Document:

EX-4.1

 

Exhibit 4.1

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF JUNE 20, 2007

AMONG

PARK-OHIO INDUSTRIES, INC.,

THE OTHER LOAN PARTIES PARTY HERETO,

THE LENDERS PARTY HERETO FROM TIME TO TIME,

JPMORGAN CHASE BANK, N.A.,

AS AGENT AND LC ISSUER

AND

KEYBANK NATIONAL ASSOCIATION,

AS SYNDICATION AGENT

AND

JPMORGAN SECURITIES INC.,

AS LEAD ARRANGER AND SOLE BOOK RUNNER

i

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I. DEFINITIONS

	 	 	6	 
	ARTICLE II. THE FACILITY

	 	 	41	 
	2.1. The Facility

	 	 	41	 
	2.2. Ratable Loans; Risk Participation

	 	 	52	 
	2.3. Payment of the Obligations; Currency

	 	 	52	 
	2.4. Minimum Amount of Each Advance

	 	 	52	 
	2.5. Funding Account

	 	 	53	 
	2.6. Reliance Upon Authority; No Liability

	 	 	53	 
	2.7. Conversion and Continuation of Outstanding Advances

	 	 	53	 
	2.8. Telephonic Notices

	 	 	54	 
	2.9. Notification of Advances, Interest Rates, Prepayments and Commitment Reductions

	 	 	54	 
	2.10. Fees

	 	 	54	 
	2.11. Interest Rates

	 	 	55	 
	2.12. Fixed Rate Advances Post Default; Default Rates

	 	 	56	 
	2.13. Interest Payment Dates; Interest and Fee Basis

	 	 	56	 
	2.14. Voluntary Prepayments

	 	 	57	 
	2.15. Mandatory Prepayments

	 	 	57	 
	2.16. Termination of the Facility

	 	 	59	 
	2.17. Method of Payment

	 	 	59	 
	2.18. Apportionment, Application and Reversal of Payments

	 	 	60	 
	2.19. Settlement

	 	 	61	 
	2.20. Indemnity for Returned Payments

	 	 	62	 
	2.21. Notes; Evidence of Indebtedness

	 	 	62	 
	2.22. Lending Installations

	 	 	63	 
	2.23. Non-Receipt of Funds by the Agent; Defaulting Lenders

	 	 	63	 
	2.24. Fixed Charge Coverage Ratio Condition

	 	 	65	 
	2.25. Designated Senior Debt

	 	 	65	 
	2.26 Change of Currency

	 	 	65	 
	2.27 Exchange Rate Fluctuations

	 	 	65	 
	2.28 Option to Increase

	 	 	66	 
	ARTICLE III YIELD PROTECTION; TAXES

	 	 	67	 
	3.1. Yield Protection

	 	 	67	 
	3.2. Changes in Capital Adequacy Regulations

	 	 	68	 
	3.3. Availability of Types of Advances

	 	 	69	 
	3.4. Funding Indemnification

	 	 	69	 
	3.5. Taxes

	 	 	69	 
	3.6. Lender Statements; Survival of Indemnity

	 	 	72	 
	ARTICLE IV CONDITIONS PRECEDENT

	 	 	73	 
	4.1. Effectiveness

	 	 	73	 
	4.2. Each Credit Extension

	 	 	74	 
	4.3. Post-Closing Conditions

	 	 	74	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES

	 	 	75	 
	5.1. Existence and Standing

	 	 	75	 
	5.2. Authorization and Validity

	 	 	75	 
	5.3. No Conflict; Government Consent

	 	 	75	 
	5.4. Security Interest in Collateral

	 	 	76	 
	5.5 Financial Statements

	 	 	76	 
	5.6. Material Adverse Change

	 	 	76	 
	5.7. Taxes

	 	 	76	 

ii

 

	 	 	 	 	 
	5.8. Litigation and Contingent Obligations

	 	 	77	 
	5.9. Capitalization and Subsidiaries

	 	 	77	 
	5.10. ERISA

	 	 	77	 
	5.11. Accuracy of Information

	 	 	77	 
	5.12. Names; Prior Transactions

	 	 	78	 
	5.13. Regulation U

	 	 	78	 
	5.14. Material Agreements

	 	 	78	 
	5.15. Compliance With Laws

	 	 	78	 
	5.16. Ownership of Properties

	 	 	78	 
	5.17. Plan Assets; Prohibited Transactions

	 	 	78	 
	5.18. Environmental Matters

	 	 	78	 
	5.19. Investment Company Act

	 	 	79	 
	5.20. Public Utility Holding Company Act

	 	 	79	 
	5.21. Bank Accounts

	 	 	79	 
	5.22. Indebtedness

	 	 	79	 
	5.23. Affiliate Transactions

	 	 	79	 
	5.24. Real Property; Leases

	 	 	79	 
	5.25. Intellectual Property Rights

	 	 	79	 
	5.26. Insurance

	 	 	80	 
	5.27. Solvency

	 	 	80	 
	5.28. Subordinated Indebtedness

	 	 	80	 
	5.29. Common Enterprise

	 	 	80	 
	5.30. Reportable Transaction

	 	 	81	 
	5.31 Indenture

	 	 	81	 
	5.32 Permitted Indebtedness

	 	 	81	 
	5.33 Specifically Designated National and Blocked Persons

	 	 	81	 
	ARTICLE VI COVENANTS

	 	 	81	 
	6.1. Financial and Collateral Reporting

	 	 	81	 
	6.2. Use of Proceeds

	 	 	85	 
	6.3 Notices

	 	 	85	 
	6.4. Conduct of Business

	 	 	86	 
	6.5. Taxes

	 	 	87	 
	6.6. Payment of Indebtedness and Other Liabilities

	 	 	87	 
	6.7. Insurance

	 	 	87	 
	6.8. Compliance with Laws

	 	 	89	 
	6.9. Inspection

	 	 	89	 
	6.10. Appraisals

	 	 	89	 
	6.11. Communications with Accountants

	 	 	89	 
	6.12. Collateral Access Agreements and Real Estate Purchases

	 	 	90	 
	6.13. Deposit Account Control Agreements

	 	 	90	 
	6.14 Additional Collateral; Further Assurances

	 	 	90	 
	6.15. Dividends

	 	 	92	 
	6.16. Indebtedness

	 	 	92	 
	6.17. Capital Structure

	 	 	94	 
	6.18. Merger

	 	 	94	 
	6.19. Sale of Assets

	 	 	94	 
	6.20. Investments and Acquisitions

	 	 	95	 
	6.21. Liens

	 	 	96	 
	6.22. Change of Name or Location; Change of Fiscal Year

	 	 	97	 
	6.23. Affiliate Transactions

	 	 	98	 
	6.24. Amendments to Agreements

	 	 	98	 

iii

 

	 	 	 	 	 
	6.25. Prepayment of Indebtedness; Subordinated Indebtedness

	 	 	98	 
	6.26 Letters of Credit

	 	 	98	 
	6.27. Financial Contracts

	 	 	98	 
	6.28. [Reserved]

	 	 	98	 
	6.29. Debt Service Coverage Ratio

	 	 	98	 
	6.30. Depository Banks

	 	 	99	 
	6.31. Sale of Accounts

	 	 	99	 
	6.32. Off-Balance Sheet Liabilities; Sale and Leaseback Transactions

	 	 	99	 
	6.33 Subordination of Intercompany Notes

	 	 	99	 
	6.34. Restrictive Agreements

	 	 	100	 
	ARTICLE VII DEFAULTS

	 	 	100	 
	ARTICLE VIII REMEDIES; WAIVERS AND AMENDMENTS

	 	 	104	 
	8.1. Remedies

	 	 	104	 
	8.2. Waivers by Loan Parties

	 	 	105	 
	8.3. Amendments

	 	 	105	 
	8.4. Preservation of Rights

	 	 	107	 
	ARTICLE IX GENERAL PROVISIONS

	 	 	108	 
	9.1. Survival of Representations

	 	 	108	 
	9.2. Governmental Regulation

	 	 	108	 
	9.3. Headings

	 	 	108	 
	9.4. Entire Agreement

	 	 	108	 
	9.5. Several Obligations; Benefits of this Agreement

	 	 	108	 
	9.6. Expenses; Indemnification

	 	 	108	 
	9.7. Numbers of Documents

	 	 	110	 
	9.8. Accounting

	 	 	110	 
	9.9. Severability of Provisions

	 	 	111	 
	9.10. Nonliability of Lenders

	 	 	111	 
	9.11. Confidentiality

	 	 	111	 
	9.12. Nonreliance

	 	 	112	 
	9.13 Disclosure

	 	 	112	 
	9.14 Judgment Currency

	 	 	112	 
	9.15 Currency Equivalent Generally

	 	 	112	 
	9.16 No Cross Collateralization

	 	 	112	 
	9.17. Amendment and Restatement

	 	 	112	 
	ARTICLE X THE AGENT

	 	 	114	 
	10.1. Appointment; Nature of Relationship

	 	 	114	 
	10.2. Powers

	 	 	114	 
	10.3. General Immunity

	 	 	115	 
	10.4. No Responsibility for Credit Extensions, Recitals, etc.

	 	 	115	 
	10.5. Action on Instructions of the Lenders

	 	 	115	 
	10.6. Employment of Agents and Counsel

	 	 	116	 
	10.7. Reliance on Documents; Counsel

	 	 	116	 
	10.8. Agent’s Reimbursement and Indemnification

	 	 	116	 
	10.9. Notice of Default

	 	 	116	 
	10.10. Rights as a Lender

	 	 	117	 
	10.11. Lender Credit Decision

	 	 	117	 
	10.12. Successor Agent

	 	 	117	 
	10.13. Agent and Arranger Fees

	 	 	118	 
	10.14. Delegation to Affiliates

	 	 	118	 
	10.15. Execution of Loan Documents

	 	 	118	 
	10.16. Collateral Matters

	 	 	118	 

iv

 

	 	 	 	 	 
	10.17. Syndication Agent

	 	 	120	 
	10.18 Authority with Respect to Québec

	 	 	120	 
	ARTICLE XI SETOFF; RATABLE PAYMENTS

	 	 	121	 
	11.1. Setoff

	 	 	121	 
	11.2. Ratable Payments

	 	 	121	 
	ARTICLE XII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

	 	 	122	 
	12.1. Successors and Assigns

	 	 	122	 
	12.2. Participations

	 	 	122	 
	12.3. Assignments

	 	 	123	 
	12.4. Dissemination of Information

	 	 	125	 
	12.5. Tax Treatment

	 	 	125	 
	12.6. Assignment by LC Issuer

	 	 	125	 
	ARTICLE XIII NOTICES

	 	 	125	 
	13.1 Notices; Effectiveness; Electronic Communication

	 	 	125	 
	13.2. Change of Address, Etc.

	 	 	126	 
	ARTICLE XIV COUNTERPARTS

	 	 	127	 
	ARTICLE XV GUARANTY

	 	 	127	 
	15.1. Guaranty

	 	 	127	 
	15.2. Guaranty of Payment

	 	 	127	 
	15.3. No Discharge or Diminishment of Guaranty

	 	 	128	 
	15.4. Defenses Waived

	 	 	129	 
	15.5. Rights of Subrogation

	 	 	129	 
	15.6. Reinstatement; Stay of Acceleration

	 	 	129	 
	15.7. Information

	 	 	130	 
	15.8. [Intentionally Deleted.]

	 	 	130	 
	15.9. Taxes

	 	 	130	 
	15.10. Contribution

	 	 	130	 
	15.11. Lending Installations

	 	 	131	 
	15.12 Liability Cumulative

	 	 	131	 
	15.13 Fraudulent Conveyance Matters

	 	 	131	 
	ARTICLE XVI CASH MANAGEMENT

	 	 	132	 
	16.1. Lockbox and Cash Management Account

	 	 	132	 
	16.2 Application of Payments

	 	 	133	 
	ARTICLE XVII RELATIONSHIP OF THE DOMESTIC BORROWER AND THE OTHER LOAN PARTIES

	 	 	134	 
	17.1. Notices

	 	 	134	 
	17.2. Execution of Loan Documents; Borrowing Base Certificate

	 	 	134	 
	17.3. Reporting

	 	 	135	 
	17.4. Disbursement of Loan Proceeds

	 	 	135	 
	17.5. Domestic Borrower as Representative

	 	 	135	 
	ARTICLE XVIII USA PATRIOT ACT NOTIFICATION

	 	 	136	 
	18.1 USA Patriot Act Notification

	 	 	136	 
	ARTICLE XIX CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL; CONFESSION OF JUDGMENT

	 	 	136	 
	19.1 CHOICE OF LAW

	 	 	136	 
	19.2 CONSENT TO JURISDICTION

	 	 	136	 
	19.3 WAIVER OF JURY TRIAL

	 	 	137	 
	19.4 CONFESSION OF JUDGMENT

	 	 	137	 

v

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     This Second Amended and Restated Credit Agreement, dated as of June 20, 2007, is among
Park-Ohio Industries, Inc., an Ohio corporation (the “Domestic Borrower”), the other Loan
Parties, the Lenders and JPMorgan Chase Bank, N.A., a national banking association, as LC Issuer
and as the Agent.

RECITALS

     WHEREAS, the Domestic Borrower, certain of the other Loan Parties, certain of the Lenders, and
the Agent entered into the Existing Loan Documents (as defined below); and

     WHEREAS, the Domestic Borrower, the other Loan Parties, the Lenders, and the Agent have agreed
to amend and restate the Existing Loan Documents as set forth herein, and the Guarantors have
acknowledged and agreed to such amendment and restatement.

     NOW, THEREFORE, in consideration of these premises and the terms and conditions set forth in
this Agreement, and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

     As used in this Agreement:

     “Account” shall have the meaning given to such term in the Security Agreement.

     “Account Debtor” means any Person obligated on an Account.

     “Acquisition” means any transaction, or any series of related transactions,
consummated on or after the Effective Date, by which any Loan Party (a) acquires any going business
or all or substantially all of the assets of any Person, whether through purchase of assets, merger
or otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of votes) of the Capital
Stock of a Person which has ordinary voting power for the election of directors or other similar
management personnel of a Person (other than Capital Stock having such power only by reason of the
happening of a contingency) or a majority of the outstanding Capital Stock of a Person.

     “Advance” means a borrowing hereunder, (a) made to the same Borrower on the same
Borrowing Date, or (b) converted or continued on the same date of conversion or continuation,
consisting, in either case, of the aggregate amount of the several Loans of the same Type and
currency and, in the case of Fixed Rate Loans, for the same Interest Period. The term Advance
shall include Non-Ratable Loans, Overadvances, Protective Advances, and UK Overdraft Advances,
unless otherwise expressly provided.

 

 

     “Affiliate” of any Person means any other Person directly or indirectly controlling,
controlled by or under common control with such Person. A Person shall be deemed to control
another Person if the controlling Person owns 10% or more of any class of the voting Capital Stock
of the controlled Person or possesses, directly or indirectly, the power to direct or cause the
direction of the management or policies of the controlled Person, whether through ownership of
Capital Stock, by contract or otherwise.

     “Agent” means Chase in its capacity as contractual representative of the Lenders
pursuant to Article X, and not in its individual capacity as a Lender, and any successor
Agent appointed pursuant to Article X, and any of such Agent’s Affiliates.

     “Aggregate Borrowing Base” means, at any time, the aggregate of the Domestic Borrowing
Base, the Canadian Borrowing Base and the UK Borrowing Base.

     “Aggregate Borrowing Base Certificate” means a certificate signed by an Authorized
Officer, in the form of Exhibit H or another form which is acceptable to the Agent in its
sole discretion.

     “Aggregate Canadian Commitment” means the aggregate of the Canadian Commitments of all
Canadian Lenders, as reduced from time to time pursuant to the terms hereof, which Aggregate
Canadian Commitment shall initially be in the amount of Twelve Million Dollars ($12,000,000).

     “Aggregate Canadian Exposure” means, at any time, the aggregate of the Canadian
Exposure of all Canadian Lenders at such time.

     “Aggregate Commitment” means the amount of $270,000,000, which may be increased
pursuant to the terms of Section 2.28 and reduced from time to time pursuant to the terms
hereof.

     “Aggregate Credit Exposure” means, at any time, the aggregate of the Aggregate
Domestic Exposure, the Aggregate Canadian Exposure and the Aggregate UK Exposure at such time.

     “Aggregate Domestic Exposure” means, at any time, the aggregate of the Domestic
Exposure of all Domestic Lenders at such time.

     “Aggregate UK Commitment” means the aggregate of the UK Commitments of all UK Lenders,
as reduced from time to time pursuant to the terms hereof, which Aggregate UK Commitment shall
initially be in the amount of Ten Million Dollars ($10,000,000).

     “Aggregate UK Exposure” means, at any time, the aggregate of the UK Exposure of all UK
Lenders at such time.

     “Agreement” means this Second Amended and Restated Credit Agreement, as it may be
amended or modified and in effect from time to time.

 

 

     “Alternate Base Rate” means, for any day, a rate of interest per annum equal to the
higher of (a) the Prime Rate for such day and (b) the sum of the Federal Funds Effective Rate for
such day plus 1/2% per annum.

     “Applicable Agent” means the Agent, the Canadian Correspondent Lender or the UK
Correspondent Lender, as the context may require.

     “Applicable Fee Rate” means, at any time, the percentage rate per annum at which fees
accrue on Available Commitment at such time as set forth in the Pricing Schedule.

     “Applicable Margin” means, with respect to Advances of any Type at any time, the
percentage rate per annum which is applicable at such time with respect to Advances of such Type as
set forth in the Pricing Schedule.

     “Arranger” means JPMorgan Securities Inc., a Delaware corporation, and its successors,
in its capacity as Lead Arranger and Sole Book Runner.

     “Article” means an article of this Agreement unless another document is specifically
referenced.

     “Assignment Agreement” is defined in Section 12.3(a).

     “Associated Cost Rate” means the percentage rate per annum calculated by the UK
Correspondent Lender in accordance with Exhibit M.

     “Authorized Officer” means any of the chief executive officer, chief operating
officer, President, Vice President, Secretary or the chief financial officer, acting singly.

     “Availability” means at any time, an amount equal to (a) the Maximum Borrowing Amount,
minus (b) the Aggregate Credit Exposure.

     “Available Commitment” means, at any time, the Aggregate Commitment then in effect
minus the Aggregate Credit Exposure at such time.

     “Banking Services” means each and any of the following bank services provided to any
Loan Party by the Lenders, or any of their Affiliates: (a) commercial credit cards, (b) stored
value cards, (c) treasury management services (including, without limitation, controlled
disbursement, automated clearinghouse transactions, return items, overdrafts, interstate depository
network services, and international cash management services), (d) leasing services, and (e) Rate
Management Transactions.

     “Banking Services Obligations” of the Loan Parties means any and all obligations of
the Loan Parties, whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications thereof and
substitutions therefor) in connection with Banking Services.

 

 

     “Banking Services Reserves” means all Reserves which the Agent from time to time
establishes in its sole discretion for Banking Services then provided or outstanding.

     “Bankruptcy Code” means, as applicable, Title 11 of the U.S. Code (11 U.S.C. § 101
et seq.), or under any other bankruptcy insolvency, liquidation, winding-up,
corporate or similar statute or law, foreign, federal, state or provincial, in any applicable
jurisdiction, now or hereafter existing, as any of the foregoing may be amended from time to time,
or other applicable statute for jurisdictions outside of the United States, as the case may be,
including, without limitation, the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors
Arrangement Act (Canada), and the Insolvency Act of 1986 (UK) and any rule or regulation issued
thereunder.

     “Borrower” means, collectively or individually, as the context may require, the
Domestic Borrower, the Canadian Borrower, the UK Borrowers (or either of them), and their
successors and assigns.

     “Borrowing Base Certificate” means a certificate in the form of Exhibit H or
another form which is acceptable to the Agent in its sole discretion.

     “Borrowing Base Report” means a certificate in the form of Exhibit H or
another form which is acceptable to the Agent in its sole discretion.

     “Borrowing Date” means a date on which an Advance or a Loan is made hereunder.

     “Borrowing Loan Party” means each Loan Party that owns Collateral used in the
calculation of the Aggregate Borrowing Base.

     “Borrowing Notice” is defined in Section 2.1.1(b).

     “Business Day” means (a) with respect to any borrowing, payment or rate selection of
Fixed Rate Advances provided by the Domestic Lenders, a day (other than a Saturday or Sunday) on
which banks generally are open in Chicago and New York City for the conduct of substantially all of
their commercial lending activities, interbank wire transfers can be made on the Fedwire system,
and dealings in Dollars are carried on in the London interbank market, (b) with respect to any
borrowing, payment or rate selection of Fixed Rate Advances provided by the UK Lenders, a day
(other than a Saturday or Sunday) on which banks generally are open in London for the conduct of
substantially all of their commercial lending activities, interbank wire transfers can be made on
the Fedwire system, and dealings in Pounds Sterling are carried on in the London interbank market,
(c) with respect to any borrowing, payment or rate selection of Fixed Rate Advances provided by the
Canadian Lenders, a day (other than a Saturday or Sunday) on which banks generally are open in
Chicago, New York City, and Toronto for the conduct of substantially all of their commercial
lending activities, interbank wire transfers can be made on the Fedwire system, and dealings in
Dollars and CAD are carried on in the London interbank market, and (d) for all other purposes, a
day (other than a Saturday or Sunday) on which banks generally are open in Chicago for the conduct
of substantially all of their commercial lending activities and interbank wire transfers can be
made on the Fedwire system.

 

 

     “Canadian Advance” means a borrowing hereunder (a) made by some or all of the Canadian
Lenders on the same Borrowing Date or (b) converted or continued by the Canadian Lenders on the
same date of conversion or continuation, consisting, in either case, of the aggregate amount of the
Canadian Revolving Loans of the same Type and, in the case of the Canadian Fixed Rate Loans, for
the same Interest Period. The term “Canadian Advance” shall include Protective Advances made by
the Canadian Correspondent Lender.

     “Canadian Affiliate” means a financial institution organized under the laws of Canada,
or a province or territory thereof that is affiliated with a Lender.

     “Canadian Availability” means, at any time, an amount equal to (a) the Canadian
Maximum Borrowing Amount, minus (b) the Aggregate Canadian Exposure.

     “Canadian Base Rate” means the per annum interest rate established from time to time
by the Canadian Correspondent Lender as the Canadian Correspondent Lender’s “prime rate” for loans
in Canadian Dollars or similar index, whether or not such rate is publicly announced; the Canadian
Base Rate may not be the lowest interest rate charged by Canadian Correspondent Lender for
commercial or other extensions of credit in Canadian Dollars. Each change in the Canadian Base
Rate shall be effective immediately from and after such change.

     “Canadian Borrower” means RB&W Corporation of Canada, an Ontario corporation.

     “Canadian Borrowing Base” means, at any time, with respect to the Canadian Loan
Parties, the sum of (a) up to 85% of such Loan Parties’ Eligible Accounts at such time,
plus (b) the least of (i) up to 65% of such Loan Parties’ Eligible Inventory, valued at the
lower of cost or market value, determined on a first-in-first-out basis, at such time, (ii) (A) 85%
multiplied by (B) the Orderly Liquidation Percentage multiplied by (C) the value of
such Loan Parties’ Inventory, or (iii) $6,000,000, minus (c) Reserves related to the
Canadian Loan Parties. The Canadian Borrowing Base shall be calculated and reported in Dollars.
The Agent may, in its Permitted Discretion, reduce the advance rates set forth above or reduce one
or more of the other elements used in computing the Canadian Borrowing Base.

     “Canadian Commitment” means, for each Canadian Lender, the obligation of such Lender
to make Canadian Revolving Loans and to participate in Canadian LC Obligations in an aggregate
amount not exceeding the amount set forth in the Commitment Schedule or as set forth in any
Assignment Agreement that has become effective pursuant to Section 12.3(a), as such amount
may be modified from time to time pursuant to the terms hereof.

     “Canadian Correspondent Lender” means JPMorgan Chase Bank, N.A., Toronto Branch, or
such other financial institution organized under the laws of Canada (or any province or territory
thereof) or otherwise a Canadian Taxable Lender as may be designated by the Agent from time to
time.

     “Canadian Deposit Offered Rate” means on any date the annual rate of interest which is
the rate determined as being the arithmetic average of the quotations of all institutions listed in
respect of the “BA 1 Month” Rate for Canadian Dollar denominated bankers’ acceptances

 

 

displayed and identified as such on the “Reuters Screen CDOR Page” as defined in the
International Swap Dealer Association, Inc. definitions, as modified and amended from time to time
as of 10:00 a.m. (Toronto time) on such day and, if such day is not a Business Day, then on the
immediately preceding Business Day (as adjusted by the Canadian Correspondent Lender after 10:00
a.m. (Toronto time) to reflect any error in the posted rate of interest or in the posted average
annual rate of interest); and if such rates are not available on the Reuters Screen CDOR Page on
any particular day, then the Canadian Deposit Offered Rate on that day shall be calculated as the
cost of funds quoted by the Agent to raise Canadian Dollars for the applicable Interest Period as
of 10:00 a.m. (Toronto time) on such day for commercial loans or other extensions of credit to
businesses of comparable credit risk; or if such day is not a Business Day, then as quoted by the
Canadian Correspondent Lender on the immediately preceding Business Day.

     “Canadian Derived Fixed Rate” means a per annum rate equal to the Canadian Domestic
Rate plus the Applicable Margin based on the Eurodollar Margin relating to Domestic
Revolving Loans other than for Fixed Asset Advances and the Tranche B Facility.

     “Canadian Derived Floating Rate” means a per annum rate equal to the Canadian Base
Rate plus the Applicable Margin based on the ABR Margin relating to Floating Rate Loans,
plus three quarters of one percent (0.75%).

     “Canadian Dollars” and “CAD” means the lawful currency of Canada.

     “Canadian Domestic Rate” means, the per annum rate that is equal to the cost of
raising Canadian Dollars for the applicable Interest Period as determined by the Canadian
Correspondent Lender; provided that such cost of funds shall not exceed the Canadian Deposit
Offered Rate plus 10 basis points.

     “Canadian Exposure” means, with respect to any Canadian Lender, at any time, the sum
of the Dollar Equivalent of the aggregate principal amount of its Canadian Revolving Loans
outstanding at such time, plus an amount equal to its Pro Rata Share of the Dollar
Equivalent of the aggregate amount of Canadian LC Obligations outstanding at such time,
plus an amount equal to its Pro Rata Share of the Dollar Equivalent of the aggregate
principal amount of Protective Advances made by the Canadian Correspondent Lender and outstanding
at such time.

     “Canadian Facility LCs” means Facility LCs issued upon the application of a Canadian
Loan Party.

     “Canadian Fixed Rate Advance” means an Advance which, except as provided in
Section 2.12, bears interest at the Canadian Derived Fixed Rate.

     “Canadian Fixed Rate Loan” means a Loan which, except as provided in Section
2.12, bears interest at the Canadian Derived Fixed Rate.

     “Canadian Floating Rate Advance” means an Advance which, except as provided in
Section 2.12, bears interest at the Canadian Derived Floating Rate.

 

 

     “Canadian Floating Rate Loan” means a Loan which, except as provided in Section
2.12, bears interest at the Canadian Derived Floating Rate.

     “Canadian LC Obligations” means, at any time, with respect to Canadian Facility LCs,
the sum, without duplication, of (a) the aggregate undrawn stated amount under all Canadian
Facility LCs outstanding at such time plus (b) the aggregate unpaid amount at such time of
all Reimbursement Obligations related to Canadian Facility LCs.

     “Canadian Lenders” means, collectively (a) the Canadian Correspondent Lender and Bank
of America, N.A. (acting through its Canada branch) (each, a “CAD Designated Bank”), and
(b) the Canadian Affiliate of a CAD Designated Bank; provided that (i) any Canadian Revolving Loan
made by such Canadian Lender shall be actually made, issued or participated in, as the case may be,
by its Canadian Affiliate, and (ii) the Canadian Commitment for such Canadian Lender shall each be
deemed to apply to it and its Canadian Affiliate collectively, provided that any Canadian Lender
shall be a Canadian Taxable Lender.

     “Canadian Loan Parties” means the Canadian Borrower and the Canadian Subsidiaries, and
“Canadian Loan Party” means any one of them.

     “Canadian Maximum Borrowing Amount” means, at any time, an amount equal to the lesser
of (i) the Aggregate Canadian Commitment minus all Reserves then in effect related to the
Canadian Loan Parties, or (ii) the Canadian Borrowing Base.

     “Canadian Obligations” means all unpaid principal and accrued and unpaid interest on
the Canadian Revolving Loans, all Canadian LC Obligations, all Protective Advances made by the
Canadian Correspondent Lender, all Rate Management Obligations of the Canadian Loan Parties, all
accrued and unpaid fees and all expenses, reimbursements, indemnities, and other obligations of the
Canadian Loan Parties to the Canadian Lenders or to any Canadian Lender, the Canadian Correspondent
Lender, the applicable LC Issuer or any indemnified party (with respect to the Canadian Revolving
Loans) arising under the Loan Documents.

     “Canadian Revolving Loans” means the revolving loans extended by the Canadian Lenders
to the Canadian Borrower pursuant to Section 2.1.1 hereof.

     “Canadian Revolving Note” means any Canadian Revolving Note executed and delivered
pursuant to Section 2.1.1 hereof.

     “Canadian Subsidiary” means any Subsidiary of the Domestic Borrower (other than the
Canadian Borrower) or the Canadian Borrower that is organized under the laws of Canada or any
province or territory of Canada and that is either party to this Agreement on the date hereof or is
added as a party to this Agreement pursuant to a Joinder Agreement.

     “Canadian Taxable Lender” means a business organization under the laws of any
applicable jurisdiction which is permitted under Canadian law to lend money in Canada, and is
either (a) resident in Canada for the purposes of the Income Tax Act (Canada) (the “ITA”)
or

 

 

(b) an authorized foreign bank for the purposes of the Bank Act (Canada) for which the
Canadian Obligations are in respect of its Canadian banking business as defined in subsection
248(I) of the ITA, and which is accordingly deemed resident in Canada pursuant to subsection
212(13.3) of the ITA for purposes of withholding tax on the Canadian Obligations.

     “Capital Expenditures” means, without duplication, any expenditures for any purchase
or other acquisition or development of any asset which would be classified as a fixed or capital
asset on a consolidated balance sheet of the Domestic Borrower and its Subsidiaries prepared in
accordance with GAAP.

     “Capital Stock” means any and all corporate stock, units, shares, partnership
interests, membership interests, equity interests, rights, securities, or other equivalent
evidences of ownership (howsoever designated) issued by any Person.

     “Capitalized Lease” of a Person means any lease of Property by such Person as lessee
which would be capitalized on a balance sheet of such Person prepared in accordance with GAAP.

     “Capitalized Lease Obligations” of a Person means the amount of the obligations of
such Person under Capitalized Leases which would be shown as a liability on a balance sheet of such
Person prepared in accordance with GAAP.

     “Cash Equivalent Investments” means (a) short-term obligations of, or fully guaranteed
by, the U.S., (b) commercial paper rated A-1 or better by S&P or P-1 or better by Moody’s, (c)
demand deposit accounts maintained in the ordinary course of business, and (d) certificates of
deposit issued by and time deposits with any Domestic Lender or any commercial bank (whether
domestic or foreign) having capital and surplus in excess of $100,000,000; provided that, in each
case, the same provides for payment of both principal and interest (and not principal alone or
interest alone) and is not subject to any contingency regarding the payment of principal or
interest and any Canadian or UK equivalent.

     “Cash Management Account” is defined in Section 16.1.

     “Change” is defined in Section 3.2.

     “Change in Control” means (a) the acquisition by any Person (other than the Permitted
Holders), or two or more Persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of
20% or more of the outstanding voting Capital Stock of any Loan Party; (b) the Permitted Holders
shall collectively cease to own, free and clear of all Liens or other encumbrances, at least 15% of
the outstanding voting Capital Stock of the Parent on a fully diluted basis, or if they own less
than 15%, either Edward F. Crawford or Mathew V. Crawford shall cease to hold the office of
chairman, chief executive officer, or president of the Domestic Borrower or the Parent; (c) Parent
shall cease to own 100% of the Capital Stock of the Domestic Borrower; or (d) the occurrence of a
Change in Control, as defined in the Indenture.

 

 

     “Chase” means JPMorgan Chase Bank, N.A., a national banking association, in its
individual capacity, and its successors and assigns.

     “Closing Date” means July 30, 2003.

     “Code” means the Internal Revenue Code of 1986, as amended, reformed or otherwise
modified from time to time, and any rule or regulation issued thereunder, or the Canadian or UK
equivalent, if applicable.

     “Collateral” means any and all property covered by the Collateral Documents and any
and all other property, real or personal, tangible or intangible of any Loan Party, now existing or
hereafter acquired, that may at any time be or become subject to a security interest or Lien in
favor of the Agent, the Canadian Correspondent Lender or the UK Correspondent Lender, as the case
may be, for the benefit of each of such parties and the applicable Lenders, to secure the Secured
Obligations, or any portion thereof.

     “Collateral Access Agreement” means any landlord waiver or other agreement, in form
and substance satisfactory to the Agent, between the Agent and any third party (including any
bailee, consignee, customs broker, or other similar Person) in possession of any Collateral or any
landlord of any Loan Party for any real Property where any Collateral is located, as such landlord
waiver or other agreement may be amended, restated, or otherwise modified from time to time.

     “Collateral Documents” means, collectively, the Security Agreement, the Mortgages, the
Pledge Agreements, the Foreign Collateral Documents, and any other documents granting a Lien upon
the Collateral as security for payment of the Secured Obligations, or any portion thereof as the
case may be.

     “Collateral Shortfall Amount” is defined in Section 2.1.2(l).

     “Commitment” means, with respect to any Lender, individually or collectively, as the
context may require, its Domestic Commitment, its Canadian Commitment, and its UK Commitment.

     “Commitment Schedule” means the Schedule attached hereto identified as such and as it
may be amended pursuant to the terms of this Agreement.

     “Compliance Certificate” is defined in Section 6.1(e).

     “Consolidated Capital Expenditures” means, with reference to any period, the Capital
Expenditures of the Domestic Borrower and its Subsidiaries calculated on a consolidated basis for
such period.

     “Consolidated Debt Charges” means, with reference to any period, without duplication,
Consolidated Interest Expense to the extent paid in cash in such period, plus scheduled
principal payments on Indebtedness made during such period, plus any scheduled reductions
in the Fixed

 

 

Asset Borrowing Base during such period, all calculated for the Domestic Borrower and its
Subsidiaries on a consolidated basis.

     “Consolidated EBITDA” means Consolidated Net Income plus, to the extent
deducted from revenues in determining Consolidated Net Income, (a) Consolidated Interest Expense,
(b) Consolidated Tax Expense, (c) depreciation, (d) amortization, and (e) other non-cash expenses,
all calculated for the Domestic Borrower and its Subsidiaries on a consolidated basis.

     “Consolidated Interest Expense” means, with reference to any period, the interest
expense of the Domestic Borrower and its Subsidiaries calculated on a consolidated basis for such
period.

     “Consolidated Net Income” means, with reference to any period, the net income or loss
of the Domestic Borrower and its Subsidiaries calculated on a consolidated basis for such period.

     “Consolidated Tax Expense” means, with reference to any period, the tax expense of the
Domestic Borrower and its Subsidiaries calculated on a consolidated basis for such period.

     “Contention Account” means any Account which is owing by an Account Debtor to ILS and
which is classified by ILS, on its books or otherwise, as a “contention” Account.

     “Contingent Obligation” of a Person means any agreement, undertaking or arrangement by
which such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds
for the payment of, or otherwise becomes or is contingently liable upon, the obligation or
liability of any other Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating agreement, take-or-pay
contract or the obligations of any such Person as general partner of a partnership with respect to
the liabilities of the partnership.

     “Conversion/Continuation Notice” is defined in Section 2.7.

     “Controlled Group” means all members of a controlled group of corporations or other
business entities and all trades or businesses (whether or not incorporated) under common control
which, together with a Loan Party or any of its Subsidiaries, are treated as a single employer
under Section 414 of the Code.

     “Copyrights” shall have the meaning given to such term in the Security Agreement.

     “Credit Exposure” means, with respect to any Lender, its Domestic Exposure, Canadian
Exposure or the UK Exposure, as the context may require.

     “Credit Extension” means the making of an Advance or the issuance of a Facility LC
hereunder.

 

 

     “Credit Extension Date” means the Borrowing Date for an Advance or the issuance date
for a Facility LC.

     “Customer List” means, as at any date, a list of each Loan Party’s customers within
the last 120 days prior to such date, specifying each customer’s name, mailing address and phone
number.

     “Debt Service Coverage Ratio” means, the ratio, determined as of the end of each of
Fiscal Quarter of the Domestic Borrower for the then most-recently ended four Fiscal Quarters, of
(a) Consolidated EBITDA minus cash taxes paid, minus unfunded Capital Expenditures,
minus cash dividends, plus cash tax refunds to (b) Consolidated Debt Charges, all
calculated for the Domestic Borrower and its Subsidiaries on a consolidated basis for such period.

     “Default” means an event described in Article VII.

     “Defaulting Lender” is defined in Section 2.23(b).

     “Deposit Account Control Agreement” means an agreement, in form and substance
satisfactory to the Agent, among any Loan Party, a banking institution holding such Loan Party’s
funds, and the Agent with respect to collection and control of all deposits and balances held in a
deposit account maintained by any Loan Party with such banking institution.

     “Designated Account Debtors” shall mean those parties listed on Schedule 1, which
Schedule may be updated from time to time with the Agent’s prior written consent.

     “Document” shall have the meaning given to such term in the Security Agreement.

     “Dollar” and the sign “$” mean lawful money of the United States of America.

     “Dollar Equivalent” means (a) with respect to any Canadian Revolving Loan, Canadian
Facility LC, UK Fixed Rate Loan, UK Facility LC, UK Overdraft Advance, or Protective Advance made
by the Canadian Correspondent Lender or the UK Correspondent Lender, the amount denominated in CAD
or Pounds Sterling, as the case may be, as of any date of determination, that could be purchased
with the amount of Dollars at the most favorable spot exchange rate quoted by the Agent at
approximately 11:00 a.m. (Chicago time or London time, as the case may be) on such date, and (b)
with respect to any other amount, if such amount is determined in Dollars, then such amount in
Dollars and, if such amount is not determined in Dollars, the Dollar equivalent of such amount,
determined by the Agent on the basis of its spot rate at 11:00 a.m. (Chicago time or London time,
as the case may be) on the date for which the Dollar equivalent amount of such amount is being
determined.

     “Domestic Availability” means, at any time, an amount equal to (a) the Domestic
Maximum Borrowing Amount minus (b) the Aggregate Domestic Exposure.

     “Domestic Borrower” means Park-Ohio Industries, Inc., and its successors and assigns.

 

 

     “Domestic Borrowing Base” means, at any time, with respect to the Domestic Borrower
and the Domestic Loan Parties, the sum of (a) up to 85% of such Loan Parties’ Eligible Accounts at
such time, plus (b) the least of (i) up to 65% of such Loan Parties’ Eligible Inventory,
valued at the lower of cost or market value, determined on a first-in first-out basis, at such
time, (ii) (A) 85% multiplied by (B) the Orderly Liquidation Percentage multiplied
by (C) the value of such Loan Party’s Inventory, or (iii) $125,000,000 plus (c) the
Fixed Asset Borrowing Base plus (d) Tranche B Facility minus (e) Reserves related
to such Domestic Loan Parties. The Agent may, in its Permitted Discretion, reduce the advance
rates set forth above or reduce one or more of the other elements used in computing the Domestic
Borrowing Base.

     “Domestic Commitment” means, for each Domestic Lender, the obligation of such Lender
to make Domestic Revolving Loans and to participate in Domestic LC Obligations in an aggregate
amount not exceeding the amount set forth in the Commitment Schedule or as set forth in any
Assignment Agreement that has become effective pursuant to Section 12.3(a), as such amount
may be modified from time to time pursuant to the terms hereof, including, without limitation,
Section 2.28.

     “Domestic Exposure” means, with respect to any Domestic Lender, at any time, the sum
of the aggregate principal amount of its Domestic Revolving Loans outstanding at such time,
plus an amount equal to its Pro Rata Share of any Domestic LC Obligations outstanding at
such time, plus an amount equal to its Pro Rata Share, if any, of the aggregate principal
amount of Non Ratable Loans, Overadvances, and Protective Advances outstanding at such time,
plus, if the Domestic Lender is a Non-Participating Lender, an amount equal to its Pro Rata
Share of the aggregate principal amount of the Canadian Revolving Loans, Canadian LC Obligations,
UK Fixed Rate Loans, UK Overadvances, UK LC Obligations, and the Protective Advances made by the
Canadian Correspondent Lender and the UK Correspondent Lender, in each case, outstanding at such
time.

     “Domestic Facility LCs” means Facility LCs issued upon the application of any Domestic
Loan Party.

     “Domestic Floating Rate Advance” means an Advance which, except as otherwise provided
in Section 2.12, bears interest at the Floating Rate.

     “Domestic Floating Rate Loan” means a Loan which, except as otherwise provided in
Section 2.12, bears interest at the Floating Rate.

     “Domestic LC Obligations” means, at any time, with respect to Domestic Facility LCs,
the sum, without duplication, of (a) the aggregate undrawn stated amount under all Domestic
Facility LCs outstanding at such time plus (b) the aggregate unpaid amount at such time of
all Reimbursement Obligations related to Domestic Facility LCs.

     “Domestic Lenders” means each Lender other than the Canadian Lenders and the UK
Lenders, and their respective successors and assigns.

     “Domestic Loan Parties” means the Domestic Borrower and any Domestic Subsidiary that
is also a Loan Party, and “Domestic Loan Party” means any one of them.

 

 

     “Domestic Maximum Borrowing Amount” means, at any time, an amount equal to the lesser
of (i) the Aggregate Commitment minus all Reserves then in effect related to the Domestic
Loan Parties, or (ii) the Domestic Borrowing Base.

     “Domestic Revolving Loans” means the revolving loans extended by the Domestic Lenders
to the Domestic Borrower pursuant to Section 2.1.1 hereof.

     “Domestic Revolving Note” means any Domestic Revolving Note executed and delivered
pursuant to Section 2.1.1.

     “Domestic Subsidiary” means any Subsidiary which is organized under the laws of the
U.S. or any state, protectorate or territory of the U.S.

     “Effective Date” means the date of this Agreement

     “Eligible Accounts” means, at any time, the Accounts of a Loan Party, which the Agent
determines in its Permitted Discretion are eligible as the basis for Credit Extensions hereunder.
Without limiting the Agent’s discretion provided herein, Eligible Accounts shall not include any
Account:

     (a) which is not subject to a first priority perfected security interest for the
benefit of the Applicable Agent and Lenders or is not subject to a legal or equitable
assignment in favor of the Applicable Agent and Lenders, notice in respect of which has been
served on the applicable Account Debtors;

     (b) which is subject to any Lien other than (i) Liens for the benefit of the Applicable
Agent and Lenders, and (ii) a Permitted Lien which does not have priority over the Liens for
the benefit of the Applicable Agent and Lenders;

     (c) with respect to which (i) more than 60 days have elapsed since the due date for
payment, (ii) more than 120 days have elapsed since the date of the original invoice
therefor, or (iii) with respect to the Designated Account Debtors, more than 60 days have
elapsed since the due date for payment, which shall in no event exceed 150 days since the
date of the original invoice therefor;

     (d) which is owing by an Account Debtor to a Loan Party for which more than 50% of the
Accounts owing from such Account Debtor to that Loan Party are ineligible hereunder;

     (e) which is owing by an Account Debtor to a Loan Party to the extent the aggregate
amount of Eligible Accounts owing from such Account Debtor to such Loan Party exceeds 25% of
the aggregate Eligible Accounts;

     (f) with respect to which any covenant, representation, or warranty contained in this
Agreement or in the Security Agreement has been breached or is not true;

 

 

     (g) which (i) does not arise from the sale of goods or performance of services in the
ordinary course of business, (ii) is not evidenced by an invoice or other documentation
satisfactory to the Agent which has been sent to the Account Debtor, (iii) represents a
progress billing, (iv) is contingent upon such Loan Party’s completion of any further
performance, or (v) represents a sale on a bill-and-hold, guaranteed sale, sale-and-return,
sale on approval, consignment, or any other repurchase or return basis;

     (h) for which the goods giving rise to such Account have not been shipped to the
Account Debtor or for which the services giving rise to such Account have not been performed
by such Loan Party;

     (i) with respect to which any check or other instrument of payment has been returned
uncollected for any reason;

     (j) which is owed by an Account Debtor which has (i) applied for, suffered, or
consented to the appointment of any receiver, custodian, trustee, or liquidator of its
assets, (ii) has had possession of all or a material part of its property taken by any
receiver, custodian, trustee or liquidator, (iii) filed, or had filed against it, any
request or petition for liquidation, reorganization, arrangement, adjustment of debts,
adjudication as bankrupt, winding-up, or voluntary or involuntary case under any state or
federal bankruptcy laws; provided, however, that Accounts of a “Post-Petition” Account
Debtor shall be Eligible Accounts if such Accounts are paid within the earlier of (A) 30
days, or (B) the amount of time specified in the Post-Petition Order, (iv) has admitted in
writing its inability, or is generally unable to, pay its debts as they become due, (v)
become insolvent, or (vi) ceased operation of its business;

     (k) which is owed by an Account Debtor that (i) does not maintain its principal place
of business in the U.S., Canada or the United Kingdom, or (ii) is not organized under the
applicable laws of the U.S., any state or territory of the U.S., the District of Columbia,
Canada, any province or territory of Canada, the United Kingdom, unless such Account is
backed by a Letter of Credit or foreign credit insurance acceptable to the Agent which is in
the possession of the Agent;

     (l) which is owed in any currency other than Dollars, Canadian Dollars, Pounds
Sterling, or Euros;

     (m) which is owed by (i) the government (or any department, agency, public corporation,
or instrumentality thereof) of any country other than the U.S. unless such Account is backed
by a Letter of Credit acceptable to the Agent which is in the possession of the Agent, or
(ii) the government of the U.S., or any department, agency, public corporation, or
instrumentality thereof, in an aggregate amount exceeding $750,000, unless the Federal
Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and
41 U.S.C. § 15 et seq.), and any other steps necessary to perfect the Liens
for the benefit of the Applicable Agent and Lenders in such Account have been complied with
to the Agent’s satisfaction;

 

 

     (n) which is owed by any Affiliate, employee, or director of any Loan Party;

     (o) which, for any Account Debtor, exceeds a credit limit determined by the Agent, in
its Permitted Discretion, to the extent of such excess;

     (p) which is owed by an Account Debtor or any Affiliate of such Account Debtor to which
any Loan Party is indebted, but only to the extent of such indebtedness;

     (q) which is subject to any counterclaim, deduction, defense, setoff or dispute to the
extent of such counterclaim, deduction, defense, set-off or dispute, unless such Account is
a Contention Account;

     (r) which is evidenced by any promissory note, chattel paper, or instrument;

     (s) which is owed by an Account Debtor located in any jurisdiction which requires
filing of a “Notice of Business Activities Report” or other similar report in order to
permit such Loan Party to seek judicial enforcement in such jurisdiction of payment of such
Account, unless such Loan Party has filed such report or qualified to do business in such
jurisdiction;

     (t) with respect to which such Loan Party has made any agreement with the Account
Debtor for any reduction thereof, other than discounts and adjustments given in the ordinary
course of business;

     (u) which is a Contention Account, but only to the extent that such Contention Account
when added together with the aggregate of all of ILS’ Contention Accounts exceeds $750,000;
or

     (v) which the Agent determines in its Permitted Discretion may not be paid by reason of
the Account Debtor’s inability to pay.

In the event that an Account which was previously an Eligible Account ceases to be an Eligible
Account hereunder, the Domestic Borrower shall notify the Agent thereof (i) within three Business
Days of the date the Domestic Borrower has obtained knowledge thereof if any such Account is in
excess of $1,000,000 in the aggregate for such Account Debtor and (ii) on and at the time of
submission by the Domestic Borrower to the Agent of the next Aggregate Borrowing Base Certificate
in all other cases.

     “Eligible Inventory” means, at any time, the Inventory of a Loan Party, which the
Agent determines in its Permitted Discretion is eligible as the basis for Credit Extensions
hereunder. Without limiting the Agent’s discretion provided herein, Eligible Inventory shall not
include any Inventory:

 

 

     (a) which is not subject to a first priority perfected security interest, or in the
case of UK Inventory a floating charge, for the benefit of the Applicable Agent and Lenders;

     (b) which is subject to any Lien other than (i) Liens for the benefit of the Applicable
Agent and Lenders and (ii) a Permitted Lien which does not have priority over the Liens for
the benefit of the Applicable Agent and Lenders;

     (c) which is, in the Agent’s opinion, slow moving, obsolete, unmerchantable, defective,
unfit for sale, not salable at prices approximating at least the cost of such Inventory in
the ordinary course of business or unacceptable due to age, type, category and/or quantity;

     (d) with respect to which any covenant, representation, or warranty contained in this
Agreement or the Security Agreement has been breached or is not true;

     (e) which does not conform to all material standards imposed by any governmental
authority;

     (f) which constitutes work-in-process, subassemblies, packaging and shipping material,
manufacturing supplies, display items, bill-and-hold goods, returned or repossessed goods,
defective goods, goods held on consignment, or goods which are not of a type held for sale
in the ordinary course of business;

     (g) which is not located in the U.S., Canada, the United Kingdom or Puerto Rico, or is
in transit with a common carrier from vendors and suppliers, provided that (i) Inventory in
transit from one U.S. location to another U.S. location may be included as eligible despite
this clause (g) so long as (A) the Agent shall have received (1) a true and correct
copy of the non-negotiable bill of lading and other shipping documents for such Inventory,
(2) evidence that such Inventory is insured pursuant to casualty insurance naming the Agent
as loss payee and otherwise covering such risks as the Agent may reasonably request, and (3)
such other duly executed documents as reasonably requested by the Agent for such Inventory
and (B) the common carrier is not an Affiliate of the applicable vendor or supplier; and
(ii) Inventory in transit from a location outside the U.S. to a U.S. location may be
included as eligible despite this clause (g) so long as (A) the Agent shall have
received (1) a true and correct copy of the negotiable bill of lading and other shipping
documents for such Inventory, (2) evidence that such Inventory is insured pursuant to
casualty insurance naming the Agent as loss payee and otherwise covering such risks as the
Agent may reasonably request, and (3) such other duly executed documents as reasonably
requested by the Agent for such Inventory including, without limitation, a customs broker
agreement and (B) the common carrier is not an Affiliate of the applicable vendor or
supplier

     (h) which is located in any location leased by such Loan Party unless the lessor has
delivered to the Agent a Collateral Access Agreement or, with respect to any such location
for which the Agent does not receive a Collateral Access Agreement the

 

 

Inventory located there will continue to be Eligible Inventory, but the Agent shall
establish a Reserve in an amount equal to three (3) months rent for such location;
provided, however, that with respect to Inventory located at a leased location for
which the Agent shall not have received a Collateral Access Agreement on the Effective Date,
such Inventory shall be Eligible Inventory under this subpart (h) for a period of 60 days
after the Effective Date;

     (i) which is located in any third party warehouse or is in the possession of a bailee
and is not evidenced by a Document (other than non-negotiable bills of lading to the extent
permitted pursuant to clause (g) above), unless such warehouseman or bailee has delivered to
the Agent a Collateral Access Agreement and such other documentation as the Agent may
require;

     (j) which is the subject of a consignment by such Loan Party as consignor;

     (k) which contains or bears any Intellectual Property Rights licensed to such Loan
Party unless the Agent is satisfied that it may sell or otherwise dispose of such Inventory
without (i) infringing the rights of such licensor, (ii) violating any contract with such
licensor, or (iii) incurring any liability with respect to payment of royalties other than
royalties incurred pursuant to sale of such Inventory under the current licensing agreement;

     (l) which is not reflected in a current perpetual inventory report of such Loan Party
(unless such Inventory is reflected in an acceptable separate report to the Agent,
reflecting such Inventory as “in transit,” “work in process,” “outside processing,” or any
other category (as is acceptable to the Agent) of Inventory);

     (m) which, with respect to the Canadian Loan Parties, is considered “30-day goods”
within the meaning of the Bankruptcy and Insolvency Act (Canada); or

     (n) which the Agent otherwise determines is unacceptable in its Permitted Discretion.

In the event that Inventory which was previously Eligible Inventory ceases to be Eligible Inventory
hereunder, the Domestic Borrower shall notify the Agent thereof (i) within three Business Days of
the date the Domestic Borrower has obtained knowledge thereof if any such Inventory has a value
(based on the lower of cost, determined on a first-in, first-out basis, or market) in excess of
$2,000,000 in the aggregate and (ii) on and at the time of submission by the Domestic Borrower to
the Agent of the next Aggregate Borrowing Base Certificate in all other cases.

     “Environmental Laws” means any and all federal, state, provincial, local and foreign
statutes, laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees,
plans, injunctions, permits, concessions, grants, franchises, licenses, agreements and other
legally enforceable governmental restrictions relating to (a) the protection of the environment,
(b) the effect of the environment on human health, (c) emissions, discharges or releases of
pollutants, contaminants, hazardous substances or wastes into surface water, ground water or

 

 

land, or (d) the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of pollutants, contaminants, hazardous substances or wastes or the clean-up
or other remediation thereof.

     “Equipment” has the meaning specified in the Security Agreement.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any rule or regulation issued thereunder.

     “ERISA Plan” means each “employee benefit plan” (within the meaning of ERISA Section
3(3)) that a Loan Party or any member of its Controlled Group at any time sponsors, maintains,
contributes to, has liability with respect to or has an obligation to contribute to such plan.

     “Euro” means the single currency unit of the Participating Member States.

     “Eurodollar Advance” means an Advance which, except as otherwise provided in
Section 2.12, bears interest at the applicable Eurodollar Rate.

     “Eurodollar Base Rate” means, with respect to a Eurodollar Advance for the relevant
Interest Period, the applicable British Bankers’ Association LIBOR rate for deposits in Dollars as
reported by any generally recognized financial information service as of 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period, and having a maturity equal to
such Interest Period, provided that, if no such British Bankers’ Association LIBOR rate is
available to the Agent, the applicable Eurodollar Base Rate for the relevant Interest Period shall
instead be the rate determined by the Agent to be the rate at which Chase or one of its Affiliate
banks offers to place deposits in Dollars with first-class banks in the interbank market at
approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest
Period, in the approximate amount of Chase’s relevant Eurodollar Loan and having a maturity equal
to such Interest Period.

     “Eurodollar Loan” means a Loan which, except as otherwise provided in Section
2.12, bears interest at the applicable Eurodollar Rate.

     “Eurodollar Rate” means, with respect to a Eurodollar Advance for the relevant
Interest Period, the sum of (a) the quotient of (i) the Eurodollar Base Rate applicable to such
Interest Period, divided by (ii) one minus the Reserve Requirement (expressed as a
decimal) applicable to such Interest Period, plus (b) the Applicable Margin.

     “Excluded Taxes” means, in the case of each Lender or applicable Lending Installation
and the Agent, taxes imposed on its overall revenue or net income or overall capital or net worth,
and franchise taxes imposed on it, by (a) the jurisdiction under the laws of which such Lender or
the Agent is incorporated or organized or doing business or (b) the jurisdiction in which the
Agent’s or such Lender’s principal executive office or such Lender’s applicable Lending
Installation is located.

 

 

     “Exhibit” refers to an exhibit to this Agreement, unless another document is
specifically referenced.

     “Existing Credit Agreement” means that certain Amended and Restated Credit Agreement
dated as of November 5, 2003, as amended, among the Domestic Borrower, the other Loan Parties party
thereto, the Lenders party thereto, Chase as the Agent and LC Issuer, KeyBank National Association
as the Syndication Agent and JPMorgan Securities Inc. as the lead arranger and sole book runner.

     “Existing Loan Documents” means the Existing Credit Agreement and all of the other
“Loan Documents” as defined in the Existing Credit Agreement.

     “Facility” means the credit facility described in Section 2.1 hereof to be
provided to the Borrowers on the terms and conditions set forth in this Agreement.

     “Facility LC” means a Letter of Credit issued pursuant to Section 2.1.2
hereof.

     “Facility LC Application” is defined in Section 2.1.2(c).

     “Facility LC Collateral Account” is defined in Section 2.1.2(j).

     “Facility Termination Date” means December 31, 2010 or any earlier date on which the
Aggregate Commitment is reduced to zero or otherwise terminated pursuant to the terms hereof.

     “Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to
the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as published for such day
(or, if such day is not a Business Day, for the immediately preceding 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 of the quotations at approximately 10:00 a.m. (Chicago time) on such day on such
transactions received by the Agent from three Federal funds brokers of recognized standing selected
by the Agent in its sole discretion.

     “Financial Contract” of a Person means (a) any exchange-traded or over-the-counter
futures, forward, swap or option contract or other financial instrument with similar
characteristics or (b) any Rate Management Transaction.

     “Fiscal Month” means any of the monthly accounting periods of the Domestic Borrower.

     “Fiscal Quarter” means any of the quarterly accounting periods of the Domestic
Borrower, ending on the last day of March, June, September and December of each year.

     “Fiscal Year” means any of the annual accounting periods of the Domestic Borrower,
ending on December 31 of each year.

     “Fixed Asset Advance” means a portion of the Domestic Revolving Loans equal to the
then current Fixed Asset Borrowing Base.

 

 

     “Fixed Asset Borrowing Base” means $25,000,000, which amount shall be reduced by
$892,857.15 on the first day of each Fiscal Quarter beginning on October 1, 2007; provided that if
(a) 80% of the net orderly liquidation value of the Loan Parties’ machinery and equipment
plus (b) 75% of the fair market value of the Loan Parties’ real property located in
Wickliffe, Ohio, Cuyahoga Heights, Ohio and Wapakoneta, Ohio each as determined by an appraisal
received by the Agent, is less than $25,000,000, the “Fixed Asset Borrowing Base” may be decreased
in the Agent’s sole and absolute discretion, but in no event to less than the applicable advance
rate set forth above multiplied by the appraised value of such assets.

     “Fixed Charge Condition Period” means the period commencing on the date that the
determination is made that the Fixed Charge Coverage Ratio Condition exists or, within the next
three (3) months, is reasonably likely to exist, until the date when the Domestic Borrower shall
have presented evidence to the Agent, satisfactory to the Agent in its sole discretion, that the
Fixed Charge Coverage Ratio Condition no longer exists and, within the next three (3) months, will
not be reasonably likely to exist.

     “Fixed Charge Coverage Ratio Condition” means any time that the Domestic Borrower’s
Fixed Charge Coverage Ratio (as defined in the Indenture) is less than 2.00 to 1.00, as calculated
in accordance with the terms and conditions of the Indenture.

     “Fixed Rate Advances” means Eurodollar Advances, Canadian Fixed Rate Advances, and/or
UK Fixed Rate Advances.

     “Fixed Rate Loans” means Eurodollar Loans, Canadian Fixed Rate Loans and/or UK Fixed
Rate Loans.

     “Fixture” has the meaning specified in the Security Agreement.

     “Floating Rate” means, for any day, a rate per annum equal to (a) the Alternate Base
Rate for such day plus (b) the Applicable Margin, in each case changing when and as the
Alternate Base Rate changes.

     “Floating Rate Advances” means Domestic Floating Rate Advances and/or Canadian
Floating Rate Advances.

     “Floating Rate Loans” means Domestic Floating Rate Loans and/or Canadian Floating Rate
Loans.

     “Foreign Collateral Documents” means, collectively, the documents granting a Lien upon
the Collateral of the Canadian Loan Parties or the UK Loan Parties as security for payment of the
Canadian Obligations or the UK Obligations, respectively.

     “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.

 

 

     “Funding Account” means a deposit account of (a) the Domestic Borrower maintained with
the Agent (b) the Canadian Borrower maintained with Canadian Correspondent Lender in Canada, or (c)
the UK Borrower maintained with UK Correspondent Lender in the UK, in which the Agent, the Canadian
Lenders, or the UK Lenders, as the case may be, are authorized by such Borrower to deposit the
proceeds of Loans.

     “GAAP” means U.S. generally accepted accounting principles as in effect from time to
time, applied in a manner consistent with that used in preparing the financial statements referred
to in Section 5.5.

     “Guaranteed Obligations” is defined in Section 15.1.

     “Guarantor” means each Loan Party (other than a Borrower) and any other Person who
becomes a party to the Guaranty pursuant to a Joinder Agreement, together with their successors and
assigns.

     “Guaranty” means Article XV of this Agreement and each separate guaranty, if
any, in form and substance satisfactory to the Agent, delivered by each Guarantor that is a Foreign
Subsidiary (which guaranty shall be governed by the laws of the country in which such Foreign
Subsidiary is located), in each case, as it may be amended or modified and in effect from time to
time.

     “ILS” means each of the “ILS” and “Integrated Logistics Solutions” Loan Parties.

     “Indebtedness” of a Person means such Person’s (a) obligations for borrowed money, (b)
obligations representing the deferred purchase price of Property or services (other than accounts
payable arising in the ordinary course of such Person’s business payable on terms customary in the
trade), (c) obligations, whether or not assumed, secured by Liens or payable out of the proceeds or
production from Property now or hereafter owned or acquired by such Person, (d) obligations which
are evidenced by notes, acceptances, or other instruments, (e) obligations of such Person to
purchase securities or other Property arising out of or in connection with the sale of the same or
substantially similar securities or Property or any other Off-Balance Sheet Liabilities, (f)
Capitalized Lease Obligations, (g) Contingent Obligations for which the underlying transaction
constitutes Indebtedness under this definition, (h) the maximum available stated amount of all
letters of credit or bankers’ acceptances created for the account of such Person and, without
duplication, all reimbursement obligations with respect to letters of credit, (i) any and all
obligations, contingent or otherwise, whether now existing or hereafter arising, under or in
connection with Rate Management Transactions, including, without limitation, Net Mark to Market
Exposure, and (j) obligations of such Person under any Sale and Leaseback Transaction.

     “Indenture” means that certain Indenture dated as of November 30, 2004, between the
Domestic Borrower, each of the guarantors party thereto, and Wells Fargo Bank, N.A., as Trustee,
pursuant to which the Senior Subordinated Notes were issued to the Senior Subordinated Noteholders,
as the same may, with the prior written consent of the Agent and the Required Lenders, be from time
to time amended, restated or otherwise modified.

 

 

     “Intellectual Property Rights” means, with respect to any Person, all of such Person’s
Patents, Copyrights, Trademarks, and Licenses all other rights under any of the foregoing, all
extensions, renewals, reissues, divisions, continuations and continuations-in-part of any of the
foregoing.

     “Intercompany Notes” is defined in Section 6.16.

     “Interest Period” means, with respect to a Fixed Rate Loan, a period of one, two,
three or six months commencing on a Business Day selected by the Domestic Borrower pursuant to this
Agreement. Such Interest Period shall end on the day which corresponds numerically to such date
one, two, three or six months thereafter, provided, however, that if there is no such numerically
corresponding day in such next, second, third or sixth succeeding month, such Interest Period shall
end on the last Business Day of such next, second, third or sixth succeeding month. If an Interest
Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on
the next succeeding Business Day, provided, however, that, if said next succeeding Business Day
falls in a new calendar month, such Interest Period shall end on the immediately preceding Business
Day.

     “Inventory” has the meaning specified in the Security Agreement.

     “Investment” of a Person means any (a) loan or advance, (b) extension of credit (other
than accounts receivable arising in the ordinary course of business on terms customary in the
trade), (c) contribution of capital by such Person, (d) stocks, bonds, mutual funds, partnership
interests, notes, debentures, securities or other Capital Stock owned by such Person, (e) any
certificate of deposit owned by such Person, and (f) structured notes, derivative financial
instruments and other similar instruments or contracts owned by such Person.

     “Joinder Agreement” is defined in Section 6.14(a).

     “Judgment Amount” is defined in Section 9.14.

     “LC Fee” is defined in Section 2.10(b).

     “LC Issuer” means (a) with respect to Domestic Facility LCs, Chase (or any subsidiary
or Affiliate of Chase designated by Chase) in its capacity as issuer of Domestic Facility LCs
hereunder, (b) with respect to Canadian Facility LCs, the Canadian Correspondent Lender (or any
subsidiary or Affiliate of the Canadian Correspondent Lender that is a Canadian Taxable Lender
designated by the Canadian Correspondent Lender) in its capacity as issuer of Canadian Facility LCs
hereunder, and (c) with respect to UK Facility LCs, the UK Correspondent Lender (or any subsidiary
or Affiliate of the UK Correspondent Lender designated by the UK Correspondent Lender) in its
capacity as issuer of UK Facility LCs hereunder.

     “LC Obligations” means the Canadian LC Obligations, the Domestic LC Obligations, and
the UK LC Obligations.

 

 

     “LC Payment Date” is defined in Section 2.1.2(d).

     “Lenders” means the lending institutions listed on the signature pages of this
Agreement and their respective successors and assigns.

     “Lending Installation” means, with respect to a Lender, any LC Issuer or the Agent,
the office, branch, subsidiary or Affiliate of such Lender, LC Issuer or the Agent listed on the
signature pages hereof or on a Schedule or otherwise selected by such Lender, any LC Issuer or the
Agent pursuant to Section 2.22, which, in the case of (i) the Canadian Lender, shall be
located in Canada or (ii) the UK Lender, shall be located in the UK.

     “Letter of Credit” of a Person means a standby or commercial letter of credit or
similar instrument which is issued upon the application of such Person or upon which such Person is
an account party or for which such Person is in any way liable.

     “Lien” means any lien (statutory or other), mortgage, security interest, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever (including, without
limitation, the interest of a vendor or lessor under any conditional sale, Capitalized Lease or
other title retention agreement).

     “Licenses” has the meaning given to such term in the Security Agreement.

     “Loans” means, with respect to a Lender, such Lender’s loans made pursuant to
Article II (or any conversion or continuation thereof), including Non-Ratable Loans,
Overadvances, Protective Advances and UK Overdraft Advances.

     “Loan Documents” means this Agreement, the Revolving Notes, the Facility LC
Applications, the Collateral Documents, the Guaranty, the UK Overdraft Agreement, all other
agreements, instruments, documents and certificates identified in Section 4.1 executed and
delivered to, or in favor of, Agent or any Lenders, and all other pledges, powers of attorney,
consents, assignments, contracts, notices, letter of credit agreements and all other written matter
whether heretofore, now or hereafter executed by or on behalf of any Loan Party, and delivered to
the Agent or any Lender in connection with the Agreement or the transactions contemplated thereby.
Any reference in the Agreement or any other Loan Document to a Loan Document shall include all
appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other
modifications thereto, and shall refer to the Agreement or such Loan Document as the same may be in
effect at any and all times such reference becomes operative.

     “Loan Parties” means the Domestic Loan Parties, the Canadian Loan Parties, the UK Loan
Parties, and any other Person who becomes a party to this Agreement pursuant to a Joinder
Agreement, and “Loan Party” means any one of them.

     “Locked Box” is defined in Section 16.1.

     “Loss” is defined in Section 9.14.

 

 

     “Margin Stock” is defined in Section 5.13.

     “Material Adverse Effect” means a material adverse effect on (a) the business,
Property, condition (financial or otherwise), or results of operations of the Domestic Borrower and
its Subsidiaries taken as a whole, (b) the ability of any Loan Party to perform its material
obligations under the Loan Documents to which it is a party, (c) a material portion of the
Collateral, or the Liens (on the Collateral for the benefit of the Applicable Agent and Lenders) or
the priority of such Liens or (d) the validity or enforceability of any of the Loan Documents or
the rights or remedies of the Agent, the LC Issuer or the Lenders thereunder.

     “Material Indebtedness” means Indebtedness in an outstanding principal amount of
$5,000,000 or more in the aggregate (or the equivalent thereof in any currency other than Dollars).

     “Material Indebtedness Agreement” means any agreement under which any Material
Indebtedness was created or is governed or which provides for the incurrence of Indebtedness in an
amount which would constitute Material Indebtedness (whether or not an amount of Indebtedness
constituting Material Indebtedness is outstanding thereunder).

     “Maximum Borrowing Amount” means, at any time, an amount equal to the lesser of (i)
the Aggregate Commitment minus all Reserves then in effect, or (ii) the Aggregate Borrowing
Base.

     “Modify” and “Modification” are defined in Section 2.1.2(a).

     “Moody’s” means Moody’s Investors Service, Inc.

     “Mortgages” means any mortgage, deed of trust or other agreement which conveys or
evidences a Lien, for the benefit of the Applicable Agent and Lenders, on real Property of the Loan
Parties, including any amendment, modification or supplement thereto.

     “Multiemployer Plan” means a Plan maintained pursuant to a collective bargaining
agreement or any other arrangement to which a Loan Party or any member of a Controlled Group is a
party to which more than one employer is obligated to make contributions.

     “Net Cash Proceeds” means, if in connection with an asset disposition by any Domestic
Loan Party, cash proceeds net of (i) commissions and other reasonable and customary transaction
costs, fees and expenses properly attributable to such transaction and payable by such Loan Party
in connection therewith (in each case, paid to non-Affiliates), (ii) transfer taxes, (iii) amounts
payable to holders of Permitted Liens on such asset), if any, and (iv) an appropriate reserve for
income taxes in accordance with GAAP established in connection therewith or, if in connection with
an equity issuance, cash proceeds net of underwriting discounts and commissions and other
reasonable costs paid to non-Affiliates in connection therewith.

 

 

     “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the
excess (if any) of all unrealized losses over all unrealized profits of such Person arising from
Rate Management Transactions. As used in this definition, “unrealized losses” means the fair
market value of the cost to such Person of replacing such Rate Management Transaction as of the
date of determination (assuming the Rate Management Transaction were to be terminated as of that
date), and “unrealized profits” means the fair market value of the gain to such Person of replacing
such Rate Management Transaction as of the date of determination (assuming such Rate Management
Transaction were to be terminated as of that date).

     “Non-Consenting Lender” is defined in Section 8.3(d).

     “Non-Participating Lender” is defined in Section 2.2.

     “Non-Paying Guarantor” is defined in Section 15.11.

     “Non-Ratable Loan” and “Non-Ratable Loans” are defined in Section
2.1.3.

     “Non-U.S. Lender” is defined in Section 3.5(d).

     “Obligations” means all unpaid principal of and accrued and unpaid interest on the
Loans, all LC Obligations, all accrued and unpaid fees and all expenses, reimbursements,
indemnities and other obligations of the Loan Parties to the Lenders or to any Lender, the Agent,
the Canadian Correspondent Lender, the UK Correspondent Lender, the LC Issuer or any indemnified
party arising under the Loan Documents.

     “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any
indebtedness, liability or obligation under any Sale and Leaseback Transaction which is not a
Capitalized Lease, (c) any indebtedness, liability or obligation under any so-called “synthetic
lease” transaction entered into by such Person, or (d) any indebtedness, liability or obligation
arising with respect to any other transaction which is the functional equivalent of or takes the
place of borrowing but which does not constitute a liability on the balance sheets of such Person,
but excluding (d) Operating Leases from this clause.

     “Operating Lease” of a Person means any lease of Property (other than a Capitalized
Lease) by such Person as lessee which has an original term (including any required renewals and any
renewals effective at the option of the lessor) of one year or more.

     “Operating Lease Obligations” means, as at any date of determination, the amount
obtained by aggregating the present values, determined in the case of each particular Operating
Lease by applying a discount rate (which discount rate shall equal the discount rate which would be
applied under GAAP if such Operating Lease were a Capitalized Lease) from the date on which each
fixed lease payment is due under such Operating Lease to such date of determination, of all fixed
lease payments due under all Operating Leases of the Domestic Borrower and its Subsidiaries.

 

 

     “Orderly Liquidation Percentage” means, with respect to Inventory of any Person, (a)
the net recovery dollars of such Inventory divided by (b) the gross value of such
Inventory, determined in a manner acceptable to the Agent by an appraiser acceptable to the Agent,
net of all costs of liquidation thereof. As of the Effective Date, the Orderly Liquidation
Percentage will be determined as set forth in Exhibit J, and such percentage will
thereafter be computed in a manner reasonably consistent with the methodology set forth on
Exhibit J.

     “Other Taxes” is defined in Section 3.5(b).

     “Overadvances” is defined in Section 2.1.4(b).

     “Parent” means Park-Ohio Holdings Corp., an Ohio corporation.

     “Participants” is defined in Section 12.2(a).

     “Participating Lender” is defined in Section 2.2.

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

     “Patents” has the meaning given to such term in the Security Agreement.

     “Paying Guarantor” is defined in Section 15.11.

     “Payment Date” means (a) with respect to interest payments due on any Floating Rate
Loan, the first day of each Fiscal Month and the Facility Termination Date, (b) with respect to
interest payments due on any Fixed Rate Loan, (i) the last day of the applicable Interest Period,
and (ii) in the case of any Interest Period in excess of three months, the day which is three
months after the first day of such Interest Period, and (iii) the Facility Termination Date, and
(c) with respect to any payment of LC Fees or Unused Commitment Fees, the first day of each Fiscal
Quarter and the Facility Termination Date.

     “PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto.

     “Permitted Discretion” means a determination made in good faith and in the exercise of
reasonable (from the perspective of a secured asset-based lender) credit judgment.

     “Permitted Holders” means (a) Edward F. Crawford and Mathew V. Crawford, either of
their spouses, lineal descendants, or the probate estate of any such person, (b) any trust, so long
as one or more of the foregoing is the beneficiary thereof, and (c) any other corporation,
partnership, limited liability company, or other similar entity, all of the shareholders, partners,
members, or owners of which are any of the foregoing.

     “Permitted Liens” is defined in Section 6.21.

 

 

     “Person” means any natural person, corporation, firm, joint venture, partnership,
limited liability company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or instrumentality thereof.

     “Plan” means an employee pension benefit plan which is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Code as to which a Loan Party or
any member of a Controlled Group may have any liability.

     “Pledge Agreement” means each of the Pledge Agreements executed and delivered to the
Agent, for the benefit of the Agent and the Lenders, by the Parent or a Loan Party, on or after the
Closing Date, as the same may be amended, restated or otherwise modified from time to time.

     “Pounds Sterling” and “£” means the lawful currency of the United Kingdom.

     “Pricing Schedule” means the Schedule attached hereto identified as such.

     “Prime Rate” means a rate per annum equal to the prime rate of interest announced from
time to time by Chase or its parent (which is not necessarily the lowest rate charged to any
customer), changing when and as said prime rate changes.

     “Projections” is defined in Section 6.1(d).

     “Property” of a Person means any and all property, whether real, personal, tangible,
intangible, or mixed, of such Person, or other assets owned, leased or operated by such Person.

     “Proposed Change” is defined in Section 8.3(d).

     “Pro Rata Share” means, (a) as to any Lender with respect to the Aggregate Commitment
or Aggregate Credit Exposure, a fraction expressed as a percentage the numerator of which is such
Lender’s Domestic Commitment and the denominator of which is the Aggregate Commitment, (b) as to
any Canadian Lender with respect to the Aggregate Canadian Commitment, a fraction expressed as a
percentage the numerator of which is such Lender’s Canadian Commitment and the denominator of which
is the Aggregate Canadian Commitment, and (c) as to any UK Lender with respect to the Aggregate UK
Commitment, a fraction expressed as a percentage the numerator of which is such Lender’s UK
Commitment and the denominator of which is the Aggregate UK Commitment.

     “Protective Advances” is defined in Section 2.1.4.

     “Purchasers” is defined in Section 12.3(a).

     “Rate Management Obligations” of a Person means any and all obligations of such
Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or
acquired (including all renewals, extensions and modifications thereof and substitutions therefor),
under (a) any and all Rate Management Transactions, and (b) any and all

 

 

cancellations, buy backs, reversals, terminations or assignments of any Rate Management
Transactions.

