Document:

2

                          CALCULATION AGENCY AGREEMENT

          CALCULATION AGENCY AGREEMENT, dated as of October 25, 2006 (the
"Agreement"), between Lehman Brothers Holdings Inc. (the "Company") and Lehman
Brothers Inc., as Calculation Agent.

          WHEREAS, the Company has authorized the issuance of up to $5,709,000
aggregate principal amount of Absolute Buffer Notes Due October 25, 2009, Linked
to the Dow Jones EURO STOXX 50(SM) Index (SX5E) (the "Securities")*;

          WHEREAS, the Securities will be issued under an Indenture, dated as of
September 1, 1987, between the Company and Citibank, N.A., as Trustee (the
"Trustee"), as supplemented and amended by supplemental indentures dated as of
November 25, 1987, November 27, 1990, September 13, 1991, October 4, 1993,
October 1, 1995, and June 26, 1997, and incorporating Standard Multiple Series
Indenture Provisions dated July 30, 1987, as amended November 16, 1987
(collectively, the "Indenture"); and

          WHEREAS, the Company requests the Calculation Agent to perform certain
services described herein in connection with the Securities;

          NOW THEREFORE, the Company and the Calculation Agent agree as follows:

          1. Appointment of Agent. The Company hereby appoints Lehman Brothers
Inc., as Calculation Agent, and Lehman Brothers Inc. hereby accepts such
appointment as the Company's agent for the purpose of performing the services
hereinafter described upon the terms and subject to the conditions hereinafter
mentioned.

          2. Calculations and Information Provided. In response to a request
made by the Trustee for a determination of the Maturity Payment Amount due on
the Stated Maturity Date of the Securities, the Calculation Agent shall
determine such Maturity Payment Amount and notify the Trustee of its
determination. The Calculation Agent shall also determine (a) the Successor
Index if publication of the Index is discontinued, (b) the Closing Index Level
if no Successor Index is available or if STOXX or the publisher of any Successor
Index, as the case may be, fails to calculate and publish a Closing Index Level
on any date, (c) adjustments to the Index, Successor Index or Closing Index
Level thereof if the method of calculating any of these items changes in a
material respect or if the Index or Successor Index is in any other way

----------
*    "EURO STOXX" and "EURO STOXX 50" are trademarks of STOXX Limited and "Dow
     Jones EURO STOXX 50 Index" is a service mark of Dow Jones & Company, Inc.
     and have been licensed for use by the Company. The Securities, linked to
     the performance of the Dow Jones EURO STOXX 50 Index, are not sponsored,
     endorsed, sold or promoted by STOXX Limited or Dow Jones & Company, Inc.
     and STOXX Limited and Dow Jones & Company, Inc. make no representation
     regarding the advisability of investing in the Securities.

                                                                               3

modified so that it does not, in the opinion of the Calculation Agent, fairly
represent the level of the Index, or Successor Index, as the case may be, had
such changes or modifications not been made, (d) adjustments to the Threshold
Level, if required in order to reflect adjustments made in the Index or
Successor Index and (e) whether a Market Disruption Event has occurred. The
Calculation Agent shall notify the Trustee of all such adjustments or any such
Successor Index, or if a Market Disruption Event has occurred. Annex A hereto
sets forth the procedures the Calculation Agent will use to determine the
information described in this Section 2.

          3. Calculations. Any calculation or determination by the Calculation
Agent pursuant hereto shall (in the absence of manifest error) be final and
binding. Any calculation made by the Calculation Agent hereunder shall, at the
Trustee's request, be made available at the Corporate Trust Office.

          4. Fees and Expenses. The Calculation Agent shall be entitled to
reasonable compensation for all services rendered by it as agreed to between the
Calculation Agent and the Company.

          5. Terms and Conditions. The Calculation Agent accepts its obligations
herein set out upon the terms and conditions hereof, including the following, to
all of which the Company agrees:

          (a) in acting under this Agreement, the Calculation Agent is acting
     solely as an independent expert of the Company and does not assume any
     obligation toward, or any relationship of agency or trust for or with, any
     of the holders of the Securities;

          (b) unless otherwise specifically provided herein, any order,
     certificate, notice, request, direction or other communication from the
     Company or the Trustee made or given under any provision of this Agreement
     shall be sufficient if signed by any person whom the Calculation Agent
     reasonably believes to be a duly authorized officer or attorney-in-fact of
     the Company or the Trustee, as the case may be;

          (c) the Calculation Agent shall be obliged to perform only such duties
     as are set out specifically herein and any duties necessarily incidental
     thereto;

          (d) the Calculation Agent, whether acting for itself or in any other
     capacity, may become the owner or pledgee of Securities with the same
     rights as it would have had if it were not acting hereunder as Calculation
     Agent; and

          (e) the Calculation Agent shall incur no liability hereunder except
     for loss sustained by reason of its gross negligence or willful misconduct.

