Document:

EX-10.1

 

EXECUTION COPY

 

 

U.S.$500,000,000

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of August 30, 2007

Among

DRESSER RAND GROUP INC.,

as Domestic Borrower,

D-R HOLDINGS (France) S.A.S.,

as French Borrower,

THE LENDERS PARTY HERETO,

CITICORP NORTH AMERICA, INC.,

as Administrative Agent,

JPMORGAN CHASE BANK, N.A.

and

UBS SECURITIES LLC,

as Co-Syndication Agents

CITIGROUP GLOBAL MARKETS INC.

and

J.P. MORGAN SECURITIES INC.

and

UBS SECURITIES LLC,

as Joint Lead Arrangers and Joint Book Managers

and

NATIXIS

and

WELLS FARGO BANK, N.A.

as Co-Documentation Agents

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I

DEFINITIONS	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Terms Generally
	 	 	41	 
	 
	 	 	 	 
	ARTICLE II

THE CREDITS	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	42	 
	SECTION 2.02. Loans and Borrowings.
	 	 	42	 
	SECTION 2.03. Requests for Borrowings
	 	 	43	 
	SECTION 2.04. Swingline Loans
	 	 	44	 
	SECTION 2.05. Letters of Credit
	 	 	45	 
	SECTION 2.06. Funding of Borrowings
	 	 	51	 
	SECTION 2.07. Interest Elections
	 	 	51	 
	SECTION 2.08. Termination and Reduction of Commitments
	 	 	53	 
	SECTION 2.09. Repayment of Loans; Evidence of Debt
	 	 	53	 
	SECTION 2.10. Repayment of Revolving Facility Loans
	 	 	54	 
	SECTION 2.11. Prepayment of Loans
	 	 	54	 
	SECTION 2.12. Fees
	 	 	55	 
	SECTION 2.13. Interest
	 	 	57	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	57	 
	SECTION 2.15. Increased Costs
	 	 	58	 
	SECTION 2.16. Break Funding Payments
	 	 	59	 
	SECTION 2.17. Taxes
	 	 	60	 
	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	61	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	64	 
	SECTION 2.20. Additional Reserve Costs
	 	 	65	 
	SECTION 2.21. Illegality
	 	 	65	 
	SECTION 2.22. Additional Borrowers
	 	 	65	 
	 
	 	 	 	 
	ARTICLE III

REPRESENTATIONS AND WARRANTIES	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Organization; Powers
	 	 	66	 
	SECTION 3.02. Authorization
	 	 	66	 
	SECTION 3.03. Enforceability
	 	 	67	 
	SECTION 3.04. Governmental Approvals
	 	 	67	 
	SECTION 3.05. Financial Statements
	 	 	67	 
	SECTION 3.06. No Material Adverse Effect
	 	 	68	 
	SECTION 3.07. Title to Properties; Possession Under Leases
	 	 	68	 
	SECTION 3.08. Litigation; Compliance with Laws
	 	 	69	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.09. Federal Reserve Regulations
	 	 	69	 
	SECTION 3.10. Investment Company Act
	 	 	70	 
	SECTION 3.11. Use of Proceeds
	 	 	70	 
	SECTION 3.12. Tax Returns
	 	 	70	 
	SECTION 3.13. No Material Misstatements
	 	 	70	 
	SECTION 3.14. Employee Benefit Plans
	 	 	71	 
	SECTION 3.15. Environmental Matters
	 	 	71	 
	SECTION 3.16. Mortgages
	 	 	72	 
	SECTION 3.17. Location of Real Property
	 	 	72	 
	SECTION 3.18. Solvency
	 	 	72	 
	SECTION 3.19. Labor Matters
	 	 	73	 
	SECTION 3.20. Insurance
	 	 	73	 
	 
	 	 	 	 
	ARTICLE IV

CONDITIONS OF LENDING	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. All Credit Events
	 	 	74	 
	SECTION 4.02. First Credit Event
	 	 	74	 
	SECTION 4.03. Conditions Precedent to the Initial Borrowing of Each Additional Borrower

	 	 	77	 
	 
	 	 	 	 
	ARTICLE V

AFFIRMATIVE COVENANTS	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Existence; Businesses and Properties
	 	 	78	 
	SECTION 5.02. Insurance
	 	 	78	 
	SECTION 5.03. Taxes
	 	 	80	 
	SECTION 5.04. Financial Statements, Reports, etc.
	 	 	80	 
	SECTION 5.05. Litigation and Other Notices
	 	 	82	 
	SECTION 5.06. Compliance with Laws
	 	 	82	 
	SECTION 5.07. Maintaining Records; Access to Properties and Inspections
	 	 	82	 
	SECTION 5.08. Use of Proceeds
	 	 	83	 
	SECTION 5.09. Compliance with Environmental Laws
	 	 	83	 
	SECTION 5.10. Further Assurances
	 	 	83	 
	SECTION 5.11. Fiscal Year
	 	 	84	 
	SECTION 5.12. Proceeds of Certain Dispositions
	 	 	84	 
	SECTION 5.13. Post-Closing Matters
	 	 	85	 
	 
	 	 	 	 
	ARTICLE VI

NEGATIVE COVENANTS	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Indebtedness
	 	 	85	 
	SECTION 6.02. Liens
	 	 	88	 
	SECTION 6.03. Sale and Lease-Back Transactions
	 	 	91	 
	SECTION 6.04. Investments, Loans and Advances
	 	 	92	 
	SECTION 6.05. Mergers, Consolidations, Sales of Assets and Acquisitions
	 	 	93	 
	SECTION 6.06. Dividends and Distributions
	 	 	95	 

ii

 

	 	 	 	 	 
	 	 	Page
	SECTION 6.07. Transactions with Affiliates
	 	 	96	 
	SECTION 6.08. Business of the Domestic Borrower and the Subsidiaries
	 	 	98	 
	SECTION 6.09. Limitation on Modifications of Indebtedness; Modifications of Certificate
of Incorporation, By-Laws and Certain Other Agreements; etc.
	 	 	98	 
	SECTION 6.10. Capital Expenditures
	 	 	100	 
	SECTION 6.11. Interest Coverage Ratio
	 	 	101	 
	SECTION 6.12. Leverage Ratio
	 	 	101	 
	SECTION 6.13. Swap Agreements
	 	 	101	 
	SECTION 6.14. Designated Senior Debt
	 	 	101	 
	 
	 	 	 	 
	ARTICLE VII

EVENTS OF DEFAULT	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Events of Default
	 	 	101	 
	SECTION 7.02. Exclusion of Immaterial Subsidiaries
	 	 	104	 
	 
	 	 	 	 
	ARTICLE VIII

THE AGENTS	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Appointment
	 	 	104	 
	SECTION 8.02. Nature of Duties
	 	 	106	 
	SECTION 8.03. Resignation by the Agents
	 	 	106	 
	SECTION 8.04. Each Agent in Its Individual Capacity
	 	 	106	 
	SECTION 8.05. Indemnification
	 	 	106	 
	SECTION 8.06. Lack of Reliance on Agents
	 	 	107	 
	SECTION 8.07. Sub-Agent
	 	 	107	 
	SECTION 8.08. Appointment of Supplemental Collateral Agents
	 	 	107	 
	 
	 	 	 	 
	ARTICLE IX

MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	108	 
	SECTION 9.02. Survival of Agreement
	 	 	109	 
	SECTION 9.03. Binding Effect
	 	 	109	 
	SECTION 9.04. Successors and Assigns
	 	 	109	 
	SECTION 9.05. Expenses; Indemnity
	 	 	113	 
	SECTION 9.06. Right of Set-off
	 	 	115	 
	SECTION 9.07. Applicable Law
	 	 	115	 
	SECTION 9.08. Waivers; Amendment
	 	 	115	 
	SECTION 9.09. Interest Rate Limitation
	 	 	117	 
	SECTION 9.10. Entire Agreement
	 	 	117	 
	SECTION 9.11. WAIVER OF JURY TRIAL
	 	 	117	 
	SECTION 9.12. Severability
	 	 	118	 
	SECTION 9.13. Counterparts
	 	 	118	 
	SECTION 9.14. Headings
	 	 	118	 
	SECTION 9.15. Jurisdiction; Consent to Service of Process
	 	 	118	 

iii

 

	 	 	 	 	 
	 	 	Page
	SECTION 9.16. Confidentiality
	 	 	119	 
	SECTION 9.17. Citigroup Direct Website Communications
	 	 	119	 
	SECTION 9.18. Release of Liens and Guarantees
	 	 	120	 
	SECTION 9.19. U.S. Patriot Act
	 	 	121	 
	SECTION 9.20. Judgment
	 	 	121	 
	SECTION 9.21. Substitution of Currency
	 	 	121	 
	SECTION 9.22. Termination or Release
	 	 	122	 
	SECTION 9.23. Pledge and Guarantee Restrictions
	 	 	122	 
	SECTION 9.24. Matters Pertaining to the French Borrower and to any Additional Foreign
Borrower organized under the laws of France
	 	 	123	 
	SECTION 9.25. Reaffirmation of Letters of Credit
	 	 	123	 

Exhibits, Annexes and Schedules

	 	 	 
	Exhibit A

	 	Form of Assignment and Acceptance
	Exhibit B

	 	Form of Administrative Questionnaire
	Exhibit C-1

	 	Form of Borrowing Request
	Exhibit C-2

	 	Form of Swingline Borrowing Request
	Exhibit D

	 	Form of Mortgage
	Exhibit E-1

	 	Form of Domestic Collateral Agreement Reaffirmation
	Exhibit E-2

	 	Form of UK Share Charge
	Exhibit E-3A

	 	Form of French Debt Pledge Agreement
	Exhibit E-3B

	 	Form of French Equity Pledge Agreement
	Exhibit E-4

	 	Form of Foreign Guaranty
	Exhibit F

	 	Reserve Costs for Mandatory Costs Rate
	Exhibit G

	 	Form of Solvency Certificate of Dresser-Rand Group Inc.
	Exhibit H

	 	Form of Credit Agreement Supplement
	Exhibit I

	 	Form of TEG Letter
	Exhibit J

	 	Form of Revolving Note
	 
	Schedule 1.01(a)

	 	Certain Subsidiaries
	Schedule 2.01

	 	Commitments
	Schedule 3.01

	 	Organization and Good Standing
	Schedule 3.04

	 	Governmental Approvals
	Schedule 3.07(e)

	 	Condemnation Proceedings
	Schedule 3.07(g)

	 	Subsidiaries
	Schedule 3.07(h)

	 	Subscriptions
	Schedule 3.08(a)

	 	Litigation
	Schedule 3.08(b)

	 	Violations
	Schedule 3.12

	 	Taxes
	Schedule 3.15

Schedule 3.17(a)

	 	Environmental Matters

Owned Real Property
	Schedule 3.17(b)

	 	Leased Real Property
	Schedule 3.19

	 	Labor Matters
	Schedule 3.20

	 	Insurance

iv

 

	 	 	 
	Schedule 4.02(k)

	 	Governmental Approvals
	Schedule 5.13

	 	Post-Closing Matters
	Schedule 6.01

	 	Indebtedness
	Schedule 6.02(a)

	 	Liens
	Schedule 6.04

	 	Investments
	Schedule 6.07

	 	Transactions with Affiliates

v

 

          AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 30, 2007 (this “Agreement”),
among DRESSER-RAND GROUP INC., a Delaware corporation (the “Domestic Borrower”), and D-R
HOLDINGS (France) S.A.S., a corporation organized under the laws of France (the “French
Borrower”), any Additional Foreign Borrower (as hereinafter defined) that becomes a Borrower
(as hereinafter defined) pursuant to the terms thereof, the LENDERS party hereto from time to time,
CITICORP NORTH AMERICA, INC., as administrative agent (in such capacity, together with any
successor administrative agent appointed pursuant to the provisions of Article VIII, the
“Administrative Agent”) and as collateral agent (in such capacity, together with any
successor collateral agent appointed pursuant to the provisions of Article VIII, the
“Collateral Agent”) for the Lenders, JPMORGAN CHASE BANK, N.A. and UBS SECURITIES LLC, each
as co-syndication agent (in such capacity, a “Co-Syndication Agent”), CITIGROUP GLOBAL
MARKETS INC., J.P. MORGAN SECURITIES INC. and UBS SECURITIES LLC, as joint lead arrangers and joint
book managers (in such capacity, the “Joint Lead Arrangers”) and NATIXIS and WELLS FARGO
BANK, N.A., as co-documentation agents, (in such capacity, the “Co-Documentation Agents”).

W
I T N E S S E
T H:

          WHEREAS, the Domestic Borrower, the French Borrower and D-R Holdings (UK) Ltd., as borrowers,
D-R Interholding, LLC, Citicorp North America, Inc., as administrative agent and as collateral
agent for the Lenders (as defined therein) and the other parties referred to therein, entered into
a Credit Agreement (the “Existing Credit Agreement”) dated as of October 29, 2004 and the
parties hereto have agreed to amend and restate the Existing Credit Agreement in its entirety as
set forth in this Agreement; and

          WHEREAS, the Borrowers have requested the Lenders to extend credit in the form of Revolving
Facility Loans and Letters of Credit at any time and from time to time prior to the Revolving
Facility Maturity Date, in an aggregate principal amount at any time outstanding not in excess of
U.S.$500.0 million.

          NOW, THEREFORE, the Lenders are willing to extend such credit to the Borrowers on the terms
and subject to the conditions set forth herein. Accordingly, the parties hereto agree that the
Existing Credit Agreement is hereby amended and restated as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms shall
have the meanings specified below:

          “ABR Borrowing” shall mean a Borrowing comprised of ABR Loans.

          “ABR Loan” shall mean any ABR Revolving Loan or Swingline Loan.

          “ABR Revolving Facility Borrowing” shall mean a Borrowing comprised of ABR Revolving
Loans.

 

 

          “ABR Revolving Loan” shall mean any Revolving Facility Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the provisions of Article II.

          “Additional Foreign Borrower” shall mean any direct or indirect wholly-owned Foreign
Subsidiary of the Domestic Borrower that shall become a party to this Agreement pursuant to Section
2.22.

          “Additional Foreign Subsidiary Loan Party” shall mean with respect to each Additional
Foreign Borrower, each Wholly Owned Subsidiary of such Additional Foreign Borrower that (a) is (i)
a Foreign Subsidiary, (ii) a Material Subsidiary and (iii) organized under the same jurisdiction as
such Additional Foreign Borrower and (b) is not (i) a Special Purpose Receivables Subsidiary, (ii)
listed on Schedule 1.01(a), or (iii) a Subsidiary whose guarantee of the Obligations of
such Additional Foreign Borrower is prohibited under Section 9.23.

          “Adjusted LIBO Rate” shall mean, with respect to any Eurocurrency Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%)
equal to the product of (a) the LIBO Rate in effect for such Interest Period and (b) Statutory
Reserves applicable to such Eurocurrency Borrowing, if any.

          “Administrative Agent” shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.

          “Administrative Agent Fees” shall have the meaning assigned to such term in Section
2.12(c).

          “Administrative Questionnaire” shall mean an Administrative Questionnaire in the form
of Exhibit B.

          “Affiliate” shall mean, when used with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the Person specified.

          “Agent Parties” shall have the meaning assigned to such term in Section 9.17(c).

          “Agents” shall mean the Administrative Agent and the Collateral Agent.

          “Agreed Security Principles” shall mean any grant of a Lien or provision of a
guarantee by any Person that could:

(a) result in any breach of corporate benefit, financial assistance, capital
preservation, fraudulent preference, thin capitalization rules, retention of title
claims and similar laws or regulations (or analogous restrictions) of the
jurisdiction of organization of such Person;

(b) result in any risk to the officers of such Person of contravention of their
fiduciary duties and/or of civil or criminal liability;

2

 

(c) result in costs (tax, administrative or otherwise) that are materially
disproportionate to the benefit obtained by the beneficiaries of such Lien and/or
guarantee;

(d) result in a breach of a material agreement binding on such Person that may not
be amended or otherwise modified using commercially reasonable efforts to avoid such
breach ; or

(e) result in a Lien being granted over assets, the acquisition of which was
financed from a subsidy or payments, the terms of which prohibit any assets acquired
with such subsidy or payment being used as collateral.

          “Agreement” shall have the meaning assigned to such term in the introductory paragraph
of this Agreement.

          “Alternate Base Rate” shall mean, for any day, a rate per annum equal to the greater
of (a) Citibank, N.A.’s Base Rate, (b) the three-month certificate of deposit plus 1/2 of 1% and
(c) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. If for any reason the
Administrative Agent shall have determined (which determination shall be conclusive absent manifest
error) that it is unable to ascertain the Federal Funds Effective Rate, including the failure of
the Federal Reserve Bank of New York to publish rates or the inability of the Administrative Agent
to obtain quotations in accordance with the terms thereof, the Alternate Base Rate shall be
determined without regard to clause (c) of the preceding sentence until the circumstances giving
rise to such inability no longer exist. Any change in the Alternate Base Rate due to a change in
the Base Rate or the Federal Funds Effective Rate shall be effective on the effective date of such
change in the Base Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Margin” shall mean for any day with respect to any Eurocurrency Loan that
is a Revolving Facility Loan denominated in Dollars or a Foreign Currency and any ABR Loan that is
a Revolving Facility Loan, the applicable margin per annum set forth below under the caption
“Revolving Facility Loan Eurocurrency Spread,” and “Revolving Facility Loan ABR Spread,” as
applicable, based upon the Leverage Ratio as of the last date of the most recent fiscal quarter of
the Domestic Borrower.

3

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revolving Facility
	 	 	Revolving	 	Loan
	Leverage 	 	Facility Loan	 	Eurocurrency
	Ratio:	 	ABR Spread	 	Spread
	Category 1

Equal to or greater than
2.50 to 1.00
	 	 	1.50	%	 	 	2.50	%
	 
	 	 	 	 	 	 	 	 
	Category 2 

Less than 2.50 to 1.00
but equal to or greater than 2.00 to
1.00
	 	 	1.00	%	 	 	2.00	%
	 
	 	 	 	 	 	 	 	 
	Category 3 

Less than 2.00 to 1.00
but equal to or greater than 1.50 to
1.00
	 	 	0.75	%	 	 	1.75	%
	 
	 	 	 	 	 	 	 	 
	Category 4

Less than 1.50 to 1.00 but equal to
or greater than 1.00 to 1.00
	 	 	0.50	%	 	 	1.50	%
	 
	 	 	 	 	 	 	 	 
	Category 5

Less than 1.00 to 1.00
	 	 	0.25	%	 	 	1.25	%

          For purposes of the foregoing, (1) the Leverage Ratio shall be determined as of the end
of each fiscal quarter of the Domestic Borrower’s fiscal year based upon the consolidated financial
information of the Domestic Borrower and its Subsidiaries delivered pursuant to Section 5.04(a) or
(b) and (2) each change in the Applicable Margin resulting from a change in the Leverage Ratio
shall be effective on the first Business Day after the date of delivery to the Administrative Agent
of such consolidated financial information indicating such change and ending on the date
immediately preceding the effective date of the next such change; provided that the
Leverage Ratio shall be deemed to be in Category 1 at the option of the Administrative Agent or the
Required Lenders, at any time during which the Domestic Borrower fails to deliver the consolidated
financial information when required to be delivered pursuant to Section 5.04(a) or (b), during the
period from the expiration of the time for delivery thereof until such consolidated financial
information is delivered.

4

 

          “Approved Fund” shall have the meaning assigned to such term in Section 9.04(b).

          “Asset Acquisition” shall mean any Permitted Business Acquisition, the aggregate
consideration for which exceeds U.S.$5.0 million.

          “Asset Disposition” shall mean any sale, transfer or other disposition by the Domestic
Borrower or any Subsidiary to any Person other than the Domestic Borrower or any Subsidiary to the
extent otherwise permitted hereunder of any asset or group of related assets (other than inventory
or other assets sold, transferred or otherwise disposed of in the ordinary course of business) in
one or a series of related transactions, the Net Proceeds from which exceed $5.0 million.

          “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee, and accepted by the Administrative Agent and the Borrowers (if required by
such assignment and acceptance), in the form of Exhibit A or such other form as shall be
approved by the Administrative Agent.

          “Availability Period” shall mean the period from the Closing Date to but excluding the
earlier of the Revolving Facility Maturity Date and in the case of each of the Revolving Facility
Loans, Revolving Facility Borrowings, Swingline Loans, Swingline Borrowings, and Letters of Credit,
the date of termination of the Revolving Facility Commitments.

          “Available Unused Commitment” shall mean, with respect to a Revolving Facility Lender,
at any time of determination, an amount equal to the amount by which (a) the Revolving Facility
Commitment of such Revolving Facility Lender at such time exceeds (b) the Revolving Facility Credit
Exposure of such Revolving Facility Lender at such time (calculated in respect of any portion of
such Revolving Facility Lender’s Revolving Facility Credit Exposure that is denominated in a
Foreign Currency on the Equivalent thereof in Dollars determined at such time).

          “Base Rate” shall mean the sum (adjusted to the nearest 0.25% or, if there is no
nearest 0.25% to the next higher 0.25%) of (i) 0.5% per annum, (ii) the rate per annum obtained by
dividing (A) the latest three-week moving average of secondary market morning offering rates in the
United States for three-month certificates of deposit of major United States money market banks,
such three-week moving average being determined weekly on each Monday (or, if any such day is not a
Business Day, on the next succeeding Business Day) for the three-week period ending on the previous
Friday by Citibank, N.A. on the basis of such rates reported by certificate of deposit dealers to
and published by the Federal Reserve Bank of New York or, if such publication shall be suspended or
terminated, on the basis of quotations for such rates received by Citibank, N.A. from three New
York certificate of deposit dealers of recognized standing selected by Citibank, N.A., by (B) a
percentage equal to 100% minus the average of the daily percentages specified during such
three-week period by the Federal Reserve Board for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement) for Citibank, N.A. in
respect of liabilities consisting of or including (among other liabilities) three-month U.S. dollar
non-personal time deposits in the

5

 

United States and (iii) the average during such three-week period of the maximum annual
assessment rates estimated by Citibank, N.A. for determining the then current annual assessment
payable by Citibank, N.A. to the Federal Deposit Insurance Corporation (or any successor) for
insuring U.S. Dollar deposits in the United States.

          “Board” shall mean the Board of Governors of the Federal Reserve System of the United
States of America.

          “Borrowers” shall mean, collectively, the Domestic Borrower and the Foreign Borrowers.

          “Borrowing” shall mean a group of Loans of a single Type under a single Facility and
made on a single date and, in the case of Eurocurrency Loans, as to which a single Interest Period
is in effect.

          “Borrowing Minimum” shall mean (a) in the case of an ABR Revolving Facility Borrowing,
U.S.$5.0 million (or the Equivalent determined on the date of delivery of the applicable Borrowing
Request or notice of repayment in the applicable Foreign Currency of U.S. $5.0 million), (b) in the
case of a Eurocurrency Revolving Facility Borrowing, U.S.$5.0 million (or the Equivalent determined
on the date of delivery of the applicable Borrowing Request or notice of repayment in the
applicable Foreign Currency of U.S. $5.0 million), and (c) in the case of a Swingline Borrowing,
U.S.$500,000 (or the Equivalent determined on the date of delivery of the applicable Swingline
Borrowing Request in the applicable Foreign Currency of U.S. $500,000).

          “Borrowing Multiple” shall mean (a) in the case of a Revolving Facility Borrowing,
U.S.$1.0 million as applicable (or the Equivalent determined on the date of delivery of the
applicable Borrowing Request or notice of repayment in the applicable Foreign Currency of U.S. $1.0
million) and (b) in the case of a Swingline Borrowing, U.S.$500,000 (or the Equivalent determined
on the date of delivery of the applicable Swingline Borrowing Request or notice of repayment in the
applicable Foreign Currency of U.S. $500,000).

          “Borrowing Request” shall mean a request by a Borrower in accordance with the terms of
Section 2.03 and substantially in the form of Exhibit C-1.

          “Business” shall mean the business of, among other things, the design, manufacture,
sale, maintenance and repair of gas and steam compression equipment (including centrifugal and
reciprocating compressors and steam and gas turbines), all as conducted by the Borrowers and their
Subsidiaries on the Closing Date.

          “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that when used in connection with a Eurocurrency Loan, the term “Business Day”
shall also exclude any day on which banks are not open for dealings in deposits in the applicable
currency in the London interbank market and in case of a Loan denominated in Euros, the term
Business Day shall also exclude any day on which the Trans-European Automated Real-Time Gross
Settlement Express Transfer (TARGET) System is not open.

6

 

          “Calculation Period” means, as of any date of determination, the period of four
consecutive fiscal quarters ending on such date or, if such date is not the last day of a fiscal
quarter, ending on the last day of the fiscal quarter of the Domestic Borrower most recently ended
prior to such date.

          “Capital Expenditures” shall mean, for any Person in respect of any period, the
aggregate of all expenditures incurred by such Person during such period that, in accordance with
GAAP, are or should be included in “additions to property, plant or equipment” or similar items
reflected in the statement of cash flows of such Person; provided, however, that
Capital Expenditures for the Domestic Borrower and its Subsidiaries shall not include:

     (a) expenditures of proceeds of insurance settlements, condemnation awards and other
settlements in respect of lost, destroyed, damaged or condemned assets, equipment or other
property to the extent such expenditures are made to replace or repair such lost, destroyed,
damaged or condemned assets, equipment or other property or otherwise to acquire, maintain,
develop, construct, improve, upgrade or repair assets or properties useful in the business
of the Domestic Borrower and the Subsidiaries within 12 months of receipt of such proceeds,

     (b) interest capitalized in accordance with GAAP during such period,

     (c) expenditures that are accounted for as capital expenditures of such Person and that
actually are paid for by a third party (excluding the Domestic Borrower or any Subsidiary)
and for which neither the Domestic Borrower nor any Subsidiary has provided or is required
to provide or incur, directly or indirectly, any consideration or obligation to such third
party or any other Person (whether before, during or after such period),

     (d) the book value of any asset owned by such Person prior to or during such period to
the extent that such book value is included as a capital expenditure during such period as a
result of such Person reusing or beginning to reuse such asset during such period without a
corresponding expenditure actually having been made in such period, provided that
(i) any expenditure necessary in order to permit such asset to be reused shall be included
as a Capital Expenditure during the period that such expenditure actually is made and (ii)
such book value shall have been included in Capital Expenditures when such asset was
originally acquired,

     (e) the purchase price of equipment purchased during such period to the extent the
consideration therefor consists of any combination of (i) used or surplus equipment traded
in at the time of such purchase and (ii) the proceeds of a concurrent sale of used or
surplus equipment, in each case, in the ordinary course of business,

     (f) Investments in respect of a Permitted Business Acquisition, or

     (g) the purchase price of equipment that is purchased substantially contemporaneously
with the trade-in of existing equipment to the extent that the gross amount of such purchase
price is reduced by the credit granted by the seller of such equipment for the equipment
being traded in at such time.

7

 

          “Capital Lease Obligations” of any Person shall mean the obligations of such Person to
pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real
or personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for purposes
hereof, the amount of such obligations at any time shall be the capitalized amount thereof at such
time determined in accordance with GAAP.

          “Cash Interest Expense” shall mean, with respect to the Domestic Borrower and its
Subsidiaries on a consolidated basis for any period, Interest Expense for such period, less the sum
of (a) pay-in-kind Interest Expense or other non-cash Interest Expense (including as a result of
the effects of purchase accounting), (b) to the extent included in Interest Expense, the
amortization of any financing fees paid by, or on behalf of, the Domestic Borrower or any
Subsidiary, including such fees paid in connection with the Transactions, (c) the amortization of
debt discounts, if any, or fees in respect of Swap Agreements and (d) cash interest income of the
Domestic Borrower and its Subsidiaries for such period; provided that Cash Interest Expense
shall exclude any one-time financing fees paid in connection with the Transactions or any amendment
of this Agreement or upon entering into a Permitted Receivables Financing.

          A “Change in Control” shall be deemed to occur if (a) at any time, a “Change in
Control” shall occur under the Senior Subordinated Note Indenture or under any Permitted Senior
Debt Securities or Permitted Subordinated Debt Securities or (b) at any time, any Person or group
(within the meaning of Rule 13d-5 of the Exchange Act as in effect on the Closing Date), shall
acquire ownership, of record or beneficially (within the meaning of Rule 13d-5 of the Exchange Act
as in effect on the Closing Date), directly or indirectly, in the aggregate Equity Interests
representing 35% or more of the aggregate ordinary voting power represented by the issued and
outstanding Equity Interests of the Domestic Borrower.

          “Change in Law” shall mean (a) the adoption of any law, rule or regulation after the
Closing Date, (b) any change in law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the Closing Date or (c) compliance by any Lender or
Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such
Lender’s or Issuing Bank’s holding company, if any) with any written request, guideline or
directive (whether or not having the force of law but if not having the force of law, then being
one with which the relevant party would customarily comply) of any Governmental Authority made or
issued after the Closing Date.

          “Charges” shall have the meaning assigned to such term in Section 9.09.

          “Closing” shall mean the effectiveness of this Agreement.

          “Closing Date” shall mean August 30, 2007.

          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          “Collateral” shall mean all the “Collateral” as defined in any Security Document and
shall also include the Mortgaged Properties.

8

 

          “Collateral Agent” shall have the meaning given such term in the introductory
paragraph of this Agreement.

          “Collateral Agreements” shall mean the Domestic Collateral Agreement, the Domestic
Collateral Agreement Reaffirmation, the French Collateral Agreement and the Foreign Collateral
Agreement.

          “Collateral and Guarantee Requirement” shall mean the requirement that:

     (a) on the Closing Date, the Collateral Agent shall have received (i) from
the Domestic Borrower and each Domestic Subsidiary Loan Party a counterpart of the Domestic
Collateral Agreement Reaffirmation duly executed and delivered on behalf of such Person and
(ii) from the Domestic Borrower a counterpart of the UK Share Charge duly executed and
delivered on behalf of such Person together with share certificates and related stamped,
executed in blank stock transfer forms;

     (b) the Collateral Agent shall have received:

     (i) within thirty (30) days after the Closing Date, (A) from the Domestic
Borrower a counterpart of the French Equity Pledge Agreement and the French Debt
Pledge Agreement, each duly executed and delivered on behalf of such Person, (B)
from the French Borrower, a counterpart of the French Equity Pledge Agreement and a
counterpart of the Foreign Guarantee, in each case, duly executed and delivered on
behalf of such Person and (C) on behalf of itself, the Administrative Agent, the
Lenders and each Issuing Bank on the Closing Date, favorable written opinions (1)
from special counsel to the Administrative Agent in France and (2) from Gibson, Dunn
& Crutcher LLP (Paris), as French counsel to the Loan Parties with respect to the
capacity of the French Borrower and Dresser-Rand France to enter into the Loan
Documents, each (x) dated as of the date of delivery of the documents set forth in
subclauses (A) and (B) of this clause (b)(i), (y) addressed to each Issuing Bank on
the Closing Date, the Administrative Agent, the Collateral Agent and the Lenders and
(z) in form and substance reasonably satisfactory to the Administrative Agent and
covering such matters relating to the Loan Documents as the Administrative Agent
shall reasonably request, and

     (ii) on or prior to the first date on which any Loans are made to or Letters of
Credit are issued for the account of the French Borrower, from each French
Subsidiary Loan Party a counterpart of the Foreign Guarantee and the Foreign
Collateral Agreement, each duly executed and delivered on behalf of such Person;
provided that any French Subsidiary Loan Party shall only guarantee the
French Subsidiary Obligations;

     (c) on the Closing Date, the Collateral Agent shall have received or shall
otherwise have received a pledge over all the issued and outstanding Equity Interests of (i)
the Borrowers, (ii) each Subsidiary Loan Party directly owned on the Closing Date by any
Loan Party and (iii) any other Material Subsidiary directly owned on the Closing

9

 

Date by any Loan Party, except, in each case, to the extent that a pledge of such
Equity Interests is not permitted under Section 9.23; and the Collateral Agent shall have
received all certificates or other instruments (if any) representing such Equity Interests,
together with stock powers or other instruments of transfer with respect thereto endorsed in
blank;

     (d) in the case of any Person that becomes a Subsidiary Loan Party after the
Closing Date, the Collateral Agent shall have received (A) in the case of a Domestic
Subsidiary Loan Party, a supplement to the Domestic Collateral Agreement, in the form
specified therein, duly executed and delivered on behalf of such Domestic Subsidiary Loan
Party, (B) in the case of a French Subsidiary Loan Party, a Foreign Collateral Agreement, in
the form specified therein, duly executed and delivered on behalf of such French Subsidiary
Loan Party and a Foreign Guarantee; provided that any French Subsidiary Loan Party
shall only guarantee the French Subsidiary Obligations and (C) in the case of any other
Foreign Subsidiary Loan Party, a Foreign Guarantee and a Foreign Collateral Agreement, duly
executed and delivered on behalf of such Foreign Subsidiary Loan Party; provided, in
each case, that any Foreign Subsidiary Loan Party shall only guarantee or support
Obligations or pledge assets to the extent permitted under Section 9.23; provided
further, in each case, that if any Subsidiary Loan Party owns Equity Interests of a
Material Subsidiary which is a Foreign Subsidiary, such Equity Interests may be pledged in
lieu of the foregoing pursuant to a foreign pledge agreement, duly executed and delivered on
behalf of such Subsidiary Loan Party;

     (e) after the Closing Date and within the time period set forth in Section
5.10(c), all the outstanding Equity Interests directly owned by a Loan Party of any Person
that becomes (i) a Subsidiary Loan Party or (ii) a Material Subsidiary after the Closing
Date, shall have been pledged pursuant to the applicable Collateral Agreement, as applicable
to the extent permitted under Section 9.23, and the Collateral Agent shall have received all
certificates or other instruments (if any) representing such Equity Interests, together with
stock powers or other instruments of transfer with respect thereto endorsed in blank or
shall have otherwise received a pledge over such Equity Interests;

     (f) all Indebtedness of any Borrower and each Subsidiary having an aggregate
principal amount in excess of U.S.$10.0 million (other than intercompany current liabilities
incurred in the ordinary course of business in connection with the cash management
operations of the Domestic Borrower and the Subsidiaries) that is owing to any Loan Party
shall be evidenced by a promissory note or an instrument and shall have been pledged
pursuant to the applicable Collateral Agreement, and the Collateral Agent shall have
received all such promissory notes or instruments, together with note powers or other
instruments of transfer with respect thereto endorsed in blank;

     (g) all documents and instruments, including UCC financing statements,
required by law or reasonably requested by the Collateral Agent to be filed, registered or
recorded to create the Liens intended to be created by the Security Documents (in each case,
including any supplements thereto) and perfect such Liens to the extent required by, and
with the priority required by, the Security Documents, shall have been filed, registered or
recorded or delivered to the Collateral Agent for filing, registration or the

10

 

recording concurrently with, or promptly following, the execution and delivery of each
such Security Document;

     (h) each Loan Party shall have obtained all consents and approvals required
to be obtained by it in connection with the execution and delivery of all Security Documents
(or supplements thereto) to which it is a party and the granting by it of the Liens
thereunder and the performance of its obligations thereunder; and

     (i) the Collateral Agent shall receive from the applicable Loan Parties the
following documents and instruments relating to Material Real Property located in the United
States that constitutes Collateral on the dates specified below:

     (i) with respect to each Material Real Property located in the United States,
within 60 days following the Closing Date, in the case of such Material Real
Property, and on the date specified in Section 5.10, in the case of such
after-acquired Material Real Property, a Mortgage (or, with respect to the Existing
Texas DOT, an amendment to such deed of trust) duly authorized, executed and
delivered, in form for recording in the recording office of each jurisdiction where
such Material Real Property or such after-acquired Material Real Property to be
encumbered thereby is situated, in favor of the Collateral Agent, for its benefit
and the benefit of the Secured Parties, together with such other instruments as
shall be necessary or appropriate (in the reasonable judgment of the Collateral
Agent) to create a Lien under applicable law, all of which shall be in form and
substance reasonably satisfactory to Collateral Agent, which Mortgage and other
instruments shall be effective to create and/or maintain a first priority Lien on
such Material Real Property or such after-acquired Material Real Property, as the
case may be, subject to no Liens other than Prior Liens and Permitted Encumbrances
applicable to such Material Real Property or such after-acquired Material Real
Property, as the case may be;

     (ii) within 60 days following the Closing Date, with respect to each Material
Real Property located in the United States, policies or certificates of insurance of
the type required by Section 5.02;

     (iii) within 60 days following the Closing Date, with respect to each Material
Real Property located in the United States, UCC, judgment and tax Lien searches (in
each case to the extent the same exists in the relevant jurisdiction) in form and
substance satisfactory to Administrative Agent;

     (iv) within 60 days following the Closing Date, evidence acceptable to
Administrative Agent of payment by Borrower of all title insurance premiums, search
and examination charges, mortgage, amendment, filing and recording taxes, fees and
related charges required for the recording of the Mortgages (or, with respect to the
Existing Texas DOT, an amendment to such deed of trust) and issuance of the title
insurance policies referred to in clause (vi) below;

11

 

     (v) within 60 days following the Closing Date, with respect to each Material
Real Property located in the United States, a fully paid policy of title insurance
(or marked up commitment having the same effect of a title insurance policy) or a
binding commitment from the Title Company to issue such title insurance each in the
form approved by the Administrative Agent insuring the Lien of the Mortgage
encumbering such Material Real Property as a valid first priority Lien (subject to
this paragraph (v)) on the Material Real Property and fixtures described therein.
Each policy of title insurance (or marked up commitment having the same effect of a
title insurance policy) shall be in an amount reasonably satisfactory to the
Administrative Agent and shall (a) be issued by the Title Company, (b) include such
coinsurance and reinsurance arrangements (with provisions for direct access) as
shall be reasonably acceptable to Administrative Agent, (c) have been supplemented
by such endorsements or affirmative insurance (or, where such endorsements are not
available, opinions of special counsel or other professionals reasonably acceptable
to Administrative Agent) as shall be reasonably requested by Administrative Agent
and shall be available in the applicable jurisdiction at commercially reasonable
rates (including, without limitation, endorsements on matters relating to usury,
first loss, last dollar, zoning (or PZR report), revolving credit, doing business,
variable rate, address, separate tax lot, subdivision, tie in or cluster, deletion
of the creditors’ rights exclusion, contiguity, road access and so-called
comprehensive coverage over covenants and restrictions), (d) include such affidavits
and instruments of indemnifications by Borrower and the applicable Subsidiary as
shall be reasonably required to induce the Title Company to issue the policy or
policies (or commitment) and endorsements contemplated in this paragraph and (e)
contain no exceptions to title other than exceptions for Prior Liens, Permitted
Encumbrances and other exceptions reasonably acceptable to Administrative Agent.
With respect to the legal descriptions attached to the Mortgages encumbering the
Material Real Properties insured by the policies of title insurance described by
this clause (v), in the event the Administrative Agent determines that any Mortgage
does not include all of the real property which is owned by Borrower or a Material
Subsidiary at that particular site, then upon written notice of the Administrative
Agent, Borrower or its Material Subsidiary shall execute and deliver (at the sole
cost and expense of Borrower) all necessary documentation, including without
limitation an amendment to the applicable Mortgage, to cause the unencumbered
portion of said real property to be included in such Mortgage; notwithstanding the
foregoing, with respect to the Existing Texas DOT, the requirements set forth in
this paragraph (v) shall be deemed satisfied if the Title Company delivers to the
Collateral Agent an endorsement T-38 to the title insurance policy number
M-5894-000348602;

     (vi) within 60 days following the Closing Date, American Land Title
Association/American Congress of Surveying and Mapping form surveys for each
Material Real Property for which all necessary fees (where applicable) have been
paid, and dated a date reasonably acceptable to the Administrative Agent, certified
to the Collateral Agent and the issuer of the title insurance policies in a manner
satisfactory to the Administrative Agent by a land surveyor duly

12

 

registered and licensed in the states in which the property described in such
surveys is located and acceptable to the Administrative Agent, showing all buildings
and other improvements, any off-site improvements, the location of any easements,
parking spaces, rights of way, building set-back lines and other dimensional
regulations and the absence of encroachments, either by such improvements or on to
such property, and other defects, other than encroachments and other defects
acceptable to the Administrative Agent; and

     (vii) within 60 days following the Closing Date, with respect to each Material
Real Property located in the United States, all such other items as shall be
reasonably necessary in the opinion of counsel to the Lenders to create a valid and
perfected first priority mortgage Lien on such Material Real Property subject only
to Permitted Encumbrances and Prior Liens. Without limiting the generality of the
foregoing, the Administrative Agent shall have received, on behalf of itself, the
Collateral Agent, the Lenders and each Issuing Bank within 60 days following the
Closing Date, opinions of local counsel for the Loan Parties (i) in states in which
the Real Properties are located, with respect to the enforceability and validity of
the Mortgages and any related fixture filings in form and substance reasonably
satisfactory to the Administrative Agent and (ii) in states in which the Loan
Parties party to the Mortgages located in the United States are organized or formed,
with respect to the valid existence, corporate power and authority of such Loan
Parties in the granting of such Mortgages, in form and substance satisfactory to the
Administrative Agent.

     (j) the Collateral Agent shall receive from the applicable Loan Parties
documents and instruments relating to Material Real Property located outside the United
States that constitutes Collateral that are customarily provided under the applicable law of
the jurisdiction in which such Material Real Property is located to create a valid and
perfected Lien on such Material Real Property under the applicable law of the jurisdiction
in which such Material Real Property is located; provided that such Material Real
Property shall only be pledged to the extent permitted under Section 9.23, and
provided further that the Administrative Agent may, in its good faith
discretion, consent to a waiver of the pledge of such Material Real Property. With respect
to Material Real Property located outside the United States that constitutes Collateral,
such documents and instruments shall be provided within 90 days after the Closing Date and
with respect to each after-acquired Material Real Property located outside the United States
that constitutes Collateral, such documents and instruments shall be provided within 90 days
after the acquisition of such Material Real Property.

     (k) With respect to each of the items identified in this definition of
“Collateral and Guarantee Requirement” that are required to be delivered on a date after the
Closing Date, the Administrative Agent, in each case, may (in its sole discretion) extend
such date on two separate occasions by up to 30 days on each such occasion.

          “Commitment Fee” shall have the meaning assigned to such term in Section 2.12(a).

13

 

          “Commitments” shall mean (a) with respect to any Lender, such Lender’s Revolving
Facility Commitment, and (b) with respect to any Swingline Lender, its Swingline Commitment, as
applicable.

          “Communications” shall have the meaning assigned to such term in Section 9.17.

          “Companies Act” shall mean the Companies Act 1985 of England and Wales (as amended).

          “Consolidated Debt” at any date shall mean (without duplication) all Indebtedness
consisting of Capital Lease Obligations, Indebtedness for borrowed money (other than letters of
credit to the extent undrawn) and Indebtedness in respect of the deferred purchase price of
property or services of the Domestic Borrower and its Subsidiaries determined on a consolidated
basis on such date plus any Receivables Net Investment.

          “Consolidated Net Income” shall mean, with respect to any Person for any period, the
aggregate of the Net Income of such Person and its subsidiaries for such period, on a consolidated
basis; provided, however, that

     (i) any net after-tax extraordinary, unusual or nonrecurring gains or losses (less all
fees and expenses related thereto) or income or expenses or charges (including, without
limitation any severance, relocation and other restructuring expenses and fees, expenses or
charges related to any offering of Equity Interests of such Person, any Investment,
acquisition or Indebtedness permitted to be incurred hereunder (in each case, whether or not
successful), including all fees, expenses and charges related to the Transactions), in each
case, shall be excluded; provided, that with respect to each nonrecurring item, the
Domestic Borrower shall have delivered to the Administrative Agent an officers’ certificate
specifying and quantifying such item and stating that such item is a nonrecurring item,

     (ii) any net after-tax income or loss from discontinued operations and any net
after-tax gain or loss on disposal of discontinued operations shall be excluded,

     (iii) any net after-tax gain or loss (less all fees and expenses or charges relating
thereto) attributable to business dispositions or asset dispositions other than in the
ordinary course of business (as determined in good faith by the Board of Directors of the
Domestic Borrower) shall be excluded,

     (iv) any net after-tax income or loss (less all fees and expenses or charges relating
thereto) attributable to the early extinguishment of indebtedness (including obligations
under Swap Agreements) shall be excluded,

     (v) (A) the Net Income for such period of any Person that is not a subsidiary of such
Person, or that is accounted for by the equity method of accounting, shall be included only
to the extent of the amount of dividends or distributions or other payments paid in cash (or
to the extent converted into cash) to the referent Person or a subsidiary thereof in respect
of such period and (B) the Net Income for such period shall include any

14

 

dividend, distribution or other payment in respect of equity paid in cash by such
Person in excess of the amounts included in clause (A),

     (vi) the Net Income for such period of any subsidiary (that is not a Loan Party) of
such Person shall be excluded to the extent that the declaration or payment of dividends or
similar distributions by such subsidiary of its Net Income is not at the date of
determination permitted without any prior governmental approval (which has not been
obtained) or, directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental regulation
applicable to that subsidiary or its stockholders or members, unless such restriction with
respect to the payment of dividends or in similar distributions has been legally waived
(provided that the net loss of any such subsidiary shall be included to the extent
funds are disbursed by such Person or any other subsidiary of such Person in respect of such
loss and that Consolidated Net Income of such Person shall be increased by the amount of
dividends or distributions or other payments that are actually paid in cash (or to the
extent converted into cash) by such subsidiary to the Domestic Borrower or another
Subsidiary in respect of such period to the extent not already included therein),

     (vii) Consolidated Net Income for such period shall not include the cumulative effect
of a change in accounting principles during such period,

     (viii) any non-cash charges from the application of the purchase method of accounting
in connection with any future acquisition, to the extent such charges are deducted in
computing such Consolidated Net Income shall be excluded,

     (ix) accruals and reserves that are established within twelve months after the Closing
Date and that are so required to be established in accordance with GAAP shall be excluded,

     (x) any non-cash impairment charges resulting from the application of Statements of
Financial Accounting Standards No. 142 and No. 144 and the amortization of intangibles
pursuant to Statement of Financial Accounting Standards No. 141 shall be excluded, and

     (xi) any long-term incentive plan accruals and any non-cash compensation expense
realized from grants of stock appreciation or similar rights, stock options or other rights
to officers, directors and employees of such Person or any of its subsidiaries shall be
excluded.

          “Consolidated Total Assets” shall mean, as of any date, the total assets of the
Domestic Borrower and the consolidated Subsidiaries, determined in accordance with GAAP, in each
case as set forth on the consolidated balance sheet of the Domestic Borrower as of such date.

          “Control” shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ownership of
voting securities, by contract or otherwise, and “Controlling” and “Controlled”
shall have meanings correlative thereto.

15

 

          “Co-Syndication Agent” shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.

          “Credit Agreement Supplement” has the meaning specified in Section 2.22.

          “Credit Event” shall have the meaning assigned to such term in Article IV.

          “Debt Service” shall mean, with respect to the Domestic Borrower and its Subsidiaries
on a consolidated basis for any period, Cash Interest Expense for such period plus scheduled
principal amortization of Consolidated Debt for such period.

          “Default” shall mean any event or condition that upon notice, lapse of time or both
would constitute an Event of Default.

          “Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in
effect.

          “Dollars” or “$” shall mean lawful money of the United States of America.

          “Domestic Borrower” shall have the meaning assigned to such term in the introductory
paragraph to this Agreement.

          “Domestic Collateral Agreement” shall mean the Amended and Restated Guarantee and
Collateral Agreement, dated as of October 29, 2004, as amended, supplemented or otherwise modified
from time to time, among the Domestic Borrower, each Domestic Subsidiary Loan Party and the
Collateral Agent, and as reaffirmed by the Domestic Collateral Agreement Reaffirmation.

          “Domestic Collateral Agreement Reaffirmation” shall mean the Domestic Guarantee and
Collateral Agreement Reaffirmation, dated as of the date hereof, substantially in the form of
Exhibit E-1, by the Domestic Borrower and each Domestic Subsidiary Loan Party.

          “Domestic Loan Parties” shall mean the Domestic Borrower and each Domestic Subsidiary
Loan Party.

          “Domestic Subsidiary” shall mean each Subsidiary that is not a Foreign Subsidiary.

          “Domestic Subsidiary Loan Party” shall mean each direct Wholly Owned Subsidiary of the
Domestic Borrower that (a) is (i) a Domestic Subsidiary and (ii) a Material Subsidiary, and (b) is
not (i) a Special Purpose Receivables Subsidiary, (ii) listed on Schedule 1.01(a), or (iii)
a Subsidiary whose guarantee of the Obligations is prohibited under Section 9.23.

          “Dresser-Rand France” shall mean Dresser-Rand S.A., a company organized under the laws
of France and registered under number 562 060 269 RCS Le Havre.

          “EBITDA” shall mean, with respect to the Domestic Borrower and its Subsidiaries on a
consolidated basis for any period, the Consolidated Net Income of the

16

 

Domestic Borrower and its Subsidiaries for such period plus (a) the sum of (in each
case without duplication and to the extent the respective amounts described in subclauses (i)
through (viii) of this clause (a) reduced such Consolidated Net Income for the respective period
for which EBITDA is being determined):

     (i) provision for Taxes based on income, profits or capital of the Domestic Borrower
and its Subsidiaries for such period to the extent that such provision for taxes was
deducted in calculating Consolidated Net Income,

     (ii) Interest Expense of the Domestic Borrower and its Subsidiaries for such period
(net of interest income of the Domestic Borrower and its Subsidiaries for such period),

     (iii) depreciation, amortization (including amortization of intangibles, deferred
financing fees and any amortization expense included in pension, OPEB or other employee
benefit expenses) and other non-cash expenses (including, without limitation write-downs and
impairment of property, plant, equipment and intangibles and other long-lived assets and the
impact of purchase accounting on the Domestic Borrower and its Subsidiaries for such
period),

     (iv) the amount of any restructuring charges (which, for the avoidance of doubt, shall
include retention, severance, systems establishment cost or excess pension, other
post-employment benefits, curtailment or other excess charges); provided that with
respect to each such restructuring charge, the Domestic Borrower shall have delivered to the
Administrative Agent an officers’ certificate specifying and quantifying such expense or
charge and stating that such expense or charge is a restructuring charge,

     (v) equity earnings losses in Affiliates unless funds have been disbursed to such
Affiliates by the Domestic Borrower or any Subsidiary of the Domestic Borrower,

     (vi) other non-operating expenses,

     (vii) the minority interest expense consisting of subsidiary income attributable to
minority equity interests of third parties in any non-Wholly Owned Subsidiary in such period
or any prior period, except to the extent of dividends declared or paid on Equity Interests
held by third parties, and

     (viii) accretion of asset retirement obligations in accordance with SFAS No. 143,
Accounting for Asset Retirement Obligations, and any similar accounting in prior periods;

minus (b) the sum of (in each case without duplication and to the extent the respective
amounts described in subclause (i) of this clause (b) increased such Consolidated Net Income for
the respective period for which EBITDA is being determined):

     (ix) non-cash items increasing Consolidated Net Income of the Domestic Borrower and its
Subsidiaries for such period (but excluding any such items which

17

 

represent the reversal in such period of any accrual of, or cash reserve for,
anticipated cash charges in any prior period where such accrual or reserve is no longer
required).

          “EMU” shall mean the Economic and Monetary Union as contemplated by the Treaty on
European Union.

          “Environment” shall mean ambient and indoor air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or subsurface strata or
sediment, natural resources such as flora and fauna, the workplace or as otherwise defined in any
Environmental Law.

          “Environmental Claim” shall mean any and all actions, suits, demands, demand letters,
claims, liens, notices of non-compliance or violation, notices of liability or potential liability,
investigations, proceedings, consent orders or consent agreements relating in any way to any
Environmental Law or any Hazardous Material.

          “Environmental Law” shall mean, collectively, all federal, state, local or foreign
laws, including common law, ordinances, regulations, rules, codes, orders, judgments or other
requirements or rules of law that relate to (a) the prevention, abatement or elimination of
pollution, or the protection of the Environment, natural resources or human health, or natural
resource damages, and (b) the use, generation, handling, treatment, storage, disposal, Release,
transportation or regulation of or exposure to Hazardous Materials, including the Comprehensive
Environmental Response Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., the
Endangered Species Act, 16 U.S.C. §§ 1531 et seq., the Solid Waste Disposal Act, as amended
by the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., the Clean Air
Act, 42 U.S.C. §§ 7401 et seq., the Clean Water Act, 33 U.S.C. §§ 1251 et seq., the
Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq., the Emergency Planning and
Community Right to Know Act, 42 U.S.C. §§ 11001 et seq., each as amended, and their
foreign, state or local counterparts or equivalents.

          “Equity Interests” of any Person shall mean any and all shares, interests, rights to
purchase, warrants, options, participation or other equivalents of or interests in (however
designated) equity of such Person, including any preferred stock, any limited or general
partnership interest and any limited liability company membership interest.

          “Equivalent” in Dollars of any Foreign Currency on any date shall mean the equivalent
in Dollars of such Foreign Currency determined by using the quoted spot rate at which the
Sub-Agent’s principal office in London offers to exchange Dollars for such Foreign Currency in
London prior to 4:00 p.m. (London time) (unless otherwise indicated by the terms of this Agreement)
on such date as is required pursuant to the terms of this Agreement, and the “Equivalent” in any
Foreign Currency of Dollars shall mean the equivalent in such Foreign Currency of Dollars
determined by using the quoted spot rate at which the Sub-Agent’s principal office in London offers
to exchange such Foreign Currency for Dollars in London prior to 4:00 p.m. (London time) (unless
otherwise indicated by the terms of this Agreement) on such date as is required pursuant to the
terms of this Agreement.

18

 

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same
may be amended from time to time.

          “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with any Borrower or any Subsidiary, is treated as a single employer under Section 414(b)
or (c) of the Code, or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.

          “ERISA Event” shall mean (a) any Reportable Event; (b) the existence with respect to
any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or Section
302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect
to any Plan, the failure to make by its due date a required installment under Section 412(m) of the
Code with respect to any Plan or the failure to make any required contribution to a Multiemployer
Plan; (d) the incurrence by the Domestic Borrower, any Subsidiary or any ERISA Affiliate of any
liability under Title IV of ERISA; (e) the receipt by any Borrower, any Subsidiary or any ERISA
Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate
any Plan or to appoint a trustee to administer any Plan under Section 4042 of ERISA, or the
occurrence of any event or condition which could be reasonably be expected to constitute grounds
under ERISA for the termination of, or the appointment of a trustee to administer, any Plan; (f)
the incurrence by any Borrower, any Subsidiary or any ERISA Affiliate of any liability with respect
to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; (g) the receipt by any
Borrower, any Subsidiary or any ERISA Affiliate of any notice, or the receipt by any Multiemployer
Plan from any Borrower, a Subsidiary or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA; or (h) the
occurrence of a nonexempt prohibited transaction (within the meaning of Section 4975 of the Code or
Section 406 of ERISA) which could reasonably be expected to result in liability to any Borrower or
Subsidiary.

          “EURIBO Rate” means, in relation to any Loan in Euro:

(a) the applicable Screen Rate; or

     (b) (if no Screen Rate is available for the Interest Period of that Loan) the
arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to
the Administrative Agent at the request quoted by Citibank International, N.A. to
leading banks in the European interbank market,

as of 11:00 am London time on the Quotation Day for the offering of deposits in Euro for a period
comparable to the Interest Period of the relevant Loan.

          “Eurocurrency Borrowing” shall mean a Borrowing comprised of Eurocurrency Loans.

          “Eurocurrency Loan” shall mean any Eurocurrency Revolving Loan.

19

 

          “Eurocurrency Revolving Facility Borrowing” shall mean a Borrowing comprised of
Eurocurrency Revolving Loans.

          “Eurocurrency Revolving Loan” shall mean any Revolving Facility Loan denominated in
Dollars or a Foreign Currency bearing interest at a rate determined by reference to the Adjusted
LIBO Rate in accordance with the provisions of Article II.

          “Euros” shall mean the single currency unit of the member states of the European
Community that adopt or have adopted that currency unit as its lawful currency in accordance with
legislation of the European Community relating to Economic and Monetary Union.

          “Event of Default” shall have the meaning assigned to such term in Section 7.01.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          “Excluded Indebtedness” shall mean all Indebtedness permitted to be incurred under
Section 6.01 (other than Sections 6.01(o) and (r)).

          “Excluded Taxes” shall mean, with respect to any Agent, any Lender, any Issuing Bank
or any other recipient of any payment to be made by or on account of any obligation of any Loan
Party hereunder, (a) income or franchise taxes imposed on (or measured by) its net income or net
profits by the United States of America or by the jurisdiction under the laws of which such
recipient is organized or in which its principal office (or other fixed place of business) is
located or, in the case of any Lender, in which its applicable lending office is located, (b) any
branch profits tax or any similar tax that is imposed by any jurisdiction described in clause (a)
above and (c) other than in the case of an assignee pursuant to a request by such Loan Party under
Section 2.19(b), any withholding tax imposed by the United States or by the jurisdiction under the
laws of which such Loan Party is organized or in which its principal office (or other fixed place
of business) is located that is in effect and would apply to amounts payable hereunder to such
Lender or other recipient at the time such Lender or other recipient becomes a party to any Loan
Document (or designates a new lending office), except to the extent that such Lender or other
recipient (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from a Loan Party with respect to such
withholding tax pursuant to Section 2.17(a) or Section 2.17(c), and (d) any withholding taxes
attributable to such Lender’s or such other recipient’s failure (other than as a result of a Change
in Law) to comply with Section 2.17(e); provided, however, that the term “Excluded
Taxes” shall not include any taxes that are imposed or otherwise due as a result of any action
undertaken by one or more of such Agent, Lender or Issuing Bank to collect funds due hereunder or
under any other Loan Document or enforce or exercise its rights or pursue any remedy provided
hereunder or under any other Loan Document.

          “Existing Credit Agreement” shall have the meaning assigned to such term in the first
recital to this Agreement.

          “Existing Texas DOT” shall mean that certain Deed of Trust, Security Agreement,
Assignment of Rents and Leases and Fixture Filing (Texas) dated as of February 10, 2005 from
Dresser-Rand Company as grantor to Paul Comeaux as trustee for the benefit of the Collateral Agent
under the Existing Credit Facility.

20

 

          “Facility” shall mean the respective facility and commitments utilized in making Loans
and credit extensions hereunder, it being understood that as of the date of this Agreement there is
one Facility, i.e., the Revolving Facility.

          “Federal Funds Effective Rate” shall mean, for any day, the weighted average (rounded
upward, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day which is a Business Day, the average (rounded upward, if necessary, to the
next 1/100 of 1%) of the quotations for the day of such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.

          “Fee Letter” shall mean that certain Fee Letter dated August 8, 2007 by and among the
Domestic Borrower, the Administrative Agent and the Joint Lead Arrangers.

          “Fees” shall mean the Commitment Fees, the L/C Participation Fees, the Issuing Bank
Fees and the Administrative Agent Fees.

          “Financial Officer” of any Person shall mean the Chief Financial Officer, principal
accounting officer, Treasurer, Assistant Treasurer or Controller of such Person.

          “Financial Performance Covenants” shall mean the covenants of the Domestic Borrower
set forth in Sections 6.11 and 6.12.

          “Flow Through Entity” shall mean an entity that is treated as a partnership not
taxable as a corporation, a grantor trust or a disregarded entity for United States federal income
tax purposes or subject to treatment on a comparable basis for purposes of state, local or foreign
tax law.

          “Foreign Borrower” shall mean, collectively, the French Borrower and each Additional
Foreign Borrower.

          “Foreign Collateral Agreement” shall mean with respect to any Person, such collateral
agreements and other agreements necessary under applicable foreign law to grant to the Collateral
Agent a security interest in such assets of such Person of the type identified in the Domestic
Collateral Agreement; provided that no security interest shall be granted on all or any portion of
such assets if the Domestic Borrower demonstrates to the Collateral Agent and the Collateral Agent
determines (in its reasonable discretion) that the cost of granting such security interest exceeds
the value of the security offered thereby.

          “Foreign Currency” shall mean Euros and Sterling.

          “Foreign Guarantee” shall mean, collectively, one or more guarantee agreements, as
amended, supplemented or otherwise modified from time to time, each substantially in the form of
Exhibit E-4 with such other modifications or in such other form as may be necessary to
comply with applicable foreign laws and regulations and otherwise reasonably satisfactory to the
Collateral Agent, among the applicable Foreign Subsidiary Loan Party and the Collateral Agent.

21

 

          “Foreign Lender” shall mean any Lender that is organized under the laws of a
jurisdiction other than the United States of America. For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

          “Foreign Loan Parties” shall mean each Foreign Borrower and each Foreign Subsidiary
Loan Party.

          “Foreign Subsidiary” shall mean any Subsidiary that is incorporated or organized under
the laws of any jurisdiction other than the United States of America, any State thereof or the
District of Columbia and any Subsidiary of a Foreign Subsidiary.

          “Foreign Subsidiary Loan Party” shall mean, collectively, the French Subsidiary Loan
Parties and the Additional Foreign Subsidiary Loan Parties; provided that Dresser-Rand
France shall not be a French Subsidiary Loan Party unless it has satisfied the requirement set
forth in clause (b)(ii) of the definition of Collateral and Guarantee Requirement.

          “French Borrower” shall have the meaning assigned to such term in the introductory
paragraph of this Agreement.

          “French Collateral Agreement” shall mean, collectively, the French Debt Pledge
Agreement and the French Equity Pledge Agreement.

          “French Debt Pledge Agreement” shall mean, collectively, one or more pledge agreements
between the applicable French Loan Party and the Collateral Agent, as amended, supplemented or
otherwise modified from time to time, substantially in the form of Exhibit E-3A or in such
other form reasonably satisfactory to the Collateral Agent and with such modifications related to
the applicable French Loan Party.

          “French Equity Pledge Agreement” shall mean, collectively, one or more equity pledge
agreements between the applicable French Loan Party and the Collateral Agent, as amended,
supplemented or otherwise modified from time to time, substantially in the form of Exhibit
E-3B or in such other form reasonably satisfactory to the Collateral Agent and with such
modifications related to the applicable French Loan Party.

          “French Loan Party” shall mean the French Borrower and each French Subsidiary Loan
Party.

          “French Obligations” shall mean all amounts owing to any of the Agents or any Lender
by any French Loan Party pursuant to the terms of this Agreement or any other Loan Document.

          “French Revolving Facility Credit Exposure” shall mean, at any time, the sum of (a)
the aggregate principal amount of the Revolving Facility Loans to the French Borrower outstanding
at such time (calculated in respect of Loans denominated in a Foreign Currency on the Equivalent
thereof in Dollars at such time), (b) the Swingline Exposure at such time for Swingline Loans made
to the French Borrower and (c) the Revolving L/C Exposure at such time (calculated in respect of
Revolving L/C Exposure denominated in a Foreign Currency on the

22

 

Equivalent thereof in Dollars at such time) for Letters of Credit issued, amended, renewed or
extended for the account of the French Borrower.

          “French Subsidiary Obligations” shall mean at any time, with respect to any French
Subsidiary Loan Party, the aggregate unpaid principal amount at such time of the loan made by the
French Borrower to such French Subsidiary Loan Party from the proceeds of the Revolving Facility
Loans made to the French Borrower.

          “French Subsidiary Loan Party” shall mean each direct Wholly Owned Subsidiary of the
French Borrower that (a) is (i) organized under the same jurisdiction as the French Borrower, (ii)
a Foreign Subsidiary and (iii) a Material Subsidiary, and (b) is not (i) a Special Purpose
Receivables Subsidiary, (ii) listed on Schedule 1.01(a), or (iii) a Subsidiary whose
guarantee of the French Obligations is prohibited under Section 9.23.