     “Rate Management Transaction” means any transaction (including an agreement with
respect thereto) now existing or hereafter entered into by any Loan Party which is a rate swap,
basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index
swap, equity or equity index option, bond option, interest rate option, foreign exchange
transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency
swap transaction, cross-currency rate swap transaction, currency option or any other similar
transaction (including any option with respect to any of these transactions) or any combination
thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity
prices or other financial measures.

     “Register” is defined in Section 12.3(d).

     “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor thereto or other regulation or official
interpretation of said Board of Governors relating to reserve requirements applicable to member
banks of the Federal Reserve System.

     “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve
System as from time to time in effect and any successor or other regulation or official
interpretation of said Board of Governors relating to the extension of credit by banks for the
purpose of purchasing or carrying margin stocks applicable to member banks of the Federal Reserve
System.

     “Reimbursement Obligations” means, at any time, the aggregate of all obligations of
the Domestic Borrower, the Canadian Borrower, or the UK Borrower, as the case may be, then
outstanding under Section 2.1.2 to reimburse the applicable LC Issuer for amounts paid by
such LC Issuer in respect of any one or more drawings under Domestic Facility LCs, Canadian
Facility LCs or UK Facility LCs, respectively.

     “Reportable Event” means a reportable event as defined in Section 4043 of ERISA and
the regulations issued under such section, with respect to a Plan, excluding, however, such events
as to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that it
be notified within thirty days of the occurrence of such event, provided however, that a failure to
meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA shall be a
Reportable Event regardless of the issuance of any such waiver of the notice requirement in
accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

     “Reports” is defined in Section 9.6(a)(i).

     “Required Lenders” means the Domestic Lenders in the aggregate having at least 66 2/3%
of the Aggregate Commitment or, if the Aggregate Commitment has been terminated, the Domestic
Lenders in the aggregate holding at least 66 2/3% of the Aggregate Credit Exposure.

 

 

     “Reserve Requirement” means, with respect to an Interest Period, the maximum aggregate
reserve requirement (including all basic, supplemental, marginal and other reserves) which is
imposed under Regulation D on Eurocurrency liabilities.

     “Reserved Commitment Amount” is defined in Section 2.1.1(a).

     “Reserves” means any and all reserves which the Agent deems necessary, without
duplication of any other reserve or adjustment made under the definition of Eligible Accounts or
Eligible Inventory, in its Permitted Discretion, to maintain (including, without limitation, the
Reserved Commitment Amount, reserves for accrued and unpaid interest on the Secured Obligations,
Banking Services Reserves, reserves for rent at locations leased by any Loan Party and for
consignee’s, warehousemen’s and bailee’s charges, reserves for dilution of Accounts, reserves for
Inventory shrinkage, reserves for customs charges and shipping charges related to any Inventory in
transit, reserves for Rate Management Transactions, and reserves for taxes, fees, assessments, and
other governmental charges) with respect to the Collateral or any Loan Party. The parties agree
that the Reserves related to the UK Borrowing Base shall include, without limitation, (a) a Reserve
for each UK Borrower in an amount equal to the least of (i) the gross book value of the UK accounts
payable of such UK Borrower, (ii) twenty percent (20%) of the gross book value of each such UK
Borrower’s Accounts and Inventory, and (iii) £600,000, and (b) a Reserve equal to the UK Overdraft
Commitment.

     “Revolving Loans” means the Domestic Revolving Loans, the Canadian Revolving Loans
and/or the UK Fixed Rate Loans, as the context may require.

     “Revolving Notes” means the Domestic Revolving Notes, the Canadian Revolving Notes,
and the UK Revolving Notes.

     “Risk-Based Capital Guidelines” is defined in Section 3.2.

     “S&P” means Standard and Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

     “Sale and Leaseback Transaction” means any sale or other transfer of Property by any
Person with the intent to lease such Property as lessee.

     “Schedule” refers to a specific schedule to this Agreement, unless another document is
specifically referenced.

     “Section” means a numbered section of this Agreement, unless another document is
specifically referenced.

     “Secured Foreign Obligations” means, collectively, the Canadian Obligations and the UK
Obligations.

 

 

     “Secured Obligations” means, collectively, (i) the Obligations; (ii) all Banking
Services Obligations; and (iii) all Rate Management Obligations owing to one or more Lenders, the
LC Issuer or any of their respective Affiliates, provided that, at or prior to the time that any
Rate Management Transaction relating to such Rate Management Obligation is executed, the Lender
party thereto (if other than Chase) shall have delivered written notice to the Agent that such a
Rate Management Transaction has been entered into and that it constitutes a Secured Obligation
entitled to the benefits of the Collateral Documents.

     “Security Agreement” means that certain Security Agreement, dated as of July 30, 2003
between the Domestic Loan Parties and the Agent, for the benefit of the Agent and the Lenders, the
LC Issuer and any of their respective Affiliates, as applicable, and any other pledge or security
agreement entered into after the Closing Date by any other Domestic Loan Party (as required by this
Agreement or any other Loan Document), or any other Person, as the same may be amended, restated or
otherwise modified from time to time.

     “Senior Subordinated Noteholder” shall mean the holder or purchaser of any Note (as
defined in the Indenture) under the Indenture.

     “Senior Subordinated Notes” shall mean the Notes (as defined in the Indenture) issued
pursuant to the Indenture.

     “Settlement” is defined in Section 2.19.

     “Settlement Date” is defined in Section 2.9(a).

     “Single Employer Plan” means a Plan maintained by a Loan Party or any member of a
Controlled Group for employees of such Loan Party or any member of a Controlled Group.

     “Subordinated Indebtedness” of a Person means any Indebtedness of such Person the
payment of which is subordinated to payment of the Guaranteed Obligations to the written
satisfaction of the Agent.

     “Subsidiary” of a Person means any corporation, partnership, limited liability
company, association, joint venture or similar business organization more than 50% of the
outstanding Capital Stock having ordinary voting power of which shall at the time be owned or
controlled by such Person. Unless otherwise expressly provided, all references herein to a
“Subsidiary” shall mean a Subsidiary of the Domestic Borrower.

     “Substantial Portion” means, with respect to the Property of the Domestic Borrower and
its Subsidiaries, Property which represents more than 10% of the consolidated assets of the
Domestic Borrower and its Subsidiaries or property which is responsible for more than 10% of the
consolidated net sales or of the consolidated net income of the Domestic Borrower and its
Subsidiaries, in each case, as would be shown in the consolidated financial statements of the
Domestic Borrower and its Subsidiaries as at the beginning of the twelve-month period ending with
the month in which such determination is made (or if financial statements have not been

 

 

delivered hereunder for that month which begins the twelve-month period, then the financial
statements delivered hereunder for the quarter ending immediately prior to that month).

     “Supporting Letter of Credit” is defined in Section 2.1.2(l).

     “Taxes” means any and all present or future taxes, duties, levies, imposts,
deductions, charges or withholdings, and any and all liabilities with respect to the foregoing, but
excluding Excluded Taxes and Other Taxes.

     “Tax Credit” means a credit against, relief or remission for, or repayment of any
Tax.

     “Tax Deduction” means a deduction or withholding for or on account of Tax from a
payment in respect of an Advance.

     “Tax Payment” means either the increase in a payment made by a Borrower to a Lender
under Section 3.5(a) or (c).

     “Trademarks” shall have the meaning given to such term in the Security Agreement.

     “Tranche B Facility” means $25,000,000.

     “Transferee” is defined in Section 12.4.

     “Type” means, with respect to any Advance, its nature as a Floating Rate Advance or
Fixed Rate Advance, and with respect to any Loan, its nature as a Floating Rate Loan or a Fixed
Rate Loan.

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
Ohio or any other state the laws of which are required to be applied in connection with the issue
of perfection of security interests, and, with respect to Canada, the Personal Property Security
Act in effect from time to time in the Province of Ontario or its equivalent in any other province
in which security is being taken and a security interest is being registered.

     “UK” means the United Kingdom.

     “UK Advance” means a borrowing hereunder (a) made by some or all of the UK Lenders on
the same Borrowing Date or (b) continued by the UK Lenders on the same date of continuation,
consisting of the aggregate amount of the UK Fixed Rate Loans of the same Type for the same
Interest Period. The term “UK Advance” shall include Protective Advances made by the UK
Correspondent Lender and UK Overdraft Advances.

     “UK Affiliate” means a financial institution organized under the laws of England or
Wales that is affiliated with a Lender.

     “UK Availability” means, at any time, an amount equal to (a) the UK Maximum Borrowing
Amount, minus (b) the Aggregate UK Exposure.

 

 

     “UK Borrower” means, collectively or individually, as the context may require, Ajax
Tocco International Limited and Integrated Logistics Solutions Limited.

     “UK Borrowing Base” means, at any time, with respect to the UK Loan Parties, the sum
of (a) up to 85% of such Loan Parties’ Eligible Accounts at such time, plus (b) the least
of (i) up to 65% of such Loan Parties’ Eligible Inventory, valued at the lower of cost or market
value, determined on a first-in-first-out basis, at such time, (ii) (A) 85% multiplied by
(B) the Orderly Liquidation Percentage multiplied by (C) the value of such Loan Parties’
Inventory, or (iii) $5,000,000, minus (c) Reserves related to the UK Loan Parties. The UK
Borrowing Base shall be calculated and reported in Dollars. The Agent may, in its Permitted
Discretion, reduce the advance rates set forth above or reduce one or more of the other elements
used in computing the UK Borrowing Base.

     “UK Commitment” means, for each UK Lender, the obligation of such Lender to make UK
Fixed Rate Loans, to make UK Overdraft Advances, and to participate in UK LC Obligations in an
aggregate amount not exceeding the amount set forth in the Commitment Schedule or as set forth in
any Assignment Agreement that has become effective pursuant to Section 12.3(a), as such amount may
be modified from time to time pursuant to the terms hereof.

     “UK Correspondent Lender” means J.P. Morgan Europe Limited, any subsidiary or
Affiliate of the UK Correspondent Lender designated by the UK Correspondent Lender, or such other
financial institution organized under the laws of United Kingdom as may be designated by the Agent
from time to time.

     “UK Derived Fixed Rate” means a rate per annum equal to the UK Domestic Rate
plus the Applicable Margin related to Eurodollar Loans plus the Associated Cost
Rate.

     “UK Domestic Rate” means, with respect to a UK Fixed Rate Loan for the relevant
Interest Period, the applicable British Bankers’ Association LIBOR rate for deposits in Pounds
Sterling as reported by any generally recognized financial information service as of 11:00 a.m.
(London time) on the first day of such Interest Period, and having a maturity equal to such
Interest Period, provided that, if no such British Bankers’ Association LIBOR rate is available to
the Agent, the applicable the UK Domestic Rate for the relevant Interest Period shall instead be
the rate determined by UK Correspondent Lender to be the rate at which Chase or one of its
Affiliate banks offers to place deposits in Pounds Sterling with first-class banks in the interbank
market at approximately 12:00 noon (London time) on the first day of such Interest Period, in the
approximate amount of the relevant UK Fixed Rate Loan and having a maturity equal to such Interest
Period.

     “UK Exposure” means, with respect to any UK Lender, at any time, the sum of the
Dolllar Equivalent of the aggregate principal amount of its UK Fixed Rate Loans outstanding at such
time, plus an amount equal to its Pro Rata Share of the Dollar Equivalent of the UK
Overdraft Commitment, plus an amount equal to its Pro Rata Share of the Dollar Equivalent
of the UK LC Obligations outstanding at such time, plus an amount equal to its Pro Rata
Share of

 

 

the Dollar Equivalent of the aggregate principal amount of Protective Advances outstanding
made by the UK Correspondent Lender and outstanding at such time.

     “UK Facility LCs” means Facility LCs and UK Letter Guarantees issued upon the
application of any UK Loan Party.

     “UK Fixed Rate Advance” means an Advance which, except as provided in Section
2.12, bears interest at the UK Derived Fixed Rate.

     “UK Fixed Rate Loan” means a Loan which, except as provided in Section 2.12,
bears interest at the UK Derived Fixed Rate.

     “UK LC Obligations” means, at any time, with respect to UK Facility LCs, the sum,
without duplication, of (a) the aggregate undrawn stated amount under all UK Facility LCs
outstanding at such time plus (b) the aggregate unpaid amount at such time of all
Reimbursement Obligations related to UK Facility LCs.

     “UK Lenders” means, collectively (a) UK Correspondent Lender and Bank of America, N.A.
(each, a “UK Designated Bank”), and (b) the UK Affiliate of a UK Designated Bank; provided
that (i) any UK Fixed Rate Loan made by such UK Lender shall be actually made, issued or
participated in, as the case may be, by its UK Affiliate, and (ii) the UK Commitment for such UK
Lender shall each be deemed to apply to it and its UK Affiliate collectively.

     “UK Letter Guarantees” means letter guarantees issued on the application of a UK Loan
Party pursuant to Section 2.1.2 hereof.

     “UK Letters of Credit” means Letters of Credit issued on the application of a UK Loan
Party.

     “UK Loan Parties” means the UK Borrower and the UK Subsidiaries, and “UK Loan Party”
means any one of them.

     “UK Maximum Borrowing Amount” means, at any time, an amount equal to the lesser of (i)
the Aggregate UK Commitment minus all Reserves then in effect related to the UK Loan
Parties, or (ii) the UK Borrowing Base.

     “UK Non-Bank Lender” means:

	 	(i)	 	in the case of a Lender that is a party to this Agreement on the Effective
Date, a Lender named as such on the signature pages of this Agreement; and
	 
	 	(ii)	 	in the case of a Lender that becomes a party to this Agreement after the
Effective Date, a Lender that gives a UK Tax Confirmation in the Assignment Agreement
that it executed on becoming a party.

 

 

     “UK Obligations” means all unpaid principal and accrued and unpaid interest on the UK
Fixed Rate Loans, the UK Overdraft Advances, all UK LC Obligations, all Protective Advances made by
the UK Correspondent Lender, all Rate Management Obligations of the UK Loan Parties, all accrued
and unpaid fees and all expenses, reimbursements, indemnities, and other obligations of the UK Loan
Parties to the UK Lenders or to any UK Lender, the UK Correspondent Lender, the applicable LC
Issuer or any indemnified party (with respect to the UK Fixed Rate Loans) arising under the Loan
Documents.

     “UK Overdraft Advance” means a borrowing under the UK Overdraft Agreement.

     “UK Overdraft Agreement” means the agreement dated as of the Effective Date setting
forth the terms of the UK Overdraft Facility, as the same may be amended or modified and in effect
from time to time.

     “UK Overdraft Commitment” means the obligation of the UK Lenders to permit the UK
Borrower to maintain a debit balance on its account with the UK Correspondent Lender pursuant to
the terms of the UK Overdraft Agreement, which UK Overdraft Commitment shall not exceed £200,000,
permitting each UK Borrower to maintain a debit balance of up to £100,000, but if and only to the
extent the UK Overdraft Facility is actually available to the UK Borrowers.

     “UK Overdraft Facility” means the overdraft facility made available by the UK Lenders
to the UK Borrower pursuant to the terms of the UK Overdraft Agreement.

     “UK Qualifying Lender” means a Person that is beneficially entitled to interest
payable to that Lender in respect of an Advance and is:

	 	(i)	 	a Lender:

	 	(A)	 	that is a bank (as defined for the purpose of section 349 of
the UK Taxes Act) making an Advance; or
	 
	 	(B)	 	in respect of an Advance made by a Person that was a bank (as
defined for the purpose of section 349 of the UK Taxes Act) at the time that
that Advance was made,

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

	 	(ii)	 	a Lender that is:

	 	(A)	 	a company resident in the United Kingdom for United Kingdom tax
purposes;
	 
	 	(B)	 	a partnership each member of which is a company resident in the
United Kingdom for United Kingdom tax purposes; or

 

 

	 	(C)	 	a company not so resident in the United Kingdom that carries on
a trade in the United Kingdom through a branch or agency and that brings into
account interest payable in respect of that Advance in computing its chargeable
profits (within the meaning given by section 11(2) of the UK Taxes Act); or

	 	(iii)	 	a UK Treaty Lender.

     “UK Revolving Note” means any UK Revolving Note executed and delivered pursuant to
Section 2.1.1 hereof.

     “UK Subsidiary” means any Subsidiary of the Domestic Borrower (other than the UK
Borrowers) or the UK Borrowers, that is organized under the laws of England or Wales and that is
either party to this Agreement on the date hereof or is added as a party to this Agreement pursuant
to a Joinder Agreement.

     “UK Tax Confirmation” means a confirmation by a Lender that the Person beneficially
entitled to interest payable to that Lender in respect of an Advance is either:

	 	(i)	 	a company resident in the United Kingdom, or a partnership each member of which
is a company resident in the United Kingdom, for United Kingdom tax purposes; or
	 
	 	(ii)	 	a company not so resident in the United Kingdom that carries on a trade in the
United Kingdom through a branch or agency and that interest payable in respect of that
Advance falls to be brought into account in computing the chargeable profits of that
company for the purposes of section 11(2) of the UK Taxes Act.

     “UK Taxes Act” means the Income and Corporation Taxes Act 1988, as amended.

     “UK Treaty Lender” means a Lender that:

	 	(i)	 	is treated as a resident of a UK Treaty State for the purposes of the relevant
UK Treaty; and
	 
	 	(ii)	 	does not carry on a business in the United Kingdom through a permanent
establishment with which that Lender’s participation in the Loans is effectively
connected.

     “UK Treaty State” means a jurisdiction having a double taxation agreement (a “UK
Treaty”) with the United Kingdom that makes provision for full or partial exemption from tax
imposed by the United Kingdom on interest.

     “Unfunded Liabilities” means the amount (if any) by which the present value of all
vested and unvested accrued benefits under all Single Employer Plans exceeds the fair market value
of all such Plan assets allocable to such benefits, all determined as of the then most recent

 

 

valuation date for such Plans using PBGC actuarial assumptions for single employer plan
terminations.

     “Unliquidated Secured Obligations” means, at any time, any Secured Obligations (or
portion thereof) that is contingent in nature or unliquidated at such time, including any Secured
Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter
of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in
nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing
types of obligations.

     “Unmatured Default” means an event which but for the lapse of time or the giving of
notice, or both, would constitute a Default.

     “Unused Commitment Fee” is defined in Section 2.10(a). 

     “U.S.” means the United States of America.

     “Wholly-Owned Subsidiary” of a Person means, any Subsidiary all of the outstanding
Capital Stock of which shall at the time be owned or controlled, directly or indirectly, by such
Person or one or more Wholly-Owned Subsidiaries of such Person, or by such Person and one or more
Wholly-Owned Subsidiaries of such Person.

     The foregoing definitions shall be equally applicable to both the singular and plural forms of
the defined terms.

ARTICLE II

THE FACILITY

     2.1. The Facility. Each Lender severally agrees, on the terms and conditions set
forth in this Agreement, to (a) make Loans to the Borrowers as set forth below and (b) participate
in Facility LCs, provided that, after giving effect to the making of each such Advance and the
issuance of each such Facility LC, such Lender’s Credit Exposure shall not exceed its aggregate
Commitment; provided further, that the Aggregate Credit Exposure shall not exceed the Aggregate
Commitment. The LC Issuer will issue Facility LCs hereunder on the terms and conditions set forth
in Section 2.1.2. The Facility shall be composed of Domestic Revolving Loans, Canadian
Revolving Loans, UK Fixed Rate Loans, Non-Ratable Loans, Protective Advances, Overadvances,
Facility LCs, and UK Overdraft Advances as set forth below:

          2.1.1. Revolving Loans.

          (a) Domestic Amount. From and including the Effective Date and prior to the Facility
Termination Date, subject to the terms and provisions of Section 2.24, each Domestic Lender
severally agrees, on the terms and conditions set forth in this Agreement, to make revolving loans
(the “Domestic Revolving Loans”) to, and participate in Domestic Facility LCs issued as set
forth in Section 2.1.2 below on behalf of, the Domestic Borrower, in aggregate
amounts not to exceed such Lender’s Pro Rata Share of the Aggregate Commitment. If any

 

 

Advance to
the Domestic Borrower, when aggregated with all Advances to the Domestic Borrower, would exceed the
Availability or the Domestic Availability, the Domestic Lenders will refuse to make or may
otherwise restrict the making of Domestic Revolving Loans or the issuance of Domestic Facility LCs
as the Domestic Lenders determine until such excess has been eliminated, subject to the Agent’s
authority, in its sole discretion, to make Protective Advances and Overadvances pursuant to the
terms of Section 2.1.4. The Domestic Revolving Loans may consist of Domestic Floating Rate
Advances or Eurodollar Advances, or a combination thereof, selected by the Domestic Borrower in
accordance with Sections 2.1.1(d) and 2.7. Subject to the terms of this Agreement, the
Domestic Borrower may borrow, repay and reborrow Domestic Revolving Loans any time prior to the
Facility Termination Date. The Domestic Commitments to extend credit hereunder shall expire on the
Facility Termination Date. In connection with the Domestic Revolving Loans, the Domestic Borrower
will be deemed to have borrowed (i) the Tranche B Facility and then (ii) the Fixed Asset Advance
before any other borrowings.

          Proceeds of Domestic Revolving Loans will be available for any use permitted under the
applicable provisions of Section 6.2, provided that, in the event that, as contemplated by
Section 2.15(b), the Domestic Borrower prepays Revolving Loans from the proceeds of an
asset disposition hereunder, then an amount of the Aggregate Commitment, as specified by the
Domestic Borrower pursuant to the next sentence, equal to the amount of such prepayment (the
“Reserved Commitment Amount”) shall be reserved and will not be available for borrowings
except and to the extent that the proceeds of such borrowings are to be applied to make
reinvestments permitted under Section 2.15(b). The Domestic Borrower agrees to advise the
Agent at the time it requests any Advance whether it is utilizing any Reserved Commitment Amount,
identifying the amount of such Advance that is to constitute such utilization, the reinvestments in
respect of which the proceeds of such Advance are to be applied and the reduced Reserved Commitment
Amount to be in effect after giving effect to such Advance

          (b) Canadian Amount. From and including the Effective Date and prior to the Facility
Termination Date, subject to the terms and provisions of Section 2.24, each Canadian Lender
severally agrees, on the terms and conditions set forth in this Agreement, to make revolving loans
(the “Canadian Revolving Loans”) to, and participate in Canadian Facility LCs issued as set
forth in Section 2.1.2 below on behalf of, the Canadian Borrower, in aggregate amounts not
to exceed such Lender’s Pro Rata Share of the Aggregate Canadian Commitment. If any Canadian
Advance, when aggregated with all Canadian Advances to the Canadian Borrower would exceed the
Availability or the Canadian Availability, the Canadian Lenders will refuse to make or may
otherwise restrict the making of Canadian Revolving Loans as the Canadian Lenders determine until
such excess has been eliminated, subject to the Agent’s authority, in its sole discretion, to
direct the Canadian Correspondent Lender to make Protective Advances pursuant to the terms of
Section 2.1.4. The Canadian Revolving Loans may consist of Canadian Floating Rate Advances
or Canadian Fixed Rate Advances, or a combination thereof, selected by the Domestic Borrower in
accordance with Sections 2.1.1(d) and 2.7. Subject to the terms of this Agreement, the
Canadian Borrower may borrow, repay and reborrow Canadian Revolving Loans any time prior to the
Facility Termination Date. The Canadian Commitments to extend credit hereunder shall expire on the
Facility Termination Date. All Canadian Revolving Loans will be funded in Canadian Dollars. The
Canadian Advances made and Canadian Facility

 

 

LCs issued pursuant to this Section 2.1.1(b) are subject to the risk participation
provisions set forth in Section 2.2.

          (c) UK Amount. From and including the Effective Date and prior to the Facility
Termination Date, subject to the terms and provisions of Section 2.24, the UK Lenders
agree, on the terms and conditions set forth in this Agreement, to make fixed rate loans (the
“UK Fixed Rate Loans”) to, and participate in UK Facility LCs issued as set forth in
Section 2.1.2 below on behalf of, the UK Borrower, in aggregate amounts not to exceed such
Lender’s Pro Rata Share of the Aggregate UK Commitment. If any requested UK Fixed Rate Advance to
the UK Borrower would, when aggregated with all outstanding UK Fixed Rate Advances, exceed the
Availability or the UK Availability, the UK Lenders will refuse to make or may otherwise restrict
the making of UK Fixed Rate Loans as the UK Lenders determine until such excess has been
eliminated, subject to the Agent’s authority, in its sole discretion, to make Protective Advances
pursuant to the terms of Section 2.1.4. The UK Fixed Rate Advances may be selected by the
Domestic Borrower in accordance with Sections 2.1.1(d) and 2.7. Subject to the terms of
this Agreement, the UK Borrower may borrow, repay and reborrow UK Fixed Rate Loans any time prior
to the Facility Termination Date. The UK Fixed Rate Commitments to extend credit hereunder shall
expire on the Facility Termination Date. All UK Fixed Rate Loans will be funded in Pounds
Sterling. The UK Advances made and UK Facility LCs issued pursuant to this Section
2.1.1(c) are subject to the risk participation provisions set forth in Section 2.2.

          (d) Borrowing Procedures. The Domestic Borrower shall select the Type of Advance and,
in the case of each Fixed Rate Advance, the Interest Period applicable thereto, from time to time.
The Domestic Borrower shall give the Agent irrevocable notice (a “Borrowing Notice”) (or in
the case of each UK Fixed Rate Advance, to the UK Correspondent Lender with a copy to the Agent)
not later than 10:00 a.m. (Chicago time) on the Borrowing Date of each Floating Rate Advance, and
not later than 10:00 a.m. (Chicago time) (London time with respect to each UK Fixed Rate Advance) 3
Business Days before the Borrowing Date for each Fixed Rate Advance, specifying (in the form of
Exhibit A): (1) the Borrower, (2) the Borrowing Date, which shall be a Business Day, of
such Advance, (3) the aggregate amount of such Advance, (4) the Type of Advance selected; provided
that, if the Domestic Borrower fails to specify the Type of Advance requested, such request (except
in the case of a UK Fixed Rate Advance) shall be deemed a request for a Floating Rate Advance, and
(5) the duration of the Interest Period if the Type of Advance requested is a Fixed Rate Advance,
provided that, if the Domestic Borrower fails to select the duration of the Interest Period for the
requested Fixed Rate Advance, the Domestic Borrower shall be deemed to have requested that such
Fixed Rate Advance be made with an Interest Period of one month. Notwithstanding anything in this
Agreement to the contrary, the UK Lenders shall not make Loans to the UK Borrower based on the
Floating Rate other than with respect to UK Overdraft Advances. Notwithstanding the foregoing or
anything else in this Agreement to the contrary, (i) the Canadian Borrowers shall not request
Canadian Revolving Loans until such time as no Domestic Availability exists, (ii) the UK Borrowers
shall not request UK Fixed Rate Loans until such time as no Domestic Availability or Canadian
Availability exists, (iii) the UK Borrowers may request UK Facility LCs and UK Overdraft Advances
at any time and the Canadian Borrower may request Canadian LCs at any time, and (iv) to the extent
that the Canadian Lenders and UK Lenders are unable to make or issue Canadian Revolving Loans,
Canadian Facility LCs, UK Fixed Rate Loans, or UK

 

 

Facility LCs because the making of such Loan or issuance of such Facility LC would cause such
Lender’s Aggregate Credit Exposure to exceed its Commitment, as the case may be, the Agent shall
have the right, but not the obligation, to reallocate the Domestic Revolving Loans among the
Domestic Lenders and the Canadian Loans among the Canadian Lenders, as necessary, so long as (A) no
Lender’s Domestic Exposure shall exceed its Domestic Commitment, (B) the Aggregate Domestic
Exposure shall not exceed the Domestic Maximum Revolving Amount, (C) no Lender’s Canadian Exposure
shall exceed its Canadian Commitment, (D) the Aggregate Canadian Exposure shall not exceed the
Canadian Maximum Revolving Amount, and (E) the Aggregate Credit Exposure shall not exceed the
Aggregate Commitment.

          (e) The Agent’s Election. Promptly after receipt of a Borrowing Notice (or telephonic
notice in lieu thereof) of a requested Domestic Floating Rate Advance, the Agent shall elect in its
discretion to have the terms of Section 2.1.1(f) (pro rata advance by all Lenders) or
Section 2.1.3 (advance by the Agent, in the form of a Non-Ratable Loan, on behalf of the
Lenders) apply to such requested Advance.

          (f) Pro Rata Advance. If a requested Advance is for a Domestic Floating Rate Advance,
unless the Agent elects to have the terms of Section 2.1.3 apply to a requested Domestic
Floating Rate Advance, or if a requested Advance is for a Fixed Rate Advance, then promptly after
receipt of a Borrowing Notice or telephonic notice in lieu thereof as permitted by Section
2.8, the Agent shall notify the Lenders by telecopy, telephone, or e-mail of the requested
Advance. Not later than 12:00 noon (local time) on each Borrowing Date (or, in the case of
Canadian Revolving Loans and UK Fixed Rate Loans, on the date specified in Section 2.2),
each Lender shall make available its Domestic Revolving Loan, Canadian Revolving Loan, or UK Fixed
Rate Loan, as the case may be, in funds immediately available in Chicago to the Agent, the Canadian
Correspondent Lender, or the UK Correspondent Lender, as applicable, and the Agent, the Canadian
Correspondent Lender, or the UK Correspondent Lender, as applicable, will make the funds so
received from the Lenders available to the applicable Borrower at the Funding Account as set forth
in Section 2.5.

     2.1.2. Facility LCs.

          (a) Issuance. The LC Issuer hereby agrees, on the terms and conditions set forth in
this Agreement, to issue Facility LCs on behalf of any Loan Party and to renew, extend, increase,
decrease or otherwise modify each Facility LC (“Modify,” and each such action a
“Modification”), from time to time from and including the Effective Date and prior to the
Facility Termination Date upon the request of the Domestic Borrower.

     (i) The maximum face amount of (A) each Facility LC to be issued shall not
exceed $40,000,000 (or the applicable foreign currency equivalent thereof)
minus the sum of (1) the aggregate undrawn amount of all outstanding
Facility LCs at such time and, without duplication, (2) the aggregate unpaid
Reimbursement Obligations with respect to all Facility LCs outstanding at such time;
(B) each Canadian Facility LC to be issued shall not exceed the Canadian Dollar
equivalent of $1,000,000 minus the sum of (1) the aggregate undrawn amount
of all outstanding Canadian Facility LCs at such time and, without

 

 

duplication, (2) the aggregate unpaid Reimbursement Obligations with respect to all
Canadian Facility LCs outstanding at such time; (C) each UK Letter of Credit to be
issued shall not exceed the Pounds Sterling equivalent of $1,000,000 minus
the sum of (1) the aggregate undrawn amount of all outstanding UK Letters of Credit
at such time and, without duplication, (2) the aggregate unpaid Reimbursement
Obligations with respect to all UK Letter of Credit outstanding at such time; and
(D) each UK Letter Guarantee to be issued shall not exceed £600,000 minus
the sum of (1) the aggregate undrawn amount of all outstanding UK Letter Guarantees
at such time and, without duplication, (2) the aggregate unpaid Reimbursement
Obligations with respect to all UK Letter Guarantees outstanding at such time.

     (ii) The LC Issuer shall not be obligated to issue (A) any Domestic Facility LC
if at the time of the proposed issuance there is no Domestic Availability, (B) any
Canadian Facility LC if at the time of the proposed issuance there is no Canadian
Availability, or (C) any UK Facility LC if at the time of the proposed issuance
there is no UK Availability.

     (iii) All Canadian Facility LCs shall be issued in Canadian Dollars, all UK
Facility LCs shall be issued in Pounds Sterling, and all Domestic Facility LCs shall
be issued in Dollars, Canadian Dollars or Pounds Sterling.

     (iv) No Facility LC (or any renewal thereof) shall have an expiry date later
than the earlier of (x) the fifth Business Day prior to the Facility Termination
Date and (y) one year after its issuance; provided that each Facility LC with a
one-year tenor may provide for the renewal thereof for additional one-year periods.

          (b) Participations. With respect to the Closing Date LCs and upon the issuance or
Modification by the LC Issuer of a Domestic Facility LC in accordance with this Section
2.1.2, the LC Issuer shall be deemed, without further action by any party hereto, to have
unconditionally and irrevocably sold to each Domestic Lender, and each Domestic Lender shall be
deemed, without further action by any party hereto, to have unconditionally and irrevocably
purchased from the LC Issuer, a participation in such Domestic Facility LC (and each Modification
thereof) and the related Domestic LC Obligations in proportion to its Pro Rata Share.

          (c) Notice. Subject to Section 2.1.2(a), the Domestic Borrower, on behalf of
itself or the applicable Loan Party, shall give the applicable LC Issuer (with a copy to the Agent
if it is not the LC Issuer) notice prior to 10:00 a.m. (local time) at least three Business Days
prior to the proposed date of issuance or Modification of each Facility LC, specifying the
beneficiary, the proposed date of issuance (or Modification), the currency in which the Facility LC
is to be issued, the expiry date of such Facility LC, whether the Facility LC is a Domestic
Facility LC, a Canadian Facility LC or a UK Facility LC and describing the proposed terms of such
Facility LC and the nature of the transactions proposed to be supported thereby. Upon receipt of
such notice, the applicable LC Issuer shall promptly notify the Agent, and the Agent shall promptly
notify

 

 

each Lender, of the contents thereof and of the amount of such Lender’s participation in such
proposed Facility LC, if any. The issuance or Modification by the LC Issuer of any Facility LC
shall, in addition to the conditions precedent set forth in Article IV (the satisfaction of
which the LC Issuer shall have no duty to ascertain), be subject to the conditions precedent that
such Facility LC shall be satisfactory to the applicable LC Issuer and that the applicable
Borrower, on behalf of itself or the applicable Loan Party for whose benefit the Facility LC is to
be issued, shall have executed and delivered such application agreement and/or such other
instruments and agreements relating to such Facility LC as the LC Issuer shall have reasonably
requested (each, a “Facility LC Application”). In the event of any conflict between the
terms of this Agreement and the terms of any Facility LC Application, the terms of this Agreement
shall control.

          (d) Administration; Reimbursement by Lenders. Upon receipt from the beneficiary of
any Facility LC of any demand for payment under such Facility LC, the LC Issuer shall notify the
Agent and the Agent shall promptly notify the Domestic Borrower and any other applicable Loan Party
and each other Lender as to the amount to be paid by the LC Issuer as a result of such demand and
the proposed payment date (the “LC Payment Date”). The responsibility of the LC Issuer to
the applicable Loan Parties, and each Lender shall be only to determine that the documents
(including each demand for payment) delivered under each Facility LC in connection with such
presentment shall be in conformity in all material respects with such Facility LC. The LC Issuer
shall endeavor to exercise the same care in the issuance and administration of the Facility LCs as
it does with respect to letters of credit in which no participations are granted, it being
understood that in the absence of any gross negligence or willful misconduct by the LC Issuer, each
Lender shall be unconditionally and irrevocably liable without regard to the occurrence of any
Default or any condition precedent whatsoever, to reimburse the LC Issuer on demand for (i) such
Lender’s Pro Rata Share of the amount of each payment made by the LC Issuer under each Facility LC,
if any, to the extent such amount is not reimbursed by the applicable Borrower pursuant to
Section 2.1.2(e) below, plus (ii) interest on the foregoing amount to be reimbursed
by such Lenders, for each day from the date of the LC Issuer’s demand for such reimbursement (or,
if such demand is made after 11:00 a.m. (local time) on such date, from the next succeeding
Business Day) to the date on which such Lender pays the amount to be reimbursed by it, at a rate of
interest per annum equal to the Federal Funds Effective Rate for the first three days and,
thereafter, at a rate of interest equal to the rate applicable to Floating Rate Advances (except in
the UK, which shall equal the rate applicable to Fixed Rate Advances) for the currency in which the
Facility LC was issued.

          (e) Reimbursement by the Borrower. The applicable Borrower shall be irrevocably and
unconditionally obligated to reimburse the LC Issuer on or before the applicable LC Payment Date
for any amounts to be paid by the LC Issuer upon any drawing under any Facility LC, without
presentment, demand, protest or other formalities of any kind; provided that, no Loan Party or
Lender shall hereby be precluded from asserting any claim for direct (but not consequential)
damages suffered by such Loan Party or such Lender to the extent, but only to the extent, caused by
(i) the willful misconduct or gross negligence of the LC Issuer in determining whether a request
presented under any Facility LC issued by it complied with the terms of such Facility LC or (ii)
the LC Issuer’s failure to pay under any Facility LC issued by it after the presentation to it of a
request strictly complying with the terms and conditions of such Facility LC. All such amounts
paid by the LC Issuer and remaining unpaid by the applicable

 

 

Borrower shall bear interest, payable on demand, for each day until paid at a rate per annum equal
to (x) the rate applicable to Floating Rate Advances (except in the UK, which shall equal the rate
applicable to UK Fixed Rate Advances) for the currency in which the Facility LC was issued for such
day if such day falls on or before the applicable LC Payment Date and (y) the sum of 2%
plus the rate applicable to Floating Rate Advances (except in the UK, which shall equal the
rate applicable to Fixed Rate Advances) for such day if such day falls after such LC Payment Date.
The LC Issuer will pay to each Lender ratably in accordance with its Pro Rata Share all amounts
received by it from such Borrower for application in payment, in whole or in part, of the
Reimbursement Obligation in respect of any Facility LC issued by the LC Issuer, but only to the
extent such Lender has made payment to the LC Issuer in respect of such Facility LC pursuant to
Section 2.1.2(d). Subject to the terms and conditions of this Agreement (including without
limitation the submission of a Borrowing Notice in compliance with Section 2.1.1(b) and the
satisfaction of the applicable conditions precedent set forth in Article IV), a Borrower
may request an Advance hereunder for the purpose of satisfying any Reimbursement Obligation.

          (f) Obligations Absolute. The applicable Borrower’s obligations under this
Section 2.1.2 shall be absolute and unconditional under any and all circumstances and
irrespective of any setoff, counterclaim or defense to payment which such Borrower may have or have
had against the LC Issuer, any Lender or any beneficiary of a Facility LC. Such Borrower further
agrees with the LC Issuer and the Lenders that the LC Issuer and such Lenders shall not be
responsible for, and such Borrower’s Reimbursement Obligation in respect of any Facility LC shall
not be affected by, among other things, the validity or genuineness of documents or of any
endorsements thereon, even if such documents should in fact prove to be in any or all respects
invalid, fraudulent or forged, or any dispute between or among such Borrower, any of its
Affiliates, the beneficiary of any Facility LC or any financing institution or other party to whom
any Facility LC may be transferred or any claims or defenses whatsoever of such Borrower or of any
of its Affiliates against the beneficiary of any Facility LC or any such transferee. The LC Issuer
shall not be liable for any error, omission, interruption or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with any Facility LC. The
applicable Borrower agrees that any action taken or omitted by the LC Issuer or any Lender under or
in connection with each Facility LC and the related drafts and documents, if done without gross
negligence or willful misconduct, shall be binding upon such Borrower and shall not put the LC
Issuer or any Lender under any liability to such Borrower. Nothing in this Section
2.1.2(f) is intended to limit the right of such Borrower to make a claim against the LC Issuer
for damages as contemplated by the proviso to the first sentence of Section 2.1.2(e).

          (g) Actions of LC Issuer. The LC Issuer shall be entitled to rely, and shall be fully
protected in relying, upon any Facility LC, draft, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons, and upon advice and statements of legal
counsel, independent accountants and other experts selected by the LC Issuer. The LC Issuer shall
be fully justified in failing or refusing to take any action under this Agreement unless it shall
first have received such advice or concurrence of the Required Lenders as it reasonably deems
appropriate or it shall first be indemnified to its reasonable satisfaction by the Lenders against
any and all liability and expense which may be incurred by it by reason of taking or continuing to

 

 

take any such action. Notwithstanding any other provision of this Section 2.1.2, the LC
Issuer shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement in accordance with a request of the Required Lenders, and such request and any action
taken or failure to act pursuant thereto shall be binding upon the Lenders and any future holders
of a participation in any Facility LC.

          (h) Indemnification. The applicable Loan Parties hereby agree to indemnify and hold
harmless each Lender, the applicable LC Issuer and the Agent, as the case may be, and their
respective directors, officers, agents and employees from and against any and all claims and
damages, losses, liabilities, costs or expenses which such Lender, the applicable LC Issuer or the
Agent, may incur (or which may be claimed against such Lender, the applicable LC Issuer or the
Agent, by any Person whatsoever) by reason of or in connection with the issuance, execution and
delivery or transfer of or payment or failure to pay under any Facility LC or any actual or
proposed use of any Facility LC, including, without limitation, any claims, damages, losses,
liabilities, costs or expenses which the LC Issuer may incur by reason of or in connection with (i)
the failure of any other Lender to fulfill or comply with its obligations to the LC Issuer
hereunder (but nothing herein contained shall affect any rights such Borrower may have against any
defaulting Lender) or (ii) by reason of or on account of the LC Issuer issuing any Facility LC
which specifies that the term “Beneficiary” included therein includes any successor by operation of
law of the named Beneficiary, but which Facility LC does not require that any drawing by any such
successor Beneficiary be accompanied by a copy of a legal document, satisfactory to the LC Issuer,
evidencing the appointment of such successor Beneficiary; provided that, such Borrower shall not be
required to indemnify any Lender, the LC Issuer or the Agent for any claims, damages, losses,
liabilities, costs or expenses to the extent, but only to the extent, caused by (x) the willful
misconduct or gross negligence of the LC Issuer in determining whether a request presented under
any Facility LC complied with the terms of such Facility LC or (y) the LC Issuer’s failure to pay
under any Facility LC after the presentation to it of a request strictly complying with the terms
and conditions of such Facility LC. Nothing in this Section 2.1.2(h) is intended to limit
the obligations of such Borrower under any other provision of this Agreement.

          (i) Lenders’ Indemnification. Each Lender shall, ratably in accordance with its Pro
Rata Share, indemnify the LC Issuer, its Affiliates and their respective directors, officers,
agents and employees (to the extent not reimbursed by the applicable Borrower) against any cost,
expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or
liability (except such as result from such indemnitees’ gross negligence or willful misconduct or
the LC Issuer’s failure to pay under any Facility LC after the presentation to it of a request
strictly complying with the terms and conditions of the Facility LC) that such indemnitees may
suffer or incur in connection with this Section 2.1.2 or any action taken or omitted by
such indemnitees hereunder. Following a Default each Lender shall, ratably in accordance with its
Pro Rata Share of the Aggregate Commitment, indemnify (a) the UK Correspondent Lender, its
Affiliates and their respective directors, officers, agents and employees (to the extent not
reimbursed by the applicable Borrower) against any cost, expense (including reasonable counsel fees
and disbursements), claim, demand, action, loss or liability (except such as result from such
indemnitees’ gross negligence or willful misconduct or the UK Correspondent Lender’s failure to pay
under any UK Facility LC after the presentation to it of a request strictly complying with the
terms and conditions of the UK Facility LC) that such indemnitees may suffer or incur in

 

 

connection with Section 2.1.1 or 2.1.2 or under the UK Overdraft Agreement or any action
taken or omitted by such indemnitees thereunder.

          (j) Facility LC Collateral Account. Each Borrower agrees with respect to its Facility
LCs that it will, after the occurrence and during the continuance of a Default, upon the request of
the Agent or the Required Lenders and until the final expiration date of any Facility LC and
thereafter as long as any amount is payable to the LC Issuer or the Lenders in respect of any
Facility LC, maintain a special collateral account pursuant to arrangements satisfactory to the
Agent (each, a “Facility LC Collateral Account”) at, in the case of the Domestic Borrower,
the Agent’s office at the address specified pursuant to Article XIII (or such other office
in the U.S. as the Agent may request), in the case of the Canadian Borrower, at the Canadian
Correspondent Lender’s office at the address specified pursuant to Article XIII (or such
other office in Canada as the Canadian Correspondent Lender may request) and, in the case of the UK
Borrowers, at the UK Correspondent Lender’s office at the address specified pursuant to Article
XIII (or such other office in the UK as the UK Correspondent Lender may request), in the name
of such Borrower but under the sole dominion and control of the Agent, the Canadian Correspondent
Lender, or the UK Correspondent Lender, as the case may be, for the benefit of the Lenders, and in
which such Borrower shall have no interest other than as set forth in Section 8.1. The
applicable Borrower hereby pledges, assigns and grants to the Agent, the Canadian Correspondent
Lender, or the UK Correspondent Lender, as the case may be, on behalf of and for the ratable
benefit of the Lenders and the LC Issuer, a security interest in all of such Borrower’s right,
title and interest in and to all funds which may from time to time be on deposit in the applicable
Facility LC Collateral Account to secure the prompt and complete payment and performance of the
Secured Obligations or the applicable Secured Foreign Obligations, as the case may be. The Agent,
the Canadian Correspondent Lender, or the UK Correspondent Lender, as the case may be, (i) will
invest any funds on deposit from time to time in any Facility LC Collateral Account in certificates
of deposit (or the Canadian or UK equivalent) having a maturity not exceeding thirty days or (ii)
pay to the applicable Borrower a competitive credit interest. Nothing in this Section
2.1.2(j) shall either obligate the Agent, the Canadian Correspondent Lender, or the UK
Correspondent Lender, as the case may be, to require such Borrower to deposit any funds in the
Facility LC Collateral Account or limit the right of the Agent, the Canadian Correspondent Lender,
or the UK Correspondent Lender, as the case may be, to release any funds held in the Facility LC
Collateral Account in each case other than as required by Section 8.1.

          (k) Rights as a Lender. In its capacity as a Lender, the LC Issuer shall have the
same rights and obligations as any other Lender.

          (l) Termination of the Facility. If, notwithstanding the provisions of this
Section 2.1.2, any Facility LC is outstanding upon the termination of this Agreement, then
upon such termination the applicable Borrower shall deposit with the Agent, the Canadian
Correspondent Lender, or the UK Correspondent Lender, as the case may be, for the benefit of the
Lenders, with respect to all LC Obligations, as the Agent in its discretion shall specify, either
(i) a standby letter of credit (a “Supporting Letter of Credit”), in form and substance
satisfactory to the Agent, issued by an issuer satisfactory to the Agent, in an amount in
immediately available funds equal to 105% of the difference of (x) the amount of LC Obligations

 

 

of such Borrower at such time, less (y) the amount on deposit in such Borrower’s Facility LC
Collateral Account at such time which is free and clear of all rights and claims of third parties
and has not been applied against the Obligations (such difference, the “Collateral Shortfall
Amount”), under which Supporting Letter of Credit the Agent, the Canadian Correspondent Lender,
or the UK Correspondent Lender, as the case may be, is entitled to draw amounts necessary to
reimburse the applicable LC Issuer for payments to be made under any such Facility LC and any fees
and expenses associated with such Facility LC, or (ii) cash in an amount equal to 105% of the
Collateral Shortfall Amount (which funds shall be held in the Facility LC Collateral Account).
Such Supporting Letter of Credit or deposit of cash shall be held by the Agent, the Canadian
Correspondent Lender, or the UK Correspondent Lender, as the case may be, for the benefit of the
Applicable Agent and Lenders, as security for, and to provide for the payment of, the aggregate
undrawn amount of such Facility LC remaining outstanding and all Reimbursement Obligations.

     2.1.3. Non-Ratable Loans. Subject to the restrictions set forth in Section
2.1.1(a), the Agent may elect to have the terms of this Section 2.1.3 apply to any
requested Domestic Floating Rate Advance and Chase shall thereafter make an Advance, on behalf of
the Domestic Lenders and in the amount requested, available to the Domestic Borrower on the
applicable Borrowing Date by transferring same day funds to the appropriate Funding Account. Each
Advance made solely by Chase pursuant to this Section 2.1.3 is referred to in this
Agreement as a “Non-Ratable Loan,” and such Advances are referred to as the
“Non-Ratable Loans.” Each Non-Ratable Loan shall be subject to all the terms and
conditions applicable to other Advances funded by the Domestic Lenders, except that all payments
thereon shall be payable to Chase solely for its own account. The aggregate amount of Non-Ratable
Loans outstanding at any time shall not exceed the lesser of (a) $10,000,000 and (b) the
Availability or the Domestic Availability (before giving effect to such Non-Ratable Loan).
Non-Ratable Loans may be made even if a Default or Unmatured Default exists, but may not be made if
the conditions precedent set forth in Section 4.2 have not been satisfied. The Non-Ratable
Loans shall be secured by the Liens granted to the Agent for the benefit of the Applicable Agent
and Lenders and shall constitute Obligations hereunder. All Non-Ratable Loans shall be Domestic
Floating Rate Advances and are subject to the settlement provisions set forth in Section
2.19.

     2.1.4. Protective Advances and Overadvances.

          (a) Protective Advances. Subject to the limitations set forth below, the Agent is
authorized by the Borrowers and the Lenders, from time to time in the Agent’s sole discretion, to
make Advances to the Domestic Borrower (or to direct the Canadian Correspondent Lender to make
Advances to the Canadian Borrower or to direct the UK Correspondent Lender to make Advances to a UK
Borrower), on behalf of all of the Lenders, in an aggregate amount outstanding at any time not to
exceed the Dollar Equivalent of $5,000,000, which the Agent, in its reasonable business judgment,
deems necessary or desirable (i) to preserve or protect the Collateral, or any portion thereof,
(ii) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and other
Obligations, or (iii) to pay any other amount chargeable to or required to be paid by the Borrowers
pursuant to the terms of this Agreement, including costs, fees, and expenses as described in
Section 9.6 (any of such Advances are herein referred to as “Protective Advances”);
provided that, no Protective Advance shall cause any Lender’s Credit

 

 

Exposure to exceed its aggregate Commitment, the Aggregate Domestic Exposure to exceed the
Aggregate Commitment, the Aggregate Canadian Exposure to exceed the Aggregate Canadian Commitment,
or the Aggregate UK Exposure to exceed the Aggregate UK Commitment. Protective Advances may be
made even if the conditions precedent set forth in Section 4.2 have not been satisfied
except for Section 4.2(b). The Protective Advances made to the Domestic Borrower, the
Canadian Borrower and the UK Borrowers, as the case may be, shall be secured by the Liens in favor
of the Agent, the Canadian Correspondent Lender, or the UK Correspondent Lender, as the case may
be, in and to the Collateral and shall constitute Obligations hereunder. All Protective Advances
shall be Floating Rate Advances (except in the UK, which Advances shall consist of UK
Fixed Rate Advances) and are subject to the settlement provisions set forth in Section
2.19.

          (b) Overadvances. Any provision of this Agreement to the contrary notwithstanding, at
the request of the Domestic Borrower, the Agent may in its sole discretion (but shall have
absolutely no obligation to), make Advances to the Domestic Borrower, on behalf of the Domestic
Lenders, in amounts that exceed Domestic Availability (any such excess Advances are herein referred
to collectively as “Overadvances”); provided that, (i) no such event or occurrence shall
cause or constitute a waiver of the Agent’s or the Lenders’ right to refuse to make any further
Overadvances, Loans or Non-Ratable Loans, or issue Facility LCs, as the case may be, at any time
that an Overadvance exists, (ii) no Overadvance shall result in a Default or Unmatured Default due
to the Domestic Borrower’s failure to comply with Section 2.1.1(a) for so long as the Agent
permits such Overadvance to remain outstanding, but solely with respect to the amount of such
Overadvance, and (iii) in no event shall Overadvances be outstanding for more than 60 days (which
days need not be consecutive) in any 120 day period. In addition, Overadvances may be made even if
a Default or Unmatured Default exists, but may not be made if the conditions precedent set forth in
Section 4.2 have not been satisfied (other than the condition precedent set forth in
Section 4.2(d)). All Overadvances shall constitute Domestic Floating Rate Advances, shall bear
interest at the default rate set forth in Section 2.12 and shall be payable on the earlier
of demand or the Facility Termination Date. In addition, all Overadvances are subject to the
settlement provisions set forth in Section 2.19. The authority of the Agent to make
Overadvances is limited to an aggregate amount not to exceed $5,000,000 at any time and no
Overadvance shall cause any Lender’s Credit Exposure to exceed its aggregate Commitment or the
Domestic Exposure to exceed the Domestic Commitment; provided that, the Required Lenders may at any
time revoke the Agent’s authorization to make Overadvances. Any such revocation must be in writing
and shall become effective prospectively upon the Agent’s receipt thereof.

     2.1.5 Security for Secured Foreign Obligations. Notwithstanding anything to the
contrary in this Agreement or in any other Loan Document, (i) the Canadian Loan Parties shall be
liable only for the Canadian Obligations and the UK Obligations, and the Canadian Collateral shall
secure only the Canadian Obligations and the UK Obligations, and (ii) the UK Loan Parties shall be
liable only for the UK Obligations and the Canadian Obligations, and the UK Collateral shall secure
only the UK Obligations and the Canadian Obligations, but the Domestic Loan Parties are liable for
all Obligations and the domestic Collateral secures all Obligations.

 

 

     2.2. Ratable Loans; Risk Participation. Except as otherwise provided below, each
Advance made in connection with a Loan shall consist of Loans made by each Lender in an amount
equal to such Lender’s then Pro Rata Share of the applicable Commitment; provided that, with
respect to Advances made in connection with Canadian Revolving Loans or UK Fixed Rate Loans, such
Advances shall consist of Loans made solely by each Canadian Lender or each UK Lender, as the case
may be, in an amount equal to such Lender’s Pro Rata Share of the Aggregate Canadian Commitment or
the Aggregate UK Commitment, as the case may be. Upon the making of an Advance by the Agent in
connection with a Non-Ratable Loan (whether before or after the occurrence of a Default or an
Unmatured Default and regardless of whether the Agent has requested a Settlement with respect to
such Non-Ratable Loan), a Protective Advance or an Overadvance, the Agent shall be deemed, without
further action by any party hereto, to have unconditionally and irrevocably sold to each Domestic
Lender and each such Lender shall be deemed, without further action by any party hereto, to have
unconditionally and irrevocably purchased from the Agent, without recourse or warranty, an
undivided interest and participation in such Non-Ratable Loan, a Protective Advance or an
Overadvance in proportion to its Pro Rata Share of the Aggregate Commitment. Those Lenders that
shall have actually made Canadian Revolving Loans, UK Fixed Rate Loans, or UK Overdraft Advances,
as the case may be (each such Lender being referred to as a “Participating Lender”), shall
be deemed immediately upon the making of such Loan, without further action by any party hereto, to
have unconditionally and irrevocably sold to each Lender, as the case may be, that did not make
Canadian Advances, Canadian Facility LCs, UK Advances, or UK Facility LCs, as the case may be (each
such “non-lending” Lender being referred to as a “Non-Participating Lender”), and each
Non-Participating Lender shall be deemed immediately upon the making of such Advance or Facility
LC, without further action by any party hereto, to have unconditionally and irrevocably purchased
from the Participating Lenders, an undivided interest and unfunded participation in such Advances
and Facility LCs, as the case may be, in proportion to its Pro Rata Share of the Aggregate
Commitment; provided that, (a) beginning with the first day of each such Advance and Facility LC,
the interest that accrues with respect to each such Advance and Facility LC shall also be for the
account of each Non-Participating Lender in accordance with its Pro Rata Share of such Advance and
Facility LC, and (b) upon the occurrence of a Default, at the Agent’s sole and absolute discretion,
which shall be evidenced in a written notice to each Lender and the Domestic Borrower, each
Non-Participating Lender shall transfer the amount of such Lender’s Pro Rata Share of the
outstanding principal amount of the applicable Advance or Facility LC with respect to which
settlement is requested to the Applicable Agent, to such account of the Applicable Agent as the
Applicable Agent may designate, not later than 12:00 p.m. (local time), on the settlement date
specified in the notice.

     2.3. Payment of the Obligations; Currency. The Borrowers shall repay the outstanding
principal balance of the Loans, together with all other Obligations, including all accrued and
unpaid interest thereon, on the Facility Termination Date. Each Obligation related to the Domestic
Revolving Loans shall be paid in Dollars, each Obligation related to the Canadian Revolving Loans
shall be paid in Canadian Dollars, and each Obligation related to the UK Fixed Rate Loans shall be
paid in Pounds Sterling.

     2.4. Minimum Amount of Each Advance. Each Fixed Rate Advance to be provided by (a)
the Domestic Lender shall be in the minimum amount of $5,000,000 and in multiples of

 

 

$1,000,000 in
excess thereof, (b) the Canadian Lender shall be in the minimum amount of CAD 100,000 and in
multiples of CAD 100,000 in excess thereof, and (c) the UK Lender shall be in the minimum amount of
£100,000 and in multiples of £100,000 in excess thereof. Floating Rate Advances may be in any
amount.

     2.5. Funding Account. Each Borrower shall have delivered or shall deliver to the
Agent a notice setting forth the deposit account of such Borrower (each, a “Funding
Account”) to which the Agent, the Canadian Correspondent Lender, or the UK Correspondent
Lender, as the case may be, are authorized by such Borrower to transfer the proceeds of any
Advances requested pursuant to this Agreement. The Domestic Borrower may designate replacement
Funding Accounts from time to time by written notice to the Agent. Any designation by the Domestic
Borrower of a Funding Account must be reasonably acceptable to the Agent.

     2.6. Reliance Upon Authority; No Liability. The Agent is entitled to rely
conclusively on any individual’s request for Advances hereunder, so long as the proceeds thereof
are to be transferred to a Funding Account. The Agent shall have no duty to verify the identity of
any individual representing himself or herself as a person authorized by the Domestic Borrower to
make such requests on the behalf of the Domestic Borrower. The Agent shall not incur any liability
to the Borrower as a result of acting upon any notice referred to in Section 2.1 which the
Agent reasonably believes to have been given by an officer or other person duly authorized by the
Domestic Borrower to request Advances on behalf of the Borrowers or for otherwise acting under this
Agreement. The crediting of Advances to any Funding Account shall conclusively establish the
obligation of the applicable Borrower to repay such Advances as provided herein.

     2.7. Conversion and Continuation of Outstanding Advances.

     (a) Floating Rate Advances shall continue as Floating Rate Advances unless and until such
Floating Rate Advances are converted into Fixed Rate Advances pursuant to this Section 2.7
or are repaid in accordance with this Agreement. Each Fixed Rate Advance shall continue as a Fixed
Rate Advance until the end of the then applicable Interest Period therefor, at which time such
Fixed Rate Advance shall be automatically converted into a Floating Rate Advance, other than any UK
Fixed Rate Advance, unless (a) such Fixed Rate Advance is or was repaid in accordance with this
Agreement or (b) the Domestic Borrower shall have given the Agent a Conversion/Continuation Notice
(as defined below) requesting that, at the end of such Interest Period, such Fixed Rate Advance
continues as a Fixed Rate Advance for the same or another Interest Period. Each UK Fixed Rate
Advance shall at the end of the applicable Interest Period therefor, unless repaid, be continued as
a UK Fixed Rate Advance with an Interest Period with the least number of days possible. Subject to
the terms of Section 2.4, the Domestic Borrower may elect from time to time to convert all
or any part of a Floating Rate Advance into a Fixed Rate Advance. The Domestic Borrower shall give
the Agent irrevocable notice in the form of Exhibit B (a “Conversion/Continuation
Notice”) of each conversion of a Floating Rate
Advance into a Fixed Rate Advance or continuation of a Fixed Rate Advance not later than 10:00
a.m. (Chicago time) at least three Business Days prior to the date of the requested conversion or
continuation, specifying (i) the requested date, which shall be a Business Day, of such conversion
or continuation, (ii) the aggregate amount and Type of the Advance which is to be converted or
continued, (iii) the amount of such Advance which is to be converted into or continued as a Fixed
Rate Advance (provided that the amounts set forth in Section 2.4 shall be

 

 

complied with),
and (iv) the duration of the Interest Period applicable thereto. In each Conversion/Continuation
Notice, the Domestic Borrower shall designate whether any Advance is a Fixed Asset Advance.

     (b) Each UK Fixed Rate Advance shall continue as a UK Fixed Rate Advance until the end of the
then applicable Interest Period therefor, at which time such Fixed Rate Advance shall be repaid in
accordance with this Agreement unless the Domestic Borrower shall have given the Agent a
Continuation Notice requesting that, at the end of such Interest Period, such Fixed Rate Advance
continues as a UK Fixed Rate Advance for the same or another Interest Period. The Domestic
Borrower shall give the UK Correspondent Lender irrevocable notice in the form of Exhibit B
of each continuation of a UK Fixed Rate Advance (with a copy to the Agent) not later than 10:00
a.m. (London time) at least three Business Days prior to the date of the requested continuation,
specifying (i) the requested date, which shall be a Business Day, of such continuation, (ii) the
aggregate amount of the UK Fixed Rate Advance which is to be continued (provided that the amounts
set forth in Section 2.4 shall be complied with), and (iii) the duration of the Interest
Period applicable thereto.

     2.8. Telephonic Notices. The Borrower hereby authorizes the Lenders and the Agent to
extend, convert or continue Advances, effect selections of Types of Advances and to transfer funds
based on telephonic notices made by any person or persons the Agent or any Lender in good faith
believes to be acting on behalf of the Domestic Borrower, it being understood that the foregoing
authorization is specifically intended to allow Borrowing Notices and Conversion/Continuation
Notices to be given telephonically. The Domestic Borrower agrees to deliver promptly to the Agent
a written confirmation, if such confirmation is requested by the Agent or any Lender, of each
telephonic notice signed by an Authorized Officer. If the written confirmation differs in any
material respect from the action taken by the Agent and the Lenders, the records of the Agent and
the Lenders shall govern absent manifest error.

     2.9. Notification of Advances, Interest Rates, Prepayments and Commitment Reductions.
Promptly after receipt thereof, the Agent will notify each Lender of the contents of each Borrowing
Notice, Conversion/Continuation Notice, and repayment notice received by it hereunder. Promptly
after notice from the LC Issuer, the Agent will notify each Lender of the contents of each request
for issuance of a Facility LC hereunder. The Agent will notify each Lender of the interest rate
applicable to each Fixed Rate Advance promptly upon determination of such interest rate and will
give each Lender prompt notice of each change in the Alternate Base Rate and Canadian Base Rate.

     2.10. Fees.

     (a) Unused Commitment Fee. The Domestic Borrower agrees to pay to the Agent, for the
account of each Domestic Lender in accordance with such Lender’s Pro Rata Share of the Aggregate
Commitment, an unused commitment fee at a per annum rate equal to the Applicable Fee Rate on the
average daily Available Commitment from the date hereof to and including the Facility Termination
Date, payable on each Payment Date hereafter and on the Facility Termination Date (the “Unused
Commitment Fee”).

 

 

     (b) LC Fees. The applicable Borrower shall pay to the Agent, the Canadian
Correspondent Lender, or the UK Correspondent Lender, as the case may be, for the account of the
Lenders ratably in accordance with their respective Pro Rata Shares of the applicable Commitment, a
letter of credit fee at a per annum rate equal to the Applicable Margin for Eurodollar Loans in
effect from time to time for Domestic Revolving Loans on the average daily undrawn stated amount
under each Facility LC, such fee to be payable in arrears on each Payment Date (the “LC
Fee”). The applicable Borrower shall also pay to the LC Issuer for its own account (x) at the
time of issuance or renewal of each standby Facility LC, a fronting fee of .125% of the face amount
of such Facility LC, and (y) documentary and processing charges in connection with the issuance or
Modification of and draws under Facility LCs in accordance with the LC Issuer’s standard schedule
for such charges as in effect from time to time.

     (c) Amendment Fee. The Domestic Borrower agrees to pay the Agent a fee in the amount
of $98,800, to be allocated to each participating Lender ratably in accordance with such Lender’s
Pro Rata Share of the increase in the Aggregate Commitment from the Existing Credit Agreement.

     2.11. Interest Rates.

     (a) Each Floating Rate Advance shall bear interest on the outstanding principal amount
thereof, for each day from and including the date such Advance is made or is automatically
converted from a Fixed Rate Loan into a Floating Rate Advance pursuant to Section 2.7, to
but excluding the date it is paid or is converted into a Fixed Rate Advance pursuant to Section
2.7 hereof, at a rate per annum equal to the Floating Rate or Canadian Derived Floating Rate,
as the case may be, for such day. Changes in the rate of interest on that portion of any Advance
maintained as a Floating Rate Advance will take effect simultaneously with each change in the
Alternate Base Rate or Canadian Base Rate, as the case may be. Each Fixed Rate Advance shall bear
interest on the outstanding principal amount thereof from and including the first day of the
Interest Period applicable thereto to (but not including) the last day of such Interest Period at
the interest rate determined by the Applicable Agent as applicable to such Fixed Rate Advance based
upon the Domestic Borrower’s selections under Sections 2.1.1 and 2.7 and otherwise in
accordance with the terms hereof. No Interest Period may end after the Facility Termination Date.
Notwithstanding anything in this Agreement to the contrary, the Fixed Asset Advance shall at all
times bear interest at a rate per annum equal to the Eurodollar Rate (determined on the basis of
the Applicable Margin applicable to Fixed Asset Advances).

     (b) If any provision of this Agreement or any of the other Loan Documents would obligate a
Loan Party to make any payment of interest or other amount payable to (including for the account
of) any Lender in an amount, or calculated at a rate, that would be prohibited by law
or would result in a receipt by any Lender of interest at a criminal rate (as such terms are
construed under applicable law, including, without limitation, the Criminal Code (Canada)), then,
notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with
retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be
so prohibited by law or so result in a receipt by the Lenders of interest at a criminal rate, such
adjustment to be effected, to the extent necessary, as follows: (i) first, by reducing the amount
or rate of interest required to be paid to the Lenders under this Article II or any other

 

 

Loan Document; and (ii) thereafter, by reducing any fees, commissions, premiums and other amounts
required to be paid to the Lenders which would constitute interest for purposes of applicable law,
including, without limitation, Section 347 of the Criminal Code (Canada). Notwithstanding the
foregoing, and after giving effect to all adjustments contemplated thereby, if the Lenders shall
have received an amount in excess of the maximum amount permitted by applicable law, including,
without limitation, such section of the Criminal Code (Canada), then the Loan Parties shall be
entitled, by notice in writing to the Agent and the Canadian Lenders, to obtain reimbursement from
the Lenders in an amount equal to such excess, and pending such reimbursement, such amount shall be
deemed to be an amount payable by the Lenders to the applicable Borrower. Any amount or rate of
interest referred to in this Article II or any other Loan Document shall be determined in
accordance with generally accepted actuarial practices and principles as an effective annual rate
of interest over the term that the Aggregate Commitment remains outstanding on the assumption that
any charges, fees or expenses that fall within the meaning of “interest” (as defined in applicable
law, including, without limitation, the Criminal Code (Canada)) shall, if they relate to a specific
period of time, be pro-rated over that period of time and otherwise be pro-rated over the term of
the Loans and, in the event of a dispute with respect to the Aggregate Canadian Commitment, a
certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Agent and
reasonably acceptable to the Company shall be conclusive for the purposes of such determination.
The terms and provisions of this Section shall control every other provision of this Agreement and
the Loan Documents.

     2.12. Fixed Rate Advances Post Default; Default Rates. Notwithstanding anything to
the contrary contained hereunder, during the continuance of a Default or Unmatured Default, the
Agent or the Required Lenders may, at their option, by notice to the Domestic Borrower (which
notice may be revoked at the option of the Required Lenders notwithstanding any provision of
Section 8.3 requiring unanimous consent of the Lenders to reductions in interest rates),
declare that no Advance (other than the UK Fixed Rate Advances) may be made as, converted into or
continued as a Fixed Rate Advance. During the continuance of a Default, the Agent or the Required
Lenders may, at their option, by notice to the Domestic Borrower (which notice may be revoked at
the option of the Required Lenders notwithstanding any provision of Section 8.3 requiring
unanimous consent of the Lenders to reductions in interest rates), declare that (i) each Fixed Rate
Advance, UK Fixed Rate Advance and Canadian Fixed Rate Advance shall bear interest for the
remainder of the applicable Interest Period at the rate otherwise applicable to such Interest
Period plus 2% per annum, (ii) each Floating Rate Advance shall bear interest at a rate per
annum equal to the Floating Rate or Canadian Base Rate, as the case may be, in effect from time to
time plus 2% per annum and (iii) the LC Fee shall be increased by 2% per annum, provided
that, during the continuance of a Default under subsection (g), (h) or (i) of Article
VII, the interest rates set forth in clauses (i) and (ii) above and the increase in the LC Fee
set forth in clause (iii) above
shall be applicable to all Credit Extensions without any election or action on the part of the
Agent or any Lender.

     2.13. Interest Payment Dates; Interest and Fee Basis. Interest accrued on each
Floating Rate Advance shall be payable on each Payment Date, commencing with the first such date to
occur after the date hereof and at maturity. Interest accrued on each Fixed Rate Advance shall be
payable on the last day of its applicable Interest Period, on any date on which the Fixed Rate
Advance is prepaid, whether by acceleration or otherwise, and at maturity. Interest accrued on

 

 

each Fixed Rate Advance having an Interest Period longer than three months shall also be payable on
the last day of each three-month interval during such Interest Period. Interest on all Advances,
other than UK Advances, Unused Commitment Fees and LC Fees, shall be calculated for actual days
elapsed on the basis of a 360-day year, and interest on all UK Advances shall be calculated for
actual days elapsed on the basis of a 365-day year. For the purposes of the Interest Act (Canada),
(i) whenever any interest under this Agreement is calculated using a rate based on a year of 360
days, the rate determined pursuant to such calculation, when expressed as an annual rate, is
equivalent to (x) the applicable rate based on a year of 360 days, (y) multiplied by the
actual number of days in the calendar year in which the period for such interest is payable (or
compounded) ends, and (z) divided by 360, (ii) the principle of deemed reinvestment of
interest does not apply to any interest calculation under this Agreement, and (iii) the rates of
interest stipulated in this Agreement are intended to be nominal rates and not effective rates or
yields. Interest shall be payable for the day an Advance is made but not for the day of any payment
on the amount paid if payment is received prior to noon (local time) at the place of payment. If
any payment of principal of or interest on an Advance shall become due on a day which is not a
Business Day, such payment shall be made on the next succeeding Business Day and, in the case of a
principal payment, such extension of time shall be included in computing interest in connection
with such payment. After giving effect to any Loan, Advance, continuation, or conversion of any
Fixed Rate Loan, there may not be (a) with respect to Eurodollar Loans, more than 10 different
Interest Periods in effect hereunder, (b) with respect to Canadian Fixed Rate Loans, more than 8
different Interest Periods in effect hereunder, and (c) with respect to UK Fixed Rate Loans, more
than 5 different Interest Periods in effect hereunder.

     2.14. Voluntary Prepayments. The Borrowers may from time to time prepay, without
penalty or premium, all of the outstanding Floating Rate Advances, or in a minimum aggregate amount
of the applicable foreign currency equivalent of $500,000, any portion of the outstanding Floating
Rate Advances upon one Business Day’s prior notice to the Agent. The Borrowers may also from time
to time prepay, subject to the payment of any funding indemnification amounts required by Section
3.4 but without penalty or premium, all outstanding Fixed Rate Advances, or, in a minimum aggregate
amount of the Dollar Equivalent of the minimum borrowing amount thereof, any portion of the
outstanding Fixed Rate Advances upon three Business Days’ prior notice to the Agent. The Domestic
Borrower shall have the right to instruct the Agent which Advances are being repaid with any
voluntary prepayment. To the extent the Domestic Borrower does not specify which Advances are
being repaid, the Agent shall (a) apply such repayments to the Loans in the inverse order of the
Loans made, (b) apply payments made by any Canadian Party solely to Canadian Obligations and (c)
apply payments made by any UK Loan Party solely to UK Obligations; provided that the repayments
will be applied first to Floating Rate Advances and second to Fixed
Rate Advances.

     2.15. Mandatory Prepayments.

     (a) Borrowing Base Compliance. Except for Overadvances permitted pursuant to
Section 2.1.4(b), (i) the Domestic Borrower shall immediately repay the Loans,
Reimbursement Obligations or Non-Ratable Loans if at any time the Aggregate Domestic Exposure
exceeds the Domestic Maximum Borrowing Amount, (ii) the Domestic Borrower and the Canadian Borrower
shall immediately repay the Canadian Revolving Loans if at any time the Aggregate Canadian Exposure
exceeds the Canadian Maximum Borrowing Amount other than solely as a

 

 

consequence of exchange rate
fluctuations, as to which Section 2.27 applies, and (iii) the Domestic Borrower and the UK
Borrower shall immediately repay the UK Fixed Rate Loans if at any time the Aggregate UK Exposure
exceeds the UK Maximum Borrowing Amount, other than solely as a consequence of exchange rate
fluctuations, as to which Section 2.27 applies, in each case to the extent required to
eliminate such excess. If any such excess remains after repayment in full of all outstanding Loans
and Reimbursement Obligations, the applicable Borrower shall provide cash collateral or a
Supporting Letter of Credit for the LC Obligations in the manner set forth in Section
2.1.2(l) to the extent required to eliminate such excess.

     (b) Sale of Assets. Immediately upon receipt by the Domestic Borrower of the Net Cash
Proceeds of any asset disposition (other than an asset disposition permitted by Sections
6.19(a), (b), (c)(i) or (c)(ii)), the Domestic Borrower shall prepay the Obligations in an
amount equal to all such Net Cash Proceeds. Any such prepayment shall be applied first, to
pay the principal of the Protective Advances and the Overadvances, second, to pay the
principal of the Fixed Asset Advance with a concomitant reduction in the Fixed Asset Borrowing
Base, third, to pay the principal of the Non-Ratable Loans, fourth, to pay the
principal of the Domestic Revolving Loans without a concomitant reduction in the Aggregate
Commitment, and fifth, to cash collateralize outstanding Facility LCs. At the option of
the Domestic Borrower, at the time such Domestic Borrower is required to make any prepayment
pursuant to this Section 2.15(b), it may advise the Agent that it intends to reinvest such
Net Cash Proceeds in assets to be used in the business of such Borrower or any other Domestic Loan
Party (including through Capital Expenditures), and (y) such Net Cash Proceeds will be applied by
such Borrower to the prepayment of Revolving Loans hereunder and, as contemplated by the second
paragraph of Section 2.1.1(a), a portion of the Aggregate Commitment equal to the amount of
such prepayment will give rise to a Reserved Commitment Amount that will be available hereunder for
purposes of acquiring assets to be used in the business of the Domestic Borrower and the other
Domestic Loan Parties (including through Capital Expenditures), and (z) the Net Cash Proceeds from
any such asset disposition must be so reinvested within 360 days of such asset disposition (it
being understood that, in the event Net Cash Proceeds from more than one asset disposition are
applied to the prepayment of Domestic Revolving Loans as provided in clause (y) above, such Net
Cash Proceeds shall be deemed to be released (or, as the case may be, Domestic Revolving Loans
utilizing the Reserved Commitment Amount shall be deemed to be made) in the same order in which
such asset dispositions occurred; provided that, the Aggregate Commitment will be automatically and
permanently reduced in an amount equal to the amount of any net cash proceeds not so reinvested
after 360 days; provided further that, the Agent may elect to forego such permanent reduction in
the Aggregate Commitment based on the fair market
value of assets purchased by the Loan Parties’ during the 360-day period immediately preceding
the date of such permanent reduction.

     (c) Issuance of Debt or Equity. If the Domestic Borrower or any of its Domestic
Subsidiaries issues Capital Stock or any Domestic Loan Party issues Indebtedness (other than
Indebtedness permitted by Sections 6.16(a), (c), (e) and (g)) or if any Domestic Loan Party
receives any dividend or distribution from a Person other than a Loan Party, no later than the
Business Day following the date of receipt of the Net Cash Proceeds of such issuance or receipt of
such dividend, distribution, loan or advance, the Borrower shall prepay the Obligations in an
amount equal to all such Net Cash Proceeds, dividends, distributions, loans or advances. Any

 

 

such
prepayment shall be applied first, to pay the principal of the Protective Advances and the
Overadvances, second, to pay the principal of the Non-Ratable Loans, third, to pay
the principal of the Loans without a concomitant reduction in the Aggregate Commitment, and
fourth, to cash collateralize outstanding Domestic Facility LCs.

