of at least two (2) years and otherwise having at least the same terms
and conditions as in effect on March 31, 2009, or at the end of any subsequent
renewal contract, provided no such renewal contract will continue past
Employee's 65th birthday and will automatically terminate on such date unless
the parties otherwise mutually agree in writing, unless in either case of (x) or
(y) above Employer pays to Employee weekly or bi-weekly in accordance with
Employer's payroll practices as severance pay, an amount equal to Employee's
base salary in effect at the time of termination of employment (e.g., at a rate
of $230,000 per annum if termination is April 1, 2009) for a period of one (1)
year, subject to credit to Employer for any new compensation received by
Employee from third parties during such one (1) year period, such credit not to
exceed any weekly or bi-weekly payment hereunder.  Employee shall certify to
Employer at least bi-weekly the amount of any such compensation with reasonable
back-up, i.e., copy of pay slip.  If Employee dies during the one (1) year
severance period, the balance of the severance payments shall be payable to
Employee's Beneficiary; provided however, if Employee was receiving payments
under Section 4(c) because of disability which disability payments terminated
because of the notice given under this Section 7, then the payments hereunder
shall cease and the balance of the disability payments under Section 4(c) shall
be made as provided therein.

        Employer shall be entitled, if it so elects, to institute and prosecute
proceedings in any court of competent jurisdiction, either in law or in equity,
to obtain damages for any breach of this Agreement, or to enjoin Employee from
any breach of this Agreement, but nothing herein contained shall be construed to
prevent Employer from pursuing such other remedies as Employer may elect to
invoke.

    8.  In the event any provision of Section 7 of this Agreement shall be held
invalid or unenforceable by reason of the geographic or business scope or the
duration thereof, such invalidity or unenforceability shall attach only to such
provision and shall not affect or render invalid or unenforceable any other
provision of this Agreement, and this Agreement shall be construed as if the
geographic or business scope or the duration of such provision had been more
narrowly drawn so as not to be invalid or unenforceable.

    9.  (a) Employee shall have the right to cancel and terminate this Agreement
on 75 days prior written notice from the date of occurrence if there has been a
"Change in Control of Employer", as hereinafter defined.  Upon such termination
becoming effective pursuant to such notice by Employee, (a) Employer and
Employee shall be released from all further liability and obligations provided
for in the Agreement, except that Employee shall still be subject to and bound
by his obligations under Section 7 as modified herein; (b) Employer shall pay to
Employee his Bonus for the prior calendar year (if not previously paid) as and
to the extent provided for in Section 4 (d); and (c) Employee shall be paid in a
lump sum on the effective date of termination the amount of 2.9 times his salary
level then in effect.  If Employee is incapacitated at the time of his notice
under this Section 9, the above payments shall be in lieu of the payments
provided under Section 4(c) which payments shall cease and terminate at the end
of the 75 day notice period.  In the event of Employee's death during the 75 day
notice period, if notice of termination has been given, any amounts still
payable to Employee by reason of such termination or otherwise payable under
this Agreement shall be paid to his Beneficiary in lieu of the death benefit
payments under Section 4(e).  The notice under this Section 9 must be given
within 60 days of the occurrence of the applicable event or be deemed waived.
To the extent any such payments made pursuant to Section 9 above are deemed to
be an "excess parachute payment" under Section 280G of the Internal Revenue Code
of 1986, as amended (the "Code") and are subject to tax pursuant to Section 4999
of the Code or increase Employee's tax liability based on alternative minimum
tax provisions, such payments shall be grossed up in such a manner as to offset
the effect of such excise tax and alternative minimum tax on such payments.  For
purpose of this Section 9, the phrase "Change in Control of Employer" shall be
deemed to have occurred if (x) any person (as such term is used in Sections 13
(d) and 14 (d) (2) of the Securities Exchange Act of 1934) hereafter becomes the
beneficial owner, directly or indirectly, of securities of Employer,
representing 25% or more of the combined voting power of the Employer's then
outstanding securities (other than members of Richard Brandt's family, including
Employee, directly or indirectly through trusts or otherwise), and (y) during
any period of two (2) consecutive years, individuals who at the beginning of
such period constitute the Board of Directors of Employer cease by reason of a
contested election to constitute at least a majority thereof, unless Richard
Brandt (or in the event of his death or incapacity, i.e., inability to manage
his own affairs, a majority of David Brandt, Thomas Brandt and Employee) shall
have approved such change in the majority.  For further purposes of this Section
9 only, the restriction in Section 7(ii) shall only apply to a customer of
Employer who was a customer during the six (6) month period prior to termination
of employment (with respect to replacing Employer's leased products with
competitor's purchased or leased products or Employer's service contracts with
replacement service contracts for Employer's equipment, as long as such service
or lease agreement is in effect (including continuation of use or other
extension beyond the termination date thereof).  The restrictions in Section
7(i) and (iii) shall continue without modification.

        (b) In the event there is a Change in Control of Employer when a change
in the majority of the Board of Directors is approved as provided in Section
9(a) above, then notwithstanding such approval, (i) the Term of this Agreement
shall be extended for an additional three (3) years (each an "extended year")
through March 31, 2012, (ii) the salary during each such extended year shall be
at the annual rate of Two Hundred Fifty Thousand Dollars ($250,000), (iii) the
salary shall be adjusted by the CPI Adjustment as hereinafter defined applicable
to the last two years of the extended Term based on the increase from April 1,
2009, and (iv) Employee shall be entitled to a Bonus for each such extended year
equal to the greater of the Bonus rate in effect for 2008 or the highest annual
Bonus paid Employee during the five (5) calendar year period preceding such
approved Change in Control of Employer.

        "CPI Adjustment" shall mean the adjustment for inflation at the
beginning of each calendar year commencing in 2010 based on the United States
Department of Labor Bureau of Labor Statistics, Consumer Price Index, United
States City Average, all items (2009 = 100).  The CPI Adjustment shall be
implemented effective April 1, 2010 and April 1, 2011 respectively.

        (c) In the event of a Change in Control of Employer under either (x)
Section 9(a), whether or not Employee terminates this Agreement, or (y) Section
9(b) above, then Employer shall give Employee, (i) to the extent Employee did
not receive credit for service because a freeze was in effect, a supplemental
retirement benefit ("ASRB") for the amount of such credit not realized because
of the freeze and (ii) if the Employer discontinues its Pension Plan, (x)
additional ASRB for the amount of credit for service not realized because of
discontinuance, and (y) ASRB as provided in this Section 9(c) as if such Plan
had not been discontinued.  It is understood that the purpose of this paragraph
is that (a) Employee and Employee's Beneficiary shall receive as a result of the
ASRB payment, the full benefit which would otherwise have been payable from the
Employer's Pension Plan had no freeze been imposed and (b) that any additional
taxes payable by Employee on any ASRB payment as a result of statutory
restrictions with respect to the ASRB, if any, shall be paid to Employee by
Employer grossed up in such manner as to offset the effect of Employee's state
and federal income taxes on such payments.  The ASRB payable pursuant to this
paragraph shall be paid to the same parties and at the same time that the
payments under the Plan are paid, provided, however, that Employee may defer
receipt of any ASRB payments attributable to services rendered in any year, for
up to ten (10) years, by written notice to Employer prior to the commencement of
any year, such notice to set forth the number of years any such payments are to
be deferred.  Any such deferred ASRB payment shall not accrue interest
whatsoever.  The obligations of Employer payable pursuant to this subparagraph
(c) are intended to be unfunded for income tax purposes and shall not constitute
a trust fund, escrow amount, amount set apart, or other account credited with
funds for the benefit of Employee or Employee's Beneficiaries.

    10.  The waiver by Employer of a breach of any provision of this Agreement
by Employee shall not operate or be construed as a waiver of any subsequent
breach by Employee.

    11.  Any notice required or permitted to be given under this Agreement shall
be sufficient if in writing and served personally or sent by United States
certified or registered mail, return receipt requested, or overnight courier
such as Federal Express or Airborne to his address as stated on Employer's
records, in the case of Employee, or to the office of Trans-Lux Corporation,
attention of the Chairman, President or Chief Financial Officer 110 Richards
Avenue, Norwalk, Connecticut 06856-5090, in the case of Employer, or such other
address as designated in writing by the parties.

    12.  This Agreement shall be construed in accordance with the laws of the
State of New York.

    13.  This instrument contains the entire agreement between the parties and
supersedes as of April 1, 2005, the Agreement between Employer and Employee
dated as of April 1, 2002, as amended, except any amounts which accrued as of
April 1, 2005 and are unpaid, but excluding any Bonus and Theatrical Flow for
the period January 1, 2005 - March 31, 2005 which are covered by Section 4(d)
hereof.  It may not be changed, modified, extended or renewed orally except by
an agreement in writing signed by the party against whom enforcement of any
waiver, change, modification, discharge or extension is sought.

    IN WITNESS WHEREOF, this Agreement has been duly executed on the day and
year above written.

                                      TRANS-LUX CORPORATION

                                      By: /s/ Michael R. Mulcahy
                                         __________________________________
                                            President

                                          /s/ Matthew Brandt
                                         __________________________________
                                            Matthew Brandt

<PAGE>

Schedule A
Matthew Brandt
Override Bonus Caculation

Bonus Rate:             0.875%

Pretax income must be in excess of $1.0M to be eligible for override.

To be calculated annually for each fiscal year ending 12/31 as follows:
-----------------------------------------------------------------------
Pretax income for all theatre operations
Pretax income for Trans-Lux Cinema Consulting Corporation
Pretax income for Trans-Lux Loveland Corporation
Less:  local theatre overhead
Less:  general and administrative expenses overhead
"Plus:  amortization of Skyline noncompete of $45,000 per annum."
"Less:  Capital expenditures over $100,000*"
Plus / Less:  Gain or Loss on sale of assets
-----------------------------------------------------------------------
Equals Pretax income subject to bonus rate
=======================================================================

* New construction or acquisitions not deducted for bonus calculation.Exhibit 10

Exhibit 10.1

 

5-YEAR CREDIT AGREEMENT

Dated as of March 28, 2005

Among

TEXTRON INC.,

THE BANKS LISTED HEREIN,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

and

CITIBANK, N.A.,

as Syndication Agent

______________________

J.P. MORGAN SECURITIES INC.

and

CITIGROUP GLOBAL MARKETS INC.,

Lead Arrangers and Joint Bookrunners

 

 

 

TABLE OF CONTENTS

 

 

	 	
      Page

ARTICLE 1

DEFINITIONS AND ACCOUNTING TERMS

  
	
      Section 1.01. Definitions
	
      1

	
      Section 1.02. Accounting Terms and Determinations
	
      15

	
      Section 1.03. Currency Equivalents
	
      16

  

ARTICLE 2

AMOUNTS AND TERMS OF COMMITMENTS AND LOANS

  
	
      Section 2.01. Commitments.
	
      16

	
      Section 2.02. Competitive Bid Loans
	
      21

	
      Section 2.03. Notices of Other Currencies
	
      23

	
      Section 2.04. Substitution of Euro for National Currency
	
      23

	
      Section 2.05. Notices of Conversion/Continuation
	
      24

	
      Section 2.06. Registry
	
      25

	
      Section 2.07. Pro Rata Borrowings
	
      25

	
      Section 2.08. Interest
	
      26

	
      Section 2.09. Commissions and Fee
	
      28

	
      Section 2.10. Reductions in Commitments; Repayments and Payments
	
      29

	
      Section 2.11. Use of Proceeds
	
      34

	
      Section 2.12. Special Provisions Governing Eurocurrency Rate Loans
      and/or Competitive Bid Loans
	
      34

	
      Section 2.13. Capital Requirements
	
      41

	
      Section 2.14. Regulation D Compensation
	
      41

	
      Section 2.15. Letters of Credit
	
      42

  

ARTICLE 3

CONDITIONS TO LOANS AND LETTERS OF CREDIT

  
	
      Section 3.01. Conditions to Initial Loans and Letters of Credit
	
      48

	
      Section 3.02. Conditions to All Loans and Letters of Credit
	
      49

	
      Section 3.03. Conditions to Loans and Letters of Credit to Subsidiary
      Borrowers
	
      51

  

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

  
	
      Section 4.01. Organization, Powers and Good Standing
	
      52

	
      Section 4.02. Authorization of Borrowing, Etc
	
      52

  

ii

  
	
      Section 4.03. Financial Condition
	
      53

	
      Section 4.04. No Material Adverse Change
	
      54

	
      Section 4.05. Litigation
	
      54

	
      Section 4.06. Payment of Taxes
	
      54

	
      Section 4.07. Governmental Regulation
	
      54

	
      Section 4.08. Securities Activities
	
      54

	
      Section 4.09. ERISA Compliance
	
      54

	
      Section 4.10. Certain Fees
	
      55

  

ARTICLE 5

AFFIRMATIVE COVENANTS

  
	
      Section 5.01. Financial Statements and Other Reports
	
      56

	
      Section 5.02. Conduct of Business and Corporate Existence
	
      58

	
      Section 5.03. Payment of Taxes
	
      58

	
      Section 5.04. Maintenance of Properties; Insurance
	
      58

	
      Section 5.05. Inspection
	
      59

	
      Section 5.06. Compliance with Laws
	
      59

  

ARTICLE 6

NEGATIVE COVENANTS

  
	
      Section 6.01. Merger
	
      59

	
      Section 6.02. Liens
	
      60

	
      Section 6.03. Financial Covenant
	
      61

	
      Section 6.04. Use of Proceeds
	
      61

  

ARTICLE 7

EVENTS OF DEFAULT

  
	
      Section 7.01. Failure to Make Payments When Due
	
      61

	
      Section 7.02. Default in Other Agreements
	
      61

	
      Section 7.03. Breach of Certain Covenants
	
      62

	
      Section 7.04. Breach of Warranty
	
      62

	
      Section 7.05. Other Defaults under Agreement
	
      62

	
      Section 7.06. Involuntary Bankruptcy; Appointment of Receiver, etc
	
      62

	
      Section 7.07. Voluntary Bankruptcy; Appointment of Receiver, etc
	
      62

	
      Section 7.08. Judgments and Attachments
	
      63

	
      Section 7.09. Dissolution
	
      63

	
      Section 7.10. ERISA Title IV Liabilities
	
      63

	
      Section 7.11. Redenomination Upon Acceleration
	
      64

	
      Section 7.12. Cash Cover
	
      65

  

iii

 

ARTICLE 8

AGENTS

  
	
      Section 8.01. Appointment
	
      65

	
      Section 8.02. Powers; General Immunity
	
      66

	
      Section 8.03. Representations and Warranties; No Responsibility for
      Appraisal of Creditworthiness
	
      67

	
      Section 8.04. Right to Indemnity
	
      67

	
      Section 8.05. Resignation by the Agents
	
      68

	
      Section 8.06. Successor Agents
	
      68

	
      Section 8.07. Syndication Agent
	
      68

  

ARTICLE 9

GUARANTEE

  
	
      Section 9.01. Guarantee
	
      69

	
      Section 9.02. Obligation Not Affected by Certain Events
	
      69

	
      Section 9.03. Guarantee of Payment
	
      70

	
      Section 9.04. Obligation Not Subject to Limitation
	
      70

	
      Section 9.05. Order of Payment
	
      70

	
      Section 9.06. Waiver by the Company
	
      71

  

ARTICLE 10

MISCELLANEOUS

  
	
      Section 10.01. Benefit of Agreement
	
      71

	
      Section 10.02. Expenses
	
      74

	
      Section 10.03. Indemnity
	
      75

	
      Section 10.04. Setoff
	
      75

	
      Section 10.05. Amendments and Waivers
	
      76

	
      Section 10.06. Independence of Covenants
	
      77

	
      Section 10.07. Notices
	
      77

	
      Section 10.08. Survival of Warranties and Certain Agreements
	
      77

	
      Section 10.09. USA PATRIOT Act Notice
	
      77

	
      Section 10.10. Failure or Indulgence Not Waiver; Remedies Cumulative
	
      78

	
      Section 10.11. Severability
	
      78

	
      Section 10.12. Obligations Several; Independent Nature of
      Banks' Rights
	
      78

	
      Section 10.13. Headings
	
      78

	
      Section 10.14. Applicable Law, Consent To Jurisdiction.
	
      78

	
      Section 10.15. Successors and Assigns
	
      79

	
      Section 10.16. Counterparts; Effectiveness
	
      79

	
      Section 10.17. Judgment Currency
	
      80

  

 

iv

 

EXHIBITS

  
	
      Pricing Schedule
	 	 
	
      Schedule 2.15
	
      -
	
      Existing Letters of Credit

	
      Exhibit A
	
      -
	
      Form of Note

	
      Exhibit B
	
      -
	
      Form of Opinion of Nancy K. Cassidy, Esq.

      Senior Associate General Counsel of the Company

	
      Exhibit C
	
      -
	
      Form of Opinion of Davis Polk & Wardwell

	
      Exhibit D-1
	
      -
	
      Form of Notice of Syndicated Borrowing

	
      Exhibit D-2
	
      -
	
      Form of Notice of Competitive Bid Borrowing

	
      Exhibit D-3
	
      -
	
      Form of Notice of Conversion/Continuation

	
      Exhibit E
	
      -
	
      Form of Compliance Certificate

	
      Exhibit F
	
      -
	
      Form of Transfer Supplement

	
      Exhibit G
	
      -
	
      Form of Assumption Agreement

	
      Exhibit H
	
      -
	
      Form of Extension Agreement

  

v

 

5-YEAR CREDIT AGREEMENT

        5-YEAR CREDIT AGREEMENT, dated as of March 28, 2005, among TEXTRON
INC., a Delaware corporation (together with its successors, the "Company"),
the BANKS signatory hereto (each a "Bank" and collectively the
"Banks"), JPMORGAN CHASE BANK, N.A., as Administrative Agent
for the Banks (together with its successors in such capacity, the "Administrative
Agent") and CITIBANK, N.A., as Syndication Agent for the Banks
(together with its successors in such capacity, the "Syndication Agent").

W I T N E S S E T H

        WHEREAS, the Company owns directly or indirectly all of the outstanding
shares of capital stock of each of the Subsidiary Borrowers;

        WHEREAS, the Company desires that the Banks extend certain credit facilities
to the Company and the Subsidiary Borrowers for the purposes set forth in
Section 2.11; and

        WHEREAS, each Bank is willing to extend its commitment to make loans to the
Company and the Subsidiary Borrowers for such purposes on the terms and subject
to the conditions hereinafter set forth;

        NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the Company, the Banks and the Agents
agree as follows:

Article 1

Definitions And Accounting Terms

        Section 1.01. Definitions. As used in this
Agreement, and unless the context requires a different meaning, the following
terms have the meanings indicated:

        "Absolute Rate" has the meaning set forth in Section
2.02(c).

        "Absolute Rate Auction" means a solicitation of offers to
make Competitive Bid Loans setting forth Absolute Rates.

        "Account" means:

        (a) with respect to a Borrower, the account specified in the Notice of
    Borrowing or Notice of Competitive Bid Borrowing which, for Dollars, shall
    be with an institution located in New York City, and, for any Alternative
    Currency, shall be with an institution located in the same country as the
    Account of the Administrative Agent for the requested currency; and

        (b) with respect to the Administrative Agent or any Bank, (i) for
    Dollars, the account maintained at its New York Office (in the case of the
    Administrative Agent) or at its Applicable Lending Office for Base Rate
    Loans (in the case of any Bank) and (ii) for any Alternative Currency, an
    account with an institution located in the country whose currency is the
    relevant Alternative Currency or such other country as is mutually agreed to
    by the applicable Borrower and the Administrative Agent, the applicable
    Borrower and such Bank, or such Bank and the Administrative Agent, as the
    case may be, as shall have been notified by the Administrative Agent to the
    Banks, by such Bank to the applicable Borrower, or by such Bank to the
    Administrative Agent, as the case may be, by not less than four (4) Business
    Days' notice.

        "Administrative Agent" has the meaning assigned to that term
in the introduction to this Agreement.

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

        "Affected Bank" means any Bank affected by any of the events
described in Section 2.12(b) or 2.12(c) hereof.

        "Affiliate" means, with respect to any Person, any Person or
group of Persons acting in concert in respect of the Person in question that,
directly or indirectly, controls or is controlled by or is under common control
with such Person. For the purposes of this definition, "control"
(including, with correlative meanings, the terms "controlled by" and
"under common control with"), as used with respect to any Person or
group of Persons acting in concert, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of management and
policies of such Person, whether through the ownership of voting securities or
by contract or otherwise.

        "Agent" means any of the Administrative Agent and the
Syndication Agent (collectively, "Agents").

        "Agent's Other Currency Notice" has the meaning
specified in Section 2.03 of this Agreement.

        "Agreement" means this 5-Year Credit Agreement, as
the same may at any time be amended, amended and restated, supplemented or
otherwise modified in accordance with the terms hereof.

2

        "Alternative Currency" or "Alternative Currencies"
means, with respect to any Loan,

  
    (a)     British Pounds
    Sterling, Canadian Dollars and Euros, and

    (b)     any other lawful
    currency that is freely transferable and freely convertible into Dollars and
    that has been approved by each Bank in accordance with Section 2.03 of this
    Agreement.

  

        "Applicable Lending Office" means, for any Bank with respect
to its Loans of any particular type and/or any particular currency, the office,
branch or affiliate of such Bank specified as the booking office therefor in
such Bank's Administrative Questionnaire, or such other office, branch
or affiliate of such Bank as such Bank may specify from time to time for such
purpose by notice to the Company and the Administrative Agent.

        "Bank" and "Banks" have the respective
meanings assigned to those terms in the introduction to this Agreement and its
or their successors and permitted assigns.

        "Bankruptcy Code" means Title 11 of the United States Code
entitled "Bankruptcy," as from time to time amended and any successor
statutes.

        "Base Rate" means, for any day, a rate per annum
equal to the greater of (a) the Prime Rate in effect on such day and (b) the
Federal Funds Rate in effect on such day plus 1/2
of 1%.

        "Base Rate Loans" are Syndicated Loans whose interest rate
is based on Base Rate.

        "Bid Margin" has the meaning set forth in Section 2.02(c).

        "Board" means the Board of Governors of the Federal Reserve
System.

        "Borrower" means each of the Company and each Subsidiary
Borrower.

        "Borrowing" means a borrowing of Loans hereunder.

        "BP LIBOR" means, with respect to any Interest Rate
Determination Date for any Loans denominated in British Pounds Sterling, an
interest rate per annum equal to the rate that is set forth on page 3750 of the
Telerate Service (or any page that may replace such page from time to time) as
of 11:00 A.M. (London time) on such Interest Rate Determination Date for British
Pound Sterling deposits comparable in amount to the aggregate principal amount
of such British Pounds Sterling denominated Loans and having a tenor equal to
the duration of the applicable Interest Period.

3

        "British Pound Sterling", "British Pounds
Sterling" and the sign "£" mean the lawful
currency of the United Kingdom. "Business Day" means a day of
the year

        (a)     on which banks are
    not required or authorized by law to close in New York City

        (b)     if the applicable
    Business Day relates to any Eurocurrency Loan or Competitive Bid LIBOR Loan,
    on which each Bank carries on dealings in the London interbank and foreign
    exchange markets; and

        (c)     if the applicable
    Business Day relates to any Loan in a currency other than Dollars, on which
    banks are not required or authorized to close in the city of the
    jurisdiction of such currency where the major financial markets for such
    jurisdiction are located and in the city of the jurisdiction of such
    currency where the Administrative Agent's Account and the
    Borrower's Account are located.

        "Canadian Dollar", "Canadian Dollars" and
the sign "C$" mean the lawful currency of Canada.

        "C$ LIBOR" means, with respect to any Interest Rate
Determination Date for any Loans denominated in Canadian Dollars, an interest
rate per annum equal to the rate that is set forth on page 3740 of the Telerate
Service (or any page that may replace such page from time to time) as of 11:00
A.M. (London time) on such Interest Rate Determination Date for Canadian Dollar
deposits comparable in amount to the aggregate principal amount of such Canadian
Dollar denominated Loans and having a tenor equal to the duration of the
applicable Interest Period.

        "Capital Lease", as applied to any Person, means any lease
of any property (whether real, personal or mixed) by that Person as lessee
which, in conformity with GAAP, is accounted for as a capital lease on the
balance sheet of that Person.

        "Code" means the Internal Revenue Code of 1986, as from time
to time amended. Any reference to the Code shall include a reference to
corresponding provisions of any subsequent revenue law.

        "Commitment" means, at any time any determination thereof is
to be made, the commitment (whether or not then utilized) of each Bank then in
effect to extend credit hereunder, which initially shall be for each Bank the
amount specified on the signature page hereto for such Bank.

        "Company" has the meaning assigned to that term in the
introduction to this Agreement.

4

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

        "Competitive Bid Loan" means a Loan bearing interest at such
rate and for such interest period, and on such other terms not inconsistent with
the terms of this Agreement, as the applicable Borrower and the Bank making such
Loan may mutually agree and which Loan is requested pursuant to a Notice of
Competitive Bid Borrowing.

        "Competitive Bid LIBOR Loan" means a Competitive Bid Loan
made by a Bank pursuant to a LIBOR Auction.

        "Consolidated Capitalization" means, as at any date of
determination, the sum (without duplication) of (a) Consolidated
Indebtedness of Textron Manufacturing plus (b) Consolidated Net
Worth plus (c) preferred stock of the Company plus (d)
other securities of the Company convertible (whether mandatorily or at the
option of the holder) into capital stock of the Company.

        "Compliance Certificate" means a certificate substantially
in the form annexed hereto as Exhibit E delivered to the Banks by the Company
pursuant to Section 5.01(b)(i)(B).

        "Consolidated Indebtedness of Textron Manufacturing" means,
as at any date of determination, the sum of short-term and
long-term indebtedness for borrowed money that is shown on a balance
sheet of Textron Manufacturing (or would be if a balance sheet were prepared on
such date).

        "Consolidated Net Worth" means, as at any date of
determination, the stockholders' equity of the Company and its
Subsidiaries on a consolidated basis (but excluding the effects of the
Company's accumulated other comprehensive income/loss) calculated in
conformity with GAAP.

        "Contractual Obligation", as applied to any Person, means
any provision of any security issued by that Person or of any material
indenture, mortgage, deed of trust or other similar instrument of that Person
under which Indebtedness is outstanding or secured or by which that Person or
any of its properties is bound or to which that Person or any of its properties
is subject.

        "Currency Equivalent" means, on any date of determination,
(a) the equivalent in Dollars of any amount of an Alternative Currency
determined at the rate of exchange quoted by the Administrative Agent in New
York City, at 11:00 A.M. (New York City time) on the date on which such
equivalent is to be determined for the spot purchase in the New York foreign
exchange market for such amount of Alternative Currency with Dollars, (b) the
equivalent in any Alternative Currency of any amount of any other Alternative
Currency determined at the rate of exchange quoted by the Administrative Agent
in New York City, at 11:00 A.M. (New York City time) on the date on which such
equivalent is determined for the spot purchase in the New York foreign exchange
market for such amount for the Alternative Currency with such other Alternative
Currency, and (c) the equivalent in any Alternative Currency of any amount of
Dollars determined, at the rate of exchange quoted by the Administrative Agent
in New

5

York City, at 11:00 A.M. (New York City time) on the date on which such
equivalent is to be determined for the spot purchase in the New York foreign
exchange market for such amount of Dollars with such Alternative Currency.

        "Designation Date" means, with respect to any Subsidiary of
the Company, the date on which the Company designates such Subsidiary as a
Subsidiary Borrower.

        "Dollar", "Dollars" and the sign "$"
mean the lawful currency of the United States.

        "Effective Date" has the meaning assigned to that term in
Section 10.16 hereof.

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

        "ERISA Affiliate" means, with respect to any Person, any
trade or business (whether or not incorporated) which, together with such
Person, is under common control as described in Section 414(c) of the Code or is
a member of a controlled group, as defined in Section 414(b) of the Code, which
includes such Person.