          6. Resignation; Removal; Successor. (a) The Calculation Agent may at
any time resign by giving written notice to the Company of such intention on its
part, specifying the date on which its desired resignation shall become
effective, subject to the appointment of a successor Calculation Agent and
acceptance of such appointment by such successor Calculation Agent, as
hereinafter provided. The Calculation Agent hereunder may be removed at any time

                                                                               4

by the filing with it of an instrument in writing signed by or on behalf of the
Company and specifying such removal and the date when it shall become effective.
Such resignation or removal shall take effect upon the appointment by the
Company, as hereinafter provided, of a successor Calculation Agent and the
acceptance of such appointment by such successor Calculation Agent. In the event
a successor Calculation Agent has not been appointed and has not accepted its
duties within 90 days of the Calculation Agent's notice of resignation, the
Calculation Agent may apply to any court of competent jurisdiction for the
designation of a successor Calculation Agent.

          (b) In case at any time the Calculation Agent shall resign, or shall
be removed, or shall become incapable of acting, or shall be adjudged bankrupt
or insolvent, or make an assignment for the benefit of its creditors or consent
to the appointment of a receiver or custodian of all or any substantial part of
its property, or shall admit in writing its inability to pay or meet its debts
as they mature, or if a receiver or custodian of it or all or any substantial
part of its property shall be appointed, or if any public officer shall have
taken charge or control of the Calculation Agent or of its property or affairs,
for the purpose of rehabilitation, conservation or liquidation, a successor
Calculation Agent shall be appointed by the Company by an instrument in writing,
filed with the successor Calculation Agent. Upon the appointment as aforesaid of
a successor Calculation Agent and acceptance by the latter of such appointment,
the Calculation Agent so superseded shall cease to be Calculation Agent
hereunder.

          (c) Any successor Calculation Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor, to the Company and to the Trustee an
instrument accepting such appointment hereunder and agreeing to be bound by the
terms hereof, and thereupon such successor Calculation Agent, without any
further act, deed or conveyance, shall become vested with all the authority,
rights, powers, trusts, immunities, duties and obligations of such predecessor
with like effect as if originally named as Calculation Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then unpaid, shall
thereupon become obligated to transfer, deliver and pay over, and such successor
Calculation Agent shall be entitled to receive, all moneys, securities and other
property on deposit with or held by such predecessor, as Calculation Agent
hereunder.

          (d) Any corporation into which the Calculation Agent hereunder may be
merged or converted or any corporation with which the Calculation Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Calculation Agent shall be a party, or any
corporation to which the Calculation Agent shall sell or otherwise transfer all
or substantially all of the assets and business of the Calculation Agent shall
be the successor Calculation Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

          7. Certain Definitions. Terms not otherwise defined herein or in Annex
A hereto are used herein as defined in the Indenture or the Securities.

          8. Indemnification. The Company will indemnify the Calculation Agent
against any losses or liability which it may incur or sustain in connection with
its appointment or the exercise of its powers and duties hereunder except such
as may result from the gross

                                                                               5

negligence or willful misconduct of the Calculation Agent or any of its agents
or employees. The Calculation Agent shall incur no liability and shall be
indemnified and held harmless by the Company for, or in respect of, any action
taken or suffered to be taken in good faith by the Calculation Agent in reliance
upon written instructions from the Company.

          9. Notices. Any notice required to be given hereunder shall be
delivered in person, sent (unless otherwise specified in this Agreement) by
letter, telex or facsimile transmission or communicated by telephone (confirmed
in a writing dispatched within two Business Days), (a) in the case of the
Company, to it at 745 Seventh Avenue, New York, New York 10019 (facsimile: (646)
758-3204) (telephone: (212) 526-7000), Attention: Treasurer, with a copy to 1301
Avenue of the Americas, New York, New York 10019 (facsimile: (212) 526-0357)
(telephone: (212) 526-7000), Attention: Corporate Secretary, (b) in the case of
the Calculation Agent, to it at 745 Seventh Avenue, New York, New York 10019
(facsimile: (646) 758-4942) (telephone: (212) 526-7000), Attention: Equity
Derivatives Trading and (c) in the case of the Trustee, to it at 388 Greenwich
Street, 14th Floor, New York, New York 10013 (facsimile: (212) 816-5527)
(telephone: (212) 816-5773), Attention: Agency and Trust, or in any case, to any
other address or number of which the party receiving notice shall have notified
the party giving such notice in writing. Any notice hereunder given by telex,
facsimile or letter shall be deemed to be served when in the ordinary course of
transmission or post, as the case may be, it would be received.

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

          11. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

          12. Benefit of Agreement. This Agreement is solely for the benefit of
the parties hereto and their successors and assigns, and no other person shall
acquire or have any rights under or by virtue hereof.

          IN WITNESS WHEREOF, this Calculation Agency Agreement has been entered
into as of the day and year first above written.

                                        LEHMAN BROTHERS HOLDINGS INC.

                                        By: /s/ James J. Killerlane III
                                            ------------------------------------
                                            James J. Killerlane III
                                            Vice President

                                        LEHMAN BROTHERS INC.,
                                        as Calculation Agent

                                        By: /s/ James J. Killerlane III
                                            ------------------------------------
                                            James J. Killerlane III
                                            Vice President

                         [Calculation Agency Agreement]

                                     ANNEX A

     1. The Index.

          The Index is the Dow Jones EURO STOXX 50(SM) Index (the "Index"), as
calculated, published and disseminated by STOXX Limited ("STOXX").