     (d) Insurance/Condemnation Proceeds. Any insurance or condemnation proceeds to be
applied to the Obligations in accordance with Section 6.7(c) shall be applied as follows:
(i) insurance proceeds from casualties or losses to cash or Inventory shall be applied,
first, to the Protective Advances and the Overadvances pro rata, second, to the
Non-Ratable Loans, third, to the Domestic Revolving Loans and fourth, to cash
collateralize outstanding Domestic Facility LCs; and (ii) insurance or condemnation proceeds from
casualties or losses to Equipment, Fixtures and real Property shall be applied first, to
pay the principal of the Protective Advances, second, to pay the principal of the
Non-Ratable Loans, third, to pay the principal of the Domestic Revolving Loans, and
fourth, to cash collateralize outstanding Domestic Facility LCs. The Aggregate Commitment
shall not be permanently reduced by the amount of any such prepayments.

     (e) General. Without in any way limiting the foregoing, immediately upon receipt by
any Domestic Loan Party of proceeds of any sale of any Collateral, other than as provided in
Section 6.19, the Domestic Borrower shall cause such Loan Party to deliver such proceeds to
the Agent, or deposit such proceeds in a deposit account subject to a Deposit Account Control
Agreement. All of such proceeds shall be applied as set forth above or otherwise as provided in
Section 2.18. Nothing in this Section 2.15 shall be construed to constitute the
Agent’s or any Lender’s consent to any transaction that is not permitted by other provisions of
this Agreement or the other Loan Documents.

     2.16. Termination of the Facility

     (a) Without limiting Section 2.3 or Section 8.1, (i) the Aggregate Commitments
shall expire on the Facility Termination Date and (ii) the Aggregate Credit Exposure and all other
unpaid Obligations shall be paid in full by the applicable Borrower on the Facility Termination
Date.

     (b) The Domestic Borrower may terminate this Agreement upon (i) at least 10 Business Days’
prior written notice thereof to the Agent and the Lenders, (ii) the payment in full of all
outstanding Loans, together with accrued and unpaid interest thereon, (iii) the cancellation
and return of all outstanding Facility LCs (or alternatively, with respect to each such
Facility LC, the furnishing to the Agent of a cash deposit or Supporting Letter of Credit as
required by Section 2.1.2(l)), (iv) the payment in full of all reimbursable expenses and
other Obligations together with accrued and unpaid interest thereon, and (v) the payment in full of
any amount due under Section 3.4.

     2.17. Method of Payment.

     (a) All payments of the Obligations hereunder shall be made, without setoff, deduction, or
counterclaim, in immediately available funds to the Agent, Canadian Correspondent Lender, or UK
Correspondent Lender, as the case may be, to such Lender’s

 

 

address specified pursuant to
Article XIII, or at any other Lending Installation of the Agent, Canadian Correspondent
Lender, or UK Correspondent Lender, as the case may be, specified in writing by the Agent to the
Domestic Borrower, by 12:00 noon (local time) on the date when due and shall be applied ratably by
such Applicable Agent among the Lenders. Any payment received by the above-specified Lender after
such time shall be deemed to have been received on the following Business Day and any applicable
interest or fee shall continue to accrue. Each payment delivered to the above-specified Lender for
the account of any other Lender shall be delivered promptly by such Lender to such other Lender in
the same type of funds that such Lender received.

     (b) At the election of the Agent, all payments of principal, interest, reimbursement
obligations in connection with Facility LCs, fees, premiums, reimbursable expenses (including,
without limitation, all reimbursement for fees and expenses pursuant to Section 9.6), and
other sums payable under the Loan Documents, may be paid from the proceeds of Advances made
hereunder whether made following a request by the Domestic Borrower pursuant to Section 2.1
or a deemed request as provided in this Section 2.17 or may be deducted from a Funding
Account or any other deposit account of a Borrower maintained with the Agent. The Borrower hereby
irrevocably authorizes (i) the Agent to make an Advance for the purpose of paying each payment of
principal, interest and fees as it becomes due hereunder or any other amount due under the Loan
Documents and agrees that all such amounts charged shall constitute Loans (including Non-Ratable
Loans, Overadvances and Protective Advances) and that all such Advances shall be deemed to have
been requested pursuant to Section 2.1 and (ii) the Agent to charge any Funding Account or
any other deposit account of the applicable Borrower maintained with Chase for each payment of
principal, interest and fees as it becomes due hereunder or any other amount due under the Loan
Documents.

     (c) Notwithstanding any other provision of this Agreement to the contrary, all payments of
Obligations hereunder by (i) a Domestic Loan Party shall be made to the Agent, the Canadian
Correspondent Lender, and/or the UK Correspondent Lender (ii) a Canadian Loan Party shall be made
to the Canadian Correspondent Lender or the UK Correspondent Lender, and (iii) a UK Loan Party
shall be made to the UK Correspondent Lender or the Canadian Correspondent Lender.

     2.18. Apportionment, Application and Reversal of Payments. Except as otherwise
required pursuant to the provisions of this Agreement, principal and interest payments shall be
apportioned ratably among the Lenders as set forth in this Article II and payments of the
fees shall, as applicable, be apportioned ratably among the Lenders, except for fees payable solely
to the Agent and the LC Issuer and except as provided in this Article II. All payments
(other than those collected pursuant to Section 16.2) shall be remitted to the Agent,
Canadian Correspondent Lender or UK Correspondent Lender, as the case may be, and all such payments
not relating to principal or interest of specific Loans or not constituting payment of specific
fees as specified by the Domestic Borrower or otherwise, and all proceeds of any Collateral
received by the Agent, Canadian Correspondent Lender, or UK Correspondent Lender, as the case may
be, shall be applied, ratably, subject to the provisions of this Agreement, first, to pay
any fees, indemnities, or expense reimbursements including amounts then due to the Agent from the
applicable Borrower (other than in connection with Banking Services or Rate Management
Obligations),

 

 

second, to pay any fees or expense reimbursements then due to the Lenders
from the applicable Borrower (other than in connection with Banking Services or Rate Management
Obligations), third, to pay interest due in respect of such Borrower’s Loans, including
Non-Ratable Loans, Overadvances and Protective Advances, fourth, to pay or prepay principal
of the Non-Ratable Loans, Overadvances and Protective Advances, fifth, to pay or prepay
principal of the Loans (other than Non-Ratable Loans, Overadvances and Protective Advances) and
unpaid reimbursement obligations in respect of Facility LCs, sixth, to pay an amount to the
Agent equal to one hundred five percent (105%) of the aggregate undrawn face amount of all
outstanding Facility LCs and the aggregate amount of any unpaid reimbursement obligations in
respect of Facility LCs, to be held as cash collateral for such Obligations, seventh, to
payment of any amounts owing with respect to Banking Services and Rate Management Obligations, and
eighth, to the payment of any other Obligation due to the Agent or any Lender by the
Borrower. Notwithstanding anything to the contrary contained in this Agreement, unless so directed
by the Domestic Borrower, or unless a Default is in existence, neither the Agent nor any Lender
shall apply any payment which it receives to any Fixed Rate Loan, except (a) on the expiration date
of the Interest Period applicable to any such Fixed Rate Loan or (b) in the event, and only to the
extent, that there are no outstanding Floating Rate Loans and, in any event, the applicable
Borrower shall pay the breakage losses in accordance with Section 3.4. The Agent and the
Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all
such proceeds and payments to any portion of the Obligations. Furthermore, notwithstanding
anything to the contrary contained in this Agreement, in no event shall any payment made by a
Canadian Loan Party or a UK Loan Party for any reason whatsoever or any proceeds of Collateral
owned by the Canadian Borrower or the UK Borrower be applied to any Obligation other than the
Canadian Obligations or the UK Obligations.

     2.19. Settlement. Each Lender’s funded portion of the Loans is intended by the
Lenders to be equal at all times to such Lender’s Pro Rata Share of the outstanding Loans.
Notwithstanding such agreement, the Agent, Chase, and the Lenders agree (which agreement shall not
be for the benefit of or enforceable by the Loan Parties) that in order to facilitate the
administration of this Agreement and the other Loan Documents, settlement among them as to the
Loans, including the Non-Ratable Loans, Overadvances, and Protective Advances shall take place on a
periodic basis in accordance with the following provisions:

     (a) Each Applicable Agent shall, except as otherwise provided in Section 2.2, request
settlement (a “Settlement”) with the Lenders on at least a weekly basis, or on a more
frequent basis at the Agent’s election, (i) for itself, with respect to each Non-Ratable Loan,
Overadvance and Protective Advance, and (ii) with respect to collections received, in each case, by
notifying the Lenders of such requested Settlement by telecopy, telephone, or e-mail no later than
noon (local time) on the date of such requested Settlement (the “Settlement Date”). Each
Lender (other than the Applicable Agent, in the case of the Non-Ratable Loans, Overadvances and
Protective Advances) shall transfer the amount of such Lender’s Pro Rata Share of the outstanding
principal amount of the applicable Loan with respect to which Settlement is requested to the
Applicable Agent, to such account of the Applicable Agent as the Applicable Agent may designate,
not later than 2:00 p.m. (local time), on the Settlement Date applicable thereto. Settlements may
occur during the existence of a Default or an Unmatured Default and whether or not the applicable
conditions precedent set forth in Section 4.2 have then been

 

 

satisfied. Such amounts
transferred to the Applicable Agent shall be applied against the amounts of the applicable Loan
and, together with the Applicable Agent’s Pro Rata Share of such Non-Ratable Loan, Overadvances or
Protective Advance, shall constitute Loans of such Lenders, respectively. If any such amount is
not transferred to the Applicable Agent by any Lender on the Settlement Date applicable thereto,
the Applicable Agent shall be entitled to recover such amount on demand from such Lender together
with interest thereon as specified in Section 2.23.

     (b) From and after the date, if any, on which any Lender is required to fund its participation
in any Non-Ratable Loan, Overadvances or Protective Advance purchased pursuant to Section
2.2, the Applicable Agent shall promptly distribute to such Lender, such Lender’s Pro Rata
Share of all payments of principal and interest and all proceeds of Collateral received by the
Applicable Agent in respect of such Loan.

     (c) The Agent shall pay all amounts it owes hereunder to the Lenders in Dollars. The Canadian
Correspondent Agent shall pay all amounts it owes hereunder to the Lenders in Canadian Dollars.
The UK Correspondent Lender shall pay all amounts it owes hereunder to the Lenders in Pounds
Sterling. To the extent that any Lender is unable to accept any such amount in Canadian Dollars or
Pounds Sterling, the Canadian Correspondent Lender or UK Correspondent Lender, as the case may be,
may, in its sole discretion, convert such amount into Dollars at its then existing exchange rate,
which may not be the lowest exchange rate available, and remit such amounts to such Lender. The
Canadian Correspondent Lender and the UK Correspondent Lender shall not be liable to any Lender for
action taken in connection with converting currency pursuant to this subsection 2.19(c),
except with respect to mathematical miscalculations.

     2.20. Indemnity for Returned Payments. If after receipt of any payment which is
applied to the payment of all or any part of the Obligations, the Agent or any Lender is for any
reason compelled to surrender such payment or proceeds to any Person because such payment or
application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or
voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other
reason, then the Obligations or part thereof intended to be satisfied shall be revived and
continued and this Agreement shall continue in full force as if such payment or proceeds had not
been received by the Agent or such
Lender and the Domestic Borrower, the Canadian Borrower, or UK Borrower, as the case may be, shall
be liable to pay to the Agent and/or the Lenders, and such Borrower hereby indemnifies the Agent
and/or the Lenders and holds the Agent and/or the Lenders harmless for the amount of such payment
or proceeds surrendered. The provisions of this Section 2.20 shall be and remain effective
notwithstanding any contrary action which may have been taken by the Agent or any Lender in
reliance upon such payment or application of proceeds, and any such contrary action so taken shall
be without prejudice to the Agent’s and the Lenders’ rights under this Agreement and shall be
deemed to have been conditioned upon such payment or application of proceeds having become final
and irrevocable. The provisions of this Section 2.20 shall survive the termination of this
Agreement.

     2.21. Notes; Evidence of Indebtedness.

 

 

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

     (b) The Agent, the Canadian Correspondent Lender and the UK Correspondent Lender shall also
maintain accounts in which they will record (i) the amount of each Loan extended hereunder, the
Type thereof and the Interest Period with respect 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,
(iii) the original stated amount of each Facility LC and the amount of LC Obligations outstanding
at any time, and (iv) the amount of any sum received by the Applicable Agent hereunder from each
Borrower and each Lender’s share thereof.

     (c) The entries maintained in the accounts maintained pursuant to paragraphs (a) and (b) above
shall be prima facie evidence of the existence and amounts of the Obligations therein recorded;
provided however, that the failure of the Agent or any Lender to maintain such accounts or any
error therein shall not in any manner affect the obligation of the Borrowers to repay their
respective Obligations in accordance with their terms.

     (d) The Loans by each Lender will be evidenced by a promissory note in substantially the form
of (i) Exhibit C for Domestic Revolving Loans (each, a “Domestic Revolving Note”),
(ii) Exhibit K for Canadian Revolving Loans, (each, a “Canadian Revolving Note,”
and (iii) Exhibit L for UK Fixed Rate Loans (each, a “UK Revolving Note”).

     2.22. Lending Installations. Subject to the other provisions of this Agreement, each
Lender may book its Loans and its participation in any LC Obligations and the LC Issuer may book
the Facility LCs at any Lending Installation selected by such Lender or the LC Issuer, as the case
may be, and may change its Lending Installation from time to time, including, without limitation,
with respect to Harris Trust & Savings Bank, Bank of Montreal – Toronto Branch and Bank of Montreal
- London. All terms of this Agreement shall apply to any such Lending Installation and the Loans,
Facility LCs, participations in LC Obligations and any Revolving Notes issued hereunder shall be
deemed held
by each Lender or the LC Issuer, as the case may be, for the benefit of any such Lending
Installation. Each Lender and the LC Issuer may, by written notice to the Agent and the Domestic
Borrower in accordance with Article XIII, designate replacement or additional Lending
Installations through which Loans will be made by it or Facility LCs will be issued by it and for
whose account Loan payments or payments with respect to Facility LCs are to be made.

     2.23. Non-Receipt of Funds by the Agent; Defaulting Lenders

     (a) Unless the Domestic Borrower, or a Lender, as the case may be, notifies the Applicable
Agent prior to the date on which it is scheduled to make payment to the Applicable Agent of (i) in
the case of a Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a payment of
principal, interest or fees to the Applicable Agent for the account of the Lenders, that it does
not intend to make such payment, the Applicable Agent may assume that such payment has been made.
The Applicable Agent may, but shall not be obligated to, make the amount of

 

 

such payment available
to the intended recipient in reliance upon such assumption. If such Lender or such Borrower, as
the case may be, has not in fact made such payment to the Applicable Agent, the recipient of such
payment shall, on demand by the Applicable Agent, repay to the Applicable Agent the amount so made
available together with interest thereon in respect of each day during the period commencing on the
date such amount was so made available by the Applicable Agent until the date the Applicable Agent
recovers such amount at a rate per annum equal to (x) in the case of payment by a Lender, the
Federal Funds Effective Rate for such day for the first three days and, thereafter, the interest
rate applicable to the relevant Loan or (y) in the case of payment by the Borrower, the interest
rate applicable to the relevant Loan.

     (b) If a payment has not been made by a Lender and failure to make such payment constitutes a
default by such Lender of its obligations hereunder (a “Defaulting Lender”), the Applicable
Agent will notify the applicable Borrowers of such failure to fund and, upon demand by the
Applicable Agent, the applicable Borrowers shall pay such amount to the Applicable Agent for the
Applicable Agent’s account, together with interest thereon for each day elapsed since the Borrowing
Date at a rate per annum equal to the interest rate applicable to the relevant Loan. The
Applicable Agent shall not be obligated to transfer to a Defaulting Lender any payments made by any
Borrower to the Applicable Agent for the Defaulting Lender’s benefit, and, in the absence of such
transfer to the Defaulting Lender, the Applicable Agent shall transfer any such payments to each
other non-Defaulting Lender ratably in accordance with their Pro Rata Share of the applicable
commitment (but only to the extent that such Defaulting Lender’s Advance was funded by the other
Lenders) or, if so directed by the applicable Borrowers and if no Unmatured Default or Default has
occurred and is continuing (and to the extent such Defaulting Lender’s Advance was not funded by
the other Lenders), retain the same to be re-advanced to the applicable Borrowers as if such
Defaulting Lender had made Advances to the applicable Borrowers. Subject to the foregoing, the
Applicable Agent may hold and, in its Permitted Discretion, setoff such Defaulting Lender’s funding
shortfall against that Defaulting Lender’s Pro Rata Share of all payments received from the
applicable Borrowers or re-lend to the applicable Borrowers for the account of such Defaulting
Lender the amount of all such payments received and retained by the Applicable Agent for the
account of such Defaulting
Lender. Until a Defaulting Lender cures its failure to fund its Pro Rata Share of any Advance (i)
solely for the purposes of voting or consenting to matters with respect to the Loan Documents, such
Defaulting Lender shall be deemed not to be a “Lender” and such Defaulting Lender’s Commitment
shall be deemed to be zero, (ii) such Defaulting Lender shall not be entitled to any portion of the
Unused Commitment Fee and (iii) the Unused Commitment Fee shall accrue in favor of the Lenders
which have funded their respective Pro Rata Shares of such requested Advance and shall be allocated
among such non-Defaulting Lenders ratably based on their Pro Rata Share of the Commitment. This
Section shall remain effective with respect to such Defaulting Lender until (1) the Obligations
under this Agreement shall have been declared or shall have become immediately due and payable, (2)
the non-Defaulting Lenders, the Applicable Agent, and the applicable Borrowers shall have waived
such Defaulting Lender’s default in writing, or (3) the Defaulting Lender makes its Pro Rata Share
of the applicable Advance and pays to the Applicable Agent all amounts owing by the Defaulting
Lender in respect thereof. The operation of this Section shall not be construed to increase or
otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such
Defaulting Lender or

 

 

any other Lender of its duties and obligations hereunder, or to relieve or
excuse the performance by the Borrower of its duties and obligations hereunder.

     2.24. Fixed Charge Coverage Ratio Condition.

     (a) The Domestic Borrower shall provide immediate written notice to the Agent and the Lenders
at any time that the Fixed Charge Coverage Ratio Condition exists or, within the next three months,
is reasonably likely to exist. During any Fixed Charge Condition Period, in addition to the other
requirements and conditions set forth in this Agreement, the Borrower shall (i) not request any
Loan or Facility LC, and the Lenders or the Agent shall not be obligated to make any Loan and the
LC Issuer shall not be obligated to issue any Facility LC on behalf of the Lenders, unless the
proceeds of such Loan or the purpose of the Facility LC transaction and all other Indebtedness
incurred hereunder shall constitute Permitted Debt (as defined in the Indenture), (ii) certify that
any loan made or Facility LC issued constitute Permitted Debt (as defined in the Indenture) on each
Borrowing Base Certificate and Borrowing Base Report submitted to the Agent and (iii) immediately
repay the Loans and the Reimbursement Obligations to the extent such amounts exceed the amount of
Permitted Debt as defined in the Indenture.

     (b) Notwithstanding anything in this Section 2.24 or elsewhere in this Agreement to
the contrary, if, at any time, the Agent, in its sole discretion, shall be unable to agree with the
Domestic Borrower that any Loan made or Facility LC issued, or requested to be made or issued,
during the Fixed Charge Condition Period constitutes Permitted Debt (as defined in the Indenture),
then the Lenders shall not be obligated to make any Loan and the Agent shall not be obligated to
issue any Facility LC until such time as any uncertainty is resolved in a manner reasonably
satisfactory to the Agent.

     2.25. Designated Senior Debt. The Agent, Lenders, the LC Issuer and the Domestic
Borrower hereby designate all Indebtedness and
all other obligations now or hereafter incurred or otherwise outstanding under any Loan
Document to be “Designated Senior Debt” as set forth and defined in the Indenture.

     2.26 Change of Currency. If at any time the Euro becomes the lawful currency unit in
the United Kingdom, this Agreement will, to the extent the Agent (acting reasonably and after
consultation with the Domestic Borrower) specifies to be necessary, be amended to comply with any
generally accepted conventions and market practice in the relevant inter bank market and otherwise
to reflect the change in currency.

     2.27 Exchange Rate Fluctuations. The Agent shall at all times monitor the Dollar
Equivalent of all outstanding Canadian Advances and UK Advances, the amount of the UK Overdraft
Commitment, and the amount of the UK LC Obligations. If due to changes in the exchange rate
between Dollars and Canadian Dollars or Dollars and Pounds Sterling, the Aggregate Canadian
Exposure exceeds the Aggregate Canadian Commitment or the Aggregate UK Exposure exceeds the
Aggregate UK Commitment, then the Agent may in its sole discretion, refuse to permit any further
Canadian Revolving Loans or UK Fixed Rate Loans to be borrowed, continued or converted, or may
require that the Domestic Borrower, the UK Borrower or the

 

 

Canadian Borrower, as the case may be,
to pay or prepay such excess amounts in respect of any outstanding Loans as the Agent may request
in writing to the applicable Borrower (such payment to be made within 2 Business Days of the
Agent’s request therefor).

     2.28 Option to Increase.

     (a) The Domestic Borrower may, at any time, deliver a written request to the Agent
to increase the Domestic Commitment (with a corresponding increase in the Aggregate Commitment).
Any such written request shall specify the amount of the increase in the Domestic Commitment that
the Domestic Borrower is requesting, provided, that, (i) in no event shall the
aggregate amount of all such increases in the Domestic Commitment during the term of this Agreement
exceed $20,000,000, (ii) any such request shall be for an increase of not less than $5,000,000 and
in multiples of $1,000,000 in excess thereof, and (iii) any such request shall be irrevocable.

     (b) Upon the receipt by the Agent of any such written request, the Agent shall
notify such Lenders as the Agent may determine in its sole and absolute discretion of such request
and, except as otherwise agreed to by the Agent with any Lender, such Lender shall have the option
(but not the obligation) to increase the amount of its Commitment by an amount requested by the
Agent. Each such Lender shall notify the Agent within ten (10) days after the receipt of such
notice from the Agent whether it is willing to so increase its Commitment, and if so, the amount of
such increase; provided, that, no Lender shall be obligated to provide such
increase in its Commitment and the determination to increase the Commitment of a Lender shall be
within the sole and absolute discretion of such Lender. If the aggregate amount of the increases
in the Commitments received from the applicable Lenders does not equal or exceed the amount of the
increase in the Domestic Commitment requested by the Domestic Borrower, the Agent may seek
additional increases from such Lenders as the Agent may determine in its sole and absolute
discretion. In the event the Lenders have committed in writing to provide increases in their
Commitments in an aggregate amount in excess of the increase in the Domestic Commitment
requested by the Domestic Borrower or permitted hereunder, the Agent shall then have the right
to allocate such Commitments in such amounts and manner as the Agent may determine in its sole and
absolute discretion.

     (c) The Domestic Borrower shall pay to the Agent, for the account of each
participating Lender ratably in accordance with such Lender’s Pro Rata Share of the increase in the
Domestic Commitment, a fee of .20% of the amount of the increase in the Domestic Commitment.

     (d) The Domestic Commitment shall be increased by the amount of the increase in the
Commitments from the Lenders effective on the date that each of the following conditions have been
satisfied:

     (i) The Agent shall have received from each Lender that is providing an
additional Commitment as part of the increase in the Domestic Commitment, an agreement
acceptable to the Agent duly executed by such Lender and the Domestic Borrower;

 

 

     (ii) the conditions precedent to the making of any Credit Extension set forth
in Section 4.2 shall be satisfied as of the date of the increase in the Domestic
Commitment, both before and after giving effect to such increase;

     (iii) the Agent shall have received, in form and substance satisfactory to
the Agent, a certificate of the Chief Financial Officer of each Loan Party certifying, among
other things, that any such increase in the Domestic Commitment, the performance of the
terms and conditions of this Agreement and the other Loan Documents and the incurrence of
Obligations by the Loan Parties (A) are within each Loan Party’s corporate or limited
liability company powers, (B) have been duly authorized by each Loan Party, (C) are not in
contravention of law or the terms of any Loan Party’s certificate of incorporation,
certificate of formation, by laws, operating agreement or other organizational
documentation, the Indenture or any agreement or undertaking to which any Loan Party is a
party or by which any Loan Party or its property are bound, and (D) will not result in the
creation or imposition of, or require or give rise to any obligation to grant, any Lien,
security interest, charge or other encumbrance upon any property of any Loan Party, other
than Permitted Liens and Liens in favor of the Agent;

     (iv) the Agent shall have received such other agreements, documents and
instruments as the Agent may request, in form and substance satisfactory to the Agent;

     (v) such increase in the Domestic Commitment on the date of the effectiveness
thereof shall not violate any applicable law, regulation or order or decree of any court or
other governmental authority and shall not be enjoined, temporarily, preliminarily or
permanently; and

     (vi) each Lender providing an additional Commitment in connection with such
increase in the Domestic Commitment shall have received all fees (including any additional
commitment fees) and the Agent shall have received all fees and expenses
(including reasonable attorneys’ fees) in each case due and payable to such Person on
or before the effectiveness of such increase.

     (e) As of the effective date of any increase in the Domestic Commitment pursuant to
this Section 2.28, each reference to the terms Domestic Commitment and Aggregate Commitment
herein and in any of the other Loan Documents shall be deemed to have been amended to mean the
amount of the Domestic Commitment and Aggregate Commitment specified in the most recent written
notice from the Agent to the Domestic Borrower of the increase in the Domestic Commitment and
Aggregate Commitment.

ARTICLE III

YIELD PROTECTION; TAXES

     3.1. Yield Protection. If, on or after the Effective Date, the adoption of any law or
any governmental or quasi-governmental rule, regulation, policy, guideline or directive (whether or
not having the force of law), or any change in the interpretation or administration thereof by any
governmental or quasi-governmental authority, central bank or comparable agency charged with

 

 

the
interpretation or administration thereof, or compliance by any Lender or applicable Lending
Installation or the LC Issuer with any request or directive (whether or not having the force of
law) of any such authority, central bank or comparable agency:

     (a) subjects any Lender or any applicable Lending Installation or the LC Issuer to any Taxes,
or changes the basis of taxation of payments (other than with respect to Excluded Taxes) to any
Lender or the LC Issuer in respect of its Fixed Rate Loans, Facility LCs or participations therein,
or

     (b) imposes or increases or deems applicable any reserve, assessment, insurance charge,
special deposit or similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Lender or any applicable Lending Installation or the LC Issuer (other than
reserves and assessments taken into account in determining the interest rate applicable to Fixed
Rate Advances), or

     (c) imposes any other condition the result of which is to increase the cost to any Lender or
any applicable Lending Installation or the LC Issuer of making, funding or maintaining its Fixed
Rate Loans, or of issuing or participating in Facility LCs, or reduces any amount receivable by any
Lender or any applicable Lending Installation or the LC Issuer in connection with its Fixed Rate
Loans, Facility LCs or participations therein, or requires any Lender or any applicable Lending
Installation or the LC Issuer to make any payment calculated by reference to the amount of Fixed
Rate Loans, Facility LCs or participations therein held or interest or LC Fees received by it, by
an amount deemed material by such Lender or the LC Issuer as the case may be, and the result of any
of the foregoing is to increase the cost to such Lender or applicable Lending Installation or the
LC Issuer, as the case may be, of making or maintaining its Fixed Rate Loans or Commitment or of
issuing or participating in Facility LCs or to reduce the return received by such Lender or
applicable Lending Installation or the LC Issuer,
as the case may be, in connection with such Fixed Rate Loans, Commitment, Facility LCs or
participations therein, then, within 15 days of demand by such Lender or the LC Issuer, as the case
may be, the Borrower shall pay such Lender or the LC Issuer, as the case may be, such additional
amount or amounts as will compensate such Lender or the LC Issuer, as the case may be, for such
increased cost or reduction in amount received.

     3.2. Changes in Capital Adequacy Regulations If a Lender or the LC Issuer determines
the amount of capital required or expected to be maintained by such Lender or the LC Issuer, any
Lending Installation of such Lender or the LC Issuer, or any corporation controlling such Lender or
the LC Issuer is increased as a result of a “Change,” then, within 15 days of demand by
such Lender or the LC Issuer, the Borrower shall pay such Lender or the LC Issuer the amount
necessary to compensate for any shortfall in the rate of return on the portion of such increased
capital which such Lender or the LC Issuer determines is attributable to this Agreement, its Credit
Exposure or its Commitment to make Loans and issue or participate in Facility LCs, as the case may
be, hereunder (after taking into account such Lender’s or the LC Issuer’s policies as to capital
adequacy). “Change” means (i) any change after the date of this Agreement in the
Risk-Based Capital Guidelines (as defined below) or (ii) any adoption of or change in any other
law, governmental or quasi-governmental rule, regulation, policy, guideline, interpretation, or
directive (whether or not having the force of law) after the date of this

 

 

Agreement which affects
the amount of capital required or expected to be maintained by any Lender or the LC Issuer or any
Lending Installation or any corporation controlling any Lender or the LC Issuer. “Risk-Based
Capital Guidelines” means (i) the risk-based capital guidelines in effect in the U.S. on the
date of this Agreement, including transition rules, and (ii) the corresponding capital regulations
promulgated by regulatory authorities outside the U.S. implementing the July 1988 report of the
Basle Committee on Banking Regulation and Supervisory Practices Entitled “International Convergence
of Capital Measurements and Capital Standards,” including transition rules, and any amendments to
such regulations adopted prior to the date of this Agreement.

     3.3. Availability of Types of Advances. If any Lender determines that maintenance of
its Fixed Rate Loans at a suitable Lending Installation would violate any applicable law, rule,
regulation, or directive, whether or not having the force of law, or if the Required Lenders
determine that (i) deposits of a type and maturity appropriate to match fund Fixed Rate Advances
are not available or (ii) the interest rate applicable to Fixed Rate Advances does not accurately
reflect the cost of making or maintaining Fixed Rate Advances, then the Agent shall suspend the
availability of Fixed Rate Advances and require any affected Fixed Rate Advances to be repaid or
converted to Floating Rate Advances, subject to the payment of any funding indemnification amounts
required by Section 3.4.

     3.4. Funding Indemnification. If any payment of a Fixed Rate Advance occurs on a date
which is not the last day of the applicable Interest Period, whether because of acceleration,
prepayment or otherwise, or a Fixed Rate Advance is not made on the date specified by the Domestic
Borrower, for any reason other than default by the Lenders, the Borrower will indemnify each Lender
for any loss or cost incurred by
it resulting therefrom, including, without limitation, any loss or cost in liquidating or employing
deposits acquired to fund or maintain such Fixed Rate Advance.

     3.5. Taxes.

     (a) All payments by the Borrower to or for the account of any Lender, the LC Issuer or the
Agent hereunder or under any Revolving Note or Facility LC Application shall be made free and clear
of and without deduction for any and all Taxes. If the Borrower shall be required by law to deduct
any Taxes from or in respect of any sum payable hereunder to any Lender, the LC Issuer or the
Agent, (a) 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
3.5) such Lender, the LC Issuer or the Agent (as the case may be) receives an amount equal to
the sum it would have received had no such deductions been made, (b) the Borrower shall make such
deductions, (c) the Borrower shall pay the full amount deducted to the relevant authority in
accordance with applicable law, (d) the Borrower shall furnish to the Agent the original copy of a
receipt evidencing payment thereof within thirty days after such payment is made, and (e) and if
any such Lender or LC Issuer receives a credit against, remission for, or repayment of any tax paid
or payable by it in respect of or calculated with reference to the taxes giving rise to such
payment, such Lender or LC Issuer shall, within a reasonable time after it receives such credit,
remission or repayment, reimburse the Borrowers the amount of any such credit, remission or
repayment.

 

 

     (b) In addition, the Borrower hereby agrees to pay any present or future stamp or documentary
taxes and any other excise or property taxes, charges or similar levies which arise from any
payment made by it hereunder or under any Revolving Note or Facility LC Application or from the
execution or delivery of, or otherwise with respect to, this Agreement or any Revolving Note or
Facility LC Application (“Other Taxes”).

     (c) The Borrower hereby agrees to indemnify the Agent, the LC Issuer and each Lender for the
full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed on amounts payable under this Section 3.5) paid by the Agent, the LC Issuer or such
Lender as a result of its Commitment, any Loans made by it hereunder, any Facility LC issued
hereunder or otherwise in connection with its participation in this Agreement and any liability
(including penalties, interest and expenses) arising therefrom or with respect thereto. Payments
due under this indemnification shall be made within thirty days of the date the Agent, the LC
Issuer or such Lender makes demand therefor pursuant to Section 3.6.

     (d) Each Lender, other than Bank of Montreal, Toronto Branch and Bank of Montreal, London
Branch, that is not incorporated under the laws of the U.S. or a state thereof (each a
“Non-U.S. Lender”) agrees that it will (if it has not already done so), not more than five
days after the date that it enters into this Agreement, (i) deliver to the Domestic Borrower and
the Agent two duly completed copies of U.S. Internal Revenue Service Form W-8BEN or W-8ECI,
certifying in either case that such Lender is entitled to receive payments under this Agreement
without deduction or withholding of any U.S. federal income taxes, and (ii) deliver to the Agent a
U.S. Internal Revenue Form W-8 or W-9, as the case may be, and certify that it is entitled to an
exemption from U.S. backup withholding tax, along with any additional certifications reasonably
required by the Domestic Borrower attesting to such Non-U.S. Lender’s qualification for exemption
from withholding tax. Each Non-U.S. Lender further undertakes to deliver to each of the Domestic
Borrower and the Agent (x) renewals or additional copies of such form (or any successor form) on or
before the date that such form expires or becomes obsolete, and (y) after the occurrence of any
event requiring a change in the most recent forms so delivered by it, such additional forms or
amendments thereto as may be reasonably requested by the Domestic Borrower or the Agent. All forms
or amendments described in the preceding sentence shall certify that such Non-U.S. Lender is
entitled to receive payments under this Agreement without deduction or withholding of any U.S.
federal income taxes, unless an event (including without limitation any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would otherwise be required
which renders all such forms inapplicable or which would prevent such Non-U.S. Lender from duly
completing and delivering any such form or amendment with respect to it and such Non-U.S. Lender
advises the Domestic Borrower and the Agent that it is not capable of receiving payments without
any deduction or withholding of U.S. federal income tax.

     (e) For any period during which a Non-U.S. Lender has failed to provide the Domestic Borrower
with the form specified in the first sentence of Section 3.5(d) above (unless such failure
is due to a change in treaty, law or regulation, or any change in the interpretation or
administration thereof by any governmental authority, occurring subsequent to the date on which a
form originally was required to be provided), such Non-U.S. Lender shall not be entitled to

 

 

payment
under this Section 3.5 with respect to Taxes imposed by the U.S. attributable to such
failure; provided that, should a Non-U.S. Lender which is otherwise exempt from or subject to a
reduced rate of withholding tax become subject to Taxes because of its failure to deliver a form
required under Section 3.5(d), above, the Domestic Borrower shall take such steps as such
Non-U.S. Lender shall reasonably request to assist such Non-U.S. Lender to recover such Taxes.

     (f) Any Lender that is entitled to an exemption from or reduction of withholding tax with
respect to payments under this Agreement or any Revolving Note pursuant to the law of any relevant
jurisdiction or any treaty shall deliver to the Domestic Borrower (with a copy to the Agent), at
the time or times prescribed by applicable law, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a
reduced rate. If any such Lender applies for relief, as required by below, but is denied such
relief, it shall deliver to the Domestic Borrower (with a copy to the Agent), the appropriate
documentation setting forth the reason for such denial, and the Borrowers shall continue to make
the payments required pursuant to Subsection 3.5(a).

     (g) If the U.S. Internal Revenue Service or any other governmental authority of the U.S. or
any other country or any political subdivision thereof asserts a claim that the Agent did not
properly withhold tax from amounts paid to or for the account of any Lender (because the
appropriate form was not delivered or properly completed, because such Lender failed to notify the
Agent of a change in circumstances which rendered its exemption from withholding ineffective, or
for any other reason), such Lender shall indemnify the Agent fully for all amounts paid, directly
or indirectly, by the Agent as tax, withholding therefor, or otherwise, including penalties and
interest, and including taxes imposed by any jurisdiction on amounts payable to the Agent under
this subsection, together with all costs and expenses related thereto (including
attorneys fees and time charges of attorneys for the Agent, which attorneys may be employees of the
Agent). The obligations of the Lenders under this Section 3.5(g) shall survive the payment
of the Obligations and termination of this Agreement.

     (h) A Borrower is not required to make an increased payment to a Lender under this Section
3.5 for a Tax Deduction in respect of tax imposed by the UK from a payment of interest, if on
the date on which the payment falls due:

(i) the payment could have been made to the relevant Lender without a Tax
Deduction if such Lender was a UK Qualifying Lender, but on that date that Lender is
not or has ceased to be a UK 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 UK Treaty, or any published practice or
published concession of any relevant taxing authority; or

	 	(ii)	 	(A) the relevant Lender is a UK Non-Bank Lender, or would have
been a UK Non-Bank Lender were it not for any change after the date it became a
Lender under this Agreement in (or in the interpretation, administration, or
application of) any law or UK Treaty, or any published practice or concession
of any relevant taxing authority; and

 

 

	 	 	 	(B) the Board of the Inland Revenue has given (and not revoked) a direction
under section 349C of the UK Taxes Act (as that provision has effect on the
date on which the relevant Lender became a party to this Agreement) that
relates to that payment and that a Borrower has notified that UK Non-Bank
Lender of the precise terms of that notice;

(iii) the relevant Lender is a UK Treaty Lender and the Borrower making the payment
is able to demonstrate that the payment could have been made to the Lender without
the Tax Deduction had that Lender complied with its obligations under Subsection
3.5(i) below.

     (i) Without limiting each Lender’s rights to under Subsection 3.5(a) above, within a
reasonable amount of time, each UK Treaty Lender, the Agent and each Borrower that is required to
or will make a payment to which that UK Treaty Lender is entitled shall co-operate in completing
and shall each complete any procedural formalities necessary for that Borrower to obtain
authorization to make that payment without a Tax Deduction.

     (j) A UK Non-Bank Lender shall promptly notify the Domestic Borrower and the Agent if there is
any change in the position from that set out in the UK Tax Confirmation.

     (k) If a Borrower makes a Tax Payment and the relevant Lender determines that:

	 	(i)	 	a Tax Credit is attributable either to an increased payment of
which that Tax Payment forms part, or to that Tax Payment; and
	 
	 	(ii)	 	that Lender has obtained, utilized or retained that Tax Credit,

the Lender shall pay an amount to the Borrower which that Lender determines will leave it (after
that payment) in the same after-Tax position as it would have been in had the Tax Payment not been
made by the Borrower.

     (l) Chase represents and warrants to, and covenants with, the Borrowers that it is, as of the
Effective Date (i) not a non-resident of Canada within the meaning, for all purposes, of the Income
Tax Act (Canada), or (ii) it is a Schedule III Bank that will receive amounts under the Loan
Documents in connection with its Canadian banking business within the meaning of the Income Tax Act
(Canada) and such Lender covenants and agrees with the Borrowers and the Agent that if its status
changes it will notify the Borrowers and the Agent within 3 Business Days of such change.

     3.6. Lender Statements; Survival of Indemnity. To the extent reasonably possible, each
Lender shall designate an alternate Lending Installation with respect to its Fixed Rate Loans to
reduce any liability of the Borrower to such Lender under Sections 3.1, 3.2 and 3.5 or to
avoid the unavailability of Fixed Rate Advances under Section 3.3, so long as such
designation is not, in the judgment of such Lender, disadvantageous to such Lender. Each Lender
shall deliver a written statement of such Lender to the Domestic Borrower (with a copy to the
Agent), as to the amount due, if any, under Section 3.1, 3.2, 3.4 or 3.5. Such written
statement shall set forth in

 

 

reasonable detail the calculations upon which such Lender determined
such amount and shall be final, conclusive and binding on the Borrower in the absence of manifest
error. Determination of amounts payable under such Sections in connection with a Fixed Rate Loan
shall be calculated as though each Lender funded its Fixed Rate Loan through the purchase of a
deposit of the type and maturity corresponding to the deposit used as a reference in determining
the interest rate applicable to such Loan, whether in fact that is the case or not. Unless
otherwise provided herein, the amount specified in the written statement of any Lender shall be
payable on demand after receipt by the Domestic Borrower of such written statement. The
obligations of the Borrower under Sections 3.1, 3.2, 3.4 and 3.5 shall survive payment of
the Obligations and termination of this Agreement, and in the case of obligations under Section
3.5, shall terminate
upon the expiration of all statute of limitation periods applicable to the final tax year in which
this Agreement is in effect.

ARTICLE IV

CONDITIONS PRECEDENT

     4.1. Effectiveness This Agreement will not become effective unless the Loan Parties
have satisfied each of the following conditions in a manner satisfactory to the Agent and the
Lenders, and with respect to any condition requiring delivery of any agreement, certificate,
document, or instrument, the Loan Parties shall have furnished to the Agent the requested number of
sufficient copies of any such agreement, certificate, document, or instrument for distribution to
the Lenders.

     (a) This Agreement or counterparts hereof shall have been duly executed by each Loan Party,
the Agent and the Lenders; and the Agent shall have received duly executed copies of the Loan
Documents and such other documents, instruments, and agreements, as the Agent shall reasonably
request in connection with the transactions contemplated by this Agreement and the other Loan
Documents, each in form and substance reasonably satisfactory to the Agent.

     (b) The Loan Parties shall have delivered an incumbency certificate, executed by its Company
Secretary or Assistant Secretary, which shall (i) identify by name and title and bear the
signatures of the Authorized Officers and any other officers such Loan Party authorized to sign the
Loan Documents to which such Loan Party is a party and (ii) include a copy of the resolutions of
such Loan Party approving the transactions contemplated by this Agreement and the other Loan
Documents, upon which certificate the Agent and the Lenders shall be entitled to rely until
informed of any change in writing by such Loan Party.

     (c) Each of the Canadian Borrower and the UK Borrower shall have delivered the necessary
Revolving Notes payable to the order of each Lender.

     (d) The Borrower shall have paid all of the fees and expenses of the Agent incurred in
connection with this Agreement.

 

 

     (e) The Loan Parties shall have delivered updated Schedules 1, 5.8, 5.23, 5.24, 5.26, 6.16
and 6.20.

     4.2. Each Credit Extension Except as otherwise expressly provided herein, the Lenders
shall not be required to make any Credit Extension if on the applicable Credit Extension Date:

     (a) There exists any Default or Unmatured Default or a Default or Unmatured Default shall
result from any such Credit Extension and the Agent or the Required Lenders shall have determined
not to make any Credit Extension as a result of such Default, Unmatured Default;

     (b) A Fixed Charge Coverage Ratio Condition exists or would result from any such Credit
Extension and the related Advance would not constitute Permitted Debt (as defined in the
Indenture);

     (c) Any representation or warranty contained in Article V is untrue or incorrect as of
such Credit Extension Date (except for representations and warranties that are made as of another
date, in which case such representation and warranties are true and correct as of such date), and
the Agent or the Required Lenders shall have determined not to make any Credit Extension as a
result of the fact that such representation or warranty is untrue or incorrect;

     (d) After giving effect to any Credit Extension, (i) if the applicable Credit Extension is a
Domestic Advance, there is no Domestic Availability, (ii) if the applicable Credit Extension is a
Canadian Advance, there is no Canadian Availability, (iii) if the applicable Credit Extension is a
UK Advance, there is no UK Availability, as the case may be, or (iv) regardless of the type of
Advance, there is no Availability; or

     (e) Any legal matter incident to the making of such Credit Extension shall not be satisfactory
to the Agent, the Lenders and their respective counsel.

Each Borrowing Notice or request for issuance of Facility LC with respect to each such Credit
Extension shall constitute a representation and warranty by the Borrower that the conditions
contained in Sections 4.1 (and Section 4.1 of the Existing Loan Agreement) have
been satisfied and that none of the conditions set forth in Section 4.2 exist as of any
Credit Extension Date.

     4.3. Post-Closing Conditions. Except as otherwise provided herein, the Lenders shall
not be required to make any Credit Extensions if:

     (a) within sixty (60) days after the Effective Date, the Loan Parties have not commenced
machinery and equipment appraisals, in each case as the Agent shall request and which shall be
acceptable to the Agent; and

     (b) within sixty (60) days after the Effective Date, the Loan Parties have not delivered
updated Schedules not provided under Section 4.1(e) on the Effective Date.

 

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     Each Loan Party represents and warrants to the Lenders as follows:

     5.1. Existence and Standing Each Loan Party is a corporation, partnership (in the
case of Subsidiaries only) or limited liability company duly and properly incorporated or
organized, as the case may be, validly existing and (to the extent such concept applies to such
entity) in good standing or in full force and effect under the laws of its jurisdiction of
incorporation or organization and has all requisite authority to conduct its business in each
jurisdiction in which
its business is conducted, except where the failure to have such requisite authority would not have
or cause a Material Adverse Effect.

     5.2. Authorization and Validity. Each Loan Party has the corporate, partnership or
limited liability company, as the case may be, power and authority and legal right to execute and
deliver the Loan Documents to which it is a party and to perform its obligations thereunder. The
execution and delivery by each Loan Party of the Loan Documents to which it is a party and the
performance of its obligations thereunder have been duly authorized by proper corporate or other
proper proceedings, as the case may be, and the Loan Documents to which such Loan Party is a party
constitute legal, valid and binding obligations of such Loan Party enforceable against such Loan
Party in accordance with their terms, except as enforceability may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors’ rights generally.

     5.3. No Conflict; Government Consent. Neither the execution and delivery by any Loan
Party of the Loan Documents to which it is a party, nor the consummation of the transactions
therein contemplated, nor compliance with the provisions thereof will violate (a) any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on such Loan Party, (b) any
Loan Party’s memorandum, articles or certificate of incorporation, partnership agreement,
certificate of partnership, articles or certificate of organization, by-laws, code of regulations,
or operating or other management agreement, as the case may be, or (c) the provisions of any
material indenture (including, without limitation, the Indenture), instrument or agreement to which
any Loan Party is a party or is subject, or by which it, or its Property, is bound, or conflict
with or constitute a default thereunder, or result in, or require, the creation or imposition of
any Lien (other than a Permitted Lien) in, of or on the Property of such Loan Party pursuant to the
terms of any such indenture (including, without limitation, the Indenture), instrument or
agreement. No order, consent, adjudication, approval, license, authorization, or validation of, or
filing (other than the filing of the UK collateral documents, if necessary, at Companies House in
the UK), recording or registration with, or exemption by, or other action in respect of any
governmental or public body or authority, or any subdivision thereof, which has not been obtained
by a Loan Party, is required to be obtained by any Loan Party in connection with the execution and
delivery of the Loan Documents, the borrowings under this Agreement, the payment and performance by
the Loan Parties of the Obligations or the legality, validity, binding effect or enforceability of
any of the Loan Documents.

 

 

     5.4. Security Interest in Collateral. The provisions of this Agreement and the other
Loan Documents create legal and valid Liens on all the Collateral in favor of the Applicable Agent,
for the benefit of the Applicable Agent and the Lenders, and such Liens constitute perfected and
continuing Liens on the Collateral, securing the Obligations, enforceable against the applicable
Loan Party and all third parties, and having priority over all other Liens on the Collateral except
in the case of (a) Permitted Liens, to the extent any such Permitted Liens would have priority over
the Liens for the benefit of the Applicable Agent and Lenders pursuant to any applicable law or
agreement and (b) Liens perfected only by possession (including possession of any certificate of
title) to the extent the Agent, the Canadian Correspondent Lender or the UK Correspondent Lender
has not obtained or does not maintain possession of such Collateral.

     5.5 Financial Statements.

     (a) The audited consolidated financial statements of the Domestic Borrower and its
Subsidiaries heretofore delivered to the Domestic Lenders and each of the other financial
statements now or hereafter delivered pursuant to Section 6.1(a) were prepared in
accordance with GAAP (as in effect on the date such statements were prepared) and fairly present in
all material respects the consolidated financial condition and operations of the Domestic Borrower
and its Subsidiaries at such date and the consolidated results of their operations for the period
then ended. The unaudited consolidated financial statements of the Domestic Borrower and its
Subsidiaries heretofore now or hereafter delivered by the Domestic Borrower to the Domestic Lenders
and each of the other financial statements delivered pursuant to Section 6.1(b) and (c)
were prepared in accordance with GAAP (as in effect on the date such statements were prepared
except for the presentation of footnotes and for applicable normal year-end audit adjustments) and
fairly present in all material respects the consolidated financial condition and operations of the
Domestic Borrower and its Subsidiaries at such date and the consolidated results of their
operations for the period then ended.

     (b) The most recent Projections when delivered to the Agent and the Domestic Lenders,
including Projections delivered pursuant to Section 6.1(d), represent the Domestic
Borrower’s good faith estimate (based on assumptions that the Domestic Borrower believed at the
time to be reasonable) of the future financial performance of the Domestic Borrower and its
Subsidiaries for the period(s) set forth therein.

     5.6. Material Adverse Change. Since March 31, 2007, there has been no change in the
business, Property, prospects, condition (financial or otherwise) or results of operations of the
Loan Parties which could reasonably be expected to have a Material Adverse Effect.

     5.7. Taxes. The Loan Parties have filed all U.S. federal, state and local tax returns
and all other material tax returns which are required to be filed and have paid all material taxes
due pursuant to said returns or pursuant to any assessment received by any Loan Party, except such
taxes, if any, as are being contested in good faith and as to which adequate reserves have been
provided in accordance with GAAP and as to which no Lien exists. No tax liens have been filed and
no claims are being asserted with respect to any such taxes. The charges, accruals and reserves on
the books of the Loan Parties in respect of any taxes or other governmental charges are adequate.

 

 

     5.8. Litigation and Contingent Obligations. Except as set forth on Schedule
5.8, there is no litigation, arbitration, governmental investigation, proceeding or inquiry
pending or, to the knowledge of any of their senior officers, threatened against or affecting any
Loan Party or ERISA Plan which could reasonably be expected to have a Material Adverse Effect or
which seeks to prevent, enjoin or delay the making of any Credit Extensions. Other than any
liability incident to any litigation, arbitration or proceeding which (i) could not reasonably be
expected to have a Material Adverse Effect or (ii) is set forth on Schedule 5.8, no Loan
Party has any material contingent obligations not provided for or disclosed in the financial
statements referred to in Section 5.5.

     5.9. Capitalization and Subsidiaries. Schedule 5.9 sets forth (a) a correct
and complete list of the name and relationship to each Loan Party of each and all of the their
Subsidiaries of each Loan Party, (b) the location of the chief executive office of each Loan Party
and each of their Subsidiaries and each other location where any of them have maintained their
chief executive office in the past five years, (c) a true and complete listing of each class of
each of Loan Party’s authorized Capital Stock, of which all of such issued shares are validly
issued, outstanding, fully paid and non-assessable, and owned beneficially and of record by the
Persons identified on Schedule 5.9, and (d) the type of entity of each Loan Party and each
of their Subsidiaries. With respect to each Loan Party, Schedule 5.9 also sets forth the
employer or taxpayer identification number of each Loan Party and the organizational identification
number issued by the jurisdiction of organization of each Loan Party or a statement that no such
number has been issued. All of the issued and outstanding Capital Stock owned by any Loan Party
has been (to the extent such concepts are relevant with respect to such ownership interests) duly
authorized and issued and is fully paid and non-assessable.

     5.10. ERISA. The Unfunded Liabilities of all Single Employer Plans do not in the
aggregate exceed $7,800,000. The aggregate withdrawal liability the Loan Parties and each member
of their Controlled Group would incur if all such persons were to incur a “complete withdrawal”
(within the meaning of ERISA Section 4203) from the Multiemployer Plans as of the Borrowing Date
does not exceed $4,000,000. No Loan Party or any other member of the Controlled Group has incurred,
or is reasonably expected to incur, any excise tax or penalty relating to an ERISA Plan, any
material liability to the PBGC or any withdrawal liability to Multiemployer Plans. Each ERISA Plan
complies and has been administered in all material respects with all applicable requirements of law
and regulations, no Reportable Event, prohibited transaction (as defined in ERISA Section 406 or
Code Section 4975) or breach of fiduciary duty under ERISA has occurred with respect to any Plan,
no Loan Party or any other member of a Controlled Group has withdrawn from any Plan or initiated
steps to do so, and no steps have been taken to reorganize or terminate any Plan.

     5.11. Accuracy of Information. No information, exhibit or report furnished by any
Loan Party to the Agent or to any Lender in connection with the negotiation of, or compliance with,
the Loan Documents taken as a whole contained any material misstatement of fact or omitted to state
a material fact or any fact necessary to make the statements contained therein not misleading in
light of the circumstances in which such facts were presented.

 

 

     5.12. Names; Prior Transactions. Except as set forth on Schedule 5.12, the
Loan Parties have not, during the past five years, been known by or used any other corporate or
fictitious name, or been a party to any merger or consolidation, or been a party to any
Acquisition.

     5.13. Regulation U. No Loan Party is engaged, nor will it engage, principally or as
one of its important activities, in the business of extending credit for the purpose of
“purchasing” or “carrying” any “margin stock” as such terms are defined in Regulation U of the
Federal Reserve Board as now and from time to time hereafter in effect (such securities being
referred to herein as “Margin Stock”). No Loan Party owns any Margin Stock, and none of
the proceeds of the Loans or other extensions of credit under this Agreement will be used, directly
or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the purpose of
reducing or retiring
any Indebtedness that was originally incurred to purchase or carry any Margin Stock or for any
other purpose that might cause any of the Loans or other extensions of credit under this Agreement
to be considered a “purpose credit” within the meaning of Regulations T, U or X of the Federal
Reserve Board. No Loan Party will take or permit to be taken any action that might cause any Loan
Document to violate any regulation of the Federal Reserve Board.

     5.14. Material Agreements. Schedule 5.14 hereto sets forth as of the
Effective Date all material agreements and contracts to which any Loan Party is a party or is bound
as of the date hereof (defined as being required to be listed in the Domestic Borrower’s filings
with the Securities and Exchange Commission). No Loan Party is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained in (a) any
such material agreement to which it is a party or (b) any agreement or instrument evidencing or
governing Material Indebtedness.

     5.15. Compliance With Laws. The Loan Parties have complied with all applicable
statutes, rules, regulations, orders and legally enforceable restrictions of any domestic or
foreign government or any instrumentality or agency thereof having jurisdiction over the conduct of
their respective businesses or the ownership of their respective Property.

     5.16. Ownership of Properties. Except as set forth on Schedule 5.16, on the
date of this Agreement, the Loan Parties will have good title, free of all Liens other than those
permitted by Section 6.21, to all of the Property reflected in the Loan Parties’ most
recent consolidated financial statements provided to the Agent as owned by the Loan Parties.

     5.17. Plan Assets; Prohibited Transactions. The Borrower is not an entity deemed to
hold “plan assets” within the meaning of 29 C.F.R. § 2510.3-101 of an employee benefit plan (as
defined in Section 3(3) of ERISA) which is subject to Title I of ERISA or any plan (within the
meaning of Section 4975 of the Code), and neither the execution of this Agreement nor the making of
Credit Extensions hereunder gives rise to a prohibited transaction within the meaning of Section
406 of ERISA or Section 4975 of the Code. The Borrower is an “operating company” as defined in 29
C.F.R 2510-101 (c).

     5.18. Environmental Matters. In the ordinary course of its business, the officers of
each Loan Party consider the effect of Environmental Laws on the business of such Loan Party, in
the course of which they identify and evaluate potential risks and liabilities accruing to such
Loan

 

 

Party due to Environmental Laws. The Loan Parties have complied with all Environmental Laws
in all material respects. Except as set forth on Schedule 5.18, no Loan Party has received
any notice to the effect that its operations are not in material compliance with any of the
requirements of applicable Environmental Laws or are the subject of any federal or state
investigation evaluating whether any material remedial action is needed to respond to a release of
any toxic or hazardous waste or substance into the environment.

     5.19. Investment Company Act. No Loan Party is an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

     5.20. Public Utility Holding Company Act. No Loan Party is a “holding company” or a
“subsidiary company” of a “holding company,” or an “Affiliate” of a “holding company” or of a
“subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935, as amended.

     5.21. Bank Accounts. Exhibit B to the Security Agreement contains a complete
and accurate list of all bank accounts, other than petty cash accounts with a balance of less than
$5,000, maintained by each Loan Party with any bank or other financial institution.

     5.22. Indebtedness. The Loan Parties have no Indebtedness, except for (a) the
Obligations and (b) any Indebtedness permitted under Section 6.16.

     5.23. Affiliate Transactions. Except for immaterial matters or as set forth on
Schedule 5.23, there are no existing or proposed agreements, arrangements, understandings,
or transactions between any Loan Party and any of the officers, members, managers, directors,
stockholders, parents, other interest holders, employees, or Affiliates (other than Subsidiaries)
of any Loan Party or any members of their respective immediate families, and none of the foregoing
Persons are directly or indirectly indebted to or have any direct or indirect ownership,
partnership, or voting interest in any Affiliate of any Loan Party or any Person with which any
Loan Party has a business relationship or which competes with any Loan Party.

     5.24. Real Property; Leases. Schedule 5.24 sets forth a correct and complete
list of all real Property owned by each Loan Party, all material leases and subleases of real
Property by each Loan Party as lessee or sublessee, and all material leases and subleases of real
Property by each Loan Party as lessor or sublessor. For purposes of the foregoing sentence,
“material” shall mean a lease or sublease related to a location where Inventory in excess of
$1,000,000 is located. Each of such leases and subleases is valid and enforceable in accordance
with its terms and is in full force and effect, and no default by any party to any such lease or
sublease exists. Each Loan Party has good and indefeasible title in fee simple to the real
Property identified on Schedule 5.24 as owned by such Loan Party, or valid leasehold
interests in all real Property designated therein as “leased” by such Loan Party.

     5.25. Intellectual Property Rights. (a) Schedule 5.25 sets forth a correct and
complete list of all registered Intellectual Property Rights of each Loan Party; (b) none of the
Intellectual Property Rights listed in Schedule 5.25 is subject to any material licensing
agreement or similar

 

 

arrangement except as set forth in Schedule 5.25; (c) the Intellectual
Property Rights described in Schedule 5.25 constitute all of the material property of such
type necessary to the current and anticipated future conduct of the Loan Parties’ business; (d) to
the best of each Loan Party’s knowledge, no Intellectual Property Right, now employed, or now
contemplated to be employed, by any Loan Party infringes in any material respect upon any rights
held by any other Person; and (e) no claim or litigation regarding any of the foregoing is pending
or, to the knowledge of any Loan Party, threatened.

     5.26. Insurance. Each Loan Party maintains, with financially sound and reputable
insurers, insurance with coverage and limits as required by law and as is customary with Persons
engaged in the same businesses as such Loan Party. Schedule 5.26 lists all insurance
policies of
any nature maintained, by each Loan Party, as well as a summary of the terms of each such
policy.

     5.27. Solvency.

     (a) Immediately after the making of each Credit Extension, and after giving effect to the
application of the proceeds of such Credit Extensions (a) the fair value of the assets of each Loan
Party, at a fair valuation, will exceed the debts and liabilities, subordinated, contingent or
otherwise, of each Loan Party; (b) the present fair saleable value of the Property of each Loan
Party will be greater than the amount that will be required to pay the probable liability of each
Loan Party on its debts and other liabilities, subordinated, contingent or otherwise, as such debts
and other liabilities become absolute and matured; (c) each Loan Party will be able to pay its
debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (d) each Loan Party will not have unreasonably small capital with which
to conduct the businesses in which it is engaged as such businesses are now conducted and are
presently proposed to be conducted after the date hereof.

     (b) The Borrower does not intend to, or to permit any of its Subsidiaries to, and does not
believe that they or any of its Subsidiaries will, incur debts beyond its ability to pay such debts
as they mature, taking into account the timing of and amounts of cash to be received by the
Domestic Borrower or any such Subsidiary and the timing of the amounts of cash to be payable on or
in respect of its Indebtedness or the Indebtedness of any such Subsidiary.

     5.28. Subordinated Indebtedness. The Secured Obligations constitute senior
indebtedness which is entitled to the benefits of the subordination provisions of all outstanding
Subordinated Indebtedness.

     5.29. Common Enterprise. The successful operation and condition of each of the Loan
Parties and the Parent is dependent on the continued successful performance of the functions of the
group of the Loan Parties and the Parent as a whole and the successful operation of each of the
Loan Parties and the Parent is dependent on the successful performance and operation of each other
Loan Party and the Parent. Each Loan Party and the Parent expects to derive benefit (and its board
of directors or other governing body has determined that it may reasonably be expected to derive
benefit), directly and indirectly, from (a) successful operations of each of the other Loan Parties
and the Parent and (b) the credit extended by the Lenders to the Borrowers

 

 

hereunder, both in their
separate capacities and as members of the group of companies. Each Loan Party and the Parent has
determined that execution, delivery, and performance of this Agreement and any other Loan Documents
to be executed by such Loan Party or the Parent is within its purpose, will be of direct and
indirect benefit to such Loan Party and the Parent, and is in its best interest.

     5.30. Reportable Transaction. The Domestic Borrower does not intend to treat the
Advances and related transactions as being a “reportable transaction” (within the meaning of
Treasury Regulation Section 1.6011-4). In the event the Domestic Borrower determines to take any
action inconsistent with such intention, it will promptly notify the Agent thereof.

     5.31. Indenture. (a) No Event of Default (as defined in the Indenture) or Default (as
defined in the Indenture) exists, nor will any such Event of Default or Default exist immediately
after the granting or continuation of any Loan, under the Indenture, the Senior Subordinated Notes
or any agreement executed by the Domestic Borrower in connection therewith; (b) no Loan Party or
any of its Subsidiaries has incurred any Designated Senior Debt (as defined in the Indenture) other
than the Secured Obligations; (c) no Loan Party or any of its Subsidiaries has incurred either
prior to or after the granting of any Loan, any Indebtedness (as defined in the Indenture) in
violation of Section 4.09 (Incurrence of Indebtedness and Issuance of Preferred Stock) of the
Indenture; and (d) all of the Secured Obligations constitutes both Senior Debt (as defined in the
Indenture) and Designated Senior Debt (as defined in the Indenture).

     5.32. Permitted Indebtedness. The Secured Obligations, including any Canadian Advance
or UK Advance, constitute indebtedness permitted under the terms of the Indenture and, during any
Fixed Charge Condition Period, constitute Permitted Debt (as defined in Section 4.09(b) the
Indenture).

     5.33 Specifically Designated National and Blocked Persons. No Loan Party or any of
its Affiliates is a country, individual, or entity named on the Specifically Designated National
and Blocked Persons (SDN) list issued by the Office of Foreign Asset Control of the Department of
the Treasury of the United States of America.

ARTICLE VI

COVENANTS

     Each Loan Party executing this Agreement jointly and severally agrees as to all Loan Parties
that from and after the date hereof and until the Facility Termination Date:

     6.1. Financial and Collateral Reporting. The Domestic Borrower will maintain, for
itself and each of its Subsidiaries, a system of accounting established and administered to produce
financial statements that conform with GAAP, and will, through the Agent, furnish to the Lenders:

     (a) within 120 days after the close of each Fiscal Year of the Domestic Borrower and its
Subsidiaries, an unqualified (as to scope and without a going concern or similar qualifier)

 

 

audit
report certified by independent certified public accountants acceptable to the Agent, prepared in
all material respects in accordance with GAAP on a consolidated and consolidating basis
(consolidating statements need not be (1) prepared in accordance with GAAP or (2) certified by such
accountants), including balance sheets as of the end of such Fiscal Year and a statement of profit
and loss for the period then ended, and a consolidated statement of changes in shareholders’ equity
and a consolidated statement of cash flows, accompanied by (i) any management letter prepared by
said accountants and (ii) a certificate of said accountants that, in the course of their
examination necessary for their certification of the foregoing, they have obtained no knowledge of
any Default or Unmatured Default, or if, in the opinion of such accountants, any Default or
Unmatured Default shall exist, stating the nature and status thereof;

     (b) within 50 days after the close of the first three quarterly periods of each Fiscal Year of
the Domestic Borrower and its Subsidiaries, consolidated and consolidating unaudited balance sheets
as at the close of each such Fiscal Quarter and consolidated and consolidating (which consolidating
statements need not be prepared in accordance with GAAP) statements of profit and loss for the
period then ended, and a consolidated statement of changes in shareholders’ equity and a
consolidated statement of cash flows for the period from the beginning of the applicable Fiscal
Year to the end of such Fiscal Quarter, all certified by its chief financial officer and prepared
in all material respects in accordance with GAAP (except for consolidating statements need not be
prepared in accordance with GAAP and except for exclusion of footnotes and subject to normal
year-end audit adjustments);

     (c) within 30 days after the close of each Fiscal Month of the Domestic Borrower and its
Subsidiaries, consolidated and consolidating unaudited balance sheets as at the close of each such
Fiscal Month and consolidated and consolidating (which consolidating statements may not be prepared
in accordance with GAAP) statements of profit and loss for the period then ended, and a
consolidated statement of changes in shareholders’ equity and a consolidated statement of cash
flows for the period from the beginning of the applicable Fiscal Year to the end of such Fiscal
Month, all prepared in all material respects in accordance with GAAP (except for exclusion of
footnotes and subject to normal year-end audit adjustments) and certified by (1) its chief
financial officer or (2) its controller and an executive officer;

     (d) as soon as available, but in any event not more than 30 days prior to the end of each
Fiscal Year, but prior to the end of such Fiscal Year, a draft copy on a business unit basis of the
plan and forecast of the Domestic Borrower and its Subsidiaries of the next Fiscal Year on an
annual basis and, not more than 90 days after the end of the Fiscal Year, a final copy of the plan
and forecast (including a projected consolidated and consolidating balance sheet, income statement
and funds flow statement) of the Domestic Borrower and its Subsidiaries for each Fiscal Quarter of
the next Fiscal Year (the “Projections”) in form reasonably satisfactory to the Agent;

     (e) together with each of the financial statements required under Sections 6.1(a) and
(b), a compliance certificate in substantially the form of Exhibit E (a “Compliance
Certificate”) signed by the (1) chief financial officer or (2) controller and executive officer
of the Domestic Borrower showing the calculations necessary to determine compliance with this
Agreement (including, without limitation, compliance with the Fixed Charge Coverage Ratio, if

 

 

applicable) and stating that no Default or Unmatured Default exists, or if any Default or Unmatured
Default exists, stating the nature and status thereof;

     (f) At the Domestic Borrower’s option, as soon as available, and in any event no later than 3
Business Days after the end of each calendar week, a Borrowing Base Report showing the computation
of the Aggregate Borrowing Base in reasonable detail as of the close of business on the last day of
the immediately preceding week, together with such other information as is therein required, in
each case prepared by the Domestic Borrower and certified to by the Domestic Borrower’s chief
financial officer or controller;

     (g) as soon as available but in any event within 20 Business Days of the end of each Fiscal
Month, and at such other times as may be requested by the Agent, as of the period then ended, an
Aggregate Borrowing Base Certificate and supporting information, including, without limitation, a
Borrowing Base Certificate from each Loan Party, in connection therewith;

     (h) as soon as available but in any event within 20 days (30 days with respect to subpart (iv)
below) of the end of each Fiscal Month and at such other times as may be requested by the Agent, as
of the period then ended:

     (i) a detailed accounts receivable aging for each Loan Party (1) specifying the name
and balance due for each Account Debtor and (2) reconciled to the Aggregate Borrowing Base
Certificate delivered as of such date prepared in a manner reasonably acceptable to the
Agent;

     (ii) a schedule detailing each Loan Party’s Inventory, in form satisfactory to the
Agent, (1) by location (including any Inventory located with a third party under any
consignment, bailee arrangement, or warehouse agreement), product type, volume on hand,
which Inventory shall be valued at the lower of cost (determined on a first-in, first-out
basis) or market and adjusted for Reserves as the Agent has previously indicated to such
Loan Party are deemed by the Agent to be appropriate, (2) including a report of any
variances or other results of Inventory counts performed by such Loan Party since the last
Inventory schedule (including information regarding sales or other reductions, additions,
returns, credits issued by such Loan Party and complaints and claims made against such Loan
Party), and (3) reconciled to such Loan Party’s Borrowing Base Certificate delivered as of
such date;

     (iii) a worksheet of calculations prepared by the Domestic Borrower to determine
Eligible Accounts and Eligible Inventory, such worksheets detailing the Accounts and
Inventory excluded from Eligible Accounts and Eligible Inventory and the reason for such
exclusion; and

     (iv) a reconciliation of the applicable Loan Parties’ Accounts and Inventory between
the amounts shown in such Loan Parties’ books and financial statements and the reports
delivered pursuant to clauses (i) and (ii) above;

 

 

     (i) as soon as available but in any event within 20 days of the end of each Fiscal Month and
at such other times as may be requested by the Agent, as of the month then ended, a schedule and
aging or listing of the Loan Parties’ accounts payable;

     (j) promptly upon the Agent’s request:

     (i) copies of invoices in connection with the invoices issued by the Loan Parties in
connection with any Accounts, credit memos, shipping and delivery documents, and other
information related thereto; and

     (ii) copies of purchase orders, invoices, and shipping and delivery documents in
connection with any Inventory or Equipment purchased by any Loan Party.

     (k) as soon as possible and in any event within two-hundred and seventy days after the close
of the Fiscal Year of the Domestic Borrower, a statement of the Unfunded Liabilities of each Single
Employer Plan, certified as correct by an actuary enrolled under ERISA;

     (l) as soon as possible and in any event within 10 days after any Loan Party knows that any
Reportable Event has occurred with respect to any Plan, a statement, signed by the chief financial
officer of such Loan Party, describing said Reportable Event and the action which such Loan Party
proposes to take with respect thereto;

     (m) as soon as possible and in any event within 10 days after receipt by any Loan Party, a
copy of (i) any notice or claim to the effect that any Loan Party is or may be liable to any Person
as a result of the release by any Loan Party, or any other Person of any toxic or hazardous waste
or substance into the environment, and (ii) any notice alleging any violation of any federal, state
or local environmental, health or safety law or regulation by the any Loan Party;

     (n) within 30 days after the first date on which the Availability is less than $25,000,000
and, as the Agent may request, no more than once during any twelve-month period thereafter, so long
as the Availability remains less than $25,000,000, an updated Customer List, certified as true and
correct by an Authorized Officer of each Loan Party;

     (o) concurrently with the furnishing thereof to the shareholders of the Parent, copies of all
financial statements, reports and proxy statements so furnished;

     (p) promptly upon the filing thereof, copies of all registration statements and annual,
quarterly, monthly or other regular reports which any Loan Party files with the Securities and
Exchange Commission; and

     (q) such other information (including non-financial information) as the Agent or any Lender
may from time to time reasonably request.

In addition, not later than 20 days after the end of each Fiscal Month, the Domestic Borrower shall
cause each Loan Party to submit a Borrowing Base Certificate to the Domestic Borrower with respect
to its borrowing base for the immediately preceding month, and the Domestic

 

 

Borrower shall retain
such Borrowing Base Certificate and deliver same to the Agent upon the Agent’s request therefor.

     6.2. Use of Proceeds.

     (a) The Domestic Borrower will use the proceeds of the Credit Extensions for general corporate
purposes (not otherwise prohibited by this Agreement).

     (b) The Domestic Borrower will not, nor will it permit any Loan Party to, use any of the
proceeds of the Credit Extensions to (i) purchase or carry any Margin Stock in violation of
Regulation U, (ii) repay or refinance any Indebtedness of any Person incurred to buy or carry any
Margin Stock, or (iii) acquire any security in any transaction that is subject to Section 13 or
Section 14 of the Securities Exchange Act of 1934 (and the regulations promulgated thereunder).

     (c) The Domestic Borrower will not, nor will it permit any Loan Party to, use any of the
proceeds of Credit Extensions in any manner not permitted under the Indenture or in any manner that
would otherwise cause a default under or a breach of the Indenture.

     6.3 Notices. Each Loan Party, through the Domestic Borrower, will give prompt notice
in writing to the Agent of:

     (a) the occurrence of any Default or Unmatured Default;

     (b) any other development, financial or otherwise, which could reasonably be expected to have
a Material Adverse Effect;

     (c) the assertion by the holder of any Indebtedness of any Loan Party in excess of $5,000,000
that any default exists with respect thereto or that any Loan Party is not in compliance therewith;

     (d) receipt of any written notice that any Loan Party is subject to any investigation by any
governmental entity with respect to any potential or alleged violation of any applicable
Environmental Law that would reasonably be expected to have a Material Adverse Effect or of
imposition of any Lien against any Property of any Loan Party for any material liability with
respect to damages arising from, or costs resulting from, any violation of any Environmental Laws;

     (e) receipt of any notice of litigation commenced or threatened against any Loan Party that
(i) seeks damages in excess of $5,000,000, (ii) seeks injunctive relief, (iii) is asserted or
instituted against any Multiemployer Plan or ERISA Plan, its fiduciaries or its assets, (iv)
alleges criminal misconduct by any Loan Party, (v) alleges the violation of any law regarding, or
seeks remedies in connection with, any Environmental Laws; or (vi) involves any product recall to
the extent that such product recall would have a Material Adverse Effect;

     (f) any Lien (other than Permitted Liens) or claim made or asserted against any material
portion of the Collateral;

 

 

     (g) unless otherwise permitted hereunder, its decision to change, (i) such Loan Party’s name
or type of entity, (ii) such Loan Party’s articles or certificate of incorporation, partnership
agreement, certificate of partnership, articles or certificate of organization, by-laws, or
operating or other management agreement, and (iii) the location where any Collateral is held or
maintained; provided that in no event shall the Agent receive notice of such change less than
thirty days prior thereto;

     (h) commencement of any proceedings contesting any tax, fee, assessment, or other governmental
charge in excess of $250,000;

     (i) the opening of any new deposit account by any Loan Party with any bank or other financial
institution other than Agent;

     (j) any loss, damage, or destruction to the Collateral in the amount of $1,000,000 or more,
whether or not covered by insurance;

     (k) any and all payment or other material default notices received under or with respect to
any leased location or public warehouse where Collateral with a value in excess of $1,000,000 is
located (which shall be delivered within two Business Days after receipt thereof);

     (l) all material amendments to real estate leases where Collateral in excess of $1,000,000 is
located, together with a copy of such amendment;

     (m) the fact that such Loan Party has entered into a Rate Management Transaction or an
amendment to a Rate Management Transaction, other than, each case, any Rate Management Transaction
with the Agent, together with copies of all agreements evidencing such Rate Management Transactions
or amendments thereto (which shall be delivered within two Business Days);

     (n) any notice provided to the trustee or the Senior Subordinated Noteholders under the
Indenture or the Senior Subordinated Notes, such notice to be contemporaneously delivered by the
Domestic Borrower to the Agent and the Domestic Lenders; and

     (o) any other matter as the Agent may reasonably request.

     6.4. Conduct of Business. Each Loan Party will:

     (a) carry on and conduct its business in substantially the same manner and in substantially
the same fields of enterprise as it is presently conducted;

     (b) do all things necessary to remain duly incorporated or organized, validly existing and (to
the extent such concept applies to such entity) in good standing as a domestic corporation,
partnership or limited liability company in its jurisdiction of incorporation or organization, as
the case may be, and maintain all requisite authority to conduct its business in each jurisdiction
in which its business is conducted;

 

 

     (c) keep adequate books and records with respect to its business activities in which proper
entries, reflecting all financial transactions, are made as necessary to permit preparation of the
Domestic Borrower’s consolidated financial statements in accordance in all material respects with
GAAP and on a basis consistent with the Financial Statements delivered to the Agent pursuant to
Section 4.1(l);

     (d) at all times maintain, preserve and protect all of its assets and properties used or
useful in the conduct of its business, and keep the same in good repair, working order and
condition in all material respects (taking into consideration ordinary wear and tear) and from time
to time make, or cause to be made, all necessary or appropriate repairs, replacements and
improvements thereto consistent with the Loan Parties’ practices; and

     (e) transact business only in such corporate and trade names as are set forth in Schedule
5.12.

