Document:

EX-10.1

CREDIT AGREEMENT

among

CHIQUITA BRANDS L.L.C.,

as Borrower

CHIQUITA BRANDS INTERNATIONAL, INC.,

THE LENDERS NAMED HEREIN

and

COÖPERATIEVE CENTRALE RAIFFEISEN — BOERENLEENBANK B.A.,

“RABOBANK NEDERLAND”, NEW YORK BRANCH,

as Administrative Agent, an L/C Issuer and Swing Line Lender,

and

COÖPERATIEVE CENTRALE RAIFFEISEN — BOERENLEENBANK B.A.,

“RABOBANK NEDERLAND”, NEW YORK BRANCH,

as Lead Arranger and Bookrunner

Dated as of March 31, 2008

1

CREDIT AGREEMENT

THIS CREDIT AGREEMENT, dated as of March 31, 2008, is entered into by and among: (a) CHIQUITA
BRANDS L.L.C., a Delaware limited liability company (the “Borrower”); (b) CHIQUITA BRANDS
INTERNATIONAL, INC., a New Jersey corporation (“CBII”); (c) each of the banks, financial
institutions and other institutional lenders executing a Lender Addendum (collectively, the
“Initial Lenders”); (d) COÖPERATIEVE CENTRALE RAIFFEISEN — BOERENLEENBANK B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH (“Rabobank”), as Administrative Agent (as defined below), as
Swing Line Lender (as defined below), and as an L/C Issuer (as defined below); and (e) Rabobank, as
lead arranger and bookrunner (in such capacities, the “Lead Arranger”).

RECITALS

A. The Borrower has requested that the L/C Issuer and the Lenders make available to it the
Commitments, on the terms and conditions set forth herein, to (i) on the Effective Date, pay
certain transaction fees and expenses and to refinance certain existing indebtedness of the
Borrower, including the indebtedness under the Existing Credit Agreement, and (ii) from time to
time thereafter, provide working capital for the Borrower and its Subsidiaries (including to fund
Permitted Acquisitions (as defined below)).

B. The L/C Issuer and the Lenders have indicated their willingness to provide the Commitments
upon the terms and subject to the conditions set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the above Recitals and the mutual covenants herein
contained, the parties hereto hereby agree as follows:

ARTICLE I INTERPRETATION

SECTION 1.01. Definitions. Unless otherwise indicated in this Agreement or any other
Credit Document, each term set forth below, when used in this Agreement or any other Credit
Document, shall have the respective meaning given to that term below or in the provision of this
Agreement or other document, instrument or agreement referenced below:

“Act” shall have the meaning given to that term in Section 8.16.

“Additional Revolving Lender” shall have the meaning given to that term in Section
2.16(b)(ii).

“Administrative Agent” shall mean, as the context may require, (a) Rabobank, acting as
administrative agent for the Lenders (or any successor administrative agent appointed in accordance
with Section 7.06), or (b) the administrative agent for the Lenders (or any successor
administrative agent appointed in accordance with Section 7.06) acting in its capacity as
collateral agent for the Secured Parties in accordance with Section 7.01(a).

“Affected Lender” shall have the meaning given to that term in Section 2.15.

“Affiliate” shall mean, with respect to any Person, (a) each other Person that,
directly or indirectly, owns or controls, whether beneficially or as a trustee, guardian or other
fiduciary, 10% or more of any class of Equity Securities of such Person (exclusive of any Person
that is permitted to report such ownership pursuant to Schedule 13G under the Exchange Act),
(b) each other Person that controls, is controlled by or is under common control with such Person
or any Affiliate of such Person or (c) that is a CBII Entity, the officers or directors of CBII or
the Borrower; provided, however, that in no case shall the Administrative Agent or
any Lender (by reason of its capacity as such) be deemed to be an Affiliate of any CBII Entity for
purposes of this Agreement. For the purpose of this definition, “control” of a Person shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of its
management and policies, whether through the ownership of voting Equity Securities, by contract or
otherwise.

“Agreement” shall mean this Credit Agreement, as the same may be amended, restated,
supplemented or modified from time to time.

“Anti-Terrorism Laws” shall mean any laws, rules or regulations relating to terrorism,
national security, US embargoes or other sanctions, or money laundering, including Executive Order
No. 13224, the Act and the rules and regulations promulgated or administered by OFAC.

“Applicable Lending Office” shall mean, with respect to any Lender, (a) in the case of
its Base Rate Loans, its US Lending Office and (b) in the case of its LIBOR Loans, its Euro-Dollar
Lending Office.

“Applicable Margin” shall mean, (a) with respect to each Term Loan, the per annum
margin which is determined pursuant to the Term Loan Pricing Grid and added to the Base Rate or
LIBOR Rate, as the case may be, for such Term Loan, (b) with respect to each Revolving Loan, the
per annum margin which is determined pursuant to the Revolving Loan Pricing Grid and added to the
Base Rate or LIBOR Rate, as the case may be, for such Revolving Loan, and (c) with respect to the
calculation of the Letter of Credit Fee Percentage, the per annum margin which is determined
pursuant to the Revolving Loan Pricing Grid and added to the LIBOR Rate for Revolving Loans. The
Applicable Margin with respect to (x) each Term Loan shall be determined as provided in the Term
Loan Pricing Grid and shall change as set forth in the definition of Term Loan Pricing Grid and (y)
each Revolving Loan and the calculation of the Letter of Credit Fee Percentage shall be determined
as provided in the Revolving Loan Pricing Grid and shall change as set forth in the definition of
Revolving Loan Pricing Grid. Notwithstanding the foregoing, the Applicable Margin with respect to
(a) each Term Loan shall be determined for the first six months after the Effective Date based upon
Tier 2 of the Term Loan Pricing Grid and (b) each Revolving Loan and the Letter of Credit Fee
Percentage shall be determined for the first six months after the Effective Date based upon Tier 2
of the Revolving Loan Pricing Grid. Anything contained herein to the contrary notwithstanding, in
the event that any Financial Statement or any Compliance Certificate is shown to be inaccurate
(regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is
discovered), and such inaccuracy, if corrected, would have led to the application of a higher
Applicable Margin with respect to any Loans or the Letter of Credit Fee Percentage for any period
(an “Applicable Period”) than the Applicable Margin applied for such Applicable Period,
then the Borrower shall immediately (a) deliver to the Administrative Agent a corrected Compliance
Certificate for such Applicable Period, (b) determine the Applicable Margin with respect to such
Loans and the Letter of Credit Fee Percentage for such Applicable Period based upon the corrected
Compliance Certificate, and (c) pay to the Administrative Agent the accrued additional interest and
the Letter of Credit Fee Percentage owing as a result of such increased Applicable Margin for such
Applicable Period, which payment shall be promptly distributed to the Appropriate Lenders. This
provision shall not limit the rights of the Administrative Agent and the Lenders with respect to
Section 2.07(d) and Article VI.

“Appropriate Lender” shall mean, at any time, with respect to (a) either the Term Loan
Facility or the Revolving Loan Facility, a Lender that has a Commitment with respect to such
Facility at such time, (b) the Letter of Credit Sublimit, (i) the L/C Issuer and (ii) if any L/C
Borrowings have been refinanced as a Revolving Loan Borrowing that is outstanding at such time,
each Revolving Lender and (c) the Swing Line Sublimit, the Swing Line Lender.

“Approved Fund” shall mean any Fund that is administered, managed or underwritten by
(a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

“Asset Sale” shall mean the sale or disposition of any assets other than (a) sales
permitted under Section 5.02(c)(i), 5.02(c)(iii), 5.02(c)(v) or
5.02(c)(vi), (b) transfers, sales or leases between Borrower Entities, (c) substantially
equivalent exchanges of assets at Fair Market Value and upon terms at least as favorable as an
arm’s-length transaction with unaffiliated Persons and (d) the sale or disposition of, or
collection on, the Banacol Notes, or any sale or other disposition of any Equity Securities and/or
assets of Landec, Atlanta AG or Meneu by any of the CBII Entities (the transactions permitted by
clauses (a) through (d) herein being referred to as “Permitted Sales”).

“Assignee Lender” shall have the meaning given to that term in
Section 8.05(c)(i).

“Assignment” shall have the meaning given to that term in Section 8.05(c)(i).

“Assignment Agreement” shall have the meaning given to that term in
Section 8.05(c)(i).

“Assignment Effective Date” shall have, with respect to each Assignment Agreement, the
effective date of the Assignment as set forth therein.

“Assignor Lender” shall have the meaning given to that term in
Section 8.05(c)(i).

“Atlanta AG” shall mean Atlanta Aktiengesellschaft, a company organized under the laws
of Germany.

“Banacol Notes” shall mean the non-negotiable promissory notes from Invesmar Limited,
a British Virgin Islands company, to any of the Borrower Entities, as any of the same may be
amended, restated, renewed, replaced, supplemented or modified from time to time.

“Bankruptcy Code” shall mean 11 U.S.C. Section 101 et seq.

“Base Rate” shall mean a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the higher of:

(a) the rate of interest per annum then most recently quoted by the Administrative Agent to be
its base rate for Dollars loaned in the US; and

(b) 1/2 of 1% per annum above the Federal Funds Rate.

The Base Rate is an index rate and is not necessarily intended to be the lowest or best rate
of interest charged to other customers in connection with extensions of credit or to other banks.
Any change in the rate of interest resulting from a change in either of the above rates shall be
effective as of the opening of business of the Administrative Agent on the day of such change.

“Base Rate Loan” shall mean, at any time, a Loan which then bears interest as provided
in Section 2.01(d)(i).

“Blocked Person” shall have the meaning given to that term in
Section 4.01(dd).

“Board of Directors” shall mean, with respect to any Person, the Board of Directors,
Board of Managers or similar governing body of such Person or any duly authorized committee or
delegated officers of such Board of Directors.

“Board Resolution” shall mean a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Borrower to have been duly adopted by its respective Board of Directors
and to be in full force and effect on the date of such certification, and delivered to the
Administrative Agent.

“Borrower” shall have the meaning given to that term in the introductory paragraph
hereof.

“Borrower EBITDA” shall mean EBITDA in respect of the Borrower Entities on a
consolidated basis, and after deducting CBII Overhead Expenses.

“Borrower Entities” shall mean the Borrower and its Subsidiaries.

“Borrower Funded Debt” shall mean Funded Debt in respect of the Borrower Entities, on
a consolidated basis.

“Borrower Leverage Ratio” shall mean the ratio of (a) Borrower Funded Debt, as of the
end of any fiscal quarter, to (b) Borrower EBITDA for the four fiscal quarter period ended as of
the end of such fiscal quarter.

“Borrowing” shall mean a Term Loan Borrowing, a Revolving Loan Borrowing or a Swing
Line Borrowing, as the context may require.

“Business Day” shall mean any day on which (a) commercial banks are not authorized or
required by law to close in New York, New York and (b) if such Business Day is related to a LIBOR
Loan, dealings in Dollar deposits are carried out in the London interbank market.

“Capex Carryover” shall have the meaning given to that term in
Section 5.03(c).

“Capital Adequacy Requirement” shall have the meaning given to that term in
Section 2.11(d).

“Capital Asset” shall mean, with respect to any Person, any tangible, fixed or capital
asset owned or leased (in the case of a Capital Lease) by such Person.

“Capital Expenditures” shall mean, with respect to any Person and any period, all
amounts expended by such Person during such period to acquire or to construct Capital Assets
computed in accordance with GAAP.

“Capital Leases” shall mean any and all lease obligations that, in accordance with
GAAP, are required to be capitalized on the books of a lessee.

“Cash Collateralize” shall mean to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Revolving Lenders, as Collateral
for the L/C Obligations, cash or deposit account balances in an amount equal to the L/C Obligations
pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent
and the L/C Issuer (which documents are hereby consented to by the Lenders). Derivatives of such
term shall have a corresponding meaning.

“CBCBV” shall mean Chiquita Banana Company B.V., an entity organized under the laws of
The Netherlands.

“CBII” shall have the meaning given to that term in the introductory paragraph hereof.

“CBII Entities” shall mean CBII and its Subsidiaries.

“CBII Overhead Expenses” shall mean the expenses of CBII, including for employing and
compensating officers and employees and in fulfilling its obligations as a public company and
administering its Subsidiaries’ activities, entering into space leases and other agreements in
connection with such business activities, and having and maintaining various employee benefit plans
for it, its Subsidiaries and their employees; provided that any such expenses shall be
excluded to the extent such expenses are attributable to or incurred for any Subsidiary of CBII
that is not a Borrower Entity or Permitted Joint Venture and which (a) is not dormant and has
active business operations or (b) has more than de minimis profits, earnings, and/or assets.

“Change of Control” shall mean an event or series of events by which any of the
following occurs:

(a) any Exchange Act Person is or becomes the beneficial owner, directly or indirectly, of
more than 50% of the total voting power of all outstanding classes of voting capital stock of CBII;

(b) the adoption of a plan relating to the liquidation or dissolution of CBII or the Borrower;

(c) on any date, a majority of CBII’s Board of Directors does not consist of Persons (i) who
were directors at the Effective Date (“Continuing Directors”) or (ii) whose election or
nomination as directors was approved by at least 2/3 of the directors then in office who are
Continuing Directors or whose election or nomination was previously so approved;

(d) CBII fails to own directly or indirectly 100% of the Borrower; or

(e) except as a result of a transaction permitted by Section 5.02(c),
Section 5.02(d)(i) or Section 5.02(d)(ii), the Borrower fails to own, directly or
indirectly, 100% of each of the Subsidiary Guarantors and the other Significant Subsidiaries (other
than the Borrower).

“Change of Law” shall have the meaning given to that term in Section 2.11(b).

“Clayton County Lease” shall mean that certain Lease Agreement, dated as of April 1,
2004, between the Development Authority of Clayton County, Georgia, and Fresh-Cuts, LLC, as
successor in interest to Fresh-Cuts Incorporated, as amended, restated, supplemented or modified
from time to time.

“Clayton County Leasehold Mortgage” shall mean that deed to secure debt, dated as of
the Effective Date, in substantially the form of Exhibit Q-2 covering the leasehold
interest and any and all other interests of the lessee (including any residual interests of the
lessee and any purchase option held by the lessee or any other Loan Party) created under the
Clayton County Lease (together with the Assignments of (Sub)leases and Rents referred to therein,
in each case as amended, restated, supplemented or modified from time to time).

“Clayton County Property” shall mean that certain property located at 1361 Southern
Road, Morrow, Clayton County, Georgia, subject to the Clayton County Lease.

“Co-Documentation Agents” shall mean ING Capital LLC and Barclays Bank PLC, acting
together in their capacities as co-documentation agents.

“Co-Managing Agents” shall mean Royal Bank of Canada and The PrivateBank and Trust
Company, acting together in their capacities as co-managing agents.

“Collateral” shall have the meaning ascribed to the term “Collateral” or “Pledged
Collateral” under the respective Security Documents and shall include any and all property and
assets from time to time subject to or intended to be subject to the Lien created pursuant to the
Security Documents.

“Collateral Agent” shall have the meaning given to that term in
Section 7.01(a).

“Commitment Fee Percentage” shall mean 0.50% per annum.

“Commitment Fees” shall have the meaning given to that term in
Section 2.05(b).

“Commitment Letter” shall mean the Commitment Letter dated February 4, 2008, and
entered into by and among Rabobank, CBII and the Borrower.

“Commitments” shall mean the Revolving Loan Commitments and the Term Loan Commitments
and “Commitment” shall mean the Revolving Loan Commitment and the Term Loan Commitment of
any Lender.

“Communications” shall have the meaning given to that term in
Section 8.01(c)(i).

“Compliance Certificate” shall have the meaning given to that term in
Section 5.01(a)(iii).

“Computation Date” shall have the meaning given to that term in
Section 2.02(k).

“Conduit Lender” shall mean any special purpose corporation organized and administered
by any Lender for the purpose of making Loans otherwise required to be made by such Lender and
designated by such Lender in a written instrument; provided that the designation by any
Lender of a Conduit Lender shall not relieve the designating Lender of any of its obligations to
fund a Loan under this Agreement if, for any reason, its Conduit Lender fails to fund any such
Loan, and the designating Lender (and not the Conduit Lender) shall have the sole right and
responsibility to deliver all consents and waivers required or requested under this Agreement with
respect to its Conduit Lender, and provided, further, that no Conduit Lender shall
(a) be entitled to receive any greater amount pursuant to this Agreement than the designating
Lender would have been entitled to receive in respect of the extensions of credit made by such
Conduit Lender or (b) be deemed to have any Commitment.

“Consolidated” shall mean, as the context may require, the consolidation of the
accounts of the Borrower Entities or the CBII Entities, in each case in accordance with GAAP.

“Consolidated Adjusted Leverage Ratio” shall mean the ratio of (a) Consolidated Funded
Debt, as of the end of any fiscal quarter, to (b) Consolidated EBITDA for the four fiscal quarter
period ended as of the end of such fiscal quarter.

“Consolidated EBITDA” shall mean EBITDA in respect of the CBII Entities on a
consolidated basis.

“Consolidated Funded Debt” shall mean Funded Debt in respect of the CBII Entities on a
consolidated basis, minus the outstanding principal amount of the Indebtedness incurred under the
Convertible Notes Indenture.

“Container Assets” shall mean refrigerated and unrefrigerated containers, chassis and
generator assets used by any of the CBII Entities to transport products.

“Contingent Obligation” shall mean, with respect to any Person, (a) any Guarantee
given by that Person and (b) any direct or indirect obligation or liability, contingent or
otherwise, of that Person (i) in respect of any Surety Instrument issued for the account of that
Person or as to which that Person is otherwise liable for reimbursement of drawings or payments,
(ii) as a general partner or joint venturer with liability in any partnership or joint venture,
(iii) to purchase any materials, supplies or other property from, or to obtain the services of,
another Person if the relevant contract or other related document or obligation requires that
payment for such materials, supplies or other property, or for such services, shall be made
regardless of whether delivery of such materials, supplies or other property is ever made or
tendered, or such services are ever performed or tendered or (iv) in respect of any Rate Contract
that is not entered into in connection with a bona fide hedging operation that provides offsetting
benefits to such Person or, in the case of a Borrower Entity, to one or more of the Borrower
Entities. The amount of any Contingent Obligation (other than a Guarantee) shall be deemed equal
to the probable liability in respect thereof, and shall, with respect to clause (b)(iv)
above, be marked to market on a current basis.

“Contractual Obligation” of any Person shall mean any indenture, note, lease, loan
agreement, security, deed of trust, trust deed, deed to secure debt, mortgage, security agreement,
Guarantee, instrument, contract, agreement or other form of contractual obligation or undertaking
to which such Person is a party or by which such Person or any of its property is bound.

“Convertible Notes” shall mean the 4.25% Convertible Senior Notes due 2016 of CBII.

“Convertible Notes Documents” shall mean the Convertible Notes Indenture and all other
agreements, instruments and other documents pursuant to which any Convertible Notes are issued, in
each case as amended, restated, supplemented or modified from time to time to the extent permitted
under the Credit Documents.

“Convertible Notes Indenture” shall mean that certain Indenture dated as of February
1, 2008, between CBII, as issuer, and LaSalle Bank National Association, as trustee, and the First
Supplemental Indenture thereto, dated as of February 12, 2008, in respect of the Convertible Notes,
as further amended, restated, supplemented or modified from time to time to the extent permitted
under the Credit Documents.

“Copyright Security Agreements” shall mean the Copyright Security Agreements executed
and delivered by the Grantors party thereto from time to time, as the same may be amended,
restated, supplemented or modified from time to time, and substantially in the form of
Exhibit M.

“Credit Documents” shall mean this Agreement, the Notes, each Guarantee Agreement, the
Security Documents, each Letter of Credit Application, each Notice of Borrowing, each Notice of
Interest Period Selection, each Notice of Conversion, the Fee Letter and the Post Effective Date
Requirements Letter Agreement, including any consents or waivers, as the same may be amended,
restated, supplemented or modified from time to time. For the avoidance of doubt, Lender Rate
Contracts shall not qualify as Credit Documents for the purposes of this Agreement or any other
Credit Document or any Obligations in connection therewith; provided, however, that
obligations owing to Secured Parties under Lender Rate Contracts shall constitute Secured
Obligations and shall be secured to the extent provided in this Agreement.

“Credit Event” shall mean the making of any Loan (including a Swing Line Loan), the
making of an L/C Credit Extension or the increase of the Revolving Loan Commitment in accordance
with Section 2.16.

“Current Assets” of any Person shall mean all assets of such Person that would, in
accordance with GAAP, be classified as current assets of a company conducting a business the same
as or similar to that of such Person, after deducting adequate reserves in each case in which a
reserve is proper in accordance with GAAP.

“Current Liabilities” of any Person shall mean (a) all Indebtedness of such Person
that by its terms is payable on demand or matures within one year after the date of determination
(excluding any Indebtedness renewable or extendible, at the option of such Person, to a date more
than one year from such date or arising under a revolving credit or similar agreement that
obligates the lender or lenders to extend credit during a period of more than one year from such
date) and (b) all other items (including taxes accrued as estimated) that in accordance with GAAP
would be classified as current liabilities of such Person.

“De Minimis US Subsidiaries” shall mean all direct or indirect Subsidiaries of the
Borrower which are organized under the laws of the US or any state thereof and which as of the end
of the most recent fiscal year do not have annual revenue or assets in excess of $5,000,000
individually and $50,000,000 in the aggregate (excluding those Subsidiaries that have been
designated by the Borrower as a US Subsidiary pursuant to Section 5.01(i)(ii)).

“Debtor Relief Laws” shall mean the Bankruptcy Code, and all other applicable
liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Governmental Rules from time to time in effect affecting
the rights of creditors generally.

“Default” shall mean an Event of Default or any event or circumstance not yet
constituting an Event of Default which, with the giving of any notice or the lapse of any period of
time or both, would become an Event of Default.

“Default Rate” shall have the meaning given to that term in Section 2.07(d).

“Defaulting Lender” shall mean a Lender which has failed to fund its portion of any
Borrowing which it is required to fund under this Agreement and has continued in such failure for
three Business Days after written notice from the Administrative Agent.

“Designated Non-US Currency Market” shall mean, with respect to any Non-US Currency
Letter of Credit, the Non-US Currency Market designated by the Administrative Agent as appropriate
for such Non-US Currency Letter of Credit.

“Distributions” shall mean dividends (in cash, property or obligations) on, or other
payments or distributions on account of, or the setting apart of money for a sinking or other
analogous fund for, any Equity Securities of any Person, or the purchase, redemption, retirement or
other acquisition of, any Equity Securities of any CBII Entity (other than a Borrower Entity) by a
Borrower Entity or of any warrants, options or other rights to acquire the same, but excluding
dividends payable solely in shares of common stock of any Borrower Entity to any other Borrower
Entity or payable solely in shares of common stock of CBII.

“DOJ Liability” shall mean the fine in an aggregate amount equal to $25,000,000 plus
interest thereon to be paid by CBII in five annual installments to the US, commencing September,
2007, resulting from the investigation by the U.S. Department of Justice into certain payments made
by a former Colombian subsidiary of CBII and related matters.

“Dollars” and “$” shall mean the lawful currency of the US and, in relation to
any payment under this Agreement, same day or immediately available funds.

“Due Inquiry” shall mean any and all inquiry, investigation and analysis which a
prudent Person would undertake and complete with diligence with the intent of coming to a
reasonable understanding of facts or circumstances, and shall include, where appropriate, a review
of relevant records in such Person’s possession and inquiry of appropriate employees, officers and
directors, and shall mean such inquiry, investigation, and analysis has occurred as of the
Effective Date and as of the date of each supplement provided pursuant to Section 5.01(a)
or 5.01(k).

“EBITDA” shall mean, for any period, Net Income for such period of a Person and its
Subsidiaries determined on a consolidated basis in accordance with GAAP plus, without duplication,
and to the extent deducted in determining such Net Income for such period, the sum of the following
for such period: (a) Interest Expense, net of interest income, for such period; (b) income tax
expense for such period; (c) depreciation and amortization expense for such period; (d)
extraordinary items of non-cash loss for such period; (e) non-cash writedowns, including any
non-cash asset impairment charges under SFAS No. 142 or SFAS No. 144; (f) for any period subsequent
to September 30, 2006, but prior to September 30, 2007, costs incurred related to restoring
consumer confidence in spinach and packaged salad products in an aggregate amount of $6,000,000;
and (g) non-cash stock based compensation expense, and minus, without duplication, and to the
extent added in determining such Net Income for such period, the aggregate amount of extraordinary
items of income. Pro forma credit shall be given for any acquired Person’s EBITDA or the
identifiable EBITDA of identifiable business units or operations acquired during such period
calculated in a similar fashion (so long as such acquisition was permitted by this Agreement) as if
owned on the first day of the applicable period; and any Person or identifiable business units or
operations sold, transferred or otherwise disposed of during such period will be treated as if not
owned during the entire applicable period. When calculating EBITDA for purposes of determining
compliance with the terms and covenants of this Agreement, EBITDA shall be calculated without
giving effect to (i) the amortization of any expenses incurred by any of the CBII Entities in
connection with the Existing Credit Agreement (including the “Credit Documents” referred to
therein), the Credit Documents referred to herein and the offering of the Senior Notes (71/2%), the
Senior Notes (87/8%) and the Convertible Notes, and in each such case the
application of the proceeds therefrom, (ii) any costs or expenses incurred by any of the CBII
Entities in connection with the consent solicitation for the Senior Notes (71/2%), (iii) any
after-tax income or loss from discontinued operations to the extent established on or before the
Effective Date in accordance with GAAP and (iv) any costs and expenses incurred by any of the
Borrower Entities in connection with any Permitted Acquisition, in an aggregate amount for all
Permitted Acquisitions not to exceed $10,000,000.

“Effective Amount” shall mean (a) with respect to Revolving Loans and Swing Line Loans
on any date, the aggregate outstanding principal amount thereof after giving effect to (i) any
borrowings and prepayments or repayments of Revolving Loans and Swing Line Loans and (ii) with
respect to Swing Line Loans, any risk participation amongst the Revolving Lenders, as the case may
be, occurring on such date and (b) with respect to any L/C Obligations on any date, the amount of
such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such
date and any other changes in the aggregate amount of the L/C Obligations as of such date
(provided that in the case of any Non-US Currency Letter of Credit or Non-US Currency
Unreimbursed Amount, the calculation shall be based on the US Currency Equivalent of the amount of
such Non-US Currency L/C Obligations on the Non-US Currency Business Day preceding such date),
including as a result of any reimbursements of outstanding unpaid drawings under any Letters of
Credit or any reductions in the maximum amount available for drawing under Letters of Credit taking
effect on such date.

“Effective Date” shall mean the earlier of (a) the time and Business Day on which the
consummation of all conditions precedent contemplated in Section 3.01 shall have been
fulfilled and the Administrative Agent shall have notified the Borrower and Lenders of the
Administrative Agent’s satisfaction that such conditions have been met and (b) the date on which
(i) a Credit Event shall have occurred and (ii) the Administrative Agent, CBII and the Borrower
shall have entered into a post-Effective Date requirements letter agreement (“Post Effective
Date Requirements Letter Agreement”) setting forth the terms and dates for post-Effective Date
compliance with unfulfilled conditions precedent contemplated in Section 3.01 in respect of
Collateral delivery (free from adverse claims) and perfection matters relating to certain Non-US
Subsidiaries and Non-US jurisdictions and certain other matters as specified therein;
provided that the Administrative Agent may condition the occurrence of any one or all
subsequent Credit Events on satisfaction of the terms of the Post Effective Date Requirements
Letter Agreement.

“Eligible Assignee” shall mean a Person which is (a) a commercial bank organized under
the laws of the US, or any state thereof, and, to the extent such Person is or pursuant to the
contemplated Assignment shall become a Revolving Lender, having a combined capital and surplus of
at least $500,000,000, (b) a commercial bank organized under the laws of any other country which is
a member of the Organization for Economic Cooperation and Development (the “OECD”), or a
political subdivision of any such country, and, to the extent such Person is or pursuant to the
contemplated Assignment shall become a Revolving Lender, having a combined capital and surplus of
at least $500,000,000; provided that such bank is acting through a branch or agency located
in the country in which it is organized or another country which is also a member of the OECD,
(c) a Person that is primarily engaged in the business of commercial banking and that is (i) a
Subsidiary of a Lender, (ii) a Subsidiary of a Person of which a Lender is a Subsidiary or (iii) a
Person of which a Lender is a Subsidiary, (d) any (i) savings bank, savings and loan association,
or financial institution or (ii) insurance company engaged in the business of writing insurance,
which bank, association, institution or company, in any case (A) to the extent such Person is or
pursuant to the contemplated Assignment shall become a Revolving Lender, has a combined capital and
surplus of at least $500,000,000, (B) is engaged in the business of lending money and extending
credit under credit facilities substantially similar to those extended under this Agreement and
(C) is operationally and procedurally able to meet the obligations of a Lender hereunder to the
same degree as a commercial bank, (e) an Approved Fund or (f) any other Person (other than an
individual) approved by (A) the Administrative Agent, (B) in the case of an assignment of a
Revolving Loan Commitment, the L/C Issuer and the Swing Line Lender and (C) unless an Event of
Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably
withheld or delayed); provided, that no CBII Entity shall be an Eligible Assignee.

“Employee Benefit Plan” shall mean any employee benefit plan within the meaning of
Section 3(3) of ERISA maintained or contributed to by the Borrower or any ERISA Affiliate, other
than a Multiemployer Plan.

“Environmental Damages” shall mean all claims, judgments, damages, losses, penalties,
liabilities (including strict liability), costs and expenses, including costs of investigation,
remediation, defense, settlement and attorneys’ fees and consultants’ fees, that are incurred at
any time (a) as a result of the existence of any Hazardous Material upon, about or beneath any real
property owned by the Significant Parties or migrating or threatening to migrate to or from any
such real property, (b) arising from any investigation, proceeding or remediation of any location
at which the Significant Parties or any predecessors have directly or indirectly disposed of
Hazardous Materials, (c) arising in any manner whatsoever out of any violation of Environmental
Laws by the CBII Entities or with respect to any real property owned by the CBII Entities or
(d) arising from any exposure or alleged exposure of any Hazardous Materials.

“Environmental Laws” shall mean the Clean Air Act, 42 U.S.C. Section 7401 et
seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1251 et seq.; the
Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901 et seq.; the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (including the
Superfund Amendments and Reauthorization Act of 1986, “CERCLA”), 42 U.S.C. Section 9601
et seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the
Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq.; the Emergency Planning
and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Mine Safety
and Health Act of 1977, 30 U.S.C. Section 801 et seq.; the Safe Drinking Water Act, 42
U.S.C. Section 300f et seq.; and all other Governmental Rules relating to the protection of
human health and safety and the environment, including all Governmental Rules pertaining to the
reporting, licensing, permitting, transportation, storage, disposal, investigation or remediation
of emissions, discharges, releases, or threatened releases of Hazardous Materials into the air,
surface water, groundwater, or land; or relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transportation or handling of Hazardous Materials.

“Equity Securities” of any Person shall mean (a) all common stock, preferred stock,
participations, shares, partnership interests, limited liability company interests or other equity
or similar interests in and of such Person (regardless of how designated and whether or not voting
or non-voting) and (b) all warrants, options and other rights to acquire any of the foregoing (but
excluding in all cases any debt security that is convertible into, or exchangeable for, such Equity
Securities).

“ERISA” shall mean the Employee Retirement Income Security Act of 1974.

“ERISA Affiliate” shall mean any Person which is treated as a single employer with any
Significant Party under Section 414 of the IRC.

“ERISA Event” shall mean (a) a Reportable Event with respect to a Pension Plan, (b) a
withdrawal by any Significant Party or any ERISA Affiliate from a Pension Plan subject to
Section 4063 of ERISA during a plan year in which it was a “substantial employer” (as defined in
Section 4001(a)(2) of ERISA) or a substantial cessation of operations at a facility that is treated
as such a withdrawal under Section 4062(e) of ERISA which could reasonably be expected to give rise
to any liability on account of such withdrawal, (c) a complete or partial withdrawal by the
Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization (within the meaning of Section 4241 of ERISA), (d) the filing of a notice of
intent to terminate, the treatment of a Pension Plan or Multiemployer Plan amendment as a
termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the
Borrower or any ERISA Affiliate to terminate a Pension Plan to completely or partially withdraw
from a Multiemployer Plan, (e) the receipt of notice of an application by the PBGC to institute
proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan, or the receipt by the Borrower or any ERISA Affiliate of a notice
from a Multiemployer Plan that such action has been taken by the PBGC with respect to such
Multiemployer Plan or (f) the imposition of any liability under Title IV of ERISA, other than PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA
Affiliate.

“Euro-Dollar Lending Office” shall mean, with respect to any Lender, (a) initially,
its office designated as such to the Administrative Agent (or, in the case of any Lender which
becomes a Lender by an assignment pursuant to Section 8.05(c), its office designated as
such in the applicable Assignment Agreement) and (b) subsequently, such other office or offices as
such Lender may designate to the Administrative Agent as the office at which such Lender’s LIBOR
Loans will thereafter be maintained and for the account of which all payments of principal of, and
interest on, such Lender’s LIBOR Loans will thereafter be made.

“Event of Default” shall have the meaning given to that term in Section 6.01.

“Evergreen Letter of Credit” shall have the meaning given to that term in
Section 2.02(b)(iii).

“Excess Cash Flow” shall mean, for any period,

(a) the sum of (without duplication):

(i) Consolidated net income (or loss) of the CBII Entities for such period calculated in
accordance with GAAP plus

(ii) the aggregate amount of all non-cash charges deducted in arriving at such Consolidated
net income (or loss), but excluding non-cash expenses to the extent they represent an accrual or
reserve for cash payments in any future period plus

(iii) if there was a net increase in Consolidated Current Liabilities of the CBII Entities
during such period, the amount of such net increase plus

(iv) if there was a net decrease in Consolidated Current Assets (excluding cash and Temporary
Cash Investments) of the CBII Entities during such period, the amount of such net decrease plus

(v) any Capex Carryover from a prior period permitted to be used for Capital Expenditures
during such period to the extent not so used during such period less

(b) the sum of (without duplication):

(i) the aggregate amount of all non-cash credits included in arriving at such Consolidated net
income (or loss) (other than non-cash credits that were accrued in the ordinary course of business)
plus

(ii) if there was a net decrease in Consolidated Current Liabilities of the CBII Entities
during such period, the amount of such net decrease plus

(iii) if there was a net increase in Consolidated Current Assets (excluding cash and Temporary
Cash Investments) of the CBII Entities during such period, the amount of such net increase plus

(iv) the aggregate amount of Capital Expenditures of the CBII Entities paid in cash during
such period solely to the extent permitted by this Agreement plus

(v) the aggregate amount of all regularly scheduled principal payments of Funded Debt of the
CBII Entities made during such period plus

(vi) the aggregate principal amount of all optional prepayments of Funded Debt of the CBII
Entities (other than Funded Debt that is revolving in nature and available to be reborrowed) made
during such period plus

(vii) the aggregate principal amount of all commitment reductions in the Revolving Loan
Facility made during such period plus

(viii) the aggregate principal amount of all mandatory prepayments of the Term Loan Facility
made during such period pursuant to Section 2.06(c) plus

(ix) the Capex Carryover for such period plus

(x) the aggregate amount of Distributions made by the Borrower to CBII in respect of the
Borrower’s Equity Securities to the extent such Distributions are permitted to be made pursuant to
Section 5.02(f) but excluding Distributions made to reimburse CBII for CBII Overhead
Expenses already deducted in calculating the Consolidated net income of the CBII Entities and
Distributions to CBII used by CBII to make payments in respect of Funded Debt included in
clauses (b)(v) and (b)(vi) above.

“Exchange Act” shall mean the Securities Exchange Act of 1934.

“Exchange Act Person” shall have the meaning given to “Person” in Sections 13(d) and
14(d) of the Exchange Act.

“Executive Order 13224” shall mean executive Order 13224 on Terrorist Financing,
effective September 24, 2001.

“Existing Credit Agreement” shall mean that certain amended and restated credit
agreement dated as of June 28, 2005, with the lenders party thereto, Wachovia Bank, National
Association, as administrative agent for such lenders, as swing line lender and as letter of credit
issuer, Wells Fargo, as a letter of credit issuer, Wachovia Capital Markets, LLC, as a co-lead
arranger, Morgan Stanley Senior Funding, Inc., as syndication agent and a co-lead arranger, and
Goldman Sachs Credit Partners L.P., as documentation agent, as amended prior to the date hereof.

“Existing Indebtedness” shall mean Indebtedness of each Loan Party and its
Subsidiaries outstanding immediately before the occurrence of the Effective Date.

“Existing Swap Counterparties” shall mean those Lenders (as defined in the Existing
Credit Agreement) and Affiliates thereof that are parties to Lender Rate Contracts (as defined in
the Existing Credit Agreement) dated prior to the Effective Date, in each case as more particularly
described on Schedule V.

“Exportadora Chile” shall mean Exportadora Chiquita-Enza Chile Limitada, a Chilean
limitada.

“Extraordinary Receipt” shall mean any cash received by or paid to or for the account
of any Person not in the ordinary course of business, including tax refunds received in connection
with or as a result of any settlement or audit that are in excess of $1,000,000 in any fiscal year,
pension plan reversions, proceeds of insurance (including any key man life insurance but excluding
proceeds of business interruption insurance to the extent such proceeds constitute compensation for
lost earnings), condemnation awards (and payments in lieu thereof), indemnity payments and any
purchase price adjustment received in connection with any purchase agreement.

“Facility” shall mean the Term Loan Facility, the Revolving Loan Facility, the Letter
of Credit Sublimit or the Swing Line Sublimit.

“Fair Market Value” shall mean the price that would be paid in an arm’s-length
transaction between an informed and willing seller under no compulsion to sell and an informed and
willing buyer under no compulsion to buy.

“Federal Funds Rate” shall mean, for any day, the rate per annum (rounded upwards to
the nearest 1/100 of 1%) 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 by the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such
day shall be such rate on such transactions on the next preceding Business Day as so published on
the next succeeding Business Day and (b) if no such rate is so published on such next succeeding
Business Day, the Federal Funds Rate for such day shall be the average rate charged to Rabobank on
such day on such transactions as determined by the Administrative Agent.

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

“Fee Letter” shall mean the Fee Letter dated the date hereof and entered into by and
between the Borrower and Rabobank.

“Financial Covenants” shall mean, collectively, the Borrower Leverage Ratio, the Fixed
Charge Coverage Ratio and the Maximum Capital Expenditures covenants set forth in Sections
5.03(a), (b) and (c), respectively.

“Financial Statements” shall mean, with respect to any accounting period for any
Person, statements of income and cash flows of such Person for such period, and a balance sheet of
such Person as of the end of such period setting forth in each case in comparative form figures for
the corresponding period in the preceding fiscal year, all prepared in reasonable detail in
accordance with GAAP, except that interim Financial Statements may omit footnotes, statement of
shareholders’ equity and year-end adjustments.

“Fixed Charge Coverage Ratio” shall mean, as at any date of determination,
(a) Borrower EBITDA for the four fiscal quarter period ended as of the close of the most recently
ended fiscal quarter, plus (i) net lease expense of the Borrower Entities for such period and
(ii) net rent expense of the Borrower Entities for such period, divided by (b) Fixed
Charges for the four fiscal quarter period ended as of the close of the most recently ended fiscal
quarter. Anything contained herein to the contrary notwithstanding, the calculation of “net lease
expense”, “net rent expense” and “Fixed Charges” shall exclude that portion of any lease or rent
expense arising under any timecharter or spot charter of ocean-going vessels to the extent
reasonably determined by the Borrower to be attributable to expenses related to the operation of
such vessel and not to the lease or rental of the vessel itself.

“Fixed Charges” shall mean, for any period, the sum, for the Borrower Entities
(determined on a consolidated basis without duplication in accordance with GAAP), of the following
items: (a) cash Interest Expense, net of cash interest income, for such period (excluding the
amortization of any expenses incurred by any of the Borrower Entities in connection with the
Existing Credit Agreement (including the “Credit Documents” referred to therein), the Credit
Documents referred to herein and the offering of the Senior Notes (71/2%), the Senior Notes
(87/8%) and the Convertible Notes, and in each such case the application of
the proceeds therefrom); plus (b) net lease expense; plus (c) net rent expense; plus (d)
Distributions and dividends, or cash advances or any other funds, however characterized, paid by
any Borrower Entity to CBII pursuant to Section 5.02(f)(ii), excluding any such payments
made to CBII for the purpose of discharging the DOJ Liability in an aggregate amount not to exceed
$5,000,000 plus interest thereon in any fiscal year. Pro forma effect shall be given, in respect
of the acquisition of a Person or identifiable business units or operations permitted by this
Agreement, to any Indebtedness incurred to finance such acquisition as if owed on the first day of
the applicable period during which such acquisition was made.