     2. Determination of the Maturity Payment Amount.

          The Calculation Agent shall, at the request of the Trustee, determine
the amount payable on the Stated Maturity Date for each $1,000 principal amount
of Securities (the "Maturity Payment Amount").

          The Maturity Payment Amount shall be the following:

          o    If the Final Index Return is zero or positive, $1,000 + ($1,000 x
               the Upside Participation Rate x the Final Index Return).

          o    If the Final Index Return is negative and the Final Index Level
               is equal to or greater than the Threshold Level, $1,000 + ($1,000
               x the absolute value of the Final Index Return).

          o    If the Final Index Return is negative and the Final Index Level
               is less than the Threshold Level, $1,000 + ($1,000 x the Final
               Index Return).

     3. Discontinuance of the Index.

     (a) If STOXX discontinues publication of the Index and STOXX or another
entity publishes a successor or substitute index (the "Successor Index") that
the Calculation Agent determines, in its sole discretion exercised in good
faith, to be comparable to the discontinued Index, then the Calculation Agent
shall determine each subsequent Closing Index Level to be used in computing the
Maturity Payment Amount by reference to the Closing Index Level of such
Successor Index on the applicable date.

     (b) Upon any selection by the Calculation Agent of a Successor Index, the
Company shall promptly give notice to the holders of the Securities.

     (c) If STOXX discontinues publication of the Index and the Calculation
Agent determines that no Successor Index is available at such time, or if STOXX
(or the publisher of any Successor Index) fails to calculate and publish a
Closing Index Level for the Index (or a Successor Index) on any date when it
would ordinarily do so in accordance with its customary practice, the
Calculation Agent will determine the Closing Index Level to be used for purposes
of computing the Maturity Payment Amount. In such circumstances, the Closing
Index Level will be computed by the Calculation Agent in accordance with the
formula for and method of calculating the Index (or any Successor Index) last in
effect prior to such discontinuance or failure to publish, using the Closing
Index Level (or, if trading in any of the relevant securities has been
materially suspended or materially limited, its good faith estimate of the
Closing Price that would have prevailed but for such suspension or limitation)
on such date of each security

                                                                               2

most recently comprising the Index (or any Successor Index) on the Relevant
Exchange on which such security trades.

     4. Alteration of Method of Calculation.

          If at any time the method of calculating the Index, any Successor
Index or the Closing Index Level thereof on any particular day, is changed in a
material respect, or if the Index or a Successor Index is in any other way
modified so that such index does not, in the opinion of the Calculation Agent,
fairly represent the level of the Index or such Successor Index had such changes
or modifications not been made, then, from and after such time, the Calculation
Agent shall, at the Close of Trading of the Relevant Exchanges on which the
securities comprising the Index or such Successor Index traded on any date the
Closing Index Level thereof is to be determined, make such calculations and
adjustments as, in the good faith judgment of the Calculation Agent, may be
necessary in order to arrive at a level of a stock index comparable to the Index
or such Successor Index, as the case may be, as if such changes or modifications
had not been made. The Calculation Agent shall calculate the Closing Index Level
on any particular day and the Maturity Payment Amount with reference to the
Index or such Successor Index, as adjusted.

          Accordingly, if the method of calculating the Index or a Successor
Index is modified so that the level of such index is a fraction of what it would
have been if it had not been modified, then the Calculation Agent shall adjust
such index in order to arrive at a level of the Index or such Successor Index as
if it had not been modified.

     5. Definitions.

          Set forth below are the terms used in the Agreement and in this Annex
A.

          "Agreement" shall have the meaning set forth in the preamble to this
Agreement.

          "AMEX" shall mean the American Stock Exchange LLC.

          "Business Day", notwithstanding any provision in the Indenture, shall
mean any day that is not a Saturday, a Sunday or a day on which the NYSE, Nasdaq
or AMEX is not open for trading or banking institutions or trust companies in
the City of New York are authorized or obligated by law or executive order to
close.

          "Calculation Agent" shall mean the person that has entered into an
agreement with the Company providing for, among other things, the determination
of the Maturity Payment Amount, which term shall, unless the context otherwise
requires, include its successors and assigns. The initial Calculation Agent
shall be Lehman Brothers Inc.

          "Close of Trading" shall mean, in respect of any Relevant Exchange,
the scheduled weekday closing time on a day on which the Relevant Exchange is
scheduled to be open for trading for its respective regular trading session,
without regard to after hours or any other trading outside of the regular
trading session hours.

                                                                               3

          "Closing Index Level" shall mean, with respect to any day, in the case
of the Index or the Successor Index, the closing level of the Index or the
Successor Index, as the case may be, as reported by STOXX or the publisher of
the Successor Index, as the case may be, on such day or as determined by the
Calculation Agent pursuant to this Agreement.