     6.5. Taxes. Each Loan Party will timely file complete and correct U.S. federal and
applicable foreign, state and local tax returns required by law and pay when due all taxes,
assessments and governmental charges and levies upon it or its income, profits, Property or
Collateral, except those which are being contested in good faith by appropriate proceedings and
with respect to which adequate reserves have been provided for in accordance with GAAP on the
Domestic Borrower’s consolidated financial statements.

     6.6. Payment of Indebtedness and Other Liabilities. Each Loan Party will pay or
discharge when due all Indebtedness permitted by Section 6.16 owed by such Loan Party and
all other liabilities and obligations due to materialmen, mechanics, carriers, warehousemen, and
landlords, except that the Loan Parties may in good faith contest, by appropriate proceedings
diligently pursued, any such obligations; provided that, (a) adequate reserves have been set aside
for such liabilities in accordance with GAAP, (b) such liabilities would not result in aggregate
liabilities in excess of $5,000,000, (c) no Lien shall be imposed to secure payment of such
liabilities that is superior to the Applicable Agent’s Liens securing the Secured Obligations, (d)
no material portion of the Collateral becomes subject to forfeiture or loss as a result of the
contest and (e) such Loan Party shall promptly pay or discharge such contested liabilities, if any,
and shall deliver to the Agent evidence reasonably acceptable to the Agent of such compliance,
payment or discharge, if such contest is terminated or discontinued adversely to such Loan Party or
the conditions set forth in this proviso are no longer met.

     6.7. Insurance

     (a) Each Loan Party shall at all times maintain, with financially sound and reputable
carriers, insurance against: (i) loss or damage by fire and loss in transit; (ii) theft, burglary,
pilferage, larceny, embezzlement, and if available and appropriate other criminal activities; (iii)
business interruption; (iv) general liability; and (v) and such other hazards, as is customary in
the business of such Loan Party. All such insurance shall be in amounts, cover such assets and be
under policies customary with the Loan Parties’ business and acceptable to the Agent in its
Permitted Discretion. In the event any Collateral is located in any area that has been designated
by the Federal Emergency Management Agency as a “Special Flood Hazard Area,” the

 

 

applicable
Loan Party shall purchase and maintain flood insurance on such Collateral (including any personal
Property which is located on any real Property leased by such Loan Party within a “Special
Flood Hazard Area”). The amount of all insurance required by this Section shall at a
minimum comply with applicable law, including the Flood Disaster Protection Act of 1973, as
amended. All premiums on such insurance shall be paid when due by the applicable Loan Party. If
any Loan Party fails to obtain any insurance as required by this Section, the Agent at the
direction of the Required Lenders may obtain such insurance at the Domestic Borrower’s
expense. By doing so, the Agent shall not be deemed to have waived any Default or Unmatured
Default arising from any Loan Party’s failure to maintain such insurance or pay any premiums
therefor. No Loan Party will use or permit any Property to be used in material violation of
applicable law or in any manner which might render inapplicable any insurance coverage.

     (b) All insurance policies required under Section 6.7(a) shall name the Agent (for the
benefit of the Agent and the Lenders) as an additional insured or as loss payee, as applicable, and
shall provide that, or contain loss payable clauses or mortgagee clauses, in form and substance
satisfactory to the Agent, which provide that:

     (i) all proceeds thereunder with respect to any Collateral shall be payable to the
Agent;

     (ii) no such insurance shall be affected by any act or neglect of the insured or owner
of the Property described in such policy; and

     (iii) such policy and loss payable clauses may be canceled, amended, or terminated only
upon at least thirty days prior written notice given to the Agent.

     (c) Notwithstanding the foregoing, any property insurance or condemnation proceeds received by
the Loan Parties (other than any such proceeds relating to assets located in Canada or the UK that
do not cover Inventory or Accounts) shall be immediately forwarded to the Agent and the Agent may,
at its option, apply any such proceeds to the reduction of the Obligations in accordance with
Section 2.15, provided that (i) in the case of such proceeds pertaining to a Domestic Loan
Party, in the absence of an Event of Default, such proceeds shall be applied to the Obligations
owing by the Domestic Borrower, (ii) in the case of such proceeds pertaining to a Canadian Loan
Party such proceeds shall be applied to the Obligations of the Canadian Borrower, and (iii) in the
case of such proceeds pertaining to a UK Loan Party, such proceeds shall be applied to the
Obligations of the UK Borrowers. The Agent may permit or require any Loan Party to use such
proceeds, or any part thereof, to replace, repair, restore or rebuild the Collateral in a diligent
and expeditious manner with materials and workmanship of substantially the same quality as existed
before the loss, damage or destruction. Notwithstanding the foregoing, if the casualty giving rise
to such insurance proceeds could not reasonably be expected to have a Material Adverse Effect and
such insurance proceeds do not exceed $3,000,000 for any single event, the Agent shall permit such
Loan Party to replace, restore, repair or rebuild the property; provided that, if such Loan Party
has not completed or entered into binding agreements to complete such replacement, restoration,
repair or rebuilding within 180 days of such casualty, the Agent may apply such insurance proceeds
to the Obligations in accordance with Section 2.15. All insurance proceeds made available
to any Loan Party to

 

 

replace, repair, restore or rebuild the Collateral shall be deposited in a
cash collateral account maintained with the Agent. Thereafter, such funds shall be made available
to the applicable Loan Party to provide funds to replace, repair, restore or rebuild the Collateral
as follows:

     (i) the Domestic Borrower shall request a release from the cash collateral account be
made to the applicable Loan Party in the amount requested to be released; and

     (ii) so long as the conditions set forth in Section 4.2 have been met, the
Agent shall release funds from the cash collateral account.

     6.8. Compliance with Laws. Except where the failure to comply would not have a
Material Adverse Effect, each Loan Party will comply with all laws, rules, regulations, orders,
writs, judgments, injunctions, decrees or awards to which it may be subject including, without
limitation, all Environmental Laws.

     6.9. Inspection. Each Loan Party will permit the Agent by its employees,
representatives and agents, from time to time upon two Business Days’ prior notice as frequently as
the Agent reasonably determines to be appropriate, to (a) inspect any of the Property, the
Collateral, and the books and financial records of such Loan Party, (b) examine, audit and make
extracts or copies of the books of accounts and other financial records of such Loan Party, (c)
have access to its properties, facilities, the Collateral and its advisors, officers, directors and
employees to discuss the affairs, finances and accounts of such Loan Party and (d) review, evaluate
and make test verifications and counts of the Accounts, Inventory and other Collateral of such Loan
Party. If a Default has occurred and is continuing, each Loan Party shall provide such access to
the Agent and to each Lender at all times and without advance notice. Furthermore, so long as any
Default has occurred and is continuing, each Loan Party shall provide the Agent and each Lender
with access to its suppliers. Each Loan Party shall promptly make available to the Agent and its
counsel originals or copies of all books and records that the Agent may reasonably request. The
Loan Parties acknowledge that from time to time the Agent may prepare and may distribute to the
Lenders certain audit reports pertaining to the Loan Parties’ assets for internal use by the Agent
and the Lenders from information furnished to the Agent by or on behalf of the Loan Parties, after
the Agent has exercised its rights of inspection pursuant to this Agreement.

     6.10. Appraisals. Once every Fiscal Year for Inventory (beginning with Fiscal Year
2008) and once every three Fiscal Years for Equipment (beginning with Fiscal Year 2007) and real
Property (beginning with Fiscal Year 2008), and, at any time during the existence of an Unmatured
Default or a Default, at the request of the Agent, the Loan Parties shall, at their sole expense,
provide the Agent with appraisals or updates thereof of their Inventory, Equipment and real
Property from an appraiser, and prepared on a basis, reasonably satisfactory to the Agent, such
appraisals and updates to include, without limitation, information required by applicable law and
regulations and by the internal policies of the Lenders.

     6.11. Communications with Accountants. Each Loan Party executing this Agreement
authorizes (a) the Agent, and (b) so long as a Default has occurred and is continuing, each Lender,
to communicate, upon advance notice to the Domestic Borrower, directly with its independent
certified public accountants and authorizes and shall instruct those accountants and

 

 

advisors to
communicate to the Agent and each Lender information relating to any Loan Party with respect to the
business, results of operations and financial condition of any Loan Party.

     6.12. Collateral Access Agreements and Real Estate Purchases. Each Loan Party shall
use commercially reasonable efforts to obtain a Collateral Access Agreement from the lessor of each
leased property, mortgagee of owned property or bailee or consignee with respect to any warehouse,
processor or converter facility or other location where Collateral is stored or located,
which agreement or letter shall contain a waiver or subordination of all Liens or claims that
the landlord, mortgagee or bailee or consignee may assert against the Collateral at that location,
and shall otherwise be reasonably satisfactory in form and substance to the Agent. After the
Effective Date, no real Property or warehouse space shall be leased by any Loan Party and no
Inventory shall be shipped to a processor or converter under arrangements established after the
Effective Date without the prior written consent of the Agent (which consent, in the Agent’s
discretion, may be conditioned upon the exclusion from the Domestic Borrowing Base of 3 months rent
at that location in accordance with subpart (h) of the definition of Eligible Inventory)
or, unless and until a satisfactory Collateral Access Agreement shall first have been obtained with
respect to such location. Each Loan Party shall timely and fully pay and perform in all material
respects its obligations under all leases and other agreements with respect to each leased location
or third party warehouse where any Collateral is or may be located. To the extent permitted
hereunder, if any Loan Party proposes to acquire a fee ownership interest in real Property after
the Effective Date, it shall (a) if proceeds of the Loans were not used to purchase such real
Property, provide to the Agent in escrow a mortgage or deed of trust granting the Agent a first
priority Lien on such real Property, or (b) if proceeds of the Loans were used to purchase such
real Property, provide to the Agent a mortgage or deed of trust granting the Agent a first priority
Lien on such real Property, together with an environmental audit, mortgage title insurance
commitment, real property survey, local counsel opinion, and, if required by the Agent,
supplemental casualty insurance and flood insurance, and such other documents, instruments or
agreements reasonably requested by the Agent, in each case, in form and substance reasonably
satisfactory to the Agent.

     6.13. Deposit Account Control Agreements. The Loan Parties will provide to the Agent a
Deposit Account Control Agreement duly executed on behalf of each financial institution holding a
deposit account of a Loan Party as set forth in the Security Agreement; provided that the Agent
may, in its Permitted Discretion, defer delivery of any such Deposit Account Control Agreement,
establish a Reserve with respect to any deposit account for which the Agent has not received such
Deposit Account Control Agreement, or require the Loan Party to open and maintain a new deposit
account with a financial institution subject to a Deposit Account Control Agreement.

     6.14 Additional Collateral; Further Assurances.

     (a) Subject to applicable law, each Loan Party shall, unless the Required Lenders otherwise
consent, except as otherwise permitted hereunder (i) cause each Subsidiary of the Domestic Borrower
(excluding any Foreign Subsidiary) to become or remain a Loan Party and a Guarantor and (ii) cause
each Subsidiary of the Domestic Borrower (excluding any Foreign Subsidiary) formed or acquired
after the Effective Date in accordance with the terms of this Agreement to (1) become a party to
this Agreement by executing the Joinder Agreement set forth as Exhibit F hereto (the
“Joinder Agreement”), and (2) guarantee payment and performance of

 

 

the Guaranteed
Obligations pursuant to the Guaranty and enter into a Security Agreement granting to the Agent, for
the benefit of the Domestic Lenders, a first priority security interest in all of its personal
property. Upon execution and delivery of such Loan Documents and other instruments, certificates,
and agreements, each such Person shall automatically become a Guarantor hereunder and thereupon
shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan
Documents.

     (b) Upon the request of the Agent, (i) each Domestic Loan Party shall grant Liens to the Agent
in respect of the Obligations, each Canadian Loan Party shall grant Liens to the Canadian
Correspondent Lender in respect of the Canadian Obligations and the UK Obligations, and each UK
Loan Party shall grant Liens to the UK Correspondent Lender in respect of the UK Obligations and
Canadian Obligations, in each case for the benefit of the Applicable Agent, and the applicable
Lenders, pursuant to such documents as the Applicable Agent may reasonably deem necessary and
deliver such property, documents, and instruments as the Applicable Agent may request to perfect
the Liens of the Agent in any Property of such Loan Party which constitutes Collateral, and (ii) in
connection with the foregoing requirements, deliver to the Agent all items of the type required by
Section 4.1 (as applicable). Notwithstanding the foregoing, the Loan Parties shall not be
required to grant mortgages for the benefit of the Applicable Agent and the Domestic Lenders on
their real Property (other than those granted on or before the Effective Date) so long as the
Availability exceeds $25,000,000. If, at any time, the Availability falls below $25,000,000, the
Agent, in the Agent’s sole and absolute discretion, shall have the right to require perfected,
first priority mortgage liens on the Domestic Borrower’s real Property located in the United States
at the Domestic Borrower’s sole cost and expense. Upon the occurrence of a Default, the Agent, in
the Agent’s sole and absolute discretion, shall have the right to require perfected, first priority
liens on the real Property of the Canadian Borrower and the UK Borrower at such Borrower’s sole
cost or expense.

     (c) The Parent will cause 100% of the issued and outstanding Capital Stock of the Domestic
Borrower to be subject at all times to a first priority, perfected Lien in favor of the Agent
pursuant to the terms and conditions of the Loan Documents or other security documents as the Agent
shall reasonably request. Upon the occurrence and at all times during the existence of a Default
under this Agreement, the Domestic Borrower shall, upon the request of Agent, in its sole and
absolute discretion, cause (i) 100% of the issued and outstanding Capital Stock of each of its
Domestic Subsidiaries and (ii) 65% (or such greater percentage that, due to a change in an
applicable law after the date hereof, (1) could not reasonably be expected to cause the
undistributed earnings of such Foreign Subsidiary as determined for U.S. federal income tax
purposes to be treated as a deemed dividend to such Foreign Subsidiary’s U.S. parent and (2) could
not reasonably be expected to cause any material adverse tax consequences) of the issued and
outstanding Capital Stock entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) and 100% of the issued and outstanding Capital Stock not entitled to vote (within
the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each first-tier Foreign Subsidiary directly
owned by the Domestic Borrower or any Domestic Subsidiary to be subject at all times to a first
priority, perfected Lien in favor of the Agent pursuant to the terms and conditions of the Loan
Documents or other security documents.

 

 

     (d) Without limiting the foregoing, each Loan Party shall, and shall cause each of its
Subsidiaries which is required to become a Loan Party pursuant to the terms of this Agreement to,
execute and deliver, or cause to be executed and delivered, to the Agent such documents and
agreements, and shall take or cause to be taken such actions as the Agent and the Required Lenders
may, from time to time, reasonably request to carry out the terms and conditions of this Agreement
and the other Loan Documents.

     6.15. Dividends.

     (a) No Loan Party will declare or pay any dividends or make any distributions on its Capital
Stock (other than dividends or distributions permitted under the Indenture and those payable in its
own common stock) or redeem, repurchase or otherwise acquire or retire any of its Capital Stock at
any time outstanding, except that, if no Default or Unmatured Default has occurred or is continuing
or would result after giving effect to such payment, (i) any Subsidiary may declare and pay
dividends or make distributions to a Loan Party or to a Wholly-Owned Subsidiary and (ii) the
Domestic Borrower may declare and pay dividends or make distributions to the Parent in an aggregate
amount not to exceed $750,000 in any Fiscal Year; and (iii) the Domestic Borrower may declare and
pay additional dividends or make additional distributions to the Parent as long as (A) prior to and
after giving effect to such dividend or distribution, Availability equals or exceeds $35,000,000
and (B) the Debt Service Coverage Ratio, determined as of the end of the most-recently completed
Fiscal Quarter prior to the payment date of any such dividend or distribution, for the then
most-recently completed four Fiscal Quarters, is not less than 1.25 to 1.00, the permitted amount
of such dividends and distributions shall be unlimited.

     (b) No Loan Party shall directly or indirectly enter into or become bound by any agreement,
instrument, indenture or other obligation (other than this Agreement and the other Loan Documents)
that could directly or indirectly restrict, prohibit or require the consent of any Person with
respect to the payment of dividends or distributions or the making or repayment of intercompany
loans by a Subsidiary to a Borrower.

     6.16. Indebtedness. The Domestic Borrower will not, nor will it permit any Loan Party
to, create, incur or suffer to exist any Indebtedness, except:

     (a) the Obligations;

     (b) Indebtedness existing on the date hereof and described in Schedule 6.16;

     (c) purchase money Indebtedness or Capitalized Lease Obligations or Indebtedness incurred in
connection with the purchase of any Equipment; provided that, the amount of such purchase money
Indebtedness and Capitalized Lease Obligations shall be limited to an amount not in excess of the
purchase price of such Equipment and the aggregate of all such purchase money Indebtedness and
Capitalized Lease Obligations incurred in any Fiscal Year shall not exceed $8,000,000;

 

 

     (d) Indebtedness which represents an extension, refinancing, or renewal of any of the
Indebtedness described in clauses (b) and (c) hereof; provided that, (i) the principal
amount or interest rate of such Indebtedness is not increased, (ii) any Liens securing such
Indebtedness are not extended to any additional Property of any Loan Party, (iii) no Loan Party
that is not originally obligated with respect to repayment of such Indebtedness is required to
become obligated with respect thereto, (iv) such extension, refinancing or renewal does not result
in a shortening of the average weighted maturity of the Indebtedness so extended, refinanced,
renewed, (v) the terms of any such extension, refinancing, or renewal are not materially less
favorable to the obligor thereunder than the original terms of such Indebtedness, and (iv) if the
Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the
Obligations, then the terms and conditions of the refinancing, renewal, or extension Indebtedness
must include subordination terms and conditions that are at least as favorable to the Agent and the
Lenders as those that were applicable to the refinanced, renewed, or extended Indebtedness;

     (e) Indebtedness owing by any Loan Party to any other Loan Party with respect to intercompany
loans, provided further, that:

     (i) the applicable Loan Parties shall have executed and delivered to such Loan Party,
on the Effective Date, a demand note (collectively, the “Intercompany Notes”) to
evidence any such intercompany Indebtedness owing at any time by any Loan Party to any other
Loan Party, which Intercompany Notes shall be in form and substance reasonably satisfactory
to the Agent and shall be pledged and delivered to the Agent pursuant to the Security
Agreement as additional collateral security for the Secured Obligations;

     (ii) the Loan Parties shall record all intercompany transactions on their books and
records in a manner reasonably satisfactory to the Agent;

     (iii) the obligations of the Loan Parties under any such Intercompany Notes shall be
subordinated to the Obligations of the Loan Parties hereunder in a manner reasonably
satisfactory to the Agent;

     (iv) at the time any such intercompany loan or advance is made by a Loan Party and
after giving effect thereto, such Loan Party shall be Solvent;

     (v) no Default or Unmatured Default would occur and be continuing after giving effect
to any such proposed intercompany loan;

     (vi) each intercompany loan from a Borrower shall be to a Borrowing Loan Party that is
wholly owned by a Borrower or any wholly owned Subsidiary of a Borrower, and shall be in
accordance with the provisions of Section 17.4 hereof; and

     (vii) all such Indebtedness under Intercompany Notes shall otherwise constitute
Permitted Debt (as defined in the Indenture).

 

 

     (f) Contingent Obligations (i) by endorsement of instruments for deposit or collection in the
ordinary course of business, (ii) consisting of the Reimbursement Obligations and (iii) consisting
of the Guaranty and guarantees of Indebtedness incurred for the benefit of any other Loan Party if
the primary obligation is expressly permitted elsewhere in this Section 6.16;

     (g) Indebtedness arising under Rate Management Transactions related to the Loans having a Net
Mark-to-Market Exposure not exceeding $2,000,000;

     (h) the Subordinated Indebtedness of the Domestic Borrower incurred under the Senior
Subordinated Notes in an aggregate original principal amount not to exceed $210,000,000, provided
that such Subordinated Indebtedness may not be renewed, extended or increased;

     (i) other unsecured Indebtedness in an amount, for the Domestic Borrower and all of its
Subsidiaries, not in excess of $2,000,000; and

     (j) Indebtedness arising under the UK Overdraft Facility.

     6.17. Capital Structure. Except as otherwise permitted herein, no Loan Party shall
make any change in its capital structure. If all or any part of a Loan Party’s Capital Stock has
been pledged to the Agent, that Loan Party shall not issue additional Capital Stock.

     6.18. Merger. No Loan Party will merge or consolidate with or into any other Person,
except that (a) any Subsidiary of the Domestic Borrower may merge into a Wholly-Owned Subsidiary of
the Domestic Borrower (or the Domestic Borrower so long as the Indenture is no longer in effect)
and (b) any Loan Party (other than the Domestic Borrower) may merge with any other Loan Party.

     6.19. Sale of Assets. No Loan Party will lease, sell or otherwise dispose of its
Property (including any Capital Stock owned by it) to any other Person (other than another Loan
Party), except:

          (a) sales of Inventory in the ordinary course of business;

          (b) as long as no Default or Event of Default has occurred and is continuing, the sale or
other disposition of Equipment (i) that is obsolete, (ii) with a fair market value of up to
$1,000,000 in the aggregate during the term of this Agreement that is no longer useful in such Loan
Party’s business, and (iii) with a fair market value in excess of $1,000,000 in the aggregate
during the term of this Agreement that is no longer useful in such Loan Party’s business if such
sale is permitted by the Agent in writing; provided that, in each case, such sale is in compliance
with the terms of the Indenture;

          (c) as long as no Default or Event of Default has occurred and is continuing, for (i) the sale
of assets classified on the Domestic Borrower’s consolidated balance sheet on the Closing Date as
“Held for Sale,” (ii) the sale or disposition of assets having a fair market value as determined in
the Agent’s reasonable discretion not exceeding $5,000,000 in the aggregate

 

 

during the term of this
Agreement and (iii) the sale or disposition of other additional assets having a fair market value
as determined in the Agent’s reasonable discretion exceeding $5,000,000 but less than $25,000,000
in the aggregate during the term of this Agreement; provided that the proceeds of any such sale or
disposition shall be delivered to the Agent as required by Section 2.15(b) and applied to
the Obligations as set forth therein; and

          (d) the sale of Accounts owed by Volvo or Mack to a Domestic Loan Party if, prior to such
sale, (i) the Domestic Borrower delivers a new Borrowing Base Certificate to the
Agent that gives effect to such sale, (ii) the proceeds of such sale are used to pay down the
Domestic Revolving Loans, (iii) the proceeds of such sale are at least equal to the amount of the
advance rate for such Accounts prior to such sale and (iv) the Domestic Borrower provides the Agent
with such other documents and information as the Agent may reasonably request.

The proceeds of any sale or disposition permitted pursuant to this Section shall be delivered to
the Agent if required by Section 2.15 and applied to the Obligations as set forth therein.

     6.20. Investments and Acquisitions. No Loan Party will (a) make or suffer to exist
any Investments (including without limitation, loans and advances to, and other Investments in,
Subsidiaries), or commitments therefor, (b) create any Subsidiary except as permitted herein, (c)
become or remain a partner in any partnership or joint venture, or (d) make any Acquisition,
except:

     (i) Cash Equivalent Investments, subject to control agreements in favor of the Agent
for the benefit of the Lenders or otherwise subject to a perfected security interest in
favor of the Agent for the benefit of the Lenders;

     (ii) existing Investments in Subsidiaries;

     (iii) other Investments in existence on the Effective Date and described in
Schedule 6.20;

     (iv) Investments consisting of loans or advances made to employees of such Loan Party
on an arms-length basis in the ordinary course of business consistent with past practices
for travel and entertainment expenses, relocation costs and similar purposes up to a maximum
of $10,000 to any employee and up to a maximum of $25,000 in the aggregate at any one time
outstanding;

     (v) subject to Sections 4.2(a) and 4.4 of the Security Agreement, Investments
comprised of notes payable, or stock or other securities issued by Account Debtors to such
Loan Party pursuant to negotiated agreements with respect to settlement of such Account
Debtor’s Accounts in the ordinary course of business, consistent with past practices;

     (vi) other Investments in Subsidiaries of a Loan Party not to exceed $10,000,000 in the
aggregate during the term of this Agreement;

 

 

     (vii) other Investments not to exceed $5,000,000 in the aggregate during the term of
this Agreement; and

     (viii) Acquisitions not to exceed $1,000,000 each and an aggregate amount not to exceed
$5,000,000 during any four (4) consecutive Fiscal Quarters, unless the Domestic Borrower
receives prior written consent from the Agent; provided that, if (A) prior to and after
giving effect to such Acquisition, Availability equals or exceeds $35,000,000, (B) the Debt
Service Coverage Ratio, determined as of the most-recently
completed Fiscal Quarter prior to the date of such Acquisition, for the then most-recently
completed four (4) Fiscal Quarters, is no less than 1.25 to 1.00, and (C) prior to and after
giving effect to such Acquisition, no Default or Event of Default exists, there shall be no
limitation on Acquisitions under this Section 6.20(d)(ix).

     6.21. Liens.

     (a) No Loan Party will create, incur, or suffer to exist any Lien in, of, or on the Property
of such Loan Party, except the following (collectively, “Permitted Liens”):

     (i) Liens for taxes, fees, assessments, or other governmental charges or levies on the
Property of such Loan Party if such Liens (a) shall not at the time be delinquent or (b) do
not secure obligations in excess of $250,000, are being contested in good faith and by
appropriate proceedings diligently pursued, adequate reserves in accordance with GAAP have
been provided on the books of such Loan Party, and a stay of enforcement of such Lien is in
effect;

     (ii) Liens imposed by law, such as carrier’s, warehousemen’s, and mechanic’s Liens and
other similar Liens arising in the ordinary course of business which secure payment of
obligations not more than ten days past due or which are being contested in good faith by
appropriate proceedings diligently pursued and for which adequate reserves shall have been
provided on such Loan Party’s books;

     (iii) statutory Liens in favor of landlords of real Property leased by such Loan Party;
provided that such Loan Party is current with respect to payment of all rent and other
material amounts due to such landlord under any lease of such real Property;

     (iv) Liens arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement benefits,
or similar legislation or to secure the performance of bids, tenders, or contracts (other
than for the repayment of Indebtedness) or to secure indemnity, performance, or other
similar bonds for the performance of bids, tenders, or contracts (other than for the
repayment of Indebtedness) or to secure statutory obligations (other than material liens
arising under ERISA or Environmental Laws) or surety or appeal bonds, or to secure
indemnity, performance, or other similar bonds;

     (v) utility easements, building restrictions, and such other encumbrances or charges
against real Property as are of a nature generally existing with respect to properties of a
similar character and which do not in any material way affect the

 

 

marketability of such real
Property or materially and adversely interfere with the use thereof in the business of such
Loan Party;

     (vi) the equivalent of the types of Liens discussed in clauses (i) through (v) above,
inclusive, in any foreign jurisdiction in which any Loan Party conducts business;

     (vii) Liens existing on the Effective Date and described in Schedule 6.21;

     (viii) Liens resulting from any extension, refinancing, or renewal of the related
Indebtedness as permitted pursuant to Section 6.16(d); provided that, the Liens
evidenced thereby are not increased to cover any additional Property not originally covered
thereby;

     (ix) Liens securing purchase money Indebtedness of such Loan Party permitted pursuant
to Section 6.16(c); provided that, such Liens attach only to the Property which was
purchased with the proceeds of such purchase money Indebtedness;

     (x) Liens granted pursuant to any Loan Document; and

     (xi) Liens in favor of HSBC Bank plc or its affiliates until released in accordance
with Section 4.3.

     (b) Notwithstanding the foregoing, none of the Liens permitted pursuant to this Section
6.21, other than (x) of the type described in clause (i) above, may at any time attach
to any Accounts of any Loan Party and (y) of the type described in clauses (i) through
(iii) above, may at any time attach to any Inventory of any Loan Party.

     (c) Other than as provided in the Loan Documents or in connection with the creation or
incurrence of any Indebtedness under Section 6.16(c), no Loan Party will enter into or
become subject to any negative pledge or other restriction on the right of such Loan Party to grant
Liens to the Agent and the Lenders on any of its Property; provided that, any such negative pledge
or other restriction entered into in connection with the creation of Indebtedness under Section
6.16(c) shall be limited to the Property securing such purchase money Indebtedness.

     6.22. Change of Name or Location; Change of Fiscal Year. Except as permitted
hereunder, no Loan Party shall (a) change its name as it appears in official filings in the state
of its incorporation or organization, (b) change its chief executive office, principal place of
business, mailing address, corporate offices or warehouses or locations at which Collateral is held
or stored, or the location of its records concerning the Collateral as set forth in the Security
Agreement, (c) change the type of entity that it is, (d) change its organization identification
number, if any, issued by its state of incorporation or other organization, or (e) change its state
of incorporation or organization, in each case, without at least thirty days prior written notice
to the Agent and the Agent shall have either (1) determined that such event or occurrence will not
adversely affect the validity, perfection or priority of the Agent’s security interest in the
Collateral, or (2) after the Agent’s written acknowledgment that any reasonable action requested by
the Agent in connection therewith, including to continue the perfection of any Liens in favor of
the Agent, on behalf of Lenders, in any Collateral, has been completed or taken, and, provided

 

 

that
any new location shall be in the continental U.S. No Loan Party shall change its Fiscal Year.

     6.23. Affiliate Transactions. Except as permitted hereunder, no Loan Party will enter
into any transaction (including, without limitation, the purchase or sale of any Property or
service) with, or make any payment or transfer (including, without limitation, any payment or
transfer with respect to any fees or expenses for management services) to, any Affiliate except in
the ordinary course of business and pursuant to the reasonable requirements of such Loan Party’s
business and upon fair and reasonable terms no less favorable to such Loan Party than such
Loan Party would obtain in a comparable arms-length transaction.

     6.24. Amendments to Agreements. Except as permitted hereunder, the Borrower will not,
and will not permit any of its Subsidiaries to, amend or terminate their organizational documents
or governing documents in a manner that would be adverse to the Lenders.

     6.25. Prepayment of Indebtedness; Subordinated Indebtedness.

     (a) No Loan Party shall, directly or indirectly, voluntarily purchase, redeem, defease or
prepay any principal of, premium, if any, interest or other amount payable in respect of any
Indebtedness prior to its scheduled maturity, other than (i) the Obligations; (ii) Indebtedness
secured by a Permitted Lien if the asset securing such Indebtedness has been sold or otherwise
disposed of in accordance with Section 6.19; (iii) Indebtedness permitted by Section
6.16(d) upon any refinancing thereof in accordance therewith; (iv) Indebtedness permitted by
Section 6.16(e); and (v) if (A) prior to and after giving effect to any such payment
Availability equals or exceeds $35,000,000 and (B) the Debt Service Coverage Ratio, determined as
of the most-recently completed Fiscal Quarter prior to the date of such payment, for the then
most-recently completed four (4) Fiscal Quarters, is no less than 1.25 to 1.00, any other
Indebtedness.

     (b) No Loan Party shall make any amendment or modification to the Indenture, note or other
agreement evidencing or governing any Subordinated Indebtedness, or directly or indirectly
voluntarily prepay, defease or in substance defease, purchase, redeem, retire or otherwise acquire,
any Subordinated Indebtedness; provided that, the Domestic Borrower may make scheduled payments of
interest with respect to Subordinated Indebtedness as long as no Default or Unmatured Default has
occurred and is continuing or would result after giving effect to such payment.

     6.26 Letters of Credit. No Loan Party will apply for or become liable upon or in
respect of any Letter of Credit other than Facility LCs.

     6.27. Financial Contracts. No Loan Party shall enter into or remain liable upon any
Financial Contract, except for Rate Management Transactions permitted by Section 6.16.

     6.28. [Reserved].

     6.29. Debt Service Coverage Ratio. The Domestic Borrower will not permit the Debt
Service Coverage Ratio, determined as of the end of each Fiscal Quarter for the then most-

 

 

recently
ended four Fiscal Quarters, to be less than (a) 1.10 to 1.00 for any period of two consecutive
Fiscal Quarters, or (b) 1.00 to 1.00.

     6.30. Depository Banks (a) Each Domestic Loan Party shall maintain the Agent as such
Domestic Loan Party’s principal depository bank, including for the maintenance of operating,
administrative, cash management, collection activity, and other deposit accounts for the conduct of
its business, (b) Each Canadian Loan Party shall, within a reasonable amount of time, transfer its
deposit accounts (including for the maintenance of operating, administrative, cash
management, collection activity, and other deposit accounts for the conduct of its business,
but excluding petty cash accounts maintained in the ordinary course of business) to the Canadian
Correspondent Lender and then maintain such deposits accounts with such Lender.

     6.31. Sale of Accounts. The Domestic Borrower will not, and will not it permit any of
its Subsidiaries to, sell or otherwise dispose of any notes receivable or accounts receivable, with
or without recourse.

     6.32. Off-Balance Sheet Liabilities; Sale and Leaseback Transactions. The Loan
Parties shall not have any Off-Balance Sheet Liabilities or engage in any Sale and Leaseback
Transactions.

     6.33. Subordination of Intercompany Notes.

     (a) All Indebtedness evidenced by an Intercompany Note, together with all accrued interest
thereon, and any other indebtedness for borrowed money now owing or which hereafter may become
owing by or from a Loan Party to any other Loan Party, howsoever such indebtedness may be hereafter
created, extended, renewed or evidenced, together with all accrued interest thereon and any and all
other obligations and liabilities of any kind owing by or from a Loan Party to any other Loan Party
shall at all times and in all respects be subordinate and junior in right of payment to any and all
obligations, liabilities and indebtedness of any kind of the Loan Parties to the Lenders, and their
respective successors and assigns, including, without limitation, the Obligations, Guaranteed
Obligations and any extensions, renewals, modifications, and amendments thereof and all accrued
interest thereon and any Fees owing by the Loan Parties to the Lenders.

     (b) Unless and until (i) all of the Guaranteed Obligations shall have been fully and finally
paid and satisfied and (ii) all financing arrangements, including, but not limited to this
Agreement, between the Domestic Borrower, the other Loan Parties and the Lenders have been
terminated, no Loan Party shall: (A) enforce or exercise any right of demand or setoff or commence
any legal or other action against any other Loan Party to collect upon any Intercompany Note; (B)
take or accept any collateral or security with respect to the obligations evidenced by any
Intercompany Note without the prior written consent of the Agent; (C) commence foreclosure or any
other similar type of proceedings or exercise any similar remedies in respect of any collateral for
the obligations evidenced by any Intercompany Note; (D) enforce any judgment that it might obtain
with respect to the obligations evidenced by the Intercompany Notes without obtaining the prior
written consent of the Agent; or (E) commence or join with any other creditor or creditors of the
Loan Parties in commencing any bankruptcy, reorganization

 

 

or insolvency proceedings against such
Loan Party. All rights, liens and security interests of each Loan Party in any assets of any other
Loan Party and/or any other person securing the obligations evidenced by any Intercompany Note,
whether now or hereafter arising and howsoever existing, shall be and hereby are subordinated to
the rights and interests of the Agent under this Agreement and in those assets. The Loan Parties
shall have no right to possession of any such assets or to foreclose or execute upon any such
assets, whether by judicial action or otherwise. The Loan Parties represent and warrant that all
Intercompany Notes are and will remain unsecured.

     6.34. Restrictive Agreements. No Loan Party will enter into, incur or permit to exist
any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the
ability of such Loan Party to create, incur or permit to exist any Lien upon any of its property or
assets, or (b) the ability of any Loan Party to pay dividends or other distributions with respect
to any shares of its capital stock or to make or repay loans or advances to any Loan Party or to
guarantee the Obligations of any Loan Party; provided that (i) the foregoing shall not apply to
restrictions and conditions imposed by law or by any Loan Document, (ii) the foregoing shall not
apply to restrictions and conditions existing on the date hereof identified on Schedule 6.34 (but
shall apply to any extension or renewal of, or any amendment or modification expanding the scope
of, any such restriction or condition), (iii) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be
sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by
this Agreement if such restrictions or conditions apply only to the property or assets securing
such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary provisions in
leases and other contracts restricting the assignment thereof.

ARTICLE VII

DEFAULTS

     The occurrence of any one or more of the following events shall constitute a “Default”
hereunder:

          (a) nonpayment, when due (whether upon demand or otherwise), of any principal, interest, fee,
Reimbursement Obligation or any other obligation owing under any of the Loan Documents;

          (b) any representation or warranty made or deemed made by or on behalf of any Loan Party to
the Lenders or the Agent under or in connection with this Agreement, any other Loan Document, any
Credit Extension, or any certificate or information delivered in connection with any of the
foregoing shall be materially false on the date as of which made;

          (c) the breach by any Loan Party of any of the terms or provisions of Sections 2.24, 6.2,
6.5, 6.7, 6.9, 6.10, 6.13 through 6.34, or 17.4;

 

 

          (d) the breach by any Loan Party (other than a breach which constitutes a Default under
another Section of this Article VII) of any of the terms or provisions of this Agreement
which is not remedied (i) in the case of Section 6.1, within 5 days of such breach, and
(ii) in all other cases, within 30 days of such breach;

          (e) (i) failure of any Loan Party or Parent to pay when due any Indebtedness in an aggregate
amount equal to $5,000,000, (ii) a default, breach or other event occurs under
any term, provision or condition contained in any Material Indebtedness Agreement of any Loan
Party or Parent, the effect of which default, event or condition is to cause, or to permit the
holder(s) of such Material Indebtedness or the lender(s) under any Material Indebtedness Agreement
to cause, such Material Indebtedness to become due prior to its stated maturity; any Indebtedness
in an aggregate amount equal to $3,000,000 of any Loan Party or Parent shall be declared to be due
and payable or required to be prepaid or repurchased (other than by a regularly scheduled payment)
prior to the stated maturity thereof; or any Loan Party or Parent shall not pay, or (iii) admit in
writing its inability to pay, its debts generally as they become due;

          (f) (i) Loan Parties (other than the UK Borrower) and Parent: any Loan Party or
Parent shall (A) have an order for relief entered with respect to it under the Bankruptcy Code as
now or hereafter in effect, (B) make an assignment for the benefit of creditors, (C) apply for,
seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner,
liquidator or similar official for it or any Substantial Portion of Property, (D) institute any
proceeding seeking an order for relief under the Bankruptcy Code as now or hereafter in effect or
seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up, liquidation,
reorganization, arrangement, adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other
pleading denying the material allegations of any such proceeding filed against it, (E) take any
corporate, partnership or limited liability company action to authorize or effect any of the
foregoing actions set forth in this subsection (f) or (F) fail to contest in good faith any
appointment or proceeding described in subsection (g) below;

          (ii) UK Borrower: the UK Loan Parties shall (A) take any corporate action for or
other formal steps are taken or legal or other proceedings started or a petition or application is
presented for its winding up administration dissolution or reorganization (other than for the
purposes of a bona fide solvent scheme of reconstruction previously approved in writing by the
Agent and the Required Lenders, or, in respect of a petition or other proceedings for its winding
up only, where such action is taken on grounds which the UK Loan Parties shall reasonably
demonstrate to the Agent and the Required Lenders to be vexatious or unwarranted and such petition
is withdrawn or dismissed or such proceedings are withdrawn or stayed within 14 days and prior to
their advertisement) or for the appointment of a provisional liquidator, receiver, administrator,
trustee or similar officer of all or any material part of its assets, (B) be or become or admits in
writing its inability to pay its debts as they fall due as that expression is defined in Section
123 of the Insolvency Act 1986, (C) cease or threaten to cease to carry on all or any substantial
part of its business, (D) have a moratorium in respect of all or any of the debts of the UK Loan
Parties or a composition or arrangement readjustment or rescheduling with all or any class of
creditors of the UK Loan Parties proposed, agreed, applied for, ordered or declared,

 

 

(E) have a
receiver or administrative receiver appointed in respect of the any UK Loan Party or in respect of
all or any material part of their assets or if the security created by any Lien created by any UK
Loan Party over all or any material part of their undertakings, assets, rights or remedies become
enforceable or any step has been taken to enforce such Lien, or (F) any distress execution
attachment or other process is carried out or otherwise affects any assets of any UK Loan Party and
is not discharged within 60 days;

          (g) a receiver, trustee, examiner, liquidator or similar official shall be appointed for any
Loan Party or Parent or any Substantial Portion of Property, or a proceeding described in
subsection (f)(iv) of Article VII shall be instituted against any Loan Party or
Parent and such appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of sixty consecutive days;

          (h) any court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of, all or any portion of the Property of any Loan Party
which, when taken together with all other Property of any Loan Party so condemned, seized,
appropriated, or taken custody or control of, during the twelve-month period ending with the month
in which any such action occurs, constitutes a Substantial Portion;

          (i) any loss, theft, damage or destruction of any item or items of Collateral or other
property of any Loan Party occurs which could reasonably be expected to cause a Material Adverse
Effect and is not adequately covered by insurance;

          (j) any Loan Party shall fail within thirty days when due to pay, bond or otherwise discharge
one or more (i) judgments or orders for the payment of money in excess of $1,000,000 (or the
equivalent thereof in currencies other than Dollars) in the aggregate, or (ii) nonmonetary
judgments or orders which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, which judgments or orders, in any such case, are not stayed on appeal or
otherwise being appropriately contested in good faith by proper proceedings diligently pursued;

          (k) any Change in Control shall occur;

          (l) the Unfunded Liabilities of all Single Employer Plans shall exceed in the aggregate
$7,800,000 or any Reportable Event shall occur in connection with any Plan;

          (m) a Loan Party or any other member of a Controlled Group has incurred or shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred withdrawal liability to such
Multiemployer Plan;

          (n) a Loan Party or any other member of a Controlled Group shall have been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is being
terminated, within the meaning of Title IV of ERISA, if as a result of such reorganization or
termination the aggregate annual contributions of a Loan Party and the other members of a
Controlled Group (taken as a whole) to all Multiemployer Plans which are then in reorganization or
being terminated have been or will be increased over the amounts

 

 

contributed to such Multiemployer
Plans for the respective plan years of each such Multiemployer Plan immediately preceding the plan
year in which the reorganization or termination occurs by an amount exceeding $250,000;

          (o) the occurrence of any “default,” as defined in any Loan Document (other than this
Agreement) or the breach of any of the terms or provisions of any Loan Document
(other than this Agreement), which default or breach continues beyond any period of grace
therein provided;

          (p) the Guaranty shall fail to remain in full force or effect or any action shall be taken to
discontinue or to assert the invalidity or unenforceability of the Guaranty, or any Guarantor shall
fail to comply with any of the material terms or provisions of the Guaranty to which it is a party,
or any Guarantor shall deny that it has any further liability under the Guaranty to which it is a
party, or shall give notice to such effect;

          (q) any Collateral Document shall for any reason fail to create a valid and perfected first
priority security interest in any material portion of the Collateral purported to be covered
thereby, except as permitted by the terms of any Loan Document, or any Collateral Document shall
fail to remain in full force or effect or any action shall be taken to discontinue or to assert the
invalidity or unenforceability of any Loan Document;

          (r) any material provision of any Loan Document for any reason ceases to be valid, binding and
enforceable in accordance with its terms (or any Loan Party shall challenge the enforceability of
any Loan Document or shall assert in writing, or engage in any action or inaction based on any such
assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not
valid, binding and enforceable in accordance with its terms);

          (s) (i) any Default (as defined in the Indenture) or Event of Default (as defined in the
Indenture) shall exist under the Indenture, the Senior Subordinated Notes or any agreement executed
by the Domestic Borrower in connection therewith, (ii) without the prior written consent of the
Agent and the Required Lenders, the Indenture or the Senior Subordinated Notes shall be amended or
modified in any respect or replaced, or (iii) the Senior Subordinated Notes shall be accelerated
for any reason;

          (t) nonpayment by the Domestic Borrower or any of its Subsidiaries of any Rate Management
Obligation when due or the breach by the Domestic Borrower or any of its Subsidiaries of any term,
provision or condition contained in any Rate Management Transaction or any transaction of the type
described in the definition of “Rate Management Transactions,” whether or not any Lender or
Affiliate of a Lender is a party thereto or the occurrence or existence of any default, event of
default or other similar condition or event (however described) with respect to Rate Management
Transactions;

          (u) there is filed against any Loan Party any action, suit or proceeding under any federal or
state racketeering statute (including the Racketeer Influenced and Corrupt Organization Act of
1970), which action, suit or proceeding (i) is not dismissed within one

 

 

hundred twenty days, and
(ii) could reasonably be expected to result in the confiscation or forfeiture of any material
portion of the Collateral;

          (v) if any Loan Party shall incur or permit to exist any Designated Senior Debt (as defined in
the Indenture) other than the Secured Obligations; or

          (w) the Parent shall guaranty the indebtedness of any Person other than a Loan Party.

ARTICLE VIII

REMEDIES; WAIVERS AND AMENDMENTS

     8.1. Remedies.

     (a) If any Default occurs, the Agent (i) may in its discretion (and at the written request of
the Required Lenders, shall) (A) reduce the Aggregate Commitment, (B) terminate or suspend the
obligations of the Lenders to make Loans hereunder and the obligation and power of the LC Issuer to
issue Facility LCs, (C) upon notice to the Domestic Borrower, and in addition to the continuing
right to demand payment of all amounts payable under this Agreement, the Agent may either (1) make
demand on the Borrower to pay, and the Borrower shall, forthwith upon such demand and without any
further notice or act, pay to the Agent an amount, in immediately available funds (which funds
shall be held in the Facility LC Collateral Account), equal to 105% of the Collateral Shortfall
Amount or (2) deliver a Supporting Letter of Credit as required by Section 2.1.2(l),
whichever the Agent may specify in its sole discretion, (D) increase the rate of interest
applicable to the Loans and the LC Fees as set forth in this Agreement and (E) exercise any rights
and remedies provided to the Agent under the Loan Documents or at law or equity, including all
remedies provided under the UCC, and (ii) shall, at the written request of the Required Lenders,
declare all or any portion of the Obligations to be due and payable, whereupon the Obligations
shall become immediately due and payable, without presentment, demand, protest or notice of any
kind, all of which the Borrower hereby expressly waives.

     (b) If any Default described in subsections (f) or (g) of Article VII occurs
with respect to any Loan Party, the obligations of the Lenders to make Loans hereunder and the
obligation and power of the LC Issuer to issue Facility LCs shall automatically terminate and all
Obligations shall immediately become due and payable without any election or action on the part of
the Agent, the LC Issuer or any Lender and the Loan Parties will be and become thereby
unconditionally obligated, without any further notice, act or demand, to pay to the Agent an amount
equal to 105% of the Collateral Shortfall Amount, which funds shall be deposited in the Facility LC
Collateral Account.

     (c) If, within thirty days after acceleration of the maturity of the Obligations or
termination of the obligations of the Lenders to make Loans and the obligation and power of the LC
Issuer to issue Facility LCs hereunder as a result of any Default (other than any Default as
described in subsections (f) or (g) of Article VII with respect to the Domestic
Borrower) and before any judgment or decree for the payment of the Obligations due shall have been
obtained

 

 

or entered, the Required Lenders (in their sole discretion) shall so direct, the Agent
shall, by notice to the Domestic Borrower, rescind and annul such acceleration and/or termination.

     (d) If at any time while any Default is continuing, the Agent determines that the Collateral
Shortfall Amount at such time is greater than zero, the Agent may make demand on the Domestic
Borrower to pay, and the Domestic Borrower shall, forthwith upon such demand and without any
further notice or act, pay to the Agent an amount equal to 105% of the Collateral Shortfall Amount,
which funds shall be deposited in the Facility LC Collateral Account. The Domestic Borrower hereby
pledges, assigns, and grants to the Agent, on behalf of and for the benefit of the Agent, the
Lenders, and the LC Issuer, a security interest in all of the Domestic Borrower’s right, title, and
interest in and to all funds which may from time to time be on deposit in the Facility LC
Collateral Account to secure the prompt and complete payment and performance of the Obligations.

     (e) The Agent may at any time or from time to time after funds are deposited in the Facility
LC Collateral Account, apply such funds to the payment of the Obligations and any other amounts as
shall from time to time have become due and payable by the Borrower to the Lenders or the LC Issuer
under the Loan Documents.

     (f) At any time while any Default is continuing, neither the Borrower nor any Person claiming
on behalf of or through the Borrower shall have any right to withdraw any of the funds held in a
Facility LC Collateral Account. After all of the Obligations have been indefeasibly paid in full
and the Aggregate Commitment has been terminated, any funds remaining in the Facility LC Collateral
Accounts shall be returned by the Applicable Agent to the Borrower or paid to whomever may be
legally entitled thereto at such time.

     8.2. Waivers by Loan Parties. Except as otherwise provided for in this Agreement or
by applicable law, each Loan Party waives: (a) presentment, demand and protest and notice of
presentment, dishonor, notice of intent to accelerate, notice of acceleration, protest, default,
nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all
commercial paper, accounts, contract rights, documents, instruments, chattel paper and guaranties
at any time held by the Agent on which any Loan Party may in any way be liable, and hereby ratifies
and confirms whatever the Agent may do in this regard, (b) all rights to notice and a hearing prior
to the Agent’s taking possession or control of, or to the Agent’s replevy, attachment or levy upon,
the Collateral or any bond or security that might be required by any court prior to allowing the
Agent to exercise any of its remedies, and (c) the benefit of all valuation, appraisal, marshaling
and exemption laws.

     8.3. Amendments.

     (a) Subject to the provisions of this Section 8.3, no amendment, waiver or
modification of any provision of this Agreement or any other Loan Document, and no consent with
respect to any departure by any Loan Party therefrom, shall be effective unless the same shall be
in writing and signed by the Required Lenders (or the Agent with the consent in writing of the
Required Lenders) and the Loan Parties and then any such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given.

 

 

     (b) Notwithstanding subsection (a) above, no such amendment, waiver or other
modification with respect to this Agreement shall, without the consent of all of the Lenders:

     (i) extend the final maturity of any Loan to a date after the Facility Termination
Date;

     (ii) postpone any regularly scheduled payment of principal of any Loan or reduce or
forgive all or any portion of the principal amount of any Loan or any Reimbursement
Obligation;

     (iii) reduce the rate, extend the time of payment of or forgive any interest or fees
payable to the Lenders pursuant to any Loan Document;

     (iv) reduce the percentage or number of Lenders specified in the definition of Required
Lenders;

     (v) extend the Facility Termination Date;

     (vi) except as provided for and in accordance with Section 2.28, increase the
amount of the Aggregate Commitment hereunder;

     (vii) increase the advance rates set forth in the definition of Domestic Borrowing Base
above the initial levels;

     (viii) amend the definition of Eligible Accounts or Eligible Inventory if the result of
such amendment would be to materially increase Availability;

     (ix) permit any Loan Party to assign its rights under this Agreement;

     (x) amend this Section 8.3;

     (xi) release any guarantor of any Credit Extension, except as otherwise permitted
herein or in the other Loan Documents;

     (xii) except as provided in Section 10.16 or any Collateral Document, release
all or substantially all of the Collateral;

     (xiii) waive any Default (as defined in the Indenture) or Event of Default (as defined
in the Indenture) under the Indenture or any agreement executed by the Domestic Borrower in
connection therewith; or

     (xiv) allow the Agent and the Lenders to make any Loan that does not constitute
Permitted Debt (as defined in the Indenture) during a Fixed Charge Covenant Ratio Condition.

 

 

     (c) No amendment of any provision of this Agreement relating to the Agent or to the
Non-Ratable Loans, the Overadvances or the Protective Advances shall be effective without the
written consent of the Agent. No amendment of any provision relating to the LC Issuer shall be
effective without the written consent of the LC Issuer. The Agent may (i) amend the Commitment
Schedule to reflect assignments entered into pursuant to Section 12.3 and amendments to
the Commitment Schedule pursuant to the terms of this Agreement, and (ii) waive payment of
the fee required under Section 12.3(c).

     (d) If, in connection with any proposed amendment, waiver or consent (a “Proposed
Change”) requiring the consent of all Lenders, the consent of the Required Lenders is obtained,
but the consent of other Lenders is not obtained (any such Lender whose consent is not obtained
being referred to herein as a “Non-Consenting Lender”), then, so long as the Agent is not a
Non-Consenting Lender, the Domestic Borrower may elect to replace such Non-Consenting Lender as a
Lender party to this Agreement, provided that, concurrently with such replacement, (i) another bank
or other entity which is reasonably satisfactory to the Domestic Borrower and the Agent shall
agree, as of such date, to purchase for cash the Advances and other Obligations due to the
Non-Consenting Lender pursuant to an Assignment Agreement and to become a Lender for all purposes
under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as
of such date and to comply with the requirements of Section 12.3 applicable to assignments,
and (ii) the Domestic Borrower shall pay to such Non-Consenting Lender in same day funds on the day
of such replacement (A) all interest, fees and other amounts then accrued but unpaid to such
Non-Consenting Lender by the Borrowers hereunder to and including the date of termination,
including without limitation payments due to such Non-Consenting Lender under Sections 3.1,
3.2 and 3.5, and (B) an amount, if any, equal to the payment which would have been due
to such Lender on the day of such replacement under Section 3.4 had the Loans of such
Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender.

     8.4. Preservation of Rights. No delay or omission of the Lenders, the LC Issuer or
the Agent to exercise any right under the Loan Documents shall impair such right or be construed to
be a waiver of any Default or an acquiescence therein, and the making of a Credit Extension
notwithstanding the existence of a Default or the inability of the Borrower to satisfy the
conditions precedent to such Credit Extension shall not constitute any waiver or acquiescence. Any
single or partial exercise of any such right shall not preclude other or further exercise thereof
or the exercise of any other right, and no waiver, amendment or other variation of the terms,
conditions or provisions of the Loan Documents whatsoever shall be valid unless in writing signed
by the Lenders required pursuant to Section 8.3, and then only to the extent in such
writing specifically set forth. All remedies contained in the Loan Documents or by law afforded
shall be cumulative and all shall be available to the Agent, the LC Issuer and the Lenders until
the Obligations have been paid in full.

 

 

ARTICLE IX

GENERAL PROVISIONS

     9.1. Survival of Representations. All representations and warranties of the Loan
Parties contained in this Agreement and the other Loan Documents shall survive the execution and
delivery of the Loan Documents and the making of the Credit Extensions herein contemplated.

     9.2. Governmental Regulation. Anything contained in this Agreement to the contrary
notwithstanding, neither the LC Issuer nor any Lender shall be obligated to extend credit to the
Borrower in violation of any limitation or prohibition provided by any applicable statute or
regulation.

     9.3. Headings. Section headings in the Loan Documents are for convenience of reference
only, and shall not govern the interpretation of any of the provisions of the Loan Documents.

     9.4. Entire Agreement. The Loan Documents embody the entire agreement and
understanding among the Loan Parties, the Agent, the LC Issuer and the Lenders and supersede all
prior agreements and understandings among the Loan Parties, the Agent and the Lenders relating to
the subject matter thereof other than those contained in the fee letter described in Section
10.13 which shall survive and remain in full force and effect during the term of this
Agreement.

     9.5. Several Obligations; Benefits of this Agreement. The respective obligations of
the Lenders hereunder are several and not joint and no Lender shall be the partner or agent of any
other lender (except to the extent to which the Agent is authorized to act as administrative agent
for the Lenders hereunder). The failure of any Lender to perform any of its obligations hereunder
shall not relieve any other Lender from any of its obligations hereunder. This Agreement shall not
be construed so as to confer any right or benefit upon any Person other than the parties to this
Agreement and their respective successors and assigns, provided however, that the parties hereto
expressly agree that the Arranger shall enjoy the benefits of the provisions of Sections 9.6,
9.10 and 10.11 to the extent specifically set forth therein and shall have the right to enforce
such provisions on its own behalf and in its own name to the same extent as if it were a party to
this Agreement.

     9.6. Expenses; Indemnification.

     (a) The Domestic Borrower shall reimburse the Agent and the Arranger (and each Lender up to a
maximum amount of $2,500) for any costs, internal charges and out-of-pocket expenses (including
attorneys’ fees and time charges of attorneys for the Agent, which attorneys may be employees of
the Agent) paid or incurred by the Agent or the Arranger in connection with the preparation,
negotiation, execution, delivery, syndication, distribution (including, without limitation, via the
internet or through a service such as Intralinks), review, amendment, modification, and
administration of the Loan Documents. The Domestic Borrower also agrees to

 

 

reimburse the Agent,
the Arranger, the LC Issuer and the Lenders for any costs, internal charges and out-of-pocket
expenses (including attorneys’ fees and time charges of attorneys for the Agent, the Arranger, the
LC Issuer and the Lenders, which attorneys may be employees of the Agent, the Arranger, the LC
Issuer or the Lenders) paid or incurred by the Agent, the Arranger, the LC Issuer or any Lender in
connection with the restructuring, collection and enforcement of the Loan Documents. Expenses
being reimbursed by the Domestic Borrower under this Section 9.6 include, without
limitation, costs and expenses incurred in connection with:

     (i) appraisals of all or any portion of the Collateral, each parcel of real Property or
interest in real Property described in any Collateral Document, which appraisals shall be in
conformity with the applicable requirements of any law or any governmental rule, regulation,
policy, guideline or directive (whether or not having the force of law), or any
interpretation thereof, including, without limitation, the provisions of Title XI of the
Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, reformed or
otherwise modified from time to time, and any rules promulgated to implement such provisions
(including travel, lodging, meals and other out of pocket expenses for inspections of the
Collateral and the Borrower’s operations by the Agent) plus the Agent’s then
customary charge for field examinations and audits and the preparation of certain audit
reports (the “Reports”) which the Borrower acknowledges may be prepared by Chase
from time to time and which the Borrower agrees may be distributed to the Lenders by Chase
pertaining to the Borrower’s assets from information furnished to it by or on behalf of the
Borrower, after Chase has exercised its rights of inspection pursuant to this Agreement
(such charge is currently $850 per day (or portion thereof) for each Person retained or
employed by the Agent with respect to each field examination or audit) (provided, however,
that if, during the period comprised of the 12 Fiscal Months immediately prior to the
scheduled commencement of the first field exam in any Fiscal Year, Availability is not less
than $25,000,000 for 3 consecutive Business Days or any 5 Business Days in any of such
Fiscal Months, the Agent shall only conduct that one field exam during such Fiscal Year);

     (ii) any amendment, modification, supplement, consent, waiver or other documents
prepared with respect to any Loan Document and the transactions contemplated thereby;

     (iii) lien and title searches and title insurance;

     (iv) taxes, fees and other charges for recording the Mortgages, filing financing
statements and continuations, and other actions to perfect, protect, and continue the
Agent’s Liens (including costs and expenses paid or incurred by the Agent in connection with
the consummation of the Agreement);

     (v) sums paid or incurred to take any action required of the Borrower under the Loan
Documents that the Borrower fails to pay or take;

     (vi) any litigation, contest, dispute, proceeding or action (whether instituted by the
Agent, the LC Issuer, any Lender, any Loan Party or any other Person and whether as

 

 

to party, witness or otherwise) in any way relating to the Collateral, the Loan Documents or
the transactions contemplated thereby; and

     (vii) costs and expenses of forwarding loan proceeds, collecting checks and other items
of payment, and establishing and maintaining the Funding Account and lock boxes, and costs
and expenses of preserving and protecting the Collateral.

     The foregoing shall not be construed to limit any other provisions of the Loan Documents
regarding costs and expenses to be paid by the Borrower. All of the foregoing costs and expenses
may be charged to the applicable Borrower’s Loan Account as Revolving Loans or to another deposit
account, all as described in Section 2.17(b).

     (b) The Domestic Borrower hereby further agrees to indemnify the Agent, the Arranger, the LC
Issuer, each Lender, their respective Affiliates, and each of their directors, officers and
employees against all losses, claims, damages, penalties, judgments, liabilities and expenses
(including, without limitation, all expenses of litigation or preparation therefor whether or not
the Agent, the Arranger, the LC Issuer any Lender or any Affiliate is a party thereto) which any of
them may pay or incur arising out of or relating to this Agreement, the other Loan Documents, the
transactions contemplated hereby or the direct or indirect application or proposed application of
the proceeds of any Credit Extension hereunder except to the extent that they are determined in a
final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the party seeking indemnification. The obligations of the
Domestic Borrower under this Section 9.6 shall survive the termination of this Agreement.

     9.7. Numbers of Documents. All statements, notices, closing documents, and requests
hereunder shall be furnished to the Agent with sufficient counterparts so that the Agent may
furnish one to each of the Lenders.

     9.8. Accounting. Except as provided to the contrary herein, all accounting terms used
herein shall be interpreted and all accounting determinations hereunder shall be made in accordance
with GAAP in a manner consistent with that used in preparing the financial statements referred to
in Section 5.5, except that any calculation or determination which is to be made on a
consolidated basis shall be made for the Domestic Borrower and all of its Subsidiaries, including
those Subsidiaries, if any, which are unconsolidated on the Domestic Borrower’s audited financial
statements. If at any time any change in GAAP would affect the computation of any financial ratio
or requirement set forth in any Loan Document, and the Domestic Borrower, the Agent or the Required
Lenders shall so request the Agent, the Lenders and the Loan Parties shall negotiate in good faith
to amend such ratio or requirement to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Lenders), provided that, until so amended, such
ratio or requirement shall continue to be computed in accordance with GAAP prior to such change
therein and the Domestic Borrower shall provide to the Agent and the Lenders reconciliation
statements showing the difference in such calculation, together with the delivery of monthly,
quarterly and annual financial statements required hereunder.

 

 

     9.9. Severability of Provisions. Any provision in any Loan Document that is held to
be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable, or invalid without affecting the remaining provisions in that
jurisdiction or the operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared to be severable.

     9.10. Nonliability of Lenders. The relationship between any Loan Party on the one
hand and the Lenders, the LC Issuer and the Agent on the other hand shall be solely that of debtor
and creditor. Neither the Agent, the Arranger, the LC Issuer nor any Lender shall have any
fiduciary responsibilities to any Loan Party. Neither the Agent, the Arranger, the LC Issuer nor
any Lender undertakes any responsibility to any Loan Party to review or inform such Loan Party of
any matter in connection with any phase of any Loan Party’s business or operations. The Loan
Parties agree that neither the Agent, the Arranger, the LC Issuer nor any Lender shall have
liability to any Loan Party (whether sounding in tort, contract or otherwise) for losses suffered
by any Loan Party in connection with, arising out of, or in any way related to, the transactions
contemplated and the relationship established by the Loan Documents, or any act, omission or event
occurring in connection therewith, unless it is determined in a final non-appealable judgment by a
court of competent jurisdiction that such losses resulted from the gross negligence or willful
misconduct of the party from which recovery is sought. Neither the Agent, the Arranger, the LC
Issuer nor any Lender shall have any liability with respect to, and each Loan Party hereby waives,
releases and agrees not to sue for, any special, indirect, consequential or punitive damages
suffered by any Loan Party in connection with, arising out of, or in any way related to the Loan
Documents or the transactions contemplated thereby.

     9.11. Confidentiality. Each Lender agrees to hold any confidential information which
it may receive from any Loan Party in connection with this Agreement in confidence, except for
disclosure (a) to its Affiliates and to other Lenders and
their respective Affiliates, (b) to legal counsel, accountants, and other professional
advisors to such Lender or to a Transferee, (c) to regulatory officials, (d) to any Person as
requested pursuant to or as required by law, regulation, or legal process, (e) to any Person in
connection with any legal proceeding to which such Lender is a party, (f) to such Lender’s direct
or indirect contractual counterparties in swap agreements or to legal counsel, accountants and
other professional advisors to such counterparties, (g) permitted by Section 12.4 and (h)
to rating agencies if requested or required by such agencies in connection with a rating relating
to the Credit Extensions hereunder. Notwithstanding anything herein to the contrary, confidential
information shall not include, and each Lender (and each employee, representative or other agent of
any Lender) may disclose to any and all Persons, without limitation of any kind, the “tax
treatment” and “tax structure” (in each case, within the meaning of Treasury Regulation Section
1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions
or other tax analyses) that are or have been provided to such Lender relating to such tax treatment
or tax structure; provided that, with respect to any document or similar item that in either case
contains information concerning such tax treatment or tax structure of the transactions
contemplated hereby as well as other information, this sentence shall only apply to such portions
of the document or similar item that relate to such tax treatment or tax structure.

 

 

     9.12. Nonreliance. Each Lender hereby represents that it is not relying on or looking
to any Margin Stock for the repayment of the Credit Extensions provided for herein.

     9.13 Disclosure. Each Loan Party and each Lender hereby acknowledges and agrees that
Chase and/or its Affiliates from time to time may hold investments in, make other loans to or have
other relationships with any of the Loan Parties and their respective Affiliates.

     9.14 Judgment Currency. If the Agent, on behalf of any Lender, obtains a judgment or
a judgment against a Borrower in a currency other than Dollars, the obligations of such Borrower in
respect of any sum adjudged to be due to the Agent or the Lenders hereunder or under the Revolving
Notes (the “Judgment Amount”) shall be discharged only to the extent that, on the Business
Day following receipt by the Agent of the Judgment Amount in such currency the Agent, in accordance
with normal banking procedures, purchases Dollars with the Judgment Amount in such currency. If
the amount of Dollars so purchased is less than the amount of Dollars that could have been
purchased with the Judgment Amount on the date or dates the Judgment Amount (excluding the portion
of the Judgment Amount which has accrued as a result of the failure of such Borrower to pay the sum
originally due hereunder or under the Revolving Notes when it was originally due and owing to the
Agent or any Lender hereunder or under the Revolving Notes) was originally due and owing to the
Agent or any Lender hereunder or under the Notes (the “Original Due Date”) (the
“Loss”), such Borrower agrees as a separate obligation and notwithstanding any such
judgment, to indemnify the Agent or such Lender, as the case may be, against the Loss, and if the
amount of Dollars so purchased exceeds the amount of Dollars that could have been purchased with
the Judgment Amount on the Original Due Date, the Agent or such Lender agrees to remit such excess
to such Borrower.

     9.15 Currency Equivalent Generally. For the purposes of making valuations or
computations under this Agreement (but not for the purposes of the preparation of any financial
statements delivered pursuant hereto), unless expressly provided otherwise, where a reference is
made to a dollar amount the amount is to be considered as the amount in Dollars and, therefor, each
other currency shall be converted into the Dollar Equivalent.

     9.16 No Cross Collateralization. For the avoidance of doubt, the parties hereto agree
that (i) the Collateral securing the Secured Obligations of the Canadian Loan Parties shall not
constitute security for the Obligations of the Domestic Loan Parties; and (ii) the Collateral
securing the Secured Obligations of the UK Loan Parties shall not constitute security for the
Obligations of the Domestic Loan Parties.

     9.17. Amendment and Restatement.

     (a) Existing Obligations. The Loan Parties each hereby acknowledge, confirm and agree
that the Loan Parties are indebted to the Agent and the Lenders for outstanding loans and advances
to the Loan Parties under the Existing Credit Agreement, together with all interest accrued and
accruing thereon (to the extent applicable), and all fees, costs, expenses and other charges
relating thereto, all of which are unconditionally owing by the Loan Parties to the Agent and the
Lenders to the extent set forth in the Existing Credit Agreement, without offset, defense or
counterclaim of any kind, nature or description whatsoever.

 

 

     (b) Acknowledgment of Security Interests.

     (i) The Loan Parties each hereby acknowledge, confirm and agree that the Agent, the
Canadian Correspondent Lender and the UK Correspondent Lender, for the benefit of the
Lenders, shall continue to have a security interest in and lien upon the Collateral
heretofore granted to such parties pursuant to the Existing Loan Documents to secure the
Obligations, as well as any Collateral granted under this Agreement or under any of the
Collateral Documents or otherwise granted to or held by the Agent, the Canadian
Correspondent Lender and the UK Correspondent Lender, for the benefit of the Lenders, or any
Lender.

     (ii) The liens and security interests of the Agent, the Canadian Correspondent Lender
and the UK Correspondent Lender, for the benefit of the Lenders, in the Collateral shall be
deemed to be continuously granted and perfected from the earliest date of the granting and
perfection of such liens and security interests to Agent, the Canadian Correspondent Lender
and the UK Correspondent Lender, for the benefit of the Lenders, whether under the Existing
Credit Agreement, this Agreement or any of the Collateral Documents.

     (c) Existing Agreements. The Loan Parties each hereby acknowledge, confirm and agree
that, subject to Section 9.17(d) hereof: (i) the Existing Credit Agreement has been duly
executed and delivered by the Loan Parties and is in full force and effect as of the date
hereof; (ii) the agreements and obligations of the Loan Parties contained in the Existing Credit
Agreement constitute the legal, valid and binding obligations of the Loan Parties enforceable
against each Loan Party in accordance with its terms and no Loan Party has a valid defense to the
enforcement of such obligations; and (iii) the Agent and the other Lenders are entitled to all of
the rights, remedies and benefits provided for in or arising pursuant to the Existing Credit
Agreement.

     (d) Restatement.

     (i) Except as otherwise stated in Section 9.17(b) hereof and this Section
9.17(d), as of the date hereof, the terms, conditions, agreements, covenants,
representations and warranties set forth in the Existing Credit Agreement are simultaneously
amended and restated in their entirety (excluding the Schedules prepared as of the Closing
Date, which shall be superceded by the Schedules delivered on and after the Effective Date),
and as so amended and restated, replaced and superseded by the terms, conditions,
agreements, covenants, representations and warranties set forth in this Agreement and the
other Loan Documents executed or delivered on or after the date hereof, except that nothing
herein or in the other Loan Documents shall impair or adversely affect the continuation of
the liability of the Loan Parties for the Obligations heretofore incurred and the security
interests, liens and other interests in the Collateral heretofore granted, pledged or
assigned by the Loan Parties to the Agent or any Lender (whether directly, indirectly or
otherwise).

 

 

     (ii) The amendment and restatement contained herein shall not, in any manner, be
construed to constitute payment of, or impair, limit, cancel or extinguish, or constitute a
novation in respect of, the Obligations of the Loan Parties evidenced by or arising under
the Existing Credit Agreement, and the Liens and security interests of the Agent, the
Canadian Correspondent Lender and the UK Correspondent Lender, for the benefit of the
Lenders, securing such Obligations and other obligations and liabilities, which shall not in
any manner be impaired, limited, terminated, waived or released, but shall continue in full
force and effect in favor of the Agent, the Canadian Correspondent Lender and the UK
Correspondent Lender, for the benefit of themselves and the Lenders.

     (iii) All loans, advances and other financial accommodations under the Existing Credit
Agreement and all other Obligations of the Loan Parties to the Agent, the Canadian
Correspondent Lender and the UK Correspondent Lender, for the benefit of the Lenders, and
the other Lenders outstanding and unpaid as of the date hereof pursuant to the Existing
Credit Agreement or otherwise shall be deemed Obligations of the Loan Parties pursuant to
the terms hereto.

ARTICLE X

THE AGENT

     10.1. Appointment; Nature of Relationship. Chase (referred to in this Agreement,
except for this Article X, as the “Agent”) is hereby appointed by each of the Lenders as
its contractual representative, the Canadian Correspondent Lender is hereby appointed by each of
the Canadian Lenders as its contractual representative, and the UK Correspondent Lender is hereby
appointed by each of the UK Lenders as its contractual representative (each, collectively referred
to in this Article X only as the “Agent”) hereunder and under each other Loan Document, and
each of the Lenders irrevocably authorizes the Agent to act as the contractual representative of
such Lender with the rights and duties expressly set forth herein and in the other Loan Documents.
The Agent agrees to act as such contractual representative upon the express conditions contained in
this Article X. Notwithstanding the use of the defined term “Agent,” it is expressly
understood and agreed that the Agent shall not have any fiduciary responsibilities to any Lender by
reason of this Agreement or any other Loan Document and that the Agent is merely acting as the
contractual representative of the Lenders with only those duties as are expressly set forth in this
Agreement and the other Loan Documents. In its capacity as the Lenders’ contractual
representative, the Agent (a) does not hereby assume any fiduciary duties to any of the Lenders,
(b) is a “representative” of the Lenders within the meaning of the term “secured party” as defined
in the UCC and (c) is acting as an independent contractor, the rights and duties of which are
limited to those expressly set forth in this Agreement and the other Loan Documents. Each of the
Lenders hereby agrees to assert no claim against the Agent on any agency theory or any other theory
of liability for breach of fiduciary duty, all of which claims each Lender hereby waives.

     10.2. Powers. The Agent shall have and may exercise such powers under the Loan
Documents as are specifically delegated to the Agent by the terms of each thereof, together with
such powers as are reasonably incidental thereto. The Agent shall have no implied duties to the

 

 

Lenders, or any obligation to the Lenders to take any action thereunder except any action
specifically provided by the Loan Documents to be taken by the Agent.

     10.3. General Immunity. Neither the Agent nor any of its directors, officers, agents
or employees shall be liable to any Loan Party, the Lenders or any Lender for any action taken or
omitted to be taken by it or them hereunder or under any other Loan Document or in connection
herewith or therewith except to the extent such action or inaction is determined in a final
non-appealable judgment by a court of competent jurisdiction to have arisen from the gross
negligence or willful misconduct of such Person.

     10.4. No Responsibility for Credit Extensions, Recitals, etc. Neither the Agent nor
any of its directors, officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into, or verify (a) any statement, warranty or representation made in connection
with any Loan Document or any borrowing hereunder; (b) the performance or observance of any of the
covenants or agreements of any obligor under any Loan Document, including, without limitation, any
agreement by an obligor to furnish information directly to each Lender; (c) the satisfaction of any
condition specified in Article IV, except receipt of items required to be delivered solely
to the Agent; (d) the existence or possible existence of any Default or Unmatured Default; (e) the
validity, enforceability, effectiveness, sufficiency or genuineness of any Loan Document or any
other instrument or writing furnished in connection therewith; (f) the value, sufficiency,
creation, perfection or priority of any Lien in any Collateral; (g) the financial condition of any
Loan Party, any Guarantor or any Affiliate of any Loan Party, or (h) during a Fixed Charge Coverage
Ratio Condition, whether the Loans or other Obligations constitute Permitted Debt (as defined in
the Indenture); and, to the extent such Loans or other Obligations do not constitute Permitted
Debt, each Lender shall continue to remain liable for its Pro Rata Share of such Loans and other
Obligations. The Agent shall have no duty to disclose to the Lenders information that is not
required to be furnished by the Loan Parties to the Agent at such time, but is voluntarily
furnished by any Loan Party to the Agent (either in its capacity as the Agent or in its individual
capacity). Each Lender has received a copy of the Indenture and has reviewed the terms and
conditions thereof, including, but limited to, the conditions relating to the status of the
Obligations as Designated Senior Debt (as defined in the Indenture) and Senior Debt (as defined in
the Indenture) under the Indenture. Furthermore, none of the Lenders shall be deemed to have a
fiduciary relationship with any other Lender.

     10.5. Action on Instructions of the Lenders. The Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder and under any other Loan Document in
accordance with written instructions signed by the Required Lenders, and such instructions and any
action taken or failure to act pursuant thereto shall be binding on all of the Lenders. The
Lenders hereby acknowledge that the Agent shall be under no duty to take any discretionary action
permitted to be taken by it pursuant to the provisions of this Agreement or any other Loan Document
unless it shall be requested in writing to do so by the Required Lenders. The Agent shall be fully
justified in failing or refusing to take any action hereunder and under any other Loan Document
unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and
all liability, cost and expense that it may incur by reason of taking or continuing to take any
such action.

 

 

     10.6. Employment of Agents and Counsel. The Agent may execute any of its duties as
Agent hereunder and under any other Loan Document by or through employees, agents, and
attorneys-in-fact and shall not be answerable to the Lenders, except as to money or securities
received by the Agent or its authorized agents, for the default or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care. The Agent shall be entitled to advice of
counsel concerning the contractual arrangement between the Agent and the Lenders and all matters
pertaining to the Agent’s duties hereunder and under any other Loan Document.

     10.7. Reliance on Documents; Counsel. The Agent shall be entitled to rely upon any
Revolving Note, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex,
electronic mail message, statement, paper or document believed by it to be genuine and correct and
to have been signed or sent by the proper person or persons, and, in respect to legal matters, upon
the opinion of counsel selected by the Agent, which counsel may be employees of the Agent. For
purposes of determining compliance with the conditions specified in Sections 4.1 and 4.2,
each Lender that has signed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required thereunder to be consented
to or approved by or
acceptable or satisfactory to a Lender unless the Agent shall have received notice from such Lender
prior to the applicable date specifying its objection thereto.