          “GAAP” shall mean generally accepted accounting principles in effect from time to time
in the United States, applied on a consistent basis, subject to the provisions of Section 1.02.

          “Governmental Authority” shall mean any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory or legislative body, including,
without limitation, any agency of the European Union or similar monetary or multinational
authority.

          “Guarantee” of or by any Person (the “guarantor”) shall mean (a) any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the guarantor, direct or indirect,
(i) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness (whether arising by virtue of partnership arrangements, by agreement to keep well, to
purchase assets, goods, securities or services, to take-or-pay or otherwise) or to purchase (or to
advance or supply funds for the purchase of) any security for the payment of such Indebtedness,
(ii) to purchase or lease property, securities or services for the purpose of assuring the owner of
such Indebtedness of the payment thereof, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness, (iv) entered into for the purpose of assuring in any other manner
the holders of such Indebtedness of the payment thereof or to protect such holders against loss in
respect thereof (in whole or in part) or (v) as an account party in respect of any letter of credit
or letter of guaranty issued to support such Indebtedness, or (b) any Lien on any assets of the
guarantor securing any Indebtedness (or any existing right, contingent or otherwise, of the holder
of Indebtedness to be secured by such a Lien) of any other Person, whether or not such Indebtedness
is assumed by the guarantor; provided, however, that the term “Guarantee” shall not
include endorsements for collection or deposit, in either case in the ordinary course of business,
or customary and reasonable indemnity obligations in effect on the Closing Date or entered into in
connection with any acquisition or disposition of assets permitted under this Agreement.

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          “Hazardous Materials” shall mean all pollutants, contaminants, wastes, chemicals,
materials, substances and constituents, including, without limitation, explosive or radioactive
substances or petroleum or petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls or radon gas, of any nature, in each case subject to regulation or which
can give rise to liability under any Environmental Law.

          “Improvements” shall have the meaning assigned to such term in the Mortgages.

          “Indebtedness” of any Person shall mean, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property or assets purchased by such Person, (d) all
obligations of such Person issued or assumed as the deferred purchase price of property or services
(other than trade liabilities and intercompany liabilities incurred in the ordinary course of
business and maturing within 365 days after the incurrence thereof), (e) all Guarantees by such
Person of Indebtedness of others, (f) all Capital Lease Obligations of such Person, (g) all
payments that such Person would have to make in the event of an early termination, on the date
Indebtedness of such Person is being determined in respect of outstanding Swap Agreements (such
payments in respect of any Swap Agreement with a counterparty being calculated net of amounts owing
to such Person by such counterparty in respect of other Swap Agreements), (h) the principal
component of all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit (other than any letters of credit, bank guarantees or similar
instrument in respect of which a back-to-back letter of credit has been issued under or permitted
by this Credit Agreement) and (i) the principal component of all obligations of such Person in
respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of
any partnership in which such Person is a general partner, other than to the extent that the
instrument or agreement evidencing such Indebtedness expressly limits the liability of such Person
in respect thereof. To the extent not otherwise included, Indebtedness shall include the amount of
any Permitted Receivables Financing.

          “Indemnified Taxes” shall mean all Taxes other than Excluded Taxes.

          “Indemnitee” shall have the meaning assigned to such term in Section 9.05(b).

          “Information Memorandum” shall mean the Confidential Information Memorandum dated
August 2007, as modified or supplemented prior to the Closing Date.

          “Interest Coverage Ratio” shall have the meaning assigned to such term in Section
6.11.

          “Interest Election Request” shall mean a request by a Borrower to convert or continue
a Revolving Facility Borrowing in accordance with Section 2.07.

          “Interest Expense” shall mean, with respect to any Person for any period, the sum of
(a) gross interest expense of such Person for such period on a consolidated basis, including (i)
the amortization of debt discounts, (ii) the amortization of all fees (including fees with respect
to Swap Agreements) payable in connection with the incurrence of Indebtedness to the extent
included in interest expense, (iii) the portion of any payments or accruals with respect to Capital

24

 

Lease Obligations allocable to interest expense and (iv) commissions, discounts, yield and
other fees and charges incurred in connection with any Permitted Receivables Financing which are
payable to any Person other than the Borrowers or a Subsidiary Loan Party, and (b) capitalized
interest of such Person. For purposes of the foregoing, gross interest expense shall be determined
after giving effect to any net payments made or received and costs incurred by the Domestic
Borrower and its Subsidiaries with respect to Swap Agreements.

          “Interest Payment Date” shall mean (a) with respect to any Eurocurrency Loan, the last
day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the
case of a Eurocurrency Borrowing with an Interest Period of more than three months’ duration, each
day that would have been an Interest Payment Date had successive Interest Periods of three months’
duration been applicable to such Borrowing and, in addition, the date of any refinancing or
conversion of such Borrowing with or to a Borrowing of a different Type, (b) with respect to any
ABR Loan, the last day of each calendar quarter and (c) with respect to any Swingline Loan, the day
that such Swingline Loan is required to be repaid pursuant to Section 2.09(a).

          “Interest Period” shall mean, as to any Eurocurrency Borrowing, the period commencing
on the date of such Borrowing or on the last day of the immediately preceding Interest Period
applicable to such Borrowing, as applicable, and ending on the numerically corresponding day (or,
if there is no numerically corresponding day, on the last day) in the calendar month that is 1, 2,
3 or 6 months thereafter (or 9 or 12 months, if at the time of the relevant Borrowing, all Lenders
make interest periods of such length available), as the applicable Borrower may elect, or the date
any Eurocurrency Borrowing is converted to an ABR Borrowing in accordance with Section 2.07 or
repaid or prepaid in accordance with Section 2.09, 2.10 or 2.11; provided, unless the
Administrative Agent shall otherwise agree, that prior to the earlier of the 31st day after the
Closing Date and the date on which the Administrative Agent has notified the Borrowers that the
primary syndication of the Facilities has been completed, the Borrowers shall only be permitted to
request Interest Periods of seven days (it being understood that notwithstanding anything else in
this Agreement to the contrary, if on the last day of any such seven day Interest Period the
primary syndication of the Facilities shall not have been completed, a new seven day Interest
Period will begin on such day with respect to each such Borrowing and no notice by any Borrower
shall be required with respect thereto); provided further, however, that if
any Interest Period would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless such next succeeding Business Day would fall in
the next calendar month, in which case such Interest Period shall end on the next preceding
Business Day. Interest shall accrue from and including the first day of an Interest Period to but
excluding the last day of such Interest Period.

          “Issuing Bank” shall mean Citibank, N.A. and each other Issuing Bank designated
pursuant to Section 2.05(k), in each case in its capacity as an issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in Section 2.05(i). An Issuing Bank
may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of
such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with
respect to Letters of Credit issued by such Affiliate.

25

 

          “Issuing Bank Fees” shall have the meaning assigned to such term in Section 2.12(b).

          “Joint Lead Arrangers” shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.

          “L/C Disbursement” shall mean a payment or disbursement made by an Issuing Bank
pursuant to a Letter of Credit, including, for the avoidance of doubt, a payment or disbursement
made by an Issuing Bank pursuant to a Letter of Credit upon or following the reinstatement of such
Letter of Credit.

          “L/C Participation Fee” shall have the meaning assigned such term in Section 2.12(b).

          “Lender” shall mean each financial institution listed on Schedule 2.01, as
well as any Person that becomes a “Lender” hereunder pursuant to Section 9.04.

          “Lender Default” shall mean (i) the refusal (which has not been retracted) of a Lender
to make available its portion of any Borrowing, to acquire participations in a Swingline Loan
pursuant to Section 2.04 or to fund its portion of any unreimbursed payment under Section 2.05(e),
or (ii) a Lender having notified in writing any Borrower and/or the Administrative Agent that it
does not intend to comply with its obligations under Section 2.04, 2.05 or 2.06.

          “Letter of Credit” shall mean any letter of credit issued pursuant to Section 2.05.

          “Leverage Ratio” shall mean, on any date, the ratio of (a) Consolidated Debt as of
such date to (b) EBITDA for the period of four consecutive fiscal quarters of the Domestic Borrower
most recently ended as of such date, all determined on a consolidated basis in accordance with
GAAP; provided that to the extent any Asset Disposition or any Asset Acquisition (or any
similar transaction or transactions that require a waiver or a consent of the Required Lenders
pursuant to Section 6.04 or Section 6.05) or incurrence or repayment of Indebtedness (excluding
normal fluctuations in revolving Indebtedness incurred for working capital purposes) has occurred
during the relevant Test Period, EBITDA shall be determined for the respective Test Period on a Pro
Forma Basis for such occurrences.

          “LIBO Rate” means (i) in relation to any Eurocurrency Borrowing denominated in Dollars
or any Foreign Currency (other than Euro):

     (a) the applicable Screen Rate; or

     (b) (if no Screen Rate is available for the currency or Interest Period of that
Eurocurrency Borrowing) the arithmetic mean of the rates (rounded upwards to four decimal
places) as supplied to the Administrative Agent at its request quoted by Citicorp North
America, Inc. to leading banks in the London interbank market,

as of 11:00 am London time on the Quotation Day for the offering of deposits in the currency of
that Eurocurrency Borrowing and for a period comparable to the Interest Period for that

26

 

Eurocurrency Borrowing and (ii) with respect to any Eurocurrency Borrowing denominated in Euros,
the EURIBO Rate.

          “License Agreement” shall mean the License Agreement, dated October 29, 2004 by and
between Dresser-Rand Company, Dresser-Rand A.S., Ingersoll-Rand Energy Systems Corporation, and the
Energy Systems Division of Ingersoll-Rand Company.

          “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien,
hypothecation, pledge, encumbrance, charge or security interest in or on such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities (other than securities
representing an interest in a joint venture that is not a Subsidiary), any purchase option, call or
similar right of a third party with respect to such securities.

          “Loan Documents” shall mean this Agreement, the Letters of Credit, the Security
Documents, each Credit Agreement Supplement entered into by an Additional Foreign Borrower and any
promissory note issued under Section 2.09(e) and any other instrument or agreement now or hereafter
executed and delivered in connection herewith or therewith or in connection with (i) any
transaction arising out of any cash management or depository provided by the Administrative Agent,
the Collateral Agent, any Lender or any of their respective Affiliates, and (ii) any investment,
Swap Agreement or other banking or financial services provided by the Administrative Agent, the
Collateral Agent, any Lender or any of their respective Affiliates, each as amended and in effect
from time to time.

          “Loan Parties” shall mean each Domestic Loan Party and each Foreign Loan Party.

          “Loans” shall mean the Revolving Facility Loans and the Swingline Loans.

          “Local Time” shall mean (i) in the case of Loans and Letters of Credit denominated in
Dollars, New York City time and (ii) in the case of Loans and Letters of Credit denominated in
Euros or any other Foreign Currency, London time.

          “Majority Lenders” of any Facility shall mean, at any time, Lenders under such
Facility having Loans and unused Commitments representing more than 50% of the sum of all Loans
outstanding under such Facility and unused Commitments under such Facility at such time, in each
case calculated on the Equivalent in Dollars at such time. The Loans and Commitment of any
Defaulting Lender shall be disregarded in determining Majority Lenders at any time.

          “Management Notes” shall mean the subordinated notes issued by the Domestic Borrower
or any Subsidiary to existing or former employees, officers, consultants or directors of the
Domestic Borrower or any Subsidiary in consideration for such Person’s Equity Interests in the
Domestic Borrower or any Subsidiary, in each case subordinated to the Obligations on terms and
conditions reasonably satisfactory to the Administrative Agent.

          “Margin Stock” shall have the meaning assigned to such term in Regulation U.

27

 

          “Material Adverse Effect” shall mean the existence of events, conditions and/or
contingencies that have had or are reasonably likely to have (a) a materially adverse effect on the
business, operations, properties, assets or financial condition of the Domestic Borrower and the
Subsidiaries, taken as a whole, or (b) a material impairment of the validity or enforceability of,
or a material impairment of the material rights, remedies or benefits available to the Lenders, any
Issuing Bank, the Administrative Agent or the Collateral Agent under, any Loan Document.

          “Material Indebtedness” shall mean Indebtedness (other than Loans and Letters of
Credit) of any one or more of the Domestic Borrower or any Subsidiary in an aggregate principal
amount exceeding U.S.$20.0 million.

          “Material Real Property” shall mean any Real Property owned by a Loan Party on the
Closing Date having a fair market value exceeding $5,000,000 and any after-acquired Real Property
owned by a Loan Party having a gross purchase price exceeding $5,000,000 at the time of
acquisition.

          “Material Subsidiary” shall mean each Subsidiary of the Domestic Borrower now existing
or hereafter acquired or formed by the Domestic Borrower which, on a consolidated basis for such
Subsidiary and its Subsidiaries, (a) for the applicable Calculation Period accounted for more than
1.5% of the consolidated revenues of the Domestic Borrower and its Subsidiaries or (b) as of the
last day of such Calculation Period, was the owner of more than 1.5% of the Consolidated Total
Assets of the Domestic Borrower and its Subsidiaries; provided that at no time shall the
total assets of all Subsidiaries that are not Material Subsidiaries exceed, for the applicable
Calculation Period, 5.0% of the Consolidated Total Assets of the Domestic Borrower and its
Subsidiaries.

          “Maximum Rate” shall have the meaning assigned to such term in Section 9.09.

          “Moody’s” shall mean Moody’s Investors Service, Inc.

          “Mortgaged Properties” shall mean all Material Real Property which shall be subject to
a Mortgage that is delivered pursuant to the terms of this Agreement; provided,
however, that Mortgaged Properties shall not include any Material Real Property located in
the State of New York.

          “Mortgages” shall mean the mortgages, deeds of trust, assignments of leases and rents
and other security documents delivered on the Closing Date pursuant to Section 4.02(e) or after the
Closing Date pursuant to Section 5.10, as amended, supplemented or otherwise modified from time to
time, with respect to Mortgaged Properties, each substantially in the form of Exhibit D,
with such changes thereto as shall be acceptable to the Collateral Agent, including all such
changes as may be required to account for local law matters.

          “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3)
of ERISA with respect to which any Borrower, any other Subsidiary or any ERISA Affiliate (a) is
making or has an obligation to make contributions, (b) has within any of the preceding six plan
years made or had an obligation to make contributions or (c) otherwise could incur liability.

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          “Net Income” shall mean, with respect to any Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect of preferred stock
dividends.

          “Net Proceeds” shall mean:

100% of the cash proceeds actually received by the Domestic Borrower or any Wholly-Owned
Subsidiary (including any cash payments received by way of deferred payment of principal
pursuant to a note or installment receivable or purchase price adjustment receivable or
otherwise and including casualty insurance settlements and condemnation awards, but only as
and when received) from any loss, damage, destruction or condemnation of, or any sale,
transfer or other disposition (including any sale and leaseback of assets) to any Person of
any asset or assets of the Domestic Borrower or any Subsidiary (other than those pursuant to
Section 6.05(a), (b), (c), (e), (f), (g), (i) or (j)), net of (i) attorneys’ fees,
accountants’ fees, investment banking fees, sales commissions, survey costs, title insurance
premiums, and related search and recording charges, transfer taxes, deed or mortgage
recording taxes, required debt payments and required payments of other obligations relating
to the applicable asset (other than pursuant hereto or pursuant to the Senior Subordinated
Notes or any Permitted Senior Debt Securities or Permitted Subordinated Debt Securities) and
any cash reserve for adjustment in respect of the sale price of such asset established in
accordance with GAAP, including without limitation, pension and post-employment benefit
liabilities and liabilities related to environmental matters or against any indemnification
obligations associated with such transaction, other customary expenses and brokerage,
consultant and other customary fees actually incurred in connection therewith and (ii) Taxes
paid or payable as a result thereof

For purposes of calculating the amount of Net Proceeds, fees, commissions and other costs and
expenses payable to any Borrower or any Affiliate of any of them shall be disregarded, except for
financial advisory fees customary in type and amount paid to Affiliates of the Funds.

          “Non-Consenting Lender” shall have the meaning assigned to such term in Section
2.19(c).

          “Obligations” shall mean all amounts owing to any of the Agents, any Lender or any of
their affiliates pursuant to the terms of this Agreement or any other Loan Document.

          “Other Taxes” shall mean any and all present or future stamp or documentary taxes or
any other excise or property, intangible or mortgage recording taxes, charges or similar levies
arising from any payment made hereunder or from the execution, delivery or enforcement of, or
otherwise with respect to, the Loan Documents, and any and all interest and penalties related
thereto.

          “Participant” shall have the meaning assigned to such term in Section 9.04(c).

          “Participating Member State” means, any member state of the European community that
adopts or has adopted the Euro as its lawful currency in accordance with legislation of the
European community relating to Economic and Monetary Union.

29

 

          “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA.

          “Perfection Certificate” shall mean a certificate in the form of Annex I to the
Domestic Collateral Agreement or any other form approved by the Collateral Agent.

          “Permitted Business Acquisition” shall mean any acquisition of all or substantially
all the assets of, or all the Equity Interests (other than directors’ qualifying shares) in, a
Person or division or line of business of a Person (or any subsequent investment made in a Person,
division or line of business previously acquired in a Permitted Business Acquisition) if (a) such
acquisition was not preceded by, or effected pursuant to, an unsolicited or hostile offer and (b)
immediately after giving effect thereto: (i) no Event of Default shall have occurred and be
continuing or would result therefrom; (ii) all transactions related thereto shall be consummated in
accordance with applicable laws; and (iii) (A) the Domestic Borrower and its Subsidiaries shall be
in compliance, on a Pro Forma Basis after giving effect to such acquisition or formation, with the
covenants contained in Sections 6.11 and 6.12 recomputed as at the last day of the most recently
ended fiscal quarter of the Domestic Borrower and its Subsidiaries, and the Domestic Borrower shall
have delivered to the Administrative Agent a certificate of a Responsible Officer of the Domestic
Borrower to such effect, together with all relevant financial information for such Subsidiary or
assets, and (B) any acquired or newly formed Subsidiary shall not be liable for any Indebtedness
(except for Indebtedness permitted by Section 6.01).

          “Permitted Cure Security” shall mean (i) a common equity security of the Domestic
Borrower.

          “Permitted Encumbrances” shall mean (i) with respect to each Real Property, those
Liens and other encumbrances permitted by paragraphs (b), (d), (h), (m) and (o) of Section 6.02 and
(ii) with respect to each Real Property acquired after the Closing Date, those Liens and other
encumbrances permitted by paragraphs (b), (d), (e), (h), (k), (m) and (o) of Section 6.02,
provided, however, that in the case of those Liens and other encumbrances permitted
by clause (o) of Section 6.02 and as described in clauses (i) and (ii) of this definition, in the
event any Loan Party shall constitute the lessor under any such lease or sublease, no Lien created
or permitted to be incurred thereby shall be permitted hereunder except to the extent such Lien
would otherwise constitute a Permitted Encumbrance.

          “Permitted Investments” shall mean:

     (h) direct obligations of the United States of America or any agency thereof or
obligations guaranteed by the United States of America or any agency thereof, in each case
with maturities not exceeding two years;

     (i) time deposit accounts, certificates of deposit and money market deposits maturing
within 180 days of the date of acquisition thereof issued by a bank or trust company that is
organized under the laws of the United States of America, or any state thereof having
capital, surplus and undivided profits in excess of U.S.$500.0 million and whose long-term
debt, or whose parent holding company’s long-term debt, is rated A (or

30

 

such similar equivalent rating or higher) by at least one nationally recognized
statistical rating organization (as defined in Rule 436 under the Securities Act);

     (j) repurchase obligations with a term of not more than 180 days for underlying
securities of the types described in clause (a) above entered into with a bank meeting the
qualifications described in clause (b) above;

     (k) commercial paper, maturing not more than one year after the date of acquisition,
issued by a corporation (other than an Affiliate of any Borrower) organized and in existence
under the laws of the United States of America or any foreign country recognized by the
United States of America with a rating at the time as of which any investment therein is
made of P-1 (or higher) according to Moody’s, or A-1 (or higher) according to S&P;

     (l) securities with maturities of two years or less from the date of acquisition issued
or fully guaranteed by any State, commonwealth or territory of the United States of America,
or by any political subdivision or taxing authority thereof, and rated at least A by S&P or
A-2 by Moody’s;

     (m) shares of mutual funds whose investment guidelines restrict 95% of such funds’
investments to those satisfying the provisions of clauses (a) through (e) above;

     (n) money market funds that (i) comply with the criteria set forth in Rule 2a-7 under
the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii)
have portfolio assets of at least U.S.$500.0 million; and

     (o) time deposit accounts, certificates of deposit and money market deposits in an
aggregate face amount not in excess of 1/2 of 1% of the total assets of the Domestic
Borrower and the Subsidiaries, on a consolidated basis, as of the end of the Domestic
Borrower’s most recently completed fiscal year.

          “Permitted Receivables Documents” shall mean all documents and agreements evidencing,
relating to or otherwise governing a Permitted Receivables Financing.

          “Permitted Receivables Financing” shall mean one or more transactions pursuant to
which (i) Receivables Assets or interests therein are sold to or financed by one or more Special
Purpose Receivables Subsidiaries, and (ii) such Special Purpose Receivables Subsidiaries finance
their acquisition of such Receivables Assets or interests therein, or the financing thereof, by
selling or borrowing against such Receivables Assets; provided that (A) recourse to the
Domestic Borrower or any Subsidiary (other than the Special Purpose Receivables Subsidiaries) and
any obligations or agreements of the Domestic Borrower or any Subsidiary (other than the Special
Purpose Receivables Subsidiaries) in connection with such transactions shall be limited to the
extent customary for similar transactions in the applicable jurisdictions (including, to the extent
applicable, in a manner consistent with the delivery of a “true sale”/”absolute transfer” opinion
with respect to any transfer by the Domestic Borrower or any Subsidiary (other than a Special
Purpose Receivables Subsidiary), (B) the aggregate Receivables Net Investment since the Closing
Date shall not exceed U.S.$75.0 million at any time, (C) the Board of Directors of the Domestic
Borrower shall have determined in good faith

31

 

that each such Permitted Receivables Financing (including financing terms, covenants,
termination events and other provisions) is in the aggregate economically fair and reasonable to
the Domestic Borrower and the applicable Special Purpose Receivables Subsidiary, (D) all sales of
Receivables Assets or interests therein to any Special Purpose Receivables Subsidiary are made at
fair market value (as determined in good faith by the Domestic Borrower), and (E) the financing
terms, covenants, termination events and other provisions thereof will be market terms (as
determined in good faith by the Domestic Borrower) and may include representations, warranties,
covenants, indemnities and guarantees of performance which the Domestic Borrower has determined in
good faith to be customary in a receivables financing including, without limitation, those relating
to the servicing of the assets of a Special Purpose Receivables Subsidiary, it being understood and
agreed that any obligation of a seller of receivables to repurchase receivables arising as a result
of a breach of a representation, warranty or covenant or otherwise, including as a result of a
receivable or portion thereof becoming subject to any asserted defense, dispute, off-set or
counterclaim of any kind as a result of any action taken by, any failure to take action by or by
other event relating to the seller, shall be deemed customary.

          “Permitted Refinancing Indebtedness” shall mean any Indebtedness issued in exchange
for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund
(collectively, to “Refinance”), the Indebtedness being Refinanced (or previous refinancings
thereof constituting Permitted Refinancing Indebtedness); provided that (a) the principal
amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not
exceed the principal amount (or accreted value, if applicable) of the Indebtedness so Refinanced
(plus unpaid accrued interest and premium thereon), (b) the average life to maturity of such
Permitted Refinancing Indebtedness is greater than or equal to that of the Indebtedness being
Refinanced, (c) if the Indebtedness being Refinanced is subordinated in right of payment to the
Obligations under this Agreement, such Permitted Refinancing Indebtedness shall be subordinated in
right of payment to such Obligations on terms at least as favorable to the Lenders as those
contained in the documentation governing the Indebtedness being Refinanced, (d) no Permitted
Refinancing Indebtedness shall have different obligors, or greater guarantees or security, than the
Indebtedness being Refinanced and (e) if the Indebtedness being Refinanced is secured by any
collateral (whether equally and ratably with, or junior to, the Secured Parties or otherwise), such
Permitted Refinancing Indebtedness may be secured by such collateral (including in respect of
working capital facilities of Foreign Subsidiaries otherwise permitted under this Agreement only,
any collateral pursuant to after-acquired property clauses to the extent any such collateral
secured the Indebtedness being Refinanced) on terms no less favorable to the Secured Parties than
those contained in the documentation governing the Indebtedness being Refinanced.

          “Permitted Senior Debt Securities” shall mean unsecured senior notes issued by the
Domestic Borrower, (ii) the covenants (other than the lien covenant and the subsidiary debt
covenant), events of default, subsidiary guarantees and other terms of which (other than interest
rate and redemption premiums), taken as a whole, are not more restrictive to the Domestic Borrower
and its Subsidiaries than those in the Senior Subordinated Notes, (ii) the lien covenant and the
subsidiary debt covenant are on market terms for similar issuers at the time of issuance and (iii)
of which no subsidiary of the Domestic Subsidiary (other than a Domestic Subsidiary Loan Party) is
an obligor under such notes that is not an obligor under the Senior Subordinated Notes.

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          “Permitted Subordinated Debt Securities” shall mean unsecured subordinated notes
issued by the Domestic Borrower, (i) the terms of which do not provide for any scheduled repayment,
mandatory redemption or sinking fund obligation prior to the date on which the final maturity of
the Senior Subordinated Notes occurs (as in effect on the Closing Date), (ii) the covenants, events
of default, Subsidiary guarantees and other terms of which (other than interest rate and redemption
premiums), taken as a whole, are not more restrictive to the Domestic Borrower and its Subsidiaries
than those in the Senior Subordinated Notes and (iii) of which no Subsidiary of the Domestic
Subsidiary (other than a Domestic Subsidiary Loan Party) is an obligor under such notes that is not
an obligor under the Senior Subordinated Notes.

          “Person” shall mean any natural person, corporation, business trust, joint venture,
association, company, partnership, limited liability company or government, individual or family
trusts, or any agency or political subdivision thereof.

          “Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA
which is maintained or contributed to by any Borrower, any Subsidiary or any ERISA Affiliate or
with respect to which any Borrower or any Subsidiary could incur liability (including under Section
4069 of ERISA).

          “Platform” shall have the meaning assigned to such term in Section 9.17(b).

          “Pledged Collateral” shall have the meaning assigned to such term in the applicable
Collateral Agreement.

          “primary obligor” shall have the meaning given such term in the definition of the term
“Guarantee.”

          “Prior Liens” shall mean Liens which, pursuant to the provisions of any Security
Document, are or may be superior to the Lien of such Security Document.

          “Pro Forma Basis” shall mean, as to any Person, for any events as described in clauses
(i) and (ii) below that occur subsequent to the commencement of a period for which the financial
effect of such events is being calculated, and giving effect to the events for which such
calculation is being made, such calculation as will give pro forma effect to such
events as if such events occurred on the first day of the four consecutive fiscal quarter period
ended on or before the occurrence of such event (the “Reference Period”):

     (i) in making any determination of EBITDA, pro forma effect shall be
given to any Asset Disposition and to any Asset Acquisition (or any similar transaction or
transactions that require a waiver or consent of the Required Lenders pursuant to Section
6.04 or 6.05), in each case that occurred during the Reference Period (or, in the case of
determinations made pursuant to the definition of the term “Asset Acquisition,” occurring
during the Reference Period or thereafter and through and including the date upon which the
respective Asset Acquisition is consummated); and

     (ii) in making any determination on a Pro Forma Basis, (x) all Indebtedness (including
Indebtedness incurred or assumed and for which the financial effect is being

33

 

calculated, whether incurred under this Agreement or otherwise, but excluding normal
fluctuations in revolving Indebtedness incurred for working capital purposes and amounts
outstanding under any Permitted Receivables Financing, in each case, not to finance any
acquisition) incurred or permanently repaid during the Reference Period (or, in the case of
determinations made pursuant to the definition of the term “Asset Acquisition,” occurring
during the Reference Period or thereafter and through and including the date upon which the
respective Asset Acquisition is consummated) shall be deemed to have been incurred or repaid
at the beginning of such period and (y) Interest Expense of such Person attributable to
interest on any Indebtedness, for which pro forma effect is being given as
provided in preceding clause (x), bearing floating interest rates shall be computed on a
pro forma basis as if the rates that would have been in effect during the
period for which pro forma effect is being given had been actually in effect
during such periods.

Pro forma calculations made pursuant to the definition of the term “Pro Forma
Basis” shall be determined in good faith by a Responsible Officer of the Domestic Borrower and, for
any fiscal period ending on or prior to the first anniversary of an Asset Acquisition or Asset
Disposition (or any similar transaction or transactions that require a waiver or consent of the
Required Lenders pursuant to Section 6.04 or 6.05), may include adjustments to reflect operating
expense reductions and other operating improvements or synergies reasonably expected to result from
such Asset Acquisition, Asset Disposition or other similar transaction, to the extent that the
Domestic Borrower delivers to the Administrative Agent (i) a certificate of a Financial Officer of
the Domestic Borrower setting forth such operating expense reductions and other operating
improvements or synergies and (ii) information and calculations supporting in reasonable detail
such estimated operating expense reductions and other operating improvements or synergies.

          “Projections” shall mean the projections of the Domestic Borrower and its Subsidiaries
included in the Information Memorandum and any other projections and any forward-looking statements
(including statements with respect to booked business) of such entities furnished to the Lenders or
the Administrative Agent by or on behalf of the Borrowers or any of their Subsidiaries prior to the
Closing Date.

          “Qualifying Lender” means a Lender that is beneficially entitled to amounts payable to
such Lender in respect of an advance under a Loan Document and is:

	 	(a)	 	a Lender:

	 	(i)	 	which is a bank (as defined for the purpose of
section 349 of the United Kingdom Income and Corporation Taxes Act
1988) making an advance under a Loan Document; or
	 
	 	(ii)	 	in respect of an advance made under a Loan
Document by a person that was a bank (as defined for the purpose of
section 349 of the United Kingdom Income and Corporation Taxes Act
1988) at the time that that advance was made,

34

 

     and which is within the charge to United Kingdom corporation tax as respects any
payments of interest made in respect of that advance; or

     (b) a Lender which is treated as a resident of a jurisdiction having a double taxation
agreement (a “Treaty”) with the United Kingdom which makes provision for full
exemption from tax imposed by the United Kingdom on interest and which does not carry on a
business in the United Kingdom through a permanent establishment with which that Lender’s
participation in the Loan is effectively connected (a “Treaty Lender”).

          “Quotation Day” means, in relation to any period for which an interest rate is to be
determined:

     (a) (if the currency is Sterling) the first day of that period;

     (b) (if the currency is Euro) two TARGET Days before the first day of that period; or

     (c) (for any other currency) two Business Days before the first day of that period,
unless market practice differs in the Relevant Interbank Market for a currency, in which
case the Quotation Day for that currency will be determined by the Administrative Agent in
accordance with market practice in the Relevant Interbank Market (and if quotations would
normally be given by leading banks in the Relevant Interbank Market on more than one day,
the Quotation Day will be the last of these days).

          “Real Property” shall mean, collectively, all right, title and interest of any
Borrower or any other Subsidiary in and to any and all parcels of real property owned or operated
by any Borrower or any other Subsidiary together with all Improvements and appurtenant fixtures,
equipment, personal property, easements and other property and rights incidental to the ownership,
lease or operation thereof.

          “Receivables Assets” shall mean accounts receivable (including any bills of exchange)
and related assets and property from time to time originated, acquired or otherwise owned by the
Domestic Borrower or any Subsidiary.

          “Receivables Net Investment” shall mean the aggregate cash amount paid by the lenders
or purchasers under any Permitted Receivables Financing in connection with their purchase of, or
the making of loans secured by, Receivables Assets or interests therein, as the same may be reduced
from time to time by collections with respect to such Receivables Assets or otherwise in accordance
with the terms of the Permitted Receivables Documents; provided, however, that if
all or any part of such Receivables Net Investment shall have been reduced by application of any
distribution and thereafter such distribution is rescinded or must otherwise be returned for any
reason, such Receivables Net Investment shall be increased by the amount of such distribution, all
as though such distribution had not been made.

          “Reference Period” shall have the meaning assigned to such term in the definition of
the term “Pro Forma Basis.”

35

 

          “Refinance” shall have the meaning assigned to such term in the definition of the term
“Permitted Refinancing Indebtedness,” and “Refinanced” shall have a meaning correlative
thereto.

          “Register” shall have the meaning assigned to such term in Section 9.04(b).

          “Regulation U” shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

          “Regulation X” shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

          “Related Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

          “Release” shall mean any placing, spilling, leaking, seepage, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing or depositing
in, into or onto the Environment.

          “Relevant Interbank Market” means, in relation to the LIBO Rate, the principal London
offices of Citibank International plc and, in relation to the EURIBO Rate, the principal office in
New York City of Citibank, N.A. or such other banks as may be appointed by the Administrative Agent
with the consent of the Borrowers.

          “Remaining Present Value” shall mean, as of any date with respect to any lease, the
present value as of such date of the scheduled future lease payments with respect to such lease,
determined with a discount rate equal to a market rate of interest for such lease reasonably
determined at the time such lease was entered into.

          “Reportable Event” shall mean any reportable event as defined in Section 4043(c) of
ERISA or the regulations issued thereunder, other than those events as to which the 30-day notice
period referred to in Section 4043(c) of ERISA has been waived, with respect to a Plan.

          “Required Lenders” shall mean, at any time, Lenders having (a) Loans (other than
Swingline Loans) outstanding (calculated in respect of Loans denominated in a Foreign Currency on
the Equivalent thereof in Dollars at such time), (b) Revolving L/C Exposures, (c) Swingline
Exposures, and (d) Available Unused Commitments, that taken together, represent more than 50% of
the sum of (w) all Loans (other than Swingline Loans) outstanding (calculated in respect of Loans
denominated in a Foreign Currency on the Equivalent thereof in Dollars at such time), (x) Revolving
L/C Exposures, (y) Swingline Exposures, and (z) the total Available Unused Commitments at such
time. The Loans, Revolving L/C Exposures, Swingline Exposures and Available Unused Commitment of
any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

          “Responsible Officer” of any Person shall mean any executive officer or Financial
Officer of such Person and any other officer or similar official thereof responsible for the
administration of the obligations of such Person in respect of this Agreement.

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          “Revolving Facility” shall mean the Revolving Facility Commitments and the extensions
of credit made hereunder by the Revolving Facility Lenders.

          “Revolving Facility Borrowing” shall mean a Borrowing comprised of Revolving Facility
Loans.

          “Revolving Facility Commitment” shall mean, with respect to each Revolving Facility
Lender, the commitment of such Revolving Facility Lender to make Revolving Facility Loans pursuant
to Section 2.01, expressed as a Dollar amount representing the maximum aggregate permitted amount
of such Revolving Facility Lender’s Revolving Facility Credit Exposure hereunder, as such
commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender under Section 9.04. The
initial Dollar amount of each Revolving Facility Lender’s Revolving Facility Commitment is set
forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
Revolving Facility Lender shall have assumed its Revolving Facility Commitment, as applicable. The
aggregate Dollar amount of the Revolving Facility Commitments on the date hereof is U.S.$500.0
million.

          “Revolving Facility Credit Exposure” shall mean, at any time, the sum of (a) the
aggregate principal amount of the Revolving Facility Loans outstanding at such time (calculated in
respect of Loans denominated in a Foreign Currency on the Equivalent thereof in Dollars at such
time), (b) the Swingline Exposure at such time and (c) the Revolving L/C Exposure at such time
(calculated in respect of Revolving L/C Exposure denominated in a Foreign Currency on the
Equivalent thereof in Dollars at such time). The Revolving Facility Credit Exposure of any
Revolving Facility Lender at any time shall be the sum of (a) the aggregate principal amount of
such Revolving Facility Lender’s Revolving Facility Loans outstanding at such time (calculated in
respect of Loans denominated in a Foreign Currency on the Equivalent thereof in Dollars at such
time) and (b) such Revolving Facility Lender’s Revolving Facility Percentage of the Swingline
Exposure and Revolving L/C Exposure at such time (calculated in respect of Revolving L/C Exposure
denominated in a Foreign Currency on the Equivalent thereof in Dollars at such time).

          “Revolving Facility Lender” shall mean a Lender with a Revolving Facility Commitment
or with outstanding Revolving Facility Loans.

          “Revolving Facility Loan” shall mean a Loan made by a Revolving Facility Lender
pursuant to Section 2.01(b). Each Revolving Facility Revolving Loan shall be a Eurocurrency Loan
or an ABR Revolving Loan.

          “Revolving Facility Maturity Date” shall mean August 30, 2012.

          “Revolving Facility Percentage” shall mean, with respect to any Revolving Facility
Lender, the percentage of the total Revolving Facility Commitments represented by such Lender’s
Revolving Facility Commitment. If the Revolving Facility Commitments have terminated or expired,
the Revolving Facility Percentages shall be determined based upon the Revolving Facility
Commitments most recently in effect, giving effect to any assignments pursuant to Section 9.04.

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          “Revolving L/C Exposure” shall mean at any time the sum of (a) the aggregate undrawn
amount of all Letters of Credit outstanding at such time (calculated in respect of Letters of
Credit denominated in a Foreign Currency on the Equivalent thereof in Dollars at such time) and (b)
the aggregate principal amount of all L/C Disbursements that have not yet been reimbursed at such
time (calculated in respect of L/C Disbursements denominated in a Foreign Currency on the
Equivalent thereof in Dollars at such time). The Revolving L/C Exposure of any Revolving Facility
Lender at any time shall mean its Revolving Facility Percentage of the aggregate Revolving L/C
Exposure at such time.

          “S&P” shall mean Standard & Poor’s Ratings Group, Inc.

          “Sale and Lease-Back Transaction” shall have the meaning assigned to such term in
Section 6.03.

          “Screen Rate” means:

(a) in relation to the LIBO Rate, the British Bankers’ Association Interest
Settlement Rate for the relevant currency and period; and

(b) in relation to the EURIBO Rate, the percentage rate per annum determined by the
Banking Federation of the European Union for the relevant period,

displayed on the appropriate page of the Reuters LIBO screen. If the agreed page is replaced or
service ceases to be available, the Administrative Agent may specify another page or service
displaying the appropriate rate after consultation with the Foreign Borrowers and the Lenders.

          “SEC” shall mean the Securities and Exchange Commission or any successor thereto.

          “Secured Parties” shall mean the “Secured Parties” as defined in the Collateral
Agreements.

          “Securities Act” shall mean the Securities Act of 1933, as amended.

          “Security Documents” shall mean the Mortgages, the Collateral Agreements and each of
the security agreements and other instruments and documents executed and delivered pursuant to any
of the foregoing or pursuant to Section 5.10.

          “Senior Subordinated Note Documents” shall mean the Senior Subordinated Notes and the
Senior Subordinated Note Indenture.

          “Senior Subordinated Note Indenture” shall mean the Indenture dated as of October 29,
2004 under which the Senior Subordinated Notes were issued, among the Domestic Borrower and
Citibank, N.A., as trustee, as in effect on the Closing Date and as amended, restated, supplemented
or otherwise modified from time to time in accordance with the requirements thereof and of this
Agreement.

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          “Senior
Subordinated Notes” shall mean the Domestic Borrower’s
7
3/8% Senior
Subordinated Notes due 2014 issued pursuant to the Senior Subordinated Note Indenture and any notes
issued by the Domestic Borrower in exchange for, and as contemplated by, the Senior Subordinated
Notes and the related registration rights agreement with substantially identical terms as the
Senior Subordinated Notes.

          “Special Purpose Receivables Subsidiary” shall mean a direct or indirect Subsidiary of
the Domestic Borrower established in connection with a Permitted Receivables Financing for the
acquisition of Receivables Assets or interests therein, and which is organized in a manner intended
to reduce the likelihood that it would be substantively consolidated with the Domestic Borrower or
any of the Subsidiaries (other than Special Purpose Receivables Subsidiaries) in the event the
Domestic Borrower or any such Subsidiary becomes subject to a proceeding under the U.S. Bankruptcy
Code (or other insolvency law).

          “Statutory Reserves” shall mean, with respect to any currency, any reserve, liquid
asset or similar requirements established by any Governmental Authority of the United States of
America or of the jurisdiction of such currency or any jurisdiction in which Loans in such currency
are made to which banks in such jurisdiction are subject for any category of deposits or
liabilities customarily used to fund loans in such currency or by reference to which interest rates
applicable to Loans in such currency are determined.

          “Sterling” shall mean the lawful currency of the United Kingdom of Great Britain and
Northern Ireland.

          “Sub-Agent” shall mean Citibank International plc.

          “Subordinated Intercompany Debt” shall have the meaning assigned to such term in
Section 6.01(e).

          “subsidiary” shall mean, with respect to any Person (herein referred to as the
“parent”), any corporation, partnership, association or other business entity of which
securities or other ownership interests representing more than 50% of the equity or more than 50%
of the ordinary voting power or more than 50% of the general partnership interests are, at the time
any determination is being made, directly or indirectly, owned, Controlled or held by such Person.

          “Subsidiary” shall mean a subsidiary; provided that unless the context
otherwise requires, “Subsidiary” shall mean a subsidiary of the Domestic Borrower.

          “Subsidiary Loan Party” shall mean a Domestic Subsidiary Loan Party or a Foreign
Subsidiary Loan Party.

          “Supply Agreement” shall mean the Supply Agreement, dated October 29, 2004 by and
between Dresser-Rand Company and Ingersoll-Rand Company Limited.

          “Swap Agreement” shall mean any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value

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or any similar transaction or any combination of these transactions, provided that no
phantom stock or similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of the Domestic Borrower or any of
its Subsidiaries shall be a Swap Agreement.

          “Swingline Borrowing” shall mean a Borrowing comprised of Swingline Loans.

          “Swingline Borrowing Request” shall mean a request by any Borrower substantially in
the form of Exhibit C-2.

          “Swingline Commitment” shall mean, with respect to each Swingline Lender, the
commitment of such Swingline Lender to make Swingline Loans pursuant to Section 2.04. The
aggregate amount of the Swingline Commitments on the Closing Date is U.S.$30.0 million.

          “Swingline Exposure” shall mean at any time the aggregate principal amount of all
outstanding Swingline Borrowings at such time. The Swingline Exposure of any Revolving Facility
Lender at any time shall mean its Revolving Facility Percentage of the aggregate Swingline Exposure
at such time.

          “Swingline Lender” shall mean Citicorp North America, Inc., in its capacity as a
lender of Swingline Loans, and/or any other Revolving Facility Lender designated as such by the
Domestic Borrower after the Closing Date that is reasonably satisfactory to the Domestic Borrower
and the Administrative Agent and executes a counterpart to this Agreement as a Swingline Lender.

          “Swingline Loans” shall mean the swingline loans made to any Borrower pursuant to
Section 2.04.

          “Taxes” shall mean any and all present or future taxes, levies, imposts, duties
(including stamp duties), deductions, charges (including ad valorem charges) or
withholdings imposed by any Governmental Authority and any and all interest and penalties related
thereto.

          “Test Period” shall mean, on any date of determination, the period of four consecutive
fiscal quarters of the Domestic Borrower then most recently ended (taken as one accounting period).

          “Title Company” shall mean Title Associates Inc., as agent for Stewart Title Insurance
Company, or such other nationally recognized title company as shall be selected by the
Administrative Agent.

          “Transactions” shall mean, collectively, the transactions to occur on or prior to the
Closing Date pursuant to the Loan Documents, including (a) the execution and delivery of the Loan
Documents and the initial borrowings hereunder and (b) the payment of all fees and expenses owing
in connection with the foregoing.

          “Type,” when used in respect of any Loan or Borrowing, shall refer to the Rate by
reference to which interest on such Loan or on the Loans comprising such Borrowing is

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determined. For purposes hereof, the term “Rate” shall include the Adjusted LIBO Rate
and the Alternate Base Rate.

          “UCC” shall mean (i) the Uniform Commercial Code as in effect in the applicable state
of jurisdiction and (ii) certificate of title or other similar statutes relating to “rolling stock”
or barges as in effect in the applicable jurisdiction.

          “UK Share Charge” shall mean the charge entered into by the Domestic Borrower over its
shares in D-R Holdings (UK) Limited, substantially in the form of Exhibit E-2.

          “U.S. Bankruptcy Code” shall mean Title 11 of the United States Code, as amended, or
any similar federal or state law for the relief of debtors.

          “U.S. Patriot Act” shall have the meaning assigned to such term in Section 3.08(a).

          “Wholly Owned Subsidiary” of any Person shall mean a subsidiary of such Person, all of
the Equity Interests of which (other than directors’ qualifying shares or nominee or other similar
shares required pursuant to applicable law) are owned by such Person or another Wholly Owned
Subsidiary of such Person.

          “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          SECTION 1.02. Terms Generally. The definitions set forth or referred to in Section
1.01 shall apply equally to both the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and neuter
forms. The words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” All references herein to Articles, Sections, Exhibits and Schedules
shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, this
Agreement unless the context shall otherwise require. Except as otherwise expressly provided
herein, any reference in this Agreement to any Loan Document shall mean such document as amended,
restated, supplemented or otherwise modified from time to time. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be construed in accordance
with GAAP, as in effect from time to time; provided that, if the Domestic Borrower notifies
the Administrative Agent that the Domestic Borrower requests an amendment to any provision hereof
to eliminate the effect of any change occurring after the Closing Date in GAAP or in the
application thereof on the operation of such provision (or if the Administrative Agent notifies the
Domestic Borrower that the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such change in GAAP or in
the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect
and applied immediately before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

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ARTICLE II

THE CREDITS

          SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each
Lender agrees to make Revolving Facility Loans denominated in Dollars or in a Foreign Currency to
any Borrower, in each case from time to time during the Availability Period in an aggregate
principal amount that will not result in (i) such Lender’s Revolving Facility Credit Exposure
exceeding such Lender’s Revolving Facility Commitment, (ii) the Revolving Facility Credit Exposure
exceeding the total Revolving Facility Commitments, (iii) the Revolving Credit Exposure denominated
in Euros exceeding the Equivalent in Dollars determined on the date of delivery of the applicable
Borrowing Request of U.S.$250 million, (iv) the Revolving Credit Exposure denominated in Sterling
exceeding the Equivalent in Dollars determined on the date of delivery of the applicable Borrowing
Request of U.S.$75 million, (v) any Revolving Facility Loans made on the Closing Date, (vi) the
Revolving L/C Exposure exceeding U.S.$205 million on the Closing Date, (vii) until the provisions
of clause (b)(i) of the definition of “Collateral and Guarantee Requirement” and clause (B) of
Schedule 5.13 have been satisfied as set forth therein, the French Revolving Facility Credit
Exposure exceeding the Equivalent in Dollars of U.S.$300 million determined on the date of the
delivery of the applicable Borrowing Request or date of issuance, amendment, renewal or extension
of the applicable Letter of Credit. Within the foregoing limits and subject to the terms and
conditions set forth herein, each Borrower may borrow, prepay and reborrow Revolving Facility
Loans.

          SECTION 2.02. Loans and Borrowings. (a) Each Loan shall be made as part of a
Borrowing consisting of Loans under the same Facility and of the same Type and in the same currency
made by the Lenders ratably in accordance with their respective Commitments under the applicable
Facility (or, in the case of Swingline Loans, in accordance with their respective Swingline
Commitments); provided, however, that Revolving Facility Loans shall be made by the
Revolving Facility Lenders ratably in accordance with their respective Revolving Facility
Percentages on the date such Loans are made hereunder. The failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations hereunder;
provided that the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required.

          (b) Subject to Section 2.14, each Borrowing denominated in Dollars shall be comprised entirely
of ABR Loans or Eurocurrency Loans as the Domestic Borrower may request in accordance herewith.
Unless and until exchanged into the Equivalent in Dollars thereof and converted into ABR Loans in
accordance with Section 2.07(e), 2.14 or 2.21, each Borrowing denominated in a Foreign Currency
shall be comprised entirely of Eurocurrency Loans. Each Lender at its option may make any ABR Loan
or Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of such Lender to make
such Loan; provided that any exercise of such option shall not affect the obligation of any
Borrower to repay such Loan in accordance with the terms of this Agreement and such Lender shall
not be entitled to any amounts payable under
Section 2.15, 2.17 or 2.20 solely in respect of increased costs resulting from such exercise
and existing at the time of such exercise; provided, further, that, notwithstanding
anything set forth herein to the contrary, no Lenders shall be required to make an ABR Loan to any
Foreign Borrower.

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          (c) At the commencement of each Interest Period for any Eurocurrency Revolving Facility
Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of the
Borrowing Multiple and not less than the Borrowing Minimum; provided that a Eurocurrency
Revolving Facility Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the Revolving Facility Commitments or that is required to finance the reimbursement of
an L/C Disbursement as contemplated by Section 2.05(e). At the time that each ABR Revolving
Facility Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral
multiple of the Borrowing Multiple and not less than the Borrowing Minimum; provided that
an ABR Revolving Facility Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the Revolving Facility Commitments or that is required to finance the
reimbursement of an L/C Disbursement as contemplated by Section 2.05(e). Each Swingline Borrowing
shall be in an amount that is an integral multiple of the Borrowing Multiple and not less than the
Borrowing Minimum. Borrowings of more than one Type and under more than one Facility may be
outstanding at the same time; provided that there shall not at any time be more than a
total of twenty (20) Eurocurrency Borrowings outstanding under the Revolving Facility.

          (d) Notwithstanding any other provision of this Agreement, no Borrower shall be entitled to
request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Revolving Facility Maturity Date.

          SECTION 2.03. Requests for Borrowings. To request a Revolving Facility Borrowing, the
Borrower shall notify the Administrative Agent (and, in the case of a Revolving Facility Borrowing
consisting of Loans denominated in a Foreign Currency, simultaneously to the Sub-Agent) of such
request by telephone (a) in the case of a Eurocurrency Borrowing, not later than 11:00 a.m., Local
Time, three (3) Business Days before the date of the proposed Borrowing or (b) in the case of an
ABR Borrowing, not later than 12:00 noon, Local Time, one (1) Business Day before the date of the
proposed Borrowing; provided that any such notice of an ABR Revolving Facility Borrowing to finance
the reimbursement of an L/C Disbursement as contemplated by Section 2.05(e) may be given not later
than 10:00 a.m., Local Time, on the date of the proposed Borrowing. Each such telephonic Borrowing
Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent
and signed by the Borrower making such Borrowing Request. Each such telephonic and written
Borrowing Request shall specify the following information in compliance with Section 2.02:

     (i) whether the requested Borrowing is to be a Revolving Facility Borrowing;

     (ii) the aggregate amount of the requested Borrowing (expressed in Dollars);

     (iii) the date of such Borrowing, which shall be a Business Day;

     (iv) in the case of a Borrowing denominated in Dollars, whether such Borrowing is to be
an ABR Borrowing or a Eurocurrency Borrowing;

     (v) in the case of a Eurocurrency Borrowing, the currency and the initial Interest
Period to be applicable thereto; and

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     (vi) the location and number of the Borrower’s account to which funds are to be
disbursed.

If no election as to the Type of Revolving Facility Borrowing is specified, then the requested
Revolving Facility Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurocurrency Borrowing, then the Borrower requesting such Eurocurrency
Borrowing shall be deemed to have selected an Interest Period of one month’s duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent
shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made
as part of the requested Borrowing.

          SECTION 2.04. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, each Swingline Lender agrees to make Swingline Loans to any of the Borrowers from time to
time during the Availability Period, in an aggregate principal amount at any time outstanding that
will not result in (x) the aggregate principal amount of outstanding Swingline Loans exceeding the
Swingline Commitment or (y) the Revolving Facility Credit Exposure exceeding the total Revolving
Facility Commitments; provided that no Swingline Lender shall be required to make a
Swingline Loan to refinance an outstanding Swingline Borrowing. Interest on Swingline Loans
denominated in Foreign Currency will be calculated based on the overnight EURIBO Rate. Within the
foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may
borrow, prepay and reborrow Swingline Loans.

          (b) To request a Swingline Borrowing, the applicable Borrower shall notify the Administrative
Agent and the Swingline Lenders of such request by telephone (confirmed by a Swingline Borrowing
Request by telecopy) (x) in the case of a Swingline Borrowing denominated in Euros or Sterling, not
later than 12:00 noon, Local Time, one (1) Business Day before the date of the proposed Swingline
Borrowing or (y) in the case of a Swingline Borrowing denominated in Dollars, not later than 12:00
noon, Local Time on the day of the proposed Swingline Borrowing. Each such notice and Swingline
Borrowing Request shall be irrevocable and shall specify (i) the requested date (which shall be a
Business Day), (ii) the amount of the requested Swingline Borrowing (expressed in Dollars), (iii)
in the case of a Swingline Borrowing denominated in Euros or Sterling, the currency requested, (iv)
the term of such Swingline Loan (which, in the case of a Swingline Borrowing denominated in Euros
or Sterling, shall not be more than 7 Business Days) and (v) the location and number of the
Borrower’s account to which funds are to be disbursed. Each Swingline Lender shall make each
Swingline Loan to be made by it hereunder in accordance with Section 2.02(a) on the proposed date
thereof by wire transfer of immediately available funds by 3:00 p.m., Local Time, to the account of
the applicable
Borrower (or, in the case of a Swingline Borrowing made to finance the reimbursement of an L/C
Disbursement as provided in Section 2.05(e), by remittance to the applicable Issuing Bank).

          (c) A Swingline Lender may by written notice given to the Administrative Agent (and to the
other Swingline Lenders) not later than 10:00 a.m., Local Time on any Business Day, require the
Revolving Facility Lenders to acquire participations on such Business Day in all or a portion of
the outstanding Swingline Loans made by it. Such notice shall specify the aggregate amount of such
Swingline Loans in which the Revolving Facility Lenders will participate. Promptly upon receipt of
such notice, the Administrative Agent will give notice thereof to each such Lender, specifying in
such notice such Lender’s Revolving Facility

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Percentage of such Swingline Loan or Loans. Each
Revolving Facility Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent for the account of the applicable Swingline
Lender, such Revolving Facility Lender’s Revolving Facility Percentage of such Swingline Loan or
Loans. Each Revolving Facility Lender acknowledges and agrees that its respective obligation to
acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including the occurrence and continuance
of a Default or reduction or termination of the Commitments, and that each such payment shall be
made without any offset, abatement, withholding or reduction whatsoever. Each Revolving Facility
Lender shall comply with its obligation under this paragraph by wire transfer of immediately
available funds, in the same manner as provided in Section 2.06 with respect to Loans made by such
Revolving Facility Lender (and Section 2.06 shall apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the
applicable Swingline Lender the amounts so received by it from the Revolving Facility Lenders. The
Administrative Agent shall notify the applicable Borrower of any participations in any Swingline
Loan acquired pursuant to this paragraph (c), and thereafter payments in respect of such Swingline
Loan shall be made to the Administrative Agent and not to the applicable Swingline Lender. Any
amounts received by a Swingline Lender from the applicable Borrower (or other party on behalf of
such Borrower) in respect of a Swingline Loan after receipt by such Swingline Lender of the
proceeds of a sale of participations therein shall be promptly remitted to the Administrative
Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the
Administrative Agent to the Revolving Facility Lenders that shall have made their payments pursuant
to this paragraph and to such Swingline Lender, as their interests may appear; provided
that any such payment so remitted shall be repaid to such Swingline Lender or to the Administrative
Agent, as applicable, if and to the extent such payment is required to be refunded to the
applicable Borrower for any reason. The purchase of participations in a Swingline Loan pursuant to
this paragraph shall not relieve the Borrowers of any default in the payment thereof.

          SECTION 2.05. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, each Borrower may request the issuance of Letters of Credit for its
own account in a form reasonably acceptable to the applicable Issuing Bank, at any time and from
time to time during the Availability Period and prior to the date that is five (5) Business Days
prior to the Revolving Facility Maturity Date. In the event of any inconsistency between the terms
and conditions of this Agreement and the terms and conditions of any form of letter of credit
application or other
agreement submitted by any Borrower to, or entered into by such Borrower with, an Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal (other than an automatic renewal in
accordance with paragraph (c) of this Section) or extension of an outstanding Letter of Credit), a
Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements
for doing so have been approved by the applicable Issuing Bank) to the applicable Issuing Bank and
the Administrative Agent (two (2) Business Days in advance of the requested date of issuance,
amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or

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extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount
of such Letter of Credit and the currency (either in Dollars or a Foreign Currency) in which it is
denominated, the name and address of the beneficiary thereof and such other information as shall be
necessary to issue, amend, renew or extend such Letter of Credit. If requested by the applicable
Issuing Bank, a Borrower also shall submit a letter of credit application on such Issuing Bank’s
standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be
issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of
each Letter of Credit the applicable Borrower shall be deemed to represent and warrant that), after
giving effect to such issuance, amendment, renewal or extension, (i) the Revolving L/C Exposure
shall not exceed U.S.$500.0 million, (ii) the Revolving Facility Credit Exposure shall not exceed
the total Revolving Facility Commitments, (iii) the Equivalent in Dollars of the Revolving L/C
Exposure denominated in a Foreign Currency determined on the date of such issuance, amendment,
renewal or extension shall not exceed (A) in the case such Foreign Currency is Euros, U.S.$250
million, and (B) in the case such Foreign Currency is Sterling, U.S.$75 million and (iv) until the
provisions of clause (b)(i) of the definition of “Collateral and Guarantee Requirement” and clause
(B) of Schedule 5.13 have been satisfied as set forth therein, the Equivalent in Dollars of the
French Revolving Facility Credit Exposure shall not exceed U.S.$300 million determined on the date
of issuance, amendment, renewal or extension of the applicable Letter of Credit or delivery of the
applicable Borrowing Request.

          (c) Expiration Date. (i) Each Letter of Credit shall expire at or prior to the close
of business on the earlier of (A) the date one (1) year after the date of the issuance of such
Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal
or extension) and (B) the date that is five (5) Business Days prior to the Revolving Facility
Maturity Date; provided that any Letter of Credit with a one-year tenor may provide for the
automatic renewal thereof for additional one-year periods (which, in no event, shall extend beyond
the date referred to in clause (B) of this paragraph (c)).

     (ii) Notwithstanding the foregoing, any Borrower may request the issuance of a Letter
of Credit that expires at or prior to the close of business on the date that is five (5)
Business Days prior to the Revolving Facility Maturity Date.

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
applicable Issuing Bank or the Revolving Facility Lenders, such Issuing Bank hereby grants to
each Revolving Facility Lender, and each Revolving Facility Lender hereby acquires from such
Issuing Bank, a participation in such Letter of Credit equal to such Revolving Facility Lender’s
Revolving Facility Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Revolving Facility Lender
hereby absolutely and unconditionally agrees to pay to the Administrative Agent in Dollars or the
Foreign Currency in which such Letter of Credit is denominated, as the case may be, for the account
of the applicable Issuing Bank, such Revolving Facility Lender’s Revolving Facility Percentage of
each L/C Disbursement made by such Issuing Bank not reimbursed by the applicable Borrower on the
date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to
be refunded to the applicable Borrower for any reason. Each

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Revolving Facility Lender acknowledges
and agrees that its obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction whatsoever.

          (e) Reimbursement. If the applicable Issuing Bank shall make any L/C Disbursement in
respect of a Letter of Credit, the Borrower for which such Letter of Credit was issued shall
reimburse such L/C Disbursement by paying to the Administrative Agent an amount equal to such L/C
Disbursement in Dollars or the Foreign Currency in which such Letter of Credit is denominated, as
the case may be, not later than 5:00 p.m., Local time, on the Business Day immediately following
the date such Borrower receives notice under paragraph (g) of this Section of such L/C
Disbursement, provided that such Borrower may, subject to the conditions to borrowing set
forth herein, request in accordance with Section 2.03 or 2.04 that such payment be financed with an
ABR Revolving Facility Borrowing or a Swingline Borrowing or an Eurocurrency Revolving Loan
denominated in the applicable Foreign Currency, as applicable, in an equivalent amount and, to the
extent so financed, such Borrower’s obligation to make such payment shall be discharged and
replaced by the resulting ABR Revolving Facility Borrowing or Swingline Borrowing or Eurocurrency
Revolving Loan. If any Borrower fails to reimburse any L/C Disbursement when due, then the
Administrative Agent shall promptly notify the applicable Issuing Bank and each other Revolving
Facility Lender of the applicable L/C Disbursement, the payment then due from such Borrower and, in
the case of a Revolving Facility Lender, such Lender’s Revolving Facility Percentage thereof.
Promptly following receipt of such notice, each Revolving Facility Lender shall pay to the
Administrative Agent in Dollars or such Foreign Currency, as the case may be, its Revolving
Facility Percentage of the payment then due from such Borrower, in the same manner as provided in
Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply,
mutatis mutandis, to the payment obligations of the Revolving Facility Lenders),
and the Administrative Agent shall promptly pay to the applicable Issuing Bank in Dollars or such
Foreign Currency, as the case may be, the amounts so received by it from the Revolving Facility
Lenders. Promptly following receipt by the Administrative Agent of any payment from such Borrower
pursuant to this paragraph, the Administrative Agent shall distribute such payment to the
applicable Issuing Bank or, to the extent that Revolving Facility Lenders have made payments
pursuant to this paragraph to reimburse such Issuing Bank, then to such Lenders and such Issuing
Bank as their interests may appear. Any payment made by a Revolving Facility Lender pursuant to
this paragraph to reimburse an Issuing Bank for any
L/C Disbursement (other than the funding of an ABR Revolving Loan or a Swingline Borrowing or
an Eurocurrency Revolving Loan as contemplated above) shall not constitute a Loan and shall not
relieve any Borrower of its obligation to reimburse such L/C Disbursement.

          (f) Obligations Absolute. The obligation of each Borrower to reimburse L/C
Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under
any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability
of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or
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, (iii) payment by
the

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applicable Issuing Bank under a Letter of Credit against presentation of a draft or other
document that does not comply with the terms of such Letter of Credit or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable discharge of, or provide a right of
setoff against, any Borrower’s obligations hereunder; provided that, in each case, payment
by the Issuing Bank shall not have constituted gross negligence or willful misconduct. Neither the
Administrative Agent, the Lenders nor any Issuing Bank, nor any of their Related Parties, shall
have any liability or responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any
of the circumstances referred to in the preceding sentence), or any error, omission, interruption,
loss or delay in transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms or any consequence arising from causes beyond the
control of such Issuing Bank; provided that the foregoing shall not be construed to excuse
the applicable Issuing Bank from liability to any Borrower to the extent of any direct damages (as
opposed to consequential damages, claims in respect of which are hereby waived by each Borrower to
the extent permitted by applicable law) suffered by such Borrower that are determined by a court
having jurisdiction to have been caused by (i) such Issuing Bank’s failure to exercise care when
determining whether drafts and other documents presented under a Letter of Credit comply with the
terms thereof or (ii) such Issuing Bank’s refusal to issue a Letter of Credit in accordance with
the terms of this Agreement. The parties hereto expressly agree that, in the absence of gross
negligence or willful misconduct on the part of the applicable Issuing Bank, such Issuing Bank
shall be deemed to have exercised care in each such determination and each refusal to issue a
Letter of Credit. In furtherance of the foregoing and without limiting the generality thereof, 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 applicable Issuing Bank may, in
its sole 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.

          (g) Disbursement Procedures. The applicable Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for payment under a
Letter of Credit. Such Issuing Bank shall promptly notify the Administrative Agent and the
applicable Borrower by telephone (confirmed by telecopy) of such demand for payment and whether
such Issuing Bank has made or will make a L/C Disbursement thereunder;
provided that any failure to give or delay in giving such notice shall not relieve any
Borrower of its obligation to reimburse such Issuing Bank and the Revolving Facility Lenders with
respect to any such L/C Disbursement.