          "Closing Price" shall mean, with respect to a security on any day, the
last reported sales price for that security on the Relevant Exchange at the
scheduled weekday closing time of the regular trading session of the Relevant
Exchange; provided, however, if such security is listed or traded on a bulletin
board, then the "Closing Price" of the security shall be determined using the
average execution price per share that an affiliate of the Company pays or
receives upon the purchase or sale of the security used to hedge the Company's
obligations under the Securities.

          "Company" shall have the meaning set forth in the preamble to this
Agreement.

          "Exchange Business Day" shall mean any day on which the Index or the
Successor Index is published by its publisher or is otherwise determined by the
Calculation Agent pursuant to this Agreement.

          "Final Index Level" shall equal the Closing Index Level on the
Valuation Date.

          "Final Index Return" shall equal the following:

                     Final Index Level - Initial Index Level
                   -------------------------------------------
                               Initial Index Level

          "Indenture" shall have the meaning set forth in the preamble to this
Agreement.

          "Index" shall have the meaning set forth in Section 1 of this Annex A.

          "Initial Index Level" shall equal 3998.19, the Closing Index Level on
October 20, 2006.

          "Market Disruption Event", with respect to the Index or any Successor
Index shall mean any of the following events has occurred on any day as
determined by the Calculation Agent in its sole discretion:

     (1) A material suspension of or limitation imposed on trading relating to
     the securities that then comprise 20% or more of the Index or any Successor
     Index, by the Relevant Exchanges on which those securities are traded, at
     any time during the one-hour period that ends at the Close of Trading on
     such day, whether by reason of movements in price exceeding limits
     permitted by that Relevant Exchange or otherwise.

     (2) A material suspension of, or limitation imposed on, trading in futures
     or options contracts relating to the Index or any Successor Index by the
     primary exchange or quotation system on which those futures or options
     contracts are traded, at any time during the one-hour period that ends at
     the Close of Trading on such day, whether by reason of movements in price
     exceeding limits permitted by the exchanges or otherwise.

                                                                               4

     (3) Any event, other than an early closure, that disrupts or impairs the
     ability of market participants in general to effect transactions in, or
     obtain market values for, the securities that then comprise 20% or more of
     the Index or any Successor Index on the Relevant Exchanges on which those
     securities are traded, at any time during the one-hour period that ends at
     the Close of Trading on that day.

     (4) Any event, other than an early closure, that disrupts or impairs the
     ability of market participants in general to effect transactions in, or
     obtain market values for, the futures or options contracts relating to the
     Index or any Successor Index on the primary exchange or quotation system on
     which those futures or options contracts are traded at any time during the
     one-hour period that ends at the Close of Trading on that day.

     (5) The closure of the Relevant Exchanges on which securities that then
     comprise 20% or more of the Index or any Successor Index are traded or on
     which futures or options contracts relating to the Index or any Successor
     Index are traded prior to its scheduled closing time unless the earlier
     closing time is announced by the Relevant Exchanges at least one hour prior
     to the earlier of (i) the actual closing time for the regular trading
     session on the Relevant Exchanges and (ii) the submission deadline for
     orders to be entered into the Relevant Exchanges for execution at the Close
     of Trading on that day.

For purposes of determining whether a Market Disruption Event has occurred, the
relevant percentage contribution of a security to the level of the Index or any
Successor Index will be based on a comparison of (x) the portion of the level of
the Index or Successor Index attributable to that security and (y) the overall
level of the Index or Successor Index, in each case immediately before the
occurrence of the Market Disruption Event.

          "Maturity Payment Amount" shall have the meaning set forth in Section
2 of this Annex A.

          "Nasdaq" shall mean The Nasdaq Stock Market, Inc.

          "NYSE" shall mean The New York Stock Exchange, Inc.

          "Relevant Exchange" shall mean, for any security (or any combination
thereof then underlying the Index or any Successor Index), the primary exchange,
quotation system (which includes bulletin board services) or other market of
trading for such security.

          "Securities" shall have the meaning set forth in the preamble to this
Agreement.

          "Stated Maturity Date" shall mean October 25, 2009 (or if October 25,
2009 is not a Business Day, on the next Business Day); provided, that if the
Valuation Date is postponed, the Stated Maturity Date shall be the third
Business Day following the date that the Final Index Level on the postponed
Valuation Date is determined.

          "STOXX" shall have the meaning set forth in Section 1 of this Annex A.

                                                                               5

          "Successor Index" shall have the meaning set forth in Section 3(a) of
this Annex A.

          "Threshold Level" shall mean 3198.55, as it may be adjusted from time
to time by the Calculation Agent to the extent it believes appropriate, in a
manner consistent with the adjustments to the method of calculation of the Index
or a Successor Index described in Sections 3 and 4 of this Annex A and under the
circumstances described in Sections 3 and 4 of this Annex A.

          "Trustee" shall have the meaning set forth in the preamble to this
Agreement.

          "Upside Participation Rate" shall mean 129%.