        "Euro" means the single currency of the Participating Member
States in the Third Stage.

        "Eurocurrency Margin" has the meaning specified in the
Pricing Schedule.

        "Eurocurrency Rate" means, for any Interest Rate
Determination Date either (a) (i) for Loans denominated in Dollars, U.S. LIBOR;
(ii) for Loans denominated in British Pounds Sterling, BP LIBOR; (iii) for Loans
denominated in Canadian Dollars, C$ LIBOR, (iv) for Loans denominated in Euros,
Euro LIBOR and (v) for Loans denominated in any other Alternative Currency, an
interest rate per annum equal to the rate set forth on the applicable page of
the Telerate Service for such currency as of 11:00 A.M. (London time) on the
second Business Day prior to the first day of the applicable Interest Period for
deposits in the applicable currency comparable in amount to the then outstanding
principal amount of such loan denominated in the applicable currency and having
a tenor equal to the duration of the applicable Interest Period; or (b) if a
rate cannot be determined pursuant to clause (a) above, a rate per annum equal
to the arithmetic

6

average (rounded upwards to the nearest 1/16 of 1%) of the offered quotation,
if any, to first class banks in the Eurocurrency market by each of the Reference
Banks for deposits in the applicable currency with maturities comparable to the
Interest Period for which such Eurocurrency Rate will apply as of approximately
10:00 A.M. (New York time) two Business Days prior to the commencement of such
Interest Period. If any Reference Bank fails to provide its offered quotation to
the Administrative Agent, the Eurocurrency Rate shall be determined on the basis
of the offered quotation(s) by the other Reference Bank(s).

        "Eurocurrency Rate Loans" means Syndicated Loans or portions
thereof during the period in which such Loans bear interest at rates determined
in accordance with Section 2.08(a)(i)(A) hereof.

        "Eurocurrency 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 Eurocurrency 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).

        "Euro LIBOR" means, with respect to any Interest Rate
Determination Date for any Loans denominated in Euros, an interest rate per
annum equal to the rate that is set forth on page 3750 of the Telerate Service
(or any other page that may replace such page from time to time) as of 11:00
a.m. (London time) on such Interest Rate Determination Date for Euro deposits
comparable in amount to the aggregate principal amount of such Euro denominated
Loans and having a tenor equal to the duration of the applicable Interest
Period.

        "Event of Default" has the meaning assigned to that term in Article
7 hereof.

        "Exchange Act" means the Securities Exchange Act of 1934, as
from time to time amended, and any successor statutes.

        "Existing Letters of Credit" means the letters of credit
issued before the Effective Date and listed in Schedule 2.15 hereto.

        "Facility Fee Rate" has the meaning specified in the Pricing
Schedule.

        "Federal Funds Rate" means on any one day the weighted
average of the rate on overnight Federal funds transactions with members of the
Federal Reserve System only arranged by Federal funds brokers as published as of
such day by the

7

Federal Reserve Bank of New York, provided that if such day is not a
Business Day, the Federal Funds Rate shall be measured as of the immediately
preceding Business Day.

        "Finance Company" means any Person which is (or would be but
for the proviso to the definition of such term) a Subsidiary of the Company and
which is primarily engaged in the business of a finance company.

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

        "Funding Date" means the date of the funding of a Loan made
pursuant to a Notice of Borrowing but does not mean the date of any conversion
or continuation of the interest rate applicable to any Loan pursuant to a Notice
of Conversion/Continuation.

        "GAAP" means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board as in effect from
time to time.

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

        "Indebtedness", as applied to any Person, means, without
duplication, (i) all indebtedness for borrowed money of that Person, (ii) that
portion of obligations with respect to Capital Leases which is properly
classified as a liability on a balance sheet of that Person in conformity with
GAAP, (iii) notes payable of that Person and drafts accepted by that Person
representing extensions of credit whether or not representing obligations for
borrowed money, (iv) any obligation of that Person owed for all or any part of
the deferred purchase price of property or services which purchase price is (a)
due more than twelve months from the date of incurrence of the obligation in
respect thereof, or (b) evidenced by a note or similar written instrument, (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 indebtedness secured by any Lien on any property or asset
owned or held by that Person regardless of whether the indebtedness secured
thereby shall have been assumed by that Person or is nonrecourse to the credit
of that Person and (vii) any guarantee of that Person, direct or indirect, of
any indebtedness, note payable, draft accepted, or obligation described in
clauses (i)-(vi) above of any other Person.

        "Initial Loans" means the initial Loans made under this
Agreement.

8

        "Interest Payment Date" means, (x) with respect to any
Eurocurrency Rate Loan, the last day of each Interest Period applicable to such
Eurocurrency Rate Loan; provided that in the case of each Interest Period
of six months, "Interest Payment Date" shall also include each
Interest Period Anniversary Date (or if such day is not a Business Day, then the
next succeeding Business Day) for such Interest Period and (y) in the case of
any Base Rate Loan, the last Business Day of each calendar quarter.

        "Interest Period" means any interest period applicable to a
Eurocurrency Rate Loan or Competitive Bid Loan as determined pursuant to Section
2.08(b) hereof.

        "Interest Period Anniversary Date" means, for each Interest
Period applicable to a Eurocurrency Rate Loan which is six months, the
three-month anniversary of the commencement of that Interest Period.

        "Interest Rate Determination Date" means each date for
calculating the Eurocurrency Rate for purposes of determining the interest rate
in respect of an Interest Period. The Interest Rate Determination Date shall be
the second Business Day prior to the first day of the related Interest Period.

        "Issuing Bank" means JPMorgan Chase, Citibank, N.A., 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. Any other Bank which is the issuer of an Existing Letter of Credit is
an Issuing Bank with respect thereto.

        "JPMorgan Chase" means JPMorgan Chase Bank, N.A., and its
successors.

        "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.

        "LIBOR Auction" means a solicitation of offers to make
Competitive Bid Loans setting forth Bid Margins.

        "Lien" means any lien, mortgage, pledge, security interest,
charge or encumbrance of any kind (including any conditional sale or other title
retention

9

agreement, any lease in the nature thereof, and any agreement to give any
security interest).

        "Loans" means one or more of the Syndicated Loans,
Competitive Bid Loans or any combination thereof whether denominated in Dollars
or an Alternative Currency.

        "Margin Stock" has the meaning assigned to that term in
Regulation U of the Board as in effect from time to time.

        "Material Adverse Effect" means a material adverse effect on
the business, operations, properties, assets or financial condition of the
Company and its Subsidiaries, taken as a whole.

        "Multiemployer Plan" has the meaning assigned to that term
in Section 4001(a)(3) of ERISA.

        "Net U.S. Based Cash" means, as at any date of
determination, the amount, if any, by which the aggregate amount of cash held by
the Company and its U.S. Subsidiaries exceeds $200,000,000.

        "New York Office" means, for the Administrative Agent, the
office in New York City specified in or pursuant to Section 10.07.

        "Notes" means the promissory notes of the Borrowers issued
pursuant to Section 2.06(b) hereof in substantially the form of Exhibit A
hereto.

        "Notice of Borrowing" means any Notice of Syndicated
Borrowing, Notice of Competitive Bid Borrowing or any combination thereof.

        "Notice of Competitive Bid Borrowing" has the meaning
assigned to that term in Section 2.02(b) hereof and shall be substantially in
the form of Exhibit D-2 hereof.

        "Notice of Conversion/Continuation" means any notice
delivered pursuant to Section 2.05(a) hereof and shall be substantially in the
form of Exhibit D-3 hereto.

        "Notice of Issuance" means any notice delivered pursuant to
Section 2.15(c) hereof.

        "Notice of Syndicated Borrowing" has the meaning assigned to
that term in Section 2.01(b) hereof and shall be substantially in the form of
Exhibit D-1 hereto.

10

        "Officer's Certificate" means, as applied to any
corporation, a certificate executed on behalf of such corporation by its
Chairman of the Board (if an officer), its President, any Vice President of such
corporation, its Chief Financial Officer, its Treasurer or any Assistant
Treasurer of such corporation.

        "Other Currency Notice" has the meaning specified in Section
2.03.

        "Other Currency Obligation" has the meaning specified in
Section 7.11.

        "Participating Member States" means those members of the
European Union from time to time which adopt a single, shared currency in the
Third Stage.

"PBGC" means the Pension Benefit Guaranty Corporation
created by Section 4002(a) of ERISA or any successor thereto.

        "Pension Plan" means any plan (other than a Multiemployer
Plan) described in Section 4021(a) of ERISA and not excluded pursuant to Section
4021(b) thereof, which may be, is or has been established or maintained, or to
which contributions may be, are or have been made by the Company or any of its
ERISA Affiliates or as to which the Company would be considered as a "contributing
sponsor" for purposes of Title IV of ERISA at any relevant time.

        "Permitted Encumbrances" means:

        (i)     Liens for taxes,
    assessments or governmental charges or claims the payment of which is not at
    the time required by Section 5.03;

        (ii)     Statutory Liens of
    landlords and Liens of carriers, warehousemen, mechanics, materialmen and
    other liens imposed by law incurred in the ordinary course of business for
    sums not yet delinquent or being contested in good faith, if such reserve or
    other appropriate provision, if any, as shall be required by generally
    accepted accounting principles then in effect, shall have been made therefor;

        (iii)     Liens (other than
    any Lien imposed by ERISA) incurred or deposits made in the ordinary course
    of business in connection with workers' compensation, unemployment
    insurance and other types of social security, or to secure the performance
    of tenders, statutory obligations, bids, leases, government contracts,
    performance and return-of-money bonds and other similar
    obligations (exclusive of obligations for the payment of borrowed money);

        (iv)     Any attachment or
    judgment Lien individually or in the aggregate not in excess of $100,000,000
    unless the judgment it secures shall, within 30 days after the entry
    thereof, not have been discharged or

  
    11

  

    execution thereof stayed pending appeal, or shall not have been
    discharged within 30 days after the expiration of any such stay;

         (v)     Leases or subleases
    granted to others not interfering in any material respect with the business
    of the Company or any of its Subsidiaries;

        (vi)     Easements,
    rights-of-way, restrictions, minor defects or irregularities
    in title and other similar charges or encumbrances not interfering in any
    material respect with the ordinary conduct of the business of the Company or
    any of its Subsidiaries;

        (vii)     Any interest or
    title of a lessor under any lease;

        (viii)     Liens arising
    from UCC financing statements regarding leases; and

        (ix)     Liens in favor of
    customs and revenue authorities arising as a matter of law to secure payment
    of customs duties in connection with the importation of goods incurred in
    the ordinary course of business.

        "Person" means and includes natural persons, corporations,
limited partnerships, general partnerships, joint stock companies, joint
ventures, associations, companies, trusts, banks, trust companies, land trusts,
business trusts or other organizations, whether or not legal entities, and any
Governmental Authority.

        "Potential Event of Default" means a condition or event
which, after notice or lapse of time or both, would constitute an Event of
Default if that condition or event were not cured or removed within any
applicable grace or cure period.

        "Pricing Schedule" means the Pricing Schedule attached
hereto.

        "Prime Rate" shall mean the rate which JPMorgan Chase
announces from time to time as its prime rate, as in effect from time to time.
The Prime Rate is a reference rate and does not necessarily represent the lowest
or best rate actually charged to any customer. JPMorgan Chase may make
commercial loans or other loans at rates of interest at, above or below the
Prime Rate.

        "Pro Rata Share or pro rata Share" means, when
used with reference to any Bank and any described aggregate or total amount, the
percentage designated as such Bank's Pro Rata Share set forth under the
name of such Bank on the applicable signature page of this Agreement, as such pro
rata Share may be adjusted pursuant to the terms of this Agreement.

12

        "Redenominate", "Redenomination" and "Redenominated"
each refers to redenomination of any Loan in an Alternative Currency into
Dollars or any other Alternative Currency pursuant to Sections 2.12(m) and 7.11.

        "Reference Banks" means JPMorgan Chase and Citibank, N.A.

        "Regulation D" means Regulation D of the Board as from time
to time in effect and any successor to all or a portion thereof establishing
reserve requirements.

        "Reimbursement Obligation" has the meaning specified in
Section 2.15(d).

        "Reportable Event" means a "reportable event"
described in Section 4043(b) of ERISA or in the regulations thereunder notice of
which to PBGC is required within 30 days after the occurrence thereof, or
receipt of a notice of withdrawal liability with respect to a Multiemployer Plan
pursuant to Section 4204 of ERISA.

        "Required Banks" means, as at any time any determination
thereof is to be made, the Banks holding more than 50% of the Total Commitment
or, if no Commitments are in effect, more than 50% of the Total Outstanding
Amount.

        "Restricted Subsidiary" means each Subsidiary (or a group of
Subsidiaries that would constitute a Restricted Subsidiary if consolidated and
which are engaged in the same or related lines of business) of the Company now
existing or hereafter acquired or formed by the Company which (x) for the most
recent fiscal year of the Company, accounted for more than 5% of the
consolidated revenues of the Company and its Subsidiaries, or (y) as at the end
of such fiscal year, was the owner of more than 5% of the consolidated assets of
the Company and its Subsidiaries. For purposes of this definition, the proviso
to the definition of Subsidiary shall not be applicable.

        "Securities Act" means the Securities Act of 1933, as from
time to time amended, and any successor statutes.

        "Specified Currency" has the meaning specified in Section
10.17 of this Agreement.

        "Subsidiary" means, in respect to any Person, any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of such Person or a combination
thereof; provided, however, that (except for purposes of provisions of this
Agreement relating to

13

Subsidiary Borrowers) no Finance Company or any Subsidiary of any Finance
Company shall be treated as a Subsidiary of the Company.

        "Subsidiary Borrower" means any Subsidiary of the Company
designated as such in writing by the Company by 5 Business Days' written
notice to the Agent and the Banks; provided that such Subsidiary shall
enter into an Assumption Agreement in the form annexed hereto as Exhibit G
appropriately completed and that no Loan shall be made to such Subsidiary and no
Letter of Credit shall be issued upon the request of such Subsidiary until
Section 3.03 has been complied with as to such Subsidiary.

        "Syndicated Loan" means a Loan which is made as part of a
Borrowing, is made collectively by the Banks based on each Bank's Pro
Rata Share of such Loan, is made as either a Base Rate Loan or a Eurocurrency
Rate Loan and is requested pursuant to a Notice of Syndicated Borrowing.

        "Syndication Agent" has the meaning assigned to that term in
the introduction to this Agreement.

        "Termination Date" means March 28, 2010, or such later date
to which the Termination Date then in effect may be extended pursuant to Section
2.01(d), or if any such day is not a Business Day, the next preceding Business
Day.

        "Termination Event" means (i) a Reportable Event with
respect to any Pension Plan, or (ii) the withdrawal of the Company 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 (including any such
notice with respect to a Pension Plan amendment referred to in Section 4041(e)
of ERISA), or (iv) the institution of proceedings to terminate a Pension Plan by
the PBGC, or (v) any other event or condition which, to the best knowledge of
the Company, would constitute grounds under Section 4042(a) of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan.

        "Textron Affiliate," as applied to the Company, means any
Person or Persons directly or indirectly controlling the Company. For purposes
of this definition, controlling, as applied to the Company, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of the Company, whether through the
ownership of voting securities or by contract or otherwise. Neither any Bank nor
any parent of any Bank nor any Subsidiary of any such Bank or parent shall be
treated as a Textron Affiliate.

        "Textron Affiliate Amount" means, as at any date of
determination, the then aggregate outstanding amount of all loans and/or
advances to any Textron Affiliate from the Company or any Subsidiary of the
Company (without giving effect to the proviso to the definition of Subsidiary).

14

        "Textron Manufacturing" means the Company and any Subsidiary
of the Company that is not a Finance Company.

        "Third Stage" means the third stage of European economic and
monetary union pursuant to the Treaty on European Union.

        "Total Commitment" means, as at any date of determination,
the aggregate Commitments of all Banks then in effect (as such Commitments may
be reduced from time to time pursuant to Section 2.10(a) hereof). The original
amount of the Total Commitment is $1,250,000,000.

        "Total Outstanding Amount" means, at any time, the sum of (i)
the aggregate outstanding principal amount of the Loans (including both
Syndicated Loans and Competitive Bid Loans), denominated in Dollars together
with the Currency Equivalent in Dollars of all Loans denominated in Alternative
Currencies, 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.

        "2002 Credit Agreement" has the meaning assigned to that
term in Section 3.01(d).

        "2003 Credit Agreement" has the meaning assigned to that
term in Section 3.01(e).

        "Type" means, in respect of any Syndicated Loan, any type of
Syndicated Loan, i.e., either a Base Rate Loan or a Eurocurrency Rate
Loan.

        "U.S. LIBOR" means, with respect to any Interest Rate
Determination Date for any Loans denominated in Dollars, an interest rate per
annum equal to the rate that is set forth on page 3750 of the Telerate Service
(or any other page that may replace such page from time to time) as of 11:00
A.M. (London time) on such Interest Rate Determination Date for Dollar deposits
comparable in amount to the aggregate principal amount of such Dollar
denominated Loans and having a tenor equal to the duration of the applicable
Interest Period.

        "U.S. Subsidiary" means any Subsidiary of the Company that
is organized under the laws of any state of the United States of America or the
District of Columbia.

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

        Section 1.02. 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

15

required to be delivered hereunder shall be prepared in accordance with GAAP,
applied on a basis consistent (except for changes concurred in by the
Company's independent public accountants) with the most recent audited
consolidated financial statements of the Company and its Consolidated
Subsidiaries delivered to the Banks; provided that, if the Company
notifies the Administrative Agent that the Company wishes to amend any covenant
in Article 6 to eliminate the effect of any change in GAAP on the operation of
such covenant (or if the Administrative Agent notifies the Company that the
Required Banks wish to amend Article 6 for such purpose), then the
Company's compliance with such covenant shall be determined on the basis
of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in
a manner satisfactory to the Company and the Required Banks; provided further
that the implementation of Statement of Financial Accounting Standards No.
142 shall not be deemed a change in GAAP for purposes of the preceding proviso.

        Section 1.03. Currency Equivalents. For
purposes of determining in any currency any amount outstanding in another
currency, the Currency Equivalent of such second currency on the date of
determination shall be used. If any reference to any Loan or other amount herein
would include amounts in Dollars and in one or more Alternative Currencies or to
an amount in Dollars that in fact is in one or more Alternative Currencies, such
reference (whether or not it expressly so provides) shall be deemed to refer, to
the extent it includes an amount in any Alternative Currency, to the Currency
Equivalent in Dollars of such amount at the time of determination.

Article 2

Amounts And Terms Of Commitments And Loans

        Section 2.01.
Commitments.

        (a) Loans. Subject to the terms and conditions
of this Agreement and in reliance upon the representations and warranties of
each Borrower herein set forth, each Bank hereby severally agrees to lend to the
Borrowers from time to time during the period from and including the Effective
Date to but not including the Termination Date its pro rata Share of the
Total Commitment. Each Bank's Commitment and the Total Commitment shall
expire in full on the Termination Date.

        Amounts borrowed under this Section 2.01(a) may, subject to the limitations
set forth in this Agreement, be repaid and, up to but excluding the Termination
Date, be reborrowed. The Syndicated Loans and all other amounts owed hereunder
with respect to the Syndicated Loans shall be paid in full no later than the
Termination Date.

16

        Borrowings on any Funding Date with respect to a Syndicated Loan under this
Section 2.01(a) shall be in Dollars, or in the requested Alternative Currency,
in an aggregate minimum amount of $10,000,000 (or the Currency Equivalent
thereof in any Alternative Currency) and integral multiples, in the case of
Loans denominated in Dollars, of $1,000,000 in excess of that amount and, in the
case of Loans denominated in an Alternative Currency, in integral multiples of
1,000,000 units or, in either case, if less, the unutilized amount of the Total
Commitment. Notwithstanding the foregoing, (i) no Syndicated Loan may be
borrowed by any Borrower if the Total Outstanding Amount, after giving effect to
the Loan so requested and all other Loans then requested which have not yet been
funded, shall exceed the Total Commitment then in effect and (ii) no Syndicated
Loan may be borrowed by any Borrower in an Alternative Currency if the Currency
Equivalent in Dollars of the aggregate principal amount of all Syndicated Loans
outstanding hereunder denominated in Alternative Currencies, after giving effect
to the Loan so requested and all other Loans then requested which have not yet
been funded, shall exceed $500,000,000.

        For purposes of determining (A) whether the making of any Borrowing will
cause the outstanding aggregate principal amount of Loans denominated in Dollars
together with the Currency Equivalent in Dollars of all Loans denominated in
Alternative Currencies to exceed the Total Commitment or (B) whether the making
of any Loan in an Alternative Currency will cause the Currency Equivalent in
Dollars of the outstanding aggregate principal amount of Loans denominated in
Alternative Currencies to exceed $500,000,000, the Administrative Agent will
make such determinations three (3) Business Days in advance of a proposed
Borrowing consisting of Eurocurrency Rate Loans and/or Competitive Bid LIBOR
Loans and one (1) Business Day in advance of a proposed Borrowing consisting of
Base Rate Loans and/or Competitive Bid Absolute Rate Loans calculating the
Currency Equivalent of any Loan denominated in an Alternative Currency for
purposes of such a determination at the rate of exchange in effect on such date.

        (b) Notice of Syndicated Borrowing. Subject to
Section 2.01(a), whenever any Borrower desires to borrow under this Section
2.01, it shall deliver to the Administrative Agent a Notice of Syndicated
Borrowing (which may be telephonic, confirmed promptly in writing) no later than
10:30 A.M. (New York time) (x) in the case of a Base Rate Loan, on the proposed
Funding Date, (y) in the case of a Eurocurrency Rate Loan denominated in
Dollars, three Business Days in advance of the proposed Funding Date and (z) in
the case of a Eurocurrency Rate Loan denominated in an Alternative Currency,
four Business Days in advance of the proposed Funding Date. The Notice of
Syndicated Borrowing shall specify (i) the proposed Funding Date (which shall be
a Business Day), (ii) the amount of the proposed Loans, (iii) whether such Loans
are to consist of Base Rate Loans or Eurocurrency Rate Loans or a combination
thereof and the amounts thereof, (iv) the currency of such Loans, (v) the
Account of the

17

Borrower for such Loans, (vi) the Interest Period(s) therefor and (vii)
the aggregate principal amount of Loans outstanding in Dollars and in each
Alternative Currency, after giving effect to the proposed Loan and all other
Loans then requested which have not yet been funded.

        Neither the Administrative Agent nor any Bank shall incur any liability to
any Borrower in acting upon any telephonic notice referred to above which the
Administrative Agent believes in good faith to have been given by a duly
authorized officer or other person authorized to borrow on behalf of such
Borrower or for otherwise acting in good faith under this Section 2.01(b) a nd,
upon funding of Syndicated Loans by the Banks in accordance with this Agreement
pursuant to any telephonic notice, such Borrower shall have borrowed such Loans
hereunder.

        Except as provided in Sections 2.01(c) and 2.12(d), a Notice of Syndicated
Borrowing for a Eurocurrency Rate Loan (or telephonic notice in lieu thereof)
shall be irrevocable on and after the related Interest Rate Determination Date,
and the applicable Borrower shall be bound to make a borrowing in accordance
therewith.

        (c) Disbursement of Funds. Promptly after
receipt of a Notice of Syndicated Borrowing pursuant to Section 2.01(b) (or
telephonic notice in lieu thereof) with respect to a Syndicated Loan, the
Administrative Agent shall notify each Bank of the proposed borrowing. Each Bank
shall make its pro rata Share of the amount of such Loans available to
the Administrative Agent in the applicable currency by causing funds in such
amount to be credited to the Account of the Administrative Agent in same day
funds (or, in the case of any Alternative Currency, in such funds as may then be
customary for the settlement of international transactions in such Alternative
Currency) not later than 12:00 Noon (local time in the city in which the
Administrative Agent's Account is located) on the Funding Date. Such
Loans of a Bank shall be equal to such Bank's pro rata Share of
the aggregate amount of all such Loans requested by the applicable Borrower
pursuant to the applicable Notice of Syndicated Borrowing. Upon satisfaction or
waiver of the conditions precedent specified in Section 3.01 (in the case of the
Initial Loans) and Sections 3.02 and, if applicable, 3.03 (in the case of all
Loans) the Administrative Agent shall make the proceeds of such Loans available
to the applicable Borrower by causing an amount of funds equal to the proceeds
of all such Loans received by the Administrative Agent to be credited to the
Account of such Borrower in same day funds (or, in the case of any Alternative
Currency, in such funds as may then be customary for the settlement of
international transactions in such Alternative Currency).

        In the case of a proposed Borrowing consisting of Eurocurrency Rate Loans in
an Alternative Currency, each Bank shall be obligated (subject to the
satisfaction of all conditions precedent as specified in Article 3 of this
Agreement)

18

to make its Eurocurrency Rate Loan in the requested Alternative Currency
unless such Bank shall deliver to the Administrative Agent not later than 11:00
A.M. (New York City time) on the third Business Day before the requested date of
such Borrowing a notice that it is unable to fund its pro rata Share of
such Borrowing in such currency, which notice shall be notified immediately by
the Administrative Agent to the requesting Borrower. If any Bank shall have so
provided to the Administrative Agent such notice, the Administrative Agent shall
promptly notify the requesting Borrower and each Bank that a Bank has provided
such notice, whereupon such Borrower may, by notice to the Administrative Agent
not later than 2:00 P.M. (New York City time) on the third Business Day before
the requested date of such Eurocurrency Rate Loan, withdraw the Notice of
Borrowing relating to such Borrowing. If the requesting Borrower does so
withdraw such Notice of Borrowing, the Borrowing requested in such Notice of
Borrowing shall not occur and the Administrative Agent shall promptly so notify
each Bank. If the requesting Borrower does not so withdraw such Notice of
Borrowing, the Administrative Agent shall promptly so notify each Bank and such
Notice of Borrowing shall be deemed to be a Notice of Borrowing which requests a
Eurocurrency Rate Loan denominated in Dollars in an aggregate amount equal to
the Currency Equivalent in Dollars of the amount of such Alternative Currency
specified in such Notice of Borrowing; and in such notice by the Administrative
Agent to each Bank the Administrative Agent shall state such aggregate amount of
Dollars and such Bank's pro rata Share of such Eurocurrency Rate
Loan.

        Except as set forth in the immediately preceding paragraph, unless the
Administrative Agent shall have been notified by any Bank (which notice may be
telephonic, confirmed promptly in writing) prior to any Funding Date in respect
of any Syndicated Loan that such Bank does not intend to make available to the
Administrative Agent such pro rata Share of such Loan on such Funding
Date, the Administrative Agent may assume that such Bank has made such amount
available to the Administrative Agent on such Funding Date and the
Administrative Agent in its sole discretion may, but shall not be obligated to,
make available to the applicable Borrower a corresponding amount on such Funding
Date. If such corresponding amount is not in fact made available to the
Administrative Agent by such Bank, the Administrative Agent shall be entitled to
recover such corresponding amount on prompt demand from such Bank together with
interest thereon, for each day from such Funding Date until the date such amount
is paid to the Administrative Agent at the customary rate set by the
Administrative Agent for the correction of errors among banks for three Business
Days and thereafter at the Base Rate. If such Bank does not pay such
corresponding amount forthwith upon the Administrative Agent's demand
therefor, the Administrative Agent shall promptly notify the applicable Borrower
and such Borrower shall immediately pay such corresponding amount to the
Administrative Agent. Nothing in this Section 2.01(c) shall be deemed to relieve
any Bank from its obligation to fulfill its Commitment hereunder or to prejudice

19

any rights which such Borrower may have against any Bank as a result of any
default by such Bank hereunder.