     10.8. Agent’s Reimbursement and Indemnification. The Lenders agree to reimburse and
indemnify the Agent ratably in proportion to their respective Commitments (or, if the Commitments
have been terminated, in proportion to their Commitments immediately prior to such termination) (a)
for any amounts not reimbursed by the Borrower for which the Agent is entitled to reimbursement by
the Borrower under the Loan Documents, (b) for any other expenses incurred by the Agent on behalf
of the Lenders, in connection with the preparation, execution, delivery, administration and
enforcement of the Loan Documents (including, without limitation, for any expenses incurred by the
Agent in connection with any dispute between the Agent and any Lender or between two or more of the
Lenders) and (c) for any liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind and nature whatsoever which may be imposed on,
incurred by or asserted against the Agent in any way relating to or arising out of the Loan
Documents or any other document delivered in connection therewith or the transactions contemplated
thereby (including, without limitation, for any such amounts incurred by or asserted against the
Agent in connection with any dispute between the Agent and any Lender or between two or more of the
Lenders), or the enforcement of any of the terms of the Loan Documents or of any such other
documents, provided that, (i) no Lender shall be liable for any of the foregoing to the extent any
of the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction
to have resulted from the gross negligence or willful misconduct of the Agent and (ii) any
indemnification required pursuant to Section 3.5(g) shall, notwithstanding the provisions
of this Section 10.8, be paid by the relevant Lender in accordance with the provisions
thereof. The obligations of the Lenders under this Section 10.8 shall survive payment of
the Obligations and termination of this Agreement.

     10.9. Notice of Default. The Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default or Unmatured Default hereunder unless the Agent has received written
notice from a Lender or the Domestic Borrower, referring to this Agreement describing

 

 

such Default
or Unmatured Default and stating that such notice is a “notice of default.” In the event that the
Agent receives such a notice, the Agent shall give prompt notice thereof to the Lenders; provided,
that, the Agent shall not be liable to any Lender for any failure to do so, except to the extent
that such failure is attributable to the Agent’s gross negligence or willful misconduct.

     10.10. Rights as a Lender. In the event the Agent is a Lender, the Agent shall have
the same rights and powers hereunder and under any other Loan Document with respect to its
Commitment and its Credit Extensions as any Lender and may exercise the same as though it were not
the Agent, and the term “Lender” or “Lenders” shall, at any time when the Agent is
a Lender, unless the context otherwise indicates, include the Agent in its individual capacity.
The Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any
kind of trust, debt, equity or other transaction, in addition to those contemplated by this
Agreement or any other Loan Document, with any Loan Party in which such Loan Party is not
restricted hereby from engaging with any other
Person, all as if Chase were not the Agent and without any duty to account therefor to Lenders.
Chase and its Affiliates may accept fees and other consideration from any Loan Party for services
in connection with this Agreement or otherwise without having to account for the same to Lenders.
The Agent in its individual capacity, is not obligated to remain a Lender.

     10.11. Lender Credit Decision. Each Lender acknowledges that it has, independently
and without reliance upon the Agent, the Arranger or any other Lender and based on the financial
statements prepared by the Loan Parties and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement and the other
Loan Documents. Each Lender also acknowledges that it will, independently and without reliance
upon the Agent, the Arranger or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under this Agreement and the other Loan Documents.

     10.12. Successor Agent. The Agent may resign at any time by giving written notice
thereof to the Lenders and the Domestic Borrower, such resignation to be effective upon the
appointment of a successor Agent or, if no successor Agent has been appointed, forty-five days
after the retiring Agent gives notice of its intention to resign. The Agent may be removed at any
time with or without cause by written notice received by the Agent from the Required Lenders, such
removal to be effective on the date specified by the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint, on behalf of the Borrower and the
Lenders, a successor Agent. If no successor Agent shall have been so appointed by the Required
Lenders within thirty days after the resigning Agent’s giving notice of its intention to resign,
then the resigning Agent may appoint, on behalf of the Borrower and the Lenders, a successor Agent.
Notwithstanding the previous sentence, the Agent may at any time without the consent of the
Borrower or any Lender, appoint any of its Affiliates which is a commercial bank as a successor
Agent hereunder. If the Agent has resigned or been removed and no successor Agent has been
appointed, the Lenders may perform all the duties of the Agent hereunder and the Borrower shall
make all payments in respect of the Obligations to the Lenders and for all other purposes shall
deal directly with the Lenders. No successor Agent shall be deemed to be appointed hereunder until
such successor Agent has accepted the appointment.

 

 

Any such successor Agent shall be a commercial
bank having capital and retained earnings of at least $100,000,000. Upon the acceptance of any
appointment as the Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties of the resigning or
removed the Agent. Upon the effectiveness of the resignation or removal of the Agent, the
resigning or removed Agent shall be discharged from its duties and obligations hereunder and under
the Loan Documents. After the effectiveness of the resignation or removal of an Agent, the
provisions of this Article X shall continue in effect for the benefit of such Agent in
respect of any actions taken or omitted to be taken by it while it was acting as the Agent
hereunder and under the other Loan Documents. In the event that there is a successor to the Agent
by merger, or the Agent assigns its duties and obligations to an Affiliate pursuant to this
Section 10.12, then the term “Prime Rate” as used in this Agreement shall mean the
prime rate, base rate or other analogous rate of the new Agent.

     10.13. Agent and Arranger Fees. The Domestic Borrower agrees to pay to Chase and the
Arranger, for their respective accounts, the fees agreed to by the Domestic Borrower, such Agent
and the Arranger pursuant to that certain letter agreement dated June 24, 2003, or as otherwise
agreed from time to time.

     10.14. Delegation to Affiliates. The Borrower and the Lenders agree that the Agent
may delegate any of its duties under this Agreement to any of its Affiliates. Any such Affiliate
(and such Affiliate’s directors, officers, agents and employees) which performs duties in
connection with this Agreement shall be entitled to the same benefits of the indemnification,
waiver and other protective provisions to which the Agent is entitled under Articles IX and
X.

     10.15. Execution of Loan Documents. The Lenders hereby empower and authorize the
Agent, on behalf of the Agent and the Lenders, to execute and deliver to the Loan Parties the Loan
Documents and all related agreements, certificates, documents, or instruments as shall be necessary
or appropriate to effect the purposes of the Loan Documents. Each Lender agrees that any action
taken by the Agent or the Required Lenders in accordance with the terms of this Agreement or the
other Loan Documents, and the exercise by the Agent or the Required Lenders of their respective
powers set forth therein or herein, together with such other powers that are reasonably incidental
thereto, shall be binding upon all of the Lenders. The Lenders acknowledge that all of the
Obligations hereunder constitute one debt, secured pari passu by all of the Collateral.

     10.16. Collateral Matters

     (a) The Lenders hereby irrevocably authorize the Agent, at its option and in its sole
discretion, to release any Liens granted to the Agent by the Loan Parties on any Collateral (i)
upon the termination of the Aggregate Commitment, payment and satisfaction in full in cash of all
Obligations (other than Unliquidated Secured Obligations), and the cash collateralization of all
Unliquidated Secured Obligations in a manner satisfactory to each affected Lender, (ii)
constituting Property being sold or disposed of if the Loan Party disposing of such Property
certifies to the Agent that the sale or disposition is made in compliance with the terms of this
Agreement (and the Agent may rely conclusively on any such certificate, without further inquiry),
(iii) constituting Property in which no Loan Party has at any time during the term of this
Agreement owned any interest, (iv) constituting property leased to a Loan Party under a lease

 

 

which
has expired or been terminated in a transaction permitted under this Agreement, (v) owned by or
leased to an Loan Party which is subject to a purchase money security interest or which is the
subject of a Capitalized Lease, in either case, entered into by such Loan Party pursuant to
Section 6.16(c), or (vi) as required to effect any sale or other disposition of such
Collateral in connection with any exercise of remedies of the Agent and the Lenders pursuant to
Section 8.1. Upon request by the Agent at any time, the Lenders will confirm in writing
the Agent’s authority to release any Liens upon particular types or items of Collateral pursuant to
this Section 10.16. Except as provided in the preceding sentence, the Agent will not
release any Liens on Collateral without the prior written authorization of the Required Lenders or
all of the Required Lenders as the case may be; provided that, the Agent may in its discretion,
release its Liens on Collateral valued in the aggregate not in excess of $5,000,000 during any
Fiscal Year without the prior written authorization of the Lenders.

     (b) Upon receipt by the Agent of any authorization required pursuant to Section
10.16(a) from the Required Lenders of the Agent’s authority to release any Liens upon
particular types or items of Collateral, and upon at least five Business Days prior written request
by the Loan Parties, the Agent shall (and is hereby irrevocably authorized by the Lenders to)
execute such documents as may be necessary to evidence the release of its Liens upon such
Collateral; provided that, (i) the Agent shall not be required to execute any such document on
terms which, in the Agent’s opinion, would expose the Agent to liability or create any obligation
or entail any consequence other than the release of such Liens without recourse or warranty and
(ii) such release shall not in any manner discharge, affect, or impair the Obligations or any Liens
(other than those expressly being released) upon (or obligations of the Loan Parties in respect of)
all interests retained by the Loan Parties, including the proceeds of any sale, all of which shall
continue to constitute part of the Collateral.

     (c) The Agent shall have no obligation whatsoever to any of the Lenders to assure that the
Collateral exists or is owned by the Loan Parties or is cared for, protected, or insured or has
been encumbered, or that the Liens granted to the Agent therein have been properly or sufficiently
or lawfully created, perfected, protected, or enforced or are entitled to any particular priority,
or to exercise at all or in any particular manner or under any duty of care, disclosure, or
fidelity, or to continue exercising, any of the rights, authorities, and powers granted or
available to the Agent pursuant to any of the Loan Documents, it being understood and agreed that
in respect of the Collateral, or any act, omission, or event related thereto, the Agent may act in
any manner it may deem appropriate, in its sole discretion given the Agent’s own interest in the
Collateral in its capacity as one of the Lenders and that the Agent shall have no other duty or
liability whatsoever to any Lender as to any of the foregoing.

     (d) Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting
Liens, for the benefit of the Agent and the Lenders, in assets which, in accordance with Article 9
of the UCC or any other applicable law can be perfected only by possession. Should any Lender
(other than the Agent) obtain possession of any such Collateral, such Lender shall notify the Agent
thereof, and, promptly upon the Agent’s request therefor shall deliver such Collateral to the Agent
or otherwise deal with such Collateral in accordance with the Agent’s instructions.

 

 

     (e) Each Lender hereby agrees as follows: (a) such Lender is deemed to have requested that the
Agent furnish such Lender, promptly after it becomes available, a copy of each Report prepared by
or on behalf of the Agent; (b) such Lender expressly agrees and acknowledges that neither Chase nor
the Agent (i) makes any representation or warranty, express or implied, as to the completeness or
accuracy of any Report or any of the information contained therein, or (ii) shall be liable for any
information contained in any Report; (c) such Lender expressly agrees and acknowledges that the
Reports are not comprehensive audits or examinations, that the Agent, Chase, or any other party
performing any audit or examination will inspect only specific information regarding the Loan
Parties and will rely significantly upon the Loan Parties’ books and records, as well as on
representations of the Loan Parties’ personnel and that Chase undertakes no obligation to update,
correct or supplement the Reports; (d) such Lender agrees to keep all Reports confidential and
strictly for its internal use, not share the Report with any Loan Party and not to distribute any
Report to any other Person except as otherwise permitted pursuant to this Agreement; and (e)
without limiting the generality of any
other indemnification provision contained in this Agreement, such Lender agrees (i) that
neither Chase nor the Agent shall be liable to such Lender or any other Person receiving a copy of
the Report for any inaccuracy or omission contained in or relating to a Report, (ii) to conduct its
own due diligence investigation and make credit decisions with respect to the Loan Parties based on
such documents as such Lender deems appropriate without any reliance on the Reports or on the Agent
or Chase, (iii) to hold the Agent and any such other Person preparing a Report harmless from any
action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw
from any Report in connection with any Credit Extensions that the indemnifying Lender has made or
may make to the Loan Parties, or the indemnifying Lender’s participation in, or the indemnifying
Lender’s purchase of, any Obligations and (iv) to pay and protect, and indemnify, defend, and hold
the Agent and any such other Person preparing a Report harmless from and against, the claims,
actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorney
fees) incurred by the Agent and any such other Person preparing a Report as the direct or indirect
result of any third parties who might obtain all or part of any Report through the indemnifying
Lender.

     10.17. Syndication Agent. The Lender identified in this Agreement as the “Syndication
Agent” shall not have any right, power, obligation, liability, responsibility or duty under this
Agreement other than those applicable to all Lenders as such. Without limiting the foregoing, none
of such Lenders shall have or be deemed to have a fiduciary relationship with any Lender. Each
Lender hereby makes the same acknowledgments with respect to such Lenders as it makes with respect
to the Agent in Section 10.11.

     10.18 Authority with Respect to Québec. For greater certainty, and without limiting
the powers of the Canadian Correspondent Lender under the Loan Documents, each of the Canadian
Lenders, the UK Correspondent Lender, the UK Lenders, the applicable LC Issuers and the Canadian
Correspondent Lender (but solely in its capacity as the holder and depositary of the Bonds (as
defined below)), acknowledges and agrees that the Canadian Correspondent Lender shall, for the
purposes of holding any security granted by RB&W Logistics Canada, Inc. under the Loan Documents
pursuant to the laws of the Province of Québec to secure payment of bonds (or any similar
instruments) (collectively, the “Bonds”), be the holder of an irrevocable power of attorney
(fondé de pouvoir) (within the meaning of Article 2692 of the Civil Code of Québec) for all present
and future Canadian Lenders, UK Lenders, UK Correspondent Lender, applicable LC

 

 

Issuers,
indemnified parties (with respect to Canadian Revolving Loans), as well as holders and depositaries
of the Bonds. Each of the Lenders, the LC Issuer and the Canadian Correspondent Lender (but solely
in its capacity as the holder and depositary of the Bonds) constitutes, to the extent necessary,
the Canadian Correspondent Lender as the holder of such irrevocable power of attorney (fondé de
pouvoir) in order to hold security granted by RB&W Logistics Canada, Inc. under the Loan Documents
in the Province of Québec to secure payment of the Bonds. Each assignee of the Canadian Lenders,
successor UK Correspondent Lender, assignee of the UK Lenders, successor or assignee of the
applicable LC Issuers, indemnified party (with respect to Canadian Revolving Loans and UK Fixed
Rate Loans) and successor Canadian Correspondent Lender (but solely in its capacity as the holder
and depositary of the Bonds) shall be deemed to have confirmed and ratified the constitution of the
Canadian Correspondent Lender as the holder of such irrevocable power of attorney (fondé de
pouvoir). Furthermore, the Canadian
Correspondent Lender hereby agrees to act in the capacity of the holder and depositary of the
Bonds on its own behalf as Canadian Correspondent Lender and for and on behalf and for the benefit
of all present and future Canadian Lenders, applicable LC Issuer and indemnified parties (with
respect to the Canadian Revolving Loans). Notwithstanding the provisions of Section 32 of the
Special Powers of Legal Persons Act (Québec), the Canadian Correspondent Lender may acquire and be
the holder of a Bond. RB&W Logistics Canada, Inc. acknowledges that each of the Bonds executed by
it constitutes a title of indebtedness, as such term is used in Article 2692 of the Civil Code of
Québec. Notwithstanding the provisions of Section 19.1 hereof, the provisions of this
Section 10.18 shall be governed by the laws of the Province of Québec and the federal laws
of Canada applicable therein.

ARTICLE XI

SETOFF; RATABLE PAYMENTS

     11.1. Setoff. In addition to, and without limitation of, any rights of the Lenders
under applicable law, if any Loan Party becomes insolvent, however evidenced, or any Default
occurs, any and all deposits (including all account balances, whether provisional or final and
whether or not collected or available) and any other Indebtedness at any time held or owing by any
Lender or any Affiliate of any Lender to or for the credit or account of the Borrower, or any
Guarantor, may be offset and, if offset, shall be applied toward the payment of the Secured
Obligations, whether or not the Secured Obligations, or any part thereof, shall then be due.

     11.2. Ratable Payments. If any Lender, whether by setoff or otherwise, has payment
made to it upon its Credit Exposure (other than payments received pursuant to Section 3.1, 3.2,
3.4 or 3.5) in a greater proportion than that received by any other Lender, such Lender agrees,
promptly upon demand, to purchase a portion of the Aggregate Credit Exposure held by the other
Lenders so that after such purchase each Lender will hold its Pro Rata Share of the Aggregate
Credit Exposure. If any Lender, whether in connection with setoff or amounts which might be
subject to setoff or otherwise, receives collateral or other protection for its Secured Obligations
or such amounts which may be subject to setoff, such Lender agrees, promptly upon demand, to take
such action necessary such that all Lenders share in the benefits of such collateral ratably in
proportion to respective Pro Rata Share of the Aggregate Credit Exposure. In case any such payment
is disturbed by legal process, or otherwise, appropriate further adjustments shall be made.

 

 

ARTICLE XII

BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

     12.1. Successors and Assigns. The terms and provisions of the Loan Documents shall be
binding upon and inure to the benefit of the Loan Parties and the Lenders and their respective
successors and assigns permitted hereby,
except that (a) the Loan Parties shall not have the right to assign its rights or obligations under
the Loan Documents without the prior written consent of each Lender, (b) any assignment by any
Lender must be made in compliance with Section 12.3, and (c) any transfer by Participation
must be made in compliance with Section 12.2. Any attempted assignment or transfer by any
party not made in compliance with this Section 12.1 shall be null and void, unless such
attempted assignment or transfer is treated as a participation in accordance with Section
12.3. The parties to this Agreement acknowledge that clause (b) of this Section 12.1
relates only to absolute assignments and this Section 12.1 does not prohibit assignments
creating security interests, including, without limitation, any pledge or assignment by any Lender
of all or any portion of its rights under this Agreement and any Revolving Note to a Federal
Reserve Bank; provided however, that no such pledge or assignment creating a security interest
shall release the transferor Lender from its obligations hereunder unless and until the parties
thereto have complied with the provisions of Section 12.3. The Agent may treat the Person
which made any Credit Extension or which holds any Revolving Note as the owner thereof for all
purposes hereof unless and until such Person complies with Section 12.3; provided however,
that the Agent may in its discretion (but shall not be required to) follow instructions from the
Person which made any Credit Extension or which holds any Revolving Note to direct payments
relating to such Credit Extension or Revolving Note to another Person. Any assignee of the rights
to any Credit Extension or any Revolving Note agrees by acceptance of such assignment to be bound
by all the terms and provisions of the Loan Documents. Any request, authority or consent of any
Person, who at the time of making such request or giving such authority or consent is the owner of
the rights to any Credit Extension (whether or not a Revolving Note has been issued in evidence
thereof), shall be conclusive and binding on any subsequent holder or assignee of the rights to
such Credit Extension.

     12.2. Participations.

     (a) Permitted Participants; Effect. Any Lender may at any time sell to one or more
banks or other entities (“Participants”) participating interests in any Credit Exposure of
such Lender, any Revolving Note held by such Lender, any Commitment of such Lender or any other
interest of such Lender under the Loan Documents. In the event of any such sale by a Lender of
participating interests to a Participant, such Lender’s obligations under the Loan Documents shall
remain unchanged, such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, such Lender shall remain the owner of its Credit Exposure and the
holder of any Revolving Note issued to it in evidence thereof for all purposes under the Loan
Documents, all amounts payable by the Borrower under this Agreement shall be determined as if such
Lender had not sold such participating interests, and the Borrower and the

 

 

Agent shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under the Loan Documents.

     (b) Voting Rights. Each Lender shall retain the sole right to approve, without the
consent of any Participant, any amendment, modification or waiver of any provision of the Loan
Documents other than any amendment, modification or waiver with respect to any Credit Extension or
Commitment in which such Participant has an interest which would require consent of all of the
Lenders pursuant to the terms of Section 8.3 or of any other Loan Document.

     (c) Benefit of Certain Provisions. Each Loan Party agrees that each Participant shall
be deemed to have the right of setoff provided in Section 11.1 in respect of its
participating interest in amounts owing under the Loan Documents to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under the Loan
Documents, provided that, each Lender shall retain the right of setoff provided in Section
11.1 with respect to the amount of participating interests sold to each Participant. The
Lenders agree to share with each Participant, and each Participant, by exercising the right of
setoff provided in Section 11.1, agrees to share with each Lender, any amount received
pursuant to the exercise of its right of setoff, such amounts to be shared in accordance with
Section 11.2 as if each Participant were a Lender. The Borrower further agrees that each
Participant shall be entitled to the benefits of Sections 3.1, 3.2, 3.4 and 3.5 to the same
extent as if it were a Lender and had acquired its interest by assignment pursuant to Section
12.3, provided that, (i) a Participant shall not be entitled to receive any greater payment
under Section 3.1, 3.2 or 3.5 than the Lender who sold the participating interest to such
Participant would have received had it retained such interest for its own account, unless the sale
of such interest to such Participant is made with the prior written consent of the Domestic
Borrower, and (ii) any Participant not incorporated under the laws of the U.S. or any state thereof
agrees to comply with the provisions of Section 3.5 to the same extent as if it were a
Lender.

     12.3. Assignments.

     (a) Permitted Assignments. Any Lender may at any time assign to one or more banks or
other entities (“Purchasers”) all or any part of its rights and obligations under the Loan
Documents. Such assignment shall be substantially in the form of Exhibit G (an
“Assignment Agreement”); provided, however, that neither such Lender nor any of its
successors or assigns shall assign or transfer any interest herein without obtaining a prior
determination from the Domestic Borrower that any such assignment or transfer would not result, at
the time of such transfer or assignment, in a non-exempt prohibited transaction under Section 406
of ERISA or Section 4975 of the Code with respect to any Employee Benefit Plan. Anything herein to
the contrary notwithstanding, such Lender and its successors or assigns may at any time assign or
transfer any interest herein if an Unmatured Default or Default has occurred, such assignment or
transfer is to another Lender or any Affiliate of a Lender, or such assignment or transfer is to a
Federal Reserve Bank. Each such assignment with respect to a Purchaser which is not a Lender or an
Affiliate of a Lender shall either be in an amount equal to the entire applicable Commitment and
Credit Extensions of the assigning Lender or (unless the Domestic Borrower and the Agent otherwise
consents) be in an aggregate amount not less than $10,000,000. The amount of the assignment shall
be based on the Commitment or outstanding Credit Extensions (if

 

 

the Commitment has been terminated)
subject to the assignment, determined as of the date of such assignment or as of the “Trade Date,”
if the “Trade Date” is specified in the assignment.

     (b) Consents. The consent of the Domestic Borrower shall be required prior to an
assignment becoming effective unless the Purchaser is a Lender or an Affiliate of a Lender,
provided that, the consent of the Domestic Borrower shall not be required if a Default has occurred
and is continuing. The consent of the Agent shall be required prior to an assignment becoming
effective unless the Purchaser is a Lender. Any consent required under this Section
12.3(b) shall not be unreasonably withheld or delayed.

     (c) Effect; Effective Date. Upon (i) delivery to the Agent of a duly executed
Assignment Agreement, together with any consents required by Sections 12.3(a) and
12.3(b), and (ii) payment of a $3,500 fee to the Agent for processing such assignment
(unless such fee is waived by the Agent), such Assignment Agreement shall become effective on the
effective date specified by the Agent in such Assignment Agreement. The Assignment Agreement shall
contain a representation by the Purchaser to the effect that none of the consideration used to make
the purchase of the Commitment and Credit Exposure under the applicable Assignment Agreement
constitutes “plan assets” as defined under ERISA and that the rights and interests of the Purchaser
in and under the Loan Documents will not be “plan assets” under ERISA. On and after the effective
date of such Assignment Agreement, such Purchaser shall for all purposes be a Lender party to this
Agreement and any other Loan Document executed by or on behalf of the Lenders and shall have all
the rights and obligations of a Lender under the Loan Documents, to the same extent as if it were
an original party thereto, and the transferor Lender shall be released with respect to the
Commitment and Credit Exposure assigned to such Purchaser without any further consent or action by
the Borrower, the Lenders or the Agent. In the case of an Assignment Agreement covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
Lender hereunder but shall continue to be entitled to the benefits of, and subject to, those
provisions of this Agreement and the other Loan Documents which survive payment of the Obligations
and termination of the applicable agreement. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 12.3 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 Section 12.2. Upon the consummation of any assignment to
a Purchaser pursuant to this Section 12.3(c), the transferor Lender, the Agent and the
Domestic Borrower shall make appropriate arrangements so that new Revolving Notes or, as
appropriate, replacement Revolving Notes are issued to such transferor Lender and new Revolving
Notes or, as appropriate, replacement Revolving Notes, are issued to such Purchaser, in each case
in principal amounts reflecting their respective Commitments, as adjusted pursuant to such
assignment; provided that simultaneously with the Borrower’s delivery of new or replacement
Revolving Notes as provided in this Section 12.3 the Agent and the transferor Lender shall deliver
to the Domestic Borrower any Revolving Note being replaced in whole or in part, conspicuously
marked cancelled or replaced.

     (d) Register. The Agent, acting solely for this purpose as an agent of the Borrower,
shall maintain at one of its offices in the U.S. a copy of each Assignment Agreement delivered to
it and a register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Credit Extensions owing to, each Lender pursuant

 

 

to
the terms hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Agent and the Lenders may 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 the Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

     12.4. Dissemination of Information. Each Loan Party authorizes each Lender to disclose
to any Participant or Purchaser or any
other Person acquiring an interest in the Loan Documents by operation of law (each a
“Transferee”) and any prospective Transferee any and all information in such Lender’s
possession concerning the creditworthiness of the Borrower and its Subsidiaries, including without
limitation any information contained in any Reports; provided that, each Transferee and prospective
Transferee agrees to be bound by Section 9.11 of this Agreement.

     12.5. Tax Treatment. If any interest in any Loan Document is transferred to any
Transferee which is not incorporated under the laws of the U.S. or any state thereof, the
transferor Lender shall cause such Transferee, concurrently with the effectiveness of such
transfer, to comply with the provisions of Section 3.5(d).

     12.6. Assignment by LC Issuer. Notwithstanding anything contained herein, if at any
time Chase assigns all of its Commitment and Revolving Loans pursuant to Section 12.3,
Chase may, upon thirty days’ notice to the Domestic Borrower, and the Lenders, resign as LC Issuer.
In the event of any such resignation as LC Issuer, the Domestic Borrower shall be entitled to
appoint from among the Lenders a successor LC Issuer hereunder; provided however, that no failure
by the Domestic Borrower to appoint any such successor shall affect the resignation of Chase as LC
Issuer. If Chase resigns as LC Issuer, it shall retain all the rights and obligations of the LC
Issuer hereunder with respect to the Facility LCs outstanding as of the effective date of its
resignation as LC Issuer and all LC Obligations with respect thereto (including the right to
require the Lenders to make Revolving Loans or fund risk participations in outstanding
Reimbursement Obligations pursuant to Section 2.1.2(d)).

ARTICLE XIII

NOTICES

     13.1. Notices; Effectiveness; Electronic Communication.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all
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 telecopier as
follows:

 

 

     (i) if, to any Loan Party, such notice shall be delivered to the Domestic Borrower, on
behalf of such Loan Party, at the Domestic Borrower’s address or telecopier number set forth
on the signature page hereof;

     (ii) if to the Agent, at its address or telecopier number set forth on the signature
page hereof;

     (iii) if to the LC Issuer, at its address or telecopier number set forth on the
signature page hereof; and

     (iv) if to a Lender, to it at its address or telecopier number set forth on the
signature pages hereto.

     Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier shall be deemed to
have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient). Notices delivered through electronic communications to the extent provided in
paragraph (b) below, shall be effective as provided in said paragraph (b).

     (b) Electronic Communications. Notices and other communications to the
Lenders and the LC Issuer hereunder may be delivered or furnished by electronic communication
(including e-mail and internet or intranet websites) pursuant to procedures approved by the Agent
or as otherwise determined by the Agent, provided that, the foregoing shall not apply to notices to
any Lender or the LC Issuer pursuant to Article II if such Lender or the LC Issuer, as
applicable, has notified the Agent that it is incapable of receiving notices under such Article by
electronic communication. The Agent or any Loan Party may, in its respective discretion, agree to
accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it or as it otherwise determines, provided that such determination or
approval may be limited to particular notices or communications. Notwithstanding the foregoing, in
every instance, the Domestic Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.1(e) to the Agent.

     Unless the Agent otherwise prescribes, (i) notices and other communications sent to an e-mail
address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that, if such notice or other communication is not given during
the normal business hours of the recipient, such notice or communication shall be deemed to have
been given at the opening of business on the next Business Day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause
(i) of notification that such notice or communication is available and identifying the website
address therefor.

     13.2. Change of Address, Etc. Any party hereto may change its address or telecopier
number for notices and other communications hereunder by notice to the other parties hereto.

 

 

ARTICLE XIV

COUNTERPARTS

     This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing
any such counterpart. This Agreement shall be effective when it has been
executed by the Loan Parties, the Agent, the LC Issuer and the Lenders and each party has notified
the Agent by facsimile transmission or telephone that it has taken such action.

ARTICLE XV

GUARANTY

     15.1. Guaranty. Each Loan Party (other than the Borrowers and the other UK Loan
Parties, each to be referred to in this Section as a “Guarantor” and collectively as the
“Guarantors”), subject to the last sentence of this Section 15.1, hereby agrees that it is
jointly and severally liable for, and, as primary obligor and not merely as surety, absolutely and
unconditionally guarantees to the Lenders the prompt payment when due, whether at stated maturity,
upon acceleration or otherwise, and at all times thereafter, of the Secured Obligations and all
costs and expenses including, without limitation, all out-of-pocket court costs and attorneys’ and
paralegals’ fees and expenses paid or incurred by the Agent, the LC Issuer and the Lenders in
endeavoring to collect all or any part of the Obligations from, or in prosecuting any action
against, the Borrowers, any Guarantor or any other guarantor of all or any part of the Obligations
(such costs and expenses, together with the Secured Obligations, collectively the “Guaranteed
Obligations”). Each Guarantor further agrees that the Guaranteed Obligations may be extended or
renewed in whole or in part without notice to or further assent from it, and that it remains bound
upon its guarantee notwithstanding any such extension or renewal. Notwithstanding anything
contained this Article XV or elsewhere to the contrary, the Guaranteed Obligations which are
guaranteed by any Canadian Subsidiary are limited solely to the Canadian Obligations and the UK
Obligations.

     15.2. Guaranty of Payment. This Guaranty is a guaranty of payment and not of
collection. Each Guarantor waives any right to require the Agent, the LC Issuer or any Lender to
sue the Borrower, any Guarantor, any other guarantor, or any other person obligated for all or any
part of the Guaranteed Obligations, or otherwise to enforce its payment against any collateral
securing all or any part of the Guaranteed Obligations.

 

 

     15.3. No Discharge or Diminishment of Guaranty.

     (a) Except as otherwise provided for herein and to the extent provided for herein, the
obligations of each Guarantor hereunder are unconditional and absolute and not subject to any
reduction, limitation, impairment or termination for any reason (other than the indefeasible
payment in full in cash of the Guaranteed Obligations), including:

     (i) any claim of waiver, release, extension, renewal, settlement, surrender,
alteration, or compromise of any of the Guaranteed Obligations, by operation of law or
otherwise;

     (ii) any change in the corporate existence, structure or ownership of the Borrower or
any other guarantor of or other person liable for any of the Guaranteed Obligations;

     (iii) any insolvency, bankruptcy, reorganization or other similar proceeding affecting
the Borrower, any Guarantor, or any other guarantor of or other person liable for any of the
Guaranteed Obligations, or their assets or any resulting release or discharge of any
obligation of the Borrower, any Guarantor, or any other guarantor of or other person liable
for any of the Guaranteed Obligations; or

     (iv) the existence of any claim, setoff or other rights which any Guarantor may have at
any time against the Borrower, any Guarantor, any other guarantor of the Guaranteed
Obligations, the Agent, the LC Issuer, any Lender, or any other person, whether in
connection herewith or in any unrelated transactions.

     (b) The obligations of each Guarantor hereunder are not subject to any defense or setoff,
counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or
unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable
law or regulation purporting to prohibit payment by the Borrower, any Guarantor or any other
guarantor of or other person liable for any of the Guaranteed Obligations, of the Guaranteed
Obligations or any part thereof.

     (c) Further, the obligations of any Guarantor hereunder are not discharged or impaired or
otherwise affected by:

     (i) the failure of the Agent, the LC Issuer or any Lender to assert any claim
or demand or to enforce any remedy with respect to all or any part of the Guaranteed
Obligations;

     (i) any waiver or modification of or supplement to any provision of any
agreement relating to the Guaranteed Obligations;

     (ii) any release, non-perfection, or invalidity of any indirect or direct
security for the obligations of the Borrower for all or any part of the Guaranteed
Obligations or any obligations of any other guarantor of or other person liable for any of
the Guaranteed Obligations;

 

 

     (iii) any action or failure to act by the Agent, the LC Issuer or any Lender
with respect to any collateral securing any part of the Guaranteed Obligations;

     (iv) any default, failure or delay, willful or otherwise, in the payment or
performance of any of the Guaranteed Obligations, or any other circumstance, act, omission
or delay that might in any manner or to any extent vary the risk of such Guarantor or that
would otherwise operate as a discharge of any Guarantor as a matter of law or equity (other
than the indefeasible payment in full in cash of the Guaranteed Obligations).

     15.4. Defenses Waived. To the fullest extent permitted by applicable law, each
Guarantor hereby waives any defense based on or arising out of any defense of the Borrower or any
Guarantor or the unenforceability of all or any part of the Guaranteed Obligations from any cause,
or the cessation from any cause of the liability of the Borrower or any Guarantor, other than the
indefeasible payment in full in cash of the Guaranteed Obligations. Without limiting the generality
of the foregoing, each Guarantor irrevocably waives acceptance hereof, presentment, demand, protest
and, to the fullest extent permitted by law, any notice not provided for herein, as well as any
requirement that at any time any action be taken by any person against the Borrower, any Guarantor,
any other guarantor of any of the Guaranteed Obligations, or any other person. The Agent may, at
its election, foreclose on any Collateral held by it by one or more judicial or nonjudicial sales,
accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or fail to act
with respect to any collateral securing all or a part of the Guaranteed Obligations, compromise or
adjust any part of the Guaranteed Obligations, make any other accommodation with the Borrower, any
Guarantor, any other guarantor or any other person liable on any part of the Guaranteed Obligations
or exercise any other right or remedy available to it against the Borrower, any Guarantor, any
other guarantor or any other person liable on any of the Guaranteed Obligations, without affecting
or impairing in any way the liability of such Guarantor under this Guaranty except to the extent
the Guaranteed Obligations have been fully and indefeasibly paid in cash. To the fullest extent
permitted by applicable law, each Guarantor waives any defense arising out of any such election
even though that election may operate, pursuant to applicable law, to impair or extinguish any
right of reimbursement or subrogation or other right or remedy of any Guarantor against the
Borrower, any other guarantor or any other person liable on any of the Guaranteed Obligations, as
the case may be, or any security.

     15.5. Rights of Subrogation. No Guarantor will assert any right, claim or cause of
action, including, without limitation, a claim of subrogation, contribution or indemnification that
it has against the Borrower, any Guarantor, any person liable on the Guaranteed Obligations, or any
collateral, until the Loan Parties and the Guarantors have fully performed all their obligations to
the Agent, the LC Issuer and the Lender.

     15.6. Reinstatement; Stay of Acceleration. If at any time any payment of any portion
of the Guaranteed Obligations is rescinded or must otherwise be restored or returned upon the
insolvency, bankruptcy, or reorganization of the Borrower or otherwise, each Guarantor’s
obligations under this Guaranty with respect to that payment shall be reinstated at such time as
though the payment had not been made and whether or not the Agent, the LC Issuer and the Lenders
are in possession of this Guaranty. If acceleration of the time for payment of any of the
Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of the

 

 

Borrower,
all such amounts otherwise subject to acceleration under the terms of any agreement relating to the
Guaranteed Obligations shall nonetheless be payable by the Guarantors forthwith on demand by the
Lender.

     15.7. Information. Each Guarantor assumes all responsibility for being and keeping
itself informed of the Borrower’s financial condition and assets, and of all other circumstances
bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent
of the risks that each Guarantor assumes and incurs under this Guaranty, and agrees that neither
the Agent, the LC Issuer nor any Lender shall have
any duty to advise any Guarantor of information known to it regarding those circumstances or
risks.

     15.8. [Intentionally Deleted.]

     15.9. Taxes. All payments of the Guaranteed Obligations will be made by each
Guarantor free and clear of and without deduction for or on account of any and all present or
future taxes, levies, imposts, duties, charges, deductions or withholdings of whatever nature
imposed by any governmental authority with respect to such payments, and any and all liabilities
with respect to the foregoing, but excluding franchise taxes and taxes imposed on overall net
income of the Lender by the U.S. or the jurisdiction in which the Lender’s applicable Lending
Installation is located (collectively, “Taxes”). If any Guarantor is required by law to
deduct any Taxes from or in respect of any sum payable to the Lenders under this Guaranty, (a) the
sum payable must be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this provision) the Lenders receive an
amount equal to the sum it would have received had no such deductions been made, (b) the Guarantors
must then make such deductions, and must pay the full amount deducted to the relevant authority in
accordance with applicable law, (c) the Guarantors must furnish to the Lender within forty-five
days after their due date certified copies of all official receipts evidencing payment thereof, and
(d) if any such Lender receives or is entitled to receive a credit against, remission for, or
repayment of any tax paid or payable by it in respect of or calculated with reference to the taxes
giving rise to such payment, such Lender shall, within a reasonable time after it receives such
credit, remission or repayment, reimburse the Borrowers the amount of any such credit, remission or
repayment.

     15.10. Contribution. In the event any Guarantor (a “Paying Guarantor”) shall
make any payment or payments under this Guaranty or shall suffer any loss as a result of any
realization upon any collateral granted by it to secure its obligations under this Guaranty, each
other Guarantor (each a “Non-Paying Guarantor”) shall contribute to such Paying Guarantor
an amount equal to such Non-Paying Guarantor’s “Pro Rata Share” of such payment or payments made,
or losses suffered, by such Paying Guarantor. For purposes of this Article XV, each
Non-Paying Guarantor’s “Pro Rata Share” with respect to any such payment or loss by a
Paying Guarantor shall be determined as of the date on which such payment or loss was made by
reference to the ratio of (i) such Non-Paying Guarantor’s Maximum Liability as of such date
(without

 

 

giving effect to any right to receive, or obligation to make, any contribution hereunder)
or, if such Non-Paying Guarantor’s Maximum Liability has not been determined, the aggregate amount
of all monies received by such Non-Paying Guarantor from the Borrower after the date hereof
(whether by loan, capital infusion or by other means) to (ii) the aggregate Maximum Liability of
all Guarantors hereunder (including such Paying Guarantor) as of such date (without giving effect
to any right to receive, or obligation to make, any contribution hereunder), or to the extent that
a Maximum Liability has not been determined for any Guarantor, the aggregate amount of all monies
received by such Guarantors from the Borrower after the date hereof (whether by loan, capital
infusion or by other means). Nothing in this provision shall affect any Guarantor’s several
liability for the entire amount of the Guaranteed Obligations (up to such Guarantor’s Maximum
Liability). Each of the Guarantors covenants and agrees that its right to receive any contribution
under this Guaranty
from a Non-Paying Guarantor shall be subordinate and junior in right of payment to the payment
in full in cash of the Guaranteed Obligations. This provision is for the benefit of both the
Agent, the LC Issuer, the Lenders and the Guarantors and may be enforced by any one, or more, or
all of them in accordance with the terms hereof.

     15.11. Lending Installations. The Guaranteed Obligations may be booked at any Lending
Installation. All terms of this Guaranty apply to and may be enforced by or on behalf of any
Lending Installation.

     15.12 Liability Cumulative. The liability of each Loan Party as a Guarantor under
this Article XV is in addition to and shall be cumulative with all liabilities of each Loan
Party to the Agent, the LC Issuer and the Lenders under this Agreement and the other Loan Documents
to which such Loan Party is a party or in respect of any obligations of liabilities of the other
Loan Parties, without any limitation as to amount, unless the instrument or agreement evidencing or
creating such other liability specifically provides to the contrary.

     15.13 Fraudulent Conveyance Matters. Notwithstanding anything to the contrary
contained herein or in any Loan Document, in any proceeding involving the bankruptcy,
reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or
any similar proceeding with respect to the Borrower or any Guarantor or their assets, it is the
intention of the Loan Parties and the Lenders that the amount of the Guarantors’ Guaranteed
Obligations of the Borrower or any Guarantor shall be in, but not in excess of, the maximum amount
thereof (the “Maximum Liability”) not subject to avoidance or recovery by operation of
applicable law governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of
debtors, dissolution, insolvency, fraudulent transfers or conveyances or other similar laws
(including, without limitation, 11 U.S.C. §547, §548, §550 and other “avoidance” provisions of
Title 11 of the United States Code) applicable in any such proceeding to such Guarantor and this
Agreement or the Loan Documents (collectively, “Applicable Insolvency Laws”). To that end,
but only in the event and to the extent that a Guarantor’s individual obligations with respect to
the Guaranteed Obligations of the Borrower or any other Guarantor or any payment made pursuant to
such Guaranteed Obligations would, but for the operation of the foregoing proviso, be subject to
avoidance or recovery in any such proceeding under Applicable Insolvency Laws, the amount of such
Guarantor’s individual obligations with respect to such Guaranteed Obligations shall be limited to
the largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws,
render such Guarantor’s individual obligations with respect to such Guaranteed Obligations
unenforceable or avoidable or otherwise subject to recovery under Applicable Insolvency Laws, which
(a) the fair consideration actually (directly or indirectly) received by such Guarantor under the
terms and as a result of this Agreement and the value of the benefits described herein, including
(and to the extent not inconsistent with applicable federal and state laws affecting the
enforceability of guaranties) distributions,

 

 

commitments, and advances made to or for the benefit
of said Guarantor with the proceeds of any credit extended hereunder, or (b) the excess of (i) the
amount of the fair value of the assets of such Guarantor as of the date of this Agreement as
determined in accordance with applicable federal and state laws governing determinations of the
insolvency of debtors as in effect on the
date hereof, over (ii) the amount of all liabilities of such Guarantor as of the date of this
Agreement, also as determined on the basis of applicable federal and state laws governing the
insolvency of debtors as in effect on the date hereof. To the extent any payment actually made by
a Guarantor pursuant to the Guaranteed Obligations of the Borrower or any other Guarantor exceeds
the limitation of the foregoing proviso and is otherwise subject to avoidance and recovery in any
such proceeding under Applicable Insolvency Laws, the amount subject to avoidance shall in any
event be limited to the amount by which such actual payments exceed such limitation and the
Guaranteed Obligations as limited by the foregoing proviso shall in all events remain in full force
and effect and be fully enforceable against such Guarantor. The foregoing proviso is intended
solely to preserve the rights of the Lenders hereunder against the Guarantors in such proceeding to
the maximum extent permitted by Applicable Insolvency Laws and neither the Guarantors nor any other
Person shall have any right or claim under such proviso that would not otherwise be available under
Applicable Insolvency Laws in such proceeding.

ARTICLE XVI

CASH MANAGEMENT

     16.1. Lockbox and Cash Management Account. Each Loan Party has obtained and shall
continue to maintain during the term of this Agreement the post office box at the Post Office
bearing the address set forth on Schedule 16.1, or such other address or deposit account as
the Agent may notify the Domestic Borrower from time to time (the “Locked Boxes”). The
Canadian Loan Parties shall maintain their Locked Boxes in Canada and the UK Loan Parties shall
maintain their Locked Boxes in the United Kingdom. Each Loan Party shall notify all of its
customers and Account Debtors to forward all remittances of every kind due to such Loan Party
(“Remittances”) to its Locked Box (such notices to be in such form and substance as the
Agent may require from time to time). Promptly upon receipt thereof, the Loan Parties shall
deposit all other proceeds of Accounts or other Collateral into the Locked Boxes (or into a Cash
Management Account). The Agent, Canadian Correspondent Lender, and UK Correspondent Lender, as the
case may be, shall have sole access to the Locked Boxes at all times, and each Loan Party shall
take all action necessary to grant such Lenders such sole access. At no time shall any Loan Party
remove any item from the Locked Boxes without the prior written consent of the Agent, Canadian
Correspondent Lender, or UK Correspondent Lender, as the case may be, and each Loan Party shall
notify each customer or Account Debtor not to pay any Remittance to any other place or address
without the prior written consent of the Agent, Canadian Correspondent Lender, or UK Correspondent
Lender, as the case may be. If a Loan Party should neglect or refuse to notify any customer or
Account Debtor to pay any Remittance to its Locked Box after notice from the Agent, Canadian
Correspondent Lender, or UK Correspondent Lender, as the case may be, such Lender shall be entitled
to make such notification. Each Loan Party hereby grants to each of such Lenders an irrevocable
power of attorney, coupled with an interest, to take in such Loan Party’s name all action necessary
(a) to grant the such Lenders sole access to its Locked Box, (b) during the continuance of a
Default, to contact Account Debtors to pay

 

 

any Remittance to such Locked Box in the event that any
such Account Debtor is not paying any such Remittance to such Locked Box, (c) during the
continuance of a Default, to contact
Account Debtors for any reason and (d) to endorse each Remittance delivered to its Locked Box
for deposit to such Borrower’s Cash Management Account. Each Borrower shall establish and, unless
otherwise directed by the Agent, Canadian Correspondent Lender, or UK Correspondent Lender, as the
case may be, maintain a cash management account with such Lender (each, a “Cash Management
Account”). Each Borrower shall enter into an agreement with the Agent, the Canadian
Correspondent Lender, or the UK Correspondent Lender, as the case may be, relating to such Loan
Party’s Cash Management Account, in form and substance reasonably satisfactory to the such Lender.

     16.2 Application of Payments. So long as no Default shall be continuing, deposits to
the Cash Management Accounts shall be credited to the applicable Borrower as follows: (i)
first, to the payment of any fees, expenses or other Obligations (other than Obligations to
pay principal and interest relating to the Loans) then due and payable by such Borrower to the
Applicable Agent or the Lenders hereunder or under any of the other Loan Documents; (ii)
second, to the ratable payment of interest due on the Loans made to such Borrower; (iii)
third, to late charges until paid in full; (iv) fourth, to the extent requested by
such Borrower, to pay the amounts disbursed from the master concentration accounts of such Borrower
and Integrated Logistics Solutions LLC, (v) fifth, to the outstanding principal balance of
such Borrower’s Loans and (vi) sixth, to the extent of any excess not so credited, such
deposits shall be made available to the applicable Borrower by deposit in such Borrower’s operating
Account with the Agent, the Canadian Correspondent Lender, or the UK Correspondent Lender, as
applicable. Notwithstanding the foregoing sentence, so long as the Availability is greater than or
equal to $20,000,000 and no Default or Event of Default has occurred and is continuing, deposits to
the Cash Management Account shall be credited first to applicable Borrower as follows: (i)
first, to the payment of any fees, expenses or other Obligations (other than Obligations to
pay principal and interest relating to the Loans) then due and payable by such Borrower to the
Applicable Agent or the Lenders hereunder or under any of the other loan Documents; (ii)
second, to the ratable payment of interest due on the Loans made to such Borrower; (iii)
third, to late charges until paid in full, (iv) fourth, to the extent requested by
the Domestic Borrower, to pay the amounts disbursed from the master concentration accounts of such
Borrower and Integrated Logistics Solutions LLC, and (v) fifth, to the extent of any excess
not so credited, such deposits shall be made available to the applicable Borrower by deposit in
such Borrower’s operating Account with the Agent, the Canadian Correspondent Lender, or the UK
Correspondent Lender, as applicable. Upon the occurrence and during the continuance of a Default
which has not been waived in writing, all such deposits to the Cash Management Account shall be
credited to applicable Borrower: first, to pay any fees, indemnities, or expense
reimbursements including amounts then due to the Agent, the Canadian Correspondent Lender, or the
UK Correspondent Lender, as applicable, from such Borrower (other than in connection with Banking
Services or Rate Management Obligations), second, to pay any fees, expense reimbursements,
or Taxes then due to the Lenders from such Borrower (other than in connection with Banking Services
or Rate Management Obligations), third, to pay interest due in respect of the Loans,
including Non-Ratable Loans, Overadvances and Protective Advances, fourth, to pay or prepay
principal of the Non-Ratable Loans, Overadvances and Protective Advances, fifth, to pay or
prepay principal of the Revolving Loans (other than Non-Ratable Loans, Overadvances and Protective
Advances)

 

 

and unpaid reimbursement obligations in respect of Facility LCs, sixth, to pay an
amount to the Agent, the Canadian Correspondent
Lender, or the UK Correspondent Lender, as the case may be, equal to one hundred five percent
(105%) of the aggregate undrawn face amount of all outstanding Facility LCs and the aggregate
amount of any unpaid reimbursement obligations in respect of Facility LCs, to be held as cash
collateral for such Obligations, seventh, to payment of any amounts owing with respect to
Banking Services and Rate Management Obligations, eighth, to the payment of any other
Obligation due to the Applicable Agent or any Lender by such Borrower, and ninth, to the
extent of any excess not so credited, such excess shall be made available to the applicable
Borrower by deposit in such Borrower’s operating Account with the Agent. For the purpose of
calculating the applicable Borrower’s interest and determining the aggregate Loans outstanding, all
collections and remittances shall be credited to such Borrower: (i) in the case of collections and
remittances received by wire transfer prior to 11:00 a.m. (local time), on the same Business Day as
received, (ii) in the case of collections and remittances received by wire transfer after 11:00
a.m. (local time), on the next succeeding Business Day after such receipt and (iii) in the case of
all other collections and remittances received, conditional on final payment, one (1) Business Day
after the Agent receives notice of the deposit of the proceeds of such collections and remittances
into the Cash Management Account prior to noon (local time), provided however in the case of clause
(iii) above, that in the event that the Applicable Agent receives notice of such deposit later than
noon (local time) on any Business Day, such collection or remittance deposited shall be credited to
such Borrower (conditional upon final collection) two (2) Business Days after such deposit. From
time to time, upon advance written notice to the Domestic Borrower, the Agent, the Canadian
Correspondent Lender and the UK Correspondent Lender may adopt such additional or modified
regulations and procedures as it may deem reasonable and appropriate with respect to the operation
of the Cash Management Account and the services to be provided by such agent under this Agreement.
Notwithstanding any provision of any Loan Document to the contrary, unless Availability is less
than $20,000,000 or a Default has occurred and is continuing, promptly upon the Domestic Borrower’s
request, the UK Correspondent Lender will transfer all funds from the UK lockboxes to any account
designated by the UK Borrowers on a bi-weekly basis.

ARTICLE XVII

RELATIONSHIP OF THE DOMESTIC BORROWER AND THE OTHER LOAN PARTIES 

     17.1. Notices. Each Loan Party shall immediately notify the Domestic Borrower of the
occurrence of any Default or Unmatured Default hereunder referring to this Agreement describing
such Default or Unmatured Default and stating that such notice is a “notice of default.” Any
notice provided to the Domestic Borrower hereunder shall constitute notice to each Loan Party on
the date received by the Domestic Borrower.

     17.2. Execution of Loan Documents; Borrowing Base Certificate. The Loan Parties
hereby empower and authorize the Domestic Borrower, on behalf of the Loan Parties, to execute and
deliver to the Agent and the Lenders the Loan Documents and all related
agreements, certificates, documents, or instruments as shall be necessary or appropriate to effect
the purposes

 

 

of the Loan Documents, including without limitation, the Aggregate Borrowing Base
Certificates and the Compliance Certificates. Each Loan Party agrees that any action taken by the
Domestic Borrower in accordance with the terms of this Agreement or the other Loan Documents, and
the exercise by the Domestic Borrower of its powers set forth therein or herein, together with such
other powers that are reasonably incidental thereto, shall be binding upon all of the Loan Parties.

     17.3. Reporting. Each Borrowing Loan Party hereby agrees that it shall furnish
promptly after each Fiscal Month to the Domestic Borrower, and in no event later than 20 days after
the end of each Fiscal Month, a copy of its Borrowing Base Certificate and the calculation of its
Consolidated Fixed Charge Coverage Ratio (as defined in the Indenture), on which the Domestic
Borrower shall rely to prepare the Aggregate Borrowing Base Certificates and Compliance
Certificates and the Indenture Certificate required pursuant to the provisions of this Agreement.
The Domestic Borrower shall retain all such Borrowing Base Certificates until the Facility
Termination Date and shall deliver same to the Agent upon the Agent’s request therefor.

     17.4. Disbursement of Loan Proceeds. Upon the receipt by a Borrower of the proceeds
of any Advance, such Borrower shall immediately disburse such proceeds to itself and to the other
Borrowing Loan Parties via intercompany loans, in each case based upon each such Borrowing Loan
Party’s Borrowing Base Certificate. After such initial disbursement, the Loan Parties may make
additional intercompany loans to the extent permitted pursuant to the terms hereof.

     17.5 Domestic Borrower as Representative. For purposes of this Agreement, each Loan
Party hereby: (i) authorizes the Domestic Borrower to make such requests, give such notices or
furnish such certificates to the Agent, the Canadian Correspondent Lender, the UK Correspondent
Lender or the LC Issuer as may be required or permitted by this Agreement for the benefit of such
Loan Party and to give any consents on behalf of such Loan Party required by Section
12.2(b) of this Agreement in connection with assignments by the Lenders pursuant thereto and
(ii) authorizes the Agent, the Canadian Correspondent Lender, the UK Correspondent Lender and the
LC Issuer to treat such requests, notices, certificates or consents made, given or furnished by the
Domestic Borrower as having been made, given or furnished by such Loan Party. Each Loan Party
agrees to be bound by all such requests, notices, certificates and consents and other such actions
by the Domestic Borrower and agrees that all notices to and demands upon the Domestic Borrower in
respect of any Loan Party shall constitute effective notice to and demand upon such Loan Party for
all purposes hereunder. The Agent, the Canadian Correspondent Lender, the UK Correspondent Lender
and the LC Issuer shall be entitled to rely upon all such requests, notices, certificates and
consents made, given or furnished by the Domestic Borrower pursuant to this Agreement or any other
Loan Documents as being made or furnished on behalf of, and with the effect of irrevocably binding,
any Loan Party.

 

 

ARTICLE XVIII

USA PATRIOT ACT NOTIFICATION

     18.1 USA Patriot Act Notification. The following notification is provided to the Loan
Parties pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

     IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the
government fight the funding of terrorism and money laundering activities, Federal
law requires all financial institutions to obtain, verify, and record information
that identifies each person or entity that opens an account, including any deposit
account, treasury management account, loan, other extension of credit, or other
financial services product. What this means for each Loan Party: When a Loan Party
opens an account, if such Loan Party is an individual, the Agent will ask for such
Loan Party’s name, residential address, tax identification number, date of birth, and
other information that will allow the Agent and the Lender to identify such Loan
Party, and, if a Loan Party is not an individual, the Agent will ask for such Loan
Party’s name, tax identification number, business address, and other information that
will allow the Agent and the Lenders to identify such Loan Party. The Agent may also
ask, if such Loan Party is an individual, to see such Loan Party’s driver’s license
or other identifying documents, and, if such Loan Party is not an individual, to see
such Loan Party’s legal organizational documents or other identifying documents.

ARTICLE XIX

CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL; CONFESSION OF JUDGMENT

     19.1 CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY
EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF THE STATE OF OHIO, BUT GIVING EFFECT TO
FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     19.2 CONSENT TO JURISDICTION. EACH LOAN PARTY HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR OHIO STATE COURT SITTING IN CLEVELAND, OHIO IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND EACH LOAN PARTY
HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT

 

 

THE RIGHT OF THE AGENT, THE LC ISSUER OR ANY LENDER TO BRING PROCEEDINGS AGAINST LOAN PARTY IN THE
COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY LOAN PARTY AGAINST THE AGENT, THE
LC ISSUER OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTION WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN CLEVELAND,
OHIO.

     19.3 WAIVER OF JURY TRIAL. EACH LOAN PARTY, THE AGENT, THE LC ISSUER AND EACH LENDER
HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

     19.4 CONFESSION OF JUDGMENT. THE LOAN PARTIES HEREBY AUTHORIZE ANY ATTORNEY-AT-LAW TO
APPEAR IN ANY COURT OF RECORD IN ANY COUNTY IN THE STATE OF OHIO OR ELSEWHERE WHERE A LOAN PARTY
HAS A PLACE OF BUSINESS, SIGNED A REVOLVING NOTE OR CAN BE FOUND, AFTER THE AGENT OR REQUIRED
LENDERS DECLARE A DEFAULT AND ACCELERATE THE BALANCES DUE UNDER THIS AGREEMENT, TO WAIVE THE
ISSUANCE OF SERVICE OF PROCESS AND CONFESS JUDGMENT AGAINST THE LOAN PARTIES IN FAVOR OF THE AGENT
AND LENDERS FOR THE AMOUNTS THEN APPEARING DUE, TOGETHER WITH THE COSTS OF SUIT, AND THEREUPON TO
RELEASE ALL ERRORS AND WAIVE ALL RIGHT OF APPEAL AND STAY OF EXECUTION. THE LOAN PARTIES AGREE AND
CONSENT THAT THE ATTORNEY CONFESSING JUDGMENT ON BEHALF OF THE LOAN PARTIES HEREUNDER MAY ALSO BE
COUNSEL TO THE AGENT, LENDERS OR ANY OF THEIR AFFILIATES, WAIVES ANY CONFLICT OF INTEREST WHICH
MIGHT OTHERWISE ARISE, AND CONSENTS TO THE AGENT OR LENDERS PAYING SUCH CONFESSING ATTORNEY A LEGAL
FEE OR ALLOWING SUCH ATTORNEY’S FEES TO BE PAID FROM ANY PROCEEDS OF COLLECTION OF AGREEMENT OR
COLLATERAL SECURITY THEREFOR.

[Signature Pages Follow]

 

 

IN WITNESS WHEREOF, the Borrowers, the other Loan Parties, the Lenders and the Agent have
executed this Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	DOMESTIC BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	PARK-OHIO INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Robert D. Vilsack	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert D. Vilsack	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	NOTICE ADDRESS FOR ALL LOAN

PARTIES:	 	 
	 
	 	 	 	 	 	 
	 	 	Address: c/o Park-Ohio Industries, Inc.	 	 
	 	 	23000 Euclid Avenue	 	 
	 	 	Cleveland, OH 44117	 	 
	 	 	Attention: General Counsel	 	 
	 	 	Telephone: (216) 692-7200	 	 
	 	 	Facsimile: (216) 692-6877	 	 
	 
	 	 	 	 	 	 
	 	 	CANADIAN BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	RB&W CORPORATION OF CANADA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Robert D. Vilsack
 

	 	 
	 

	 	Name:
	 	Robert D. Vilsack	 	 
	 

	 	Title:
	 	Secretary	 	 

 

	 	 	 	 	 	 	 
	 	 	UK BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	AJAX TOCCO INTERNATIONAL

LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	Robert D. Vilsack
 

Robert D. Vilsack
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Richard Paul Elliott	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Richard Paul Elliott	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	INTEGRATED LOGISTICS SOLUTIONS LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Robert D. Vilsack	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert D. Vilsack	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Richard Paul Elliott	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Richard Paul Elliott	 	 
	 

	 	Title:
	 	Director	 	 

 

DOMESTIC SUBSIDIARIES:

	 	 	 
	THE AJAX MANUFACTURING COMPANY

	 	LEWIS & PARK SCREW & BOLT COMPANY
	AJAX TOCCO MAGNETHERMIC 

    CORPORATION

	 	NABS, INC.
PARK AVENUE TRAVEL LTD.
	ATBD, INC.

	 	PARK-OHIO FORGED & MACHINED
	BLUE FALCON TRAVEL, INC.

	 	    PRODUCTS LLC
	THE CLANCY BING COMPANY

	 	PARK-OHIO PRODUCTS, INC.
	COLUMBIA NUT & BOLT LLC

	 	PHARMACEUTICAL LOGISTICS INC.
	CONTROL TRANSFORMER, INC.

	 	PHARMACY WHOLESALE LOGISTICS, INC.
	FECO, INC.

	 	P-O REALTY LLC
	FORGING PARTS & MACHINING COMPANY

	 	POVI L.L.C.
	GATEWAY INDUSTRIAL SUPPLY LLC

	 	PRECISION MACHINING CONNECTION LLC
	GENERAL ALUMINUM MFG. COMPANY

	 	RB&W LTD.
	ILS TECHNOLOGY LLC

	 	RB&W MANUFACTURING LLC
	INTEGRATED HOLDING COMPANY

	 	RED BIRD, INC.
	INTEGRATED LOGISTICS HOLDING COMPANY

	 	SOUTHWEST STEEL PROCESSING LLC
	INTEGRATED LOGISTICS SOLUTIONS, INC.

	 	SUMMERSPACE, INC.
	INTEGRATED LOGISTICS SOLUTIONS LLC

	 	TOCCO, INC.
	LALLEGRO, INC.

	 	WB&R ACQUISITION COMPANY, INC.

	 	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	Robert D. Vilsack
 

Robert D. Vilsack 

Secretary
	 	 

 

Exhibit 4.1

	 	 	 	 	 	 	 
	 	 	CANADIAN SUBSIDIARIES:	 	 
	 
	 	 	 	 	 	 
	 	 	AJAX TOCCO MAGNETHERMIC CANADA LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	Robert D. Vilsack
 

Robert D. Vilsack
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	INTEGRATED LOGISTICS COMPANY OF CANADA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Robert D. Vilsack	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert D. Vilsack	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	RB&W LOGISTICS
CANADA, INC. /

 LOGISTIQUE RB&W CANADA, INC.	 	 
	 	 		 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Robert D. Vilsack	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert D. Vilsack	 	 
	 

	 	Title:
	 	Secretary	 	 

M-i

 

	 	 	 	 	 	 	 
	 	 	LENDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 	 	Individually, as the Agent, a Lender,
and LC Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	David J. Waugh
 

David J. Waugh
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 1300 East Ninth Street, 13th Floor	 	 
	 	 	Cleveland, OH 44114	 	 
	 	 	Attention: David J. Waugh	 	 
	 	 	Telephone: (216) 781-2128	 	 
	 	 	Facsimile: (216) 781-2071	 	 

M-ii

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., TORONTO BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Michael N. Tam
 

	 	 
	 

	 	Name:
	 	Michael N. Tam	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 1300 East Ninth Street, 13th Floor	 	 
	 	 	Cleveland, OH 44114	 	 
	 	 	Attention: David J. Waugh	 	 
	 	 	Telephone: (216) 781-2128	 	 
	 	 	Facsimile: (216) 781-2071	 	 

M-iii

 

	 	 	 	 	 	 	 
	 	 	J.P. MORGAN EUROPE LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	Tim Jacob
 

Tim Jacob
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 10 Aldermanbury	 	 
	 	 	London EC2V 7RF	 	 
	 	 	United Kingdom	 	 
	 	 	Attention: Tim Jacob	 	 
	 	 	Telephone: 44 (0)20 7325 7457	 	 
	 	 	Facsimile: 44 (0)20 7325 6813	 	 

M-iv

 

	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION

as Syndication Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	John P. Dunn
 

John P. Dunn
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 127 Public Square, 18th Floor	 	 
	 	 	Mailcode: OH-01-27-1814	 	 
	 	 	Cleveland, OH 44114	 	 
	 	 	Attention: John P. Dunn	 	 
	 	 	Telephone: (216) 689-4386	 	 
	 	 	Facsimile: (216) 689-8470	 	 

M-v

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Matthew Kasper	 	 
	 

	 	Name:
	 	 

Matthew Kasper
	 	 
	 

	 	Title:
	 	AVP – Relationship Manager	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 425 Walnut Street, 14th Floor	 	 
	 	 	Mailcode: CN-OH-W14S	 	 
	 	 	Cincinnati, OH 45202	 	 
	 	 	Attention: Matthew Kasper	 	 
	 	 	Telephone: 513-632-4226	 	 
	 	 	Facsimile: 513-632-2040	 	 

M-vi

 

	 	 	 	 	 	 	 
	 	 	CITIZENS BANK OF PENNSYLVANIA

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	Paul A. Rebholz
 

Paul A. Rebholz
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: Six PPG Place, Suite 820	 	 
	 	 	Pittsburgh, PA 15222	 	 
	 	 	Attention: Paul A. Rebholz	 	 
	 	 	Telephone: (412) 391-3333	 	 
	 	 	Facsimile: (412) 391-2580	 	 

M-vii

 

	 	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	Douglas A. Hoffman
 

Douglas A. Hoffman 

Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 249 Fifth Avenue, 6th Floor	 	 
	 	 	1 PNC Place	 	 
	 	 	Pittsburgh, PA 15222	 	 
	 	 	Attention: Douglas A. Hoffman	 	 
	 	 	Telephone: (412) 768-1333	 	 
	 	 	Facsimile: (412) 768-4369	 	 

M-viii

 

	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	Roy C. Lanctot
 

Roy C. Lanctot
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 600 Superior Avenue	 	 
	 	 	Cleveland, OH 44114	 	 
	 	 	Attention: Roy C. Lanctot	 	 
	 	 	Telephone: (216) 274-5473	 	 
	 	 	Facsimile: (216) 273-5441	 	 

M-ix

 

	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BUSINESS CREDIT, INC.

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	Jason Hanes
 

Jason Hanes
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address: 1965 E. 6th Street, Suite 400	 	 
	 	 	LOC 01-3049	 	 
	 	 	Cleveland, OH 44114	 	 
	 	 	Attention: Jason Hanes	 	 
	 	 	Telephone: (216) 222-9508	 	 
	 	 	Facsimile: (216) 222-9555	 	 

M-x

 

BANK OF AMERICA, N.A.

as a Lender

By: Navneet Khanna                              

Name: Navneet Khanna

Title: Vice President

Address: 231 LaSalle Street, 7th Floor

Chicago, IL 60604

Attention: Navneet Khanna

Telephone: (312) 755-3307

Facsimile: (312) 755-3300

M-xi

 

BANK OF AMERICA, N.A. (ACTING

THROUGH ITS CANADA BRANCH)

as a Lender

By: Nelson Lam                              

Name: Nelson Lam

Title: Vice President

Address: 200 Front Street West, Suite 2700

Toronto, Ontario M5V 3L2

Canada

Attention: Teresa Tsui and

      Junior Del Brocco

Telephone : 416-349-5390

Facsimile: 416-349-4282

and

231 S. LaSalle Street, 7th Floor

Chicago, IL 60604

Attention: Senior Portfolio Manager

Telephone: (312) 775-3313

Facsimile: (312) 755-3300

and

20975 Swenson Drive, Suite 200

Waukesha, WI 53186

Attention: Operations Manager

Telephone: (262) 798-4830

Facsimile: (262) 798-4860

M-xii

 

BANK OF AMERICA, N.A. LONDON BRANCH

as a Lender

By: Navneet Khanna                              

Name: Navneet Khanna

Title: Vice President

Address: 5 Canada Square,

London E14 5AQ

United Kingdom

Attention: Bernisi Morrin

Telephone: +44 (0) 20 7174 5806

Facsimile: +44 (0) 20 7174 6493

and

231 S. LaSalle Street, 7th Floor,

Chicago, IL 60604

Attention: Senior Portfolio Manager

Telephone: (312) 775-3313

Facsimile: (312) 755-3300

and

20975 Swenson Drive, Suite 200

Waukesha, WI 53186

Attention: Operations Manager

Telephone: (262) 798-4830

Facsimile: (262) 798-4860

M-xiii

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

as a Lender

By: Jason W. Sutton                              

Name: Jason W. Sutton

Title: Vice President

Address: 200 Public Square, Suite 200

Cleveland, OH 44114

Attention: Jason W. Sutton

Telephone: (216) 344-6955

Facsimile: (216) 344-6971

M-xivexv4w1

 

Exhibit 4.1

EXECUTION COPY

 

MOBILE MINI INC.,

as Issuer,

and

ANY GUARANTORS PARTY HERETO,

as Guarantors

67/8% Senior Notes due 2015

 

INDENTURE

Dated as of May 7, 2007

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK,

as Trustee

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Paying Agent and Registrar

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	7.10
	(b)
	 	7.3, 7.8, 7.10
	(c)
	 	N.A.
	311(a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312(a)
	 	2.5
	(b)
	 	12.3
	(c)
	 	12.3
	313(a)
	 	7.6
	(b)(1)
	 	7.6
	(b)(2)
	 	7.6
	(c)
	 	7.6, 12.2
	(d)
	 	7.6
	314(a)
	 	4.3, 4.4, 12.5
	(c)(1)
	 	12.4
	(c)(2)
	 	12.4
	(c)(3)
	 	12.4
	(d)
	 	12.4
	(e)
	 	12.5
	(f)
	 	N.A.
	315(a)
	 	7.1(b)
	(b)
	 	7.5, 12.2
	(c)
	 	7.1(a)
	(d)
	 	7.1(c)
	(e)
	 	6.11
	316(a)(last sentence)
	 	2.9
	(a)(1)(A)
	 	6.5
	(a)(1)(B)
	 	6.4
	(a)(2)
	 	N.A.
	(b)
	 	6.7
	(c)
	 	N.A.
	317(a)(1)
	 	6.8
	(a)(2)
	 	6.9
	(b)
	 	2.4
	318(a)
	 	12.1
	(b)
	 	N.A.
	(c)
	 	12.1

N.A. means Not Applicable

 

			
	*	 	This Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I.
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 
	 	 	 	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Other Definitions
	 	 	19	 
	Section 1.3. Incorporation by Reference of Trust Indenture Act
	 	 	20	 
	Section 1.4. Rules of Construction
	 	 	20	 
	Section 1.5. Acts of Holders
	 	 	21	 
	 
	 	 	 	 
	ARTICLE II.
	 	 	 	 
	 
	 	 	 	 
	THE NOTES
	 	 	 	 
	 
	 	 	 	 
	Section 2.1. Form and Dating
	 	 	21	 
	Section 2.2. Execution and Authentication
	 	 	22	 
	Section 2.3. Registrar and Paying Agent
	 	 	23	 
	Section 2.4. Paying Agents to Hold Money in Trust
	 	 	23	 
	Section 2.5. Holder Lists
	 	 	23	 
	Section 2.6. Transfer and Exchange
	 	 	24	 
	Section 2.7. Replacement Notes
	 	 	30	 
	Section 2.8. Outstanding Notes
	 	 	30	 
	Section 2.9. Treasury Notes
	 	 	30	 
	Section 2.10. Temporary Notes
	 	 	31	 
	Section 2.11. Cancellation
	 	 	31	 
	Section 2.12. Defaulted Interest
	 	 	31	 
	Section 2.13. Persons Deemed Owners
	 	 	31	 
	Section 2.14. CUSIP Numbers
	 	 	31	 
	Section 2.15. Designation
	 	 	32	 
	 
	 	 	 	 
	ARTICLE III.
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION AND REPURCHASE
	 	 	 	 
	 
	 	 	 	 
	Section 3.1. Notices to Trustee
	 	 	32	 
	Section 3.2. Selection of Notes
	 	 	32	 
	Section 3.3. Notice of Optional or Special Redemption
	 	 	33	 
	Section 3.4. Effect of Notice of Redemption
	 	 	33	 
	Section 3.5. Deposit of Redemption Price or Purchase Price
	 	 	33	 
	Section 3.6. Notes Redeemed or Repurchased in Part
	 	 	34	 
	Section 3.7. Optional Redemption
	 	 	34	 
	Section 3.8. Optional Redemption upon Equity Offerings
	 	 	35	 
	Section 3.9. Repurchase upon Change of Control Offer
	 	 	35	 
	Section 3.10. Repurchase upon Application of Net Proceeds
	 	 	36	 
	 
	 	 	 	 
	ARTICLE IV.
	 	 	 	 
	 
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	Section 4.1. Payment of Principal and Interest
	 	 	37	 

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	 	 	Page
	Section 4.2. Maintenance of Office or Agency
	 	 	38	 
	Section 4.3. Reports
	 	 	38	 
	Section 4.4. Compliance Certificate
	 	 	39	 
	Section 4.5. Taxes
	 	 	39	 
	Section 4.6. Stay, Extension and Usury Laws
	 	 	39	 
	Section 4.7. Limitation on Restricted Payments
	 	 	39	 
	Section 4.8. Limitation of Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	41	 
	Section 4.9. Limitation on Incurrence of Additional Indebtedness
	 	 	43	 
	Section 4.10. Limitation on Asset Sales
	 	 	43	 
	Section 4.11. Limitations on Transactions with Affiliates
	 	 	45	 
	Section 4.12. Limitation on Liens
	 	 	46	 
	Section 4.13. Continued Existence
	 	 	46	 
	Section 4.14. Insurance Matters
	 	 	47	 
	Section 4.15. Offer to Repurchase upon Change of Control
	 	 	47	 
	Section 4.16. Additional Subsidiary Guarantees
	 	 	47	 
	Section 4.17. Payments for Consent
	 	 	47	 
	Section 4.18. Limitation on Preferred Stock of Restricted Subsidiaries
	 	 	48	 
	Section 4.19. Conduct of Business
	 	 	48	 
	Section 4.20. Suspension of Covenants
	 	 	48	 
	 
	 	 	 	 
	ARTICLE V.
	 	 	 	 
	 
	 	 	 	 
	SUCCESSORS
	 	 	 	 
	 
	 	 	 	 
	Section 5.1. Merger, Consolidation and Sale of Assets
	 	 	49	 
	Section 5.2. Successor Corporation Substituted
	 	 	50	 
	 
	 	 	 	 
	ARTICLE VI.
	 	 	 	 
	 
	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	Section 6.1. Events of Default
	 	 	50	 
	Section 6.2. Acceleration
	 	 	51	 
	Section 6.3. Other Remedies
	 	 	52	 
	Section 6.4. Waiver of Past Defaults
	 	 	52	 
	Section 6.5. Control by Majority
	 	 	52	 
	Section 6.6. Limitation on Suits
	 	 	53	 
	Section 6.7. Rights of Holders of Notes to Receive Payment
	 	 	53	 
	Section 6.8. Collection Suit by Trustee
	 	 	53	 
	Section 6.9. Trustee May File Proofs of Claim
	 	 	53	 
	Section 6.10. Priorities
	 	 	54	 
	Section 6.11. Undertaking for Costs
	 	 	54	 
	 
	 	 	 	 
	ARTICLE VII.
	 	 	 	 
	 
	 	 	 	 
	TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 7.1. Duties of Trustee
	 	 	54	 
	Section 7.2. Rights of Trustee
	 	 	55	 
	Section 7.3. Individual Rights of Trustee
	 	 	56	 
	Section 7.4. Trustee’s Disclaimer
	 	 	56	 
	Section 7.5. Notice of Defaults
	 	 	56	 
	Section 7.6. Reports by Trustee to Holders of the Notes
	 	 	56	 
	Section 7.7. Compensation, Reimbursement and Indemnity
	 	 	56	 

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	 	 	Page
	Section 7.8. Replacement of Trustee
	 	 	57	 
	Section 7.9. Successor Trustee by Merger, Etc.
	 	 	58	 
	Section 7.10. Eligibility; Disqualification
	 	 	58	 
	Section 7.11. Preferential Collection of Claims Against Company
	 	 	58	 
	Section 7.12. Paying Agent and Registrar
	 	 	58	 
	 
	 	 	 	 
	ARTICLE VIII.
	 	 	 	 