          "Valuation Date" shall mean October 21, 2009; provided, that if a
Market Disruption Event occurs on such day or such day is not an Exchange
Business Day, then the Valuation Date shall be the next following Exchange
Business Day on which no Market Disruption Event occurs; provided, however, if a
Market Disruption Event occurs on each of the eight Exchange Business Days
following the originally scheduled Valuation Date, then (a) that eighth Exchange
Business Day shall be deemed the Valuation Date and (b) the Calculation Agent
shall determine the Final Index Level based upon its good faith estimate of the
level of the Index on that eighth Exchange Business Day.L-3
COMMUNICATIONS CORPORATION

FIRST AMENDMENT TO AMENDED AND
RESTATED CREDIT AGREEMENT

This FIRST AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT (this
‘‘Amendment’’) is dated as
of October  25,  2006 and entered into by and among L-3
COMMUNICATIONS CORPORATION, a Delaware corporation (the
‘‘Borrower’’) which is
wholly owned by L-3 COMMUNICATIONS HOLDINGS, INC., a Delaware
corporation (‘‘Holdings’’),
the Guarantors party to the Credit Agreement referred to below on the
date hereof
(‘‘Guarantors’’), the
Lenders party to the Credit Agreement referred to below on the date
hereof (the ‘‘Lenders’’),
and BANK OF AMERICA, N.A. (‘‘BOA’’),
as administrative agent for the Lenders (in such capacity, the
‘‘Administrative Agent’’),
Swing Line Lender and an L/C Issuer. All capitalized terms used herein
without definition shall have the same meanings herein as set forth in
the Credit Agreement (as defined below).

W I T N E S S
E T H:

WHEREAS, the Borrower, the Lenders, the
Syndication Agent, the Administrative Agent and certain other parties
have entered into the Amended and Restated Credit Agreement dated as of
July  29,  2005 (as amended, supplemented, restated or
otherwise modified from time to time, the ‘‘Credit
Agreement’’); and

WHEREAS, the
Borrower has requested that certain amendments be made with respect to
the Credit Agreement.

NOW, THEREFORE, in consideration of
the premises and the agreements, provisions and covenants herein
contained, the parties hereto agree as follows:

SECTION
1.    AMENDMENTS TO CREDIT AGREEMENT. Subject to the satisfaction of
each of the conditions to effectiveness set forth in Section 3
of this Amendment, the Borrower and the Required Lenders party to the
Credit Agreement hereby agree to amend the Credit Agreement as
follows:

1.1    Section 1.01 of the Credit Agreement
is hereby amended by inserting the following text at the end of clause
(i) of the definition of Pro Forma Basis:
‘‘(provided, that any non-recurring consulting,
investment banking, legal, accounting, auditing, financing, change of
control and/or similar costs incurred in connection with any
Acquisition and included in the income statement of the Person or
property or assets acquired shall not be so
included).’’

1.2    Section 1.01 of
the Credit Agreement is hereby amended by deleting the defined term and
definition of ‘‘Consolidated Senior Leverage
Ratio.’’

1.3    Section 1.01 of the
Credit Agreement is hereby amended by deleting the text
‘‘Section 8.08(a), (b) and
(c)’’ from the definition of Pro Forma Basis and
inserting ‘‘Section 8.08(a) and
(b)’’ in place
thereof.

1.4    Section 1.03(c) of the Credit
Agreement is hereby amended and restated in its entirety to read as
follows:

‘‘(c) Pro Forma
Calculation. Notwithstanding the foregoing, the parties hereto
acknowledge and agree that all calculations of the Consolidated
Interest Coverage Ratio and Consolidated Leverage Ratio for the
purposes of determining compliance with Section 8.08(a) and
(b) shall be made on a Pro Forma Basis.’’

1.5    Section 8.02(a) of the Credit Agreement is
hereby amended by deleting the text ‘‘Section
8.08(a), (b) and (c)’’ and
inserting ‘‘Section 8.08(a) and
(b)’’ in place
thereof.

1.6    Section 8.08 of the Credit Agreement
is hereby amended by deleting the text appearing in subsection (c)
thereof and inserting ‘‘[INTENTIONALLY
OMITTED]’’ in place
thereof.

1.7    Section 8.12(b) of the Credit
Agreement is hereby amended by adding the following at the end of
clause (v) thereof ‘‘, or a guarantee of any other
obligations of the Borrower or any of its
Subsidiaries’’.

1.8    Schedule 1.01(a) to the
Credit Agreement is hereby amended and restated in its entirety to read
as follows:

‘‘SCHEDULE 1.01(a)

L-3
Communications

Non-recurring
charges

The following non-recurring charge
which has been (or will be) included in the Borrower’s
historical results of operations will be added back to the
Borrower’s Consolidated EBITDA for the respective periods set
forth below:

For the periods ending
September  30,  2006, December  31,  2006 and
March  31,  2007, a charge to Consolidated Net Income in an
amount equal to $125,600,000 in respect of an adverse jury verdict in
favor of OSI Systems, Inc. recorded by the Borrower during the three
month fiscal period which ended June  30,  2006 (the
‘‘OSI Charge’’). For the
avoidance of doubt, if the OSI Charge or any portion thereof is at any
time or from time to time reversed so as to result in one or more
non-recurring gains, such gains shall not be included as part of the
Borrower’s Consolidated EBITDA for the periods in which such
gains would have otherwise been included.’’

