HOLDINGS GUARANTY
AGREEMENT
dated as of July 28,
2008
DYNCORP INTERNATIONAL
INC. ,
as Holdings,
WACHOVIA BANK, NATIONAL
ASSOCIATION ,
as Administrative Agent
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1
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1
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SECTION 1.2 Other Definitional
Provisions
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1
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2
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SECTION 2.1 Holdings Guaranty
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2
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SECTION 2.2 Bankruptcy Limitations on
Holdings
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2
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SECTION 2.3 Agreement Regarding
Subrogation
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3
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SECTION 2.4 Agreements for
Reimbursement
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3
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SECTION 2.5 Nature of Holdings
Guaranty
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3
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4
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SECTION 2.7 Modification of Loan Documents,
etc
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5
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SECTION 2.8 Demand by the Administrative
Agent
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6
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SECTION 2.10 Benefits of Holdings
Guaranty
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6
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SECTION 2.11 Termination;
Reinstatement
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6
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7
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ARTICLE III REPRESENTATIONS AND
WARRANTIES
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7
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7
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7
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SECTION 4.2 Amendments, Waivers and
Consents
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SECTION 4.3 Expenses, Indemnification, Waiver of
Consequential Damages, etc
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8
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SECTION 4.4 Governing Law; Jurisdiction; Venue;
Service of Process
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8
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SECTION 4.5 Waiver of Jury Trial
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SECTION 4.6 Injunctive Relief; Punitive
Damages
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SECTION 4.7 No Waiver by Course of Conduct,
Cumulative Remedies
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SECTION 4.8 Successors and Assigns
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10
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SECTION 4.9 Survival of Indemnities
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10
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SECTION 4.10 All Powers Coupled With
Interest
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10
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SECTION 4.11 Titles and Captions
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10
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SECTION 4.12 Severability
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10
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SECTION 4.13 Counterparts; Integration,
Effectiveness
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10
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SECTION 4.14 Advice of Counsel, No Strict
Construction
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10
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SECTION 4.15 Acknowledgements
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11
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11
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SECTION 4.17 Secured Parties
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11
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SECTION 4.18 Joint and Several
Liability
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11
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i
HOLDINGS GUARANTY AGREEMENT (as amended,
restated, supplemented or otherwise modified from time to time,
this “ Holdings Guaranty ”), dated as of
July 28, 2008, is made by DYNCORP INTERNATIONAL INC., a
Delaware corporation (“ Holdings ”), in favor of
WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent (in
such capacity, the “ Administrative Agent ”) for
the ratable benefit of the Secured Parties.
Pursuant to the terms of the Credit Agreement of
even date herewith (as amended, restated, supplemented or otherwise
modified from time to time, the “ Credit Agreement
”), by and among Holdings, DynCorp International LLC, a
Delaware limited liability company (the “ Borrower
”), the banks and other financial institutions from time to
time party thereto (the “ Lenders ”) and the
Administrative Agent, the Lenders have agreed to make Extensions of
Credit to the Borrower upon the terms and subject to the conditions
set forth therein.
Holdings and the Borrower, though separate legal
entities, comprise one integrated financial enterprise, and all
Extensions of Credit to the Borrower will inure, directly or
indirectly, to the benefit of Holdings.
It is a condition precedent to the obligation of
the Lenders to make their respective Extensions of Credit to the
Borrower under the Credit Agreement that Holdings shall have
executed and delivered this Holdings Guaranty to the Administrative
Agent, for the ratable benefit of the Secured Parties.
NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, and to induce the
Administrative Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective
Extensions of Credit to the Borrower thereunder, Holdings hereby
agrees with the Administrative Agent, for the ratable benefit of
the Secured Parties, as follows:
SECTION 1.1 Definitions . The following
terms when used in this Holdings Guaranty shall have the meanings
assigned to them below:
“ Applicable Insolvency Laws
” means all Applicable Law governing bankruptcy,
reorganization, arrangement, adjustment of debts, relief of
debtors, dissolution, insolvency, fraudulent transfers or
conveyances or other similar laws (including, without limitation,
11 U.S.C. Sections 544, 547, 548 and 550 and other
“avoidance” provisions of Title 11 of the United States
Code, as amended or supplemented).
“
Guaranteed Obligations ” has the meaning set forth in
Section 2.1 .
SECTION 1.2 Other Definitional Provisions
. Capitalized terms used and not otherwise defined in this Holdings
Guaranty, including the preambles and recitals hereof, shall have
the meanings ascribed to them in the Credit Agreement. In the event
of a conflict between capitalized terms defined herein and in the
Credit Agreement, the Credit Agreement shall control. The words
“hereof,” “herein”, “hereto”
and “hereunder” and words of similar import when used
in this Holdings Guaranty shall refer to this Holdings Guaranty as
a whole and not to any particular provision of this Holdings
Guaranty, and Section references are to this Holdings Guaranty
unless otherwise specified. The meanings given to terms defined
herein shall be equally applicable to both the singular and plural
forms of such terms. Where the context requires, terms relating to
the Collateral or any part thereof, when used in relation to
Holdings, shall refer to Holdings’ Collateral or the relevant
part thereof.