        (d) Extension of Commitments. 1) The
Commitments may be extended, if at the time no Potential Event of Default or
Event of Default has occurred and is continuing, in the manner and amount set
forth in this Section 2.01(d), for a period of one year measured from the
Termination Date then in effect. If the Company wishes to request an extension
of each Bank's Commitment, it shall give notice to that effect to the
Administrative Agent not less than 45 days and not more than 55 days prior to
the Termination Date then in effect, whereupon the Administrative Agent shall
promptly notify each of the Banks of such request. Each Bank will use its best
efforts to respond to such request, whether affirmatively or negatively, as it
may elect in its sole discretion, within 30 days of such request to the
Administrative Agent, but in any event no earlier than 30 days prior to the
Termination Date then in effect. If any Bank shall not have responded
affirmatively within such 30-day period, such Bank shall be deemed to
have rejected the Company's proposal to extend its Commitment, and only
the Commitments of those Banks which have responded affirmatively shall be
extended, subject to receipt by the Administrative Agent of counterparts of an
Extension Agreement in substantially the form of Exhibit H hereto (the "Extension
Agreement") duly completed and signed by the Company, the
Administrative Agent and all of the Banks which have responded affirmatively. No
extension of the Commitments pursuant to this Section 2.01(d) shall be legally
binding on any party hereto unless and until such Extension Agreement is so
executed and delivered by Banks having at least 66 2/3% of the
aggregate amount of the Commitments.

        (ii)        If
any Bank rejects, or is deemed to have rejected, the Borrower's proposal
to extend its Commitment, (A) this Agreement shall terminate on the Termination
Date then in effect with respect to such Bank, (B) the Borrower shall pay to
such Bank on such Termination Date any amounts due and payable to such Bank on
such date and (C) the Borrower may, if it so elects, designate a Person not
theretofore a Bank and acceptable to the Administrative Agent to become a Bank,
or agree with an existing Bank that such Bank's Commitment shall be
increased, provided that the aggregate amount of the Commitments
following any designation or agreement may not exceed the aggregate amount of
the Commitments on the date hereof. Upon execution and delivery by the Borrower
and such replacement Bank or other Person of an instrument of assumption in form
and amount satisfactory to the Administrative Agent and execution and delivery
of the Extension Agreement pursuant to Section 2.01(d)(i), such existing Bank
shall have a Commitment as therein set forth or such other Person shall become a
Bank with a Commitment as therein set forth and all the rights and obligations
of a Bank with such a Commitment hereunder.

20

        (iii)       The
Administrative Agent shall promptly notify the Banks of the effectiveness of
each extension of the Commitments pursuant to this Section 2.01(d).

        Section 2.02. Competitive Bid Loans. (a)
Subject to and upon the terms and conditions herein set forth, each Bank
severally agrees that any Borrower may incur a Competitive Bid Loan in Dollars
or in an Alternative Currency pursuant to a Notice of Competitive Bid Borrowing
from time to time on and after the Effective Date and prior to the date which is
the Business Day preceding the date which is 30 days prior to the Termination
Date, provided that the Total Outstanding Amount, after giving effect to
the Loan so requested and all other Loans then requested which have not yet been
funded, will not exceed the Total Commitment then in effect. The determination
required by the immediately preceding sentence shall be made by the
Administrative Agent in accordance with the last paragraph of Section 2.01(a).
Within the foregoing limits and subject to the conditions set forth in this
Agreement, Competitive Bid Loans may be repaid and reborrowed in accordance with
the provisions hereof. Competitive Bid Loans made on any Funding Date shall be
in Dollars, or in the requested Alternative Currency, in an aggregate minimum
amount of $10,000,000 (or the Currency Equivalent thereof in any Alternative
Currency) and in integral multiples in the case of Loans denominated in Dollars,
of $1,000,000 in excess of such amount and, in the case of Loans denominated in
an Alternative Currency, in integral multiples of 1,000,000 units.

        (b) Whenever the Company or a Subsidiary Borrower
desires to incur a Competitive Bid Loan, it shall (i) in the case of the
Company, deliver to the Administrative Agent and each Bank, and (ii) in the case
of a Subsidiary Borrower, deliver to the Company (which shall deliver to the
Administrative Agent and each Bank), a Notice of Competitive Bid Borrowing, such
notice to specify in each case (A) the date of the proposed Competitive Bid
Loan(s), (B) the aggregate amount of the proposed Competitive Bid Loan(s), (C)
the maturity date for repayment of each Competitive Bid Loan to be made as part
of such Competitive Bid Loans (each of which maturity dates may not be later
than the Business Day prior to the Termination Date), (D) the currency of the
proposed Competitive Bid Loan(s) (which shall be Dollars or, in the case of a
LIBOR Auction, an Alternative Currency), (E) the Account of the Borrower for
such Loan(s), (F) the interest payment date or dates relating thereto, (G)
whether the Competitive Bid Loan(s) are to be Competitive Bid Absolute Rate
Loans or Competitive Bid LIBOR Loans, (H) the aggregate principal amount of
Loans outstanding in Dollars and in each Alternative Currency after giving
effect to the proposed Competitive Bid Loan(s) and all other Loans then
requested which have not yet been funded and (I) any other terms to be
applicable to such Competitive Bid Loan(s). A Notice of Competitive Bid
Borrowing must be received no later than 11:00 A.M. (New York City time) on (i)
the fifth Business Day prior to the date of the Borrowing proposed therein, in
the case of a LIBOR Auction or (ii) the

21

Business Day next preceding the date of Borrowing proposed therein, in the
case of an Absolute Rate Auction. No Notice of Competitive Bid Borrowing shall
be given earlier than three Business Days subsequent to the making of the last
Competitive Bid Loan.

        (c) Each Bank shall, if, in its sole discretion, it
elects to do so, irrevocably offer to make one or more Competitive Bid Loans to
the applicable Borrower as part of such proposed Competitive Bid Loan(s) by
notifying the Company, not later than (i) 2:00 P.M. (New York City time) on the
fourth Business Day prior to the proposed date of Borrowing, in the case of a
LIBOR Auction and (ii) 10:00 A.M. (New York City time) on the proposed date of
Borrowing, in the case of an Absolute Rate Auction (each such date being
hereinafter referred to as a "Reply Date"), of (i) the minimum
amount and maximum amount of each Competitive Bid Loan which such Bank would be
willing to make as part of such proposed Competitive Bid Loan(s) (which amounts
may, subject to the provisions of Section 2.01(a), exceed such Bank's
Commitment); provided that the minimum amount of any Bank's bid
shall be at least $5,000,000 (or, in the case of a Competitive Bid Loan
denominated in an Alternative Currency, the Currency Equivalent thereof in such
Alternative Currency), (ii) in the case of a LIBOR Auction, the margin above or
below the applicable Eurocurrency Rate (the "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 and (iii) in the case of an Absolute Rate Auction, the rate of interest per
annum (specified to the nearest 1/10,000th of 1%) (the "Absolute Rate")
offered for each such Competitive Bid Loan. If any Bank shall not notify the
Company, before 2:00 P.M. or 10:00 a.m. (New York City time), as the case may
be, on the Reply Date of its offer of a Competitive Bid Loan, such Bank shall be
deemed not to be making an offer with respect to such Competitive Bid Loan.

        (d) The Company shall, in turn, before 11:00 A.M. (New
York City time) on (i) the third Business Day prior to the proposed date of
Borrowing, in the case of a LIBOR Auction or (ii) the Reply Date, in the case of
an Absolute Rate Auction either

  
            (A) cancel such Competitive Bid Loan by giving the Administrative Agent
    and each Bank notice to that effect (whereupon such Competitive Bid Loan
    will not be made), or

            (B) accept one or more of the offers made by any Bank or Banks pursuant
    to Section 2.02(c), in its sole discretion, by giving notice to the
    Administrative Agent and such Bank of the amount of each Competitive Bid
    Loan (which amount shall be equal to or greater than the minimum amount, and
    equal to or less than the maximum amount, notified to the Company by such
    Bank or Banks for such Competitive Bid Loan

    23

    pursuant to Section 2.02(c)) to be made by such Bank as part of such
    Competitive Bid Loan, and reject any remaining offers made by Banks pursuant
    to Section 2.02(c) above by giving the Administrative Agent and such Bank
    notice to that effect.

  

        (e) On the Funding Date of each Competitive Bid Loan, each Bank required to
participate therein will make available its share of such Competitive Bid Loan
(as specified in Section 2.02(d)) by causing funds in such amount to be credited
to the Account of the Borrower in same day funds (or, in the case of any
Alternative Currency, in such funds as may then be customary for the settlement
of international transactions in such Alternative Currency) not later than 12:00
Noon (local time in the city in which the Borrower's Account is
located).

        (f) Each Competitive Bid Loan shall be payable on the maturity date specified
in the Notice of Competitive Bid Borrowing relating to such Competitive Bid
Loan.

        Section 2.03. Notices of
Other Currencies. At any time, and from time to time, any Borrower may
request that a lawful currency, in addition to British Pounds Sterling, Canadian
Dollars and Euros, which is freely transferable and freely convertible into
Dollars be made an "Alternative Currency." Any such request shall be
made by such Borrower to the Administrative Agent and shall specify the currency
or currencies to be considered for addition to the list of Alternative
Currencies (each such request being an "Other Currency Notice").
Upon receipt of an Other Currency Notice, the Administrative Agent shall give
each Bank prompt notice thereof by telecopier (the "Agent's
Other Currency Notice"), which notice shall be in no event later than
one Business Day after receipt of such Other Currency Notice. Within ten
Business Days of receipt of the Agent's Other Currency Notice, each Bank
shall notify the Administrative Agent whether it consents to the addition of
such other currency or currencies to the list of Alternative Currencies. If any
Bank does not respond to an Agent's Other Currency Notice, it shall be
deemed not to have consented to any such addition. At the end of such ten
Business Day period, the Administrative Agent shall notify the requesting
Borrower and each Bank as to whether all the Banks have consented to the
proposed addition and, in the event that all of the Banks have so consented, as
to the applicable page on the Telerate Service from which the Eurocurrency Rate
for such currency shall be calculated. If all of the Banks have so consented,
such currency or currencies shall be considered an "Alternative
Currency" for purposes of this Agreement; otherwise, it or they shall not.
No Borrower shall request any Loan in any currency which is the subject of an
Other Currency Notice until such currency has been made an Alternative Currency
pursuant to this Section.

        Section 2.04. Substitution of Euro for National
Currency. If any Alternative Currency is replaced by the Euro, unless
otherwise agreed by the

23

Company, the Administrative Agent and the Banks, the Euro may be tendered in
satisfaction of any obligation denominated in such Alternative Currency at the
conversion rate specified in, or otherwise calculated in accordance with, the
regulations adopted by the Council of the European Union relating to the Euro.
No replacement of an Alternative Currency by the Euro shall discharge, excuse or
otherwise affect the performance of any obligation of the Borrower under this
Agreement.

        Section 2.05. Notices of Conversion/Continuation. (a)
Subject to the provisions of Section 2.12 hereof, the applicable Borrower shall
have the option (i) to convert at any time all or any part of its outstanding
Base Rate Loans in an aggregate minimum amount of $10,000,000 and integral
multiples of $5,000,000 in excess of that amount, to Eurocurrency Rate Loans
denominated in Dollars and (ii) upon the expiration of any Interest Period
applicable to outstanding Eurocurrency Rate Loans, to continue all or any
portion of such Eurocurrency Rate Loans in an aggregate minimum amount of
$10,000,000 (or the Currency Equivalent thereof in any Alternative Currency) and
integral multiples of, in the case of Loans denominated in Dollars, $5,000,000
in excess of that amount and, in the case of Loans denominated in an Alternative
Currency, in integral multiples of 5,000,000 units as Eurocurrency Rate Loans.
The succeeding Interest Period(s) of such converted or continued Eurocurrency
Rate Loan shall commence on the date of conversion in the case of clause (i)
above and on the last day of the Interest Period of the Eurocurrency Rate Loans
to be continued in the case of clause (ii) above.

The applicable Borrower shall deliver a Notice of Conversion/Continuation to
the Administrative Agent no later than 11:00 A.M. (New York City time) at least
three Business Days, in the case of a conversion into or continuation of
Eurocurrency Rate Loans denominated in Dollars and at least four Business Days,
in the case of a continuation of Eurocurrency Rate Loans denominated in an
Alternative Currency, in advance of the proposed conversion/continuation date. A
Notice of Conversion/Continuation shall specify (i) the proposed
conversion/continuation date (which shall be a Business Day), (ii) the amount of
the Syndicated Loan to be converted/continued, (iii) the nature of the proposed
conversion/continuation and (iv) the requested Interest Period.

Except as provided in Section 2.12(d) hereof, a Notice of
Conversion/Continuation for conversion to, or continuation of, a Eurocurrency
Rate Loan shall be irrevocable on or after the related Interest Rate
Determination Date, and the applicable Borrower shall be bound to convert or
continue in accordance therewith.

        (b) Unless the applicable Borrower shall have given the Administrative Agent
(x) a timely Notice of Conversion/Continuation in accordance with the provisions
of Section 2.05(a) hereof with respect to Eurocurrency Rate Loans

24

outstanding or (y) written notice of such Borrower's intent to prepay
Eurocurrency Rate Loans, furnished not later than 11:00 A.M. (New York City
time) on the fourth Business Day prior to the last day of the Interest Period
with respect to such Eurocurrency Rate Loans, the applicable Borrower shall be
deemed to have requested that such Eurocurrency Rate Loans be continued for an
additional Interest Period of one month.

        Section 2.06. Registry. (a) The Administrative
Agent shall maintain a register (the "Register") on which it
will record the Commitment of each Bank, each Loan made by such Bank to each
Borrower, each repayment of any Loan made by such Bank, the stated amount of
each Letter of Credit and the principal amount of each Bank's
outstanding Letter of Credit Liabilities. Any such recordation by the
Administrative Agent on the Register shall constitute prima facie
evidence thereof, absent manifest error. Each Bank shall record on its internal
records (including computerized systems) the foregoing information as to its own
Commitment, Loans and Letter of Credit Liabilities. Failure to make any such
recordation, or any error in such recordation, shall not affect each
Borrower's obligations hereunder in respect of the Loans made to such
Borrower and in respect of the Letters of Credit issued upon the request of such
Borrower.

        (b) Each Borrower hereby agrees that, upon the request
of the Administrative Agent if so instructed by any Bank at any time, such
Bank's Loans shall be evidenced by a promissory note of such Borrower
substantially in the form of Exhibit A hereto (a "Note"). The
Note issued to each Bank pursuant to this Section 2.06(b) shall (i) be payable
to the order of such Bank, (ii) be payable in the principal amount of the
denominated currency of the outstanding Loans evidenced thereby, (iii) provide
that all Loans then outstanding shall be repaid on the date as provided herein,
(iv) bear interest as provided in the appropriate clause of Section 2.08 hereof,
(v) be entitled to the benefits of this Agreement, and (vi)have attached thereto
a schedule (a "Loans and Principal Payments Schedule")
substantially in the form of the Schedule to Exhibit A hereto. At the time of
the making of each Loan or principal payment in respect thereof, each Bank may,
and is hereby authorized to, make a notation on the Loans and Principal Payments
Schedule of the date and the amount of such Loan or payment, as the case may be.
Notwithstanding the foregoing, the failure to make a notation with respect to
the making of any Loan, shall not limit or otherwise affect the obligation of
the Borrower hereunder or under the applicable Note with respect to such Loan
and payments of principal by the Borrower shall not be affected by the failure
to make a notation thereof on the appropriate Loans and Principal Payments
Schedule.

        Section 2.07. Pro Rata Borrowings. The
Syndicated Loans comprising each Borrowing under this Agreement shall be made by
the Banks simultaneously and each Bank's Syndicated Loan shall be equal
to such Bank's pro rata Share of such Borrowing. It is understood
that no Bank shall be responsible for any default by any other Bank in its
obligation to make a Loan hereunder and that

25

each Bank shall be obligated to make the Loans provided to be made by it
hereunder subject to the terms hereof, regardless of the failure of any other
Bank to fulfill its commitment to make Loans hereunder. If, as a result of an
error in the determination of any Bank's pro rata Share of a
Borrowing with respect to a Syndicated Loan, a Bank makes a Syndicated Loan in
excess of its pro rata Share (an "Erroneous Loan") the
applicable Borrower shall, upon the request of the Administrative Agent, repay a
portion of such Syndicated Loan equal to such excess or, within two days of
receiving written notice of such error, correct such error by effecting a
Borrowing of Syndicated Loans having a comparable maturity to the then remaining
maturity of the Erroneous Loan (a "Correcting Loan") and
allocating the Correcting Loan among the Banks such that, after such allocation,
the sum of the principal amounts of the Erroneous Loan and the Correcting Loan
held by each Bank shall represent such Bank's pro rata Share of
the sum of the aggregate principal amounts of the Erroneous Loans and the
Correcting Loans held by all Banks; provided, however, that the
Borrower may not incur Correcting Loans if, after giving effect to such
Correcting Loans, the outstanding Syndicated Loans of any Bank shall exceed such
Bank's Commitment or if the aggregate principal amount of all Loans
outstanding would exceed the Total Commitment then in effect. Borrowings of
Correcting Loans shall be subject to all of the terms and conditions of
Borrowings hereunder.

        Section 2.08. Interest. (a)
Rate of Interest on Loans.

  
        (i) Each Borrower agrees to pay interest in respect of the unpaid
    principal amount of each Syndicated Loan made to it from and including the
    date made to but not including the date repaid.

    
                (A) Each Eurocurrency Rate Loan shall bear
        interest on the unpaid principal amount thereof for the applicable
        Interest Period at an interest rate per annum equal to the sum of the
        Eurocurrency Margin plus the applicable Eurocurrency Rate.

                (B) Each Base Rate Loan shall bear interest on the unpaid principal
        thereof at an interest rate per annum equal to the applicable Base Rate.

    

        (ii) Each Borrower agrees to pay interest in respect of the unpaid
    principal amount of each Competitive Bid Loan made to it from and including
    the date made to but not including the date repaid.

    
                (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 Eurocurrency Rate
        for such Interest Period plus (or

      
        26

      

        minus) the Bid Margin quoted by the Bank making such Loan in
        accordance with Section 2.02(b).

                (B) 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 Absolute Rate
        quoted by the Bank making such Loan in accordance with Section 2.02(b).

    

  

        The Administrative Agent shall determine each interest rate applicable to the
Loans hereunder in accordance with Section 2.12(a). The Administrative Agent
shall give prompt notice to the applicable Borrower and Banks of each rate of
interest so determined, and its determination thereof shall be conclusive in the
absence of manifest error.

        (b) Interest Periods. In connection with each
Eurocurrency Rate Loan and Competitive Bid Loan, the applicable Borrower shall
elect an interest period (each an "Interest Period") to be
applicable to such Eurocurrency Rate Loan or Competitive Bid Loan, as the case
may be. The Interest Period (i) with respect to each Eurocurrency Rate Loan
shall be either a one, two, three or six month period, (ii) with respect to each
Competitive Bid LIBOR Loan shall be a whole number of months as specified by the
Borrower in the Notice of Competitive Bid Borrowing and (iii) with respect to
each Competitive Bid Absolute Rate Loan shall be such number of days (but not
less than seven days) as specified by the Borrower in the Notice of Competitive
Bid Borrowing; provided that:

            (A) the Interest Period for each Eurocurrency Rate Loan and Competitive
    Bid Loan shall commence on the date of such Loan;

            (B) if an Interest Period would otherwise expire on a day which is not a
    Business Day, such Interest Period shall expire on the next succeeding
    Business Day; provided that if any Interest Period would otherwise
    expire on a day which is not a Business Day but is a day of the month after
    which no further Business Day occurs in such month, such Interest Period
    shall expire on the next preceding Business Day;

            (C) any Interest Period which begins on the last 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 end on
    the last Business Day of such ending calendar month;

            (D) no Interest Period shall extend beyond the Termination Date; and

            (E) there shall be no more than 30 Interest Periods outstanding at any
    time.

27

        (c) Interest Payments. Interest shall be payable on each (i)
Syndicated Loan in arrears on each Interest Payment Date applicable to that
Loan, and (ii) Competitive Bid Loan, at such times as agreed to by the
applicable Borrower and the Bank making such Competitive Bid Loan (which shall
be the scheduled maturity date of such Loan if less than 180 days after the
making of such Loan), and in each case upon any prepayment of that Loan (to the
extent accrued on the amount being prepaid) and when due and payable (whether at
maturity, by acceleration or otherwise).

        (d) Computation of Interest. Interest on Eurocurrency Rate Loans
(other than Eurocurrency Rate Loans denominated in British Pounds Sterling)
shall be computed on the basis of a 360-day year and the actual number
of days elapsed in the period during which it accrues and interest on Base Rate
Loans and Eurocurrency Rate Loans denominated in British Pounds Sterling shall
be computed on the basis of a 365-day year and the actual number of days
elapsed in the period during which it accrues. Interest on a Competitive Bid
Loan shall be computed on the basis set forth in the applicable Notice of
Competitive Bid Borrowing. In computing interest on any Loan, the date of the
making of the Loan or, in the case of a Eurocurrency Rate Loan, the first day of
an Interest Period, as the case may be, shall be included and the date of
payment or the expiration of an Interest Period, as the case may be, shall be
excluded; provided that if a Loan is repaid on the same day on which it
is made, one day's interest shall be paid on that Loan.

        (e) Post-Maturity Interest. Any principal payments on the
Loans not paid when due and, to the extent permitted by applicable law, any
interest payment on the Loans not paid when due, in each case whether at stated
maturity, by notice of prepayment, by acceleration or otherwise, shall
thereafter bear interest payable upon demand at a rate per annum equal to the
sum of 2% plus the higher of (i) the rate of interest applicable to such Loans
or (ii) the rate of interest otherwise payable under this Agreement for Base
Rate Loans.

        Section 2.09.
Commissions and Fee. (a) Facility Fees.

            (i) The Company shall pay to the Administrative Agent for the account of
    the Banks a facility fee in Dollars at the Facility Fee Rate accrued from
    and including the Effective Date to but not including the Termination Date
    on the daily average aggregate amount of the Commitments (whether used or
    unused).

            (ii) Such facility fees shall be computed on the basis of a year of 360
    days and paid for the actual number of days elapsed. Such facility fees
    shall be paid quarterly in arrears on each March 31, June 30, September 30
    and December 31 and upon the date of termination of the Commitments in their
    entirety (and, if later, the date the Loans shall be

28

    repaid in their entirety). From the effective date of any termination or
    reduction of Commitments, such facility fees shall cease to accrue or be
    correspondingly reduced. If the Commitments are terminated in their entirety
    or reduced, facility fees accrued on the total Commitments, or accrued on
    the aggregate amount of the reduction of the Commitments (in the case of
    such a reduction), shall be payable on the effective date of such
    termination or reduction.

        (b) Letter of Credit Fees. The Company shall pay (i) to the
Administrative 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 Company and such Issuing Bank from time to time. Such letter
of credit fees shall be paid quarterly in arrears on each March 31, June 30,
September 30 and December 31 and upon the date of termination of the Commitments
in their entirety (and, if later, the date the Letter of Credit Liabilities
shall be reduced to zero).

        (c) Administrative Fees. The Company agrees to pay to the
Administrative Agent an annual fee (the "Administrative Fee")
in Dollars in an amount equal to the amount previously agreed to in writing by
the Company and the Administrative Agent. Such Administrative Fee shall be
payable quarterly in advance commencing on the date of this Agreement and on
each successive quarterly anniversary of such date, so long as any Loan or
Commitment is outstanding on such date; provided that if the Company
shall terminate the Commitments in their entirety pursuant to Section 2.12(a)
prior to the Termination Date, a pro rata portion of the Administrative
Fee relating to the period from the Termination Date to the end of the
applicable quarter shall be refundable.

        (d) Time of Payment. The Company shall make payment of each
Bank's facility and letter of credit fees and of the Administrative
Agent's Administrative Fee hereunder, not later than Noon (New York City
time) on the date when due in Dollars and in immediately available funds, to the
Administrative Agent at its New York Office. Upon receipt of any amount
representing facility or letter of credit fees paid pursuant to this Section
2.09, the Administrative Agent shall pay such amount to the Banks based upon
their respective pro rata Shares.

Section 2.10. Reductions
in Commitments; Repayments and Payments. (a) Reductions of Total
Commitment. After the Effective Date, the Company shall have the right, upon
at least three Business Days' prior irrevocable written

29

notice to the Administrative Agent, who will promptly notify the Banks
thereof, by telephone confirmed in writing, without premium or penalty, to
reduce or terminate the Total Commitment, in whole at any time or in part from
time to time, in minimum aggregate amounts of $10,000,000 (unless the Total
Commitment at such time is less than $10,000,000, in which case, in an amount
equal to the Total Commitment at such time) and, if such reduction is greater
than $10,000,000, in integral multiples of $5,000,000 in excess of such amount, provided
that (a) any such reduction of the Total Commitment shall apply to the
Commitment of each Bank in accordance with its pro rata Share of the
aggregate of such reduction, (b) any such reduction in the Total Commitment
shall be permanent (it being understood that nothing in this Section 2.10(a)
shall prevent an increase in the Commitments in accordance with Section
2.02(d)(ii)) and (c) after giving effect to any such reduction, the Total
Commitment shall equal or exceed the Total Outstanding Amount.

        (b) Voluntary Prepayments.

            (i) Subject, in the case of any Eurocurrency Rate Loan, to Section
    2.12(e), the applicable Borrower shall have the right to prepay any
    Syndicated Loan in whole at any time or in part from time to time without
    premium or penalty in an aggregate minimum amount of $10,000,000 (or the
    Currency Equivalent thereof) and integral multiples of $1,000,000 (or in the
    case of Loans denominated in an Alternative Currency, in integral multiples
    of 1,000,000 units) in excess of that amount or, if less, the outstanding
    principal amount of such Loan. The applicable Borrower shall give notice (by
    telex or telecopier, or by telephone (confirmed in writing promptly
    thereafter)) (which shall be irrevocable) to the Administrative Agent and
    each Bank of each proposed prepayment hereunder, (x) with respect
    to Base Rate Loans, not later than 10:30 A.M. on the Business Day preceding
    the day of the proposed repayment and (y) with respect to
    Eurocurrency Rate Loans, at least four Business Days prior to the day of the
    proposed prepayment, and in each case shall specify the proposed prepayment
    date (which shall be a Business Day), the aggregate principal amount of the
    proposed prepayment and what Loans are to be prepaid.

            (ii) No Borrower may prepay all or any portion of the principal amount of
    any Competitive Bid Loan prior to the maturity thereof.

        (c) Mandatory Repayments.

            (i) The Administrative Agent shall calculate the Total Outstanding Amount
    on (A) the date four Business Days in advance of any proposed Borrowing
    consisting of Eurocurrency Rate Loans or Competitive Bid LIBOR Loans, (B)
    the date one Business Day in advance

30

    of a proposed Borrowing consisting of Base Rate Loans or Competitive Bid
    Absolute Rate Loans, (C) the date of any Redenomination, (D) the last day of
    any Interest Period and (E) the last Business Day of any March, June,
    September or December. If the Total Outstanding Amount on any such date
    exceeds the amount equal to the product of 105% and the Total Commitment,
    the Borrowers jointly and severally shall immediately following notice from
    the Administrative Agent thereof prepay to the Administrative Agent the
    amount equal to the difference between the Total Outstanding Amount and the
    Total Commitment.

            (ii) Each Borrower shall repay to the relevant Bank (which shall promptly
    furnish notice thereof to the Administrative Agent) the unpaid principal
    amount of each Competitive Bid Loan made by such Bank hereunder on the
    maturity date with respect thereto and shall repay to the Administrative
    Agent the unpaid principal amount of each Syndicated Loan on the dates as
    provided herein, in each case, together with all accrued and unpaid interest
    thereon. Upon obtaining knowledge of an Event of Default, a Potential Event
    of Default, or any other default with respect to a Competitive Bid Loan, the
    Bank which made such Competitive Bid Loan shall notify the Administrative
    Agent thereof.

        (d) Interest on Principal Amounts Prepaid. All prepayments under this
Section 2.10 shall be made together with accrued and unpaid interest to the date
of such prepayment on the principal amount prepaid and any other amounts payable
pursuant to Section 2.12(e) of this Agreement.