SECTION 2.    CONDITIONS TO EFFECTIVENESS OF SECTION 1. The
provisions of Section 1 of this Amendment shall be deemed effective as
of September  30,  2006 when each of the following
conditions have been satisfied (such effective date occurring upon
satisfaction of such conditions being referred to herein as the
‘‘Amendment Effective
Date’’):

2.1    The Borrower shall have
delivered to Administrative Agent executed copies of this Amendment and
each of the Guarantors shall have delivered to the Administrative Agent
executed copies of the Guarantors’ Consent and Acknowledgment to
this Amendment in the form attached hereto;

2.2    The
Required Lenders party to the Credit Agreement shall have delivered to
the Administrative Agent an executed original or facsimile counterpart
of its signature page to this Amendment and the Administrative Agent
shall have acknowledged this Amendment in writing;
and

2.3    The representations and warranties contained in
Section 3 hereof shall be true and correct in all
respects.

SECTION 3.    REPRESENTATIONS AND WARRANTIES. In
order to induce Lenders to enter into this Amendment, the Borrower
represents and warrants to each Lender that the following statements
are true, correct and complete:

3.1    Authorization and
Enforceability.    (a) The Borrower has the corporate power and
authority, and the legal right, to enter into this Amendment and to
carry out the transactions contemplated by, and perform its obligations
under, the Credit Agreement as modified by this Amendment (the
‘‘Agreement’’),
(b) the Borrower has taken all necessary corporate action to
authorize the execution and delivery of this Amendment and
(c) this Amendment and the Agreement have been duly executed and
delivered by the Borrower and, when executed and delivered, will
constitute, the legal, valid and binding obligations of the Borrower,
enforceable against the Borrower in accordance with their respective
terms, subject to (i) the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or similar laws relating to or
affecting creditors’ rights generally, (ii) general equitable
principles (whether considered in a proceeding, in equity or at law)
and (iii) an implied covenant of good faith and fair
dealing.

3.2    Incorporation of Representations and
Warranties From Credit Agreement.    The representations and
warranties contained in Article VI of the Credit Agreement,
after giving effect to the amendments contained in Section 1 of this
Amendment, are and will be true, correct and complete in all material
respects on and as of each of the Amendment Effective Date, to the same

extent as though made on and as of such date,
except to the extent such representations and warranties specifically
relate to an earlier date, in which case they were true, correct and
complete in all material respects on and as of such earlier
date.

3.3    Absence of Default.    No event has
occurred and is continuing or will result from the consummation of the
transactions contemplated by this Amendment that constitutes a Default
or an Event of Default.

SECTION 4.
MISCELLANEOUS.

4.1    Effect on the Credit
Agreement.    Except as specifically provided in this
Amendment, the Credit Agreement and the other Loan Documents shall
remain in full force and effect and are hereby ratified and confirmed.
The execution, delivery and performance of this Amendment shall not,
except as expressly provided herein, constitute a waiver of any
provision of, or operate as a waiver of any right, power or remedy of
the Administrative Agent or any Lender under, the Credit Agreement or
any of the other Loan Documents.

4.2    Fees and
Expenses.    The Borrower acknowledges that all costs, fees and
expenses as described in Section 11.04 of the Credit Agreement incurred
by Administrative Agent and its counsel with respect to this Amendment
and the documents and transactions contemplated hereby shall be for the
account of the Borrower.

4.3    GOVERNING
LAW.    THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW
YORK.

4.4    SUBMISSION TO JURISDICTION; WAIVERS;
WAIVER OF JURY TRIAL; CONFIDENTIALITY.    Each of the terms and
conditions set forth in Sections 11.07, 11.14(b), 11.14(c), 11.14(d)
and 11.15 of the Credit Agreement are hereby incorporated into this
Amendment as if set forth fully herein except that each reference to
‘‘Agreement’’ therein shall be deemed to be
a reference to ‘‘Amendment’’
herein.

4.5    Counterparts.    This Amendment may
be executed counterparts (and by different parties hereto in different
counterparts), each of which when so executed and delivered shall
constitute an original, but all of which when taken together shall
constitute a single contract.

[Signature Pages
Follow]

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

		L-3 COMMUNICATIONS CORPORATION,
a Delaware
corporation

		By:
                                                                                    

		Name:

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		BANK OF AMERICA, N.A.,
 as
Administrative Agent

		By:
                                                                                    

		Title:

		BANK
OF AMERICA, N.A.,
 as a Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

Guarantors’
Acknowledgment and Consent

Each of the undersigned
hereby acknowledges receipt of the attached Amendment and consents to
the execution and performance thereof by L-3 Communications
Corporation. Each of the undersigned hereby also reaffirms that the
Guaranty and any applicable Pledge Agreement of such undersigned in
favor of the Administrative Agent for the ratable benefit of itself and
the Lenders remains in full force and effect.