“Food-Related Businesses” shall mean businesses or operations involving food or food
products, including any business related, ancillary or complementary thereto; provided
that, if in the case of any business acquired or joint venture entered into by any of the CBII
Entities after the Effective Date, such business or joint venture is primarily engaged in one or
more Food-Related Businesses, then such acquired business or joint venture shall be deemed to be
engaged in Food-Related Businesses.

“Fund” shall mean any Person (other than an individual) that is or will be engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

“Funded Debt” shall mean all of the following, without duplication, of any Person and
its Subsidiaries on a consolidated basis: (a) all indebtedness for borrowed money (including that
evidenced by senior or subordinated debts or notes); (b) the unpaid principal balance of Capital
Lease obligations as presented on a balance sheet in accordance with GAAP; (c) the undrawn balance
of issued and outstanding letters of credit and the aggregate amount of unreimbursed drawings under
letters of credit; (d) the aggregate amount of Synthetic Lease Principal Components or similar
arrangements; (e) the principal portion of obligations (i) in respect of the deferred purchase
price of property or services (other than trade accounts payable) or (ii) under conditional sale or
other title retention agreements relating to property purchased by such Person (other than
customary reservations or retentions of title under agreements with suppliers, and in either case
entered into in the ordinary course of business and not exceeding 90 days (180 days for up to
$12,000,000 in the aggregate outstanding at any one time for seasonal arrangements)); (f) preferred
stock or other Equity Securities providing for mandatory redemptions, sinking fund or like payments
prior to the Termination Date; (g) Funded Debt of any partnership or joint venture (other than a
partnership or joint venture that is itself a corporation, limited liability company, or such other
entity providing equivalent protection from pass through liability, or such Funded Debt is
expressly made non-recourse to such Person); (h) obligations owing in connection with any on or off
balance sheet financing of receivables (whether or not reflected on a balance sheet of such Person
and its Subsidiaries prepared in accordance with GAAP) involving any CBII Entity; and
(i) Guarantees by the specified Person or its Subsidiaries of the kind of Indebtedness described in
clauses (a) through (h) above, other than reimbursement obligations with respect to
Guarantees provided by financial institutions to Guarantee the payment of Governmental Charges or
other regulatory obligations in the normal course of business. Additionally, the term “Funded
Debt” includes all Funded Debt of others secured by a Lien on any asset of the specified Person
(whether or not such Funded Debt is assumed by the specified Person) (the amount of such Funded
Debt as of any date being deemed to be the lesser of the value of such property or assets as of
such date or the principal amount of such Funded Debt of such other Person) and, to the extent not
otherwise included, the Guarantee by such Person of any Funded Debt of any other Person; but the
term “Funded Debt” excludes bonds in respect of workers’ compensation, provided no Default
exists or is continuing.

“GAAP” shall mean generally accepted accounting principles in the US as in effect from
time to time (including those 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 approved by a significant segment of the accounting profession), consistently
applied.

“German Share Pledge Agreements” shall mean, collectively, (a) the Share Pledge
Agreement duly executed by “Hameico” Fruit Trade GmbH acting as pledgor with respect to the pledge
of shares in Atlanta AG in favor of the Secured Parties, (b) the Share Pledge Agreement duly
executed by “Hameico” Fruit Trade GmbH acting as pledgor with respect to the pledge of shares in
Chiquita Deutschland GmbH in favor of the Secured Parties and (c) the Share Pledge Agreement duly
executed by CBCBV and American Produce Company acting as pledgors with respect to the pledge of
shares in “Hameico” Fruit Trade GmbH in favor of the Secured Parties.

“Governmental Authority” shall mean any US or Non-US national, state or local
government, any political subdivision thereof, any department, agency, authority or bureau of any
of the foregoing, or any other entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government, including the Federal Deposit Insurance
Corporation, the Federal Reserve Board, the Comptroller of the Currency, any central bank or any
comparable authority.

“Governmental Authorization” shall mean any permit, license, registration, approval,
finding of suitability, authorization, plan, directive, order, consent, exemption, waiver, consent
order or consent decree of or from, or notice to, action by or filing with, any Governmental
Authority.

“Governmental Charges” shall mean, with respect to any Person, all levies,
assessments, licenses, fees, duties, claims or other charges imposed by any Governmental Authority
upon such Person or any of its property or otherwise payable by such Person.

“Governmental Rule” shall mean any law, rule, regulation, ordinance, order, code,
interpretation, judgment, decree, directive, guidelines, policy or similar form of decision of any
Governmental Authority.

“Grantors” shall mean (a) the Borrower, (b) CBII, (c) the entities listed on
Part I of Schedule I and (d) US Subsidiaries formed, acquired or becoming US
Subsidiaries after the Effective Date.

“Guarantee” shall mean any obligation, contingent or otherwise, of any Person directly
or indirectly guaranteeing any Indebtedness of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services (unless such purchase
arrangements are on arm’s-length terms and are entered into in the ordinary course of business), to
take-or-pay, or to maintain Financial Statement conditions or otherwise) or (b) entered into for
purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or
to protect such obligee against loss in respect thereof (in whole or in part); provided
that the term “Guarantee” shall not include endorsements for collection or deposit in the
ordinary course of business. The amount of any Guarantee shall be deemed equal to the lesser of
the stated or determinable amount of the primary obligation or the maximum liability of the
guarantor thereunder in respect thereof. The term “Guarantee” used as a verb has a
corresponding meaning.

“Guarantee Agreements” shall mean, collectively, the Parent Guarantee Agreement and
each Subsidiary Guarantee Agreement.

“Guarantors” shall mean, collectively, the Parent Guarantor and the Subsidiary
Guarantors.

“GWF” shall mean Great White Fleet, Ltd., a Bermuda company.

“Hazardous Materials” shall mean all pollutants, contaminants and other materials,
substances and wastes which are hazardous, toxic, caustic, harmful or dangerous to human health or
the environment, including petroleum and petroleum products and byproducts, radioactive materials,
asbestos, polychlorinated biphenyls and all materials, substances and wastes which are classified
or regulated as “hazardous”, “toxic” or similar descriptions under any Environmental Law.

“Hedging Obligations” shall mean, with respect to any Person, the obligations of such
Person under any Rate Contract.

“Honor Date” shall have the meaning given to that term in Section 2.02(c)(i).

“ICC” shall have the meaning given to that term in Section 2.02(h).

“Increased Revolving Loan Commitment” shall have the meaning given to that term in
Section 2.16(a)(ii).

“Indebtedness” shall mean, with respect to any specified Person, any indebtedness of
such Person, contingent or otherwise, in respect of Funded Debt.

“Indemnitees” shall have the meaning given to that term in Section 8.03.

“Initial Lenders” shall have the meaning given to that term in the introductory
paragraph hereof.

“Intellectual Property Security Agreements” shall mean, collectively, the Copyright
Security Agreements, the Patent Security Agreements, and the Trademark Security Agreements.

“Interest Expense” shall mean, for any period, interest expense for a Person and its
Subsidiaries (determined on a consolidated basis without duplication in accordance with GAAP).

“Interest Period” shall mean, with respect to any LIBOR Loan, the time periods
selected by the Borrower pursuant to Section 2.01(h) which commence on the first day of
such Loan or the effective date of any conversion and end on the last day of such time period, and
thereafter, each subsequent time period selected by the Borrower pursuant to
Section 2.01(g) which commences at the end of the last day of the immediately preceding
time period and ends on the last day of that time period.

“Investment” shall mean, with respect to any Person, all investments by such Person in
other Persons in the form of direct or indirect loans (including Guarantees of Indebtedness or
other obligations), advances or capital contributions and purchases or other acquisitions for
consideration of Indebtedness, Equity Securities or other securities (including Equity Securities
or other securities of CBII).

“IP” shall mean all property and assets of the nature covered by the Intellectual
Property Security Agreements.

“IRC” shall mean the Internal Revenue Code of 1986, as amended.

“Joinder Agreement” shall have the meaning given to that term in
Section 5.01(i)(ii).

“Key Assets” shall mean all or a material portion of the Principal Trademarks.

“Landec” shall mean Landec Corporation, a California corporation.

“Latin American Subsidiaries” shall mean all direct or indirect Subsidiaries of CBII
which are organized in any of the following jurisdictions: Bahamas, British Virgin Islands, Cayman
Islands, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mexico,
Nicaragua, Panama, and Venezuela.

“L/C Advance” shall mean, with respect to each Revolving Lender, such Revolving
Lender’s participation in any L/C Borrowing in accordance with its Revolving Proportionate Share.

“L/C Borrowing” shall mean an extension of credit resulting from a drawing under any
Letter of Credit which has not been reimbursed on the date when made or refinanced as a Revolving
Loan Borrowing.

“L/C Credit Extension” shall mean, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the renewal or increase of the amount thereof.

“L/C Issuer” shall mean Rabobank in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

“L/C Obligations” shall mean, as at any date of determination, the US Currency
Equivalent of the aggregate undrawn face amount of all outstanding Letters of Credit at such date
plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings, at such date.

“Lender Addendum” shall mean, with respect to any Lender as of the Effective Date, a
Lender Addendum, substantially in the form of Exhibit R, executed and delivered by such
Lender on the Effective Date as provided in Section 8.17.

“Lead Arranger” shall mean Rabobank, acting in its capacity as lead arranger.

“Lender Rate Contract Obligations” shall mean all liabilities and obligations, however
arising, owed by a Borrower Entity to any Lender or any other Secured Party of every kind and
description, direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising pursuant to the terms of any Lender Rate Contracts.

“Lender Rate Contracts” shall mean one or more Rate Contracts (whether or not in
respect to the Indebtedness evidenced by this Agreement) between one or more of the Borrower
Entities and one or more of the Secured Parties on terms agreed to between such Borrower Entity and
any such Secured Party. Each Lender Rate Contract shall be secured by the Liens created by the
Security Documents to the extent set forth in Section 2.14(b).

“Lenders” shall mean the Initial Lenders and each Person that shall become a Lender
hereunder pursuant to Section 8.05 for as long as such Initial Lender or Person, as the
case may be, shall be a party to this Agreement.

“Letter of Credit” shall mean any letter of credit issued hereunder. A Letter of
Credit may be a commercial letter of credit or a standby letter of credit.

“Letter of Credit Application” shall mean an application and agreement for the
issuance or amendment of a letter of credit in the form from time to time in use by the L/C Issuer.

“Letter of Credit Expiration Date” shall mean the day that is 30 days prior to the
Maturity Date (or, if such day is not a Business Day, the preceding Business Day).

“Letter of Credit Fee Percentage” shall mean, with respect to any Letter of Credit,
the per annum percentage calculated as described in the definition of Applicable Margin.

“Letter of Credit Sublimit” shall mean an amount equal to the lesser of the Revolving
Loan Facility and $100,000,000. The Letter of Credit Sublimit is part of, and not in addition to,
the Revolving Loan Facility.

“LIBOR Loan” shall mean, at any time, a Loan which then bears interest as provided in
Section 2.01(d)(ii).

“LIBOR Rate” shall mean, with respect to any Interest Period for the LIBOR Loans in
any Borrowing consisting of LIBOR Loans, a rate per annum equal to the quotient (rounded upward if
necessary to the nearest 1/16 of 1%) of (a) the rate per annum appearing on Bloomberg L.P. Page
BBAM1/(Official BBA USD Dollar Libor Fixings) (or such other display screen as may replace such
page or any successor publication) on the second Business Day prior to the first day of such
Interest Period at or about 11:00 a.m. (London time) (or as soon thereafter as practicable) (for
delivery on the first day of such Interest Period) for a term equal to such Interest Period and in
an amount approximately equal to the amount of the Loan to be made or funded by the Administrative
Agent, on behalf of the Lenders, as part of such Borrowing, divided by (b) one minus the
Reserve Requirement for such Loans in effect from time to time. If for any reason rates are not
available as provided in clause (a) of the preceding sentence, the rate to be used in
clause (a) shall be (in each case, rounded upward if necessary to the nearest 1/16 of 1%),
(i) the rate per annum at which Dollar deposits are offered to Rabobank in the London interbank
eurodollar currency market or (ii) the rate at which Dollar deposits are offered to Rabobank in, or
by Rabobank to major banks in, any offshore interbank eurodollar market selected by Rabobank, in
each case on the second Business Day prior to the commencement of such Interest Period at or about
11:00 a.m. (for delivery on the first day of such Interest Period) for a term equal to such
Interest Period and in an amount approximately equal to the amount of the Loan to be made or funded
by the Administrative Agent, on behalf of the Lenders, as part of such Borrowing. The LIBOR Rate
shall be adjusted automatically as to all LIBOR Loans then outstanding as of the effective date of
any change in the Reserve Requirement.

“Lien” shall mean (a) any mortgage, deed of trust, trust deed, deed to secure debt,
lien, pledge, security interest, conditional sale or other title retention agreement, charge or
other security interest or encumbrance of any kind, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title retention agreement
or any lease in the nature thereof, (b) any option or other agreement to sell or give a security
interest therein, and (c) any authorized filing of, or agreement to file, any effective financing
statement under the Uniform Commercial Code (or equivalent statutes of any jurisdiction).

“Loan” shall mean a Revolving Loan, a Swing Line Loan or a Term Loan.

“Loan Account” shall have the meaning given to that term in Section 2.08(a).

“Loan Parties” shall mean the CBII Entities that execute or are required to execute
this Agreement, a Security Agreement, a Pledge Agreement, any Intellectual Property Security
Agreement, a Guarantee Agreement, any Mortgage, or any other Credit Document. For avoidance of
doubt, the term “Loan Parties” does not include Pledged Persons that execute acknowledgments to the
Pledge Agreements.

“Margin Stock” shall have the meaning given to that term in Regulation U issued by the
Federal Reserve Board.

“Material Adverse Change” shall mean (a) a change in the business, operations, assets,
liabilities or condition (financial or otherwise) of the CBII Entities, taken as a whole, or the
Collateral, which in either case would materially and adversely affect the ability of the CBII
Entities, taken as a whole, to perform their obligations under the Credit Documents or (b) a
material adverse change in the rights and remedies of the Administrative Agent or any Lender
thereunder.

“Material Adverse Effect” shall mean (a) an effect on the business, operations,
assets, liabilities or condition (financial or otherwise) of the CBII Entities, taken as a whole,
or the Collateral, which in either case would materially and adversely affect the ability of the
CBII Entities, taken as a whole, to perform their obligations under the Credit Documents or (b) a
material adverse effect on the rights and remedies of the Administrative Agent or any Lender
thereunder.

“Material Documents” shall mean the articles of incorporation, certificate of
incorporation, by-laws, limited liability company operating agreement, as applicable, and other
organizational documents of the Significant Parties.

“Maturity” or “maturity” shall mean, with respect to any Loan, interest, fee
or other amount payable by the Borrower under this Agreement or the other Credit Documents, the
date such Loan, interest, fee or other amount becomes due, whether upon the stated maturity or due
date, upon acceleration or otherwise.

“Maturity Date” shall mean March 31, 2014.

“Meneu” shall mean Meneu Distribucion S.A., a company organized under the laws of
Spain.

“Mortgage Policies” shall have the meaning given to that term in
Section 3.01(h)(ii).

“Mortgages” shall mean, collectively, (a) deeds of trust, trust deeds, deeds to secure
debt and mortgages, in substantially the form of Exhibit Q-1 (with such changes as may be
satisfactory to the Administrative Agent and its counsel to account for local law matters) and
covering the Properties (together with the Assignments of Leases and Rents referred to therein, in
each case as amended, restated, supplemented or modified from time to time), and (b) the Clayton
County Leasehold Mortgage.

“Multiemployer Plan” shall mean any multiemployer plan within the meaning of
Section 4001(a)(3) of ERISA maintained or contributed to by the Borrower or any ERISA Affiliate.

“Net Cash Proceeds” shall mean:

(a) with respect to any asset sale, the aggregate cash proceeds, Temporary Cash Investments
and other cash equivalents received by or for the benefit of any of the CBII Entities (including
any cash, Temporary Cash Investments and other cash equivalents received upon the sale or other
disposition of any non-cash consideration received in any asset sale), net of the direct costs
relating to such asset sale, including legal, accounting and investment banking fees, severance and
similar obligations, and sales commissions, and any relocation expenses incurred as a result
thereof, taxes paid or payable as a result thereof, in each case after taking into account any
available tax credits or deductions, any tax sharing arrangements and any amounts used to repay
Indebtedness (other than Indebtedness under the Credit Documents) secured by a Lien on the asset or
assets that were the subject of such asset sale and appropriate amounts to be provided by any CBII
Entity as a reserve against any liabilities associated with such asset sale, including pension and
other post-employment benefit liabilities, liabilities related to Environmental Laws and
liabilities under any indemnification obligations associated with such asset sale, all as
determined in conformity with GAAP;

(b) with respect to the incurrence or issuance of any Indebtedness, the excess of (i) the sum
of the cash, Temporary Cash Investments and other cash equivalents received in connection with such
incurrence or issuance over (ii) the underwriting discounts and commissions or other similar
payments, and other out-of-pocket costs, fees, commissions, premiums and expenses incurred in
connection with such incurrence or issuance to the extent such amounts were not deducted in
determining the amount referred to in clause (i) above;

(c) with respect to any issuance or sale of Equity Securities, the proceeds of such issuance
or sale in the form of cash, Temporary Cash Investments and other cash equivalents, including
payments in respect of deferred payment obligations (to the extent corresponding to the principal,
but not interest, component thereof) when received in the form of cash, Temporary Cash Investments
or other cash equivalents and proceeds from the conversion of other property received when
converted to cash, Temporary Cash Investments or other cash equivalents , net of attorneys’ fees,
accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage,
consultant and other fees incurred in connection with such issuance or sale and net of taxes paid
or payable as a result thereof; and

(d) with respect to any Extraordinary Receipts that are not otherwise included in
clause (a), (b) or (c) above, the sum of the cash, Temporary Cash
Investments and other cash equivalents received in connection therewith, net of any Indebtedness
(other than Indebtedness under the Credit Documents) secured by a Lien on the affected asset that
is required to be prepaid with such Extraordinary Receipts and net of the direct costs relating to
the event in respect of which the Extraordinary Receipts are received.

“Net Income” shall mean with respect to any fiscal period, the net income of a Person
determined in accordance with GAAP.

“New York Non-US Currency Exchange Market” shall mean the interbank foreign exchange
market where foreign currencies are bought and sold in New York City by financial institutions and
brokers.

“Nonrenewal Notice Date” shall have the meaning given to that term in
Section 2.02(b)(iii).

“Non-US” shall mean a jurisdiction other than and outside the US.

“Non-US Currency” shall mean, with respect to a Non-US Currency Letter of Credit or
any reimbursement made or to be made with respect to such Non-US Currency Letter of Credit, the
currency applicable to that Non-US Currency Letter of Credit.

“Non-US Currency Business Day” shall mean any Business Day on which dealings in
deposits in the applicable Non-US Currency are conducted by and among banks in the Designated
Non-US Currency Market.

“Non-US Currency Letter of Credit” shall mean a Letter of Credit issued or to be
issued in (a) British pounds sterling, (b) euros or (c) such other currency (other than Dollars) as
may be acceptable to all of the Revolving Lenders in their sole and absolute discretion.

“Non-US Currency Letter of Credit Sublimit” shall mean an amount equal to $50,000,000.
The Non-US Currency Letter of Credit Sublimit is part of, and not in addition to, the Letter of
Credit Sublimit; and in Administrative Agent’s sole and absolute discretion, such Non-US Currency
Letter of Credit Sublimit can be increased above the limit (but in no event above the Letter of
Credit Sublimit), or decreased back down to the limit set forth in the preceding sentence.

“Non-US Currency Market” shall mean a regular established market located outside the
US by and among banks for the solicitation, offer and acceptance of Non-US Currency deposits in
such banks.

“Non-US Currency Unreimbursed Amount” shall have the meaning given in
Section 2.02(c)(i).

“Non-US Plan” shall mean any employee benefit plan maintained or contributed to by any
Significant Party which is mandated or governed by any Governmental Rule of any Governmental
Authority other than the US or any Governmental Authority or political subdivision thereof.

“Non-US Subsidiaries” shall mean all direct or indirect Subsidiaries of CBII which are
organized in a jurisdiction other than the US or any state thereof.

“Note” shall mean a Term Loan Note, a Revolving Loan Note or a Swing Line Note.

“Notice of Borrowing” shall mean a Notice of Borrowing pursuant to and as defined in
Section 2.01(c) or a Notice of Swing Line Borrowing.

“Notice of Conversion” shall have the meaning given to that term in
Section 2.01(g).

“Notice of Interest Period Selection” shall have the meaning given to that term in
Section 2.01(h)(ii).

“Notice of Swing Line Borrowing” shall mean a notice of a Swing Line Borrowing
pursuant to Section 2.03(b), which, if in writing, shall be substantially in the form of
Exhibit D.

“Notification” shall have the meaning given to that term in
Section 8.01(c)(ii).

“Obligations” shall mean all loans, advances, debts, liabilities and obligations,
howsoever arising, owed by the Borrower to any Secured Party of every kind and description (whether
or not evidenced by any note or instrument and whether or not for the payment of money), direct or
indirect, absolute or contingent, due or to become due, now existing or hereafter arising pursuant
to the terms of this Agreement or any of the other Credit Documents, including all interest
(including interest that accrues after the commencement of any bankruptcy or other insolvency
proceeding by or against the Borrower), fees, charges, expenses, attorneys’ fees and accountants’
fees chargeable to and payable by the Borrower hereunder and thereunder, but excluding Lender Rate
Contract Obligations.

“OFAC” shall mean the Office of Foreign Assets Control of the United States Department
of the Treasury.

“Officer” shall mean, with respect to CBII or the Borrower, (a) the Chairman of the
Board of Directors, any Vice Chairman of the Board of Directors, the Chief Executive Officer, the
President, the Chief Financial Officer, any Vice President, or the Treasurer or (b) any Assistant
Treasurer, the Secretary or any Assistant Secretary. Any document delivered hereunder that is
signed by an Officer of CBII or the Borrower shall be conclusively presumed to have been authorized
by all necessary corporate, limited liability company, and/or other action on the part of CBII or
the Borrower and such Officer shall be conclusively presumed to have acted on behalf of CBII or the
Borrower, as the case may be.

“Other Taxes” shall have the meaning given to that term in Section 2.12(b).

“Owned Properties” shall have the meaning given to that term in Section
4.01(z).

“PACA” shall mean the Perishable Agricultural Commodities Act, 7 U.S.C. Section 499.

“Parallel Obligations” shall have the meaning given to the term in
Section 2.14(d)(i).

“Parallel Security” shall have the meaning given to the term in
Section 2.14(d).

“Parent Guarantee Agreement” shall mean the Guarantee Agreement executed and delivered
by CBII pursuant to Section 3.01(a), substantially in the form of Exhibit J.

“Parent Guarantor” shall mean CBII.

“Participants” shall have the meaning given to that term in Section 8.05(b).

“Participation Seller” shall have the meaning given to that term in
Section 8.15(a).

“Patent Security Agreements” shall mean the Patent Security Agreements executed and
delivered by the Grantors party thereto, as the same may be amended, restated, supplemented or
modified from time to time, and substantially in the form of Exhibit N.

“PBGC” shall mean the Pension Benefit Guaranty Corporation.

“Pension Plan” shall mean any “employee pension benefit plan” (as such term is defined
in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA
and is sponsored or maintained by any Significant Party or any ERISA Affiliate or to which any
Significant Party or any ERISA Affiliate contributes or has an obligation to contribute, or solely
in the case of a multiple employer plan (as described in Section 4064(a) of ERISA) has made
contributions at any time during the immediately preceding five plan years.

“Permitted Acquisition” shall have the meaning given to that term in Section
5.02(d)(iii).

“Permitted Asset Disposition” shall mean any asset disposition permitted under
Section 5.02(c).

“Permitted Indebtedness” shall mean all Indebtedness that is permitted to be created,
incurred, assumed, or to exist in accordance with Section 5.02(a).

“Permitted Joint Venture” shall mean the Persons listed on Schedule II as well
as any Person (a) 50% or less of whose Equity Securities are owned directly or indirectly by a
Borrower Entity, (b) that if allowed to make Distributions, dividends, and loans to Equity Security
holders, the Borrower Entity that holds the Equity Securities in such Person is entitled to receive
Distributions, dividends, and loans at least equal to a pro rata proportion of such Borrower
Entity’s Equity Securities in such Person and (c) for which no Borrower Entity has liability,
primarily, secondarily, or otherwise, for the Funded Debt or other obligations of such Person.

“Permitted Liens” shall mean Liens that fall within any one of the following
categories (whether or not such Liens could fall within one or more other categories, and if a Lien
could qualify for more than one of the following categories, the Borrower may designate which
category the Lien qualifies for without such Lien counting against other categories):

(a) any Liens on assets existing on the Effective Date and listed in Schedule 5.02(b),
except that any unlisted immaterial Liens shall also constitute Permitted Liens for purposes of
this clause (a) but only to the extent that (i) the aggregate amount of the obligations
secured by such Liens does not exceed $1,000,000 and (ii) the assets encumbered by such Liens are
owned solely by Non-US Subsidiaries and are not Collateral;

(b) Liens on assets acquired after the Effective Date that were existing at the time of the
acquisition of such asset by a Borrower Entity; provided that (i) such Liens were in
existence prior to the contemplation of such acquisition, were not granted in anticipation of such
acquisition and do not extend to any other assets and (ii) the aggregate amount of all Indebtedness
secured by Liens on assets of the Borrower Entities pursuant to this clause (b) and
clauses (c), (d) and (u) of this definition shall not exceed $50,000,000 in
any fiscal year of the Borrower (it being understood that any such Indebtedness secured by Liens
not incurred in any fiscal year of the Borrower may be incurred in the succeeding fiscal years of
the Borrower);

(c) Liens on assets to secure the purchase price of such assets to be acquired, which Liens
cover only the assets acquired with such Indebtedness, and Liens on assets to secure Capital Lease
obligations which Liens cover only the assets so acquired by Capital Lease (or any extensions,
renewals or replacements of any such Liens for the same or a lesser amount); provided that
the aggregate amount of all Indebtedness secured by Liens on assets of the Borrower Entities
pursuant to this clause (c) and clauses (b), (d) and (u) of this
definition shall not exceed $50,000,000 in any fiscal year of the Borrower (it being understood
that any such Indebtedness secured by Liens not incurred in any fiscal year of the Borrower may be
incurred in the succeeding fiscal years of the Borrower);

(d) Liens on an entity or its assets existing at the time the entity becomes a Subsidiary or
is merged with any Borrower Entity, or assumed in connection with the acquisition of its assets;
provided that (i) such Liens were in existence prior to the contemplation of such
acquisition or merger, were not granted in anticipation of such acquisition or merger and do not
extend to any assets other than those of the Person that becomes a Subsidiary or is merged with any
Borrower Entity and (ii) the aggregate amount of all Indebtedness secured by Liens on assets of the
Borrower Entities pursuant to this clause (d) and clauses (b), (c) and
(u) of this definition shall not exceed $50,000,000 in any fiscal year of the Borrower (it
being understood that any such Indebtedness secured by Liens not incurred in any fiscal year of the
Borrower may be incurred in the succeeding fiscal years of the Borrower);

(e) statutory Liens of landlords and carriers, warehousemen, mechanics, materialmen, repairmen
or other like Liens (i) arising in the ordinary course of business, and (ii) for amounts not
overdue for more than 90 days or being contested in good faith by appropriate proceedings and as to
which adequate reserves (as required by GAAP) have been established therefor;

(f) judgment Liens and other similar Liens arising in the ordinary course of business;
provided that (i) the enforcement of the Liens is stayed, (ii) the claims secured by the
Liens are being actively contested, in good faith and by appropriate proceedings and as to which
adequate reserves (as required by GAAP) have been established therefor, and (iii) the judgment
would not otherwise constitute a Default;

(g) Liens for taxes, assessments or Governmental Charges not yet due and payable or being
contested in good faith by appropriate proceedings and as to which adequate reserves (as required
by GAAP) have been established therefor;

(h) Liens on property of a Non-US Subsidiary to secure Indebtedness of such Non-US Subsidiary
that is otherwise permitted under Section 5.02;

(i) Liens on Non-US bank accounts in accordance with customary banking practice;

(j) easements, rights of way, restrictions and other similar encumbrances on title to real
property to the extent they are incurred in the ordinary course of business of any Borrower Entity
and do not materially detract from the value of such property or materially interfere with the
ordinary course of business of any Borrower Entity;

(k) pledges or deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation;

(l) deposits and other Liens to secure Surety Instruments and the performance of bids, trade
contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds,
performance bonds and other similar obligations incurred in the ordinary course of business;

(m) Liens granted on assets of any Borrower Entity created in favor of Lenders or
Administrative Agent pursuant to the Security Documents;

(n) 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 terminated or the period within which such proceedings may be
initiated shall not have expired;

(o) Liens to secure Hedging Obligations incurred in the ordinary course of business solely for
the purpose of fixing or hedging interest rate risk, Non-US currency risk or financial and other
similar risks (including commodity risks); provided that with respect to Hedging
Obligations with respect to Indebtedness such Liens do not extend to property or assets other than
the property or assets securing such Indebtedness and provided, further, that such
Liens do not extend to the Collateral (unless such Liens are granted under the Security Documents);

(p) Liens in favor of customs and revenue authorities arising as a matter of law to serve as
payment of custom duties in connection with the importation of goods;

(q) leases, subleases or licenses and sublicenses granted to others that do not materially
detract from the value of such property or materially interfere with the ordinary course of
business of any CBII Entity;

(r) Liens arising from the filing of Uniform Commercial Code financing statements regarding
leases;

(s) Liens on receivables assets of any Non-US Subsidiary securing receivables obligations of
any Non-US Subsidiary;

(t) Liens securing Indebtedness which is incurred to refinance secured Indebtedness
outstanding on the Effective Date and refinancings thereof; provided that the amount of
such Indebtedness is not increased and such Liens do not extend to or cover any property or assets
of any Borrower Entity other than the property or assets securing the Indebtedness being
refinanced;

(u) additional Liens to secure Indebtedness provided that (i) the aggregate amount of
all Indebtedness secured by Liens on assets of the Borrower Entities pursuant to this
clause (u) and clauses (b), (c) and (d) of this definition shall
not exceed $50,000,000 in any fiscal year of the Borrower (it being understood that any such
Indebtedness secured by Liens not incurred in any fiscal year of the Borrower may be incurred in
the succeeding fiscal years of the Borrower), (ii) the assets covered by any additional Liens
permitted to be incurred pursuant to this clause (u) shall not include any Equity
Securities of any Pledged Persons and (iii) to the extent any additional Liens permitted to be
incurred pursuant to this clause (u) shall cover any Collateral, such additional Liens
shall be expressly subject and subordinate to the Liens on such Collateral granted for the benefit
of the Secured Parties on terms reasonably satisfactory to the Administrative Agent;

(v) statutory Liens of vendors of perishable agricultural commodities or the like (i) arising
pursuant to the provisions of PACA, (ii) arising in the ordinary course of business and (iii) for
amounts not overdue for more than 90 days or being contested in good faith by appropriate
proceedings and as to which adequate reserves (as required by GAAP) have been established therefor;

(w) Liens securing intercompany obligations (i) of any of the Borrower’s direct or indirect
Non-US Subsidiaries to the Borrower or CBII, (ii) between or among any of the Borrower’s direct or
indirect Non-US Subsidiaries that are not Loan Parties, or (iii) between or among any of the
Borrower’s direct or indirect US Subsidiaries, if such Liens are expressly subordinate to the Liens
granted under the Security Documents, in form and substance reasonably satisfactory to the
Administrative Agent;

(x) Permitted Encumbrances (as defined in each Mortgage); and

(y) purchase money Liens upon Container Assets acquired by any of the CBII Entities in the
ordinary course of business to secure the purchase price of such Container Assets or to secure
Indebtedness incurred solely for the purpose of financing the acquisition of any such Container
Assets to be subject to such Liens, or extensions, renewals or replacements of any of the
foregoing; provided, however, that no such Lien shall extend to or cover any
property other than the Container Assets being acquired, and no such extension, renewal or
replacement shall extend to or cover any property not theretofore subject to the Lien being
extended, renewed or replaced.

“Permitted Sales” shall have the meaning given to that term in the definition of Asset
Sales.

“Person” shall mean an individual, a corporation, a partnership, a limited liability
company, a joint venture, an association, a trust, an unincorporated organization or any other
entity or organization, including a Governmental Authority or political subdivision or an agency or
instrumentality thereof.

“Platform” shall have the meaning given to that term in Section 8.01(c)(i).

“Pledge Agreements” shall mean the Pledge Agreements executed and delivered by the
Pledgors pursuant to Section 2.14(c), 3.01(a) or 5.01(i), as the case may
be, as the same may be amended, restated, supplemented or modified from time to time, substantially
in the form attached as Exhibit I.

“Pledged Equity Securities” shall have the meaning given to that term in
Section 3.01(a)(v).

“Pledged Intercompany Notes” shall have the meaning given to that term in
Section 3.01(a)(iv).

“Pledged Persons” shall mean (a) the Borrower and the other Persons listed on
Schedule III, (b) US Subsidiaries formed, acquired, or becoming US Subsidiaries after the
Effective Date, (c) Significant Non-US Subsidiaries formed or acquired after the Effective Date and
(d) any Non-US Subsidiary which after the Effective Date becomes a Significant Non-US Subsidiary
(it being understood that, solely in respect of this clause (d), there shall be excluded
from the determination of whether such a Non-US Subsidiary is a Significant Subsidiary any
intercompany sales and receivables from any CBII Entities); provided, however, that
notwithstanding anything to the contrary herein, (i) if by virtue of mandatory provisions of the
applicable law of the jurisdiction of organization of a Significant Non-US Subsidiary a pledge of
the Equity Securities of such Significant Non-US Subsidiary shall be prohibited (and the
Administrative Agent shall be reasonably satisfied that there is no alternative manner to structure
such pledge) or (ii) if the Administrative Agent and CBII, using best efforts, mutually agree,
after taking into consideration the value of the assets of any Significant Non-US Subsidiary, (A)
that by virtue of pledging more than 65% of the Voting Equity Securities of such Significant Non-US
Subsidiary, a Section 956 Issue will result with respect to such Significant Non-US Subsidiary,
then only 100% of the non-voting Equity Securities and 65% of the voting Equity Securities of such
Significant Non-US Subsidiary shall be pledged, and (B) that by virtue of (x) pledging 100% of the
non-voting Equity Securities and 65% of the voting Equity Securities of any Significant Latin
American Subsidiary, such Significant Latin American Subsidiary shall be obligated to pay material
local fees, (y) pledging 65% of the voting Equity Securities of such Significant Non-US Subsidiary,
a Section 956 Issue will result with respect to the Pledgor of such Significant Non-US Subsidiary
or (z) a pledge of or by a Significant Non-US Subsidiary, personal liability of the officers or
directors of such Significant Non-US Subsidiary under the laws of the jurisdiction in which such
Significant Non-US Subsidiary is organized will result, then none of the non-voting Equity
Securities and voting Equity Securities of such Significant Non-US Subsidiary shall be pledged,
such Significant Non-US Subsidiary shall not be one of the Pledged Persons and no Pledge Agreement
shall be executed with respect to the Equity Securities of such Significant Non-US Subsidiary
unless and except to the extent that the Equity Securities thereof may be so pledged without such
Section 956 Issue, such prohibition, such personal liability or resulting in an obligation of such
Significant Latin American Subsidiary to pay material local fees, as applicable; and
provided, further, that if some or all of the Equity Securities of a Borrower
Entity that directly or indirectly owns Equity Securities of such Significant Non-US Subsidiary are
not the subject of a Pledge Agreement and may be pledged to the Administrative Agent without such
prohibition or without resulting in an obligation of such Significant Latin American Subsidiary to
pay material local fees, as applicable, such Borrower Entity shall become one of the Pledged
Persons.

“Pledgors” shall mean those Persons pledging their interests in a Pledged Person.

“Post Effective Date Requirements Letter Agreement” shall have the meaning given to
that term in the definition of Effective Date.

“Pre-Commitment Information” shall mean all written information, including one or more
confidential information memoranda and other marketing materials to be used in connection with the
syndication of the Commitments that have been made available to Rabobank by CBII, the Borrower or
any representative thereof.

“Principal Trademarks” shall mean those trademarks described as “Principal Trademarks”
on Schedule 4.01(n), which may be updated hereafter upon the agreement of the Borrower and
the Administrative Agent, except that the deletion of any material “Principal Trademarks” shall
require the consent of the Required Lenders.

“Pro Forma Compliance” shall mean:

(a) with respect to the Borrower Leverage Ratio, on any date of determination, the Borrower
would have been in compliance with the Borrower Leverage Ratio covenant set forth in
Section 5.03(a) as at the end of the four-quarter period ending on the day that is the
close of the most recent fiscal quarter for which financial statements have been delivered pursuant
to Section 5.01(a) ending prior to such determination date if the Borrower Funded Debt
outstanding on such date of determination (after giving effect to any Funded Debt and use of
proceeds from the Funded Debt to be incurred for the event requiring such measurement or on such
date of determination) were outstanding on the last day of such most recent fiscal quarter; and

(b) with respect to the Fixed Charge Coverage Ratio, on any date of determination, the
Borrower would have been in compliance with the Fixed Charge Coverage Ratio covenant set forth in
Section 5.03(b) as at the end of the four-quarter period ending on the day that is the
close of the most recent fiscal quarter for which financial statements have been delivered pursuant
to Section 5.01(a) ending prior to such determination date if all asset dispositions,
acquisitions, and Distributions in accordance with Sections 5.02(c), 5.02(d) and
5.02(f) (after giving effect to any such asset dispositions, acquisitions, and
Distributions to occur for the event requiring such measurement or on such date of determination)
occurred on the first day of such most recently completed four-quarter period.

“Properties” shall mean, collectively, the Owned Properties and the property subject
to the Clayton County Lease.

“Rate Contract” shall mean any agreement or document now existing or hereafter entered
into in respect of any swap, cap, collar, hedge, forward, future or derivative transaction or
option or similar agreement involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar transaction or any
combination of these transactions.

“Reduction Notice” shall have the meaning given to that term in
Section 2.04(a).

“Refinancing Indebtedness” shall mean any refinancing of existing Indebtedness, so
long as such refinancing Indebtedness (a) is permitted to be incurred under Section
5.02(a), (b) does not result in an increase in the aggregate principal amount of the
Indebtedness being refinanced and (c) any Liens securing such refinancing Indebtedness do not
extend to or cover any property or assets of any CBII Entity other than the property or assets
securing the Indebtedness being refinanced.

“Register” shall have the meaning given to that term in Section 8.05(d).

“Relevant Event” shall have the meaning given to that term in
Section 2.06(c)(iii).

“Relevant Sale” shall have the meaning given to that term in
Section 2.06(c)(ii).

“Replacement Lender” shall have the meaning given to that term in
Section 2.15.

“Reportable Event” shall have the meaning given to that term in Title IV of ERISA and
applicable regulations thereunder for which notice thereof has not been waived pursuant to
applicable regulations.

“Required Lenders” shall mean, at any time, Lenders owed or holding at least a
majority in interest of the sum of (a) so long as the Revolving Loan Commitments have not been
terminated, the aggregate Revolving Loan Commitments at such time or, if the Revolving Loan
Commitments have been terminated, the aggregate Effective Amount (based on each such Lender’s
Revolving Proportionate Share thereof) of all Revolving Loans, L/C Obligations and Swing Line Loans
outstanding at such time and (b) the aggregate principal amount of the Term Loans outstanding at
such time, except that, at any time any Lender is a Defaulting Lender, all such Defaulting Lenders
shall be excluded in determining “Required Lenders” and, in such case, “Required Lenders” shall
mean Lenders that are not Defaulting Lenders owed or holding at least a majority in interest of the
sum of (a) so long as the Revolving Loan Commitments have not been terminated, the aggregate
Revolving Loan Commitments of all Lenders that are not Defaulting Lenders at such time or, if the
Revolving Loan Commitments have been terminated, the aggregate Effective Amount (based on each such
Lender’s Revolving Proportionate Share thereof) of all Revolving Loans, L/C Obligations and Swing
Line Loans of all Lenders that are not Defaulting Lenders outstanding at such time and (b) the
aggregate principal amount of the Term Loans of all Lenders that are not Defaulting Lenders
outstanding at such time.

“Required Revolving Lenders” shall mean, at any time, the Revolving Lenders whose
Revolving Proportionate Shares then exceed 50%, except that, at any time any Revolving Lender is a
Defaulting Lender, all Defaulting Lenders shall be excluded in determining “Required Revolving
Lenders”, and, in such case, “Required Revolving Lenders” shall mean Lenders that are not
Defaulting Lenders having total Revolving Proportionate Shares exceeding 50% of the total Revolving
Proportionate Shares of all Lenders that are not Defaulting Lenders at such time.