          (h) Interim Interest. If an Issuing Bank shall make any L/C Disbursement, then,
unless the applicable Borrower shall reimburse such L/C Disbursement in full on the date such L/C
Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and
including the date such L/C Disbursement is made to but excluding the date that such Borrower
reimburses such L/C Disbursement, at the rate per annum then applicable to ABR Revolving Loans or
Eurocurrency Revolving Loans denominated in the applicable Foreign Currency, as applicable;
provided that, if such L/C Disbursement is not reimbursed by such

48

 

Borrower when due
pursuant to paragraph (e) of this Section, then Section 2.13(c) shall apply; provided
further that any L/C Disbursement that is reimbursed after the date such L/C Disbursement
is required to be reimbursed under paragraph (e) of this Section, (A) be payable in Dollars or the
Foreign Currency in which such Letter of Credit is denominated, as the case may be, (B) bear
interest at the rate per annum then applicable to ABR Revolving Loans or Eurocurrency Revolving
Loans denominated in the applicable Foreign Currency, as applicable, and (C) Section 2.13(c) shall
apply. Interest accrued pursuant to this paragraph shall be for the account of the applicable
Issuing Bank, except that interest accrued on and after the date of payment by any Revolving
Facility Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank shall be
for the account of such Revolving Facility Lender to the extent of such payment.

          (i) Replacement of an Issuing Bank. An Issuing Bank may be replaced at any time by
written agreement among the Borrowers, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement
of an Issuing Bank. At the time any such replacement shall become effective, each Borrower shall
pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12.
From and after the effective date of any such replacement, (i) the successor Issuing Bank shall
have all the rights and obligations of the replaced Issuing Bank under this Agreement with respect
to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank”
shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing
Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have
all the rights and obligations of such Issuing Bank under this Agreement with respect to Letters of
Credit issued by it prior to such replacement but shall not be required to issue additional Letters
of Credit.

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing,
(i) in the case of an Event of Default described in Section 7.01(h), (i) or (l), on the Business
Day or (ii) in the case of any other Event of Default, on the third Business Day, in each case,
following the date on which any Borrower receives notice from the Administrative Agent (or, if the
maturity of the Loans has been accelerated, Revolving Facility Lenders with Revolving L/C Exposure
representing greater than 50% of the total Revolving L/C Exposure) demanding the deposit of cash
collateral pursuant to this paragraph, such Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders,
an amount in Dollars in cash equal to the Revolving L/C Exposure as of
such date plus any accrued and unpaid interest thereon; provided that, upon the
occurrence of any Event of Default with respect to any Borrower described in clause (h), (i) or (l)
of Section 7.01, the obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable in Dollars or such Foreign Currency,
without demand or other notice of any kind. Each Borrower also shall deposit cash collateral
pursuant to this paragraph as and to the extent required by Section 2.11(b). Each such deposit
pursuant to this paragraph or pursuant to Section 2.11(b) shall be held by the Administrative Agent
as collateral for the payment and performance of the obligations of the applicable Borrower under
this Agreement. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole discretion of

49

 

(i) for so
long as an Event of Default shall be continuing, the Administrative Agent and (ii) at any other
time, the applicable Borrower, in each case, in Permitted Investments and at the risk and expense
of such Borrower, such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be applied by the
Administrative Agent to reimburse each Issuing Bank for L/C Disbursements for which such Issuing
Bank has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction
of the reimbursement obligations of the applicable Borrower for the Revolving L/C Exposure at such
time or, if the maturity of the Loans has been accelerated (but subject to the consent of Revolving
Facility Lenders with Revolving L/C Exposure representing greater than 50% of the total Revolving
L/C Exposure), be applied to satisfy other obligations of such Borrower under this Agreement. If
any Borrower is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be
returned to such Borrower within three (3) Business Days after all Events of Default have been
cured or waived. If any Borrower is required to provide an amount of cash collateral hereunder
pursuant to Section 2.11(b), such amount (to the extent not applied as aforesaid) shall be returned
to such Borrower as and to the extent that, after giving effect to such return, such Borrower would
remain in compliance with Section 2.11(b) and no Event of Default shall have occurred and be
continuing.

          (k) Additional Issuing Banks. From time to time, the Borrowers may by notice to the
Administrative Agent designate up to three Lenders (in addition to Citibank, N.A.) that agree (in
their sole discretion) to act in such capacity and are reasonably satisfactory to the
Administrative Agent as Issuing Banks. Each such additional Issuing Bank shall execute a
counterpart of this Agreement upon the approval of the Administrative Agent (which approval shall
not be unreasonably withheld) and shall thereafter be an Issuing Bank hereunder for all purposes.

          (l) Reporting. Unless otherwise requested by the Administrative Agent, each Issuing
Bank shall (i) provide to the Administrative Agent copies of any notice received from any Borrower
pursuant to Section 2.05(b) no later than the next Business Day after receipt thereof and (ii)
report in writing to the Administrative Agent (A) on or prior to each Business Day on which such
Issuing Bank expects to issue, amend, renew or extend any Letter of Credit, the date of such
issuance, amendment, renewal or extension, and the aggregate face amount of the Letters of Credit
to be issued, amended, renewed or extended by it and outstanding after giving effect to such
issuance, amendment, renewal or extension occurred (and whether the amount thereof changed), and
the Issuing Bank shall be permitted to issue, amend, renew or
extend such Letter of Credit if the Administrative Agent shall not have advised the Issuing
Bank that such issuance, amendment renewal or extension would not be in conformity with the
requirements of this Agreement, (B) on each Business Day on which such Issuing Bank makes any L/C
Disbursement, the date of such L/C Disbursement and the amount of such L/C Disbursement and (C) on
any other Business Day, such other information as the Administrative Agent shall reasonably
request, including but not limited to prompt verification of such information as may be requested
by the Administrative Agent. If requested by any Lender, the Administrative Agent shall provide
copies to such Lender of the reports referred to in clause (ii) of the preceding sentence and a
summary of such reports on a monthly basis.

50

 

          SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately available funds, (i)
in the case of a Loan denominated in Dollars, in Dollars, by 12:00 noon, Local Time, to the account
of the Administrative Agent most recently designated by it for such purpose by notice to the
Lenders, and (ii) in the case of a Loan denominated in a Foreign Currency, in the applicable
Foreign Currency, by 12:00 noon, Local Time, to the account of the Sub-Agent most recently
designated by the Administrative Agent for such purpose by notice to the Lenders, as the case may
be; provided that Swingline Loans shall be made as provided in Section 2.04. The
Administrative Agent will make such Loans available to the applicable Borrower by promptly
crediting the amounts so received, in like funds, to an account of such Borrower maintained with
the Administrative Agent in New York City or as otherwise agreed between such Borrower and the
Administrative Agent, and designated by such Borrower in the Borrowing Request; provided
that ABR Revolving Loans, Swingline Borrowings and Eurocurrency Revolving Loans made to finance the
reimbursement of a L/C Disbursement and reimbursements as provided in Section 2.05(e) shall be
remitted by the Administrative Agent to the applicable Issuing Bank.

          (b) Unless the Agent shall have received notice from a Lender prior to the proposed date of
any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with paragraph (a) of this Section and may, in reliance upon
such assumption, make available to the applicable Borrower a corresponding amount. In such event,
if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the applicable Borrower severally agree to pay
to the Administrative Agent forthwith on demand (without duplication) such corresponding amount
with interest thereon, for each day from and including the date such amount is made available to
such Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case
of such Lender, (A) for Loans denominated in Dollars, the greater of the Federal Funds Rate and a
rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation and (B) for Loans denominated in a Foreign Currency, the greatest of the Federal
Funds Rate, the cost of funds incurred by the Administrative Agent or Sub-Agent in respect of such
amount and a rate determined by the Administrative Agent in accordance with banking industry rules
on interbank compensation or (ii) in the case of such Borrower, (A) for Loans denominated in
Dollars, the interest rate applicable to ABR Loans and (B) for Loans denominated in a Foreign
Currency, the greater of the interest rate applicable to ABR Loans and the cost of funds incurred
by the
Administrative Agent or Sub-Agent in respect of such amount. If such Lender pays such amount
to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

          SECTION 2.07. Interest Elections. (a) Each Borrowing denominated in Dollars
initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a
Eurocurrency Borrowing, shall have an initial Interest Period as specified in such Borrowing
Request. Thereafter, each Borrower may elect, in the case of a Borrowing denominated in Dollars,
to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a
Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided in this Section. Each
Borrower may elect different options with respect to different portions of the

51

 

affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders holding the Loans
comprising such Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings, which may not be
converted or continued.

          (b) To make an election pursuant to this Section, a Borrower shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would be required under
Section 2.03 if such Borrower were requesting a Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such telephonic Interest Election Request
shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Interest Election Request in a form approved by the
Administrative Agent and signed by the applicable Borrower.

          (b) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) in the case of a Borrowing denominated in Dollars, whether the resulting
Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing; and

     (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to be
applicable thereto after giving effect to such election.

If any such Interest Election Request made by any Borrower requests a Eurocurrency Borrowing but
does not specify an Interest Period, then such Borrower shall be deemed to have selected an
Interest Period of one month’s duration.

          (c) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender to which such Interest Election Request relates of the details thereof and of
such Lender’s portion of each resulting Borrowing.

          (d) If any Borrower fails to deliver a timely Interest Election Request with respect to a
Eurocurrency Borrowing prior to the end of the Interest Period applicable thereto, then, unless
such Borrowing is repaid as provided herein, at the end of such Interest Period, (i) if such
Borrowing is denominated in Dollars, such Borrower shall be deemed to have converted such Borrowing
to an ABR Borrowing, and (ii) if such Borrowing is denominated in a Foreign Currency, such Borrower
shall be deemed to have selected a one-month Interest Period for such Borrowing. Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the written request (including a request through electronic means) of the
Required Lenders, so notifies such Borrower, then, so long as

52

 

an Event of Default is continuing,
(i) no outstanding Borrowing may be converted to or continued as a Eurocurrency Borrowing, (ii)
unless repaid, each Eurocurrency Borrowing denominated in Dollars shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto and (iii) unless repaid, each
Eurocurrency Borrowing denominated in a Foreign Currency shall bear interest calculated on the
one-week EURIBO Rate.

          SECTION 2.08. Termination and Reduction of Commitments. (a) Unless previously
terminated, the Revolving Facility Commitments shall terminate on the Revolving Facility Maturity
Date.

          (b) Each Borrower may at any time terminate, or from time to time reduce, the Commitments
under any Facility; provided that (i) each reduction of the Commitments under any Facility
shall be in an amount that is an integral multiple of U.S.$1.0 million and not less than U.S.$5.0
million (or, if less, the remaining amount of the Revolving Facility Commitments) and (ii) no
Borrower shall terminate or reduce the Revolving Facility Commitments if, after giving effect to
any concurrent prepayment of the Revolving Facility Loans in accordance with Section 2.11, the
Revolving Facility Credit Exposure would exceed the total Revolving Facility Commitments.

          (c) Each Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Revolving Facility Commitments under paragraph (b) of this Section at least three (3) Business
Days prior to the effective date of such termination or reduction, specifying such election and the
effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall
advise the applicable Lenders of the contents thereof. Each notice delivered by any Borrower
pursuant to this Section shall be irrevocable; provided that a notice of termination of the
Revolving Facility Commitments delivered by such Borrower may state that such notice is conditioned
upon the effectiveness of other credit facilities, in which case such notice may be revoked by such
Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if
such condition is not satisfied. Any termination or reduction of the Commitments shall be
permanent. Each reduction of the Commitments under any Facility shall be made ratably among the
Lenders in accordance with their respective Commitments under such Facility.

          SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) Each Borrower hereby
unconditionally promises to pay (i) to the Administrative Agent for the account of each Revolving
Facility Lender the then unpaid principal amount of each Revolving Facility Loan to such Borrower
on the Revolving Facility Maturity Date and (ii) to the Swingline Lender the then unpaid principal
amount of each Swingline Loan made to such Borrower on the earlier of the Revolving Facility
Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of
a calendar month and is at least seven Business Days after such Swingline Loan is made;
provided that on each date that a Revolving Facility Borrowing (other than a Borrowing that
is required to finance the reimbursement of an L/C Disbursement as contemplated by Section 2.05(e))
is made by the Domestic Borrower, the Domestic Borrower shall repay all Swingline Loans then
outstanding.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of each Borrower to such Lender resulting from

53

 

each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Facility and Type thereof and the Interest Period (if any)
applicable thereto, (ii) the amount of any principal or interest due and payable or to become due
and payable from each Borrower to each Lender hereunder and (iii) any amount received by such
Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

          (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the obligations recorded
therein; provided that the failure of any Lender or the Administrative Agent to maintain
such accounts or any error therein shall not in any manner affect the obligation of any Borrower to
repay the Loans in accordance with the terms of this Agreement.

          (e) Any Lender may request that Loans made by it to any Borrower be evidenced by a promissory
note substantially in the form of Exhibit J. In such event, each such Borrower shall
prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved
by the Administrative Agent. Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by
one or more promissory notes in such form payable to the order of the payee named therein (or, if
such promissory note is a registered note, to such payee and its registered assigns).

          SECTION
2.10. Repayment of Revolving Facility Loans. (b)  Prior to any repayment of
any Borrowing under any Facility hereunder, a Borrower shall select the Borrowing or Borrowings
under the applicable Facility to be repaid and shall notify the Administrative Agent by telephone
(confirmed by telecopy) of such selection not later than 2:00 p.m., Local Time, (i) in the case of
an ABR Borrowing, one Business Day
before the scheduled date of such repayment and (ii) in the case of a Eurocurrency Borrowing,
three Business Days before the scheduled date of such repayment. Each repayment of a Borrowing
shall be applied to the Revolving Facility Loans included in the repaid Borrowing such that each
Revolving Facility Lender receives its ratable share of such repayment (based upon the respective
Revolving Facility Credit Exposures of the Revolving Facility Lenders at the time of such
repayment). Notwithstanding anything to the contrary in the immediately preceding sentence, prior
to any repayment of a Swingline Borrowing hereunder, the Domestic Borrower shall select the
Borrowing or Borrowings to be repaid and shall notify the Administrative Agent by telephone
(confirmed by telecopy) of such selection not later than 1:00 p.m., Local Time, on the scheduled
date of such repayment. Repayments of Borrowings shall be accompanied by accrued interest on the
amount repaid.

          SECTION 2.11. Prepayment of Loans. (a) Each Borrower shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, without premium or penalty
(but subject to Section 2.16), in an aggregate principal amount that is an integral multiple

54

 

of the
Borrowing Multiple and not less than the Borrowing Minimum or, if less, the amount outstanding,
subject to prior notice in accordance with Section 2.10(e).

          (b) If on any date, the Administrative Agent notifies the Domestic Borrower that, on the last
day of any month, the sum of (A) the sum of aggregate principal amount of all Revolving Facility
Loans denominated in Dollars plus the aggregate principal amount of all Letters of Credit
denominated in Dollars then outstanding plus (B) the Equivalent in Dollars (determined on the third
Business Day prior to such interest payment date) of the sum of the aggregate principal amount of
all Revolving Facility Loans denominated in Foreign Currencies plus the aggregate principal amount
of all Letters of Credit denominated in Foreign Currencies then outstanding exceeds 105% of the
aggregate Revolving Facility Commitments of the Lenders on such date, the Domestic Borrower and
each other Borrower shall, as soon as practicable and in any event within two Business Days
following such date, prepay the outstanding principal amount of any Revolving Facility Loans owing
by such Borrower in an aggregate amount (or deposit cash collateral in an account with the
Administrative Agent pursuant to Section 2.05(j)) sufficient to reduce such sum to an amount not to
exceed 100% of the aggregate Revolving Facility Commitments of the Lenders on such date together
with any interest accrued to the date of such prepayment on the aggregate principal amount of
Revolving Facility Loans prepaid. The Administrative Agent shall give prompt notice of any
prepayment required under this Section 2.11(b) to the Domestic Borrower and the Lenders.

          SECTION 2.12. Fees. (a) The Domestic Borrower agrees to pay to each Lender (other
than any Defaulting Lender), through the Administrative Agent, 10 Business Days after the last day
of March, June, September and December in each year, and three Business Days after the date on
which the Revolving Facility Commitments of all the Lenders shall be terminated as provided herein,
a commitment fee (a “Commitment Fee”) on the daily amount of the Available Unused
Commitment of such Lender during the preceding quarter (or other period commencing with the Closing
Date and ending with the date on which the last of the Commitments of such Lender
shall be terminated) at the rate per annum set forth under the caption “Commitment Fee” below
based upon the Leverage Ratio as of the most recent determination date.

	 	 	 	 	 
	Leverage Ratio	 	Commitment Fee
	Category 1

Equal to or greater than 2.50 to 1.00
	 	 	0.375	%
	 
	 	 	 	 
	Category 2

Less than 2.50 to 1.00 but equal to or greater than 2.00 to
1.00
	 	 	0.35	%
	 
	 	 	 	 
	Category 3

Less than 2.00 to 1.00 equal to or greater than 1.50 to 1.00
	 	 	0.325	%
	 
	 	 	 	 
	Category 4

Less than 1.50 to 1.00 but equal to or greater than 1.00 to
1.00
	 	 	0.30	%
	 
	Category 5

Less than 1.00 to 1.00
	 	 	0.25	%

55

 

          All Commitment Fees shall be computed on the basis of the actual number of days elapsed in a
year of 360 days. For the purpose of calculating any Lender’s Commitment Fee, the outstanding
Swingline Loans during the period for which such Lender’s Commitment Fee is calculated shall be
deemed to be zero. The Commitment Fee due to each Lender shall begin to accrue on the Closing Date
and shall cease to accrue on the date on which the last of the Commitments of such Lender shall be
terminated as provided herein.

          (b) The Domestic Borrower from time to time agrees to pay to each Revolving Facility Lender
(other than any Defaulting Lender), through the Administrative Agent, 10 Business Days after the
last day of March, June, September and December of each year and three Business Days after the date
on which the Revolving Facility Commitments of all the Lenders shall be terminated as provided
herein, a fee (an “L/C Participation Fee”) on such Lender’s Revolving Facility Percentage
of the daily aggregate Revolving L/C Exposure (excluding the portion thereof attributable to
unreimbursed L/C Disbursements), during the preceding quarter (or shorter period commencing with
the Closing Date and ending with the Revolving Facility Maturity Date or the date on which the
Revolving Facility Commitments shall be terminated) at the rate per annum equal to the Applicable
Margin for Eurocurrency Revolving Facility Borrowings effective for each day in such period. Each
Borrower from time to time agrees to pay to each Issuing Bank, for its own account, (x) 10 Business
Days after the last day of March, June, September and December of each year and three Business Days
after the date on which the Revolving Facility Commitments of all the Lenders shall be terminated
as provided herein, a fronting fee in respect of each Letter of Credit issued by such Issuing Bank
at the request of such Borrower for the period from and including the date of issuance of such
Letter of Credit to and including the termination of such Letter of Credit (computed at a rate
equal to 1/8 of 1% per annum of the daily average stated amount of such Letter of Credit),
plus (y) in connection with the issuance, amendment or transfer of any such Letter of Credit or any
L/C Disbursement thereunder, such Issuing Bank’s customary documentary and processing charges
(collectively, “Issuing Bank Fees”). All L/C Participation Fees and Issuing Bank Fees that
are payable on a per annum basis shall be computed on the basis of the actual number of days
elapsed in a year of 360 days.

          (c) The Domestic Borrower agrees to pay to the Administrative Agent, for the account of the
Administrative Agent, the fees set forth in the Fee Letter, dated as of August 25, 2004, as
amended, restated, supplemented or otherwise modified from time to time, at the times specified
therein (the “Administrative Agent Fees”).

          (d) All Fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for distribution, if and as appropriate, among the Lenders, except that
Issuing Bank Fees shall be paid directly to the applicable Issuing Banks. Once paid, none of the
Fees shall be refundable under any circumstances.

56

 

          SECTION 2.13. Interest. (a) Each Borrower shall pay interest on the unpaid principal
amount of each ABR Loan made to such Borrower at the Alternate Base Rate plus the Applicable
Margin.

          (b) Each Borrower shall pay interest on the unpaid principal amount of each Eurocurrency Loan
made to such Borrower at the Adjusted LIBO Rate for the Interest Period in effect for such
Eurocurrency Loan plus the Applicable Margin.

          (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any Fees or
other amount payable by any Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such Borrower shall pay interest on such overdue amount, after as
well as before judgment, at a rate per annum equal to (x) in the case of overdue principal of any
Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of
this Section or (y) in the case of any other amount, 2% plus the rate applicable to ABR Loans as
provided in paragraph (a) of this Section; provided that this paragraph (c) shall not apply
to any Event of Default that has been waived by the Lenders pursuant to Section 9.08.

          (d) Accrued interest on each Loan shall be payable by the applicable Borrower in arrears on
each Interest Payment Date for such Loan and upon termination of the Revolving Facility
Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section
shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other
than a prepayment of an ABR Revolving Loan prior to the end of the Availability Period), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (iii) in the event of any conversion of any Eurocurrency Loan prior to the end of
the current Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

          (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that
(i) all interest on Loans denominated in Sterling shall be computed on the basis
of a year of 365 days (or 366 days in a leap year) and (ii) interest computed by reference to
the Alternate Base Rate at times when the Alternate Base Rate is based on the Base Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be
payable for the actual number of days elapsed (including the first day but excluding the last day).
The applicable Alternate Base Rate, Adjusted LIBO Rate, LIBO Rate or EURIBO Rate shall be
determined by the Administrative Agent, and such determination shall be conclusive absent manifest
error.

          SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurocurrency Borrowing denominated in any currency:

          (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate, the LIBO Rate or the EURIBO Rate, as applicable, for such Interest Period; or

57

 

          (b) the Administrative Agent is advised by the Required Lenders or the Majority Lenders under
the Revolving Facility that the Adjusted LIBO Rate, the LIBO Rate or the EURIBO Rate, as
applicable, for such Interest Period will not adequately and fairly reflect the cost to such
Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrowers and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurocurrency Borrowing shall be ineffective and such Borrowing,
if denominated in Dollars, shall be converted to, and if denominated in Euros, shall be exchanged
into the Equivalent thereof in Dollars and converted to, an ABR Borrowing, in each case on the last
day of the Interest Period applicable thereto, and (ii) if any Borrowing Request requests a
Eurocurrency Borrowing, such Borrowing shall be made as an ABR Borrowing or shall be made as a
Borrowing bearing interest at such rate as the Majority Lenders under the Revolving Facility shall
agree adequately reflects the costs to the Revolving Facility Lenders of making the Loans
comprising such Borrowing.

          SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate or those
for which payment has been requested pursuant to Section 2.20) or Issuing Bank; or

     (ii) impose on any Lender or Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurocurrency Loans made by such
Lender or any Letter of Credit or participation therein (except those for which payment
has been requested pursuant to Section 2.20);

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Loan (or of maintaining its obligation to make any such Loan) to any
Borrower or to increase the cost to such Lender or Issuing Bank of participating in, issuing or
maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such
Lender or Issuing Bank hereunder (whether of principal, interest or otherwise), then such Borrower
will pay to such Lender or Issuing Bank, as applicable, such additional amount or amounts as will
compensate such Lender or Issuing Bank, as applicable, for such additional costs incurred or
reduction suffered.

          (c) If any Lender or Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or
Issuing Bank’s capital or on the capital of such Lender’s or Issuing Bank’s holding company, if
any, as a consequence of this Agreement or any of the Loans made by, or participations in Letters
of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level
below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding
company could have achieved but for such Change in Law (taking

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into consideration such Lender’s or
such Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding
company with respect to capital adequacy), then from time to time each Borrower to which such Loans
were made or are to be made shall pay to such Lender or such Issuing Bank, as applicable, such
additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s
or such Issuing Bank’s holding company for any such reduction suffered.

          (c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary
to compensate such Lender or Issuing Bank or its holding company, as applicable, as specified in
paragraph (a) or (b) of this Section shall be delivered to the applicable Borrower and shall be
conclusive absent manifest error. Each Borrower shall pay such Lender or Issuing Bank, as
applicable, the amount shown as due on any such certificate within 10 days after receipt thereof.

          (d) Promptly after any Lender or any Issuing Bank has determined that it will make a request
for increased compensation pursuant to this Section 2.15, such Lender or Issuing Bank shall notify
the Borrowers thereof. Failure or delay on the part of any Lender or Issuing Bank to demand
compensation pursuant to this Section shall not constitute a waiver of such Lender’s or Issuing
Bank’s right to demand such compensation; provided that no Borrower shall be required to
compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than 180 days prior to the date that such Lender or Issuing Bank, as
applicable, notifies such Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or Issuing Bank’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be extended to include
the period of retroactive effect thereof.

          SECTION 2.16. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurocurrency Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an Event of Default),
(b) the conversion of any Eurocurrency Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurocurrency Loan on
the date specified in any notice delivered pursuant hereto or (d) the assignment of any
Eurocurrency Loan other than on the last day of the Interest Period applicable thereto as a result
of a request by any Borrower pursuant to Section 2.19, then, in any such event, such Borrower shall
compensate each Lender for the loss, cost and expense attributable to such event. In the case of a
Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to be the amount
determined by such Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate
that would have been applicable to such Loan, for the period from the date of such event to the
last day of the then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue a Eurocurrency Loan, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest which would accrue on such principal amount for
such period at the interest rate which such Lender would bid were it to bid, at the commencement of
such period, for deposits in Dollars if such Loan is denominated in Dollars or the applicable
Foreign Currency if such Loan is denominated in such Foreign Currency, as the case may be, of a
comparable amount and period from other banks in the Eurodollar market. A certificate of any
Lender

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setting forth any amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to such Borrower and shall be conclusive absent manifest error. Such
Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

          SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of
any Loan Party under any Loan Document shall be made free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided that if a Loan Party shall be required to
deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) any Agent, Lender or Issuing Bank, as
applicable, receives an amount equal to the sum it would have received had no such deductions for
Indemnified Taxes and Other Taxes been made, (ii) such Loan Party shall make such deductions and
(iii) such Loan Party shall timely pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

          (b) In addition, each Loan Party shall pay any Other Taxes payable on account of any
obligation of such Loan Party to the relevant Governmental Authority in accordance with applicable
law.

          (c) Each Loan Party shall indemnify each Agent, each Lender and each Issuing Bank, within 10
days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
(other than Indemnified Taxes or Other Taxes resulting from gross negligence or willful misconduct
of such Agent, Lender or Issuing Bank and without duplication of any amounts indemnified under
Section 2.17(a)) paid by such Agent, Lender or Issuing Bank, as applicable, on or with respect to
any payment by or on account of any
obligation of such Loan Party under any Loan Document (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this Section) and any
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability and setting forth in
reasonable detail the calculation for such payment or liability delivered to such Loan Party by a
Lender or an Issuing Bank, or by the Administrative Agent on its own behalf, on behalf of another
Agent or on behalf of a Lender or an Issuing Bank, shall be conclusive absent manifest error of the
Lender, the Issuing Bank or the Administrative Agent.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Loan
Party to a Governmental Authority, such Loan Party shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e) Any Lender, Agent or Issuing Bank that is entitled to an exemption from or reduction of
withholding Tax otherwise indemnified against by a Loan Party pursuant to this Section 2.17 with
respect to payments under any Loan Document shall deliver to the relevant Borrower or the relevant
Governmental Authority (with a copy to the Administrative Agent), to the extent such Lender, Agent
or Issuing Bank is legally entitled to do so, at the time or times

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prescribed by applicable law
such properly completed and executed documentation prescribed by applicable law as may reasonably
be requested by such Borrower to permit such payments to be made without such withholding tax or at
a reduced rate; provided that no Lender shall have any obligation under this paragraph (e)
with respect to any withholding Tax imposed by any jurisdiction other than the United States or the
jurisdiction under the laws of which any Borrower is organized or in which it is treated as a tax
resident if in the reasonable judgment of such Lender such compliance would subject such Lender to
any material cost or expense not reimbursed or indemnified by the Loan Parties or would otherwise
prejudice such Lender’s interest in any material respect.

          (f) If an Agent, Lender or Issuing Bank determines, in good faith and in its sole discretion,
that it has received a refund of any taxes in respect of or calculated with reference to
Indemnified Taxes or Other Taxes as to which it has been indemnified by a Loan Party or with
respect to which a Loan Party has paid additional amounts pursuant to this Section 2.17, it shall
pay over such refund to such Loan Party (but only to the extent of indemnity payments made, or
additional amounts paid, by such Loan Party under this Section 2.17 with respect to the Indemnified
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such Agent,
Lender or Issuing Bank (including any Taxes imposed with respect to such refund) as is determined
by the Agent, Lender or Issuing Bank in good faith and in its sole discretion, and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund);
provided that such Loan Party, upon the request of such Agent, Lender or Issuing Bank,
agrees to repay as soon as reasonably practicable the amount paid over to such Loan Party (plus any
penalties, interest or other charges imposed by the relevant Governmental Authority) to such Agent,
Lender or Issuing Bank in the event such Agent, Lender or Issuing Bank is required to repay such
refund to such Governmental Authority. This Section shall not be construed to require any Agent,
Lender or Issuing Bank to
make available its tax returns (or any other information relating to its Taxes which it deems
confidential) to the Loan Parties or any other Person.

          (g) A Loan Party is not required to pay an increased amount to a Lender or Agent under clause
(a) of this Section 2.17 in respect of any Indemnified Tax that is required by the United Kingdom
to be deducted from any payment by that Loan Party of interest on a Loan to a Borrower incorporated
in the United Kingdom, if on the date on which the payment falls due (i) the payment could have
been made to the relevant Lender or Agent without deduction of the relevant Indemnified Tax if the
relevant Lender was a Qualifying Lender, but on that date that Lender is not or has ceased to be a
Qualifying Lender other than as a result of any change after the date it became a Lender under this
Agreement in (or in the interpretation, administration, or application of) any law or Treaty, or
any published practice or concession of any relevant Governmental Authority; or (ii) the relevant
Lender is a Treaty Lender (as defined in the definition of Qualifying Lender) and the Loan Party
making the payment is able to demonstrate that the payment could have been made to the relevant
Lender or Agent without deduction of the relevant Indemnified Tax had the relevant Lender complied
with its obligations under clause (e) of this Section 2.17.

          SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a)
Unless otherwise specified, each Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of L/C Disbursements, or of

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amounts payable under Section 2.15, 2.16, 2.17 or 2.20, or otherwise) prior to 2:00 p.m., Local
Time, on the date when due, in immediately available funds, without condition or deduction for any
defense, recoupment, set-off or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such payments shall be
made to the Administrative Agent to the applicable account designated to the Borrowers by the
Administrative Agent, except payments to be made directly to the applicable Issuing Bank or the
applicable Swingline Lender as expressly provided herein and except that payments pursuant to
Sections 2.15, 2.16, 2.17, 2.20 and 9.05 shall be made directly to the Persons entitled thereto.
The Administrative Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof. If any payment
hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended
to the next succeeding Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of such extension. Except for Loans denominated in any
Foreign Currency (the principal of and interest on which hereunder shall be paid in such Foreign
Currency) and except for reimbursement obligations with respect to any Letter of Credit denominated
in any Foreign Currency (which shall be paid in such Foreign Currency), all payments hereunder of
(i) principal or interest in respect of any Loan, (ii) reimbursement obligations with respect to
any Letter of Credit or (iii) any other amount due hereunder or under any other Loan Document shall
be made in Dollars. Any payment required to be made by the Administrative Agent hereunder shall be
deemed to have been made by the time required if such Administrative Agent shall, at or before such
time, have taken the necessary steps to make such payment in accordance with the regulations or
operating procedures of the clearing or settlement system used by such Administrative Agent to make
such payment.

          (b) If at any time insufficient funds are received by and available to the Administrative
Agent from any Borrower to pay fully all amounts of principal, unreimbursed L/C Disbursements,
interest and fees then due from such Borrower hereunder, such funds shall be applied (i)
first, towards payment of interest and fees then due from such Borrower hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest and fees then due to
such parties, and (ii) second, towards payment of principal and unreimbursed L/C
Disbursements then due from such Borrower hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and unreimbursed L/C Disbursements then due to such
parties.

          (c) If any Lender shall, by exercising any right of set-off or counterclaim, through the
application of any proceeds of Collateral or otherwise, obtain payment in respect of any principal
of or interest on any of its Revolving Facility Loans or participations in L/C Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate
amount of its Revolving Facility Loans and participations in L/C Disbursements and Swingline Loans
and accrued interest thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value) participations in the
Revolving Facility Loans and participations in L/C Disbursements and Swingline Loans of other
Lenders to the extent necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Facility Loans and

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participations in L/C Disbursements and Swingline
Loans; provided that (i) if any such participations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and (ii) the provisions
of this paragraph (c) shall not be construed to apply to any payment made by any Borrower pursuant
to and in accordance with the express terms of this Agreement or any payment obtained by a Lender
as consideration for the assignment of or sale of a participation in any of its Loans or
participations in L/C Disbursements to any assignee or participant, other than to such Borrower or
any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph (c) shall apply).
Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against such Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Borrower in the amount of
such participation.

          (d) Unless the Administrative Agent shall have received notice from the applicable Borrower
prior to the date on which any payment is due to the Administrative Agent for the account of the
Lenders or the applicable Issuing Bank hereunder that such Borrower will not make such payment, the
Administrative Agent may assume that such Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or the applicable
Issuing Bank, as applicable, the amount due. In such event, if such Borrower has not in fact made
such payment, then each of the Lenders or the applicable Issuing Bank, as applicable, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including the date such amount
is distributed to it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to Section
2.04(c), 2.05(d) or (e), 2.06(b) or 2.18(d), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such
Sections until all such unsatisfied obligations are fully paid.

          (f) To the extent that the Administrative Agent receives funds for application to the amounts
owing by any Borrower under or in respect of this Agreement in currencies other than the currency
or currencies required to enable the Administrative Agent to distribute funds to the Lenders in
accordance with the terms of this Section 2.18, the Administrative Agent shall be entitled to
convert or exchange such funds into Dollars or into a Foreign Currency or from Dollars to a Foreign
Currency or from a Foreign Currency to Dollars, as the case may be, to the extent necessary to
enable the Agent to distribute such funds in accordance with the terms of this Section 2.18;
provided that each Borrower and each of the Lenders hereby agree that the Administrative
Agent shall not be liable or responsible for any loss, cost or expense suffered by such Borrower or
such Lender as a result of any conversion or exchange of currencies affected pursuant to this
Section 2.18(f) or as a result of the failure of the Administrative Agent to effect any such
conversion or exchange; and provided further that each applicable Borrower agrees
to

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indemnify the Administrative Agent and each Lender, and hold the Administrative Agent and each
Lender harmless, for any and all losses, costs and expenses incurred by the Administrative Agent or
any Lender for any conversion or exchange of currencies (or the failure to convert or exchange any
currencies) in accordance with this Section 2.18(f).

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15 or 2.20, or if any Loan Party is required to pay any
additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different
lending office for funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or Affiliates, if, in the reasonable judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to
Section 2.15, 2.17 or 2.20, as applicable, in the future and (ii) would not subject such Lender to
any material unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender
in any material respect. The relevant Loan Party hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

          (b) If any Lender requests compensation under Section 2.15 or 2.20, or if any Loan Party is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.17, or is a Defaulting Lender, then such Loan Party may, at its
sole expense and effort, upon notice to such Lender and the Administrative Agent, require such
Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all its interests, rights and obligations under this Agreement to an
assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided that
(i) such Loan Party shall have received the prior written consent of the Administrative Agent,
which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of
an amount equal to the outstanding principal of its Loans and participations in L/C Disbursements
and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it
hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and
fees) or such Loan Party (in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.15 or 2.20 or payments required
to be made pursuant to Section 2.17, such assignment will result in a reduction in such
compensation or payments. Nothing in this Section 2.19 shall be deemed to prejudice any rights
that any Loan Party may have against any Lender that is a Defaulting Lender.

          (c) If any Lender (such Lender, a “Non-Consenting Lender”) has failed to consent to a
proposed amendment, waiver, discharge or termination which pursuant to the terms of Section 9.08
requires the consent of all of the Lenders affected and with respect to which the Required Lenders
shall have granted their consent, then provided no Event of Default then exists, such Borrower
shall have the right (unless such Non-Consenting Lender grants such consent) to replace such
Non-Consenting Lender by requiring such Non-Consenting Lender to assign its Loans, and its
Commitments hereunder to one or more assignees reasonably acceptable to the Administrative Agent,
provided that: (a) all Obligations of Borrowers owing to such Non-Consenting Lender being
replaced shall be paid in full to such Non-Consenting Lender concurrently with such assignment, and
(b) the replacement Lender shall purchase the foregoing

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by paying to such Non-Consenting Lender a
price equal to the principal amount thereof plus accrued and unpaid interest thereon. In
connection with any such assignment each Borrower, Administrative Agent, such Non-Consenting Lender
and the replacement Lender shall otherwise comply with Section 9.04.

          SECTION 2.20. Additional Reserve Costs. (a) For so long as any Lender is required to
make special deposits with the Bank of England or comply with reserve assets, liquidity, cash
margin or other requirements of the Bank of England, to maintain reserve asset ratios or to pay
fees, in each case in respect of such Lender’s Eurocurrency Loans, each Borrower shall pay,
contemporaneously with each payment of interest on each of such Loans made to such Borrower,
additional interest on such Loan at a rate per annum equal to the Mandatory Costs Rate calculated
in accordance with the formula and in the manner set forth in Exhibit F hereto.

          (b) Any additional interest owed pursuant to paragraph (a) above shall be determined by the
applicable Lender, which determination shall be conclusive absent manifest error, and notified to
the applicable Borrower (with a copy to the Administrative Agent) at least five Business Days
before each date on which interest is payable for the applicable Loan, and such additional interest
so notified to such Borrower by such Lender shall be payable to the Administrative Agent for the
account of such Lender on each date on which interest is payable for such Loan.

          SECTION 2.21. Illegality. If any Lender reasonably determines that any change
in law has made it unlawful, or that
any Governmental Authority has asserted after the Closing Date that it is unlawful, for any Lender
or its applicable lending office to make or maintain any Eurocurrency Loans in Dollars or Euros or
any other Foreign Currency, then, on notice thereof by such Lender to any Borrower through the
Administrative Agent, any obligations of such Lender to make or continue Eurocurrency Loans in
Dollars or Euros or such other Foreign Currency, or to convert ABR Borrowings to Eurocurrency
Borrowings denominated in Dollars, as the case may be, shall be suspended until such Lender
notifies the Administrative Agent and such Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, such Borrower shall upon demand from
such Lender (with a copy to the Administrative Agent), if such Eurocurrency Borrowings are
denominated in Dollars, convert all such Eurocurrency Borrowings of such Lender made to such
Borrower to ABR Borrowings, and if such Eurocurrency Borrowings are denominated in a Foreign
Currency, exchange all such Eurocurrency Borrowings into the Equivalent thereof in Dollars and
convert such Borrowings to ABR Borrowings, in each case either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Borrowings to
such day, or immediately, if such Lender may not lawfully continue to maintain such Loans. Upon
any such prepayment or conversion, such Borrower shall also pay accrued interest on the amount so
prepaid or converted.

          SECTION 2.22. Additional Borrowers. Upon the execution and delivery by any Additional
Foreign Borrower acceptable to the Administrative Agent in its reasonable judgment of a supplement
to this Agreement, in substantially the form of Exhibit H hereto (a “Credit Agreement
Supplement”) with such changes and modifications thereto as may be required by the laws of any
applicable foreign jurisdiction, (i) such Person shall be referred to as a “Foreign

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Borrower” and
shall be and become a Foreign Borrower, and each reference in this Agreement to a “Foreign
Borrower” shall also mean and be a reference to such Foreign Borrower and each reference in any
other Loan Document to a “Foreign Borrower” or a “Loan Party” shall also mean and be a reference to
such Foreign Borrower, and (ii) such Person shall assume all of the Obligations of a Foreign
Borrower which is organized in the same jurisdiction as such Additional Foreign Borrower;
provided, however, that the Administrative Agent, the Lenders and the Issuing Banks
shall have received, at least five Business Days prior to the making of Loans to or issuance of
Letters of Credit for the account of any such additional Foreign Borrower, all documentation and
other information relating to such Foreign Borrower requested by them for purposes of ensuring
compliance with applicable “know your customer” and anti-money laundering rules and regulations,
including the U.S. Patriot Act.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          Each of the Borrowers represents and warrants to each of the Lenders with respect to itself
and each of its respective Subsidiaries that:

          SECTION 3.01. Organization; Powers. Except as set forth on Schedule 3.01,
each of the Borrowers and each of the Subsidiaries (a) is duly organized, validly existing and (if
applicable) in good standing under the laws of the jurisdiction of its organization except for such
failures to be in good standing which could not reasonably be expected to have a Material Adverse
Effect, (b) has all requisite power and authority to own its property and assets and to carry on
its business as now conducted, (c) is qualified to do business in each jurisdiction where such
qualification is required, except where the failure to so qualify could not reasonably be expected
to have a Material Adverse Effect, and (d) has the power and authority to execute, deliver and
perform its obligations under each of the Loan Documents and each other agreement or instrument
contemplated thereby to which it is or will be a party and, in the case of each Borrower, to borrow
and otherwise obtain credit hereunder.

          SECTION 3.02. Authorization. The execution, delivery and performance by each Borrower
and each of the Subsidiaries of each of the Loan Documents to which it is a party, and the
borrowings hereunder and the Transactions (a) have been duly authorized by all corporate,
stockholder, limited liability company or partnership action required to be obtained by each
Borrower and such Subsidiaries and (b) will not (i) violate (A) any provision of law, statute, rule
or regulation, or of the certificate or articles of incorporation or other constitutive documents
or by-laws of any Borrower or any such Subsidiary, (B) any applicable order of any court or any
rule, regulation or order of any Governmental Authority or (C) any provision of any indenture,
lease, agreement or other instrument to which any Borrower or any such Subsidiary is a party or by
which any of them or any of their respective property is or may be bound, (ii) be in conflict with,
result in a breach of or constitute (alone or with notice or lapse of time or both) a default
under, give rise to a right of or result in any cancellation or acceleration of any right or
obligation (including any payment) or to a loss of a material benefit under any such indenture,
lease, agreement or other instrument, where any such conflict, violation, breach or default
referred to in clause (i) or (ii) of this Section 3.02, could reasonably be expected to have,
individually or in the

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aggregate, a Material Adverse Effect, or (iii) result in the creation or
imposition of any Lien upon or with respect to any property or assets now owned or hereafter
acquired by any Borrower or any such Subsidiary, other than the Liens created by the Loan
Documents.

          SECTION 3.03. Enforceability. This Agreement has been duly executed and delivered by
each Borrower and constitutes, and each other Loan Document when executed and delivered by each
Loan Party that is party thereto will constitute, a legal, valid and binding obligation of such
Loan Party enforceable against each such Loan Party in accordance with its terms, subject to (i)
the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other
similar laws affecting creditors’ rights generally, (ii) general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied
covenants of good faith and fair dealing.

          SECTION 3.04. Governmental Approvals. No action, consent or
approval of, registration or filing with or any other action by any
Governmental Authority is or will be required in connection with the Transactions except for (a)
the filing of UCC financing statements, (b) filings with the United States Patent and Trademark
Office and the United States Copyright Office or, with respect to Intellectual Property which is
the subject of registration or application outside the United States, such applicable patent,
trademark or copyright office or other intellectual property authority, (c) recordation of the
Mortgages, (d) such consents, authorizations, filings or other actions that have either (i) been
made or obtained and are in full force and effect or (ii) are listed on Schedule 3.04, and
(e) such actions, consents and approvals the failure to be obtained or made which could not
reasonably be expected to have a Material Adverse Effect.

          SECTION 3.05. Financial Statements. (a) There has heretofore been furnished to the
Lenders:

     (i) The audited consolidated balance sheets as of December 31, 2006 and the related
audited combined statements of income and cash flows for the year ended December 31, 2006 of
the Borrowers, were prepared in accordance with GAAP consistently applied not only during
such periods but also as compared to the periods covered by the financial statements of the
Borrowers referred to in paragraph (ii) of this Section 3.05(a) (except as may be indicated
in the notes thereto) and fairly present the consolidated financial position of the
Borrowers as of the dates thereof and its consolidated results of operations and cash flows
for the period then ended; and

     (ii) The unaudited interim consolidated balance sheet as of June 30, 2007, and the
related unaudited interim combined statements of income and cash flows for the six months
ended June 30, 2007 of the Borrowers , were prepared in accordance with GAAP consistently
applied not only during such periods but also as compared to the periods covered by the
financial statements of the Borrowers referred to in paragraph (i) of this Section 3.05
(except as may be indicated in the notes thereto) and fairly present the consolidated
financial position of the Borrowers as of the dates thereof and its consolidated results of
operations and cash flows for the periods then ended (subject to normal year-end
adjustments).

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          SECTION 3.06. No Material Adverse Effect. Since December 31, 2006, there has been no
event or occurrence which has resulted in or would reasonably be expected to result in,
individually or in the aggregate, any Material Adverse Effect.

          SECTION 3.07. Title to Properties; Possession Under Leases. (a) Each of the
Borrowers and the Subsidiaries has good and valid record fee simple title to, all Mortgaged
Properties, subject solely to Permitted Encumbrances and except where the failure to have such
title could not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect. The Borrowers and the other Subsidiaries have maintained, in all material respects
and in accordance with normal industry practice, all of the machinery, equipment, vehicles,
facilities and other tangible personal property now owned or
leased by the Borrowers and the other Subsidiaries that is necessary to conduct their business
as it is now conducted. All such Mortgaged Properties are free and clear of Liens, other than
Liens expressly permitted by Section 6.02 or arising by operation of law.

          (b) Each of the Borrowers and the Subsidiaries has complied with all obligations under all
leases to which it is a party, except where the failure to comply would not have a Material Adverse
Effect, and all such leases are in full force and effect, except leases in respect of which the
failure to be in full force and effect could not reasonably be expected to have a Material Adverse
Effect. Each of the Borrowers and the Subsidiaries enjoys peaceful and undisturbed possession
under all such leases, other than leases in respect of which the failure to enjoy peaceful and
undisturbed possession could not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect.

          (c) As of the Closing Date, the Borrowers and the Subsidiaries have good title to or valid
leasehold interests in all real property set forth on Schedule 3.17, and all such real
property is reasonably necessary for the conduct of the business and operations of Borrower and the
Subsidiaries as currently conducted.

          (d) Each of the Borrowers and the Subsidiaries owns or possesses, or could obtain ownership or
possession of, on terms not materially adverse to it, all patents, trademarks, service marks, trade
names, copyrights, licenses and rights with respect thereto necessary for the present conduct of
its business, without any known conflict with the rights of others, and free from any burdensome
restrictions, except where such conflicts and restrictions could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

          (e) As of the Closing Date, none of the Borrowers and their Subsidiaries has received any
notice of any pending or contemplated condemnation proceeding affecting any of the Mortgaged
Properties or any sale or disposition thereof in lieu of condemnation that remains unresolved as of
the Closing Date, except as set forth on Schedule 3.07(e).

          (f) None of the Borrowers and their Subsidiaries is obligated on the Closing Date under any
right of first refusal, option or other contractual right to sell, assign or otherwise dispose of
any Mortgaged Property or any interest therein, except as permitted under Section 6.02 or 6.05.

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          (g) Schedule 3.07(g) sets forth as of the Closing Date the name and jurisdiction of
incorporation, formation or organization of each Subsidiary of the Domestic Borrower and, as to
each such Subsidiary, the percentage of each class of Equity Interests owned by the Domestic
Borrower or by any such Subsidiary, indicating the ownership thereof.

          (h) As of the Closing Date, there are no outstanding subscriptions, options, warrants, calls,
rights or other agreements or commitments (other than stock options granted to employees or
directors and directors’ qualifying shares) of any nature relating to any Equity Interests of the
Domestic Borrower, or any of the Subsidiaries, except rights of employees to purchase Equity
Interests of the Domestic Borrower in connection with the Transactions or as set forth on
Schedule 3.07(h).

          SECTION 3.08. Litigation; Compliance with Laws. (a) Except as set forth on
Schedule 3.08(a), there are no actions, suits,
investigations or proceedings at law or in equity or by or on behalf of any Governmental Authority
or in arbitration now pending against, or, to the knowledge of the Borrowers, threatened in writing
against or affecting, any Borrower or any of the Subsidiaries or any business, property or rights
of any such Person (i) as of the Closing Date, that involve any Loan Document or the Transactions
or (ii) which individually could reasonably be expected to have a Material Adverse Effect or which
could reasonably be expected, individually or in the aggregate, to materially adversely affect the
Transactions. Neither the Borrowers nor, to the knowledge of any of the Loan Parties, any of its
Affiliates is in violation of any laws relating to terrorism or money laundering, including
Executive Order No. 13224 on Terrorist Financing, effective September 23, 2001, and the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, Public Law 107-56 (signed into law on October 26, 2001) (the “U.S. Patriot
Act”).

          (b) Except as set forth in Schedule 3.08(b), none of the Borrowers, the Subsidiaries
and their respective properties or assets is in violation of (nor will the continued operation of
their material properties and assets as currently conducted violate) any currently applicable law,
rule or regulation (including any zoning, building, Environmental Law, ordinance, code or approval
or any building permit) or any restriction of record or agreement affecting any Mortgaged Property,
or is in default with respect to any judgment, writ, injunction or decree of any Governmental
Authority, where such violation or default could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.

          SECTION 3.09. Federal Reserve Regulations. (a) None of the Borrowers and the
Subsidiaries is engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying Margin Stock.

          (b) No part of the proceeds of any Loan will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, (i) to purchase or carry Margin Stock or to extend
credit to others for the purpose of purchasing or carrying Margin Stock or to refund indebtedness
originally incurred for such purpose, or (ii) for any purpose that entails a violation of, or that
is inconsistent with, the provisions of the Regulations of the Board, including Regulation U or
Regulation X.

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          SECTION 3.10. Investment Company Act. None of the Borrowers or any Subsidiary is an
“investment company” as defined in, or subject to regulation under, the Investment Company Act of
1940, as amended.

          SECTION 3.11. Use of Proceeds. The Borrowers will use the proceeds of the Revolving
Facility Loans and Swingline Loans, and may request the issuance of Letters of Credit, solely for
general corporate purposes.

          SECTION 3.12. Tax Returns. Except as set forth on Schedule 3.12:

          (a) Each of the Borrowers and their Subsidiaries (i) has timely filed or caused to be timely
filed all federal, state, local and non-U.S. Tax returns required to have been filed by it that are
material to such companies taken as a whole and each such Tax return is true and correct in all
material respects and (ii) has timely paid or caused to be timely paid all material Taxes shown
thereon to be due and payable by it and all other material Taxes or assessments, except Taxes or
assessments that are being contested in good faith by appropriate proceedings in accordance with
Section 5.03 and for which the Borrowers or any of their Subsidiaries (as the case may be) has set
aside on its books adequate reserves;

          (b) Each of the Borrowers and their Subsidiaries has paid in full or made adequate provision
(in accordance with GAAP) for the payment of all Taxes due with respect to all periods or portions
thereof ending on or before the Closing Date, which Taxes, if not paid or adequately provided for,
could individually or in the aggregate reasonably be expected to have a Material Adverse Effect;
and

          (c) Other than as could not be, individually or in the aggregate, reasonably expected to have
a Material Adverse Effect: as of the Closing Date, with respect to each of the Borrowers and their
Subsidiaries, (i) there are no claims being asserted in writing with respect to any Taxes, (ii) no
presently effective waivers or extensions of statutes of limitation with respect to Taxes have been
given or requested and (iii) no Tax returns are being examined by, and no written notification of
intention to examine has been received from, the Internal Revenue Service or any other Taxing
authority.

          SECTION 3.13. No Material Misstatements. (a) All written information (other than the
Projections, estimates and information of a general economic nature) (the “Information”)
concerning the Borrowers, their Subsidiaries, the Transactions and any other transactions
contemplated hereby included in the Information Memorandum or otherwise prepared by or on behalf of
the foregoing or their representatives and made available to any Lenders or the Administrative
Agent in connection with the Transactions or the other transactions contemplated hereby, when taken
as a whole, were true and correct in all material respects, as of the date such Information was
furnished to the Lenders and as of the Closing Date and did not contain any untrue statement of a
material fact as of any such date or omit to state a material fact necessary in order to make the
statements contained therein not materially misleading in light of the circumstances under which
such statements were made.

          (b) The Projections and estimates and information of a general economic nature prepared by or
on behalf of the Borrowers or any of their representatives and that have

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been made available to any
Lenders or the Administrative Agent in connection with the Transactions or the other transactions
contemplated hereby (i) have been prepared in good faith based upon assumptions believed by the
Borrowers to be reasonable as of the date thereof, as of the date such Projections and estimates
were furnished to the Initial Lenders and as of the Closing Date, and (ii) as of the Closing Date,
have not been modified in any material respect by any Borrower.

          SECTION 3.14. Employee Benefit Plans. (a) Each of the Borrowers, the Subsidiaries and
the ERISA Affiliates is in compliance with the applicable provisions of ERISA and the provisions of
the Code relating to Plans (and the regulations and published interpretations thereunder), except
for such noncompliance that could not reasonably be expected to have a Material Adverse Effect. As
of the Closing Date, the excess of the present value of all benefit liabilities under each Plan of
the Borrowers, and each Subsidiary and the ERISA Affiliates (based on those assumptions used to
fund such Plan), as of the last annual valuation date applicable thereto for which a valuation is
available, over the value of the assets of such Plan could not reasonably be expected to have a
Material Adverse Effect, and the excess of the present value of all benefit liabilities of all
underfunded Plans (based on those assumptions used to fund each such Plan) as of the last annual
valuation dates applicable thereto for which valuations are available, over the value of the assets
of all such under funded Plans could not reasonably be expected to have a Material Adverse Effect.
No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all
other ERISA Events which have occurred or for which liability is reasonably expected to occur,
could reasonably be expected to result in a Material Adverse Effect.

          (b) All foreign pension schemes operated by the Domestic Borrower and each of its Subsidiaries
is operated in accordance with the requirements of applicable foreign law, except where
noncompliance could not reasonably be expected to have a Material Adverse Effect.

          SECTION 3.15. Environmental Matters. Except as to matters that could not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect (i) no written
notice, request for information, order, complaint, Environmental Claim or penalty has been received
by any Borrower or any of the Subsidiaries, and there are no judicial, administrative or other
actions, suits or proceedings pending or threatened against any Borrower or any of the Subsidiaries
which allege a violation of or liability under any Environmental Laws, in each case relating to any
Borrower or any of its Subsidiaries, (ii) each of the Borrowers and the other Subsidiaries has all
environmental, health and safety permits necessary for its operations as currently conducted to
comply with all applicable Environmental Laws and is, and has been, in compliance with the terms of
such permits and with all other applicable Environmental Laws except for non-compliances which have
been resolved and the costs of such resolution have been paid, (iii) the Borrowers and the other
Subsidiaries have made available to the Administrative Agent prior to the date hereof the most
recent environmental assessment with respect to the operations of each of the Borrowers and the
Subsidiaries, (iv) to the knowledge of the Domestic Borrower and the Subsidiaries, no Hazardous
Material is located at any property currently owned, operated or leased by any Borrower or any of
the other Subsidiaries that would reasonably be expected to give rise to any liability or
Environmental Claim of any Borrower or any of its Subsidiaries under any Environmental Laws, and no
Hazardous Material has been

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generated, owned or controlled by any Borrower or any of the other
Subsidiaries and transported to or Released at any location in a manner that would reasonably be
expected to give rise to any liability or Environmental Claim of any Borrower or any of its
Subsidiaries under any Environmental Laws, (v) to the knowledge of
the Domestic Borrower and the Subsidiaries, there are no acquisition agreements pursuant to
which any Borrower or any of its Subsidiaries has expressly assumed or undertaken responsibility
for any liability or obligation of any other Person arising under or relating to Environmental
Laws, which in any such case has not been made available to the Administrative Agent prior to the
date hereof, (vi) to the knowledge of the Domestic Borrower and the Subsidiaries, there are no
landfills or disposal areas located at, on, in or under the assets of the Domestic Borrower or any
Subsidiary, and (vii) to the knowledge of the Domestic Borrower and the Subsidiaries, except as
listed on Schedule 3.15(vii), there are not currently and there have not been any
underground storage tanks “owned” or “operated” (as defined by applicable Environmental Law) by any
Domestic Borrower, Borrower or any Subsidiary or present or located on the Domestic Borrower’s, any
Borrower’s or any Subsidiary’s Real Property. For purpose of Section 7.01(a), each of the
representations and warranties contained in parts (iv), (v), (vi) and (vii) of this Section 3.15
that are qualified by the knowledge of the Domestic Borrower and the Subsidiaries shall be deemed
not to be so qualified.

          SECTION 3.16. Mortgages. The Mortgages executed and delivered after the Closing Date
pursuant to clause (i) of the Collateral and Guarantee Requirement and Section 5.10 shall be
effective to create in favor of the Collateral Agent (for the benefit of the Secured Parties) a
legal, valid and enforceable security interest on all of the Loan Parties’ right, title and
interest in and to the Mortgaged Property thereunder and the proceeds thereof, and when such
Mortgages are filed or recorded in the proper real estate filing or recording offices, the
Collateral Agent (for the benefit of the Secured Parties) shall have a fully perfected first
priority Lien on, and security interest in, all right, title and interest of the Loan Parties in
such Mortgaged Property and, to the extent applicable, subject to Section 9-315 of the UCC, the
proceeds thereof, in each case prior and superior in right to any other Person, other than with
respect to Permitted Encumbrances.

          SECTION 3.17. Location of Real Property . (a) Schedule 3.17(a) lists
completely and correctly as of the Closing Date each Real Property owned by the Borrowers and the
Subsidiary Loan Parties, the address or location thereof and the state in which such property is
located.

          (b) Schedule 3.17(b) lists completely and correctly as of the Closing Date each Real
Property leased by the Borrowers and the Subsidiary Loan Parties, the address or location thereof.

          SECTION 3.18. Solvency. (a) Immediately after giving effect to the Transactions (i)
the fair value of the assets of each Borrower (individually) and the Domestic Borrower and its
Subsidiaries on a consolidated basis, at a fair valuation, will exceed the debts and liabilities,
direct, subordinated, contingent or otherwise, of such Borrower (individually) and the Domestic
Borrower and its Subsidiaries on a consolidated basis, respectively; (ii) the present fair saleable
value of the property of each Borrower (individually) and the Domestic Borrower and its
Subsidiaries on a consolidated basis will be greater than the amount that will be required

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to pay
the probable
liability of such Borrower (individually) and the Domestic Borrower and its Subsidiaries on a
consolidated basis, respectively, on their debts and other liabilities, direct, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii)
each Borrower (individually) and the Domestic Borrower and its Subsidiaries on a consolidated basis
will be able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured; and (iv) each Borrower (individually) and
the Domestic Borrower and its Subsidiaries on a consolidated basis will not have unreasonably small
capital with which to conduct the businesses in which they are engaged as such businesses are now
conducted and are proposed to be conducted following the Closing Date.

          (b) None of the Domestic Borrower or the Borrowers intends to, or believes that it or any of
its Subsidiaries will, incur debts beyond its ability to pay such debts as they mature, taking into
account the timing and amounts of cash to be received by it or any such subsidiary and the timing
and amounts of cash to be payable on or in respect of its Indebtedness or the Indebtedness of any
such subsidiary.

          SECTION 3.19. Labor Matters. There are no strikes pending or threatened against any
Borrower or any of its Subsidiaries that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. The hours worked and payments made to employees of the
Borrowers and their Subsidiaries have not been in violation in any material respect of the Fair
Labor Standards Act or any other applicable law dealing with such matters. All material payments
due from any Borrower or any of its Subsidiaries or for which any claim may be made against any
Borrower or any of its Subsidiaries, on account of wages and employee health and welfare insurance
and other benefits have been paid or accrued as a liability on the books of such Borrower or such
Subsidiary to the extent required by GAAP. Except as set forth on Schedule 3.19,
consummation of the Transactions will not give rise to a right of termination or right of
renegotiation on the part of any union under any collective bargaining agreement to which any
Borrower or any of its Subsidiaries (or any predecessor) is a party or by which any Borrower or any
of its Subsidiaries (or any predecessor) is bound, other than collective bargaining agreements
that, individually or in the aggregate, are not material to the Borrowers and their Subsidiaries,
taken as a whole.

          SECTION 3.20. Insurance. Schedule 3.20 sets forth a true, complete and
correct description of all material insurance maintained by or on behalf of the Borrowers or their
Subsidiaries as of the Closing Date. As of such date, such insurance is in full force and effect.
Each Borrower believes that the insurance maintained by or on behalf of such Borrower and its
Subsidiaries is adequate.

ARTICLE IV

CONDITIONS OF LENDING

          The obligations of (a) the Lenders (including the Swingline Lenders) to make Loans and (b) any
Issuing Bank to issue Letters of Credit or increase the stated amounts of

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Letters of Credit
hereunder (each, a “Credit Event”) are subject to the satisfaction of the following
conditions:

          SECTION 4.01. All Credit Events. On the date of each Borrowing and on the date of
each issuance, amendment, extension or renewal of a Letter of Credit:

          (a) The Administrative Agent shall have received, in the case of a Borrowing, a Borrowing
Request as required by Section 2.03 (or a Borrowing Request shall have been deemed given in
accordance with the last paragraph of Section 2.03) or, in the case of the issuance of a Letter of
Credit, the applicable Issuing Bank and the Administrative Agent shall have received a notice
requesting the issuance of such Letter of Credit as required by Section 2.05(b).

          (b) The representations and warranties set forth in Article III hereof shall be true and
correct in all material respects on and as of the date of such Borrowing or issuance, amendment,
extension or renewal of a Letter of Credit (other than an amendment, extension or renewal of a
Letter of Credit without any increase in the stated amount of such Letter of Credit), as
applicable, with the same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date (in which case such
representations and warranties shall be true and correct in all material respects as of such
earlier date).

          (c) At the time of and immediately after such Borrowing or issuance, amendment, extension or
renewal of a Letter of Credit (other than an amendment, extension or renewal of a Letter of Credit
without any increase in the stated amount of such Letter of Credit), as applicable, no Event of
Default or Default shall have occurred and be continuing.

          Each Borrowing and each issuance, amendment, extension or renewal of a Letter of Credit (other
than an amendment, extension or renewal of a Letter of Credit without any increase in the stated
amount of such Letter of Credit) made by any Borrower shall be deemed to constitute a
representation and warranty by such Borrower on the date of such Borrowing, issuance, amendment,
extension or renewal as applicable, as to the matters specified in paragraphs (b) and (c) of this
Section 4.01.

          SECTION 4.02. First Credit Event. On the Closing Date:

          (a) The Administrative Agent (or its counsel) shall have received from each party hereto
either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy transmission of a
signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement.

          (b) The Administrative Agent shall have received, on behalf of itself, the Collateral Agent,
the Lenders and each Issuing Bank on the Closing Date, favorable written opinions of (i) Gibson,
Dunn & Crutcher LLP, counsel for the Loan Parties, in form and substance reasonably satisfactory to
the Administrative Agent (and each Loan Party hereby instructs its counsel to deliver such opinion)
and (ii) special counsel to the Administrative Agent in the United Kingdom, in each case (A) dated
the Closing Date, (B) addressed to each Issuing Bank on the Closing Date, the Administrative Agent,
the Collateral Agent and the Lenders and

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(C) in form and substance reasonably satisfactory to the
Administrative Agent and covering such other matters relating to the Loan Documents as the
Administrative Agent shall reasonably request.