        (e) Method and Place of Payment. Except as otherwise specifically
provided herein, all payments to be made by the applicable Borrower on account
of principal and interest on each Loan shall be made without setoff or
counterclaim by causing funds in an amount equal to each such payment to be
credited to the Account of the Administrative Agent, in the case of a Syndicated
Loan for the ratable account of each Bank, and to the Account of the relevant
Bank, in the case of a Competitive Bid Loan, in each case not later than 12:00
Noon (local time in the city in which the relevant Account is located) on the
date when due and shall be made in the currency in which such Loan is
denominated in same day funds (or, in the case of any Alternative Currency, in
such funds as may then be customary for the settlement of international
transactions in such Alternative Currency). Whenever any payment with respect to
any Loan shall be due on a day which is not a Business Day, the due date thereof
shall be extended to the next succeeding Business Day and, with respect to
payments of principal, interest shall be payable at the applicable rate during
such extension; provided, however, that with respect to
Eurocurrency Rate Loans and Competitive Bid LIBOR Loans, if the next succeeding
Business Day falls in another calendar month, such payments shall be made on the
next preceding Business Day. The Administrative Agent shall remit to each Bank
its pro rata Share of all such

31

payments received in collected funds by the Administrative Agent for the
account of such Bank in respect of which such payment is made. Such payments
shall be made to the Account of each Bank. Upon receipt of any principal payment
with respect to a Competitive Bid Loan, the receiving Bank shall promptly (and
in any event within one Business Day thereof) notify the Administrative Agent
with respect thereto.

        (f) Net Payments.

            (i) All payments by the applicable Borrower or the Company under this
    Agreement shall be made without setoff or counterclaim and (unless, in the
    case of Competitive Bid Loans only, otherwise agreed to between the Borrower
    and the Bank making any such Competitive Bid Loan), in such amounts as may
    be necessary in order that all such payments (after deduction or withholding
    for or on account of any present or future taxes, levies, imposts, duties or
    other charges of whatsoever nature imposed by any Governmental Authority,
    other than any tax on or measured by the net income of a Bank pursuant to
    the income tax laws of the United States or of the jurisdictions where such
    Bank's principal or Applicable Lending Office is located
    (collectively, "Taxes")) shall not be less than the amounts
    otherwise specified to be paid under this Agreement. If the applicable
    Borrower or the Company is required by law to make any deduction or
    withholding from any payment due hereunder, then the amount payable will be
    increased to such amount which, after deduction from such increased amount
    of all amounts required to be deducted or withheld therefrom, will not be
    less than the amount otherwise due and payable. Without prejudice to the
    foregoing, if any Bank or the Administrative Agent is required to make any
    payment on account of Taxes, the Company will, upon notification by the Bank
    or the Administrative Agent promptly indemnify such person against such
    Taxes, together with any interest, penalties and expenses payable or
    incurred in connection therewith. The Company shall also reimburse each
    Bank, upon the written request of such Bank, for taxes imposed on or
    measured by the net income of such Bank pursuant to the laws of the United
    States of America, any State or political subdivision thereof, or the
    jurisdiction in which the principal office or lending office of such Bank is
    located or under the laws of any political subdivision or taxing authority
    of any such jurisdiction as such Bank shall determine are payable by such
    Bank in respect of Taxes paid to or on behalf of such Bank pursuant to
    Article 2. For purposes of this Section, the term "Taxes" includes
    interest, penalties and expenses payable or incurred in connection
    therewith. A certificate as to any additional amounts payable to a Bank
    under this Section 2.10(f) submitted to the Company by such Bank shall,
    absent manifest error, be final, conclusive and binding for all purposes
    upon all parties hereto. With respect to each deduction or withholding for
    or on

  
    32

  

    account of any Taxes, the Company shall promptly furnish to each Bank
    such certificates, receipts and other documents as may be required (in the
    judgment of such Bank) to establish any tax credit to which such Bank may be
    entitled.

            (ii) Each Bank shall supply to the Company, within a reasonable period
    after the date of execution of this Agreement, executed copies of Internal
    Revenue Service Form W-8ECI or W-8BEN (which indicates that
    the respective Bank is entitled to receive interest exempt from United
    States withholding tax) or any successor Forms, and shall update such Forms
    as necessary in order to retain their effectiveness, to the extent each such
    Bank is legally entitled to execute and deliver either of such Forms.

            (iii) With respect to any Taxes which are paid by any Borrower in
    accordance with the provisions of this Section 2.10(f), each Bank receiving
    the benefits of such payments of Taxes hereby agrees to pay to such Borrower
    any amounts refunded to such Bank which such Bank determines in its sole
    discretion to be a refund in respect of such Taxes.

        (g) Order of Payment. Subject to the last
sentence of this Section 2.10(g), all payments made by the applicable Borrower
to the Administrative Agent (other than payments to the Administrative Agent in
its capacity as a Bank which has made Competitive Bid Loans to such Borrower and
or in connection with any fee or indemnification payments not specifically
designated under the terms of this Agreement as being for the benefit of the
Banks) shall be applied by the Administrative Agent, on behalf of each Bank
based on its pro rata Share, (i) first, to the payment of expenses
referred to in Section 10.02 hereof, (ii) second, to the payment of the fees
referred to in Section 2.09 hereof, (iii) third, to the payment of accrued and
unpaid interest on such Bank's Base Rate Loans until all such accrued
interest has been paid, (iv) fourth, to the payment of accrued and unpaid
interest on such Bank's Eurocurrency Rate Loans until all such accrued
interest has been paid, (v) fifth, to the payment of the unpaid principal amount
of such Bank's Base Rate Loans, and (vi) sixth, to the payment of the
unpaid principal amount of such Bank's Eurocurrency Rate Loans.
Notwithstanding the foregoing, upon the occurrence and during the continuance of
a Potential Event of Default or an Event of Default, all payments made by the
applicable Borrower with respect to Loans shall be made to the Administrative
Agent and after being applied in accordance with clauses (i) and (ii) of this
Section 2.10(g), shall be paid to the Banks pro rata based upon the
aggregate principal amount of Loans outstanding made by each Bank, and the
payments allocable to Syndicated Loans shall then be applied in accordance with
clauses (iii), (iv) and (v) of this Section 2.10(g).

33

        Section 2.11. Use of
Proceeds. The proceeds of the Loans made or the Letters of Credit issued by
the Banks to the Borrowers may be used for acquisitions, repurchases of capital
stock of the Company, the funding of dividends payable to shareholders of the
Company and for general corporate purposes of the Borrowers.

        Section 2.12. Special
Provisions Governing Eurocurrency Rate Loans and/or Competitive Bid Loans. Notwithstanding
any other provisions of this Agreement, the following provisions shall govern
with respect to Eurocurrency Rate Loans and Competitive Bid Loans as to the
matters covered, unless, in the case of Competitive Bid Loans, otherwise agreed
to between the Borrower and the Bank making any such Competitive Bid Loan:

            (a) Determination of Interest Rate. As soon
    as practicable after 10:00 A.M. (New York City time) on an Interest Rate
    Determination Date, the Administrative Agent shall determine (which
    determination shall, absent manifest error, be final, conclusive and binding
    upon all parties) the interest rate which shall apply to the Eurocurrency
    Rate Loans and the Competitive Bid LIBOR Loans for which an interest rate is
    then being determined for the applicable Interest Period and shall promptly
    give notice thereof (in writing or by telephone confirmed in writing) to the
    Borrower requesting such Eurocurrency Loan or Competitive Bid LIBOR Loan and
    to each Bank.

            (b) Substituted Rate of Borrowing. In the
    event that on any Interest Rate Determination Date any Bank (including the
    Administrative Agent) shall have determined (which determination shall be
    final and conclusive and binding upon all parties but, with respect to the
    following clauses (i) and (ii)(b), shall be made only after consultation
    with the Company and the Administrative Agent) that:

  
                (i) by reason of any changes arising after the
        date of this Agreement affecting the Eurocurrency market or affecting
        the position of that Bank in such market, adequate and fair means do not
        exist for ascertaining the applicable interest rate by reference to the
        Eurocurrency Rate with respect to the Eurocurrency Rate Loans or
        Competitive Bid LIBOR Loans as to which an interest rate determination
        is then being made; or

                (ii) by reason of (a) any change (including
        any changes proposed or published prior to the date hereof) after the
        date hereof in any applicable law or any governmental rule, regulation
        or order (or any interpretation or administration thereof and including
        the introduction of any new law or governmental rule, regulation or
        order (including any thereof proposed or published, prior to the

    
      
        34

      

    

        date hereof)) or (b) other circumstances affecting that Bank or the
        Eurocurrency market or the position of that Bank in such market (such
        as, for example, but not limited to, official reserve requirements
        required by Regulation D to the extent not compensated pursuant to
        Section 2.14), the Eurocurrency Rate shall not represent the effective
        pricing to that Bank for deposits in the applicable currency of
        comparable amounts for the relevant period;

  

then, and in any such event, that Bank shall be an Affected Bank and it shall
promptly (and in any event as soon as possible after being notified of a
Borrowing) give notice (by telephone confirmed in writing) to the applicable
Borrower and the Administrative Agent (which notice the Administrative Agent
shall promptly transmit to each other Bank) of such determination. Thereafter,
such Borrower shall pay to the Affected Bank with respect to such Eurocurrency
Rate Loans or Competitive Bid LIBOR Loans, upon written demand therefor, but
only if such demand is made within 30 days of the end of the Interest Period for
such Interest Rate Determination Date, such additional amounts (in the form of
an increased rate of, or a different method of calculating, interest or
otherwise as the Affected Bank in its sole discretion shall reasonably
determine) as shall be required to cause the Affected Bank to receive interest
with respect to such Affected Bank's Eurocurrency Rate Loans or
Competitive Bid LIBOR Loans for the Interest Period following that Interest Rate
Determination Date (such Interest Period being an "Affected Interest
Period") at a rate per annum equal to the Eurocurrency Margin or
Bid Margin in excess of the effective pricing to the Affected Bank for deposits
in the applicable currency to make or maintain Eurocurrency Rate Loans or
Competitive Bid LIBOR Loans, as the case may be. A certificate as to additional
amounts owed the Affected Bank, showing in reasonable detail the basis for the
calculation thereof, submitted in good faith to the applicable Borrower and the
Administrative Agent by the Affected Bank shall, absent manifest error, be
final, conclusive and binding for all purposes.

        (c) Required Termination and Prepayment. In the
event that on any date any Bank shall have reasonably determined (which
determination shall be final and conclusive and binding upon all parties) that
the making or continuation of its Eurocurrency Rate Loans in any currency (i)
has become unlawful by, or would be inconsistent with, compliance by that Bank
in good faith with any law, governmental rule, regulation or order (whether or
not having the force of law and whether or not failure to comply therewith would
be unlawful), or (ii) has become impracticable as a result of a contingency
occurring after the date of this Agreement which materially and adversely
affects the Eurocurrency market for such currency, then, and in any such event,
that Bank shall be an Affected Bank and it shall promptly give notice (by
telephone confirmed in writing) to the applicable Borrower and the
Administrative Agent (which notice the Administrative Agent shall promptly
transmit to each Bank) of that determination.

35

Subject to the prior withdrawal of a Notice of Syndicated Borrowing or
prepayment of the Eurocurrency Rate Loans of the Affected Bank as contemplated
by the following Section 2.12(d) hereof, the obligation of the Affected Bank to
make Eurocurrency Rate Loans denominated in the affected currency during any
such period shall be terminated at the earlier of the termination of the
Interest Period then in effect or when required by law and the applicable
Borrower shall no later than the termination of the Interest Period in effect at
the time any such determination pursuant to this Section 2.12(c) is made or
earlier, when required by law, repay Eurocurrency Rate Loans of the Affected
Bank denominated in the affected currency together with all interest accrued
thereon.

        (d) Options of the Borrowers. In lieu of paying
an Affected Bank such additional moneys as are required by Section 2.12(b),
2.12(i), 2.13 or 2.14 hereof or the prepayment of an Affected Bank required by
Section 2.12(c), hereof but in no event in derogation of Section 2.12(e) hereof,
any Borrower may exercise any one of the following options:

            (i) If the determination by an Affected Bank relates only to Eurocurrency
    Rate Loans then being requested by such Borrower pursuant to a Notice of
    Syndicated Borrowing or a Notice of Conversion/Continuation, the Borrower
    may by giving notice (by telephone confirmed in writing) to the
    Administrative Agent (who shall promptly give similar notice to each Bank)
    no later than the date immediately prior to the date on which such
    Eurocurrency Rate Loans are to be made, continued or converted withdraw as
    to the Affected Bank that Notice of Syndicated Borrowing or Notice of
    Conversion/Continuation, as the case may be; or

            (ii) If the determination by an Affected Bank relates only to Competitive
    Bid LIBOR Loans then being requested by such Borrower pursuant to a Notice
    of Competitive Bid Borrowing, the Borrower may by giving notice (by
    telephone confirmed in writing) to the Administrative Agent (who shall
    promptly give similar notice to each Bank) no later than the date
    immediately prior to the date on which such Competitive Bid LIBOR Loans are
    to be made, withdraw as to the Affected Bank that Notice of Competitive Bid
    Borrowing;

            (iii) If the determination by an Affected Bank
    relates only to Loans made in an Alternative Currency, the Borrower may if
    permitted by law Redenominate such Loans (subject to the prepayment
    provisions of Section 2.10(c) of this Agreement) in accordance with Section
    2.12(m) of this Agreement into Dollars or such other Alternative Currency as
    to which such circumstances do not exist;

36

            (iv) If the determination by an Affected Bank relates only to Loans made
    in Dollars, upon written notice to the Administrative Agent and each Bank,
    such Borrower may terminate the obligations of the Banks to make Loans as,
    and to convert Loans into, Eurocurrency Rate Loans denominated in Dollars
    and in such event, the Borrower shall, prior to the time any payment
    pursuant to Section 2.12(c) hereof is required to be made or, if the
    provisions of Section 2.12(d) hereof are applicable, at the end of the then
    current Interest Period, convert all of such Eurocurrency Rate Loans into
    Base Rate Loans; or

            (v) Such Borrower may give notice (by telephone confirmed in writing) to
    the Affected Bank and the Administrative Agent (who shall promptly give
    similar notice to each Bank) and require the Affected Bank to make the
    Eurocurrency Rate Loan or Competitive Bid LIBOR Loan then being requested
    (if denominated in Dollars) as a Base Rate Loan or to continue to maintain
    its outstanding Base Rate Loan then the subject of a Notice of
    Conversion/Continuation as a Base Rate Loan or to convert its Eurocurrency
    Rate Loan then outstanding that is so affected (if denominated in Dollars)
    into a Base Rate Loan at the end of the then current Interest Period (or at
    such earlier time as prepayment is otherwise required to be made pursuant to
    Section 2.12(c) hereof), that notice to pertain only to the Loans of the
    Affected Bank and to have no effect on the obligations of the other Banks to
    make or maintain Eurocurrency Rate Loans or to convert Base Rate Loans into
    Eurocurrency Rate Loans.

        (e) Compensation. The Company shall compensate
each Bank, upon written request by that Bank (which request shall set forth in
reasonable detail the basis for requesting such amounts), for all reasonable
losses, expenses and liabilities (including, without limitation, any interest
paid by that Bank to lenders of funds borrowed by it to make or carry its
Eurocurrency Rate Loans and Competitive Bid Loans and any loss (other than loss
of margins) sustained by that Bank in connection with the re-employment
of such funds), which that Bank may sustain with respect to any
Borrower's Eurocurrency Rate Loans or Competitive Bid Loans if for any
reason (other than a default or error by that Bank) (i) a borrowing of any
Eurocurrency Rate Loan or Competitive Bid Loan does not occur on a date
specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation
or a telephonic request for borrowing, (ii) any repayment or conversion of any
of such Bank's Eurocurrency Rate Loans or Competitive Bid Loans occurs
on a date which is not the last day of the Interest Period applicable to that
Eurocurrency Rate Loan or Competitive Bid Loan (if applicable), (iii) any
repayment of any such Bank's Eurocurrency Rate Loans or Competitive Bid
Loans is not made on any date specified in a notice of repayment given by the
Borrower, or (iv) as a consequence of any other failure by the Borrower to repay
such Bank's Eurocurrency Rate Loans or Competitive Bid Loans when
required by the terms of this Agreement.

37

        (f) Quotation of Eurocurrency Rate. Anything
herein to the contrary notwithstanding, if on any Interest Rate Determination
Date no Eurocurrency Rate is available by reason of the failure or inability of
all Reference Banks to provide offered quotations to the Administrative Agent in
accordance with the definition of "Eurocurrency Rate", the
Administrative Agent shall give the applicable Borrowers and each Bank prompt
notice thereof and the Syndicated Loans requested shall be made as Base Rate
Loans.

        (g) Affected Bank's Obligation to Mitigate. Each Bank agrees
that, as promptly as practicable after it becomes aware of the occurrence of an
event or the existence of a condition that would cause it to be an Affected Bank
under Section 2.12(b) or 2.12(c) hereof, it will, to the extent not inconsistent
with such Bank's internal policies, use reasonable efforts to make, fund
or maintain the affected Loans of such Bank through another Applicable Lending
Office if as a result thereof the additional moneys which would otherwise be
required to be paid in respect of such Loans pursuant to Section 2.12(b) hereof
would be materially reduced or the illegality or other adverse circumstances
which would otherwise require prepayment of such Loans pursuant to Section
2.12(c) hereof would cease to exist and if, as determined by such Bank, in its
sole discretion, the making, funding or maintaining of such Loans through such
other Applicable Lending Office would not otherwise materially adversely affect
such Loans or such Bank. The Company hereby agrees to pay all reasonable
expenses incurred by any Bank in utilizing another Applicable Lending Office
pursuant to this Section 2.10(g).

        (h) Booking of Loans. Each Loan shall be booked by the Bank making
such Loan at, to, or for the account of, its Applicable Lending Office for such
Loan.

        (i) Increased Costs. Except as provided in
Section 2.12(b), if, by reason of (x) after the date hereof, the
introduction of or any change (including, without limitation, any change by way
of imposition or increase of reserve requirements) in or in the interpretation
of any law or regulation (whether or not proposed or published prior to the date
hereof), or (y) the compliance with any guideline or request from any
central bank or other Governmental Authority or quasi governmental authority
exercising control over banks or financial institutions generally (whether or
not having the force of law):

            (i) any Bank (or its Applicable Lending Office) shall be subject to any
    tax, duty or other charge with respect to its Eurocurrency Rate Loans or
    Competitive Bid Loans or Letters of Credit or its obligation to make
    Eurocurrency Rate Loans or Competitive Bid Loans or its obligations
    hereunder in respect of Letters of Credit, or shall change the basis of
    taxation of payments to any Bank of the principal of or interest on its
    Eurocurrency Rate Loans or Competitive Bid Loans or Letters of Credit or its
    obligation to make Eurocurrency Rate Loans or Competitive

38

    Bid Loans or its obligations hereunder in respect of Letters of Credit
    (except for changes in the rate of tax on the overall net income of such
    Bank or its Applicable Lending Office imposed by the jurisdiction in which
    such Bank's principal executive office or Applicable Lending Office
    is located); or

            (ii) any reserve (including, without limitation, any imposed by the
    Board), special deposit 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's Applicable Lending
    Office shall be imposed or deemed applicable or any other condition
    affecting its Eurocurrency Rate Loans or Competitive Bid Loans or Letters of
    Credit or its obligation to make Eurocurrency Rate Loans or Competitive Bid
    Loans or its obligations hereunder in respect of Letters of Credit shall be
    imposed on any Bank or its Applicable Lending Office or the interbank
    Eurocurrency market;

and as a result thereof there shall be any increase in the cost to that Bank
of agreeing to make or making, funding or maintaining Eurocurrency Rate Loans or
Competitive Bid Loans or of issuing or participating in any Letters of Credit
(except to the extent such Bank is entitled to compensation therefor during the
relevant Interest Period pursuant to Section 2.14), or there shall be a
reduction in the amount received or receivable by that Bank or its Applicable
Lending Office or such Issuing Bank, then the Borrower shall from time to time,
upon written notice from and demand by that Bank or Issuing Bank (which shall be
promptly furnished upon the Banks being made subject thereto) (with a copy of
such notice and demand to the Administrative Agent), pay to the Administrative
Agent for the account of that Bank or Issuing Bank, within five Business Days
after the date specified in such notice and demand, additional amounts
sufficient to indemnify that Bank or Issuing Bank against such increased cost. A
certificate as to the basis for and calculation of the amount of such increased
cost, submitted to the Borrower and the Administrative Agent by that Bank or
Issuing Bank, shall, absent manifest error, be final, conclusive and binding for
all purposes.

        (j) Assumption Concerning Funding of Eurocurrency Rate Loans.
Calculation of all amounts payable to a Bank under this Section 2.12 in respect
of a Eurocurrency Rate Loan shall be made as though that Bank had actually
funded its Eurocurrency Rate Loan through the purchase of a Eurocurrency
deposit, bearing interest at the Eurocurrency Rate applicable to such
Eurocurrency Rate Loan in an amount equal to the amount of the Eurocurrency Rate
Loan and having a maturity comparable to the relevant Interest Period and
through the transfer of such Eurocurrency deposit, from an offshore office of
that Bank to a domestic office of that Bank in the United States of America; provided,
however, that each Bank may fund each of its Eurocurrency Rate Loans in
any manner it sees fit and

39

the foregoing assumption shall be utilized only for the calculations of
amounts payable under this Section 2.12.

        (k) Eurocurrency Rate Loans and Competitive Bid Loans After Default.
Unless the Required Banks shall otherwise agree, after the occurrence of and
during the continuance of a Potential Event of Default or an Event of Default,
the Borrowers may not elect to have a Eurocurrency Rate Loan or Competitive Bid
Loan be made or have any Eurocurrency Rate Loan continued or have any Base Rate
Loan converted into a Eurocurrency Rate Loan.

        (l) Eurocurrency Rate Taxes. The Company agrees
that:

            (i) Promptly upon notice from any Bank to the
    Company, the Company will pay, prior to the date on which penalties attach
    thereto, all present and future income, stamp and other taxes, levies, or
    costs and charges whatsoever imposed, assessed, levied or collected on or in
    respect of any Borrower's Eurocurrency Rate Loans or Competitive Bid
    LIBOR Loans solely as a result of the interest rate being determined by
    reference to the Eurocurrency Rate, as the case may be, and/or the
    provisions of this Agreement relating to the Eurocurrency Rate and/or the
    recording, registration, notarization or other formalization of any thereof
    (all such taxes, levies, costs and charges being herein collectively called
    "Eurocurrency Rate Taxes"); provided that
    Eurocurrency Rate Taxes shall not include taxes imposed on or measured by
    the overall net income of that Bank by the country under the laws of which
    such Bank is organized or any political subdivision or taxing authority
    thereof or therein, or taxes imposed on or measured by the overall income of
    any branch or subsidiary of that Bank (whether gross or net income) by any
    jurisdiction or subdivision thereof in which that branch or subsidiary is
    doing business. The Company shall also pay such additional amounts equal to
    increases in taxes payable by that Bank which increases are attributable to
    payments made by the Company described in the immediately preceding sentence
    or this sentence. Promptly after the date on which payment of any such
    Eurocurrency Rate Tax is due pursuant to applicable law, the Company will,
    at the request of that Bank, furnish to that Bank evidence, in form and
    substance satisfactory to that Bank, that the Company has met its obligation
    under this Section 2.12(l); and

            (ii) The Company will indemnify each Bank against,
    and reimburse each Bank on demand for, any Eurocurrency Rate Taxes payable
    under clause (i) above, as the case may be, as determined by that Bank in
    its good faith discretion. That Bank shall provide the Company with
    appropriate receipts for any payments or reimbursements made by the Borrower
    pursuant to this clause (ii).

40

        (m) Redenomination. In the case of Section
2.12(d)(iii) of this Agreement, the affected Borrower may upon notice to the
Administrative Agent and the Banks given on the same day as the notification
provided for therein request that all Loans in an Alternative Currency be
Redenominated into Dollars or some other specified Alternative Currency. Such
Redenomination shall be equal to the Currency Equivalent in Dollars or the other
Alternative Currency of such Loan. Each such notice of request of a
Redenomination shall specify (i) the Loans to be Redenominated, (ii) the
currency into which such Loans are to be Redenominated and (iii) the duration of
the Interest Period for such Loans upon being so Redenominated. In addition, the
affected Borrower hereby agrees to indemnify each Bank against all losses,
including loss of profit and expenses, including, but not limited to, losses
contemplated by Section 2.12(e) of this Agreement and losses related to foreign
exchange risks suffered as a result of such Redenomination. A certificate of the
applicable Bank as to the amount required to be paid by the affected Borrower
under this Section 2.12(m) shall accompany a demand for such payment and shall
be conclusive and binding for all purposes, absent manifest error.

        Section 2.13. Capital
Requirements. If while any portion of the Total Commitment is in effect or
any Loans are outstanding, any Bank determines that the adoption of any law,
treaty, rule, regulation, guideline or order regarding capital adequacy or
capital maintenance or any change therein, or any change in the interpretation
or administration thereof by any Governmental Authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by such Bank, with any request or directive regarding capital
adequacy or capital maintenance (whether or not having the force of law and
whether or not the failure to comply therewith would be unlawful) of any such
Governmental Authority, central bank or comparable agency, has or would have the
effect of increasing the amount of capital required to be maintained by such
Bank (including, without limitation, with respect to any Bank's
Commitment or Competitive Bid Loans outstanding), then the Company shall from
time to time, within 15 days of written notice and demand from such Bank (with a
copy to the Administrative Agent), pay to the Administrative Agent, for the
account of such Bank, additional amounts sufficient to compensate such Bank for
the cost of such additional required capital. A certificate showing in
reasonable detail the computations made in arriving at such cost, submitted to
the Company and the Administrative Agent by such Bank shall, absent manifest
error, be final, conclusive and binding for all purposes.

        Section 2.14. Regulation
D Compensation. If and so long as a reserve requirement of the type
described in the definition of "Eurocurrency Reserve Percentage" is
prescribed by the Board of Governors of the Federal Reserve System (or any
successor), each Bank subject to such requirement may require the Borrower to
pay, contemporaneously with each payment of interest on each of such
Bank's Eurocurrency Loans additional interest on such Eurocurrency Loan

41

at a rate per annum determined by such Bank up to but not exceeding the
excess of (i) (A) the applicable Eurocurrency Rate divided by (B) one minus
the Eurocurrency Reserve Percentage over (ii) the applicable Eurocurrency 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 Eurocurrency 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 Business Days after such Bank gives
such notice and (y) shall notify the Borrower at least five Business
Days before each date on which interest is payable on the Eurocurrency Loans of
the amount then due it under this Section.

        Section 2.15. Letters of
Credit. (a) Existing Letters of Credit. On the Effective Date, each
Issuing Bank that has issued an Existing Letter of Credit 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 Existing Letter of
Credit and the related Letter of Credit Liabilities in the proportion its
respective Commitment bears to the Total Commitment. On and after the Effective
Date, each Existing Letter of Credit shall constitute a Letter of Credit for all
purposes hereof. An Existing Letter of Credit may contain a statement to the
effect that such Existing Letter of Credit is issued for the account of a
Subsidiary of the Company; provided, however, that notwithstanding
such statement, the Company shall be the actual account party for all purposes
of this Credit Agreement for such Existing Letter of Credit and such statement
shall not affect the Company's reimbursement obligations hereunder with
respect to such Existing Letter of Credit.

        (b) Commitment to Issue Letters of Credit. Subject to the terms and
conditions hereof, each Issuing Bank agrees to issue Letters of Credit
denominated in Dollars from time to time before the Termination Date upon the
request of any Borrower; provided that, (i) immediately after each Letter
of Credit is issued (A) the Total Outstanding Amount shall not exceed the Total
Commitment and (B) the aggregate amount of the Letter of Credit Liabilities
shall not exceed $300,000,000 and (ii) no Letter of Credit is for the benefit,
directly or indirectly, of any Governmental Authority other than any
Governmental Authority of the United States, or any state or other political
subdivision thereof. 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 Total
Commitment.