SECTION 2.1 Holdings Guaranty . Holdings
hereby unconditionally guarantees to the Administrative Agent, for
the ratable benefit of the Secured Parties, and their respective
permitted successors, endorsees, transferees and assigns, the
prompt payment and performance of all Obligations, whether primary
or secondary (whether by way of endorsement or otherwise), whether
now existing or hereafter arising, whether or not from time to time
reduced or extinguished (except by payment thereof) or hereafter
increased or incurred, whether enforceable or unenforceable as
against the Borrower or any other Person, whether or not
discharged, stayed or otherwise affected by any Applicable
Insolvency Law or proceeding thereunder, whether created directly
with the Administrative Agent or any Secured Party or acquired by
the Administrative Agent or any Secured Party through assignment or
endorsement or otherwise, whether matured or unmatured, whether
joint or several, as and when the same become due and payable
(whether at stated maturity or earlier, by reason of acceleration,
mandatory repayment or otherwise), in accordance with the terms of
any such instruments evidencing any such obligations, including all
renewals, extensions or modifications thereof (all of the foregoing
being hereafter collectively referred to as the “
Guaranteed Obligations ”).
SECTION 2.2 Bankruptcy Limitations on
Holdings . Notwithstanding anything to the contrary contained
in Section 2.1 , it is the intention of Holdings and
the Secured Parties that, in any proceeding involving the
bankruptcy, reorganization, arrangement, adjustment of debts,
relief of debtors, dissolution or insolvency or any similar
proceeding with respect to Holdings or its assets, the amount of
Holdings’ obligations with respect to the Guaranteed
Obligations shall be equal to, but not in excess of, the maximum
amount thereof not subject to avoidance or recovery by operation of
Applicable Insolvency Laws. To that end, but only in the event and
to the extent that Holdings’ obligations with respect to the
Guaranteed Obligations or any payment made pursuant to such
Guaranteed Obligations would, but for the operation of the first
sentence of this Section 2.2 , be subject to avoidance or
recovery in any such proceeding under Applicable Insolvency Laws,
the amount of Holdings’ obligations with respect to the
Guaranteed Obligations shall be limited to the largest amount
which, after giving effect thereto, would not, under Applicable
Insolvency Laws, render Holdings’ obligations with respect to
the Guaranteed Obligations unenforceable or avoidable or otherwise
subject to recovery under Applicable Insolvency Laws. To the extent
any payment actually made pursuant to the Guaranteed Obligations
exceeds the limitation of the first sentence of this
Section 2.2 and is otherwise subject to avoidance and
recovery in any such proceeding under Applicable Insolvency Laws,
the amount subject to avoidance shall in all events be limited to
the amount by which such actual payment exceeds such limitation and
the Guaranteed Obligations as limited by the first sentence of this
Section 2.2 shall in all events remain in full force
and effect and be fully enforceable against Holdings. The first
sentence of this Section 2.2 is intended solely to
preserve the rights of the Secured Parties and the Administrative
Agent hereunder against Holdings in such proceeding to the maximum
extent permitted by Applicable Insolvency Laws and neither
Holdings, the Borrower, any Subsidiary Guarantor, any other
guarantor, nor any other Person shall have any right or claim under
such sentence that would not otherwise be available under
Applicable Insolvency Laws in such proceeding.
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SECTION 2.3 Agreement Regarding
Subrogation . Notwithstanding any payment or payments by
Holdings hereunder, or any set-off or application of funds of
Holdings by the Administrative Agent or any Secured Party, or the
receipt of any amounts by the Administrative Agent or any Secured
Party with respect to any of the Guaranteed Obligations, Holdings
shall not be entitled to be subrogated to any of the rights of the
Administrative Agent or any Secured Party against the Borrower, any
Subsidiary Guarantor, any other guarantor, any other Person or
against any collateral security held by the Administrative Agent or
any Secured Party for the payment of the Guaranteed Obligations nor
shall Holdings seek any reimbursement from the Borrower, any
Subsidiary Guarantor, any other guarantor or any other Person in
respect of payments made by Holdings in connection with the
Guaranteed Obligations, until all amounts owing to the
Administrative Agent and the Secured Parties on account of the
Guaranteed Obligations (other than (i) any contingent
indemnification obligations not yet due and (ii) the Specified
Obligations) are indefeasibly paid in full in cash and the
Revolving Credit Commitments are terminated. If any amount shall be
paid to Holdings on account of such subrogation rights at any time
when all of the Guaranteed Obligations (other than (i) any
contingent indemnification obligations not yet due and
(ii) the Specified Obligations) shall not have been
indefeasibly paid in full in cash, such amount shall be held by
Holdings in trust for the Administrative Agent, segregated from
other funds of Holdings, and shall, forthwith upon receipt by
Holdings, be turned over to the Administrative Agent in the exact
form received by Holdings (duly endorsed by Holdings to the
Administrative Agent, if required) to be applied against the
Guaranteed Obligations, whether matured or unmatured, in such order
as set forth in the Credit Agreement.