“Required Term Lenders” shall mean, at any time, Lenders owed or holding at least a
majority in interest of the aggregate principal amount of the Term Loans outstanding at such time,
except that, at any time any Term Lender is a Defaulting Lender, all Defaulting Lenders shall be
excluded in determining “Required Term Lenders” and, in such case, “Required Term Lenders” shall
mean Lenders that are not Defaulting Lenders owed or holding at least a majority in interest of the
aggregate principal amount of the Term Loans of all Lenders that are not Defaulting Lenders
outstanding at such time.

“Requirement of Law” applicable to any Person shall mean (a) the articles or
certificate of incorporation and by-laws or other organizational or governing documents of such
Person, (b) any Governmental Rule applicable to such Person, (c) any license, permit, approval or
other authorization granted by any Governmental Authority to or for the benefit of such Person or
(d) any judgment, decision or determination of any Governmental Authority or arbitrator, in each
case applicable to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

“Reserve Requirement” shall mean, with respect to any day in an Interest Period for a
LIBOR Loan, the aggregate of the maximum of the reserve requirement rates (expressed as a decimal)
in effect on such day for eurocurrency funding (currently referred to as “Eurocurrency liabilities”
in Regulation D of the Federal Reserve Board) maintained by a member bank of the Federal Reserve
System. As used herein, the term “reserve requirement” shall include any basic, supplemental or
emergency reserve requirements imposed on any Lender by any Governmental Authority.

“Revolving Lender” shall mean any Lender that has a Revolving Loan Commitment.

“Revolving Loan” shall have the meaning given to that term in Section 2.01(b).

“Revolving Loan Borrowing” shall mean a borrowing by the Borrower consisting of the
Revolving Loans made by each of the Revolving Lenders on the same date and of the same Type
pursuant to a single Notice of Borrowing.

“Revolving Loan Commitment” shall mean, with respect to any Revolving Lender at any
time, the amount set forth in the Lender Addendum delivered by such Revolving Lender under the
caption “Revolving Loan Commitment” or, if such Lender has entered into one or more Assignment
Agreements, set forth for such Lender in the Register maintained by the Administrative Agent
pursuant to Section 8.05(d) as such Lender’s “Revolving Loan Commitment”, as such amount
may be reduced pursuant to Section 2.04 or increased pursuant to Section 2.16. For
all purposes of this Agreement, the Revolving Loan Commitments shall be deemed to have been
“terminated” on the Maturity Date or if the Revolving Loan Commitments are otherwise reduced to
zero or terminated.

“Revolving Loan Facility” shall mean, at any time, the aggregate amount of the
Revolving Lenders’ Revolving Loan Commitments at such time. As of the Effective Date, the amount
of the Revolving Loan Facility is $150,000,000.

“Revolving Loan Note” shall mean a promissory note of the Borrower payable to the
order of any Revolving Lender, in substantially the form of Exhibit E-1, evidencing the
aggregate indebtedness of the Borrower to such Lender resulting from the Revolving Loans and L/C
Advances made by such Lender.

“Revolving Loan Pricing Grid” shall mean:

	 	 	 	 	 	 	 	 	 	 	 
	Tier

	 	Consolidated Adjusted

Leverage Ratio
	 	Applicable Margin

for LIBOR Loans

(bps per annum)
	 	Applicable Margin

for Base Rate Loans

(bps per annum)

	 

	 	 
	 	 	 	 	 	 	 	 
	1

	 	= 5.50 to 1.00
	 	 	375	 	 	 	275	 
	 

	 	 
	 	 	 	 	 	 	 	 
	2

	 	= 4.50 to 1.00 but < 5.50 to 1.00
	 	 	350	 	 	 	250	 
	 

	 	 
	 	 	 	 	 	 	 	 
	3

	 	= 3.75 to 1.00 but < 4.50 to 1.00
	 	 	325	 	 	 	225	 
	 

	 	 
	 	 	 	 	 	 	 	 
	4

	 	< 3.75 to 1.00
	 	 	300	 	 	 	200	 
	 

	 	 
	 	 	 	 	 	 	 	 

Any increase or decrease in the Applicable Margin for Revolving Loans or the Letter of Credit
Fee Percentage resulting from a change in the Consolidated Adjusted Leverage Ratio shall become
effective as of the fifth Business Day following the date a Compliance Certificate is required to
be delivered pursuant to Sections 5.01(a)(iii) (other than the Compliance Certificate
delivered 120 days after the close of each fiscal year in respect of yearly Financial Statements of
the Borrower Entities) or 5.02(d)(iii); provided, however, that if no
Compliance Certificate is delivered within three days of when due in accordance with such Sections,
then Tier 1 of the Revolving Loan Pricing Grid shall apply as of the date of the failure to deliver
such Compliance Certificate until the fifth Business Day after the date on which the Borrower
delivers a Compliance Certificate in the form of Exhibit G-1 (in respect of Section
5.01(a)(iii)) or Exhibit G-2 (in respect of Section 5.02(d)(iii)) and
thereafter the Applicable Margin for Revolving Loans and the Letter of Credit Fee Percentage shall
be based on the Consolidated Adjusted Leverage Ratio indicated on such Compliance Certificate until
such time as the Applicable Margin for Revolving Loans and the Letter of Credit Fee Percentage are
further adjusted as set forth in this definition.

“Revolving Proportionate Share” shall mean, with respect to any Revolving Lender:

(a) if the Revolving Loan Commitments have not been terminated, the ratio (expressed as a
percentage rounded to the eighth digit to the right of the decimal point) of (i) such Lender’s
Revolving Loan Commitment at such time to (ii) the Revolving Loan Facility at such time;
and

(b) if the Revolving Loan Commitments have been terminated, the ratio (expressed as a
percentage rounded to the eighth digit to the right of the decimal point) of (i) the sum of (A) the
Effective Amount of such Lender’s Revolving Loans, and (B) such Revolving Lender’s share (based on
its Revolving Proportionate Share immediately prior to such termination) of the Effective Amount of
all L/C Obligations and all Swing Line Loans to (ii) the sum of (A) the aggregate Effective
Amount of all Revolving Loans and Swing Line Loans and (B) the aggregate Effective Amount of all
L/C Obligations.

The initial Revolving Proportionate Share of each Revolving Lender is set forth in the Lender
Addendum delivered by such Revolving Lender under the caption “Revolving Proportionate Share”.

“Sales Basket Amount” shall have the meaning given to that term in
Section 2.06(c)(ii).

“Section 956 Issue” shall mean that the granting of a pledge of Equity Securities or
the execution of a Guarantee Agreement by a Non-US Subsidiary results in the pledged or pledging
Non-US Subsidiary or the Non-US Subsidiary guarantor being deemed to have made a dividend in a
material amount to its first tier US equity owner pursuant to IRC Section 956, and related sections
of the IRC and the regulations promulgated thereunder.

“Secured Obligations” shall mean any Obligations owing to the Secured Parties, any
Guarantees thereof by the Loan Parties, and any Lender Rate Contract Obligations.

“Secured Parties” shall mean, collectively, the Administrative Agent, any Supplemental
Collateral Agent, the Revolving Lenders, the Swing Line Lender, the L/C Issuer, the Term Lenders,
the Existing Swap Counterparties and, whether or not such Person has ceased to be a Lender or an
Affiliate of a Lender under this Agreement, any Lender or any Affiliate of a Lender as a
counterparty to a Lender Rate Contract.

“Security Agreements” shall mean the security agreements (including any amended and
restated security agreements) executed and delivered by (a) the Borrower, (b) CBII or (c) the US
Subsidiaries pursuant to Sections 2.14(c), 3.01(a) or 5.01(i), as the case
may be, as the same may be amended, restated, supplemented or modified from time to time,
substantially in the form of Exhibit L.

“Security Documents” shall mean the Security Agreements, the Pledge Agreements, the
Intellectual Property Security Agreements, the Mortgages and all other instruments, agreements and
documents (including Uniform Commercial Code financing statements) delivered to the Administrative
Agent in connection with any Collateral or to secure any Secured Obligation or any Guarantee of the
Secured Obligations, as the same may be amended, restated, supplemented or modified from time to
time to the extent permitted under the Credit Documents.

“Senior Notes (71/2%)” shall mean the 71/2% Senior Notes due 2014 of CBII.

“Senior Notes (71/2%) Indenture” shall mean that certain Indenture dated as of
September 28, 2004, between CBII, as issuer, and LaSalle Bank National Association, as trustee, and
the First Supplemental Indenture thereto, dated as of February 4, 2008, in respect of the Senior
Notes (71/2%), as amended, restated, supplemented or modified from time to time to the extent
permitted under the Credit Documents.

“Senior Notes (87/8%)” shall mean the
87/8% Senior Notes due 2015 of CBII.

“Senior Notes (87/8%) Indenture” shall mean that certain
Indenture dated as of June 28, 2005, between CBII, as issuer, and LaSalle Bank National
Association, as trustee, in respect of the Senior Notes (87/8%), as further
amended, restated, supplemented or modified from time to time to the extent permitted under the
Credit Documents.

“Servicios Chile” shall mean Servicios Chiquita-Enza Chile Limitada, a Chilean
limitada.

“Significant Latin American Subsidiaries” shall mean the Significant Subsidiaries that
are Latin American Subsidiaries.

“Significant Non-US Subsidiaries” shall mean the Significant Latin American
Subsidiaries and Significant Other Non-US Subsidiaries.

“Significant Other Non-US Subsidiaries” shall mean the Significant Subsidiaries that
are not Significant US Subsidiaries or Significant Latin American Subsidiaries.

“Significant Parties” or “Significant Party” shall mean CBII, the Borrower,
and Significant Subsidiaries.

“Significant Revenue” shall mean, with respect to any Subsidiary, annual gross revenue
exceeding the Dollar equivalent of $10,000,000 as at the end of the most recent fiscal year.

“Significant Subsidiaries” shall mean each of the Borrower Entities described as
Significant Subsidiaries on Schedule 4.01(q), and each other direct or indirect Subsidiary
of CBII that, at any date of determination, meets any of the following criteria:

(a) for the most recent fiscal year generated gross revenue (excluding intercompany sales
among the CBII Entities) exceeding the Dollar equivalent of $40,000,000; or

(b) as at the end of the most recent fiscal year, owned assets (excluding intercompany
receivables from the CBII Entities) exceeding the Dollar equivalent of $15,000,000.

“Significant US Subsidiaries” shall mean all direct or indirect Significant
Subsidiaries of CBII which are organized under the laws of the US, any state thereof or the
District of Columbia.

“Solvent” shall mean, with respect to any Person on any date, that on such date
(a) the fair value of the assets of such Person is greater than the fair value of the probable
liabilities (including contingent, subordinated, matured and unliquidated liabilities but not
intercompany payables and obligations) of such Person, (b) the present fair saleable value of the
assets of such Person is greater than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured, (c) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay as such debts and liabilities mature or (d) such Person is not engaged in or about
to engage in business or transactions for which such Person’s property would constitute an
unreasonably small capital.

“Stock and Warrant Repurchases” shall mean repurchases of CBII common stock and
warrants to subscribe for CBII common stock as may be approved by CBII’s Board of Directors from
time to time.

“Subsidiary” shall mean (a) any Person (including a corporation, partnership, limited
liability company or other entity) more than 50% of whose Equity Securities having by the terms
thereof, at that time, ordinary voting power to elect a majority of the directors (or comparable
positions) of such Person is at the time owned directly or indirectly by any other Person, by such
other Person and one or more of its other Subsidiaries or by one or more of such other Person’s
other Subsidiaries or (b) any other Person included in the Financial Statements of such Person on a
consolidated basis. Unless otherwise indicated in this Agreement, “Subsidiary” shall mean a
Subsidiary of the Borrower.

“Subsidiary Guarantee Agreements” shall mean, collectively, each Guarantee Agreement
executed and delivered by each Subsidiary Guarantor pursuant to Section 3.01(a) or
5.01(i), as the case may be, and substantially in the form attached as Exhibit K
(and, where appropriate, with such changes as the Administrative Agent may reasonably require to
give effect to local law requirements in respect of any Non-US Subsidiary Guarantors).

“Subsidiary Guarantors” shall mean (a) entities listed on Part II of
Schedule I, (b)  US Subsidiaries formed, acquired or becoming US Subsidiaries after the
Effective Date and (c) Significant Non-US Subsidiaries formed, acquired or becoming Significant
Non-US Subsidiaries after the Effective Date; provided, however, if the
Administrative Agent and CBII, using best efforts, mutually agree, after taking into consideration
the value of the assets of such Significant Non-US Subsidiary, that by virtue of entering into a
Subsidiary Guarantee Agreement or Guaranteeing the Secured Obligations (a) a Section 956 Issue will
result with respect to a Significant Non-US Subsidiary, (b) personal liability of the officers or
directors of such Significant Non-US Subsidiary under the laws of the jurisdiction in which such
Significant Non-US Subsidiary is organized will result or (c) if such Significant Non-US Subsidiary
is a Significant Latin American Subsidiary, such Significant Non-US Subsidiary will be required to
pay material local fees, such Significant Non-US Subsidiary shall not be a Subsidiary Guarantor and
shall not execute a Subsidiary Guarantee Agreement (or Guarantee the Secured Obligations) until
such time as such Section 956 Issue, personal liability or material local fee liability, as
applicable, shall no longer exist.

“Supplemental Collateral Agent” shall have the meaning given to that term in
Section 7.09(a).

“Surety Instruments” shall mean all letters of credit (including standby and
commercial), banker’s acceptances, bank guarantees, shipside bonds, surety bonds (other than bonds
for workers’ compensation or other ordinary course governmental obligations) and similar
instruments.

“Surviving Indebtedness” shall mean Indebtedness of each Loan Party and its
Subsidiaries outstanding immediately before and after giving effect to the initial Credit Extension
on the Effective Date.

“Swing Line” shall mean the revolving credit facility made available by the Swing Line
Lender pursuant to Section 2.03.

“Swing Line Borrowing” shall mean a borrowing of a Swing Line Loan.

“Swing Line Lender” shall mean Rabobank in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

“Swing Line Loan” shall have the meaning given to that term in
Section 2.03(a).

“Swing Line Note” shall have the meaning given to that term in
Section 2.08(c).

“Swing Line Sublimit” shall mean an amount equal to the lesser of (a) $10,000,000 and
(b) the Revolving Loan Facility. The Swing Line Sublimit is part of, and not in addition to, the
Revolving Loan Facility.

“Syndication Agent” shall mean Wells Fargo, acting its capacity as syndication agent.

“Synthetic Lease” shall mean each arrangement, however described, under which the
obligor accounts for its interest in the property covered thereby under GAAP as lessee of a lease
which is not a Capital Lease and accounts for its interest in the property covered thereby for
Federal income tax purposes as the owner.

“Synthetic Lease Interest Component” shall mean, with respect to any Person for any
period, the portion of rent paid or payable (without duplication) for such period under Synthetic
Leases of such Person that would be treated as interest in accordance with Financial Accounting
Standards Board Statement No. 13 if such Synthetic Leases were treated as Capital Leases under
GAAP.

“Synthetic Lease Principal Component” shall mean, with respect to any Person for any
period, the portion of rent (exclusive of the Synthetic Lease Interest Component) paid or payable
(without duplication) for such period under Synthetic Leases of such Person that would be treated
as principal in accordance with Financial Accounting Standards Board Statement No. 13 if such
Synthetic Leases were treated as Capital Leases under GAAP.

“Taxes” shall have the meaning given to such term in Section 2.12(a).

“Temporary Cash Investments” shall mean:

(a) investments in marketable direct obligations issued or guaranteed by the US, or of any
Governmental Authority or political subdivision thereof, maturing within 18 months of the date of
purchase;

(b) investments in certificates of deposit issued by a bank organized under the laws of the US
or any state thereof or the District of Columbia, in each case having capital and unimpaired
surplus totaling more than $500,000,000 and rated at least A-1 by Standard & Poor’s Ratings Group
(“S&P”) and P-1 by Moody’s Investors Service, Inc. (“Moody’s”) (or their
equivalent) (any such bank, an “Approved Bank”), maturing within 397 days of purchase;

(c) repurchase obligations with a term of not more than seven days for underlying Equity
Securities of the types described in clauses (a) and (b) above entered into with
any Approved Bank;

(d) commercial paper or finance company paper issued by any Person incorporated under the laws
of the US or any state thereof and rated at least A-1 by S&P and P-1 by Moody’s (or their
equivalent) maturing within 397 days of purchase;

(e) Investments not exceeding 397 days in maturity in money market funds that invest primarily
all of such funds’ assets in the Investments described in clauses (a) through (d)
above; and

(f) in the case of the Borrower’s Non-US Subsidiaries, similar short term investments made in
the ordinary course of business or with a commercial bank organized under the laws of any Non-US
jurisdiction which is a member of the OECD, or a political subdivision of any such Non-US
jurisdiction, and having a combined capital and surplus of at least the equivalent of $100,000,000;
provided that such bank is acting through a branch or agency located in the country in
which it is organized or another country which is also a member of the OECD.

“Term Lender” shall mean any Lender that has a Term Loan Commitment or that has made
or holds a Term Loan.

“Term Loan” shall have the meaning given to that term in Section 2.01(a).

“Term Loan Borrowing” shall mean a borrowing consisting of simultaneous Term Loans of
the same Type made by the Term Lenders.

“Term Loan Commitment” shall mean, with respect to any Term Lender at any time, the
amount set forth in the Lender Addendum delivered by such Term Lender under the caption “Term Loan
Commitment” or, if such Lender has entered into one or more Assignment Agreements, set forth for
such Lender in the Register maintained by the Administrative Agent pursuant to
Section 8.05(d) as such Lender’s “Term Loan Commitment”.

“Term Loan Facility” shall mean, at any time, the Term Lenders’ Term Loan Commitments
and the Term Loans provided thereunder. As of the Effective Date, the amount of the Term Loan
Facility is $200,000,000.

“Term Loan Note” shall mean a promissory note of the Borrower payable to the order of
any Term Lender, in substantially the form of Exhibit E-2, evidencing the indebtedness of
the Borrower to such Lender resulting from the Term Loan made by such Lender.

“Term Loan Pricing Grid” shall mean:

	 	 	 	 	 	 	 	 	 	 	 
	Tier

	 	Consolidated Adjusted

Leverage Ratio
	 	Applicable Margin

for LIBOR Loans

(bps per annum)
	 	Applicable Margin

for Base Rate Loans

(bps per annum)

	 

	 	 
	 	 	 	 	 	 	 	 
	1

	 	= 5.50 to 1.00
	 	 	450	 	 	 	350	 
	 

	 	 
	 	 	 	 	 	 	 	 
	2

	 	= 4.50 to 1.00 but < 5.50 to 1.00
	 	 	425	 	 	 	325	 
	 

	 	 
	 	 	 	 	 	 	 	 
	3

	 	= 3.75 to 1.00 but < 4.50 to 1.00
	 	 	400	 	 	 	300	 
	 

	 	 
	 	 	 	 	 	 	 	 
	4

	 	< 3.75 to 1.00
	 	 	375	 	 	 	275	 
	 

	 	 
	 	 	 	 	 	 	 	 

Any increase or decrease in the Applicable Margin for Term Loans resulting from a change in
the Consolidated Adjusted Leverage Ratio shall become effective as of the fifth Business Day
following the date a Compliance Certificate is required to be delivered pursuant to Sections
5.01(a)(iii) (other than the Compliance Certificate delivered 120 days after the close of each
fiscal year in respect of yearly Financial Statements of the Borrower Entities) or
5.02(d)(iii); provided, however, that if no Compliance Certificate is
delivered within three days of when due in accordance with such Sections, then Tier 1 of the Term
Loan Pricing Grid shall apply as of the date of the failure to deliver such Compliance Certificate
until the fifth Business Day after the date on which the Borrower delivers a Compliance Certificate
in the form of Exhibit G-1 (in respect of Section 5.01(a)(iii)) or Exhibit
G-2 (in respect of Section 5.02(d)(iii)) and thereafter the Applicable Margin for Term
Loans shall be based on the Consolidated Adjusted Leverage Ratio indicated on such Compliance
Certificate until such time as the Applicable Margin for Term Loan are further adjusted as set
forth in this definition.

“Termination Date” shall mean (a) for purposes of the Revolving Loan Facility, the
earlier of (i) the date of termination in whole of the Revolving Loan Facility pursuant to this
Agreement and (ii) the Maturity Date and (b) for purposes of the Term Loan Facility, the earlier of
(i) the acceleration of all amounts owing under the Term Loan Facility (pursuant to Section
6.02 or otherwise) and (ii) the Maturity Date.

“Termination Value” shall mean, in respect of any one or more Lender Rate Contracts,
after taking into account the effect of any legally enforceable netting agreement relating to such
Lender Rate Contracts, (a) for any date on or after the date such Lender Rate Contracts have been
closed out and termination value(s) determined in accordance therewith, such termination value(s),
and (b) for any date prior to the date referenced in clause (a) the amount(s) determined as the
mark-to-market value(s) for such Lender Rate Contracts, as determined by the Administrative Agent
based upon one or more mid-market or other readily available quotations provided by any recognized
dealer in such Lender Rate Contracts which may include any Lender.

“Trademark Security Agreements” shall mean the Trademark Security Agreements executed
and delivered by the Grantors party thereto, as the same may be amended, restated, supplemented or
modified from time to time, and substantially in the form of Exhibit O.

“Trademarks” shall have the meaning given to that term in Section 4.01(n).

“Transaction” shall mean the transactions contemplated by the Credit Documents.

“Type” shall mean, with respect to any Loan or Borrowing at any time, the
classification of such Loan or Borrowing by the type of interest rate it then bears, whether an
interest rate based upon the Base Rate or the LIBOR Rate.

“Unaccrued Indemnity Claims” shall mean claims for indemnification that may be
asserted by the Administrative Agent, the L/C Issuer, the Swing Line Lender, any Lender or any
other Indemnitee under the Credit Documents that are unaccrued and contingent and as to which no
claim, notice or demand has been given to or made on any Loan Party (with a copy to the
Administrative Agent) within five Business Days after the Borrower’s request therefor to the
Administrative Agent (unless the making or giving thereof is prohibited or enjoined by any
Requirement of Law or any order of any Governmental Authority).

“Uniform Commercial Code” shall mean the Uniform Commercial Code as the same may be in
effect, from time to time, in the State of New York; provided that, in the event that, by
reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the
Administrative Agent’s or any Lender’s security interest and Lien in any Collateral is governed by
the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the
term “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of definitions related to such provisions.

“Unreimbursed Amount” shall have the meaning given to that term in
Section 2.02(c)(i).

“Unused Revolving Commitment” shall mean, at any time, the remainder of (a) the
Revolving Loan Facility at such time minus (b) the sum of the Effective Amount of all Revolving
Loans and the Effective Amount of all L/C Obligations outstanding at such time. For the avoidance
of doubt, Swing Line Loans shall not be counted as Revolving Loans for purposes of determining the
amount of Unused Revolving Commitment.

“US” shall mean the United States of America.

“US Currency Equivalent” shall mean, with respect to any amount denominated in a
Non-US Currency, as of any date of determination, an equivalent amount in Dollars of such amount
using the currency exchange rate for such date for the applicable currency in the New York Non-US
Currency Exchange Market in trading among banks in amounts of $50,000 or more, set at 11:00 A.M.
London Time two Non-US Currency Business Days prior to the date of determination, or, if not so set
for such date, as otherwise reasonably determined by the Administrative Agent.

“US IP Collateral” shall have the meaning given to that term in
Section 4.01(i)(iii).

“US Lending Office” shall mean, with respect to any Lender, (a) initially, its office
designated as such to the Administrative Agent (or, in the case of any Lender which becomes a
Lender by an assignment pursuant to Section 8.05(c), its office designated as such in the
applicable Assignment Agreement) and (b) subsequently, such other office or offices as such Lender
may designate to the Administrative Agent as the office at which such Lender’s Base Rate Loans will
thereafter be maintained and for the account of which all payments of principal of, and interest
on, such Lender’s Base Rate Loans will thereafter be made.

“US Person” shall mean a Person which is organized under the laws of the US or any
state thereof.

“US Subsidiaries” shall mean all direct or indirect Subsidiaries of CBII which are
organized under the laws of the US or any state thereof, other than De Minimis US Subsidiaries.

“Wells Fargo” shall mean Wells Fargo Bank, National Association.

SECTION 1.02. GAAP. Unless otherwise indicated in this Agreement or any other Credit
Document, all accounting terms used in this Agreement or any other Credit Document shall be
construed, and all accounting and financial computations hereunder or thereunder shall be computed,
in accordance with GAAP, applied in a consistent manner with the principles used in the preparation
of the Financial Statements referred to in Section 4.01(h). If GAAP as in effect on
December 31, 2007 (or such later GAAP agreed to by the parties) changes such that any Financial
Covenants would then be calculated in a different manner or with different components, the parties
will agree to negotiate in good faith to amend this Agreement in such respects as are necessary to
conform those Financial Covenants based on criteria for evaluating any CBII Entity’s financial
condition and performance to substantially the same criteria as were in effect prior to such change
in GAAP; provided, however, that, until the parties so agree or if the parties
cannot agree, all such Financial Covenants shall be calculated in accordance with GAAP as in effect
on December 31, 2007 (or such later GAAP agreed to by the parties).

SECTION 1.03. Headings. The table of contents, captions and section headings
appearing in this Agreement are included solely for convenience of reference and are not intended
to affect the interpretation of any provision of this Agreement.

SECTION 1.04. Plural Terms. All terms defined in this Agreement or any other Credit
Document in the singular form shall have comparable meanings when used in the plural form and vice
versa.

SECTION 1.05. Time. All references in this Agreement and each of the other Credit
Documents to a time of day shall mean New York, New York time, unless otherwise indicated.

SECTION 1.06. Governing Law. Unless otherwise expressly provided in any Credit
Document, this Agreement and each of the other Credit Documents shall be governed by and construed
in accordance with the laws of the State of New York without reference to conflicts of law rules
(other than Sections 5-1401 and 5-1402 of the New York General Obligations Law). The scope of the
foregoing governing law provision is intended to be all-encompassing of any and all disputes that
may be brought in any court or any mediation or arbitration proceeding and that relate to the
subject matter of the Credit Documents, including contract claims, tort claims, breach of duty
claims and all other common law and statutory claims.

SECTION 1.07. Construction. This Agreement is the result of negotiations among, and
has been reviewed by, the Borrower, the Lenders, the Administrative Agent and their respective
counsel. Accordingly, this Agreement shall be deemed to be the product of all parties hereto, and
no ambiguity shall be construed in favor of or against the Borrower, any Lender or the
Administrative Agent.

SECTION 1.08. Entire Agreement. This Agreement and each of the other Credit
Documents, taken together, constitute and contain the entire agreement of the Borrower, the Lenders
and the Administrative Agent and supersede any and all prior agreements, negotiations,
correspondence, understandings and communications among the parties, whether written or oral,
respecting the subject matter hereof including, except for the Commitment Letter to the extent of
the provisions that are expressly set forth therein to continue and survive after the Effective
Date.

SECTION 1.09. Calculation of Interest and Fees. All calculations of interest and fees
under this Agreement and the other Credit Documents for any period (a) shall include the first day
of such period and exclude the last day of such period and (b) shall be calculated on the basis of
a year of 360 days for actual days elapsed.

SECTION 1.10. References.

(a) References in this Agreement to “Articles”, “Recitals”, “Sections”, “Paragraphs”,
“Exhibits” and “Schedules” are to articles, recitals, sections, paragraphs, exhibits and schedules
herein and hereto unless otherwise indicated.

(b) References in this Agreement or any other Credit Document to any document, instrument or
agreement (i) shall include all exhibits, schedules and other attachments thereto, (ii) shall
include all documents, instruments or agreements issued or executed in replacement thereof if such
replacement is permitted hereby and (iii) shall mean such document, instrument or agreement, or
replacement or predecessor thereto, as amended, restated, supplemented or modified from time to
time and in effect at any given time if such amendment, restatement, supplement or modification is
permitted hereby.

(c) References in this Agreement or any other Credit Document to any Governmental Rule
(i) shall include any successor Governmental Rule, (ii) shall include all rules and regulations
promulgated under such Governmental Rule (or any successor Governmental Rule) and (iii) shall mean
such Governmental Rule (or successor Governmental Rule) and such rules and regulations, as amended,
modified, codified or reenacted from time to time and in effect at any given time.

(d) References in this Agreement or any other Credit Document to any Person in a particular
capacity (i) shall include any successors to and permitted assigns of such Person in that capacity
and (ii) shall exclude such Person individually or in any other capacity.

SECTION 1.11. Other Interpretive Provisions. The words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Agreement or any other Credit Document
shall refer to this Agreement or such other Credit Document, as the case may be, as a whole and not
to any particular provision of this Agreement or such other Credit Document, as the case may be.
The words “include” and “including” and words of similar import when used in this Agreement or any
other Credit Document shall not be construed to be limiting or exclusive. In the event of any
inconsistency between the terms of this Agreement and the terms of any other Credit Document, the
terms of this Agreement shall govern.

SECTION 1.12. Rounding. Any financial ratios required to be maintained by CBII or the
Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by
the other component, carrying the result to one place more than the number of places by which such
ratio is expressed in this Agreement and rounding the result up or down to the nearest number (with
a round-up if there is no nearest number) to the number of places by which such ratio is expressed
in this Agreement.

	 	 	 
	ARTICLE II CREDIT FACILITIES
	SECTION 2.01.

	 	The Credit Facilities.
	
 
	 	 

(a) Term Loan Facility. Each Term Lender severally agrees, on the terms and
conditions hereinafter set forth, to make a single advance in Dollars (a “Term Loan”) to
the Borrower on the Effective Date in an amount not to exceed such Lender’s Term Loan Commitment at
such time. The Term Loan Borrowing shall consist of Term Loans made simultaneously by the Term
Lenders ratably according to their Term Loan Commitments. Amounts borrowed under this
Section 2.01(a) and repaid or prepaid may not be reborrowed.

(b) Revolving Loan Facility. On the terms and subject to the conditions of this
Agreement, each Revolving Lender severally agrees to advance to the Borrower from time to time
during the period beginning on the Effective Date up to, but not including the Termination Date,
such loans in Dollars as the Borrower may request under this Section 2.01(b) (individually,
a “Revolving Loan”); provided, however, that (i) the sum of (A) the
Effective Amount of all Revolving Loans made by such Lender at any time outstanding and (B) such
Lender’s Revolving Proportionate Share of the Effective Amount of all L/C Obligations and all Swing
Line Loans at any time outstanding shall not exceed such Lender’s Revolving Loan Commitment at such
time and (ii) the sum of (A) the Effective Amount of all Revolving Loans made by all of the
Revolving Lenders at any time outstanding and (B) the Effective Amount of all L/C Obligations and
Swing Line Loans at any time outstanding shall not exceed the Revolving Loan Facility at such time.
All Revolving Loans shall be made on a pro rata basis by the Revolving Lenders in accordance with
their respective Revolving Proportionate Shares, with each Revolving Loan Borrowing to be comprised
of a Revolving Loan by each Revolving Lender equal to such Lender’s Revolving Proportionate Share
of such Revolving Loan Borrowing. Except as otherwise provided herein, the Borrower may borrow,
repay and reborrow Revolving Loans until the Termination Date in respect of the Revolving Loan
Facility.

(c) Notice of Borrowing. The Borrower shall request each Borrowing (other than a
Swing Line Borrowing) by delivering to the Administrative Agent an irrevocable written notice in
the form of Exhibit A, duly executed by an Officer of the Borrower and appropriately
completed (a “Notice of Borrowing”), which specifies, among other things:

(i) The Facility under which such Borrowing is to be made;

(ii) The principal amount of the requested Borrowing, which shall be in the amount of
(A) $1,000,000 or an integral multiple of $500,000 in excess thereof in the case of a Borrowing
consisting of Base Rate Loans or (B) $3,000,000 or an integral multiple of $1,000,000 in excess
thereof in the case of a Borrowing consisting of LIBOR Loans;

(iii) Whether the requested Borrowing is to consist of Base Rate Loans or LIBOR Loans;

(iv) If the requested Borrowing is to consist of LIBOR Loans, the initial Interest Periods
selected by the Borrower for such LIBOR Loans in accordance with Section 2.01(h); and

(v) The date of the requested Borrowing, which shall be a Business Day.

The Borrower shall give each Notice of Borrowing to the Administrative Agent not later than
11:00 a.m. at least three Business Days before the date of the requested Borrowing in the case of a
Borrowing consisting of LIBOR Loans and not later than 11:00 a.m. at least one Business Day before
the date of the requested Borrowing in the case of a Borrowing consisting of Base Rate Loans. Each
Notice of Borrowing shall be delivered by first-class mail, or facsimile or e-mail transmission to
the Administrative Agent at the facsimile number, e-mail address, and/or address specified on
Schedule IV and during the hours specified in Section 8.01; provided,
however, that the Borrower shall, if requested by the Administrative Agent, deliver to the
Administrative Agent by first-class mail the original of any Notice of Borrowing initially
delivered by facsimile or e-mail transmission. The Administrative Agent shall promptly notify each
Appropriate Lender of the contents of each Notice of Borrowing and of the amount and Type of (and,
if applicable, the Interest Period for) Loan to be made by such Lender as part of the requested
Borrowing.

(d) Interest Rates. The Borrower shall pay interest on the unpaid principal amount of
each Loan from the date of such Loan until paid in full, at one of the following rates per annum:

(i) During such periods as such Loan is a Base Rate Loan, at a rate per annum equal to the
Base Rate plus the Applicable Margin therefor, such rate to change from time to time as the
Applicable Margin or Base Rate shall change; and

(ii) During such periods as such Loan is a LIBOR Loan, at a rate per annum equal at all times
during each Interest Period for such LIBOR Loan to the LIBOR Rate for such Interest Period plus the
Applicable Margin therefor, such rate to change from time to time during such Interest Period as
the Applicable Margin shall change.

(e) Interest Payments. The Borrower shall pay accrued interest on the unpaid
principal amount of each Loan in arrears (A) in the case of a Base Rate Loan, on the last Business
Day of each quarter, (B) in the case of a LIBOR Loan, on the last day of each Interest Period
therefor (and, if any such Interest Period is longer than three months, every three months after
the first day of such Interest Period) and (C) in the case of all Loans, upon prepayment (to the
extent thereof) and on the Termination Date.

(f) Number of Borrowings. The number of Revolving Loan Borrowings consisting of LIBOR
Loans shall not exceed 10 at any time, and the number of Term Loan Borrowings consisting of LIBOR
Loans shall not exceed two at any time.

(g) Conversion of Loans. Subject to Section 2.13, the Borrower may convert
all or part of the Loans comprising a Revolving Loan Borrowing or a Term Loan Borrowing from one
Type to the other Type; provided, however, that no Base Rate Loan may be converted
into a LIBOR Loan after the occurrence and during the continuance of an Event of Default, and
provided, further, that any conversion of a LIBOR Loan on any day other than the
last day of the Interest Period therefor shall be subject to the payments required under
Section 2.13. The Borrower shall request such a conversion by delivering an irrevocable
written notice to the Administrative Agent in the form of Exhibit B, duly executed by an
Officer of the Borrower and appropriately completed (a “Notice of Conversion”), specifying,
among other things:

(i) The Borrowing which is to be converted;

(ii) The Type of Borrowing into which such Borrowing is to be converted;

(iii) If such Borrowing is to be converted into a Borrowing consisting of LIBOR Loans, the
initial Interest Period selected by the Borrower for such LIBOR Loans in accordance with
Section 2.01(h); and

(iv) The date of the requested conversion, which shall be a Business Day.

The Borrower shall give each Notice of Conversion to the Administrative Agent not later than
11:00 a.m. at least three Business Days before the date of the requested conversion. Each Notice
of Conversion shall be delivered by first-class mail or facsimile or e-mail transmission to the
Administrative Agent at the facsimile number, e-mail address, and/or address specified on
Schedule IV and during the hours specified in Section 8.01; provided,
however, that the Borrower shall, if requested by the Administrative Agent, promptly
deliver to the Administrative Agent by first-class mail the original of any Notice of Conversion
initially delivered by facsimile or e-mail transmission. The Administrative Agent shall promptly
notify each Appropriate Lender of the contents of each Notice of Conversion.

(h) LIBOR Loan Interest Periods.

(i) The initial and each subsequent Interest Period selected by the Borrower for the LIBOR
Loans comprising all or part of a Borrowing shall be one, two, three or six months (or, if all
Appropriate Lenders agree, nine or 12 months); provided, however, that (A) any
Interest Period which would otherwise end on a day which is not a Business Day shall be extended to
the next succeeding Business Day unless such next Business Day falls in another calendar month, in
which case such Interest Period shall end on the immediately preceding Business Day; (B) any
Interest Period which begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of a calendar month; and (C) no Interest Period for all or part
of the Loans comprising a Revolving Loan Borrowing or a Term Loan Borrowing, as applicable, shall
end after the Termination Date for the applicable Commitment. Notwithstanding the foregoing, the
Borrower shall not select any LIBOR Loans until the syndication of the Facilities shall have been
completed as separately agreed by and between the Lead Arranger and the Borrower.

(ii) The Borrower shall notify the Administrative Agent by an irrevocable written notice in
the form of Exhibit C, duly executed by an Officer of the Borrower and appropriately
completed (a “Notice of Interest Period Selection”), not later than 11:00 a.m. at least
three Business Days prior to the last day of each Interest Period for LIBOR Loans comprising all or
part of a Borrowing, of the Interest Period selected by the Borrower for the next succeeding
Interest Period for such LIBOR Loans; provided, however, that no LIBOR Loan shall
be continued for an additional Interest Period after the occurrence and during the continuance of
an Event of Default. Each Notice of Interest Period Selection shall be given by first-class mail
or facsimile or e-mail transmission to the Administrative Agent at the facsimile number, e-mail
address, and/or address and during the hours specified in Schedule IV; provided,
however, that the Borrower shall, if requested by the Administrative Agent, promptly
deliver to the Administrative Agent by first-class mail the original of any Notice of Interest
Period Selection initially delivered by facsimile or e-mail transmission. If (A) the Borrower
fails to notify the Administrative Agent of the next Interest Period for any LIBOR Loans comprising
all or part of a Borrowing in accordance with this Section 2.01(h) or (B) an Event of
Default has occurred and is continuing on the last date of an Interest Period for any LIBOR Loan,
such LIBOR Loan(s) shall automatically convert to Base Rate Loan(s) at the end of the last day of
the current Interest Period therefor. The Administrative Agent shall promptly notify each
Appropriate Lender of the contents of each Notice of Interest Period Selection.

(i) Scheduled Revolving Loan Repayments. The Borrower shall repay the principal
amount of the Revolving Loans on the Termination Date in respect of the Revolving Loan Facility.

(j) Scheduled Term Loan Repayments. The Borrower shall repay to the Administrative
Agent for the ratable account of the Term Lenders the aggregate outstanding principal amount of the
Term Loans on the following dates in the amounts indicated (which amounts shall be reduced as a
result of the application of prepayments in accordance with Section 2.06):

	 	 	 	 	 
	Date	 	Amount
	June 30, 2008

	 	$	2,500,000	 
	September 30, 2008

	 	$	2,500,000	 
	December 31, 2008

	 	$	2,500,000	 
	March 31, 2009

	 	$	2,500,000	 
	June 30, 2009

	 	$	2,500,000	 
	September 30, 2009

	 	$	2,500,000	 
	December 31, 2009

	 	$	2,500,000	 
	March 31, 2010

	 	$	2,500,000	 
	June 30, 2010

	 	$	5,000,000	 
	September 30, 2010

	 	$	5,000,000	 
	December 31, 2010

	 	$	5,000,000	 
	March 31, 2011

	 	$	5,000,000	 
	June 30, 2011

	 	$	5,000,000	 
	September 30, 2011

	 	$	5,000,000	 
	December 31, 2011

	 	$	5,000,000	 
	March 31, 2012

	 	$	5,000,000	 
	June 30, 2012

	 	$	5,000,000	 
	September 30, 2012

	 	$	5,000,000	 
	December 31, 2012

	 	$	5,000,000	 
	March 31, 2013

	 	$	5,000,000	 
	June 30, 2013

	 	$	5,000,000	 
	September 30, 2013

	 	$	5,000,000	 
	December 31, 2013

	 	$	5,000,000	 
	March 31, 2014

	 	$	105,000,000	 

provided, however, that the final principal installment shall be repaid on the
Termination Date in respect of the Term Loan Facility and in any event shall be in an amount equal
to the aggregate principal amount of the Term Loans outstanding on such date.