          (c) All legal matters incident to this Agreement, the borrowings and extensions of credit
hereunder and the other Loan Documents shall be reasonably satisfactory to the Administrative
Agent, to the Lenders and to each Issuing Bank on the Closing Date.

          (d) The Administrative Agent shall have received in the case of each Loan Party each of the
items referred to in clauses (i), (ii), (iii) and (iv) below:

     (i) a copy of the certificate or articles of incorporation, partnership
agreement or limited liability agreement, including all amendments thereto, or other
relevant constitutional documents under applicable law of each Loan Party, (A) in
the case of a corporation, certified as of a recent date by the Secretary of State
(or other similar official) or, with respect to any Foreign Subsidiary, an officer
or director and a certificate as to the good standing (to the extent such concept or
a similar concept exists under the laws of such jurisdiction) of each such Loan
Party as of a recent date from such Secretary of State (or other similar official)
or (B) in the case of a partnership of or limited liability company, certified by
the Secretary or Assistant Secretary of each such Loan Party;

     (ii) a certificate of the Secretary or Assistant Secretary or similar officer
of each Loan Party other than the French Borrower, and in the case of the French
Borrower, a certificate of the President of the French Borrower, in each case dated
the Closing Date and certifying:

     (A) that attached thereto is a true and complete copy of the by-laws
(or partnership agreement, memorandum and articles of association, limited
liability company agreement or other equivalent governing documents) of such
Loan Party as in effect on the Closing Date and at all times since a date
prior to the date of the resolutions described in clause (B) below,

     (B) that attached thereto is a true and complete copy of resolutions
duly adopted by the Board of Directors (or equivalent governing body) of
such Loan Party (or its managing general partner or
managing member) authorizing the execution, delivery and performance of
the Loan Documents to which such Person is a party and, in the case of a
Borrower, the borrowings hereunder, and that such resolutions have not been
modified, rescinded or amended and are in full force and effect on the
Closing Date,

     (C) that the certificate or articles of incorporation, partnership
agreement or limited liability agreement of such Loan Party has not been
amended since the date of the last amendment thereto disclosed pursuant to
clause (i) above,

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     (D) as to the incumbency and specimen signature of each officer
executing any Loan Document or any other document delivered in connection
herewith on behalf of such Loan Party, and

     (E) as to the absence of any pending proceeding for the dissolution or
liquidation of such Loan Party or, to the knowledge of such Person,
threatening the existence of such Loan Party;

     (iii) a certificate of another officer or, with respect to the French Borrower,
a third party reasonably acceptable to the Administrative Agent as to the incumbency
and specimen signature of the Secretary or Assistant Secretary or director or
similar officer executing the certificate pursuant to clause (ii) above; and

     (iv) such other documents as the Administrative Agent may reasonably request
(including without limitation, tax identification numbers and addresses).

          (e) The Collateral and Guarantee Requirement with respect to items to be completed as of the
Closing Date shall have been satisfied.

          (f) The Lenders shall have received the financial statements referred to in Section 3.05.

          (g) After giving effect to the Transactions and the other transactions contemplated hereby,
the Borrowers and their Subsidiaries shall have outstanding no Indebtedness other than (i) the
Loans and other extensions of credit under this Agreement, (ii) the Senior Subordinated Notes and
(iii) other Indebtedness permitted pursuant to Section 6.01.

          (h) The Lenders shall have received a solvency certificate substantially in the form of
Exhibit G and signed by the chief financial officer or another Responsible Officer of the
Domestic Borrower confirming the solvency of each Borrower and its Subsidiaries on a consolidated
basis after giving effect to the Transactions.

          (i) There has not been any Material Adverse Effect, after giving effect to the Transactions,
taken as a whole, since December 31, 2006.

          (j) Except as set forth in Schedule 4.02(k), no provision of any applicable law or
regulation, and no judgment, injunction, order or decree shall prohibit the consummation of the
Transactions, and all material actions by or in respect of or material filings with any
Governmental Authority required to permit the consummation of the Transactions shall have been
taken, made or obtained, except for any such actions or filings the failure to take, make or obtain
would not be material to each Borrower and its Subsidiaries, taken as a whole.

          (k) The Agents shall have received all fees payable thereto or to any Lender on or prior to
the Closing Date and, to the extent invoiced, all other amounts due and payable pursuant to the
Loan Documents on or prior to the Closing Date, including, to the extent invoiced, reimbursement or
payment of all reasonable out-of-pocket expenses (including

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reasonable fees, charges and
disbursements of Shearman & Sterling LLP and local counsel) required to be reimbursed or paid by
the Loan Parties hereunder or under any Loan Document.

          (l) The representations and warranties set forth in Sections 3.02, 3.03 and 3.04 hereof shall
be true and correct in all material respects on and as of the Closing Date.

          (m) [Reserved].

          (n) The Administrative Agent shall have received a certificate signed by a Responsible Officer
of the Domestic Borrower as to the matters set forth in clauses (g), (i), (j), and (l) of this
Section 4.02.

          (o) The French Borrower shall have received a TEG letter substantially in the form of
Exhibit I from the Administrative Agent.

          SECTION 4.03. Conditions Precedent to the Initial Borrowing of Each Additional
Borrower. The obligation of any Lender to make an initial advance of any Loan to, or any
Issuing Bank to make an initial issuance of any Letter of Credit for the account of, each
Additional Foreign Borrower following its designation as a Borrower hereunder pursuant to Section
2.22, is subject to the following:

          (a) The Administrative Agent (or its counsel) shall have received a counterpart of the Credit
Agreement Supplement signed on behalf of such Borrower, in substantially the form of Exhibit
H hereto.

          (b) The Administrative Agent shall have received, on behalf of itself, the Collateral Agent,
the Lenders and each Issuing Bank, favorable legal opinions, dated as of the date of such initial
advance or issuance, relating to such Borrower and as otherwise described in Section 4.02(b).

          (c) The Administrative Agent shall have received each of the items referred to in clauses (i),
(ii), (iii) and (iv) of Section 4.02(d) with respect to such Borrower, each certified and dated as
of the date of such initial advance or issuance.

ARTICLE V

AFFIRMATIVE COVENANTS

          Each of the Borrowers covenants and agrees with each Lender that so long as this Agreement
shall remain in effect and until the commitments have been terminated and the principal of and
interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document
shall have been paid in full and all Letters of Credit have been canceled or have expired and all
amounts drawn thereunder have been reimbursed in full, unless the Required Lenders shall otherwise
consent in writing, each the Borrowers will, and will cause each of their Subsidiaries to:

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          SECTION 5.01. Existence; Businesses and Properties. (a) Do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal existence, except
as otherwise expressly permitted under Section 6.05, and except for the liquidation or dissolution
of Subsidiaries if the assets of such Subsidiaries to the extent they exceed estimated liabilities
are acquired by the Domestic Borrower or a Wholly Owned Subsidiary of the Domestic Borrower in such
liquidation or dissolution; provided that Subsidiaries that are Loan Parties may not be
liquidated into Subsidiaries that are not Loan Parties.

          (b) Do or cause to be done all things necessary to (i) obtain, preserve, renew, extend and
keep in full force and effect the permits, franchises, authorizations, patents, trademarks, service
marks, trade names, copyrights, licenses and rights with respect thereto necessary to the normal
conduct of its business, (ii) comply in all material respects with all material applicable laws,
rules, regulations (including any zoning, building, ordinance, code or approval or any building
permits or any restrictions of record or agreements affecting the Mortgaged Properties) and
judgments, writs, injunctions, decrees and orders of any Governmental Authority, whether now in
effect or hereafter enacted and (iii) at all times maintain and preserve all property necessary to
the normal conduct of its business and keep such property in good repair, working order and
condition and from time to time make, or cause to be made, all needful and proper repairs,
renewals, additions, improvements and replacements thereto necessary in order that the business
carried on in connection therewith, if any, may be properly conducted at all times (in each case
except as expressly permitted by this Agreement); in each case in this paragraph (b) except where
the failure would not reasonably be expected to have a Material Adverse Effect.

          SECTION 5.02. Insurance. (a) Keep its insurable properties insured at all times by
financially sound and reputable insurers in such amounts as shall be customary for similar
businesses and maintain such other reasonable insurance (including, to the extent consistent with
past practices, self-insurance), of such types, to such extent and against such risks, as is
customary with companies in the same or similar businesses and maintain such other insurance as may
be required by law or any other Loan Document.

          (b) Cause all such property and casualty insurance policies with respect to the Mortgaged
Properties located in the United States to be endorsed or otherwise amended to include a “standard”
or “New York” lender’s loss payable endorsement, in form and substance reasonably satisfactory to
the Administrative Agent and the Collateral Agent, which endorsement shall provide that, from and
after the Closing Date, if the insurance carrier shall have received written notice from the
Administrative Agent or the Collateral Agent of the occurrence of an Event of Default, the
insurance carrier shall pay all proceeds otherwise payable to any Borrower or the Loan Parties
under such policies directly to the Collateral Agent; cause all such policies to provide that
neither any Borrower, the Administrative Agent, the Collateral Agent nor any other party shall be a
coinsurer thereunder and to contain a “Replacement Cost Endorsement,” without any deduction for
depreciation, and such other provisions as the Administrative Agent or the Collateral Agent may
reasonably (in light of a Default or a material development in respect of the insured Mortgaged
Property) require from time to time to protect their interests; deliver original or certified
copies of all such policies or a certificate of an insurance broker to the Collateral Agent; cause
each such policy to provide that it shall not be canceled or not renewed upon less than 30 days’
prior written notice thereof by the insurer to the Administrative Agent

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and the Collateral Agent;
deliver to the Administrative Agent and the Collateral Agent, prior to the cancellation or
nonrenewal of any such policy of insurance, a copy of a renewal or replacement policy (or other
evidence of renewal of a policy previously delivered to the Administrative Agent and the Collateral
Agent), or insurance certificate with respect thereto, together with evidence satisfactory to the
Administrative Agent and the Collateral Agent of payment of the premium therefor.

          (c) If at any time the area in which the Premises (as defined in the Mortgages) are located is
designated a “flood hazard area” in any Flood Insurance Rate Map published by the Federal Emergency
Management Agency (or any successor agency), obtain flood insurance in such reasonable total amount
as the Administrative Agent or the Collateral Agent may from time to time reasonably require, and
otherwise to ensure compliance with the National Flood Insurance Program as set forth in the Flood
Disaster Protection Act of 1973, as it may be amended from time to time.

          (d) With respect to each Mortgaged Property located in the United States, carry and maintain
comprehensive general liability insurance including the “broad form CGL endorsement” (or equivalent
coverage) and coverage on an occurrence basis against claims made for personal injury (including
bodily injury, death and property damage) and umbrella liability insurance against any and all
claims, in each case in amounts and against such risks as are customarily maintained by companies
engaged in the same or similar industry operating in the same or similar locations naming the
Collateral Agent as an additional insured, on forms reasonably satisfactory to the Collateral
Agent.

          (e) Notify the Administrative Agent and the Collateral Agent promptly whenever any separate
insurance concurrent in form or contributing in the event of loss with that required to be
maintained under this Section 5.02 is taken out by any Borrower or any of its Subsidiaries; and
promptly deliver to the Administrative Agent and the Collateral Agent a duplicate original copy of
such policy or policies, or an insurance certificate with respect thereto.

          (f) In connection with the covenants set forth in this Section 5.02, it is understood and
agreed that:

     (i) none of the Agents, the Lenders, the Issuing Bank and their respective agents or
employees shall be liable for any loss or damage insured by the insurance policies required
to be maintained under this Section 5.02, it being understood that (A) each Borrower and the
other Loan Parties shall look solely to their insurance companies or any parties other than
the aforesaid parties for the recovery of such loss or damage and (B) such insurance
companies shall have no rights of subrogation against the Agents, the Lenders, any Issuing
Bank or their agents or employees. If, however, the insurance policies do not provide
waiver of subrogation rights against such parties, as required above, then each of the
Borrowers hereby agree, to the extent permitted by law, to waive, and to cause each of their
Subsidiaries to waive, its right of recovery, if any, against the Agents, the Lenders, any
Issuing Bank and their agents and employees; and

     (ii) the designation of any form, type or amount of insurance coverage by the
Administrative Agent, the Collateral Agent under this Section 5.02 shall in no event be

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deemed a representation, warranty or advice by the Administrative Agent, the Collateral
Agent or the Lenders that such insurance is adequate for the purposes of the business of the
Borrowers and their Subsidiaries or the protection of their properties.

          SECTION 5.03. Taxes. Pay and discharge promptly when due all material Taxes,
assessments and governmental charges or levies imposed upon it or upon its income or profits or in
respect of its property, before the same shall become delinquent or in default, as well as all
lawful claims for labor, materials and supplies or otherwise that, if unpaid, might give rise to a
Lien upon such properties or any part thereof; provided, however, that such payment
and discharge shall not be required with respect to any such Tax, assessment, charge, levy or claim
so long as (a) the validity or amount thereof shall be contested in good faith by appropriate
proceedings, and the affected Borrower or the affected Subsidiary, as applicable, shall have set
aside on its books reserves in accordance with GAAP with respect thereto or (b) the aggregate
amount of such Taxes, assessments, charges, levies or claims does not exceed U.S.$5 million.

          SECTION 5.04. Financial Statements, Reports, etc. Furnish to the Administrative Agent
(which will promptly furnish such information to the Lenders):

          (a) within 120 days after the end of the fiscal year ended December 31, 2007, and within 90
days (or such shorter period as the SEC shall specify for the filing of Annual Reports on Form
10-K) after the end of each subsequent fiscal year, a consolidated balance sheet and related
statements of operations, cash flows and owners’ equity showing the financial position of Domestic
Borrower and its Subsidiaries as of the close of such fiscal year and the consolidated results of
their operations during such year and setting forth in comparative form the corresponding figures
for the prior fiscal year, all audited by independent public accountants of recognized national
standing reasonably acceptable to the Administrative Agent and
accompanied by an opinion of such accountants (which shall not be qualified in any material
respect) to the effect that such consolidated financial statements fairly present, in all material
respects, the financial position and results of operations of Domestic Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP (it being understood that the delivery
by Domestic Borrower of Annual Reports on Form 10-K of Domestic Borrower and its consolidated
Subsidiaries shall satisfy the requirements of this Section 5.04(a) to the extent such Annual
Reports include the information specified herein).

          (b) within 45 days (or such shorter period as the SEC shall specify for the filing of
Quarterly Reports on Form 10-Q) after the end of each of the first three fiscal quarters of each
fiscal year, a consolidated balance sheet and related statements of operations and cash flows
showing the financial position of Domestic Borrower and its Subsidiaries as of the close of such
fiscal quarter and the consolidated results of their operations during such fiscal quarter and the
then-elapsed portion of the fiscal year and setting forth in comparative form the corresponding
figures for the corresponding periods of the prior fiscal year, all certified by a Financial
Officer of Domestic Borrower, on behalf of Domestic Borrower, as fairly presenting, in all material
respects, the financial position and results of operations of Domestic Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP (subject to normal year-end audit
adjustments and the absence of footnotes) (it being understood that the delivery by Domestic
Borrower of Quarterly Reports on Form 10-Q of Domestic Borrower and its

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consolidated Subsidiaries
shall satisfy the requirements of this Section 5.04(b) to the extent such Quarterly Reports include
the information specified herein);

          (c) (x) concurrently with any delivery of financial statements under (a) or (b) above, a
certificate of a Financial Officer of Domestic Borrower (i) certifying that no Event of Default or
Default has occurred or, if such an Event of Default or Default has occurred, specifying the nature
and extent thereof and any corrective action taken or proposed to be taken with respect thereto and
(ii) commencing with the fiscal period ending September 30, 2007 setting forth computations in
reasonable detail satisfactory to the Administrative Agent demonstrating compliance with the
covenants contained in Sections 6.10, 6.11 and 6.12 and (y) concurrently with any delivery of
financial statements under (a) above, a certificate of the accounting firm opining on or certifying
such statements stating whether they obtained knowledge during the course of their examination of
such statements of any Default or Event of Default (which certificate may be limited to accounting
matters and disclaims responsibility for legal interpretations);

          (d) promptly after the same become publicly available, copies of all periodic and other
publicly available reports, proxy statements and, to the extent requested by the Administrative
Agent, other materials filed by any Borrower or any of the Subsidiaries with the SEC or distributed
to its stockholders generally, as applicable;

          (e) if, as a result of any change in accounting principles and policies from those as in
effect on the Closing Date, the consolidated financial statements of Domestic Borrower and its
Subsidiaries delivered pursuant to paragraphs (a) or (b) above will differ in any material respect
from the consolidated financial statements that would have been delivered pursuant to such clauses
had no such change in accounting principles and policies been made, then, together with the first
delivery of financial statements pursuant to paragraph (a) and (b)
above following such change, a schedule prepared by a Financial Officer on behalf of Domestic
Borrower reconciling such changes to what the financial statements would have been without such
changes;

          (f) within 90 days after the beginning of each fiscal year, an operating and capital
expenditure budget, in form satisfactory to the Administrative Agent prepared by the Domestic
Borrower for each of the four fiscal quarters of such fiscal year prepared in reasonable detail, of
the Domestic Borrower and the Subsidiaries, accompanied by the statement of a Financial Officer of
the Domestic Borrower to the effect that, to the best of his knowledge, the budget is a reasonable
estimate for the period covered thereby;

          (g) annually, upon the reasonable request of the Administrative Agent, updated Perfection
Certificates (or, to the extent such request relates to specified information contained in the
Perfection Certificates, such information) reflecting all changes since the date of the information
most recently received pursuant to this paragraph (g) or Section 5.10(d);

          (h) promptly, a copy of all reports submitted to the Board of Directors (or any committee
thereof) of any Borrower or any Subsidiary in connection with any material interim or special audit
made by independent accountants of the books of any Borrower or any Subsidiary;

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          (i) promptly, from time to time, such other information regarding the operations, business
affairs and financial condition of any Borrower or any of the Subsidiaries, or compliance with the
terms of any Loan Document, or such consolidating financial statements, as in each case the
Administrative Agent may reasonably request (for itself or on behalf of any Lender); and

          (j) promptly upon request by the Administrative Agent, copies of: (i) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed with the Internal Revenue
Service with respect to a Plan; (ii) the most recent actuarial valuation report for any Plan; (iii)
all notices received from a Multiemployer Plan sponsor or a Plan sponsor or any governmental agency
concerning an ERISA Event; and (iv) such other documents or governmental reports or filings
relating to any Plan or Multiemployer Plan as the Administrative Agent shall reasonably request.

          SECTION 5.05. Litigation and Other Notices. Furnish to the Administrative Agent
written notice of the following promptly after any Responsible Officer of any Borrower obtains
actual knowledge thereof:

          (a) any Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) proposed to be taken with respect thereto;

          (b) the filing or commencement of, or any written threat or written notice of intention of any
Person to file or commence, any action, suit or proceeding, whether at law or in equity or by or
before any Governmental Authority or in arbitration, against any Borrower or any of the
Subsidiaries as to which an adverse determination is reasonably probable and which, if adversely
determined, could reasonably be expected to have a Material Adverse Effect;

          (c) any other development specific to any Borrower or any of the Subsidiaries that is not a
matter of general public knowledge and that has had, or could reasonably be expected to have, a
Material Adverse Effect; and

          (d) the occurrence of any ERISA Event, that together with all other ERISA Events that have
occurred, could reasonably be expected to have a Material Adverse Effect.

          SECTION 5.06. Compliance with Laws. Comply with all laws, rules, regulations and
orders of any Governmental Authority applicable to it or its property (owned or leased), except
where the failure to do so, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect; provided that this Section 5.06 shall not apply to
Environmental Laws, which are the subject of Section 5.09, or to laws related to Taxes, which are
the subject of Section 5.03.

          SECTION 5.07. Maintaining Records; Access to Properties and Inspections. Maintain all
financial records in accordance with GAAP and permit any Persons designated by the Administrative
Agent or, upon the occurrence and during the continuance of an Event of Default, any Lender to
visit and inspect the financial records and the properties of any Borrower or any of the
Subsidiaries at reasonable times, upon reasonable prior notice to such Borrower, and as often as
reasonably requested and to make extracts from and copies of such financial records, and permit any
Persons designated by the Agents or, upon the occurrence and during the

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continuance of an Event of
Default, any Lender upon reasonable prior notice to such Borrower to discuss the affairs, finances
and condition of such Borrower or any of the Subsidiaries with the officers thereof and independent
accountants therefor (subject to reasonable requirements of confidentiality, including requirements
imposed by law or by contract).

          SECTION 5.08. Use of Proceeds. Use the proceeds of the Loans and the issuance of
Letters of Credit solely for the purposes described in Section 3.11.

          SECTION 5.09. Compliance with Environmental Laws. Comply, and make commercially
reasonable efforts to cause all lessees and other Persons occupying its properties to comply, with
all Environmental Laws applicable to its operations and properties; and obtain and renew all
material authorizations and permits required pursuant to Environmental Law for its operations and
properties, in each case in accordance with Environmental Laws, except, in each case with respect
to this Section 5.09, to the extent the failure to do so could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

          SECTION 5.10. Further Assurances. (a) Execute any and all further documents,
financing statements, agreements and instruments, and take all such further actions (including the
filing and recording of financing statements, fixture filings, Mortgages and other documents and
recordings of Liens in stock
registries), that may be required under any applicable law, or that the Administrative Agent
may reasonably request, to cause the Collateral and Guarantee Requirement to be and remain
satisfied, all at the expense of the applicable Loan Parties and provide to the Administrative
Agent, from time to time upon reasonable request, evidence reasonably satisfactory to the
Administrative Agent as to the perfection and priority of the Liens created or intended to be
created by the Security Documents.

          (b) In the case of the Domestic Borrower, grant and cause each of the Domestic Subsidiary Loan
Parties to grant to the Collateral Agent security interests and Mortgages in such Material Real
Property located in the United States of the Domestic Borrower or such Domestic Subsidiary Loan
Party as are acquired after the Closing Date and satisfy the requirements of clause (i) of the
definition of Collateral and Guarantee Requirement (other than clause (iii)) with respect to such
Material Real Properties within ninety (90) days after the date such Material Real Property is
acquired. In the case of any Foreign Borrower, grant and cause each of its respective Foreign
Subsidiary Loan Parties to grant to the Collateral Agent security interests and Mortgages in such
Material Real Property of the Foreign Borrower or such Foreign Subsidiary Loan Party as are
acquired after the Closing Date to the extent and in the manner set forth in clause (j) of the
definition of Collateral and Guarantee Requirement with respect to such Material Real Properties
within ninety (90) days after the date such Material Real Property is acquired. With respect to
each of the items identified in this clause (b) that are required to be delivered within ninety
(90) days after the date the applicable Material Real Property is acquired, the Administrative
Agent, in each case, may (in its sole discretion) extend such date on two separate occasions by up
to 30 days on each such occasion.

          (c) If any additional direct or indirect Subsidiary of the Domestic Borrower becomes a
Material Subsidiary or a Subsidiary Loan Party after the Closing Date within five Business Days
after the date such Subsidiary becomes a Material Subsidiary or a Subsidiary Loan Party, notify the
Administrative Agent and the Lenders thereof and, within sixty (60)

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Business Days after the date
such Subsidiary becomes a Material Subsidiary or a Subsidiary Loan Party, cause the Collateral and
Guarantee Requirement to be satisfied with respect to such Subsidiary and with respect to any
Equity Interest in or Indebtedness of such Subsidiary owned by or on behalf of any Loan Party.

          (d) In the case of any Loan Party, (i) furnish to the Collateral Agent prompt written notice
of any change (A) in such Loan Party’s corporate or organization name, (B) in such Loan Party’s
identity or organizational structure or (C) in such Loan Party’s organizational identification
number; provided that no Loan Party shall effect or permit any such change unless all
filings have been made, or will have been made within any statutory period, under the UCC or
otherwise that are required in order for the Collateral Agent to continue at all times following
such change to have a valid, legal and perfected security interest in all the Collateral for the
benefit of the Secured Parties and (ii) promptly notify the Administrative Agent if any material
portion of the Collateral is damaged or destroyed.

          (e) The Collateral and Guarantee Requirement and the other provisions of this Section 5.10
need not be satisfied if such action would violate Section 9.23 hereof. In addition, the
Collateral and Guarantee Requirement and the other provisions of this Section 5.10 need not be
satisfied with respect to (i) any Equity Interests acquired after the Closing Date in accordance
with this Agreement if, and to the extent that, and for so long as (A) doing so would violate
applicable law or a contractual obligation binding on such Equity Interests, (B) such law or
obligation existed at the time of the acquisition thereof and was not created or made binding on
such Equity Interests in contemplation of or in connection with the acquisition of such Subsidiary
(provided that the foregoing clause (B) shall not apply in the case of a joint venture,
including a joint venture that is a Subsidiary) and (C) such violation of a contractual obligation
is not rendered invalid by the relevant provisions of the UCC , (ii) any assets acquired after the
Closing Date, to the extent that, and for so long as, taking such actions would violate a
contractual obligation binding on such assets that existed at the time of the acquisition thereof
and was not created or made binding on such assets in contemplation or in connection with the
acquisition of such assets (except in the case of assets acquired with Indebtedness permitted
pursuant to Section 6.01(i) that is secured by a Lien permitted pursuant to Section 6.02(i)) or
(iii) any Equity Interests in or any asset of a Foreign Subsidiary if the Domestic Borrower
demonstrates to the Collateral Agent and the Collateral Agent determines (in its reasonable
discretion) that the cost of the satisfaction of the Collateral and Guarantee Requirement of this
Section 5.10 with respect thereto exceeds the value of the security offered thereby;
provided that, upon the reasonable request of the Collateral Agent, the Domestic Borrower
shall, and shall cause any applicable Subsidiary to, use commercially reasonable efforts to have
waived or eliminated any contractual obligation of the types described in clauses (i) and (ii)
above, other than those set forth in a joint venture agreement to which the Domestic Borrower or
any Subsidiary is a party.

          SECTION 5.11. Fiscal Year. In the case of the Domestic Borrower and the Subsidiaries,
cause their fiscal year to end on December 31.

          SECTION 5.12. Proceeds of Certain Dispositions. If, as a result of the receipt of any
cash proceeds by any Borrower or any Subsidiary in connection with any sale, transfer, lease or
other disposition of any asset, including any Equity Interest, the Domestic Borrower would be

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required by the terms of the Senior Subordinated Note Indenture to make an offer to purchase any
Senior Subordinated Notes, as applicable, then, in the case of a Borrower or a Subsidiary, prior to
the first day on which the Domestic Borrower would be required to commence such an offer to
purchase, (i) prepay Loans in accordance with Section 2.11 or (ii) acquire assets, Equity Interests
or other securities in a manner that is permitted by Section 6.04 or Section 6.05, in each case in
a manner that will eliminate any such requirement to make such an offer to purchase.

          SECTION 5.13. Post-Closing Matters. Execute and deliver the documents and complete
the tasks set forth in the definition of “Collateral and Guarantee Requirement,” in each case
within the time periods specified therein (including any extension of such time periods permitted
by the Administrative Agent pursuant to paragraph (k) of the definition of “Collateral and
Guarantee Requirement”) and on Schedule 5.13; provided, however, that the
Administrative Agent may (in its sole
discretion) extend each of the dates set forth on Schedule 5.13 on two separate occasions by
up to thirty (30) days on each such occasion.

ARTICLE VI

NEGATIVE COVENANTS

          Each of the Borrowers covenants and agrees with each Lender that, so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the principal of and
interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document
have been paid in full and all Letters of Credit have been canceled or have expired and all amounts
drawn thereunder have been reimbursed in full, unless the Required Lenders shall otherwise consent
in writing, none of the Borrowers will, or will cause or permit any of the Subsidiaries to:

          SECTION 6.01. Indebtedness. Incur, create, assume or permit to exist any
Indebtedness, except:

          (a) Indebtedness existing on the Closing Date and set forth on Schedule 6.01 and any
Permitted Refinancing Indebtedness incurred to Refinance such Indebtedness (other than intercompany
Indebtedness Refinanced with Indebtedness owed to a Person not affiliated with the Domestic
Borrower or any Subsidiary);

          (b) Indebtedness created hereunder and under the other Loan Documents;

          (c) Indebtedness of the Domestic Borrower and the Subsidiaries pursuant to Swap Agreements
permitted by Section 6.13;

          (d) Indebtedness owed to (including obligations in respect of letters of credit or bank
guarantees or similar instruments for the benefit of) any Person providing workers’ compensation,
health, disability or other employee benefits or property, casualty or liability insurance to the
Domestic Borrower or any Subsidiary, pursuant to reimbursement or indemnification obligations to
such Person, provided that upon the incurrence of Indebtedness with respect to
reimbursement obligations regarding workers’ compensation claims, such obligations are reimbursed
not later than 30 days following such incurrence;

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          (e) Indebtedness of any Borrower or any Subsidiary to the extent permitted by Section 6.04,
provided that Indebtedness of any Loan Party to any Subsidiary that is not a Loan Party
(the “Subordinated Intercompany Debt”) shall be subordinated to the Obligations on terms
reasonably satisfactory to the Administrative Agent;

          (f) Indebtedness in respect of performance bonds, warranty bonds, bid bonds, appeal bonds,
surety bonds and completion or performance guarantees and similar obligations, in each case
provided in the ordinary course of business, including those incurred to secure health, safety and
environmental obligations in the ordinary course of business and Indebtedness arising out of
advances on exports, advances on imports, advances on trade receivables, customer
prepayments and similar transactions in the ordinary course of business and consistent with
past practice;

          (g) Indebtedness arising from the honoring by a bank or other financial institution of a
check, draft or similar instrument drawn against insufficient funds in the ordinary course of
business or other cash management services in the ordinary course of business, provided
that (x) such Indebtedness (other than credit or purchase cards) is extinguished within three
Business Days of its incurrence and (y) such Indebtedness in respect of credit or purchase cards is
extinguished within 60 days from its incurrence;

          (h) (i) Indebtedness of a Subsidiary acquired after the Closing Date or a Person merged into
or consolidated with a Borrower or any Subsidiary after the Closing Date and Indebtedness assumed
in connection with the acquisition of assets, which Indebtedness in each case, exists at the time
of such acquisition, merger or consolidation and is not created in contemplation of such event and
where such acquisition, merger or consolidation is permitted by this Agreement and (ii) any
Permitted Refinancing Indebtedness incurred to Refinance such Indebtedness, provided that
the aggregate principal amount of such Indebtedness at the time of, and after giving effect to,
such acquisition, merger or consolidation, such assumption or such incurrence, as applicable
(together with Indebtedness outstanding pursuant to this paragraph (h), paragraph (i) of this
Section 6.01 and the Remaining Present Value of outstanding leases permitted under Section 6.03),
would not exceed 3.75% of Consolidated Total Assets as of the end of the fiscal quarter immediately
prior to the date of such acquisition, merger or consolidation, such assumption or such incurrence,
as applicable, for which financial statements have been delivered pursuant to Section 5.04;

          (i) Capital Lease Obligations, mortgage financings and purchase money Indebtedness incurred by
the Domestic Borrower or any Subsidiary prior to or within 270 days after the acquisition, lease or
improvement of the respective asset permitted under this Agreement in order to finance such
acquisition or improvement, and any Permitted Refinancing Indebtedness in respect thereof, in an
aggregate principal amount that at the time of, and after giving effect to, the incurrence thereof
(together with Indebtedness outstanding pursuant to paragraph (h) of this Section 6.01, this
paragraph (i) and the Remaining Present Value of leases permitted under Section 6.03) would not
exceed 3.75% of Consolidated Total Assets as of the end of the fiscal quarter immediately prior to
the date of such incurrence for which financial statements have been delivered pursuant to Section
5.04;

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          (j) Capital Lease Obligations incurred by the Domestic Borrower or any Subsidiary in respect
of any Sale and Lease-Back Transaction that is permitted under Section 6.03;

          (k) other Indebtedness, in an aggregate principal amount at any time outstanding pursuant to
this paragraph (k) not in excess of U.S.$40.0 million;

          (l) Indebtedness of the Domestic Borrower pursuant to the Senior Subordinated Notes in an
aggregate principal amount that is not in excess of the sum of U.S.$420.0 million and any Permitted
Refinancing Indebtedness incurred to Refinance such Indebtedness in the form of Permitted
Subordinated Debt Securities;

          (m) Guarantees (i) by the Loan Parties of the Indebtedness of the Domestic Borrower described
in paragraph (l), (ii) by any Loan Party of any Indebtedness of any Borrower or any Loan Party
expressly permitted to be incurred under this Agreement, (iii) by any Borrower or any Subsidiary of
Indebtedness otherwise expressly permitted hereunder of any Borrower or any Subsidiary that is not
a Loan Party to the extent permitted by Section 6.04, (iv) by any Subsidiary that is not a Loan
Party of Indebtedness of another Subsidiary that is not a Loan Party; provided that all
Foreign Subsidiaries may guarantee obligations of other Foreign Subsidiaries under ordinary course
cash management obligations, and (v) by any Borrower of Indebtedness of Foreign Subsidiaries
incurred for working capital purposes in the ordinary course of business on ordinary business terms
so long as such Indebtedness is permitted to be incurred under 6.01(a), (k) or (s);
provided that Guarantees by any Loan Party under this Section 6.01(m) of any other
Indebtedness of a Person that is subordinated to other Indebtedness of such Person shall be
expressly subordinated to the Obligations on terms consistent with those used, or to be used, for
Subordinated Intercompany Debt;

          (n) Indebtedness arising from agreements of the Domestic Borrower or any Subsidiary providing
for indemnification, adjustment of purchase price, earn outs or similar obligations, in each case,
incurred or assumed in connection with the disposition of any business, assets or a Subsidiary,
other than Guarantees of Indebtedness incurred by any Person acquiring all or any portion of such
business, assets or a Subsidiary for the purpose of financing such acquisition;

          (o) Indebtedness in connection with Permitted Receivables Financings;

          (p) letters of credit or bank guarantees (other than Letters of Credit issued pursuant to
Section 2.05) having an aggregate face amount not in excess of U.S.$150 million;

          (q) Indebtedness supported by a Letter of Credit, in a principal amount not in excess of the
stated amount of such Letter of Credit;

          (r) Indebtedness of Foreign Subsidiaries (including letters of credit or bank guarantees
(other than Letters of Credit issued pursuant to Section 2.05)) for working capital purposes
incurred in the ordinary course of business on ordinary business terms in an aggregate amount not
to exceed U.S.$40.0 million outstanding at any time;

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          (s) Indebtedness of the Domestic Borrower or any of its Subsidiaries in respect of the
Management Notes in an aggregate amount not to exceed $20 million outstanding at any time;

          (t) all premium (if any), interest (including post-petition interest), fees, expenses, charges
and additional or contingent interest on obligations described in paragraphs (a) through (s) above;

          (x) other unsecured Indebtedness of the Domestic Borrower and its subsidiaries in an aggregate
amount not to exceed U.S.$100 million, if the Leverage Ratio is less than 3.50 to 1.00. For
purposes of determining whether Indebtedness is permitted to be incurred, created, assumed or exist
pursuant to this paragraph (x), the Leverage Ratio shall be measured at the time of the incurrence,
creation or assumption of such Indebtedness, after giving effect to the
incurrence thereof and the application of the proceeds of such Indebtedness, calculated on a
pro forma basis as of the last day of the most recently ended fiscal quarter in respect of which
financial statements have been delivered pursuant to Section 5.04.

          SECTION 6.02. Liens. Create, incur, assume or permit to exist any Lien on any
property or assets (including stock or other securities of any Person, including any Subsidiary) at
the time owned by it or on any income or revenues or rights in respect of any thereof, except:

          (a) Liens on property or assets of the Domestic Borrower and the Subsidiaries existing on the
Closing Date and set forth on Schedule 6.02(a); provided that such Liens shall
secure only those obligations that they secure on the Closing Date (and extensions, renewals and
refinancings of such obligations permitted by Section 6.01(a)) and shall not subsequently apply to
any other property or assets of the Domestic Borrower or any Subsidiary;

          (b) any Lien created under the Loan Documents or permitted in respect of any Mortgaged
Property by the terms of the applicable Mortgage;

          (c) any Lien on any property or asset of the Domestic Borrower or any Subsidiary securing
Indebtedness or Permitted Refinancing Indebtedness permitted by Section 6.01(h), provided
that (i) such Lien does not apply to any other property or assets of the Domestic Borrower or any
of the Subsidiaries not securing such Indebtedness at the date of the acquisition of such property
or asset (other than after-acquired property subjected to a Lien securing Indebtedness and other
obligations incurred prior to such date and which Indebtedness and other obligations are permitted
hereunder that require a pledge of after-acquired property, it being understood that such
requirement shall not be permitted to apply to any property to which such requirement would not
have applied but for such acquisition), (ii) such Lien is not created in contemplation of or in
connection with such acquisition and (iii) in the case of a Lien securing Permitted Refinancing
Indebtedness, such Lien is permitted in accordance with clause (e) of the definition of the term
“Permitted Refinancing Indebtedness”;

          (d) Liens for Taxes, assessments or other governmental charges or levies not yet delinquent or
that are being contested in compliance with Section 5.03;

          (e) Liens imposed by law (including, without limitation, Liens in favor of customers for
equipment under order or in respect of advances paid in connection therewith)

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such as landlord’s,
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, construction or other like Liens
arising in the ordinary course of business and securing obligations that are not overdue by more
than 60 days or that are being contested in good faith by appropriate proceedings and in respect of
which, if applicable, the Domestic Borrower or any Subsidiary shall have set aside on its books
reserves in accordance with GAAP;

          (f) (i) pledges and deposits made in the ordinary course of business in compliance with the
Federal Employers Liability Act or any other workers’ compensation, unemployment insurance and
other social security laws or regulations and deposits securing liability to insurance carriers
under insurance or self-insurance arrangements in respect of such obligations and (ii) pledges and
deposits securing liability for reimbursement or indemnification obligations
of (including obligations in respect of letters of credit or bank guarantees for the benefit
of) insurance carriers providing property, casualty or liability insurance to the Domestic Borrower
or any Subsidiary;

          (g) deposits to secure the performance of bids, trade contracts (other than for Indebtedness),
leases (other than Capital Lease Obligations), statutory obligations, surety and appeal bonds,
performance and return of money bonds, warranty bonds, bids, leases, government contracts, trade
contracts, completion or performance guarantees and other obligations of a like nature incurred in
the ordinary course of business, including those incurred to secure health, safety and
environmental obligations in the ordinary course of business;

          (h) zoning restrictions, easements, trackage rights, leases (other than Capital Lease
Obligations), licenses, special assessments, rights-of-way, restrictions on use of real property
and other similar encumbrances incurred in the ordinary course of business that do not render title
unmarketable and that, in the aggregate, do not interfere in any material respect with the ordinary
conduct of the business of the Domestic Borrower or any Subsidiary or would result in a Material
Adverse Effect;

          (i) purchase money security interests in equipment or other property or improvements thereto
hereafter acquired (or, in the case of improvements, constructed) by the Domestic Borrower or any
Subsidiary (including the interests of vendors and lessors under conditional sale and title
retention agreements); provided that (i) such security interests secure Indebtedness
permitted by Section 6.01(i) (including any Permitted Refinancing Indebtedness in respect thereof),
(ii) such security interests are incurred, and the Indebtedness secured thereby is created, within
270 days after such acquisition (or construction), (iii) the Indebtedness secured thereby does not
exceed 100% of the cost of such equipment or other property or improvements at the time of such
acquisition (or construction), including transaction costs incurred by the Domestic Borrower or any
Subsidiary in connection with such acquisition (or construction) and (iv) such security interests
do not apply to any other property or assets of the Domestic Borrower or any Subsidiary (other than
to accessions to such equipment or other property or improvements); provided
further that individual financings of equipment provided by a single lender may be
cross-collateralized to other financings of equipment provided solely by such lender;

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          (j) Liens arising out of capitalized lease transactions permitted under Section 6.03, so long
as such Liens attach only to the property sold and being leased in such transaction and any
accessions thereto or proceeds thereof and related property;

          (k) Liens securing judgments that do not constitute an Event of Default under Section 7.01(j);

          (l) other Liens with respect to property or assets of the Domestic Borrower or any Subsidiary
not constituting Collateral for the Obligations with an aggregate fair market value (valued at the
time of creation thereof) of not more than U.S.$40.0 million at any time;

          (m) Liens disclosed by the title insurance policies and any replacement, extension or renewal
of any such Lien; provided that such replacement, extension or renewal Lien shall not
cover any property other than the property that was subject to such Lien prior to such
replacement, extension or renewal; provided further that the Indebtedness and other
obligations secured by such replacement, extension or renewal Lien are permitted by this Agreement;

          (n) Liens in respect of Permitted Receivables Financings;

          (o) any interest or title of, or Liens created by, a lessor under any leases or subleases
entered into by the Domestic Borrower or any Subsidiary, as tenant, in the ordinary course of
business;

          (p) Liens that are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of Indebtedness, (ii)
relating to pooled deposit or sweep accounts of the Domestic Borrower or any Subsidiary to permit
satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the
Domestic Borrower and the Subsidiaries or (iii) relating to purchase orders and other agreements
entered into with customers of the Domestic Borrower or any Subsidiary in the ordinary course of
business;

          (q) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights;

          (r) Liens securing obligations in respect of trade-related letters of credit permitted under
Section 6.01(f) or (p) and covering the goods (or the documents of title in respect of such goods)
financed by such letters of credit and the proceeds and products thereof;

          (s) licenses of intellectual property granted in the ordinary course of business;

          (t) 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;

          (u) Liens on the assets of a Foreign Subsidiary that do not constitute Collateral and which
secure Indebtedness of such Foreign Subsidiary that is not otherwise secured by a Lien on the
Collateral under the Loan Documents and that is permitted to be incurred under Section 6.01(a) or
(k);

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          (v) Liens upon specific items of inventory or other goods and proceeds of the Domestic
Borrower or any of the Subsidiaries securing such Person’s obligations in respect of bankers’
acceptances issued or created for the account of such Person to facilitate the purchase, shipment
or storage of such inventory or other goods;

          (w) Liens solely on any cash earnest money deposits made by the Domestic Borrower or any of
the Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder;

          (x) Liens arising from precautionary Uniform Commercial Code financing statement filings
regarding operating leases entered into by the Domestic Borrower or any of the Subsidiaries in the
ordinary course of business;

          (y) Liens securing insurance premium financing arrangements in an aggregate principal amount
not to exceed 1% of Consolidated Total Assets, provided that such Lien is limited to the
applicable insurance contracts;

          (z) Liens on the assets of a Foreign Subsidiary which secure Indebtedness of such Foreign
Subsidiary that is permitted to be incurred under Section 6.01(p) or (r); provided,
however, that if such Liens are on assets that constitute Collateral, such Liens may be
pari passu with, but not prior to, the Liens granted in favor of the Collateral Agent under the
Collateral Agreements unless such Liens secure letters of credit or bank guarantees and such assets
constitute the rights of such Foreign Subsidiary under the contracts and agreements in respect of
which such Indebtedness was incurred; and

          (aa) Liens on inventory in favor of customers up to the amount of such customer’s progress
payments that are netted in determining the net inventory balance in accordance with GAAP.

          Notwithstanding the foregoing, no Liens shall be permitted to exist, directly or indirectly,
on (1) Pledged Collateral, other than Liens in favor of the Collateral Agent and Liens permitted by
Section 6.02(d), (e), (q) or (z), or (2) Mortgaged Property, in each case, other than Liens in
favor of the Collateral Agent, Prior Liens and Permitted Encumbrances.

          SECTION 6.03. Sale and Lease-Back Transactions. Enter into any arrangement, directly
or indirectly, with any Person whereby it shall sell or transfer any property, real or personal,
used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or
lease such property or other property that it intends to use for substantially the same purpose or
purposes as the property being sold or transferred (a “Sale and Lease-Back Transaction”),
provided that a Sale and Lease-Back Transaction shall be permitted so long as at the time
the lease in connection therewith is entered into, and after giving effect to the entering into of
such Lease, the Remaining Present Value of such lease (together with Indebtedness outstanding
pursuant to paragraphs (h) and (i) of Section 6.01 and the Remaining Present Value of outstanding
leases previously entered into under this Section 6.03) would not exceed 3.75% of Consolidated
Total Assets as of the end of the fiscal quarter immediately prior to the date such lease is
entered into for which financial statements have been delivered pursuant to Section 5.04.

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          SECTION 6.04. Investments, Loans and Advances. Purchase, hold or acquire (including
pursuant to any merger with a Person that is not a Wholly Owned Subsidiary immediately prior to
such merger) any Equity Interests, evidences of Indebtedness or other securities of, make or permit
to exist any loans or advances (other than intercompany current liabilities incurred in the
ordinary course of business in connection with the cash management operations of the Domestic
Borrower and the Subsidiaries) to or Guarantees of the obligations of, or make or permit to exist
any investment or any other interest in (each, an “Investment”), in any other Person,
except:

          (a) Investments (including, but not limited to, Investments in Equity Interests, intercompany
loans, and Guarantees of Indebtedness otherwise expressly permitted hereunder)
after the Closing Date by (i) Loan Parties in Subsidiaries that are not Loan Parties in an
aggregate amount (valued at the time of the making thereof and without giving effect to any
write-downs or write-offs thereof) not to exceed an amount equal to (x) U.S.$80.0 million
(plus any return of capital actually received by the respective investors in respect of
investments previously made by them pursuant to this paragraph (a)(i)), (ii) Domestic Loan Parties
in Foreign Loan Parties in an aggregate amount (valued at the time of the making thereof and
without giving effect to any write-downs or write-offs thereof) not to exceed (x) U.S.$100.0
million (plus any return of capital actually received by the respective investors in
respect of investments previously made by them pursuant to this paragraph (a)(ii)), (iii) Domestic
Loan Parties in other Domestic Loan Parties, (iv) Foreign Loan Parties in other Foreign Loan
Parties and (iv) Subsidiaries that are not Loan Parties in Loan Parties.

          (b) Permitted Investments and investments that were Permitted Investments when made;

          (c) Investments arising out of the receipt by the Domestic Borrower or any Subsidiary of
non-cash consideration for the sale of assets permitted under Section 6.05;

          (d) (i) loans and advances to employees of the Domestic Borrower or any Subsidiary in the
ordinary course of business not to exceed U.S.$2.5 million in the aggregate at any time outstanding
(calculated without regard to write-downs or write-offs thereof) and (ii) advances of payroll
payments and expenses to employees in the ordinary course of business;

          (e) accounts receivable arising and trade credit granted in the ordinary course of business
and any securities received in satisfaction or partial satisfaction thereof from financially
troubled account debtors to the extent reasonably necessary in order to prevent or limit loss and
any prepayments and other credits to suppliers made in the ordinary course of business;

          (f) Swap Agreements permitted pursuant to Section 6.13 and Capital Expenditures permitted
pursuant to Section 6.10;

          (g) Investments existing on the Closing Date and set forth on Part I of Schedule 6.04
and Investments set forth on Part II of Schedule 6.04;

          (h) Investments resulting from pledges and deposits referred to in Sections 6.02(f) and (g);

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          (i) other Investments by the Domestic Borrower or any Subsidiary in an aggregate amount
(valued at the time of the making thereof, and without giving effect to any write-downs or
write-offs thereof) not to exceed U.S.$25.0 million (plus any returns of capital actually
received by the respective investor in respect of investments theretofore made by it pursuant to
this paragraph (i));

          (j) Investments constituting Permitted Business Acquisitions;

          (k) additional Investments may be made from time to time to the extent made with proceeds of
Equity Interests of the Domestic Borrower, which proceeds or Investments in turn are contributed
(as common equity) to any Loan Party;

          (l) Investments (including, but not limited to, Investments in Equity Interests, intercompany
loans, and Guarantees of Indebtedness otherwise expressly permitted hereunder) after the Closing
Date by Subsidiaries that are not Loan Parties in any Loan Party or other Subsidiary.

          (m) Investments arising as a result of Permitted Receivables Financings;

          (n) the Transactions;

          (o) Investments received in connection with the bankruptcy or reorganization of, or settlement
of delinquent accounts and disputes with or judgments against, customers and suppliers, in each
case in the ordinary course of business;

          (p) Investments of a Subsidiary acquired after the Closing Date or of a corporation merged
into any Borrower or merged into or consolidated with a Subsidiary in accordance with Section 6.05
after the Closing Date to the extent that such Investments were not made in contemplation of or in
connection with such acquisition, merger or consolidation and were in existence on the date of such
acquisition, merger or consolidation;

          (q) Guarantees by the Domestic Borrower or any Subsidiary of operating leases (other than
Capital Lease Obligations) or of other obligations that do not constitute Indebtedness, in each
case entered into by any Subsidiary in the ordinary course of business; and

          (r) any Investment related to Multiphase Power and Processing Technologies, LLC and
Dresser-Rand and Enserv Services Sdn. Bnd. in accordance with the constitutive documents related
thereto and in an aggregate amount not to exceed U.S.$10 million.

          SECTION 6.05. Mergers, Consolidations, Sales of Assets and Acquisitions. Merge into
or consolidate with any other Person, or permit any other Person to merge into or consolidate with
it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of
transactions) all or any part of its assets (whether now owned or hereafter acquired), or issue,
sell, transfer or otherwise dispose of any Equity Interests of any Borrower or any Subsidiary or
preferred equity interests of the Domestic Borrower, or purchase, lease or otherwise acquire (in
one transaction or a series of transactions) all or any substantial part of the assets of any other
Person, except that this Section shall not prohibit:

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          (a) (i) the sale of inventory, supplies, materials and equipment and the purchase and sale of
contract rights or licenses or leases of intellectual property, in each case in the ordinary course
of business by the Domestic Borrower or any Subsidiary, (ii) the sale of any other asset in the
ordinary course of business by the Domestic Borrower or any Subsidiary, (iii) the sale of surplus,
obsolete or worn out equipment or other property in the ordinary course of business by the Domestic
Borrower or any Subsidiary or (iv) the sale of Permitted Investments in the ordinary course of
business;

          (b) if at the time thereof and immediately after giving effect thereto no Event of Default
shall have occurred and be continuing, (i) the merger of any Subsidiary into any Borrower in a
transaction in which such Borrower is the surviving corporation, (ii) the merger or
consolidation of any Subsidiary into or with any Loan Party in a transaction in which the
surviving or resulting entity is a Loan Party and, in the case of each of clauses (i) and (ii), no
Person other than such Borrower or a Loan Party receives any consideration, (iii) the merger or
consolidation of any Subsidiary that is not a Loan Party into or with any other Subsidiary that is
not a Loan Party or (iv) the liquidation or dissolution (other than the Borrowers) or change in
form of entity of the Domestic Borrower or any Subsidiary if the Domestic Borrower determines in
good faith that such liquidation or dissolution is in the best interests of the Domestic Borrower
and is not materially disadvantageous to the Lenders;

          (c) sales, transfers, leases or other dispositions to the Domestic Borrower or a Subsidiary
(upon voluntary liquidation or otherwise); provided that any sales, transfers, leases or
other dispositions by a Loan Party to a Subsidiary that is not a Loan Party shall be made in
compliance with Section 6.07; provided further that the aggregate gross proceeds of
any sales, transfers, leases or other dispositions by a Loan Party to a Subsidiary that is not a
Loan Party in reliance upon this paragraph (c) and the aggregate gross proceeds of any or all
assets sold, transferred or leased in reliance upon paragraph (h) below shall not exceed, in any
fiscal year of the Domestic Borrower, 3.75% of Consolidated Total Assets as of the end of the
immediately preceding fiscal year;

          (d) Sale and Lease-Back Transactions permitted by Section 6.03;

          (e) Investments permitted by Section 6.04, Liens permitted by Section 6.02 and Dividends
permitted by Section 6.06;

          (f) the purchase and sale or other transfer (including by capital contribution) of Receivables
Assets pursuant to Permitted Receivables Financings;

          (g) the sale of defaulted receivables in the ordinary course of business and not as part of an
accounts receivables financing transaction;

          (h) sales, transfers, leases or other dispositions of assets not otherwise permitted by this
Section 6.05; provided that the aggregate gross proceeds (including non-cash proceeds) of
any or all assets sold, transferred, leased or otherwise disposed of in reliance upon this
paragraph (h) and in reliance upon the second proviso to paragraph (c) above shall not exceed, in
any fiscal year of the Domestic Borrower, 3.75% of Consolidated Total Assets as of the end of the
immediately preceding fiscal year;

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          (i) any merger or consolidation in connection with a Permitted Business Acquisition,
provided that following any such merger or consolidation (i) involving any Borrower, such
Borrower is the surviving corporation, (ii) involving a domestic Subsidiary, the surviving or
resulting entity shall be a domestic Loan Party that is a Wholly Owned Subsidiary and (iii)
involving a Foreign Subsidiary, the surviving or resulting entity shall be a Foreign Subsidiary
Loan Party that is a Wholly Owned Subsidiary;

          (j) licensing and cross-licensing arrangements involving any technology or other intellectual
property of any Borrower or any Subsidiary in the ordinary course of business;

          (k) sales, leases or other dispositions of inventory of the Domestic Borrower and its
Subsidiaries determined by the management of any Borrower to be no longer useful or necessary in
the operation of the business of the Domestic Borrower or any of the Subsidiaries; and

          (l) any sale, transfer or other disposition of assets related to Multiphase Power and
Processing Technologies, LLC and Dresser-Rand and Enserv Services Sdn. Bnd. in accordance with the
constitutive documents related thereto and in an aggregate amount not to exceed U.S.$10 million.

          Notwithstanding anything to the contrary contained in Section 6.05 above, (i) the Domestic
Borrower shall at all times own, directly or indirectly, at least 85% of the Equity Interests of
each other Borrower, in each case, free and clear of any Liens other than the Liens created by the
Security Documents, (ii) no sale, transfer or other disposition of assets shall be permitted by
this Section 6.05 (other than sales, transfers, leases or other dispositions to Loan Parties
pursuant to paragraph (c) hereof and purchases, sales or transfers pursuant to paragraph (f)
hereof) unless such disposition is for fair market value, (iii) no sale, transfer or other
disposition of assets shall be permitted by paragraph (a), (d), (f) or (k) of this Section 6.05
unless such disposition is for at least 75% cash consideration and (vii) no sale, transfer or other
disposition of assets in excess of U.S.$10.0 million shall be permitted by paragraph (h) of this
Section 6.05 unless such disposition is for at least 75% cash consideration; provided that
for purposes of clauses (ii) and (iii), the amount of any secured Indebtedness or other
Indebtedness of a Subsidiary that is not a Loan Party (as shown on the Domestic Borrower’s or such
Subsidiary’s most recent balance sheet or in the notes thereto) of the Domestic Borrower or any
Subsidiary of the Domestic Borrower that is assumed by the transferee of any such assets shall be
deemed cash.

          SECTION 6.06. Dividends and Distributions. Declare or pay, directly or indirectly,
any dividend or make any other distribution (by reduction of capital or otherwise), whether in
cash, property, securities or a combination thereof, with respect to any of its Equity Interests
(other than dividends and distributions on Equity Interests payable solely by the issuance of
additional shares of Equity Interests of the Person paying such dividends or distributions) or
directly or indirectly redeem, purchase, retire or otherwise acquire for value (or permit any
Subsidiary to purchase or acquire) any shares of any class of its Equity Interests or set aside any
amount for any such purpose; provided, however, that:

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          (a) any Subsidiary of the Domestic Borrower may declare and pay dividends to, repurchase its
Equity Interests from or make other distributions to, the Domestic Borrower or to any Wholly Owned
Subsidiary of the Domestic Borrower (or, in the case of non-Wholly Owned Subsidiaries, to the
Domestic Borrower or any subsidiary that is a direct or indirect parent of such subsidiary and to
each other owner of Equity Interests of such subsidiary on a pro rata basis (or
more favorable basis from the perspective of the Domestic Borrower or such subsidiary) based on
their relative ownership interests);

          (b) [Reserved];

          (c) the Domestic Borrower and each Subsidiary may repurchase, redeem or otherwise acquire or
retire for value any Equity Interests of the Domestic Borrower or any Subsidiary held by any
current or former officer, director, consultant or employee of the Domestic Borrower or any
Subsidiary pursuant to any equity subscription agreement, stock option agreement, shareholders’ or
members’ agreement or similar agreement, plan or arrangement or any Plan and Subsidiaries may
declare and pay dividends to the Domestic Borrower or any other Subsidiary the proceeds of which
are used for such purposes, provided that the aggregate amount of such purchases or
redemptions under this paragraph (c) shall not exceed in any fiscal year U.S.$15.0 million (plus
the amount of net proceeds (x) received by the Domestic Borrower during such calendar year from
sales of Equity Interests of the Domestic Borrower to directors, consultants, officers or employees
of the Domestic Borrower or any Subsidiary in connection with permitted employee compensation and
incentive arrangements and (y) of any key-man life insurance policies recorded during such calendar
year) which, if not used in any year, may be carried forward to any subsequent calendar year

          (d) non-cash repurchases of Equity Interests deemed to occur upon exercise of stock options if
such Equity Interests represent a portion of the exercise price of such options;

          (e) so long as no Default or Event of Default shall have occurred and is continuing, the
Domestic Borrower may declare and pay dividends or make other distributions of up to 5% per
calendar year of the net cash proceeds received by the Domestic Borrower from any public offering
of the Equity Interests of the Domestic Borrower since October 29, 2004;

          (f) the Domestic Borrower may repurchase, redeem or otherwise acquire or retire for value any
Equity Interests of the Domestic Borrower, provided that the aggregate amount of such
repurchases or redemptions in any fiscal year shall not exceed fifty percent of the Net Income of
the Domestic Borrower for the immediately preceding Fiscal Year;

          (g) the Domestic Borrower may make distributions to its members of management that hold Equity
Interests of the Domestic Borrower in respect of such Equity Interests in an aggregate amount not
to exceed in any fiscal year, together with such amounts permitted under Section 6.06(h) for such
fiscal year, U.S.$3 million; and

          (h) Payments on Management Notes so long as such payments are in accordance with the
subordination provisions related thereto.

          SECTION 6.07. Transactions with Affiliates. (a) Sell or transfer any property or
assets to, or purchase or acquire any property or assets from, or otherwise engage in any other

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transaction with, any of its Affiliates, unless such transaction is (i) otherwise permitted (or
required) under this Agreement (including in connection with any Permitted Receivables Financing)
or (ii) upon terms no less favorable to the Domestic Borrower or such Subsidiary, as applicable,
than would be obtained in a comparable arm’s-length transaction with a Person that is not an
Affiliate; provided that this clause (ii) shall not apply to the indemnification of
directors of the Domestic Borrower and the Subsidiaries in accordance with customary practice.

          (b) The foregoing paragraph (a) shall not prohibit, to the extent otherwise permitted under
this Agreement,

     (i) any issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock options, stock
ownership plans and the granting and performance of registration rights approved by the
Board of Directors of the Domestic Borrower,

     (ii) transactions among the Borrowers and the Loan Parties and transactions among the
non-Loan Parties otherwise permitted by this Agreement,

     (iii) any indemnification agreement or any similar arrangement entered into with
directors, officers, consultants and employees of the Domestic Borrower and the Subsidiaries
in the ordinary course of business and the payment of fees and indemnities to directors,
officers, consultants and employees of the Domestic Borrower and the Subsidiaries in the
ordinary course of business,

     (iv) transactions pursuant to permitted agreements in existence on the Closing Date and
set forth on Schedule 6.07 or any amendment thereto to the extent such amendment is
not adverse to the Lenders in any material respect,

     (v) any employment agreement or employee benefit plan entered into by the Domestic
Borrower or any of the Subsidiaries in the ordinary course of business or consistent with
past practice and payments pursuant thereto,

     (vi) transactions otherwise permitted under Section 6.04 and Section 6.06,

     (vii) any contribution by the Domestic Borrower to, or purchase by the Domestic
Borrower of, the equity capital of any Borrower; provided that any Equity Interests
of any Borrower purchased by the Domestic Borrower shall be pledged to the Collateral Agent
on behalf of the Lenders pursuant to the applicable Collateral Agreement,

     (viii) payments by the Domestic Borrower or any of the Subsidiaries to the Funds or any
Fund Affiliate made for any financial advisory, financing, underwriting or placement
services or in respect of other investment banking activities, including in connection with
acquisitions or divestitures, which payments are approved by the majority of the board of
directors of the Domestic Borrower, in good faith,

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     (ix) transactions with any Affiliate for the purchase or sale of goods, products, parts
and services entered into in the ordinary course of business in a manner consistent with
past practice,

     (x) any transaction in respect of which the Domestic Borrower delivers to the
Administrative Agent (for delivery to the Lenders) a letter addressed to the Board of
Directors of the Domestic Borrower from an accounting, appraisal or investment banking firm,
in each case of nationally recognized standing that is (A) in the good faith determination
of the Domestic Borrower qualified to render such letter and (B)
reasonably satisfactory to the Administrative Agent, which letter states that such
transaction is on terms that are no less favorable to the Domestic Borrower or such
Subsidiary, as applicable, than would be obtained in a comparable arm’s-length transaction
with a Person that is not an Affiliate,

     (xi) transactions pursuant to any Permitted Receivables Financing,

     (xii) the issuance of Management Notes, and payments pursuant thereto, so long as such
payments are in accordance with the subordination provisions related thereto,

     (xiii) so long as not otherwise prohibited under this Agreement, guarantees of
performance by the Domestic Borrower or any Subsidiary of any other Subsidiary or the
Domestic Borrower that are not a Loan Party in the ordinary course of business, except for
guarantees of Indebtedness in respect of borrowed money; and

     (xiv) if such transaction is with a Person in its capacity as a holder (A) of
Indebtedness of the Domestic Borrower or any Subsidiary where such Person is treated no more
favorably than the other holders of Indebtedness of the Domestic Borrower or any Subsidiary
or (B) of Equity Interests of the Domestic Borrower or any Subsidiary where such Person is
treated no more favorably than the other holders of Equity Interests of the Domestic
Borrower or any Subsidiary.

          SECTION 6.08. Business of the Domestic Borrower and the Subsidiaries. Notwithstanding
any other provisions hereof, engage at any time in any business or business activity other than any
business or business activity conducted by it on the Closing Date and any business or business
activities incidental or related thereto, or any business or activity that is reasonably similar
thereto or a reasonable extension, development or expansion thereof or ancillary thereto.

          SECTION 6.09. Limitation on Modifications of Indebtedness; Modifications of Certificate of
Incorporation, By-Laws and Certain Other Agreements; etc. (a) Amend or modify in any manner
materially adverse to the Lenders, or grant any waiver or release under or terminate in any manner
(if such granting or termination shall be materially adverse to the Lenders), the articles or
certificate of incorporation or by-laws or partnership agreement or limited liability company
operating agreement of any Borrower or any of the Subsidiaries.

          (b) (i) Make, or agree or offer to pay or make, directly or indirectly, any payment or other
distribution (whether in cash, securities or other property) of or in respect of principal of

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or interest on the Senior Subordinated Notes or any Permitted Subordinated Debt Securities, or any
payment or other distribution (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of the Senior Subordinated Notes or any Permitted Subordinated Debt
Securities (except for Refinancings permitted by Section 6.01(l)), except for (A) payments of
regularly scheduled interest, (B) with respect to Permitted Subordinated Debt Securities,
payments made solely with the proceeds from the issuance of Equity Interests and (C) with
respect to the Senior Subordinated Notes, so long as no Default or Event of Default has occurred
and is continuing or would result therefrom, purchases and redemptions of Senior Subordinated
Notes, provided that, after giving effect to any such purchases and redemptions pursuant to
this clause (C), the Leverage Ratio shall be less than 3.0 to 1.00, calculated on a pro forma basis
as of the last day of the most recently ended fiscal quarter in respect of which financial
statements have been delivered pursuant to Section 5.04; or

     (ii) Amend or modify, or permit the amendment or modification of, any provision of any
Senior Subordinated Note or any Permitted Senior Debt Securities or Permitted Subordinated
Debt Securities, any Permitted Receivables Document or any agreement (including any Senior
Subordinated Notes Document or any document relating to any Permitted Senior Debt Securities
or Permitted Subordinated Debt Securities) relating thereto, other than amendments or
modifications that are not in any manner materially adverse to Lenders and that do not
affect the subordination provisions thereof (if any) in a manner adverse to the Lenders.