	 
	 	 	 	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 	 	 	 
	 
	 	 	 	 
	Section 8.1. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	58	 
	Section 8.2. Legal Defeasance and Discharge
	 	 	59	 
	Section 8.3. Covenant Defeasance
	 	 	59	 
	Section 8.4. Conditions to Legal or Covenant Defeasance
	 	 	59	 
	Section 8.5. Deposited Money and U.S. Government Securities to Be Held in
Trust; Other Miscellaneous Provisions
	 	 	61	 
	Section 8.6. Repayment to Company
	 	 	61	 
	Section 8.7. Reinstatement
	 	 	61	 
	 
	 	 	 	 
	ARTICLE IX.
	 	 	 	 
	 
	 	 	 	 
	AMENDMENT, SUPPLEMENT AND WAIVER
	 	 	 	 
	 
	 	 	 	 
	Section 9.1. Without Consent of Holders of Notes
	 	 	62	 
	Section 9.2. With Consent of Holders of Notes
	 	 	62	 
	Section 9.3. Compliance with Trust Indenture Act
	 	 	63	 
	Section 9.4. Revocation and Effect of Consents
	 	 	63	 
	Section 9.5. Notation on or Exchange of Notes
	 	 	63	 
	Section 9.6. Trustee to Sign Amendment, Etc.
	 	 	64	 
	 
	 	 	 	 
	ARTICLE X.
	 	 	 	 
	 
	 	 	 	 
	GUARANTEE
	 	 	 	 
	 
	 	 	 	 
	Section 10.1. Unconditional Guarantee
	 	 	64	 
	Section 10.2. Severability
	 	 	65	 
	Section 10.3. Limitation of Guarantor’s Liability
	 	 	65	 
	Section 10.4. Release of Guarantor
	 	 	65	 
	Section 10.5. Contribution
	 	 	66	 
	Section 10.6. Waiver of Subrogation
	 	 	66	 
	Section 10.7. Execution of Guarantee
	 	 	66	 
	Section 10.8. Waiver of Stay, Extension or Usury Laws
	 	 	67	 
	 
	 	 	 	 
	ARTICLE XI.
	 	 	 	 
	 
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	 	 
	 
	 	 	 	 
	Section 11.1. Satisfaction and Discharge
	 	 	67	 
	Section 11.2. Application of Trust
	 	 	67	 

-iii-

 

	 	 	 	 	 
	 	 	Page
	ARTICLE XII.
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 12.1. Trust Indenture Act Controls
	 	 	68	 
	Section 12.2. Notices
	 	 	68	 
	Section 12.3. Communication by Holders of Notes with Other Holders of Notes
	 	 	69	 
	Section 12.4. Certificate and Opinion as to Conditions Precedent
	 	 	69	 
	Section 12.5. Statements Required in Certificate or Opinion
	 	 	70	 
	Section 12.6. Rules by Trustee and Agents
	 	 	70	 
	Section 12.7. No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	70	 
	Section 12.8. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial
	 	 	70	 
	Section 12.9. No Adverse Interpretation of Other Agreements
	 	 	71	 
	Section 12.10. Successors
	 	 	71	 
	Section 12.11. Severability
	 	 	71	 
	Section 12.12. Counterpart Originals
	 	 	71	 
	Section 12.13. Table of Contents, Headings, Etc.
	 	 	71	 
	Section 12.14. Qualification of Indenture
	 	 	71	 
	Section 12.15. USA PATRIOT Act
	 	 	71	 
	 
	Signatures
	 	 	S-1	 

EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Series A Note
	 
	 	 
	Exhibit B

	 	Form of Series B Note
	 
	 	 
	Exhibit C

	 	Form of Guarantee
	 
	 	 
	Exhibit D(1)

	 	Form of Regulation S Certificate
	 
	 	 
	Exhibit D(2)

	 	Form of Certificate to Be Delivered upon Exchange or Registration of Transfer of Notes
	 
	 	 
	Exhibit E

	 	Form of Certificate to Be Delivered in Connection with Transfers to Non-QIB Accredited Investors
	 
	 	 
	Exhibit F

	 	Form of Certificate to Be Delivered in Connection with Transfers Pursuant to Regulation S

-iv-

 

INDENTURE

          INDENTURE dated as of May 7, 2007 among MOBILE MINI INC., a Delaware corporation (the
“Company”), the Guarantors (as defined herein), if any, LAW DEBENTURE TRUST COMPANY OF NEW
YORK, as trustee (the “Trustee”) and DEUTSCHE BANK TRUST COMPANY AMERICAS
(“DBTCA”), as Paying Agent and Registrar (in each such capacity the “Paying Agent”
and the “Registrar”).

          Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders (as defined below) of the Company’s 67/8% Senior Notes due 2015:

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1. Definitions.

          “2013 Notes” means the Company’s 91/2% Senior Notes due 2013 issued pursuant to an
Indenture dated June 26, 2003.

          “Acquired Indebtedness” means Indebtedness of a Person or any of its Subsidiaries
existing at the time such Person becomes a Restricted Subsidiary of the Company or at the time it
merges or consolidates with or into the Company or any of its Subsidiaries or assumed in connection
with the acquisition of assets from such Person and in each case not incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a Restricted
Subsidiary of the Company or such acquisition, merger or consolidation.

          “Additional Interest” means all additional interest then owing pursuant to Section 4
of the Registration Rights Agreement or the comparable section of any registration rights agreement
entered into in connection with the issuance of any Additional Notes.

          “Additional Notes” means Notes issued pursuant to Article II and in compliance with
Section 4.9 hereof, in addition to and having substantially the same terms as the $150.0 million
aggregate principal amount of Series A Notes issued on the Issue Date or as the Series B Notes
issued in exchange therefor.

          “Affiliate” means, with respect to any specified Person, any other Person who directly
or indirectly through one or more intermediaries controls, or is controlled by, or is under common
control with, such specified Person. The term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative of the foregoing.

          “Agent” means any Registrar, Paying Agent or co-registrar.

          “Asset Acquisition” means (1) an Investment by the Company or any Restricted
Subsidiary of the Company in any other Person pursuant to which such Person shall become a
Restricted Subsidiary of the Company or any Restricted Subsidiary of the Company, or shall be
merged with or into the Company or any Restricted Subsidiary of the Company, or (2) the acquisition
by the Company or any Restricted Subsidiary of the Company of the assets of any Person (other than
a Restricted Subsidiary of the Company) which constitute all or substantially all of the assets of
such Person or comprises any division or line of business of such Person or any other properties or
assets of such Person other than in the ordinary course of business.

          “Asset Sale” means any direct or indirect sale, issuance, conveyance, transfer, lease
(other than operating leases entered into in the ordinary course of business), assignment or other
transfer for value by the Company or any of its Restricted Subsidiaries (including any Sale and
Leaseback Transaction) to any Person other than the Company or a Restricted Subsidiary of the
Company of: (1) any Capital Stock of any Restricted Subsidiary of the Company; or (2) any other
property or assets of the Company or any Restricted Subsidiary of the Company other than in the
ordinary course of business; provided, however, that asset sales or other dispositions shall not
include:

 

 

(a) a transaction or series of related transactions for which the Company or its Restricted
Subsidiaries receive aggregate consideration (exclusive of any indemnities) of less than $2.0
million; (b) the sale, lease, conveyance, disposition or other transfer of all or substantially all
of the assets of the Company as permitted under Section 5.1; (c) any Restricted Payment permitted
by Section 4.7 or that constitutes a Permitted Investment; (d) the sale or discount, in each case
without recourse, of accounts receivable arising in the ordinary course of business, but only in
connection with the compromise or collection thereof; (e) the sale of or other disposition of cash
or Cash Equivalents; (f) any sale or disposition deemed to occur in connection with creating or
granting any Liens pursuant to Section 4.12; (g) the lease, assignment or sublease of any real or
personal property in the ordinary course of business; (h) any sale of Receivables pursuant to a
Qualified Securitization Transaction; (i) sales of Unrestricted Subsidiaries; and (j) disposals,
trade-ins or replacements of obsolete or worn out equipment.

          “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the
relief of debtors.

          “Board of Directors” means, as to any Person, the board of directors (or similar
governing body) of such Person or any duly authorized committee thereof.

          “Board Resolution” means, with respect to any Person, a copy of a resolution certified
by the Secretary or an Assistant Secretary of such Person to have been duly adopted by the Board of
Directors of such Person and to be in full force and effect on the date of such certification, and
delivered to the Trustee.

          “Borrowing Base” means, as of any date, an amount equal to the sum of:

     (1) 85% of the aggregate book value of all accounts receivable of the Company and its
Restricted Subsidiaries (other than any Special Purpose Vehicle) as of the end of the most
recent fiscal quarter preceding such date; and

     (2) 80% of the aggregate cost basis of the portable storage unit lease fleet (or any
successor line item or items reflecting such portable storage unit lease fleet) as indicated
on its consolidated balance sheet as owned by the Company and its Restricted Subsidiaries as
of the end of the most recent fiscal quarter preceding such date (plus 80% of the fair
market value of any portable storage units acquired since the end of such fiscal quarter),

all calculated on a consolidated basis and in accordance with GAAP.

          “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by law, regulation or
executive order to remain closed. If a payment date is not a Business Day, payment may be made on
the next succeeding day that is a Business Day, and no interest shall accrue for the intervening
period.

          “Capital Stock” means:

     (1) with respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not voting) of
corporate stock, including each class of Common Stock and Preferred Stock of such Person,
and all options, warrants or other rights to purchase or acquire any of the foregoing; and

     (2) with respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person, and all options, warrants or other
rights to purchase or acquire any of the foregoing.

          “Capitalized Lease Obligation” means, as to any Person, the obligations of such Person
under a lease that are required to be classified and accounted for as capital lease obligations
under GAAP and, for purposes of this definition, the amount of such obligations at any date shall
be the capitalized amount of such obligations at such date, determined in accordance with GAAP.

-2-

 

          “Cash Equivalents” means:

     (1) marketable direct obligations issued by, or unconditionally guaranteed by, the
United States Government or issued by any agency thereof and backed by the full faith and
credit of the United States, in each case maturing within one year from the date of
acquisition thereof;

     (2) marketable direct obligations issued by any state of the United States of America
or any political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either S&P or Moody’s;

     (3) commercial paper maturing no more than one year from the date of creation thereof
and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1
from Moody’s;

     (4) certificates of deposit or bankers’ acceptances maturing within one year from the
date of acquisition thereof issued by any bank organized under the laws of the United States
of America or any state thereof or the District of Columbia or any U.S. branch of a foreign
bank having at the date of acquisition thereof combined capital and surplus of not less than
$250.0 million;

     (5) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clause (1) above entered into with any bank meeting the
qualifications specified in clause (4) above; and

     (6) investments in money market funds which invest substantially all their assets in
securities of the types described in clauses (1) through (5) above.

          “Change of Control” means the occurrence of one or more of the following events:

     (1) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the Company to any Person
or group of related Persons for purposes of Section 13(d) of the Exchange Act (a
“Group”), together with any Affiliates thereof (whether or not otherwise in
compliance with the provisions of this Indenture;

     (2) the approval by the holders of Capital Stock of the Company of any plan or proposal
for the liquidation or dissolution of the Company (whether or not otherwise in compliance
with the provisions of this Indenture);

     (3) any Person or Group (other than any entity formed for the purpose of owning Capital
Stock of the Company) shall become the owner, directly or indirectly, beneficially or of
record, of shares representing more than 50% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock of the Company; or

     (4) the replacement of a majority of the Board of Directors of the Company over a
two-year period from the directors who constituted the Board of Directors of the Company at
the beginning of such period, and such replacement shall not have been approved by a vote of
at least a majority of the Board of Directors of the Company then still in office who either
were members of such Board of Directors at the beginning of such period or whose election as
a member of such Board of Directors was previously so approved.

          “Clearstream” shall mean Clearstream Banking, Société Anonyme, Luxembourg.

          “Commission” means the Securities and Exchange Commission.

          “Common Stock” of any Person means any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or non-voting) of
such Person’s common stock, whether

-3-

 

outstanding on the Issue Date or issued after the Issue Date, and includes, without
limitation, all series and classes of such common stock.

          “Company” means Mobile Mini Inc., a Delaware corporation, or any successor obligor
under this Indenture and the Notes pursuant to Article V.

          “Comparable Treasury Issue” means the United States treasury security selected by an
Independent Investment Bank as having a maturity comparable to the remaining term of the notes 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:

     (1) the average of the bid and ask prices for the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) on the third business day preceding
such Redemption Date, as set forth in the most recently published statistical release
designated “H.15 (519)” (or any successor release) published by the Board of Governors of
the Federal Reserve System and which establishes yields on actively traded United States
treasury securities adjusted to constant maturity under the caption “Treasury Constant
Maturities,” or

     (2) if such release (or any successor release) is not published or does not contain
such prices on such business day, the average of the Reference Treasury Dealer Quotations
for such Redemption Date.

          “Consolidated Assets” means, as of the date of determination, the total assets (less
goodwill and intangible assets) of the Company and its Restricted Subsidiaries as shown on the
balance sheet of the Company and its Subsidiaries for the most recently ended fiscal quarter for
which financial statements are available, determined on a consolidated basis in accordance with
GAAP.

          “Consolidated EBITDA” means, with respect to any Person, for any period, the sum
(without duplication) of:

     (1) Consolidated Net Income; and

     (2) to the extent Consolidated Net Income has been reduced thereby:

     (a) all income taxes of such Person and its Restricted Subsidiaries paid or
accrued in accordance with GAAP for such period (other than income taxes
attributable to extraordinary, unusual or nonrecurring gains or losses or taxes
attributable to sales or dispositions outside the ordinary course of business);

     (b) Consolidated Interest Expense; and

     (c) Consolidated Non-cash Charges less any non-cash items increasing
Consolidated Net Income for such period, all as determined on a consolidated basis
for such Person and its Restricted Subsidiaries in accordance with GAAP.

          “Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person, the
ratio of Consolidated EBITDA of such Person during the four full fiscal quarters (the “Four
Quarter Period”) ending prior to the date of the transaction giving rise to the need to
calculate the Consolidated Fixed Charge Coverage Ratio for which financial statements are available
(the “Transaction Date”) to Consolidated Fixed Charges of such Person for the Four Quarter
Period. In addition to and without limitation of the foregoing, for purposes of this definition,
“Consolidated EBITDA” and “Consolidated Fixed Charges” shall be calculated after giving effect on a
pro forma basis for the period of such calculation to:

-4-

 

     (1) the incurrence or repayment of any Indebtedness of such Person or any of its
Restricted Subsidiaries (and the application of the proceeds thereof) giving rise to the
need to make such calculation and any incurrence or repayment of other Indebtedness (and the
application of the proceeds thereof), other than the incurrence or repayment of Indebtedness
in the ordinary course of business for working capital purposes pursuant to working capital
facilities, occurring during the Four Quarter Period or at any time subsequent to the last
day of the Four Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment, as the case may be (and the application of the proceeds thereof),
occurred on the first day of the Four Quarter Period; and

     (2) any asset sales or other dispositions or Asset Acquisitions (including, without
limitation, any Asset Acquisition giving rise to the need to make such calculation as a
result of such Person or one of its Restricted Subsidiaries (including any Person who
becomes a Restricted Subsidiary as a result of the Asset Acquisition) incurring, assuming or
otherwise being liable for Acquired Indebtedness and also including any Consolidated EBITDA
(including any pro forma expense and cost reductions calculated on a basis consistent with
Regulation S-X under the Exchange Act) attributable to the assets which are the subject of
the Asset Acquisition or asset sale or other disposition during the Four Quarter Period)
occurring during the Four Quarter Period or at any time subsequent to the last day of the
Four Quarter Period and on or prior to the Transaction Date, as if such asset sale or other
disposition or Asset Acquisition (including the incurrence, assumption or liability for any
such Acquired Indebtedness) occurred on the first day of the Four Quarter Period. If such
Person or any of its Restricted Subsidiaries directly or indirectly guarantees Indebtedness
of a third Person, the preceding sentence shall give effect to the incurrence of such
guaranteed Indebtedness as if such Person or any Restricted Subsidiary of such Person had
directly incurred or otherwise assumed such guaranteed Indebtedness.

          Furthermore, in calculating “Consolidated Fixed Charges” for purposes of determining the
denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage Ratio”:

     (1) interest on outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall be deemed to
have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in
effect on the Transaction Date; and

     (2) notwithstanding clause (1) above, interest on Indebtedness determined on a
fluctuating basis, to the extent such interest is covered by agreements relating to Interest
Swap Obligations, shall be deemed to accrue at the rate per annum resulting after giving
effect to the operation of such agreements.

          “Consolidated Fixed Charges” means, with respect to any Person for any period, the
sum, without duplication, of:

     (1) Consolidated Interest Expense; plus

     (2) the product of (x) the amount of all dividend payments on any series of Preferred
Stock of such Person and, to the extent permitted under this Indenture, its Restricted
Subsidiaries (other than dividends paid in Qualified Capital Stock) paid, accrued or
scheduled to be paid or accrued during such period times (y) a fraction, the numerator of
which is one and the denominator of which is one minus the then current effective
consolidated federal, state and local income tax rate of such Person, expressed as a
decimal.

          “Consolidated Interest Expense” means, with respect to any Person for any period, the
sum of, without duplication:

     (1) the aggregate of the interest expense of such Person and its Restricted
Subsidiaries for such period determined on a consolidated basis in accordance with GAAP,
including without limitation: (a) any amortization of debt discount and amortization or
write-off of deferred financing costs; (b) the net costs under Interest Swap Obligations
incurred in the fiscal quarter beginning after the Issue Date; (c) all capitalized interest;
and (d) the interest portion of any deferred payment obligation; and

-5-

 

     (2) the interest component of Capitalized Lease Obligations paid, accrued and/or
scheduled to be paid or accrued by such Person and its Restricted Subsidiaries during such
period as determined on a consolidated basis in accordance with GAAP; less

     (3) interest income for such period.

          “Consolidated Net Income” means, with respect to any Person, for any period, the
aggregate net income (or loss) of such Person and its Restricted Subsidiaries for such period on a
consolidated basis, determined in accordance with GAAP; provided that there shall be excluded
therefrom (without duplication):

     (1) after-tax gains from Asset Sales (without regard to the $2.0 million limitation set
forth in the definition thereof) or abandonments or reserves relating thereto;

     (2) after-tax items classified as extraordinary or nonrecurring gains;

     (3) the net income (but not loss) of any Restricted Subsidiary of the referent Person
to the extent that the declaration of dividends or similar distributions by that Restricted
Subsidiary of that income is restricted by a contract, operation of law or otherwise;

     (4) the net income of any Person, other than a Restricted Subsidiary of the referent
Person, except to the extent of cash dividends or distributions paid to the referent Person
or to a Wholly Owned Restricted Subsidiary of the referent Person by such Person;

     (5) any restoration to income of any contingency reserve, except to the extent that
provision for such reserve was made out of Consolidated Net Income accrued at any time
following the Issue Date;

     (6) income or loss attributable to discontinued operations (including, without
limitation, operations disposed of during such period whether or not such operations were
classified as discontinued);

     (7) in the case of a successor to the referent Person by consolidation or merger or as
a transferee of the referent Person’s assets, any earnings of the successor corporation
prior to such consolidation, merger or transfer of assets;

     (8) fees and expenses incurred in connection with this offering of the Notes and
related refinancing transactions in an aggregate amount not to exceed $15.0 million; and

     (9) charges to earnings incurred in connection with the early retirement of the 2013
Notes and the repurchase of 35% of the 2013 Notes in fiscal year 2006 with the proceeds from
a concurrent equity issuance.

          “Consolidated Non-cash Charges” means, with respect to any Person, for any period, the
aggregate depreciation, amortization and other non-cash expenses of such Person and its Restricted
Subsidiaries reducing Consolidated Net Income of such Person and its Restricted Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP (excluding any such charges
constituting an extraordinary item or loss or any such charge which requires an accrual of or a
reserve for cash charges for any future period).

          “Corporate Trust Office of the Trustee” shall be at the address of the Trustee
specified in Section 12.2 or such other address as to which the Trustee may give notice to the
Company.

          “Credit Agreement” means the Second Amended and Restated Loan and Security Agreement
dated as of February 17, 2006, between the Company, certain of the Company’s subsidiaries, the
lenders party thereto in their capacities as lenders thereunder, Deutsche Bank AG, New York Branch,
as administrative agent and Deutsche Bank Securities Inc. and Banc of America Securities LLC, as
joint lead arrangers, together with the related documents thereto (including, without limitation,
any notes, guarantee agreements and security documents), in each case as such agreements may be
amended (including any amendment and restatement thereof),
supplemented or

-6-

 

otherwise modified from time to time, including one or more credit agreements, loan
agreements, indentures or similar agreements extending the maturity of, refinancing, replacing,
renewing or otherwise restructuring (including increasing the amount of available credit thereunder
or adding Subsidiaries of the Company as additional borrowers or guarantors thereunder) all or any
portion of the Indebtedness under such agreement or agreements or any successor or replacement
agreement or agreements and whether by the same or any other agent, lender or group of lenders.

          “Currency Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement designed to protect the Company or any Restricted Subsidiary
of the Company against fluctuations in currency values.

          “Default” means an event or condition the occurrence of which is, or with the lapse of
time or the giving of notice or both would be, an Event of Default.

          “Depositary” means, with respect to the Notes issuable in whole or in part in global
form, the Person specified in Section 2.6(g) as the Depositary with respect to the Notes, until a
successor shall have been appointed and become such pursuant to the applicable provisions hereof,
and, thereafter, “Depositary” shall mean or include such successor.

          “Disqualified Capital Stock” means that portion of any Capital Stock which, by its
terms (or by the terms of any security into which it is convertible or for which it is exchangeable
at the option of the holder thereof), or upon the happening of any event (other than an event which
would constitute a Change of Control), matures or is mandatorily redeemable, pursuant to a sinking
fund obligation or otherwise, or is redeemable at the sole option of the holder thereof (except, in
each case, upon the occurrence of a Change of Control) on or prior to the final maturity date of
the Notes.

          “Domestic Restricted Subsidiary” means a Restricted Subsidiary incorporated or
otherwise organized or existing under the laws of the United States, any state thereof or any
territory or possession of the United States.

          “Equity Offering” means a public or private equity offering of Qualified Capital Stock
of the Company or any of its Subsidiaries other than:

     (1) public offerings with respect to the common stock of the Company or any Subsidiary
registered on Form S-8; and

     (2) issuances to any Subsidiary of the Company.

          “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear System.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute or statutes thereto.

          “Exchange
Notes” means the 67/8% Senior Notes due 2015 issued in exchange for the
Initial Notes, which Exchange Notes are registered under the Securities Act and issued pursuant to
the terms of a certain registration rights agreement dated as of May 7, 2007 by and among the
Company, the Guarantors and the initial purchasers named therein.

          “Exchange Offer” means the offer that shall be made by the Company pursuant to the
Registration Rights Agreement to exchange Series A Notes for Series B Notes.

          “fair market value” means, with respect to any asset or property, the price which
could be negotiated in an arm’s-length, free market transaction, for cash, between a willing seller
and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the
transaction. Fair market value shall be determined by the Board of Directors of the Company acting
reasonably and in good faith and shall be evidenced by a Board Resolution of the Board of Directors
of the Company delivered to the Trustee.

-7-

 

          “Foreign Subsidiary” means any Restricted Subsidiary that is not a Domestic Restricted
Subsidiary.

          “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession of the United States, which are in effect as of the Issue Date.

          “Guarantee” means a guarantee of the Notes by a Guarantor.

          “Guarantor” means each of the Company’s Domestic Restricted Subsidiaries that in the
future executes a supplemental indenture in which such Restricted Subsidiary agrees to be bound by
the terms of this Indenture as a Guarantor; provided that any Person constituting a Guarantor as
described above shall cease to constitute a Guarantor when its respective Guarantee is released in
accordance with the terms of this Indenture.

          “Holder” means a Person in whose name a Note is registered.

          “Indebtedness” means with respect to any Person, without duplication:

     (1) all Obligations of such Person for borrowed money;

     (2) all Obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments;

     (3) all Capitalized Lease Obligations of such Person;

     (4) all Obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations and all Obligations under any title retention
agreement (but excluding trade accounts payable and other accrued liabilities arising in the
ordinary course of business that are not overdue by 90 days or more or are being contested
in good faith by appropriate proceedings promptly instituted and diligently conducted);

     (5) all Obligations for the reimbursement of any obligor on any letter of credit,
banker’s acceptance or similar credit transaction;

     (6) guarantees and other contingent obligations in respect of Indebtedness referred to
in clauses (1) through (5) above and clause (8) below;

     (7) all Obligations of any other Person of the type referred to in clauses (1) through
(6) which are secured by any lien on any property or asset of such Person, the amount of
such Obligation being deemed to be the lesser of the fair market value of such property or
asset or the amount of the Obligation so secured;

     (8) all Obligations under currency agreements and interest swap agreements of such
Person; and

     (9) all Disqualified Capital Stock issued by such Person with the amount of
Indebtedness represented by such Disqualified Capital Stock being equal to the greater of
its voluntary or involuntary liquidation preference and its maximum fixed repurchase price,
but excluding accrued dividends, if any.

          For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Capital Stock
which does not have a fixed repurchase price shall be calculated in accordance with the terms of
such Disqualified Capital Stock as if such Disqualified Capital Stock were purchased on any date on
which Indebtedness shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market

-8-

 

value of such Disqualified Capital Stock, such fair market value shall be determined
reasonably and in good faith by the Board of Directors of the issuer of such Disqualified Capital
Stock.

          “Indenture” means this Indenture, as amended or supplemented from time to time.

          “Independent Financial Advisor” means a firm: (1) which does not, and whose
directors, officers and employees or Affiliates do not, have a direct or indirect financial
interest in the Company; and (2) which, in the judgment of the Board of Directors of the Company,
is otherwise independent and qualified to perform the task for which it is to be engaged.

          “Independent Investment Bank” means one of the Reference Treasury Dealers appointed by
the Company.

          “Initial Notes” means the Series A Notes.

          “Initial Purchasers” means Deutsche Bank Securities Inc., CIBC World Markets Corp.,
Banc of America Securities LLC and Credit Suisse Securities (USA) LLC.

          “Interest Swap Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person, whereby, directly or indirectly, such Person is entitled to
receive from time to time periodic payments calculated by applying either a floating or a fixed
rate of interest on a stated notional amount in exchange for periodic payments made by such other
Person calculated by applying a fixed or a floating rate of interest on the same notional amount
and shall include, without limitation, interest rate swaps, caps, floors, collars and similar
agreements.

          “Investment” means, with respect to any Person, any direct or indirect loan or other
extension of credit (including, without limitation, a guarantee) or capital contribution to (by
means of any transfer of cash or other property to others or any payment for property or services
for the account or use of others), or any purchase or acquisition by such Person of any Capital
Stock, bonds, notes, debentures or other securities or evidences of Indebtedness issued by, any
other Person. “Investment” shall exclude (i) extensions of trade credit by the Company and its
Restricted Subsidiaries on commercially reasonable terms in accordance with normal trade practices
of the Company or such Restricted Subsidiary, as the case may be; (ii) the acquisition of property
and assets from suppliers and other vendors in the normal course of business and consistent with
past practice; and (iii) prepaid expenses and workers’ compensation, utility, lease and similar
deposits, in the normal course of business and consistent with past practice. If the Company or
any Restricted Subsidiary of the Company sells or otherwise disposes of any Common Stock of any
direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Restricted Subsidiary, the Company shall be deemed
to have made an Investment on the date of any such sale or disposition equal to the fair market
value of the Common Stock of such Restricted Subsidiary not sold or disposed of.

          “Investment Grade Rating” means a rating equal to or higher than Baa3 (or equivalent)
by Moody’s or BBB- (or equivalent) by S&P, or an equivalent rating by any other Rating Agency.

          “Issue Date” means May 7, 2007.

          “Lien” means any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title retention agreement, any
lease in the nature thereof and any agreement to give any security interest).

          “Moody’s” means Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

          “Net Cash Proceeds” means, with respect to any Asset Sale, the proceeds in the form of
cash or Cash Equivalents including payments in respect of deferred payment obligations when
received in the form of cash

-9-

 

or Cash Equivalents (other than the portion of any such deferred payment constituting
interest) received by the Company or any of its Restricted Subsidiaries from such Asset Sale net
of:

     (1) reasonable out-of-pocket expenses and fees relating to such Asset Sale (including,
without limitation, legal, accounting and investment banking fees and sales commissions);

     (2) taxes paid or payable after taking into account any reduction in consolidated tax
liability due to available tax credits or deductions and any tax sharing arrangements;

     (3) repayment of Indebtedness that is secured by the property or assets that are the
subject of such Asset Sale;

     (4) amounts required to be paid to any Person owning a beneficial interest in or having
a Lien on the assets subject to the Asset Sale; and

     (5) appropriate amounts to be provided by the Company or any Restricted Subsidiary, as
the case may be, as a reserve, in accordance with GAAP, against any liabilities associated
with such Asset Sale and retained by the Company or any Restricted Subsidiary, as the case
may be, after such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental matters and
liabilities under any indemnification obligations associated with such Asset Sale.

          “Note Custodian” means DBTCA, as custodian with respect to the Notes in global form,
or any successor entity thereto.

          “Notes” means the Series A Notes and the Series B Notes, if any, that are issued under
this Indenture, as amended or supplemented from time to time, including Additional Notes, if any,
and any Exchange Notes, if any.

          “Obligations” means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under the documentation
governing any Indebtedness.

          “Officer” means, (a) with respect to any Person that is a corporation, the Chairman of
the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief
Financial Officer, the Chief Operating Officer, the Treasurer, the Controller, the Secretary or any
Vice-President of such Person and (b) with respect to any other Person, the individuals selected by
such Person to perform functions similar to those of the officers listed in clause (a).

          “Officers’ Certificate” means a certificate signed on behalf of the Company by two
Officers of the Company, one of whom must be the Chief Executive Officer, the Chief Financial
Officer, the Treasurer or the principal accounting officer of the Company, that meets the
requirements of Sections 12.4 and 12.5.

          “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable
to the Trustee that meets the requirements of Sections 12.4 and 12.5. The counsel may be an
employee of or counsel to the Company, any Subsidiary of the Company or the Trustee.

          “Pari Passu Debt” means any Indebtedness of the Company or any Guarantor that ranks
pari passu in right of payment with the Notes or such Guarantee, as applicable.

          “Permitted Business” means any business conducted by the Company on the Issue Date,
any reasonable extension thereof, and any additional business reasonably ancillary, incidental,
complementary or related to, or a reasonable extension, development or expansion of, the business
conducted by the Company and the Restricted Subsidiaries on the Issue Date, in each case, as
determined in good faith by the Board of Directors of the Company.

-10-

 

          “Permitted Indebtedness” means, without duplication, each of the following:

     (1) Indebtedness under the Notes issued on the Issue Date in an aggregate principal
amount not to exceed $150.0 million;

     (2) Indebtedness incurred pursuant to the Credit Agreement in an aggregate principal
amount at any time outstanding not to exceed the greater of (A) $425.0 million less the
amount of all required permanent repayments (which are accompanied by a corresponding
permanent commitment reduction) thereunder with the Net Cash Proceeds from Asset Sales and
(B) $25.0 million plus the Borrowing Base;

     (3) other Indebtedness of the Company and its Restricted Subsidiaries outstanding on
the Issue Date reduced by the amount of any scheduled amortization payments or mandatory
prepayments when actually paid or permanent reductions thereon;

     (4) Interest Swap Obligations of the Company or any Restricted Subsidiary of the
Company covering Indebtedness of the Company or any of its Restricted Subsidiaries;
provided, however, that such Interest Swap Obligations are entered into to protect the
Company and its Restricted Subsidiaries from fluctuations in interest rates on its
outstanding Indebtedness to the extent the notional principal amount of such Interest Swap
Obligation does not, at the time of the incurrence thereof, exceed the principal amount of
the Indebtedness to which such Interest Swap Obligation relates;

     (5) Indebtedness under Currency Agreements; provided that in the case of Currency
Agreements which relate to Indebtedness, such Currency Agreements do not increase the
Indebtedness of the Company and its Restricted Subsidiaries outstanding other than as a
result of fluctuations in foreign currency exchange rates or by reason of fees, indemnities
and compensation payable thereunder;

     (6) Indebtedness of a Restricted Subsidiary of the Company to the Company or to a
Restricted Subsidiary of the Company for so long as such Indebtedness is held by the Company
or a Restricted Subsidiary of the Company or the holder of a Lien permitted under this
Indenture, in each case subject to no Lien held by a Person other than the Company or a
Restricted Subsidiary of the Company or the holder of a Lien permitted under this Indenture;
provided that if as of any date any Person other than the Company or a Restricted Subsidiary
of the Company or the holder of a Lien permitted under this Indenture owns or holds any such
Indebtedness or holds a Lien in respect of such Indebtedness, such date shall be deemed the
incurrence of Indebtedness not constituting Permitted Indebtedness under this clause (6) by
the issuer of such Indebtedness;

     (7) Indebtedness of the Company to a Restricted Subsidiary of the Company for so long
as such Indebtedness is held by a Restricted Subsidiary of the Company or the holder of a
Lien permitted under this Indenture, in each case subject to no Lien other than a Lien
permitted under this Indenture; provided that (a) any Indebtedness of the Company to any
Restricted Subsidiary of the Company that is not a Guarantor is unsecured and subordinated,
pursuant to a written agreement, to the Company’s obligations under this Indenture and the
Notes and (b) if as of any date any Person other than a Restricted Subsidiary of the Company
or the holder of a Lien permitted under this Indenture owns or holds any such Indebtedness
or any Person holds a Lien in respect of such Indebtedness, such date shall be deemed the
incurrence of Indebtedness not constituting Permitted Indebtedness under this clause (7) by
the Company;

     (8) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business; provided,
however, that such Indebtedness is extinguished within five business days of incurrence;

     (9) Indebtedness of the Company or any of its Restricted Subsidiaries in respect of
performance bonds, bankers’ acceptances, workers’ compensation claims, surety or appeal
bonds, payment obligations in connection with self-insurance or similar obligations, and
bank overdrafts (and letters of credit in respect thereof) in the ordinary course of
business;

-11-

 

     (10) Indebtedness represented by Capitalized Lease Obligations and Purchase Money
Indebtedness of the Company and its Restricted Subsidiaries incurred in the ordinary course
of business in an aggregate principal amount not to exceed the greater of (x) $15.0 million
and (y) 2.0% of Consolidated Assets of the Company at any one time outstanding;

     (11) Refinancing Indebtedness;

     (12) Indebtedness represented by guarantees by the Company or its Restricted
Subsidiaries of Indebtedness otherwise permitted to be incurred under this Indenture;

     (13) Indebtedness of the Company or any Restricted Subsidiary consisting of guarantees,
indemnities or obligations in respect of purchase price adjustments in connection with the
acquisition or disposition of assets;

     (14) Indebtedness incurred pursuant to a Qualified Securitization Transaction;
provided, however, that after giving effect to any such incurrence, the aggregate principal
amount of all Indebtedness under this clause (14) plus any Indebtedness incurred pursuant to
clause (2) and outstanding on the date of such incurrence does not exceed the greater of (a)
$425.0 million and (b) $25.0 million plus the Borrowing Base;

     (15) Acquired Indebtedness of the Company or any Restricted Subsidiary, in an aggregate
principal amount not to exceed $10.0 million;

     (16) additional Indebtedness of the Company and its Restricted Subsidiaries in an
aggregate principal amount not to exceed $25.0 million at any one time outstanding (which
amount may, but need not, be incurred in whole or in part under the Credit Agreement); and

     (17) Indebtedness of Foreign Subsidiaries that are Restricted Subsidiaries in an
aggregate principal amount not to exceed $50.0 million at any one time outstanding.

          For purposes of determining compliance with Section 4.9, (1) in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness
described in clauses (1) through (17) above or is entitled to be incurred pursuant to the
Consolidated Fixed Charge Coverage Ratio provisions of Section 4.9, the Company shall, in its sole
discretion, classify (or later reclassify) such item of Indebtedness in any manner that complies
with this definition; provided that all Indebtedness outstanding under the Credit Agreement up to
the maximum amount permitted under clause (2) of this definition above shall be deemed to have been
incurred pursuant to clause (2) of this definition; (2) the outstanding principal amount of any
particular Indebtedness shall be counted only once and any obligations arising under any guarantee,
lien, letter of credit or similar instrument supporting such Indebtedness shall be disregarded; (3)
the maximum amount of Indebtedness that the Company or a Restricted Subsidiary may incur pursuant
to Section 4.9 shall not be deemed to be exceeded, with respect to any outstanding Indebtedness,
due solely to the result of fluctuations in the exchange rates of currencies; and (4) the accrual
of interest, accretion or amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, and the payment of
dividends on Disqualified Capital Stock in the form of additional shares of the same class of
Disqualified Capital Stock will not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Capital Stock for purposes of Section 4.9.

          “Permitted Investments” means:

     (1) Investments by the Company or any Restricted Subsidiary of the Company in any
Person that is or will become immediately after such Investment a Restricted Subsidiary of
the Company or that will merge or consolidate into the Company or a Restricted Subsidiary of
the Company;

     (2) Investments in the Company by any Restricted Subsidiary of the Company;

     (3) investments in cash and Cash Equivalents;

-12-

 

     (4) loans and advances to employees, directors and officers of the Company and its
Restricted Subsidiaries in the ordinary course of business for bona fide business purposes
not in excess of $500,000 at any one time outstanding;

     (5) Currency Agreements and Interest Swap Obligations entered into in the ordinary
course of the Company’s or its Restricted Subsidiaries’ businesses and otherwise in
compliance with this Indenture;

     (6) additional Investments in an aggregate principal amount not to exceed the greater
of (x) $15.0 million and (y) 2.0% of Consolidated Assets of the Company at any one time
outstanding;

     (7) Investments in securities of trade creditors or customers received pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers or in good faith settlement of delinquent obligations of such
trade creditors or customers;

     (8) Investments made by the Company or its Restricted Subsidiaries as a result of
consideration received in connection with an Asset Sale made in compliance with Section
4.10;

     (9) Investments represented by guarantees that are otherwise permitted under this
Indenture;

     (10) Investments the payment for which is Qualified Capital Stock of the Company;

     (11) Investments in a Special Purpose Vehicle in connection with a Qualified
Securitization Transaction; provided, however, that the only assets transferred to such
Special Purpose Vehicle consist of Receivables and related assets of such Special Purpose
Vehicle; and

     (12) Investments in existence on the date of this Indenture and an Investment in any
Person to the extent such Investment replaces or refinances an Investment in such Person
existing on the date of this Indenture in an amount not exceeding the amount of the
Investment being replaced or refinanced; provided, however, that the new Investment is on
terms and conditions no less favorable to the Company and its Restricted Subsidiaries than
the Investment being renewed or replaced.

          “Permitted Liens” means the following types of Liens:

     (1) Liens for taxes, assessments or governmental charges or claims either (a) not
delinquent or (b) contested in good faith by appropriate proceedings and as to which the
Company or its Restricted Subsidiaries shall have set aside on its books such reserves as
may be required pursuant to GAAP;

     (2) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
suppliers, materialmen, repairmen and other Liens imposed by law incurred in the ordinary
course of business for sums not yet delinquent or being contested in good faith, if such
reserve or other appropriate provision, if any, as shall be required by GAAP shall have been
made in respect thereof;

     (3) Liens incurred or deposits made in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other types of social security,
including any Lien securing letters of credit issued in the ordinary course of business
consistent with past practice in connection therewith, or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases, warranty
requirements, government contracts, performance and return-of-money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed money);

     (4) judgment Liens not giving rise to an Event of Default so long as such Lien is
adequately bonded and any appropriate legal proceedings which may have been duly initiated
for the review of such judgment shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired;

-13-

 

     (5) easements, rights-of-way, zoning restrictions and other similar charges or
encumbrances in respect of real property not interfering in any material respect with the
ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;

     (6) any interest or title of a lessor under any Capitalized Lease Obligation; provided
that such Liens do not extend to any property or assets which is not leased property subject
to such Capitalized Lease Obligation other than proceeds thereof;

     (7) Liens securing Purchase Money Indebtedness incurred or in the ordinary course of
business; provided, however, that (a) such Purchase Money Indebtedness shall not exceed the
purchase price or other cost of such property or equipment and shall not be secured by any
property or equipment of the Company or any Restricted Subsidiary of the Company other than
the property and equipment so acquired and (b) the Lien securing such Purchase Money
Indebtedness shall be created within 90 days of such acquisition;

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

     (9) Liens securing reimbursement obligations with respect to commercial letters of
credit which encumber documents and other property relating to such letters of credit and
products and proceeds thereof;

     (10) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual, or warranty requirements of the Company or any of its Restricted
Subsidiaries, including rights of offset and set-off;

     (11) Liens securing Interest Swap Obligations which Interest Swap Obligations relate to
Indebtedness that is otherwise permitted under this Indenture;

     (12) Liens securing Indebtedness under Currency Agreements;

     (13) Liens securing Acquired Indebtedness incurred in accordance with Section 4.9;
provided that:

     (a) such Liens secured such Acquired Indebtedness at the time of and prior to
the incurrence of such Acquired Indebtedness by the Company or a Restricted
Subsidiary of the Company and were not granted in connection with, or in
anticipation of, the incurrence of such Acquired Indebtedness by the Company or a
Restricted Subsidiary of the Company, and

     (b) such Liens do not extend to or cover any property or assets of the Company
or of any of its Restricted Subsidiaries other than the property or assets that
secured the Acquired Indebtedness prior to the time such Indebtedness became
Acquired Indebtedness of the Company or a Restricted Subsidiary of the Company and
are no more favorable to the lienholders than those securing the Acquired
Indebtedness prior to the incurrence of such Acquired Indebtedness by the Company or
a Restricted Subsidiary of the Company;

     (14) Liens on assets of a Restricted Subsidiary of the Company that is not a Guarantor
to secure Indebtedness of such Restricted Subsidiary that is otherwise permitted under this
Indenture;

     (15) leases, subleases, licenses and sublicenses granted to others that do not
materially interfere with the ordinary cause of business of the Company and its Restricted
Subsidiaries;

     (16) banker’s Liens, rights of setoff and similar Liens with respect to cash and Cash
Equivalents on deposit in one or more bank accounts in the ordinary course of business;

-14-

 

     (17) Liens arising from filing Uniform Commercial Code financing statements regarding
leases;

     (18) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payments of customs duties in connection with the importation of goods;

     (19) Liens securing Indebtedness permitted to be incurred pursuant to clause (16) or
(17) of the definition of “Permitted Indebtedness”; provided that, in the case of clause
(17), such Liens do not extend to any assets other than the assets of such Foreign
Subsidiaries;

     (20) Liens on Receivables to reflect sales of receivables pursuant to a Qualified
Securitization Transaction;

     (21) other Liens securing Indebtedness for borrowed money with respect to property or
assets with an aggregate fair market value (valued at the time of creation thereof) of not
more than $15.0 million at any time in the aggregate; and

     (22) deposits made in the ordinary course of business to secure liability to insurance
carriers.

          “Person” means an individual, partnership, corporation, unincorporated organization,
trust or joint venture, or a governmental agency or political subdivision thereof.

          “PORTAL Market” means the Private Offerings, Resales and Trading through Automated
Linkages Market, commonly referred to as the Portal Market, operated by the National Association of
Securities Dealers, Inc. or any successor thereto.

          “Preferred Stock” of any Person means any Capital Stock of such Person that has
preferential rights to any other Capital Stock of such Person with respect to dividends or
redemptions or upon liquidation.

          “Purchase Date” means, with respect to any Note to be repurchased, the date fixed for
such repurchase by or pursuant to this Indenture.

          “Purchase Money Indebtedness” means Indebtedness of the Company and its Restricted
Subsidiaries incurred in the normal course of business for the purpose of financing all or any part
of the purchase price, or the cost of installation, construction or improvement, of property or
equipment.

          “Purchase Price” means the amount payable for the repurchase of any Note on a Purchase
Date, exclusive of accrued and unpaid interest and Additional Interest (if any) thereon to the
Purchase Date, unless otherwise specifically provided.

          “QIB” means a qualified institutional buyer as defined in Rule 144A under the
Securities Act.

          “Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital
Stock.

          “Qualified Securitization Transaction” means any transaction or series of transactions
that may be entered into by the Company or any Restricted Subsidiary in connection with or
reasonably related to a transaction or series of transactions in which the Company or any
Restricted Subsidiary may sell, convey or otherwise transfer to (1) a Special Purpose Vehicle or
(2) any other Person, or may grant a security interest in, any equipment and related assets
(including contract rights) or Receivables or interests therein secured by goods or services
financed thereby (whether such Receivables are then existing or arising in the future) of the
Company or any Restricted Subsidiary, and any assets relating thereto including, without
limitation, all security or ownership interests in goods or services financed thereby, the proceeds
of such Receivables, and other assets which are customarily sold or in respect of which security
interests are customarily granted in connection with securitization transactions involving such
assets, as any agreement governing any such transactions may be renewed, refinanced, amended,
restated or modified from time to time.

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          “Rating Agency” means (1) each of Moody’s and S&P and (2) if Moody’s or S&P ceases to
rate the Notes for reasons outside the Company’s control, a “nationally recognized statistical
rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act,
selected by the Company or any parent company of the Company as a replacement agency for Moody’s or
S&P, as the case may be.

          “Receivables” means any right of payment from or on behalf of any obligor, whether
constituting an account, chattel paper, instrument, general intangible or otherwise, arising from
the financing by the Company or any Restricted Subsidiary of goods or services, and monies due
thereunder, security or ownership interests in the goods and services financed thereby, records
relating thereto, and the right to payment of any interest or finance charges and other obligations
with respect thereto, proceeds from claims on insurance policies related thereto, any other
proceeds related thereto, and other related rights.

          “Redemption Date” means, with respect to any Note to be redeemed, the date fixed for
such redemption by or pursuant to this Indenture.

          “Redemption Price” means the amount payable for the redemption of any Note on a
Redemption Date, exclusive of accrued and unpaid interest and Additional Interest (if any) thereon
to the Redemption Date, unless otherwise specifically provided.

          “Reference Treasury Dealer” means Deutsche Bank Securities Inc. and its successors;
provided, however, that if it shall cease to be a primary U.S. Government securities dealer in New
York City (a “Primary Treasury Dealer”), the Company shall 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 Company, 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 Company by such Reference Treasury Dealer at 5:00 p.m. on the
third business day preceding such Redemption Date.

          “Refinance” means, in respect of any security or Indebtedness, to refinance, extend,
renew, refund, repay, prepay, redeem, defease or retire, or to issue a security or Indebtedness in
exchange or replacement for, such security or Indebtedness in whole or in part.
“Refinanced” and “Refinancing” shall have correlative meanings.

          “Refinancing Indebtedness” means any Refinancing by the Company or any Restricted
Subsidiary of the Company of Indebtedness incurred in accordance with Section 4.9 (other than
pursuant to clauses (2), (4), (5), (6), (7), (8) , (9), (10), (12), (13), (14), (16) or (17) of the
definition of “Permitted Indebtedness”), in each case that does not:

     (1) result in an increase in the aggregate principal amount of Indebtedness of such
Person as of the date of such proposed Refinancing above the sum of (i) the aggregate
principal amount of such Indebtedness, plus (ii) the accrued interest on and amount of any
premium required to be paid under the terms of the instrument governing such Indebtedness,
plus (iii) the amount of reasonable expenses incurred by the Company in connection with such
Refinancing; or

     (2) create Indebtedness with: (a) a Weighted Average Life to Maturity that is less
than the Weighted Average Life to Maturity of the Indebtedness being Refinanced; or (b) a
final maturity earlier than the final maturity of the Indebtedness being Refinanced;

provided that (x) if such Indebtedness being Refinanced is Indebtedness solely of the Company (and
is not otherwise guaranteed by a Restricted Subsidiary of the Company), then such Refinancing
Indebtedness shall be Indebtedness solely of the Company and (y) if such Indebtedness being
Refinanced is subordinate or junior to the Notes or any Guarantee, then such Refinancing
Indebtedness shall be subordinate to the Notes or such Guarantee, as the case may be, at least to
the same extent and in the same manner as the Indebtedness being Refinanced.

          “Registration Rights Agreement” means the registration rights agreement dated as of
the Issue Date among the Company and the Initial Purchasers.

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          “Regulation S” means Regulation S as promulgated under the Securities Act.

          “Responsible Officer” means, when used with respect to the Trustee, any officer of the
Trustee assigned by the Trustee to administer this Indenture and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

          “Restricted Subsidiary” of any Person means any Subsidiary of such Person which at the
time of determination is not an Unrestricted Subsidiary.

          “Rule 144A” means Rule 144A promulgated under the Securities Act.

          “S&P” means Standard & Poor’s Ratings Group or any successor to the rating agency
business thereof.

          “Sale and Leaseback Transaction” means any direct or indirect arrangement with any
Person or to which any such Person is a party, providing for the leasing to the Company or a
Restricted Subsidiary of any property, whether owned by the Company or any Restricted Subsidiary at
the Issue Date or later acquired, which has been or is to be sold or transferred by the Company or
such Restricted Subsidiary to such Person or to any other Person from whom funds have been or are
to be advanced by such Person on the security of such Property.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Series A
Notes” means the Company’s 67/8% Senior Notes due 2015 issued under this
Indenture and not registered under the Securities Act, whether issued on the Issue Date or
thereafter, including any Additional Notes, if applicable.

          “Series B Notes” means notes issued by the Company hereunder containing terms
identical to the Series A Notes (except that (i) interest and Additional Interest (if any) thereon
shall accrue from the last date on which interest was paid on the Series A Notes or, if no such
interest has been paid, from the date of original issuance, (ii) the legend or legends relating to
transferability and other related matters set forth on the Series A Notes, including the text
referred to in footnote 2 of Exhibit A, shall be removed or appropriately altered, and
(iii) as otherwise set forth herein), to be offered to Holders of Series A Notes in exchange for
such Series A Notes pursuant to the Exchange Offer or any exchange offer specified in any
registration rights agreement relating to Additional Notes or in a registered public offering of
Additional Notes.

          “Significant Subsidiary”, with respect to any Person, means any Restricted Subsidiary
of such Person that satisfies the criteria for a “significant subsidiary” set forth in Rule 1.02(w)
of Regulation S-X under the Exchange Act.

          “Special Purpose Vehicle” means a bankruptcy-remote entity or trust or other special
purpose entity that is formed by the Company, any Subsidiary of the Company or any other Person for
the purpose of, and engages in no material business other than in connection with a Qualified
Securitization Transaction or other similar transactions of Receivables or other similar or related
assets.

          “Stated Maturity” means, with respect to any installment of interest or principal on
any series of Indebtedness, the date on which the payment of interest or principal was scheduled to
be paid in the original documentation governing such Indebtedness, and will not include any
contingent obligations to repay, redeem or repurchase any such interest or principal prior to the
date originally scheduled for the payment thereof.

          “Subordinated Indebtedness” means Indebtedness of the Company or any Guarantor that is
subordinated or junior in right of payment to the Notes or the Guarantee of such Guarantor, as the
case may be.

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          “Subsidiary”, with respect to any Person, means:

     (1) any corporation of which the outstanding Capital Stock having at least a majority
of the votes entitled to be cast in the election of directors under ordinary circumstances
shall at the time be owned, directly or indirectly, by such Person; or

     (2) any other Person of which at least a majority of the voting interest under ordinary
circumstances is at the time, directly or indirectly, owned by such Person.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect
on the date on which this Indenture is qualified under the TIA; provided that in the event the
Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any
such amendment, the Trust Indenture Act of 1939 as so amended.

          “Transfer Restricted Security” means a Note that is a restricted security as defined
in Rule 144(a)(3) under the Securities Act.

          “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the yield to maturity of the Comparable Treasury Issue, compounded semi-annually, assuming a
price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for such Redemption Date.

          “Trustee” means the party named as such above until a successor replaces it in
accordance with the applicable provisions of this Indenture, and thereafter means the successor
serving hereunder.

          “Unrestricted Subsidiary” of any Person means:

     (1) any Subsidiary of such Person that at the time of determination shall be or
continue to be designated an Unrestricted Subsidiary by the Board of Directors of such
Person in the manner provided below; and

     (2) any Subsidiary of an Unrestricted Subsidiary.

          The Board of Directors may designate any Subsidiary (including any newly acquired or newly
formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock
of, or owns or holds any Lien on any property of, the Company or any other Subsidiary of the
Company that is not a Subsidiary of the Subsidiary to be so designated; provided that:

     (1) the Company certifies to the Trustee that such designation complies with Section
4.7; and

     (2) each Subsidiary to be so designated and each of its Subsidiaries has not at the
time of designation, and does not thereafter, create, incur, issue, assume, guarantee or
otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to
which the lender has recourse to any of the assets of the Company or any of its Restricted
Subsidiaries.

          For purposes of making the determination of whether any such designation of a Subsidiary as an
Unrestricted Subsidiary complies with Section 4.7, the portion of the fair market value of the net
assets of such Subsidiary of the Company at the time that such Subsidiary is designated as an
Unrestricted Subsidiary that is represented by the interest of the Company and its Restricted
Subsidiaries in such Subsidiary, in each case as determined in good faith by the Board of Directors
of the Company, shall be deemed to be an Investment. Such designation will be permitted only if
such Investment would be permitted at such time under Section 4.7.

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          The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary
only if:

     (1) immediately after giving effect to such designation, the Company is able to incur
at least $1.00 of additional Indebtedness (other than Permitted Indebtedness) in compliance
with Section 4.9(a); and

     (2) immediately before and immediately after giving effect to such designation, no
Default or Event of Default shall have occurred and be continuing.

          Any such designation by the Board of Directors shall be evidenced to the Trustee by promptly
filing with the Trustee a copy of the Board Resolution giving effect to such designation and an
Officers’ Certificate certifying that such designation complied with the foregoing provisions.

          “U.S. Government Securities” shall mean securities which are (i) direct obligations of
the United States of America for the payment of which its full faith and credit is pledged or (ii)
obligations of a person controlled or supervised by and acting as an agency or instrumentality of
the United States of America, the payment of which is unconditionally guaranteed as a full faith
and credit obligation by the United States of America, which, in either case, are not callable or
redeemable at the option of the issuer thereof, and shall also include a depository receipt issued
by a bank or trust company as custodian with respect to any such U.S. Government Securities or a
specific payment of interest on or principal of any such U.S. Government Securities held by such
custodian for the account of the holder of a depository receipt.

          “U.S. Person” means any U.S. Person as defined in Regulation S.

          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing (a) the then outstanding aggregate principal amount
of such Indebtedness into (b) the sum of the total of the products obtained by multiplying (i) the
amount of each then remaining installment, sinking fund, serial maturity or other required payment
of principal, including payment at final maturity, in respect thereof, by (ii) the number of years
(calculated to the nearest one-twelfth) which will elapse between such date and the making of such
payment.

          “Wholly Owned Restricted Subsidiary” of any Person means any Wholly Owned Subsidiary
of such Person which at the time of determination is a Restricted Subsidiary of such Person.

          “Wholly Owned Subsidiary” of any Person means any Subsidiary of such Person of which
all the outstanding voting securities (other than in the case of a foreign Subsidiary, directors’
qualifying shares or an immaterial amount of shares required to be owned by other Persons pursuant
to applicable law) are owned by such Person or any Wholly Owned Subsidiary of such Person.

Section 1.2. Other Definitions.

	 	 	 	 
	Term	 	Defined in Section
	“Acceleration Notice”
	 	6.2	 
	“Act
	 	1.5	(a) 
	“Adjusted Net Assets”
	 	10.5	 
	“Affiliate Transaction”
	 	4.11	 
	“Agent Members”
	 	2.6	(b) 
	“Certificated Notes”
	 	2.1	 
	“Change of Control Offer”
	 	4.15	(a) 
	“Change of Control Offer Period”
	 	3.9	(b) 
	“Covenant Defeasance”
	 	8.3	 
	“Covenant Suspension Event”
	 	4.20	(a) 
	“Event of Default”
	 	6.1	 

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	Term	 	Defined in Section
	“Foreign Person”
	 	2.6	(c) 
	“Funding Guarantor”
	 	10.5	 
	“Global Notes”
	 	2.1	 
	“incur”
	 	4.9	(a) 
	“Institutional Accredited Investors”
	 	2.1	 
	“Legal Defeasance”
	 	8.2	 
	“Net Proceeds Offer”
	 	4.10	 
	“Net Proceeds Offer Payment Date”
	 	4.10	 
	“Net Proceeds Offer Trigger Date”
	 	4.10	 
	“Offshore Certificated Notes”
	 	2.1	 
	“Paying Agent”
	 	2.3	 
	“Permanent Regulation S Global Note”
	 	2.1	 
	“Private Placement Legend”
	 	2.6	(h) 
	“Reference Date”
	 	4.7	 
	“Registrar”
	 	2.3	 
	“Regulation S Global Note”
	 	2.1	 
	“Replacement Assets”
	 	4.10	(3)(b) 
	“Restricted Payment”
	 	4.7	(a) 
	“Reversion Date”
	 	4.20	(c) 
	“Rule 144A Global Note”
	 	2.1	 
	“Special Redemption”
	 	3.8	 
	“Suspended Covenants”
	 	4.20	(a) 
	“Suspension Date”
	 	4.20	(b) 
	“Suspension Period”
	 	4.20	(c) 
	“Surviving Entity”
	 	5.1	 
	“Temporary Regulation S Global Note”
	 	2.1	 
	“U.S. Certificated Notes”
	 	2.1	 

Section 1.3. Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

          The following TIA terms used in this Indenture have the following meanings:

          “indenture securities” means the Notes;

          “indenture security holder” means a Holder;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee;

          “obligor” on the Notes means the Company and any successor obligor upon the Notes.

          All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by Commission rule under the TIA have the meanings so assigned to
them.

Section 1.4. Rules of Construction.

          Unless the context otherwise requires:

     (a) a term has the meaning assigned to it;

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     (b) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (c) “or” is not exclusive;

     (d) words in the singular include the plural, and in the plural include the singular;
and

     (e) references to sections of or rules under the Securities Act, the Exchange Act and
the TIA shall be deemed to include substitute, replacement and successor sections or rules
adopted by the Commission from time to time unless otherwise specified.

Section 1.5. Acts of Holders.

          (a) 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 an agent
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 Holders
signing or bound by 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
(subject to Section 7.1) conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

          (b) 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 the certificate of any 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 or her the execution thereof. Where such
execution is by an officer of a corporation or a member of a partnership, on behalf of such
corporation or partnership, such certificate or affidavit shall also constitute sufficient proof of
his or her authority.

          (c) The ownership of Notes shall be proved by the register maintained by the Registrar.

          (d) 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 or suffered to be done by the Trustee, the Paying Agent, the Registrar or
the Company in reliance thereon, whether or not notation of such action is made upon such Note.

ARTICLE II.

THE NOTES

Section 2.1. Form and Dating.

          The Series A Notes and the Trustee’s certificate of authentication shall be substantially in
the form of Exhibit A. The Notes may have notations, legends or endorsements required by
law, stock exchange rule or usage in addition to those set forth in Exhibit A. The Series
B Notes shall be substantially in the form of Exhibit B. The notation on each Note
relating to the Guarantees, if any, shall be substantially in the form set forth in Exhibit
C. Each Note shall be dated the date of its authentication. The Notes shall be in
denominations of $2,000 and integral multiples of $1,000 in excess thereof.

          The terms and provisions contained in the Notes and Guarantees shall constitute, and are
hereby expressly made, a part of this Indenture, and the Company, the Guarantors, if any, and the
Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby.

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          Notes offered and sold in reliance on Rule 144A shall be issued initially in the form of a
single permanent global Note in registered form, substantially in the form set forth in Exhibit
A (the “Rule 144A Global Note”), deposited with the Note Custodian for the Depositary,
duly executed by the Company and authenticated by the Trustee as hereinafter provided. The
aggregate principal amount of the Rule 144A Global Note may from time to time be increased or
decreased by adjustments made on the records of the Note Custodian for the Depositary or its
nominee, as hereinafter provided.

          Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of a single temporary global Note in registered form substantially in the
form set forth in Exhibit A (the “Temporary Regulation S Global Note”), deposited
with the Note Custodian for the Depositary, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. At any time following 40 days after the later of the consummation
of the offering of the Notes and the Issue Date, upon receipt by the Trustee and the Company of a
duly executed certificate substantially in the form of Exhibit C(1), a single permanent
Global Note in registered form substantially in the form set forth in Exhibit A (the
“Permanent Regulation S Global Note,” and together with the Temporary Regulation S Global
Note, the “Regulation S Global Note”) duly executed by the Company and authenticated by the
Trustee as hereinafter provided shall be deposited with the Note Custodian for the Depositary. The
aggregate principal amount of the Regulation S Global Note may from time to time be increased or
decreased by adjustments made in the records of the Note Custodian for the Depositary or its
nominee, as hereinafter provided.

          Notes offered and sold to institutional accredited investors (as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act) (“Institutional Accredited Investors”), if any,
shall be issued in the form of permanent U.S. Certificated Notes in registered form in
substantially the form set forth in Exhibit A (the “U.S. Certificated Notes”).
Notes issued pursuant to Section 2.6 in exchange for interests in the Rule 144A Global Note or the
Regulation S Global Note shall be in the form of permanent Certificated Notes in registered form
substantially in the form set forth in Exhibit A (the “Offshore Certificated
Notes”), in the case of those issued in exchange for the Regulation S Global Note, and U.S.
Certificated Notes, in the case of those issued in exchange for the Rule 144A Global Note.

          The Offshore Certificated Notes and U.S. Certificated Notes are sometimes collectively herein
referred to as the “Certificated Notes.” The Rule 144A Global Note and the Regulation S
Global Note are sometimes referred to herein as the “Global Notes.”

Section 2.2. Execution and Authentication.

          An Officer of the Company shall sign the Notes for the Company by manual or facsimile
signature and the Notes shall be attested to by another Officer of the Company. The seal of the
Company shall be reproduced on the Notes and may be in facsimile form.

          If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note shall nevertheless be valid. Each Guarantor, if any, shall execute a
Guarantee in the manner set forth in Section 10.7.

          A Note shall not be valid until authenticated by the signature of the Trustee. The signature
shall be conclusive evidence that the Note has been authenticated under this Indenture.

          The Trustee, upon a written order of the Company signed by two Officers of the Company,
together with the other documents required by Sections 12.4 and 12.5, shall authenticate (i) Series
A Notes for original issue on the Issue Date in the aggregate principal amount not to exceed $150.0
million and (ii) subsequent to the Issue Date and subject to Section 4.9, Additional Notes. The
Trustee, upon written order of the Company signed by two Officers of the Company, together with the
other documents required by Sections 12.4 and 12.5, shall authenticate Series B Notes; provided
that such Series B Notes shall be issuable only upon the valid surrender for cancellation of Series
A Notes of a like aggregate principal amount in accordance with the Exchange Offer or an exchange
offer specified in any registration rights agreement relating to Additional Notes or in connection
with one or more registered public offerings of Additional Notes. Such written order of the
Company shall specify the amount of Notes to be authenticated and the date on which the original
issue of Notes is to be authenticated. Any Additional Notes shall be part of the same issue as the
Notes being issued on the Issue Date and will vote on all matters as one

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class with the Notes being issued on the Issue Date, including, without limitation, waivers,
amendments, redemptions, Change of Control Offers and Net Proceeds Offers.

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. 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 such agent.
An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate
of the Company.

Section 2.3. Registrar and Paying Agent.

          The Company shall maintain an office or agency where Notes may be presented for registration
of transfer or for exchange (“Registrar”) and an office or agency where Notes may be
presented for payment (“Paying Agent”). The Registrar shall keep a register of the Notes
and of their transfer and exchange. At the option of the Company, payment of interest and
Additional Interest (if any) may be made by check mailed to the Holders at their addresses set
forth in the register of Holders, provided that payment by wire transfer of immediately available
funds will be required with respect to principal, Redemption Price and Purchase Price of, and
interest and Additional Interest (if any) on, all Global Notes and all other Notes the Holders of
which shall have provided wire transfer instructions to the Trustee or the Paying Agent. The
Company may appoint one or more co-registrars and one or more additional paying agents. The term
“Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying
agent. The Company may change any Paying Agent or Registrar without notice to any Holder. The
Company shall notify the Trustee in writing of the name and address of any Paying Agent not a party
to this Indenture. If the Company fails to appoint or maintain another entity as Registrar or
Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may act as
Paying Agent or Registrar. The Depositary shall, by acceptance of a Global Note, agree that
transfers of beneficial interests in such Global Note may be effected only through a book-entry
system maintained by the Depositary (or its agent), and that ownership of a beneficial interest in
the Note shall be required to be reflected in a book entry.

          The Company initially appoints Deutsche Bank Trust Company Americas to act as the Registrar
and Paying Agent and to act as Note Custodian with respect to the Global Notes.

          The Paying Agent is hereby authorized to enter into a letter of representations with the
Depositary in the form provided by the Company and to act in accordance with such letter.

Section 2.4. Paying Agents to Hold Money in Trust.

          The Company shall require each Paying Agent other than DBTCA or the Trustee to agree in
writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all
money held by the Paying Agent for the payment of principal of, premium, if any, interest and
Additional Interest (if any) on the Notes, and will notify the Trustee of any default by the
Company in making any such payment. While any such default continues, the Trustee may require a
Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a
Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the
Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the
money. If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Upon any
bankruptcy or reorganization proceedings relating to the Company, the Trustee shall serve as Paying
Agent for the Notes.

Section 2.5. Holder Lists.

          The Registrar shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee or DBTCA is not the Registrar, the Company shall furnish to the Trustee
at least five 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 the Holders of Notes, and the Company shall
otherwise comply with TIA § 312(a).

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Section 2.6. Transfer and Exchange.

          (a) Transfer and Exchange Generally; Book Entry Provisions. Upon surrender for
registration of transfer of any Note to the Registrar, and satisfaction of the requirements for
such transfer set forth in this Section 2.6, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Notes of any authorized denominations and of a like aggregate principal amount and bearing such
restrictive legends as may be required by this Indenture.

          Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 4.2. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes
which the Holder making the exchange is entitled to receive.

          All Notes presented or surrendered for registration of transfer or exchange shall be duly
endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory
to the Company and the Registrar duly executed, by the Holder thereof or his attorney duly
authorized in writing. Except as otherwise provided in this Indenture, and in addition to the
requirements set forth in the legend referred to in Section 2.6(h)(i) below, in connection with any
transfer of Transfer Restricted Securities any request for transfer shall be accompanied by a
certification to the Trustee relating to the manner of such transfer substantially in the form of
Exhibit D(2).

          (b) Book-Entry Provisions for the Global Notes. The Rule 144A Global Note and
Regulation S Global Note initially shall (i) be registered in the name of the Depositary or the
nominee of such Depositary, (ii) be delivered to the Note Custodian and (iii) bear legends as set
forth in Section 2.6(h).

          Members of, or participants in, the Depositary (“Agent Members”) shall have no rights
under this Indenture with respect to any Rule 144A Global Note or Regulation S Global Note, as the
case may be, held on their behalf by the Depositary, or the Note Custodian, or under the Rule 144A
Global Note or Regulation S Global Note, as the case may be, and the Depositary may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the
Rule 144A Global Note or Regulation S Global Note, as the case may be, for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary and its Agent
Members, the operation of customary practices governing the exercise of the rights of a holder of
any Note.

          Transfers of the Rule 144A Global Note and the Regulation S Global Note shall be limited to
transfers of such Rule 144A Global Note or Regulation S Global Note in whole, but not in part, to
the Depositary, its successors or their respective nominees. Beneficial interests in the Rule 144A
Global Note and the Regulation S Global Note may be transferred in accordance with the applicable
rules and procedures of the Depositary and the provisions of this Section 2.6. The registration of
transfer and exchange of beneficial interests in a Global Note, which does not involve the issuance
of a Certificated Note, shall be effected through the Depositary, in accordance with this Indenture
(including the restrictions on transfer set forth herein) and the procedures of the Depositary
therefor. The Trustee shall have no responsibility or liability for any act or omission of the
Depositary.

          At any time at the request of the beneficial holder of an interest in the Rule 144A Global
Note or Permanent Regulation S Global Note to obtain a Certificated Note, such beneficial holder
shall be entitled to obtain a Certificated Note upon written request to the Trustee and the Note
Custodian in accordance with the standing instructions and procedures existing between the Note
Custodian and Depositary for the issuance thereof. Upon receipt of any such request, the Trustee,
or the Note Custodian at the direction of the Trustee, will cause, in accordance with the standing
instructions and procedures existing between the Depositary and the Note Custodian, the aggregate
principal amount of the Rule 144A Global Note or Permanent Regulation S Global Note, as
appropriate, to be reduced by the principal amount of the Certificated Note issued upon such
request to such beneficial holder and, following such reduction, the Company will execute and the
Trustee will authenticate and deliver to such beneficial holder (or its nominee) a Certificated
Note or Certificated Notes in the appropriate aggregate principal amount

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in the name of such beneficial holder (or its nominee) and bearing such restrictive legends as
may be required by this Indenture.

          (c) Transfers to Non-QIB Institutional Accredited Investors. The following provisions
shall apply with respect to the registration of any proposed transfer of a Transfer Restricted
Security to any Institutional Accredited Investor that is not a QIB (other than any Person that is
not a U.S. Person as defined under Regulation S, a “Foreign Person”):

     (i) the Registrar shall register the transfer of any Note, whether or not such Note
bears the Private Placement Legend, if (x) the proposed transferee has certified in writing
to the Registrar that the requested transfer is at least two years after the later of (A)
the Issue Date of the Notes and (B) the last date on which any Notes were acquired from an
Affiliate of the Company and has delivered legal opinions and such other information as the
Trustee and the Company may reasonably require, or (y) the proposed transferee has delivered
to the Registrar (A) a certificate substantially in the form of Exhibit E and (B)
such certifications, legal opinions and other information as the Trustee and the Company may
reasonably request to confirm that such transaction is in compliance with the Securities
Act; and

     (ii) if the proposed transferor is an Agent Member holding a beneficial interest in the
Global Note, upon receipt by the Registrar of (x) the documents required by clause (i), and
(y) instructions given in accordance with the Depositary’s and the Registrar’s procedures,
the Registrar shall reflect on its books and records the date and a decrease in the
principal amount of the Global Note in an amount equal to the principal amount of the
beneficial interest in the Global Note to be transferred, and the Company shall execute, and
the Trustee shall authenticate and deliver, one or more Certificated Notes of like tenor and
amount.

          (d) Transfers to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a Transfer Restricted Security to a QIB (other than
Foreign Persons):

     (i) if the Note to be transferred consists of Certificated Notes or an interest in the
Regulation S Global Note, the Registrar shall register the transfer if such transfer is
being made by a proposed transferor who has checked the box provided for on a certificate
substantially in the form of Exhibit D(2) stating, or has otherwise advised the
Company and the Registrar in writing, that the sale has been made in compliance with the
provisions of Rule 144A to a transferee who is a QIB within the meaning of Rule 144A and is
aware that the sale to it is being made in reliance on Rule 144A; and

     (ii) if the proposed transferee is an Agent Member, and the Note to be transferred
consists of Certificated Notes or an interest in the Regulation S Global Note, upon receipt
by the Registrar of (x) the documents referred to in clause (i), and (y) instructions given
in accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and an increase in the principal amount of the
Rule 144A Global Note in an amount equal to the principal amount of the Certificated Notes
or the interest in the Regulation S Global Note, as the case may be, to be transferred, and
the Trustee shall cancel the Certificated Notes or decrease the amount of the Regulation S
Global Note so transferred.

          (e) Transfers of Interests in the Temporary Regulation S Global Note. The following
provisions shall apply with respect to the registration of any proposed transfer of interests in
the Temporary Regulation S Global Note:

     (i) the Registrar shall register the transfer of an interest in the Temporary
Regulation S Global Certificate if (x) the proposed transferor has delivered to the
Registrar a certificate substantially in the form of Exhibit F and the transferee
shall have delivered a certificate substantially in the form of Exhibit D(1)
stating, among other things, that the proposed transferee is a Foreign Person or (y) the
proposed transferee is a QIB and the proposed transferor has checked the box provided for on
a certificate substantially in the form of Exhibit D(2) stating, or has otherwise
advised the Company and the Registrar in writing, that the sale has been made in compliance
with the provisions of Rule 144A to a transferee who is a

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QIB within the meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A; and

     (ii) if the proposed transferee is an Agent Member, upon receipt by the Registrar of
(x) the documents referred to in clause (i), and (y) instructions given in accordance with
the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its books
and records the date and an increase in the principal amount of the Rule 144A Global Note in
an amount equal to the principal amount of the Temporary Regulation S Global Note to be
transferred, and the Note Custodian, shall decrease the amount of the Temporary Regulation S
Global Note.

          (f) Transfers to Foreign Persons. The following provisions shall apply with respect
to any transfer of a Transfer Restricted Security to a Foreign Person:

     (i) the Registrar shall register any proposed transfer of a Note to a Foreign Person
upon receipt of a certificate substantially in the form of Exhibit F from the
proposed transferor and such certifications, legal opinions and other information as the
Trustee or the Company may reasonably request; and

     (ii) (a) if the proposed transferor is an Agent Member holding a beneficial interest in
the Rule 144A Global Note or the Note to be transferred consists of Certificated Notes, upon
receipt by the Registrar of (x) the documents required by clause (i), and (y) instructions
given in accordance with the Depositary’s and the Registrar’s procedures, the Registrar
shall reflect on its books and records the date and a decrease in the principal amount of
the Rule 144A Global Note in an amount equal to the principal amount of the beneficial
interest in the Rule 144A Global Note or cancel the Certificated Notes, as the case may be,
to be transferred, and (b) if the proposed transferee is an Agent Member, upon receipt by
the Registrar of instructions given in accordance with the Depositary’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and an increase in
the principal amount of the Regulation S Global Note in an amount equal to the principal
amount of the Certificated Notes to be transferred, and the Trustee shall decrease the
amount of the Rule 144A Global Note.

          (g) The Depositary. The Depositary shall be a clearing agency registered under the
Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary
with respect to the Global Notes. Initially, the Rule 144A Global Note and the Regulation S Global
Note shall be issued to the Depositary, registered in the name of Cede & Co., as the nominee of the
Depositary, and deposited with the Note Custodian for Cede & Co.

          Notes in Certificated form issued in exchange for all or a part of a Global Note pursuant to
this Section 2.6 shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such
Certificated Notes in Certificated form to the persons in whose names such Notes in Certificated
form are so registered.

          Certificated Notes shall be transferred to all beneficial owners in exchange for their
beneficial interests in the Rule 144A Global Note or the Permanent Regulation S Global Note, as the
case may be, if at any time:

     (i) the Depositary for the Notes notifies the Company that the Depositary is unwilling
or unable to continue as Depositary for the Rule 144A Global Note or the Permanent
Regulation S Global Note, as the case may be, and a successor Depositary is not appointed by
the Company within 90 days after delivery of such notice; or

     (ii) the Company, at its sole discretion, notifies the Trustee in writing that it
elects to cause the issuance of Certificated Notes under this Indenture,

and the Company shall execute, and the Trustee shall, upon receipt of an authentication order in
accordance with Section 2.2, authenticate and deliver Certificated Notes in an aggregate principal
amount equal to the principal

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amount of the Rule 144A Global Note or the Permanent Regulation S Global Note, as the case may be,
in exchange for such Global Notes.

          (h) Legends.

          (i) Except as permitted by the following paragraphs (ii) and (iii), each Note certificate
evidencing Global Notes and Certificated Notes (and all Notes issued in exchange therefor or
substitution thereof) shall (x) be subject to the restrictions on transfer set forth in this
Section 2.6 (including those set forth in the legend below) unless such restrictions on transfer
shall be waived by written consent of the Company, and the holder of each Transfer Restricted
Security, by such Holder’s acceptance thereof, agrees to be bound by all such restrictions on
transfer and (y) bear the legend set forth below (the “Private Placement Legend”):

“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN
THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT
IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN
ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT) (AN “ACCREDITED INVESTOR”), (2) AGREES THAT IT WILL NOT WITHIN TWO
YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE RESELL OR OTHERWISE TRANSFER THIS
NOTE EXCEPT (A) TO MOBILE MINI INC. OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED
STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR
TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER)
TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN
BE OBTAINED FROM THE TRUSTEE FOR THIS NOTE), (D) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT (IF
AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO MOBILE MINI INC. IF MOBILE MINI INC. SO
REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH
ANY TRANSFER OF THIS NOTE WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE,
IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO THE TRUSTEE AND MOBILE MINI INC. SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM
THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANS-

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ACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED
HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE
MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.”