(k) Purpose.

(i) The Borrower shall use the proceeds of the Revolving Loans, Swing Line Loans and Letters
of Credit to: (A) provide for the working capital, Capital Expenditures and general purpose needs
of any Borrower Entity; (B) pay fees and expenses incurred in connection with the Transaction; (C)
finance Permitted Acquisitions and related expenses; (D) notwithstanding any continuing Event of
Default, finance, through Distributions, loans, or other transfers to CBII, CBII Overhead Expenses;
and (E) subject to compliance with Section 5.02(f), finance, through Distributions, loans,
or other transfers to CBII, any working capital and general corporate needs of CBII.

(ii) The Borrower shall use the proceeds of the Term Loans to: (A) pay fees and expenses
related to the Transaction; and (B) refinance certain existing Indebtedness of the Borrower,
including all obligations under the Existing Credit Agreement and the other Credit Documents (as
defined in the Existing Credit Agreement); (C) provide for the working capital, Capital
Expenditures and general purpose needs of any Borrower Entity; (D) finance Permitted Acquisitions
and related expenses; (E) notwithstanding any continuing Event of Default, finance, through
Distributions, loans, or other transfers to CBII, CBII Overhead Expenses; and (F) subject to
compliance with Section 5.02(f), finance, through Distributions, loans, or other transfers
to CBII, any working capital and general corporate needs of CBII.

(l) The Other Obligations. In addition to the foregoing, the Borrower hereby promises
to pay all Obligations, including, without limitation, the principal amount of the Loans, amounts
drawn under Letters of Credit and interest and fees on the foregoing, as the same become due and
payable hereunder and, in any event, on the applicable Termination Date.

SECTION 2.02. Letters of Credit.

(a) The Letter of Credit Commitment.

(i) On the terms and subject to the conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the other Revolving Lenders set forth in this Section 2.02,
(1) from time to time on any Business Day during the period from the Effective Date until the
Letter of Credit Expiration Date, to issue Letters of Credit in Dollars (or in Non-US Currency) for
the account of the Borrower, (2) from time to time on any Business Day during the period from the
Effective Date until the Letter of Credit Expiration Date, to amend or renew Letters of Credit
previously issued by it, in accordance with Section 2.02(b) and (3) to honor drafts under
the Letters of Credit issued by it and (B) the Revolving Lenders severally agree to participate in
Letters of Credit issued for the account of the Borrower; provided that the L/C Issuer
shall not be obligated to make any L/C Credit Extension with respect to any Letter of Credit, and
no Revolving Lender shall be obligated to participate in any Letter of Credit, if as of the date of
such L/C Credit Extension, (x) the Effective Amount of all Revolving Loans, Swing Line Loans and
L/C Obligations would exceed the Revolving Loan Facility at such time, (y) the aggregate Effective
Amount of the Revolving Loans of any Revolving Lender, plus such Lender’s Revolving Proportionate
Share of the Effective Amount of all L/C Obligations, plus such Lender’s Revolving Proportionate
Share of the Effective Amount of all Swing Line Loans would exceed such Lender’s Revolving Loan
Commitment or (z) either (i) the Effective Amount of the L/C Obligations would exceed the Letter of
Credit Sublimit or (ii) the Effective Amount of the L/C Obligations in respect of Non-US Currency
Letters of Credit would exceed the Non-US Currency Letter of Credit Sublimit. Within the foregoing
limits, and on the terms and subject to the conditions hereof, the Borrower’s ability to obtain
Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing
period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been
drawn upon and reimbursed.

(ii) An L/C Issuer shall be under no obligation to issue any Letter of Credit if:

(A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its
terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any
Requirement of Law applicable to the L/C Issuer or any request or directive (whether or not having
the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall
prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally
or such Letter of Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the L/C
Issuer any unreimbursed loss, cost or expense which was not applicable on the Effective Date and
which the L/C Issuer in good faith deems material to it;

(B) subject to Section 2.02(b)(iii), the expiry date of such requested Letter of
Credit would occur more than 12 months after the date of issuance or last renewal, unless the
Required Revolving Lenders have approved such expiry date;

(C) the expiry date of such requested Letter of Credit would occur after the Letter of Credit
Expiration Date, unless all of the Revolving Lenders have approved such expiry date;

(D) the issuance of such Letter of Credit would violate one or more policies of general
application of the L/C Issuer;

(E) only with respect to a request for a Non-US Currency Letter of Credit, the L/C Issuer
determines that current or reasonably expected market conditions for the applicable Non-US Currency
are unusually unstable or would make it unlawful, impossible or impracticable for the L/C Issuer to
fund or hedge its obligations under the Non-US Currency Letter of Credit; or

(F) such Letter of Credit is: in a face amount less than $50,000 (or the US Currency
Equivalent thereof on the date of issuance).

(iii) An L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the L/C
Issuer would have no obligation at such time to issue such Letter of Credit in its amended form
under the terms hereof or (B) the beneficiary of such Letter of Credit does not accept the proposed
amendment to such Letter of Credit.

(b) Procedures for Issuance and Amendment of Letters of Credit; Evergreen Letters of
Credit.

(i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of
the Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent) in the form of a
Letter of Credit Application, appropriately completed and signed by an Officer of the Borrower.
Such Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent
not later than 11:00 a.m., at least two Business Days (or such later date and time as the L/C
Issuer may agree in a particular instance in its sole discretion) prior to the proposed issuance
date or date of amendment, as the case may be. In the case of a request for an initial issuance of
a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory
to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which date
shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and
address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case
of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary
in case of any drawing thereunder; and (G) such other matters as the L/C Issuer may reasonably
require. In the case of a request for an amendment of any outstanding Letter of Credit, such
Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer
(1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which date
shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as
the L/C Issuer may reasonably require.

(ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the Administrative Agent has
received a copy of such Letter of Credit Application from the Borrower and, if not, the L/C Issuer
will provide the Administrative Agent with a copy thereof. Upon receipt by the L/C Issuer of
confirmation from the Administrative Agent that the requested issuance or amendment is permitted in
accordance with the terms hereof, then, subject to the terms and conditions hereof, the L/C Issuer
shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter
into the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s
usual and customary business practices. Immediately upon the issuance of each Letter of Credit,
each Revolving Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the L/C Issuer a participation in such Letter of Credit in an amount equal to the
product of such Lender’s then-current Revolving Proportionate Share times the amount of
such Letter of Credit. The Administrative Agent shall promptly notify each Revolving Lender upon
the issuance of a Letter of Credit.

(iii) If the Borrower so requests in any applicable Letter of Credit Application, the L/C
Issuer may, but shall not be obligated to, agree to issue a Letter of Credit that has automatic
renewal provisions (each, an “Evergreen Letter of Credit”); provided that any such
Evergreen Letter of Credit must permit the L/C Issuer to prevent any such renewal at least once in
each 12 month period (commencing with the date of issuance of such Letter of Credit) by giving
prior notice to the beneficiary thereof not later than a day (the “Nonrenewal Notice Date”)
in each such 12 month period to be agreed upon at the time such Letter of Credit is issued. Unless
otherwise directed by an L/C Issuer, the Borrower shall not be required to make a specific request
to the L/C Issuer for any such renewal. Once an Evergreen Letter of Credit has been issued, the
Revolving Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit
the renewal of such Letter of Credit at any time to a date not later than the Letter of Credit
Expiration Date (and for avoidance of doubt, any Evergreen Letter of Credit to be renewed, whether
automatically or at the request of the Borrower, to a date later than the Letter of Credit
Expiration Date shall require the approval of all Revolving Lenders); provided,
however, that the L/C Issuer shall not permit any such renewal if it has received notice
(which may be by telephone or in writing) on or before the Business Day immediately preceding the
Nonrenewal Notice Date (A) from the Administrative Agent that the Required Revolving Lenders have
elected not to permit such renewal or (B) from the Administrative Agent, any Revolving Lender or
the Borrower that one or more of the applicable conditions specified in Section 3.02 is not
then satisfied, and provided, further, that the L/C Issuer shall not be obligated
to permit any such renewal if the L/C Issuer would have no obligation at such time to issue such
Letter of Credit in its renewed form under the terms hereof. Notwithstanding anything to the
contrary contained herein, the L/C Issuer shall have no obligation to permit the renewal of any
Evergreen Letter of Credit at any time.

(iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will
also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter
of Credit or amendment.

(c) Drawings and Reimbursements; Funding of Participations.

(i) Upon any drawing under any Letter of Credit, the L/C Issuer shall notify the Borrower and
the Administrative Agent of the amount to be paid by the L/C Issuer as a result of such drawing and
the date on which payment is to be made by the L/C Issuer to the beneficiary of such Letter of
Credit in respect of such drawing. Not later than 11:00 a.m., on the date of any payment by the
L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower shall
reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount of such
drawing (any reimbursement with respect to amounts drawn under a Non-US Currency Letter of Credit
shall be paid in the applicable Non-US Currency, except that upon the occurrence and during the
continuance of a Default, the Administrative Agent may require that any reimbursement be paid in
the US Currency Equivalent of such amount). If the Borrower fails to so reimburse the L/C Issuer
by such time, the Administrative Agent shall promptly notify each Revolving Lender of the Honor
Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and such
Revolving Lender’s Revolving Proportionate Share thereof. In such event, the Borrower shall be
deemed to have requested a Revolving Loan Borrowing of Base Rate Loans to be disbursed on the Honor
Date in an amount equal to the Unreimbursed Amount (provided that in the case of an
Unreimbursed Amount in a Non-US Currency (a “Non-US Currency Unreimbursed Amount”), such
amount shall be the US Currency Equivalent of such amount plus any related transaction costs, all
of which are the Borrower’s responsibility), without regard to the minimum and multiples specified
in Section 2.01 for the principal amount of Base Rate Loans, but subject to the amount of
the unutilized portion of the Revolving Loan Facility and the conditions set forth in Section
3.02 (other than the delivery of a Notice of Borrowing). Any notice given by the L/C Issuer or
the Administrative Agent pursuant to this Section 2.02(c)(i) may be given by telephone if
immediately confirmed in writing; provided that the lack of such an immediate confirmation
shall not affect the conclusiveness or binding effect of such notice.

(ii) Each Revolving Lender (including the Revolving Lender acting as L/C Issuer), on a several
basis, shall upon any notice pursuant to Section 2.02(c)(i) make funds available to the
Administrative Agent for the account of the L/C Issuer at the Administrative Agent’s office in an
amount equal to its Revolving Proportionate Share of the Unreimbursed Amount not later than 1:00
p.m. on the Business Day specified in such notice by the Administrative Agent, whereupon, subject
to the provisions of Section 2.02(c)(iii), each Revolving Lender that so makes funds
available shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The
Administrative Agent shall remit the funds so received to the L/C Issuer.

(iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving Loan
Borrowing because the conditions set forth in Section 3.02 cannot be satisfied or for any
other reason, the Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in
the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable upon demand by the Administrative Agent (together with interest) and shall bear
interest at the Default Rate (provided that interest on any Non-US Currency Unreimbursed
Amount shall accrue based on the US Currency Equivalent as of any date of determination of such
Non-US Currency Unreimbursed Amount). In such event, each Revolving Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section 2.02(c)(ii)
shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute
an L/C Advance from such Revolving Lender in satisfaction of its participation obligation under
this Section 2.02 (provided that in the case of any Non-US Currency Unreimbursed
Amount, any such amount shall be such Revolving Lender’s Revolving Proportionate Share of the US
Currency Equivalent of such amount plus any related transaction costs, all of which are the
Borrower’s responsibility).

(iv) Until each Revolving Lender funds its Revolving Loan or L/C Advance pursuant to this
Section 2.02(c) to reimburse the L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Revolving Lender’s Revolving Proportionate Share of such amount
shall be solely for the account of the L/C Issuer.

(v) Each Revolving Lender’s obligation to make Revolving Loans or L/C Advances to reimburse
the L/C Issuer for, or participate in, amounts drawn under Letters of Credit, as contemplated by
this Section 2.02(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense or other right which
such Revolving Lender may have against the L/C Issuer, the Borrower or any other Person for any
reason whatsoever, (B) the occurrence or continuance of a Default or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing (including any event described
in Sections 2.02(e)(i) through 2.02(e)(vi)). Any such reimbursement shall not
relieve or otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for the
amount of any payment made by the L/C Issuer under any Letter of Credit, together with interest as
provided herein.

(vi) If any Revolving Lender fails to make available to the Administrative Agent for the
account of the L/C Issuer any amount required to be paid by such Revolving Lender pursuant to the
foregoing provisions of this Section 2.02(c) by the time specified in Section
2.02(c)(ii), the L/C Issuer shall be entitled to recover from such Revolving Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the period from
the date such payment is required to the date on which such payment is immediately available to the
L/C Issuer at a per annum rate equal to (A) the daily Federal Funds Rate during the period from the
date such payment is required through the third day thereafter and (B) the rate applicable to Base
Rate Loans thereafter. A certificate of the L/C Issuer submitted to any Revolving Lender (through
the Administrative Agent) with respect to any amounts owing under this Section 2.02(c)(vi)
shall be conclusive absent manifest error.

(d) Repayment of Participations.

(i) At any time after an L/C Issuer has made a payment under any Letter of Credit and has
received from any Revolving Lender such Revolving Lender’s L/C Advance in respect of such payment
in accordance with Section 2.02(c), if the Administrative Agent receives for the account of
the L/C Issuer any payment related to such Letter of Credit (whether directly from the Borrower or
otherwise, including proceeds of cash collateral applied thereto by the Administrative Agent), or
any payment of interest thereon, the Administrative Agent will distribute to such Revolving Lender
its Revolving Proportionate Share thereof in the same funds as those received by the Administrative
Agent.

(ii) If any payment received by the Administrative Agent for the account of the L/C Issuer
pursuant to Section 2.02(c)(i) is required to be returned, each Revolving Lender shall pay
to the Administrative Agent for the account of the L/C Issuer its Revolving Proportionate Share
thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand
to the date such amount is returned by such Revolving Lender, at a per annum rate equal to (A) the
daily Federal Funds Rate during the period from the date of such demand through the third day
thereafter and (B) the rate applicable to Base Rate Loans thereafter.

(e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C Issuer
for each drawing under each Letter of Credit, and to repay each L/C Borrowing and each drawing
under a Letter of Credit that is refinanced by a Borrowing of Revolving Loans, shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement and the other Credit Documents under all circumstances, including the following:

(i) any lack of validity or enforceability of such Letter of Credit, this Agreement, the
Credit Documents, or any other agreement or instrument relating thereto;

(ii) any change in the time, manner or place of payment of, or in any other term of, all or
any of the obligations of the Borrower in respect of any Letter of Credit or any other amendment or
waiver of, or any consent to departure from, all or any of the Credit Documents;

(iii) the existence of any claim, counterclaim, set-off, defense or other right that the
Borrower may have at any time against any beneficiary or any transferee of such Letter of Credit
(or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer
or any other Person, whether in connection with this Agreement, the transactions contemplated
hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction;

(iv) any draft, demand, certificate or other document presented under such Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of
any document required in order to make a drawing under such Letter of Credit;

(v) any payment by the L/C Issuer under such Letter of Credit against presentation of a draft
or certificate that does not strictly comply with the terms of such Letter of Credit; or any
payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee
in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or
other representative of or successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any Debtor Relief Law; or

(vi) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a defense available to,
or a discharge of, the Borrower.

The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s
instructions or other irregularity, the Borrower will promptly, and in any event prior to the L/C
Issuer taking any applicable action with respect to such Letter of Credit, notify the L/C Issuer.
The Borrower shall be conclusively deemed to have waived any such claim against the L/C Issuer and
its correspondents unless such notice is given before the action giving rise to such claims has
been taken.

(f) Role of L/C Issuer. Each of the Borrower and the Revolving Lenders agrees that,
in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to
obtain any document (other than any sight draft, certificates and documents expressly required by
the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such document. Neither the
Administrative Agent nor the L/C Issuer nor any of their respective affiliates, directors,
officers, employees, agents or advisors nor any of the correspondents, participants or assignees of
the L/C Issuer shall be liable to any Revolving Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Revolving Lenders or the Required
Revolving Lenders, as applicable; (ii) any action taken or omitted in the absence of gross
negligence or willful misconduct, as determined by a final non-appealable judgment of a court of
competent jurisdiction, or (iii) the due execution, effectiveness, validity or enforceability of
any document or instrument related to any Letter of Credit or Letter of Credit Application. The
Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided, however, that this assumption
is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it
may have against the beneficiary or transferee at law or under any other agreement. Neither the
Administrative Agent nor the L/C Issuer nor any of their respective affiliates, directors,
officers, employees, agents or advisors nor any of the correspondents, participants or assignees of
the L/C Issuer shall be liable or responsible for any of the matters described in Section
2.02(e)(i) through 2.02(e)(vi); provided, however, that anything in
such Sections to the contrary notwithstanding, the Borrower may have a claim against the L/C
Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of
any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the
Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence (as
determined by a final non-appealable judgment of a court of competent jurisdiction). In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity
or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason.

(g) Cash Collateral. Upon the request of the Administrative Agent, (i) if the L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing or (ii) if, as of the Termination Date in respect of the Revolving
Loan Facility, any Letter of Credit may for any reason remain outstanding and partially or wholly
undrawn, the Borrower shall immediately Cash Collateralize the Obligations in respect of such
Letter of Credit in an amount equal to the then Effective Amount of the L/C Obligations. The
Borrower hereby grants the Administrative Agent, for the benefit of the L/C Issuer and the
Revolving Lenders, a Lien on all such cash and deposit account balances described in the definition
of “Cash Collateralize” as security for such Obligations in respect of such Letter of Credit. Cash
collateral shall be maintained in blocked, interest bearing deposit accounts at Rabobank, N.A. or
another institution satisfactory to the Administrative Agent. The Lien held by the Administrative
Agent in such cash collateral to secure such Obligations shall be released upon the satisfaction of
each of the following conditions: (a) no Letters of Credit shall be outstanding; (b) all L/C
Obligations shall have been repaid in full; and (c) no Default shall have occurred and be
continuing. To the extent that such cash collateral exceeds the L/C Obligations as Letters of
Credit expire or are replaced or L/C Obligations decrease, such excess cash collateral shall be
released to, or as directed by, the Borrower; provided, however, that no Event of
Default shall exist and be continuing.

(h) Applicability of ISP98 and UCP. Unless otherwise expressly agreed to by the L/C
Issuer and the Borrower when a Letter of Credit is issued, (i) the rules of the “International
Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance) shall apply to each standby
Letter of Credit and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as
most recently published by the International Chamber of Commerce (the “ICC”) at the time of
issuance shall apply to each commercial Letter of Credit.

(i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent, for
the account of each Revolving Lender in accordance with such Revolving Lender’s Revolving
Proportionate Share, a Letter of Credit fee for each Letter of Credit equal to the Letter of Credit
Fee Percentage (plus an additional 2% per annum, if an Event of Default has occurred and is
continuing) on the undrawn amount of such Letter of Credit (which amount shall be the US Currency
Equivalent in the case of Non-US Currency Letters of Credit), prorated, if applicable, in the case
of a renewal date or an expiry date of less than one year. Such fee for each Letter of Credit
shall be due and payable after the issuance thereof, and any renewal or extension thereof (whether
by amendment, automatic or otherwise). The fee is due and payable quarterly in arrears with each
payment for the preceding quarter due on the first Business Day of the calendar month immediately
following such quarter, and is nonrefundable.

(j) Issuance Fee; Documentary, Presentation, Amendment, and Processing Charges Payable to
L/C Issuer. The Borrower shall pay directly to the L/C Issuer for its own account (i) an
issuance fee in an amount with respect to each Letter of Credit (whether standby or commercial)
equal to 0.125% of the amount of such Letter of Credit (which amount shall be the US Currency
Equivalent in the case of Non-US Currency Letters of Credit), due and payable upon each L/C Credit
Extension with respect to such Letter of Credit and (ii) the customary, documentary, presentation,
amendment, and processing fees, and other standard published costs and charges, of the L/C Issuer
relating to letters of credit as from time to time in effect; provided, however,
that any Letters of Credit issued for the benefit of Wachovia Bank, National Association, in
connection with letters of credit existing under the Existing Credit Agreement, on the Effective
Date shall not be subject to new or additional issuance, customary, documentary or processing fees
on the Effective Date as a result of such issuance. Any applicable fees and charges are due and
payable on demand and are non-refundable.

(k) Non-US Currency Letters of Credit Computation of US Currency Equivalent. The
Administrative Agent will determine the US Currency Equivalent with respect to any Non-US Currency
Letter of Credit (i) as of the date of issuance thereof, (ii) at least one time each fiscal quarter
and (iii) at such other times as reasonably requested by the Borrower or any Lender (each,
“Computation Date”). The Administrative Agent will provide the Borrower with written
notice of the amount determined pursuant to this Section 2.02(k) from time to time,
including following the end of each fiscal quarter. Upon receipt of such notice and upon the
request of the Administrative Agent, if the Non-US Currency Letter of Credit Sublimit shall be
exceeded on any Computation Date, whether as a result of market fluctuation of the applicable
Non-US Currency or otherwise, the Borrower shall (A) immediately prepay the Obligations in respect
of the Revolving Loan Facility in the manner set forth in Section 2.06(e) or (B) if
requested by the Administrative Agent, Cash Collateralize the Obligations in respect of any
outstanding Letter of Credit in the manner set forth in Section 2.02(g), in either case, in
an aggregate principal amount equal to such excess.

(l) Conflict with Letter of Credit Application. In the event of any conflict between
the terms hereof and the terms of any Letter of Credit Application, the terms hereof shall control.

SECTION 2.03. Swing Line.

(a) The Swing Line. On the terms and subject to the conditions set forth herein, the
Swing Line Lender agrees to make loans (each such loan, a “Swing Line Loan”) in Dollars to
the Borrower from time to time on any Business Day during the period from the Effective Date to the
Termination Date in respect of the Revolving Loan Facility in an aggregate amount not to exceed at
any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such
Swing Line Loans, when aggregated with the Effective Amount of Revolving Loans of the Swing Line
Lender in its capacity as a Lender of Revolving Loans, may exceed the amount of such Lender’s
Revolving Loan Commitment; provided, however, that after giving effect to any Swing
Line Loan, (i) the aggregate Effective Amount of all Revolving Loans, Swing Line Loans and L/C
Obligations shall not exceed the Revolving Loan Facility at such time and (ii) the aggregate
Effective Amount of the Revolving Loans of any Revolving Lender (other than the Swing Line Lender),
plus such Revolving Lender’s Revolving Proportionate Share of the Effective Amount of all L/C
Obligations, plus such Revolving Lender’s Revolving Proportionate Share of the Effective Amount of
all Swing Line Loans shall not exceed such Revolving Lender’s Revolving Loan Commitment, and
provided, further, that the Swing Line Lender shall not make any Swing Line Loan to
refinance an outstanding Swing Line Loan. Within the foregoing limits, and subject to the other
terms and conditions hereof, the Borrower may borrow under this Section 2.03, prepay under
Section 2.06, and reborrow under this Section 2.03. Each Swing Line Loan shall be
a Base Rate Loan. Immediately upon the making of a Swing Line Loan, each Revolving Lender, on a
several basis, shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase
from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the
product of such Revolving Lender’s Revolving Proportionate Share times the amount of such Swing
Line Loan; provided, however, that the Revolving Lenders shall not have an
obligation to purchase risk participations from the Swing Line Lender if the relevant Swing Line
Loan was made without consent of the Required Revolving Lenders during the existence of an Event of
Default with respect to which the Swing Line Lender has received a written notice from a Lender or
the Borrower, referring to this Agreement, describing such Event of Default and stating that such
notice is a “Notice of Event of Default”. The Borrower shall pay all outstanding principal on
Swing Line Loans (which may be refinanced as provided in Section 2.03(c)) on the fifteenth
day of each month (or, if such date is not a Business Day, the next Business Day) and the last
Business Day of each month.

(b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the Borrower’s
irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Swing Line Lender and the Administrative Agent
not later than 9:00 a.m., on the requested borrowing date, and shall specify (i) the amount to be
borrowed, which amount shall be a minimum amount of $250,000 or an integral multiple of $50,000 in
excess thereof, and (ii) the requested borrowing date, which shall be a Business Day. Each such
telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the
Administrative Agent of a written Notice of Swing Line Borrowing, appropriately completed and
signed by an Officer of the Borrower. Promptly after receipt by the Swing Line Lender of any
telephonic Notice of Swing Line Borrowing, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent has also received
such Notice of Swing Line Borrowing and, if not, the Swing Line Lender will notify the
Administrative Agent (by telephone or in writing) of the contents thereof. Unless the Swing Line
Lender has received notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) prior to 12:00 noon on the date of the proposed Swing Line Borrowing
(A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations
set forth in the first proviso to the first sentence of Section 2.03(a) or (B) that one or
more of the applicable conditions specified in Section 3.02 is not then satisfied, then,
subject to the terms and conditions hereof, the Swing Line Lender will, not later than 1:00 p.m. on
the borrowing date specified in such Notice of Swing Line Borrowing, make the amount of its Swing
Line Loan available to the Borrower at its office by crediting the account of the Borrower on the
books of the Swing Line Lender in immediately available funds.

(c) Refinancing of Swing Line Loans.

(i) The Swing Line Lender at any time in its sole and absolute discretion may request, on
behalf of the Borrower (which hereby irrevocably authorizes and requests the Swing Line Lender to
act on its behalf), that each Revolving Lender make a Base Rate Loan in an amount equal to such
Revolving Lender’s Revolving Proportionate Share of the amount of Swing Line Loans then
outstanding. Such request shall be made to the Administrative Agent by not later than 12:00 noon
on the Business Day before the date of the requested refinancing and shall specify the amount of
Swing Line Loans then outstanding and the date on which the Base Rate Loan is to be made and shall
be subject to the unutilized portion of the Revolving Loan Facility and the conditions set forth in
Section 3.02 (other than delivery of a Notice of Borrowing). The Swing Line Lender shall
furnish the Borrower with a copy of the applicable request promptly after delivering such notice to
the Administrative Agent. The Administrative Agent shall promptly notify each Appropriate Lender
of the contents of the applicable request. Each Revolving Lender shall make an amount equal to its
Revolving Proportionate Share of the amount specified in such request available to the
Administrative Agent in immediately available funds for the account of the Swing Line Lender at the
Administrative Agent’s Office not later than 12:00 noon, on the day specified in such request,
whereupon, subject to Section 2.03(c)(ii), each Revolving Lender that so makes funds
available shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The
Administrative Agent shall remit the funds so received to the Swing Line Lender.

(ii) If for any reason any Revolving Loan Borrowing cannot be requested in accordance with
Section 2.03(c)(i) or any Swing Line Loan cannot be refinanced by such a Revolving Loan
Borrowing, the request submitted by the Swing Line Lender shall be deemed to be a request by the
Swing Line Lender that each of the Revolving Lenders fund its participation in the relevant Swing
Line Loan and each Revolving Lender’s payment to the Administrative Agent for the account of the
Swing Line Lender pursuant to Section 2.03(c)(i) shall be deemed payment in respect of such
participation.

(iii) If any Revolving Lender fails to make available to the Administrative Agent for the
account of the Swing Line Lender any amount required to be paid by such Revolving Lender pursuant
to the foregoing provisions of this Section 2.03(c) by the time specified in
Section 2.03(c)(i), the Swing Line Lender (acting through the Administrative Agent) shall
be entitled to recover from such Revolving Lender, on demand, such amount with interest thereon for
the period from the date such payment is required to the date on which such payment is immediately
available to the Swing Line Lender at a per annum rate equal to (A) the daily Federal Funds Rate
during the period from the date such payment is required through the third day thereafter and (B)
the rate applicable to Base Rate Loans thereafter. A certificate of the Swing Line Lender
submitted to any Revolving Lender (through the Administrative Agent) with respect to any amounts
owing under this Section 2.03(c)(iii) shall be conclusive absent manifest error.

(iv) Each Revolving Lender’s obligation to make Revolving Loans or to purchase and fund
participations in Swing Line Loans pursuant to this Section 2.03(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any set-off,
counterclaim, recoupment, defense or other right which such Revolving Lender may have against the
Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence
or continuance of a Default or (C) any other occurrence, event or condition, whether or not similar
to any of the foregoing. Any such purchase of participations shall not relieve or otherwise impair
the obligation of the Borrower to repay Swing Line Loans, together with interest as provided
herein.

(d) Repayment of Participations.

(i) At any time after any Revolving Lender has purchased and funded a participation in a Swing
Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the
Swing Line Lender will distribute to such Revolving Lender its Revolving Proportionate Share of
such payment (appropriately adjusted, in the case of interest payments, to reflect the period of
time during which such Revolving Lender’s participation was outstanding and funded) in the same
funds as those received by the Swing Line Lender.

(ii) If any payment received by the Swing Line Lender in respect of principal or interest on
any Swing Line Loan is required to be returned by the Swing Line Lender, each Revolving Lender
shall pay to the Swing Line Lender its Revolving Proportionate Share thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the date such amount is
returned by such Revolving Lender, at a per annum rate equal to (A) the daily Federal Funds Rate
during the period from the date of such demand through the third day thereafter and (B) the rate
applicable to Base Rate Loans thereafter. The Administrative Agent will make such demand upon the
request of the Swing Line Lender.

(e) Interest for Account of Swing Line Lender. Each Swing Line Loan shall bear
interest on the outstanding principal amount thereof from the applicable borrowing date at a rate
per annum equal to the Base Rate plus the Applicable Margin for Base Rate Loans in respect of the
Revolving Loan Facility. The Swing Line Lender shall be responsible for invoicing the Borrower for
interest on the Swing Line Loans. Until each Revolving Lender funds its Base Rate Loan or
participation pursuant to this Section 2.03 to refinance such Revolving Lender’s Revolving
Proportionate Shares of any Swing Line Loan, interest in respect of all such Revolving
Proportionate Shares shall be solely for the account of the Swing Line Lender. The Borrower shall
pay accrued interest on the unpaid principal amount of each Swing Line Loan upon payment (to the
extent thereof), on the last Business Day of each fiscal quarter and at maturity.

(f) Payments Directly to Swing Line Lender. The Borrower shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

SECTION 2.04. Amount Limitations, Commitment Reductions.

(a) Optional Reduction or Cancellation of Revolving Loan Commitments. The Borrower
may, upon five Business Days written notice to the Administrative Agent (each a “Reduction
Notice”), permanently reduce the Revolving Loan Facility by the amount of $5,000,000 or an
integral multiple of $5,000,000 in excess thereof or cancel the Revolving Loan Facility in its
entirety; provided, however, that:

(i) The Borrower may not reduce the Revolving Loan Facility prior to the Maturity Date, if,
after giving effect to such reduction, the Effective Amount of all Revolving Loans, L/C Obligations
and Swing Line Loans then outstanding would exceed the Revolving Loan Facility as proposed to be
reduced; and

(ii) The Borrower may not cancel the Revolving Loan Facility prior to the Maturity Date, if,
after giving effect to such cancellation, any Swing Line Loan or Revolving Loan would then remain
outstanding.

Any Reduction Notice shall be irrevocable; provided that any Reduction Notice may
state that such notice is conditioned upon the effectiveness of other credit facilities, in which
case such notice may be revoked by the Borrower (by written notice to the Administrative Agent on
or prior to the specified effective date previously provided in the applicable Reduction Notice) if
such condition is not satisfied.

(b) Mandatory Termination of Commitments.

(i) The Revolving Loan Facility shall be automatically and permanently reduced to zero on the
Maturity Date.

(ii) The Administrative Agent may, or upon instructions from the Required Revolving Lenders
shall, by written notice to the Borrower, reduce the Revolving Loan Facility to zero if any CBII
Entity shall fail to observe or perform the covenant contained in Section 5.02(p)(ii).

(c) Effect of Commitment Reductions. From and after the effective date of any
reduction of the Revolving Loan Facility, the Commitment Fees payable pursuant to Section
2.05(b) shall be computed on the basis of the Revolving Loan Facility as so reduced. Any
reduction of the Revolving Loan Facility pursuant to Section 2.04(a) shall be applied
ratably to reduce each Revolving Lender’s Commitment in accordance with Section 2.10(a)(i).

SECTION 2.05. Fees.

(a) Fee Letter. The Borrower shall pay to Rabobank the fees and other compensation in
the amounts and at the times set forth in the Fee Letter.

(b) Commitment Fees. The Borrower shall pay to the Administrative Agent, for the
ratable benefit of the Revolving Lenders as provided in Section 2.10(a)(iv), commitment
fees (collectively, the “Commitment Fees”) equal to the Commitment Fee Percentage of the
daily Unused Revolving Commitment for the period beginning on the date of this Agreement and ending
on the Maturity Date. The Borrower shall pay the Commitment Fees in arrears on the last day in
each March, June, September and December (commencing June 30, 2008) and on the Maturity Date (or if
the Revolving Loan Facility is cancelled on a date prior to the Maturity Date, on such prior date).
For purposes of the calculations under this Section 2.05(b), the aggregate principal
amount of the aggregate Effective Amount of outstanding Letters of Credit or Non-US Currency
Unreimbursed Amounts, to the extent consisting of Non-US Currency Letters of Credit shall be based
on the US Currency Equivalents relating thereto as of the Business Day immediately preceding the
last day in each March, June, September and December, as applicable.

SECTION 2.06. Prepayments.

(a) Terms of All Prepayments. Upon the prepayment of any Loan (whether such
prepayment is an optional prepayment under Section 2.06(b), a mandatory prepayment required
by Section 2.06(c) or a mandatory prepayment required by any other provision of this
Agreement or the other Credit Documents, including a prepayment upon acceleration), the Borrower
shall pay to the Lender that made such Loan (i) all accrued interest and fees to the date of such
prepayment on the amount prepaid and (ii) if such prepayment is the prepayment of a LIBOR Loan on a
day other than the last day of an Interest Period for such LIBOR Loan, all amounts payable to such
Lender pursuant to Section 2.13. For avoidance of doubt, all Lender Rate Contracts are
independent agreements governed by the written provisions of such Lender Rate Contracts, which will
remain in full force and effect, unaffected by any repayment, prepayment, acceleration, reduction,
increase or change in the terms of the Credit Documents, except as otherwise expressly provided in
such written Lender Rate Contracts; provided, however, that any payoff statement
from the Administrative Agent relating to this Agreement shall apply to such Lender Rate Contracts,
except as otherwise expressly provided in such payoff statement.

(b) Optional Prepayments.

(i) At its option, the Borrower may, upon notice of at least one Business Day to the
Administrative Agent in the case of Base Rate Loans or notice of at least three Business Days to
the Administrative Agent in the case of LIBOR Loans, prepay without premium or penalty (except as
expressly set forth in Section 2.13) the Loans in any Borrowing under any Facility selected
by the Borrower and all accrued but unpaid interest thereon in part, in a minimum principal amount
of, except as otherwise provided in Section 2.06(b)(ii), $5,000,000 or an integral multiple
of $1,000,000 in excess thereof, or in whole. Each such notice shall specify the date and amount
of such prepayment and the Facility in respect of which such prepayment shall be made;
provided that if such prepayment is to be made on any day other than on the last day of the
Interest Period applicable to such LIBOR Loan, the Borrower shall be subject to the payments
required by Section 2.13. If such notice is given by the Borrower, the Borrower shall make
such prepayment and the payment amount specified in such notice shall be due and payable on the
date specified therein. If no Event of Default has occurred and is continuing, all prepayments
under this Section 2.06(b) which are applied to reduce the principal amount of the
Revolving Loans and Swing Line Loans shall be applied to the Revolving Loans and Swing Line Loans
as directed by the Borrower. If the Borrower fails to direct the application of any such
prepayments, such prepayments shall be applied first to the accrued but unpaid interest on and then
any principal of the Swing Line Loans until paid in full, second to the accrued but unpaid interest
on and then any principal of the Revolving Loans until paid in full, and shall, in each case, to
the extent possible, be first applied to prepay Base Rate Loans and then if any funds remain, to
prepay LIBOR Loans; provided that if an Event of Default has occurred and is continuing at
the time any such prepayment is made, the Revolving Lenders shall apply such prepayments to such
Obligations as the Administrative Agent may determine in its discretion which determination shall
be effective as to all Revolving Lenders (but for regulatory purposes, the Revolving Lenders may
apply such payments internally as they shall determine). Each prepayment pursuant to this
Section 2.06(b) of Term Loans shall be applied to the installments of such Facility on a
pro rata basis.

(ii) At its option, the Borrower may, upon notice to the Swing Line Lender (with a copy to the
Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in
whole or in part without premium or penalty; provided that (A) such notice must be received
by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the date of the
prepayment and (B) any such prepayment shall be in a minimum principal amount of the lesser of (1)
$250,000 or an integral multiple of $50,000 in excess thereof and (2) the outstanding balance of
the Swing Line Loans. Each such notice shall specify the date and amount of such prepayment. If
such notice is given by the Borrower, the Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified therein.

(c) Mandatory Prepayments. Without reducing the Revolving Loan Facility or any of the
Revolving Loan Commitments, the Borrower shall prepay the Loans as follows:

(i) If, at any time, the Effective Amount of all Revolving Loans, Swing Line Loans and L/C
Obligations then outstanding exceeds the Revolving Loan Facility at such time, the Borrower shall
immediately (A) prepay the Swing Line Loans to the extent Swing Line Loans in a sufficient amount
are then outstanding, (B) then prepay the Revolving Loans to the extent Revolving Loans in a
sufficient amount are then outstanding, in an aggregate principal amount equal to such excess and
(C) Cash Collateralize the Obligations in respect of the outstanding Letters of Credit in an amount
equal to the then Effective Amount of the L/C Obligations.

(ii) If, during any fiscal year (including fiscal year 2008), any CBII Entity consummates any
Asset Sale and the Net Cash Proceeds of such Asset Sale, when added to the Net Cash Proceeds of all
such Asset Sales by all CBII Entities during such fiscal year, in the aggregate, exceed $15,000,000
for such fiscal year (the “Sales Basket Amount”), the Borrower shall, immediately after the
completion of each Asset Sale which results in such an excess or an increase in such an excess,
prepay (or cause to be prepaid) the outstanding Loans and the other Obligations in the manner set
forth in Section 2.06(e), in each case, in an aggregate principal amount equal to 100% of
such excess or such increase in such excess; provided, however, that:

(A) no such prepayment shall be required in connection with any Asset Sale (or related Asset
Sales, in a series or otherwise) otherwise permitted under Section 5.02(c) to the extent
the aggregate consideration received by the CBII Entities for such Asset Sale (or related Asset
Sales, in a series or otherwise) does not exceed $1,000,000 (and such sale proceeds shall not be
counted towards the Sales Basket Amount);

(B) so long as no Event of Default has occurred and is continuing or would result therefrom,
no such prepayment shall be required in connection with any Asset Sale (or related Asset Sale, in a
series or otherwise) (each, a “Relevant Sale”) otherwise permitted under Section
5.02(c) to the extent (1) if the Net Cash Proceeds from all Relevant Sales in any fiscal year
exceed $5,000,000, the Borrower advises the Administrative Agent in writing at the time the Net
Cash Proceeds from such Relevant Sale are received that the Borrower intends to cause a Borrower
Entity to reinvest all or any portion of such Net Cash Proceeds in property, plant, equipment,
other fixed or capital assets, and/or investments (including joint ventures) in Food Related
Businesses and (2) such Net Cash Proceeds are in fact so reinvested in the acquisition of such
assets or investments within 180 days from the date on which such Net Cash Proceeds from such
Relevant Sale are received; and

(C) anything contained in this Section 2.06(c)(ii) to the contrary notwithstanding, so
long as no Event of Default has occurred and is continuing or would result from any sale or
disposition of assets otherwise giving rise to a required prepayment under this Section
2.06(c)(ii), in the event the Borrower Leverage Ratio is, on a pro forma basis, (1) less than
2.50 to 1.00 both before and after giving effect to such sale or disposition of assets, no such
prepayment shall be required, or (2) equal to or in excess of 2.50 to 1.00 both before or after
giving effect to such disposition, such prepayment shall be required in an amount equal to the
lesser of (i) the amount of such Net Cash Proceeds and (ii) the amount necessary to decrease the
Borrower Leverage Ratio to, on a pro forma basis, less than 2.5 to 1.0 both before and after giving
effect to such disposition and the use of such Net Cash Proceeds.

If, at any time after the occurrence of a Relevant Sale and prior to the acquisition of such
assets or investments, the 180-day period provided in clause (B) above in the preceding
sentence shall elapse without the occurrence of the related acquisition or investment or an Event
of Default shall occur and is continuing, then the Borrower shall immediately prepay the Loans in
the amount and in the manner described in the first sentence of this Section 2.06(c)(ii).