          (c) Permit any Subsidiary to enter into any agreement or instrument that by its terms
restricts (i) the payment of dividends or distributions or the making of cash advances by such
Subsidiary to the Domestic Borrower or any Subsidiary that is a direct or indirect parent of such
Subsidiary or (ii) the granting of Liens by such Subsidiary pursuant to the Security Documents, in
each case other than those arising under any Loan Document, except, in each case, restrictions
existing by reason of:

     (A) restrictions imposed by applicable law;

     (B) restrictions contained in any Permitted Receivables Document with respect to any
Special Purpose Receivables Subsidiary;

     (C) contractual encumbrances or restrictions in effect on the Closing Date under (x)
any Senior Subordinated Note Document or (y) any agreements related to any permitted
renewal, extension or refinancing of any Indebtedness existing on the Closing Date that does
not expand the scope of any such encumbrance or restriction;

     (D) restrictions imposed by any Permitted Senior Debt Securities that are substantially
similar to restrictions set forth in the Credit Agreement;

     (E) any restriction on a Subsidiary imposed pursuant to an agreement entered into for
the sale or disposition of all or substantially all the Equity Interests or assets of a
Subsidiary pending the closing of such sale or disposition;

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     (F) customary provisions in joint venture agreements and other similar agreements
applicable to joint ventures entered into in the ordinary course of business;

     (G) any restrictions imposed by any agreement relating to secured Indebtedness
permitted by this Agreement to the extent that such restrictions apply only to the property
or assets securing such Indebtedness;

     (H) customary provisions contained in leases or licenses of intellectual property and
other similar agreements entered into in the ordinary course of business;

     (I) customary provisions restricting subletting or assignment of any lease governing a
leasehold interest;

     (J) customary provisions restricting assignment of any agreement entered into in the
ordinary course of business;

     (K) customary restrictions and conditions contained in any agreement relating to the
sale of any asset permitted under Section 6.05 pending the consummation of such sale; or

     (L) any agreement in effect at the time such subsidiary becomes a Subsidiary, so long
as such agreement was not entered into in contemplation of such Person becoming a
Subsidiary.

          SECTION 6.10. Capital Expenditures. Permit the Domestic Borrower or its Subsidiaries
to make any Capital Expenditure, except that:

          (a) The Domestic Borrower and its Subsidiaries may make Capital Expenditures so long as during
any fiscal year the aggregate amount thereof does not exceed the amount set forth opposite such
fiscal year below:

	 	 	 	 	 
	Year	 	Amount
	2007
	 	$	50,000,000	 
	2008
	 	$	50,000,000	 
	2009
	 	$	50,000,000	 
	2010
	 	$	50,000,000	 
	2011
	 	$	50,000,000	 
	2012
	 	$	50,000,000	 

          (b) Notwithstanding anything to the contrary contained in paragraph (a) above, to the extent
that the aggregate amount of Capital Expenditures made by the Domestic Borrower and its
Subsidiaries in any fiscal year of the Domestic Borrower pursuant to Section 6.10(a) is less than
the amount set forth for such fiscal year, the amount of such difference may be carried forward and
used to make Capital Expenditures in the two succeeding fiscal years; provided that in any
fiscal year, the amount permitted to be applied to make Capital Expenditures pursuant to this
paragraph (b) shall in no event exceed an amount equal to 50% of the amount set forth in Section
6.10(a) for such fiscal year.

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          SECTION 6.11. Interest Coverage Ratio. Permit the ratio (the “Interest Coverage
Ratio”) on the last day of any fiscal quarter ending after the Closing Date, for the four
quarter period ended as of such day of (a) EBITDA to (b) Cash Interest Expense to be less than 3:00
to 1:00 for such period; provided that
to the extent any Asset Disposition or any Asset Acquisition (or any similar transaction or
transactions for which a waiver or a consent of the Required Lenders pursuant to Section 6.05 has
been obtained) or incurrence or repayment of Indebtedness (excluding normal fluctuations in
revolving Indebtedness incurred for working capital purposes) has occurred during the relevant Test
Period, the Interest Coverage Ratio shall be determined for the respective Test Period on a pro
forma Basis for such occurrences.

          SECTION 6.12. Leverage Ratio. Permit the Leverage Ratio on the last day of any fiscal
quarter ending after the Closing Date, to be in excess of 3:75 to 1:00.

          SECTION 6.13. Swap Agreements. Enter into any Swap Agreement, other than (a) Swap
Agreements required by Section 5.12 or any Permitted Receivables Financing, (b) Swap Agreements
entered into in the ordinary course of business to hedge or mitigate risks to which the Domestic
Borrower or any Subsidiary is exposed in the conduct of its business or the management of its
liabilities, and (c) Swap Agreements entered into in order to effectively cap, collar or exchange
interest rates (from fixed to floating rates, from one floating rate to another floating rate or
otherwise) with respect to any interest-bearing liability or investment of the Domestic Borrower or
any Subsidiary.

          SECTION 6.14. Designated Senior Debt. Designate any Indebtedness of any Borrower or
any of the Subsidiaries other than (i) the Obligations hereunder and (ii) Permitted Senior Debt
Securities as “Designated Senior Indebtedness” under, and as defined in, the Senior Subordinated
Notes Indenture.

ARTICLE VII

EVENTS OF DEFAULT

          SECTION 7.01. Events of Default. In case of the happening of any of the following
events (“Events of Default”):

          (a) any representation or warranty made or deemed made by any Borrower or any other Loan Party
in any Loan Document, or any representation, warranty, statement or information contained in any
report, certificate, financial statement or other instrument furnished in connection with or
pursuant to any Loan Document, shall prove to have been false or misleading in any material respect
when so made, deemed made or furnished by any Borrower or any other Loan Party;

          (b) default shall be made in the payment of any principal of any Loan or the reimbursement
with respect to any L/C Disbursement when and as the same shall become due and payable, whether at
the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or
otherwise;

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          (c) default shall be made in the payment of any interest on any Loan or on any L/C
Disbursement or in the payment of any Fee or any other amount (other than an amount referred to in
(b) above) due under any Loan Document, when and as the same shall become due and payable, and such
default shall continue unremedied for a period of five (5) Business Days;

          (d) default shall be made in the due observance or performance by any Borrower or any of the
Subsidiaries of any covenant, condition or agreement contained in Section 5.01(a) (with respect to
any Borrower), 5.05(a), 5.08, 5.10(c) or in Article VI;

          (e) default shall be made in the due observance or performance by any Borrower or any of the
Subsidiaries of any covenant, condition or agreement contained in any Loan Document (other than
those specified in paragraphs (b), (c) and (d) above) and such default shall continue unremedied
for a period of 30 days after notice thereof from the Administrative Agent or any Lender to any
Borrower;

          (f) (i) any event or condition occurs that (A) results in any Material Indebtedness becoming
due prior to its scheduled maturity or (B) enables or permits (with all applicable grace periods
having expired) the holder or holders of any Material Indebtedness or any trustee or agent on its
or their behalf to cause any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity or (ii) any Borrower
or any of the Subsidiaries shall fail to pay the principal of any Material Indebtedness at the
stated final maturity thereof; provided that this clause (f) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or
assets securing such Indebtedness if such sale or transfer is permitted hereunder and under the
documents providing for such Indebtedness;

          (g) there shall have occurred a Change in Control;

          (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed in
a court of competent jurisdiction seeking (i) relief in respect of any Borrower or any of the
Subsidiaries (other than a Borrower or Subsidiary incorporated in France), or of a substantial part
of the property or assets of any Borrower or any Subsidiary (other than a Borrower or Subsidiary
incorporated in France), under Title 11 of the United States Code, as now constituted or hereafter
amended, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar
law, (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for any Borrower or any of the Subsidiaries (other than a Borrower or Subsidiary
incorporated in France) or for a substantial part of the property or assets of any Borrower or any
of the Subsidiaries (other than a Borrower or Subsidiary incorporated in France) or (iii) the
winding-up or liquidation of any Borrower or any Subsidiary (other than a Borrower or Subsidiary
incorporated in France) (except, in the case of any Subsidiary (other than the Borrowers), in a
transaction permitted by Section 6.05); and such proceeding or petition shall continue undismissed
for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;

          (i) any Borrower or any Subsidiary (other than a Borrower or Subsidiary incorporated in
France) shall (i) voluntarily commence any proceeding or file any petition seeking relief under
Title 11 of the United States Code, as now constituted or hereafter amended,

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or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in paragraph (h) above, (iii) apply for, request
or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for any Borrower or any of the Subsidiaries (other than a Borrower or Subsidiary
incorporated in France) or for a substantial part of the property or assets of any Borrower or any
Subsidiary (other than a Borrower or Subsidiary incorporated in France), (iv) file an answer
admitting the material allegations of a petition filed against it in any such proceeding, (v) make
a general assignment for the benefit of creditors or (vi) become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

          (j) the failure by any Borrower or any Subsidiary to pay one or more final judgments
aggregating in excess of U.S.$20.0 million (net of any amounts which are covered by insurance or
bonded), which judgments are not discharged or effectively waived or stayed for a period of 30
consecutive days, or any action shall be legally taken by a judgment creditor to levy upon assets
or properties of any Borrower or any Subsidiary to enforce any such judgment;

          (k) one or more ERISA Events shall have occurred that, when taken together with all other
ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse
Effect;

          (l) any Borrower or any Subsidiary incorporated in France (a) stops or suspends or announces
an intention to stop or suspend payment of its debts or shall admit its inability to pay its debts
as they fall due or shall for the purpose of any applicable law be or be deemed to be unable to pay
its debts or shall otherwise be or be deemed to be insolvent for the purpose of any insolvency law
or to be in a state of cessation de paiements, (b) applies for the appointment of a mandataire ad
hoc, administrateur judiciaire, administrateur provisoire or liquidateur judiciaire (c) applies for
or is subject to the appointment of a conciliateur for a procédure de conciliation pursuant to
Articles L. 611-5 et seq. of the French Code de Commerce, (d) is the subject of a judgment for
redressement judiciaire, cession totale or partielle de l’entreprise or liquidation judiciaire
pursuant to Articles L. 631-1 et seq. of the French Code de Commerce or (e) is the subject, in any
jurisdiction other than France, of any procedure or step analogous to those set out as items (b),
(c) and (d) above;

          (m) (i) any Loan Document shall for any reason be asserted in writing by any Borrower or any
Subsidiary not to be a legal, valid and binding obligation of any party thereto, (ii) any security
interest purported to be created by any Security Document and to extend to Collateral that is not
immaterial to any Borrower and its Subsidiaries on a consolidated basis shall cease to be, or shall
be asserted in writing by any Borrower or any other Loan Party not to be, a valid and perfected
security interest (having the priority required by this Agreement or the relevant Security
Document) in the securities, assets or properties covered thereby, except to the extent that (x)
any such loss of perfection or priority results from the failure of the Collateral Agent to
maintain possession of certificates actually delivered to it representing securities pledged under
the Collateral Agreements or to file UCC continuation statements, (y) such loss is covered by a
lender’s title insurance policy and the Administrative Agent shall be reasonably satisfied with the
credit of such insurer or (z) any such loss of validity, perfection or priority is the result of
any failure by the Collateral Agent or the Administrative Agent to take any action

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necessary to secure the validity, perfection or priority of the liens, or (iii) the Guarantees
pursuant to the Security Documents by the Domestic Borrower or the Subsidiary Loan Parties of any
of the Obligations shall cease to be in full force and effect (other than in accordance with the
terms thereof), or shall be asserted in writing by any Borrower or any Subsidiary Loan Party not to
be in effect or not to be legal, valid and binding obligations;

then, and in every such event (other than an event with respect to any Borrower described in
paragraph (h), (i) or (l) above), and at any time thereafter during the continuance of such event,
the Administrative Agent, at the request of the Required Lenders, shall, by notice to the
Borrowers, take any or all of the following actions, at the same or different times: (i) terminate
forthwith the Commitments, (ii) declare the Loans then outstanding to be forthwith due and payable
in whole or in part, whereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the
Borrowers accrued hereunder and under any other Loan Document, shall become forthwith due and
payable, without presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by the Borrowers, anything contained herein or in any other Loan Document
to the contrary notwithstanding and (iii) demand cash collateral pursuant to Section 2.05(j); and
in any event with respect to the Borrowers described in paragraph (h), (i) or (l) above, the
Commitments shall automatically terminate, the principal of the Loans then outstanding, together
with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the
Borrowers accrued hereunder and under any other Loan Document, shall automatically become due and
payable and the Administrative Agent shall be deemed to have made a demand for cash collateral to
the full extent permitted under Section 2.05(j), without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived by the Borrowers, anything contained
herein or in any other Loan Document to the contrary notwithstanding.

          SECTION 7.02. Exclusion of Immaterial Subsidiaries. Solely for the purposes of
determining whether an Event of Default has occurred under clause (h), (i) or (l) of Section 7.01,
any reference in any such clause to any Subsidiary shall be deemed not to include any Subsidiary
affected by any event or circumstance referred to in any such clause that did not, as of the last
day of the fiscal quarter of the Domestic Borrower most recently ended, have assets with a value in
excess of 2.5% of the Consolidated Total Assets or 2.5% of total revenues of the Domestic Borrower
and its Subsidiaries as of such date; provided that if it is necessary to exclude more than
one Subsidiary from clause (h), (i) or (l) of Section 7.01 pursuant to this Section 7.02 in order
to avoid an Event of Default thereunder, all excluded Subsidiaries shall be considered to be a
single consolidated Subsidiary for purposes of determining whether the condition specified above is
satisfied.

ARTICLE VIII

THE AGENTS

          SECTION 8.01. Appointment . (a) In order to expedite the transactions contemplated by this Agreement, (i) Citicorp
North America, Inc. is hereby appointed to act as Administrative Agent and Collateral Agent and
(ii) each of JPMorgan Chase Bank, N.A. and

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UBS Securities LLC is hereby appointed to act as a
Co-Syndication Agent. Each of the Lenders and each assignee of any such Lender hereby irrevocably
authorizes the Administrative Agent to take such actions on behalf of such Lender or assignee and
to exercise such powers as are specifically delegated to the Administrative Agent by the terms and
provisions hereof and of the other Loan Documents, together with such actions and powers as are
reasonably incidental thereto. The Administrative Agent is hereby expressly authorized by the
Lenders and each Issuing Bank, without hereby limiting any implied authority, (a) to receive on
behalf of the Lenders and such Issuing Bank all payments of principal of and interest on the Loans,
all payments in respect of L/C Disbursements and all other amounts due to the Lenders and such
Issuing Bank hereunder, and promptly to distribute to each Lender or such Issuing Bank its proper
share of each payment so received; (b) to give notice on behalf of each of the Lenders of any Event
of Default specified in this Agreement of which the Administrative Agent has actual knowledge
acquired in connection with the performance of its duties as Administrative Agent hereunder; and
(c) to distribute to each Lender copies of all notices, financial statements and other materials
delivered by any Borrower pursuant to this Agreement as received by the Administrative Agent.
Without limiting the generality of the foregoing, the Collateral Agent is hereby expressly
authorized to execute any and all documents (including releases) with respect to the Collateral and
the rights of the Secured Parties with respect thereto, as contemplated by and in accordance with
the provisions of this Agreement and the Security Documents, and all rights and remedies in respect
of such Collateral shall be controlled by the Collateral Agent.

          (b) Neither the Agents nor any of their respective directors, officers, employees or agents
shall be liable as such for any action taken or omitted by any of them except for its or his own
gross negligence or willful misconduct, or be responsible for any statement, warranty or
representation herein or the contents of any document delivered in connection herewith, or be
required to ascertain or to make any inquiry concerning the performance or observance by the
Borrowers or any other Loan Party of any of the terms, conditions, covenants or agreements
contained in any Loan Document. The Agents shall not be responsible to the Lenders for the due
execution, genuineness, validity, enforceability or effectiveness of this Agreement or any other
Loan Documents or other instruments or agreements. The Agents shall in all cases be fully
protected in acting, or refraining from acting, in accordance with written instructions signed by
the Required Lenders and, except as otherwise specifically provided herein, such instructions and
any action or inaction pursuant thereto shall be binding on all the Lenders. Each Agent shall, in
the absence of knowledge to the contrary, be entitled to rely on any instrument or document
believed by it in good faith to be genuine and correct and to have been signed or sent by the
proper Person. Neither the Agents nor any of their respective directors, officers, employees or
agents shall have any responsibility to any Borrower or any other Loan Party or any other party
hereto or to any Loan Document on account of the failure, delay in performance or breach by, or as
a result of information provided by, any Lender or Issuing Bank of any of its obligations hereunder
or to any Lender or Issuing Bank on account of the failure of or delay in performance or breach by
any other Lender or Issuing Bank or any Borrower or any other Loan Party of any of their respective
obligations hereunder or under any other Loan Document or in connection herewith or therewith.
Each Agent may execute any and all duties hereunder by or through agents, employees or any
sub-agent appointed by it and shall be entitled to rely upon the advice
of legal counsel selected by it with respect to all matters arising hereunder and shall not be
liable for any action taken or suffered in good faith by it in accordance with the advice of such
counsel.

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          SECTION 8.02. Nature of Duties. The Lenders hereby acknowledge that no Agent shall be
under any duty to take any discretionary action permitted to be taken by it pursuant to the
provisions of this Agreement unless it shall be requested in writing to do so by the Required
Lenders. The Lenders further acknowledge and agree that so long as an Agent shall make any
determination to be made by it hereunder or under any other Loan Document in good faith, such Agent
shall have no liability in respect of such determination to any Person. Notwithstanding any
provision to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any
duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship
with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into the Loan Documents or otherwise exist against the Administrative
Agent. Each Lender recognizes and agrees that the Joint Lead Arrangers shall have no duties or
responsibilities under this Agreement or any other Loan Document, or any fiduciary relationship
with any Lender, and shall have no functions, responsibilities, duties, obligations or liabilities
for acting as such hereunder.

          SECTION 8.03. Resignation by the Agents. Subject to the appointment and acceptance of
a successor Agent as provided below, any Agent may resign at any time by notifying the Lenders and
the Borrowers. Upon any such resignation, the Required Lenders shall have the right to appoint a
successor with the consent of the Borrowers (not to be unreasonably withheld or delayed). If no
successor shall have been so appointed by the Required Lenders and approved by the Borrowers and
shall have accepted such appointment within 45 days after the retiring Agent gives notice of its
resignation, then the retiring Agent may, on behalf of the Lenders with the consent of the
Borrowers (not to be unreasonably withheld or delayed), appoint a successor Agent which shall be a
bank with an office in New York, New York and an office in London, England (or a bank having an
Affiliate with such an office) having a combined capital and surplus that is not less than
U.S.$500.0 million or an Affiliate of any such bank. Upon the acceptance of any appointment as
Agent hereunder by a successor bank, such successor shall 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 hereunder. After the Agent’s resignation hereunder, the
provisions of this Article and Section 9.05 shall continue in effect for its benefit in respect of
any actions taken or omitted to be taken by it while it was acting as Agent.

          SECTION 8.04. Each Agent in Its Individual Capacity. With respect to the Loans made
by it hereunder, each Agent in its individual capacity and not as Agent shall have the same rights
and powers as any other Lender and may exercise the same as though it were not an Agent, and the
Agents and their Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with any Borrower or any of the Subsidiaries or other Affiliates thereof as if it
were not an Agent.

          SECTION 8.05. Indemnification. Each Lender agrees (a) to reimburse the Agents, on
demand, in the amount of its pro rata share (based on its Commitments hereunder (or
if such Commitments shall have expired or been terminated, in accordance with the respective
principal amounts of its applicable outstanding Loans or participations in L/C Disbursements, as
applicable)) of any reasonable expenses incurred for the benefit of the Lenders by the Agents,
including reasonable counsel fees and compensation of agents and employees paid for services
rendered on behalf of the Lenders, which shall not have been reimbursed by the Borrowers and

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(b) to
indemnify and hold harmless each Agent and any of its directors, officers, employees or agents, on
demand, in the amount of such pro rata share, from and against any and all
liabilities, Taxes, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or
asserted against it in its capacity as Agent or any of them in any way relating to or arising out
of this Agreement or any other Loan Document or any action taken or omitted by it or any of them
under this Agreement or any other Loan Document, to the extent the same shall not have been
reimbursed by the Borrowers, provided that no Lender shall be liable to an Agent for any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the gross negligence or willful misconduct of such
Agent or any of its directors, officers, employees or agents.

          SECTION 8.06. Lack of Reliance on Agents. Each Lender acknowledges that it has,
independently and without reliance upon the Agents and any Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon the Agents, any other Lender and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not taking action under
or based upon this Agreement or any other Loan Document, any related agreement or any document
furnished hereunder or thereunder.

          SECTION 8.07. Sub-Agent. The Sub-Agent has been designated under this Agreement to
carry out duties of the Administrative Agent. The Sub-Agent shall be subject to each of the
obligations in this Agreement to be performed by the Sub-Agent, and each of the Borrowers and the
Lenders agrees that the Sub-Agent shall be entitled to exercise each of the rights and shall be
entitled to each of the benefits of the Administrative Agent under this Agreement as related to the
performance of its obligations hereunder.

          SECTION 8.08. Appointment of Supplemental Collateral Agents. (a) It is the purpose
of this Agreement and the other Loan Documents that there shall be no violation of any law of any
jurisdiction denying or restricting the right of banking corporations or associations to transact
business as agent or trustee in such jurisdiction. It is recognized that in case of litigation
under this Agreement or any of the other Loan Documents,
and in particular in case of the enforcement of any of the Loan Documents, or in case the
Administrative Agent deems that by reason of any present or future law of any jurisdiction it may
not exercise any of the rights, powers or remedies granted herein or in any of the other Loan
Documents or take any other action which may be desirable or necessary in connection therewith, it
may be necessary that the Administrative Agent appoint an additional individual or institution as a
separate trustee, co-trustee, collateral agent, collateral sub-agent or collateral co-agent (any
such additional individual or institution being referred to herein individually as a
“Supplemental Collateral Agent” and collectively as “Supplemental Collateral
Agents”).

          (b) In the event that the Administrative Agent appoints a Supplemental Collateral Agent with
respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended
by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to
the Administrative Agent with respect to such Collateral shall be exercisable by and vest in such
Supplemental Collateral Agent to the extent, and only to the extent,

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necessary to enable such
Supplemental Collateral Agent to exercise such rights, powers and privileges with respect to such
Collateral and to perform such duties with respect to such Collateral, and every covenant and
obligation contained in the Loan Documents and necessary to the exercise or performance thereof by
such Supplemental Collateral Agent shall run to and be enforceable by either the Administrative
Agent or such Supplemental Collateral Agent, and (ii) the provisions of this Article and of Section
9.05 that refer to the Administrative Agent shall inure to the benefit of such Supplemental
Collateral Agent and all references therein to the Administrative Agent shall be deemed to be
references to the Administrative Agent and/or such Supplemental Collateral Agent, as the context
may require.

          (b) Should any instrument in writing from any Loan Party be required by any Supplemental
Collateral Agent so appointed by the Administrative Agent for more fully and certainly vesting in
and confirming to it such rights, powers, privileges and duties, such Loan Party shall execute,
acknowledge and deliver any and all such instruments promptly upon request by the Administrative
Agent. In case any Supplemental Collateral Agent, or a successor thereto, shall die, become
incapable of acting, resign or be removed, all the rights, powers, privileges and duties of such
Supplemental Collateral Agent, to the extent permitted by law, shall vest in and be exercised by
the Administrative Agent until the appointment of a new Supplemental Collateral Agent.

ARTICLE IX

MISCELLANEOUS

          SECTION 9.01. Notices. (a) Notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

     (i) if to the Domestic Borrower, to it at Dresser-Rand Group Inc., 1200 W. Sam Houston
Parkway N. Houston, TX 77043, Attention to Robert Saltarelli (telecopy 713-935 3880
(e-mail:rsaltarelli@dresser-rand.com);

     (ii) if to the French Borrower, to it at D-R Holdings (France) S.A.S. c/o DRESSER-RAND
S.A., 31, Boulevard Winston Churchill 76080 LE HAVRE Cedex 7013, Attention: Jean-François
CHEVRIER (telecopy +33 235 25 5369 (e-mail: jean-francois_chevrier@dresser-rand.com);

     (iii) if to the Administrative Agent or the Collateral Agent, to Citicorp North
America, Inc., 2 Penns Way, Suite 200, New Castle, Delaware 19720, attention: Keith Carter
(telecopy: (212) 994-0961) (e-mail:keith.j.carter@citigroup.com), with a copy to Shearman &
Sterling LLP, 599 Lexington Avenue, New York, New York 10022, attention: Maura O’ Sullivan,
Esq. (telecopy: (646) 848-7897); and

     (iv) if to an Issuing Bank, to it at the address or telecopy number set forth
separately in writing.

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          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. Each of the Administrative Agent, the Collateral
Agent and the Borrowers may, in its discretion, agree to accept notices and other communications to
it hereunder by electronic communications pursuant to procedures approved by it; provided
further that approval of such procedures may be limited to particular notices or
communications.

          (c) All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered
by hand or overnight courier service, sent by telecopy or (to the extent permitted by paragraph (b)
above) electronic means or on the date five Business Days after dispatch by certified or registered
mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as
provided in this Section 9.01 or in accordance with the latest unrevoked direction from such party
given in accordance with this Section 9.01.

          (d) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.

          SECTION 9.02. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Borrowers and the Loan Parties herein, in the other Loan Documents and in
the certificates or other instruments prepared or delivered in connection with or pursuant to this
Agreement or any other Loan Document shall be considered to have been relied upon by the Lenders
and each Issuing Bank and shall survive the making by the Lenders of the Loans, the execution and
delivery of the Loan Documents and the issuance of the Letters of Credit, regardless of any
investigation made by such Persons or on their behalf, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan or L/C Disbursement or any Fee
or any other amount payable under this Agreement or any other Loan Document is outstanding and
unpaid or any Letter of Credit is outstanding and so long as the Commitments have not been
terminated. Without prejudice to the survival of any other agreements contained herein,
indemnification and reimbursement obligations contained herein (including pursuant to Sections
2.15, 2.17 and 9.05) shall survive the payment in full of the principal and interest hereunder, the
expiration of the Letters of Credit and the termination of the Commitments or this Agreement.

          SECTION 9.03. Binding Effect. This Agreement shall become effective when it shall
have been executed by the Borrowers and the Agents and when the Administrative Agent shall have
received copies hereof which, when taken together, bear the signatures of each of the other parties
hereto, and thereafter shall be binding upon and inure to the benefit of the Borrowers, each
Issuing Bank, the Agents and each Lender and their respective permitted successors and assigns.

          SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of
Credit), except that (i) other than pursuant to a merger permitted by Section 6.05(b) or 6.05(i),

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no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender (and any attempted assignment or transfer by any Borrower
without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer
its rights or obligations hereunder except in accordance with this Section. Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby (including any Affiliate
of any Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in
paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Agents, each Issuing Bank and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld or delayed) of:

     (A) the Borrowers; provided, that no consent of any Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of
Default has occurred and is continuing, any other assignee (provided that any
liability of the Borrowers to an assignee that is an Approved Fund or Affiliate of the
assigning Lender under Section 2.15, 2.17 or 2.20 shall be limited to the amount, if any,
that would have been payable hereunder by the Borrowers in the absence of such assignment);
and

     (B) the Administrative Agent and the Swingline Lenders; provided that no
consent of the Administrative Agent or the Swingline Lenders, as applicable, shall be
required for an assignment of a Revolving Facility Commitment to an assignee that is a
Revolving Facility Lender immediately prior to giving effect to such assignment.

     (ii) Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, an assignment of the entire remaining amount of the assigning Lender’s
Commitment or contemporaneous assignments to related Approved Funds that equal at least
U.S.$5.0 million in the aggregate, the amount of the commitment of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall not be less
than U.S.$5.0 million, unless each of the Borrowers and the Administrative Agent otherwise
consent; provided that no such consent of the Borrowers shall be required if an
Event of Default under paragraph (b), (c), (h), (i) or (l) of Section 7.01 has occurred and
is continuing;

     (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement;

     (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and

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recordation fee of
U.S.$3,500; provided that no such recordation fee shall be due in connection with an
assignment to an existing Lender or Affiliate of a Lender or an Approved Fund of such Lender
or an assignment by the Administrative Agent and provided further that only
one such fee shall be payable in connection with contemporaneous assignments to related
Approved Funds; and

     (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

          For purposes of this Section 9.04(b), the term “Approved Fund” shall have the
following meaning:

     “Approved Fund” shall mean any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar extensions of
credit in the ordinary course and that is administered or managed by a Lender, an Affiliate
of a Lender or an entity or an Affiliate of an entity that administers or manages a Lender.

          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Acceptance the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment
and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning
Lender hereunder shall, to the extent of the interest assigned by such Assignment and Acceptance,
be released from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of
Sections 2.15, 2.16, 2.17 and 9.05). Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply with this
Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of this Section.

          (iv) The Administrative Agent, acting for this purpose as an agent of the Borrowers, shall
maintain at one of its offices a copy of each Assignment and Acceptance delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitment of, and
principal amount of the Loans and L/C Disbursements owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and each Borrower, the Agents, each Issuing Bank and the Lenders shall treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by any Borrower, any Issuing Bank and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

          (v) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such

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Assignment and Acceptance and record the
information contained therein in the Register. No assignment shall be effective for purposes of
this Agreement unless it has been recorded in the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Borrowers, the Administrative Agent, any
Issuing Bank or any Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrowers, the Agents, each Issuing Bank and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument (oral or written) pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and the other Loan Documents and to approve any amendment, modification or
waiver of any provision of this Agreement and the other Loan Documents; provided that (x)
such agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in Section 9.04(a)(i) or
clauses (i), (ii), (iii), (iv), (v) or (vi) of the first proviso to Section 9.08(b) that affects
such Participant and (y) no other agreement (oral or written) with respect to such Participant may
exist between such Lender and such Participant. Subject to paragraph (c)(ii) of this Section, the
Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and
2.17 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant
to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 9.06 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.18(c) as though it were a Lender.

          (ii) A Participant shall not be entitled to receive any greater payment under Section 2.15,
2.16 or 2.17 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrowers’ prior written consent (which shall not be unreasonably withheld). A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 2.17 to the extent such Participant fails to comply with Section 2.17(e) as
though it were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto.

          (e) For the purposes of Article 1278 of the French Civil Code, it is expressly agreed that
upon any assignment of the rights and obligations of a Lender, the security created or evidenced by
any collateral agreement or instrument governed by French law and/or with a

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French law party shall
be preserved for the benefit of the new Lender and each other Secured Party.

          (f) A copy of the instrument evidencing the assignment of the rights of a Lender in respect of
any Loan to the French Borrower or any Additional Foreign Borrower organized under the laws of
France shall be notified through a French bailiff (huissier) to such Borrower in accordance with
Article 1690 of the French Civil Code. The new Lender will be responsible for the fees of the
French bailiff (huissier) for so notifying the French Loan Party.

          SECTION 9.05. Expenses; Indemnity. (a) The Domestic Borrower agrees to pay all
reasonable and documented out-of-pocket expenses (including Other Taxes) incurred by the Agents in
connection with the preparation of this Agreement and the other Loan Documents, or by the Agents in
connection with the syndication of the Commitments or the administration of this Agreement
(including expenses incurred in connection with due diligence and initial and ongoing Collateral
examination to the extent incurred with the reasonable prior approval of the Domestic Borrower and
the reasonable fees, disbursements and the charges for no more than one counsel in each
jurisdiction where Collateral is located) or in connection with any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the Transactions hereby contemplated
shall be consummated) or incurred by the Agents or any Lender in connection with the enforcement or
protection of their rights in connection with this Agreement and the other Loan Documents, in
connection with the Loans made or the Letters of Credit issued hereunder, including the reasonable
fees, charges and disbursements of Shearman & Sterling LLP, counsel for the Agents and the Joint
Lead Arrangers, and, in connection with any such enforcement or protection, the reasonable fees,
charges and disbursements of any other counsel) (including the reasonable and documented allocated
costs of internal counsel for the Agents, the Joint Lead Arrangers, any Issuing Bank or any Lender
(but no more than one such counsel for any Lender)).

          (b) The Domestic Borrower agrees to indemnify the Agents, the Joint Lead Arrangers, each
Issuing Bank, each Lender and each of their respective directors, trustees, officers, employees,
investment advisors and agents (each such Person being called an “Indemnitee”) against, and
to hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related
expenses, including reasonable and documented counsel fees, charges and disbursements, incurred by
or asserted against any Indemnitee arising out of, in any way connected with, or as a result of (i)
the execution or delivery of this Agreement or any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto and thereto of
their respective obligations thereunder or the consummation of the Transactions and the other
transactions contemplated hereby, (ii) the use of the proceeds of the Loans or the use of any
Letter of Credit or (iii) any claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnitee is a party thereto, provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses result primarily from the gross negligence or willful misconduct of
such Indemnitee (treating, for this purpose only, any Agent, any Joint Lead Arranger, any Issuing
Bank, any Lender and any of their respective Related Parties as a single Indemnitee). Subject to
and without limiting the generality of the foregoing sentence, the Domestic Borrower agrees to
indemnify each Indemnitee against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related

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expenses, including reasonable and documented counsel or
consultant fees, charges and disbursements, incurred by or asserted against any Indemnitee arising
out of, in any way connected with, or as a result of (A) any Environmental Claim related in any way
to any Borrower or any of their Subsidiaries, or (B) any actual or alleged presence, Release or
threatened Release of Hazardous Materials at, under, on or from any Property, any property owned,
leased or operated by any predecessor of any Borrower or any of their Subsidiaries, or any property
at which any Borrower or any of their Subsidiaries has sent Hazardous Wastes for treatment, storage
or disposal, provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses result from the gross
negligence or willful misconduct of such Indemnitee or any of its Related Parties. The provisions
of this Section 9.05 shall remain operative and in full force and effect regardless of the
expiration of the term of this Agreement, the consummation of the transactions contemplated hereby,
the repayment of any of the Obligations, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Document, or any investigation made by or on behalf
of any Agent, any Issuing Bank or any Lender. All amounts due under this Section 9.05 shall be
payable on written demand therefor accompanied by reasonable documentation with respect to any
reimbursement, indemnification or other amount requested.

          (c) Unless an Event of Default shall have occurred and be continuing, the Domestic Borrower
shall be entitled to assume the defense of any action for which indemnification is sought hereunder
with counsel of their choice at its expense (in which case the Domestic Borrower shall not
thereafter be responsible for the fees and expenses of any separate counsel retained by an
Indemnitee except as set forth below); provided, however, that such counsel shall
be reasonably satisfactory to each such Indemnitee. Notwithstanding the Domestic Borrower’s
election to assume the defense of such action, each Indemnitee shall have the right to employ
separate counsel and to participate in the defense of such action, and the Domestic Borrower shall
bear the reasonable fees, costs and expenses of such separate counsel, if (i) the use of counsel
chosen by the Domestic Borrower to represent such Indemnitee would present
such counsel with a conflict of interest; (ii) the actual or potential defendants in, or
targets of, any such action include both a Borrower and such Indemnitee and such Indemnitee shall
have reasonably concluded that there may be legal defenses available to it that are different from
or additional to those available to the Borrowers (in which case the Domestic Borrower shall not
have the right to assume the defense or such action on behalf of such Indemnitee); (iii) the
Domestic Borrower shall not have employed counsel reasonably satisfactory to such Indemnitee to
represent it within a reasonable time after notice of the institution of such action; or (iv) the
Domestic Borrower shall authorize in writing such Indemnitee to employ separate counsel at the
Domestic Borrower’s expense. The Domestic Borrower will not be liable under this Agreement for any
amount paid by an Indemnitee to settle any claims or actions if the settlement is entered into
without the Domestic Borrower’s consent, which consent may not be withheld or delayed unless such
settlement is unreasonable in light of such claims or actions against, and defenses available to,
such Indemnitee.

          (d) Except as expressly provided in Section 9.05(a) with respect to Other Taxes, which shall
not be duplicative with any amounts paid pursuant to Section 2.17, this Section 9.05 shall not
apply to Taxes.

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          SECTION 9.06. Right of Set-off. Subject to Section 9.23, if an Event of Default shall
have occurred and be continuing, each Lender and each Issuing Bank is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender or such Issuing Bank to or for the credit or the
account of (a) any Domestic Loan Party or any other Domestic Subsidiary, against any and all
obligations of the Domestic Loan Parties, (b) any French Loan Party or any of its Subsidiaries,
against any and all of the French Obligations, and (c) any other Foreign Loan Party or any of its
Foreign Subsidiaries , against any and all of the obligations of such Foreign Loan Party, in each
case, now or hereafter existing under this Agreement or any other Loan Document held by such Lender
or such Issuing Bank, irrespective of whether or not such Lender or such Issuing Bank shall have
made any demand under this Agreement or such other Loan Document and although the obligations may
be unmatured. The rights of each Lender and each Issuing Bank under this Section 9.06 are in
addition to other rights and remedies (including other rights of set-off) that such Lender or such
Issuing Bank may have.

          SECTION 9.07. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN
LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          SECTION 9.08. Waivers; Amendment. (a) No failure or delay of the Agents, any Issuing
Bank or any Lender in exercising any right or power hereunder or under any Loan Document shall
operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Agents, each Issuing Bank and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would otherwise have. No
waiver of any provision of this Agreement or any other Loan Document or consent to any departure by
any Borrower or any other Loan Party therefrom shall in any event be effective unless the same
shall be permitted by paragraph (b) below, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. No notice or demand on any Borrower
or any other Loan Party in any case shall entitle such Person to any other or further notice or
demand in similar or other circumstances.

          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except (x) in the case of this Agreement, pursuant to an agreement
or agreements in writing entered into by the Borrowers and the Required Lenders and (y) in the case
of any other Loan Document, pursuant to an agreement or agreements in writing entered into by each
party thereto and the Collateral Agent and consented to by the Required Lenders; provided,
however, that no such agreement shall

     (i) decrease or forgive the principal amount of, or extend the final maturity of, or
decrease the rate of interest on, any Loan or any L/C Disbursement, without the prior
written consent of each Lender directly affected thereby; provided that any
amendment to the financial covenant definitions in this Agreement shall not constitute a
reduction in the rate of interest for purposes of this clause (i),

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     (ii) increase or extend the Commitment of any Lender or decrease the Commitment Fees or
L/C Participation Fees or other fees of any Lender without the prior written consent of such
Lender (it being understood that waivers or modifications of conditions precedent,
covenants, Defaults or Events of Default or of a mandatory reduction in the aggregate
Commitments shall not constitute an increase of the Commitments of any Lender),

     (iii) amend or modify the provisions of Section 2.18(b) or (c) in a manner that would
by its terms alter the pro rata sharing of payments required thereby,
without the prior written consent of each Lender adversely affected thereby,

     (iv) amend or modify the provisions of this Section or the definition of the terms
“Required Lenders,” “Majority Lenders” or any other provision hereof specifying the number
or percentage of Lenders required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the prior written consent of each
Lender adversely affected thereby (it being understood that, with the consent of the
Required Lenders, additional extensions of credit pursuant to this Agreement may be included
in the determination of the Required Lenders on substantially the same basis as the Loans
and Commitments are included on the Closing Date),

     (v) release all or substantially all the Collateral or release any Subsidiary Loan
Party from its Guarantee under a Collateral Agreement, unless, in the case of a Subsidiary
Loan Party, all or substantially all the Equity Interests of such Subsidiary Loan Party is
sold or otherwise disposed of in a transaction permitted by this Agreement, without the
prior written consent of each Lender, or

     (vi) effect any waiver, amendment or modification that by its terms adversely affects
the rights in respect of payments or collateral of Lenders participating in any Facility
differently from those of Lenders participating in other Facilities, without the consent of
the Majority Lenders participating in the adversely affected Facility (it being agreed that
the Required Lenders may waive, in whole or in part, any prepayment or Commitment reduction
required by Section 2.11 so long as the application of any prepayment or Commitment
reduction still required to be made is not changed);

provided further that no such agreement shall amend, modify or otherwise affect the
rights or duties of the Administrative Agent or an Issuing Bank hereunder without the prior written
consent of the Administrative Agent or such Issuing Bank acting as such at the effective date of
such agreement, as applicable. Each Lender shall be bound by any waiver, amendment or modification
authorized by this Section 9.08 and any consent by any Lender pursuant to this Section 9.08 shall
bind any assignee of such Lender.

          (c) Without the consent of any Co-Syndication Agent, Joint Lead Arranger or Lender, the Loan
Parties and the Administrative Agent and/or Collateral Agent may (in their respective sole
discretion, or shall, to the extent required by any Loan Document) enter into any amendment,
modification or waiver of any Loan Document, or enter into any new agreement or instrument, to
effect the granting, perfection, protection, expansion or enhancement of any

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security interest in
any Collateral or additional property to become Collateral for the benefit of the Secured Parties,
or as required by local law to give effect to, or protect any security interest for the benefit of
the Secured Parties, in any property or so that the security interests therein comply with
applicable law.

          (d) Notwithstanding the foregoing, this Agreement may be amended (or amended and restated)
with the written consent of the Required Lenders, the Administrative Agent, and the Borrowers (a)
to add one or more additional credit facilities to this Agreement and to permit the extensions of
credit from time to time outstanding thereunder and the accrued interest and fees in respect
thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the
Revolving Facility Loans and the accrued interest and fees in respect thereof and (b) to include
appropriately the Lenders holding such credit facilities in any determination of the Required
Lenders.

          SECTION 9.09. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the applicable interest rate, together with all fees and charges that are
treated as interest under applicable law (collectively, the “Charges”), as provided for
herein or in any other document executed in connection herewith, or otherwise contracted for,
charged, received, taken or reserved by any Lender or any Issuing Bank, shall exceed the maximum
lawful rate (the “Maximum Rate”) that
may be contracted for, charged, taken, received or reserved by such Lender in accordance with
applicable law, the rate of interest payable hereunder, together with all Charges payable to such
Lender or such Issuing Bank, shall be limited to the Maximum Rate, provided that such
excess amount shall be paid to such Lender or such Issuing Bank on subsequent payment dates to the
extent not exceeding the legal limitation.

          SECTION 9.10. Entire Agreement. This Agreement, the other Loan Documents and the
agreements regarding certain Fees referred to herein constitute the entire contract between the
parties relative to the subject matter hereof. Any previous agreement among or representations
from the parties or their Affiliates with respect to the subject matter hereof is superseded by
this Agreement and the other Loan Documents. Notwithstanding the foregoing, the Fee Letter shall
survive the execution and delivery of this Agreement and remain in full force and effect. Nothing
in this Agreement or in the other Loan Documents, expressed or implied, is intended to confer upon
any party other than the parties hereto and thereto any rights, remedies, obligations or
liabilities under or by reason of this Agreement or the other Loan Documents.

          SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OF THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT

117

 

AND THE OTHER LOAN
DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 9.11.

          SECTION 9.12. Severability. In the event any one or more of the provisions contained
in this Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein
and therein shall not in any way be affected or impaired thereby. The parties shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

          SECTION 9.13. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which, when taken together,
shall constitute but one
contract, and shall become effective as provided in Section 9.03. Delivery of an executed
counterpart to this Agreement by facsimile transmission shall be as effective as delivery of a
manually signed original.

          SECTION 9.14. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and are not to affect
the construction of, or to be taken into consideration in interpreting, this Agreement.

          SECTION 9.15. Jurisdiction; Consent to Service of Process. (a) Each of the Borrowers
hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or federal court of the United States of America sitting
in New York City, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such federal court. Each Borrower further irrevocably
consents to the service of process in any action or proceeding in such courts by the mailing
thereof by any parties thereto by registered or certified mail, postage prepaid, to such Borrower
at the address specified for the Loan Parties in Section 9.01(a). Each Foreign Borrower hereby
further agrees that service of process in any such action or proceeding brought in any such New
York state court or in any such federal court may be made upon the Domestic Borrower at its address
specified in Section 9.01(a), and each Foreign Borrower hereby irrevocably appoints the Domestic
Borrower as its authorized agent to accept such service of process, and hereby irrevocably agrees
that the failure of the Domestic Borrower to give any notice of such service to such Borrower shall
not impair or affect the validity of such service or of any judgment rendered in any action or
proceeding based thereon. Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right
that any Lender or any Issuing Bank may otherwise have to bring any action or proceeding relating
to this Agreement or the other Loan Documents against any Borrower or any Loan Party or their
properties in the courts of any jurisdiction.

118

 

          (b) Each of the Borrowers hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or
the other Loan Documents in any New York State or federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

          SECTION 9.16. Confidentiality. Each of the Lenders, each Issuing Bank and each of the
Agents agrees that it shall maintain in confidence any information relating to the Borrowers and
the other Loan Parties
furnished to it by or on behalf of the Borrowers or the other Loan Parties (other than
information that (a) has become generally available to the public other than as a result of a
disclosure by such party, (b) has been independently developed by such Lender, such Issuing Bank or
such Agent without violating this Section 9.16 or (c) was available to such Lender, such Issuing
Bank or such Agent from a third party having, to such Person’s knowledge, no obligations of
confidentiality to any Borrower or any other Loan Party) and shall not reveal the same other than
to its directors, trustees, officers, employees and advisors with a need to know or to any Person
that approves or administers the Loans on behalf of such Lender (so long as each such Person shall
have been instructed to keep the same confidential in accordance with this Section 9.16), except:
(A) to the extent necessary to comply with law or any legal process or the requirements of any
Governmental Authority, the National Association of Insurance Commissioners or of any securities
exchange on which securities of the disclosing party or any Affiliate of the disclosing party are
listed or traded, (B) as part of normal reporting or review procedures to Governmental Authorities
or the National Association of Insurance Commissioners, (C) to its parent companies, Affiliates or
auditors (so long as each such Person shall have been instructed to keep the same confidential in
accordance with this Section 9.16), (D) in order to enforce its rights under any Loan Document in a
legal proceeding, (E) to any prospective assignee of, or prospective Participant in, any of its
rights under this Agreement (so long as such Person shall have been instructed to keep the same
confidential in accordance with this Section 9.16) and (F) to any direct or indirect contractual
counterparty in Swap Agreements or such contractual counterparty’s professional advisor (so long as
such contractual counterparty or professional advisor to such contractual counterparty agrees to be
bound by the provisions of this Section).

          SECTION 9.17. Citigroup Direct Website Communications. (a) Delivery.
(i) Each Loan Party hereby agrees that it will use all reasonable efforts to provide to the
Administrative Agent all information, documents and other materials that it is obligated to furnish
to the Administrative Agent pursuant to this Agreement and any other Loan Document, including,
without limitation, all notices, requests, financial statements, financial and other reports,
certificates and other information materials, but excluding any such communication that (A) relates
to a request for a new, or a conversion of an existing, borrowing or other extension of credit
(including any election of an interest rate or interest period relating thereto), (B) relates to
the payment of any principal or other amount due under this Agreement prior to the scheduled date
therefor, (C) provides notice of any Default or Event of Default under this Agreement or (D) is
required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement
and/or any borrowing or other extension of credit hereunder (all such non-excluded communications
collectively, the “Communications”), by transmitting the Communications in an
electronic/soft medium in a format reasonably acceptable to the Administrative Agent to

119

 

oploanswebadmin@citigroup.com. Nothing in this Section 9.18 shall prejudice the right of the
Agents, the Co-Syndication Agents, the Joint Lead Arrangers or any Lender or any Loan Party to give
any notice or other communication pursuant to this Agreement or any other Loan Document in any
other manner specified in this Agreement or any other Loan Document.

          (ii) The Administrative Agent agrees that receipt of the Communications by the Administrative
Agent at its e-mail address set forth above shall constitute effective delivery of the
Communications to the Administrative Agent for purposes of the Loan Documents. Each
Lender agrees that notice to it (as provided in the next sentence) specifying that the
Communications have been posted to the Platform (as defined below) shall constitute effective
delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender
agrees (A) to notify the Administrative Agent in writing (including by electronic communication)
from time to time of such Lender’s e-mail address to which the foregoing notice may be sent by
electronic transmission and (B) that the foregoing notice may be sent to such e-mail address.

          (b) Posting. Each Loan Party further agrees that the Administrative Agent may make
the Communications available to the Lenders by posting the Communications on Intralinks or a
substantially similar electronic transmission system (the “Platform”).

          (c) The Platform is provided “as is” and “as available.” The Agent Parties (as defined below)
do not warrant the accuracy or completeness of the Communications, or the adequacy of the Platform
and expressly disclaim liability for errors or omissions in the communications. No warranty of any
kind, express, implied or statutory, including, without limitation, any warranty of
merchantability, fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by any Agent Party in connection with the
Communications or the Platform. In no event shall the Administrative Agent or any of its
affiliates or any of their respective officers, directors, employees, agents advisors or
representatives (collectively, “Agent Parties”) have any liability to the Loan Parties, any
Lender or any other Person or entity for damages of any kind, including, without limitation, direct
or indirect, special, incidental or consequential damages, losses or expenses (whether in tort,
contract or otherwise) arising out of any Loan Party’s or the Administrative Agent’s transmission
of communications through the internet, except to the extent the liability of any Agent Party is
found in a final non-appealable judgment by a court of competent jurisdiction to have resulted
primarily from such Agent Party’s gross negligence or willful misconduct.

          SECTION 9.18. Release of Liens and Guarantees. In the event that any Loan Party
conveys, sells, leases, assigns, transfers or otherwise disposes of all or any portion of any of
the Equity Interests or assets of any Subsidiary Loan Party (other than the Equity Interests of a
Borrower) to a Person that is not (and is not required to become) a Loan Party in a transaction not
prohibited by Section 6.05, the Administrative Agent and the Collateral Agent shall promptly (and
the Lenders hereby authorize the Administrative Agent and the Collateral Agent to) take such action
and execute any such documents as may be reasonably requested by the Borrowers and at the
Borrowers’ expense to release any Liens created by any Loan Document in respect of such Equity
Interests, and, in the case of a disposition of the Equity Interests of any Subsidiary Loan Party
that is not a Borrower in a transaction permitted by Section 6.05 and as a result of which such
Subsidiary Loan Party would cease to be a Subsidiary, terminate such Subsidiary

120

 

Loan Party’s
obligations under its Guarantee. In addition, the Administrative Agent and the Collateral Agent
agree to take such actions as are reasonably requested by the Borrowers and at the Borrowers’
expense to terminate the Liens and security interests created by the Loan Documents when all the
Obligations are paid in full and all Letters of Credit and Commitments are terminated. Any
representation, warranty or covenant contained in any Loan Document relating to any such Equity
Interests, asset or
subsidiary of the Domestic Borrower shall no longer be deemed to be made once such Equity
Interests or asset is so conveyed, sold, leased, assigned, transferred or disposed of.

          SECTION 9.19. U.S. Patriot Act. Each Lender hereby notifies each Loan Party that
pursuant to the requirements of the U.S. Patriot Act, it is required to obtain, verify and record
information that identifies Loan Parties, which information includes the name and address of each
Loan Party and other information that will allow the Lenders to identify such Loan Party in
accordance with the U.S. Patriot Act.

          SECTION 9.20. Judgment. (a) If for the purposes of obtaining judgment in any court
it is necessary to convert a sum due hereunder in Dollars into another currency, the parties hereto
agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall
be that at which in accordance with normal banking procedures the Administrative Agent could
purchase Dollars with such other currency at Citibank, N.A.’s principal office in London at 11:00
a.m. (London time) on the Business Day preceding that on which final judgment is given.

          (b) If for the purposes of obtaining judgment in any court it is necessary to convert a sum
due hereunder in a Foreign Currency into Dollars, the parties agree to the fullest extent that they
may effectively do so, that the rate of exchange used shall be that at which in accordance with
normal banking procedures the Administrative Agent could purchase such Foreign Currency with
Dollars at Citibank, N.A.’s principal office in London at 11:00 a.m. (London time) on the Business
Day preceding that on which final judgment is given.

          (c) The obligation of each Borrower in respect of any sum due from it in any currency (the
“Primary Currency”) to any Lender or the Administrative Agent hereunder shall,
notwithstanding any judgment in any other currency, be discharged only to the extent that on the
Business Day following receipt by such Lender or the Administrative Agent (as the case may be), of
any sum adjudged to be so due in such other currency, such Lender or the Administrative Agent (as
the case may be) may in accordance with normal banking procedures purchase the applicable Primary
Currency with such other currency; if the amount of the applicable Primary Currency so purchased is
less than such sum due to such Lender or the Administrative Agent (as the case may be) in the
applicable Primary Currency, each Borrower agrees, as a separate obligation and notwithstanding any
such judgment, to indemnify such Lender or the Administrative Agent (as the case may be) against
such loss, and if the amount of the applicable Primary Currency so purchased exceeds such sum
originally due to any Lender or the Administrative Agent (as the case may be) in the applicable
Primary Currency, such Lender or the Administrative Agent (as the case may be) agrees to remit to
such Borrower such excess.

          SECTION 9.21. Substitution of Currency. If a change in any Foreign Currency occurs
pursuant to any applicable law, rule or regulation of any governmental, monetary or multi-national
authority, this Agreement (including, without limitation, the definition of

121

 

Adjusted LIBO Rate)
will be amended to the extent determined by the Administrative Agent (acting reasonably and in
consultation with the
Borrowers) to be necessary to reflect the change in currency and to put the Lenders and the
Borrowers in the same position, so far as possible, that they would have been in if no change in
such Foreign Currency had occurred.

          SECTION 9.22. Termination or Release. The Security Documents, the guarantees made
therein, the Security Interest (as defined therein) and all other security interests granted
thereby shall terminate, and a Subsidiary Loan Party shall automatically be released from its
obligations thereunder and the security interests in the Collateral granted by any Loan Party shall
be automatically released, in each case in accordance with Section 7.14 of the Domestic Collateral
Agreement or the comparable provisions of the other Collateral Agreements.

          SECTION 9.23. Pledge and Guarantee Restrictions. Notwithstanding any provision of
this Agreement or any other Loan Document to the contrary (including any provision that would
otherwise apply notwithstanding other provisions or that is the beneficiary of other overriding
language):

          (a)(i) no more than 65% of the issued and outstanding Equity Interests of (x) any
Foreign Borrower or any Foreign Subsidiary or (y) any Domestic Subsidiary substantially all
of whose assets consist of the Equity Interests in “controlled foreign corporations” under
Section 957 of the Code shall be pledged or similarly hypothecated to guarantee, secure or
support any Obligation of any Domestic Loan Party;

     (ii) no Foreign Subsidiary or any Domestic Subsidiary substantially all of
whose assets consist of the Equity Interests in “controlled foreign corporations”
under Section 957 of the Code shall guarantee or support any Obligation of any
Domestic Loan Party;

     (iii) no security or similar interest shall be granted in the assets of any
Foreign Subsidiary or any Domestic Subsidiary substantially all of whose assets
consist of the Equity Interests in “controlled foreign corporations under Section
957 of the Code (including indirectly by way of an offset or otherwise) which
security or similar interests guarantees or supports any Obligation of any Domestic
Loan Party;

          (b) no Subsidiary shall guarantee or support any Obligation of any Loan Party if such
guarantee or support would contravene the Agreed Security Principles;

          (c)(i) no Foreign Subsidiary shall guarantee or support any Obligation of any Foreign
Loan Party unless such Foreign Subsidiary directly owns or is owned directly by such Foreign
Loan Party and is organized under the same jurisdiction as such Foreign Loan Party;

     (ii) no security or similar interest shall be granted in the assets of any
Foreign Subsidiary (including indirectly by way of an offset or otherwise) which
security or similar interest guarantees or supports any Obligation of
any Foreign Loan Party unless such Foreign Subsidiary directly owns or is owned directly by

122

 

such Foreign Loan Party and is organized under the same jurisdiction as such Foreign
Loan Party.

The parties hereto agree that any pledge, guaranty or security or similar interest made or granted
in contravention of this Section 9.23 shall be void ab initio.

          SECTION 9.24. Matters Pertaining to the French Borrower and to any Additional Foreign
Borrower organized under the laws of France. (a) The Lenders as of the Closing Date
participating in any loan to the French Borrower and to any Additional Foreign Borrower organized
under the laws of France (if any) represent and warrant (i) that they are duly authorized to carry
out credit transaction in France pursuant to applicable laws and regulations of France or the
European Union and (ii) that participations in loans to any French Borrower and to any Additional
Foreign Borrower organized under the laws of France (if any) and commitments to lend to any French
Borrower and to any Additional Foreign Borrower organized under the laws of France (if any) under
this Agreement shall only be assigned or transferred to institutions that are duly authorized to
carry out credit transactions in France, or which may legally acquire rights under loans to a
French borrower under applicable laws and regulations of France.

          (b) To comply with the provisions of articles L.313-4 of the French Monetary and Financial
Code and articles L. 313-1 and L. 313-2 of the French Code de la consommation, the French Borrower
hereby acknowledges that the effective global rate (taux effectif global or “TEG”) for the
Revolving Facility Loans cannot be calculated for the total duration of this agreement, primarily
because of the floating rate of interest applicable to such Loans and the ability of the French
Borrower to select the duration of each Interest Period. Accordingly, on the date hereof, an
example of calculation of the effective global rate, based upon certain assumptions, is provided to
the French Borrower by way of delivery of a TEG letter by the Administrative Agent in the form
attached hereto as Exhibit I. In addition, in the event that any French Subsidiary Loan
Party will become an Additional Foreign Borrower under the Revolving Facility, the Credit Agreement
Supplement for such Additional Foreign Borrower shall contain an acknowledgement of such Additional
Foreign Borrower similar to the acknowledgement of the French Borrower contained in this Section
9.24 and a TEG letter substantially in the same form as the TEG letter delivered to the French
Borrower. Any TEG letter delivered pursuant to this Section 9.24 shall form an integral part of
this agreement.

          SECTION 9.25. Reaffirmation of Letters of Credit. The Borrowers hereby reaffirm the
validity of and their obligations (including but not limited to any obligations under the Domestic
Collateral Agreement or the Foreign Guarantee) under all Letters of Credit issued, amended, renewed
or extended under the Existing Credit Agreement and outstanding on the Closing Date, including any
such Letters of Credit issued for the account of the UK Borrower, as defined in the Existing Credit
Agreement.