        (c) Method for Issuance; Terms; Extensions.

42

            (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; provided, however,
    that any Issuing Bank (other than JPMorgan Chase) may decline to issue any
    Letter of Credit (other than any Existing Letter of Credit and renewals or
    extensions thereof) at such Issuing Bank's sole discretion
    (including, without limitation, if such Issuing Bank's internal
    policies do not permit the issuance of a letter of credit for the purposes
    for which such Letter of Credit is being 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. Subject to the terms and
    conditions of this Agreement, JPMorgan Chase shall act as the Issuing Bank
    if no other Bank desires to act in such capacity with respect to a Notice of
    Issuance.

            (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

43

    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 fifth Business Day prior to the
    Termination Date.

(d) 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 2.15(d)(i)
    (a "Reimbursement Obligation") shall, if and to
    the extent that the amount of such Reimbursement Obligation would be
    permitted as a Borrowing of Syndicated 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 Pro Rata Share of the

  

  44

  
      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 10.07 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 Pro Rata Share 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.

        (e) Obligations Absolute. The obligations of
the Borrower and each Bank under subsection (d) 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;

45

            (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 Article 7 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 2.15(e) shall not limit the rights of the
Borrower or any Bank under Section 2.15(f)(ii).

        (f) 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 2.15; 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.

46

            (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 (e) above; provided that, notwithstanding Section 2.15(e),
    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; provided
    further that each Bank 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 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. 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 (f) 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.

        (g) 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

47

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.

        (h) 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 (f)(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 to Loans and Letters of Credit

        Section 3.01. Conditions
to Initial Loans and Letters of Credit. The obligation of each Bank to make
the Initial Loans and to issue the initial Letters of Credit is, in addition to
the conditions precedent specified in Section 3.02, subject to satisfaction of
each of the following conditions:

            (a) On or before the Effective Date, the Company shall have delivered to
    the Banks (or to the Administrative Agent with sufficient copies, originally
    executed where appropriate, for each Bank) each, unless otherwise noted,
    dated the Effective Date:

  
                (i) Certified copies of its Certificate of Incorporation, together
        with a good standing certificate from the Secretary of State of the
        jurisdiction of its incorporation, each to be dated a recent date prior
        to the Effective Date;

                (ii) Copies of its Bylaws, certified as of the Effective Date by its
        corporate secretary or an assistant secretary;

                (iii) Resolutions of its Board of Directors, directly or indirectly,
        approving and authorizing the execution, delivery and performance of
        this Agreement and any other documents, instruments and certificates
        required to be executed by the Company in connection herewith and,
        directly or indirectly, approving and authorizing the incurrence of the
        Loans and the issuances of the Letters of Credit, each certified as of
        the Effective Date by its corporate secretary or an assistant secretary
        as being in full force and effect without modification or amendment;

  

48

  
        (iv) Signature and incumbency certificates with respect to the
        Persons executing this Agreement;

        (v) Executed copies of this Agreement; and

        (vi) Such other documents as the Administrative Agent may reasonably
        request.

    

            (b) The Administrative Agent shall have received
    an originally executed copy of the favorable written opinion of Nancy K.
    Cassidy, Esq., Senior Associate General Counsel of the Company, dated as of
    the Effective Date, substantially in the form of Exhibit B annexed hereto;
    the Company hereby expressly instructs such counsel to prepare such opinion
    and deliver it to the Banks for their benefit and such opinion shall contain
    a statement to that effect.

            (c) The Administrative Agent shall have received
    an originally executed copy of the favorable written opinion of Davis Polk
    & Wardwell, special counsel to the Agents, dated as of the Effective
    Date, substantially in the form of Exhibit C annexed hereto.

            (d) The 5-Year Credit Agreement, dated as
    of April 1, 2002 (the "2002 Credit Agreement"), among the
    Company, the Banks listed therein and JPMorgan Chase, as administrative
    agent, and all commitments to lend thereunder shall have been terminated and
    the obligations of the Company thereunder shall have been discharged in full
    (and each of the Banks that is a "Bank" as defined in the 2002
    Credit Agreement hereby waives any requirement of notice for the
    effectiveness of such termination).

            (e) The 364-Day Credit Agreement, dated as of March 31, 2003 (the
    "2003 Credit Agreement"), among the Company, the Banks
    listed therein and JPMorgan Chase, as administrative agent, and all
    commitments to lend thereunder shall have been terminated and the
    obligations of the Company thereunder shall have been discharged in full.

  

  The Administrative Agent shall promptly notify the Company, the Banks and
  the Administrative Agent of the satisfaction of the conditions set forth in
  this Section 3.01, and such notice shall be conclusive and binding on all
  parties hereto. Promptly thereafter, the notes issued by the Borrowers under
  the 2002 Credit Agreement and the 2003 Credit Agreement shall be returned by
  the lenders thereunder to the Company, marked "Cancelled".

        Section 3.02. Conditions
to All Loans and Letters of Credit. (i) The obligation of each Bank
to make any Loans pursuant to a Notice of Borrowing is subject to prior or
concurrent satisfaction or waiver by the Required Banks in the

49

case of Syndicated Loans, and the Bank making the relevant Loan in the case
of Competitive Bid Loans, and (ii) the obligation of an Issuing Bank to issue
(or renew or extend the term of) any Letter of Credit is subject to the
satisfaction or waiver by the Required Banks, of the following further
conditions precedent:

            (a) With respect to any such Loan or Letter of Credit, the Administrative
    Agent shall have received, before the Funding Date thereof or date of
    issuance (or renewal or extension) of such Letter of Credit, (i) an
    originally executed Notice of Borrowing signed by any of the chief executive
    officer, the chief financial officer, the treasurer or any assistant
    treasurer of the Company or (ii) a Notice of Issuance as required by Section
    2.15(c) (the furnishing by the Company of each such Notice of Borrowing or
    Notice of Issuance shall be deemed to constitute a representation and
    warranty of the Company that each of the conditions set forth in Section
    3.02(b) hereof will be satisfied on the related Funding Date or date of
    issuance (or renewal or extension) of such Letter of Credit);

            (b) As of the Funding Date of such Loan or date of
    issuance (or renewal or extension) of such Letter of Credit:

  
                (i) With respect to such Loan or Letter of Credit, the
        representations and warranties contained herein shall be true, correct
        and complete in all material respects on and as of that Funding Date or
        date of issuance (or renewal or extension) of such Letter of Credit to
        the same extent as though made on and as of that date, except that the
        representations and warranties need not be true and correct to the
        extent that changes in the facts and conditions on which such
        representations and warranties are based are required or permitted under
        this Agreement, except that the representations and warranties set forth
        in Section 4.04 shall not apply, and except that the representations and
        warranties set forth in Section 4.05 shall not apply to Competitive Bid
        Loans which do not increase the aggregate principal amount of such
        Competitive Bid Loans then outstanding with Banks making the same;

                (ii) No event shall have occurred and be continuing or would result
        from the consummation of the Loans or the issuance (or renewal or
        extension) of the Letter of Credit on such Funding Date or date of
        issuance (or renewal or extension) of such Letter of Credit and the use
        of the proceeds thereof which would constitute (a) an Event of Default
        or (b) a Potential Event of Default;

                (iii) Each Borrower shall have performed in all material respects all
        agreements and satisfied in all material respects all

    50

        conditions which this Agreement provides shall be performed by it on
        or before such Funding Date or date of issuance (or renewal or
        extension) of such Letter of Credit;

                (iv) No order, judgment or decree of any court, arbitrator or
        governmental authority shall purport to enjoin or restrain that Bank
        from making that Loan or issuing (or renewing or extending) that Letter
        of Credit; and

                (v) The making of the Loans or the issuance (or renewal or extension)
        of the Letter of Credit requested on such Funding Date or date of
        issuance (or renewal or extension) of such Letter of Credit shall not
        violate Regulation T, Regulation U or Regulation X of the Board or any
        other regulation of the Board or the Exchange Act.

  

Section 3.03. Conditions
to Loans and Letters of Credit to Subsidiary Borrowers. (a) Concurrently
with or before the designation by the Company of any of its Subsidiaries as a
Subsidiary Borrower, the Company shall deliver, or cause to be delivered, to the
Banks (or to the Administrative Agent for the Banks with sufficient originally
executed copies, where appropriate, for each Bank) with respect to such
Subsidiary Borrower, each, unless otherwise noted, dated the Designation Date:

  
            (i) Certified copies of such Subsidiary Borrower's Certificate of
    Incorporation, together with a good standing certificate from the Secretary
    of State of the State of incorporation of such Subsidiary Borrower, each to
    be dated a recent date prior to the Designation Date;

            (ii) Copies of such Subsidiary Borrower's Bylaws, certified as of
    the Designation Date by its corporate secretary or an assistant secretary;

            (iii) Resolutions of such Subsidiary Borrower's Board of
    Directors approving and authorizing the execution, delivery and performance
    of this Agreement and any other documents, instruments and certificates to
    be executed by such Subsidiary Borrower in connection herewith or therewith
    and approving and authorizing the incurrence of Loans by such Subsidiary
    Borrower and the issuances of Letters of Credit upon the request of such
    Subsidiary Borrower, each certified as of the Designation Date by its
    corporate secretary or an assistant secretary as being in full force and
    effect without modification or amendment;

            (iv) Signature and incumbency certificates of such Subsidiary
    Borrower's officers executing an Assumption Agreement substantially
    in the form of Exhibit G hereto; and

  

51

  
            (v) Such other documents as the Administrative Agent may reasonably
    request.

  

        (b) The Administrative Agent shall have received an originally executed copy
of the favorable written opinion of Nancy K. Cassidy, Esq, Senior Associate
General Counsel of the Company, dated as of the Designation Date, relating to
such Subsidiary Borrower, substantially in the form of Exhibit B annexed hereto,
with such changes as are acceptable to the Administrative Agent to reflect that
such opinion relates to such Subsidiary Borrower, rather than to the Company;
the Company hereby expressly instructs such counsel to prepare such opinion and
deliver it to the Banks for their benefit and such opinion shall contain a
statement to that effect.

Article 4

Representations and Warranties

        In order to induce the Banks to enter into this Agreement and to make the
Loans and issue the Letters of Credit, the Company and each Borrower (as to
itself only) represents and warrants to each Bank as of the Effective Date that
the following statements are true, correct and complete:

        Section 4.01. Organization, Powers and Good
Standing. (a) Organization and Powers. Each Borrower is a corporation
duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation. Each Borrower has all requisite corporate power
and authority (i) to own and operate its properties and to carry on its business
as now conducted and proposed to be conducted, except where the lack of
corporate power and authority would not have a Material Adverse Effect and (ii)
to enter into this Agreement and to carry out the transactions contemplated
hereby.

        (b) Good Standing. Each Borrower is in good standing wherever
necessary to carry on its present business and operations, except in
jurisdictions in which the failure to be in good standing would not have a
Material Adverse Effect.

        Section 4.02. Authorization of Borrowing, Etc. (a)
Authorization of Borrowing. The execution, delivery and performance of
this Agreement (and in the case of each Subsidiary Borrower, its Assumption
Agreement), and the borrowing of the Loans and the request for the issuance of
each Letter of Credit, have been duly authorized by all necessary corporate
action by each Borrower.

        (b) No Conflict. The execution, delivery and performance by each
Borrower of this Agreement (and in the case of each Subsidiary Borrower, its
Assumption Agreement) and any Notes and the borrowing of the Loans and the

52

request for the issuance of each Letter of Credit do not and will not (i)
violate any provision of law applicable to the Company or any of its
Subsidiaries, (ii) violate the Certificate of Incorporation or Bylaws of the
Company or any of its Subsidiaries, (iii) violate any order, judgment or decree
of any court or other Governmental Authority binding on the Company or any of
its Subsidiaries,

(iv) conflict with, result in a breach of or constitute (with due notice or
lapse of time or both) a default under any Contractual Obligation of the Company
or any of its Subsidiaries, or (v) result in or require the creation or
imposition of any material Lien upon any of the material properties or assets of
the Company or any of its Subsidiaries or require any approval of stockholders
or any approval or consent of any Person under any Contractual Obligation of the
Company or any of its Subsidiaries other than such approvals and consents which
have been or will be obtained on or before the Effective Date.

        (c) Governmental Consents. The execution, delivery and performance by
each Borrower of this Agreement (and in the case of each Subsidiary Borrower,
its Assumption Agreement) and the issuance, delivery and performance by each
Borrower of any Notes will not require on the part of such Borrower any
registration with, consent or approval of, or notice to, or other action to,
with or by, any Governmental Authority other than any such registration,
consent, approval, notice or other action which has been duly made, given or
taken.

        (d) Binding Obligation. This Agreement is and any Notes to be issued
and each Assumption Agreement when executed and delivered and each Loan when
made will be a legally valid and binding obligation of the Company and/or the
applicable Borrower, as the case may be, enforceable against the Company and/or
the applicable Borrower, as the case may be, in accordance with its respective
terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting
creditors' rights generally or by equitable principles relating to
enforceability.

        Section 4.03. Financial
Condition. The Company has delivered to the Banks the audited consolidated
financial statements of the Company and its subsidiaries for the year ended
January 1, 2005 as set forth in the Company's Annual Report on Form
10-K for the fiscal year ended January 1, 2005 (the "Financial
Statements"). All such Financial Statements were prepared in accordance
with generally accepted accounting principles except for the preparation of
footnote disclosures for the unaudited statements. All such Financial Statements
fairly present the consolidated financial position of the Company and its
subsidiaries as at the respective dates thereof and the consolidated statements
of income and cash flows of the Company and its Subsidiaries for each of the
periods covered thereby, subject, in the case of any unaudited interim financial
statements, to changes resulting from normal year end adjustments.

53

        Section 4.04. No
Material Adverse Change. Since January 1, 2005, there has been no change in
the business, operations, properties, assets or condition (financial or
otherwise) of the Company or any of its Subsidiaries, which has been, either in
any case or in the aggregate, materially adverse to the Company and its
Subsidiaries, taken as a whole.

        Section 4.05.
Litigation. Except as disclosed in the Company's Annual Report on
Form 10-K for the fiscal year ended January 1, 2005 and in the Financial
Statements delivered to the Banks pursuant to Section 4.03 hereof, there is no
action, suit, proceeding, governmental investigation (including, without
limitation, any of the foregoing relating to laws, rules and regulations
relating to the protection of the environment, health and safety) of which the
Company has knowledge or arbitration (whether or not purportedly on behalf of
the Company or any of its Subsidiaries) at law or in equity or before or by any
Governmental Authority, domestic or foreign, pending or, to the knowledge of the
Company, threatened against or affecting the Company or any of its Subsidiaries
or any property of the Company or any of its Subsidiaries which is probable of
being successful and which would have a Material Adverse Effect.

        Section 4.06. Payment of Taxes. Except to the
extent permitted by Section 5.03, all taxes, assessments, fees and other
governmental charges upon the Company and each of its Subsidiaries and upon
their respective properties, assets, income and franchises which are material to
the Company and its Subsidiaries, taken as a whole, and were due and payable,
have been paid.

        Section 4.07. Governmental Regulation. (a)
Neither the Company nor any of its Subsidiaries is subject to regulation under
the Public Utility Holding Company Act of 1935 or to any federal or state
statute or regulation limiting its ability to incur Indebtedness for money
borrowed as contemplated by this Agreement.

        (b) Neither the Company nor any of its Subsidiaries is an "investment
company" within the meaning of the Investment Company Act of 1940, as
amended.

        Section 4.08. Securities Activities. Neither
the Company nor any of its Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying any Margin Stock.

        Section 4.09. ERISA
Compliance. (a) The Company 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.

54

        (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 PBGC (or any successor thereto) or to
any other Person under Section 4062, 4063, or 4064 of ERISA.

        (c) Neither the Company nor any of its ERISA Affiliates has incurred or
reasonably expects to incur any withdrawal liability under Part E of Title IV of
ERISA to any Multiemployer Plan except as could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect.

        (d) The sum of the amount of unfunded benefit liabilities under all Pension
Plans (excluding each Pension Plan with an amount of unfunded benefit
liabilities of zero or less) could not reasonably be expected, individually or
in the aggregate, to result in a Material Adverse Effect.

        (e) Neither the Company nor any of its ERISA Affiliates has incurred any
accumulated funding deficiency (whether or not waived) with respect to any
Pension Plan except as could not reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect.

        (f) Neither the Company nor any of its ERISA Affiliates has or reasonably
expects to become subject to a lien in favor of any Pension Plan under Section
302(f) of ERISA except as could not reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect.

        (g) Neither the Company nor any of its ERISA Affiliate has or reasonably
expects to become subject to a requirement to provide security to any Pension
Plan under Section 307 of ERISA except as could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect.

        As used in this Section 4.09, the term "amount of unfunded benefit
liabilities" has the meaning specified in Section 4001(a)(18) of ERISA,
and the term "accumulated funding deficiency" has the meaning
specified in Section 302 of ERISA and Section 412 of the Code.

        Section 4.10. Certain Fees. No broker's
or finder's fee or commission will be payable by the Company with
respect to the offer, issuance and sale of any Note or the borrowing of any Loan
comprising a Syndicated Loan or Competitive Bid Loan or the execution, delivery
and performance of this Agreement.

55

Article 5

Affirmative Covenants

The Company covenants and agrees that, so long as any of the Commitments
hereunder shall be in effect or there is any Total Outstanding Amount, unless
Required Banks shall otherwise give prior written consent, it shall perform all
covenants in this Article 5:

        Section 5.01. Financial
Statements and Other Reports. The Company will maintain, and cause each of
its subsidiaries to maintain, a system of accounting established and
administered in accordance with sound business practices to permit preparation
of consolidated financial statements in conformity with generally accepted
accounting principles in effect from time to time. The Company will deliver to
the Banks (except to the extent otherwise expressly provided below in Section
5.01(b)(ii)):

            (a)    (i) as soon as practicable and in any event
    within 45 days after the end of each fiscal quarter ending after the
    Effective Date in the Company's fiscal year the consolidated balance
    sheet of the Company and its consolidated subsidiaries as at the end of such
    period, and the related consolidated statements of income and cash flows of
    the Company and its consolidated subsidiaries in each case certified by the
    chief financial officer or controller of the Company that they fairly
    present the financial condition of the Company and its consolidated
    subsidiaries as at the dates indicated and the results of their operations
    and changes in their cash flows, subject to changes resulting from audit and
    normal year end adjustments, based on their respective normal accounting
    procedures applied on a consistent basis (except as noted therein);

            (ii)      as soon as
    practicable and in any event within 90 days after the end of each fiscal
    year the consolidated balance sheet of the Company and its consolidated
    subsidiaries as at the end of such year and the related consolidated
    statements of income and cash flows of the Company and its consolidated
    subsidiaries for such fiscal year, accompanied by a report thereon of
    independent certified public accountants of recognized national standing
    selected by the Company which report shall be unqualified as to going
    concern and scope of audit and shall state that such consolidated financial
    statements present fairly the financial position of the Company and its
    consolidated subsidiaries as at the dates indicated and the results of their
    operations and changes in their cash flows for the periods indicated in
    conformity with generally accepted accounting principles applied on a basis
    consistent with prior years (except as noted in such report) and that the
    examination by such accountants in connection with such consolidated
    financial statements has been made in accordance with generally accepted
    auditing standards;

56

            (b)    (i) together with each delivery of financial
    statements of the Company and its consolidated subsidiaries pursuant to
    subdivisions (a)(i) and (a)(ii) above, (A) an Officer's Certificate
    of the Company stating that the signer has reviewed the terms of this
    Agreement and has made, or caused to be made under such signer's
    supervision, a review in reasonable detail of the transactions and condition
    of the Company and its consolidated subsidiaries during the accounting
    period covered by such financial statements and that such review has not
    disclosed the existence during or at the end of such accounting period, and
    that the signer does not have knowledge of the existence as at the date of
    the Officers' Certificate, of any condition or event which
    constitutes an Event of Default or Potential Event of Default, or, if any
    such condition or event existed or exists, specifying the nature and period
    of existence thereof and what action the Company has taken, is taking and
    proposes to take with respect thereto; and (B) a Compliance Certificate
    demonstrating in reasonable detail compliance (as determined in accordance
    with GAAP during and at the end of such accounting periods) with the
    restrictions contained in Section 6.03 and, in addition, a written statement
    of the chief accounting officer, chief financial officer, any vice president
    or the treasurer or any assistant treasurer of the Company describing in
    reasonable detail the differences between the financial information
    contained in such financial statements and the information contained in the
    Compliance Certificate relating to the Company's compliance with
    Section 6.03 hereof;

            (ii) promptly upon their becoming available but
    only to the extent requested by a Bank, copies of all publicly available
    financial statements, reports, notices and proxy statements sent or made
    available generally by the Company to its security holders or by any
    Subsidiary of the Company to its security holders other than the Company or
    another Subsidiary, of all regular and periodic reports and all registration
    statements and prospectuses, if any, filed by the Company or any of its
    Subsidiaries with any securities exchange or with the Securities and
    Exchange Commission and of all press releases and other statements made
    available generally by the Company or any Subsidiary to the public
    concerning material developments in the business of the Company and its
    Subsidiaries;

            (iii) promptly upon the chairman of the board, the chief executive
    officer, the president, the chief accounting officer, the chief financial
    officer, the treasurer or the general counsel of the Company obtaining
    knowledge (a) of any condition or event which constitutes an Event of
    Default or Potential Event of Default, (b) that any Person has given any
    notice to the Company or any Subsidiary of the Company or taken any other
    action with respect to a claimed default or event or condition of the type
    referred to in Section 7.02, or (c) of a material

57

    adverse change in the business, operations, properties, assets or
    condition (financial or otherwise) of the Company and its Subsidiaries,
    taken as a whole, an Officer's Certificate specifying the nature and
    period of existence of any such condition or event, or specifying the notice
    given or action taken by such holder or Person and the nature of such
    claimed default, Event of Default, Potential Event of Default, event or
    condition, and what action the Company has taken, is taking and proposes to
    take with respect thereto; and

            (iv) with reasonable promptness, such other information and data with
    respect to the Company or any of its subsidiaries as from time to time may
    be reasonably requested by any Bank.

Information required to be delivered pursuant to Sections 5.01(a) and
5.01(b)(ii) above shall be deemed to have been delivered on the date on which
the Company provides notice to the Banks that such information has been posted
on the Company'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
Section 5.01(b) and (ii) the Borrower shall deliver paper copies of the
information referred to in Sections 5.01(a) and 5.01(b)(ii) to any Lender which
requests such delivery.

        Section 5.02. Conduct of
Business and Corporate Existence. Except as permitted by Section 6.01, the
Company will at all times preserve and keep in full force and effect its
corporate existence and rights and franchises material to the business of the
Company and its Subsidiaries, taken as a whole.

        Section 5.03. Payment of
Taxes. The Company will, and will cause each of its Subsidiaries to, pay all
taxes, assessments and other governmental charges imposed upon it or any of its
properties or assets or in respect of any of its franchises, business, income or
property when due which are material to the Company and its Subsidiaries, taken
as a whole, provided that no such amount need be paid if being contested
in good faith by appropriate proceedings promptly instituted and diligently
conducted and if such reserve or other appropriate provision, if any, as shall
be required in conformity with generally accepted accounting principles shall
have been made therefor.

        Section 5.04. Maintenance of Properties; Insurance.
The Company will maintain or cause to be maintained in good repair, working
order and condition all material properties used or useful in its business of
the Company and its Subsidiaries and from time to time will make or cause to be
made all appropriate material repairs and renewals thereto and replacements
thereof. The Company will maintain or cause to be maintained, with financially
sound and reputable insurers, insurance with respect to its material properties
and business and the

58

material properties and business of its Subsidiaries against loss or damage
of the kinds customarily insured against by corporations of established
reputation engaged in the same or similar businesses and similarly situated, of
such types and in such amounts as are customarily carried under similar
circumstances by such other corporations and to the extent reasonably prudent
may self-insure.

        Section 5.05.
Inspection. The Company shall permit any authorized representatives
designated by any Bank to visit and inspect any of the properties of the Company
or any of its Subsidiaries, including its and their financial and accounting
records, and, to make copies and take extracts therefrom, and to discuss its and
their affairs, finances and accounts with its and their officers, all upon
reasonable notice and at such reasonable times during normal business hours and
as often as may be reasonably requested; provided that any confidential
information so obtained by any Bank shall remain confidential except where
disclosure is mandated by applicable laws or such information otherwise becomes
public other than by a breach by such Bank of this Section 5.05; provided
further that this Section shall not prohibit any Bank from disclosing to
any Agent (or any Agent from disclosing to any Bank) any Event of Default or
Potential Event of Default.

        Section 5.06. Compliance with Laws. The Company
and its Subsidiaries shall exercise all due diligence in order to comply in all
material respects with the requirements of all applicable laws, rules,
regulations and orders of any Governmental Authority (including, without
limitation, laws, rules and regulations relating to the disposal of hazardous
wastes and asbestos in the environment and ERISA), noncompliance with which
would have a Material Adverse Effect.

Article 6

Negative Covenants

The Company covenants and agrees that, so long as any of the Commitments
shall be in effect or there is any Total Outstanding Amount, unless the Required
Banks shall otherwise give prior written consent, it will perform all covenants
in this Article 6:

        Section 6.01. Merger. The
Company may not consolidate with, merge with or into or sell, lease or otherwise
transfer all or substantially all of its assets (as an entirety or substantially
as an entirety in one transaction or a series of related transactions) to any
Person unless:

            (i) the Company shall be the continuing Person, or the Person (if other
    than the Company) formed by such consolidation or into which the Company is
    merged or to which the properties and assets of the

59

    Company are sold, leased or transferred shall be a solvent corporation
    organized and existing under the laws of the United States or any State
    thereof or the District of Columbia and shall expressly assume, by an
    agreement, executed and delivered to the Banks, in form and substance
    reasonably satisfactory to the Required Banks, all of the obligations of the
    Company under this Agreement and the Competitive Bid Loans;

            (ii) immediately before and immediately after giving effect to such
    transaction, no Event of Default and no Potential Event of Default shall
    have occurred and be continuing; and

            (iii) the Company shall deliver to the Banks an Officer's
    Certificate (attaching the arithmetic computations to demonstrate compliance
    with Section 6.03) and an opinion of counsel, each stating that such
    consolidation, merger, sale, lease or transfer and such agreement comply
    with this Section 6.01 and that all conditions precedent herein provided for
    relating to such transaction have been complied with.

        Section 6.02. Liens. The
Company will not, and will not permit any of its Subsidiaries to, directly or
indirectly, create, incur, assume or permit to exist any Lien on or with respect
to any property or asset (including any document or instrument in respect of
goods or accounts receivable) (other than Margin Stock) of the Company or any of
its Subsidiaries, whether now owned or hereafter acquired, or any income or
profits therefrom, except:

            (i) Liens in existence on the date hereof;

            (ii) Permitted Encumbrances;

            (iii) Liens on accounts receivable sold with recourse;

            (iv) Liens incurred in connection with the
    acquisition of equipment by the Company or any of its Subsidiaries, provided
    that the principal amount of the indebtedness so secured shall not exceed in
    any case 100% of the cost to the Company or such Subsidiary of the equipment
    acquired and provided, further, that each such Lien shall
    cover only the equipment acquired and the proceeds thereof, substitutions
    therefor and replacements thereof; and

            (v) Liens (other than Liens permitted by clauses (i)- (iv) above)
    securing obligations of the Company and its Subsidiaries (including
    Indebtedness) not in excess of an amount equal to 5% of the consolidated
    total assets of the Company and its Subsidiaries, all as determined in
    accordance with GAAP on a consolidated basis for the Company and its
    Subsidiaries.