(iii) If, during any fiscal year (including fiscal year 2008), any CBII Entity receives
Extraordinary Receipts and the Net Cash Proceeds of such Extraordinary Receipts that, when added to
the Net Cash Proceeds of all such Extraordinary Receipts obtained by all CBII Entities during such
fiscal year, in the aggregate, exceed $20,000,000 for such fiscal year, the Borrower shall, after
receipt thereof by the CBII Entities of the Net Cash Proceeds from such Extraordinary Receipts
which results in such an excess or an increase in such an excess (but subject to the reinvestment
exceptions below), immediately prepay (or cause to be prepaid) the outstanding Loans and the other
Obligations in the manner set forth in Section 2.06(e), in each case, in an aggregate
principal amount equal to 100% of such excess or such increase in such excess. Notwithstanding the
foregoing, the Borrower shall not be required to make a prepayment pursuant to this Section
2.06(c)(iii) with respect to any event resulting in the receipt of Extraordinary Receipts (a
“Relevant Event”) if the Borrower advises the Administrative Agent in writing promptly
after the time the excess Net Cash Proceeds from such Relevant Event are received that the Borrower
intends to cause a Borrower Entity to reinvest all or any portion of such excess Net Cash Proceeds
in property, plant, equipment, other replacement assets, and/or investments (including joint
ventures) in Food-Related Businesses to the extent (A) such excess Net Cash Proceeds are in fact
committed to be reinvested by such Person pursuant to a purchase contract providing for the
acquisition of such replacement assets that is executed by such Person and the related seller
within one year from the date of such Relevant Event and (B) the acquisition of such replacement
assets or investments occurs within two years from the date on which the Net Cash Proceeds from the
Relevant Event are received; provided, however, that the Borrower’s requirement to
advise the Administrative Agent as provided above shall not apply to any Relevant Event until the
Net Cash Proceeds in respect of such Relevant Events during such fiscal year exceed $20,000,000.
If, at any time after the occurrence of a Relevant Event and prior to the acquisition of the
related replacement assets or investments, the one-year or two-year period provided in clause
(A) or (B), respectively, of the preceding sentence shall elapse without execution of
the related purchase contract (in the case of clause (A)), the occurrence of the related
acquisition or investment (in the case of clause (B)) or an Event of Default shall occur
and only so long as continuing, then, upon request of the Administrative Agent or the Required
Lenders, the Borrower shall immediately prepay the Loans in the amount and in the manner described
in the first sentence of this Section 2.06(c)(iii). At any time after the occurrence of a
Relevant Event and prior to the acquisition of the related replacement assets or investments, upon
request of the Administrative Agent or the Required Lenders, the Borrower shall deposit the Net
Cash Proceeds from such Relevant Event which result in an excess over the $20,000,000 per fiscal
year amount described above or an increase in such an excess into an interest-bearing account with
Rabobank, N.A. or another institution reasonably satisfactory to the Administrative Agent (which
interest-bearing account shall be subject to a security interest in favor of the Collateral Agent
for the benefit of the Secured Parties that is perfected by the Borrower entering into a control
agreement and other documentation reasonably requested by the Administrative Agent) until such Net
Cash Proceeds are reinvested or paid toward the Loans as directed by the Borrower.

(iv) If, at any time after the Effective Date, any CBII Entity issues or incurs any
Indebtedness for borrowed money, including Indebtedness evidenced by notes, bonds, debentures or
other similar instruments that, when added to all such Indebtedness for borrowed money issued or
incurred by all CBII Entities after the Effective Date, in the aggregate, exceeds $50,000,000
(provided that (A) Permitted Indebtedness (1) secured solely by a Lien of the type
described in clause (c) of the definition of Permitted Liens or (2) owed by a CBII Entity
to another CBII Entity and (B) Refinancing Indebtedness shall not be counted and non-cash assets
received upon issuance of debt in connection with asset acquisitions shall be excluded, except to
the extent any such Permitted Indebtedness is issued or incurred to finance, directly or
indirectly, the payment in cash or otherwise, of any Distributions by any of the CBII Entities),
the Borrower shall, after such issuance or incurrence which results in such an excess or an
increase in such an excess, immediately prepay (or cause to be prepaid) the outstanding Loans and
the other Obligations in the manner set forth in Section 2.06(e), in each case, in an
aggregate principal amount equal to 100% of the Net Cash Proceeds of such of such excess or such
increase in such excess.

(v) On or prior to the 120th day following the end of each fiscal year of CBII
(commencing with the fiscal year of CBII ending December 31, 2008), the Borrower shall prepay (or
cause to be prepaid) the outstanding Loans and the other Obligations in the manner set forth in
Section 2.06(e) in an aggregate amount equal to 50% of Excess Cash Flow for such most
recently ended fiscal year, provided that such amount shall be reduced to 0% of Excess Cash
Flow if the Borrower Leverage Ratio as of the most recently ended fiscal year of CBII shall be less
than 2.50:1.00.

(vi) If, at any time after the Effective Date, any CBII Entity issues any Equity Securities
(other than (v) issuances thereof the proceeds of which are used to make a Permitted Acquisition;
provided that such Permitted Acquisition occurs within 90 days after such issuance, (w) any
issuances thereof to CBII or any Borrower Entity, (x) sales or issuances to any management or
employees under any employee stock option or stock purchase plans in existence from time to time,
(y) issuances of director’s qualifying shares and (z) any issuances in connection with the exercise
of warrants), the Borrower shall, after such issuance or incurrence, immediately prepay (or cause
to be prepaid) the outstanding Loans and the other Obligations in the manner set forth in
Section 2.06(e), in each case, in an aggregate principal amount equal to 50% of the Net
Cash Proceeds from such Equity Securities.

(vii) If, at any time, any CBII Entity shall fail to observe or perform the covenant contained
in Section 5.02(p)(ii), the Administrative Agent may or, upon instructions from the
Required Term Lenders, shall, by written notice to the Borrower, require the Borrower to prepay the
outstanding Term Loans and the other Obligations with respect thereto, and the Borrower shall so
prepay the outstanding Term Loans and the other Obligations with respect thereto, immediately (and
in any event within 10 Business Days) following receipt of such notice.

(d) Notice of Prepayment. The Borrower shall deliver to the Administrative Agent, at
the time of each prepayment required under Section 2.06(c), (i) a certificate signed by the
Chief Financial Officer, Chief Accounting Officer or Treasurer of the Borrower setting forth in
reasonable detail the calculation of the amount of such prepayment and (ii) to the extent
practicable, at least three days prior written notice of such prepayment. Each notice of
prepayment shall specify the prepayment date and the Type and principal amount of each Loan (or
portion thereof) to be prepaid. In the event that the Borrower shall subsequently determine that
the actual amount required to be prepaid was greater than the amount set forth in such certificate,
the Borrower shall promptly make an additional prepayment of the Loans (and/or, if applicable, the
Commitments shall be permanently reduced) in an amount equal to the amount of such excess, and the
Borrower shall concurrently therewith deliver to the Administrative Agent a certificate signed by
the Chief Financial Officer, Chief Accounting Officer or Treasurer of the Borrower demonstrating
the derivation of the additional amount resulting in such excess.

(e) Application of Prepayments.

(i) All prepayments pursuant to Section 2.06(c) (excluding Section 2.06(c)(i))
shall be applied as follows: first, to prepay the Term Loans and to the installments
thereof on a pro rata basis, second, to prepay any Unreimbursed Amounts then outstanding,
third, to prepay the Swing Line Loans to the extent Swing Line Loans are then outstanding,
fourth, to prepay the Revolving Loans to the extent Revolving Loans are then outstanding
and fifth, to Cash Collateralize the Obligations in respect of the outstanding Letters of
Credit in an amount equal to the then Effective Amount of the L/C Obligations.

(ii) Without modifying the order of application of prepayments set forth in Section
2.06(e)(i), all such prepayments shall, to the extent possible, be first applied to prepay Base
Rate Loans and then if any funds remain, to prepay LIBOR Loans. All prepayments which are applied
to reduce the principal amount of the Revolving Loans shall not reduce the Revolving Loan
Commitments.

(iii) Any amounts available after the application thereof in accordance with this
Section 2.06(e) shall be, to the extent no Event of Default shall have occurred and be
continuing, returned to the Borrower.

SECTION 2.07. Other Payment Terms.

(a) Place and Manner. All payments to be made by the Borrower under this Agreement or
any other Credit Document shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff. The Borrower shall make all payments due to each Lender or the
Administrative Agent under this Agreement or any other Credit Document by payments to the
Administrative Agent at the Administrative Agent’s office located at the address specified on
Schedule IV, with each payment due to a Lender to be for the account of such Lender and
such Lender’s Applicable Lending Office. The Borrower shall make all payments under this Agreement
or any other Credit Document in lawful money of the US (except with respect to any Non-US Currency
Letter of Credit or Non-US Currency Unreimbursed Amount, which shall be paid in the Non-US Currency
applicable to such Non-US Currency Letter of Credit or Non-US Currency Unreimbursed Amount to the
extent not repaid with the proceeds of a Base Rate Loan that was used to purchase the applicable
Non-US Currency as set forth in Section 2.02(c)) and in same day or immediately available
funds not later than 11:00 a.m. on the date due. The Administrative Agent shall promptly disburse
to each Lender each payment received by the Administrative Agent for the account of such Lender.

(b) Non-US Currency Payments. The specification of payment of Non-US Currency Letters
of Credit or Non-US Currency Unreimbursed Amount in the related Non-US Currency at a specific place
pursuant to this Agreement is of the essence. Such Non-US Currency shall, subject to Section
2.02(c), be the currency of account and payment of such Letters of Credit under this Agreement.
The obligation of the Borrower in respect of such Letters of Credit shall not be discharged by an
amount paid in any other currency or at another place, whether pursuant to a judgment or otherwise,
to the extent the amount so paid, on prompt conversion into the applicable Non-US Currency and
transfer to such Lender under normal banking procedures, does not yield the amount of such Non-US
Currency due under this Agreement. In the event that any payment, whether pursuant to a judgment
or otherwise, upon conversion and transfer, does not result in payment of the amount of such Non-US
Currency due under this Agreement, such Lender shall have an independent cause of action against
the Borrower and the applicable Guarantors for the currency deficit.

(c) Date. Whenever any payment due hereunder shall fall due on a day other than a
Business Day, such payment shall be made on the next succeeding Business Day, and such extension of
time shall be included in the computation of interest or fees, as the case may be.

(d) Default Rate. (i) Automatically upon the occurrence and during the continuance of
any Event of Default under Section 6.01(a), 6.01(f) or 6.01(g) and (ii) at
the election of the Required Lenders upon the occurrence and during the continuance of any other
Event of Default, until the time when such Event of Default shall have been cured or waived by the
Required Lenders or all the Lenders (as required by this Agreement), the Borrower shall pay
interest on the aggregate outstanding principal amount of all Obligations owing hereunder at a per
annum rate equal to the interest rate that would otherwise apply pursuant to Section
2.01(d), plus 2.00% (the “Default Rate”) payable on demand. Overdue interest shall
itself bear interest at the Default Rate applicable to Base Rate Loans, and shall be compounded
with the principal Obligations daily, to the fullest extent permitted by applicable laws.

(e) Application of Payments. Except as otherwise expressly provided herein, all
payments hereunder shall be applied first to unpaid fees, costs and expenses then due and payable
under this Agreement or the other Credit Documents, second to accrued interest then due and payable
under this Agreement or the other Credit Documents, and finally to reduce the principal amount of
outstanding Loans and L/C Borrowings.

(f) Failure to Pay the Administrative Agent. Unless the Administrative Agent shall
have received notice from the Borrower at least one Business Day prior to the date on which any
payment is due to the Lenders hereunder that the Borrower will not make such payment in full, the
Administrative Agent shall be entitled to assume that the Borrower has made or will make such
payment in full to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be paid to the Lenders on such due date an amount equal to
the amount then due such Lenders. If and to the extent the Borrower shall not have so made such
payment in full to the Administrative Agent, each such Lender shall repay to the Administrative
Agent forthwith on demand such amount distributed to such Lender, together with interest thereon,
for each day from the date such amount is distributed to such Lender until the date such Lender
repays such amount to the Administrative Agent, at a per annum rate equal to (i) the daily Federal
Funds Rate during the period from the date such amount is distributed through the third day
thereafter and (ii) the rate applicable to Base Rate Loans thereafter. A certificate of the
Administrative Agent submitted to any Lender with respect to any amount owing by such Lender under
this Section 2.07(f) shall be conclusive absent manifest error.

SECTION 2.08. Loan Accounts; Notes.

(a) Loan Accounts. The obligation of the Borrower to repay the Loans made to it by
each Lender and to pay interest thereon at the rates provided herein shall be evidenced by an
account or accounts maintained by such Lender on its books (individually, a “Loan
Account”), except that any Lender may request that its Loans be evidenced by a note or notes
pursuant to Sections 2.08(b) and 2.08(c). Each Lender shall record in its Loan
Accounts (i) the date and amount of each Loan made by such Lender, (ii) the interest rates
applicable to each such Loan and the effective dates of all changes thereto, (iii) the Interest
Period for each LIBOR Loan, (iv) the date and amount of each principal and interest payment on each
Loan and (v) such other information as such Lender may determine is necessary for the computation
of principal and interest payable to it by the Borrower hereunder; provided,
however, that any failure by a Lender to make, or any error by any Lender in making, any
such notation shall not affect the Borrower’s Obligations. The Loan Accounts shall be conclusive
absent manifest error as to the matters noted therein. In addition to the Loan Accounts, each
Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts
or records evidencing the purchases and sales by such Lender of participations in Letters of Credit
and Swing Line Loans. In the event of any conflict between the accounts and records maintained by
the Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control.

(b) Revolving Loan Notes and Term Loan Notes. If any Lender so requests, such
Lender’s Revolving Loans or Term Loans, as the case may be, shall be evidenced by a Revolving Loan
Note or a Term Loan Note, as applicable, in the respective forms of Exhibit E-1 and
Exhibit E-2. Each such Note shall be (i) payable to the order of such Lender, (ii) in the
amount of such Lender’s Revolving Loan Commitment or Term Loan Commitment, as applicable,
(iii) dated the Effective Date or such later date upon which such Person becomes a Lender hereunder
and (iv) otherwise appropriately completed. The Borrower authorizes each Lender to record on the
schedule annexed to such Lender’s Revolving Loan Note or Term Loan Note, as applicable, the date
and amount of each Revolving Loan or Term Loan, as the case may be, made by such Lender and of each
payment or prepayment of principal thereon made by the Borrower, and agrees that all such notations
shall be conclusive absent manifest error with respect to the matters noted; provided,
however, that any failure by a Lender to make, or any error by any Lender in making, any
such notation shall not affect the Borrower’s Obligations. The Borrower further authorizes each
Lender to attach to and make a part of such Lender’s Revolving Loan Note or Term Loan Note, as
applicable, continuations of the schedule attached thereto as necessary.

(c) Swing Line Notes. The Swing Line Lender’s Swing Line Loans shall be evidenced, at
the request of the Swing Line Lender, by a promissory note in the form of Exhibit F
(individually, a “Swing Line Note”) which note shall be (i) payable to the order of the
Swing Line Lender, (ii) in the amount of the Swing Line Lender’s Swing Line Loans, (iii) dated the
Effective Date and (iv) otherwise appropriately completed.

SECTION 2.09. Loan Fundings.

(a) Lender Funding and Disbursement to the Borrower. Each Revolving Lender shall, (i)
before 11:00 a.m. on the date of the initial Revolving Loan Borrowing (if the initial Revolving
Loan Borrowing occurs on the Effective Date) and (ii) before 1:00 p.m. on the date of each other
Revolving Loan Borrowing, make available to the Administrative Agent at the Administrative Agent’s
office specified in Schedule IV, in same day or immediately available funds, such Lender’s
Revolving Proportionate Share of such Borrowing. Each Term Lender shall, before 11:00 a.m. on the
date of the Term Loan Borrowing, make available to the Administrative Agent at the Administrative
Agent’s office specified in Schedule IV, in same day or immediately available funds, such
Lender’s ratable share of such Borrowing based on such Lender’s Term Loan Commitment. After the
Administrative Agent’s receipt of such funds and upon satisfaction of the applicable conditions set
forth in Section 3.02 (and, if such Borrowing is the initial Credit Extension, Section
3.01), the Administrative Agent shall promptly make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i) crediting the account
of the Borrower on the books of Rabobank with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to the Administrative Agent by
the Borrower; provided, however, that if, on the date of a Revolving Loan Borrowing
there are Swing Line Loans and/or L/C Borrowings outstanding, then the proceeds of such Borrowing
shall be applied first, to the payment in full of any such L/C Borrowings, second, to the payment
in full of any such Swing Line Loans, and third, to the Borrower as provided above.

(b) Lender Failure to Fund. Unless the Administrative Agent shall have received
notice from a Lender prior to the date of any Borrowing that such Lender will not make available to
the Administrative Agent the amount of such Lender’s Loan to be made as part of such Borrowing, the
Administrative Agent shall be entitled to assume that such Lender has made or will make such amount
available to the Administrative Agent on the date of such Borrowing in accordance with Section
2.09(a), and the Administrative Agent may on such date, in reliance upon such assumption,
disburse or otherwise credit to the Borrower a corresponding amount. If any Lender does not make
the amount of such Lender’s Loan to be made as part of any Borrowing available to the
Administrative Agent on or prior to the date of such Borrowing, such Lender shall pay to the
Administrative Agent, on demand, interest which shall accrue on such amount from the date of such
Borrowing until such amount is paid to the Administrative Agent at rates equal to (i) the daily
Federal Funds Rate during the period from such date through the third day thereafter and (ii) the
rate applicable to Base Rate Loans thereafter. A certificate of the Administrative Agent submitted
to any Lender with respect to any amount owing by such Lender under this Section 2.09(b)
shall be conclusive absent manifest error with respect to such amount. If the amount of any
Lender’s Loan to be made as part of any Borrowing is not paid to the Administrative Agent by such
Lender within three Business Days after the date of such Borrowing, the Borrower shall repay such
amount to the Administrative Agent, on demand, together with interest thereon, for each day from
the date such amount was disbursed to the Borrower until the date such amount is repaid to the
Administrative Agent, at the interest rate applicable at the time to the Loans comprising such
Borrowing.

(c) Lenders’ Obligations Several. The failure of any Lender to make the Loan to be
made by it as part of any Borrowing or to fund participations in Letters of Credit and Swing Line
Loans shall not relieve any other Lender of its obligation hereunder to make its Loan as part of
such Borrowing or fund its participations in Letters of Credit and Swing Line Loans, but no Lender
shall be obligated in any way to make any Loan or fund any participation in Letters of Credit or
Swing Line Loans which another Lender has failed or refused to make or otherwise be in any way
responsible for the failure or refusal of any other Lender to make any Loan required to be made by
such other Lender on the date of any Borrowing or to fund any participation required to be funded
by such other Lender.

SECTION 2.10. Pro Rata Treatment. 

(a) Borrowings, Commitment Reductions. Except as otherwise provided herein:

(i) Each Revolving Loan Borrowing and reduction of the Revolving Loan Facility shall be made
or shared among the Revolving Lenders pro rata according to their respective Revolving
Proportionate Shares;

(ii) Each payment of principal of Loans in any Borrowing shall be shared among the Lenders
which made or funded the Loans in such Borrowing pro rata according to the respective unpaid
principal amounts of such Loans then owed to such Lenders;

(iii) Each payment of interest on Loans in any Borrowing shall be shared among the Lenders
which made or funded the Loans in such Borrowing pro rata according to (A) the respective unpaid
principal amounts of such Loans so made or funded by such Lenders and (B) the dates on which such
Lenders so made or funded such Loans;

(iv) Each payment of Letter of Credit fees and Commitment Fees payable under Sections
2.02(i) and 2.05(b) shall be shared among the Revolving Lenders with Revolving Loan
Commitments (except for Defaulting Lenders) pro rata according to (A) their respective Revolving
Proportionate Shares and (B) in the case of each Revolving Lender which becomes a Revolving Lender
hereunder after the date hereof, the date upon which such Lender so became a Revolving Lender;

(v) Each payment of interest (other than interest on Loans) shall be shared among the Lenders
and the Administrative Agent owed the amount upon which such interest accrues pro rata according to
(A) the respective amounts so owed such Lenders and the Administrative Agent and (B) the dates on
which such amounts became owing to such Lenders and the Administrative Agent; and

(vi) All other payments under this Agreement and the other Credit Documents (including fees
paid in connection with any amendment, consent, waiver or the like) shall be for the benefit of the
Person or Persons specified.

(b) Sharing of Payments. If any Lender, other than as elsewhere provided in this
Agreement or any other Credit Document, shall obtain any payment (whether voluntary, involuntary,
through the exercise of any right of setoff, or otherwise) on account of the Loans made by it, or
the participations in L/C Obligations or in Swing Line Loans held by it, in excess of its ratable
share of payments on account of the Loans and the L/C Obligations obtained by all Lenders entitled
to such payments, such Lender shall forthwith purchase from the other Lenders such participations
in the Loans and/or participations in L/C Obligations or in Swing Line Loans as shall be necessary
to cause such purchasing Lender to share the excess payment ratably with each of them;
provided, however, that if all or any portion of such excess payment is thereafter
recovered from such purchasing Lender, such purchase shall be rescinded and each other Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery together with an
amount equal to such other Lender’s ratable share (according to the proportion of (i) the amount of
such other Lender’s required repayment to (ii) the total amount so recovered from the purchasing
Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the
total amount so recovered. The Borrower agrees that any Lender so purchasing a participation from
another Lender pursuant to this Section 2.10(b) may, to the fullest extent permitted by
law, exercise all its rights of payment (including the right of setoff) with respect to such
participation as fully as if such Lender were the direct creditor of the Borrower in the amount of
such participation.

SECTION 2.11. Change of Circumstances.

(a) Inability to Determine Rates. If, on or before the first day of any Interest
Period for any LIBOR Loan, (i) the LIBOR Rate for such Interest Period cannot be adequately and
reasonably determined for any Appropriate Lender due to the unavailability of funds in or other
circumstances affecting the London interbank market (and such Lender shall so advise the
Administrative Agent) or (ii) the rate of interest for such Loan does not adequately and fairly
reflect the cost to any Appropriate Lender of making or maintaining such LIBOR Loan (and such
Lender shall so advise the Administrative Agent), the Administrative Agent shall immediately give
notice of such condition to the Borrower and the other Appropriate Lenders. After the giving of
any such notice and until the circumstances giving rise to such condition no longer exist, the
Borrower’s right to request the making of, or conversion to a new Interest Period for, LIBOR Loans
shall be suspended. Any LIBOR Loans outstanding at the commencement of any such suspension shall
be converted at the end of the then-current Interest Period for such LIBOR Loans into Base Rate
Loans, as the case may be, unless such suspension has then ended.

(b) Illegality. If, after the date of this Agreement, the adoption of any
Governmental Rule, any change in any Governmental Rule or the application or requirements thereof
(whether such change occurs in accordance with the terms of such Governmental Rule as enacted, as a
result of amendment or otherwise), any change in the interpretation or administration of any
Governmental Rule by any Governmental Authority, or compliance by any Lender with any request or
directive (whether or not having the force of law) of any Governmental Authority (a “Change of
Law”) shall make it unlawful or impossible for any Lender to make or maintain any LIBOR Loan,
such Lender shall immediately notify the Administrative Agent and the Borrower of such Change of
Law. Upon receipt of such notice, (i) the Borrower’s right to request the making of, or conversion
to a new Interest Period for, LIBOR Loans shall be terminated and (ii) the Borrower shall, at the
request of such Lender, either (A) pursuant to Section 2.01(g), convert any such
then-outstanding LIBOR Loans into Base Rate Loans at the end of the current Interest Period for
such LIBOR Loans or (B) immediately repay or convert any such LIBOR Loans if such Lender shall
notify the Borrower that such Lender may not lawfully continue to fund and maintain such LIBOR
Loans. Any conversion or prepayment of LIBOR Loans made pursuant to the preceding sentence prior
to the last day of an Interest Period for such LIBOR Loans shall be deemed a prepayment thereof for
purposes of Section 2.13. After any Lender notifies the Administrative Agent and the
Borrower of such a Change of Law and until it is no longer unlawful or impossible for such Lender
to make or maintain a LIBOR Loan, all Revolving Loans of such Lender shall be Base Rate Loans.

(c) Increased Costs. If, after the date of this Agreement, any Change of Law:

(i) Shall subject any Lender to any tax, duty or other charge with respect to any LIBOR Loan,
or shall change the basis of taxation of payments by the Borrower to any Lender on such a LIBOR
Loan or in respect to such a LIBOR Loan under this Agreement (except for changes in the rate of
taxation on the overall net income of any Lender imposed by a jurisdiction as a result of a present
or former connection (other than a connection arising solely as a result of the Transaction)
between the Lender and the jurisdiction imposing such tax levy); or

(ii) Shall impose, modify or hold applicable any reserve (excluding any Reserve Requirement or
other reserve to the extent included in the calculation of the LIBOR Rate for any Loans), special
deposit or similar requirement against assets held by, deposits or other liabilities in or for the
account of, advances or loans by, or any other acquisition of funds by any Lender for any LIBOR
Loan; or

(iii) Shall impose on any Lender any other condition related to any LIBOR Loan or any of such
Lender’s Commitments,

and the effect of any of the foregoing is to increase the cost to such Lender of making, renewing,
or maintaining any such LIBOR Loan or any of its Commitments or to reduce any amount receivable by
such Lender hereunder, then the Borrower shall from time to time, within five Business Days after
demand by such Lender, pay to such Lender additional amounts sufficient to reimburse such Lender
for such increased costs or to compensate such Lender for such reduced amounts. A certificate
setting forth in reasonable detail the amount of such increased costs or reduced amounts, submitted
by such Lender to the Borrower shall be conclusive absent manifest error. The obligations of the
Borrower under this Section 2.11(c) shall survive the payment and performance of the
Secured Obligations and the termination of this Agreement. No Lender may establish or change its
Euro-Dollar Lending Office with the result that the Borrower has greater payment obligations to
such Lender than if such Lender chose another of its euro-dollar lending offices unless such Lender
waives the Borrower’s liability to the extent of such greater payment obligations.

(d) Capital Requirements. If, after the date of this Agreement (i) any Change of Law
affects the amount of capital required or expected to be maintained by any Lender or any Person
controlling such Lender (a “Capital Adequacy Requirement”) and (ii) the amount of capital
maintained by such Lender or such Person which is attributable to or based upon the Loans, the
Letters of Credit, the Commitments or this Agreement must be increased as a result of such Capital
Adequacy Requirement (taking into account such Lender’s or such Person’s policies with respect to
capital adequacy), the Borrower shall pay to such Lender or such Person, within five Business Days
after demand of such Lender, such amounts as such Lender or such Person shall determine are
necessary to compensate such Lender or such Person for the increased costs to such Lender or such
Person of such increased capital. A certificate setting forth in reasonable detail the amount of
such increased costs submitted by any Lender to the Borrower shall be conclusive absent manifest
error. The obligations of the Borrower under this Section 2.11(d) shall survive the
payment and performance of the Secured Obligations and the termination of this Agreement.

SECTION 2.12. Taxes on Payments.

(a) Payments Free of Taxes. Any and all payments by or for the account of the
Borrower hereunder, or in respect of this Agreement or any other Credit Document, shall be made
free and clear of and without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto, excluding net income
taxes (and franchise taxes imposed in lieu thereof) imposed on the Administrative Agent or any
Lender as a result of a present or former connection (other than a connection arising solely as a
result of the Transaction) between the Administrative Agent or such Lender and the jurisdiction
imposing such tax levy, impost or withholding or any Governmental Authority, political subdivision
or taxing authority thereof or therein (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities in respect of payments hereunder or under this Agreement
being hereinafter referred to as “Taxes”). If the Borrower shall be required by law to
deduct or withhold any Taxes from or in respect of any sum payable hereunder or under this
Agreement or other Credit Documents to any Lender, (i) the Borrower shall make all such deductions
or withholdings, (ii) the Borrower shall pay the full amount deducted or withheld to the relevant
Governmental Authority, taxation authority or other authority in accordance with applicable law and
(iii) the sum payable by the Borrower shall be increased as may be necessary so that after the
Borrower, the Administrative Agent and such Lender, as the case may be, have made all required
deductions and withholdings (including deductions and withholdings applicable to additional sums
payable under this Section 2.12) the Administrative Agent or such Lender receives an amount
equal to the sum it would have received had no such deductions or withholdings been made,
provided that the Borrower shall not be required to pay any additional amounts in respect
of any Taxes pursuant to this Section 2.12(a) to the extent that (i) such Taxes are
required to be withheld from any amounts payable to the Administrative Agent or any Lender
hereunder or under the other Credit Documents to a Lender which is not organized under the laws of
the US or a state thereof (including the District of Columbia) at the time such Lender becomes a
party to the Credit Documents (or designates a new lending office outside the US or after becoming
a party to the Credit Documents becomes organized under laws outside the US or a state thereof) or
is attributable to such Lender’s failure or inability (other than as a result of a Change in Law)
to comply with delivery of appropriate documentation in accordance with Section 2.12(e),
except to the extent that (x) such Lender (or its Assignee Lender, if any) was entitled, at the
time of designation of a new lending office outside the US or a state thereof (or at the time of
assignment to the Assignee Lender), to receive additional amounts from the Borrower with respect to
such Taxes or (y) such Lender is an Assignee Lender and/or Replacement Lender, as the case may be,
becoming a party to the Credit Documents at the Borrower’s request. Subject to no continuing Event
of Default, the Borrower shall be permitted to replace any Lender whose withholding obligations
change such that a Lender is entitled to receive additional amounts from the Borrower with respect
to such Taxes as a result of a Change in Law after the Effective Date in accordance with
Section 2.15 (unless such Lender confirms to the Borrower that it will not seek any such
additional amounts) or (ii) the obligation to pay such indemnity payment or additional amounts
would not have arisen but for a failure by such Lender to comply with the provisions of Section
2.12(e) when applicable.

(b) Other Taxes. In addition, the Borrower shall pay to the relevant Governmental
Authority or taxing authority in accordance with applicable law, and indemnify and hold the
Administrative Agent and Lenders harmless from any present or future stamp, documentary, excise,
intangible, property, mortgage recording or similar taxes, charges or levies that arise from the
delivery or registration of, performance under, or otherwise with respect to, this Agreement or any
other Credit Document (hereinafter referred to as “Other Taxes”).

(c) Indemnity. The Borrower shall indemnify each Lender and the Administrative Agent
for and hold them harmless against the full amount of Taxes and Other Taxes, and for the full
amount of taxes of any kind imposed by any jurisdiction on amounts payable under this
Section 2.12, imposed on or paid by such Lender or the Administrative Agent, as the case
may be, and any liability (including Governmental Charges, penalties, additions to tax, interest
and expenses, other than to the extent arising as a result of the Lender’s or Administrative
Agent’s gross negligence or willful misconduct, as determined by a final non-appealable judgment of
a court of competent jurisdiction) arising therefrom or with respect thereto. This indemnification
shall be made within 30 days from the date such Lender or the Administrative Agent (as the case may
be) makes written demand therefor.

(d) Tax Receipt. Within 30 days after the date of any payment of Taxes, the Borrower
shall furnish to the Administrative Agent the original or a certified copy of a receipt evidencing
such payment.

(e) Withholding Exemption Certificates. Within 30 days after becoming a party hereto
and on or before the date, if any, such Lender (or participant, as applicable) changes its
applicable lending office by designating a different lending office, and from time to time
thereafter as reasonably requested in writing by Administrative Agent or the Borrower (but only so
long thereafter as such Lender remains lawfully able to do so): (i) each Lender that is a US
Person that is not a “domestic” corporation (as defined in IRC Section 7701) shall provide each of
the Administrative Agent and the Borrower with one original US Internal Revenue Service Form W-9,
or any successor or other form prescribed by the US Internal Revenue Service, properly completed
and duly executed by an officer, and satisfactory to the Administrative Agent and the Borrower and
(ii) each Lender that is organized under the laws of a jurisdiction outside the US shall provide
each of the Administrative Agent and the Borrower with either: (A) two original US Internal Revenue
Service Forms W-8ECI, W-8BEN or W-8IMY, as appropriate, or any successor or other form prescribed
by the US Internal Revenue Service, properly completed and duly executed by an officer, and
reasonably satisfactory to the Administrative Agent and the Borrower or (B) a certificate that it
is not (i) a “bank” (as defined in IRC Section 881(c)(3)(A)), (ii) a 10% shareholder (within the
meaning of IRC Section 871(h)(3)(B)) of the Borrower or (iii) a controlled foreign corporation
related to the Borrower (within the meaning of IRC Section 864(d)(4)), and two original US Internal
Revenue Service Form W-8BEN or Form W-8IMY, as appropriate, or any successor or other form
prescribed by the US Internal Revenue Service, properly completed and duly executed by an officer,
reasonably satisfactory to the Administrative Agent and the Borrower. Each Lender shall deliver
such new forms and documents prescribed by the US Internal Revenue Service upon the expiration or
obsolescence of any previously delivered forms or other documents referred to in this Section
2.12, or after the occurrence of any event requiring a change in the most recent forms or other
documents delivered by such Lender. Such Lender shall promptly provide written notice to each of
the Administrative Agent and the Borrower at any time it determines that it is no longer in a
position to provide any previously delivered form or other document (or any other form of
certification adopted by the US Internal Revenue Service for such purpose). Each Lender providing
one or more forms or certificates pursuant to this Section 2.12(e) hereby represents,
covenants and warrants the accuracy of the information provided therein.

(f) Tax Returns. Nothing contained in this Section 2.12 shall require any
Lender or the Administrative Agent to make available any of its tax returns or any other
information that it deems to be confidential or proprietary. Nothing herein contained shall
interfere with the rights of each Lender to arrange its tax affairs in whatever manner it thinks
fit and, in particular, each Lender shall be under no obligation to claim credit, relief, remission
or repayment from or against its corporate profits or similar tax liability in respect of the
amount of such deduction or withholding in priority to any other claims, reliefs, credits or
deductions available to it or to disclose any information relating to its tax affairs.

(g) Treatment of Certain Refunds. If the Administrative Agent or any Lender
determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes (or a
credit therefor) as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section 2.12, it shall pay to the
Borrower an amount equal to such refund or credit (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower under this Section 2.12 with respect to
the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent or any such Lender, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund); provided
that the Borrower, upon the request of the Administrative Agent or any such Lender, agrees to repay
the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or any such Lender in the event the
Administrative Agent or any such Lender is required to repay such refund to such Governmental
Authority. This Section 2.12(g) shall not be construed to require the Administrative Agent
or any Lender to make available its tax returns (or any other information relating to its taxes
that it deems confidential) to the Borrower or any other Person.

(h) Mitigation Obligation. If any Lender requests compensation under this Section
2.12, then such Lender shall use reasonable efforts to designate a different Lending Office for
funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another
of its offices, branches or affiliates, if, in the reasonable judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to this
Section 2.12 in the future and (ii) in each case, would not subject such Lender to any
material unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender in
an economic, legal or regulatory way. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

SECTION 2.13. Funding Loss Indemnification. If the Borrower shall (a) repay, prepay
or convert any LIBOR Loan on any day other than the last day of an Interest Period therefor
(whether a scheduled payment, an optional prepayment or conversion, a mandatory prepayment or
conversion, a payment upon acceleration or otherwise), (b) fail to borrow any LIBOR Loan for which
a Notice of Borrowing has been delivered to the Administrative Agent (whether as a result of the
failure to satisfy any applicable conditions or otherwise) or (c) fail to convert any Loans into
LIBOR Loans in accordance with a Notice of Conversion delivered to the Administrative Agent
(whether as a result of the failure to satisfy any applicable conditions or otherwise), the
Borrower shall, within five Business Days after demand by any Lender, reimburse such Lender for and
hold such Lender harmless from all costs and losses incurred by such Lender as a result of such
repayment, prepayment, conversion or failure. The Borrower understands that such costs and losses
may include losses incurred by a Lender as a result of funding and other contracts entered into by
such Lender to fund a LIBOR Loan. Each Lender demanding payment under this Section 2.13
shall deliver to the Borrower, with a copy to the Administrative Agent, a certificate setting forth
the amount of costs and losses for which demand is made, which certificate shall set forth in
reasonable detail the calculation of the amount demanded. Such a certificate so delivered to the
Borrower shall be conclusive absent manifest error. The obligations of the Borrower under this
Section 2.13 shall survive the payment and performance of the Secured Obligations and the
termination of this Agreement.

SECTION 2.14. Security.

(a) Security Documents. The Secured Obligations, together with the Guarantees thereof
by the Parent Guarantor and the Subsidiary Guarantors, shall be secured by the Liens created by and
as specified in the Security Documents; provided that no subsidiary of CBII shall
guarantee, or grant any Lien to secure, any Secured Obligations of CBII; and provided,
further, that each document or instrument required to be filed, registered, or recorded to
register or perfect security interests in Non-US jurisdictions shall be limited to those
jurisdictions in which any CBII Entity generates Significant Revenue; and provided,
further, that (A) no filings, registrations, or recordings shall be undertaken in those
Non-US jurisdictions where in the Administrative Agent’s reasonable discretion the value of the
Collateral pledged as security for the Secured Obligations is not materially significant in
relation to the costs of the filings, registrations, or recordings, (B)  the Equity Securities of
Landec and/or the Equity Securities and assets of Meneu shall not be required to be pledged as
security for the Secured Obligations and (C) as long as no Event of Default has occurred and is
continuing, no lock box, blocked account, dominion of funds arrangements, and/or control agreements
shall be required in respect of the Collateral pledged as security for the Secured Obligations
(except as otherwise expressly provided in Section 2.06(c)(iii)).

(b) Lender Rate Contracts. So long as the terms thereof are in compliance with this
Agreement, each Lender Rate Contract shall be secured (but on a silent basis, so that
notwithstanding any other provision, if any, in this Agreement or any other Credit Document, no
Lender Rate Contract counterparty shall be able to take any action in respect of the Collateral nor
instruct the Required Lenders to take any action in respect of the Collateral) by the Lien of the
Security Documents, unless (i) arrangements have been made for the Lender Rate Contract Obligations
under such Lender Rate Contract to be secured by a secured credit facility refinancing the
Facilities or (ii) other replacement collateral equivalent in nature and value (as reasonably
determined by the Borrower and the applicable Lender Rate Contract counterparty) supporting the
Lender Rate Contract Obligations is provided.

(c) Further Assurances. Each of CBII and the Borrower shall deliver, and shall cause
each other Loan Party and each Pledged Person to deliver, to the Administrative Agent, and, if
applicable, to execute, acknowledge, deliver, record, re-record, file, re-file, register or
re-register such additional security agreements, mortgages, trust deeds, deeds of trust, deeds to
secure debt, pledge agreements, guarantee agreements, and other instruments, agreements,
certificates, opinions and documents (including Uniform Commercial Code financing statements and,
as applicable, fixture filings) as the Administrative Agent may request to effectuate the terms
under and in accordance with the Security Documents and thereby to:

(i) (A) grant, maintain, protect and evidence security interests and Liens in favor of the
Administrative Agent, (B) perfect security interests in favor of the Administrative Agent that may
be perfected by filing Uniform Commercial Code financing statements or, as applicable, fixture
filings (but no crop, timber, mineral, or other similar filings) in the appropriate jurisdictions,
and (C) perfect security interests in favor of the Administrative Agent that may be perfected by
filing the applicable Intellectual Property Security Agreement (or the short form security
documents attached thereto) in the appropriate indexes of the United States Patent and Trademark
Office or the United States Copyright Office, in each case for the benefit of the Administrative
Agent and the other Secured Parties, in any or all present and future property of the Borrower and
the other Loan Parties which would constitute Collateral under and in accordance with the terms of
the Security Documents, prior to the Liens or other interests of any Person, except to the extent
Permitted Liens have priority as expressly permitted hereunder; and

(ii) otherwise establish, maintain, protect and evidence the rights provided to the
Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties,
under and in accordance with the terms of the Security Documents;

provided, however, that with respect to the Collateral, notwithstanding anything to
the contrary in this Agreement or in any of the Security Documents (and recognizing the supremacy
of this proviso over any conflicting provision of this Agreement in respect of the Collateral or
any Security Document), the parties to this Agreement covenant and agree that: (A) no filings,
registrations, or recordings shall be undertaken in those Non-US jurisdictions where the
Administrative Agent determines in its reasonable discretion that the value of the Collateral
pledged as security for the Secured Obligations is not materially significant in relation to the
costs of the filings, registrations, or recordings, (B)  the Equity Securities of Landec and/or the
Equity Securities and assets of Meneu shall not be required to be pledged as security for the
Secured Obligations, (C) as long as no Event of Default has occurred and is continuing, no lock
box, blocked account, dominion of funds arrangements, and/or control agreements shall be required
in respect of the Collateral pledged as security for the Secured Obligations (except as otherwise
expressly provided in Section 2.06(c)(iii)), (D) regardless of whether this Agreement or
any other Credit Document requires the Lenders to deliver one or more Security Documents to perfect
a Lien, the only Security Documents that are in fact required to be delivered are those that the
Administrative Agent reasonably determines are necessary or desirable in order to perfect a Lien on
that portion of the Collateral on which this Agreement obligates the Loan Parties to provide a
perfected first priority Lien (subject to Permitted Liens having priority as expressly permitted
hereunder), which is and shall be limited to (v) all now owned and hereafter acquired tangible and
intangible personal property assets of CBII, the Borrower, and the US Subsidiaries in which a
security interest (1) may be perfected by filing financing statements or, as applicable, fixture
filings (but no crop, timber, mineral, or other similar filings) in the applicable filing offices,
(2) may be perfected by filing the applicable Intellectual Property Security Agreement (or the
short form security documents attached thereto) in the appropriate indexes of the United States
Patent and Trademark Office or the United States Copyright Office or (3) upon the occurrence and
during the continuance of an Event of Default or as otherwise expressly provided in Section
2.06(c)(iii), may be perfected by lock box, blocked account dominion of funds arrangement,
and/or control agreements as the Administrative Agent shall deem advisable in the best interest of
the Lenders, (w) the Trademarks owned by the Borrower or any other US Subsidiary in the US (which
Trademarks owned by the Borrower constitute all material Trademarks consisting of trademarks),
(x) those Trademarks described on Schedule 4.01(n) in the jurisdictions listed on such
schedule, (y) the Pledged Equity Securities of the Pledged Persons pledged pursuant to the Pledge
Agreements and (z) the Pledged Intercompany Notes pledged pursuant to the Security Agreements and
(E) on the terms of and subject to clauses (C) and (D) above, the representations,
warranties, covenants, and other provisions of this Agreement and other Credit Documents shall, as
applicable, be interpreted to recognize that the Liens are to be perfected in only the
above-described portion of the Collateral. If an Event of Default occurs and is continuing, the
Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties,
may take additional steps to perfect (and to require the Borrower to assist in perfecting) Liens on
the Collateral.