[Signature Pages Follow]

123

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	DRESSER RAND GROUP INC., as the Domestic Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	D-R HOLDINGS (France) S.A.S., as the French Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Dresser-Rand Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	CITIGROUP GLOBAL MARKETS INC.,	 	 
	 	 	     as Joint Lead Arranger and Joint Book Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC.,	 	 
	 	 	     as Administrative Agent and as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Dresser-Rand Credit Agreement]

 

 

[                                        ],

	 	 	 	 	 	 	 
	 	 	as Co-Syndication Agent, Joint Lead Arranger and
Joint Book Manager
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Dresser-Rand Credit Agreement]

 

 

[                                        ],

	 	 	 	 	 	 	 
	 	 	     as Co-Syndication Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[                                        ], as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Dresser-Rand Credit Agreement]

 

 

[                                        ],

	 	 	 	 	 	 	 
	 	 	     as Co-Documentation Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Dresser-Rand Credit Agreement]

 

 

[                                        ],

	 	 	 	 	 	 	 
	 	 	     as Co-Documentation Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Dresser-Rand Credit Agreement]

 

 

[                                        ], as Lender

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Dresser-Rand Credit Agreement]EX-4.1

 

Exhibit 4.1

      

TAM CAPITAL INC.

as Issuer

the GUARANTORS party hereto

THE BANK OF NEW YORK,

as Trustee, Registrar, Transfer Agent and Principal Paying Agent

and

THE BANK OF NEW YORK (LUXEMBOURG) S.A.

as Luxembourg Paying Agent and Transfer Agent

 

INDENTURE

Dated as of April 25, 2007

 

7.375% Senior Guaranteed Notes Due 2017

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 
	TIA Sections	 	Indenture Sections
	§ 310

	 	(a)
	 	7.09 
	 

	 	(b)
	 	7.07 
	§ 311

	 	 	 	7.03 
	§ 312

	 	 	 	11.02 
	§ 313

	 	 	 	7.01 
	§ 314

	 	(a)
	 	4, 4.02 
	 

	 	(c)
	 	11.03 
	 

	 	(e)
	 	11.04 
	§ 315

	 	(a)
	 	7.01, 7.02 
	 

	 	(b)
	 	7.02, 7.05 
	 

	 	(c)
	 	7.01 
	 

	 	(d)
	 	7.02 
	 

	 	(e)
	 	6.03, 7.02 
	§ 316

	 	(a)
	 	2.05, 6.02, 6.12, 6.13 
	 

	 	(b)
	 	6.07, 6.08 
	 

	 	(c)
	 	11.02 
	§ 317

	 	(a)(1)
	 	6.03 
	 

	 	(a)(2)
	 	6.10 
	 

	 	(b)
	 	2.03 
	§ 318

	 	 	 	11.15 

i

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1
	 	 	 	 
	Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions

	 	 	1	 
	Section 1.02. Rules of Construction

	 	 	13	 
	Section 1.03. Table of Contents; Headings

	 	 	14	 
	Section 1.04. Form of Documents Delivered to Trustee

	 	 	14	 
	Section 1.05. Holder Communications; Acts of Holders

	 	 	14	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	The Notes
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Form and Dating

	 	 	16	 
	Section 2.02. Execution, Authentication and Delivery

	 	 	16	 
	Section 2.03. Transfer Agent, Registrar and Paying Agent

	 	 	18	 
	Section 2.04. Paying Agent to Hold Money in Trust

	 	 	19	 
	Section 2.05. Payment of Principal and Interest; Principal and Interest Rights Preserved

	 	 	19	 
	Section 2.06. Holder Lists

	 	 	20	 
	Section 2.07. Transfer and Exchange

	 	 	20	 
	Section 2.08. Replacement Notes

	 	 	23	 
	Section 2.09. Temporary Notes

	 	 	23	 
	Section 2.10. Cancellation

	 	 	24	 
	Section 2.11. Defaulted Interest

	 	 	24	 
	Section 2.12. CUSIP and ISIN Numbers

	 	 	24	 
	Section 2.13. Open Market Purchases

	 	 	24	 
	Section 2.14. Issuance Of Additional Notes

	 	 	25	 
	Section 2.15. One Class Of Notes

	 	 	25	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Redemption
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Right of Redemption

	 	 	25	 
	Section 3.02. Applicability of Article

	 	 	27	 
	Section 3.03. Election to Redeem; Notice to Trustee

	 	 	27	 
	Section 3.04. Notice of Redemption by the Company

	 	 	27	 
	Section 3.05. Deposit of Redemption Price

	 	 	28	 
	Section 3.06. Effect of Notice of Redemption

	 	 	28	 
	Section 3.07. Notes Redeemed In Part

	 	 	29	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Payment of Principal and Interest Under the Notes

	 	 	29	 

ii

 

	 	 	 	 	 
	 	 	Page
	Section 4.02. Maintenance of Office or Agency

	 	 	29	 
	Section 4.03. Money for Note Payments to Be Held in Trust

	 	 	29	 
	Section 4.04. Maintenance of Corporate Existence

	 	 	31	 
	Section 4.05. Payment of Taxes and Claims

	 	 	31	 
	Section 4.06. Payment of Additional Amounts

	 	 	31	 
	Section 4.07. Reporting Requirements

	 	 	34	 
	Section 4.08. Available Information

	 	 	35	 
	Section 4.09. Limitations on the Company

	 	 	35	 
	Section 4.10. Limitation on Transactions with Affiliates

	 	 	36	 
	Section 4.11. Repurchase of Notes upon a Change of Control

	 	 	36	 
	Section 4.12. Additional Interest

	 	 	36	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Limitation on Consolidation, Merger or Transfer of Assets

	 	 	37	 
	Section 5c.02. Successor Substituted

	 	 	38	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	Events of Default and Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Events of Default

	 	 	38	 
	Section 6.02. Acceleration of Maturity, Rescission and Amendment

	 	 	40	 
	Section 6.03. Collection Suit by Trustee

	 	 	41	 
	Section 6.04. Other Remedies

	 	 	41	 
	Section 6.05. Trustee May Enforce Claims Without Possession of Notes

	 	 	41	 
	Section 6.06. Application of Money Collected

	 	 	41	 
	Section 6.07. Limitation on Suits

	 	 	42	 
	Section 6.08. Rights of Holders to Receive Principal and Interest

	 	 	42	 
	Section 6.09. Restoration of Rights and Remedies

	 	 	42	 
	Section 6.10. Trustee May File Proofs of Claim

	 	 	43	 
	Section 6.11. Delay or Omission Not Waiver

	 	 	43	 
	Section 6.12. Control by Holders

	 	 	43	 
	Section 6.13. Waiver of Past Defaults and Events of Default

	 	 	43	 
	Section 6.14. Rights and Remedies Cumulative

	 	 	44	 
	Section 6.15. Waiver of Stay or Extension Laws

	 	 	44	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Trustee and Agents
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Duties of Trustee and Agents

	 	 	44	 
	Section 7.02. Rights of Trustee

	 	 	45	 
	Section 7.03. Individual Rights of Trustee

	 	 	47	 
	Section 7.04. Trustee’s Disclaimer

	 	 	47	 
	Section 7.05. Notice of Defaults and Events of Default

	 	 	47	 
	Section 7.06. Compensation and Indemnity

	 	 	47	 
	Section 7.07. Replacement of Trustee

	 	 	49	 

iii

 

	 	 	 	 	 
	 	 	Page
	Section 7.08. Successor Trustee by Merger

	 	 	50	 
	Section 7.09. Eligibility; Disqualification

	 	 	50	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Discharge of Indenture; Defeasance
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Discharge of Liability on Notes

	 	 	50	 
	Section 8.02. Conditions to Defeasance

	 	 	51	 
	Section 8.03. Application of Trust Money

	 	 	53	 
	Section 8.04. Repayment to Company

	 	 	53	 
	Section 8.05. Indemnity for U.S. Governmental Obligations

	 	 	53	 
	Section 8.06. Reinstatement

	 	 	53	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Amendments
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Without Consent of Holders

	 	 	54	 
	Section 9.02. With Consent of Holders

	 	 	55	 
	Section 9.03. Revocation and Effect of Consents and Waivers

	 	 	56	 
	Section 9.04. Notation on or Exchange of Notes

	 	 	57	 
	Section 9.05. Trustee to Sign Amendments

	 	 	57	 
	Section 9.06. Payment for Consent

	 	 	57	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Guarantee
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. The Note Guaranty

	 	 	57	 
	Section 10.02. Guaranty Unconditional

	 	 	57	 
	Section 10.03. Discharge; Reinstatement

	 	 	58	 
	Section 10.04. Waiver by the Guarantors

	 	 	58	 
	Section 10.05. Subrogation and Contribution

	 	 	58	 
	Section 10.06. Stay of Acceleration

	 	 	59	 
	Section 10.07. Limitation on Amount of Guaranty

	 	 	59	 
	Section 10.08. Execution and Delivery of Guaranty

	 	 	59	 
	Section 10.09. Release of Guaranty

	 	 	59	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Provisions of Indenture and Notes for the Sole Benefit of Parties and Holders
of Notes

	 	 	60	 
	Section 11.02. Notices

	 	 	60	 
	Section 11.03. Officers’ Certificate and Opinion of Counsel as to Conditions Precedent

	 	 	61	 
	Section 11.04. Statements Required in Officers’ Certificate or Opinion of Counsel

	 	 	61	 
	Section 11.05. Rules by Trustee, Registrar, Paying Agent and Transfer Agents

	 	 	62	 
	Section 11.06. Currency Indemnity

	 	 	62	 
	Section 11.07. No Recourse Against Others

	 	 	63	 

iv

 

	 	 	 	 	 
	 	 	Page
	Section 11.08. Legal Holidays

	 	 	63	 
	Section 11.09. Governing Law

	 	 	63	 
	Section 11.10. Consent to Jurisdiction; Waiver of Immunities

	 	 	63	 
	Section 11.11. Successors and Assigns

	 	 	64	 
	Section 11.12. Multiple Originals

	 	 	64	 
	Section 11.13. Severability Clause

	 	 	65	 
	Section 11.14. Force Majeure

	 	 	65	 
	Section 11.15. Trust Indenture Act Of 1939

	 	 	65	 

EXHIBITS:

	 	 	 	 	 
	EXHIBIT A

	 	—
	 	Form of Note
	EXHIBIT B

	 	—
	 	Form of Supplemental Indenture
	EXHIBIT C

	 	—
	 	Form of Transfer Notice
	EXHIBIT D

	 	—
	 	Form of Certificate for Transfer from Restricted Global
Note or Certificated Note Bearing a Securities Act
Legend to Regulation S Global Note or Certificated Note
Not Bearing a Securities Act Legend

	EXHIBIT E

	 	—
	 	Form of Transfer Certificate for Transfer from
Regulation S Global Note or Certificated Note Not
Bearing a Securities Act Legend to Restricted Global
Note or Certificated Note Bearing a Securities Act
Legend

	EXHIBIT F

	 	—
	 	Form of Certificate for Removal of the Securities Act
Legend on a Certificated Note

v

 

     INDENTURE, dated as of April 25, 2007, among TAM CAPITAL INC., an exempted company
incorporated with limited liability in the Cayman Islands, as the Company, the GUARANTORS party
hereto (the “Guarantors”), THE BANK OF NEW YORK, as Trustee, Registrar, Transfer Agent and
Principal Paying Agent and THE BANK OF NEW YORK (LUXEMBOURG) S.A., as Luxembourg Paying Agent and
Transfer Agent.

RECITALS

     The Company has duly authorized (i) the issue of 7.375% Senior Guaranteed Notes Due 2017 (the
“Initial Notes”), initially in an aggregate principal amount of U.S.$300,000,000, (ii) if and when
issued, the Company’s 7.375% Senior Guaranteed Notes Due 2017 that may be issued from time to time
in exchange for Initial Notes pursuant to a Registration Rights Agreement, as hereinafter defined
(the “Exchange Notes” and, together with the Initial Notes and any Additional Notes, as hereinafter
defined, the “Notes”) and (iii) has duly authorized the execution and delivery of this Indenture.

     All things necessary have been done to make the Notes when executed and authenticated and
delivered hereunder and duly issued, the valid obligations of the Company, and to make this
Indenture a valid agreement of the Company.

     In addition, the Guarantors party hereto have duly authorized the execution and delivery of
the Indenture as guarantors of the Notes.

     Each Guarantor has done all things necessary to make the Note Guarantees, when the Notes are
executed by the Company and authenticated and delivered by the Trustee and duly issued by the
Company, the valid obligations of such Guarantor, and to make the Indenture a valid agreement of
such Guarantor.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders, as
follows:

ARTICLE 1

Definitions and Other Provisions of General Application

     Section 1.01 . Definitions.

     “Act,” when used with respect to any Holder, has the meaning specified in Section 1.05.

     “Additional Amounts” has the meaning specified in Section 4.06.

     “Additional Interest” means all amounts, if any, payable pursuant to Section 4.2 hereof or the
Registration Rights Agreement.

1

 

     “Additional Notes” means any notes issued under the Indenture in addition to the Initial
Notes, including any Exchange Notes issued in exchange for such Additional Notes, having the same
terms in all respects as the Initial Notes except for the issue date, issue price and that interest
will accrue on the Additional Notes from their date of issuance.

     “Affiliate” means, with respect to any specified Person, (a) any other Person which, directly
or indirectly, is in control of, is controlled by or is under common control with such specified
Person or (b) any other Person who is a director or officer (i) of such specified Person, (ii) of
any subsidiary of such specified Person or (iii) of any Person described in clause (a) above. For
purposes of this definition, control of a Person means the power, direct or indirect, to direct or
cause the direction of the management and policies of such Person whether by contract or otherwise,
and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Affiliate Transaction” has the meaning specified in Section 4.10.

     “Agents” means each of the Registrar, the Transfer Agents and the Paying Agents, including the
Principal Paying Agent, individually, an “Agent.”

     “Applicable Procedures” means the applicable procedures of DTC, Euroclear and Clearstream,
Luxembourg, in each case to the extent applicable.

     “Authenticating Agent” has the meaning specified in Section 2.02.

     “Authorized Denomination” has the meaning specified in Section 2.02.

     “Board of Directors” means the Board of Directors of the Company, or any Guarantor, as the
case may be, or any committee thereof duly authorized to act on behalf of such Board of Directors.

     “Board Resolution” means a copy of a resolution certified by the Secretary, the Assistant
Secretary or another Officer or legal counsel performing corporate secretarial functions of the
Company to have been duly adopted by the Board of Directors and to be in full force and effect on
the date of such certification and delivered to the Trustee.

     “Brazil” means the Federative Republic of Brazil.

     “Brazilian Corporation Law” means Brazilian Federal Law No. 6.404/76, as amended from time to
time.

     “Brazilian GAAP” means accounting practices prescribed by the Brazilian Corporation Law, the
rules and regulations issued by the CVM and the accounting standards issued by the Brazilian
Institute of Independent Accountants (Instituto dos Auditores Independentes do Brasil), in each
case as in effect from time to time.

     “Business Day” means any day other than a Saturday, a Sunday or a legal holiday in the Cayman
Islands, Brazil or the United States or a day on which banking institutions or trust

 

 

companies are authorized or obligated by law to close in the Cayman Islands, The City of New
York, USA or São Paulo, Brazil.

     “Capital Lease Obligations” means, with respect to any Person, any obligation which is
required to be classified and accounted for as a capital lease on the face of a balance sheet of
such Person prepared in accordance with Brazilian GAAP; the amount of such obligation shall be the
capitalized amount thereof, determined in accordance with Brazilian GAAP; and the Stated Maturity
thereof shall be the date of the last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be terminated by the lessee without payment of a
penalty.

     “Capital Stock” means, with respect to any Person, any and all shares of stock, interests,
rights to purchase, warrants, options, participations or other equivalents of or interests in
(however designated, whether voting or non-voting) such person’s equity, including any preferred
stock, but excluding any debt securities convertible into or exchangeable for such equity.

     “Cayman Islands” means the Cayman Islands, a British Overseas Territory.

     “Certificated Note” has the meaning specified in Section 2.01.

     “Change of Control” means:

     (i) the direct or indirect sale or transfer of all or substantially all the assets of TAM S.A.
to another Person (in each case, unless such other Person is a Permitted Holder); or

     (ii) the consummation of any transaction (including, without limitation, by merger,
consolidation, acquisition or any other means) as a result of which any “person” or “group” (as
such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act, other than
Permitted Holders) is or becomes the “beneficial owner” (as such term is used in Rules 13d-3 under
the Exchange Act), directly or indirectly, of more than 50% of the total voting power of the Voting
Stock of TAM S.A.; or

     (iii) the first day on which a majority of the Board of Directors of TAM S.A. consists of
persons who were elected by shareholders who are not Permitted Holders.

     “Clearstream, Luxembourg” means Clearstream Banking, société anonyme, Luxembourg.

     “Closing Date” means April 25, 2007 or such later date on which the Notes are issued
hereunder.

     “Company” means TAM Capital Inc. until replaced by a successor thereof, and, thereafter,
includes the successor for purposes of any provision contained herein.

     “Company Order” means a written order signed in the name of the Company by an Officer.

 

 

     “Comparable Treasury Issue” means the U.S. Treasury security selected by the Quotation Agent
as having a maturity comparable to the remaining term of the notes to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining term of such notes.

     “Comparable Treasury Price” means with respect to any redemption date for notes, the average
of two Reference Treasury Dealer Quotations for such redemption date.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered (which office as of the date of this
Indenture is located at 101 Barclay Street, Floor Four East, New York, NY 10286).

     “covenant defeasance option” has the meaning specified in Section 8.01.

     “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official
under any bankruptcy law.

     “CVM” means the Brazilian Securities Commission (Comissão de Valores Mobiliários).

     “Debt” means, with respect to any Person, without duplication:

     (i) the principal of and premium, if any, in respect of (a) indebtedness of such Person for
money borrowed and (b) indebtedness evidenced by notes, debentures, bonds or other similar
instruments for the payment of which such Person is responsible or liable;

     (ii) all Capital Lease Obligations of such Person;

     (iii) all obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations of such Person and all obligations of such Person under
any title retention agreement (but excluding trade accounts payable or other short term obligations
to suppliers payable within 180 days, in each case arising in the ordinary course of business);

     (iv) all obligations of such Person for the reimbursement of any obligor on any letter of
credit, banker’s acceptance or similar credit transaction (other than obligations with respect to
letters of credit securing obligations other than obligations described in clauses (i) through
(iii) above) entered into in the ordinary course of business of such Person to the extent such
letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is
reimbursed no later than the tenth Business Day following receipt by such Person of a demand for
reimbursement following payment on the letter of credit);

     (v) all Hedging Obligations of such Person;

     (vi) all obligations of the type referred to in clauses (i) through (iv) of other Persons and
all dividends of other Persons for the payment of which, in either case, such Person is responsible
or liable, directly or indirectly, as obligor, guarantor or otherwise, including by

 

 

means of any guarantee (other than obligations of other Persons that are customers or
suppliers of such Person for which such Person is or becomes so responsible or liable in the
ordinary course of business to (but only to) the extent that such Person does not, or is not
required to, make payment in respect thereof);

     (vii) all obligations of the type referred to in clauses (i) through (v) of other Persons
secured by any Lien on any property or asset of such Person (whether or not such obligation is
assumed by such Person), the amount of such obligation being deemed to be the lesser of the value
of such property or assets or the amount of the obligation so secured; and

     (viii) any other obligations of such Person which are required to be, or are in such Person’s
financial statements, recorded or treated as debt under Brazilian GAAP.

     “Default” means any event which is, or after notice or passage of time or both would be, an
Event of Default.

     “defeasance trust” has the meaning specified in Section 8.02.

     “Depositary” means DTC or any successor depositary for the Notes.

     “DTC” means The Depository Trust Company.

     “Euroclear” means Euroclear Bank S.A./N.V.

     “Event of Default” has the meaning specified in Section 6.01.

     “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

     “Exchange Notes” means the Notes issued by the Company and guaranteed by the Guarantors under
the Indenture in exchange for, and in an aggregate principal amount equal to, the Initial Notes in
compliance with the terms of a Registration Rights Agreement and containing terms substantially
identical to the Initial Notes (except that (i) such Exchange Notes will be registered under the
Securities Act and will not be subject to transfer restrictions or bear the Restricted Legend, and
(ii) the provisions relating to Additional Interest will be eliminated).

     “Exchange Offer” means an offer by the Company to the Holders of the Initial Notes to exchange
outstanding Notes for Exchange Notes, as provided for in a Registration Rights Agreement.

     “Exchange Offer Registration Statement” has the meaning set forth in the Registration Rights
Agreement.

     “Facsimile Instruction” shall mean any Written Direction transmitted to the Trustee or any
Agent by means of facsimile transmission.

     “Facsimile Signature” shall mean any signature transmitted to the Trustee or any Agent by
means of facsimile transmission.

 

 

     “Fitch” means Fitch Ratings, Ltd. and its successors.

     “Global Note” means a global note representing the Notes substantially in the form attached
hereto as Exhibit A.

     “Governing Document” shall mean any written instrument pursuant to which the Trustee or any
Agent acts in any fiduciary or agency capacity on behalf of the Company or on behalf of the
Holders.

     “guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Debt or other obligation of any Person and any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Debt or other obligation of such Person (whether arising
by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods,
securities or services, to take or pay, or to maintain financial statement conditions or otherwise)
or (ii) entered into for purposes of assuring in any other manner the obligee of such Debt or other
obligation of the payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part); provided, however, that the term “guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The term “guarantee” used as a verb has
a corresponding meaning.

     “Guarantor” means (i) each of TAM S.A. and TAM Linhas Aéreas S.A., and (ii) each Person that
executes a supplemental indenture in the form of Exhibit B to the Indenture providing for the
guaranty of the payment of the Notes, or any successor obligor under the Note Guaranty pursuant to
Section 5.01, in each case unless and until such Guarantor is released from its Note Guaranty
pursuant to the Indenture.

     “Hedging Agreement” means (i) any interest rate swap agreement, interest rate cap agreement or
other agreement designed to protect against fluctuations in interest rates, (ii) any foreign
exchange forward contract, currency swap agreement or other agreement designed to protect against
fluctuations in foreign exchange rates or (iii) any commodity or raw material futures contract or
any other agreement designed to protect against fluctuations in raw material prices.

     “Hedging Obligations” means, with respect to any Person, the obligations of such Person
pursuant to any interest rate swap agreement, foreign currency exchange agreement, interest rate
collar agreement, option or futures contract or other similar agreement or arrangement designed to
protect such Person against changes in interest rates or foreign exchange rates.

     “Holder” or “Noteholder” means the Person in whose name a Note is registered in the Register.

     “Incumbency Certificate” shall mean the list of authorized signatories of the Company on file
with the Trustee.

 

 

     “Indenture” means this Indenture, as amended or supplemented from time to time in accordance
with the provisions hereof.

     “Initial Purchasers” means the initial purchasers party to a purchase agreement with the
Company and the Guarantors relating to the sale of the Initial Notes by the Company.

     “Initial Notes” means the Notes issued on the Issue Date and any Notes issued in replacement
thereof, but not including any Exchange Notes issued in exchange therefor.

     “interest” on a Note means the interest on such Note (including any Additional Amounts payable
by the Company in respect of such interest).

     “Interest Payment Date” means the Payment Date of an installment of interest on the Notes.

     “issue” means issue, assume, guarantee, incur or otherwise become liable for; provided,
however, that any Debt or Capital Stock of a Person existing at the time such Person becomes a
Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be
issued by such Subsidiary at the time it becomes a Subsidiary; and the term “issuance” has a
corresponding meaning.

     “Issue Date” means April 25, 2007.

     “legal defeasance option” has the meaning specified in Section 8.01.

     “Lien” means any mortgage, pledge, security interest, encumbrance, conditional sale or other
title retention agreement or other similar lien.

     “Maturity” means, when used with respect to any Note, the date on which the outstanding
principal of and interest on such Note becomes due and payable as therein or herein provided,
whether by declaration of acceleration, call for redemption or otherwise.

     “Note Guaranty” means the guaranty of the Notes by a Guarantor pursuant to this Indenture.

     “Notes” has the meaning specified in the first paragraph of the Recitals in this Indenture and
shall be in the form of Note set forth in Exhibit A.

     “Offering Memorandum” means the offering memorandum dated April 20, 2007 relating to the
Notes.

     “Officer” means the president or chief executive officer, any vice president, the chief
financial officer, the treasurer or any assistant treasurer, or the secretary or any assistant
secretary, of the Company or any Guarantor, as the case may be, or any other Person duly appointed
by the shareholders of the Company, or such Guarantor, as the case may be, or the Board of
Directors to perform corporate duties.

 

 

     “Officers’ Certificate” means a certificate signed by any two Officers of the Company or any
Guarantor, as the case may be, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of legal counsel of recognized standing (who may
be an employee of or counsel to the Company or any Guarantor) and who shall be reasonably
acceptable to the Trustee, which opinion is reasonably satisfactory to the Trustee.

     “Outstanding” means, when used with respect to Notes, as of the date of determination, all
Notes theretofore authenticated and delivered under this Indenture, except:

     (i) Notes theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

     (ii) Notes for whose payment or redemption money in the necessary amount has been theretofore
deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the
Holders of such Notes; provided that, if such Notes are to be redeemed pursuant to Section 3.01(b),
notice of such redemption has been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made;

     (iii) Notes, except to the extent provided in Sections 8.01 and 8.02, with respect to which
the Company has effected legal defeasance and/or covenant defeasance as provided in Article 8; and

     (iv) Notes in exchange for or in lieu of which other Notes have been authenticated and
delivered pursuant to this Indenture, other than any such Notes in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such Notes are held by a bona fide
purchaser or protected purchaser in whose hands such Notes are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of
Outstanding Notes have given any request, demand, authorization, direction, consent, notice or
waiver hereunder, Notes owned by the Company or any of its Affiliates shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, consent, notice or waiver, only
Notes which a Responsible Officer of the Trustee has received written notice at its address
specified herein of being so owned shall be so disregarded. Notes so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the
Company, or any other obligor upon the Notes or any of its or such other obligor’s Affiliates.

     “Paying Agent” means The Bank of New York (Luxembourg) S.A. and any other Person authorized by
the Company to pay the principal of or interest on any Notes on behalf of the Company hereunder,
including the Principal Paying Agent.

 

 

     “Payment Date” means the date on which payment of interest on and/or principal of the Notes is
due.

     “Payment Default” has the meaning specified in Section 6.01.

     “Permitted Holders” means any or all of the following

     (i) an immediate family member of Noemy Almeida Oliveiro Amaro, Maria Claudia Oliveira Amaro
Demenato, Maurcio Rolim Amaro, Marcos Adolfo Tadeu Senamo Amaro and João Francisco Amaro or any
Affiliate or immediate family member thereof; immediate family member of a person means the spouse,
lineal descendants, father, mother, brother, sister, father-in-law, mother-in-law, brother-in-law
and sister-in-law of such person; and

     (ii) any Person the Voting Stock of which (or in the case of a trust, the beneficial interests
in which) are owned at least 51% by Persons specified in clause (i).

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

     “Primary Treasury Dealer” means a primary U.S. government securities dealer in New York City.

     “principal” of a Note means the principal amount of such Note (including any Additional
Amounts payable by the Company in respect of such principal).

     “Principal Paying Agent” means The Bank of New York, until a successor Principal Paying Agent
shall have become such pursuant to the applicable provisions of this Indenture, and, thereafter,
“Principal Paying Agent” shall mean such successor Principal Paying Agent.

     “Proceeding” has the meaning specified in Section 11.10.

     “Process Agent” has the meaning specified in Section 11.10.

     “Quotation Agent” means the Reference Treasury Dealer appointed by the Company.

     “Rating Agency” means Standard & Poor’s or Fitch; or if Standard & Poor’s or Fitch, or both,
are not making rating of the notes publicly available, an internationally recognized U.S. rating
agency or agencies, as the case may be, selected by us, which will be substituted for Standard &
Poor’s or Fitch, or both, as the case may be.

     “Rating Decline” means that at any time within 90 days (which period shall be extended so long
as the rating of the notes is under publicly announced consideration for possible down grade by
either Rating Agency) after the date of public notice of a Change of Control, or of our intention
or that of any Person to effect a Change of Control, the then-applicable rating of the notes is
decreased by each Rating Agency; provided that any such Rating Decline is in whole or in part in
connection with a Change in Control.

 

 

     “Record Date” means, when used with respect to the interest on the Notes payable on any
Interest Payment Date, the April 10 and October 10 (whether or not a Business Day), as the case may
be, immediately preceding such Interest Payment Date.

     “Redemption Date” means, when used with respect to any Note to be redeemed pursuant to Section
3.01(b), the date fixed for such redemption by or pursuant to this Indenture.

     “Redemption Price” means, when used with respect to any Notes to be redeemed pursuant to
Section 3.01(b), the price at which it is to be redeemed pursuant to this Indenture.

     “Reference Treasury Dealer” means each of Citigroup Global Markets Inc. and UBS Securities
LLC, and their respective successors; provided, however, that if either of the foregoing shall
cease to be a Primary Treasury Dealer, we will substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding such redemption date.

     “Register” has the meaning specified in Section 2.03.

     “Registrar” means The Bank of New York, until a successor Registrar shall have become such
pursuant to the applicable provisions of this Indenture, and, thereafter, “Registrar” shall mean
such successor Registrar.

     “Registration Rights Agreement” means the registration rights agreement entered into by the
Company, the Guarantors and the Initial Purchasers with respect to the Notes on the Issue Date.

     “Regulation S” means Regulation S under the Securities Act, as in effect from time to time.

     “Regulation S Global Note” means one or more permanent Global Notes in definitive fully
registered form without interest coupons representing Notes sold outside of the United States
pursuant to Regulation S.

     “Relevant Date” means, with respect to any payment on a Note, whichever is the later of: (i)
the date on which such payment first becomes due; and (ii) if the full amount payable has not been
received by the Trustee or a Paying Agent on or prior to such due date, the date on which notice is
given to the Holders that the full amount has been received by the Trustee.

     “Responsible Officer” means any officer of the Trustee or any Agent in Corporate Trust
Administration with direct responsibility for the administration of this Indenture.

 

 

     “Restricted Global Note” means one or more permanent Global Notes in definitive fully
registered form without interest coupons sold to “qualified institutional buyers” (as such term is
defined in Rule 144A) pursuant to Rule 144A.

     “Restricted Period” means the relevant 40-day distribution compliance period as defined in
Regulation S.

     “Rule 144A” means Rule 144A under the Securities Act, as in effect from time to time.

     “SEC” means the U.S. Securities and Exchange Commission.

     “Securities Act” means the U.S. Securities Act of 1933, as amended.

     “Securities Act Legend” means the following legend, printed in capital letters:

     THIS NOTE (AND RELATED NOTE GUARANTEES) HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A
BENEFICIAL INTEREST HEREIN, THE ACQUIRER (1) REPRESENTS THAT (A) IT AND ANY ACCOUNT FOR WHICH IT IS
ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES
ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT OR (B) IT
IS NOT A U.S. PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT), AND (2) AGREES
FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE
OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH THE SECURITIES ACT AND ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ONLY (A) TO THE COMPANY, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (D) IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (E) PURSUANT
TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(E) ABOVE, THE COMPANY RESERVES THE RIGHT TO
REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE
REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE
AVAILABILITY OF ANY RULE 144 EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

 

     THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE ON SATISFACTION OF THE CONDITIONS SPECIFIED
IN THE INDENTURE REFERRED TO HEREIN.

     “Shelf Registration Statement” has the meaning set forth in the Registration Rights Agreement.

     “Significant Subsidiary” means any Subsidiary of TAM S.A. (or any successor) which at the time
of determination either (i) had assets which, as of the date of TAM S.A.’s (or such successor’s)
most recent quarterly consolidated balance sheet, constituted at least 10% of TAM S.A.’s (or such
successor’s) total assets on a consolidated basis as of such date or (ii) had revenues for the 12
month period ending on the date of TAM S.A.’s (or such successor’s) most recent quarterly
consolidated statement of income which constituted at least 10% of the TAM S.A.’s (or such
successor’s) total revenues on a consolidated basis for such period.

     “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

     “Stated Maturity” means, with respect to any security, the date specified in such security as
the fixed date on which the principal of such security is due and payable, including pursuant to
any mandatory redemption provision (but excluding any provision providing for the repurchase of
such security at the option of the Holder thereof upon the happening of any contingency unless such
contingency has occurred).

     “Subsidiary” means, in respect of any specified Person, any corporation, association,
partnership or other business entity of which more than 50% of the total voting power of shares of
Capital Stock or other interests (including partnership interests) 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.

     “Taxing Jurisdiction” has the meaning specified in Section 4.06.

     “Transfer Agent” means The Bank of New York and any other Person authorized by the Company to
effectuate the exchange or transfer of any Note on behalf of the Company hereunder.

     “Treasury Rate” means, with respect to any redemption date, (1) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.l5 (519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if
no maturity is within three months before or after the maturity date of the notes to be redeemed,
yields for the two published maturities most closely corresponding to the Comparable Treasury Issue
shall be determined, and the Treasury Rate shall be interpolated or extrapolated from such yields
on a straight-line basis, rounding to the nearest month) or (2) if such release (or any successor
release) is not published during the week preceding the calculation

 

 

date or does not contain such yields, the rate per year equal to the semi-annual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for such redemption date. The Treasury Rate will be calculated on the third business day
preceding the redemption date.

     “Trust Indenture Act” means the U.S. Trust Indenture Act of 1939, as amended.

     “Trustee” means The Bank of New York, until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture and, thereafter, “Trustee” shall mean such
successor Trustee.

     “United States” and “U.S.” means the United States of America (including the States and the
District of Columbia) and its territories, its possessions and other areas subject to its
jurisdiction.

     “U.S. Dollars” and “U.S.$” each mean the currency of the United States.

     “U.S. Government Obligations” means direct obligations (or certificates representing an
ownership interest in such obligations) of the United States (including any agency or
instrumentality thereof) for the payment of which the full faith and credit of the United States is
pledged and which are not callable at the issuer’s option.

     “Voting Stock” means, with respect to any Person, Capital Stock of any class or kind
ordinarily having the power to vote for the election of directors, managers or other voting members
of the governing body of such Person.

     “Wholly-Owned Subsidiary” means a Subsidiary all of the Capital Stock of which (other than
directors’ qualifying shares) is owned by the Company or another Wholly-Owned Subsidiary.

     “Written Direction” shall mean any written instrument, directing the Trustee or any Agent to
take any action that is signed by an authorized representative of the Company whose signature
appears on the Incumbency Certificate.

     Section 1.02. Rules of Construction. (a) For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

     (i) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

     (ii) the words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision;

     (iii) “or” is not exclusive; and

 

 

     (iv) “including” means including, without limitation;

     (v) any reference to an “Article”, a “Section” or an “Exhibit” refers to an Article, a
Section or an Exhibit, as the case may be, of this Indenture.

     (b) All accounting terms not otherwise defined herein shall have the meanings assigned to them
in accordance with Brazilian GAAP.

     (c) For purposes of the definitions set forth in Article 1 and this Indenture generally, all
calculations and determinations shall be made in accordance with Brazilian GAAP and shall be based
upon the consolidated financial statements of GLAI and its Subsidiaries prepared in accordance with
Brazilian GAAP.

     Section 1.03. Table of Contents; Headings. The table of contents and headings of the
Articles and Sections of this Indenture have been inserted for convenience of reference only, are
not intended to be considered a part hereof and shall not modify or restrict any of the terms or
provisions hereof.

     Section 1.04. Form of Documents Delivered to Trustee. In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person, it is not necessary
that all such matters be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to other matters, and
any such Person may certify or give an opinion as to such matters in one or several documents.

     Any certificate or opinion of an Officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
Officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his or her certificate or opinion is
based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an Officer or
Officers of the Company stating that the information with respect to such factual matters is in the
possession of the Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such matters are
erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

     Section 1.05. Holder Communications; Acts of Holders. (a) The rights of Holders to
communicate with other Holders with respect to the Indenture or the Notes are as provided by the
Trust Indenture Act, and the Company, the Guarantors and the Trustee shall comply with the
requirements of Trust Indenture Act Sections 312(a) and 312(b). Neither the Company, the

 

 

Guarantors nor the Trustee will be held accountable by reason of any disclosure of information
as to names and addresses of Holders made pursuant to the Trust Indenture Act.

     (b) (i) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in Person or by agents
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and the Company, if made in the manner provided in this Section 1.05.

     (ii) The Trustee may make reasonable rules for action by or at a meeting of Holders,
which will be binding on all the Holders.

     (c) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner that the Trustee reviewing such instrument or writing deems
sufficient.

     (d) The principal amount and serial numbers of Notes held by any Person, and the date of
holding the same, shall be proved by the Register.

     (e) If the Company solicits from the Holders of Notes any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to
a Board Resolution, fix in advance a record date for the determination of Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall not have any obligation to do so. Such record date shall be the record date
specified in or pursuant to such Board Resolution, which shall be a date not earlier than the date
30 days prior to the first solicitation of Holders generally in connection therewith and not later
than the date such solicitation is completed. If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be given before or after
such record date, but only the Holders of record at the close of business on such record date shall
be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion
of Outstanding Notes have authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Notes shall
be computed as of such record date; provided that no such authorization, agreement or consent by
the Holders on such record date shall be deemed effective

 

 

unless it shall become effective pursuant to the provisions of this Indenture not later than
eleven months after the record date.

     (f) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Note shall bind every future Holder of the same Note and the Holder of every Note
issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance
thereon, whether or not notation of such action is made upon such Note.

ARTICLE 2

The Notes

     Section 2.01. Form and Dating. The Notes and the Trustee’s certificate of authentication
shall be substantially in the form of Note set forth in Exhibit A, which is hereby incorporated in
and expressly made a part of this Indenture. The Notes may have such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by this Indenture and
may have such letters, numbers or other marks of identification and such notations, legends or
endorsements as may be required to comply with any law, stock exchange rule, agreement to which the
Company is subject, if any, or usage, provided that any such notation, legend or endorsement is in
a form acceptable to the Company.

     Each Global Note representing Initial Notes shall be dated the Issue Date, and each Global
Note representing Exchange Notes shall be dated the relevant exchange date. Each definitive
certificated Note (“Certificated Note”) shall be dated the date of its authentication.

     The Notes shall be printed, lithographed or engraved or produced by any combination of these
methods or may be produced in any other manner permitted by the rules of any stock exchange on
which the Notes may be listed, if any, all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

     Section 2.02. Execution, Authentication and Delivery. (a) One Director of the Company shall
sign the Notes for the Company by manual or facsimile signature.

     (i) If a Director whose signature is on a Note no longer holds that office at the time
the Trustee authenticates the Note, the Note shall be valid nevertheless.

     (ii) A Note shall not be valid until an authorized signatory of the Trustee or an
authenticating agent manually signs the certificate of authentication on the Note upon
Company Order. Such signature shall be conclusive evidence that the Note has been
authenticated under this Indenture. Such Company Order shall specify the amount of the
Notes to be authenticated and the date on which the original issue of Notes is to be
authenticated.

     (iii) The Trustee or an authenticating agent shall authenticate and deliver (A)
initially Initial Notes on the Issue Date in an aggregate principal amount of

 

 

U.S.$300,000,000, (B) any Additional Notes for original issue from time to time after
the Issue Date in such principal amounts as set forth in Section 2.14 and (C) any Exchange
Notes for issue only in exchange for a like principal amount of Initial Notes, in each case
upon a Company Order.

     (iv) The Company may from time to time, without the consent of the Holders of the
Notes, create and issue Additional Notes having the same terms and conditions as the Notes
in all respects, except for issue date, issue price and the first payment of interest
thereon. Additional Notes issued in this manner shall be consolidated with and shall form a
single series for non-U.S. federal income tax purposes with the previously outstanding
Notes. Unless the context otherwise requires, for all purposes of this Indenture and the
form of Note attached hereto, references to the Notes include any Additional Notes actually
issued.

     (v) The Notes shall be issued in fully registered form without coupons attached in
minimum denominations of U.S.$100,000 and integral multiples of U.S.$1,000 in excess thereof
(each, an “Authorized Denomination”).

     (b) The Trustee may appoint an authenticating agent, with a copy of such appointment to the
Company, to authenticate the Notes (the “Authenticating Agent”). Unless limited by the terms of
such appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes authentication by an
Authenticating Agent. An Authenticating Agent has the same rights as the Registrar or any Transfer
Agent or Paying Agent or agent for service of notices and demands.

     (i) Any corporation into which any Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
consolidation or conversion to which any Authenticating Agent shall be a party, or any
corporation succeeding to the corporate trust business (and this transaction in particular)
of any Authenticating Agent, shall be the successor of such Authenticating Agent hereunder,
without the execution or filing of any further act on the part of the parties hereto or such
Authenticating Agent or such successor corporation.

     (ii) Any Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and the Company. The Trustee may at any time terminate the
agency of any Authenticating Agent by giving written notice of termination to such
Authenticating Agent and the Company. Upon receiving such notice of resignation or upon
such a termination, the Trustee may appoint a successor Authenticating Agent reasonably
acceptable to the Company and shall give written notice of such appointment to the Company.

     (iii) The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services and reimbursement for its reasonable expenses
relating thereto.

 

 

     Section 2.03. Transfer Agent, Registrar and Paying Agent. (a) Subject to such reasonable
regulations as the Company may prescribe, the books of the Company for the exchange, registration,
and registration of transfer of Notes shall be kept at the office of the Registrar (such books
maintained in such office and in any other office or agency designated for such purpose being
herein referred to as the “Register”). The Company shall also cause the Trustee to maintain books
for the exchange, registration and registration of transfer of Notes. The Trustee shall notify the
Registrar and the Registrar shall notify the Trustee, when necessary, upon any exchange,
registration or registration of transfer of any Notes and shall cause their respective books to be
amended accordingly. The Company may have one or more co-registrars and one or more additional
Transfer Agents or Paying Agents. The terms “Transfer Agent” and “Paying Agent” include any
additional transfer agent or paying agent, as the case may be. The term “Registrar” includes any
co-registrar.

     (i) For so long as the Notes are listed on the Official List of the Luxembourg Stock
Exchange and are traded on the Euro MTF market of such stock exchange, and such stock
exchange shall so require, the Company shall maintain a Paying Agent and Transfer Agent in
Luxembourg.

     (ii) The Company shall enter into any appropriate agency agreements with any Registrar,
Transfer Agent or Paying Agent not a party to this Indenture, which shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify the
Trustee of the name and address of any such agent. If the Company fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.06. The Company initially appoints
the Trustee as Registrar, Transfer Agent and Paying Agent, and The Bank of New York
(Luxembourg) S.A. as Paying Agent and Transfer Agent in Luxembourg in connection with the
Notes.

     (b) The Registrar shall keep a record of all the Notes and shall make such record available
during regular business hours for inspection upon the request of the Company provided a reasonable
amount of time prior to such inspection. Such books and records shall include notations as to
whether such Notes have been redeemed, or otherwise paid or cancelled, and, in the case of
mutilated, destroyed, defaced, stolen or lost Notes, whether such Notes have been replaced. In the
case of the replacement of any of the Notes, the Registrar shall keep a record of the Note so
replaced, and the Notes issued in replacement thereof. In the case of the cancellation of any of
the Notes, the Registrar shall keep a record of the Note so cancelled and the date on which such
Note was cancelled. Each Transfer Agent shall notify the Trustee and the Registrar of any
transfers or exchanges of Notes effected by it. The Registrar shall not be required to register
the transfer of or exchange Certificated Notes for a period of 15 days preceding any date of
selection of Notes for redemption, or register the transfer of or exchange any Certificated Notes
previously called for redemption.

     (c) All Notes surrendered for payment, redemption, registration of transfer or exchange shall
be cancelled by the relevant Transfer Agent or Paying Agent, Registrar or the Trustee, as the case
may be. Each Registrar, Paying Agent and Transfer Agent shall notify the Trustee of the surrender
and cancellation of such Notes and shall deliver such Notes to the Trustee. The

 

 

Trustee may destroy or cause to be destroyed all such Notes surrendered for payment,
redemption, registration of transfer or exchange and, if so destroyed, shall promptly deliver a
certificate of destruction to the Company.

     (d) The Paying Agent shall comply with applicable backup withholding tax and information
reporting requirements under the U.S. Internal Revenue Code of 1986, as amended, and the U.S.
Treasury Regulations promulgated thereunder with respect to payments made under the Notes
(including, to the extent required, the collection of Internal Revenue Service Forms W-8 and W-9
and the filing of U.S. Internal Revenue Service Forms 1099 and 1096).

     Section 2.04. Paying Agent to Hold Money in Trust. By 10:00 A.M. New York time, no later
than one Business Day prior to each Payment Date on any Note, the Company shall deposit with the
Principal Paying Agent in immediately available funds a sum sufficient to pay such principal and
interest when so becoming due (including any amounts under Section 4.06). The Company shall
request that the bank through which such payment is to be made agree to supply to the Principal
Paying Agent by 10:00 A.M. (New York time) two Business Days prior to the due date from any such
payment an irrevocable confirmation (by facsimile) of its intention to make such payment. The
Company shall require each Paying Agent (other than the Trustee and The Bank of New York
(Luxembourg) S.A. to agree in writing that such Paying Agent shall hold in trust, for the benefit
of Holders or the Trustee, all money held by such Paying Agent for the payment of principal and
interest on the Notes and shall notify the Trustee of any default by the Company in making any such
payment. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed by it. Upon complying with this Section 2.04, the
Paying Agent shall have no further liability for the money delivered to the Trustee.

     Each payment in full of principal, redemption amount, additional amounts and/or interest
payable under the Notes and this Indenture in respect of any Note made by or on behalf of the
Company or a Guarantor to or to the order of the Principal Paying Agent in the manner specified
herein or in the Notes on the date due shall be valid and effective to satisfy and discharge the
obligation of the Company or such Guarantor, as the case may be, to make payment of principal,
redemption amount, additional amounts and/or interest payable hereunder and under the Notes on such
date, provided, however, that the liability of the Principal Paying Agent hereunder shall not
exceed any amounts paid to it by the Company or such Guarantor, as the case may be, or held by it,
on behalf of the Holders hereunder.

     Section 2.05. Payment of Principal and Interest; Principal and Interest Rights Preserved.
(a) Except as otherwise provided herein for the redemption of the Notes, the payment of principal
of or interest on the Notes shall be allocated on a pro rata basis among all Outstanding Notes,
without preference or priority of any kind among the Notes.

     (b) Final payments in respect of any Note (whether upon redemption, declaration of
acceleration or otherwise) shall be made only against presentation and surrender of such Note at
the Corporate Trust Office, at the offices of the Trustee and, subject to any fiscal or other laws
and regulations applicable thereto, at the specified offices of any other Paying Agent appointed by
the Company.

 

 

     (c) Payment of the principal of any Note on a relevant Payment Date shall be made to the
Person in whose name such Note is registered in the Register at the close of business on the
fifteenth day (whether or not a Business Day) immediately preceding such Payment Date, by U.S.
Dollar check drawn on a bank in The City of New York and mailed to the Person entitled thereto at
its address as it appears on the Register, or by wire transfer to a U.S. Dollar account maintained
by the payee with a bank in The City of New York, provided that such Holder so elects by giving
written notice to such effect designating such account, upon application to the Trustee at least 15
days prior to such Payment Date.

     (d) Payment of interest on each Interest Payment Date with respect to any Note shall be made
to the Person in whose name such Note is registered on the Record Date immediately preceding such
Interest Payment Date by U.S. Dollar check drawn on a bank in The City of New York and mailed to
the Person entitled thereto at its address as it appears on the Register, or by wire transfer to a
U.S. Dollar account maintained by the payee with a bank in The City of New York, provided that the
Holder so elects by giving written notice to such effect designating such account, which is
received by the Trustee or a Paying Agent no later than the Record Date immediately preceding such
Interest Payment Date. Unless such designation is revoked, any such designation made by such
Holder with respect to such Note shall remain in effect with respect to any future payments with
respect to such Note payable to such Holder. The Company shall pay any administrative costs
imposed by banks in connection with making payments by wire transfer.

     If the Payment Date in respect of any Note is not a business day at the place in which it is
presented for payment, the Holder thereof shall not be entitled to payment of the amount due until
the next succeeding business day at such place and shall not be entitled to any further interest or
other payment in respect of any such delay.

     Notwithstanding the provisions of this Section 2.05, payments on Notes registered in the name
of DTC or its nominee shall be effected in accordance with the Applicable Procedures.

     Section 2.06. Holder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable, the most recent list available to it of the names and addresses of Holders.
If the Trustee is not the Registrar, the Company shall furnish to the Trustee in writing, at least
ten Business Days before each Interest Payment Date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of Holders.

     Section 2.07. Transfer and Exchange. (a) Interests in the Regulation S Global Note and the
Restricted Global Note shall be exchangeable or transferable, as the case may be, for physical
delivery of Certificated Notes if (i) DTC notifies the Company that it is unwilling or unable to
continue as depositary for such Global Note, or DTC ceases to be a “clearing agency” registered
under the Exchange Act, and a successor depositary is not appointed by the Company within 90 days,
or (ii) an Event of Default has occurred and is continuing with respect to such Notes, provided
that such transfer or exchange is made in accordance with the provisions of this Indenture and the
Applicable Procedures.

 

 

     Upon receipt of notice by DTC or the Trustee, as the case may be, regarding the occurrence of
any of the events described in the preceding paragraph, the Company shall use its best efforts to
make arrangements with DTC for the exchange of interests in the Global Notes for individual
Certificated Notes, and cause the requested individual Certificated Notes to be executed and
delivered to the Trustee in sufficient quantities and authenticated by the Trustee for delivery to
Holders. In the case of Certificated Notes issued in exchange for the Restricted Global Note, such
Certificated Notes shall bear the Securities Act Legend. Upon the registration of transfer,
exchange or replacement of Notes bearing such Securities Act Legend, or upon specific request for
removal of the Securities Act Legend on a Note, the Company shall deliver only Notes that bear such
Securities Act Legend, or shall refuse to remove such Securities Act Legend, as the case may be,
unless there is delivered to the Company a certificate in the form of Exhibit D or Exhibit F, as
the case may be, or such satisfactory evidence as may reasonably be required by the Company, which
may include an Opinion of Counsel, that neither the Securities Act Legend nor the restrictions on
transfer set forth therein are required to ensure compliance with the provisions of the Securities
Act. The Trustee shall exchange a Note bearing the Securities Act Legend for a Note not bearing
such Securities Act Legend only if it has been directed to do so in writing by the Company, upon
which direction it may conclusively rely.

     (b) On or prior to the 40th day after the Closing Date, transfers by a DTC participant which
is an owner of a beneficial interest in the Regulation S Global Note to a transferee who takes
delivery of such interest through the Restricted Global Note shall be made only in Authorized
Denominations in accordance with the Applicable Procedures and upon receipt by the Trustee or
Transfer Agent of a written certification from the transferor of the beneficial interest in the
form of Exhibit E to the effect that such transfer is being made to a Person who the transferor
reasonably believes is a “qualified institutional buyer” within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A and in accordance with any applicable securities
laws of any state of the United States or any other jurisdiction. After such 40th day, such
certification requirement shall no longer apply to such transfers.

     (c) Transfers by a Holder of a Certificated Note bearing the Securities Act Legend or by a DTC
participant of a beneficial interest in the Restricted Global Note to a transferee who takes
delivery of such interest through the Regulation S Global Note or in the form of a Certificated
Note not bearing the Securities Act Legend shall be made only in Authorized Denominations upon
receipt by the Trustee or Transfer Agent of a written certification from the transferor in the form
of Exhibit D to the effect that such transfer is being made in accordance with Regulation S.

     Beneficial interests in the Global Notes shall be shown on, and transfers thereof shall be
effected only through records maintained by DTC and its direct and indirect participants, including
Euroclear and Clearstream, Luxembourg.

     Transfers between participants in DTC shall be effected in the ordinary way in accordance with
the Applicable Procedures and shall be settled in DTC’s Same Day Funds Settlement System and
secondary market trading activity in such Notes shall therefore settle in immediately available
funds. There can be no assurance as to the effect, if any, of settlements in immediately available
funds on trading activity in the Notes. Transfers between participants in

 

 

Euroclear and Clearstream, Luxembourg shall be effected in the ordinary way in accordance with
Applicable Procedures.

     (d) Certificated Notes may be exchanged or transferred in whole or in part in the principal
amount of Authorized Denominations by surrendering such Certificated Notes at the office of the
Trustee or any Transfer Agent with a written instrument of transfer as provided in this Indenture
in the form of Exhibit B hereto duly executed by the Holder thereof or his attorney duly authorized
in writing.

     In exchange for any Certificated Note properly presented for transfer, the Trustee shall
promptly authenticate and deliver or cause to be authenticated and delivered at the Corporate Trust
Office, to the transferee, or send by mail (at the risk of the transferee) to such address as the
transferee may request, a Certificated Note or Notes, as the case may require, registered in the
name of such transferee, for the same aggregate principal amount as was transferred. In the case
of the transfer of any Certificated Note in part, the Trustee shall also promptly authenticate and
deliver or cause to be authenticated and delivered at the Corporate Trust Office, to the
transferor, or send by mail (at the risk of the transferor) to such address as the transferor may
request, a Certificated Note or Notes, as the case may require, registered in the name of such
transferor, for the aggregate principal amount that was not transferred. No transfer of any Notes
shall be made unless the request for such transfer is made by the registered Holder or his attorney
duly authorized in writing at the Corporate Trust Office and is accompanied by a completed
instrument of transfer in the form of Exhibit C attached to the Note presented for transfer.

     (e) Transfer, registration and exchange of any Note or Notes shall be permitted and executed
as provided in this Section 2.07 without any charge to the Holder of any such Note or Notes other
than any taxes or governmental charges or insurance charges payable on transfers or any expenses of
delivery by other than regular mail, but subject to such reasonable regulations as the Company, the
Registrar and the Trustee may prescribe.

     The costs and expenses of effecting any exchange or registration of transfer pursuant to the
foregoing provisions, except for the expense of delivery by other than regular mail (if any) and
except for the payment of a sum sufficient to cover any tax or other governmental charges or
insurance charges that may be imposed in relation thereto, shall be borne by the Company.

     All Certificated Notes issued upon any exchange or registration of transfer of Notes shall be
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits, as
the Notes surrendered upon exchange or registration of transfer.

     (f) The Trustee or the Transfer Agent shall effect transfers of Global Notes and Certificated
Notes. In addition, the Registrar shall keep the Register for the ownership, exchange and
registration of transfer of any Notes. The Transfer Agent shall give prompt notice to the
Registrar and the Registrar shall likewise give prompt notice to the Trustee of any exchange or
registration of transfer of such Notes. Neither the Trustee nor any Transfer Agent shall register
the exchange or the transfer of any Global Note or Certificated Note (or any portion of a
Certificated Note) during the period of 15 days ending on the Record Date. The Trustee shall

 

 

give prompt notice to the Company of any replacement, transfer, cancellation or destruction of
the Notes.

     (g) Upon any such exchange or registration of transfer of all or a portion of any Global Note
for a Certificated Note or an interest in either the Restricted Global Note or the Regulation S
Global Note for an interest in the other Global Note, the Global Note to be so exchanged shall be
marked to reflect the reduction of its principal amount by the aggregate principal amount of such
Certificated Note or the interest to be so exchanged for an interest in a Regulation S Global Note
or a Restricted Global Note, as the case may be. Until so exchanged in full, the Note shall in all
respects be entitled to the same benefits under this Indenture as the Notes authenticated and
delivered hereunder.

     (h) Subject to Section 2.7(a), upon the occurrence of the Exchange Offer in accordance with
the Registration Rights Agreement, the Company shall issue and, upon receipt of an authentication
order in accordance with Section 2.2, the Trustee shall authenticate one or more Exchange Notes in
an aggregate principal amount equal to the principal amount of the beneficial interests in the
Initial Notes or Additional Notes tendered for acceptance by Persons that certify in the applicable
letters of transmittal that (i) they are not broker-dealers, (ii) they are not participating in a
distribution of the Exchange Notes and (iii) they are not affiliates (as defined in Rule 144 under
the Securities Act) of the Company, and accepted for exchange in the Exchange Offer. Concurrently
with the issuance of such Notes, the Trustee shall cause the aggregate principal amount of the
applicable Initial Notes in the form of Global Notes and/or Additional Notes in the form of Global
Notes to be reduced accordingly.

     Section 2.08. Replacement Notes. If any Note at any time becomes mutilated, defaced,
destroyed, stolen or lost, such Note may be replaced at the cost of the applicant (including
reasonable legal fees of the Company, the Trustee, the Transfer Agents, the Registrar and the
Paying Agents) at the office of the Trustee or any Transfer Agent, upon provision of, in the case
of destroyed, stolen or lost Notes, evidence satisfactory to the Trustee and the Company that such
Note was destroyed, stolen or lost, together with such indemnity as the Trustee and the Company may
require. Mutilated or defaced Notes must be surrendered before replacements shall be issued.

     Each Note authenticated and delivered in exchange for or in lieu of any such Note shall carry
rights to accrued and unpaid interest and to interest to accrue equivalent to the rights that were
carried by such Note before such Note was mutilated, defaced, destroyed, stolen or lost.

     Every replacement Note is an additional obligation of the Company and shall be entitled to the
benefits of this Indenture.

     Section 2.09. Temporary Notes. Subject to the provisions of Section 2.07(a), until
Certificated Notes are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Notes. Temporary Notes shall be substantially in the form of Certificated
Notes but may have variations that the Company considers appropriate for temporary Notes. As
necessary, the Company shall prepare and the Trustee shall authenticate Certificated Notes and
deliver them in exchange for temporary Notes at the office or agency of the Company or the

 

 

Trustee, without charge to the Holder. Until so exchanged, the temporary Notes shall be
entitled to the same benefits under this Indenture as Certificated Notes.

     Section 2.10. Cancellation. The Company at any time may deliver Notes to the Trustee for
cancellation. The Transfer Agents and the Paying Agents shall forward to the Trustee any Notes
surrendered to them for transfer, exchange or payment. The Trustee or a Paying Agent and no one
else shall cancel and the Trustee shall destroy in accordance with its customary procedures
(subject to the record-retention requirements of the Exchange Act) all Notes surrendered for
transfer, exchange, payment or cancellation and, if so destroyed, deliver a certificate of such
destruction to the Company unless the Company directs the Trustee in writing to deliver cancelled
Notes to the Company. The Company may not issue new Notes to replace Notes it has redeemed, paid
or delivered to the Trustee for cancellation, which shall not prohibit the Company from issuing any
Additional Notes, or any Exchange Notes in exchange for Initial Notes. A Note does not cease to be
outstanding because the Company, the Guarantor or any of their Affiliates holds such Note, except
that such Notes will not be deemed to be Outstanding for voting purposes pursuant to and in
accordance with the definition of “Outstanding” in Section 1.01.

     Section 2.11. Defaulted Interest. If the Company defaults in a payment of interest on the
Notes, the Company shall pay the defaulted interest (plus interest on such defaulted interest at
the rate specified in Section 4.01 to the extent lawful) in any lawful manner not inconsistent with
the requirements of any stock exchange on which the Notes may be listed, and upon such notice as
may be required by such exchange, if, after written notice given by the Company to the Trustee of
the proposed payment pursuant to this Section 2.11, such manner of payment shall be deemed
practicable by the Trustee.

     The Company may pay the defaulted interest to the Persons who are Holders on a subsequent
special record date, which date shall be at least five Business Days prior to the payment date of
such defaulted interest. The Company shall fix or cause to be fixed any such special record date
and payment date, and, at least 15 days before any such special record date, the Company shall
deliver to each Holder, with a copy to the Trustee, a notice that states the special record date,
the payment date and the amount of defaulted interest to be paid.

     Section 2.12. CUSIP and ISIN Numbers. The Company in issuing the Notes may use CUSIP and
ISIN numbers (if then generally in use) and, if so, the Trustee shall use CUSIP and ISIN numbers in
notices as a convenience to Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Notes or as
contained in any notice and that reliance may be placed only on the other identification numbers
printed on the Notes, and any such notice shall not be affected by any defect in or omission of
such numbers. The Company shall promptly notify the Trustee in writing of any change in CUSIP or
ISIN numbers.

     Section 2.13. Open Market Purchases. The Company or any of its Affiliates may at any time
purchase Notes in the open market or otherwise at any agreed upon price. All Notes so purchased
may not be reissued or resold, except in compliance with applicable requirements or exemptions
under the relevant securities laws.

 

 

     Section 2.14. Issuance Of Additional Notes. The Company shall be entitled, from time to
time, without notice to, or consent of, the Holders of the Notes, to create and issue additional
principal amounts of Additional Notes under this Indenture which shall have identical terms as the
Initial Notes issued on the Issue Date or the Exchange Notes exchanged therefor (in each case,
other than with respect to the issue date, issue price, the payment of interest accruing prior to
the issue date thereof and the first payment of interest (including Additional Interest, if any)
thereon, and any Additional Amounts due with respect thereto, after the issue date thereof), as the
case may be.

     With respect to any Additional Notes, the Company shall set forth in a Board Resolution and an
Officers’ Certificate, a copy of each shall be delivered to the Trustee, the following information:

     (i) the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture;

     (ii) the issue price, the issue date and the “CUSIP” and “ISIN” number of any such
Additional Notes and the amount of interest payable on the first payment date applicable
thereto;

     (iii) whether such Additional Notes shall be transfer restricted securities and issued
in the same form as Initial Notes or shall be issued in the same form as the Exchange Notes,
in each case as set forth in Exhibit A to this Indenture; and

     (iv) if applicable, the resale restriction termination date relating to the Notes and
the Restricted Period for such Additional Notes.

     Section 2.15. One Class Of Notes. The Initial Notes, any Additional Notes and the Exchange
Notes shall vote and consent together on all matters as one class; and none of the Initial Notes,
any Additional Notes and the Exchange Notes shall have the right to vote or consent as a separate
class on any matter. The Initial Notes, any Additional Notes and the Exchange Notes shall together
be deemed to constitute a single class or series for all purposes, other than for U.S. federal
income tax purposes, under this Indenture.

ARTICLE 3

Redemption

     Section 3.01. Right of Redemption. (a) Except as described in this Section 3.01 and
Paragraph 7 of the form of Note set forth in Exhibit A, the Notes may not be redeemed.

     (b) The Notes shall be redeemable, at the option of the Company, in whole or in part, on any
Interest Payment Date prior to April 25, 2017, upon giving not less than 30 nor more than 60 days’
notice to the Holders (which notice shall be irrevocable), at a Redemption Price equal to the
greater of:

 

 

     (1) 100% of the principal amount of the notes to be redeemed; and

     (2) the sum of the present values of the remaining scheduled payments of principal and
interest on such notes (exclusive of interest accrued on the Redemption Date) discounted to the
Redemption Date on a semi-annual basis (assuming 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 50 basis points;

plus, in either case, accrued and unpaid interest and Additional Amounts, if any, on the principal
amount being redeemed to such Redemption Date.

     (c) Redemption for Taxation Reasons. If as a result of any change in or amendment to the laws
(or any rules or regulations thereunder) of a Taxing Jurisdiction, or any amendment to or change in
an official interpretation, administration or application of such laws, any treaties, rules, or
related agreements to which the Taxing Jurisdiction is a party or regulations (including a holding
by a court of competent jurisdiction), which change or amendment becomes effective or, in the case
of a change in official position, is announced on or after the issue date of the Notes or on or
after the date a successor to the Company assumes the obligations under the Notes, (i) the Company
or any successor to the Company has or will become obligated to pay Additional Amounts (as defined
below in Section 4.06) or (ii) either of the Guarantors or any successor to the Guarantor has or
will become obligated to pay Additional Amounts in excess of the Additional Amounts either such
Guarantor or any such successor to the Guarantor would be obligated to pay if payments were subject
to withholding or deduction at a rate of 15% or at a rate of 25% in the case that the Holder of the
Notes is resident in a tax haven jurisdiction for Brazilian tax purposes (i.e., a country that does
not impose any income tax or that imposes it at a maximum rate lower than 20% or where the laws
impose restrictions on the disclosure of ownership composition or securities ownership) (the
“Minimum Withholding Level”), as a result of the taxes, duties, assessments and other governmental
charges described above, the Company or any successor to the Company may, at their option, redeem
all, but not less than all, of the Notes, at a redemption price equal to 100% of their principal
amount, together with accrued and unpaid interest to the date fixed for redemption, including any
Additional Amounts with respect thereto, upon publication of irrevocable notice to Holders not less
than 30 days nor more than 60 days prior to the date fixed for redemption. No notice of such
redemption may be given earlier than 60 days prior to the earliest date on which either (x) the
Company or any successor to the Company would, but for such redemption, become obligated to pay any
Additional Amounts, or (y) in the case of payments made under the Guarantees, either Guarantor or
any successor to the Guarantor would, but for such redemption, be obligated to pay the Additional
Amounts in excess of the Minimum Withholding Level. For the avoidance of doubt, the Company or any
successor to the Company shall not have the right to so redeem the Notes unless (a) it is obligated
to pay Additional Amounts or (b) either Guarantor or any successor to the Guarantor is obliged to
pay Additional Amounts which in the aggregate amount to more than the Additional Amounts payable at
the Minimum Withholding Level. Notwithstanding the foregoing, the Company or any successor to the
Company shall not have the right to so redeem the Notes unless it has taken reasonable measures to
avoid the obligation to pay Additional Amounts. For the avoidance of doubt, reasonable measures do
not include changing the

 

 

jurisdiction of incorporation of the Company or any successor to the Company or the
jurisdiction of incorporation of a Guarantor or any successor to the Guarantor.

     In the event that the Company or any successor elects to so redeem the Notes pursuant to
Section 3.01(c), it will deliver to the Trustee: (i) a certificate, signed in the name of the
Company or any successor to the Company by any two of its executive officers or by its
attorney-in-fact in accordance with its bylaws, stating that the Company or any successor to the
Company is entitled to redeem the Notes pursuant to their terms and setting forth a statement of
facts showing that the condition or conditions precedent to the right of the Company or any
successor to the Company to so redeem have occurred or been satisfied; and (ii) an Opinion of
Counsel to the effect that (1) the Company or any successor to the Company has or will become
obligated to pay Additional Amounts or either Guarantor or any successor to the Guarantor has or
will become obligated to pay Additional Amounts in excess of the Additional Amounts payable at the
Minimum Withholding Level, (2) such obligation is the result of a change in or amendment to the
laws (or any rules or regulations thereunder) of a Taxing Jurisdiction, as described above, (3) the
Company or any successor to the Company, or either Guarantor or any successor to the Guarantor, as
the case may be, cannot avoid payment of such Additional Amounts by taking reasonable measures
available to it and (4) that all governmental requirements necessary for the Company or any
successor to the Company to effect the redemption have been complied with.

     Section 3.02. Applicability of Article. Redemption of Notes at the option of the Company,
as permitted by Section 3.01 or required by any provision of this Indenture, shall be made in
accordance with such provision and this Article 3. The redemption of Notes may require the prior
approval of the Central Bank of Brazil.

     Section 3.03. Election to Redeem; Notice to Trustee. The election of the Company to redeem
the Notes pursuant to Section 3.01(b) or 3.01(c) shall be evidenced by a Board Resolution. In case
of any redemption of Notes at the election of the Company, the Company shall, at least 70 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee in writing of such Redemption Date.

     Section 3.04. Notice of Redemption by the Company. In the case of redemption of Notes
pursuant to Section 3.01(b) or 3.01(c), notice of redemption shall be mailed at least 30 but not
more than 60 days before the Redemption Date to each Holder of any Note to be redeemed by
first-class mail at its registered address and such notice shall be irrevocable. In addition, so
long as the Notes are listed on the Euro MTF market of the Luxembourg Stock Exchange, notices shall
be published in English in a leading newspaper having general circulation in Luxembourg.

     The notice shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price;

     (iii) the name and address of the Paying Agents;

 

 

     (iv) that Notes called for redemption must be surrendered to a Paying Agent to collect
the Redemption Price;

     (v) that, unless the Company defaults in making such redemption payment or the Paying
Agent is prohibited from making such payment pursuant to the terms of this Indenture,
interest on Notes called for redemption ceases to accrue on and after the Redemption Date;

     (vi) the paragraph of the Notes pursuant to which the Notes called for redemption are
being redeemed;

     (vii) the CUSIP or ISIN number, if any; and

     (viii) that no representation is made as to the correctness or accuracy of the CUSIP or
ISIN number, if any, listed in such notice or printed on the Notes.

     At the Company’s election and at its request, made in writing to the Trustee at least 60 days
before a date for redemption of Notes, the Trustee shall give the notice of redemption in the
Company’s name and at the Company’s expense; provided that the Company shall deliver to the
Trustee, at least 70 days prior to the Redemption Date, an Officers’ Certificate requesting that
the Trustee give such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.