60

        Nothing in this Section 6.02 shall prohibit the sale, assignment, transfer,
conveyance or other disposition of any Margin Stock owned by the Company or any
of its Subsidiaries at its fair value, or the creation, incurrence, assumption
or existence of any Lien on or with respect to any Margin Stock.

        Section 6.03. Financial
Covenant.  The Company will not at any time permit
(x) Consolidated Indebtedness of Textron Manufacturing less Net
U.S. Based Cash to exceed (y) an amount equal to 65% of
(i) Consolidated Capitalization less (ii) Net U.S.
Based Cash.

        Section 6.04.  Use
of Proceeds. Notwithstanding any provisions of this Agreement to the
contrary, no portion of the proceeds of any borrowing or the Letters of Credit
issued under this Agreement shall be used by the Company in any manner which
would cause the borrowing or the application of such proceeds to violate
Regulation U, Regulation T, or Regulation X of the Board or any other regulation
of the Board or to violate the Exchange Act, in each case as in effect on the
date or dates of such borrowing and such use of proceeds.

Article 7

Events of Default

        If any of the following conditions or events ("Events of Default")
shall occur and be continuing:

        Section 7.01. Failure to
Make Payments When Due. Failure to pay any installment of principal of any
Loan or any reimbursement obligation in respect of any drawing under a Letter of
Credit when due, whether at stated maturity, by acceleration, by notice of
prepayment or otherwise; or failure to pay any interest on any Loan or any other
amount due under this Agreement when due and such default shall continue for 5
days; or

        Section 7.02. Default in
Other Agreements. (i) Failure of the Company or any of its Subsidiaries to
pay when due any principal or interest on any Indebtedness (other than
Indebtedness referred to in Section 7.01) in an individual principal amount of
$100,000,000 or more or items of Indebtedness with an aggregate principal amount
of $100,000,000 or more beyond the end of any period prior to which the obligee
thereunder is prohibited from accelerating payment thereunder or any grace
period after the maturity thereof, or (ii) breach or default of the Company or
any of its Subsidiaries (other than a default arising under any restrictive
provision relating to any sale, pledge or other disposition of Margin Stock
contained in a lending agreement to which any Bank or Affiliate thereof is a
party) with respect to any other term of (y) any evidence of any
Indebtedness in an individual principal amount of $100,000,000 or more or items
of Indebtedness with an aggregate principal amount of $100,000,000 or more; or

61

(z) any loan agreement, mortgage, indenture or other agreement
relating thereto, if such failure, default or breach shall continue for more
than the period of grace, if any, specified therein and shall not at the time of
acceleration hereunder be cured or waived; or

        Section 7.03. Breach of
Certain Covenants. Failure of any Borrower to perform or comply with any
term or condition contained in Section 5.02, 6.01, 6.03 or 6.04 of this
Agreement; or

        Section 7.04. Breach of
Warranty. Any representation or warranty made by any Borrower in this
Agreement or in any statement or certificate at any time given by such Person in
writing pursuant hereto or thereto or in connection herewith or therewith shall
be false in any material respect on the date as of which made; or

        Section 7.05. Other Defaults under Agreement. Any
Borrower shall default in the performance of or compliance with any term
contained in this Agreement other than those referred to above in Section 7.01,
7.03 or 7.04 and such default shall not have been remedied or waived within 30
days after receipt of notice from the Administrative Agent or any Bank of such
default; or

        Section 7.06.
Involuntary Bankruptcy; Appointment of Receiver, etc. (a) A court having
jurisdiction in the premises shall enter a decree or order for relief in respect
of the Company or any of its Restricted Subsidiaries or any Subsidiary Borrower
in an involuntary case under the Bankruptcy Code or any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, which decree or
order is not stayed; or any other similar relief shall be granted under any
applicable federal or state law; or (b) an involuntary case is commenced against
the Company or any of its Restricted Subsidiaries or any Subsidiary Borrower
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect; or a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator, trustee,
custodian or other officer having similar powers over the Company or any of its
Restricted Subsidiaries or any Subsidiary Borrower, or over all or a substantial
part of its property, shall have been entered; or an interim receiver, trustee
or other custodian of the Company or any of its Restricted Subsidiaries or any
Subsidiary Borrower for all or a substantial part of the property of the Company
or any of its Restricted Subsidiaries or any Subsidiary Borrower is
involuntarily appointed; or a warrant of attachment, execution or similar
process is issued against any substantial part of the property of the Company or
any of its Restricted Subsidiaries or any Subsidiary Borrower, and the
continuance of any such events in subpart (b) for 60 days unless dismissed,
bonded or discharged; or

        Section 7.07. Voluntary
Bankruptcy; Appointment of Receiver, etc. The Company or any of its
Restricted Subsidiaries or any Subsidiary Borrower shall

62

have an order for relief entered with respect to it or commence a voluntary
case under the Bankruptcy Code or any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or shall consent to the entry of an
order for relief in an involuntary case, or to the conversion of an involuntary
case to a voluntary case, under any such law, or shall consent to the
appointment of or taking possession by a receiver, trustee or other custodian
for all or a substantial part of its property; the making by the Company or any
of its Restricted Subsidiaries or any Subsidiary Borrower of any assignment for
the benefit of creditors; or the inability or failure of the Company or any of
its Restricted Subsidiaries or any Subsidiary Borrower, or the admission by the
Company or any of its Restricted Subsidiaries or any Subsidiary Borrower in
writing of its inability to pay its debts as such debts become due; or the Board
of Directors of the Company or any Restricted Subsidiary or any Subsidiary
Borrower (or any committee thereof) adopts any resolution or otherwise
authorizes action to approve any of the foregoing; or

        Section 7.08. Judgments and Attachments. Any
money judgment, writ or warrant of attachment, or similar process involving
individually or in the aggregate an amount in excess of $100,000,000 shall be
entered or filed against the Company or any Restricted Subsidiary or any
Subsidiary Borrower or any of its assets and shall remain undischarged,
unvacated, unbonded or unstayed, as the case may be, for a period of 30 days or
in any event later than five days prior to the date of any proposed sale
thereunder; or

        Section 7.09. Dissolution. Any order, judgment
or decree shall be entered against the Company or any of its Restricted
Subsidiaries or any Subsidiary Borrower decreeing the dissolution or split up of
the Company or that Restricted Subsidiary and such order shall remain
undischarged or unstayed for a period in excess of 30 days; or

        Section 7.10. ERISA Title IV Liabilities. (i)
The Company or any of its ERISA Affiliates shall terminate or suffer the
termination of (by action of the PBGC 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 Company's and each ERISA
Affiliate's liabilities to the PBGC or any other Person under Sections
4062, 4063 and 4064 of ERISA (calculated after giving effect to the tax
consequences thereof) resulting from or otherwise associated with the above
described events could reasonably be expected to result in a Material Adverse
Effect; or

(ii)     The Company 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 Company

63

and its ERISA Affiliates become obligated to all Multiemployer Plans requires
annual payments that could reasonably be expected to result in a Material
Adverse Effect;

        THEN (i) upon the occurrence of any Event of Default described in the
foregoing Sections 7.06 or 7.07, the unpaid principal amount of and accrued
interest on all the Loans and any outstanding reimbursement obligation in
respect of any drawing under a Letter of Credit shall automatically become
immediately due and payable, without presentment, demand, protest or other
requirements of any kind, all of which are hereby expressly waived by the
Company and each Borrower, and the Commitments and the obligation of each Bank
to make any Loans hereunder and the obligation of each Issuing Bank to issue any
Letter of Credit hereunder shall thereupon terminate, and (ii) upon the
occurrence of any other Event of Default, the Required Banks may, by written
notice to the Company and each Borrower, (A) terminate the Commitments and the
obligation of each Bank to make any Loans hereunder and the obligation of each
Issuing Bank to issue any Letter of Credit hereunder shall thereupon terminate
and/or (B) declare the unpaid principal amount of and accrued interest on all
the Loans and any outstanding reimbursement obligation in respect of any drawing
under a Letter of Credit to be, and the same shall forthwith become, immediately
due and payable. Nevertheless, if at any time within 60 days after acceleration
of the maturity of the Loans and any outstanding reimbursement obligation in
respect of any drawing under a Letter of Credit, each Borrower shall pay all
arrears of interest and all payments on account of the principal or any
outstanding reimbursement obligation in respect of any drawing under a Letter of
Credit which shall have become due otherwise than by acceleration (with interest
on principal and, to the extent permitted by law, on overdue interest, at the
rates specified in this Agreement) and all other fees and expenses then owed
hereunder and all Events of Default and Potential Events of Default (other than
non payment of principal of and accrued interest on the Loans and any
outstanding reimbursement obligation in respect of any drawing under a Letter of
Credit, in each case due and payable solely by virtue of acceleration) shall be
remedied or waived pursuant to Section 10.05, then the Required Banks by written
notice to the Company may (in their sole discretion) rescind and annul the
acceleration and its consequences; but such action shall not affect any
termination of the Commitments or any subsequent Event of Default or Potential
Event of Default or impair any right consequent thereon.

        Section 7.11.
Redenomination Upon Acceleration. Upon the acceleration of the Loans
outstanding hereunder following the occurrence and the continuance of any Event
of Default, the Required Banks may, at their option, and, notwithstanding
Section 2.12(m) of this Agreement, Redenominate all Eurocurrency Rate Loans
denominated in Alternative Currencies and then outstanding into Eurocurrency
Rate Loans or Base Rate Loans denominated in Dollars. Such Redenomination shall
be equal to the Currency Equivalent

64

(calculated at the date of Redenomination) in Dollars of such Eurocurrency
Rate Loans. In addition, the affected Borrower hereby agrees to indemnify each
Bank against all losses contemplated by Section 2.12(e) of this Agreement
suffered as a result of such Redenomination. In addition, if upon any Event of
Default, any payment default, or for purposes of obtaining a judgment in any
court for any purpose hereunder (including a proceeding under the Bankruptcy
Code), it becomes necessary to determine the Currency Equivalent in Dollars of
any payment obligation hereunder (whether with respect to a principal amount or
interest or otherwise) which is payable in any other currency (an "Other
Currency Obligation"), such determination shall be made at the time (or
from time to time) and to the extent payment (in whole or in part) has actually
been made by the affected Borrower or a judgment has been rendered. A
certificate of a Bank as to the amount required to be paid by the affected
Borrower under this Section shall accompany a demand for such payment and shall
be conclusive and binding for all purposes, absent manifest error.

        Section 7.12. Cash Cover. The Company agrees,
in addition to the provisions in Article 7, 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 7.06 or 7.07 with respect to the Company, the Company shall
pay such amount forthwith without any notice or demand or any other act by the
Administrative Agent or the Banks.

Article 8

Agents

        Section 8.01. Appointment. Each of the Banks
hereby appoints and authorizes each Agent to act hereunder and under the other
instruments and agreements referred to herein as its agent hereunder and
thereunder. Each Agent agrees to act as such upon the express conditions
contained in this Article 8. The provisions of this Article 8 are solely for the
benefit of the Agents, and neither the Company nor any other Borrower shall have
any rights as a third party beneficiary of or any obligations under any of the
provisions hereof. In performing its functions and duties under this Agreement,
each Agent shall act solely as agent of the Banks and does not assume and shall
not be deemed to have assumed any obligation towards or relationship of agency
or trust with or for the Company or any other Borrower.

65

        Section 8.02. Powers; General Immunity. (a) Duties
Specified. Each Bank irrevocably authorizes each Agent to take such action
on such Bank's behalf and to exercise such powers hereunder and under
the other instruments and agreements referred to herein as are specifically
delegated to such Agent by the terms hereof and thereof, together with such
powers as are reasonably incidental thereto. The Agents shall have only those
duties and responsibilities which are expressly specified in this Agreement and
each may perform such duties by or through its agents or employees. The duties
of the Agents shall be mechanical and administrative in nature; and no Agent
shall have by reason of this Agreement a fiduciary or trust relationship in
respect of any Bank; and nothing in this Agreement, expressed or implied, is
intended to or shall be so construed as to impose upon the Agents any
obligations in respect of this Agreement or the other instruments and agreements
referred to herein except as expressly set forth herein or therein.

        (b) No Responsibility for Certain Matters. No Agent shall be
responsible to any Bank for the execution, effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Agreement or any Loan or
any Letter of Credit, or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statement or in
any financial or other statements, instruments, reports, certificates or any
other documents in connection herewith or therewith furnished or made by such
Agent to any Bank or by or on behalf of the Borrower to such Agent or any Bank,
or for the accuracy of any information relating to Competitive Bid Loans
(including as to amounts outstanding at any time), or be required to ascertain
or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained herein or therein or as to the use
of the proceeds of the Loans or the Letters of Credit, or of the existence or
possible existence of any Event of Default or Potential Event of Default.

        (c) Exculpatory Provisions. Neither any Agent
nor any of their respective officers, directors, employees or agents shall be
responsible or liable to any Bank for any action taken or omitted hereunder or
under any of the other Loan Documents or in connection herewith or therewith
unless caused by its or their gross negligence or willful misconduct. If an
Agent shall request instructions from any Bank with respect to any act or action
(including the failure to take an action) in connection with this Agreement,
such Agent shall be entitled to refrain from such act or taking such action
unless and until such Agent shall have received instructions from the Required
Banks. Without prejudice to the generality of the foregoing, (i) the Agents
shall be entitled to rely, and shall be fully protected in relying, upon any
communication, instrument or document believed by it to be genuine and correct
and to have been signed or sent by the proper person or persons, and shall be
entitled to rely and shall be protected in relying on opinions and judgments of
attorneys (who may be attorneys for the Borrower), accountants, experts and
other professional advisors selected by it; and

66

(ii) no Bank shall have any right of action whatsoever against any Agent as a
result of such Agent acting or (where so instructed) refraining from acting
under this Agreement or the other instruments and agreements referred to herein
or therein in accordance with the instructions of the Required Banks. The Agents
shall be entitled to refrain from exercising any power, discretion or authority
vested in it under this Agreement or the other instruments and agreements
referred to herein or therein unless and until it has obtained the instructions
of the Required Banks.

        (d) Agents Entitled to Act as Bank. The agency hereby created shall in
no way impair or affect any of the rights and powers of, or impose any duties or
obligations upon, any Agent in its respective individual capacity as a Bank
hereunder. With respect to its participation in the Loans and the Letters of
Credit, each of JPMorgan Chase and Citibank, N.A. shall have the same rights and
powers hereunder as any other Bank and may exercise the same as though it were
not performing the duties and functions delegated to it hereunder, and the term
"Bank" or "Banks" or any similar term shall,
unless the context clearly otherwise indicates, include the Agents in their
respective individual capacity. Each of JPMorgan Chase and Citibank, N.A. and
their respective Affiliates may accept deposits from, lend money to and
generally engage in any kind of banking, trust, financial advisory or other
business with the Company or any Affiliate or Subsidiary of the Company as if it
were not performing the duties specified herein, and may accept fees and other
consideration from the Company or any such Affiliate or Subsidiary for services
in connection with this Agreement and otherwise without having to account for
the same to the Banks.

        Section 8.03. Representations and Warranties; No
Responsibility for Appraisal of Creditworthiness. Each Bank represents and
warrants that it has made its own independent investigation of the financial
condition and affairs of the Company and each other Borrower in connection with
the making of the Loans hereunder and has made and shall continue to make its
own appraisal of the creditworthiness of the Company. No Agent shall have any
duty or responsibility either initially or on a continuing basis to make any
such investigation or any such appraisal on behalf of any Bank or to provide any
Bank with any credit or other information with respect thereto whether coming
into its possession before the making of the Loan or the issuance of the Letter
of Credit or any time or times thereafter, and no Agent shall further have any
responsibility with respect to the accuracy of or the completeness of the
information provided to the Banks.

        Section 8.04. Right to
Indemnity. Each Bank severally agrees to indemnify each Agent and each
Issuing Bank in accordance with its Pro Rata Share to the extent such Agent or
Issuing Bank shall not have been reimbursed by the Company, for and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including, without limitation, counsel fees
and disbursements) or disbursements of any kind or nature

67

whatsoever which may be imposed on, incurred by or asserted against such
Agent or Issuing Bank in performing its duties hereunder or under the other Loan
Documents or any Letter of Credit or in any way relating to or arising out of
this Agreement; provided that no Bank shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from an Agent's gross
negligence or willful misconduct; provided further that nothing in
this Section 8.04 shall affect any right that a Bank may have against an Issuing
Bank under Section 2.15(f)(ii). If any indemnity furnished to an Agent or
Issuing Bank for any purpose shall, in the opinion of such Agent or Issuing
Bank, be insufficient or become impaired, such Agent or Issuing Bank may call
for additional indemnity and cease, or not commence, to do the acts indemnified
against until such additional indemnity is furnished.

        Section 8.05.
Resignation by the Agents. (a) Any Agent may resign from the performance of
all its functions and duties hereunder at any time by giving 30 days'
prior written notice to the Company and the Banks. Such resignation shall take
effect upon the acceptance by a successor Agent of appointment pursuant to
clauses (b) and (c) below or as otherwise provided below.

        (b) Upon any such notice of resignation, the Required
Banks shall appoint a successor Agent who shall be satisfactory to the Company
and shall be an incorporated bank or trust company with a combined surplus and
undivided capital of at least $500 million.

        (c) If a successor Agent shall not have been so
appointed within said 30 day period, the resigning Agent, with the consent of
the Company, shall then appoint a successor Agent who shall serve in the same
capacity as the resigning Agent until such time, if any, as the Required Banks,
with the consent of the Company, appoint a successor Agent as provided above.

        Section 8.06. Successor Agents. Any Agent may
resign at any time as provided in Section 8.05 hereof. Upon any such notice of
resignation, the Required Banks shall have the right, upon five days'
notice to the Company and subject to Section 8.05 hereof, to appoint a successor
Agent. Upon the acceptance of any appointment by a successor Agent, that
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations as an Agent under this
Agreement. After any retiring Agent's resignation hereunder as an Agent
the provisions of this Article 8 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was an Agent under this Agreement.

        Section 8.07. Syndication Agent. Nothing in
this Agreement shall impose any duty or liability whatsoever on the Syndication
Agent in such capacity.

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Article 9

Guarantee

        Section 9.01. Guarantee. The Company hereby
unconditionally guarantees the due and punctual payment of all principal of and
interest on, and all other amounts now or hereafter payable by any Subsidiary
Borrower to any Bank or Banks or any Agent under this Agreement or any Loans or
any Letters of Credit (collectively, "Guaranteed Obligations")
when any of the same shall become due, whether at stated maturity, by required
payment, declaration, acceleration, demand or otherwise (including amounts which
would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. §362(a)), and agrees to pay any and
all costs and expenses (including reasonable fees and disbursements of counsel)
incurred by any Agent or the Banks in enforcing any rights under this Article 9.

        The Company agrees that the Guaranteed Obligations may be extended or
renewed, in whole or in part, without notice or further assent from it, and that
the Company will remain bound under this Article 9 notwithstanding any
extension, renewal or other alteration of any Guaranteed Obligation.

        Section 9.02. Obligation
Not Affected by Certain Events. The Company waives presentation of, demand
of, and protest of any Guaranteed Obligation and also waives notice of protest
for nonpayment. The obligations of the Company under this Section 9.02 shall not
be affected by:

            (a) the failure of any Bank, any Agent or any other Person to assert any
    claim or demand or to enforce any right or remedy against any Subsidiary
    Borrower or any successor thereto under the provisions of this Agreement or
    any other agreement or otherwise;

            (b) any extension or renewal of any provision of any thereof;

            (c) any change in the time, manner or place of payment of any of the
    Guaranteed Obligations or any rescission, waiver, amendment or modification
    of any of the terms or provisions of this Agreement or any instrument or
    agreement executed pursuant thereto;

            (d) the failure to perfect any security interest in, or the release of,
    any of the security held by any Bank, any Agent or other Person for any of
    the Guaranteed Obligations; or

            (e) any other act or omission to act or delay of any kind by the
    Borrower, any Bank, any Agent or any other Person or any other circumstance
    whatsoever which might, but for the provisions of this paragraph, constitute
    a legal or equitable discharge of or defense to the Guaranteed Obligations.

69

        Section 9.03. Guarantee
of Payment. The Company further agrees that this Section 9.03 constitutes a
guarantee of payment when due and not of collection and waives any right to
require that any resort be had by any Bank or any Agent or any other Person to
any security held for payment of any of the Guaranteed Obligations or to any
balance of any deposit account or credit on the books of any Bank, any Agent or
any other Person in favor of any Subsidiary Borrower or any other Person.

        Section 9.04. Obligation
Not Subject to Limitation. The obligation of the Company under this Section
9.04 shall not be subject to any reduction, limitation, impairment, or
termination for any reason, including, without limitation, any claim of waiver,
release, surrender, alteration or compromise of any of the Guaranteed
Obligations, and shall not be subject to any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of any of the Guaranteed Obligations or discharge of any
Subsidiary Borrower from any of the Guaranteed Obligations in a bankruptcy or
similar proceeding or otherwise. Without limiting the generality of the
foregoing, the obligation of the Company under this Section 9.04 shall not be
discharged or impaired or otherwise affected by the failure of any Bank or any
Agent or any other Person to assert any claim or demand or to enforce any remedy
under this Agreement or any other agreement or instrument or any other
guarantee, by any waiver or modification of any thereof, by any default, or by
any other act or thing or omission or delay to do any other act or thing which
may or might in any manner or to any extent vary the risk of the Company or
which would otherwise operate as a discharge of the Company as a matter of law
or equity.

        The Company further agrees that this Section 9.04 shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of principal of, interest on or any other amount with respect to,
any Guaranteed Obligation is rescinded or must otherwise be restored by any
Bank, any Agent or any other Person upon the bankruptcy or reorganization of any
Subsidiary Borrower, any other Person or otherwise.

        Section 9.05. Order of
Payment. The Company further agrees, in furtherance of the foregoing and not
in limitation of any other right which any Bank, any Agent or any other Person
may have at law or in equity against the Company by virtue of this Section 9.05,
upon the failure of any Subsidiary Borrower to pay any of the Guaranteed
Obligations when and as the same shall become due, whether by required
prepayment, acceleration or otherwise (including amounts which would become due
but for the operation of the automatic stay under Section 362(a) of the
Bankruptcy Code, 11 U.S.C. §362(a)), the Company will forthwith pay, or
cause to be paid, in cash, to the Administrative Agent for the ratable benefit
of the Banks or for the benefit of any Agent, as the case may be, an amount
equal to the sum of the unpaid principal

70

amount of such Guaranteed Obligations then due as aforesaid, accrued and
unpaid interest on such Guaranteed Obligations (including, without limitation,
interest which, but for the filing of a petition in bankruptcy with respect to
any Subsidiary Borrower, would have accrued on such Guaranteed Obligations) and
all other Guaranteed Obligations then owed to the Banks and such Agent as
aforesaid. All such payments shall be applied promptly, from time to time, by
the Administrative Agent:

        First, to the payment of the costs and expenses of any collection, or
other realization under this Section 9.05, including reasonable compensation to
the Agents and their respective agents and counsel, and all expenses,
liabilities and advances made or incurred by the Agents in connection therewith;

        Second, to the payment of accrued but unpaid interest on the Loans
comprising the Guaranteed Obligations;

        Third, to the payment of the Guaranteed Obligations not paid pursuant to
clause Second above;

        Fourth, after payment in full of all Guaranteed Obligations, to the
Company or its successors or assigns, or to whomsoever may be lawfully entitled
to receive the same or as a court of competent jurisdiction may direct, of any
surplus then remaining from such payments.

        Section 9.06. Waiver by
the Company. The Company hereby waives absolutely and irrevocably any claim
which it may have against any of the Subsidiary Borrowers by reason of any
payment to the Banks or any Agent or to any other Person pursuant to or in
respect of the guarantee set forth in this Section 9.06, including any claim by
way of subrogation, contribution, reimbursement, indemnity or otherwise.

Article 10

Miscellaneous

        Section 10.01. Benefit
of Agreement. (a) This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the respective successors and assigns of the
parties hereto, provided that no Borrower may assign or transfer any of
its interest hereunder without the prior written consent of the Banks.

        (b) Any Bank may make, carry or transfer Loans or Letter of Credit
Liabilities at the time owing to it at, to or for the account of, any of its
branch offices or the offices of an Affiliate of such Bank, provided that
doing so shall not

71

cause any Borrower to incur any additional costs hereunder at the time of
such transfer.

        (c) Any Bank may assign its rights and delegate its
obligations under this Agreement and further may sell participations in all or
any part of any Loan or Loans made by it or its Commitment or Letter of Credit
Liabilities at the time owing to it or any other interest herein to another bank
or other entity; provided that (i) in the case of an assignment, such
Bank shall (a) give to the Company and the Administrative Agent prior
notice thereof, and, in the case of any assignment, the Company and the
Administrative Agent shall, except as set forth in the last sentence of this
Section 10.01(c) and in Section 10.01(d), have consented thereto (such consent
not to be unreasonably withheld) and (b) comply with Section 10.01(f)
hereof and thereupon, the assignee "Purchasing Bank" shall
have, to the extent of such assignment (unless otherwise provided thereby), the
rights and benefits described in Section 10.01(f) hereof, and (ii) in
the case of a participation, except as set forth below, (a) the
participant shall not have any rights under this Agreement or any other document
delivered in connection herewith (the participant's rights against such
Bank in respect of such participation to be those set forth in the agreement
executed by such Bank in favor of the participant relating thereto); provided
that a participation agreement may provide that a Bank will not agree to any
modification, amendment or waiver of any provision in this Agreement described
in clause (i), (iii), or (iv) of Section 10.05 without the consent of the
participant and (b) all amounts payable by the Borrower under Sections
2.12(e) and 2.12(i) hereof shall be determined as if the Bank had not sold such
participation. Except with respect to interest rate, principal amount of any
Loan, fees, scheduled dates for payment of principal or interest or fees,
scheduled termination of commitments and commitment amounts, a Bank will not in
any such participation agreement restrict its ability to make any modification,
amendment or waiver to this Agreement without the consent of the participant.
Any Bank may furnish any information concerning the Company in possession of
such Bank from time to time to Affiliates of such Bank and to assignees and
participants (including prospective assignees and participants), provided,
however, that (i) except when such information is furnished to
an Affiliate, the furnishing Bank shall give the Company prior notice of any
furnishing of non public information (ii) the recipient shall agree to
the terms of this Section 10.01 hereof and (iii) the furnishing of such
information (and the nature, manner and extent thereof) by any Bank to its
Affiliates and such assignees and participants shall be further governed by the
relevant agreement, assignment or participation agreement relating to such
arrangement, assignment or participation, as the case may be. Notwithstanding
anything to the contrary in the foregoing, (A) any Bank may, without
the consent of the Company or the Administrative Agent, assign any of its rights
and interests in Loans hereunder to (x) a federal reserve bank,
(y) another Bank or (z) any Affiliate of such Bank; provided
that an Affiliate to whom such disposition has been made shall not be considered
a "Bank" for purposes of Section 10.05 but shall be considered
a

72

"Bank" for purposes of Sections 10.04 and 10.05; and provided
further that the transferor Bank shall be deemed to hold such interests
transferred to its Affiliate for purposes of Section 10.05 for so long as such
interests are held by such Affiliate; and (B) no consent of the Company
to an assignment shall be required if at the time an Event of Default exists.

        (d) Notwithstanding the foregoing provisions of this
Section 10.01, each Bank may at any time, upon 30 days' prior written
notice to the Administrative Agent and the Company, sell, assign, transfer or
negotiate all or any part of its Loans or Commitment if, but only if,
concurrently therewith or prior thereto (a) any Person or two or more
Persons acting in concert shall have acquired beneficial ownership (within the
meaning of Rule 13d-3 of the Securities and Exchange Commission under
the Securities Exchange Act of 1934) of a majority of the outstanding shares of
voting stock of the Company pursuant to one or more transactions not approved,
in their capacities as directors, by at least a majority of the individuals who
served as directors of the Company on the date one year prior to the date of the
first acquisition of voting stock leading to such acquisition or
(b) during any period of 12 consecutive months, commencing before or
after the date of this Agreement, individuals who at the beginning of such 12
month period were directors of the Company cease for any reason to constitute a
majority of the board of directors of the Company.