(d) German, Polish and Dutch Parallel Security and Parallel Obligations. For the
purposes of taking and ensuring the continuing validity of security under those Security Documents
subject to the laws of (or to the extent affecting assets situated in) Germany, Poland or The
Netherlands (the “Parallel Security”), the parties hereto agree that notwithstanding any
contrary provision in any of the Credit Documents:

(i) the Borrower undertakes (such undertakings are referred to hereinafter as the
“Parallel Obligations”) to pay to the Administrative Agent, without duplication and when
due, amounts equal to all present and future amounts owing by the Borrower to any Secured Party;

(ii) the Administrative Agent shall have its own independent right, subject to the terms and
conditions of this Agreement, to demand payment of the Parallel Obligations when due;

(iii) the Parallel Obligations shall not limit or affect the existence of the Secured
Obligations to a Secured Party, for which such Secured Party shall have an independent right,
subject to the terms and conditions of this Agreement, to demand payment when due;

(iv) notwithstanding Sections 2.14(d)(ii) and 2.14(d)(iii), payment by the
Borrower of its Parallel Obligations to the Administrative Agent shall to the same extent decrease
and be a good discharge of the corresponding Secured Obligations owing to the relevant Secured
Party and payment by the Borrower of its Secured Obligations to the relevant Secured Party shall to
the same extent decrease and be a good discharge of the corresponding Parallel Obligations owing by
the Borrower to the Administrative Agent;

(v) the Parallel Obligations are owed to the Administrative Agent in its own name and not as
agent or representative of any other Person nor as trustee and the Parallel Security shall secure
the Parallel Obligations so owing; and

(vi) without limiting or affecting the Administrative Agent’s right to protect, preserve or
enforce its rights under any Security Document, the Administrative Agent undertakes to each Secured
Party not to exercise its rights in respect of the Parallel Obligations without the consent of the
relevant Secured Party, to the extent required under this Credit Agreement.

(e) Release of Collateral. Upon termination of the Revolving Loan Commitments, the
Term Loan Commitments, the other Facilities, the Guarantees in respect thereof and all other Credit
Documents and the payment in full of the Secured Obligations (other than any Unaccrued Indemnity
Claims), as long as no Event of Default has occurred and is continuing and such Secured Obligations
have not been accelerated, the Liens granted to or held by the Administrative Agent upon any
Collateral shall be released.

SECTION 2.15. Replacement of the Lenders. If (a) any Lender shall become a Defaulting
Lender more than one time in a period of 12 consecutive months, (b) any Lender shall continue as a
Defaulting Lender for more than five Business Days at any time, (c) any Lender shall suspend its
obligation to make or maintain LIBOR Loans pursuant to Section 2.11(a) or 2.11(b),
(d) any Lender shall demand any payment under Sections 2.11(c), 2.11(d) or
2.12, (e) any Lender’s right to payment under Section 2.12 changes as a result of a
Change in Law (unless such Lender confirms to the Borrower that it will not seek any additional
amounts as a consequence of such Change in Law), (f) any Lender that is not the Administrative
Agent or an Affiliate of the Administrative Agent does not consent to any amendment, waiver or
consent to any Credit Document for which the consent of the Required Lenders is obtained but that
requires the consent of all Lenders, (g) any Revolving Lender that is not the Administrative Agent
or an Affiliate of the Administrative Agent does not consent to any amendment, waiver or consent to
any Credit Document for which the consent of the Required Revolving Lenders is obtained but that
requires the consent of all Revolving Lenders or (h) any Term Lender that is not the Administrative
Agent or an Affiliate of the Administrative Agent does not consent to any amendment, waiver or
consent to any Credit Document for which the consent of the Required Term Lenders is obtained but
that requires the consent of all Term Lenders, then the Administrative Agent (i) may replace such
Lender (the “Affected Lender”), or cause such Affected Lender to be replaced, or (ii) upon
the written request of the Borrower, the Administrative Agent shall replace such Affected Lender
with an Eligible Assignee identified by the Borrower (the “Replacement Lender”) satisfying
the requirements of an Assignee Lender under Section 8.05(c) (provided that at the
time of the assignment, such Assignee Lender shall not be subject to the circumstances described in
Section 2.15(a) through 2.15(h)), by having such Affected Lender sell and assign
all of its rights and obligations under this Agreement and the other Credit Documents (including
for purposes of this Section 2.15, participations in L/C Obligations and in Swing Line
Loans) to the Replacement Lender pursuant to Section 8.05(c); provided,
however, that if the Borrower seeks to exercise such right as a result of a Lender request
for payment under Section 2.12, it must do so within 120 days (180 days in respect to
Borrower’s invoking any replacement right as a result of the occurrence of any event or events
giving rise to a Lender’s right to payment under Section 2.12) after the Borrower first
receives notice of the occurrence of the event or events giving rise to such right, and neither the
Administrative Agent nor any Lender shall have any obligation to identify or locate a Replacement
Lender for the Borrower (it being expressly agreed that in such circumstances it is the Borrower’s
obligation to identify or locate a Replacement Lender). Upon receipt by any Affected Lender of a
written notice from the Administrative Agent stating that the Administrative Agent or the Borrower
is exercising the replacement right set forth in this Section 2.15, such Affected Lender
shall sell and assign all of its rights and obligations under this Agreement and the other Credit
Documents (including for purposes of this Section 2.15, participations in L/C Obligations
and in Swing Line Loans) to the Replacement Lender pursuant to an Assignment Agreement and
Section 8.05(c) for a purchase price equal to the sum of the principal amount of such
Affected Lender’s Loans so sold and assigned, all accrued and unpaid interest thereon and its
ratable share of all fees to which it is entitled through the Assignment Date.

SECTION 2.16. Increases of the Revolving Loan Commitments; Adjustments to Revolving Loan
Commitments.

(a) Increases of Revolving Loan Commitments.

(i) Following the Effective Date, the Borrower may from time to time through the Revolving
Loan Maturity Date, propose to increase the aggregate amount of the Revolving Loan Commitments in
accordance with this Section 2.16; provided that (A) no Event of Default has
occurred and is continuing (or shall occur as a result of the requested Increased Revolving Loan
Commitment), and (B) the Borrower shall be in pro forma compliance with all covenants set forth in
Sections 5.02(a) and 5.02(b), and in Pro Forma Compliance with the Financial
Covenants.

(ii) The aggregate principal amount of the increases to the Revolving Loan Commitments made
pursuant to this Section 2.16 (the amount of any such increase, each, an “Increased
Revolving Loan Commitment”), shall not exceed $50,000,000; provided that each Increased
Revolving Loan Commitment must be at least $10,000,000 and in integral multiples of $5,000,000 in
excess thereof. The Borrower shall provide at least 30 days notice to the Administrative Agent
(which shall promptly provide a copy of such notice to the Revolving Lenders) of any requested
Increased Revolving Loan Commitment. Each such notice delivered by the Borrower shall be
irrevocable.

(b) Adjustment to Revolving Loan Commitment.

(i) Each Revolving Lender shall have the right (but not the obligation), for a period of 10
days following receipt of the notice referred to in Section 2.16(a), to elect by written
notice to the Borrower and the Administrative Agent to participate in the requested Increased
Revolving Loan Commitment pro rata according to its then respective Revolving Proportionate Share.
No Revolving Lender which fails to respond shall be deemed to have elected to increase its
Revolving Loan Commitment in response to a notice by the Borrower under this Section 2.16.

(ii) If any Revolving Lender party to this Agreement (whether at the Effective Date or by
assignment thereafter) elects not to increase its Revolving Loan Commitment pro rata according to
its Revolving Proportionate Share pursuant to clause (i), the Borrower may designate one or
more other lenders which qualify as Eligible Assignees (which may be, but need not be, existing
Revolving Lenders) which at the time agrees to (A) in the case of any such designated Revolving
Lender that is an existing Revolving Lender, increase its Revolving Proportionate Share of the
Revolving Loan Commitment and (B) in the case of any other such lender (an “Additional
Revolving Lender”), become a party to this Agreement as a Revolving Lender. The sum of the
increases in the Revolving Proportionate Share of the existing Revolving Lenders pursuant to this
clause (ii) plus the new commitments of the Additional Revolving Lenders, if any, shall not
in the aggregate exceed the unsubscribed amount of the requested Increased Revolving Loan
Commitment, nor shall the requested Increased Revolving Loan Commitment exceed the sum of the
increases in the Revolving Proportionate Share of the existing Revolving Lenders pursuant to
clause (i) and this clause (ii) plus the new commitments of the Additional
Revolving Lenders.

(iii) An increase in the aggregate amount of the Revolving Loan Commitments pursuant to this
Section 2.16 shall become effective upon the receipt by the Administrative Agent of an
agreement in form and substance reasonably satisfactory to the Administrative Agent and the
Borrower signed by the Borrower, by each Additional Revolving Lender and by each existing Lender
whose Revolving Proportionate Share of the Revolving Loan Commitments is to be increased, setting
forth the new Revolving Proportionate Share of the Revolving Loan Commitments of such Lenders and
setting forth the agreement of each Additional Revolving Lender to become a party to this Agreement
as a Revolving Lender and to be bound by all the terms and provisions hereof, together with such
evidence of appropriate corporate authorization on the part of the Borrower with respect to the
requested Increased Revolving Loan Commitment, amendments to any Credit Documents reasonably
requested by the Administrative Agent in relation to the requested Increased Revolving Loan
Commitment solely to reflect such Increased Revolving Loan Commitment (which amendments the
Administrative Agent is hereby authorized to execute on behalf of the Lenders) and such opinions of
counsel for the Borrower with respect to the requested Increased Revolving Loan Commitment and
other assurances as the Administrative Agent may reasonably request.

ARTICLE III CONDITIONS PRECEDENT

SECTION 3.01. Initial Conditions Precedent. The effectiveness of this Agreement and
the obligations of the Lenders to make the Loans comprising the initial Borrowing on or after the
Effective Date and of the L/C Issuer to issue Letters of Credit on or after the Effective Date are
subject to receipt by the Administrative Agent, on or prior to the Effective Date, of each item
listed below, each in form and substance satisfactory to the Administrative Agent, and with
sufficient copies for the Administrative Agent and each Lender (or, in the case of
Section 3.01(g), fulfillment of the conditions specified therein); provided that
the Administrative Agent in its sole and absolute discretion may authorize the first Credit Event
to occur and condition the occurrence of any one or all subsequent Credit Events on the
Administrative Agent and the Borrower entering into the Post Effective Date Requirements Letter
Agreement setting forth the terms and dates for post Effective Date compliance with unfulfilled
conditions precedent contemplated in this Section 3.01 in respect of Collateral delivery
(free from adverse claims) and perfection matters relating to certain of Borrower’s Non-US
Subsidiaries and Non-US jurisdictions and the other matters specified therein:

(a) Principal Credit Documents.

(i) This Agreement, duly executed by the Borrower, CBII and the Administrative Agent, and
delivery of a Lender Addendum by each Lender;

(ii) The Notes payable to each Lender requesting a Note in accordance with Section
2.08(b), each duly executed by the Borrower;

(iii) The Guarantee Agreements in form and substance satisfactory to the Administrative Agent,
duly executed by the parties thereto;

(iv) A Security Agreement in form and substance satisfactory to the Administrative Agent, duly
executed by the parties thereto, together with (A) Uniform Commercial Code financing statements
naming the Loan Parties party thereto, and (B) original promissory notes existing on the Effective
Date from CBII to the Borrower evidencing intercompany advances (together with any further original
promissory notes from time to time evidencing intercompany advances from CBII to the Borrower,
collectively, the “Pledged Intercompany Notes”) and duly endorsed in blank;

(v) A Pledge Agreement in form and substance satisfactory to the Administrative Agent, duly
executed by the parties thereto, together with original stock certificates or other satisfactory
evidence of pledge if and to the extent applicable under local law, representing Equity Securities
pledged (collectively, the “Pledged Equity Securities”), as applicable, of each Pledged
Person and, as applicable, signed and undated stock powers; and

(vi) The Intellectual Property Security Agreements, in form and substance satisfactory to the
Administrative Agent, duly executed by the parties thereto.

(b) Borrower Organizational Documents.

(i) The certificate of formation of the Borrower, certified as of a recent date prior to the
Effective Date by the Secretary of State of Delaware;

(ii) A certificate of the Secretary or an Assistant Secretary of the Borrower, dated the
Effective Date, certifying that (A) attached thereto is a true and correct copy of the certificate
of formation, the operating agreement and bylaws of the Borrower as in effect on the Effective
Date; (B) attached thereto is a true and correct copy of a Board Resolution of the Borrower, which
authorizes the execution, delivery and performance by the Borrower of this Agreement and the other
Credit Documents executed or to be executed by the Borrower and the consummation of the
transactions contemplated hereby and thereby and (C) there are no proceedings for the dissolution
or liquidation of the Borrower;

(iii) A certificate of the Secretary or an Assistant Secretary of the Borrower, dated the
Effective Date, certifying the incumbency, signatures and title of the officers of the Borrower
authorized to, and who have acted to, execute, deliver and perform this Agreement, the other Credit
Documents and all other documents, instruments or agreements related thereto executed or to be
executed by the Borrower; and

(iv) Certificates of good standing for the Borrower, certified as of a recent date prior to
the Effective Date by the Secretary of State (or comparable official) of Delaware and each state or
jurisdiction in which the Borrower is qualified to do business.

(c) Guarantors, Pledged Persons and Pledgors.

(i) The certificate of incorporation, articles of incorporation, certificate of limited
partnership, articles of organization or comparable document or available organizational document
of each Guarantor, Pledged Person and Pledgor, certified (to the extent available) as of a recent
date prior to the Effective Date by the Secretary of State (or comparable public official) of its
state or jurisdiction of incorporation or formation;

(ii) A certificate of the Secretary or an Assistant Secretary (or comparable officer) of each
Guarantor, Pledged Person and Pledgor, dated the Effective Date, certifying that (A) attached
thereto is a true and correct copy of the certificate of incorporation, articles of incorporation,
certificate of limited partnership, articles of organization or comparable document or available
organizational document of such Guarantor, Pledged Person or Pledgor, as the case may be, as in
effect on the Effective Date, (B) attached thereto is a true and correct copy of the bylaws,
partnership agreement, limited liability company agreement or comparable document (if any) of such
Guarantor, Pledged Person or Pledgor, as the case may be, as in effect on the Effective Date;
(C) in the case of each Guarantor or Pledgor, attached thereto are true and correct copies of
resolutions duly adopted by the Board of Directors or other governing body of such Guarantor or
Pledgor, as the case may be (or other comparable enabling action) if applicable and continuing in
effect, which authorize the execution, delivery and performance by such Guarantor or Pledgor of the
Credit Documents to be executed by such Guarantor or Pledgor and the consummation of the
transactions contemplated thereby and (D) there are no proceedings for the dissolution or
liquidation of such Guarantor, Pledged Person or Pledgor, as the case may be;

(iii) A certificate of the Secretary or an Assistant Secretary (or comparable officer) of each
Guarantor, Pledgor and Pledged Person (except those Persons organized in Bermuda, Germany and Costa
Rica as to which available incumbency certifications will be provided), dated the Effective Date,
certifying the incumbency, signatures and title of the Persons signing on behalf of such Guarantor,
Pledged Person or Pledgor, as the case may be, authorized to execute, deliver and perform the
Credit Documents to be executed by such Guarantor, Pledged Person or Pledgor, as the case may be;
and

(iv) A certificate of good standing (or comparable certificate), if available, for each
Guarantor, Pledged Person, and Pledgor, certified as of a recent date prior to the Effective Date
by the Secretary of State (or comparable public official) of its state or jurisdiction of
incorporation or formation.

(d) Financial Statements; Financial Condition.

(i) A copy of the draft unaudited Financial Statements of the Borrower Entities for the fiscal
year ended December 31, 2007 (prepared on a consolidated basis), prepared to present fairly the
financial condition, results of operations and other information reflected therein as of the date
thereof and to have been prepared in accordance with GAAP (subject to normal year end audit
adjustments and omission of footnotes and statement of shareholder’s equity);

(ii) A copy of the audited consolidated Financial Statements of the CBII Entities for the
fiscal year ended December 31, 2007 reported on by Ernst & Young LLP or other independent public
accountants of recognized national standing and registered with the Public Company Accounting
Oversight Board (without a “going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit in connection with such Financial
Statements);

(iii) A copy of the most recently completed annual report (Form 5500 Series) filed with the
Employee Benefits Security Administration with respect to each Pension Plan of any applicable Loan
Parties;

(iv) A copy of (and the Administrative Agent’s and Required Lenders’ satisfactory review of)
the budget and projected Financial Statements of the CBII Entities by fiscal year for each of the
fiscal years from the Effective Date through December 31, 2012, together with narrative
assumptions, including, in each case, projected balance sheets, statements of income and retained
earnings and statements of cash flow of the CBII Entities, all in reasonable detail and in any
event to include (A) projected Capital Expenditures and (B) annual projections of the Borrower’s
compliance with the Financial Covenants;

(v) A certificate executed by the Chief Accounting Officer, Chief Financial Officer or
Treasurer of the Borrower which certifies that, as of the Effective Date before and after giving
pro forma effect to the Transaction, no Default has occurred and is continuing; and

(vi) Such other financial, business and other information regarding the CBII Entities as the
Administrative Agent, the L/C Issuer, the Swing Line Lender or any Lender reasonably may request,
including information as to possible contingent liabilities, tax matters, environmental matters and
obligations for employee benefits and compensation.

(e) Collateral Documents.

(i) Such Uniform Commercial Code financing statements (including, where applicable, Uniform
Commercial Code fixture filings with respect to each of the Properties) shall have been filed (or
delivered to the Administrative Agent for filing) in such jurisdictions as the Administrative Agent
may request to perfect the Liens granted to the Administrative Agent in this Agreement, the
Security Documents and the other Credit Documents;

(ii) Such Uniform Commercial Code termination statements (appropriately completed and
executed) shall have been filed (or delivered to the Administrative Agent for filing) in such
jurisdictions as the Administrative Agent may request to terminate any financing statement
evidencing Liens of other Persons in the Collateral which have priority over the Liens granted to
the Administrative Agent in this Agreement, the Security Documents and the other Credit Documents,
except for any such prior Liens which are expressly permitted by this Agreement to have such
priority;

(iii) Uniform Commercial Code searches from the jurisdictions in which Uniform Commercial Code
financing statements are to be filed pursuant to Section 3.01(e)(i) reflecting no other
financing statements or filings which evidence Liens of other Persons in the Collateral which have
priority over the Liens granted to the Administrative Agent in this Agreement, the Security
Documents and the other Credit Documents, except for any such prior Liens (A) which are expressly
permitted by this Agreement to have such priority or (B) for which the Administrative Agent has
received a termination statement pursuant to Section 3.01(e)(ii);

(iv) The stock certificates, if applicable, representing (A) the Equity Interests of each of
the Pledged Persons listed on Schedule III, in the percentage(s) of each such Pledged
Person pledged as indicated on Schedule III, together with, as applicable, undated stock
powers or other instruments of transfer duly executed by any applicable Loan Party, in blank and
attached thereto (it being understood that CBII shall cause each Person required to deliver such
stock certificates or other documentation to take such other steps as may be requested by the
Administrative Agent to perfect the Administrative Agent’s Lien in such Collateral in compliance
with any applicable law);

(v) Appropriate documents for filing with the United States Patent and Trademark Office and
the United States Copyright Office necessary to perfect the security interests granted in the IP,
in each case to the Administrative Agent by the Security Documents, all appropriately completed and
duly executed by any applicable CBII Entity and, where appropriate, notarized or legalized, as
applicable;

(vi) A certificate of CBII certifying that the Significant Parties possess all material
environmental permits necessary for the conduct of their respective businesses;

(vii) Such other documents, instruments and agreements as the Administrative Agent may
reasonably request to establish and perfect the Liens granted to the Administrative Agent in the
Collateral pursuant to this Agreement, the Security Documents and the other Credit Documents; and

(viii) Such other evidence as the Administrative Agent may reasonably request to establish
that the Liens granted to the Administrative Agent in the Collateral pursuant to this Agreement,
the Security Documents and the other Credit Documents are perfected (to the extent that the Credit
Documents obligate the Loan Parties to provide such a perfected Lien) and have priority over the
Liens of other Persons in the Collateral, except for any such Liens which are expressly permitted
by this Agreement to be prior.

(f) Opinions. Favorable written opinions (i) from Taft, Stettinius & Hollister LLP,
Skadden, Arps, Slate, Meagher & Flom LLP and counsel (which may be in-house counsel of the CBII
Entities) in Bermuda, Costa Rica, Germany, Guatemala, The Netherlands, Italy, Poland and the United
Kingdom and certain States of the US, for applicable Borrower Entities, each dated the Effective
Date, addressed to the Administrative Agent for the benefit of the Administrative Agent and the
Lenders and covering such customary legal matters as the Administrative Agent may request and
otherwise in form and substance satisfactory to the Administrative Agent, (ii) from local counsel
in each State of the US where any of the Properties is located (with respect to the enforceability
and perfection of the Mortgages and any related fixture filings), in form and substance
satisfactory to the Administrative Agent, each dated as of the Effective Date and delivered to the
Administrative Agent for the benefit of the Administrative Agent and the Lenders, with such changes
as may be satisfactory to the Administrative Agent and its counsel to account for local law
matters, and (iii) from applicable counsel (which may be in-house counsel), with respect to certain
corporate matters relating to each mortgagor with respect to the Properties, in form and substance
satisfactory to the Administrative Agent, to be delivered to the Administrative Agent for the
benefit of the Administrative Agent and the Lenders contemporaneously with the delivery of the
opinions referenced in clause (ii) above.

(g) Other Items.

(i) Evidence of insurance endorsements or certificates naming the Administrative Agent as
lenders’ loss payee, mortgagee and additional insured, as required by Section 5.01(d);

(ii) The pay-off letter in respect of the Indebtedness under the Existing Credit Agreement,
executed and delivered by the parties thereto, and evidence that all existing Liens on any assets
of the CBII Entities other than Permitted Liens have been or concurrently with the Effective Date
are being released;

(iii) A hierarchy report for the CBII Entities, setting forth the relationship among such
Persons, certified by the Secretary or an Assistant Secretary of CBII confirming the capital
structure and ownership structure of the CBII Entities as previously disclosed to the
Administrative Agent with any changes thereto satisfactory to the Administrative Agent;

(iv) A certificate of the President, Chief Financial Officer, Chief Accounting Officer or
Treasurer of CBII, addressed to the Administrative Agent and dated the Effective Date, certifying
that each of the Significant Subsidiaries is and, after the execution and delivery of the Credit
Documents and the consummation of the transactions contemplated thereby, will be Solvent;

(v) The Lead Arranger shall be satisfied that all Existing Indebtedness, other than the
Surviving Indebtedness, has been prepaid, redeemed or defeased in full or otherwise satisfied and
extinguished and all commitments related thereto terminated;

(vi) All Governmental Authorizations necessary in connection with the Transaction and the
Facilities (except for (A) the filing of the UCC financing statements to be filed on the Effective
Date, (B) the filing of the Intellectual Property Security Agreements to be filed in the
appropriate indexes of the United States Patent and Trademark Office relative to patents and
trademarks, and the United States Copyright Office relative to copyrights on the Effective Date or
(C) as otherwise permitted under the Post Effective Date Requirements Letter Agreement) shall have
been obtained and shall remain in effect and all applicable waiting periods shall have expired
without any action being taken by any competent Governmental Authority that could reasonably be
expected to have a material adverse effect on the ability of the Borrower and the Guarantors to
perform their obligations under the Credit Documents;

(vii) All Pre-Commitment Information shall be true, correct and complete in all material
respects. No additional information that pertains to the period prior to the execution of the
Commitment Letter shall have come to the attention of the Administrative Agent, any of the Lead
Arranger or the Lenders that is inconsistent with the Pre-Commitment Information and could
reasonably be expected to have a Material Adverse Effect;

(viii) All fees and expenses payable to the Administrative Agent and the Lenders on or prior
to the Effective Date (including all fees payable to Rabobank pursuant to the Fee Letter) shall
have been paid;

(ix) Payment of all fees and expenses of counsel to the Administrative Agent through the
Effective Date to the extent the Borrower or CBII has received an invoice therefor; and

(x) Such other evidence as the Administrative Agent or any Lender may reasonably request to
establish (A) the accuracy and completeness of the representations and warranties in all material
respects (unless any such representation or warranty is qualified as to materiality, in which case
such representation and warranty shall be true and correct in all respects) both immediately before
and after giving effect to the Transaction and (B) the compliance with the terms and conditions
contained in this Agreement and the other Credit Documents.

(h) Mortgages. Mortgages duly executed by the appropriate Loan Party with respect to
each of the Properties, together with:

(i) evidence that counterparts of the Mortgages have been either (A) duly recorded on or
before the Effective Date or (B) duly executed, acknowledged and delivered in form suitable for
filing or recording, in all filing or recording offices that the Administrative Agent may deem
necessary or desirable in order to create a valid first and subsisting Lien, subject to any Liens
which are expressly permitted by this Agreement to be prior, on the property described therein in
favor of the Administrative Agent pursuant to this Agreement or any other Credit Document and that
all filing and recording taxes and fees have been paid;

(ii) fully paid American Land Title Association Lender’s Extended Coverage title insurance
policies (the “Mortgage Policies”) with endorsements and in amounts acceptable to the
Administrative Agent, issued, coinsured and reinsured by title insurers acceptable to the
Administrative Agent, insuring the Mortgages to be valid first and subsisting Liens on the property
described therein, free and clear of all defects (including mechanics’ and materialmen’s Liens) and
encumbrances, excepting only any Liens which are expressly permitted by this Agreement to be prior,
and providing for such other affirmative insurance (including endorsements for future advances
under the Credit Documents and for mechanics’ and materialmen’s Liens) and such coinsurance and
direct access reinsurance as the Administrative Agent may deem necessary or desirable;

(iii) such affidavits, certificates, information (including financial data) and instruments of
indemnification (including a so-called “gap” indemnification) as shall be required to induce the
title company to issue the Mortgage Policies referred to in clause (ii) above;

(iv) estoppel certificates executed by all tenants of the Properties; provided,
however, that the Borrower shall only be required to use commercially reasonable efforts to
obtain such executed estoppel certificates;

(v) evidence of the insurance required by the terms of the Mortgages;

(vi) with respect to the Clayton County Property, a duly executed landlord estoppel and
consent agreement, in form and substance satisfactory to the Administrative Agent, along with (A) a
memorandum of lease and purchase option in recordable form with respect to the leasehold interest
and purchase option created under the Clayton County Lease, executed and acknowledged by the owner
of the affected real property, as lessor, or (B) evidence that the Clayton County Lease with
respect to such leasehold interest or a memorandum thereof has been recorded in all places
necessary, in the Administrative Agent’s reasonable judgment, to give constructive notice to
third-party purchasers of such leasehold interest; and

(vii) such other consents, agreements and confirmations of lessors and third parties as the
Administrative Agent may deem necessary or desirable and evidence that all other actions that the
Administrative Agent may deem necessary or desirable.

SECTION 3.02. Conditions Precedent to each Credit Event. The occurrence of each
Credit Event is subject to the further conditions that:

(a) The Borrower shall have delivered to the Administrative Agent and, if applicable, the L/C
Issuer or the Swing Line Lender, the Notice of Borrowing, Letter of Credit Application, Notice of
Conversion or Notice of Interest Period Selection, as the case may be, for such Credit Event in
accordance with this Agreement; and

(b) On the date such Credit Event is to occur and after giving effect to such Credit Event,
the following shall be true and correct:

(i) The representations and warranties of the Significant Parties set forth in
Article IV and in the other Credit Documents are true and correct in all material respects
(unless any such representation or warranty is qualified as to materiality, in which case such
representation and warranty shall be true and correct in all respects) as if made on such date
(except for representations and warranties expressly made as of a specified date, which shall be
true in all respects or all material respects, as applicable, as of such date),

(ii) No Default has occurred and is continuing or will result from such Credit Event,

(iii) No Material Adverse Change shall have occurred and be continuing,

(iv) Subject to the qualifications set forth in Section 4.01(c), all of the Credit
Documents are in full force and effect except any which by their terms were to have expired or have
been superseded and any which have been voluntarily terminated, and

(v) The occurrence of such Credit Event shall not violate any provision of, or result in the
breach of any contractual obligation under, the Senior Notes (71/2%) Indenture, the Senior Notes
(87/8%) Indenture and the Convertible Notes Indenture and the Administrative
Agent, on behalf of the Lenders, shall have received a certificate executed by an Officer of the
Borrower to such effect.

The submission by the Borrower to the Administrative Agent of each Notice of Borrowing, each Letter
of Credit Application, each Notice of Conversion (other than a notice for a conversion to a Base
Rate Loan) and each Notice of Interest Period Selection shall be deemed to be a representation and
warranty by the Borrower that each of the statements set forth above in this Section
3.02(b) is true and correct as of the date of such notice.

ARTICLE IV REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties. In order to induce the Administrative
Agent and the Lenders to enter into this Agreement, each of CBII and the Borrower hereby represents
and warrants to the Administrative Agent and the Lenders for itself and each of the other
Significant Parties as follows and each of CBII and the Borrower hereby agrees that each of such
representations and warranties shall survive until full, complete and indefeasible payment and
performance of the Secured Obligations and termination of the Commitments (except that
representations or warranties as to information included in Schedules 4.01(n), (q),
(w), (z) and (aa) shall apply as of the date provided or the date of the
most recent supplement):

(a) Due Incorporation, Qualification. Each of the Significant Parties (i) is a
corporation, partnership or limited liability company or similar entity duly organized, validly
existing and in good standing under the laws of its jurisdiction of incorporation or formation;
(ii) has the requisite power and authority to own, lease and operate its properties and carry on
its business as now conducted and (iii) is duly qualified, licensed to do business and in good
standing as a corporation, partnership, limited liability company or other entity, as applicable,
in each jurisdiction where its ownership, lease or operation of property or the conduct of its
business requires such qualification or license and where the failure to be so qualified or
licensed, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

(b) Authority. The execution, delivery and performance by each Loan Party of each
Credit Document executed, or to be executed, by such Loan Party and the consummation of the
transactions contemplated thereby (i) are within the corporate, limited liability company or
partnership or similar power of such Loan Party and (ii) have been duly authorized by all necessary
actions on the part of such Loan Party.

(c) Enforceability. Each Credit Document executed, or to be executed, by each Loan
Party has been, or will be, duly executed and delivered by such Loan Party and constitutes, or will
constitute, a legal, valid and binding obligation of such Loan Party, enforceable against such Loan
Party in accordance with its terms, except (i) as limited by Debtor Relief Laws relating to or
affecting the enforcement of creditors’ rights generally and general principles of equity and (ii)
as to the effect of Non-US laws which may limit the enforcement of certain provisions of the Credit
Documents executed by a Person that is not a US Person provided that the effect thereof
does not have a material adverse effect on the rights and remedies of the Administrative Agent and
the Lenders under such Credit Documents.

(d) Non-Contravention. The execution and delivery by each Loan Party of the Credit
Documents executed by such Loan Party and the performance and consummation of the transactions
(including the use of Loan proceeds) contemplated thereby do not (i) violate any Requirement of Law
applicable to such Loan Party, (ii) violate any provision of, or result in the breach or the
acceleration of, or entitle any other Person to accelerate (whether after the giving of notice or
lapse of time or both), any Contractual Obligation of such Loan Party, (iii) result in the creation
or imposition of any Lien (or the obligation to create or impose any Lien) upon any property, asset
or revenue of such Loan Party (except such Liens as may be created in favor of the Administrative
Agent for the benefit of itself and the other Secured Parties pursuant to this Agreement or the
other Credit Documents) or (iv) violate any provision of any existing law, rule, regulation, order,
writ, injunction or decree of any court or Governmental Authority to which it is subject, except in
each case in each of clauses (i), (ii), (iii) and (iv) above where
such breach or violation could not reasonably be expected to have a Material Adverse Effect.

(e) Approvals.

(i) Other than any such matters that may be required of a Lender that is not a US Person in
connection with its involvement in the transactions contemplated by this Agreement, no consent,
approval, order or authorization of, or registration, declaration or filing with, any Governmental
Authority or other Person (including the shareholders of any Person) is required in connection with
the execution and delivery of the Credit Documents executed by any Loan Party or the performance or
consummation of the transactions contemplated thereby, except for those which have been made or
obtained and are in full force and effect and except with respect to that portion of the Collateral
the perfection of which is not required pursuant to the terms of this Agreement or any Security
Document.

(ii) All Governmental Authorizations for the due execution, delivery, recordation, filing or
performance by any Loan Party of any Credit Document to which it is or it is to be a party, or
further consummation of the Transaction (except for (A) the filing of the UCC financing statements
to be filed on the Effective Date, (B) the filing of the Intellectual Property Security Agreements
to be filed in the appropriate indexes of the United States Patent and Trademark Office relative to
patents and trademarks, and the United States Copyright Office relative to copyrights on the
Effective Date or (C) as otherwise permitted under the Post Effective Date Requirements Letter
Agreement), have been duly obtained and are in full force and effect without any known conflict
with the rights of others and free from any unduly burdensome restrictions, except where any such
failure to obtain such Governmental Authorizations or any such conflict or restriction could not
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.
No Significant Party has received any written notice or other written communications from any
Governmental Authority regarding (i) any revocation, withdrawal, suspension, termination or
modification of, or the imposition of any material conditions with respect to, any such
Governmental Authorization or (ii) any other limitations on the conduct of business by any
Significant Party, except where any such revocation, withdrawal, suspension, termination,
modification, imposition or limitation could not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect.

(iii) No Governmental Authorization is required for either (A) for the pledge or grant by any
Loan Party as applicable of the Liens against the Collateral in which the Administrative Agent is
to have a perfected Lien in favor of the Administrative Agent pursuant to this Agreement or any
other Credit Document or (B) the exercise by the Administrative Agent of any rights or remedies in
respect of any such Collateral in which the Administrative Agent is to have a perfected Lien in
favor of the Administrative Agent pursuant to this Agreement or any other Credit Document (whether
specifically granted or created pursuant to any of the Security Documents or created or provided
for by any Governmental Rule), except for (1) such Governmental Authorizations that have been
obtained and are in full force and effect and fully disclosed to the Administrative Agent in
writing and (2) filings or recordings contemplated in connection with this Agreement or any
Security Document.

(f) No Violation or Default. No Significant Party is in violation of or in default
with respect to (i) any Requirement of Law applicable to such Person or (ii) any Contractual
Obligation of such Person (nor is there any waiver in effect which, if not in effect, could result
in such a violation or default), except where, in each case, such violation or default could not
reasonably be expected to have a Material Adverse Effect. No Default has occurred and is
continuing.

(g) Litigation. No action (including a derivative action), suit, proceeding or
investigation is pending or, to the knowledge of any of CBII’s or the Borrower’s officers or
directors, threatened against any Significant Party at law or in equity in any court, arbitration
proceeding or before any other Governmental Authority which (i) could (alone or in the aggregate)
reasonably be expected to have a Material Adverse Effect or (ii) seeks to enjoin, either directly
or indirectly, the execution, delivery or performance by any Loan Party of the Credit Documents or
the transactions contemplated thereby.

(h) Financial Statements. The Financial Statements of the CBII Entities and the
Borrower Entities (other than the draft financial statements delivered pursuant to Section
3.01(d)(i)) which have been delivered to the Administrative Agent (i) are in accordance with
the books and records of the CBII Entities or the Borrower Entities, as the case may be, which have
been maintained in accordance with good business practice, (ii) have been prepared in conformity
with GAAP (subject to absence of footnotes and normal year-end adjustments for interim financials)
and (iii) present fairly in all material respects the financial conditions, results of operations,
and cash flows of the CBII Entities or the Borrower Entities, as the case may be, as of the
respective dates thereof and for the periods covered thereby. Since December 31, 2007, there has
been no development or event that has had or could reasonably be expected to have a Material
Adverse Effect. No Loan Party has any Contingent Obligations, liability for taxes or other
outstanding obligations which, in any such case, could reasonably be expected to have a Material
Adverse Effect.

(i) Creation, Perfection and Priority of Liens.

(i) The Security Agreements are effective to create in favor of the Administrative Agent, for
the benefit of itself and the other Secured Parties, a legal, valid, binding and enforceable Lien,
and (to the extent that this Agreement obligates the Loan Parties to provide such a perfected first
priority Lien, and except to the extent Permitted Liens are expressly permitted herein to have
priority) a first priority Lien, in the Collateral described therein as security for the Secured
Obligations or the Guarantees of the Secured Obligations, as the case may be, to the extent that a
legal, valid, binding and enforceable Lien in such Collateral may be created under applicable law
of the US and any states thereof, including the Uniform Commercial Code. In the case of any
Pledged Intercompany Notes, when any such Pledged Intercompany Notes duly endorsed in blank (and
any other actions, filings, registrations, or recordings that may be necessary under any applicable
Non-US jurisdiction) are delivered to the Administrative Agent, the Lien created by the Security
Agreements on such Pledged Intercompany Notes shall constitute a fully perfected first priority
Lien on, and security interest in, all right, title and interest of the Loan Parties in such
Collateral as security for the Secured Obligations or the Guarantees of the Secured Obligations, as
the case may be. In the case of the Collateral described in the Security Agreements a security
interest in which may be perfected by the filing of a financing statement under the Uniform
Commercial Code, when Uniform Commercial Code financing statements in appropriate form are filed in
the applicable filing offices, the Security Agreements shall constitute a fully perfected Lien on,
and security interest in, all right, title and interest of the Loan Parties in such Collateral set
forth in the filings, as security for the Secured Obligations or the Guarantees of the Secured
Obligations, as the case may be, prior and superior to the Lien of any other Person (except to the
extent Permitted Liens are expressly permitted herein to have priority).

(ii) The Pledge Agreements are effective to create in favor of the Administrative Agent, for
the benefit of itself and the other Secured Parties, a legal, valid, binding and enforceable Lien,
and, if applicable (and to the extent that this Agreement obligates the Loan Parties to provide
such a perfected first priority Lien, and except to the extent Permitted Liens are expressly
permitted herein to have priority), a first priority Lien, in the Collateral described therein as
security for the Secured Obligations or the Guarantees of the Secured Obligations, as the case may
be, to the extent that a legal, valid, binding and enforceable Lien in such Collateral may be
created under applicable law of the US and any states thereof, including the Uniform Commercial
Code, or in any other applicable Non-US jurisdiction. In the case of any Pledged Equity
Securities, when any stock certificates representing such Pledged Equity Securities, together with
signed and undated stock powers (and any other actions, filings, registrations, or recordings that
may be necessary under any applicable Non-US jurisdiction) are delivered to the Administrative
Agent, the Lien created by the Pledge Agreements shall constitute a fully perfected first priority
Lien on, and security interest in, all right, title and interest of the Loan Parties in such
Collateral, as security for the Secured Obligations or the Guarantees of the Secured Obligations,
as the case may be. In the case of the Collateral described in the Pledge Agreements a security
interest in which may be perfected by the filing of a financing statement under the Uniform
Commercial Code, when Uniform Commercial Code financing statements in appropriate form are filed in
the applicable filing offices, the Lien created by the Pledge Agreements shall constitute a fully
perfected first priority Lien on, and security interest in, all right, title and interest of the
Pledgors in such Collateral, as security for the Secured Obligations or the Guarantees of the
Secured Obligations, as the case may be.