     Section 3.05. Deposit of Redemption Price. By 10:00 A.M. New York City time, no later than
one Business Day prior to the Redemption Date, the Company shall deposit with the Principal Paying
Agent money sufficient to pay the Redemption Price of and accrued and unpaid interest on the Notes
other than Notes that have been delivered by the Company to the Trustee at least 15 days prior to
the Redemption Date for cancellation. The Company shall request that the bank through which such
payment is to be made agree to supply to the Principal Paying Agent by 10:00 A.M. (New York time)
two Business Days prior to the due date from any such payment an irrevocable confirmation (by
facsimile) of its intention to make such payment.

     Section 3.06. Effect of Notice of Redemption. Notice of redemption having been given as
aforesaid, the Notes shall, on the Redemption Date, become due and payable at the applicable
Redemption Price (together with accrued and unpaid interest, if any, to the Redemption Date), and
from and after such date (except in the event of a default in the payment of the Redemption Price
and accrued and unpaid interest) such Notes shall cease to bear interest. Upon surrender of any
such Note for redemption in accordance with such notice, such Note shall be paid by the Company at
the Redemption Price, together with accrued and unpaid interest, if any, to the Redemption Date;
provided, however, that installments of interest whose Payment Date is on or prior to the
Redemption Date shall be payable to the Holders of such Notes registered as such at the close of
business on the relevant Record Dates according to their terms.

     If any Note to be redeemed shall not be so paid upon surrender thereof in accordance with the
Company’s instructions for redemption, the principal shall, until paid, bear interest from the
Redemption Date at the rate borne by the Notes. Upon surrender to the Paying Agent, such

 

 

Notes shall be paid at the applicable Redemption Price, plus accrued and unpaid interest to
the Redemption Date; provided, however, that installments of interest payable on or prior to the
redemption date shall be payable to the Holders of such Notes registered as such at the close of
business on the relevant Record Date according to their terms.

     Section 3.07. Notes Redeemed In Part. Upon surrender of a Note that is redeemed in part,
the Company shall execute and the Trustee shall authenticate for the Holder thereof (at the
Company’s expense) a new Note, equal in a principal amount to the unredeemed portion of the Note
surrendered; provided that each new Note shall be in a principal amount of U.S.$100,000 or an
integral multiple of U.S.$1,000 in excess thereof.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to redemption of Notes shall relate, in the case of any Note redeemed or to be redeemed
only in part, to the portion of the principal amount of such Note which has been or is to be
redeemed.

ARTICLE 4

Covenants

     Section 4.01. Payment of Principal and Interest Under the Notes. The Company shall
punctually pay the principal of and interest on the Notes on the dates and in the manner provided
in the form of Note set forth as Exhibit A. By 10:00 a.m. (New York City time), no later than one
Business Day prior to any Payment Date, the Company shall irrevocably deposit with the Trustee or
with the Principal Paying Agent money sufficient to pay such principal and interest.

     The Company shall pay interest on overdue principal or installments of interest, to the extent
lawful, at the rate borne by the Notes plus 1% per annum.

     No interest shall be payable hereunder in excess of the maximum rate permitted by applicable
law.

     Section 4.02. Maintenance of Office or Agency. The Company shall maintain in each place of
payment for the Notes an office or agency where Notes may be presented or surrendered for payment
and where notices and demands to or upon the Company in respect of the Notes and this Indenture may
be served. The Corporate Trust Office of the Trustee shall be such office or agency of the
Company, unless the Company shall designate and maintain some other office or agency for one or
more of such purposes. The Company shall give prompt written notice to the Trustee of any change
in the location of any such office or agency. If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

     Section 4.03. Money for Note Payments to Be Held in Trust. If the Company shall at any time
act as its own Paying Agent, it shall, on or before each due date of principal of or interest on

 

 

any of the Notes, segregate and hold in trust for the benefit of the Persons entitled thereto
a sum sufficient to pay the principal and interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and shall promptly notify the Trustee of
its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for the Notes, it shall, on or
before each due date of principal of or interest on any Notes, irrevocably deposit with a Paying
Agent a sum sufficient to pay such principal and interest so becoming due, such sum to be held in
trust for the benefit of the Persons entitled to such principal or interest, and (unless such
Paying Agent is the Trustee) the Company shall promptly notify the Trustee in writing of such
action or any failure so to act.

     Each Paying Agent, subject to the provisions of this Section 4.03, shall:

     (i) hold all sums held by it for the payment of principal of or interest on Notes in
trust for the benefit of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein; provided, however, such sums need not be
segregated from other funds held by it, except as required by law;

     (ii) give the Trustee written notice of any Default by the Company (or any other
obligor upon the Notes) in the making of any payment of principal or interest; and

     (iii) at any time during the continuance of any such Default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

     The Company shall cause each Paying Agent (other than the Principal Paying Agent and the
Paying Agent in Luxembourg) to execute and deliver an instrument in which such Paying Agent shall
agree with the Trustee to act as a Paying Agent in accordance with this Section 4.03.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such sums.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of principal of or interest on any Note and remaining unclaimed for two years
after such principal or interest has become due and payable shall be paid to the Company at the
request of the Company, or (if then held by the Company) shall be discharged from such trust; and
the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such
repayment, shall, upon request and at the expense of the

 

 

Company, cause to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in (i) the Borough of
Manhattan, The City of New York and (ii) so long as the Notes continue to be listed on the Euro MTF
market of the Luxembourg Stock Exchange, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining shall be repaid to the Company.

     Section 4.04. Maintenance of Corporate Existence. TAM S.A. shall, and shall cause each of
its Subsidiaries to, (i) maintain in effect its corporate existence and all registrations necessary
therefor, provided that these restrictions shall not prohibit any transactions permitted by Article
5 or the merger of any Subsidiary with or into TAM S.A. or with or into any other Wholly-Owned
Subsidiary of TAM S.A.; (ii) take all reasonable actions to maintain all rights, privileges, titles
to property, franchises and the like necessary in the normal conduct of its business, activities or
operations; and (iii) maintain or cause to be maintained in good repair, working order and
condition (normal wear and tear excepted) all properties used in their business; provided, however,
that neither TAM S.A. nor its Subsidiaries shall be prevented from discontinuing those operations
(including through the transfer or dissolution of a Subsidiary) or suspending the maintenance of
those properties (including through the sale thereof) which, in the reasonable judgment of TAM S.A.
are no longer necessary in the conduct of TAM S.A.’s business, or that of its Subsidiaries; and
provided, further, that such discontinuation of operations or suspension of maintenance shall not
be materially disadvantageous to the Holders of the Notes.

     Section 4.05. Payment of Taxes and Claims. TAM S.A. shall, and shall cause each of its
Subsidiaries to, pay all taxes, assessments and other governmental charges imposed upon it or any
of its property in respect of any of its franchises, businesses, income or profits before any
penalty or interest accrues thereon, and pay all claims (including claims for labor, services,
materials and supplies) for sums which have become due and payable and which by law have or might
become a Lien upon its property; provided, however, that any such payment shall not be required
unless the failure to make such payment would have a material adverse effect upon the financial
condition of TAM S.A. and its Subsidiaries considered as one enterprise or a material adverse
effect on the performance of TAM S.A.’s obligations hereunder; and provided, further, that no such
charge or claim need be paid while it is being contested in good faith by appropriate proceedings
and if appropriate reserves or other provisions shall have been made therefor.

     Section 4.06. Payment of Additional Amounts. (a) All payments by the Company in respect of
the Notes or the Guarantors in respect of the Note Guarantees will be made free and clear of, and
without withholding or deduction for or on account of, any present or future taxes, duties,
assessments, or other governmental charges of whatever nature imposed or levied by or on behalf of
the Cayman Islands or Brazil, or any authority therein or thereof or any other jurisdiction in
which the Company or the Guarantors are organized, doing business or otherwise subject to the power
to tax (any of the aforementioned being a “Taxing Jurisdiction”), unless the Company or the
Guarantors are compelled by law to deduct or withhold such taxes, duties, assessments, or
governmental charges. In such event, the Company or the Guarantors, as applicable, will make such
deduction or withholding, make payment of the amount so withheld

 

 

to the appropriate governmental authority and pay such additional amounts as may be necessary
to ensure that the net amounts receivable by Holders of Notes after such withholding or deduction
shall equal the respective amounts of principal and interest which would have been receivable in
respect of the Notes in the absence of such withholding or deduction (“Additional Amounts”).
Notwithstanding the foregoing, no such Additional Amounts shall be payable:

     (i) to, or to a third party on behalf of, a Holder who is liable for such taxes,
duties, assessments or governmental charges in respect of such Note by reason of the
existence of any present or former connection between such Holder (or between a fiduciary,
settlor, beneficiary, member or shareholder of such Holder, if such Holder is an estate, a
trust, a partnership, or a corporation) and the relevant Taxing Jurisdiction, including,
without limitation, such Holder (or such fiduciary, settlor, beneficiary, member or
shareholder) being or having been a citizen or resident thereof or being or having been
engaged in a trade or business or present therein or having, or having had, a permanent
establishment therein, other than the mere holding of the Note or enforcement of rights
under the Indenture and the receipt of payments with respect to the Note;

     (ii) in respect of Notes surrendered or presented for payment (if surrender or
presentment is required) more than 30 days after the Relevant Date except to the extent that
payments under such Note would have been subject to withholdings and the Holder of such Note
would have been entitled to such Additional Amounts, on surrender of such Note for payment
on the last day of such period of 30 days;

     (iii) where such Additional Amount is imposed and is required to be made pursuant to
any law implementing or complying with, or introduced in order to conform to, any European
Union Directive on the taxation of savings;

     (iv) to, or to a third party on behalf of, a Holder who is liable for such taxes,
duties, assessments or other governmental charges by reason of such Holder’s failure to
comply with any certification, identification, documentation or other reporting requirement
concerning the nationality, residence, identity or connection with the relevant Taxing
Jurisdiction of such Holder, if (1) compliance is required by law as a precondition to,
exemption from, or reduction in the rate of, the tax, assessment or other governmental
charge and (2) the Company has given the Holders at least 30 days’ notice that Holders will
be required to provide such certification, identification, documentation or other
requirement;

     (v) in respect of any estate, inheritance, gift, sales, transfer, capital gains, excise
or personal property or similar tax, assessment or governmental charge;

     (vi) in respect of any tax, assessment or other governmental charge which is payable
other than by deduction or withholding from payments of principal of or interest on the
Note;

     (vii) in respect of any tax imposed on overall net income or any branch profits tax; or

 

 

     (viii) in respect of any combination of the above.

     (b) No Additional Amounts shall be paid with respect to any payment on a Note to a Holder who
is a fiduciary, a partnership, a limited liability company or other than the sole beneficial owner
of that payment to the extent that payment would be required by the relevant Taxing Jurisdiction to
be included in the income, for tax purposes, of a beneficiary or settlor with respect to the
fiduciary, a member of that partnership, an interestholder in a limited liability company or a
beneficial owner who would not have been entitled to the Additional Amounts had that beneficiary,
settlor, member or beneficial owner been the Holder.

     (c) The Notes are subject in all cases to any tax, fiscal or other law or regulation or
administrative or judicial interpretation. Except as specifically provided above, neither the
Company nor the Guarantors shall be required to make a payment with respect to any tax, assessment
or governmental charge imposed by any government or a political subdivision or taxing authority
thereof or therein.

     (d) In the event that Additional Amounts actually paid with respect to the Notes are based on
rates of deduction or withholding of withholding taxes in excess of the appropriate rate applicable
to the Holder of such Notes, and, as a result thereof such Holder is entitled to make claim for a
refund or credit of such excess from the authority imposing such withholding tax, then such Holder
shall, by accepting such Notes, be deemed to have assigned and transferred all right, title, and
interest to any such claim for a refund or credit of such excess to the Company.

     (e) Any reference in this Indenture or the Notes to principal, interest or any other amount
payable in respect of the Notes by the Company or the Note Guaranty by the Guarantors will be
deemed also to refer to any Additional Amount, unless the context requires otherwise, that may be
payable with respect to that amount under the obligations referred to in this Section.

     (f) Each of the Company and the Guarantors covenants that if any of the Company or the
Guarantors, as applicable, is required under applicable law to make any deduction or withholding on
payments of principal of or interest on the Notes for or on account of any tax, duty, assessment or
other governmental charge, at least 10 days prior to the first payment date on the Notes and at
least 10 days prior to each payment date thereafter where such withholding is required, the Company
or the Guarantors, as applicable, shall furnish the Trustee and the Principal Paying Agent with an
Officers’ Certificate (but only if there has been any change with respect to the matters set forth
in any previously delivered Officers’ Certificate) instructing the Trustee and the Principal Paying
Agent as to whether such payment of principal of or interest on the Notes shall be made without
deduction or withholding for or on account of any tax, duty, assessment or other governmental
charge, or, if any such deduction or withholding shall be required by the Taxing Jurisdiction, then
such certificate shall: (i) specify the amount required to be deducted or withheld on such payment
to the relevant recipient; (ii) certify that the Company or the Guarantors, as applicable, shall
pay such deduction or withholding amount to the appropriate taxing authority; and (iii) certify
that the Company or the Guarantors, as applicable, shall pay or cause to be paid to the Trustee or
the Principal Paying Agent such Additional Amounts as are required by this Section 4.06.

 

 

     (g) Each of the Company and the Guarantors agrees to indemnify the Trustee and the Principal
Paying Agent for, and to hold each harmless against, any loss, liability or expense reasonably
incurred without bad faith on its part arising out of or in connection with actions taken or
omitted by it in reliance on any Officers’ Certificate furnished pursuant to this Section 4.06 or
any failure to furnish such a certificate.

     (h) The obligations of the Company and the Guarantors pursuant to this Section 4.06 shall
survive termination or discharge of this Indenture, payment of the Notes and/or resignation or
removal of the Trustee or the Principal Paying Agent.

     Section 4.07. Reporting Requirements. (a) The Company and the Guarantors shall provide the
Trustee with the following reports (and shall also provide the Trustee with sufficient copies, as
required, of the reports referred to in clauses (i), (ii), (iii) and (iv) for distribution, at the
Company’s and the Guarantors’ expense, to all Holders of Notes):

     (i) an English language version of TAM S.A.’s annual audited consolidated financial
statements prepared in accordance with Brazilian GAAP promptly upon such financial
statements becoming available but not later than 120 days after the close of its fiscal
year;

     (ii) an English language version of TAM S.A.’s unaudited quarterly financial statements
prepared in accordance with Brazilian GAAP promptly upon such statements becoming available
but not later than 60 days after the close of each fiscal quarter (other than the last
fiscal quarter of its fiscal year);

     (iii) simultaneously with the delivery of each set of financial statements referred to
in clauses (i) and (ii) of this Section 4.07(a), an Officers’ Certificate stating whether a
Default or Event of Default exists on the date of such certificate and, if a Default or
Event of Default exists, setting forth the details thereof and the action which the Company
and/or the Guarantors, as applicable, are taking or propose to take with respect thereto;

     (iv) without duplication, English language versions or summaries of such other reports
or notices as may be filed or submitted by (and promptly after filing or submission by) the
Company and/or the Guarantors, as applicable, with (a) the CVM, (b) the Euro MTF market of
the Luxembourg Stock Exchange, or any other stock exchange on which the Notes may be listed
or (c) the SEC (in each case, to the extent that any such report or notice is generally
available to security holders of the Company or the public in Brazil or elsewhere and, in
the case of clause (c), is filed or submitted pursuant to Rule 12g3-2(b) under, or Section
13 or 15(d) of, the Exchange Act, or otherwise); and

     (v) upon any director or executive officer of the Company or any Guarantor becoming
aware of the existence of a Default or Event of Default, an Officers’ Certificate setting
forth the details thereof and the action which the Company and/or such Guarantor, as
applicable, are taking or propose to take with respect thereto.

 

 

     Delivery of the above reports to the Trustee is for informational purposes only and the
Trustee’s receipt of such reports shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s or
the Guarantors’ compliance with any of their covenants in this Indenture (as to which the Trustee
is entitled to rely exclusively on Officers’ Certificates).

     (b) Within 60 days of the close of each of the first three fiscal quarters and within 90 days
of the close of each fiscal year, for so long as any of the Notes remain Outstanding, (i) the
Company shall request from DTC, a current list of the names and addresses of each DTC participant
which is a Holder of an interest in a Global Note and (ii) at the Company’s written request, the
Trustee shall provide the Company with the names and addresses of each Holder of a Certificated
Note, if any.

     Section 4.08. Available Information. The Company shall take all action necessary to provide
information to permit resales of the Notes pursuant to Rule 144A, including furnishing to any
Holder of a Note or owner of a beneficial interest in a Global Note, or to any prospective
purchaser designated by such a Holder or beneficial owner, upon request to such Holder or
beneficial owner, financial and other information required to be delivered under paragraph (d)(4)
of Rule 144A (as amended from time to time and including any successor provision) unless, at the
time of such request, the Company is subject to the reporting requirements of Section 13 or Section
15(d) of the Exchange Act or is exempt from such requirements pursuant to Rule 12g3-2(b) under the
Exchange Act (as amended from time to time and including any successor provision).

     Section 4.09. Limitations on the Company. The Company shall not (a) engage in any business
or enter into, or be a party to, any transaction or agreement except for:

     (i) the issuance, sale and redemption of the Notes and activities incidentally related
thereto;

     (ii) the incurrence of Debt to make inter-company loans to the Guarantors and entities
controlled by the Guarantors to finance the acquisition and leasing of aircraft, equipment
and supply materials by the Gurantors and such entities and activities reasonably related
thereto;

     (iii) entering into Hedging Agreements relating to the Notes or other such Debt; and

     (iv) any other transaction required by law;

     (b) acquire or own any Subsidiaries or other assets or properties, except an interest in the
inter-company loans described in Section 4.09(a)(ii) and Hedging Agreements relating to its Debt
and instruments evidencing interests in the foregoing; and

 

 

     (c) enter into any consolidation, merger, amalgamation, joint venture, or other form of
combination with any Person, or sell, lease, convey or otherwise dispose of any of its assets or
receivables, except as otherwise permitted under Section 5.01.

     Section 4.10. Limitation on Transactions with Affiliates. Neither the Company nor any
Guarantor will, nor will the Company or any Guarantor permit any of their respective Subsidiaries
to, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange
of any property, employee compensation arrangements or the rendering of any service) with, or for
the benefit of, any Affiliate of the Company or such Guarantor, other than themselves or any of
their respective Subsidiaries, (an “Affiliate Transaction”) unless the terms of the Affiliate
Transaction are no less favorable to the Company or such Guarantor or such Subsidiary than those
that could be obtained at the time of the Affiliate Transaction in arm’s length dealings with a
person who is not an Affiliate.

     Section 4.11. Repurchase of Notes upon a Change of Control. Not later than 30 days
following a Rating Decline that results from a Change of Control, the Company will make an Offer to
Purchase all outstanding Notes at a purchase price equal to 101% of the principal amount plus
accrued interest up to, but not including the date of purchase.

     An “Offer to Purchase” must be made by written offer, which will specify the purchase price.
The offer must specify an expiration date (the “expiration date”) not less than 30 days or more
than 60 days after the date of the offer and a settlement date for the purchase (the “purchase
date”) not more than five Business Days after the expiration date. The offer must include
information required by the Securities Act, Exchange Act or any other applicable laws. The offer
will also contain instructions and materials necessary to enable holders to tender notes pursuant
to the offer.

     A Holder may tender all or any portion of its Notes pursuant to an Offer to Purchase, subject
to the requirement that any portion of a Note tendered must be in a denomination of U.S.$100,000 or
an integral multiple of U.S.$1,000 principal amount in excess thereof. Holders are entitled to
withdraw Notes tendered up to the close of business on the expiration date. On the purchase date
the purchase price will become due and payable on each note accepted for purchase pursuant to the
Offer to Purchase, and interest on notes purchased will cease to accrue on and after the purchase
date.

     The Company will comply with Rule 14e-1 under the Exchange Act (to the extent applicable and
not in conflict with applicable Brazilian regulations) and all other applicable laws in making any
Offer to Purchase, and the above procedures will be deemed modified as necessary to permit such
compliance.

     The Guarantors will obtain all necessary consents and approvals from the Central Bank of
Brazil for the remittance of funds outside of Brazil prior to making any Offer to Purchase.

     Section 4.12. Additional Interest. If Additional Interest is payable by the Company
pursuant to the Registration Rights Agreement, the Company shall deliver to the Trustee an
Officers’ Certificate to that effect stating (i) the amount of such Additional Interest that is

 

 

payable and (ii) the date on which such Additional Interest is payable. Unless and until a
Responsible Officer of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no Additional Interest is payable. If the Company has paid Additional Interest
directly to the persons entitled to it, the Company shall deliver to the Trustee an Officers’
Certificate setting forth the particulars of such payment.

ARTICLE 5

Consolidation, Merger, Conveyance, Transfer or Lease

     Section 5.01. Limitation on Consolidation, Merger or Transfer of Assets. Neither the
Company nor any Guarantor shall consolidate with or merge with or into, or sell, convey, transfer
or dispose of, or lease all or substantially all 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 resulting, surviving or transferee Person (if not the Company or such
Guarantor) shall be a Person organized and existing under the laws of the Cayman Islands,
Brazil, or the United States of America, any State thereof or the District of Columbia, or
any other country (or political subdivision thereof) that is a member country of the
European Union or of the Organisation for Economic Co-operation and Development on the date
of this Indenture, and such Person expressly assumes, by an indenture supplemental to this
Indenture, executed and delivered to the Trustee, all the obligations of the Company or such
Guarantor under this Indenture and the Notes and the Note Guaranty;

     (ii) the resulting, surviving or transferee person (if not the Company or such
Guarantor), if not organized and existing under the laws of a jurisdiction other than the
Cayman Islands or Brazil, undertakes, in such supplemental indenture, (i) to pay such
Additional Amounts in respect of principal (and premium, if any) and interest as may be
necessary in order that every net payment made in respect of the Notes and the Note Guaranty
after deduction or withholding for or on account of any present or future tax, penalty,
fine, duty, assessment or other governmental charge imposed by such other country or any
political subdivision or taxing authority thereof or therein shall not be less than the
amount of principal (and premium, if any) and interest then due and payable on the Notes and
the Note Guaranty subject to the same exceptions set forth under Sections 4.06(a)(i) through
Section 4.06(a)(viii) and (ii) that the provisions set forth in Section 3.01(c) shall apply
to such person, but in both cases, replacing existing references in such Section to Cayman
Islands or Brazil or to the Taxing Jurisdiction with references to the jurisdiction of
organization of the resulting, surviving or transferee Person as the case may be;

     (iii) immediately prior to such transaction and immediately after giving effect to such
transaction, no Default or Event of Default shall have occurred and be continuing; and

 

 

     (iv) the Company or such Guarantor shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger or
transfer and such supplemental indenture, if any, comply with this Indenture.

     Notwithstanding anything to the contrary contained in the foregoing, any of the Guarantors may
consolidate with or merge with the Company or any Subsidiary that becomes a Guarantor concurrently
with the relevant transaction.

     The Trustee shall be entitled to rely exclusively on and shall accept such Officers’
Certificate and Opinion of Counsel as sufficient evidence of the satisfaction of the conditions
precedent set forth in this Section 5.01, in which event it shall be conclusive and binding on the
Holders.

     Section 5.02. Successor Substituted. Upon any consolidation or merger, or any sale,
assignment, conveyance, transfer, lease or disposition of all or substantially all of the
properties and assets of the Company or any Guarantor in accordance with Section 5.01 in which the
Company or such Guarantor is not the continuing obligor or Guarantor, as the case may be, under
this Indenture, the surviving or transferor Person shall succeed to, and be substituted for, and
may exercise every right and power of, the Company or such Guarantor, as the case may be, under
this Indenture with the same effect as if such successor had been named as the Company or Guarantor
therein. When a successor assumes all the obligations of its predecessor under this Indenture, the
Notes and the Note Guaranty, the predecessor shall be released from those obligations; provided
that in the case of a transfer by lease, the predecessor shall not be released from the payment of
principal and interest on the Notes.

ARTICLE 6

Events of Default and Remedies

     Section 6.01. Events of Default. The term “Event of Default” means, when used herein, any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to, or as a result of any
failure to obtain, any authorization, order, rule, regulation, judgment or decree of any
governmental or administrative body or court):

     (a) The Company defaults in any payment of interest (including any Additional Amounts or any
Additional Interest) on any Note when the same becomes due and payable, and such Default continues
for a period of 30 days;

     (b) The Company defaults in the payment of the principal (including any Additional Amounts) of
any Note when the same becomes due and payable upon acceleration or redemption or otherwise;

     (c) The Company or any Guarantor fails to comply with any of its covenants or agreements in
the Notes or this Indenture (other than those referred to in clauses (a) and (b) of this Section
6.01), and such failure continues for 60 days after the notice specified below;

 

 

     (d) The Company, any Guarantor or any Significant Subsidiary defaults under any mortgage,
indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Debt for money borrowed by the Company, any such Guarantor or any such Significant
Subsidiary (or the payment of which is guaranteed by the Company, such Guarantor or any such
Significant Subsidiary) whether such Debt or guarantee now exists, or is created after the date of
this Indenture, which default (i) is caused by failure to pay principal of or premium, if any, or
interest on such Debt after giving effect to any grace period provided in such Debt on the date of
such default (“Payment Default”) or (ii) results in the acceleration of such Debt prior to its
express maturity and, in each case, the principal amount of any such Debt, together with the
principal amount of any other such Debt under which there has been a Payment Default or the
maturity of which has been so accelerated, totals U.S.$50,000,000 (or the equivalent thereof at the
time of determination) or more in the aggregate;

     (e) One or more final judgments or decrees for the payment of money in excess of
U.S.$50,000,000 (or the equivalent thereof at the time of determination) in the aggregate are
rendered against the Company, any Guarantor or any Significant Subsidiary and are not paid (whether
in full or in installments in accordance with the terms of the judgment) or otherwise discharged
and, in the case of each such judgment or decree, either (i) an enforcement proceeding has been
commenced by any creditor upon such judgment or decree and is not dismissed within 30 days
following commencement of such enforcement proceedings or (ii) there is a period of 60 days
following such judgment during which such judgment or decree is not discharged, waived or the
execution thereof stayed;

     (f) an involuntary case or other proceeding is commenced against the Company, any Guarantor or
any Significant Subsidiary with respect to it or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect seeking the appointment of a trustee, receiver,
síndico, liquidator, custodian or other similar official of it or any substantial part of its
property, and such involuntary case or other proceeding remains undismissed and unstayed for a
period of 60 days; or an order for relief is entered against the Company, any Guarantor or any
Significant Subsidiary under the bankruptcy laws now or hereafter in effect, and such order is not
being contested by the Company, any Guarantor or any Significant Subsidiary, as the case may be, in
good faith, or has not been dismissed, discharged or otherwise stayed, in each case within 60 days
of being made;

     (g) the Company, any Guarantor or any Significant Subsidiary (i) commences a voluntary case or
other proceeding seeking liquidation, reorganization, concordata or other relief with respect to
itself or its Debts under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or consents to the entry of an order for relief in an involuntary case under
any such law, (ii) consents to the appointment of or taking possession by a receiver, síndico,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company, any
Guarantor or any Significant Subsidiary or for all or substantially all of the Property of the
Company, any Guarantor or any Significant Subsidiary or (iii) effects any general assignment for
the benefit of creditors (an event of default specified in clause (f) or this clause (g) a
“bankruptcy default”);

 

 

     (h) any event occurs that under the laws of the Cayman Islands, Brazil or any political
subdivision thereof or any other country has substantially the same effect as any of the events
referred to in any of clause (f) or (g);

     (i) any Note Guaranty ceases to be in full force and effect, other than in accordance the
terms of this Indenture, or a Guarantor denies or disaffirms its obligations under its Note
Guaranty; or

     (j) TAM S.A. ceases to own, directly or indirectly, 100% of the outstanding share capital of
the Company.

     A Default under clause (c) of this Section 6.01 shall not constitute an Event of Default until
the Trustee or the Holders of at least 25% in principal amount of the Outstanding Notes notify the
Company and the Guarantors of the Default and the Company does not cure such Default within the
time specified after receipt of such notice.

     Section 6.02. Acceleration of Maturity, Rescission and Amendment. If an Event of Default
(other than an Event of Default specified in Section 6.01(f), Section 6.01(g) or Section 6.01(h))
occurs and is continuing, the Trustee or the Holders of not less than 25% in principal amount of
the Outstanding Notes may declare all unpaid principal of and accrued and unpaid interest on all
Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee,
if the notice is given by the Holders), stating that such notice is an “acceleration notice,” and
upon any such declaration such amounts shall become due and payable immediately. If an Event of
Default specified in Section 6.01(f), Section 6.01(g) or Section 6.01(h) occurs and is continuing,
then the principal of and accrued and unpaid interest on all Notes shall become and be immediately
due and payable without any declaration or other act on the part of the Trustee or any Holder.

     At any time after a declaration of acceleration has been made and before a judgment or decree
for payment of the money due has been obtained by the Trustee as hereinafter provided in this
Article, the Holders of a majority in principal amount of the Notes by written notice to the
Company and the Trustee may rescind or annul such declaration if:

     (i) the Company has paid or deposited with the Trustee a sum sufficient to pay (A) all
overdue interest on Outstanding Notes, (B) all unpaid principal of the Notes that has become
due otherwise than by such declaration of acceleration, (C) to the extent that payment of
such interest on the Notes is lawful, interest on such overdue interest (including any
Additional Amounts) as provided herein and (D) all sums paid or advanced by the Trustee and
Agents hereunder and the reasonable compensation, expenses, disbursements and advances of
the Trustee and Agents and their agents and counsel; and

     (ii) all Events of Default have been cured or waived as provided in Section 6.13 other
than the nonpayment of principal that has become due solely because of acceleration.

 

 

     No such rescission shall affect any subsequent Default or Event of Default or impair any right
consequent thereto.

     Section 6.03. Collection Suit by Trustee. If an Event of Default specified in Section
6.01(a) or 6.01(b) occurs, the Trustee, in its own name as trustee of an express trust, (i) may
institute a judicial proceeding for the collection of the whole amount then due and payable on such
Notes for principal and interest (including Additional Amounts), and interest on any overdue
principal and, to the extent that payment of such interest (including Additional Amounts) shall be
legally enforceable, upon any overdue installment of interest (including Additional Amounts), at
the rate borne by the Notes, and, in addition thereto, such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, (ii) may prosecute such
proceeding to judgment or final decree and (iii) may enforce the same against the Company or any
other obligor upon the Notes and collect the moneys adjudged or decreed to be payable in the manner
provided by law out of the property of the Company or any other obligor upon the Notes, wherever
situated.

     If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders by any available proceeding at law or
in equity, whether for the specific enforcement of any covenant or agreement in this Indenture or
in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

     Section 6.04. Other Remedies. If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal of or interest (including
Additional Amounts) on the Notes or to enforce the performance of any provision of the Notes or
this Indenture.

     Section 6.05. Trustee May Enforce Claims Without Possession of Notes. All rights of action
and claims under this Indenture or the Notes may be prosecuted and enforced by the Trustee without
the possession of any of the Notes or the production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Trustee shall be brought in its own name and as trustee
of an express trust, and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, be for the ratable benefit of the Holders of the Notes in respect of which such judgment
has been recovered.

     Section 6.06. Application of Money Collected. Any money collected by the Trustee pursuant
to this Article 6 shall be applied in the following order:

     FIRST: to the Trustee for amounts due to it hereunder (including, without limitation,
under Section 7.06);

     SECOND: to Holders for amounts due and unpaid on the Notes for principal and interest
(including Additional Amounts), ratably, without preference or priority of any kind,
according to the amounts due and payable on the Notes for principal and interest (including
Additional Amounts), respectively; and

 

 

     THIRD: to the Company or, to the extent the Trustee collects any amounts from any
Guarantor, to such Guarantor or as a court of competent jurisdiction may direct.

     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.06. At least 15 days before such record date, the Company shall mail to each Holder and
the Trustee a notice that states the record date, the payment date and amount to be paid.

     Section 6.07. Limitation on Suits. A Holder may not pursue any remedy with respect to this
Indenture or the Notes unless:

     (i) the Holder has previously given to the Trustee written notice stating that an Event
of Default has occurred and is continuing;

     (ii) the Holders of at least 25% in principal amount of the Notes have made a written
request to the Trustee to pursue the remedy in respect of such Event of Default;

     (iii) such Holder or Holders has offered and provided to the Trustee security or
indemnity reasonably satisfactory to the Trustee against any cost, loss, liability or
expense to be incurred in compliance with such request;

     (iv) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer and provision of security or indemnity; and

     (v) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the Notes
outstanding.

     A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

     Section 6.08. Rights of Holders to Receive Principal and Interest. Notwithstanding any
other provision of this Indenture, the right of any Holder to receive payment of principal of and
interest on the Notes held by such Holder, on or after the respective Payment Dates expressed in
the Notes, or to institute suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired of affected without the consent of such Holder.

     Section 6.09. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case, subject to any determination in such proceeding,
the Company, the Guarantors, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

 

     Section 6.10. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due to the trustee hereunder) and the
Holders allowed in any judicial proceedings relative to the Company or any Guarantor, their
respective creditors or their respective properties and, unless prohibited by law or applicable
regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the Trustee any amount
due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and its counsel, and any other amounts due the Trustee under Section 7.06. Nothing herein
shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of
any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes
or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of
any Holder in any such proceeding.

     Section 6.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Note to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article 6 or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by
the Holders, as the case may be.

     Section 6.12. Control by Holders. The Holders of a majority in principal amount of the
Outstanding Notes may direct in writing the time, method and place of conducting any proceeding for
any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee.
However, the Trustee shall be under no obligation to exercise any of the rights or powers under
this Indenture at the request or direction of the Holders if such request or direction conflicts
with any law or with this Indenture or, subject to Section 7.01, if the Trustee determines it is
unduly prejudicial to the rights of other Holders (it being understood that, subject to Sections
7.01 and 7.02, the Trustee shall have no duty to ascertain whether or not such actions or
forbearance are unduly prejudicial to such Holders) or would involve the Trustee in personal
liability or expense; provided, however, that the Trustee may take any other action deemed proper
by the Trustee that is not inconsistent with such request or direction. Prior to taking any action
hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion against all costs, losses, liabilities and expenses caused by taking or not taking such
action.

     Section 6.13. Waiver of Past Defaults and Events of Default. Subject to Section 6.02, the
Holders of a majority in principal amount of the Outstanding Notes by written notice to the Trustee
may waive an existing Default or Event of Default and its consequences except (i) a Default or
Event of Default in the payment of the principal of or interest on a Note or (ii) a Default or
Event of Default in respect of a provision that under Section 9.02 cannot be amended without the
consent of each Holder affected. When a Default or Event of Default is waived, it is

 

 

deemed cured, but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any consequent right.

     Section 6.14. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Notes in Section 2.08, no right
or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     Section 6.15. Waiver of Stay or Extension Laws. The Company and each Guarantor covenant (to
the extent that it may lawfully do so) that it shall not at any time insist upon, or plead, or in
any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants or the performance
of this Indenture or the Notes; and the Company and each Guarantor (to the extent that it may
lawfully do so) hereby expressly waive all benefit or advantage of any such law, and shall not
hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer
and permit the execution of every such power as though no such law had been enacted.

ARTICLE 7

Trustee and Agents

     Section 7.01. Duties of Trustee and Agents. (a) If an Event of Default has occurred and is
continuing and a Responsible Officer has actual knowledge thereof, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in its
exercise as a prudent Person would exercise or use under the circumstances in the conduct of such
Person’s own affairs.

     (b) Except during the continuance of an Event of Default in the case of the Trustee only, (i)
the Trustee and each Agent undertake to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations shall be read into
this Indenture against the Trustee or any Agent; and (ii) in the absence of bad faith on the part
of the Trustee or any Agent, the Trustee or such Agent, as the case may be, may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee or such Agent, as the case may be, and conforming
to the requirements of this Indenture. However, in the case of any certificates or opinions which
by any provision hereof are specifically required to be furnished to the Trustee or any Agent, the
Trustee or such Agent, as the case may be, shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of the mathematical calculations or other facts stated therein).

 

 

     (c) The Trustee may not be relieved from liability for its own gross negligence, bad faith or
willful misconduct, except that:

     (i) this Section 7.01(c) does not limit the effect of Section 7.01(b);

     (ii) neither the Trustee nor any Agent shall be liable for any error of judgment made
in good faith by a Responsible Officer unless it is proved that the Trustee or such Agent,
as the case may be, was grossly negligent in ascertaining the pertinent facts; and

     (iii) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.07 or
exercising any trust or power conferred upon it under this Indenture.

     (d) Neither the Trustee nor any Agent shall be liable for interest on any money received by it
except as each may agree in writing with the Company.

     (e) Money held in trust by the Trustee or any Agent need not be segregated from other funds
except to the extent required by law.

     (f) No provision of this Indenture shall require the Trustee or any Agent to expend or risk
its own funds or otherwise incur personal financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable
grounds to believe that repayment of such funds and/or adequate indemnity against such risk or
liability is not satisfactorily assured to it.

     (g) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee and any Agent shall be subject to the provisions of this
Section 7.01.

     Section 7.02. Rights of Trustee. (a) The Trustee and each Agent may rely upon, and shall be
protected in acting or refraining from acting based upon, any document believed by it to be genuine
and to have been signed or presented by the proper Person. Neither the Trustee nor any Agent need
investigate any fact or matter stated in any such document.

     (b) Before the Trustee or any Agent acts or refrains from acting, it may require an Officers’
Certificate, the written advice of a qualified tax expert or an Opinion of Counsel. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance on the
Officers’ Certificate, the qualified tax expert’s written advice or Opinion of Counsel.

     (c) The Trustee or any Agent may act through agents and shall not be responsible for the
willful misconduct or gross negligence of any agent appointed with due care.

     (d) Any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate of the Company (unless other evidence in respect
thereof be herein specifically prescribed); and any resolution of the Board of Directors of the
Company may be evidenced to the Trustee or any Agent by copies thereof certified by the Secretary
or an Assistant Secretary (or equivalent officer) of the Company.

 

 

     (e) Neither the Trustee nor any Agent shall be under an obligation to exercise any of the
trusts or powers vested in it by this Indenture at the request, order or direction of any of the
Holders pursuant to the provisions of this Indenture, unless such Holders shall have offered to the
Trustee or such Agent security or indemnity reasonably satisfactory to the Trustee against the
costs, expenses and liabilities that might be incurred thereby.

     (f) Neither the Trustee nor any Agent shall be liable for any action taken or omitted by it in
good faith and believed by it to be authorized or within the discretion, rights or powers conferred
upon it by this Indenture.

     (g) Neither the Trustee nor any Agent shall be liable for any action it takes or omits to take
in good faith which it believes to be authorized or within its rights or powers; provided that the
conduct of the Trustee or any such Agent does not constitute willful misconduct, gross negligence
or bad faith.

     (h) Each of the Trustee and any Agent may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes shall be full and
complete authorization and protection from liability in respect to any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

     (i) Neither the Trustee nor any Agent shall be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document unless, in the case of the Trustee, requested in writing by the Holders of not
less than a majority in aggregate principal amount of the Notes Outstanding; provided that if the
payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of the Trustee, not
satisfactorily assured to the Trustee by the security afforded to it by the terms of this
Indenture, the Trustee may require from the Holders indemnity satisfactory to the Trustee against
such expenses or liabilities as a condition to proceeding; the reasonable expenses of every such
investigation shall be paid by the Company or, if paid by the Trustee, shall be reimbursed by the
Company upon demand.

     (j) Neither the Trustee nor any Paying Agent shall be required to invest, or shall be under
any liability for interest, on any moneys at any time received by it pursuant to any of the
provisions of this Indenture or the Notes except as the Trustee or any Paying Agent may otherwise
agree with the Company. Such moneys need not be segregated from other funds except to the extent
required by mandatory provisions of law.

     (k) In no event shall the Trustee or any Agent be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including, but not limited to, lost profits),
even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the
form of action.

 

 

     (l) The permissive rights of the Trustee enumerated herein shall not be construed as duties of
the Trustee.

     (m) The Trustee and each Agent shall accept and act upon Written Directions when given to the
Trustee or such Agent, as the case may be, in the form of Facsimile Instructions. Subsequent to
the transmission of a Written Direction in the form of a Facsimile Instruction, the Company agrees
to transmit to the Trustee or such Agent, in a timely manner, the originally executed Written
Direction if required pursuant to the Governing Documents or at the request of the Trustee or such
Agent. Additionally, the Trustee and each Agent shall accept a Facsimile Signature as if each such
Facsimile Signature were an original signature, if the Trustee or such Agent believes in good faith
that such signature is that of the individual whose signature it purports to be.

     (n) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder.

     Section 7.03. Individual Rights of Trustee. The Trustee and any Paying Agent, Registrar or
co-registrar or any other agent of the Company or of the Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee, Paying Agent, Registrar or
such other agent.

     Section 7.04. Trustee’s Disclaimer. Neither the Trustee nor any Agent shall be responsible
for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it
shall not be accountable for the Company’s use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee’s certificate of
authentication.

     Section 7.05. Notice of Defaults and Events of Default. If a Default or Event of Default
occurs and is continuing, and if it is known to the Responsible Officer, the Trustee shall mail to
each Holder notice of the Default or Event of Default within 90 days after a Responsible Officer
acquires actual knowledge of such Default or Event of Default. Except in the case of a Default or
Event of Default in payment of principal of or interest on any Note, the Trustee may withhold the
notice and shall be protected from withholding the notice if and so long as a committee of its
Responsible Officers of the Trustee in good faith determines that withholding the notice is in the
interests of Holders. For all purposes of this Indenture and the Notes, the Trustee shall not be
deemed to have knowledge of a Default or Event of Default unless either (i) an attorney, authorized
officer or agent of the Trustee with direct responsibility for the Indenture has actual knowledge
of such Default or Event of Default or (ii) written notice of such Default or Event of Default has
been given to the Trustee by the Company or any Holder.

     Section 7.06. Compensation and Indemnity. The Company agrees to pay to the Trustee and each
Agent from time to time such compensation as shall be agreed upon in writing for its

 

 

services. The Trustee’s compensation shall not be limited by any law regarding compensation
of a trustee of an express trust. The Company agrees to reimburse promptly the Trustee and each
Agent upon request for all reasonable out-of-pocket expenses incurred or made by it, including
costs of collection, in addition to the compensation for its services. Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the Trustee’s and each
Agent’s agents, counsel, accountants and experts. Payments of any such expenses by the Company to
the Trustee or any Agent, as the case may be, shall be made free and clear of and without
withholding or deduction for or on account of any present or future taxes, duties, assessments,
fees or other governmental charges of whatever nature (and any fines, penalties or interest related
thereto) imposed or levied by or on behalf of the Cayman Islands, Brazil or any political
subdivision or authority thereof or therein having power to tax, unless such withholding or
deduction is required by law. In that event, the Company shall pay to the Trustee or Agent, as the
case may be, such Additional Amounts as may be necessary in order that every net payment made by
the Company to the Trustee and such Agent, as the case may be, after deducting or withholding for
or on account of any present or future tax, penalty, fine, duty, assessment or other governmental
charge imposed upon or as a result of such payment by the Cayman Islands, Brazil or any political
subdivision or taxing authority thereof or therein shall not be less than the amount then due and
payable to the Trustee or the Principal Paying Agent, as the case may be. The Company shall
indemnify each of the Trustee and each Agent against any and all loss, liability or expense
(including reasonable attorneys’ fees and expenses) incurred by it without gross negligence or bad
faith on its part arising out of and in connection with the administration of this Indenture, the
performance of its respective duties hereunder, and the exercise of its rights hereunder including,
without limitation, the costs and expenses of defending itself against any claim or liability and
of complying with any process served upon it or any of its officers in connection with the exercise
or performance of any of its powers or duties under this Indenture. The Company undertakes to
indemnify the Trustee and each of the Agents and their affiliates against all losses, liabilities,
including any and all tax liabilities, which, for the avoidance of doubt, shall include both
Brazilian and Cayman Islands taxes and associated penalties, costs, claims, actions, damages,
expenses or demands which any of them may incur or which may be made against any of them as a
result of or in connection with the appointment of or the exercise of the powers and duties or
rights by the Trustee or any Agent or its affiliates under this Indenture except as may result from
its own default, gross negligence or bad faith or that of its directors, officers or employees or
any of them, or breach by it of the terms of this Indenture. The Trustee and each Agent shall
notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee
or such Agent to so notify the Company shall not relieve the Company of its obligations hereunder.
If the Trustee or Agent, as the case may be, determines in its reasonable discretion that no
conflict of interest (or potential conflict of interest) exists, the Company will be entitled to
participate in the Trustee’s defense of the claim or Agent’s defense of the claim, as the case may
be, and the Trustee or such Agent may have separate counsel and the Company shall pay the fees and
expenses of such counsel.

     To secure the payment obligations of the Company in this Section 7.06, the Trustee shall have
a lien prior to the Notes on all money or property held or collected by the Trustee or the
Principal Paying Agent, except that held in trust to pay principal of and interest on particular
Notes.

 

 

     The obligations of the Company pursuant to this Section 7.06 shall survive the payment of the
Notes, resignation or removal of the Trustee or any Agent and the satisfaction and discharge of
this Indenture. When the Trustee incurs expenses after the occurrence of a Default or Event of
Default specified in Section 6.01(h), the expenses are intended to constitute expenses of
administration under any bankruptcy law.

     The Company acknowledges that none of the Trustee, the Principal Paying Agent or any other
Agent makes any representations as to the interpretation or characterization of the transactions
herein undertaken for tax or any other purpose, in any jurisdiction. The Company represents that
it has fully satisfied itself as to any tax impact of this Indenture before agreeing to the terms
herein, and is responsible for any and all federal, state, local, income, franchise, withholding,
value added, sales, use, transfer, stamp or other taxes imposed by any jurisdiction in respect of
this Indenture.

     The Company agrees to pay any and all stamp and other documentary taxes or duties which may be
payable in connection with the execution, delivery, performance and enforcement of this Indenture
by the Trustee or any Agent.

     Section 7.07. Replacement of Trustee. The Trustee may resign at any time by so notifying
the Company in writing. The Holders of a majority in principal amount of the Notes may remove the
Trustee by so notifying the Trustee in writing and may appoint a successor Trustee. The Company
shall remove the Trustee if:

     (i) the Trustee fails to comply with Section 7.09;

     (ii) the Trustee is adjudged a bankrupt or insolvent;

     (iii) a receiver or other public officer takes charge of the Trustee or its property; or

     (iv) the Trustee otherwise becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason (the Trustee in such event being referred to herein as the retiring Trustee) the Company
shall promptly appoint a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.06.

     If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of a majority in principal

 

 

amount of the Notes may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

     If the Trustee fails to comply with Section 7.09, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     Notwithstanding the replacement of the Trustee pursuant to this Section 7.07, the Company’s
obligation under Section 7.06 shall continue for the benefit of the retiring Trustee.

     Section 7.08. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business (including this
transaction) or assets to, another corporation or banking association, the resulting, surviving or
transferee corporation without any further act shall be the successor Trustee.

     In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to the Trustee may
authenticate such Notes in the name of the successor to the Trustee; and in all such cases such
adopted certificates shall have the full force of all provisions within the Notes or in this
Indenture relating to the certificate of the Trustee.

     Section 7.09. Eligibility; Disqualification. The Trustee hereunder shall at all times be a
corporation, bank or trust company organized and doing business under the laws of the United States
or any state thereof (i) which is authorized under such laws to exercise corporate trust power,
(ii) is subject to supervision or examination by governmental authorities, (iii) shall have at all
times a combined capital and surplus of at least U.S.$50,000,000 as set forth in its most recent
published annual report of condition and (iv) shall have its Corporate Trust Office in The City of
New York. If at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section 7.09, it shall resign immediately in the manner and with the effect specified in
Section 7.07.

ARTICLE 8

Discharge of Indenture; Defeasance

     Section 8.01. Discharge of Liability on Notes. (a) When (i) the Company or any Guarantor
delivers to the Trustee all Outstanding Notes (other than Notes replaced pursuant to Section 2.08)
for cancellation or (ii) all Outstanding Notes have become due and payable and the Company or any
Guarantor deposits in trust, for the benefit of the Holders, with the Trustee finally collected
funds sufficient to pay at Maturity all Outstanding Notes and interest thereon (other than Notes
replaced pursuant to Section 2.08 and if in any such case the Company or any Guarantor pays all
other sums payable hereunder by the Company or such Guarantor, then this Indenture, and the
obligations of the Company and the Guarantors pursuant hereto, shall, subject to Sections 8.01(d)
and 8.06, cease to be of further effect. The Trustee shall acknowledge

 

 

satisfaction and discharge of this Indenture on demand of the Company or any Guarantor
accompanied by an Officers’ Certificate and an Opinion of Counsel (each stating that all conditions
precedent herein provided relating to the satisfaction and discharge of this Indenture have been
complied with) and at the cost and expense of the Company or any Guarantor.

     (b) Subject to Sections 8.01(d), 8.02 and 8.06, the Company or any Guarantor at any time may
terminate (i) all its obligations under this Indenture and the Notes (“legal defeasance option”) or
(ii) its obligations under Sections 4.07, 4.08, 4.09, 5.01(iii) and 5.02 and the operation of
Sections 6.01(c), 6.01(d), 6.01(e) and 6.01(j) (“covenant defeasance option”). The legal
defeasance option may be exercised notwithstanding any prior exercise of the covenant defeasance
option. Upon exercise by the Company or any Guarantor of the legal defeasance option or the
covenant defeasance option, each Guarantor’s obligations under its Note Guaranty will terminate.

     If the legal defeasance option is exercised, payment of the Notes may not be accelerated
because of an Event of Default with respect thereto. If the covenant defeasance option is
exercised, payment of the Notes may not be accelerated because of an Event of Default specified in
Sections 6.01(c), 6.01(d), 6.01(e) or 6.01(j).

     Upon satisfaction of the conditions set forth herein and upon request of the Company or any
Guarantor, the Trustee shall acknowledge in writing the discharge of the obligations of the Company
or any Guarantor hereunder except those specified in Section 8.01(c).

     (c) Notwithstanding Section 8.01(a) and Section 8.01(b), Sections 2.03, 2.04, 2.05, 2.06,
2.07, 2.08, 4.06, 7.06, 7.07, 8.04, 8.05 and 8.06 shall survive until the Notes have been paid in
full. Thereafter, the obligations of the Company or the applicable Guarantor pursuant to Sections
7.06, 7.07, 8.04 and 8.05 shall survive. Furthermore, each Guarantor’s obligations to pay fully
and punctually all amounts payable by the Company or any Guarantor to the Trustee under this
Indenture shall survive.

     Section 8.02. Conditions to Defeasance. The Company or any Guarantor may exercise the legal
defeasance option or the covenant defeasance option only if:

     (a) the Company or any Guarantor irrevocably deposits or causes to be deposited with the
Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely to, the
benefit of the Holders (the “defeasance trust”) pursuant to an irrevocable trust and security
agreement in form and substance satisfactory to the Trustee, money or U.S. Government Obligations,
or a combination thereof, sufficient for the payment of principal of and interest on all the Notes
to Maturity or redemption;

     (b) the Company or any Guarantor delivers to the Trustee a certificate from an internationally
recognized firm of independent accountants expressing their opinion that the payments of principal
of and interest on the Notes when due and without reinvestment on the deposited U.S. Government
Obligations plus any deposited money without investment and after payment of all federal, state and
local taxes or other charges or assessments in respect thereof payable by the Trustee shall provide
cash at such times and in such amounts as shall be sufficient

 

 

to pay principal of and interest on all the Notes when due at Maturity or on redemption, as
the case may be;

     (c) 123 days pass after the deposit is made in accordance with the terms of Section 8.02(a)
and during such 123-day period no Default or Event of Default specified in Section 6.01(h) occurs
which is continuing at the end of the period;

     (d) no Default or Event of Default has occurred and is continuing on the date of such deposit
and after giving effect thereto;

     (e) the deposit does not constitute a default or event of default under any other agreement
binding on the Company or any Guarantor;

     (f) the Company or any Guarantor delivers to the Trustee an Opinion of Counsel to the effect
that the trust resulting from the deposit does not constitute, or is not qualified as, a regulated
investment company under the U.S. Investment Company Act of 1940, as amended;

     (g) the Company or any Guarantor delivers to the Trustee an Opinion of Counsel of recognized
standing with respect to Brazilian tax matters stating that, under Brazilian law, Holders (other
than Brazilian persons) (1) shall not recognize income gain or loss for Brazilian tax purposes as a
result of such deposit and defeasance and shall be subject to Brazilian tax on the same amounts, in
the same manner and at the same times as would have been the case if such deposit and defeasance
had not occurred and (2) payments from the defeasance trust to any such Holder shall not be subject
to withholding or deduction for or on account of any taxes, duties, assessments or other
governmental charges under Brazilian law;

     (h) in the case of the legal defeasance option, the Company or any Guarantor delivers to the
Trustee an Opinion of Counsel of recognized standing with respect to U.S. Federal income tax
matters stating that (1) the Company or such Guarantor has received from, or there has been
published by, the U.S. Internal Revenue Service a ruling, or (2) since the date of this Indenture
there has been a change in the applicable U.S. federal income tax law, in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, the Holders shall not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such deposit and
defeasance and shall be subject to U.S. federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such deposit and defeasance had not occurred;

     (i) in the case of the covenant defeasance option, the Company or any Guarantor delivers to
the Trustee an Opinion of Counsel of recognized standing with respect to U.S. federal income tax
matters to the effect that the Holders shall not recognize income, gain or loss for U.S. federal
income tax purposes as a result of such deposit and defeasance and shall be subject to U.S. federal
income tax on the same amounts, in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred;

     (j) the Company or any Guarantor delivers to the Trustee an Opinion of Counsel of recognized
standing with respect to Cayman Islands tax matters and Opinions of Counsel of

 

 

recognized standing with respect to tax matters of any other jurisdiction in which the Company
is conducting business in a manner which causes the Holders of the Notes to be liable for taxes on
payments under the Notes for which they would not have been so liable but for such conduct of
business in such other jurisdiction, stating that the Holders will not recognize income, gain or
loss in the relevant jurisdiction as a result of such deposit and the defeasance and will be
subject to taxes in the relevant jurisdiction (including any withholding taxes) on the same amount
and in the same manner and at the same times as would otherwise have been the case if such deposit
and defeasance had not occurred;

     (k) the Company or any Guarantor delivers to the Trustee an Opinion of Counsel, in form and
substance reasonably satisfactory to Trustee, to the effect that, after the passage of 123 days
following the deposit, the trust funds shall not be subject to any applicable bankruptcy,
insolvency, reorganization or similar law affecting creditors’ rights generally; and

     (l) the Company or any Guarantor delivers to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the defeasance and discharge of
the Notes as contemplated by this Article 8 have been complied with.

     Before or after a deposit, the Company or any Guarantor may make arrangements satisfactory to
the Trustee for the redemption of Notes at a future date in accordance with Article 3.

     Section 8.03. Application of Trust Money. The Trustee shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to Section 8.02. It shall apply the deposited
money and the money from U.S. Government Obligations through the Principal Paying Agent or Paying
Agents and in accordance with this Indenture to the payment of principal of and interest on the
Notes.

     Section 8.04. Repayment to Company. Upon termination of the trust established pursuant to
Section 8.02, the Trustee and each Paying Agent shall promptly pay to the Company upon request, any
excess cash or U.S. Government Obligations held by them.

     The Trustee and each Paying Agent shall pay to the Company, upon request, any money held by
them for the payment of principal of or interest on the Notes that remains unclaimed for two years
after the due date for such payment of principal or interest, and, thereafter, the Trustee and each
Paying Agent, as the case may be, shall not be liable for payment of such amounts hereunder and the
Holders shall be entitled to such recovery of such amounts only from the Company.

     Section 8.05. Indemnity for U.S. Governmental Obligations. The Company shall pay and shall
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against deposited
U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations.

     Section 8.06. Reinstatement. If the Trustee or any Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article 8 by reason of any legal

 

 

proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the obligations of the Company
and the Guarantors under this Indenture, the Notes and the Note Guarantees shall be revived and
reinstated as though no deposit had occurred pursuant to this Article 8 until such time as the
Trustee or such Paying Agent is permitted to apply all such money or U.S. Government Obligations in
accordance with this Article 8; provided, however, that, if the Company or any Guarantor has made
any payment of principal of or interest on any Notes because of the reinstatement of its
obligations, the Company and the Guarantors shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or U.S. Government Obligations held by the
Trustee or such Paying Agent.

ARTICLE 9

Amendments

     Section 9.01. Without Consent of Holders. The Company and the Guarantors, when authorized
by a Board Resolution, and the Trustee may amend or supplement this Indenture or the Notes, without
notice to or consent or vote of any Holder for the following purposes:

     (i) to cure any ambiguity, omission, defect or inconsistency;

     (ii) to add guarantees or collateral with respect to the Notes;

     (iii) to comply with Section 5.01;

     (iv) to provide for any guarantee of the Notes, to secure the Notes or to confirm and
evidence the release, termination or discharge of any guarantee of the Notes when such
release, termination or discharge is permitted by this Indenture;

     (v) to add to the covenants of the Company or the Guarantors for the benefit of the
Holders;

     (vi) to surrender any right herein conferred upon the Company or the Guarantors;

     (vii) to evidence and provide for the acceptance of an appointment by a successor
Trustee;

     (viii) to provide for the issuance of Additional Notes;

     (ix) to make any other change that does not materially and adversely affect the rights
of any Holder or to conform this Indenture to the section “Description of Notes” in the
Offering Memorandum; or

     (x) to comply with any applicable requirements of the SEC, including in connection with
a required qualification of the Indenture under the Trust Indenture Act

 

 

provided that, in the case of clause (i) or (ii) above, the Company has delivered to the Trustee an
Opinion of Counsel and an Officers’ Certificate, each stating that such amendment or supplement
complies with the provisions of this Section 9.01.

     Upon the written request of the Company, accompanied by a Board Resolution authorizing the
execution of any supplemental indenture, and upon receipt by the Trustee of the documents described
in Section 9.05, the Trustee shall join with the Company and the Guarantors in the execution of any
supplemental indenture authorized or permitted by the terms of this Indenture and to make any
further appropriate agreements and stipulations which may be therein contained, but the Trustee
shall not be obligated to enter into any such supplemental indenture which affects its own rights,
duties or immunities under this Indenture or otherwise.

     Each Guarantor must consent to any amendment or supplement hereunder.

     Section 9.02. With Consent of Holders. Except as specified in Section 9.01, the Company,
when authorized by a Board Resolution, the Guarantors and the Trustee, together, may amend or
supplement this Indenture or the Notes with the written consent of the Holders of at least a
majority in principal amount of the Outstanding Notes for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Indenture or modifying in
any manner the rights of the Holders under this Indenture, and the Holders of at least a majority
in principal amount of the Outstanding Notes may, except as set forth below, waive any past Default
or compliance with any provision of this Indenture; provided, however, that, without the consent of
each Holder affected, an amendment or waiver may not:

     (i) reduce the principal amount of or change the Stated Maturity of any payment on any
Note;

     (ii) reduce the rate of any interest on any Note;

     (iii) reduce the amount payable upon the redemption of any Note or change the time at
which any Note may be redeemed;

     (iv) change the currency for payment of principal of, or interest or any Additional
Amounts on, any Note;

     (v) impair the right to institute suit for the enforcement of any right to payment on
or with respect to any Note;

     (vi) waive a Default or Event of Default in payment of principal of and interest on the
Notes;

     (vii) reduce the principal amount of Notes whose Holders must consent to any amendment,
supplement or waiver;

     (viii) make any change in this first paragraph of this Section 9.02;

 

 

     (ix) modify or change any provision of the Indenture affecting the ranking of the Notes
or any Note Guaranty in a manner adverse to the Holders of the Notes; or

     (x) make any change in any Note Guaranty that would adversely affect the Noteholders.

provided that the provisions of the covenants described in Section 4.11 may, except as provided
above, be amended or waived with the consent of Holders holding not less than 66 2/3% in aggregate
principal amount of the Notes.

     Upon the written request of the Company, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of
the consent of the Holders as aforesaid, and upon receipt by the Trustee of the documents described
in Section 9.05 hereof, the Trustee shall join with the Company and the Guarantors in the execution
of such supplemental indenture but the Trustee shall not be obligated to enter into any such
supplemental indenture which affects its own rights, duties or immunities under this Indenture or
otherwise.

     The Company shall mail to Holders prior written notice of any amendment or waiver proposed to
be adopted under this Section 9.02.

     It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent
approves the substance thereof.

     After an amendment or waiver under this Section 9.02 becomes effective, the Company shall mail
to Holders a notice briefly describing such amendment or waiver. The failure to give such notice
to all Holders, or any defect therein, shall not impair or affect the validity of an amendment or
waiver under this Section 9.02.

     Each Guarantor must consent to the amendment, supplement or waiver under this Section 9.02.

     Section 9.03. Revocation and Effect of Consents and Waivers. (a) A consent to an amendment
or a waiver by a Holder of Notes shall bind the Holder and every subsequent Holder of that Note or
portion of the Note that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent or waiver is not made on the Note. However, any such Holder or subsequent Holder
may revoke the consent or waiver as to such Holder’s Note or portion of the Note if the Trustee
receives the written notice of revocation at least one Business Day prior to the date the amendment
or waiver becomes effective. After it becomes effective, an amendment or waiver shall bind every
Holder.

     (b) The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to give their consent or take any other action described above.
If a record date is fixed, then notwithstanding Section 9.03(a) those Persons who were Holders at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to

 

 

give such consent or to revoke any consent previously given or to take any such action,
whether or not such Persons continue to be Holders after such record date. No such consent shall
be valid or effective for more than 120 days after such record date.

     Section 9.04. Notation on or Exchange of Notes. If an amendment changes the terms of a
Note, the Company may require the Holder to deliver the Note to the Trustee. If so instructed by
the Company, the Trustee may place an appropriate notation on the Note regarding the changed terms
and return it to the Holder. Alternatively, if the Company so determines, the Company in exchange
for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed
terms. Failure to make the appropriate notation or to issue a new Note shall not affect the
validity of such amendment.

     Section 9.05. Trustee to Sign Amendments. The Trustee shall sign any amendment authorized
pursuant to this Article 9 if the amendment, waiver or supplement does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. In signing such amendment, waiver or
supplement, in addition to the documents required by Section 11.03, the Trustee shall be entitled
to receive indemnity satisfactory to the Trustee and to receive, and, subject to Section 7.01,
shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel as
conclusive evidence that such amendment, waiver or supplemental indenture is authorized or
permitted by this Indenture, that it is not inconsistent herewith, and that it shall be valid and
binding upon the Company in accordance with its terms.

     Section 9.06. Payment for Consent. Neither the Company nor any of its Affiliates shall,
directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee
or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions of this Indenture or the Notes unless such consideration is offered to be
paid or agreed to be paid to all Holders which so consent, waive or agree to amend in the time
frame set forth in solicitation documents relating to such consent, waiver or agreement.

ARTICLE 10

Guarantee

     Section 10.01. The Note Guaranty. Subject to the provisions of this Article, each Guarantor
hereby irrevocably and unconditionally guarantees, jointly and severally, on an unsecured basis,
the full and punctual payment (whether at Stated Maturity, upon redemption, acceleration, or
otherwise) of the principal of, premium, if any, and interest on, and all other amounts payable
under, each Note, and the full and punctual payment of all other amounts payable by the Company
under the Indenture. Upon failure by the Company to pay punctually any such amount, each Guarantor
shall forthwith on demand pay the amount not so paid at the place and in the manner specified in
this Indenture.