Dated as of
October  25,
2006

		GUARANTORS:

		L-3
COMMUNICATIONS HOLDINGS, INC.,

a Delaware
corporation

		By:
                                                                                    

		Name:
Christopher C.
Cambria

			
		Title: 	Senior
Vice President, Secretary and General Counsel

		APCOM,
INC.,

a Maryland corporation

		BROADCAST
SPORTS INC.,

a Delaware corporation

		D.P.
ASSOCIATES INC.,

a Virginia corporation

		ELECTRODYNAMICS, INC.,

an Arizona
corporation

		HENSCHEL INC.,

a Delaware
corporation

		HYGIENETICS ENVIRONMENTAL SERVICES,
INC.,

a Delaware corporation

		INTERSTATE
ELECTRONICS CORPORATION,

a California
corporation

		KDI PRECISION PRODUCTS, INC.,

a
Delaware corporation

		L-3 COMMUNICATIONS ADVANCED
LASER SYSTEMS TECHNOLOGY, INC.,

a Florida
corporation

		By:
                                                                                    

			
		Name: 	Christopher
C. Cambria

			
		Title: 	Vice
President and Secretary

[Signature
Pages to Guarantors' Acknowledgment and Consent to First
Amendment
 to Amended and Restated Credit
Agreement

		L-3 COMMUNICATIONS
AEROMET, INC.,

an Oregon
corporation

		L-3 COMMUNICATIONS AIS
GP CORPORATION,

a Delaware
corporation

		L-3 COMMUNICATION
APPLIED SIGNAL AND IMAGE TECHNOLOGY, INC. ,

a Delaware
corporation

		L-3 COMMUNICATIONS
AVIONICS SYSTEMS, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
AVISYS CORPORATION,

a Texas
corporation

		L-3 COMMUNICATIONS AYDIN
CORPORATION,

a Delaware
corporation

		L-3 COMMUNICATIONS CE
HOLDINGS, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
CINCINNATI ELECTRONICS CORPORATION,

an Ohio
corporation

		L-3 COMMUNICATIONS
CRESTVIEW AEROSPACE CORPORATION,

a Delaware
corporation

		L-3 COMMUNICATIONS CSI,
INC.,

a California
corporation

		L-3 COMMUNICATIONS
CYTERRA CORPORATION,

a Delaware
corporation

		L-3 COMMUNICATIONS
DYNAMIC POSITIONING AND CONTROL SYSTEMS, INC.,
 a California
corporation

		L-3 COMMUNICATIONS
ELECTRON TECHNOLOGIES, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
ESSCO, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
EOTECH, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
GOVERNMENT SERVICES, INC.,

a Virginia corporation

		L-3 COMMUNICATIONS ILEX SYSTEMS,
INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
INFRAREDVISION TECHNOLOGY CORPORATION,
a California
corporation

		L-3 COMMUNICATIONS
INVESTMENTS INC.,

a Delaware
corporation

		By:
                                                                                    

			
		Name: 	Christopher
C. Cambria

			
		Title: 	Vice
President and Secretary

[Signature
Pages to Guarantors' Acknowledgment and Consent to First
Amendment to
 Amended and Restated Credit
Agreement

		L-3
COMMUNICATIONS KLEIN ASSOCIATES, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
MARIPRO, INC., 

a California
corporation

		L-3 COMMUNICATIONS MAS
(US) CORPORATION,

a Delaware
corporation

		L-3 COMMUNICATIONS
MOBILE-VISION, INC.,
a New Jersey
corporation

		L-3 COMMUNICATIONS
NAUTRONIX HOLDINGS, INC.,
 a Delaware
corporation

		L-3 COMMUNICATIONS
SAFEVIEW, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
SSG-TINSLEY, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
SECURITY AND DETECTION SYSTEMS, INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
SONOMA EO, INC.,

a California
corporation

		L-3 COMMUNICATIONS
EO/IR, INC.,

a Florida
corporation

		L-3 COMMUNICATIONS TCS,
INC.,

a Delaware
corporation

		L-3 COMMUNICATIONS
TINSLEY LABORATORIES, INC.,
 a California
corporation

		L-3 COMMUNICATIONS TITAN
CORPORATION, 

a Delaware
corporation

		L-3 COMMUNICATIONS
WESTWOOD CORPORATION, 

a Nevada corporation

		LINCOM WIRELESS, INC.,

a
Delaware corporation

		MCTI
ACQUISITION CORPORATION,

a Maryland
corporation

		MICRODYNE COMMUNICATIONS
TECHNOLOGIES INCORPORATED,

a Maryland corporation

		MICRODYNE CORPORATION,

a
Maryland corporation

		MICRODYNE
OUTSOURCING INCORPORATED, 

a Maryland
corporation

		MPRI, INC., 

a
Delaware corporation

		By:
                                                                                    

			
		Name: 	Christopher
C. Cambria

			
		Title: 	Vice
President and Secretary

[Signature
Pages to Guarantors' Acknowledgment and Consent to First
Amendment to
 Amended and Restated Credit
Agreement