(iii) The Intellectual Property Security Agreements are effective to create in favor of the
Administrative Agent, for the benefit of itself and the other Secured Parties, a legal, valid,
binding and enforceable first priority Lien (to the extent that this Agreement obligates the Loan
Parties to provide such a perfected first priority Lien, and except to the extent Permitted Liens
are expressly permitted herein to have priority) in the Collateral described therein as security
for the Secured Obligations or the Guarantees of the Secured Obligations, as the case may be, to
the extent that a legal, valid, binding and enforceable security interest in such Collateral may be
created (i) with regard to such Collateral registered in the US under applicable law of the US and
any states thereof, including the Uniform Commercial Code and the United States Trademark Act of
1946, the United States Patent Act of 1972 and the United States Copyright Act of 1976, as
applicable (the “US IP Collateral”) or (ii) with regard to such Collateral registered in
Non-US jurisdictions under the law of such applicable Non-US jurisdiction. Upon the proper and
timely filing of (i) the Intellectual Property Security Agreements (or the short form security
documents attached thereto) in the appropriate indexes of the United States Patent and Trademark
Office relative to patents and trademarks, and the United States Copyright Office relative to
copyrights, together with provisions for payment of all requisite fees, (ii) Uniform Commercial
Code financing statements in appropriate form for filing in the applicable filing offices, and/or
(iii) any other actions, filings, registrations, or recordings that may be necessary under the laws
of any applicable Non-US jurisdiction, together with the proper fees, the Lien created by the
Intellectual Property Security Agreements shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in the US IP Collateral described
therein, as security for the Secured Obligations or the Guarantees of the Secured Obligations, as
the case may be, prior and superior to the Lien of any other Person (except to the extent Permitted
Liens are expressly permitted herein to have priority).

(iv) Each Mortgage is effective to create, as security for the obligations purported to be
secured thereby, a valid and enforceable first mortgage Lien on the respective property described
therein in favor of the Administrative Agent (or such other trustee as may be required or desired
under local law) for the benefit of the Secured Parties, superior and prior to the rights of all
third Persons, subject to Permitted Liens that are expressly permitted herein to have priority.

(j) Equity Securities. All outstanding Equity Securities of the Pledged Persons have
been duly authorized, validly issued and to the extent applicable, are fully paid and
non-assessable; there are no outstanding subscriptions, options, conversion rights, warrants or
other agreements or commitments of any nature whatsoever (firm or conditional) obligating the
Pledged Persons to issue, deliver or sell, or cause to be issued, delivered or sold, any additional
Equity Securities of the Pledged Persons, or obligating the Borrower or the other Pledged Persons
to grant, extend or enter into any such agreement or commitment; and all Equity Securities of the
Pledged Persons have been offered and sold in compliance with all applicable US state securities
laws and all other Requirements of Law, except where any failure to comply could not reasonably be
expected to have a Material Adverse Effect.

(k) No Agreements to Sell Assets. Except as set forth on Schedule 4.01(k), no
Significant Party has any legal obligation, absolute or contingent, to any Person to sell the
assets of any Significant Party (except any Permitted Asset Disposition as permitted by Section
5.02(c)), or to effect any merger or consolidation of any Significant Party (except any
Permitted Acquisition as permitted by Section 5.02(d)) or to enter into any agreement with
respect thereto.

(l) Employee Benefit Plans. Except as set forth on Schedule 4.01(l):

(i) Based upon the latest actuarial valuation report of each Pension Plan and using the
actuarial assumptions specified in IRC Section 412 for purposes of determining the Pension Plan’s
minimum funding requirements, the present value of the accrued liability did not exceed the
aggregate value of the assets of such Pension Plan by more than $3,500,000 in the case of any
single Pension Plan and by more than $5,000,000 in the aggregate for all Pension Plans. Neither
any Significant Party nor any ERISA Affiliate has post-retirement benefit obligations (determined
as of the last day of CBII’s most recently ended fiscal year in accordance with FASB No. 106) under
any Employee Benefit Plan which is a welfare plan (as defined in Section 3(1) of ERISA), other than
liabilities attributable to health plan continuation coverage described in Part 6 of Title I(B) of
ERISA, that could reasonably be expected to have a Material Adverse Effect.

(ii) Each Employee Benefit Plan complies, in both form and operation, in all material
respects, with its terms, ERISA and the IRC, except for instances of noncompliance which could not
reasonably be expected to result in the incurrence by any Significant Party or any ERISA Affiliate
of any material liability, fine or penalty. Each Employee Benefit Plan, related trust agreement,
arrangement and commitment of any Significant Party or any ERISA Affiliate is legally valid and
binding and in full force and effect. No Employee Benefit Plan is being audited or investigated by
any government agency or is the subject of any pending or, to the best of the knowledge of any of
CBII’s or the Borrower’s officers or directors, threatened claim or suit. None of the Borrower or
any ERISA Affiliate nor, to the best of the knowledge of any of CBII’s or the Borrower’s officers
or directors, any fiduciary of any Employee Benefit Plan has engaged in a non-exempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the IRC.

(iii) None of the Significant Parties and the ERISA Affiliates contributes to or has any
material contingent obligations to any Multiemployer Plan. None of the Significant Parties and the
ERISA Affiliates has incurred any material liability (including secondary liability) to any
Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan
under Section 4201 of ERISA or as a result of a sale of assets described in Section 4204 of ERISA.
None of the Significant Parties and the ERISA Affiliates has been notified that any Multiemployer
Plan is in reorganization or insolvent under and within the meaning of Section 4241 or Section 4245
of ERISA or that any Multiemployer Plan intends to terminate or has been terminated under Section
4041A of ERISA.

(iv) No Significant Party has (A) engaged in any transaction prohibited by any Governmental
Rule applicable to any Non-US Plan, (B) failed to make full payment when due of all amounts due as
contributions to any Non-US Plan or (C) otherwise failed to comply with the requirements of any
Governmental Rule applicable to any Non-US Plan where the above, singly or cumulatively, could
reasonably be expected to have a Material Adverse Effect.

(v) No ERISA Event has occurred or is reasonably expected to occur that could reasonably be
expected to have a Material Adverse Effect.

(m) Other Regulations. No Significant Party is subject to regulation under the
Investment Company Act of 1940, the Federal Power Act, the Interstate Commerce Act or any state
public utilities code, or to any other Governmental Rule limiting its ability to incur indebtedness
where singularly or cumulatively such limitation could reasonably be expected to have a Material
Adverse Effect.

(n) Trademarks, Patents, Copyrights and Licenses. The Significant Parties each
possess and either own, or have the right to use to the extent required by their business
operations, all trademarks, trade names, copyrights, patents, patent rights and licenses
(collectively, “Trademarks”) which are material to the conduct of their respective
businesses as now operated, including the Principal Trademarks. The Borrower owns all material
Trademarks that are trademarks. All such material Trademarks, including all Principal Trademarks,
are set forth on Schedule 4.01(n) as supplemented by the Borrower annually in accordance
with Section 5.01(a)(vi). The Significant Parties each conduct their respective businesses
without infringement, misappropriation, dilution, misuse or other violation or, to the best of the
knowledge of any of CBII’s or the Borrower’s officers or directors, after Due Inquiry, claim of
infringement, misappropriation, dilution, misuse or other violation of any trademark, trade name,
trade secret, service mark, patent, copyright, license or other intellectual property rights of any
other Person (which is not a Significant Party), except where such infringement, misappropriation,
dilution, misuse or other violation or claim of infringement, misappropriation, dilution, misuse or
other violation could not reasonably be expected to have a Material Adverse Effect. To the best of
the knowledge of any of CBII’s or the Borrower’s officers or directors there is no infringement,
misappropriation, dilution, misuse or other violation of any material trademark, trade name, trade
secret, service mark, patent, copyright, license or other intellectual property right of any of the
Borrower Entities except where such infringement, misappropriation, dilution, misuse or other
violation could not reasonably be expected to have a Material Adverse Effect. Each of the material
patents, trademarks, trade names, service marks and copyrights owned by any Significant Party which
is registered with any Governmental Authority is set forth on Schedule 4.01(n).

(o) Governmental Charges. The Significant Parties have filed or caused to be filed
all US Federal and material state tax returns which are required to be filed by them. The
Significant Parties have paid, or made provision for the payment of, all taxes and other material
Governmental Charges which have or may have become due pursuant to said returns or otherwise and
all other Indebtedness, except (i) such Governmental Charges or Indebtedness, if any, which are
being contested in good faith and by appropriate proceedings and as to which adequate reserves
(determined in accordance with GAAP) have been established therefor and (ii) taxes not yet due and
payable. Proper and accurate amounts have been withheld by the Significant Parties from their
employees for all periods in compliance with the tax, social security and unemployment withholding
provisions of applicable federal, state, local and Non-US law and such withholdings have been
timely paid when due to the respective Governmental Authorities in all material respects. The
Significant Parties have not executed or filed with the US Internal Revenue Service or any other
Governmental Authority any agreement or other document that extends, or has the effect of currently
extending, the period for assessment or collection of any taxes or Governmental Charges, where such
extension could reasonably be expected to have a Material Adverse Effect.

(p) Margin Stock. No Significant Party owns any Margin Stock which, in the aggregate,
would constitute a substantial part of the assets of the Significant Parties (taken as a whole),
and no proceeds of any Loan or drawings under any Letter of Credit will be used to purchase or
carry, directly or indirectly, any Margin Stock or to extend credit, directly or indirectly, to any
Person for the purpose of purchasing or carrying any Margin Stock, and no Significant Party is in
violation of Regulation T, U or X issued by the Federal Reserve Board.

(q) Subsidiaries. Schedule 4.01(q) (as supplemented by the Borrower annually
in accordance with Section 5.01(a)(vii)) sets forth each of the US Subsidiaries, the
Significant Subsidiaries and the De Minimis US Subsidiaries, their jurisdictions of organization,
the classes of their Equity Securities, and the percentages of outstanding Equity Securities of
each such class owned directly or indirectly by CBII or one or more of the Borrower Entities. All
of the outstanding Equity Securities of each such Subsidiary indicated on Schedule 4.01(q)
as owned by the Loan Parties are owned beneficially and of record by the Loan Parties free and
clear of all Liens (except for the Liens of the Administrative Agent granted by the Security
Documents). Other than the US Subsidiaries, the Significant Subsidiaries and the De Minimis US
Subsidiaries set forth on Schedule 4.01(q) (and as supplemental as noted above), the Loan
Parties do not have any US Subsidiaries, Significant Subsidiaries or De Minimis US Subsidiaries.

(r) Solvency. Each of the Significant Subsidiaries is Solvent and, after the
execution and delivery of the Credit Documents and the consummation of the transactions
contemplated thereby, will be Solvent.

(s) Labor Matters. There are no disputes presently subject to grievance procedure,
arbitration or litigation under any of the collective bargaining agreements, or employment
contracts to which any Significant Party is a party, and there are no strikes, lockouts, work
stoppages or slowdowns, or, to the best of the knowledge of any of CBII’s or the Borrower’s
officers or directors, after Due Inquiry, jurisdictional disputes occurring or threatened which in
any such case alone or in the aggregate could reasonably be expected to have a Material Adverse
Effect.

(t) No Material Adverse Change. Since December 31, 2007, there has not been any
Material Adverse Change.

(u) Accuracy of Information Furnished.

(i) All certificates, statements and information (excluding projections) furnished by the Loan
Parties to the Administrative Agent and the Lenders in connection with the Credit Documents and the
transactions contemplated thereby, taken as a whole, are true and accurate in all material respects
on the dates as of which such certificate, statement or information is dated and did not omit to
state any material fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading at such time. All projections furnished by the Loan
Parties to the Administrative Agent and the Lenders in connection with the Credit Documents and the
transactions contemplated thereby have been based upon reasonable estimates and assumptions and
neither CBII nor the Borrower has any reason to believe that such estimates and assumptions were
not reasonable at the date the projections were furnished to the Administrative Agent and the
Lenders.

(ii) The copies of the Material Documents of the Significant Parties which have been delivered
to the Administrative Agent in accordance with Section 3.01 are true, correct and complete
copies of the respective originals thereof, as in effect on the Effective Date, and no amendments
or modifications have been made to such Material Documents as of the Effective Date, except as set
forth by documents delivered to the Administrative Agent in accordance with Section 3.01 or
otherwise reasonably approved in writing by the Required Lenders. None of the Material Documents
of the Significant Parties has been terminated and each of such Material Documents is in full force
and effect. None of the Significant Parties is in default in the observance or performance of any
of its obligations under the Material Documents and each Significant Party has taken all action
required to be taken as of the Effective Date to keep unimpaired its rights thereunder, except
where such default or impairment could not reasonably be expected to have a Material Adverse
Effect.

(v) Brokerage Commissions. Other than amounts payable under the Fee Letter, no person
is entitled to receive any brokerage commission, finder’s fee or similar fee or payment in
connection with the extensions of credit contemplated by this Agreement as a result of any
agreement entered into by any Loan Party. No brokerage or other fee, commission or compensation is
to be paid by the Lenders with respect to the extensions of credit contemplated hereby as a result
of any agreement entered into by CBII or the Borrower, and the Borrower agrees to indemnify the
Administrative Agent and the Lenders against any such claims for brokerage fees or commissions and
to pay all expenses including attorney’s fees incurred by the Lenders in connection with the
defense of any action or proceeding brought to collect any such brokerage fees or commissions.

(w) Policies of Insurance. The properties of the Significant Parties are insured with
financially sound and reputable insurance companies not Affiliates of the Significant Parties, in
such amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where the Significant
Parties operate and such insurance coverage complies with Section 5.01(d);
provided, however, that no insurance coverage is maintained with respect to crops;
and provided, further, that the Significant Parties may self-insure as is customary
for similarly situated companies engaged in similar businesses and owning similar properties.
Schedule 4.01(w) (as supplemented by the Borrower yearly in accordance with
Section 5.01(a)(xvi)) accurately describes the insurance coverage maintained by the
Significant Parties.

(x) Other Agreements. Except as disclosed on Schedule 4.01(x), no Loan Party
has entered into and, as of the date of the applicable Credit Event no Loan Party contemplates
entering into, any material agreement or contract with any officers or directors of any Loan Party,
except upon terms at least as favorable to such Loan Party as an arm’s-length transaction with
unaffiliated Persons; and no Significant Party is a party to or is bound by any Contractual
Obligation or is subject to any restriction under its respective charter or formation documents
which could reasonably be expected to have a Material Adverse Effect.

(y) Environmental and Zoning Compliance. The Borrower or CBII conducts, in the
ordinary course of business, for itself and the other Significant Parties, a review of the effect
of existing Environmental Laws and claims alleging potential liability or responsibility for
violation of any Environmental Law on their respective businesses, operations and properties. No
Significant Party (i) has violated any Environmental Laws, (ii) has any liability under any
Environmental Laws, (iii) is the subject of any Environmental Damages or (iv) has received notice
or other communication of an investigation or is under investigation by any Governmental Authority
having authority to enforce Environmental Laws, except where such violation, liability,
Environmental Damages or investigation could not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect. The use and operation by each Significant Party of its
business properties are in compliance with all applicable Environmental Laws and Governmental
Rules, including all applicable land use and zoning laws, except to the extent that non-compliance
could not reasonably be expected to have a Material Adverse Effect.

(z) Owned Properties. Set forth on Schedule 4.01(z) (and as supplemented
annually in accordance with Section 5.01(k)) under the heading “Mortgaged Properties”
thereon is a complete and accurate list of each parcel of real property owned by any US Subsidiary
in the US which has a grossed-up book value or fair market value (as determined in good faith by
the Borrower) in excess of $5,000,000 or for which the Administrative Agent has otherwise requested
delivery of a Mortgage as of the Effective Date, in each case showing the street address, county or
other relevant jurisdiction, state, record owner and grossed-up book value or estimated fair market
value thereof (collectively, the “Owned Properties”). Each such US Subsidiary has good,
marketable and insurable fee simple title to such Owned Properties respectively owned by it, free
and clear of all Liens (except for the Liens of the Administrative Agent granted by the Security
Documents and except for Permitted Liens). Except as otherwise set forth on
Schedule 4.01(z), no other parcel of real property owned by any of the US Subsidiaries in
the US has a grossed up book value or, to the extent available, fair market value (as determined in
good faith by the Borrower), in either case, in excess of $5,000,000.

(aa) Leased Properties. Set forth on Schedule 4.01(aa) (and as supplemented
annually in accordance with Section 5.01(k)) is a complete and accurate list of all leases
of real property in the US under which any US Subsidiary is the lessor (including as sublessor) or
the lessee (including as sublessee), in each case showing as of the date hereof the street address,
county or other relevant jurisdiction, state, lessor, lessee, expiration date and annual rental
cost thereof. Each such lease is the legal, valid and binding obligation of the lessee thereof,
enforceable in accordance with its terms.

(bb) Existing Indebtedness. Set forth on Schedule 4.01(bb) is a complete and
accurate list of all Existing Indebtedness (other than Surviving Indebtedness) of the Loan Parties,
showing as of the date hereof the obligor and the principal amount outstanding thereunder.

(cc) Surviving Indebtedness. Set forth on Schedule 4.01(cc) is a complete and
accurate list of all Surviving Indebtedness (other than intercompany Indebtedness owed among the
Borrower Entities), showing as of the date hereof the obligor and the principal amount outstanding
thereunder, the maturity date thereof and the amortization schedule therefor.

(dd) Executive Order No. 13224; OFAC.

(i) No CBII Entity is any of the following (each, a “Blocked Person”):

(A) a Person that is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224;

(B) a Person owned or controlled by, or, to the best of each Loan Party’s knowledge after Due
Inquiry, acting for or on behalf of, any Person that is listed in the annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224;

(C) a Person or entity with which any bank or other financial institution is prohibited from
dealing or otherwise engaging in any transaction by any US Anti-Terrorism Law;

(D) to the best of each Loan Party’s knowledge after Due Inquiry, a Person or entity that
commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No.
13224;

(E) a Person or entity that is named as a “specially designated national” on the most current
list published by OFAC at its official website or any replacement website or other replacement
official publication of such list; or

(F) to the best of each Loan Party’s knowledge after Due Inquiry, a Person or entity who is
affiliated with a Person or entity listed above.

(ii) No Loan Party nor any Affiliate of a Loan Party (A) conducts any business or engages in
making or receiving any contribution of funds, goods or services to or for the benefit of any
Blocked Person or (B) deals in, or otherwise engages in any transaction relating to, any property
or interests in property blocked pursuant to Executive Order No. 13224 or any other applicable
Anti-Terrorism Law, except as otherwise permitted by applicable law or where any of the foregoing
(x) occurs prior to an officer of the Borrower or CBII being aware of such activity and (y) could
not be reasonably expected to have a Material Adverse Effect.

(iii) No Loan Party nor any Affiliate of a Loan Party is in violation of any Anti-Terrorism
Law or engages in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law, except where any of the foregoing (x) occurs prior to an officer of the
Borrower or CBII being aware of such activity and (y) could not be reasonably expected to have a
Material Adverse Effect.

SECTION 4.02. Reaffirmation. Each of CBII and the Borrower shall be deemed to have
reaffirmed, for the benefit of the Lenders and the Administrative Agent, each representation and
warranty contained in Article IV and in each other Credit Document on and as of the date of
each Credit Event (except that representations or warranties as to information included in
Schedules 4.01(n), (q), (w), (z) and (aa) shall apply as of
the date provided or the date of the most recent supplement).

ARTICLE V COVENANTS

SECTION 5.01. Affirmative Covenants. Until the termination of the Commitments and the
satisfaction in full by the Loan Parties of all Secured Obligations (other than any Unaccrued
Indemnity Claims), each of CBII and the Borrower will comply, and will cause compliance by the
other Significant Parties, with the following affirmative covenants, unless the Required Lenders
shall otherwise consent in writing:

(a) Financial Statements, Reports. The Borrower shall furnish to the Administrative
Agent the following:

(i) As soon as available and in no event later than 60 days after the last day of each of the
first three fiscal quarters of each fiscal year of the Borrower, a copy of the Financial Statements
of the Borrower Entities (prepared on a consolidated basis) for the fiscal year to date, certified
by the Chief Accounting Officer or the Chief Financial Officer of the Borrower to present fairly in
all material respects the financial condition, results of operations, cash flows, and other
information reflected therein and to have been prepared in accordance with GAAP (subject to normal
year end audit adjustments and omission of footnotes and statement of shareholder’s equity);

(ii) As soon as available and in no event later than 120 days after the close of each fiscal
year of the Borrower, copies of (A) the audited consolidated Financial Statements of the Borrower
Entities for such year, audited by Ernst & Young LLP or other independent certified public
accountants of recognized national standing and registered with the Public Company Accounting
Oversight Board and (B) copies of the unqualified opinions of such accountants;

(iii) Commencing with the fiscal quarter ended June 30, 2008, as soon as available and in no
event later than 60 days after the last day of each of the first three fiscal quarters of each
fiscal year in respect of quarterly Financial Statements of the Borrower Entities, 90 days after
the close of each fiscal year in respect of yearly Financial Statements of the CBII Entities and
120 days after the close of each fiscal year in respect of yearly Financial Statements of the
Borrower Entities in accordance with clause (i) above, clause (v) below and
clause (ii) above, respectively, a compliance certificate of the Chief Accounting Officer
or Treasurer of the Borrower (a “Compliance Certificate”) in substantially the form of
Exhibit G-1; provided, however, that the only calculations to be provided
in the Compliance Certificate delivered in connection with yearly Financial Statements of the CBII
Entities shall be with respect to the Consolidated Adjusted Leverage Ratio;

(iv) As soon as available and in no event later than 45 days after the last day of each of the
first three fiscal quarters of each fiscal year of CBII, a copy of the Quarterly Report for CBII on
Form 10-Q for such quarter and for the fiscal year to date; provided that such information,
to the extent the Borrower directly or indirectly provides the Administrative Agent with written
notice and an appropriate internet link thereto, shall be accessed by Lenders on EDGAR;

(v) As soon as available and in no event later than 90 days after the close of each fiscal
year of CBII, (A) copies of the Annual Report for CBII on Form 10-K for such year, audited by Ernst
& Young LLP or other independent certified public accountants of recognized national standing and
registered with the Public Company Accounting Oversight Board and (B) copies of the unqualified
opinions of such accountants; provided that such information, to the extent the Borrower
directly or indirectly provides the Administrative Agent with written notice and an appropriate
internet link thereto, shall be accessed by Lenders on EDGAR;

(vi) (A) As soon as available and in no event later than 120 days after the close of each
fiscal year of CBII, (1) a written supplement to Schedule 4.01(n) (setting forth all
necessary Trademark information as set forth in Section 4.01(n) and relating to the
Trademarks that are material to the conduct of the Significant Parties’ respective businesses as
then operated), (2) a written supplement to Schedule 3.06 to each Security Agreement, (3) any
additional disclosures under Section 4.01(n) after Due Inquiry and (4) any additional
disclosures to be provided on an annual basis under the Security Documents and (B) promptly, but in
any event within a reasonable time after any officer of CBII or the Borrower obtains knowledge of
the occurrence of an event that could reasonably be expected to result in a Material Adverse Effect
on any of the Principal Trademarks or the Trademark Licenses, give the Administrative Agent notice
of the occurrence of any such event;

(vii) (A) As soon as available and in no event later than 120 days after the close of each
fiscal year of CBII, a written supplement to Schedule 4.01(q) (setting forth each of the US
Subsidiaries, each of the Significant Subsidiaries and each of the De Minimis US Subsidiaries, its
jurisdiction of organization, the classes of its Equity Securities, the number of shares of each
such class issued and outstanding, the percentages of shares of each such class owned directly or
indirectly by CBII or the Borrower and whether CBII or the Borrower owns such shares directly or,
if not, the CBII Entities that own such shares and the number of shares and percentages of shares
of each such class owned directly or indirectly by such CBII Entities) and (B) promptly upon the
reasonable request of the Administrative Agent and in no event more often than annually, a current
hierarchy report for the CBII Entities, in the form and with the substance of the hierarchy report
delivered pursuant to Section 3.01(g)(iii);

(viii) As soon as possible and in no event later than 30 days after any officer or director of
any Significant Party knows of the occurrence or existence of (A) any ERISA Event under any Pension
Plan or Multiemployer Plan which, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect, (B) any actual or threatened litigation, suits, claims,
disputes or investigations against any Significant Party involving potential monetary damages or in
which injunctive relief or similar relief is sought, which could reasonably be expected to have a
Material Adverse Effect, (C) any other event or condition which, either individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect, including any of the
following which could reasonably be expected to have a Material Adverse Effect: (1) breach or
non-performance of, or any default under, a Contractual Obligation of any Significant Party,
(2) any dispute, litigation, investigation, proceeding or suspension between any Significant Party
and any Governmental Authority or (3) the commencement of, or any material development in, any
litigation or proceeding affecting any Significant Party, including pursuant to any applicable
Environmental Laws, or (D) any Default, the statement of the Chief Accounting Officer, Chief
Financial Officer, or Treasurer of the Borrower setting forth details of such event, condition or
Default and the action which CBII or the Borrower proposes to take with respect thereto. Each
notice pursuant to this Section 5.01(a)(viii) shall be accompanied by a statement of an
Officer of the Borrower setting forth details of the occurrence referred to therein and stating
what action CBII or the Borrower has taken and proposes to take with respect thereto. Each notice
pursuant to this Section 5.01(a)(viii) shall describe with particularity any and all
provisions of this Agreement or other Credit Document that have been breached;

(ix) In no event later than five Business Days after they are sent, made available or filed,
copies of (A) all registration statements and reports filed by any CBII Entities with any
securities exchange or the United States Securities and Exchange Commission (including all 10-Q,
10-K and 8-K reports), (B) all reports, proxy statements and Financial Statements sent or made
available by CBII to its Equity Securities holders and (C) all press releases and other similar
public announcements concerning any material developments in the business of CBII made available by
CBII to the public generally; provided that such information, to the extent the Borrower
directly or indirectly provides the Administrative Agent with written notice and an appropriate
internet link thereto, shall be accessed by Lenders on EDGAR;

(x) As soon as available and in no event later than 30 days after they are filed, copies of
all IRS Form 5500 reports for all Pension Plans required to file such form;

(xi) Within the earlier to occur of (i) five days after the Board of Directors of the Borrower
or CBII shall have publicly announced the earnings for the most recently completed fiscal year of
the Borrower or CBII and (ii) 60 days after the end of each fiscal year of the Borrower and CBII,
during each year when this Agreement is in effect, a forecast for the current fiscal year of the
Borrower Entities and the CBII Entities which includes projected consolidated statement of income
for such fiscal year and a projected consolidated statement of cash flows for such fiscal year and
projected consolidated balance sheets, statements of income and statements of cash flows on a
quarterly basis for such fiscal year; provided that the parties acknowledge that the
information in such forecasts is not compiled or presented in accordance with GAAP and may not
necessarily be presented on a basis consistent with the Borrower’s Financial Statements to be
delivered pursuant to Section 5.01(a);

(xii) As soon as possible and in no event later than the later of (A) any of CBII’s or the
Borrower’s officers or directors learning thereof or (B) five Business Days prior to the occurrence
of any event or circumstance (except for asset losses in which case as promptly as is reasonable
after such asset loss) that would require a prepayment pursuant to Section 2.06(c), the
statement of the Chief Financial Officer, Chief Accounting Officer or Treasurer of the Borrower
setting forth the details thereof;

(xiii) As soon as possible and in no event later than 30 days after the receipt thereof by any
Loan Party (or subsequent determination after Due Inquiry by an officer of the Borrower that it
could reasonably be expected to result in a Material Adverse Effect), a copy of any notice,
summons, citations or other written communications concerning any actual, alleged, suspected or
threatened violation of any Environmental Law or any liability of any Loan Party for Environmental
Damages that in any such case could reasonably be expected to result in a Material Adverse Effect;

(xiv) Such other instruments, agreements, certificates, opinions, statements, documents and
information relating to the properties, operations or condition (financial or otherwise) of the
Significant Parties, and compliance by the Significant Parties with the terms of this Agreement and
the other Credit Documents as the Administrative Agent or any Lender (through the Administrative
Agent) may from time to time reasonably request;

(xv) As soon as available and in no event later than five Business Days after any of CBII’s or
the Borrower’s officers or directors receive notice or become aware of any actions (including
derivative actions), suits, proceedings or investigations that are pending or, to the knowledge of
any of CBII’s or the Borrower’s officers or directors, threatened against any Significant Party at
law or in equity in any court, arbitration proceeding or before any other Governmental Authority
which seek to enjoin, either directly or indirectly, the execution, delivery or performance by any
Loan Party of the Credit Documents or the transactions contemplated thereby;

(xvi) As soon as available and in no event later than 120 days after the close of each fiscal
year of CBII, a written supplement to Schedule 4.01(w) (setting forth a true and complete
listing of all insurance maintained by the Significant Parties);

(xvii) Within 120 days after the close of each fiscal year of CBII, a written supplement
disclosing any matters required to update factual matters relating to Section 4.01(s); and

(xviii) To the extent delivered (and thereafter requested by the Administrative Agent or the
Lenders), management letters delivered by CBII’s or the Borrower’s accountants in connection with
any of CBII’s or the Borrower’s Financial Statements.

(b) Books and Records. The Significant Parties shall at all times keep proper books
of record (including the preparation of tax returns, which will be timely filed (or subject to
permitted extensions) with the appropriate Governmental Authority and complete and correct in all
material respects) and account in form, detail and scope consistent with good business practice.

(c) Inspections. The Significant Parties shall permit the Administrative Agent, or
any agent or representative thereof, (i) upon reasonable notice and during normal business hours so
long as no Default shall have occurred and be continuing and (ii) after the occurrence and during
the continuation of any Default at any time as the Administrative Agent may determine with or
without prior notice to the Borrower, to visit and inspect any of the Collateral, or any of the
properties, and offices of the Significant Parties, to examine the books and records of the
Significant Parties and make copies thereof, and to discuss the affairs, finances and business of
the Significant Parties with, and to be advised as to the same by, their officers, auditors and
accountants, all at such times and intervals as the Administrative Agent may reasonably request;
provided, however, that the Administrative Agent or such representative or agent
shall have no right of reimbursement from the Borrower for expenses incurred for such visits and
inspections as long as no Default has occurred or is continuing.

(d) Insurance. One or more of the Loan Parties on behalf of the Significant Parties
shall:

(i) Carry and maintain insurance during the term of this Agreement of the types and in the
amounts as are consistent with industry practice or with the insurance described on
Schedule 4.01(w) and all insurance required by law;

(ii) Furnish to the Administrative Agent, upon written request, information as to the
insurance carried;

(iii) Carry and maintain each policy for such insurance with (A) for those jurisdictions where
such a rating is available, a rating of A- (“A- Rating”) or better by A.M. Best and
Company, or its equivalent, at the time such policy is placed and at the time of each annual
renewal thereof or (B) for those jurisdictions where no A- Rating or its equivalent can be obtained
for insurers, a financially sound and reputable insurance company not an Affiliate of the
Significant Parties which is reasonably satisfactory to the Administrative Agent; and

(iv) Obtain and maintain endorsements or certificates reasonably acceptable to the
Administrative Agent for such insurance naming the Administrative Agent as additional insured on
liability policies and the Administrative Agent as lenders’ loss payee and mortgagee in the case of
property loss, as their interests may appear;

provided, however, that if any Significant Party shall fail to maintain
insurance in accordance with this Section 5.01(d), or if any Significant Party shall fail
to provide the required endorsements or certificates with respect thereto, the Administrative Agent
shall have the right (but shall be under no obligation) to procure such insurance and the Borrower
agrees to reimburse the Administrative Agent for all costs and expenses of procuring such
insurance.

(e) Governmental Charges and Other Indebtedness. Each Significant Party shall
promptly pay and discharge when due (i) all taxes and other Governmental Charges lawfully levied or
assessed against such Significant Party prior to the date upon which penalties accrue thereon,
(ii) all Indebtedness which, if unpaid, could become a Lien (other than a Permitted Lien) upon the
property of such Significant Party and (iii) subject to any subordination provisions applicable
thereto, all other Indebtedness which, in each of the foregoing cases, if unpaid, could reasonably
be expected to have a Material Adverse Effect, except such taxes, other Governmental Charges and
Indebtedness as are in good faith being contested or disputed by appropriate proceedings, or for
which arrangements for deferred payment have been made; provided that in each such case
adequate reserves (determined in accordance with GAAP) have been established therefor. CBII shall
promptly pay and discharge when due, and prior to the date upon which penalties accrue thereon, all
amounts owing to the US Department of Justice or other applicable US Governmental Authority in
connection with the DOJ Liability (including any related judgment, order or settlement agreement),
in accordance with the terms of any such judgment, order, or settlement agreement.

(f) Use of Proceeds. The Borrower shall use the proceeds of the Loans only for the
respective purposes set forth in Section 2.01(k). No CBII Entity shall use any part of the
proceeds of any Loan, directly or indirectly, for the purpose of purchasing or carrying any Margin
Stock or for the purpose of purchasing or carrying or trading in any securities under such
circumstances as to involve the Borrower, any Lender or the Administrative Agent in a violation of
Regulations T, U or X issued by the Federal Reserve Board.

(g) General Business Operations. Each of the Significant Parties shall (i) preserve,
renew and maintain in full force its corporate, partnership or limited liability company existence
and good standing under the Governmental Rules of the jurisdiction of its organization and all of
its rights, licenses, leases, qualifications, privileges franchises and other authority reasonably
necessary to the conduct of its business, provided, however, that this clause
(i) shall not apply to Significant Party that is merged, dissolved or liquidated, in each case,
to the extent permitted by Section 5.02(d), (ii) conduct its business activities in
compliance with all Requirements of Law and Contractual Obligations applicable to such Person,
except where such failure could not reasonably be expected to have a Material Adverse Effect,
(iii) keep all property used in its business in good working order and condition, ordinary wear and
tear excepted, consistent with past practices and from time to time make, or cause to be made, all
necessary and proper repairs, except, in each case, where any failure, either individually or in
the aggregate, could not reasonably be expected to have a Material Adverse Effect, (iv) maintain,
preserve and protect its rights to enjoy and use (A) the Principal Trademarks in the countries
indicated as set forth in Schedule 4.01(n), subject to and in accordance with the Security
Agreements and (B) all other trademarks, trade names, service marks, patents, copyrights, licenses,
leases, franchise agreements and franchise registrations, including the Trademarks (other than the
Principal Trademarks), except, in the case of this clause (B), where such failure could not
reasonably be expected to have a Material Adverse Effect, and (v) conduct its business in an
orderly manner without voluntary interruption, except where such failure could not reasonably be
expected to have a Material Adverse Effect. Each of CBII and the Borrower shall maintain its chief
executive office and principal place of business in the US and shall not relocate its chief
executive office or change its jurisdiction of formation except upon not less than 90 days prior
written notice to the Administrative Agent.

(h) Compliance with Laws. Each Significant Party shall comply with the requirements
of all applicable laws, rules, regulations and orders of any Governmental Authority (including all
Environmental Laws), except where such noncompliance could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

(i) Newly Formed or Acquired Subsidiaries.

(i) General. The Borrower shall notify the Administrative Agent, at its own expense
(A) within 30 days after the formation of any Significant Party, (B) within 30 days after the
acquisition of any Significant Party, and (C) within 120 days after the end of the fiscal year
during which any Subsidiary otherwise becomes a Significant Party.

(ii) Newly Formed or Acquired Subsidiaries.

(A) For any US Subsidiary formed, acquired or becoming a US Subsidiary (including through the
Borrower designating a De Minimis Subsidiary as a US Subsidiary) after the Effective Date, the
Borrower shall at its own expense and, if not previously completed, (1) within 30 days after notice
of such event is required to be provided under Section 5.01(i)(i), (I) cause such US
Subsidiary to execute an instrument of joinder (a “Joinder Agreement”) substantially in the
form of Exhibit P obligating such US Subsidiary under the Security Agreement and cause each
Borrower Entity that owns any Equity Securities of such US Subsidiary to pledge to the
Administrative Agent, for the benefit of itself and the other Secured Parties, 100% of the Equity
Securities owned by it of such US Subsidiary and execute and deliver all documents or instruments
required thereunder or appropriate to perfect the security interest created thereby, (II) in the
case of such Pledged Equity Securities, deliver or cause to be delivered to the Administrative
Agent all stock certificates, if any, of each such US Subsidiary owned by the applicable Pledgor
and added to the Collateral thereby, free and clear of all Liens, accompanied by signed and undated
stock powers or other instruments of transfer executed in blank (and take such other steps as may
be reasonably requested by the Administrative Agent to perfect the Administrative Agent’s Lien in
such Collateral in compliance with any applicable law), (III) cause each such US Subsidiary to
execute a Joinder Agreement obligating such US Subsidiary under the Subsidiary Guarantee Agreement
pursuant to documentation which is in form and substance reasonably satisfactory to the
Administrative Agent, and (IV) in the case of Collateral of such US Subsidiary that may be
perfected by the filing of a financing statement under the Uniform Commercial Code, cause each
general financing statement or, as applicable, fixture filings (but no crop, timber, mineral, or
other similar filings) to be filed, registered or recorded in order to create in favor of the
Administrative Agent, for the benefit of the Secured Parties, a valid, legal and perfected Lien,
and a first priority Lien (except to the extent Permitted Liens are expressly permitted herein to
have priority), in the Collateral subject to the financing statement to be so filed, registered or
recorded and evidence thereof delivered to the Administrative Agent and (2) if requested by the
Administrative Agent, within 60 days after such request, cause such US Subsidiary to deliver the
documents and opinions of the types described in Section 5.01(k)(ii) with respect to all
owned real property of such US Subsidiary which has a grossed up book value or fair market value
(as determined in good faith by the Borrower) in excess of $5,000,000.

(B) For any Significant Non-US Subsidiary of the Borrower formed, acquired or becoming a
Significant Non-US Subsidiary of the Borrower after the Effective Date, the Borrower shall at its
own expense and, if not previously completed, within 30 days after notice of such event is required
to be provided under Section 5.01(i)(i), to the extent required by the definitions of
Pledged Persons or Subsidiary Guarantors, (1) cause each Borrower Entity that owns any Equity
Securities of such Significant Non-US Subsidiary to execute an instrument of joinder obligating
such Borrower Entity as a Pledgor under the Pledge Agreement and to pledge to the Administrative
Agent, for the benefit of itself and the other Secured Parties, the appropriate percentage of
non-voting and voting Equity Securities owned by such Pledgor of such Significant Non-US Subsidiary
as provided in the definition of Pledged Persons and execute and deliver all documents or
instruments required thereunder or appropriate to perfect the security interest created thereby,
(2) cause each such Significant Non-US Subsidiary to execute a Joinder Agreement obligating such
Significant Non-US Subsidiary under the Subsidiary Guarantee Agreement or to otherwise Guarantee
the Secured Obligations pursuant to documentation which is in form and substance reasonably
satisfactory to the Administrative Agent and (3) in the case of Pledged Equity Securities, deliver
to the Administrative Agent all stock certificates, if any, representing the Pledged Equity
Securities of such Significant Non-US Subsidiary added to the Collateral thereby free and clear of
all Liens, accompanied by signed and undated stock powers or other instruments of transfer executed
in blank (and take such other steps as may be reasonably requested by the Administrative Agent to
perfect the Administrative Agent’s Lien in such Collateral in compliance with any applicable law).

(j) Appraisals. The Administrative Agent may commission an appraisal of the
Trademarks at any time at the expense of the Lenders; provided that such appraisal shall be
at the Borrower’s expense if such appraisal: (i) is the first appraisal of the Trademarks and more
than 18 months have elapsed since the Effective Date, (ii) is commissioned after the occurrence and
during the continuance of an Event of Default or (iii) is commissioned after the occurrence of any
Material Adverse Change.

(k) Real Property.