SECTION 2.4 Agreements for Reimbursement
. Notwithstanding anything to the contrary contained herein, the
parties hereto acknowledge and agree that, as the Borrower is
either a Wholly-Owned Subsidiary of Holdings or part of an
integrated financial enterprise to which Holdings is a party, each
Subsidiary Guarantor shall have a right of reimbursement and
indemnity from Holdings for any amount paid by such Subsidiary
Guarantor in lieu of a right of contribution between the Subsidiary
Guarantors and Holdings.
SECTION 2.5
Nature of Holdings Guaranty .
(a) Holdings agrees that this Holdings
Guaranty is a continuing, unconditional guaranty of payment and
performance and not of collection, and that its obligations under
this Holdings Guaranty shall be primary, absolute and
unconditional, irrespective of, and unaffected by:
(i) the genuineness, validity, regularity,
enforceability or any future amendment of, or change in, the Credit
Agreement, any other Loan Document, any Specified Hedge Agreement,
any Specified Cash Management Arrangement or any other agreement,
document or instrument to which Holdings, the Borrower, any
Subsidiary Guarantor or any of their respective Subsidiaries or
Affiliates is or may become a party;
(ii) the absence of any action to enforce
this Holdings Guaranty, the Credit Agreement, any other Loan
Document, any Specified Hedge Agreement or any Specified Cash
Management Arrangement or the waiver or consent by the
Administrative Agent or any Secured Party with respect to any of
the provisions of this Holdings Guaranty, the Credit Agreement, any
other Loan Document, any Specified Hedge Agreement or any Specified
Cash Management Arrangement;
(iii) the existence, value or condition of,
or failure to perfect its Lien against, any security for or other
guaranty of the Guaranteed Obligations or any action, or the
absence of any action, by the Administrative Agent or any Secured
Party in respect of such security or guaranty (including, without
limitation, the release of any such security or
guaranty);
(iv) any structural change in,
restructuring of or other similar organizational change of
Holdings, the Borrower, any Subsidiary Guarantor, any other
guarantors or any of their respective Subsidiaries or Affiliates;
or
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(v) to the extent permitted by Applicable
Law, any other action or circumstances which might otherwise
constitute a legal or equitable discharge or defense of a surety or
guarantor (other than payment);
it being agreed
by Holdings that, subject to the first sentence of
Section 2.2 , its obligations under this Holdings
Guaranty shall not be discharged until the final indefeasible
payment and performance, in full, of the Guaranteed Obligations
(other than (i) any contingent indemnification obligations not
yet due and (ii) the Specified Obligations) and the
termination of the Revolving Credit Commitments.
(b) Holdings represents, warrants and
agrees that the Guaranteed Obligations and its obligations under
this Holdings Guaranty are not and shall not be subject to any
counterclaims, offsets or defenses of any kind (other than the
defense of payment) against the Administrative Agent, the Secured
Parties, the Borrower or any Subsidiary Guarantor whether now
existing or which may arise in the future.
(c) Holdings hereby agrees and acknowledges
that the Guaranteed Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon
this Holdings Guaranty, and all dealings between the Borrower and
Holdings, on the one hand, and the Administrative Agent and the
Secured Parties, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon this
Holdings Guaranty.
SECTION 2.6 Waivers . To the extent
permitted by Applicable Law, Holdings expressly waives all of the
following rights and defenses (and agrees not to take advantage of
or assert any such right or defense):
(a) any rights it may now or in the future
have under any statute, or at law or in equity, or otherwise, to
compel the Administrative Agent or any Secured Party to proceed in
respect of the Guaranteed Obligations against the Borrower, any
Subsidiary Guarantor, any other guarantor or any other Person or
against any security for or other guaranty of the payment and
performance of the Guaranteed Obligations before proceeding
against, or as a condition to proceeding against,
Holdings;
(b) any defense based upon the failure of
the Administrative Agent or any Secured Party to commence an action
in respect of the Guaranteed Obligations against the Borrower, any
Subsidiary Guarantor, any other guarantor or any other Person or
any security for the payment and performance of the Guaranteed
Obligations;
(c) any right to insist upon, plead or in
any manner whatever claim or take the benefit or advantage of, any
appraisal, valuation, stay, extension, marshalling of assets or
redemption laws, or exemption, whether now or at any time hereafter
in force, which may delay, prevent or otherwise affect the
performance by Holdings of its obligations under, or the
enforcement by the Administrative Agent or the Secured Parties of
this Holdings Guaranty;
(d) any right of diligence, presentment,
demand, protest and notice (except as specifically required herein
or in any other Loan Document) of whatever kind or nature with
respect to any of the Guaranteed Obligations and waives, to the
fullest extent permitted by Applicable Law, the benefit of all
provisions of Applicable Law which are or might be in conflict with
the terms of this Holdings Guaranty; and
(e) any and all right to notice of the
creation, renewal, extension or accrual of any of the Guaranteed
Obligations and notice of or proof of reliance by the
Administrative Agent or any Secured Party upon, or acceptance of,
this Holdings Guaranty.
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Holdings agrees that any notice or directive
given at any time to the Administrative Agent or any Secured Party
which is inconsistent with any of the foregoing waivers shall be
null and voi
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