     Section 10.02. Guaranty Unconditional. The obligations of each Guarantor hereunder are
unconditional and absolute and, without limiting the generality of the foregoing, will not be
released, discharged or otherwise affected by:

 

 

     (i) any extension, renewal, settlement, compromise, waiver or release in respect of any
obligation of the Company under this Indenture or any Note, by operation of law or
otherwise;

     (ii) any modification or amendment of or supplement to this Indenture or any Note;

     (iii) any change in the corporate existence, structure or ownership of the Company, or
any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Company
or its assets or any resulting release or discharge of any obligation of the Company
contained in this Indenture or any Note;

     (iv) the existence of any claim, set-off or other rights which the Guarantor may have
at any time against the Company, the Trustee or any other Person, whether in connection with
the Indenture or any unrelated transactions; provided that nothing herein prevents the
assertion of any such claim by separate suit or compulsory counterclaim;

     (v) any invalidity or unenforceability relating to or against the Company for any
reason of this Indenture or any Note, or any provision of applicable law or regulation
purporting to prohibit the payment by the Company of the principal of or interest on any
Note or any other amount payable by the Company under the Indenture; or

     (vi) any other act or omission to act or delay of any kind by the Company, the Trustee
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 such
Guarantor’s obligations hereunder.

     Section 10.03. Discharge; Reinstatement. Each Guarantor’s obligations hereunder will remain
in full force and effect until the principal of, premium, if any, and interest on the Notes and all
other amounts payable by the Company under the Indenture have been paid in full. If at any time
any payment of the principal of, premium, if any, or interest on any Note or any other amount
payable by the Company under this Indenture is rescinded or must be otherwise restored or returned
upon the insolvency, bankruptcy or reorganization of the Company or otherwise, each Guarantor’s
obligations hereunder with respect to such payment will be reinstated as though such payment had
been due but not made at such time.

     Section 10.04. Waiver by the Guarantors. Each Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest and any notice not provided for herein, as well as any
requirement that at any time any action be taken by any Person against the Company or any other
Person.

     Section 10.05. Subrogation and Contribution. Upon making any payment with respect to any
obligation of the Company under this Article, the Guarantor making such payment will be subrogated
to the rights of the payee against the Company with respect to such obligation; provided that the
Guarantor may not enforce either any right of subrogation, or any right to receive payment in the
nature of contribution, or otherwise, from any other Guarantor, with

 

 

respect to such payment so long as any amount payable by the Company hereunder or under the
Notes remains unpaid.

     Section 10.06. Stay of Acceleration. If acceleration of the time for payment of any amount
payable by the Company under this Indenture or the Notes is stayed upon the insolvency, bankruptcy
or reorganization of the Company, all such amounts otherwise subject to acceleration under the
terms of this Indenture are nonetheless payable by the Guarantors hereunder forthwith on demand by
the Trustee or the Holders.

     Section 10.07. Limitation on Amount of Guaranty. Notwithstanding anything to the contrary
in this Article, each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that
it is the intention of all such parties that the Note Guaranty of such Guarantor not constitute a
fraudulent conveyance under applicable fraudulent conveyance provisions of the laws of the Cayman
Islands, Brazil, the United States Bankruptcy Code or any comparable provision of state law. To
effectuate that intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of each Guarantor under its Note Guaranty are limited to the maximum amount
that would not render the Guarantor’s obligations subject to avoidance under applicable fraudulent
conveyance provisions of the laws of the Cayman Islands, Brazil, the United States Bankruptcy Code
or any comparable provision of state law.

     Section 10.08. Execution and Delivery of Guaranty. The execution by each Guarantor of this
Indenture (or a supplemental indenture in the form of Exhibit B) evidences the Note Guaranty of
such Guarantor, whether or not the person signing as an officer of the Guarantor still holds that
office at the time of authentication of any Note. The delivery of any Note by the Trustee after
authentication constitutes due delivery of the Note Guaranty set forth in this Indenture on behalf
of each Guarantor.

     Section 10.09. Release of Guaranty. The Note Guaranty of a Guarantor will terminate upon:

     (i) a sale or other disposition (including by way of consolidation or merger) of the
Guarantor or the sale or disposition of all or substantially all the assets of the Guarantor
(in each case other than to the Company or a Subsidiary) otherwise permitted by this
Indenture;

     (ii) if the Note Guaranty was required pursuant to the terms of this Indenture, the
cessation of the circumstances requiring the Note Guaranty; or

     (iii) defeasance or discharge of the Notes, as provided in Article 8.

     Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of
Counsel to the foregoing effect, the Trustee will execute any documents reasonably requested by the
Company in writing in order to evidence the release of the Guarantor from its obligations under its
Note Guaranty.

 

 

ARTICLE 11

Miscellaneous

     Section 11.01. Provisions of Indenture and Notes for the Sole Benefit of Parties and Holders
of Notes. Nothing in this Indenture or the Notes, expressed or implied, shall give to any Person
other than the parties hereto and their successors hereunder and the Holders of the Notes any
benefit or any legal or equitable right, remedy or claim under this Indenture or the Notes.

     Section 11.02. Notices. Any request, demand, authorization, direction, notice, consent,
waiver or other communication or document provided or permitted by this Indenture to be made upon,
given, provided or furnished to, or filed with, any party to this Indenture shall, except as
otherwise expressly provided herein, be in writing and shall be deemed to have been received only
upon actual receipt thereof by prepaid first class mail, courier, telecopier or electronic
transmission, addressed to the relevant party as follows:

To the Company and the Guarantors:

Av. Jurandir, 856, Lote 4

04072 000

São Paulo, SP

Brasil

Attention: Legal Department

Facsimile: 55-11-5582-8813

With a copy to:

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

USA

Attention: Sara Hanks

Facsimile: 1-212-878-8014

To the Trustee, Registrar, Transfer Agent or Principal Paying Agent:

The Bank of New York

Corporate Trust Administration- Global Finance Americas

101 Barclay Street, Floor 4 East

New York, New York 10286

USA

Telephone: (212) 815-5346

Facsimile: (212) 815-5802/3

With a Copy to the Paying Agent and Transfer Agent in Luxembourg:

The Bank of New York (Luxembourg) S.A.

Aerogolf Center

 

 

1A Hoehenhof

L-1736 Senningerberg

Luxembourg

     Notices or communications to a Guarantor will be deemed given if given to the Company

     Any party by written notice to the other parties may designate additional or different
addresses for subsequent notices or communications.

     Where this Indenture provides for the giving of notice to Holders, such notice shall be deemed
to have been given upon (i) the mailing of first class mail, postage prepaid, of such notice to
Holders of the Notes at their registered addresses as recorded in the Register; and (ii) for so
long as the Notes are listed on the Euro MTF market of the Luxembourg Stock Exchange, and it is
required by the rules of the Luxembourg Stock Exchange, publication of such notice to the Holders
of the Notes in English in a leading newspaper having general circulation in Luxembourg or, if such
publication is not practicable, in one other leading English language daily newspaper with general
circulation in Europe, such newspaper being published on each Business Day in morning editions,
whether or not it shall be published in Saturday, Sunday or holiday editions.

     The Company shall also cause all other such publications of such notices as may be required
from time to time by applicable Brazilian law, including, without limitation, those required under
the applicable regulations issued by the CVM.

     Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed to a Holder in
the manner provided above, it is duly given, whether or not the addressee receives it.

     Section 11.03. Officers’ Certificate and Opinion of Counsel as to Conditions Precedent.
Upon any request or application by the Company to the Trustee to take or refrain from taking any
action under this Indenture, the Company shall furnish to the Trustee:

     (i) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 11.04) stating that, in the
opinion of the signers, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

     (ii) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which shall include the statements set forth in Section 11.04) stating that, in the opinion
of such counsel, all such conditions precedent have been complied with.

     Section 11.04. Statements Required in Officers’ Certificate or Opinion of Counsel. Each
certificate or opinion with respect to compliance with a covenant or condition provided for in this
Indenture shall include substantially:

 

 

     (i) a statement that each Person making or rendering such Officers’ Certificate or
Opinion of Counsel has read such covenant or condition and the related definitions;

     (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such Officers’ Certificate or Opinion of
Counsel are based;

     (iii) a statement that, in the opinion of each such Person, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

     (iv) a statement as to whether or not, in the opinion of each such Person, such
covenant or condition has been complied with.

     Section 11.05. Rules by Trustee, Registrar, Paying Agent and Transfer Agents. The Trustee
may make reasonable rules for action by or a meeting of Holders. The Registrar, the Paying Agents
and the Transfer Agents may make reasonable rules for their functions.

     Section 11.06. Currency Indemnity. U.S. Dollars are the sole currency of account and
payment for all sums payable by the Company or the Guarantors under or in connection with the Notes
and the Note Guarantees, including damages. Any amount received or recovered in a currency other
than U.S. Dollars (whether as a result of, or of the enforcement of, a judgment or order of a court
of any jurisdiction, in the winding-up or dissolution of the Company or otherwise) by any Holder of
a Note in respect of any sum expressed to be due to it from the Company or any Guarantor shall only
constitute a discharge to the Company or the Guarantors, as the case may be, to the extent of the
U.S. Dollar amount which the recipient is able to purchase with the amount so received or recovered
in that other currency on the date of that receipt or recovery (or, if it is not practicable to
make that purchase on that date, on the first date on which it is practicable to do so). If that
U.S. Dollar amount is less than the U.S. Dollar amount expressed to be due to the recipient under
any Note, the Company and the Guarantors shall indemnify such Holder against any loss sustained by
it as a result, and if the amount of U.S. Dollars so purchased is greater than the sum originally
due to such Holder, such Holder shall, by accepting a Note, be deemed to have agreed to repay such
excess. In any event, the Company and the Guarantors shall indemnify the recipient against the
cost of making any such purchase.

     For the purposes of this Section 11.06, it shall be sufficient for the Holder of a Note to
certify in a satisfactory manner (indicating the sources of information used) that it would have
suffered a loss had an actual purchase of U.S. Dollars been made with the amount so received in
that other currency on the date of receipt or recovery (or, if a purchase of U.S. Dollars on such
date had not been practicable, on the first date on which it would have been practicable, it being
required that the need for a change of date be certified in the manner mentioned above). These
indemnities constitute a separate and independent obligation from the other obligations of the
Company and the Guarantors, shall give rise to a separate and independent cause of action, shall
apply irrespective of any indulgence granted by any Holder of a Note and shall continue in full

 

 

force and effect despite any other judgment, order, claim or proof for a liquidated amount in
respect of any sum due under any Note.

     Section 11.07. No Recourse Against Others. No director, officer, employee or shareholder,
as such, of the Company, the Guarantors or the Trustee shall have any liability for any obligations
of the Company, the Guarantors or the Trustee, respectively, under this Indenture or the Notes or
for any claim based on, in respect of or by reason of such obligations or their creation. By
accepting a Note, each Holder shall waive and release all such liability. The waiver and release
shall be part of the consideration for the issue of the Notes.

     Section 11.08. Legal Holidays. In any case where any Interest Payment Date or Redemption
Date or date of Maturity of any Note shall not be a Business Day, then (notwithstanding any other
provision of this Indenture or of the Notes) payment of interest or principal need not be made on
such date, but may be made on the next succeeding Business Day with the same force and effect as if
made on the Interest Payment Date or Redemption Date or date of Maturity; provided that no interest
shall accrue for the period from and after such Interest Payment Date or Redemption Date or date of
Maturity, as the case may be on account of such delay.

     Section 11.09. Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE
USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTES GUARANTEES WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

     Section 11.10. Consent to Jurisdiction; Waiver of Immunities. (a) Each of the parties
hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York state or U.S.
federal court sitting in the Borough of Manhattan in The City of New York with respect to actions
brought against it as a defendant in respect of any suit, action or proceeding or arbitral award
arising out of or relating to this Indenture or the Notes or any transaction contemplated hereby or
thereby (a “Proceeding”), and irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts. Each of the parties
hereto irrevocably waives, to the fullest extent it may do so under applicable law, trial by jury
and any objection which it may now or hereafter have to the laying of the venue of any such
Proceeding brought in any such court and any claim that any such Proceeding brought in any such
court has been brought in an inconvenient forum. Each of the Company and the Guarantors
irrevocably appoints National Corporate Research Limited (the “Process Agent”), with an office at
225 West 34th Street, Suite 910, New York, NY 10122, USA, as its authorized agent to
receive on behalf of it and its property service of copies of the summons and complaint and any
other process which may be served in any Proceeding. If for any reason such Person shall cease to
be such agent for service of process, each of the Company and the Guarantors shall forthwith
appoint a new agent of recognized standing for service of process in the State of New York and
deliver to the Trustee a copy of the new agent’s acceptance of that appointment within 30 days.
Nothing herein shall affect the right of the Trustee, any Agent or any Holder to serve process in
any other manner permitted by law or to commence legal proceedings or otherwise proceed against the
Company and the Guarantors in any other court of competent jurisdiction.

 

 

     (b) Each of the Company and the Guarantors hereby irrevocably appoints the Process Agent as
its agent to receive, on behalf of itself and its property, service of copies of the summons and
complaint and any other process which may be served in any such suit, action or proceeding brought
in such New York state or U.S. federal court sitting in the Borough of Manhattan in The City of New
York. Such service shall be made by delivering by hand a copy of such process to the Company or
any Guarantor, as the case may be, in care of the Process Agent at the address specified above.
Each of the Company and the Guarantors hereby irrevocably authorizes and directs the Process Agent
to accept such service on its behalf. Failure of the Process Agent to give notice to the Company
or any Guarantor, as the case may be, or failure of the Company or any Guarantor, as the case may
be, to receive notice of such service of process shall not affect in any way the validity of such
service on the Process Agent, the Company or the Guarantors. As an alternative method of service,
each of the Company and the Guarantors also irrevocably consents to the service of any and all
process in any such Proceeding by the delivery by hand of copies of such process to the Company or
Guarantor, as the case may be, at its address specified in Section 11.02 or at any other address
previously furnished in writing by the Company or the Guarantors to the Trustee. Each of the
Company and the Guarantors covenants and agrees that it shall take any and all reasonable action,
including the execution and filing of any and all documents, that may be necessary to continue the
designation of the Process Agent above in full force and effect during the term of the Notes, and
to cause the Process Agent to continue to act as such.

     (c) Nothing in this Section 11.10 shall affect the right of any party, including the Trustee,
any Agent or any Holder, to serve legal process in any other manner permitted by law or affect the
right of any party to bring any action or proceeding against any other party or its property in the
courts of other competent jurisdictions.

     (d) Each of the Company and the Guarantors irrevocably agrees that, in any proceedings
anywhere (whether for an injunction, specific performance or otherwise), no immunity (to the extent
that it may at any time exist, whether on the grounds of sovereignty or otherwise) from such
proceedings, from attachment (whether in aid of execution, before judgment or otherwise) of its
assets or from execution of judgment shall be claimed by it or on its behalf or with respect to its
assets, except to the extent required by applicable law, any such immunity being irrevocably
waived, to the fullest extent permitted by applicable law. Each of the Company and the Guarantors
irrevocably agrees that, where permitted by applicable law, it and its assets are, and shall be,
subject to such proceedings, attachment or execution in respect of its obligations under this
Indenture or the Notes.

     Section 11.11. Successors and Assigns. All covenants and agreements of the Company and the
Guarantors in this Indenture, the Notes and the Note Guarantees shall bind their respective
successors and assigns, whether so expressed or not. All agreements of the Trustee in this
Indenture shall bind its successors.

     Section 11.12. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

 

 

     Section 11.13. Severability Clause. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any term or
provision hereof invalid or unenforceable in any respect.

     Section 11.14. Force Majeure. In no event shall the Trustee be responsible or liable for
any failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

     Section 11.15. Trust Indenture Act Of 1939. This Indenture shall incorporate and be
governed by the provisions of the Trust Indenture Act that are required to be part of and to govern
indentures qualified under the Trust Indenture Act.

 

 

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

	 	 	 	 	 
	 	TAM CAPITAL INC.,

as the Company

 	 
	 	By:  	/s/ Egberto Vieira Lima
 	 
	 	 	Name:  	Egberto Vieira Lima 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Libano Miranda Barroso
 	 
	 	 	Name:  	Libano Miranda Barroso 	 
	 	 	Title:  	Director 	 
	 
	 	TAM S.A.,

as Guarantor

 	 
	 	By:  	/s/ Libano Miranda Barroso
 	 
	 	 	Name:  	Libano Miranda Barroso 	 
	 	 	Title:  	Financial Director and Director of
Relationship with Investors 	 
	 
	 	 	 
	 	By:  	/s/ Marco Antonio Bologna
 	 
	 	 	Name:  	Marco Antonio Bologna 	 
	 	 	Title:  	President Director 	 
	 
	 	TAM LINHAS AÉREAS S.A.,

as Guarantor

 	 
	 	By:  	/s/ Egberto Vieira Lima
 	 
	 	 	Name:  	Egberto Vieira Lima 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Libano Miranda Barroso
 	 
	 	 	Name:  	Libano Miranda Barroso 	 
	 	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 	 	 
	Witnesses:	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Deise Dorna de Oliveira	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Deise Dorna de Oliveira	 	 
	 

	 	 	 	RG 15.788.348-6 / SSP-SP	 	 
	 

	 	 	 	CIC 082.376.888-05	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Sandoval Martins Pereira	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Sandoval Martins Pereira	 	 
	 

	 	 	 	RG 18 788 294	 	 
	 

	 	 	 	CPF 129 731 538.32	 	 

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee, Registrar, Transfer
Agent and Principal
Paying Agent

 	 
	 	By:  	/s/ William Potes
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK (Luxembourg) S.A.,

as Luxembourg Paying Agent and Transfer Agent

 	 
	 	By:  	/s/ William Potes
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On the 25 day of April, 2007, before me personally came
        , to me known, who, being by me duly sworn, did depose and say that William Potes is a Assistant
Vice President of The Bank of New York, one of the corporations described in and which executed the
foregoing instrument; that he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the Board of Directors of
said corporation; and that he signed his name thereto by like authority.

[Notarial Seal]

	 	 	 	 	 
	 

	 	/s/ Emily Fayan
 

Notary Public
	 	 
	 

	 	COMMISSION EXPIRES	 	 
	 
	 	 	 	 
	 

	 	Emily Fayan	 	 
	 

	 	Notary Public, State of New York	 	 
	 

	 	No. 01FA4737006	 	 
	 

	 	Qualified in King’s County	 	 
	 

	 	Certificate Filed in New York County	 	 
	 

	 	Commission Expires Dec. 31, 2009	 	 

 

 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On the 25 day of April, 2007, before me personally came
        , to me known, who, being by me duly sworn, did depose and say that William Potes is a Authorized
Signator of The Bank of New York (Luxembourg) S.A., one of the corporations described in and which
executed the foregoing instrument; that he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by authority of the Board
of Directors of said corporation; and that he signed his name thereto by like authority.

[Notarial Seal]

	 	 	 	 	 
	 

	 	/s/ Emily Fayan
 

Notary Public
	 	 
	 

	 	COMMISSION EXPIRES	 	 
	 
	 	 	 	 
	 

	 	Emily Fayan	 	 
	 

	 	Notary Public, State of New York	 	 
	 

	 	No. 01FA4737006	 	 
	 

	 	Qualified in King’s County	 	 
	 

	 	Certificate Filed in New York County	 	 
	 

	 	Commission Expires Dec. 31, 2009	 	 

 

 

EXHIBIT A

FORM OF NOTE

[FACE OF NOTE]

     UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK LIMITED PURPOSE TRUST COMPANY (“DTC”), TO THE COMPANY NAMED HEREIN (THE
“COMPANY”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL NOTE IN WHOLE SHALL BE LIMITED TO TRANSFERS TO A NOMINEE OF DTC OR BY
A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY AND TRANSFERS OF THIS GLOBAL NOTE IN PART
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
AND REFERRED TO ON THE REVERSE HEREOF.

     [Include if Note is a Restricted Global Note, or a Note issued in exchange therefor, as
required under this Indenture: THIS NOTE (AND RELATED NOTE GUARANTEES) HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER (1) REPRESENTS THAT (A) IT AND
ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE
144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO
EACH SUCH ACCOUNT OR (B) IT IS NOT A U.S. PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT), AND (2) AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE
OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH THE
SECURITIES ACT AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ONLY (A) TO
THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE
SECURITIES ACT, (C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER
THE

1

 

SECURITIES ACT, OR (E) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(E) ABOVE, THE
COMPANY RESERVES THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER
EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING
MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION
IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.

     THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE ON SATISFACTION OF THE CONDITIONS SPECIFIED
IN THE INDENTURE REFERRED TO HEREIN. ]

     [Include if Note is Regulation S Global Note, or a Note issued in exchange therefor, in
accordance with this Indenture: “THIS NOTE (AND RELATED NOTE GUARANTEES) HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT NEITHER THIS NOTE NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

     THE FOREGOING LEGEND MAY BE REMOVED FROM THIS NOTE AFTER 40 DAYS BEGINNING ON AND INCLUDING
THE LATER OF (A) THE DATE ON WHICH THE NOTES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS
DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE OF THIS NOTE.”]

2

 

TAM CAPITAL INC.

U.S.$300,000,000

7.375% Senior Guaranteed Notes Due 2017

[RESTRICTED GLOBAL NOTE]

[REGULATION S GLOBAL NOTE]

[CERTIFICATED NOTE]

Representing U.S.$                    

7.375% Senior Guaranteed Notes Due 2017

No. [R-1] [S-1]

	 	 	 
	CUSIP No. [144A: 87484E AA9] [Reg S: G86667 AA3]

	 	Principal Amount
	ISIN No. [144A: US87484EAA91] [Reg S: USG86667AA37]

	 	U.S.$                    
	Common Code [Reg S: 029842094]
	 	 

     TAM CAPITAL INC., an exempted company incorporated with limited liability in the Cayman
Islands (the “Company”, which term includes any successor corporation under the Indenture referred
to on the reverse hereof), for value received, hereby promises to pay to Cede & Co., or registered
assigns, U.S.$___, upon presentment and surrender of this Note on April 25, 2017 or on such
date or dates as the then relevant principal sum may become payable in accordance with the
provisions hereof and in the Indenture.

     Interest on the outstanding principal amount shall be borne at the rate of 7.375% per annum
payable semi-annually in arrears on each April 25 and October 25 (each such date an “Interest
Payment Date”), commencing on October 25, 2007, all subject to and in accordance with the terms and
conditions set forth herein and in the Indenture; provided, however, that in the event that the
Company shall at any time default on the payment of interest or such other amounts as any may be
payable in respect of the Notes, the Company shall pay interest on overdue principal or
installments of interest, to the extent lawful, at the rate borne by the Notes plus 1% per annum.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

3

 

     Unless the certificate of authentication herein has been executed by the Trustee or
Authenticating Agent by the manual signature of one of its authorized signatories, this Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

Dated: April 25, 2007

	 	 	 	 	 	 	 
	 	 	TAM CAPITAL INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 
	Witnesses:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 

4

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title: Authorized Signatory	 	 

5

 

[FORM OF REVERSE SIDE OF NOTE]

7.375% Senior Guaranteed Notes Due 2017

TERMS AND CONDITIONS OF THE NOTES

     This Note is one of a duly authorized issue of 7.375% Senior Guaranteed Notes Due 2017 of the
Company. The Notes constitute unsecured unsubordinated obligations of the Company, initially in an
aggregate principal amount of U.S.$300,000,000

     1. Indenture.

     The Notes are, and shall be, issued under an Indenture, dated as of April 25, 2007 (the
“Indenture”), among the Company, the Guarantors party thereto, The Bank of New York, as trustee
(the “Trustee”), Registrar, Transfer Agent and Principal Paying agent (the “Principal Paying
Agent”) (collectively, the “Agents” and each individually an “Agent”) and The Bank of New York
(Luxembourg) S.A., as Luxembourg Paying Agent and Transfer Agent. The terms of the Notes include
those stated in the Indenture. The Holders of the Notes shall be entitled to the benefit of, be
bound by and be deemed to have notice of, all provisions of the Indenture. Reference is hereby made
to the Indenture and all supplemental indentures thereto for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Trustee, each Agent and
the Holders of the Notes and the terms upon which the Notes, are, and are to be, authenticated and
delivered. All terms used in this Note that are defined in the Indenture shall have the meanings
assigned to them in the Indenture. Copies of the Indenture and each Global Note shall be available
for inspection at the offices of the Trustee and each Paying Agent.

     The Company may from time to time, without the consent of the Holders of the Notes, create and
issue Additional Notes having the same terms and conditions as the Notes in all respects, except
for issue date, issue price and the first payment of interest thereon. Additional Notes issued in
this manner shall be consolidated with and shall form a single series with the previously
outstanding Notes. Unless the context otherwise requires, for all purposes of the Indenture and
this Note, references to the Notes include any Additional Notes actually issued.

     The Indenture imposes certain limitations on the creation of Liens by the Company or its
Subsidiaries, and consolidation, merger and certain other transactions involving the Company. In
addition, the Indenture requires the maintenance of insurance for the Company and its Subsidiaries,
the maintenance of the existence of the Company and its Subsidiaries, the payment of certain taxes
and claims and reporting requirements applicable to the Company.

     The Holder of this Note is entitled to the benefits of the Registration Rights Agreement,
dated April 25, 2007, between the Company and the Initial Purchasers named therein (the
“Registration Rights Agreement”). If the Exchange Offer (as defined in the Registration Rights
Agreement) is not completed (or, if required, the Shelf Registration Statement (as defined in the
Registration Rights Agreement) is not declared effective by the SEC) on or before October 31, 2007,
the annual interest rate borne by the Notes will be increased by 0.25% per annum. This

6

 

increase in the interest rate will end upon the earlier of (i) completion of the Exchange
Offer, (ii) the effectiveness of the Shelf Registration Statement or (iii) the Notes being freely
tradable under the Securities Act.

     The Note is one of the [Initial]1 [Additional]2 [Exchange]3
Notes referred to in the Indenture. The Notes include the Initial Notes issued on the Issue Date,
any Additional Notes issued in accordance with Section 2.14 of the Indenture and any Exchange Notes
issued in exchange for the Initial Notes or Additional Notes pursuant to the Indenture and the
Registration Rights Agreement. The Initial Notes, any Additional Notes and the Exchange Notes are
treated as a single class of securities under the Indenture.

     2. Principal.

     The Company promises to pay the principal of this Note on April 25, 2017.

     3. Interest.

     The Notes bear interest at the rate per annum shown above from April 25, 2007, or from the
most recent Interest Payment Date (as defined below) to which interest has been paid or provided
for, payable semi-annually in arrears on April 25 and October 25 of each year (each such date, an
“Interest Payment Date”), commencing on October 25, 2007. Interest on the Notes shall be computed
on the basis of a 360-day year of twelve 30-day months. The Company shall pay interest on overdue
principal or installments of interest, to the extent lawful, at the rate borne by the Notes plus 1%
per annum.

     4. Method of Payment.

     Payments of interest in respect of each Note shall be made on each Interest Payment Date by
the Paying Agents to the Persons shown on the Register at the close of business on the April 10 and
October 10, as the case may be (each, a “Record Date”), immediately preceding such Interest Payment
Date.

     Payments in respect of each Note shall be made by U.S. Dollar check drawn on a bank in The
City of New York and may be mailed to the Holder of such Note at its address appearing in the
Register. Upon written application by the Holder to the specified office of any Paying Agent not
less than 15 days before the due date for any payment in respect of a Note, such payment may be
made by wire transfer to a U.S. Dollar account maintained by the payee with a bank in The City of
New York. Payment of principal in respect of each Note shall be made on any Payment Date for such
principal to the Person shown on the Register at the close of business on the fifteenth day
immediately preceding such Payment Date.

 

			
	1	 	Include if Initial Note.
	 
	2	 	Include if Additional Note.
	 
	3	 	Include if Exchange Note.

7

 

     All payments on this Note are subject in all cases to any applicable tax or other laws and
regulations, but without prejudice to the provisions of Paragraph 6 hereof. Except as provided in
Section 2.08 of the Indenture, no fees or expenses shall be charged to the Holders in respect of
such payments.

     If the Payment Date in respect of any Note is not a business day at the place in which it is
presented for payment, the Holder thereof shall not be entitled to payment of the amount due until
the next succeeding business day at such place and shall not be entitled to any further interest or
other payment in respect of any such delay.

     If the amount of principal or interest which is due on the Notes is not paid in full, the
Registrar shall annotate the Register with a record of the amount of interest, if any, in fact
paid.

     5. Registrar, Paying Agent and Transfer Agent.

     The Trustee shall act as Registrar, Transfer Agent and Principal Paying Agent of the Notes.
The Company may appoint and change any Registrar, Paying Agent or Transfer Agent in accordance with
the terms of the Indenture. For so long as the Notes are listed on the Euro MTF market of the
Luxembourg Stock Exchange, and such stock exchange shall so require, the Company shall maintain a
Paying Agent and Transfer Agent in Luxembourg. The Bank of New York (Luxembourg) S.A. shall
initially act as Paying Agent and Transfer Agent in Luxembourg.

     6. Additional Amounts.

     All payments by the Company in respect of the Notes or the Guarantors in respect of the Note
Guarantees will be made free and clear of, and without withholding or deduction for, or on account
of any present or future taxes, duties, assessments, or other governmental charges of whatever
nature imposed or levied by or on behalf of the Cayman Islands or Brazil, or any authority therein
or thereof or any other jurisdiction in which the Company or the Guarantors are organized, doing
business or otherwise subject to the power to tax (any of the aforementioned being a “Taxing
Jurisdiction”), unless the Company or the Guarantors are compelled by law to deduct or withhold
such taxes, duties, assessments, or governmental charges. In such event, the Company or the
Guarantors, as applicable, will make such deduction or withholding, make payment of the amount so
withheld to the appropriate governmental authority and pay such additional amounts as may be
necessary to ensure that the net amounts receivable by Holders of Notes after such withholding or
deduction shall equal the respective amounts of principal and interest which would have been
receivable in respect of the Notes in the absence of such withholding or deduction (“Additional
Amounts”). Notwithstanding the foregoing, no such Additional Amounts shall be payable:

     (i) to, or to a third party on behalf of, a Holder who is liable for such
taxes, duties, assessments or governmental charges in respect of such Note by
reason of the existence of any present or former connection between such Holder (or
between a fiduciary, settlor, beneficiary, member or shareholder of such Holder, if
such Holder is an estate, a trust, a partnership, or a corporation) and the
relevant Taxing Jurisdiction, including, without limitation, such Holder (or such

8

 

fiduciary, settlor, beneficiary, member or shareholder) being or having been a
citizen or resident thereof or being or having been engaged in a trade or business
or present therein or having, or having had, a permanent establishment therein,
other than the mere holding of the Note or enforcement of rights under the
Indenture and the receipt of payments with respect to the Note;

     (ii) in respect of Notes surrendered or presented for payment (if surrender or
presentment is required) more than 30 days after the Relevant Date except to the
extent that payments under such Note would have been subject to withholdings and
the Holder of such Note would have been entitled to such Additional Amounts, on
surrender of such Note for payment on the last day of such period of 30 days;

     (iii) where such Additional Amount is imposed and is required to be made
pursuant to any law implementing or complying with, or introduced in order to
conform to, any European Union Directive on the taxation of savings;

     (iv) to, or to a third party on behalf of, a Holder who is liable for such
taxes, duties, assessments or other governmental charges by reason of such Holder’s
failure to comply with any certification, identification, documentation or other
reporting requirement concerning the nationality, residence, identity or connection
with the relevant Taxing Jurisdiction of such Holder, if (1) compliance is required
by law as a precondition to, exemption from, or reduction in the rate of, the tax,
assessment or other governmental charge and (2) the Company has given the Holders
at least 30 days’ notice that Holders will be required to provide such
certification, identification, documentation or other requirement;

     (v) in respect of any estate, inheritance, gift, sales, transfer, capital
gains, excise or personal property or similar tax, assessment or governmental
charge;

     (vi) in respect of any tax, assessment or other governmental charge which is
payable other than by deduction or withholding from payments of principal of or
interest on the Note;

     (vii) in respect of any tax imposed on overall net income or any branch
profits tax; or

     (viii) in respect of any combination of the above.

     No Additional Amounts shall be paid with respect to any payment on a Note to a Holder who is a
fiduciary, a partnership, a limited liability company or other than the sole beneficial owner of
that payment to the extent that payment would be required by the relevant Taxing Jurisdiction to be
included in the income, for tax purposes, of a beneficiary or settlor with respect to the
fiduciary, a member of that partnership, an interestholder in a limited liability company or

9

 

a beneficial owner who would not have been entitled to the Additional Amounts had that
beneficiary, settlor, member or beneficial owner been the Holder.

     The Notes are subject in all cases to any tax, fiscal or other law or regulation or
administrative or judicial interpretation. Except as specifically provided above, neither the
Company nor the Guarantors shall be required to make a payment with respect to any tax, assessment
or governmental charge imposed by any government or a political subdivision or taxing authority
thereof or therein.

     In the event that Additional Amounts actually paid with respect to the Notes are based on
rates of deduction or withholding of withholding taxes in excess of the appropriate rate applicable
to the Holder of such Notes, and, as a result thereof such Holder is entitled to make claim for a
refund or credit of such excess from the authority imposing such withholding tax, then such Holder
shall, by accepting such Notes, be deemed to have assigned and transferred all right, title, and
interest to any such claim for a refund or credit of such excess to the Company.

     Any reference in the Indenture or the Notes to principal, interest or any other amount payable
in respect of the Notes by the Company or the Note Guaranty by the Guarantors will be deemed also
to refer to any Additional Amount, unless the context requires otherwise, that may be payable with
respect to that amount under the obligations referred to in this Paragraph 6.

     The foregoing obligation will survive termination or discharge of the Indenture.

     7. Open Market Purchases.

     The Company or any of its Affiliates may at any time purchase Notes in the open market or
otherwise at any agreed upon price. All Notes so purchased may not be reissued or resold, except
in compliance with applicable requirements or exemptions under the relevant securities laws.

     8. Redemption.

     Except as described in Section 3.01 of the Indenture and this Paragraph 8, the Notes may not
be redeemed.

     (a) The Notes shall be redeemable, at the option of the Company, in whole or in part, on any
Interest Payment Date prior to April 25, 2017, upon giving not less than 30 nor more than 60 days’
notice to the Holders (which notice shall be irrevocable), at a Redemption Price equal to the
greater of:

          (1) 100% of the principal amount of the notes to be redeemed; and

          (2) the sum of the present values of the remaining scheduled payments of principal and
interest on such notes (exclusive of interest accrued on the Redemption Date) discounted to the
Redemption Date on a semi-annual basis (assuming 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 50 basis points;

10

 

     plus, in either case, accrued and unpaid interest and Additional Amounts, if any, on the
principal amount being redeemed to such Redemption Date.

     If as a result of any change in or amendment to the laws (or any rules or regulations
thereunder) of a Taxing Jurisdiction, or any amendment to or change in an official interpretation,
administration or application of such laws, any treaties, rules, or related agreements to which a
Taxing Jurisdiction is a party or regulations (including a holding by a court of competent
jurisdiction), which change or amendment becomes effective or, in the case of a change in official
position, is announced on or after the issue date of the Notes or on or after the date a successor
to the Company assumes the obligations under the Notes, (i) the Company or any successor to the
Company has or will become obligated to pay Additional Amounts (as defined in Section 4.06 of the
Indenture and Paragraph 5 hereof) or (ii) either of the Guarantors or any successor to the
Guarantor has or will become obligated to pay Additional Amounts in excess of the Additional
Amounts either such Guarantor or any such successor to the Guarantor would be obligated to pay if
payments were subject to withholding or deduction at a rate of 15% or at a rate of 25% in the case
that the Holder of the Notes is resident in a tax haven jurisdiction for Brazilian tax purposes
(i.e., a country that does not impose any income tax or that imposes it at a maximum rate lower
than 20% or where the laws impose restrictions on the disclosure of ownership composition or
securities ownership) (the “Minimum Withholding Level”), as a result of the taxes, duties,
assessments and other governmental charges described above, the Company or any of its successors
may, at their option, redeem all, but not less than all, of the Notes, at a redemption price equal
to 100% of their principal amount, together with accrued and unpaid interest to the date fixed for
redemption, upon publication of irrevocable notice to Holders not less than 30 days nor more than
60 days prior to the date fixed for redemption. No notice of such redemption may be given earlier
than 60 days prior to the earliest date on which either (x) the Issuer or successor to the Issuer
would, but for such redemption, become obligated to pay any additional amounts, or (y) in the case
of payments made under the Guarantees, either Guarantor or any successor to the Guarantor would,
but for such redemption, be obligated to pay the Additional Amounts in excess of the Minimum
Withholding Level. For the avoidance of doubt, the Company or any successor to the Company shall
not have the right to so redeem the Notes unless (a) it is obligated to pay Additional Amounts or
(b) either Guarantor or any successor to the Guarantor is obliged to pay Additional Amounts which
in the aggregate amount exceed the Additional Amounts payable at the Minimum Withholding Level.
Notwithstanding the foregoing, the Company or any successor to the Company shall not have the right
to so redeem the Notes unless it has taken reasonable measures to avoid the obligation to pay
Additional Amounts. For the avoidance of doubt, reasonable measures do not include changing the
jurisdiction of incorporation of the Company or any successor to the Company or the jurisdiction of
incorporation of a Guarantor or any successor to the Guarantor.

     In the event that the Company or any successor elects to so redeem the Notes pursuant to
Section 3.01(c) of the Indenture, it will deliver to the Trustee: (i) a certificate, signed in the
name of the Company by any two of its executive officers or by its attorney-in-fact in accordance
with its bylaws, stating that the Company or any successor to the Company is entitled to redeem the
Notes pursuant to their terms and setting forth a statement of facts showing that the condition or
conditions precedent to the right of the Company or any successor to the Company to so redeem

11

 

have occurred or been satisfied; and (ii) an Opinion of Counsel to the effect that (1) the
Company or any successor to the Company has or will become obligated to pay Additional Amounts or
either Guarantor or any successor to the Guarantor has or will become obligated to pay Additional
Amounts in excess of the Additional Amounts payable at the Minimum Withholding Level, (2) such
obligation is the result of a change in or amendment to the laws (or any rules or regulations
thereunder) of a Taxing Jurisdiction, as described above, (3) the Company or any successor to the
Company, or either Guarantor or any successor to the Guarantor, as the case may be cannot avoid
payment of such Additional Amounts by taking reasonable measures available to it and (4) that all
governmental requirements necessary for the Company to effect the redemption have been complied
with.

     9. Denominations; Transfer; Exchange.

     The Notes are in registered form without coupons in minimum denominations of U.S.$100,000 and
integral multiples of U.S.$1,000 in excess thereof.

     A Holder may transfer or exchange Notes in accordance with the Indenture. The Trustee, the
Registrar or Transfer Agent, as the case may be, may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture.

     The Trustee, the Registrar or Transfer Agent, as the case may be, need not register the
transfer or exchange of any Notes selected for redemption or any Notes for a period of 15 days
before a selection of Notes to be redeemed or before an Interest Payment Date.

     10. Persons Deemed Owners.

     The registered Holder of this Note may be treated as the owner thereof for all purposes.

     11. Unclaimed Money.

     Subject to applicable law, the Trustee and the Paying Agents shall pay to the Company upon
request any monies held by them for the payment of principal or interest that remains unclaimed for
two years, and thereafter, Holders entitled to such monies must look to the Company for payment as
general creditors.

     12. Defeasance.

     Subject to the terms of the Indenture, the Company and the Guarantors at any time may
terminate some or all of their obligations under the Notes, the Indenture and the Note Guarantees,
as the case may be, if the Company or the Guarantors irrevocably deposit in trust with the Trustee
money or U.S. Government Obligations sufficient for the payment of principal of and interest on all
the Notes to Maturity or redemption. At such time, each Guarantor’s obligations under its Note
Guaranty will terminate.

12

 

     13. Amendment; Waiver.

     Subject to certain exceptions set forth in the Indenture, the Indenture or the Notes may be
amended or supplemented without notice to any Holder but with the written consent of the Holders of
at least a majority in principal amount of the Notes then outstanding, and any past Default or
compliance with any provision may be waived with the consent of the Holders of at least a majority
in principal amount of the Notes then outstanding. However, subject to certain exceptions set forth
in the Indenture, without the consent of each Holder of an outstanding Note affected thereby, no
amendment or waiver may, among other things:

     (i) reduce the principal amount of or change the Stated Maturity of any payment on any
Note;

     (ii) reduce the rate of any interest on any Note;

     (iii) reduce the amount payable upon the redemption of any Note or change the time at
which any Note may be redeemed;

     (iv) change the currency for payment of principal of, or interest or any Additional
Amounts on, any Note;

     (v) impair the right to institute suit for the enforcement of any right to payment on
or with respect to any Note;

     (vi) waive a Default or Event of Default in payment of principal of and interest on the
Notes;

     (vii) reduce the principal amount of Notes whose Holders must consent to any amendment,
supplement or waiver;

     (viii) make any change to the first paragraph of Section 9.02 of the Indenture;

     (ix) modify or change any provision of the Indenture affecting the ranking of the Notes
or any Note Guaranty in a manner adverse to the Holders of the Notes; or

     (x) make any change in any Note Guaranty that would adversely affect the Noteholders.

provided that the provisions of the covenants described in Section 4.11 of the Indenture may,
except as provided above, be amended or waived with the consent of Holders holding not less than 66
2/3% in aggregate principal amount of the Notes.

     The Company, the Guarantors and the Trustee may, without the consent of any Holder of the
Notes, amend the Indenture or the Notes to:

     (i) to cure any ambiguity, omission, defect or inconsistency;

13

 

     (ii) to add guarantees or collateral with respect to the Notes;

     (iii) to comply with Section 5.01 of the Indenture;

     (iv) to provide for any guarantee of the Notes, to secure the Notes or to confirm and
evidence the release, termination or discharge of any guarantee of the Notes when such
release, termination or discharge is permitted by this Indenture;

     (v) to add to the covenants of the Company or the Guarantors for the benefit of the
Holders;

     (vi) to surrender any right herein conferred upon the Company or the Guarantors;

     (vii) to evidence and provide for the acceptance of an appointment by a successor
Trustee;

     (viii) to provide for the issuance of Additional Notes;

     (ix) to make any other change that does not materially and adversely affect the rights
of any Holder or to conform this Indenture to the section “Description of Notes” in the
Offering Memorandum; or

     (x) to comply with any applicable requirements of the SEC, including in connection with
an required qualification of the Indenture under the Trust Indenture Act

     provided that, in such case, the Company has delivered to the Trustee an Opinion of Counsel
and an Officers’ Certificate, each stating that such amendment or supplement complies with the
provisions of Section 9.01 of the Indenture.

     Each Guarantor must consent to any amendment, supplement or waiver.

     14. Defaults and Remedies.

     An “Event of Default” occurs if:

     (i) the Company defaults in any payment of interest (including any Additional
Amounts) on any Note when the same becomes due and payable, and such default
continues for a period of 30 days;

     (ii) the Company defaults in the payment of the principal (including any
Additional Amounts) of any Note when the same becomes due and payable upon
acceleration or redemption or otherwise;

     (iii) the Company or any Guarantor fails to comply with any of its covenants
or agreements in the Notes or the Indenture (other than those referred

14

 

to in (i) and (ii) above), and such failure continues for 60 days after the
notice specified below;

     (iv) the Company, any Guarantor or any Significant Subsidiary defaults under
any mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any Debt for money borrowed by the Company, any
such Guarantor or any such Significant Subsidiary (or the payment of which is
guaranteed by the Company, such Guarantor or any such Significant Subsidiary)
whether such Debt or guarantee now exists, or is created after the date of the
Indenture, which default (a) is caused by failure to pay principal of or premium,
if any, or interest on such Debt after giving effect to any grace period provided
in such Debt on the date of such default (“Payment Default”) or (b) results in the
acceleration of such Debt prior to its express maturity and, in each case, the
principal amount of any such Debt, together with the principal amount of any other
such Debt under which there has been a Payment Default or the maturity of which has
been so accelerated, aggregates U.S.$50,000,000 (or the equivalent thereof at the
time of determination) or more in the aggregate;

     (v) one or more final judgments or decrees for the payment of money in excess
of U.S.$50,000,000 (or the equivalent thereof at the time of determination) in the
aggregate are rendered against the Company, any Guarantor or any Significant
Subsidiary and are not paid (whether in full or in installments in accordance with
the terms of the judgment) or otherwise discharged and, in the case of each such
judgment or decree, either (a) an enforcement proceeding has been commenced by any
creditor upon such judgment or decree and is not dismissed within 30 days following
commencement of such enforcement proceedings or (b) there is a period of 60 days
following such judgment during which such judgment or decree is not discharged,
waived or the execution thereof stayed;

     (vi) an involuntary case or other proceeding is commenced against the Company,
any Guarantor or any Significant Subsidiary with respect to it or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect seeking
the appointment of a trustee, receiver, síndico, liquidator, custodian or other
similar official of it or any substantial part of its property, and such
involuntary case or other proceeding remains undismissed and unstayed for a period
of 60 days; or an order for relief is entered against the Company, any Guarantor or
any Significant Subsidiary under the bankruptcy laws now or hereafter in effect,
and such order is not being contested by the Company, any Guarantor or any
Significant Subsidiary, as the case may be, in good faith, or has not been
dismissed, discharged or otherwise stayed, in each case within 60 days of being
made;

     (vii) the Company, any Guarantor or any Significant Subsidiary (i) commences a
voluntary case or other proceeding seeking liquidation,

15

 

reorganization, concordata or other relief with respect to itself or its Debts
under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, or consents to the entry of an order for relief in an involuntary case
under any such law, (ii) consents to the appointment of or taking possession by a
receiver, síndico, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Company, any Guarantor or any Significant Subsidiary or for
all or substantially all of the Property of the Company, any Guarantor or any
Significant Subsidiary or (iii) effects any general assignment for the benefit of
creditors;

     (viii) any event occurs that under the laws of the Cayman Islands, Brazil or
any political subdivision thereof or any other country has substantially the same
effect as any of the events referred to in any of clause (vi) or (vii);

     (ix) any Note Guaranty ceases to be in full force and effect, other than in
accordance the terms of the Indenture, or a Guarantor denies or disaffirms its
obligations under its Note Guaranty; or

     (x) TAM S.A. ceases to own, directly or indirectly, 100% of the outstanding
share capital of the Company.

     A Default under clause (iii) above shall not constitute an Event of Default until the Trustee
or the Holders of at least 25% in principal amount of the Outstanding Notes notify the Company and
the Guarantors of the Default and the Company does not cure such Default within the time specified
after receipt of such notice.

     The Trustee is not to be charged with knowledge of any Default or Event of Default or
knowledge of any cure of any Default or Event of Default unless either (i) an attorney, authorized
officer or agent of the Trustee with direct responsibility for the Indenture has actual knowledge
of such Default or Event of Default or (ii) written notice of such Default or Event of Default has
been given to the Trustee by the Company or any Holder.

     If an Event of Default (other than an Event of Default specified in clauses (vi), (vii) and
(viii) above) occurs and is continuing, the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Notes may declare all unpaid principal of and accrued and
unpaid interest on all Notes to be due and payable immediately, by a notice in writing to the
Company, and upon any such declaration such amounts shall become due and payable immediately. If
an Event of Default specified in clause (vi), (vii) or (viii) above occurs and is continuing, then
the principal of, and accrued and unpaid interest on, all Notes shall become and be immediately due
and payable without any declaration or other act on the part of the Trustee or any Holder.

     Subject to the provisions of the Indenture relating to the duties of the Trustee in case an
Event of Default shall occur and be continuing, the Trustee shall be under no obligation to
exercise any of its rights or powers under the Indenture at the request or direction of any of the
Holders, unless such Holders shall have offered to the Trustee indemnity reasonably satisfactory

16

 

to it. Subject to such provision for the indemnification of the Trustee, the Holders of a
majority in aggregate principal amount of the outstanding Notes shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee.

     At any time after a declaration of acceleration has been made and before a judgment or decree
for payment of the money due has been obtained by the Trustee as provided in the Indenture, the
Holders of a majority in principal amount of the Notes by written notice to the Company and the
Trustee may rescind or annul a declaration of acceleration if (i) the Company has paid or deposited
with the Trustee a sum sufficient to pay all overdue interest (including any Additional Amounts) on
Outstanding Notes, all unpaid principal of the Notes that has become due otherwise than by such
declaration of acceleration, interest on such overdue interest (including any Additional Amounts)
as provided in the Indenture and all sums paid or advanced by the Trustee under the Indenture and
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and (ii) all Events of Default have been cured or waived except nonpayment of principal
that has become due solely because of acceleration.

     No such rescission shall affect any subsequent Default or Event of Default or impair any right
consequent thereto.

     15. Trustee Dealings with the Company.

     Subject to certain limitations imposed by the Indenture, the Trustee and any Agent or
co-registrar or any other agent of the Company or of the Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee, Agent, or such other agent.

     16. Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE,
THIS NOTE AND THE NOTES GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

     17. No Recourse Against Others.

     No director, officer, employee or shareholder, as such, of the Company or the Trustee shall
have any liability for any obligations of the Company under the Notes or any obligations of the
Company or the Trustee under the Indenture or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Note, each Holder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of the Notes.

17

 

     18. CUSIP and ISIN Numbers.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP or ISIN numbers, as applicable, to be printed on the Notes
and has directed the Trustee to use CUSIP or ISIN numbers, as applicable, in notices of redemption
as a convenience to Holders. No representation is made as to the accuracy of such numbers either
as printed on the Notes or as contained in any notice of redemption and reliance may be placed only
on the other identification numbers placed thereon.

     The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture, which includes the form of this Note. Requests may be made to:

TAM Capital Inc.

c/o TAM S.A.

Av. Jurandir, 856, Lote 4

04072 000

São Paulo, SP

Brasil

Attention: Legal Department

Facsimile: 55-11-5582-8813

18

 

NOTATION OF GUARANTY

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has unconditionally guaranteed, to the extent set forth in the Indenture and subject to
the provisions in the Indenture dated as of April 25, 2007 (as amended from time to time, the
“Indenture”), among the Company, the Guarantor, The Bank of New York, as Trustee, Registrar,
Transfer Agent and Principal Paying Agent (collectively, the “Agents” and each individually an
“Agent”) and The Bank of New York (Luxembourg) S.A., as Luxembourg Paying Agent and Transfer Agent,
the full and punctual payment (whether at Stated Maturity, upon redemption, acceleration, or
otherwise) of the principal of, premium, if any, and interest on, and all other amounts payable
under, each Note, and the full and punctual payment of all other amounts payable by the Company
under the Indenture. The obligations of each Guarantor to the Holders of Notes and to the Trustee
pursuant to the guaranty and the Indenture are expressly set forth in Article 10 of the Indenture
and reference is hereby made to the Indenture for the precise terms of the guaranty.

19

 

     IN WITNESS WHEREOF, each Guarantor has caused this guaranty to be duly executed.

	 	 	 	 	 	 	 
	 	 	TAM S.A.,	 	 
	 	 	as Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	TAM LINHAS AÉREAS S.A.,	 	 
	 	 	as Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 
	Witnesses:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 

20

 

EXHIBIT B

SUPPLEMENTAL INDENTURE

dated as of                     , ___

among

TAM CAPITAL INC.,

the [ADDITIONAL GUARANTOR(S)] Party Hereto

THE BANK OF NEW YORK

as Trustee, Registrar, Transfer Agent and Principal Paying Agent

and

THE BANK OF NEW YORK (LUXEMBOURG) S.A.,

as Luxembourg Paying Agent and Transfer Agent

 

7.375% Senior Guaranteed Notes Due 2017

1

 

THIS SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), entered into as of                     , ___,
among TAM Capital Inc., an exempted company incorporated with limited liability in the Cayman
Islands (the “Company”), [Additional Guarantor(s)] (each an “Undersigned”), The Bank of New York,
as trustee, registrar, transfer agent and principal paying agent (the “Trustee”) and The Bank of
New York (Luxembourg) S.A., as Luxembourg Paying Agent and Transfer Agent.

RECITALS

     WHEREAS, the Company, the Guarantors party thereto, The Bank of New York, as Trustee,
Registrar, Transfer Agent and Principal Paying Agent (the “Trustee”) and The Bank of New York
(Luxembourg) S.A., as Luxembourg Paying Agent and Transfer Agent, entered into the Indenture, dated
as of April 25, 2007 (the “Indenture”), relating to the Company’s 7.375% Senior Guaranteed Notes
Due 2017 (the “Notes”);

     WHEREAS, as a condition to the Trustee entering into the Indenture and the purchase of the
Notes by the Holders, the Company and the Guarantors agreed pursuant to the Indenture to cause any
newly acquired or created Subsidiaries to provide Guarantees in certain circumstances.

AGREEMENT

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and
intending to be legally bound, the parties to this Supplemental Indenture hereby agree as follows:

     Section 1. Capitalized terms used herein and not otherwise defined herein are used as defined
in the Indenture.

     Section 2. Each Undersigned, by its execution of this Supplemental Indenture, agrees to be a
Guarantor under the Indenture and to be bound by the terms of the Indenture applicable to
Guarantors, including, but not limited to, Article 10 thereof. [Specify % to be guaranteed, if
less than 100%.]

     Section 3. This Supplemental Indenture shall be governed by, and construed in accordance
with, the laws of the State of New York.

     Section 4. This Supplemental Indenture may be signed in various counterparts which together
will constitute one and the same instrument.

     Section 5. This Supplemental Indenture is an amendment supplemental to the Indenture, and the
Indenture and this Supplemental Indenture will henceforth be read together.

     Section 6. The Trustee makes no representation or warranty as to the validity or sufficiency
of this Supplemental Indenture or the recitals contained herein.

2

 

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

	 	 	 	 	 	 	 
	 	 	TAM CAPITAL INC.,	 	 
	 	 	as the Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[ADDITIONAL GUARANTOR],	 	 
	 	 	as Guarantor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 	 	as Trustee, Registrar, Transfer Agent and Principal Paying Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK (Luxembourg) S.A.,	 	 
	 	 	as Luxembourg Paying Agent and Transfer Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

3

 

EXHIBIT C

FORM OF

TRANSFER NOTICE

     FOR VALUE RECEIVED, the undersigned Holder hereby sell(s), assign(s) and transfer(s) unto

Insert Taxpayer Identification No.

 

Please print or typewrite name and address, including postal zip code, of assignee

 

this Note and all rights hereunder, hereby irrevocably constituting and appointing

                                         attorney to transfer said Note on the books of TAM Capital Inc. with full
power of substitution in the premises.

      

     In connection with any transfer of this Note occurring prior to the date [which is two years
after the original issue date of the Notes,]4 [which is on or prior to the 40th day
after the Closing Date (as defined in the Indenture governing the Notes),]5 the
undersigned confirms that:

[Check one]

	 	 	 	 	 	 	 
	 

	 	o
	 	(a)
	 	This Note is being transferred to a person whom the Holder reasonably
believes is a qualified institutional buyer (as defined in Rule 144A under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), in a transaction meeting the
requirement of Rule 144A;
	 
	 	 	 	 	 	 
	 

	 	o
	 	(b)
	 	This Note is being transferred in an offshore transaction in accordance
with Rule 904 under the Securities Act;
	 
	 	 	 	 	 	 
	 

	 	o
	 	(c)
	 	This Note is being transferred pursuant to an exemption from registration
under the Securities Act provided by Rule 144 thereunder (if available);
	 
	 	 	 	 	 	 
	 

	 	o
	 	(d)
	 	This Note is being transferred pursuant to an effective registration
statement under the Securities Act; or
	 
	 	 	 	 	 	 
	 

	 	o
	 	(e)
	 	This Note is being transferred to TAM Capital Inc.,

 

			
	4	 	Include in Restricted Note.
	 
	5	 	Include in Regulation S Note.

1

 

in each of cases (a) through (e) above, in accordance with any applicable securities laws of any
State of the United States.

     If none of the foregoing boxes is checked, the Transfer Agent shall not be obligated to
register this Note in the name of any Person other than the Holder hereof unless and until the
conditions to any such transfer of registration set forth herein and in Section 2.07 of the
Indenture shall have been satisfied.

Date:                                                             

	 	 	 	 	 
	 

	 	 

NOTICE: The signature to this assignment must correspond with the
name as written upon the face of this instrument in every particular,
without alteration, enlargement or any other change whatever.
	 	 

2

 

EXHIBIT D

FORM OF CERTIFICATE

FOR TRANSFER FROM RESTRICTED GLOBAL

NOTE OR CERTIFICATED NOTE BEARING

A SECURITIES ACT LEGEND TO REGULATION S

GLOBAL NOTE OR CERTIFICATED NOTE

NOT BEARING A SECURITIES ACT LEGEND

The Bank of New York

101 Barclay Street, Floor 4 East

New York, New York 10286

Attn: Global Finance Americas

			
	      Re:	 	7.375% Senior Guaranteed Notes Due 2017 (the “Notes”)

     Reference is hereby made to the Indenture, dated April 25, 2007 (the “Indenture”), among TAM
Capital Inc., the Guarantors party thereto, The Bank of New York, as Trustee, Registrar, Transfer
Agent and Principal Paying Agent and The Bank of New York (Luxembourg) S.A., as Luxembourg Paying
Agent and Transfer Agent. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     This letter relates to U.S.$                     principal amount of Notes which are held in the form of
[a beneficial interest in the Restricted Global Note with the Depositary in the name of the
undersigned] [a Certificated Note bearing a Securities Act Legend].

     The undersigned has requested a transfer of such [beneficial interest] [Certificated Note] to
a Person who shall take delivery thereof in the form of [a beneficial interest of equal principal
amount in the Regulation S Global Note (ISIN No. USG86667AA37) to be held with
[Euroclear]* [Clearstream, Luxembourg]6 (Common Code No. 029842094) through
the Depositary] [a Certificated Note of equal principal amount not bearing a Securities Act
Legend]. In connection with such transfer, the undersigned does hereby certify that such transfer
has been effected in accordance with the transfer restrictions set forth in the Indenture and the
Notes and pursuant to and in accordance with Rule 903 or 904 of Regulation S under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the undersigned
further certifies that:

     (1) the offer of the Notes was not made to a U.S. Person (as defined under Regulation S);

 

			
	6	 	Indicate appropriate clearing system.

1

 

     [(2) at the time the buy order was originated, the transferee was outside the United States or
the undersigned and any Person acting on behalf of the undersigned reasonably believed that the
transferee was outside the United States;]7

     [(2) the transaction was executed in, on or through the facilities of a designated offshore
securities market and neither the undersigned nor any Person acting on behalf of the undersigned
knows that the transaction was prearranged with a buyer in the United States;]8

     (3) no directed selling efforts have been made in contravention of the requirements of Rule
903(b) or 904(b) of Regulation S, as applicable;

     (4) the undersigned is not the Company, a distributor, an affiliate of either the Company or a
distributor, or a Person acting on behalf of any of the foregoing; and

     (5) the transaction is not part of a plan or scheme to evade the registration requirements of
the Securities Act.

     This certificate and the statements contained herein are made for your benefit and for the
benefit of TAM Capital Inc. Terms used in this certificate and not otherwise defined in the
Indenture have the meanings set forth in Regulation S.

	 	 	 	 	 	 	 
	 	 	[INSERT NAME OF TRANSFEROR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Dated:                     , __________

cc:     TAM Capital Inc.

 

			
	7	 	Insert one of the two provisions.
	 
	8	 	Insert one of the two provisions.

2

 

EXHIBIT E

FORM OF TRANSFER CERTIFICATE

FOR TRANSFER FROM REGULATION S GLOBAL

NOTE OR CERTIFICATED NOTE NOT BEARING

A SECURITIES ACT LEGEND TO RESTRICTED GLOBAL

NOTE OR CERTIFICATED NOTE BEARING

A SECURITIES ACT LEGEND

(PRIOR TO 40TH DAY AFTER CLOSING DATE)

The Bank of New York

101 Barclay Street, Floor 4 East

New York, New York 10286

Attn: Global Finance Americas

			
	     Re:	 	7.375% Senior Guaranteed Notes Due 2017 (the “Notes”)

     Reference is hereby made to the Indenture, dated April 25, 2007 (the “Indenture”), among TAM
Capital Inc., the Guarantors party thereto, The Bank of New York, as Trustee, Registrar, Transfer
Agent and Principal Paying Agent and The Bank of New York (Luxembourg) S.A., as Luxembourg Paying
Agent and Transfer Agent. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     This
letter relates to U.S.$___ principal amount of Notes which are held in the form of
[a beneficial interest in the Regulation S Global Note (ISIN No. USG86667AA37) with the Depositary
in the name of the undersigned] [a Certificated Note not bearing the Securities Act Legend].

     The undersigned has requested a transfer of such [beneficial interest] [Certificated Note] to
a Person who shall take delivery thereof in the form of [a beneficial interest in the Restricted
Global Note (CUSIP No. 87484E AA9) to be held through the Depositary] [a Certificated Note bearing
the Securities Act Legend]. In connection with such transfer, the undersigned does hereby confirm
that such transfer has been effected in accordance with the transfer restrictions set forth in the
Indenture and the Notes and pursuant to and in accordance with Rule 144A under the U.S. Securities
Act of 1933, as amended, and accordingly, the undersigned represents that:

     (1) the Notes are being transferred to a transferee that the undersigned reasonably believes
is purchasing the Notes for its own account or one or more accounts with respect to which the
transferee exercises sole investment discretion; and

     (2) the transferee and any such account is a “qualified institutional buyer” within the
meaning of Rule 144A, in a transaction meeting the requirements of Rule 144A and in accordance
with any applicable securities laws of any state of the United States or any other jurisdiction.

     This certificate and the statements contained herein are made for your benefit and for the
benefit of TAM Capital Inc.

1

 

	 	 	 	 	 	 	 
	 	 	[INSERT NAME OF TRANSFEROR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Dated:                     , ___

cc:     TAM Capital Inc.

2

 

EXHIBIT F

FORM OF CERTIFICATE FOR REMOVAL

OF THE SECURITIES ACT LEGEND ON A CERTIFICATED NOTE

The Bank of New York

101 Barclay Street, Floor 4 East

New York, New York 10286

Attn: Global Finance Americas

			
	     Re:	 	7.375% Senior Guaranteed Notes Due 2017 (the “Notes”)

     Reference is hereby made to the Indenture, dated April 25, 2007 (the “Indenture”), among TAM
Capital Inc., the Guarantors party thereto, The Bank of New York, as Trustee, Registrar, Transfer
Agent and Principal Paying Agent and The Bank of New York (Luxembourg) S.A., as Luxembourg Paying
Agent and Transfer Agent. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

     This
letter relates to U.S.$___ principal amount of Notes which are held in the form of
[a beneficial interest in the Restricted Global Note (CUSIP No. 87484E AA9) with the Depositary]
[[a] Certificated Note(s) in the name of the undersigned.]9

     The undersigned has requested for the restrictive Legend on the Certificated Note(s) to be
removed.

     In connection with such transfer, the undersigned does hereby certify that such transfer has
been effected only (i) in an offshore transaction in accordance with Rule 904 under the Securities
Act, (ii) pursuant to an exemption from registration under the Securities Act provided by Rule 144
thereunder (if available) or (iii) pursuant to an effective registration statement under the
Securities Act, in each of cases (i) through (iii) in accordance with any applicable securities
laws of any State of the United States.

 

			
	9	 	Indicate form in which Notes are held.

3

 

     This certificate and the statements contained herein are made for your benefit and for the
benefit of and TAM Capital Inc.

	 	 	 	 	 	 	 
	 	 	[NAME OF UNDERSIGNED]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Dated:                     , ___

cc:     TAM Capital Inc.

4

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