		PAC ORD
INC.,

		a Delaware
corporation

		POWER PARAGON,
INC.,

		a Delaware
corporation

		SPD ELECTRICAL SYSTEMS,
INC.,

		a Delaware
corporation

		SPD SWITCHGEAR INC.,

		a Delaware
corporation

		SYCOLEMAN
CORPORATION,

		a Florida
corporation

		TITAN FACILITIES,
INC.,

		a Virginia
corporation

		TROLL TECHNOLOGY
CORPORATION,

		a California
corporation

		WESCAM AIR OPS INC.,

		a Delaware corporation

		WESCAM INCORPORATED,

		a Florida
corporation

		WESCAM HOLDINGS (US)
INC.,

		a Delaware
corporation

		WOLF COACH,
INC.,

		a Massachusetts
corporation

		By:
                                                                                    

			
		Name: 	Christopher
C. Cambria

			
		Title: 	Vice
President and Secretary

		L-3
COMMUNICATIONS INTEGRATED SYSTEMS
L.P.,

		a Delaware limited
partnership

			
		By: 	L-3 COMMUNICATIONS AIS
GP 

CORPORATION, as General
Partner

		By:
                                                                                    

		Name:   Christopher
C. Cambria
Title:     Vice President and Secretary

[Signature Pages to Guarantors'
Acknowledgment and Consent to First Amendment to
 Amended and
Restated Credit Agreement

		L-3 COMMUNICATIONS VERTEX
AEROSPACE LLC, 

a Delaware limited liability
company

			
		By: 	L-3 COMMUNICATIONS

INTEGRATED SYSTEMS L.P., as Sole
Member

			
		By: 	L-3 COMMUNICATIONS AIS GP

CORPORATION, as General Partner

		By:
                                                                                    

		Name:
Christopher C. Cambria
Title:    Vice President and Secretary

		L-3 COMMUNICATIONS FLIGHT CAPITAL
LLC,

		L-3 COMMUNICATIONS FLIGHT INTERNATIONAL
AVIATION LLC,

		L-3 COMMUNICATIONS VECTOR
INTERNATIONAL AVIATION LLC,

		each a Delaware limited
liability company

			
		By: 	L-3
COMMUNICATIONS VERTEX

AEROSPACE LLC, as Sole
Member

			
		By: 	L-3 COMMUNICATIONS
INTEGRATED

SYSTEMS L.P., as Sole
Member

			
		By: 	L-3 COMMUNICATIONS AIS
GP

CORPORATION, as General Partner

		By:
                                                                                    

		Name:
Christopher C. Cambria
Title:    Vice President and Secretary

		WESCAM AIR OPS LLC, 

a Delaware limited
liability company

		By: L-3 COMMUNICATIONS EO/IR,
INC., as Sole Member

		By:
                                                                                    

		Name:
Christopher C. Cambria
Title:    Vice President and Secretary

[Signature Pages to Guarantors'
Acknowledgment and Consent to First Amendment to
 Amended and
Restated Credit Agreement

		WESCAM LLC, 

a
Delaware limited liability
company

			
		By: 	L-3 COMMUNICATIONS
CORPORATION,
 as Sole Member

		By:
                                                                                    

		Name:
Christopher C. Cambria
Title:    Vice President and Secretary

[Signature Pages to Guarantors'
Acknowledgment and Consent to First Amendment to
 Amended and
Restated Credit Agreement

		LEHMAN COMMERCIAL PAPER
INC.,
as a Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		THE BANK OF NEW YORK, as a
Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		WACHOVIA BANK NATIONAL
ASSOCIATION, as a Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		HSBC BANK USA, N.A., as a
Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		THE GOVERNOR AND COMPANY OF THE
BANK OF IRELAND, as a Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		COMERICA BANK, as a
Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		CREDIT INDUSTRIEL ET COMMERCIAL,
as a Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		BARCLAYS BANK PLC, as a
Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		SOCIETE GENERALE, as a
Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		SUNTRUST BANK, as a
Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		THE BANK OF NOVA SCOTIA, as a
Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		CREDIT SUISSE, CAYMAN ISLANDS
BRANCH, as a Lender

		By:
                                                                                    

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		MIZUHO CORPORATE BANK, LTD., as
a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		FORTIS BANK SA/NV, CAYMAN
ISLANDS BRANCH, as a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		FORTIS CAPITAL CORP., as a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		BANK OF TOKYO MITSUBISHI UFJ
TRUST, as a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		BANK OF TOKYO MITSUBISHI UFJ
LTD, as a
Lender    

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED, as a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		RAYMOND JAMES BANK, FSB, as a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		AIB DEBT MANAGEMENT LIMITED, as
a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		CALYON, NEW YORK BRANCH, as a
Lender

		By:                                                                                     

		Title:

[Signature
Pages to First Amendment to Amended and Restated Credit
Agreement]

		COMMERZBANK AG, NEW YORK &
GRAND CAYMAN BRANCHES, as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		JPMORGAN CHASE BANK, N.A., as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		KEYBANK NATIONAL ASSOCIATION ,
as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		MEGA INTERNATIONAL COMMERCIAL
BANK, as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		SUMITOMO MITSUI BANKING
CORPORATION, as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		WESTLB AG, NEW YORK BRANCH, as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		MORGAN STANLEY BANK, as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		NORTH FORK BANK, as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

		SCOTIABANC INC., as a
Lender

		By:                                                                                    

		Title:

[Signature Pages
to First Amendment to Amended and Restated Credit
Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]