        (e) Except pursuant to an assignment permitted by this
Agreement but only to the extent set forth in such assignment, no Bank shall, as
between each Borrower and that Bank, be relieved of any of its obligations
hereunder as a result of any sale, transfer or negotiation of, or granting of
participations in, all or any part of the Loans or Commitment of or Letter of
Credit Liabilities at the time owing to that Bank or other obligations owed to
such Bank.

        (f) Any Bank may at any time assign to one or more
banks or other financial institutions all, or a proportionate part of all, of
its rights and obligations under this Agreement, provided that
(i) the minimum amount of such assignment shall be equivalent to
(A) if the Purchasing Bank is not a Bank hereunder, $10,000,000 or the
aggregate amount of the assigning Bank's Commitment, whichever is less
and (B) if the Purchasing Bank is a Bank hereunder, $5,000,000 and
(ii) after giving effect to such assignment, the Commitment of the
assigning Bank is equivalent to not less than $10,000,000, unless such assigning
Bank shall have assigned all of its rights and obligations under this Agreement;
and provided further that any such assignment may, but need not,
include rights of the transferor Bank in respect of outstanding Competitive Bid
Loans or Letter of Credit Liabilities. Any assignment made pursuant to Section
10.01(c) hereof shall be made pursuant to a Transfer Supplement, substantially
in the form of Exhibit F annexed hereto, executed by the Purchasing Bank, the
transferor Bank, the Company and the Administrative Agent. Upon
(i) such execution of such Transfer Supplement, (ii) delivery
of an executed copy thereof to the Borrower,

73

(iii) payment by such Purchasing Bank to such transferor Bank of an
amount equal to the purchase price agreed between such transferor Bank and such
Purchasing Bank, and (iv) payment by such Purchasing Bank or transferor
Bank (as they shall mutually agree) to the Administrative Agent of a non
refundable fee of $3,000 to cover administrative and other expenses which may be
incurred in connection with such assignment, such Purchasing Bank shall for all
purposes be a Bank party to this Agreement and shall have the rights (including
without limitation the benefits of Sections 2.12 and 2.13) and obligations of a
Bank under this Agreement to the same extent as if it were an original party
hereto and thereto with the pro rata Share of the applicable Commitment
set forth in such Transfer Supplement, and no further consent or action by the
Company, the Banks or the Administrative Agent shall be required. Such Transfer
Supplement shall be deemed to amend this Agreement to the extent, and only to
the extent, necessary to reflect the addition of such Purchasing Bank and the
resulting adjustment of pro rata Shares arising from the purchase by such
Purchasing Bank of all or a portion of the rights and obligations of such
transferor Bank under this Agreement and the Loans. Upon the consummation of any
transfer to a Purchasing Bank pursuant to this paragraph (f), the transferor
Bank, the Administrative Agent and the Company shall make appropriate
arrangements so that, if requested, a replacement Note is issued to such
transferor Bank and a new Note or, as appropriate, a replacement Note, if
requested, issued to such Purchasing Bank, in each case in principal amounts
reflecting their pro rata Shares or, as appropriate, their outstanding
Loans, as adjusted pursuant to such Transfer Supplement.

        (g) If the Company shall designate as a Subsidiary Borrower hereunder any
Subsidiary not organized under the laws of the United States or any State
thereof, any Bank may, with notice to the Administrative Agent and the Company,
fulfill its Commitment by causing an Affiliate of such Bank to act as the lender
in respect of such Subsidiary Borrower (and such Bank shall, to the extent of
advances made to and participations in Letters of Credit issued for the account
of such Subsidiary Borrower, be deemed for all purposes hereof to have pro tanto
assigned such advances and participations to such Affiliate in compliance with
the provisions of this Section 10.01).

        Section 10.02. Expenses.
Whether or not the transactions contemplated hereby shall be consummated,
the Company agrees to promptly pay all the actual and reasonable out of pocket
costs and expenses of the Agents in connection with the negotiation, preparation
and execution of this Agreement; the reasonable fees, expenses and disbursements of Davis, Polk & Wardwell,
special counsel to the Agents, in connection with the negotiation, preparation,
execution and administration of this Agreement, the Loans and any amendments and
waivers hereto or thereto; and (iii) all costs and expenses (including
attorneys' fees, expenses and disbursements, and costs of settlement)
incurred by the Banks (including any Issuing Bank) in enforcing any obligations
of or in collecting any payments due from any Borrower hereunder by reason of
the

74

occurrence of any Event of Default or in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the
nature of a "work-out" or of any insolvency or
bankruptcy proceedings or otherwise.

        Section 10.03.
Indemnity. In addition to the payment of expenses pursuant to Section 10.02
hereof, whether or not the transactions contemplated hereby shall be
consummated, the Company agrees to indemnify, pay and hold each Agent and each
Bank (including any Issuing Bank) and the officers, directors, employees,
agents, advisors and affiliates of each of them (collectively called the "Indemnitees")
harmless from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, expenses and disbursements
of any kind or nature whatsoever (including, without limitation, the reasonable
fees, expenses and disbursements of counsel for such Indemnitees in connection
with any investigative, administrative or judicial proceeding commenced or
threatened, whether or not such Indemnitee shall be designated a party thereto),
which may be imposed on, incurred by, or asserted against that Indemnitee, in
any manner relating to or arising out of this Agreement or any Letter of Credit,
the Banks' agreement to make the Loans or the use or intended use of the
proceeds of any of the Loans or Letters of Credit hereunder (the "indemnified
liabilities"); provided that, the Company shall have no
obligation to any Indemnitee hereunder to the extent that such indemnified
liabilities arose from the gross negligence or willful misconduct of that
Indemnitee. To the extent that the undertaking to indemnify, pay and hold
harmless set forth in the preceding sentence may be unenforceable because it is
violative of any law or public policy or otherwise, the Company shall contribute
the maximum portion which it is permitted to pay and satisfy under applicable
law, to the payment and satisfaction of all indemnified liabilities incurred by
the Indemnitees or any of them.

        Section 10.04. Setoff. 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 the Syndicated 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 the Syndicated Loans and Letter of Credit
Liabilities held by such other Bank, the Bank receiving such proportionately
greater payment shall purchase such participations in the Syndicated 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 Syndicated 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

75

indebtedness under the Agreement. Each 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 such Borrower in the
amount of such participation.

        Section 10.05.  Amendments and Waivers.
No amendment, modification, termination or waiver of
any provision of this Agreement or any Note or Letter of Credit or consent to
any departure by any Borrower therefrom shall in any event be effective without
the written concurrence of the Required Banks; provided that (a) any
amendment, modification, termination or waiver (i) of any provision that
expressly requires the approval or concurrence of all Banks, (ii) that
eliminates the Company's guarantee set forth in Article 9 hereof, (iii)
of any provision that affects the definition of "Required Banks"
or (iv) of any of the provisions contained in Section 7.01 hereof and this
Section 10.05, shall be effective only if evidenced by a writing signed by or on
behalf of all Banks, (b) any amendment, modification, termination or waiver (i)
of any provision that increases the principal amount of the Commitments or the
Loans, changes a Bank's pro rata Share, affects the definition of
"Termination Date" or postpones (except as expressly provided
in Section 2.15) the expiry date of any Letter of Credit, (ii) that permits an
extension of the Commitment of any Bank pursuant to Section 2.01(d)(ii) without
the approval of such Bank, (iii) that decreases the amount or changes the due
date of any amount payable in respect of the fees payable hereunder, (iv) of any
of the provisions contained in Sections 2.12(b) and 2.12(c) hereof or (v) that
decreases the principal of or interest rates borne by the Syndicated Loans or
the amount to be reimbursed in respect of any Letter of Credit or any interest
thereon, or postpones the payment of principal or interest due on the Syndicated
Loans or for reimbursement in respect of any Letter of Credit, shall be
effective only if evidenced by a writing signed by or on behalf of each Bank
affected thereby and (c) any waiver with respect to a Competitive Bid Loan can
be given only by the Bank affected with respect thereto. No amendment,
modification, termination or waiver of any provision of Article 8 hereof or any
of the rights, duties, indemnities or obligations of any Agent, as agent shall
be effective without the written concurrence of such Agent. The Administrative
Agent may, but shall have no obligation to, with the concurrence of any Bank,
execute amendments, modifications, waivers or consents on behalf of that Bank.
Any waiver or consent shall be effective only in the specific instance and for
the specific purpose for which it was given. No notice to or demand on any
Borrower in any case shall entitle such Borrower to any further notice or demand
in similar or other circumstances. Any amendment, modification, termination,
waiver or consent effected in accordance with this Section 10.05 shall be
binding upon each present or future Bank and, if signed by such Borrower, on the
Borrower.

76

        Section 10.06. Independence of Covenants. All
covenants hereunder shall be given independent effect so that if a particular
action or condition is not permitted by any of such covenants, the fact that it
would be permitted by an exception to, or be otherwise within the limitation of,
another covenant shall not avoid the occurrence of an Event of Default or
Potential Event of Default if such action is taken or condition exists.

        Section 10.07. Notices. Unless
otherwise provided herein, any notice or other communication herein required or
permitted to be given shall be in writing and may be personally served,
telecopied, telexed or sent by United States mail and shall be deemed to have
been given when delivered in person, upon receipt of telecopy or telex or four
Business Days after depositing it in the United States mail, registered or
certified, with postage prepaid and properly addressed; provided that
notices to the Administrative Agent shall not be effective until received by
such Agent. For the purposes hereof, the addresses of the parties hereto (until
notice of a change thereof is delivered as provided in this Section 10.07) shall
be: (a) in the case of the Company, at its address or facsimile number set forth
on the signature pages hereof, (b) in the case of the Administrative Agent, at
its address, facsimile number or telex number in New York City set forth on the
signature pages hereof, (c) in the case of any Bank, at its address, facsimile
number or telex number set forth in its Administrative Questionnaire or (d) in
the case of any party, at such other address, facsimile number or telex number
as such party may hereafter specify for the purpose by notice to the
Administrative Agent and the Company.

        Section 10.08. Survival of Warranties and Certain
Agreements. (a) All agreements, representations and warranties made
herein shall survive the execution and delivery of this Agreement and the making
of the Loans and the issuances of the Letters of Credit hereunder.

        (b) Notwithstanding anything in this Agreement or implied by law to the
contrary, the agreements of the Company or any other Borrower set forth in
Sections 2.12(e) and 2.12(l), the agreements of the Company set forth in
Sections 10.02 and 10.03 and the agreements of Banks set forth in Sections
8.02(c), 8.04, 10.04 and 10.05 shall survive the payment of the Loans, the
reduction of the Letter of Credit Liabilities to zero and the termination of
this Agreement.

        Section 10.09. USA PATRIOT Act Notice. Each
Bank that is subject to the USA PATRIOT Act and the Administrative Agent (for
itself and not on behalf of any Bank) hereby notifies each Borrower that,
pursuant to the requirements of the USA PATRIOT Act, it may be required to
obtain, verify and record information that identifies such Borrower, which
information includes the name and address of such Borrower and other information
that will allow such Bank or the Administrative Agent, as applicable, to
identify such Borrower in accordance with the USA PATRIOT Act. Any Bank may
request additional information with

77

respect to any Subsidiary Borrower in connection with such Bank's
"know your customer" procedures.

        Section 10.10. Failure or Indulgence Not Waiver;
Remedies Cumulative. No failure or delay on the part of any Bank or lender
of any Loan in the exercise of any power, right or privilege hereunder or the
Loans or Letters of Credit shall impair such power, right or privilege or be
construed to be a waiver of any default or acquiescence therein, nor shall any
single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege. All
rights and remedies existing under this Agreement or the Loans or the Letters of
Credit are cumulative to and not exclusive of any rights or remedies otherwise
available.

        Section 10.11. Severability. In case any
provision in or obligation under this Agreement or Loan shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations thereof, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

        Section 10.12. Obligations Several; Independent
Nature of Banks' Rights. The obligation of each Bank hereunder is
several, and no Bank shall be responsible for the obligation or commitment of
any other Bank hereunder. Nothing contained in this Agreement and no action
taken by the Banks pursuant hereto shall be deemed to constitute the Banks to be
a partnership, an association, a joint venture or any other kind of entity. The
amounts payable at any time hereunder to each Bank shall be a separate and
independent debt, and each Bank shall be entitled to protect and enforce its
rights arising out of this Agreement and it shall not be necessary for any other
Bank to be joined as an additional party in any proceeding for such purpose.

        Section 10.13. Headings. Section and subsection
headings in this Agreement are included herein for convenience of reference only
and shall not constitute a part of this Agreement for any other purpose or be
given any substantive effect.

        Section 10.14. Applicable Law, Consent To
Jurisdiction.

        (a) THIS AGREEMENT, THE NOTES AND THE LOANS SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

        (b) ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY BORROWER WITH RESPECT TO
THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN ANY STATE OR
FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT EACH

78

BORROWER ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY
AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, AND
IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION
WITH THIS AGREEMENT. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE TRIAL BY JURY,
AND EACH BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

        Section 10.15. Successors and Assigns. This
Agreement shall be binding upon the parties hereto and their respective
successors and assigns and shall inure to the benefit of the parties hereto and
the successors and assigns of the Banks. The terms and provisions of this
Agreement shall inure to the benefit of any assignee or transferee of the Loans
and in the event of such transfer or assignment, the rights and privileges
herein conferred upon the Banks shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions hereof. The
Company's or any Borrower's rights or any interest therein
hereunder may not be assigned without the written consent of all the Banks
except pursuant to a merger, consolidation or sale, lease or transfer of assets
permitted by Section 6.01 hereof. The Banks' rights of assignment are
limited by and subject to Section 10.01 hereof. The Company may, in its sole
discretion, upon ten (10) days' prior written notice, replace any of the
Banks with one or more banks provided that (i) the Bank being replaced
has concurrently therewith been paid in full all amounts due to such Bank
hereunder, (ii) the full amount of the Commitments remains unchanged and (iii)
the percentages of the total Commitments allocated to each other Bank (or any
successors thereto) remains unchanged unless the prior written consent from such
Bank has been obtained. Any such Bank so replaced shall, upon written request of
the Company, execute and deliver such instruments and agreements as are
reasonably necessary to accomplish the same.

        Section 10.16.
Counterparts; Effectiveness. This Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument. This Agreement shall
become effective on such date (the "Effective Date") as (i) a
counterpart hereof shall be executed by each of the parties hereto and copies
hereof shall be delivered to the Company and the Syndication Agent and (ii) the
conditions set forth in Section 3.01 shall be satisfied.

79

        Section 10.17. Judgment
Currency. If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due from any Borrower hereunder in the currency
expressed to be payable hereunder (the "Specified Currency")
into another currency, the rate of exchange used shall be that at which in
accordance with normal banking procedures the Administrative Agent or each Bank,
as the case may be, could purchase the Specified Currency with such other
currency on the Business Day preceding that on which final, nonappealable
judgment is given. The obligations of each Borrower in respect of any sum due to
the Administrative Agent or any of the Banks hereunder shall, notwithstanding
any judgment in a currency other than the Specified Currency, be discharged only
to the extent that on the Business Day following receipt by the Administrative
Agent or such Bank, as the case may be, of any sum adjudged to be so due in such
other currency the Administrative Agent or any Bank, as the case may be, may in
accordance with normal, reasonable banking procedures purchase the Specified
Currency with such other currency. If the amount of the Specified Currency so
purchased is less than the sum originally due to the Administrative Agent or
such Bank, in the Specified Currency, each Borrower agrees, to the fullest
extent that it may effectively do so, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent or such
Bank, as the case may be, against such loss.

80

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

 

	
      
        
        Company:
        

      
	
      
        TEXTRON INC.
      

    
	
      By:
	
      /s/ Mary F. Lovejoy

	
      Title:
	
      Vice President and Treasurer

 

	
      Notice Address:

      Textron Inc.

      40 Westminster Street

      Providence, RI 02903

      Attention: Treasurer

      

      Telephone No.

      Telecopy No.

 

	
      with a copy to:

      Textron Inc.

      40 Westminster Street

      Providence, RI 02903

      Attention: General Counsel

81

Commitments

$135,000,000

	
      
         
      

    	 
	 	
      
        JPMORGAN CHASE BANK, N.A.
      

    
	 	
      By:
	
      /s/ Randolph Cates

	 	
      Title:
	
      Vice President

 

 

	
      Notice Address:

      JPMorgan Chase Bank, N.A.

      270 Park Avenue

      New York, New York 10017

      Attention: Randolph Cates

      

      Telephone No.

      Telecopy No.

82

$135,000,000

	 	 
	
      
         
      

    	
      
        CITIBANK, N.A.
      

    
	 	
      By:
	
      /s/ Diane Pockaj

	 	
      Title:
	
      Director

83

$100,000,000

	
      
         
      

    	
      
        BARCLAYS BANK PLC
      

    
	 	
      By:
	
      /s/ David Barton

	 	
      Title:
	
      Associate Director

84

$100,000,000

	 	 
	
      
         
      

    	
      
        BANK OF AMERICA, N.A.
      

    
	 	
      By:
	
      /s/ Sanjay M. Gurnani

	 	
      Title:
	
      Senior Vice President

85

$100,000,000

	
      
         
      

    	
      
        DEUTSCHE BANK AG NEW YORK

               BRANCH
      

    
	 	
      By:
	
      /s/ David G. Dickinson, Jr.

	 	
      Title:
	
      Director

	 	 	 
	 	
      By:
	
      /s/ Andreas Neumeier

	 	
      Title:
	
      Director

86

 

$100,000,000

	
      
         
      

    	
      
        UBS LOAN FINANCE LLC
      

    
	 	
      By:
	
      /s/ Edward Cripps

	 	
      Title:
	
      Director

      Banking Products Services, US

 

	 
	
      By:
	
      /s/ Winslowe Ogbourne

	
      Title: Associate Director

      Banking Products Services, US

87

 

$60,000,000

	
      
         
      

    	
      
        BNP PARIBAS
      

    
	 	
      By:
	
      /s/ Shayn March

	 	
      Title:
	
      Director

	 	 
	 	
      By:
	
      /s/ Angela B. Arnold

	 	
      Title:
	
      Vice President

88

$60,000,000

	
      
         
      

    	
      
        BANK OF TOKYO-MITSUBISHI 

               TRUST COMPANY
      

    
	 	
      By:
	
      /s/ Christian Giordano

	 	
      Title:
	
      Vice President

89

 

$60,000,000

	
      
         
      

    	
      
        CREDIT SUISSE FIRST BOSTON, 

             acting through its Cayman Islands Branch
      

    
	 	
      By:
	
      /s/ Jay Chall

	 	
      Title:
	
      Director

	 	 	 
	 	
      By:
	
      /s/ Karim Blasetti

	 	
      Title:
	
      Associate

90

$60,000,000

	
      
         
      

    	
      
        HSBC BANK USA, NATIONAL

              ASSOCIATION
      

    
	 	
      By:
	
      /s/ Christopher Samms

	 	
      Title:
	
      Senior Vice President, #9426

91

$60,000,000

	
      
         
      

    	
      
        WACHOVIA BANK, N.A.
      

    
	 	
      By:
	
      /s/ Nathan R. Rantala

	 	
      Title:
	
      Vice President

92

$40,000,000

	
      
         
      

    	
      
        MELLON BANK, N.A.
      

    
	 	
      By:
	
      /s/ Laurie G. Dunn

	 	
      Title:
	
      First Vice President

93

$40,000,000

	
      
         
      

    	
      
        BANK OF MONTREAL
      

    
	 	
      By:
	
      /s/ Joseph W. Linder

	 	
      Title:
	
      Vice President

94

$40,000,000

	
      
         
      

    	
      
        MERRILL LYNCH BANK USA
      

    
	 	
      By:
	
      /s/ Louis Alder

	 	
      Title:
	
      Director

95

$40,000,000

	
      
         
      

    	
      
        ROYAL BANK OF CANADA
      

    
	 	
      By:
	
      /s/ Howard Lee

	 	
      Title:
	
      Authorized Signatory

96

$40,000,000

	
      
         
      

    	
      
        THE BANK OF NOVA SCOTIA
      

    
	 	
      By:
	
      /s/ Todd Meller

	 	
      Title:
	
      Managing Director

97

$40,000,000

	
      
         
      

    	
      
        SOCIETE GENERALE
      

    
	 	
      By:
	
      /s/ Ambrish D. Thanawala

	 	
      Title:
	
      Managing Director

98

$40,000,000

	
      
         
      

    	
      
        SUNTRUST BANK
      

    
	 	
      By:
	
      /s/ Heidi M. Khambatta

	 	
      Title:
	
      Director

99

PRICING SCHEDULE

Each of "Facility Fee Rate", "Eurocurrency Margin"
and "Letter of Credit Fee Rate" means, for any date, the rate
set forth below in the row opposite such term and under the column corresponding
to the "Pricing Level" at such date and (in the case of
Eurocurrency Margin) in the row corresponding to the "Utilization"
at such date:

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

	
      Facility Fee Rate
	
      0.06%
	
      0.07%
	
      0.08%
	
      0.10%
	
      0.125%
	
      0.15%

	
      Eurocurrency Margin

      Utilization ≤ 50%

      Utilization > 50%
	
      

      0.115%

      0.215%
	
      

      0.13%

      0.23%
	
      

      0.17%

      0.27%
	
      

      0.35%

      0.45%
	
      

      0.50%

      0.60%
	
      

      0.60%

      0.70%

	
      Letter of Credit Fee Rate
	
      0.215%
	
      0.23%
	
      0.27%
	
      0.45%
	
      0.60%
	
      0.70%

  

        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
Company'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 Company'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 Company'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 Company'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 Company'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 and (ii) the denominator of which is the Total Commitment at
such date. If for any reason any Loans remain outstanding after termination of
the Total Commitment, 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
Company without third-party enhancement, and any rating assigned to any
other debt security of the Company shall be disregarded. The rating in effect at
any date is that in effect at the close of business of such date.

        If the Company 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
Company 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).

2

SCHEDULE 2.15

EXISTING LETTERS OF CREDIT

           Issuing Bank: Bank of America, N.A.

  
	
      Applicant
	
      Beneficiary
	
      L/C No.
	
      Amount
	
      Effective Date
	
      Expiration Date

	
      Cessna Aircraft Company
	
      Bank One
	
      124175
	
      $1,800,530.82
	
      3/31/03
	
      12/15/05

	
      Cessna Aircraft Company
	
      Wells Fargo Bank, Minnesota
	
      149045
	
      $4,260,410.96
	
      3/31/03
	
      04/15/05

	
      Textron Inc. and Cessna Aircraft Company
	
      The Bank of New York as Trustee
	
      3012779
	
      $9,030,195.01
	
      3/31/03
	
      11/03/05

  

           Issuing Bank: JPMorgan Chase Bank, N.A.

  
	
      Applicant
	
      Beneficiary
	
      L/C No.
	
      Amount
	
      Effective Date
	
      Expiration Date

	
      Textron Inc.
	
      Fireman's Fund Insurance
	
      P220814
	
      $2,212,612.00
	
      12/28/01
	
      12/28/05

	
      David Brown Union Pumps and Textron Inc.
	
      Hanjung America Corp.
	
      P291442
	
      $49,026.40
	
      08/06/99
	
      08/06/05

	
      David Brown Union Pumps and Textron Inc.
	
      Banque Exterieure D'Algerie
	
      P294374
	
      $93,208.00
	
      10/29/99
	
      08/30/05

  

 

  
	
      David Brown Union Pumps and Textron Inc.
	
      Hellenic Petroleum SA
	
      P614798
	
      $35,026.10
	
      11/09/04
	
      03/31/05

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P670102
	
      $6,555.50
	
      03/07/05
	
      12/19/05

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P670307
	
      $13,662.00
	
      03/17/05
	
      03/15/06

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P670414
	
      $4,446.19
	
      03/18/05
	
      11/18/05

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P694654
	
      $3,896.25
	
      11/09/04
	
      03/15/06

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P694670
	
      $3,689.00
	
      11/16/04
	
      09/15/05

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P694671
	
      $6,346.30
	
      11/09/04
	
      09/15/05

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P694672
	
      $1,367.50
	
      11/09/04
	
      08/15/05

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P694674
	
      $12,287.30
	
      11/09/04
	
      10/15/05

  

2

  
	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P694847
	
      $4,402.63
	
      11/18/04
	
      09/03/05

	
      David Brown Union Pumps and Textron Inc.
	
      Trade Bank of Iraq
	
      P695983
	
      $17,225.88
	
      01/19/05
	
      01/31/06

	
      David Brown Union Pumps and Textron Inc.
	
      Arab Jordan Investment Bank SA
	
      P713652
	
      $1,644.68
	
      09/28/04
	
      05/31/05

	
      Greenlee and Textron Inc.
	
      TES Electrical Electronic Corp.
	
      B696718
	
      $100,000.00
	
      02/16/05
	
      01/31/06

	
      Greenlee and Textron Inc.
	
      Brymen Technology
	
      B695604
	
      $1,000,000.00
	
      12/30/04
	
      12/31/05

  

3

EXHIBIT A to

Credit Agreement

TEXTRON INC.

PROMISSORY NOTE

	 	
      New York, New York

	 	
      _____ __, 20__

        FOR VALUE RECEIVED, the undersigned [NAME OF BORROWER], a _____________
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the
order of ______________ (the "Payee") for the account of its
Applicable Lending Office, on the maturity date provided for in the Credit
Agreement, the unpaid principal amount of each Loan made by the Payee to the
Borrower pursuant to the Credit Agreement referred to below.

        The Borrower also promises to pay interest on the unpaid principal amount
hereof from the date hereof until paid in full at the rates and at the times
which shall be determined in accordance with the provisions of the
5-Year Credit Agreement dated as of March 28, 2005 (such Agreement, as
amended, amended and restated, supplemented or otherwise modified from time to
time, being the "Credit Agreement") among the Borrower, the Banks
listed therein, JPMorgan Chase Bank, N.A., as Administrative Agent and Citibank,
N.A., as Syndication Agent.

        This Note is one of the Borrower's "Notes" and is issued
pursuant to and entitled to the benefits of the Credit Agreement to which
reference is hereby made for a more complete statement of the terms and
conditions under which the Loans evidenced hereby were made and are to be
repaid. Capitalized terms used herein without definition shall have the meanings
set forth in the Credit Agreement.

        All payments of principal and interest in respect of this Note shall be made
in the currency in which the Loan is denominated in same day funds (or, if the
Loan was made in an Alternative Currency, in such funds as may be then customary
for the settlement of international transactions in such Alternative Currency),
in accordance with the terms of the Credit Agreement. Each of the Payee and any
subsequent holder of this Note agrees, by its acceptance hereof, that before
disposing of this Note or any part thereof it will make a notation on the
Schedule attached hereto of all principal payments previously made hereunder and
of the date to which interest hereon has been paid; provided, however,
that the failure to make a notation of any payment made on this Note shall not
limit or otherwise affect the obligation of the Borrower hereunder with respect
to payments of principal or interest on this Note.

        Whenever any payment on this Note shall be stated to be due on a day which is
not a Business Day, such payment shall be made on the next succeeding Business
Day and such extension of time shall be included in the computation of the
payment of interest on this Note; provided, however, that in the event
that the day on which payment relating to a Eurocurrency Rate Loan is due is not
a Business Day but is a day of the month after which no further Business Day
occurs in such month, then the due date thereof shall be the next preceding
Business Day.

        This Note is subject to mandatory prepayment as provided in Section 2.10(c)
of the Credit Agreement and prepayment at the option of the Borrower as provided
in Section 2.10(b) of the Credit Agreement.