          (ii) Upon any sale or transfer of a Transfer Restricted Security (including any Transfer
Restricted Security represented by a Global Note) pursuant to Rule 144 under the Securities Act or
pursuant to an effective registration statement under the Securities Act:

     (a) in the case of any Transfer Restricted Security that is a Certificated Note, the
Registrar shall permit the Holder thereof to exchange such Transfer Restricted Security for
a Certificated Note that does not bear the legend set forth in (i) above and rescind any
restriction on the transfer of such Transfer Restricted Security; and

     (b) in the case of any Transfer Restricted Security represented by a Global Note, such
Transfer Restricted Security shall not be required to bear the legend set forth in (i)
above, but shall continue to be subject to the provisions of Section 2.6(b); provided,
however, that with respect to any request for an exchange of a Transfer Restricted Security
that is represented by a Global Note for a Certificated Note that does not bear the legend
set forth in (i) above, which request is made in reliance upon Rule 144, the Holder thereof
shall certify in writing to the Registrar that such request is being made pursuant to Rule
144 (such certifications to be substantially in the form of Exhibit D(2));

in each case, upon the delivery by the transferor of such opinions and other information as the
Trustee or the Company shall reasonably request.

          (iii) Notwithstanding the foregoing, upon consummation of the Exchange Offer, the Company
shall issue and, upon receipt of an authentication order in accordance with Section 2.2, the
Trustee shall authenticate Series B Notes in exchange for Series A Notes accepted for exchange in
the Exchange Offer, which Series B Notes shall not bear the legend set forth in (i) above, and the
Registrar shall rescind any restriction on the transfer of such Series A Notes, in each case unless
the Company has notified the Registrar in writing that the Holder of such Series A Notes is either
(A) a broker-dealer, (B) a Person participating in the distribution of the Series A Notes or (C) a
Person who is an affiliate (as defined in Rule 144A) of the Company.

          (iv) Each Global Note, whether or not a Transfer Restricted Security, shall also bear the
following legend on the face thereof:

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A
DEPOSITARY OR A SUCCESSOR DEPOSITARY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO 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

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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.

          (v) Any Global Note may be endorsed with or have incorporated in the text thereof such
legends or recitals or changes not inconsistent with the provisions of this Indenture as may be
required by the Note Custodian, the Depositary or by the National Association of Securities
Dealers, Inc. in order for the Notes to be tradable on the PORTAL Market or tradable on Euroclear
or Clearstream or as may be required for the Notes to be tradable on any other market developed for
trading of securities pursuant to Rule 144A or Regulation S under the Securities Act or required to
comply with any applicable law or any regulation thereunder or with the rules and regulations of
any securities exchange or automated quotation system upon which the Notes may be listed or traded
or to conform with any usage with respect thereto, or to indicate any special limitations or
restrictions to which any particular Notes are subject.

          (i) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial
interests in Global Notes have been exchanged for Certificated Notes, redeemed, repurchased or
cancelled, all Global Notes shall be returned to or retained and cancelled by the Trustee in
accordance with Section 2.11. At any time prior to such cancellation, if any beneficial interest
in a Global Note is exchanged for Certificated Notes, redeemed, repurchased or cancelled, the
principal amount of Notes represented by such Global Notes shall be reduced accordingly and an
endorsement shall be made on such Global Note by the Trustee or the Note Custodian, at the
direction of the Trustee, to reflect such reduction. In the event of any transfer of any
beneficial interest between the Rule 144A Global Note and the Regulation S Global Note in
accordance with the standing procedures and instructions between the Depositary and the Note
Custodian and the transfer restrictions set forth herein, the aggregate principal amount of each of
the Rule 144A Global Note and the Regulation S Global Note shall be appropriately increased or
decreased, as the case may be, and an endorsement shall be made on each of the Rule 144A Global
Note and the Regulation S Global Note by the Trustee or the Note Custodian, at the direction of the
Trustee, to reflect such reduction or increase.

          (j) General Provisions Relating to Transfers and Exchanges.

          (i) To permit registrations of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate Certificated Notes and Global Notes at the Registrar’s request.

          (ii) No service charge shall be made to a Holder for any registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchange or transfer pursuant to Section 2.6).

          (iii) The Registrar shall not be required to register the transfer of or exchange any Note
selected for redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part.

          (iv) All Certificated Notes and Global Notes issued upon any registration of transfer or
exchange of Certificated Notes or Global Notes shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this Indenture, as the
Certificated Notes or Global Notes surrendered upon such registration of transfer or exchange.

          (v) The Company shall not be required:

     (a) to issue, to register the transfer of or to exchange Notes during a period
beginning at the opening of business 15 days before the day of any selection of Notes for
redemption under Section 3.2 and ending at the close of business on the day of selection; or

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     (b) to register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in part; or

     (c) to register the transfer of or to exchange a Note between a record date and the
next succeeding interest payment date.

          (vi) Prior to due presentment of the registration of a transfer of any Note, the Trustee, any
Agent and the Company may deem and treat the Person in whose name any Note is registered as the
absolute owner of such Note for the purpose of all payments with respect to such Notes, and neither
the Trustee, any Agent nor the Company shall be affected by notice to the contrary.

          (vii) The Trustee shall authenticate Certificated Notes and Global Notes in accordance with
the provisions of Section 2.2.

Section 2.7. Replacement Notes.

          If any mutilated Note is surrendered to the Trustee or either the Company or the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any Note, the Company
shall issue and the Trustee, upon receipt of an authentication order in accordance with Section
2.2, shall authenticate a replacement Note if the Trustee’s requirements for replacement of Notes
are met. If required by the Trustee or the Company, an indemnity bond must be supplied by the
Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company,
the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a
Note is replaced. The Trustee and the Company may charge the Holder for their expenses in
replacing a Note.

          Every replacement Note is an additional obligation of the Company and shall be entitled to all
of the benefits of this Indenture equally and proportionately with all other Notes duly issued
hereunder.

Section 2.8. Outstanding Notes.

          The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee or the Note Custodian in accordance with the provisions hereof,
and those described in this Section as not outstanding. Except as set forth in Section 2.9, a Note
does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note.

          If a Note is replaced pursuant to Section 2.7, it shall cease to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser
for value.

          If the principal amount of any Note is considered paid under Section 4.1, it ceases to be
outstanding and interest on it ceases to accrue.

          If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a Redemption Date or maturity date, money sufficient to pay Notes payable on that date,
then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease
to accrue interest.

Section 2.9. Treasury Notes.

          In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company or by any Affiliate thereof shall be
considered as though not outstanding, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver of consent, only Notes that a
Responsible Officer of the Trustee knows are so owned shall be so disregarded. The Company agrees
to notify the Trustee of the existence of any such treasury Notes or Notes owned by the Company or
an Affiliate thereof.

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Section 2.10. Temporary Notes.

          Until Certificated Notes are ready for delivery, the Company may prepare and the Trustee, upon
receipt of an authentication order in accordance with Section 2.2, shall authenticate temporary
Notes. Temporary Notes shall be substantially in the form of Certificated Notes, but may have such
variations as the Company considers appropriate for temporary Notes and as shall be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate Certificated Notes in exchange for temporary Notes.

          Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

Section 2.11. Cancellation.

          The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else shall cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and shall destroy all
canceled Notes in accordance with the Trustee’s usual procedures. The Trustee shall maintain a
record of the destruction of all canceled Notes. Certification of the destruction of all canceled
Notes shall be delivered to the Company. The Company may not issue new Notes to replace Notes that
have been paid or that have been delivered to the Trustee for cancellation.

Section 2.12. Defaulted Interest.

          If the Company defaults in a payment of interest on the Notes, the Company shall pay the
defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the
defaulted interest, to the Persons who are Holders on a subsequent special record date, in each
case at the rate provided in the Notes and in Section 4.1. The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and the date of the
proposed payment. The Company shall fix or cause to be fixed each such special record date and
payment date, provided that no such special record date shall be less than 10 days prior to the
related payment date for such defaulted interest. At least 15 days before the special record date,
the Company (or, upon the written request of the Company, the Trustee in the name and at the
expense of the Company) shall mail or cause to be mailed to Holders a notice that states the
special record date, the related payment date and the amount of such interest to be paid.

Section 2.13. Persons Deemed Owners.

          Prior to due presentment of a Note for registration of transfer and subject to Section 2.12,
the Company, the Trustee, any Paying Agent, any co-registrar and any Registrar may deem and treat
the person in whose name any Note shall be registered upon the register of Notes kept by the
Registrar as the absolute owner of such Note (whether or not such Note shall be overdue and
notwithstanding any notation of the ownership or other writing thereon made by anyone other than
the Company, any co-registrar or any Registrar) for the purpose of receiving all payments with
respect to such Note and for all other purposes, and none of the Company, the Trustee, any Paying
Agent, any co-registrar or any Registrar shall be affected by any notice to the contrary.

Section 2.14. CUSIP Numbers.

          The Company in issuing the Notes may use a “CUSIP” number, and if so, the Trustee shall use
the CUSIP number in notices of redemption or exchange as a convenience to Holders; provided that
any such notice may state that no representation is made as to the correctness or accuracy of the
CUSIP number printed in the notice or on the Notes, and that reliance may be placed only on the
other identification numbers printed on the Notes. The Company shall notify the Trustee of any
change to the CUSIP numbers.

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Section 2.15. Designation.

          The Indebtedness evidenced by the Notes is hereby irrevocably designated as “senior
indebtedness” or such other term denoting seniority for the purposes of any future Indebtedness of
the Company which the Company makes subordinate to any senior indebtedness or such other term
denoting seniority.

ARTICLE III.

REDEMPTION AND REPURCHASE

Section 3.1. Notices to Trustee.

          If the Company elects to redeem Notes pursuant to the provisions of Section 3.7 or 3.8, it
shall furnish to the Registrar, at least 30 days but not more than 60 days before the Redemption
Date, an Officers’ Certificate setting forth the Section of this Indenture pursuant to which the
redemption shall occur, the Redemption Date, the principal amount of Notes to be redeemed and the
Redemption Price.

          If the Company is required to offer to repurchase Notes pursuant to the provisions of Section
4.10 or 4.15, it shall notify the Registrar in writing, at least 30 days but not more than 60 days
before the Purchase Date, of the Section of this Indenture pursuant to which the repurchase shall
occur, the Purchase Date, the principal amount of Notes required to be repurchased and the Purchase
Price and shall furnish to the Registrar an Officers’ Certificate to the effect that (a) the
Company is required to make or has made a Net Proceeds Offer or a Change of Control Offer, as the
case may be, and (b) the conditions set forth in Section 4.10 or 4.15, as the case may be, have
been satisfied.

          If the Registrar is not the Trustee, the Company shall, concurrently with each notice of
redemption or repurchase, cause the Registrar to deliver to the Trustee a certificate (upon which
the Trustee may rely) setting forth the principal amounts of Notes held by each Holder.

Section 3.2. Selection of Notes.

          Except as set forth below, if less than all of the Notes are to be redeemed, the Registrar
shall select the Notes or portions thereof to be redeemed in compliance with the requirements of
the national securities exchange, if any, on which the Notes are listed or, if the Notes are not
then listed on a national securities exchange, on a pro rata basis, by lot or by such method as the
Registrar shall deem fair and appropriate. In the event of partial redemption by lot, the
particular Notes or portions thereof to be redeemed shall be selected, unless otherwise provided
herein, not less than 30 nor more than 60 days prior to the Redemption Date by the Registrar from
the outstanding Notes not previously called for redemption.

          If less than all of the Notes tendered are to be repurchased pursuant to the provisions of
Section 4.10, the Registrar shall select the Notes or portions thereof to be repurchased in
compliance with Section 4.10, as applicable. In the event of partial repurchase by lot, the
particular Notes or portions thereof to be repurchased shall be selected at the close of business
of the last Business Day prior to the Purchase Date. If less than all of the Notes tendered are to
be redeemed pursuant to the provisions of Section 3.7 or 3.8, the Registrar shall select the Notes
only pro rata or on as nearly a pro rata basis as is practicable (subject to DTC procedures) or by
such other method as may be required by law.

          The Registrar shall promptly notify the Company in writing of the Notes or portions thereof
selected for redemption or repurchase and, in the case of any Note selected for partial redemption
or repurchase, the principal amount thereof to be redeemed or repurchased. Notes and portions
thereof selected shall be in amounts of $1,000 or integral multiples of $1,000; except that if all
of the Notes of a Holder are to be redeemed, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, shall be redeemed. No Notes of a principal amount of
$1,000 or less shall be redeemed in part.

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Section 3.3. Notice of Optional or Special Redemption.

          In the event Notes are to be redeemed pursuant to Section 3.7 or 3.8, at least 30 days but not
more than 60 days before the Redemption Date, the Company shall mail by first-class mail a notice
of redemption to each Holder at its registered address whose Notes are to be redeemed in whole or
in part, with a copy to the Trustee.

          The notice shall identify the Notes or portions thereof to be redeemed and shall state:

     (a) the Redemption Date;

     (b) the Redemption Price;

     (c) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date, upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion will be issued;

     (d) the name and address of the Paying Agent;

     (e) that Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price, Additional Interest, if any, and, unless the Redemption Date is after
a record date and/or before the succeeding interest payment date, accrued interest thereon
to the Redemption Date;

     (f) that, unless the Company defaults in making the redemption payment, interest and
any Additional Interest on Notes called for redemption will cease to accrue on and after the
Redemption Date, and the only remaining right of the Holders of such Notes is to receive
payment of the Redemption Price, any Additional Interest and, unless the Redemption Date is
after a record date and/or before the succeeding interest payment date, accrued interest
thereon to the Redemption Date upon surrender to the Paying Agent of the Notes redeemed;

     (g) if fewer than all the Notes are to be redeemed, the identification of the
particular Notes (or portions thereof) to be redeemed, as well as the aggregate principal
amount of the Notes to be redeemed and the aggregate principal amount of Notes to be
outstanding after such partial redemption; and

     (h) the section of the Notes pursuant to which the Notes called for redemption are
being redeemed.

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided that the Company shall deliver to the Trustee, at least 35 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 3.4. Effect of Notice of Redemption.

          Once notice of redemption is mailed, Notes or portions thereof called for redemption become
due and payable on the Redemption Date at the Redemption Price. Upon surrender to any Paying
Agent, such Notes or portions thereof shall be paid at the Redemption Price, plus Additional
Interest, if any, and accrued interest to the Redemption Date; provided, however, that installments
of interest which are due and 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 for
the payment of such installment of interest.

Section 3.5. Deposit of Redemption Price or Purchase Price.

          On or before 10:00 A.M. New York City time on each Redemption Date or Purchase Date, the
Company shall irrevocably deposit with the Paying Agent money sufficient to pay the aggregate
amount due on all Notes to be redeemed or repurchased on that date, including without limitation
any accrued and unpaid interest and

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Additional Interest, if any, to the Redemption Date or Purchase Date. The Company, the
Trustee or the Paying Agent shall promptly return to the Company any money not required for that
purpose.

          Unless the Company defaults in making such payment, interest and Additional Interest, if any,
on the Notes to be redeemed or repurchased will cease to accrue on the applicable Redemption Date
or Purchase Date, whether or not such Notes are presented for payment. If any Note called for
redemption shall not be so paid upon surrender because of the failure of the Company to comply with
the preceding paragraph, interest will be paid on the unpaid principal, from the applicable
Redemption Date or Purchase Date until such principal is paid, and on any interest not paid on such
unpaid principal, in each case at the rate provided in the Notes and in Section 4.1.

Section 3.6. Notes Redeemed or Repurchased in Part.

          Upon surrender of a Note that is redeemed or repurchased in part, the Company shall issue and
the Trustee shall authenticate for the Holder at the expense of the Company a new Note equal in
principal amount to portion of the Note surrendered that is not to be redeemed or repurchased.

Section 3.7. Optional Redemption.

          The Company may redeem the Notes at any time at its option, in whole or in part, upon not less
than 30 nor more than 60 days’ notice. To redeem the Notes prior to May 1, 2011, the Company must
pay a redemption price equal to the greater of:

     (a) 100% of the principal amount of the Notes to be redeemed; and

     (b) the sum of the present values of (1) the redemption price of the Notes at May 1,
2011 (as set forth below) and (2) the remaining scheduled payments of interest from the
Redemption Date to May 1, 2011, but excluding accrued and unpaid interest, if any, to the
Redemption Date, discounted to the Redemption Date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months), at the Treasury Rate (determined on the
second business day immediately preceding the Redemption Date) plus 50 basis points,

plus, in either case, accrued and unpaid interest, if any, to the Redemption Date (subject to the
right of holders of record on the relevant record date to receive interest due on the relevant
interest payment date).

          Any notice to Holders of such a redemption will include the appropriate calculation of the
redemption price, but need not include the redemption price itself. The actual redemption price,
calculated as described above, will be set forth in an Officers’ Certificate delivered to the
Trustee no later than two business days prior to the Redemption Date (unless clause (b) of the
definition of “Comparable Treasury Price” is applicable, in which case such Officers’ Certificate
shall be delivered on the Redemption Date).

          Beginning on May 1, 2011, the Company may redeem the Notes at its option, in whole or in part,
upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed
as percentages of the principal amount thereof) if redeemed during the twelve-month period
commencing on May 1 of the year set forth below:

	 	 	 	 	 
	Year	 	Percentage
	2011
	 	 	103.438	%
	2012
	 	 	101.719	%
	2013 and thereafter
	 	 	100.000	%

          In addition, the Company must pay accrued and unpaid interest on the Notes redeemed.

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Section 3.8. Optional Redemption upon Equity Offerings.

          At any time or from time to time, in the event the Company completes one or more Equity
Offerings on or before May 1, 2010, the Company may, at its option, use the net cash proceeds from
any such Equity Offerings to redeem up to 35% of the principal amount of the Notes (a “Special
Redemption”) at a Redemption Price of 106.875% of the principal amount thereof, together with
accrued and unpaid interest thereon, if any, to the Redemption Date, provided that (1) at least 65%
of the principal amount of the Notes issued hereunder remains outstanding immediately after each
such Special Redemption; and (2) such Special Redemption shall occur not more than 90 days after
the date of the closing of the applicable Equity Offering. Any redemption pursuant to this Section
3.8 shall be made pursuant to the provisions of Sections 3.1 through 3.6.

Section 3.9. Repurchase upon Change of Control Offer.

          (a) In the event that, pursuant to Section 4.15, the Company shall be required to commence a
Change of Control Offer, it shall follow the procedures specified in this Section 3.9.

          (b) The Change of Control Offer shall remain open for a period from the date of the mailing of
the notice of the Change of Control Offer described in paragraph (c) until a date determined by the
Company which is at least 30 but no more than 60 days from the date of mailing of such notice and
no longer, except to the extent that a longer period is required by applicable law (the “Change
of Control Offer Period”). On the Purchase Date, which shall be no earlier than 30 days prior
to the last day of the Change of Control Offer Period and no later than such last day, the Company
shall purchase the principal amount of Notes properly tendered in response to the Change of Control
Offer. Payment for any Notes so purchased shall be made in the same manner as interest payments
are made.

          (c) Within 30 days following any Change of Control, the Company shall send, by first class
mail, a notice to the Trustee and each of the Holders. The notice shall contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the Change of Control
Offer. The Change of Control Offer shall be made to all Holders. The notice, which shall govern
the terms of the Change of Control Offer, shall state:

     (1) the transaction or transactions that constitute the Change of Control, providing
information, to the extent publicly available, regarding the Person or Persons acquiring
control, and stating that the Change of Control Offer is being made pursuant to this Section
3.9 and Section 4.15 and that, to the extent lawful, all Notes properly tendered will be
accepted for payment;

     (2) the Purchase Price, the last day of the Change of Control Offer Period, and the
Purchase Date;

     (3) that any Note not properly tendered or otherwise not accepted for repurchase will
continue to accrue interest and Additional Interest, if any;

     (4) that, unless the Company defaults in the payment of the amount due on the Purchase
Date, all Notes or portions thereof accepted for repurchase pursuant to the Change of
Control Offer shall cease to accrue interest and Additional Interest, if any, after the
Purchase Date;

     (5) that Holders electing to have any Notes purchased pursuant to the Change of Control
Offer will be required to tender the Notes, with the form entitled Option of Holder to Elect
Purchase on the reverse of the Notes completed, or transfer by book-entry transfer, to the
Company, a Depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice not later than the third Business Day preceding the Purchase Date;

     (6) that Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Change of Control Offer Period, a telegram, facsimile transmission or letter setting
forth the name of the Holder, the principal

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amount of Notes delivered for repurchase, and a statement that such Holder is
withdrawing his election to have the Notes redeemed in whole or in part; and

     (7) that Holders whose Notes are being repurchased only in part will be issued new
Notes equal in principal amount to the portion of the Notes tendered (or transferred by
book-entry transfer) that is not to be repurchased, which portion must be equal to $1,000 in
principal amount or an integral multiple thereof.

          (d) On or before 10:00 A.M. New York City time on the Purchase Date, the Company shall to the
extent lawful, (i) accept for payment all Notes or portions thereof properly tendered pursuant to
the Change of Control Offer, (ii) deposit with the Paying Agent an amount equal to the Purchase
Price, together with accrued and unpaid interest and Additional Interest, if any, thereon to the
Purchase Date in respect of all Notes or portions thereof so tendered and accepted for repurchase
and (iii) deliver or cause to be delivered to the Trustee the Notes so accepted together with an
Officers’ Certificate stating the aggregate principal amount of Notes or portions thereof being
repurchased by the Company. The Paying Agent shall promptly (but in any case not later than five
days after the Purchase Date) mail to each Holder of Notes so repurchased the amount due in
connection with such Notes, and the Company shall promptly issue a new Note, and the Trustee, upon
written request from the Company in the form of an Officers’ Certificate shall authenticate and
mail or deliver (or cause to transfer by book entry) to each relevant Holder a new Note, in a
principal amount equal to any unpurchased portion of the Notes surrendered to the Holder thereof;
provided that each such new Note shall be in a principal amount of $l,000 or an integral multiple
thereof. The Company shall publicly announce the results of the Change of Control Offer on or as
soon as practicable after the Purchase Date.

          (e) If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Additional Interest, if any, in each
case to the Purchase Date, shall be paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional interest shall be payable to Holders
pursuant to the Change of Control Offer.

Section 3.10. Repurchase upon Application of Net Proceeds.

          (a) In the event that, pursuant to Section 4.10, the Company shall be required to commence a
Net Proceeds Offer, it shall follow the procedures specified in this Section 3.10.

          (b) The notice of a Net Proceeds Offer shall contain all instructions and materials necessary
to enable such Holders to tender Notes pursuant to the Net Proceeds Offer. Each Net Proceeds Offer
will be mailed to all record Holders as shown on the register of Holders within 30 days following
the Net Proceeds Offer Trigger Date, with a copy to the Trustee, and shall comply with the
procedures set forth in this Indenture. Upon receiving notice of the Net Proceeds Offer, Holders
may elect to tender their Notes in whole or in part in a principal amount of $2,000 (or integral
multiples of $1,000 in excess thereof) in exchange for cash. A Net Proceeds Offer shall remain
open for a period of 20 Business Days or such longer period as may be required by law. Upon the
expiration of that period, the Company shall promptly (but in any event within three Business Days
following such expiration) purchase the Notes and any such other pari passu Indebtedness properly
tendered in accordance with this Section 3.10 and Section 4.10. The notice, which shall govern the
terms of the Net Proceeds Offer, shall state:

     (1) that the Net Proceeds Offer is being made pursuant to this Section 3.10 and Section
4.10;

     (2) the Net Proceeds Offer Amount, the Purchase Price and the Purchase Date;

     (3) that any Note not properly tendered or otherwise not accepted for repurchase shall
continue to accrue interest and Additional Interest, if any;

     (4) that, unless the Company defaults in the payment of the amount due on the Purchase
Date, all Notes or portions thereof accepted for repurchase pursuant to the Net Proceeds
Offer shall cease to accrue interest and Additional Interest, if any, after the Purchase
Date;

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     (5) that Holders electing to have any Notes repurchased pursuant to any Net Proceeds
Offer shall be required to tender the Notes, with the form entitled Option of Holder to
Elect Purchase on the reverse of the Notes completed, or transfer by book-entry transfer, to
the Company, a Depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice prior to the close of business on the third Business Day preceding
the Purchase Date;

     (6) that Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than the Purchase
Date, a telegram, facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Notes delivered for repurchase and a statement that such Holder is
withdrawing his election to have such Notes repurchased in whole or in part; and

     (7) that, to the extent Holders properly tender Notes (along with any other pari passu
Indebtedness of the Company properly tendered) in an amount exceeding the Net Proceeds Offer
Amount, the tendered Notes will be purchased pro rata based on the aggregate amounts of
Notes and other pari passu Indebtedness of the Company properly tendered (and the Trustee
shall select the tendered Notes of tendering Holders pro rata based on the amount of Notes
and other pari passu Indebtedness of the Company properly tendered).

          (c) On or before 10:00 A.M. New York City time on the Purchase Date, the Company shall to the
extent lawful, (i) accept for payment, pro rata in accordance with this Indenture to the extent
necessary, the Net Proceeds Offer Amount of Notes or portions thereof properly tendered pursuant to
the Net Proceeds Offer (along with any other pari passu Indebtedness of the Company properly
tendered), or if less than the Net Proceeds Offer Amount has been tendered, all Notes properly
tendered, (ii) deposit with the Paying Agent an amount equal to the Purchase Price, plus
accrued and unpaid interest and Additional Interest, if any, thereon to the Purchase Date in
respect of all Notes or portions thereof so tendered and accepted for repurchase and (iii) deliver
or cause to be delivered to the Trustee the Notes so accepted together with an Officers’
Certificate stating the aggregate principal amount of Notes or portions thereof being repurchased
by the Company. The Paying Agent shall promptly (but in any case not later than five days after
the Purchase Date) mail to each Holder of Notes so repurchased the amount due in connection with
such Notes, and the Company shall promptly issue a new Note, and the Trustee, upon written request
from the Company in the form of an Officers’ Certificate shall authenticate and mail or deliver
such new Note to such Holder, in a principal amount equal to any unpurchased portion to the Holder
thereof; provided that each such new Note shall be in a principal amount of $1,000 or an integral
multiple thereof. The Company shall publicly announce the results of the Net Proceeds Offer on or
as soon as practicable after the Purchase Date.

          (d) If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Additional Interest, if any, in each
case to the Purchase Date, shall be paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional interest shall be payable to Holders to
the Net Proceeds Offer.

ARTICLE IV.

COVENANTS

Section 4.1. Payment of Principal and Interest.

          (a) The Company shall pay or cause to be paid the principal, Redemption Price and Purchase
Price of, and interest and Additional Interest (if any) on, the Notes on the dates, in the amounts
and in the manner provided herein and in the Notes. Principal, Redemption Price, Purchase Price
and interest shall be considered paid on the date due if the Paying Agent, if other than the
Company, holds as of 10:00 A.M. New York City time on the due date money deposited by the Company
in immediately available funds and designated for and sufficient to pay the aggregate amount then
due. The Company shall pay all Additional Interest, if any, on the dates, in the amounts and in
the manner set forth in the Registration Rights Agreement.

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          (b) The Company shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue principal, Redemption Price and Purchase Price at the rate equal to
2% per annum in excess of the then applicable interest rate on the Notes to the extent lawful; it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest and Additional Interest (without regard to any applicable grace
period) at the same rate to the extent lawful.

Section 4.2. Maintenance of Office or Agency.

          (a) The Company shall maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served. The Company shall give prompt written
notice to the Trustee of the location, and any change in the location, of 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 Office of the Trustee.

          (b) The Company may also from time to time designate one or more other offices or agencies
where the Notes may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligations to maintain an office or agency in the Borough of
Manhattan, the City of New York, for such purposes. The Company shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

          (c) The Company hereby designates the Corporate Trust Office of the Trustee as one such office
or agency of the Company in accordance with Section 2.3. The Trustee may resign such agency at any
time by giving written notice to the Company no later than 30 days prior to the effective date of
such resignation.

Section 4.3. Reports.

          (a) Whether or not required by the rules and regulations of the Commission, so long as any
Notes are outstanding, the Company will furnish the Trustee, on behalf of the Holders of the Notes:

     (1) all quarterly and annual financial information that would be required to be
contained in a filing with the Commission on Forms 10-Q and 10-K if the Company were
required to file such Forms, including a “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” that describes the financial condition and results of
operations of the Company and its consolidated Subsidiaries (showing in reasonable detail,
either on the face of the financial statements or in the footnotes thereto and in
“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the
financial condition and results of operations of the Company and its Restricted Subsidiaries
separate from the financial condition and results of operations of the Unrestricted
Subsidiaries of the Company, if any) and, with respect to the annual information only, a
report thereon by the Company’s certified independent accountants; and

     (2) all current reports that would be required to be filed with the Commission on Form
8-K if the Company were required to file such reports,

in each case within the time periods specified in the Commission’s rules and regulations. The
Company shall at all times comply with TIA § 314(a).

          (b) In addition, following the consummation of the exchange offer contemplated by the
Registration Rights Agreement, whether or not required by the rules and regulations of the
Commission, the Company will file a copy of all such information and reports with the Commission
for public availability within the time periods specified in the Commission’s rules and regulations
(unless the Commission will not accept such a filing) and make such information available to
securities analysts and prospective investors upon request. In addition, the Company has agreed
that, for so long as any Notes remain outstanding, it will furnish to

the Holders and to securi-

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ties analysts and prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

Section 4.4. Compliance Certificate.

          (a) The Company and each Guarantor shall deliver to the Trustee, within 105 days after the end
of each fiscal year, an Officers’ Certificate stating that a review of the activities of the
Company and its Subsidiaries during the preceding fiscal year has been made under the supervision
of the signing Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture and further stating, as to each such
Officer signing such certificate, that to the best of his or her knowledge, after due inquiry, the
Company has kept, observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in Default in the performance or observance of any of the terms, provisions
and conditions of this Indenture (and, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default) of which he or she may have knowledge, and that
to the best of his or her knowledge, after due inquiry, no event has occurred and remains in
existence by reason of which payments on account of the principal of or interest, if any, on the
Notes are prohibited or if such event has occurred, a description of the event.

          (b) The Company shall, so long as any of the Notes are outstanding, deliver to the Trustee,
promptly upon any Officer of the Company obtaining knowledge of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and describing its status with
reasonable particularity and what action the Company is taking or proposes to take with respect
thereto.

Section 4.5. Taxes.

          The Company shall pay or discharge, and shall cause each of its Subsidiaries to pay or
discharge, prior to delinquency, all material taxes, assessments and governmental levies except
such as are contested in good faith and by appropriate proceedings or where the failure to effect
such payment is not adverse in any material respect to the Holders of the Notes.

Section 4.6. Stay, Extension and Usury Laws.

          The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants
that it shall not, by resort to any such law, 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 such law has not been enacted.

Section 4.7. Limitation on Restricted Payments.

          (a) The Company will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly (each of the actions set forth in clauses (1), (2), (3) and (4) below being
referred to as a “Restricted Payment”):

     (1) declare or pay any dividend or make any distribution (other than dividends or
distributions payable in Qualified Capital Stock of the Company) on or in respect of shares
of the Company’s Capital Stock to holders of such Capital Stock;

     (2) purchase, redeem or otherwise acquire or retire for value any Capital Stock of the
Company or any warrants, rights or options to purchase or acquire shares of any class of
such Capital Stock (other than any such Capital Stock or warrants, rights or options owned
by the Company or any Restricted Subsidiary of the Company);

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     (3) make any principal payment on, purchase, defease, redeem, prepay, decrease or
otherwise acquire or retire for value, prior to any scheduled final maturity, scheduled
repayment or scheduled sinking fund payment, any Subordinated Indebtedness; or

     (4) make any Investment (other than Permitted Investments);

if at the time of such Restricted Payment or immediately after giving effect thereto,

     (i) a Default or an Event of Default shall have occurred and be continuing; or

     (ii) the Company is not able to incur at least $1.00 of additional Indebtedness (other
than Permitted Indebtedness) in compliance with Section 4.9(a); or

     (iii) the aggregate amount of Restricted Payments (including such proposed Restricted
Payment) made subsequent to the Issue Date (the amount expended for such purposes, if other
than in cash, being the fair market value of such property as determined in good faith by
the Board of Directors of the Company) shall exceed the sum of:

     (w) 50% of the cumulative Consolidated Net Income (or if cumulative
Consolidated Net Income shall be a loss, minus 100% of such loss) of the Company
from April 1, 2003 to the date the Restricted Payment occurs (the “Reference
Date”) (treating such period as a single accounting period); plus

     (x) 100% of the aggregate net cash proceeds received by the Company from any
Person (other than a Subsidiary of the Company) from the issuance and sale
subsequent to July 1, 2003 and on or prior to the Reference Date of (1) Qualified
Capital Stock of the Company, (2) warrants, options or other rights to acquire
Qualified Capital Stock of the Company (but excluding any debt security that is
convertible into, or exchangeable for, Qualified Capital Stock) or (3) convertible
or exchangeable Disqualified Capital Stock or debt securities that have been
converted or exchanged in accordance with their terms for Qualified Capital Stock;
plus

     (y) without duplication of any amounts included in clause (iii)(x) above, 100%
of the aggregate net cash proceeds of any equity contribution received by the
Company from a holder of the Company’s Capital Stock subsequent to July 1, 2003 and
on or prior to the Reference Date (excluding, in the case of clauses (iii)(x) and
(y), any net cash proceeds from an Equity Offering to the extent used to redeem the
Notes in compliance with the provisions set forth under Section 3.8); plus

     (z) without duplication, the sum of:

     (1) the aggregate amount returned in cash on or with respect to
Investments (other than Permitted Investments) made subsequent to July 1,
2003 whether through interest payments, principal payments, dividends or
other distributions or payments;

     (2) the net cash proceeds received by the Company or any of its
Restricted Subsidiaries from the disposition of all or any portion of such
Investments (other than to a Restricted Subsidiary of the Company); and

     (3) upon redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary, the fair market value of such Subsidiary;

provided, however, that the sum of clauses (1), (2) and (3) above shall not
exceed the aggregate amount of all such Investments made subsequent to the
Issue Date.

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          (b) Notwithstanding the foregoing, the provisions of paragraph (a) of this Section 4.7, the
provisions of this Section 4.7 do not prohibit:

     (1) the payment of any dividend within 60 days after the date of declaration of such
dividend if the dividend would have been permitted on the date of declaration;

     (2) the redemption, repurchase, retirement, defeasance or other acquisition of any
shares of Capital Stock of the Company, either (i) solely in exchange for shares of
Qualified Capital Stock of the Company or (ii) through the application of net proceeds of a
substantially concurrent sale for cash (other than to a Restricted Subsidiary of the
Company) of shares of Qualified Capital Stock of the Company;

     (3) the redemption, repurchase, retirement, defeasance or other acquisition of any
Subordinated Indebtedness either (i) solely in exchange for shares of Qualified Capital
Stock of the Company, or (ii) through the application of net proceeds of a substantially
concurrent sale for cash (other than to a Restricted Subsidiary of the Company) of (a)
shares of Qualified Capital Stock of the Company or (b) Refinancing Indebtedness;

     (4) so long as no Default or Event of Default shall have occurred and be continuing
redemption, repurchase, retirement, defeasance or other acquisition by the Company of Common
Stock of the Company from officers, directors and employees of the Company or any of its
Subsidiaries or their authorized representatives upon the death, disability or termination
of employment of such employees or termination of their seat on the board of the Company, in
an aggregate amount not to exceed $1.5 million in any calendar year with any unused amounts
in such calendar year being carried forward to the next succeeding calendar year; provided
that the aggregate amount of repurchases that may be made pursuant to this clause (4) shall
not exceed $3.0 million in any calendar year;

     (5) so long as no Default or Event of Default shall have occurred and be continuing,
Restricted Payments in an aggregate amount not to exceed $25.0 million;

     (6) repurchases of Qualified Capital Stock deemed to occur upon the exercise of stock
options, warrants or other convertible or exchangeable securities; and

     (7) repurchases of Qualified Capital Stock constituting fractional shares in an
aggregate amount not to exceed $100,000.

          If the Company makes a Restricted Payment which, at the time of the making of such Restricted
Payment, in the good faith determination of the Board of Directors of the Company, would be
permitted under the requirements of this Indenture, such Restricted Payment shall be deemed to have
been made in compliance with this Indenture notwithstanding any subsequent adjustment made in good
faith to the Company’s financial statements affecting Consolidated Net Income.

          In determining the aggregate amount of Restricted Payments made subsequent to the Issue Date
in accordance with clause (iii) of Section 4.7(a), amounts expended pursuant to clauses (1),
(2)(ii), 3(ii)(a) and (4) shall be included in such calculation.

Section 4.8. Limitation of Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries.

          The Company will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create or otherwise cause or permit to exist or become effective any
encumbrance or restriction on the ability of any Restricted Subsidiary of the Company to:

     (1) pay dividends or make any other distributions on or in respect of its Capital
Stock;

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     (2) make loans or advances to the Company or any other Restricted Subsidiary or to pay
any Indebtedness or other obligation owed to the Company or any other Restricted Subsidiary
of the Company; or

     (3) transfer any of its property or assets to the Company or any other Restricted
Subsidiary of the Company,

except in each case for such encumbrances or restrictions existing under or by reason of:

     (a) applicable law, rule, regulation or order;

     (b) this Indenture, the Notes and the Guarantees;

     (c) the Credit Agreement;

     (d) customary non-assignment provisions of any contract or any lease governing a
leasehold interest of any Restricted Subsidiary of the Company;

     (e) any instrument governing Acquired Indebtedness, which encumbrance or restriction is
not applicable to any Person, or the properties or assets of any Person, other than the
Person or the properties or assets of the Person so acquired;

     (f) agreements existing on the Issue Date to the extent and in the manner such
agreements are in effect on the Issue Date;

     (g) any encumbrance or restriction on the transfer of assets subject to any Lien
permitted under this Indenture imposed by the holder of such Lien;

     (h) restrictions imposed by any agreement to sell assets or Capital Stock permitted
under this Indenture to any Person pending the closing of such sale;

     (i) Purchase Money Indebtedness for property acquired in the ordinary course of
business that only impose restrictions on the property so acquired;

     (j) any agreement pursuant to which Indebtedness was issued if (A) the encumbrance or
restriction applies only in the event of a payment default or a default with respect to a
financial covenant contained in such Indebtedness, (B) the encumbrance or restriction is not
materially more disadvantageous to the Holders than is customary in comparable financings
(as determined by the Company) and (C) the Company determines that any such encumbrance or
restriction will not materially affect the Company’s ability to make principal or interest
payments on the Notes;

     (k) Indebtedness permitted to be incurred subsequent to the date of this Indenture
pursuant to Section 4.9; provided that such encumbrances or restrictions are no less
favorable to the Company, taken as a whole, in any material respect than the encumbrances or
restrictions contained in the Credit Agreement as in effect on the Issue Date;

     (l) any Qualified Securitization Transaction; provided that such encumbrances and
restrictions are customarily required by the institutional sponsor or arranger at the time
of entering into such Qualified Securitization Transaction in similar types of documents
relating to the purchase of similar Receivables in connection with the financing therewith;

     (m) customary provisions in joint venture agreements and other similar agreements (in
each case relating solely to the respective joint venture or similar entity or the equity
interests therein) entered into in the ordinary course of business; and

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     (n) an agreement governing Indebtedness incurred to Refinance the Indebtedness issued,
assumed or incurred pursuant to an agreement referred to in clauses (b) and (d) through (k)
above; provided, however, that the provisions relating to such encumbrance or restriction
contained in any such Indebtedness are no less favorable to the Company in any material
respect as determined by the Board of Directors of the Company in their reasonable and good
faith judgment than the provisions relating to such encumbrance or restriction contained in
agreements referred to in such clauses (b) and (d) through (k).

Section 4.9. Limitation on Incurrence of Additional Indebtedness.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, incur, assume, guarantee, acquire, become liable, contingently or otherwise,
with respect to, or otherwise become responsible for payment of (collectively, “incur”) any
Indebtedness (other than Permitted Indebtedness); provided, however, that if no Default or Event of
Default shall have occurred and be continuing at the time of or as a consequence of the incurrence
of any such Indebtedness, the Company or any of its Restricted Subsidiaries that is or, upon such
incurrence, becomes a Guarantor may incur Indebtedness (including, without limitation, Acquired
Indebtedness) and any Restricted Subsidiary of the Company that is not or will not, upon such
incurrence, become a Guarantor may incur Acquired Indebtedness, in each case if on the date of the
incurrence of such Indebtedness, after giving effect to the incurrence thereof, the Consolidated
Fixed Charge Coverage Ratio of the Company is greater than 2.0 to 1.0.

          (b) The Company will not, and will not permit any Guarantor to directly or indirectly, incur
any Indebtedness which by its terms (or by the terms of any agreement governing such Indebtedness)
is expressly subordinated in right of payment to any other Indebtedness of the Company or such
Guarantor, as the case may be, unless such Indebtedness is also by its terms (or by the terms of
any agreement governing such Indebtedness) made expressly subordinate to the Notes or the
applicable Guarantee, as the case may be, to the same extent and in the same manner as such
Indebtedness is subordinated to other Indebtedness of the Company or such Guarantor, as the case
may be.

Section 4.10. Limitation on Asset Sales.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

     (1) the Company or the applicable Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market value of the
assets sold or otherwise disposed of (as determined in good faith by the Company’s Board of
Directors);

     (2) at least 75% of the consideration received by the Company or the Restricted
Subsidiary, as the case may be, from such Asset Sale shall be in the form of cash, Cash
Equivalents and/or Replacement Assets (as defined below) (or a combination thereof) and is
received at the time of such disposition; provided that

     (A) the amount of any liabilities (as shown on the Company’s or such Restricted
Subsidiary’s most recent balance sheet) of the Company or any such Restricted
Subsidiary (other than liabilities that are by their terms subordinated to the Notes
or any Guarantee of a Guarantor) that are assumed by the transferee of any such
assets; and

     (B) the fair market value of any securities or other assets received by the
Company or any such Restricted Subsidiary in exchange for any such assets that are
converted into cash within 180 days after such Asset Sale;

shall be deemed to be cash for purposes of this provision; and

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     (3) upon the consummation of an Asset Sale, the Company shall apply, or cause such
Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within 365
days of receipt thereof either:

     (a) to repay (i) any Obligations under the Credit Agreement and effect a
permanent reduction in the availability under such Credit Agreement and (ii) in the
case of an Asset Sale by a Restricted Subsidiary that is not a Guarantor,
Obligations of such Restricted Subsidiary;

     (b) to invest or commit to invest in properties and assets that replace the
properties and assets that were the subject of such Asset Sale or in properties and
assets (including Capital Stock) that will be used in the business of the Company
and its Restricted Subsidiaries as existing on the Issue Date or in businesses
reasonably related thereto (“Replacement Assets”);

     (c) to acquire or commit to acquire all or substantially all of the assets of,
or a majority of the voting Capital Stock of a Permitted Business; and/or

     (d) a combination of prepayment and investment permitted by the foregoing
clauses (3)(a) through (3)(c);

provided that in the case of a commitment to invest under clauses (b) and (c) above, such
investment or acquisition shall be consummated within six months after such commitment.

          (b) When the Net Cash Proceeds from Asset Sales not applied or invested as provided in the
preceding paragraph total $15.0 million or more (each, a “Net Proceeds Offer Trigger
Date”), the Company will, within 30 days, make an offer to purchase (the “Net Proceeds
Offer”) to all Holders and, to the extent required by the terms of any Pari Passu Debt, an
offer to purchase to all holders of such Pari Passu Debt, on a date (the “Net Proceeds Offer
Payment Date”) not less than 30 nor more than 60 days following the applicable Net Proceeds
Offer Trigger Date, from all Holders (and holders of any Pari Passu Debt) on a pro rata basis, that
amount of Notes (and Pari Passu Debt) equal to the Net Proceeds Offer Amount at a price equal to
100% of the principal amount of the Notes (and Pari Passu Debt) to be purchased, plus accrued and
unpaid interest thereon, if any, to the date of purchase; provided, however, that if at any time
any non-cash consideration received by the Company or any Restricted Subsidiary of the Company, as
the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed
of for cash (other than as contemplated by clause 2(b) above and other than interest received with
respect to any such non-cash consideration), then such conversion or disposition shall be deemed to
constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in accordance
with this covenant.

          (c) Notwithstanding the foregoing Sections 4.10(a) and (b), the Company and its Restricted
Subsidiaries will be permitted to consummate an Asset Sale without complying with such paragraph to
the extent that:

     (1) at least 75% of the consideration for such Asset Sale constitutes Replacement
Assets; and

     (2) such Asset Sale is for fair market value;

provided that any cash or Cash Equivalents received by the Company or any of its Restricted
Subsidiaries in connection with any Asset Sale permitted to be consummated under this paragraph
shall constitute Net Cash Proceeds subject to the provisions of the foregoing Sections 4.10(a) and
(b).

          (d) In the event of the transfer of substantially all (but not all) of the property and assets
of the Company and its Restricted Subsidiaries as an entirety to a Person in a transaction
permitted under Section 5.1, which transaction does not constitute a Change of Control, the
successor corporation shall be deemed to have sold the properties and assets of the Company and its
Restricted Subsidiaries not so transferred for purposes of this covenant, and shall comply with the
provisions of this covenant with respect to such deemed sale as if it were an Asset Sale. In
addition, the fair market value of such properties and assets of the Company or its Restricted
Subsidiaries deemed to be sold shall be deemed to be Net Cash Proceeds for purposes of this
covenant.

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          (e) Each Net Proceeds Offer will be mailed to the record Holders as shown on the register of
Holders within 30 days following the Net Proceeds Offer Trigger Date, with a copy to the Trustee,
and shall comply with the procedures set forth in this Indenture. Upon receiving notice of the Net
Proceeds Offer, Holders may elect to tender their Notes in whole or in part in a principal amount
of $2,000 and integral multiples of $1,000 in excess thereof in exchange for cash. To the extent
Holders properly tender Notes in an amount exceeding the Net Proceeds Offer Amount, Notes of
tendering Holders will be purchased on a pro rata basis (based on amounts tendered). A Net
Proceeds Offer shall remain open for a period of 20 business days or such longer period as may be
required by law. If any Net Cash Proceeds remain after the consummation of any Net Proceeds Offer,
the Company may use those Net Cash Proceeds for any purpose not otherwise prohibited by this
Indenture. Upon completion of each Net Proceeds Offer, the amount of Net Cash Proceeds will be
reset at zero.

          (f) The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes pursuant to a Net Proceeds Offer. To the
extent that the provisions of any securities laws or regulations conflict with this Section 4.10 or
Section 3.10, the Company shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations under this Section 4.10 or Section 3.10 by
virtue thereof.

Section 4.11. Limitations on Transactions with Affiliates.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, enter into or permit to exist any transaction or series of related transactions
(including, without limitation, the purchase, sale, lease or exchange of any property or the
rendering of any service) with, or for the benefit of, any of its Affiliates (each, an
“Affiliate Transaction”), other than (x) Affiliate Transactions permitted under paragraph
(c) of this Section and (y) Affiliate Transactions on terms that are no less favorable than those
that might reasonably have been obtained in a comparable transaction at such time on an
arm’s-length basis from a Person that is not an Affiliate of the Company or such Restricted
Subsidiary.

          (b) All Affiliate Transactions (and each series of related Affiliate Transactions which are
similar or part of a common plan) involving aggregate payments or other property with a fair market
value in excess of $5.0 million shall be approved by the Board of Directors of the Company or such
Restricted Subsidiary, as the case may be, such approval to be evidenced by a Board Resolution
stating that such Board of Directors has determined that such transaction complies with the
foregoing provisions. If the Company or any Restricted Subsidiary of the Company enters into an
Affiliate Transaction (or a series of related Affiliate Transactions related to a common plan) that
involves an aggregate fair market value of more than $20.0 million, the Company or such Restricted
Subsidiary, as the case may be, shall, prior to the consummation thereof, obtain a favorable
opinion as to the fairness of such transaction or series of related transactions to the Company or
the relevant Restricted Subsidiary, as the case may be, from a financial point of view, from an
Independent Financial Advisor and file the same with the Trustee.

          (c) The restrictions set forth in paragraphs (a) and (b) of this Section 4.11 shall not apply
to:

     (1) reasonable fees and compensation (including the payment of reasonable and customary
benefits (including retirement, health, option, deferred compensation and other benefits
plans) to officers and employees of the Company) paid to, and indemnity provided on behalf
of, officers, directors, employees or consultants of the Company or any Restricted
Subsidiary of the Company as determined in good faith by the Company’s Board of Directors or
senior management;

     (2) transactions exclusively between or among the Company and any of its Restricted
Subsidiaries or exclusively between or among such Restricted Subsidiaries, provided such
transactions are not otherwise prohibited by this Indenture;

     (3) any agreement as in effect as of the Issue Date or any amendment thereto or any
transaction contemplated thereby (including pursuant to any amendment thereto) in any
replacement agreement thereto so long as any such amendment or replacement agreement is not
more disadvantageous to the Holders in any material respect than the original agreement as
in effect on the Issue Date;

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     (4) Restricted Payments or Permitted Investments permitted by this Indenture;

     (5) any sale, conveyance or other transfer of Receivables and other related assets
customarily transferred in a Qualified Securitization Transaction; and

     (6) the issuance of Qualified Capital Stock of the Company otherwise permitted
hereunder.

Section 4.12. Limitation on Liens.

          The Company will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume or permit or suffer to exist any Liens of any kind
against or upon any property or assets of the Company or any of its Restricted Subsidiaries whether
owned on the Issue Date or acquired after the Issue Date, or any proceeds therefrom, or assign or
otherwise convey any right to receive income or profits therefrom unless:

     (1) in the case of Liens securing Subordinated Indebtedness, the Notes or the Guarantee
of such Guarantor, as the case may be, are secured by a Lien on such property, assets or
proceeds that is senior in priority to such Liens; and

     (2) in all other cases, the Notes or the Guarantee of such Guarantor, as the case may
be, are equally and ratably secured,

except for:

     (a) Liens existing as of the Issue Date to the extent and in the manner such Liens are
in effect on the Issue Date;

     (b) Liens securing Indebtedness and other Obligations under the Credit Agreement
incurred pursuant to clause (2) of the definition of “Permitted Indebtedness”;

     (c) Liens securing the Notes and the Guarantees;

     (d) Liens of the Company or a Wholly Owned Restricted Subsidiary of the Company on
assets of any Restricted Subsidiary of the Company;

     (e) Liens securing Refinancing Indebtedness which is incurred to Refinance any
Indebtedness which has been secured by a Lien permitted under this Indenture and which has
been incurred in accordance with the provisions of this Indenture; provided, however, that
such Liens: (i) are no less favorable to the Holders in any material respect and are not
more favorable to the lienholders in any material respect with respect to such Liens than
the Liens in respect of the Indebtedness being Refinanced; and (ii) do not extend to or
cover any property or assets of the Company or any of its Restricted Subsidiaries not
securing the Indebtedness so Refinanced; and

     (f) Permitted Liens.

Section 4.13. Continued Existence.

          Subject to Article V, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate or other existence and the corporate or
other existence of each Guarantor in accordance with the organizational documents (as the same may
be amended from time to time) of the Company or such Guarantor, except to the extent that the Board
of Directors of the Company determines in good faith that the preservation of such existence is no
longer necessary or desirable in the conduct of the business of the Company or such Guarantor,
taken as a whole, and that the loss thereof is not disadvantageous in any material respect to the
Holders.

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Section 4.14. Insurance Matters.

          The Company shall provide or cause to be provided for itself and each of its Subsidiaries
insurance (including appropriate self-insurance) against loss or damage of the kinds that, in the
reasonable, good faith opinion of the Company, are adequate and appropriate for the conduct of the
business of the Company and its Subsidiaries in a prudent manner, with reputable insurers or with
the government of the United States of America or an agency or instrumentality thereof, in such
amounts, with such deductibles, and by such methods as shall be customary, in the reasonable, good
faith opinion of the Company, for corporations similarly situated in the industry, unless, in the
good faith judgment of the Board of Directors of the Company, the failure to provide such insurance
(together with all other such failures) would not have a material adverse effect on the financial
condition or results of operations of the Company and its Subsidiaries, taken as a whole.

Section 4.15. Offer to Repurchase upon Change of Control.

          (a) Upon the occurrence of a Change of Control, each Holder will have the right to require
that the Company purchase all or a portion of such Holder’s Notes pursuant to the offer described
below (the “Change of Control Offer”), at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest and Additional Interest, if any, thereon to the
Purchase Date.

          (b) The Company will not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of
Control Offer made by the Company and purchases all Notes validly tendered and not withdrawn under
such Change of Control Offer.

          (c) The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes pursuant to a Change of Control Offer. To
the extent that the provisions of any securities laws or regulations conflict with this Section
4.15 or Section 3.9, the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this Section 4.15 or Section 3.9 by
virtue thereof.

Section 4.16. Additional Subsidiary Guarantees.

          If the Company or any of its Restricted Subsidiaries transfers or causes to be transferred, in
one transaction or a series of related transactions, any property to any Domestic Restricted
Subsidiary that is not a Guarantor, or if the Company or any of its Restricted Subsidiaries shall
organize, acquire or otherwise invest in another Domestic Restricted Subsidiary having total assets
with a book value in excess of $500,000, then such transferee or acquired or other Restricted
Subsidiary shall:

     (1) execute and deliver to the Trustee a supplemental indenture in form reasonably
satisfactory to the Trustee pursuant to which such Restricted Subsidiary shall
unconditionally guarantee all of the Company’s obligations under the Notes and this
Indenture on the terms set forth in this Indenture; and

     (2) deliver to the Trustee an opinion of counsel that such supplemental indenture has
been duly authorized, executed and delivered by such Restricted Subsidiary and constitutes a
legal, valid, binding and enforceable obligation of such Restricted Subsidiary.

     Thereafter, such Restricted Subsidiary shall be a Guarantor for all purposes of this Indenture.

Section 4.17. Payments for Consent.

          The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes
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

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consideration is offered to be paid and is paid to all Holders of the Notes that consent,
waive or agree to amend in the time frame set forth in the solicitation documents relating to such
consent, waiver or agreement.

Section 4.18. Limitation on Preferred Stock of Restricted Subsidiaries.

          The Company will not permit any of its Restricted Subsidiaries that are not Guarantors to
issue any Preferred Stock (other than to the Company or to a Wholly Owned Restricted Subsidiary of
the Company) or permit any Person (other than the Company or a Wholly Owned Restricted Subsidiary
of the Company) to own any Preferred Stock of any Restricted Subsidiary that is not a Guarantor.

Section 4.19. Conduct of Business.

          The Company and its Restricted Subsidiaries will not engage in any businesses other than a
Permitted Business, except to the extent as would not be material to the Company and its Restricted
Subsidiaries taken as a whole.

Section 4.20. Suspension of Covenants.

          (a) During any period of time that: (i) the Notes have Investment Grade Ratings from two
Rating Agencies and (ii) no Default or Event of Default has occurred and is continuing (the
occurrence of the events described in the foregoing clauses (i) and (ii) being collectively
referred to as a “Covenant Suspension Event”), the Company and its Restricted Subsidiaries
shall not be subject to the provisions of Sections 3.10, 4.7, 4.8, 4.9, 4.10, 4.11 and 5.1(a)(2)
(collectively, the “Suspended Covenants”).

          (b) Upon the occurrence of a Covenant Suspension Event, any Guarantees of the Subsidiary
Guarantors, if any, will also be suspended as of such date (the “Suspension Date”).

          (c) In the event that the Company and the Restricted Subsidiaries are not subject to the
Suspended Covenants for any period of time as a result of the foregoing, and on any subsequent date
(the “Reversion Date”) one or both of the Rating Agencies withdraws their Investment Grade
Rating or downgrades the rating assigned to the Notes below an Investment Grade Rating, then the
Company and its Restricted Subsidiaries will thereafter again be subject to the Suspended Covenants
with respect to future events and the Guarantees of the Subsidiary Guarantors will be reinstated if
such Guarantees are then required by the terms of this Indenture. The period of time between the
Suspension Date and the Reversion Date is referred to in this Indenture as the “Suspension
Period.”

          (d) Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of
Default will be deemed to have occurred as a result of a failure to comply with the Suspended
Covenants during the Suspension Period (or upon termination of the Suspension Period or after that
time based solely on events that occurred during the Suspension Period).

          (e) On the Reversion Date, all Indebtedness incurred during the Suspension Period will be
classified as having been incurred or issued pursuant to Section 4.9(a) (to the extent such
Indebtedness would be permitted to be incurred or issued thereunder as of the Reversion Date and
after giving effect to Indebtedness incurred or issued prior to the Suspension Period and
outstanding on the Reversion Date). To the extent such Indebtedness would not be so permitted to
be incurred or issued pursuant to Sections 4.9(a), such Indebtedness will be deemed to have been
outstanding on the Issue Date, so that it is initially classified as permitted under clause (3) of
the definition of “Permitted Indebtedness”. Calculations made after the Reversion Date of the
amount available to be made as Restricted Payments under Section 4.7 will be made as though Section
4.7 had been in effect since the Issue Date and throughout the Suspension Period. For the
avoidance of doubt, Restricted Payments made during the Suspension Period shall reduce the amount
available to be made as Restricted Payments under Section 4.7(b), but no Default or Event of
Default shall be deemed to have occurred on the Reversion Date as a result of any actions taken by
the Company or its Restricted Subsidiaries during the Suspension Period.

          (f) The Company shall deliver promptly to the Trustee an Officers’ Certificate notifying the
Trustee of any Covenant Suspension Event or Reversion Date, as the case may be, pursuant to this
Section.

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ARTICLE V.

SUCCESSORS

Section 5.1. Merger, Consolidation and Sale of Assets.

          (a) The Company will not, in a single transaction or series of related transactions,
consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise
dispose of (or cause or permit any Restricted Subsidiary of the Company to sell, assign, transfer,
lease, convey or otherwise dispose of) all or substantially all of the Company’s assets (determined
on a consolidated basis for the Company and the Company’s Restricted Subsidiaries) whether as an
entirety or substantially as an entirety to any Person unless:

          (1) either:

     (a) the Company shall be the surviving or continuing corporation; or

     (b) the Person (if other than the Company) formed by such consolidation or into
which the Company is merged or the Person which acquires by sale, assignment,
transfer, lease, conveyance or other disposition the properties and assets of the
Company and of the Company’s Restricted Subsidiaries substantially as an entirety
(the “Surviving Entity”):

     (x) shall be a corporation organized and validly existing under the
laws of the United States or any State thereof or the District of Columbia;
and

     (y) shall expressly assume, by supplemental indenture (in form and
substance reasonably satisfactory to the Trustee), executed and delivered to
the Trustee, the due and punctual payment of the principal of, and premium,
if any, and interest on all of the Notes and the performance of every
covenant of the Notes, this Indenture and the Registration Rights Agreement
on the part of the Company to be performed or observed;

     (2) immediately after giving effect to such transaction and the assumption contemplated
by clause (1)(b)(y) above (including giving effect to any Indebtedness and Acquired
Indebtedness incurred or anticipated to be incurred in connection with or in respect of such
transaction), either (x) the Company or such Surviving Entity, as the case may be, shall be
able to incur at least $1.00 of additional Indebtedness (other than Permitted Indebtedness)
pursuant to Section 4.9(a) or (y) the Consolidated Fixed Charge Coverage Ratio of the
Company would be no less than such ratio immediately prior to such transaction;

     (3) immediately before and immediately after giving effect to such transaction and the
assumption contemplated by clause (1)(b)(y) above (including, without limitation, giving
effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred
and any Lien granted in connection with or in respect of the transaction), no Default or
Event of Default shall have occurred or be continuing; and

     (4) the Company or the Surviving Entity shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, sale, assignment, transfer, lease, conveyance or other disposition and, if a
supplemental indenture is required in connection with such transaction, such supplemental
indenture comply with the applicable provisions of this Indenture and that all conditions
precedent in this Indenture relating to such transaction have been satisfied.

          For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of the properties or
assets of one or more Restricted Subsidiaries of the Company the Capital Stock of which constitutes
all or substantially all of the properties and assets of the Company, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the Company.

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          (b) Notwithstanding the foregoing clauses (1), (2) and (3) of Section 5.1(a), the Company may
merge with an Affiliate that is a Person that has no material assets or liabilities and which was
organized solely for the purpose of reorganizing the Company in another jurisdiction.

          (c) Each Guarantor (other than any Guarantor whose Guarantee is to be released in accordance
with the terms of the Guarantee and this Indenture in connection with any transaction complying
with Section 4.10) will not, and the Company will not cause or permit any Guarantor to, consolidate
with or merge with or into any Person other than the Company or any other Guarantor unless:

     (1) the entity formed by or surviving any such consolidation or merger (if other than
the Guarantor) or to which such sale, lease, conveyance or other disposition shall have been
made is a corporation or a partnership or a limited liability company, in each case,
organized and existing under the laws of the United States or any State thereof or the
District of Columbia;

     (2) such entity (if other than the Guarantor) assumes by supplemental indenture all of
the obligations of the Guarantor under its Guarantee, this Indenture and the Registration
Rights Agreement;

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

     (4) immediately after giving effect to such transaction and the use of any net proceeds
therefrom on a pro forma basis, the Company could satisfy the provisions of clause (2) of
Section 5.1(a).

          Any merger or consolidation of a Guarantor with and into the Company (with the Company being
the surviving entity) or another Guarantor that is a Restricted Subsidiary of the Company need only
comply with clause (4) of Section 5.1(a).

Section 5.2. Successor Corporation Substituted.

          Upon any consolidation, combination or merger or any transfer of all or substantially all of
the assets of the Company in accordance with Section 5.1 in which the Company is not the continuing
corporation, the successor Person formed by such consolidation or into which the Company is merged
or to which such conveyance, lease or transfer is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture, the Notes and the
Registration Rights Agreement with the same effect as if such Surviving Entity had been named as
such. When a successor corporation assumes all of the obligations of the predecessor hereunder and
under the Notes and the Security Documents and agrees in writing to be bound hereby and thereby,
the predecessor shall be released from such obligations.

ARTICLE VI.

DEFAULTS AND REMEDIES

Section 6.1. Events of Default.

          Each of the following constitutes an “Event of Default”:

     (a) the failure to pay interest on any Notes when the same becomes due and payable and
the default continues for a period of 30 days;

     (b) the failure to pay the principal on any Notes, when such principal becomes due and
payable, at maturity, upon redemption or otherwise (including the failure to make a payment
to purchase Notes tendered pursuant to a Change of Control Offer or a Net Proceeds Offer);

     (c) a default in the observance or performance of any other covenant or agreement
contained in this Indenture which default continues for a period of 60 days after the
Company receives written notice

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specifying the default (and demanding that such default be remedied) from the Trustee
or the Holders of at least 25% of the outstanding principal amount of the Notes (except in
the case of a default with respect to Section 5.1, which will constitute an Event of Default
with such notice requirement but without such passage of time requirement);

     (d) the failure to pay at final maturity (giving effect to any applicable grace periods
and any extensions thereof) the stated principal amount of any Indebtedness of the Company
or any Restricted Subsidiary of the Company, or the acceleration of the final stated
maturity of any such Indebtedness (which acceleration is not rescinded, annulled or
otherwise cured within 20 days of receipt by the Company or such Restricted Subsidiary of
notice of any such acceleration) if the aggregate principal amount of such Indebtedness,
together with the principal amount of any other such Indebtedness in default for failure to
pay principal at final stated maturity or which has been accelerated (in each case with
respect to which the 20-day period described above has elapsed), aggregates $15.0 million or
more at any time;

     (e) one or more judgments in an aggregate amount in excess of $15.0 million shall have
been rendered against the Company or any of its Restricted Subsidiaries and such judgments
remain undischarged, unpaid or unstayed for a period of 60 days after such judgment or
judgments become final and non-appealable;

     (f) the Company or any Significant Subsidiary of the Company:

     (i) commences a voluntary case under any Bankruptcy Law,

     (ii) consents to the entry of an order for relief against it in an involuntary
case,

     (iii) consents to the appointment of a custodian or receiver of it or for all
or substantially all of its property,

     (iv) makes a general assignment for the benefit of its creditors, or

     (v) admits in writing its inability to pay its debts as they become due; or

     (g) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (i) is for relief in an involuntary case against the Company or any Significant
Subsidiary of the Company;

     (ii) appoints a custodian or receiver of the Company or any Significant
Subsidiary or for all or substantially all of the property of any of the foregoing;

     (iii) orders the liquidation of the Company or any of its Significant
Subsidiaries;

     and the order or decree remains unstayed and in effect for 60 consecutive days; or

     (h) any Guarantee of a Significant Subsidiary ceases to be in full force and effect or
is declared to be null and void and unenforceable or is found to be invalid or any Guarantor
that is a Significant Subsidiary denies its liability under its Guarantee (other than by
reason of release of a Guarantor in accordance with the terms of this Indenture).

Section 6.2. Acceleration.

          If an Event of Default (other than an Event of Default specified in clause (f) or (g) of
Section 6.1 above with respect to the Company) shall occur and be continuing, the Trustee or the
Holders of at least 25% in principal amount of outstanding Notes may declare the principal of and
accrued interest on all the Notes to be due

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and payable by notice in writing to the Company and the Trustee specifying the respective
Event of Default and that it is a “notice of acceleration” (the “Acceleration Notice”), and
the same shall become immediately due and payable.

          If an Event of Default specified in clause (f) or (g) of Section 6.1 above with respect to the
Company occurs and is continuing, then all unpaid principal of, and premium, if any, and accrued
and unpaid interest on all of the outstanding Notes shall ipso facto 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 with respect to the Notes as described in the
preceding paragraph, the Holders of a majority in principal amount of the Notes may rescind and
cancel such declaration and its consequences:

     (1) if the rescission would not conflict with any judgment or decree;

     (2) if all existing Events of Default have been cured or waived except nonpayment of
principal or interest that has become due solely because of the acceleration;

     (3) to the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due otherwise than by such
declaration of acceleration, has been paid;

     (4) if the Company has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its expenses, disbursements and advances; and

     (5) in the event of the cure or waiver of an Event of Default of the type described in
clause (f) of Section 6.1, the Trustee shall have received an Officers’ Certificate and an
Opinion of Counsel that such Event of Default has been cured or waived.

     No such rescission shall affect any subsequent Default or impair any right consequent thereto.

Section 6.3. Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal, premium, if any, interest or Additional Interest, if any, on
the Notes or to enforce the performance of any provision of the Notes or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding, and any recovery or 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. A delay or omission by
the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall
not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.
All remedies are cumulative to the extent permitted by law.

Section 6.4. Waiver of Past Defaults.

          The Holders of a majority in principal amount of the Notes may waive any existing or past
Default or Event of Default under this Indenture, and its consequences, except a default in the
payment of the principal of or interest on any Notes. Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereon.

Section 6.5. Control by Majority.

          Holders of a majority in principal amount of the then outstanding Notes may direct the time,
method and place of conducting any proceeding for exercising any remedy available to the Trustee or
exercising any

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trust or power conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with applicable law or this Indenture or that the Trustee reasonably determines may be
unduly prejudicial to the rights of other Holders of Notes or that may subject the Trustee to
personal liability and the Trustee shall be entitled to the benefit of Sections 7.1(c)(iii) and
7.1(e).

Section 6.6. Limitation on Suits.

          A Holder of a Note may pursue a remedy with respect to this Indenture or the Notes only if:

     (a) the Holder of a Note gives to the Trustee written notice of a continuing Event of
Default;

     (b) the Holders of at least 25% in principal amount of the then outstanding Notes make
a written request to the Trustee to pursue the remedy;

     (c) such Holder or Holders of Notes offer and, if requested, provide to the Trustee
reasonable indemnity satisfactory to the Trustee against any loss, liability or expense;

     (d) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer and, if requested, the provision of indemnity; and

     (e) during such 60-day period the Holders of a majority in principal amount of the then
outstanding Notes do not give the Trustee a direction inconsistent with the request.

A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a Note
or to obtain a preference or priority over another Holder of a Note.

Section 6.7. Rights of Holders of Notes to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal of, or premium, if any, interest or Additional Interest, if any, on
the Note, on or after the respective due dates thereon (including in connection with an offer to
repurchase), or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the written consent of such Holder.

Section 6.8. Collection Suit by Trustee.

          If an Event of Default specified in Section 6.l(a) or (b) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount of principal of, premium and Additional Interest, if any,
and interest remaining unpaid on the Notes and interest on overdue principal and, to the extent
lawful, interest and Additional Interest, if any, and such further amounts as shall be sufficient
to cover the costs and expenses of collection, including the reasonable compensation, expense,
disbursements and advances of the Trustee, its agents and counsel.

Section 6.9. Trustee May File Proofs of Claim.

          The Trustee is authorized to 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
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents (including
accountants, experts or such other processionals as the Trustee deems necessary, advisable or
appropriate) and counsel) and the Holders of the Notes allowed in any judicial proceedings relative
to the Company (or any other obligor upon the Notes), its creditors or its property and shall be
entitled to participate as a member, voting or otherwise, of any official committee of creditors
appointed in such matter and shall be entitled and empowered to collect, receive and distribute any
money or other property payable or deliverable on any such claims, and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such 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 to it for the reasonable

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compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.7. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.7 out of the estate in any such proceeding, shall be
denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other properties that the Holders may
be entitled to receive in such proceeding whether in liquidation or under any plan of
reorganization or arrangement or otherwise. Nothing herein contained 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, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

Section 6.10. Priorities.

          If the Trustee collects any money pursuant to this Article VI, it shall pay out the money in
the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.7,
including payment of all compensation, expense and liabilities incurred, and all advances
made, by the Trustee and the costs and expenses of collection;

     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
Purchase Price, Redemption Price and Additional Interest, if any, and interest, ratably,
without preference or priority of any kind, according to the amounts due and payable on the
Notes for principal, Purchase Price, Redemption Price and Additional Interest, if any, and
interest, respectively; and

     Third: to the Company, the Guarantors, if any, or to such party as a court of
competent jurisdiction shall direct.

The Trustee may fix a special record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

Section 6.11. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in
principal amount of the then outstanding Notes.

ARTICLE VII.

TRUSTEE

Section 7.1. Duties of Trustee.

          (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
its exercise thereof, 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:

     (i) the duties of the Trustee shall be determined solely by the express provisions of
this Indenture and the TIA and the Trustee need perform only those duties that are
specifically set forth in this In-

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denture and no others, and no implied covenants or obligations shall be read into this
Indenture or the TIA against the Trustee; and

     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely,
without investigation, as to the truth or the statements and the correctness of the opinions
expressed therein, upon and statements, certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture. However, the Trustee shall examine
the certificates and opinions to determine whether or not they conform on their face to the
requirements of this Indenture but not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein or otherwise verify the contents thereof.

          (c) The Trustee may not be relieved from liabilities for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

     (i) this paragraph does not limit the effect of paragraph (b) of this Section 7.1;

     (ii) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was 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 6.5.

          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to this Section 7.1.

          (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee shall be under no obligation to exercise any of its rights and
powers under this Indenture at the request of any Holder, pursuant to the provisions of this
Indenture, including, without limitation, Section 6.5, unless such Holder shall have offered to the
Trustee security and indemnity reasonably satisfactory to it against any loss, liability or expense
which might be incurred by it in compliance with such request or direction.

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

Section 7.2. Rights of Trustee.

          (a) The Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any document believed by it to be genuine and to have been signed or presented by the
proper Person. The Trustee need not investigate any fact or matter stated in the document.

          (b) Before the Trustee acts or refrain from acting, it may require an Officers’ Certificate or
an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel and the written advice of such counsel and Opinions of Counsel shall be
full and complete authorization and protection from liability in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

          (c) The Trustee may act through its attorneys, accountants, experts and such other
professionals as the Trustee deems necessary, advisable or appropriate and shall not be responsible
for the misconduct or negligence of any attorney, accountant, expert or other such professional
appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.

          (e) Unless otherwise specifically provided herein, any demand, request, direction or notice
from the Company shall be sufficiently evidenced by a written order signed by two Officers of the
Company.

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          (f) The Trustee shall not be charged with knowledge of any Default or Event of Default under
Section 6.1 (other than under Section 6.1(a) (subject to the following sentence) or Section 6.1(b))
unless either (i) a Responsible Officer shall have actual knowledge thereof, or (ii) the Trustee
shall have received notice thereof in accordance with Section 12.2 from the Company or any Holder
of the Notes. The Trustee shall not be charged with knowledge of the Company’s obligation to pay
Additional Interest, or the cessation of such obligation, unless the Trustee receives written
notice thereof from the Company or any Holder.

          (g) The Trustee shall have no duty (i) to cause the maintenance of any insurance, (ii) to see
to the payment or discharge of any tax, charge or Lien levied against any part of the Collateral,
or (iii) to see to the filing or refiling of any Security Documents.

Section 7.3. Individual Rights of Trustee.

          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 any Affiliate of the Company with the same rights it
would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest within the meaning of the TIA it must eliminate such conflict within 90 days, apply
(subject to the consent of the Company) to the Commission for permission to continue as trustee or
resign. Any Agent may do the same with like rights and duties. The Trustee shall also be subject
to Sections 7.10 and 7.11.

Section 7.4. Trustee’s Disclaimer.

          The Trustee shall not 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 or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

Section 7.5. Notice of Defaults.

          If a Default or Event of Default occurs and is continuing and is known to the Trustee, the
Trustee shall mail to Holders of Notes a notice of the Default or Event of Default within 90 days
after it occurs. Except in the case of a Default in payment on any Note (including the failure to
make a mandatory repurchase pursuant hereto), the Trustee may withhold the notice if and so long as
a committee of its Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders of the Notes.

Section 7.6. Reports by Trustee to Holders of the Notes.

          Within 60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee shall mail to the Holders of
the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no
event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date,
no report need be transmitted). The Trustee also shall comply with TIA § 313(b). The Trustee
shall also transmit by mail all reports as required by TIA § 313(c).

          A copy of each report at the time of its mailing to the Holders of Notes shall be mailed to
the Company and filed with the Commission and each stock exchange on which the Notes are listed in
accordance with TIA § 313(d). The Company shall promptly notify the Trustee when the Notes are
listed on any stock exchange.

Section 7.7. Compensation, Reimbursement and Indemnity.

          The Company shall pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and the rendering by it of the services required hereunder. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Company shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by or on behalf

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of it in addition to the compensation for its services. Such expenses shall include the
reasonable compensation, disbursements and expenses of the Trustee’s attorneys, accountants,
experts and such other professionals as the Trustee deems necessary, advisable or appropriate.

          The Company shall indemnify the Trustee and its officers, directors, employees and agents
against any and all losses, liabilities or expenses incurred by it arising out of or in connection
with the acceptance or administration of its duties under this Indenture (including its duties
under Section 9.6), including the costs and expenses of enforcing this Indenture or any Guarantee
against the Company or a Guarantor (including this Section 7.7) and defending itself against or
investigating any claim (whether asserted by the Company, any Guarantor, any Holder or any other
Person) or liability in connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, liability or expense may be attributable to its
negligence or willful misconduct. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder. The Company shall defend any claim or threatened claim
asserted against the Trustee, and the Trustee shall cooperate in the defense. The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The
Company need not pay for any settlement made without its consent, which consent shall not be
unreasonably withheld.

          The obligations of the Company under this Section 7.7 shall survive the resignation or removal
of the Trustee, the satisfaction and discharge of this Indenture and the termination of this
Indenture.