        Upon the occurrence of an Event of Default, the unpaid balance of the
principal amount of this Note, together with all accrued but unpaid interest
thereon, may become, or may be declared to be (shall automatically become and be
declared to be, in the case of certain Events of Default relating to bankruptcy
matters), due and payable in the manner, upon the conditions and with the effect
provided in the Credit Agreement.

        The terms of this Note are subject to amendment only in the manner provided
in the Credit Agreement.

        The Borrower promises to pay all costs and expenses, including
attorneys' fees, all as provided in Section 10.02 of the Credit
Agreement, incurred in the collection and enforcement of this Note. The Borrower
hereby consents to renewals and extensions of time at or after the maturity
hereof, without notice, and hereby waives diligence, presentment, protest,
demand and notice of every kind and, to the full extent permitted by law, the
right to plead any statute of limitations as a defense to any demand hereunder.

        The Credit Agreement and this Note shall be governed by, and shall be
construed and enforced in accordance with, the laws of the State of New York.

        IN WITNESS WHEREOF, the Borrower has caused this Note to be executed and
delivered by its duly authorized officer, as of the day and year and at the
place first above written.

 

	
        TEXTRON INC.
    

	
      By:
	 
	 	
      Name:
	
       

    
	 	
      Title:
	 

2

 

EXHIBIT A

LOANS AND PRINCIPAL PAYMENTS SCHEDULE

  
	
           Date     
	
      Type of Loan Made This

            Date     
	
      Amount of Loan Made

         This Date  
	
      Amount of Principal Paid

         This Date  
	
      Outstanding Principal Balance This

            Date     
	
      Notation  Made By

	 	 	 	 	 	 

  

3

 

EXHIBIT B to

Credit Agreement

OPINION OF COUNSEL

FOR THE

BORROWER

[Letterhead of Textron Inc.]

[DATE]

JPMorgan Chase Bank, N.A.

     as Administrative Agent

270 Park Avenue

New York, New York 10017

     and

The Banks Party to the Credit

Agreement Referenced Below

  
    
      
        Re:     5-Year
        Credit Agreement dated as of March 28, 2005 among Textron Inc., the
        Banks named therein, JPMorgan Chase Bank, N.A., as Administrative Agent
        and Citibank, N.A., as Syndication Agent

        
                                                                                                                                                       

        
      

    

  

Ladies and Gentlemen:

        I am the Senior Associate General Counsel of Textron Inc., a Delaware
corporation ("Company"). This opinion is rendered to you
pursuant to Section 3.01(b) of the 5-Year Credit Agreement dated as of
March 28, 2005 (the "Credit Agreement") among the Company, the
Banks party thereto (the "Banks"), JPMorgan Chase Bank, N.A.,
as Administrative Agent ("Agent") and Citibank, N.A., as
Syndication Agent. The undersigned has prepared this opinion and delivered it to
the Banks for their benefit at the request of the Company. Unless otherwise
defined herein, capitalized terms used herein have the meanings set forth in the
Credit Agreement.

        In my capacity as Senior Associate General Counsel I have examined originals,
or copies identified to my satisfaction, of such records, documents or other
instruments as in my judgment are necessary or appropriate to enable me to
render the opinions expressed below. I am familiar, either directly or by
inquiry of other officers or employees of the Company and its Subsidiaries or
others, and/or through examination of the Company's and its
Subsidiaries' books and records, with the business, affairs and records
of the Company and its Subsidiaries requisite to giving this opinion. Where and
as this opinion states conclusions based upon the absence of facts, I have
received in the course of my employment no contrary information and would expect
to receive such information if an officer of the Company had notice thereof.

        I have been furnished with, and have obtained and relied without independent
investigation upon, such certificates and assurances from public officials as I
have deemed necessary or appropriate. In my examinations, I have assumed (a) the
genuineness of all signatures as to all parties other than the Borrowers, the
conformity to original documents of all documents submitted to them as copies or
drafts and the authenticity of such originals of such latter documents, (b) as
to all Persons other than the Borrowers, the due completion, execution,
acknowledgment as indicated thereon and delivery of documents recited herein and
therein and the validity and enforceability against all parties thereto, and (c)
that each Person other than the Borrowers which is a party to the Credit
Agreement has full power, authority and legal right, under its charter and other
governing documents, corporate legislation and the laws of its jurisdiction of
incorporation, to perform its respective obligations under the Credit Agreement.

        I have investigated such questions of law for the purpose of rendering this
opinion as I have deemed necessary. I am opining herein only as to the United
States federal laws, the corporate laws of the State of Delaware and the laws of
the State of New York.

        On the basis of the foregoing, and in reliance thereon, and subject to the
limitations, qualifications and exceptions set forth herein, I am of the opinion
that:

        1.     Each Borrower is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation. Each Borrower has all requisite corporate
power and authority to own and operate its properties, to carry on its business
as now conducted and proposed to be conducted, to enter into the Credit
Agreement and to carry out the transactions contemplated thereby.

        2.     Each Borrower is in good
standing wherever necessary to carry on its present business and operations,
except in jurisdictions in which the failure to be in good standing has not had
and will not have a material adverse effect on the conduct of the business of
Company and its Subsidiaries, taken as a whole.

        3.     The execution, delivery
and performance of the Credit Agreement and the borrowing of the Loans and the
request for the issuance of each Letter of

B-2

Credit have been duly authorized by all necessary corporate action by each
Borrower.

        4.     The execution, delivery
and performance by each Borrower of the Credit Agreement and the issuance,
delivery and performance of the Notes issued thereunder today and the borrowing
of the Loans and the request for the issuance of each Letter of Credit do not
and will not (i) violate any provision of law applicable to the Company or any
of its Subsidiaries, the Certificates of Incorporation or By-laws of the
Company or any of its Subsidiaries, or, to my knowledge (after inquiry), any
order, judgment or decree of any court or other agency of government binding on
the Company or any of its Subsidiaries, (ii) conflict with, result in a breach
of or constitute (with due notice or lapse of time or both) a default under any
Contractual Obligation of the Company or any of its Subsidiaries of which I am
aware (after inquiry), (iii) result in or require the creation or imposition of
any material Lien upon any of the material properties or assets of the Company
or any of its Subsidiaries under any such Contractual Obligation or (iv) require
any approval of stockholders or any approval or consent of any Person under any
Contractual Obligation of the Company or any of its Subsidiaries of which I am
aware (after inquiry) other than such approvals and consents which will be
obtained on or before the Effective Date.

        5.     The execution, delivery
and performance by each Borrower of the Credit Agreement and the issuance,
delivery and performance by each Borrower of the Notes to be issued by such
Borrower today will not require any registration with, consent or approval of,
or notice to, or other action to, with or by, any federal, state or other
Governmental Authority or regulatory body other than any such registration,
consent, approval, notice or other action which has been duly made, given or
taken.

        6.     The Credit Agreement and
the Notes issued thereunder today are, and, each Loan when made will be, the
legally valid and binding obligations of the applicable Borrower, enforceable
against such Borrower in accordance with its respective terms, except as
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws relating to or limiting creditors' rights generally or
by equitable principles relating to enforceability.

        7.     Except as disclosed in
the Financial Statements delivered to the Banks pursuant to Section 4.03 of the
Credit Agreement, to my knowledge (after inquiry), there is no action, suit,
proceeding, governmental investigation or arbitration (whether or not
purportedly on behalf of the Company or any of its Subsidiaries) at law or in
equity or before or by any federal, state, municipal or other governmental
department, commission, board, bureau, agency, court or instrumentality,
domestic or foreign, pending or, to my knowledge threatened against or affecting
the Company or any of its Subsidiaries or any property of the

B-3

Company or any of its Subsidiaries which is probable of being successful and
which would have Material Adverse Effect.

        8.     Neither the Company nor
any of its Subsidiaries is subject to regulation under the Public Utility
Holding Company Act of 1935 or to any federal or state statute or regulation
limiting its ability to incur Indebtedness for money borrowed as contemplated by
the Credit Agreement.

        9.     Neither the Company nor
any of its Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying any Margin Stock.

                                                                                                                                               
Very truly yours,

  
    
      
        
          
            
              
                
                  
                    
                           

                    

                  

                

              

            

          

        

      

    

  

B-4

Exhibit C to

Credit Agreement

 

[Letterhead of

Davis Polk & Wardwell]

[Date]

To the Banks and the Agents

Referred to Below

c/o JPMORGAN CHASE BANK, N.A.

     as Administrative Agent

270 Park Avenue

New York, New York 10017

Dear Sirs:

        We have participated in the preparation of the 5-Year Credit
Agreement dated as of March 28, 2005 (the "Credit Agreement")
among Textron Inc., a Delaware corporation (the "Company"), the
Banks party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent (the
"Administrative Agent") and Citibank, N.A., as Syndication
Agent (the "Syndication Agent" and together with the
Administrative Agent, the "Agents"), and have acted as special
counsel for the Agents for the purpose of rendering this opinion pursuant to
Section 3.01(c) 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 Company of the Credit Agreement are within the
Company'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 Company and the Notes to be
issued thereunder today constitute a valid and binding obligation of the
Company, in each case enforceable in accordance with 

 its terms, subject to
applicable bankruptcy, insolvency or similar laws affecting creditors'
rights generally and 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,

  
    
      
        
          
            
              
                
                  
                    
                      
                        
                           

                        

                      

                    

                  

                

              

            

          

        

      

    

  

C-2

Exhibit D-1 to

Credit Agreement

[FORM OF NOTICE OF SYNDICATED BORROWING]

        Pursuant to Section 2.01(b) of that certain 5-Year Credit Agreement
dated as of March 28, 2005 among Textron Inc., a Delaware corporation (the
"Company"), the Banks listed therein (the "Banks"),
JPMorgan Chase Bank, N.A., as Administrative Agent (the "Agent")
and Citibank, N.A., as Syndication Agent (such Agreement as amended to the date
hereof being the "Credit Agreement"), this represents the
undersigned Borrower's request to borrow on __________, 20__ from the
Banks in accordance with each Bank's Pro Rata share __________ [specify
currency] as [Base Rate/Eurocurrency Rate] Loans. [The initial Interest Period
for such Loans is requested to be a __________ period.] The proceeds of such
Loans are to be deposited in the Borrower's account designated below.
The Borrower represents and warrants to the Banks and the Agent that, after
giving effect to the Borrowing requested hereby and the making of all loans
requested but not funded as of the proposed Funding Date of the Borrowing
requested hereby, the aggregate principal amount of all Loans outstanding in
Dollars is $____________ and the aggregate principal amount of all Loans
outstanding in [specify for each Alternative Currency in which Loans are
outstanding] is __________. Capitalized terms used herein without definition
shall have the meanings set forth in the Credit Agreement.

Dated:

 

	
      
        [NAME OF BORROWER]
      

    
	
      By:
	
       

    
	 	
      Name:
	 
	 	
      Title:
	 
	 	 	 
	 	 	 
	 	
      Account Designation

	 	
      Name of Bank:

	 	
      Account Number:

 

Exhibit D-2 to

Credit Agreement

[FORM OF NOTICE OF COMPETITIVE BID BORROWING]

[Name and Address of Bank]

Gentlemen:

        The undersigned refers to the 5-Year Credit Agreement, dated as of
March 28, 2005, among Textron Inc., the Banks listed therein, JPMorgan Chase
Bank, N.A., as Administrative Agent and Citibank, N.A., as Syndication Agent
(such agreement as amended to the date hereof being the "Credit
Agreement") and hereby gives you notice pursuant to Section 2.02(b) of
the Credit Agreement that the undersigned hereby requests a Competitive Bid Loan
under the Credit Agreement, and in that connection sets forth the terms on which
such Competitive Bid Loan is requested to be made:

  
	
      (A)
	
      Date of Competitive Bid Borrowing
	
      __________________

	
      (B)
	
      Amount of Competitive Bid Loan
	
      __________________

	
      (C)
	
      Interest Period (Maturity Date)
	
      __________________

	
      (D)
	
      Currency of Competitive Bid Loan
	
      __________________

	
      (E)
	
      Account Designation:
	 
	 	
           Bank
	
      __________________

	 	
           Account Number
	
      __________________

	
      (F)
	
      Interest Payment Date(s)
	
      __________________

	
      (G)
	
      Type of Competitive Bid Loan
	 
	 	
           (Absolute Rate/LIBOR)
	
      __________________

	
      (H)
	
      Aggregate Principal Amount of

      Loans Outstanding in:
	 
	 	
           Dollars
	
      __________________

	 	
           [specify for each
      Alternative

               Currency
      in which Loans

               are
      outstanding]
	
      

      

      __________________

	
      1(I)
	
      ____________________________
	
      __________________

	 	 	 

  

	
      1Insert additional terms, if any.

 

        The undersigned hereby confirms and represents, as of the date hereof and as
of the date of the Competitive Bid Loan, that [2] have been satisfied.

Dated:

 

	
      Very truly yours,

      

      [Name of Borrower]

	
      By:
	
       

    
	 	
      Name:
	 
	 	
      Title:
	 

 

_________________________________

     2Insert conditions
to Borrowing as agreed between the Borrower and the Bank.

D-2-2

Exhibit D-3 to

Credit Agreement

[FORM OF NOTICE OF CONVERSION/CONTINUATION]

        Pursuant to that certain 5-Year Credit Agreement dated as of March
28, 2005 (as amended to the date hereof, the "Credit Agreement")
among Textron Inc. (the "Company"), the Banks listed therein,
JPMorgan Chase Bank, N.A., as Administrative Agent and Citibank, N.A., as
Syndication Agent, this represents the undersigned Borrower's request
[A: to convert $_________ in principal amount of presently outstanding Base Rate
Loans with an Interest Payment Date of __________, 20__ to Eurocurrency Rate
Loans on __________, 20__. The Interest Period for such Eurocurrency Rate Loans
commencing on such Interest Payment Date is requested to be a __________
period.] [B: to continue as Eurocurrency Rate Loans __________ in [specify
currency] in principal amount of presently outstanding [Eurocurrency Rate] Loans
with an Interest Payment Date of __________, 20__. The Interest Period for such
Eurocurrency Rate Loans commencing on such Interest Payment Date is requested to
be a __________ period.] 3

        The undersigned officer, to the best of his knowledge, and the Borrower
certify that no Event of Default or Potential Event of Default has occurred and
is continuing under the Credit Agreement. Capitalized terms used herein without
definition have the meanings set forth in the Credit Agreement.

Dated:

 

	
      
        [Name of Borrower]
      

    
	
      By:
	
       

    
	 	
      Name:
	 
	 	
      Title:
	 

 

________________________________

        3 Insert A or B with appropriate insertions.

Exhibit E to

Credit Agreement

TEXTRON INC.

Compliance Certificate

        With reference to the provisions of Section 5.01 of the 5-Year Credit
Agreement (the "Agreement") dated as of March 28, 2005, as
amended, among Textron Inc. (the "Company"), the Banks listed
therein, JPMorgan Chase Bank, N.A., as Administrative Agent and Citibank, N.A.,
as Syndication Agent, the undersigned, being Vice President and Controller
(Principal Accounting Officer) of the Company, hereby certifies that:

  
        (a)     the consolidated
        balance sheet at [insert date] and the related consolidated statements
        of income and cash flows for the year then ended which were included in
        the accompanying Annual Report on Form 10-K/10-Q for the
        [year/quarter] ended [insert date], present fairly the consolidated
        financial position of Textron Inc. at [insert date] and the consolidated
        results of its operations and its cash flows for the year then ended, in
        conformity with generally accepted accounting principles which have been
        applied on a consistent basis during the period except as noted in such
        Report;

        (b)     with respect to
        Section 6.03(a) of the Agreement, (x) the Consolidated Indebtedness of
        Textron Manufacturing less Net U.S. Based Cash did not exceed
        (y) an amount equal to 65% of (i) Consolidated
        Capitalization less (ii) Net U.S. Based Cash (as such
        terms are defined in the Agreement) as at [insert date] (see Schedule A
        attached hereto);

        (c)     the undersigned
        has reviewed the terms of the Agreement and has made, or caused to be
        made under the undersigned's supervision, a review in reasonable
        detail of the transactions and condition of the Company and its
        consolidated subsidiaries during the accounting period covered by the
        above-referenced financial statements and the undersigned has no
        knowledge of the existence as at the date of this certificate of any
        condition or event which constitutes an Event of Default or a Potential
        Event of Default (as such terms are defined in the Agreement).

  

        IN WITNESS WHEREOF, the undersigned has hereunto set his hand this ___ day of
_________, ____.

	 	
      _______________________________

	 	
      Vice President and Controller

E-2

 

Schedule A

TEXTRON INC.

Financial Covenant

(in millions)

  
	 	
      [Insert Date]

	
      Section 6.03(a) -
	 
	
               Consolidated Indebtedness of Textron Manufacturing
    	
      $
	
               
        
        Less: Net U.S. Based Cash
    	
        
      (                        )

	
      Equals:
	
      $

	
                Maximum permitted:
    	
	
                      
      Consolidated Capitalization, i.e., the sum of (without
          duplication):
    	
	
                         
      (a) Consolidated Indebtedness of Textron Manufacturing
    	$
	
                         
      (b) Plus Consolidated Net Worth
    	
	
                         
      (b) Plus preferred stock of the Company
    	
	
                         
      (c) Plus other securities of the Company convertible
          (whether mandatorily

                           
      or at the option of the holder) into capital
          stock of the Company
    	
      

    

	
          
                         
          Equals: Consolidated Capitalization
    	$
	             
       Less: Net U.S. Based Cash	
          (                        )

    
	             
      Equals:	 $
	             
      X 65% equals maximum permitted as of [Insert Date]	
       $

    
	
      
        
          
        

      

    	
      

  

 

Exhibit F to

Credit Agreement

FORM OF TRANSFER SUPPLEMENT

        TRANSFER SUPPLEMENT, dated as of __________, 20__, among [NAME OF BANK] (the
"Transferor Bank") and each bank listed as a Purchasing Bank on
the signature pages hereof (each, a "Purchasing Bank"), and
JPMorgan Chase Bank, N.A., as Administrative Agent (the "Agent")
for the Banks under the Credit Agreement described below and as agreed to by
Textron Inc., a Delaware corporation (the "Company").

W I T N E S S E
T H

        WHEREAS, this Transfer Supplement is being executed and delivered pursuant to
Section 10.01(f) of the 5-Year Credit Agreement dated as of March 28,
2005, among the Company, the Agent, the Banks listed therein and Citibank, N.A.,
as Syndication Agent (as such agreement may be amended, amended and restated,
supplemented, or otherwise modified from time to time, the "Credit
Agreement"); capitalized terms used and not otherwise defined herein
being used herein as therein defined);

        WHEREAS, each Purchasing Bank (if it is not already a Bank party to the
Credit Agreement) wishes to become a Bank party to the Credit Agreement; and

        WHEREAS, the Transferor Bank is selling and assigning to each Purchasing Bank
certain rights, obligations and commitments of the Transferor Bank under the
Credit Agreement;

        NOW, THEREFORE, the parties hereto hereby agree as follows:

        (a)     Upon the execution and
delivery of this Transfer Supplement by each Purchasing Bank, the Transferor
Bank, the Agent and the Company, each such Purchasing Bank shall be a Bank party
to the Credit Agreement for all purposes thereof.

        (b)     The Transferor Bank
acknowledges receipt from each Purchasing Bank of an amount equal to the
purchase price, as agreed between the Transferor Bank and such Purchasing Bank,
of the portion being purchased by such Purchasing Bank (such Purchasing
Bank's "Purchased Pro Rata Share") of the outstanding
principal amount of, and accrued interest on, the Loans and the Letter of Credit
Liabilities and all other amounts owing to the Transferor Bank under the Credit
Agreement to the extent shown on Schedule I hereto. The Transferor Bank hereby
irrevocably sells, assigns and transfers to each Purchasing Bank, without
recourse, representation or warranty, and each Purchasing Bank hereby
irrevocably purchases, takes and assumes from the Transferor Bank, such
Purchasing Bank's Purchased Pro Rata Share of the Commitment of the
Transferor Bank and the presently outstanding Loans and Letter of Credit
Liabilities and other amounts owing to the Transferor Bank under the Credit
Agreement as shown on Schedule I, together with all the corresponding rights and
obligations of the Transferor Bank in, to and under all instruments and
documents pertaining thereto.

  
(c)     The Transferor Bank has
made arrangements with each Purchasing Bank with respect to the portion, if any,
to be paid by the Transferor Bank to such Purchasing Bank of fees heretofore
received by the Transferor Bank pursuant to the Credit Agreement.

  

        (d)     Each Purchasing Bank or
the Transferor Bank (as they have mutually agreed) has paid to the Agent a
non-refundable fee of $3,000 (per Purchasing Bank) to cover
administrative and other expenses, as provided in Section 10.01(e) of the Credit
Agreement.

        (e)     From and after the date
hereof, principal, interest, fees, commissions and other amounts that would
otherwise be payable to or for the account of the Transferor Bank pursuant to or
in respect of the Credit Agreement or any Letter of Credit Liability transferred
to each Purchasing Bank hereunder shall, instead, be payable to or for the
account of the Transferor Bank and each of the Purchasing Banks, as the case may
be, in accordance with their respective interests as reflected in this Transfer
Supplement, whether such amounts have accrued prior to the date hereof or accrue
subsequent to the date hereof.

        (f)     Concurrently with the
execution and delivery hereof, the Company, the Transferor Bank and each
Purchasing Bank shall make appropriate arrangements so that replacement Notes,
if requested, are issued to the Transferor Bank, and new Notes or replacement
Notes, if requested, are issued to each Purchasing Bank, in each case in
principal amounts reflecting, in accordance with the Credit Agreement,
outstanding Loans owing to them in which they participate and, as appropriate,
their Commitment (as adjusted pursuant to this Transfer Supplement) as shown in
Schedule I.

        (g)     Concurrently with the
execution and delivery hereof, the Agent will, at the expense of the Transferor
Bank, provide to each Purchasing Bank (if it is not already a Bank party to the
Credit Agreement) conformed copies of all documents delivered to the Agent on
the Effective Date in satisfaction of the conditions precedent set forth in the
Credit Agreement.

        (h)     Each of the parties to
this Transfer Supplement agrees that at any time and form time to time upon the
written request of any other party, it will execute and deliver such further
documents and do such further acts and things as

F-2

such other party may reasonably request in order to effect the purposes of
this Transfer Supplement.

        (i)     Schedule I hereto sets
forth the revised Commitment, amount of outstanding Loans and Letter of Credit
Liabilities and the Pro Rata Shares of the Transferor Bank and each Purchasing
Bank as well as administrative information with respect to each Purchasing Bank.

        (j)     THIS TRANSFER SUPPLEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

F-3

        IN WITNESS WHEREOF, the parties hereto have caused this Transfer Supplement
to be executed by their respective duly authorized officers as of the date first
set forth above.

 

	
      
        [NAME OF BANK], as Transferor Bank
      

    
	
      By:
	
       

    
	 	
      Name:
	 
	 	
      Title:
	 

 

	
      [NAME OF PURCHASING BANK],

      as Purchasing Bank

	
      By:
	
       

    
	 	
      Name:
	 
	 	
      Title:
	 

 

	
      JPMORGAN CHASE BANK, N.A.

      as Administrative Agent

    
	
      By:
	
       

    
	 	
      Name:
	 
	 	
      Title:
	 

	
      [Agreed to as of this __

      day of ______, 20__

	
      TEXTRON INC.

	
      By:
	
       

    
	 	
      Name:
	 
	 	
      Title:
	 

F-4

SCHEDULE I

to

Transfer Supplement dated as of ______, 20__

[Transferor Bank]

Amount of Commitment, Outstanding Loans, Letter of Credit Liabilities and Pro
Rata share:

  
	
      Prior to giving effect to transfer:
	 
	
                Amount of Commitment	$
	
                Amount of Outstanding Syndicated Loans	$
	
                Amount of Outstanding Competitive Bid Loans	$
	
               Amount of Outstanding Letter of Credit Liabilities	$
	
               Pro Rata Share	
      %

	
      After giving effect to transfer:	
	
               Amount of Commitment	$
	
               Amount of Outstanding Syndicated Loans	$
	
               Amount of Outstanding Competitive Bid Loans	$
	
               Amount of Outstanding Letter of Credit Liabilities	$
	
                Pro Rata Share	
      %

	
      [Purchasing Bank]
	 
	
      Offices:
	 
	
               
        
        Domestic Lending Office
      	
      
      Notices

	
      
        Address:

        Attn:

        Telephone:

        Telecopy:
      

    	 
	
      
        
        Eurocurrency Lending Office
        

      	
      Notices

	
      
        Address:

        Attn:

        Telephone:

        Telecopy:
      

    	 
	
      Commitment, Loans Transferred and Pro Rata Share:
	 
	
                Amount of Commitment	$
	
               Amount of Outstanding Loans	$
	
               Amount of Letter of Credit Liabilities	$
	
               Purchased Pro Rata Share	
      %

  

Exhibit G to

Credit Agreement

ASSUMPTION AGREEMENT

        Reference is hereby made to the 5-Year Credit Agreement dated as of
March 28, 2005 (such Agreement as amended to the date hereof and as it may be
amended, amended and restated, supplemented or otherwise modified from time to
time in accordance with the terms thereof being the "Credit Agreement")
among Textron Inc., the Banks listed therein, JPMorgan Chase Bank, N.A., as
Administrative Agent and Citibank, N.A., as Syndication Agent. The undersigned
desires to become a Borrower (as defined in the Credit Agreement) under the
Credit Agreement. In consideration of the covenants and mutual promises
contained therein, the undersigned acknowledges the terms of the Credit
Agreement and agrees to assume the Credit Agreement as a Subsidiary Borrower as
if it were originally a signatory thereto and to be bound thereby and under any
Loans and any Letters of Credit (as defined in the Credit Agreement) incurred by
it as if it were an original Borrower thereunder.

 

	
      
        [Insert Name of Subsidiary]
      

    
	
      By:
	
       

    
	 	
      Date:

      

      Notice Address:

      [Insert Name of Subsidiary]

      Textron Inc.

      40 Westminister Street

      Providence, RI 02903

      Attention: Treasurer

      

      with a copy to:

      Textron Inc.

      40 Westminister Street

      Providence, RI 02903

      Attention: General Counsel

 

        The undersigned hereby acknowledges the foregoing and further acknowledges
that the guarantee set forth in Article 9 of the Credit Agreement is not
affected by the addition of the above signed Subsidiary as a Borrower under the
Credit Agreement.

 

	
      
        TEXTRON INC.
      

    
	
      By:
	
       

    
	 	
      Date:

G-2

 

Exhibit H to

Credit Agreement

EXTENSION AGREEMENT

  JPMorgan Chase Bank, N.A., as Administrative Agent

      under the Credit Agreement referred to below

  270 Park Avenue

New York, New York 10017

Ladies and Gentlemen:

        Effective as of [insert pre-effectiveness Termination Date], the
undersigned hereby agrees to extend its Commitment and the Termination Date
under the 5-Year Credit Agreement dated as of March 28, 2005 (the "Credit
Agreement") among Textron Inc., the banks listed therein, JPMorgan
Chase Bank, N.A., as Administrative Agent, and Citibank, N.A., as Syndication
Agent, for one year to [date to which the Termination Date is to be extended]
pursuant to Section 2.01(d) of the Credit Agreement. Terms defined in the Credit
Agreement are used herein as therein defined.

        This Extension Agreement shall be construed in accordance with and governed
by the law of the State of New York. This Extension 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.

 

	
      
        [NAME OF BANK]
      

    
	
      By:
	
       

    
	 	
      Title:
	 

 

 

	
      Agreed and Accepted:

	
      [NAME OF BORROWER]

      as Borrower

	
      By:
	
       

    
	 	
      Title:
	 

	
      TEXTRON INC.

      as Guarantor

	
      By:
	
       

    
	 	
      Title:
	 

	
      JPMORGAN CHASE BANK, N.A.

      as Administrative Agent

	
      By:
	
       

    
	 	
      Title:
	 

 

H-2

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