          To secure the Company’s payment obligations in this Section 7.7, the Trustee shall have a Lien
prior to the Notes on all money or property held or collected by the Trustee, except that held in
trust to pay principal, Redemption Price or Purchase Price of or Additional Interest, if any, or
interest on, particular Notes. Such Lien shall survive the resignation or removal of the Trustee,
the satisfaction and discharge of this Indenture and the termination of this Indenture.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.1(f) or (g) occurs, the expenses and the compensation for the services (including the
fees and expenses of its agents and counsel) are intended to constitute expenses of administration
under any Bankruptcy Law.

Section 7.8. Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.8.

          The Trustee may resign in writing at any time and be discharged from the trust hereby created
by so notifying the Company. The Holders of Notes of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing.
The Company may remove the Trustee if:

     (a) the Trustee fails to comply with Section 7.10;

     (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (c) a custodian, receiver or public officer takes charge of the Trustee or its property
for the purpose of rehabilitation, conversion or liquidation; or

     (d) the Trustee 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 Company shall promptly appoint a successor Trustee. Within one year after the date on
which the successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

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          If a successor Trustee does not take office within 30 days after the retiring trustee resigns
or is removed, the retiring Trustee, the Company, or the Holders of Notes of at least 10% in
principal amount of the then outstanding Notes may petition any court of competent jurisdiction for
the appointment of a successor Trustee.

          If the Trustee, after written request by any Holder of a Note who has been a bona fide holder
of a Note or Notes for at least six months, fails to comply with Section 7.10, such Holder of a
Note may petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of 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 Company shall mail a notice of its succession to Holders of the
Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.7. Notwithstanding replacement of the Trustee pursuant to this
Section 7.8, the Company’s obligations under Section 7.7 shall continue for the benefit of the
retiring Trustee.

Section 7.9. Successor Trustee by Merger, Etc.

          If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation that is eligible under Section 7.10, the
successor corporation without any further act shall be the successor Trustee.

Section 7.10. Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof (including the
District of Columbia) that is authorized under such laws to exercise corporate trust power, that is
subject to supervision or examination by federal or state authorities and that has a combined
capital and surplus of at least $50 million as set forth in its most recent published annual report
of condition.

          This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

Section 7.11. Preferential Collection of Claims Against Company.

          The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA §
311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated therein.

Section 7.12. Paying Agent and Registrar.

          The rights, privileges, protections, immunities and benefits given to the Trustee in this
Article VII, including without limitation, its right to be indemnified, are extended to, and shall
be enforceable by, the Paying Agent and Registrar as if the Paying Agent and Registrar were named
as the Trustee herein.

ARTICLE VIII.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.1. Option to Effect Legal Defeasance or Covenant Defeasance.

          The Company may, at its option evidenced by a resolution of its Board of Directors set forth
in an Officers’ Certificate, at any time, elect to have its obligations and the obligations of any
Guarantors discharged with respect to the then outstanding Notes in accordance with either Section
8.2 or 8.3 as provided in this Article VIII.

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Section 8.2. Legal Defeasance and Discharge.

          Upon the Company’s exercise under Section 8.1 of the option applicable to this Section 8.2,
the Company and any Guarantor shall, subject to the satisfaction of the conditions set forth in
Section 8.4, be deemed to have been discharged from its obligations with respect to all outstanding
Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Company and the Guarantors, if
any, shall be deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Notes and any Guarantees thereon, which shall thereafter be deemed to be “outstanding”
only for the purposes of Section 8.5 and the other Sections of this Indenture referred to in
clauses (a) through (d) below, and to have satisfied all their other obligations under such Notes,
this Indenture and the Security Documents (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for the following
provisions which shall survive until otherwise terminated or discharged hereunder:

     (a) the rights of Holders of outstanding Notes to receive payments in respect of the
principal of, premium, if any, and interest on the Notes when such payments are due;

     (b) the Company’s obligations with respect to the Notes concerning issuing temporary
Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance
of an office or agency for payments;

     (c) the rights, powers, trust, duties and immunities of the Trustee and the Company’s
obligations in connection therewith; and

     (d) the Legal Defeasance provisions of this Article VIII.

          Subject to compliance with this Article VIII, the Company may exercise its option under this
Section 8.2, notwithstanding the prior exercise of its option under Section 8.3.

Section 8.3. Covenant Defeasance.

          Upon the Company’s exercise under Section 8.1 of the option applicable to this Section 8.3,
the Company shall, subject to the satisfaction of the conditions set forth in Section 8.4, be
released from its obligations under the covenants contained in Sections 3.9, 3.10, 3.11, 4.3, 4.4,
4.5, 4.7 through 4.12 and 4.14 through 4.19, both inclusive, and Section 5.1(b), Article XI and
Article XII with respect to the outstanding Notes on and after the date the conditions set forth
below are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or Act
of Holders (and the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such
Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Company may omit to comply with
and shall have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document, and such omission to comply shall not constitute a Default or an Event of Default
under Section 6.1, but, except as specified above, the remainder of this Indenture and such Notes
shall be unaffected thereby. In addition, upon the Company’s exercise under Section 8.1 of the
option applicable to this Section 8.3, subject to the satisfaction of the conditions set forth in
Section 8.4, Sections 6.1(c) through 6.1(j) shall not constitute Events of Default.

Section 8.4. Conditions to Legal or Covenant Defeasance.

          The following are the conditions precedent to the application of either Section 8.2 or 8.3 to
the outstanding Notes as specified:

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          In order to exercise either Legal Defeasance or Covenant Defeasance:

     (1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders cash in U.S. dollars, non-callable U.S. government obligations, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal of, premium, if any, and
interest on the Notes on the stated date for payment thereof or on the applicable Redemption
Date, as the case may be;

     (2) in the case of Legal Defeasance, the Company shall have delivered to the Trustee an
Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming
that:

     (a) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling; or

     (b) since the date of this Indenture, there has been a change in the applicable
federal income tax law,

in either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders will not recognize income, gain or loss for federal income
tax purposes as a result of such Legal Defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times as would
have been the case if such Legal Defeasance had not occurred;

     (3) in the case of Covenant Defeasance, the Company shall have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming
that the Holders will not recognize income, gain or loss for federal income tax purposes as
a result of such Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
Covenant Defeasance had not occurred;

     (4) no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or an Event of Default resulting from the borrowing of
funds to be applied to such deposit and the grant of any Lien securing such borrowings);

     (5) such Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under this Indenture (other than a Default or an Event
of Default resulting from the borrowing of funds to be applied to such deposit and the grant
of any Lien securing such borrowings) or any other material agreement or instrument to which
the Company or any of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound;

     (6) the Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by the Company with the intent of preferring the Holders over
any other creditors of the Company or with the intent of defeating, hindering, delaying or
defrauding any other creditors of the Company or others;

     (7) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for or relating to
the Legal Defeasance or the Covenant Defeasance have been complied with;

     (8) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that assuming no intervening bankruptcy of the Company between the date of deposit and the
91st day following the date of deposit and that no Holder is an insider of the Company,
after the 91st day following the date of deposit, the trust funds will not be subject to the
effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally; and

     (9) certain other customary conditions precedent are satisfied.

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          Notwithstanding the foregoing, the Opinion of Counsel required by clause (2) above with
respect to a Legal Defeasance need not be delivered if all Notes not theretofore delivered to the
Trustee for cancellation (1) have become due and payable or (2) will become due and payable on the
maturity date within one year, or are to be called for redemption within one year, under
arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in
the name, and at the expense, of the Company.

			
	Section 8.5.	 	Deposited Money and U.S. Government Securities to Be Held in Trust; Other
Miscellaneous Provisions.

          Subject to Section 8.6, all money and U.S. Government Securities (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this
Section 8.5 only) pursuant to Section 8.4 in respect of the outstanding Notes shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent (other than the Company) as
the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon
in respect of principal, Redemption Price or Purchase Price of, and Additional Interest, if any, or
interest on, the Notes, that such money need not be segregated from other funds except to the
extent required by law.

          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or U.S. Government Securities deposited pursuant to Section 8.4 or
the principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of the outstanding Notes.

          Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon the request of the Company any money or U.S. Government
Securities held by it as provided in Section 8.4 which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 8.4), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance.

Section 8.6. Repayment to Company.

          Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal, Redemption Price or Purchase Price of, or Additional
Interest, if any, or interest on any Note and remaining unclaimed for two years after such amount
has become due and payable shall be paid to the Company on its request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note shall thereafter look
only to the Company for payment thereof as a general creditor, 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, at the expense of the Company, if required by applicable
law cause to be published once, in The New York Times and The Wall Street Journal (national
editions), notice that such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days after the date of such notification or publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

Section 8.7. Reinstatement.

          If the Trustee or Paying Agent is unable to apply any United States dollars or U.S. Government
Securities in accordance with Section 8.2 or 8.3, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the obligations of the Company under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 8.2 or 8.3 until such
time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section
8.2 or 8.3, as the case may be; provided, however, that, if the Company makes any payment with
respect to any Note following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the money held by the
Trustee or Paying Agent.

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ARTICLE IX.

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.1. Without Consent of Holders of Notes.

          Notwithstanding Section 9.2 of this Indenture, the Company, the Guarantors, if any, and the
Trustee (or, as applicable, the Paying Agent or Registrar) may amend or supplement this Indenture,
the Notes or any Security Document without the consent of any Holder of a Note:

     (a) to cure any ambiguity, omission, defect or inconsistency so long as such changes do
not adversely affect the rights of any of the Holders in any material respect.

     (b) to provide for the assumption of the Company’s obligations to the Holders of the
Notes in the case of a merger or consolidation or sale of all or substantially all of the
Company’s assets pursuant to Article V;

     (c) to comply with the requirements of the Commission in order to effect or maintain
the qualification of this Indenture under the TIA; or

     (d) to make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not adversely affect the rights hereunder of any Holder of
the Notes in any material respect.

          Upon the written request of the Company, accompanied by a Board Resolution (evidenced by an
Officers’ Certificate) authorizing the execution of any such amended or supplemental indenture, and
upon receipt by the Trustee of the documents described in Section 7.2, the Trustee shall join with
the Company in the execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and stipulations that
may be therein contained, but the Trustee shall not be obligated to enter into such amended or
supplemental indenture that affects its own rights, duties or immunities under this Indenture or
otherwise.

Section 9.2. With Consent of Holders of Notes.

          Except as provided below in this Section 9.2, the Company, the Trustee (or, as applicable, the
Paying Agent or Registrar) and the Guarantors, if any, may amend or supplement this Indenture or
the Notes with the consent of the Holders of at least a majority in principal amount of the Notes
then outstanding (including, without limitation, consents obtained in connection with a tender
offer or exchange offer for the Notes), and, subject to Sections 6.2, 6.4 and 6.7, any existing
Default or Event of Default or compliance with any provision of this Indenture, the Notes may be
waived with the consent of the Holders of a majority in principal amount of the then outstanding
Notes (including consents obtained in connection with a tender offer or exchange offer for the
Notes).

          Without the consent of each Holder affected, an amendment or waiver may not (with respect to
any Notes held by a non-consenting Holder):

     (1) reduce the amount of Notes whose Holders must consent to an amendment;

     (2) reduce the rate of or change or have the effect of changing the time for payment of
interest, including defaulted interest, on any Notes;

     (3) reduce the principal of or change or have the effect of changing the fixed maturity
of any Notes, or change the date on which any Notes may be subject to redemption or reduce
the redemption price therefor;

     (4) make any Notes payable in money other than that stated in the Notes;

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     (5) make any change in provisions of this Indenture protecting the right of each Holder
to receive payment of principal of and interest on such Note on or after the due date
thereof or to bring suit to enforce such payment, or permitting Holders of a majority in
principal amount of Notes to waive Defaults or Events of Default;

     (6) after the Company’s obligation to purchase Notes arises thereunder, amend, change
or modify in any material respect the obligation of the Company to make and consummate a
Change of Control Offer in the event of a Change of Control or make and consummate a Net
Proceeds Offer with respect to any Asset Sale that has been consummated or, after such
Change of Control has occurred or such Asset Sale has been consummated, modify any of the
provisions or definitions with respect thereto;

     (7) change any provision of this Indenture or the related definitions affecting the
ranking of the Notes or any Guarantees in a manner materially adverse to the Holders of the
Notes; or

     (8) release any Guarantor that is a Significant Subsidiary from any of its obligations
under its Guarantee or this Indenture otherwise than in accordance with the terms of this
Indenture.

          Upon the written request of the Company accompanied by a resolution of the Board (evidenced by
an Officers’ Certificate) authorizing the execution of any such amended or supplemental indenture,
and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in
Section 7.2, the Trustee shall join with the Company in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such amended or supplemental indenture.

          It shall not be necessary for the consent of the Holders of Notes under this Section 9.2 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, supplement or waiver under this Section 9.2 becomes effective, the Company
shall mail to the Holders of Notes affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such amended or supplemental
indenture or waiver.

Section 9.3. Compliance with Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Notes shall be set forth in an amended
or supplemental indenture that complies with the TIA as then in effect.

Section 9.4. Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the waiver, supplement or amendment becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and therefore binds every Holder.

Section 9.5. Notation on or Exchange of Notes.

          The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee
shall authenticate new Notes that reflect the amendment, supplement or waiver.

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          Failure to make the appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

Section 9.6. Trustee to Sign Amendment, Etc.

          The Trustee shall sign any amended or supplemental indenture authorized pursuant to this
Article IX if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Company may not sign an amended or supplemental indenture until
the Board approves such amended or supplemental indenture. In executing any amended or
supplemental indenture, the Trustee shall be entitled to receive, in addition to the documents
required by Sections 12.4 and 12.5, and, subject to Section 7.1, shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that (i) the execution of
such amended or supplemental indenture is authorized or permitted by this Indenture, (ii) no Event
of Default shall occur as a result of the execution of such Officers’ Certificate or the delivery
of such Opinion of Counsel and (iii) the amended or supplemental indenture complies with the terms
of this Indenture.

ARTICLE X.

GUARANTEE

Section 10.1. Unconditional Guarantee.

          Each Guarantor, if any, upon the execution and delivery of a Guarantee pursuant to Section
4.16, hereby unconditionally guarantees, on a senior basis and jointly and severally, to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors
and assigns, the Notes or the obligations of the Company hereunder or thereunder, that: (i) the
principal of and interest on the Notes will be promptly paid in full when due, subject to any
applicable grace period, whether at maturity, by acceleration, upon redemption, purchase pursuant
to Article III or otherwise, and interest on the overdue principal, if any, and interest on any
interest, to the extent lawful, of the Notes and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and (ii) in case of any extension of time of payment
or renewal of any Notes or of any such other obligations, the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal, subject to any
applicable grace period, whether at Stated Maturity, by acceleration, upon redemption, purchase
pursuant to Article III or otherwise, subject, however, in the case of clauses (i) and (ii) above,
to the limitations set forth in Section 10.3. Each Guarantor, if any, upon the execution and
delivery of a Guarantee pursuant to Section 4.16, hereby agrees that its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or
this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder
of the Notes with respect to any provisions hereof or thereof (other than a waiver of all or part
of the provisions of this Article X), the recovery of any judgment against the Company, and action
to enforce the same or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor. Each Guarantor, if any, upon the execution and delivery of a
Guarantee pursuant to Section 4.16, hereby waives diligence, presentment, demand of payment, filing
of claims with a court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest, notice and all demands whatsoever and
covenants that this Guarantee will not be discharged except by complete performance of the
obligations contained in the Notes, this Indenture and in this Guarantee. If any Holder or the
Trustee is required by any court or otherwise to return to the Company, any Guarantor, or any
custodian, trustee, liquidator or other similar official acting in relation to the Company or any
Guarantor, any amount paid by the Company or any Guarantor to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.
Each Guarantor, if any, upon the execution and delivery of a Guarantee pursuant to Section 4.16,
further agrees that, as between each Guarantor, on the one hand, and the Holders and the Trustee,
on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as
provided in Article VI for the purposes of this Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and
(y) in the event of any acceleration of such obligations as provided in Article VI, such
obligations (whether or not due and payable) shall forthwith become due and payable by each
Guarantor for the purpose of this Guarantee.

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Section 10.2. Severability.

          In case any provision of this Guarantee 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.

Section 10.3. Limitation of Guarantor’s Liability.

          (a) Each Guarantor, if any, upon the execution and delivery of a Guarantee pursuant to Section
4.16, and by its acceptance hereof each Holder hereby confirms that it is the intention of all such
parties that the guarantee by such Guarantor pursuant to its Guarantee not constitute a fraudulent
transfer or conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance Act,
the Uniform Fraudulent Transfer Act or any similar Federal or state law. To effectuate the
foregoing intention, the Holders and such Guarantor hereby irrevocably agree that the obligations
of such Guarantor under the Guarantee shall be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to
any collections from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to Section 10.5, result in the
obligations of such Guarantor under the Guarantee not constituting such fraudulent transfer or
conveyance.

          (b) The Guarantees of the Subsidiary Guarantors shall be suspended during any Suspension
Period, as provided in Section 4.20(b) hereof.

Section 10.4. Release of Guarantor.

          (a) Any Guarantee by a Restricted Subsidiary pursuant to Section 4.16 shall be automatically
and unconditionally released and discharged, without any further action required on the part of the
Trustee or any Holder of the Notes, upon:

     (1) the unconditional release of such Restricted Subsidiary from its liability in
respect of the Indebtedness in connection with which such Guarantee was executed and
delivered pursuant to Section 4.16;

     (2) the legal defeasance of the Notes as described under Sections 8.2 and 8.3;

     (3) (A) the merger of any Guarantor into the Company, (B) the dissolution of any
Guarantor into the Company or (C) the transfer of all or substantially all of the assets of
any Guarantor to the Company; or

     (4) the sale or other disposition of all or substantially all of the assets of, or the
sale of all of the capital stock of, or other disposition (by merger or otherwise) to any
Person which is not a Restricted Subsidiary of the Company of all of the Company’s Capital
Stock in, or all or substantially all of the assets of, such Restricted Subsidiary; provided
that (A) such sale or disposition of such Capital Stock or assets is otherwise in compliance
with the terms of this Indenture and (B) such assumption, guarantee or other liability of
such Restricted Subsidiary has been released by the holders of the other Indebtedness so
guaranteed.

          (b) The Trustee shall deliver an appropriate instrument evidencing such release upon receipt
of a request by the Company accompanied by an Officers’ Certificate and Opinion of Counsel
certifying as to the compliance with this Section 10.4. Any Guarantor not so released shall remain
liable for the full amount of principal of and interest on the Notes as provided in this Article X.

          (c) All Guarantees shall be of no further force and effect upon the occurrence of a Legal
Defeasance or a Covenant Defeasance pursuant to Section 8.2 or 8.3, subject to reinstatement
pursuant to Section 8.7 under the circumstances described therein.

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Section 10.5. Contribution.

          In order to provide for just and equitable contribution among the Guarantors, the Guarantors
agree, inter se, that in the event any payment or distribution is made by any Guarantor (a
“Funding Guarantor”) under the Guarantee, such Funding Guarantor shall be entitled to a
contribution from all other Guarantors in a pro rata amount based on the Adjusted Net Assets (as
defined below) of each Guarantor (including the Funding Guarantor) for all payments, damages and
expenses incurred by that Funding Guarantor in discharging the Company’s obligations with respect
to the Notes or any other Guarantor’s obligations with respect to the Guarantee. “Adjusted Net
Assets” of such Guarantor at any date shall mean the lesser of the amount by which (x) the fair
value of the property of such Guarantor exceeds the total amount of liabilities, including, without
limitation, contingent liabilities (after giving effect to all other fixed and contingent
liabilities incurred or assumed on such date), but excluding liabilities under the Guarantee, of
such Guarantor at such date and (y) the present fair salable value of the assets of such Guarantor
at such date exceeds the amount that will be required to pay the probable liability of such
Guarantor on its debts (after giving effect to all other fixed and contingent liabilities incurred
or assumed on such date), excluding debt in respect of the Guarantee of such Guarantor, as they
become absolute and matured.

Section 10.6. Waiver of Subrogation.

          Until all Obligations under the Notes and this Indenture are paid in full, each Guarantor, if
any, upon the execution and delivery of a Guarantee pursuant to Section 4.16, hereby irrevocably
waives any claims or other rights which it may now or hereafter acquire against the Company that
arise from the existence, payment, performance or enforcement of such Guarantor’s obligations under
the Guarantee and this Indenture, including, without limitation, any right of subrogation,
reimbursement, exoneration, indemnification, and any right to participate in any claim or remedy of
any Holder against the Company, whether or not such claim, remedy or right arises in equity, or
under contract, statute or common law, including, without limitation, the right to take or receive
from the Company, directly or indirectly, in cash or other property or by set-off or in any other
manner, payment or security on account of such claim or other rights. If any amount shall be paid
to any Guarantor in violation of the preceding sentence and the Notes shall not have been paid in
full, such amount shall have been deemed to have been paid to such Guarantor for the benefit of,
and held in trust for the benefit of, the Holders, and shall, forthwith be paid to the Trustee for
the benefit of such Holders to be credited and applied upon the Notes, whether matured or
unmatured, in accordance with the terms of this Indenture. Each Guarantor, if any, upon the
execution and delivery of a Guarantee pursuant to Section 4.16, acknowledges that it will receive
direct and indirect benefits from the financing arrangements contemplated by this Indenture and
that the waiver set forth in this Section 10.6 is knowingly made in contemplation of such benefits.

Section 10.7. Execution of Guarantee.

          To evidence its guarantee to the Holders set forth in this Article X, each Guarantor required
to execute and deliver of a Guarantee pursuant to Section 4.16 hereby agrees to execute the
Guarantee in substantially the form attached hereto as Exhibit C, which shall be endorsed
on each Note ordered to be authenticated and delivered by the Trustee. Each Guarantor, upon the
execution and delivery of a Guarantee pursuant to Section 4.16, hereby agrees that its Guarantee
shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Guarantee. Each such Guarantee shall be signed on behalf of each Guarantor by two
Officers, or an Officer and an Assistant Secretary or one Officer shall sign and one Officer or an
Assistant Secretary (each of whom shall, in each case, have been duly authorized by all requisite
corporate actions) shall attest to such Guarantee prior to the authentication of the Note on which
it is endorsed, and the delivery of such Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of such Guarantee on behalf of such Guarantor. Such
signatures upon the Guarantee may be by manual or facsimile signature of such officers and may be
imprinted or otherwise reproduced on the Guarantee, and in case any such officer who shall have
signed the Guarantee shall cease to be such officer before the Note on which such Guarantee is
endorsed shall have been authenticated and delivered by the Trustee or disposed of by the Company,
such Note nevertheless may be authenticated and delivered or disposed of as though the Person who
signed the Guarantee had not ceased to be such officer of the Guarantor.

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Section 10.8. Waiver of Stay, Extension or Usury Laws.

          Each Guarantor, upon the execution and delivery of a Guarantee pursuant to Section 4.16,
hereby covenants (to the extent that it may lawfully do so) that it will not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive each such Guarantor from
performing its Guarantee as contemplated herein, wherever enacted, now or at any time hereafter in
force, or which may affect the covenants or the performance of this Indenture; and (to the extent
that it may lawfully do so) each such Guarantor hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

ARTICLE XI.

SATISFACTION AND DISCHARGE

Section 11.1. Satisfaction and Discharge.

          This Indenture will be discharged and will cease to be of further effect (except as set forth
below) as to all outstanding Notes and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture when:

          (1) either:

     (a) all the Notes theretofore authenticated and delivered (except lost, stolen
or destroyed Notes which have been replaced or paid and Notes for whose payment
money has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust) have
been delivered to the Trustee for cancellation; or

     (b) all Notes not theretofore delivered to the Trustee for cancellation (1)
have become due and payable or (2) will become due and payable within one year, or
may be called for redemption within one year, under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and at
the expense, of the Company, and the Company has irrevocably deposited or caused to
be deposited with the Trustee funds in an amount sufficient to pay and discharge the
entire Indebtedness on the Notes not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest on the Notes to the
date of deposit, together with irrevocable instructions from the Company directing
the Trustee to apply such funds to the payment thereof at maturity or redemption, as
the case may be;

     (2) the Company has paid all other sums payable under this Indenture by the Company;
and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel stating that all conditions precedent under this Indenture relating to the
satisfaction and discharge of this Indenture have been complied with.

          Notwithstanding the satisfaction and discharge of this Indenture, the Company’s obligations in
Sections 2.3, 2.4, 2.6, 2.7, 2.11, 7.7, 7.8, 12.2, 12.3 and 12.4, and the Trustee’s and Paying
Agent’s obligations in Section 11.2 shall survive until the Notes are no longer outstanding.
Thereafter, only the Company’s obligations in Section 7.7 shall survive.

Section 11.2. Application of Trust.

          All money deposited with the Trustee pursuant to Section 11.1 shall be held in trust and, at
the written direction of the Company, be invested prior to maturity in U.S. Government Securities,
and applied by the

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Trustee in accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium, if any) and interest for the payment of which money has
been deposited with the Trustee; but such money need not be segregated from other funds except to
the extent required by law.

ARTICLE XII.

MISCELLANEOUS

Section 12.1. Trust Indenture Act Controls.

          If any provision hereof limits, qualifies or conflicts with a provision of the TIA or another
provision that would be required or deemed under such Act to be part of and govern this Indenture
if this Indenture were subject thereto, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the TIA that may be so modified or excluded,
the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded,
as the case may be.

Section 12.2. Notices.

          Any notice or communication by the Company, the Trustee, the Paying Agent or the Registrar to
others is duly given if in writing and delivered in Person or mailed by first class mail
(registered or certified, return receipt requested), telex, telecopier or overnight air courier
guaranteeing next day delivery, to the others’ address:

          If to the Company:

Mobile Mini Inc.

7420 South Kyrene Road, Suite 101

Tempe, Arizona 85283

Attention: Chief Financial Officer

Fax: (480) 894-6433

          With a copy to:

Squire, Sanders & Dempsey L.L.P

Two Renaissance Square

40 North Central Avenue, Suite 2700

Phoenix, AZ 85004-4441

Attention: Joseph P. Richardson, Esq.

Fax: (602) 253-8129

          If to the Trustee:

Law Debenture Trust Company of New York

400 Madison Avenue, 4th Floor

New York, New York 10017

Attention: Corporate Trust Services

Fax: (212) 750-1361

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          If to the Paying Agent or Registrar:

Deutsche Bank Trust Company Americas

60 Wall Street, 27th Floor

MS: NY60-2710

New York, New York 10005

Attention: Trust & Securities Services

Fax: (732) 380-2345

          With a copy to:

Deutsche Bank National Trust Company

for Deutsche Bank Trust Company Americas

25 DeForest Avenue

Mail Stop: SUM01-0105

Summit, New Jersey 07901

Fax: (732) 578-4635

          The Company or the Trustee, by notice to the others, may designate additional or different
addresses for subsequent notices or communications.

          All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed, or in the case of any offer to purchase Notes
under Section 3.9, 3.10 or 3.11 upon the date the communication is postmarked; when answered back,
if telexed; when receipt acknowledged, if telecopied; and the next Business Day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day delivery, except
that notices to the Trustee shall be effective only upon receipt.

          Any notice or communication to a Holder shall be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication shall also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. 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 in the manner provided above within the time
prescribed, it is duly given, whether or not the address receives it.

          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

Section 12.3. Communication by Holders of Notes with Other Holders of Notes.

          Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c).

Section 12.4. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company and/or any Guarantor to the Trustee to take any
action under this Indenture, the Company and/or any Guarantor shall furnish to the Trustee:

     (a) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 12.5) stating that, in the
opinion of the signers, all conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been satisfied; and

-69-

 

     (b) if requested by the Trustee, an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in Section 12.5)
stating that, in the opinion of such counsel, all such conditions precedent and covenants
have been satisfied.

Section 12.5. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply
with the provisions of TIA § 314(e) and shall include:

     (a) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (b) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (c) a statement that, in the opinion of such Person, he or she 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 satisfied; and

     (d) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

Section 12.6. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

Section 12.7. No Personal Liability of Directors, Officers, Employees and
Stockholders.

          No past, present or future director, officer, employee, incorporator, agent or stockholder or
Affiliate of the Company, as such, shall have any liability for any obligations of the Company
under the Notes or this Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. No past, present or future director, officer, employee,
incorporator, agent or stockholder or Affiliate of any of the Guarantors, if any, as such, shall
have any liability for any obligations of the Guarantors under the Guarantees or this Indenture or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Notes and Guarantees by accepting a Note and a Guarantee waives and releases all such
liabilities. The waiver and release are part of the consideration for issuance of the Notes and
the Guarantees. Such waiver may not be effective to waive liabilities under the federal securities
law and it is the view of the Commission that such a waiver is against public policy.

Section 12.8. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

          THE VALIDITY AND INTERPRETATION OF THIS INDENTURE, THE GUARANTEES, IF ANY, AND THE NOTES SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. EACH PARTY HERETO AGREES TO SUBMIT TO
THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW
YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE GUARANTEES, IF
ANY, AND THE NOTES, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY
AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS IN RESPECT OF SUCH SUIT OR ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES AND THE GUARANTEES.

-70-

 

EACH OF THE TRUSTEE, THE COMPANY AND ANY GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
THAT IT MAY EFFECTIVELY 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 SUIT, ACTION OR PROCEEDING BROUGHT IN
ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. Nothing herein shall affect the right of the Trustee or any
Holder of the Notes to serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Company or any Guarantor in any other jurisdiction.

Section 12.9. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

Section 12.10. Successors.

          All agreements of the Company and any Guarantor in this Indenture and the Notes and Guarantees
shall bind their successors. All agreements of the Trustee in this Indenture shall bind its
successors.

Section 12.11. Severability.

          In case any provision in this Indenture or in the Notes or any Guarantees shall be held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

Section 12.12. Counterpart Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together shall represent the same agreement.

Section 12.13. Table of Contents, Headings, Etc.

          The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this
Indenture, which have been inserted for convenience of reference only, are not to be considered a
part of this Indenture and shall in no way modify or restrict any of the terms or provisions
hereof.

Section 12.14. Qualification of Indenture.

          The Company shall qualify this Indenture under the TIA in accordance with the terms and
conditions of the Registration Rights Agreement and shall pay all reasonable costs and expenses
(including attorneys’ fees for the Company, the Trustee and the Holders) incurred in connection
therewith, including, but not limited to, costs and expenses of qualification of this Indenture and
the Notes and printing this Indenture and the Notes. The Trustee shall be entitled to receive from
the Company any such Officers’ Certificates, Opinions of Counsel or other documentation as it may
reasonably request in connection with any such qualification of this Indenture under the TIA.

Section 12.15. USA PATRIOT Act.

          The parties hereto acknowledge that in accordance with Section 326 of the USA PATRIOT Act the
Trustee and the Paying Agent, like all financial institutions, are required to obtain, verify, and
record information that identifies each person or legal entity that establishes a relationship or
opens an account with Law Debenture Trust Company of New York or Deutsche Bank Trust Company
Americas. The parties to this Indenture agree that they will provide the Trustee and the Paying
Agent with such information as they may request in order for the Trustee and the Paying Agent to
satisfy the requirements of the USA PATRIOT Act.

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[Signatures on following page]

-72- 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.

	 	 	 	 	 
	 	MOBILE MINI INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	A ROYAL WOLF PORTABLE STORAGE, INC.

DELIVERY DESIGN SYSTEMS, INC.

MOBILE MINI, LLC (CA)

MOBILE MINI, LLC (DE)

MOBILE MINI I, INC.

MOBILE MINI HOLDINGS, INC.

MOBILE MINI OF OHIO, LLC

MOBILE MINI TEXAS LIMITED PARTNERSHIP, L.L.P.

TEMPORARY MOBILE STORAGE, INC.

 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	LAW DEBENTURE TRUST COMPANY OF NEW YORK, 
as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Paying Agent and Registrar

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-3

 

	 	 	 	 	 

EXHIBIT A

FORM OF SERIES A NOTE

(Face of Note)

MOBILE MINI INC.

67/8% SENIOR NOTE DUE 2015

[THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY.
THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF
THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO 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.] 1

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF,
THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN ACCREDITED
INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT) (AN “ACCREDITED
INVESTOR”), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE
RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO MOBILE MINI INC. OR ANY SUBSIDIARY THEREOF,
(B) INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER
THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR TO SUCH
TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A
SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON
TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS NOTE),
(D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURI-

 

			
	1	 	To be included only if the Note is issued
in global form.

A-1

 

TIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
MOBILE MINI INC. IF MOBILE MINI INC. SO REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY
TRANSFER OF THIS NOTE WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE, IF THE PROPOSED
TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE
TRUSTEE AND MOBILE MINI INC. SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF
THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS
USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING
GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

A-2

 

MOBILE MINI INC.

67/8% SENIOR NOTE DUE 2015

					
	 	 	 	 	 
	 
	 	 	 	CUSIP No. 60740F AF2
	No. 001
	 	 
	 	$   
              
   

Interest Payment Dates: May 1 and November 1, commencing November 1, 2007

Record Dates: April 15 and October 15

          MOBILE MINI INC., a Delaware corporation (the “Company,” which term includes any
successor corporation under the indenture hereinafter referred to ), for value received, promises
to pay to CEDE & CO., or registered assigns, the principal sum of $[         ] on May 1, 2015.

          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 set forth at this
place.

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Note shall not be entitled to any benefits under
the Indenture referred to on the reverse hereof or be valid or obligatory for any purpose.

A-3

 

          IN WITNESS WHEREOF, the Company has caused this Note to be duly executed under its corporate
seal.

	 	 	 	 	 
	 	Dated:

MOBILE MINI INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

This is one of the Notes referred to

in the within-mentioned Indenture:

LAW DEBENTURE TRUST COMPANY

OF NEW YORK, as Trustee

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

A-4

 

(Back of Note)

67/8% Senior Notes due 2015

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest. The Company promises to pay interest on the principal amount of this
Note at the rate of 67/8% per annum from the date of original issuance until maturity and shall pay
the Additional Interest pursuant to the registration rights agreement referred below. The Company
shall pay interest and Additional Interest semi-annually on May 1 and November 1 of each year,
commencing November 1, 2007, or if any such day is not a Business Day, on the next succeeding
Business Day (each an “Interest Payment Date”). Interest on this Note will accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from the date of
issuance; provided that if there is no existing Default in the payment of interest, and if this
Note is authenticated between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date;
provided, further, that the first Interest Payment Date shall be November 1, 2007. The Company
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue payments of the principal, Purchase Price and Redemption Price of this Note from time to
time on demand at a rate that is 2% per annum in excess of the rate then in effect; it shall pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Additional Interest, if any (without regard to any applicable grace
periods), hereon from time to time on demand at the same rate to the extent lawful. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.

          2. Method of Payment. The Company shall pay interest on the Notes (except defaulted
interest) and Additional Interest, if any, to the Persons who are registered Holders of Notes at
the close of business on the April 15 and October 15 next preceding the Interest Payment Date, even
if such Notes are canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to defaulted interest. Any such
installment of interest or Additional Interest, if any, not punctually paid or duly provided for
shall forthwith cease to be payable to the registered Holders on such Interest Payment Date, and
may be paid to the registered Holders at the close of business on a special interest payment date
to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be
given to the registered Holders not less than 10 days prior to such special interest payment date,
or may be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in the Indenture. The Notes will be payable as to
principal, Redemption Price, Purchase Price, interest and Additional Interest, if any, at the
office or agency of the Company maintained for such purpose within or without the City and State of
New York, or, at the option of the Company, payment of interest and Additional Interest may be made
by check mailed to the Holders at their addresses set forth in the register of Holders, provided
that payment by wire transfer of immediately available funds will be required with respect to
principal, Redemption Price and Purchase Price of, and interest and Additional Interest (if any)
on, all Global Notes and all other Notes the Holders of which shall have provided wire transfer
instructions to the Paying Agent. Such payment shall be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts.

          3. Paying Agent and Registrar. Initially, Deutsche Bank Trust Company Americas will
act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company may act in any such capacity.

          4. Indenture. The Company issued $150.0 million in aggregate principal amount of the
Notes under an Indenture dated as of May 7, 2007 (the “Indenture”) between the Company, the
Guarantors party thereto from time to time and the Trustee. Additional Notes may be issued from
time to time, subject to limitations set forth in the Indenture. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S.C. Code §§ 77aaa-77bbbb). The Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a statement of such

A-5

 

terms. The Notes are general obligations of the Company. The Company may issue Additional
Notes under the Indenture.

          5. Optional Redemption. The Company may redeem the Notes at any time at its option,
in whole or in part, upon not less than 30 nor more than 60 days’ notice. To redeem the Notes
prior to May 1, 2011, the Company must pay a redemption price equal to the greater of:

     (a) 100% of the principal amount of the Notes to be redeemed; and

     (b) the sum of the present values of (1) the redemption price of the Notes at May 1,
2011 (as set forth below) and (2) the remaining scheduled payments of interest from the
Redemption Date to May 1, 2011, but excluding accrued and unpaid interest, if any, to the
Redemption Date, discounted to the Redemption Date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months), at the Treasury Rate (determined on the
second business day immediately preceding the Redemption Date) plus 50 basis points,

plus, in either case, accrued and unpaid interest, if any, to the Redemption Date (subject to the
right of holders of record on the relevant record date to receive interest due on the relevant
interest payment date).

          Beginning on May 1, 2011, the Company may redeem the Notes at its option, in whole or in part,
at the following redemption prices (expressed as percentages of the principal amount thereof) if
redeemed during the twelve-month period commencing on July 1 of the year set forth below:

	 	 	 	 	 
	Year	 	Percentage
	2011
	 	 	103.438	%
	2012
	 	 	101.719	%
	2013 and thereafter
	 	 	100.000	%

          In addition, the Company must pay accrued and unpaid interest on the Notes redeemed.

          6. Optional Redemption upon Equity Offerings. At any time, or from time to time, on
or prior to May 1, 2010, the Company may, at its option, use the net cash proceeds of one or more
public or private offering of Qualified Capital Stock (as defined in the Indenture) of the Company
to redeem up to 35% of the principal amount of the Notes issued under the Indenture at a redemption
price of 106.875% of the principal amount thereof plus accrued and unpaid interest thereon, if any,
to the Redemption Date; provided that at least 65% of the principal amount of Notes issued under
the Indenture remains outstanding immediately after any such redemption and the Company makes such
redemption not more than 90 days after the consummation of any such Equity Offering.

          7. Mandatory Redemption. Except as set forth in Paragraph 9 below with respect to
repurchases of Notes in certain events, the Company shall not be required to make mandatory
redemption or repurchase payments with respect to the Notes.

          8. Selection and Notice of Redemption. Subject to the provisions of the Indenture, a
notice of redemption will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder whose Notes are to be redeemed at its registered address. Notes in
denominations larger than $2,000 (or integral multiples of $1,000 in excess thereof) may be
redeemed in part, unless all of the Notes held by a Holder are to be redeemed. On and after the
Redemption Date interest ceases to accrue on Notes or portions thereof called for redemption.

          If less than all of the Notes are to be redeemed, the Trustee shall select the Notes or
portions thereof to be redeemed (a) in compliance with the requirements of the national securities
exchange, if any, on which the Notes are listed; or (b) if the Notes are not listed on any national
securities exchange, on a pro rata basis, by lot or by such method as the Trustee shall deem fair
and appropriate.

A-6

 

          9. Repurchase at Option of Holder.

          (a) Change of Control Offer. Upon the occurrence of a Change of Control (unless the
Company has exercised its right to redeem the Notes as described in paragraph 5 above and in the
Indenture), the Company shall be required to make an offer (a “Change of Control Offer”) to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
each Holder’s Notes at a Purchase Price in cash equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest and Additional Interest, if any, to the date of
repurchase, in accordance with the procedures set forth in the Indenture. Within 30 days following
any Change of Control, the Company shall mail a notice to each Holder setting forth the procedures
governing the Change of Control Offer as required by the Indenture.

          (b) Net Proceeds Offer. If on the 366th day after an Asset Sale the Company has not
applied or invested the Net Cash Proceeds or non-cash consideration received by the Company or any
Restricted Subsidiary, as the case may be, in connection with any Asset Sale that is converted into
or sold or otherwise disposed of for cash (as described in Section 4.10 of the Indenture) relating
to such Asset Sale as set forth in clauses (3)(a) and (3)(b) of paragraph (a) of Section 4.10 of
the Indenture (each, a “Net Proceeds Offer Trigger Date”), such aggregate amount of Net
Cash Proceeds which has not been applied or invested on or before such Net Proceeds Offer Trigger
Date as permitted in clauses (3)(a) and (3)(b) of paragraph (a) of Section 4.10 of the Indenture
(each, a “Net Proceeds Offer Amount”) shall be applied by the Company to make an offer to
purchase (the “Net Proceeds Offer”) pursuant to Sections 3.10 and 4.10 of the Indenture to
all Holders and, to the extent required by the terms of any other debt that is pari passu with the
Notes (“Pari Passu Debt”), to all holders of such Pari Passu Debt on a date (the “Net
Proceeds Offer Payment Date”) not less than 30 nor more than 60 days following the applicable
Net Proceeds Offer Trigger Date, from all Holders (and holders of any Pari Passu Debt) pro rata,
the maximum amount of Notes and such other Pari Passu Debt equal to the Net Proceeds Offer Amount
with respect to the Notes at a price equal to 100% of the principal amount of the Notes (and Pari
Passu Debt) to be purchased, plus accrued and unpaid interest thereon, if any, to the Purchase
Date.

          Each Net Proceeds Offer will be mailed to the record Holders as shown on the register of
Holders within 30 days following the Net Proceeds Offer Trigger Date, with a copy to the Trustee,
and shall comply with the procedures set forth in the Indenture. Upon receiving notice of the Net
Proceeds Offer, Holders may elect to tender their Notes in whole or in part in integral multiples
of $1,000 in exchange for cash. To the extent Holders properly tender Notes in an amount exceeding
the Net Proceeds Offer Amount, the tendered Notes will be purchased pro rata based on the aggregate
amounts of Notes and Pari Passu Debt of the Company properly tendered (and the Trustee shall select
the tendered Notes of tendering Holders pro rata based on the amount of Notes and other pari passu
Indebtedness of the Company properly tendered). A Net Proceeds Offer shall remain open for a
period of 20 Business Days or such longer period as may be required by law.

          10. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $2,000 (or integral multiples of $1,000 in excess thereof). The
transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for the unredeemed
portion of any Note being redeemed in part. Also, it need not exchange or register the transfer of
any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period
between a record date and the corresponding Interest Payment Date.

          11. Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

          12. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture
and the Notes may be amended or supplemented with the consent of the Holders of at least a majority
in principal amount of the then outstanding Notes, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority
in principal amount of the then outstanding Notes. Without the consent of any Holder of a Note,
the Indenture and the Notes may be amended or supplemented

A-7

 

to cure any ambiguity, defect or inconsistency, to provide for the assumption of the Company’s
obligations to Holders of the Notes in case of a merger or consolidation or sale of all or
substantially all of the Company’s assets pursuant to Article V of the Indenture, to make any
change that would provide any additional rights or benefits to the Holders of the Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, or to comply
with the Trust Indenture Act.

          13. Defaults and Remedies. (i) the failure to pay interest on any Notes when the same
becomes due and payable and the default continues for a period of 30 days; (ii) the failure to pay
the principal on any Notes, when such principal becomes due and payable, at maturity, upon
redemption or otherwise (including the failure to make a payment to purchase Notes tendered
pursuant to a Change of Control Offer or a Net Proceeds Offer); (iii) a default in the observance
or performance of any other covenant or agreement contained in the Indenture which default
continues for a period of 30 days after the Company receives written notice specifying the default
(and demanding that such default be remedied) from the Trustee or the Holders of at least 25% of
the outstanding principal amount of the Notes (except in the case of a default under Section 5.1 of
the Indenture, which will constitute an Event of Default with such notice requirement but without
such passage of time requirement); (iv) the failure to pay at final maturity (giving effect to any
applicable grace periods and any extensions thereof) the stated principal amount of any
Indebtedness of the Company or any Restricted Subsidiary of the Company, or the acceleration of the
final stated maturity of any such Indebtedness (which acceleration is not rescinded, annulled or
otherwise cured within 20 days of receipt by the Company or such Restricted Subsidiary of notice of
any such acceleration) if the aggregate principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness in default for failure to pay principal at final
stated maturity or which has been accelerated (in each case with respect to which the 20-day period
described above has elapsed), aggregates $15.0 million or more at any time; (v) one or more
judgments in an aggregate amount in excess of $15.0 million shall have been rendered against the
Company or any of its Restricted Subsidiaries and such judgments remain undischarged, unpaid or
unstayed for a period of 60 days after such judgment or judgments become final and non-appealable;
(vi) certain events of bankruptcy affecting the Company or any of its Significant Subsidiaries; or
(vii) any Guarantee of a Significant Subsidiary ceases to be in full force and effect or is
declared to be null and void and unenforceable or is found to be invalid or any Guarantor that is a
Significant Subsidiary denies its liability under its Guarantee (other than by reason of release of
a Guarantor in accordance with the terms of the Indenture).

          14. Trustee Dealings with Company. Subject to certain limitations, the Trustee under
the Indenture, in its individual or any other capacity, may become owner or pledgee of Notes and
may otherwise deal with the Company or its Affiliates as if it were not Trustee.

          15. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator or stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Notes or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives
and releases all such liability. The waiver and release are part of the consideration for the
issuance of the Notes.

          16. Authentication. This Note shall not be valid until authenticated by the signature
of the Trustee or an authenticating agent.

          17. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

          18. Discharge Prior to Maturity. If the Company deposits with the Trustee or Paying
Agent cash or U.S. Government Securities sufficient to pay the principal or Redemption Price of,
and interest and Additional Interest, if any, on, the Notes to maturity or a specified Redemption
Date and satisfies certain conditions specified in the Indenture, the Company will be discharged
from the Indenture, except for certain Sections thereof.

          19. Governing Law. The validity and interpretation of the Indenture, the Guarantees,
if any, and this Note shall be governed by and construed in accordance with the laws of the state
of New York, but without

A-8

 

giving effect to applicable principles of conflicts of law to the extent that the application
of the law of another jurisdiction would be required thereby. Each party hereto agrees to submit
to the jurisdiction of any New York state court sitting in the Borough of Manhattan in the City of
New York or any federal court sitting in the Borough of Manhattan in the City of New York in
respect of any suit, action or proceeding arising out of or relating to the Indenture, the
Guarantees, if any, and the Notes, and irrevocably accepts for itself and in respect of its
property, generally and unconditionally, jurisdiction of the aforesaid courts in respect of such
suit or action or proceeding arising out of or relating to the Indenture, the Notes and the
Guarantees. Each of the Trustee, the Company and any Guarantor irrevocably waives, to the fullest
extent that it may effectively 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 suit, action or proceeding brought
in any such court and any claim that any such suit, action or proceeding brought in any such court
has been brought in an inconvenient forum.

          20. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on
the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the correctness or accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption or repurchase and reliance may be
placed only on the other identification numbers placed thereon.

          21. Registration Rights. Pursuant to a registration rights agreement, the Company
will be obligated upon the occurrence of certain events to consummate an exchange offer pursuant to
which the Holder of this Note shall have the right to exchange this Series A Note for the Company’s
91/2% Senior Notes due 2013, Series B, which have been registered under the Securities Act, in like
principal amount and having terms identical in all material respects as the Series A Notes. The
Holders shall be entitled to receive certain additional interest payments in the event such
exchange offer is not consummated and upon certain other conditions, all pursuant to and in
accordance with the terms of such registration rights agreement.

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Request may be made to:

Mobile Mini Inc.

7420 South Kyrene Road, Suite 101

Tempe, Arizona 85283

Attention: Secretary

A-9

 

ASSIGNMENT FORM

          To assign this Note, fill in the form below:

          (I) or (we) assign and transfer this Note to

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

 

 

 

 

 

 

(Print or type assignee’s name address and zip code)

	 	 	 
	and irrevocably appoint
	 	 
	 

	 	 

agent to transfer this Note on the books of the Company. The agent may substitute another to act for him.

     Date:                     

	 	 	 	 	 
	 

	 	Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears
on the face of this Note)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Participant in recognized signature guarantee medallion program)

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you wish to elect to have all or any portion of this Note purchased by the Company pursuant
to Section 4.10 (“Net Proceeds Offer”) or Section 4.15 (“Change of Control Offer”)
of the Indenture, check the applicable boxes

	 	 	 
	o Net Proceeds Offer:

	 	o Change of Control Offer:
	 
	 	 
	     in whole o

	 	     in whole o
	 
	 	 
	     in part     o

	 	     in part     o
	 
	 	 
	     Amount to be

	 	     Amount to be
	     purchased: $                    

	 	     purchased: $                    

	 	 	 	 	 	 	 
	Dated:                     

	 	Signature:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears
on the other side of this Note)	 	 

	 	 	 	 	 
	Signature Guarantee:  

	 	 	 	 
	 

	 	 	 	 
	 

	 	(Participant in recognized signature guarantee medallion program)	 	 
	 
	 	 	 	 
	Social Security Number or 

Taxpayer Identification Number:
	 	 	 
	 

	 	 	 	 

A-11

 

SCHEDULE OF EXCHANGES OF NOTES

          The following exchanges of a part of this Global Note for Certificated Notes or a part of
another Global Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal amount of	 	 
	 	 	 	 	 	 	this Global Note	 	 
	 	 	Amount of decrease	 	Amount of increase	 	following such	 	Signature of
	 	 	in principal amount	 	in principal amount	 	decrease (or	 	authorized officer of
	Date of Exchange	 	of this Global Note	 	of this Global Note	 	increase)	 	Trustee
	 	 	 	 	 	 	 	 	 
	 

A-12

 

EXHIBIT B

FORM OF SERIES B NOTE

(Face of Note)

MOBILE MINI INC.

67/8% SENIOR NOTE DUE 2015

[THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY.
THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF
THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO 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.] 2

 

			
	2	 	To be included only if the Note is issued
in global form.

B-1

 

MOBILE MINI INC.

67/8% SENIOR NOTE DUE 2015

			
	 	 	 
	 
	 	CUSIP No. 60740F AH8
	No.
	 	$                    

Interest Payment Dates: May 1 and November 1, commencing November 1, 2007

Record Dates: April 15 and October 15

          MOBILE MINI INC., a Delaware corporation (the “Company,” which term includes any
successor corporation under the indenture hereinafter referred to ), for value received, promises
to pay to CEDE & CO., or registered assigns, the principal sum of $[ ] on May 1,
2015.

          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 set forth at this
place.

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Note shall not be entitled to any benefits under
the Indenture referred to on the reverse hereof or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this Note to be duly executed under its corporate
seal.

	 	 	 	 	 
	 	Dated:

MOBILE MINI INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Attested to as of the date hereof:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

This is one of the Notes referred to

in the within-mentioned Indenture:

LAW DEBENTURE TRUST COMPANY

OF NEW YORK, as Trustee

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

B-2

 

(Back of Note)

67/8% Senior Notes due 2015

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest. The Company promises to pay interest on the principal amount of this
Note at the rate of 67/8% per annum from the date of original issuance until maturity and shall pay
the Additional Interest pursuant to the registration rights agreement referred below. The Company
shall pay interest and Additional Interest semi-annually on May 1 and November 1 of each year,
commencing November 1, 2007, or if any such day is not a Business Day, on the next succeeding
Business Day (each an “Interest Payment Date”). Interest on this Note will accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from the date of
issuance; provided that if there is no existing Default in the payment of interest, and if this
Note is authenticated between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date;
provided, further, that the first Interest Payment Date shall be November 1, 2007. The Company
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue payments of the principal, Purchase Price and Redemption Price of this Note from time to
time on demand at a rate that is 2% per annum in excess of the rate then in effect; it shall pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Additional Interest, if any (without regard to any applicable grace
periods), hereon from time to time on demand at the same rate to the extent lawful. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.

          2. Method of Payment. The Company shall pay interest on the Notes (except defaulted
interest) and Additional Interest, if any, to the Persons who are registered Holders of Notes at
the close of business on the April 15 and October 15 next preceding the Interest Payment Date, even
if such Notes are canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to defaulted interest. Any such
installment of interest or Additional Interest, if any, not punctually paid or duly provided for
shall forthwith cease to be payable to the registered Holders on such Interest Payment Date, and
may be paid to the registered Holders at the close of business on a special interest payment date
to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be
given to the registered Holders not less than 10 days prior to such special interest payment date,
or may be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in the Indenture. The Notes will be payable as to
principal, Redemption Price, Purchase Price, interest and Additional Interest, if any, at the
office or agency of the Company maintained for such purpose within or without the City and State of
New York, or, at the option of the Company, payment of interest and Additional Interest may be made
by check mailed to the Holders at their addresses set forth in the register of Holders, provided
that payment by wire transfer of immediately available funds will be required with respect to
principal, Redemption Price and Purchase Price of, and interest and Additional Interest (if any)
on, all Global Notes and all other Notes the Holders of which shall have provided wire transfer
instructions to the Trustee or the Paying Agent. Such payment shall be in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts.

          3. Paying Agent and Registrar. Initially, Deutsche Bank Trust Company Americas will
act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company may act in any such capacity.

          4. Indenture. The Company issued $150.0 million in aggregate principal amount of the
Notes under an Indenture dated as of May 7, 2007 (the “Indenture”) between the Company, the
Guarantors party thereto from time to time and the Trustee. Additional Notes may be issued from
time to time, subject to limitations set forth in the Indenture. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S.C. Code §§ 77aaa-77bbbb). The Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a statement of such

B-3

 

terms. The Notes are general obligations of the Company. The Company may issue Additional
Notes under the Indenture.

          5. Optional Redemption. The Company may redeem the Notes at any time at its option,
in whole or in part, upon not less than 30 nor more than 60 days’ notice. To redeem the Notes
prior to May 1, 2011, the Company must pay a redemption price equal to the greater of:

     (a) 100% of the principal amount of the Notes to be redeemed; and

     (b) the sum of the present values of (1) the redemption price of the Notes at May 1,
2011 (as set forth below) and (2) the remaining scheduled payments of interest from the
Redemption Date to May 1, 2011, but excluding accrued and unpaid interest, if any, to the
Redemption Date, discounted to the Redemption Date on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months), at the Treasury Rate (determined on the
second business day immediately preceding the Redemption Date) plus 50 basis points,

plus, in either case, accrued and unpaid interest, if any, to the Redemption Date (subject to the
right of holders of record on the relevant record date to receive interest due on the relevant
interest payment date).

          Beginning on May 1, 2011, the Company may redeem the Notes at its option, in whole or in part,
at the following redemption prices (expressed as percentages of the principal amount thereof) if
redeemed during the twelve-month period commencing on July 1 of the year set forth below:

	 	 	 	 	 
	Year	 	Percentage
	2011
	 	 	103.438	%
	2012
	 	 	101.719	%
	2013 and thereafter
	 	 	100.000	%

          In addition, the Company must pay accrued and unpaid interest on the Notes redeemed.

          6. Optional Redemption upon Equity Offerings. At any time, or from time to time, on
or prior to July 1, 2006, the Company may, at its option, use the net cash proceeds of one or more
public or private offering of Qualified Capital Stock (as defined in the Indenture) of the Company
to redeem up to 35% of the principal amount of the Notes issued under the Indenture at a redemption
price of 106.875% of the principal amount thereof plus accrued and unpaid interest thereon, if any,
to the Redemption Date; provided that at least 65% of the principal amount of Notes issued under
the Indenture remains outstanding immediately after any such redemption and the Company makes such
redemption not more than 90 days after the consummation of any such Equity Offering.

          7. Mandatory Redemption. Except as set forth in Paragraph 9 below with respect to
repurchases of Notes in certain events, the Company shall not be required to make mandatory
redemption or repurchase payments with respect to the Notes.

          8. Selection and Notice of Redemption. Subject to the provisions of the Indenture, a
notice of redemption will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder whose Notes are to be redeemed at its registered address. Notes in
denominations larger than $2,000 (or integral multiples of $1,000 in excess thereof) may be
redeemed in part, unless all of the Notes held by a Holder are to be redeemed. On and after the
Redemption Date interest ceases to accrue on Notes or portions thereof called for redemption.

          If less than all of the Notes are to be redeemed, the Trustee shall select the Notes or
portions thereof to be redeemed (a) in compliance with the requirements of the national securities
exchange, if any, on which the Notes are listed; or (b) if the Notes are not listed on any national
securities exchange, on a pro rata basis, by lot or by such method as the Trustee shall deem fair
and appropriate.

B-4

 

          9. Repurchase at Option of Holder.

          (a) Change of Control Offer. Upon the occurrence of a Change of Control (unless the
Company has exercised its right to redeem the Notes as described in paragraph 5 above and in the
Indenture), the Company shall be required to make an offer (a “Change of Control Offer”) to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
each Holder’s Notes at a Purchase Price in cash equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest and Additional Interest, if any, to the date of
repurchase, in accordance with the procedures set forth in the Indenture. Within 30 days following
any Change of Control, the Company shall mail a notice to each Holder setting forth the procedures
governing the Change of Control Offer as required by the Indenture.

          (b) Net Proceeds Offer. If on the 366th day after an Asset Sale the Company has not
applied or invested the Net Cash Proceeds or non-cash consideration received by the Company or any
Restricted Subsidiary, as the case may be, in connection with any Asset Sale that is converted into
or sold or otherwise disposed of for cash (as described in Section 4.10 of the Indenture) relating
to such Asset Sale as set forth in clauses (3)(a) and (3)(b) of paragraph (a) of Section 4.10 of
the Indenture (each, a “Net Proceeds Offer Trigger Date”), such aggregate amount of Net
Cash Proceeds which has not been applied or invested on or before such Net Proceeds Offer Trigger
Date as permitted in clauses (3)(a) and (3)(b) of paragraph (a) of Section 4.10 of the Indenture
(each, a “Net Proceeds Offer Amount”) shall be applied by the Company to make an offer to
purchase (the “Net Proceeds Offer”) pursuant to Sections 3.10 and 4.10 of the Indenture to
all Holders and, to the extent required by the terms of any other debt that is pari passu with the
Notes (“Pari Passu Debt”), to all holders of such Pari Passu Debt on a date (the “Net
Proceeds Offer Payment Date”) not less than 30 nor more than 60 days following the applicable
Net Proceeds Offer Trigger Date, from all Holders (and holders of any Pari Passu Debt) pro rata,
the maximum amount of Notes and such other Pari Passu Debt equal to the Net Proceeds Offer Amount
with respect to the Notes at a price equal to 100% of the principal amount of the Notes (and Pari
Passu Debt) to be purchased, plus accrued and unpaid interest thereon, if any, to the Purchase
Date.

          Each Net Proceeds Offer will be mailed to the record Holders as shown on the register of
Holders within 30 days following the Net Proceeds Offer Trigger Date, with a copy to the Trustee,
and shall comply with the procedures set forth in the Indenture. Upon receiving notice of the Net
Proceeds Offer, Holders may elect to tender their Notes in whole or in part in integral multiples
of $1,000 in exchange for cash. To the extent Holders properly tender Notes in an amount exceeding
the Net Proceeds Offer Amount, the tendered Notes will be purchased pro rata based on the aggregate
amounts of Notes and Pari Passu Debt of the Company properly tendered (and the Trustee shall select
the tendered Notes of tendering Holders pro rata based on the amount of Notes and other pari passu
Indebtedness of the Company properly tendered). A Net Proceeds Offer shall remain open for a
period of 20 Business Days or such longer period as may be required by law.

          10. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $2,000 (or integral multiples of $1,000 in excess thereof). The
transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for the unredeemed
portion of any Note being redeemed in part. Also, it need not exchange or register the transfer of
any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period
between a record date and the corresponding Interest Payment Date.

          11. Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

          12. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture
and the Notes may be amended or supplemented with the consent of the Holders of at least a majority
in principal amount of the then outstanding Notes, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority
in principal amount of the then outstanding Notes. Without the consent of any Holder of a Note,
the Indenture and the Notes may be amended or supplemented

B-5

 

to cure any ambiguity, defect or inconsistency, to provide for the assumption of the Company’s
obligations to Holders of the Notes in case of a merger or consolidation or sale of all or
substantially all of the Company’s assets pursuant to Article V of the Indenture, to make any
change that would provide any additional rights or benefits to the Holders of the Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, or to comply
with the Trust Indenture Act.

          13. Defaults and Remedies. (i) the failure to pay interest on any Notes when the same
becomes due and payable and the default continues for a period of 30 days; (ii) the failure to pay
the principal on any Notes, when such principal becomes due and payable, at maturity, upon
redemption or otherwise (including the failure to make a payment to purchase Notes tendered
pursuant to a Change of Control Offer or a Net Proceeds Offer); (iii) a default in the observance
or performance of any other covenant or agreement contained in the Indenture which default
continues for a period of 30 days after the Company receives written notice specifying the default
(and demanding that such default be remedied) from the Trustee or the Holders of at least 25% of
the outstanding principal amount of the Notes (except in the case of a default with respect to the
“Merger, Consolidation and Sale of Assets” covenant, which will constitute an Event of Default with
such notice requirement but without such passage of time requirement); (iv) the failure to pay at
final maturity (giving effect to any applicable grace periods and any extensions thereof) the
stated principal amount of any Indebtedness of the Company or any Restricted Subsidiary of the
Company, or the acceleration of the final stated maturity of any such Indebtedness (which
acceleration is not rescinded, annulled or otherwise cured within 20 days of receipt by the Company
or such Restricted Subsidiary of notice of any such acceleration) if the aggregate principal amount
of such Indebtedness, together with the principal amount of any other such Indebtedness in default
for failure to pay principal at final stated maturity or which has been accelerated (in each case
with respect to which the 20-day period described above has elapsed), aggregates $15.0 million or
more at any time; (v) one or more judgments in an aggregate amount in excess of $15.0 million shall
have been rendered against the Company or any of its Restricted Subsidiaries and such judgments
remain undischarged, unpaid or unstayed for a period of 60 days after such judgment or judgments
become final and non-appealable; (vi) certain events of bankruptcy affecting the Company or any of
its Significant Subsidiaries; or (vii) any Guarantee of a Significant Subsidiary ceases to be in
full force and effect or is declared to be null and void and unenforceable or is found to be
invalid or any Guarantor that is a Significant Subsidiary denies its liability under its Guarantee
(other than by reason of release of a Guarantor in accordance with the terms of the Indenture).

          14. Trustee Dealings with Company. Subject to certain limitations, the Trustee under
the Indenture, in its individual or any other capacity, may become owner or pledgee of Notes and
may otherwise deal with the Company or its Affiliates as if it were not Trustee.

          15. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator or stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Notes or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives
and releases all such liability. The waiver and release are part of the consideration for the
issuance of the Notes.

          16. Authentication. This Note shall not be valid until authenticated by the signature
of the Trustee or an authenticating agent.

          17. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

          18. Discharge Prior to Maturity. If the Company deposits with the Trustee or Paying
Agent cash or U.S. Government Securities sufficient to pay the principal or Redemption Price of,
and interest and Additional Interest, if any, on, the Notes to maturity or a specified Redemption
Date and satisfies certain conditions specified in the Indenture, the Company will be discharged
from the Indenture, except for certain Sections thereof.

          19. Governing Law. The validity and interpretation of the Indenture, the Guarantees,
if any, and this Note shall be governed by and construed in accordance with the laws of the state
of New York, but without

B-6

 

giving effect to applicable principles of conflicts of law to the extent
that the application of the law of another jurisdiction would be required thereby. Each party
hereto agrees to submit to the jurisdiction of any New York state court sitting in the Borough of
Manhattan in the City of New York or any federal court sitting in the Borough of Manhattan in the
City of New York in respect of any suit, action or proceeding arising out of or relating to the
Indenture, the Guarantees, if any, and the Notes, and irrevocably accepts for itself and in respect
of its property, generally and unconditionally, jurisdiction of the aforesaid courts in respect of
such suit or action or proceeding arising out of or relating to the Indenture, the Notes and the
Guarantees. Each of the Trustee, the Company and any Guarantor irrevocably waives, to the fullest
extent that it may effectively 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 suit, action or proceeding brought
in any such court and any claim that any such suit, action or proceeding brought in any such court
has been brought in an inconvenient forum.

          20. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on
the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the correctness or accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption or repurchase and reliance may be
placed only on the other identification numbers placed thereon.

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Request may be made to:

Mobile Mini Inc.

7420 South Kyrene Road, Suite 101

Tempe, Arizona 85283

Attention: Secretary

B-7

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

     (I) or (we) assign and transfer this Note to

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

 

(Print or type assignee’s name address and zip code)

	 	 	 	 	 
	and irrevocably appoint
	 	 	 	 
	 

	 	 	 	 
	agent to transfer this
Note on the books of the Company. The agent may substitute another to
act for him.

	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 
	 

	 	 	 	 

(Sign exactly as your name appears
on the face of this Note)
	 	 

	 	 	 	 	 	 	 
	 

	 	Signature Guarantee:	 	 	 	 
	 

	 	 	 	 

(Participant in recognized signature guarantee medallion
program)
	 	 

B-8

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you wish to elect to have all or any portion of this Note purchased by the Company pursuant
to Section 4.10 (“Net Proceeds Offer”) or Section 4.15 (“Change of Control Offer”)
of the Indenture, check the applicable boxes

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o Net Proceeds Offer:	 	o Change of Control Offer:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	in whole
	 	o
	 	 	 	in whole
	 	o
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	in part
	 	o	 	 	 	in part	 	o
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Amount to be
	 	 
	 	 	 	Amount to be
	 	 

	 	 	 	 	purchased: $                    	 	 	 	purchased: $                    

	 	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Signature:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

(Sign exactly as your name appears
on the other side of this Note)
	 	 

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

(Participant in recognized signature guarantee medallion program)
	 	 

	 	 	 	 	 
	Social Security Number or
	 	 	 	 
	Taxpayer Identification Number:
	 	 	 	 
	 

	 	 

	 	 

B-9

 

SCHEDULE OF EXCHANGES OF NOTES

     The following exchanges of a part of this Global Note for Certificated Notes or a part of
another Global Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal amount of	 	 
	 	 	 	 	 	 	this Global Note	 	 
	 	 	Amount of decrease	 	Amount of increase	 	following such	 	Signature of
	 	 	in principal amount	 	in principal amount	 	decrease (or	 	authorized officer of
	Date of Exchange	 	of this Global Note	 	of this Global Note	 	increase)	 	Trustee
	 

	 	 
	 	 
	 	 
	 	 
	 
	 
	 
	 
	 

B-10

 

EXHIBIT C

GUARANTEE

          For value received, [each of] the undersigned hereby unconditionally guarantees to the Holder
of this Note the cash payments in United States dollars of principal of, premium, if any, and
interest on this Note (and including Additional Interest payable thereon) in the amounts and at the
times when due and interest on the overdue principal, premium, if any, and interest, if any, of
this Note, if lawful, and the payment or performance of all other Obligations of the Company under
the Indenture (as defined below) or this Note, to the Holder of this Note and the Trustee, all in
accordance with and subject to the terms and limitations of this Note, Article X of the Indenture
and this Guarantee. This Guarantee will become effective in accordance with Article X of the
Indenture and its terms shall be evidenced therein. The validity and enforceability of this
Guarantee shall not be affected by the fact that it is not affixed to any particular Note.
Capitalized terms used but not defined herein shall have the meanings ascribed to them in the
Indenture dated as of May 7, 2007, between Mobile Mini Inc., a Delaware corporation, as issuer (the
“Company”), Law Debenture Trust Company of New York, as trustee (the “Trustee”) and
Deutsche Bank Trust Company Americas as Paying Agent and Registrar (in each such capacity the
“Paying Agent” and the “Registrar”) (as amended or supplemented, the
“Indenture”).

          THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. Each Guarantor
hereby agrees to submit to the jurisdiction of the courts of the State of New York in any action or
proceeding arising out of or relating to this Guarantee.

     This Guarantee is subject to release upon the terms set forth in the Indenture.

	 	 	 	 	 	 	 
	 	 	[GUARANTOR(S)]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

C-1

 

EXHIBIT C(1)

FORM OF REGULATION S CERTIFICATE

                    ,_______

Law Debenture Trust Company of New York

400 Madison Avenue, 4th Floor

New York, New York 10017

Attention: Corporate Trust Services

			
	           Re:	 	Mobile Mini Inc. (the “Company”)

67/8% Senior Notes due 2015 (the “Notes”)

Dear Sirs:

          This letter relates to U.S. $                      principal amount at maturity of Notes represented
by a certificate (the “Legended Certificate”) which bears a legend outlining restrictions
upon transfer of such Legended Certificate. Pursuant to Section 2.1 of the Indenture (the
“Indenture”) dated as of May 7, 2007 relating to the Notes, we hereby certify that we are
(or we will hold such securities on behalf of) a person outside the United States to whom the Notes
could be transferred in accordance with Rule 904 of Regulation S promulgated under the U.S.
Securities Act of 1933, as amended.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
letter have the meanings set forth in Regulation S.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[Name of Transferee]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signature
	 	 

C(1)-1

 

 

EXHIBIT C(2)

CERTIFICATE TO BE DELIVERED

UPON EXCHANGE OR REGISTRATION OF TRANSFER OF NOTES

                    , ______

Deutsche Bank Services Tennessee Inc.

648 Grassmere Park Road

Nashville, Tennessee 37211

Attention: Transfer Department

			
	          Re:	 	Mobile Mini Inc. (the “Company”)

67/8% Senior Notes due 2015 (the “Notes”)

Dear Sirs:

          This Certificate relates to $                      principal amount of Notes held in

          o book-entry* or o certificated form*

          by                                         (the “Transferor”).

          The Transferor:*

          o has requested the Registrar by written order to deliver in exchange for its beneficial
interest in the Global Note held by the Depositary a Note or Notes in certificated, registered form
of authorized denominations in an aggregate principal amount equal to its beneficial interest in
such Global Note (or the portion thereof indicated above); or

          o
has requested the Registrar by written order to exchange or register the transfer of a Note or
Notes.

          In connection with such request and in respect of each such Note, the Transferor does hereby
certify that Transferor is familiar with the Indenture relating to the above captioned Notes and as
provided in Section 2.6 of such Indenture, the transfer of this Note does not require registration
under the Securities Act (as defined below) because:*

          o Such Note is being acquired for the Transferor’s own account, without transfer.

          o Such Note is being transferred to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”)) in reliance on Rule
144A and accordingly the undersigned does hereby certify that the Note is being transferred to a
person that the transferor reasonably believes is purchasing the Note for its own account, or for
one or more accounts with respect to which such Person exercises

 

			
	*	 	Check applicable box

C(2)-1

 

 

sole investment discretion and the Notes have been transferred in a transaction meeting the
requirements of Rule 144A and in accordance with any applicable securities law of any state of the
United States.

          o Such Note is being transferred to an “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act) in accordance with Regulation D under the Securities Act.

          o Such Note is being transferred pursuant to an exemption from registration in accordance with
Regulation S under the Securities Act.

          o Such Note is being transferred in accordance with Rule 144 under the Securities Act, or
pursuant to an effective registration statement under the Securities Act.

          o Such Note is being transferred in reliance on and in compliance with an exemption from the
registration requirements of the Securities Act, other than Rule 144A, 144 or Rule 904 under the
Securities Act. An Opinion of Counsel to the effect that such transfer does not require
registration under the Securities Act accompanies this Certificate.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[INSERT NAME OF TRANSFEROR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title	 	 

	 	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

C(2)-2

 

 

EXHIBIT D

FORM OF CERTIFICATE TO BE

DELIVERED IN CONNECTION WITH

TRANSFERS TO NON-QIB ACCREDITED INVESTORS

                    ,_______

Law Debenture Trust Company of New York

400 Madison Avenue, 4th Floor

New York, New York 10017

Attention: Corporate Trust Services

			
	           Re:	 	Mobile Mini Inc. (the “Company”)

67/8% Senior Notes due 2015 (the “Notes”)

Dear Sirs:

          In
connection with our proposed purchase of 67/8% Senior Notes due 2015 (the “Notes”) of
the Company, we confirm that:

          1. We understand that any subsequent transfer of the Notes is subject to certain restrictions
and conditions set forth in the Indenture dated as of May 7, 2007 relating to the Notes (the
“Indenture”) and the undersigned agrees to be bound by, and not to resell, pledge or
otherwise transfer the Notes except in compliance with, such restrictions and conditions and the
Securities Act of 1933, as amended (the “Securities Act”).

          2. We understand that the Notes have not been registered under the Securities Act or any other
applicable securities law, and that the Notes may not be offered, sold or otherwise transferred
except as permitted in the following sentence. We agree, on our own behalf and on behalf of any
accounts for which we are acting as hereinafter stated, that if we should offer, sell, transfer,
pledge, hypothecate or otherwise dispose of any Notes, we will do so only (A) to the Company or any
Subsidiary thereof, (B) inside the United States to a “qualified institutional buyer” in compliance
with Rule 144A under the Securities Act, (C) inside the United States to an institutional
“accredited investor” (as defined below) that, prior to such transfer, furnishes to you a signed
letter substantially in the form of this letter, (D) outside the United States to a foreign person
in compliance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the exemption
from registration provided by Rule 144 under the Securities Act (if available), (F) in accordance
with another exemption from the registration requirements of the Securities Act, or (G) pursuant to
an effective registration statement under the Securities Act, and we further agree to provide to
any person purchasing any of the Notes from us a notice advising such purchaser that resales of the
Notes are restricted as stated herein and in the Indenture.

          3. We understand that, with respect to any proposed transfer of any Notes, pursuant to
paragraphs 2(B), 2(C), 2(D) and 2(E) above, we will be required to furnish to you and the Company
such certifications, legal opinions and other information as you and the Company may reasonably
require to confirm that the proposed transfer complies with such restrictions and that with respect
to any transfer in accordance with paragraph 2(F) we will be required to furnish to you and the
Company such legal opinions and other information as you or the Company may reasonably require to
confirm that such transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act. We further understand that the
Notes purchased by us will bear a legend to such effect. We acknowledge that no representation is
made as to the availability of any Rule 144 exemption from the registration requirements of the
Securities Act.

          4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act) and have such knowledge and experience in financial and business
matters as to be capable

D-1

 

of evaluating the merits and risks of our investment in the Notes, and we and any accounts for
which we are acting are acquiring the Notes for investment purposes and not with a view to, or
offer of sale in connection with, any distribution in violation of the Securities Act or the
securities laws of any state of the United States or any other applicable jurisdiction, and we are
each able to bear the economic risk of our or its investment.

          5. We are acquiring the Notes purchased by us for our own account or for one or more accounts
(each of which is an institutional “accredited investor”) as to each of which we exercise sole
investment discretion.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	(Name of Transferee)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signature
	 	 

D-2

 

EXHIBIT E

FORM OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS

PURSUANT TO REGULATION S

                    , ______

Law Debenture Trust Company of New York

400 Madison Avenue, 4th Floor

New York, New York 10017

Attention: Corporate Trust Services

			
	           Re:	 	Mobile Mini Inc. (the “Company”)

67/8% Senior Notes due 2015 (the “Notes”)

Dear Sirs:

          In connection with our proposed sale of $___aggregate principal amount at maturity of
the Notes, we confirm that such sale has been effected pursuant to and in accordance with
Regulation S under the Securities Act of 1933, as amended, and, accordingly, we represent that:

     (1) the offer of the Notes was not made to a person in the United States;

     (2) at the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the transferee was
outside the United States;

     (3) no directed selling efforts have been made by us, any of our affiliates or any
person acting on our behalf in the United States in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

     (4) the transaction is not part of a plan or scheme to evade the registration
requirements of the U.S. Securities Act of 1933; and

     (5) if we are a dealer or a person receiving a selling concession fee or other
remuneration in respect of the Notes, and the proposed transfer takes place within 40 days
of the Issue Date (as defined in the Indenture), or we are an officer or director of the
Company or an Initial Purchaser (as defined in the Indenture), we certify that the proposed
transfer is being made in accordance with Rule 904(b) of Regulation S.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
letter have the meanings set forth in Regulation S.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[Name of Transferor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signature
	 	 

E-1

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