(i) As soon as available and in any event within 120 days after the end of each fiscal year,
the Borrower shall provide a report supplementing Schedules 4.01(z) and 4.01(aa),
including an identification of all owned real property which has a grossed up book value or fair
market value (as determined in good faith by the Borrower) in excess of $5,000,000 and all leased
real property located in the US, the lease payments with respect to which exceeded $500,000 during
such fiscal year, that has been disposed of by any US Subsidiary during such fiscal year, a list
and description (including the street address, county or other relevant jurisdiction, state, record
owner, book value thereof and, in the case of leases of property, lessor, lessee, expiration date
and annual rental cost thereof) of all real property acquired by a US Subsidiary in the US which
has a grossed up book value or fair market value (as determined in good faith by the Borrower) in
excess of $5,000,000 and all real property leased by a US Subsidiary in the US during such fiscal
year, the lease payments with respect to which exceeded $500,000 during such fiscal year, and a
description of such other changes in the information included in such Schedules as may be necessary
for such Schedules to be accurate and complete.

(ii) The Borrower shall, and shall cause each of the US Subsidiaries to, within 180 days after
the end of each fiscal year, if requested by the Administrative Agent, grant to the Collateral
Agent, for the benefit of the Secured Parties, a first priority Mortgage on the owned real property
that is listed (or should be listed) on Schedule 4.01(z) and not encumbered by a Mortgage
and shall deliver such other documentation and opinions, in form and substance satisfactory to the
Collateral Agent, in connection with the grant of such Mortgage as the Collateral Agent shall
reasonably request, including title insurance policies, financing statements, fixture filings and
environmental audits, and the Borrower shall pay all recording costs, intangible taxes and other
fees and costs (including reasonable attorneys’ fees and expenses) incurred in connection
therewith.

(l) Compliance with Terms of Leaseholds. The Borrower shall make, and the Borrower
shall cause each of the other Loan Parties to make, all payments and otherwise perform all
obligations in respect of all leases of real property in the US to which any Significant Party is a
party (including the Clayton County Lease), keep such leases in full force and effect and not allow
such leases to lapse or be terminated or any rights to renew such leases to be forfeited or
cancelled, notify the Administrative Agent of any default by any party with respect to such leases
and cooperate with the Administrative Agent in all respects to cause each of the Significant
Parties to cure any such default unless such failure to pay or perform, lapse, termination,
forfeiture or cancellation could not reasonably be expected to have a Material Adverse Effect.

(m) Maintenance of Properties, Etc. The Borrower shall maintain and preserve, and
cause each of the other Significant Parties to maintain and preserve, all of its properties in good
working order and condition, ordinary wear and tear excepted, and will from time to time make or
cause to be made all appropriate repairs, renewals and replacements thereof, except in any such
case where failure to do so would not reasonably be expected to have a Material Adverse Effect.

(n) Clayton County Fee Interest. From and after the Effective Date, the Loan Parties
shall maintain the Clayton County Lease in full force and effect and shall not exercise any
purchase options thereunder or attempt to redeem any bonds issued in connection therewith without
the prior written consent of the Administrative Agent. Upon any acquisition of the fee simple
interest in the Clayton County Property by any Loan Party, such Loan Party shall, at its sole cost
and expense (i) execute and deliver to the Administrative Agent, in form and substance reasonably
satisfactory to the Administrative Agent, a modification to the Clayton County Leasehold Mortgage,
(ii) obtain an endorsement to the Administrative Agent’s policy of title insurance with respect to
the Clayton County Property, such endorsement to change the effective date of such coverage to the
date and time of recording of such modification and to confirm the first-position security title of
the Administrative Agent in and to the fee simple interest of the Clayton County Property, (iii)
provide any and all other documentation contemplated by Section 3.01(h) as the
Administrative Agent may require in its sole discretion, and (iv) upon the request of the
Administrative Agent, in its sole discretion, deliver favorable opinions, addressed to the
Administrative Agent and the other Secured Parties, of counsel for the Loan Parties acceptable to
the Administrative Agent substantially similar to those opinions delivered pursuant to Section
3.01(f)(ii) and 3.01(f)(iii) and otherwise in form and substance reasonably
satisfactory to the Administrative Agent.

SECTION 5.02. Negative Covenants. Until the termination of the Commitments and the
satisfaction in full by the Loan Parties of all Secured Obligations (other than any Unaccrued
Indemnity Claims), each of CBII and the Borrower will comply, and will cause compliance by the
other Significant Parties, with the following negative covenants, unless the Required Lenders shall
otherwise consent in writing:

(a) Indebtedness. The Borrower shall not, and CBII and the Borrower shall not permit
the Borrower Entities to, create, incur, assume or permit to exist any Indebtedness unless (i) such
Indebtedness does not violate any terms of the Senior Notes (71/2%) Indenture, the Senior Notes (8?%)
Indenture or the Convertible Notes Indenture as each is in effect on the Effective Date and without
giving any effect to any waiver or consent with respect to any incurrence of Indebtedness, (ii) no
Default has occurred or is continuing or would result therefrom, and (iii) the Borrower is in Pro
Forma Compliance with all Financial Covenants in accordance with Section 5.03.

(b) Liens. None of the Borrower Entities shall create, incur, assume or permit to
exist any Lien on or with respect to any Borrower Entity assets or property of any character,
whether now owned or hereafter acquired, except for Permitted Liens (other than any Lien in any
Equity Securities issued by any Borrower Entities, which shall not be subject to any Liens except
for Liens in favor of the Administrative Agent and the other Secured Parties securing all or any
part of the Secured Obligations as specified herein or in the relevant Security Document).

(c) Asset Dispositions. None of the Borrower Entities shall, directly or indirectly,
sell, lease, convey, transfer or otherwise dispose (including via any sale and leaseback
transaction) of any of its non-cash assets or property, whether now owned or hereafter acquired,
except for Permitted Sales and the following (“Permitted Asset Dispositions”), which
Permitted Asset Dispositions may fall within any one of the following categories (whether or not
such Permitted Asset Dispositions could fall within one or more other categories and, if an asset
disposition could qualify for more than one category of Permitted Asset Dispositions, the Borrower
may designate which category the asset disposition qualifies for without such asset disposition
counting against other categories):

(i) Sales of inventory in the ordinary course of their businesses;

(ii) Sales or dispositions of damaged, worn, obsolete, or other unneeded assets in the
ordinary course of their businesses for not less than Fair Market Value;

(iii) Sales or other dispositions of Investments permitted by Section 5.02(e)(ii) for
not less than Fair Market Value; provided that no Default shall have occurred and be
continuing;

(iv) [Intentionally Omitted];

(v) Sales or other dispositions of the entities listed on Schedule 5.02(c)(v);
provided, however, that in connection with any sale or other disposition of
substantially all of the Equity Securities and/or substantially all of the assets of Atlanta AG,
the Borrower shall be in Pro Forma Compliance with all Financial Covenants after giving effect to
such sale or disposition and no later than the date of any such sale or disposition, the Borrower
shall deliver to the Administrative Agent a certificate executed by the Chief Accounting Officer or
Treasurer of the Borrower which sets forth the calculation of Pro Forma Compliance with all
Financial Covenants set forth in Section 5.03 after giving effect to such sale or
disposition;

(vi) Sales or other transfers of property and assets from De Minimis US Subsidiaries dissolved
pursuant to Section 5.02(d)(ii); and

(vii) Sales or other dispositions for Fair Market Value, the Net Cash Proceeds of which are
applied to the prepayment of the Loans or otherwise as set forth in Section 2.06(c);
provided that no Default shall have occurred and be continuing or result from such sale or
other disposition, the Borrower shall be in Pro Forma Compliance with all Financial Covenants after
giving effect to such Permitted Asset Disposition and no later than the date of the Permitted Asset
Disposition pursuant to this clause (vii), the Borrower shall deliver to the Administrative
Agent a Compliance Certificate which (A) states that no Default has occurred or is continuing and
(B) sets forth the calculation of Pro Forma Compliance with all Financial Covenants set forth in
Section 5.03 after giving effect to the Permitted Asset Disposition; and provided,
further, that the Borrower’s requirement to advise the Administrative Agent as provided
above shall not apply to any Relevant Sales that in the aggregate are equal to or less than
$5,000,000 for such fiscal year.

(d) Mergers, Acquisitions and Dissolutions. None of the CBII Entities shall
consolidate with or merge into any other Person or permit any other Person to merge into any other
CBII Entity, or acquire (or form a new Subsidiary to acquire) all or substantially all of the
assets or equity or any identifiable business unit, division or operations of any other Person, or
dissolve itself, except for the following:

(i) the CBII Entities may merge with each other and acquire all or substantially all of the
assets or equity or any identifiable business unit, division or operations of any other CBII
Entity; provided that (A) no Event of Default will result after giving effect to such
merger, (B) in any such merger involving a US Subsidiary and a Non-US Subsidiary, the US Subsidiary
is the surviving Person, (C) in any such merger involving the Borrower, the Borrower is the
surviving Person, (D) in any such merger involving CBII, CBII is the surviving Person and is in
compliance with Section 5.02(g)(ii) after such merger, (E) CBII shall not merge with or
into the Borrower and the Borrower shall not merge with or into CBII, (F) following such merger or
acquisition, the Borrower is in compliance with Section 2.14 and (G) if any Subsidiary
becomes a Significant Party after giving effect to such transaction, the Borrower provides the
documents required by Section 5.01(i) no later than 30 days after such merger or
acquisition;

(ii) any Subsidiary of the Borrower may liquidate or dissolve itself in accordance with
Requirements of Law so long as, if such Subsidiary is a Loan Party, the assets of such Subsidiary
are transferred to another Loan Party in connection with such dissolution; and

(iii) any acquisitions (“Permitted Acquisitions”) by a Borrower Entity of all or
substantially all of the assets or equity of any other Person or any identifiable business unit,
division or operations of any other Person; provided that:

(A) No Event of Default shall have occurred and be continuing before or after giving effect to
any acquisition;

(B) The aggregate purchase consideration for such acquisition when added to all other such
acquisitions during the preceding 12 months ending on the day that is the last day of the most
recent month before such acquisition closes does not exceed $100,000,000;

(C) After giving effect to such acquisition, the acquired Person or the assets, business unit,
division or operations acquired shall be directly or indirectly owned by a Subsidiary of the
Borrower;

(D) In the case of an acquisition of a new Person (or the formation of a new Subsidiary to
acquire any such Person or all or substantially all of the assets or any identifiable business
unit, division or operations of any such Person), the acquired Person or newly formed Subsidiary
shall become a Guarantor, Pledgor and/or Pledged Person to the extent required by Section
5.01(i); provided that the Lenders and the Administrative Agent shall permit, to the
extent not otherwise burdensome or detrimental to the Lenders, any such new pledge or Guarantee to
be structured in the manner most tax advantageous for the Borrower;

(E) The acquisition has been (1) approved by the Board of Directors of the Person to be
acquired and, if applicable, such acquisition has been recommended for approval to such Person’s
shareholders or interest holders and (2) undertaken in accordance with all applicable Requirements
of Law; and

(F) If requested by Administrative Agent and to the extent available to CBII or the Borrower,
the Borrower shall provide to the Administrative Agent or Lenders the historical Financial
Statements of the acquired Person or of the Person owning all or substantially all of the assets,
or the identifiable business unit, division or operations to be acquired and such other additional
information as reasonably requested by the Administrative Agent regarding such acquisitions;

provided that no later than 30 days after the date of the Permitted Acquisition of a
Significant Party pursuant to this Section 5.02(d)(iii), the Borrower delivers to the
Administrative Agent a Compliance Certificate in substantially the form of Exhibit G-2
which (A) states that no Default has occurred or is continuing and (B) sets forth the calculation
demonstrating Pro Forma Compliance with the Financial Covenants after giving effect to the
Permitted Acquisition.

(e) Investments. None of the Borrower Entities shall make any Investment, or enter
into any transaction that has substantially similar effect, except for the following, which
Investments may fall within any one of the following categories (whether or not such Investments
could fall within one or more other categories and if an Investment qualifies for more than one of
the following categories, the Borrower may designate which category the Investment qualifies for
without such Investment counting against other categories):

(i) Investments in connection with mergers and Permitted Acquisitions permitted under
Section 5.02(d);

(ii) Temporary Cash Investments;

(iii) an Investment that is made as a result of the receipt of non-cash consideration from a
disposition of assets that was made pursuant to, and in compliance with, the covenant related to
asset dispositions set forth in Section 5.02(c);

(iv) Investments consisting of (A) loans and advances to employees for reasonable travel,
relocation and business expenses in the ordinary course of business not to exceed $5,000,000 in the
aggregate at any one time outstanding and (B) loans to employees of any Borrower Entity for the
sole purpose of purchasing equity of CBII not to exceed $5,000,000 in the aggregate at any one time
outstanding;

(v) Investments existing on the Effective Date and listed in Schedule 5.02(e);
provided that the Borrower shall not be required to include immaterial Investments on
Schedule 5.02(e);

(vi) Investments in connection with Hedging Obligations that are permitted under Section
5.02(l);

(vii) Investments consisting of endorsements for collection or deposit in the ordinary course
of business;

(viii) Investments in suppliers or customers that are subject to Debtor Relief Laws or similar
proceedings or as a result of foreclosure on a secured Investment in a third party received in
exchange for or cancellation of an existing obligation of such supplier or customer to any Borrower
Entity;

(ix) Investments paid for solely with Equity Securities of CBII; provided that such
Investments constitute Permitted Acquisitions set forth in Section 5.02(d);

(x) Investments represented by Guarantees by any Borrower Entity of Indebtedness of an
unrelated third party which is involved in a commercial relationship with any Borrower Entity in
the ordinary course of business, such as a supplier, customer or service-provider; provided
that the Indebtedness Guaranteed under this clause (x) does not exceed an aggregate amount
outstanding at any time of $15,000,000 and the proceeds of the underlying Indebtedness are or have
been used in a Food-Related Business;

(xi) deposits required by Governmental Authorities, public utilities or suppliers in the
ordinary course of business;

(xii) prepaid expenses incurred in the ordinary course of business;

(xiii) Investments with respect to performance bonds, bankers’ acceptance, workers’
compensation claims, surety or appeal bond payments, obligations in connection with self-insurance
or similar obligations and bank overdrafts;

(xiv) extensions of trade credit recorded as accounts receivable entered into in the ordinary
course of business;

(xv) advancement of funds by any CBII Entity in the ordinary course of business to growers or
suppliers of products for Food-Related Businesses as advances for such products;

(xvi) Investments in any Person in an aggregate amount for all such Investments made pursuant
to this clause (xvi), as valued at the time each such Investment is made (minus, if such
Investment is a loan, any repayments thereof), not to exceed 10% of the total consolidated assets
of the CBII Entities, so long as such Investments are in a Food-Related Business;

(xvii) Investments in the joint ventures more specifically described on Schedule
5.02(e)(xvii) in an aggregate amount for such Investments, as valued at the time each such
Investment is made (minus, if such Investment is a loan, any repayments thereof), not to exceed the
amount for each joint venture set forth on such Schedule;

(xviii) Investments by the Borrower and its Subsidiaries in their wholly-owned Subsidiaries,
so long as such Investments are (A) in the ordinary course of business and (B) consistent with past
practices; and

(xix) Investments (other than Investments specified in clauses (i) through
(xvii) above) in an aggregate amount for all such Investments, as valued at the time each
such Investment is made (minus, if such Investment is a loan, any repayments thereof), not to
exceed $30,000,000 at any time after the Effective Date.

(f) Dividends, Redemptions, Distributions. None of the Borrower Entities shall make
any Distributions or set apart any sum for such purpose, except:

(i) any Borrower Entity may make Distributions (or set apart sums for such purposes) on its
Equity Securities to any other Borrower Entity that is a Loan Party (other than the Parent);

(ii) the Borrower may make Distributions to CBII (A) in any event for the cash costs in
respect of CBII Overhead Expenses (including for Distributions not matching up to expenses, such as
for deferred compensation plans) in amounts not exceeding such cash costs, (B) to fund liabilities
of CBII disclosed on Schedule 5.02(f)(ii) existing as of the Effective Date, (C) in respect
of the DOJ Liability in an aggregate amount not to exceed $5,000,000 in any fiscal year plus
interest thereon and (D) provided that (1) no Event of Default has occurred and is then
continuing or would result from such Distribution and (2) the Borrower is in Pro Forma Compliance
with all Financial Covenants, both before and after giving effect to such Distribution, for any
other purpose (including dividends, interest payments, and Stock and Warrant Repurchases);

(iii) any Borrower Entity that is not a Loan Party may make Distributions (or set apart sums
for such purposes) on its Equity Securities to any other Borrower Entity that is a not a Loan
Party; and

(iv) as long as no Event of Default has occurred and is then continuing, pro rata
Distributions to minority shareholders of Borrower Entities.

(g) Conduct of Business.

(i) No Borrower Entity shall engage, either directly or indirectly through Affiliates, in any
business substantially different from Food-Related Businesses.

(ii) CBII shall not conduct any operating business nor own any assets (other than those it
currently owns as set forth on Schedule 5.02(g)), provided that (A) CBII may employ
officers and employees to fulfill its obligations as a public company and to administer its
Subsidiaries’ business activities, enter into space leases and other agreements in connection with
such business activities, have and maintain various Pension Plans for it, its Subsidiaries and
their employees and own office equipment, (B) CBII may own stock in the Borrower and Equity
Securities in other Persons in which it owns Equity Securities on the Effective Date
(provided that CBII does not materially increase the funding or activities of those Persons
other than the Borrower Entities) and (C) CBII may Guarantee contracts of the Borrower Entities.

(iii) CBII shall and shall cause each of its Significant Subsidiaries to (A) except as
permitted by Section 5.02(d), preserve its separate legal existence, (B) comply in all
material respects with the requirements of its organizational documents and other governing
instruments (including bylaws), (C) not conduct business under the name of any other CBII Entity,
(D) maintain separate and complete books and records in accordance with GAAP and otherwise to
properly reflect its business and financial affairs and (E) maintain full and complete records of
all transactions with any CBII Entity.

(h) Disposition of Accounts Receivables of US Subsidiaries. No CBII Entity shall sell
or otherwise dispose of or encumber (except pursuant to the Security Documents), or permit any of
its Subsidiaries to sell or otherwise dispose of or encumber (except pursuant to the Security
Documents), any accounts receivables of any US Subsidiaries (except good faith settlement of
disputed accounts receivable).

(i) ERISA.

(i) No CBII Entity nor any ERISA Affiliate shall: (A) adopt or institute any Pension Plan;
(B) take any action which will result in the partial or complete withdrawal, within the meanings of
Sections 4203 and 4205 of ERISA, from a Multiemployer Plan; (C) engage or permit any Person to
engage in any transaction prohibited by Section 406 of ERISA or Section 4975 of the IRC involving
any Employee Benefit Plan or Multiemployer Plan which would subject the Borrower or any ERISA
Affiliate to any tax, penalty or other liability including a liability to indemnify; (D) incur or
allow to exist any accumulated funding deficiency (within the meaning of Section 412 of the IRC or
Section 302 of ERISA); (E) fail to make full payment when due of all amounts due as contributions
to any Pension Plan or Multiemployer Plan; (F) fail to comply with the requirements of Section
4980B of the IRC or Part 6 of Title I(B) of ERISA; or (G) adopt any amendment to any Pension Plan
which would require the posting of security pursuant to Section 401(a)(29) of the IRC, where any
such event or events described in clauses (A) through (G) above, either singly or
cumulatively, could reasonably be expected to have a Material Adverse Effect.

(ii) No CBII Entity shall (A) engage in any transaction prohibited by any Governmental Rule
applicable to any Non-US Plan; (B) fail to make full payment when due of all amounts due as
contributions to any Non-US Plan; or (C) otherwise fail to comply with the requirements of any
Governmental Rule applicable to any Non-US Plan, where any such event or events described in
clauses (A) through (C) above, either singly or cumulatively, could reasonably be
expected to have a Material Adverse Effect.

(j) Transactions with Affiliates. No CBII Entity shall enter into any Contractual
Obligations with any Affiliate or engage in any other transaction with any Affiliate except (i)
Contractual Obligations or other transactions between or among Borrower Entities or (ii) on terms
which are no less favorable to any Borrower Entity than would prevail in the market for similar
transactions between unaffiliated parties dealing at arm’s length or with concomitant benefits
accruing to the party that has received less than arm’s-length terms.

(k) Accounting Changes. Except on 30 days prior notice, no CBII Entity shall
change its fiscal year (currently January 1 through December 31).

(l) Rate Contracts. No CBII Entity shall enter into any Rate Contract, except Rate
Contracts entered into for non-speculative purposes: (i) to hedge or mitigate risks to which any
Borrower Entity has actual exposure (other than those in respect of Equity Securities of any
Borrower Entity) or (ii) to effectively cap, collar or exchange interest rates (from fixed to
floating rates, from one floating rate to another floating rate or otherwise) with respect to any
interest-bearing liability or investment of any Borrower Entity.

(m) Limitation on Consolidated Tax Liability. No CBII Entity shall be liable for US
Federal income taxes relating to the taxable income of any CBII Entity or Affiliate of such CBII
Entity which is not a Loan Party in excess of the amount of US Federal income taxes it would pay if
reporting as a separate entity, unless such CBII Entity is fully reimbursed by such a CBII Entity
or Affiliate of such CBII Entity on or before the payment of such taxes.

(n) Restrictive Agreements. No CBII Entity shall agree to:

(i) any restriction or limitation (other than as set forth in this Agreement) on the making of
Distributions or the transferring of assets from any CBII Entity to any non-CBII Entity (except
limitations contained in this Agreement) other than (A) those that are arrangements in connection
with Indebtedness not to exceed $1,000,000 in the aggregate outstanding at any one time that can be
optionally prepaid by the CBII Entities and (B) those with respect to Permitted Joint Ventures (but
not limiting pro rata distribution requirements), GWF and its Subsidiaries, Exportadora Chile,
Servicios Chile, Atlanta AG and its Subsidiaries, CBCBV, and such other Subsidiaries as are
permitted by the Administrative Agent on or after the Effective Date in its sole and absolute
discretion; or

(ii) any negative pledge agreement with any creditor or third party other than (A) as set
forth in this Agreement and those that are currently existing on the Effective Date and listed on
Schedule 5.02(n) (including any renewal, modification, or extension thereof), (B) those
that are arrangements in connection with Indebtedness not to exceed $1,000,000 in the aggregate
outstanding at any one time that can be optionally prepaid by the CBII Entities and (C) those with
respect to the assets of Permitted Joint Ventures, GWF and its Subsidiaries, Exportadora Chile,
Servicios Chile, Atlanta AG and its Subsidiaries, CBCBV, and such other Subsidiaries as are
permitted by the Administrative Agent on or after the Effective Date in its sole and absolute
discretion.

(o) PACA. No CBII Entity shall fail to make payments on invoices or other obligations
to vendors that are subject to PACA within 90 days of the due date, unless matters relating thereto
are being contested in good faith by appropriate proceedings.

(p) Anti-Terrorism Laws; OFAC. 

(i) Anti-Terrorism Laws. Neither CBII nor the Borrower will permit any of the CBII
Entities to violate any Anti-Terrorism Law or engage in or conspire to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in any Anti-Terrorism Law, except for any such violation that (x) occurs
prior to an officer of the Borrower or CBII being aware of such activity and (y) could not be
reasonably expected to have a Material Adverse Effect.

(ii) Neither CBII nor the Borrower will permit any of the CBII Entities to use in violation of
applicable US laws or regulations the proceeds of any Loan or L/C Credit Extension made pursuant to
this Agreement (A) to fund any operations of, to finance any investments or activities in, or to
make any payments to, any Person named on any list maintained by OFAC or (B) to fund any operations
in, to finance any investments or activities in, or to make any payments to, an agency of the
government of a country, an organization controlled by a country, or a Person resident in a country
that is subject to a sanctions program administered by the U.S. Department of the Treasury’s Office
of Foreign Assets Control under 31 C.F.R. Chapter V. Neither CBII nor the Borrower will permit any
funds used to repay any of the Obligations to be derived from, or be the proceeds of, any activity
that violates any Anti-Terrorism Laws.

SECTION 5.03. Financial Covenants. Until the termination of the Commitments and the
satisfaction in full by the Loan Parties of all Secured Obligations (other than any Unaccrued
Indemnity Claims), the Borrower will comply, and will cause compliance, with the following
financial covenants, unless the Required Lenders shall otherwise consent in writing:

(a) Borrower Leverage Ratio. The Borrower shall not permit the Borrower Leverage
Ratio to be greater than 3.50 to 1.00 at the end of the fiscal quarter ended on June 30, 2008, or
at the end of any fiscal quarter ended thereafter.

(b) Fixed Charge Coverage Ratio The Borrower shall not permit the Fixed Charge
Coverage Ratio to be less than 1.15 to 1.0 at the end of the fiscal quarter ended on June 30, 2008,
or at the end of any fiscal quarter ended thereafter.

(c) Maximum Capital Expenditures. The Borrower shall not permit the aggregate amount
of Capital Expenditures (excluding any Permitted Acquisition which is treated as a Capital
Expenditure under GAAP and any reinvestment of insurance Net Cash Proceeds) made by the Borrower
Entities in any fiscal year to exceed $150,000,000; provided, however, that if, for
any fiscal year, the amount specified in this Section 5.03(c) exceeds the aggregate amount
of Capital Expenditures made by the Borrower Entities during such fiscal year, the Borrower
Entities shall be entitled to make additional Capital Expenditures in the immediately succeeding
fiscal year in an amount (such amount being referred to herein as the “Capex Carryover”)
equal to such excess.

ARTICLE VI DEFAULT

SECTION 6.01. Events of Default. The occurrence or existence of any one or more of
the following shall constitute an “Event of Default”:

(a) Non-Payment. The Borrower shall (i) fail to pay when due any principal of any
Loan or any L/C Obligations or (ii) fail to pay within three days after the same becomes due, any
interest, fees or other amounts payable under the terms of this Agreement or any of the other
Credit Documents; or

(b) Specific Defaults.  Any Significant Party shall fail to observe or perform any
covenant, obligation, condition or agreement applicable to it set forth in Section 5.01(a)
(within three Business Days of when due), Section 5.01(g), Section 5.01(i) (within
three Business Days of when due), Section 5.02 (other than Section 5.02(p)(ii)) or
Section 5.03 and such failure shall continue beyond any grace period provided herein or
with respect thereto; or

(c) Other Defaults. Any default shall occur under any Guarantee Agreement or Security
Document and such default shall continue beyond any period of grace provided with respect thereto;
or any Loan Party shall fail to observe or perform any other covenant, obligation, condition or
agreement contained in this Agreement (other than Section 5.02(p)(ii)) or any other Credit
Document and such failure shall continue for 30 days after the earlier of the date an officer of
the Borrower or of CBII becomes aware of such failure or notice to the Borrower from the
Administrative Agent or the Required Lenders; or

(d) Representations and Warranties. Any representation or warranty made or furnished
by or on behalf of any Loan Party to the Administrative Agent or any Lender in or in connection
with this Agreement or any of the other Credit Documents, shall be false, incorrect, incomplete or
misleading in any material respect (unless any such representation or warranty is qualified as to
materiality, in which case such representation and warranty shall be false, incorrect, incomplete
or misleading in any respect) when made or furnished; or

(e) Cross-Default. (i) Any CBII Entity shall fail to make any payment on account of
any Indebtedness or Contingent Obligation of such Person (other than the Secured Obligations) when
due (whether at scheduled maturity, by required prepayment, upon acceleration or otherwise) and
such failure shall continue beyond any period of grace provided with respect thereto (and in the
case of reimbursement obligations with respect to Guarantees provided by financial institutions to
Guarantee the payment of Governmental Charges or other regulatory obligations in the normal course
of business, such failure continues for more than 30 days without the applicable CBII Entity
replacing such Guarantee or paying in full the obligations respecting such Guarantee), in all such
cases only if the amount of such Indebtedness or Contingent Obligation exceeds $30,000,000 or the
effect of such failure is to cause, or permit the holder or holders thereof to cause, Indebtedness
and/or Contingent Obligations of any CBII Entity (other than the Secured Obligations) in an
aggregate amount exceeding $30,000,000 to become redeemable, due, liquidated or otherwise payable
(whether at scheduled maturity, by required prepayment, upon acceleration or otherwise) and/or to
be secured by cash collateral and such Indebtedness or Contingent Obligation has not been paid in
full or such default has not been cured, (ii) any CBII Entity shall otherwise fail to observe or
perform any agreement, term or condition contained in any agreement or instrument relating to any
Indebtedness or Contingent Obligation of such Person (other than the Secured Obligations), or any
other event shall occur or condition shall exist, if the effect of such failure, event or condition
is to cause, or permit the holder or holders thereof to cause, Indebtedness and/or Contingent
Obligations of any CBII Entity (other than the Secured Obligations) in an aggregate amount
exceeding $30,000,000 to become redeemable, due, liquidated or otherwise payable (whether at
scheduled maturity, by required prepayment, upon acceleration, or otherwise) and/or to be secured
by cash collateral and such Indebtedness or Contingent Obligation has not been paid in full or such
default has not been cured or (iii) as a result of the failure of any CBII Entity to observe or
perform any agreement, term or condition therein, any Lender Rate Contract in an aggregate notional
amount, if any, exceeding $30,000,000 shall have become due, liquidated, or otherwise payable and
the Lender Rate Contract Obligations thereunder remain unpaid; or

(f) Insolvency; Voluntary Proceedings. Any Significant Party shall (i) apply for or
consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a
substantial part of its property, (ii) be unable, or admit in writing its inability, to pay its
debts generally as they mature, (iii) make a general assignment for the benefit of its or any of
its creditors, (iv) be dissolved or liquidated in full or in part (except as expressly permitted by
this Agreement), (v) become insolvent as such term may be defined or interpreted under any Debtor
Relief Law or (vi) commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency
or other similar law now or hereafter in effect or consent to any such relief or to the appointment
of or taking possession of its property by any official in an involuntary case or other proceeding
commenced against it; or

(g) Involuntary Proceedings. Proceedings for the appointment of a receiver, trustee,
liquidator or custodian of any Significant Party or of all or a substantial part of the property
thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other
relief with respect to any Significant Party or the debts thereof under any Debtor Relief Law shall
be commenced and an order for relief entered or such proceeding shall not be dismissed or
discharged within 60 calendar days of commencement; or

(h) Judgments. (i) One or more judgments, orders, decrees or arbitration awards
requiring any Significant Party to pay an aggregate amount of $30,000,000 or more (exclusive of
amounts covered by insurance issued by an insurer not an Affiliate of the Borrower and otherwise
satisfying the requirements set forth in Section 5.01(d)) shall be rendered against any
Significant Party in connection with any single or related series of transactions, incidents or
circumstances and the same shall not be satisfied, vacated or stayed for a period of 30 consecutive
days or (ii) any other judgments, orders, decrees, arbitration awards, writs, assessments, warrants
of attachment, tax liens or executions or similar processes which, alone or in the aggregate, could
reasonably be expected to have a Material Adverse Effect are rendered, issued or levied; or

(i) Credit Documents. Any Credit Document or any material term thereof shall cease to
be, or be asserted by any Significant Party not to be, a legal, valid and binding obligation of any
Significant Party, enforceable in accordance with its terms except as limited by Debtor Relief Laws
relating to or affecting the enforcement of creditors’ rights generally and general principles of
equity; or

(j) Security Documents. Any Lien against the Collateral intended to be created by any
Security Document shall at any time be invalidated, subordinated or otherwise cease to be in full
force and effect, for whatever reason, or any security interest purported to be created by any
Security Document shall cease to be, or shall be asserted by any Significant Party not to be, a
valid, first priority perfected Lien (to the extent that this Agreement obligates the Loan Parties
to provide such a perfected first priority Lien, and except to the extent Permitted Liens are
expressly permitted herein to have priority) in the Collateral; or

(k) Employee Benefit Plans. Any ERISA Event which the Administrative Agent reasonably
believes in good faith constitutes grounds for the termination of any Pension Plan by the PBGC or
for the appointment of a trustee by the PBGC to administer any Pension Plan shall occur and be
continuing for a period of 30 days or more after notice thereof is provided or required to be
provided to the Borrower by the Administrative Agent, or any Pension Plan shall be terminated
within the meaning of Title IV of ERISA or a trustee shall be appointed by the PBGC to administer
any Pension Plan; or

(l) Change of Control. Any Change of Control shall occur.

SECTION 6.02. Remedies. At any time after the occurrence and during the continuance
of any Event of Default (other than an Event of Default referred to in Section 6.01(f) or
6.01(g)), the Administrative Agent may or shall, upon instructions from the Required
Lenders, by written notice to the Borrower, (a) terminate the Commitments, any obligation of the
L/C Issuer to make L/C Credit Extensions and the obligations of the Lenders to make Loans;
(b) require that the Borrower Cash Collateralize the Obligations in respect of the outstanding
Letters of Credit in an amount equal to the then Effective Amount of the L/C Obligations; and/or
(c) declare all or a portion of the outstanding Obligations payable by the Borrower to be
immediately due and payable without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived, anything contained herein or in the Notes to the contrary
notwithstanding. Upon the occurrence and during the continuance of any Event of Default described
in Section 6.01(f) or 6.01(g), immediately and without notice, (a) the Commitments,
any obligation of the L/C Issuer to make L/C Credit Extensions and the obligations of the Lenders
to make Loans shall automatically terminate, (b) the obligation of the Borrower to Cash
Collateralize the Obligations in respect of the outstanding Letters of Credit in an amount equal to
the then Effective Amount of the L/C Obligations shall automatically become effective and (c) all
outstanding Obligations payable by the Borrower hereunder shall automatically become immediately
due and payable, without presentment, demand, protest or any other notice of any kind, all of which
are hereby expressly waived, anything contained herein or in any other Credit Document to the
contrary notwithstanding. In addition to the foregoing remedies, upon the occurrence and during
the continuance of any Event of Default, the Administrative Agent may exercise any other right,
power or remedy available to it under any of the Credit Documents or otherwise by law, either by
suit in equity or by action at law, or both.

SECTION 6.03. Application of Proceeds of Collateral after an Event of Default. Upon
the occurrence and during the continuation of an Event of Default, any amounts that may be on
deposit in any lockbox, restricted or other accounts and any replacement or successor accounts
relating thereto and the Proceeds and avails of the Collateral at any time received by the
Administrative Agent or the Collateral Agent shall, when received by the Administrative Agent or
the Collateral Agent in cash or its equivalent, be applied to the Secured Obligations as follows:

first, to the payment of all of the fees, indemnification payments, costs and expenses that
are due and payable to the Administrative Agent and the Collateral Agent (solely in their
respective capacities as the Administrative Agent and the Collateral Agent) under or in respect of
this Agreement and the other Credit Documents in respect of the Secured Obligations on such date,
ratably based upon the respective aggregate amounts of all such fees, indemnification payments,
costs and expenses owing to the Administrative Agent and the Collateral Agent on such date;

second, to the payment of all of the fees, indemnification payments, costs and expenses that
are due and payable to the L/C Issuer and the Swing Line Lender (solely in their respective
capacities as such) under or in respect of this Agreement and the other Credit Documents in respect
of the Secured Obligations on such date, ratably based upon the respective aggregate amounts of all
such fees, indemnification payments, costs and expenses owing to the L/C Issuer and the Swing Line
Lender on such date;

third, to the payment of all of the indemnification payments, costs and expenses that are due
and payable to the Secured Parties under Sections 8.03 and 8.04 of this Agreement, Section 12.01 of
the Security Agreement executed as of the Effective Date and any similar section of any of the
other Credit Documents in respect of the Secured Obligations and to the payment of all of the
indemnification payments, costs, and expenses that are due and payable to the Secured Parties under
any Lender Rate Contracts on such date, ratably based upon the respective aggregate amounts of all
such indemnification payments, costs and expenses owing to the Secured Parties on such date;

fourth, to the payment of all of the amounts that are due and payable to the Administrative
Agent and the Secured Parties under Sections 2.11, 2.12 and 2.13 of this Agreement on such date,
ratably based upon the respective aggregate amounts thereof owing to the Administrative Agent and
the other Secured Parties on such date;

fifth, to the payment of all of the interest and fees that are due and payable to the Secured
Parties on such date, ratably based upon the respective aggregate amounts of all such interest and
fees owing to the Secured Parties on such date;

sixth, to the payment of the principal amount of all of the outstanding Loans (including the
principal amount of any L/C Borrowings) that is due and payable to the Administrative Agent and the
other Secured Parties in respect of the Secured Obligations, to the payment of the Termination
Value of any Lender Rate Contracts on such date and to Cash Collateralize the Obligations in
respect of the outstanding Letters of Credit in an amount equal to the then Effective Amount of the
L/C Obligations, ratably based upon the respective aggregate amounts of all such principal and
other amounts owing to the Administrative Agent and the other Secured Parties on such date; and

seventh, to the payment of all other Secured Obligations owed to the Secured Parties under or
in respect of the Credit Documents in respect of the Secured Obligations that are due and payable
to the Secured Parties on such date, ratably based upon the respective aggregate amounts of all
such Secured Obligations owing to the Secured Parties on such date.

The Loan Parties shall remain liable to the Administrative Agent and the Collateral Agent and
the Secured Parties for any deficiency.

ARTICLE VII THE ADMINISTRATIVE AGENT AND RELATIONS AMONG THE LENDERS

SECTION 7.01. Appointment, Powers and Immunities.

(a) Each Lender hereby appoints and authorizes the Administrative Agent to act as its agent
hereunder and under the other Credit Documents with such powers as are expressly delegated to the
Administrative Agent by the terms of this Agreement and the other Credit Documents, together with
such other powers as are reasonably incidental thereto. Each Lender hereby authorizes the
Administrative Agent to take such action on its behalf under the provisions of this Agreement and
the other Credit Documents and to exercise such powers as are set forth herein or therein, together
with such other powers as are reasonably incidental thereto. Any reference to the Lead Arranger,
the Co-Documentation Agents, the Co-Managing Agents or the Syndication Agent in any of the Credit
Documents shall be solely for titular purposes and Rabobank, as the Lead Arranger, Wells Fargo, as
the Syndication Agent, ING Capital LLC, as a Co-Documentation Agent, Barclays Bank PLC, as a
Co-Documentation Agent, Royal Bank of Canada, as a Co-Managing Agent, and The PrivateBank and Trust
Company, as a Co-Managing Agent, shall not have any duties, responsibilities or obligations or any
liabilities under this Agreement or any other Credit Documents and any amendments, consents,
waivers or any other actions taken in connection with this Agreement or the other Credit Documents
shall not require the consent of the Lead Arranger, the Syndication Agent, the Co-Documentation
Agents or the Co-Managing Agents in such respective capacities. The Administrative Agent shall not
(i) have any duties or responsibilities except those expressly set forth in this Agreement or in
any other Credit Document, (ii) be a trustee for any Lender or (iii) have any fiduciary duty to any
Lender. Notwithstanding anything to the contrary contained herein, the Administrative Agent shall
not be required to take any action which is contrary to this Agreement or any other Credit Document
or any applicable Governmental Rule. Neither the Administrative Agent nor any Lender shall be
responsible to any other Lender for any recitals, statements, representations or warranties made by
any CBII Entity contained in this Agreement or in any other Credit Document, for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Credit Document or for any failure by any Loan Party to perform its obligations hereunder or
thereunder. The Administrative Agent may employ agents and attorneys-in-fact and shall not be
responsible to any Lender for the negligence or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. Neither the Administrative Agent nor any of its directors,
officers, employees, agents or advisors shall be responsible to any Lender for any action taken or
omitted to be taken by it or them hereunder or under any other Credit Document or in connection
herewith or therewith, except for its or their own gross negligence or willful misconduct, as
determined by a final non-appealable judgment of a court of competent jurisdiction. Except as
otherwise provided under this Agreement, the Administrative Agent shall take such action with
respect to the Credit Documents as shall be directed by the Required Lenders. Each of the Secured
Parties hereby appoints the administrative agent for the Lenders (or any successor appointed in
accordance with Section 7.06) to act as its agent (in such capacity, the “Collateral
Agent”) with respect to all matters relating to the Security Documents and Rabobank, as
administrative agent for the Lenders as of the Effective Date, hereby accepts such appointment.

(b) The L/C Issuer shall act on behalf of the Revolving Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith until such time (and except for so long)
as the Administrative Agent may agree at the request of the Required Revolving Lenders to act for
the L/C Issuer with respect thereto; provided, however, that the L/C Issuer shall
have all of the benefits and immunities (i) provided to the Administrative Agent in this
Article VII with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by them or proposed to be issued by them and the
application and agreements for letters of credit pertaining to the Letters of Credit as fully as if
the term “Administrative Agent” as used in this Article VII included the L/C Issuer with
respect to such acts or omissions and (ii) as additionally provided herein with respect to the L/C
Issuer.

(c) The Administrative Agent shall be released from the restrictions of Section 181 of the
German Civil Code (Bürgerliches Gesetzbuch, BGB).

SECTION 7.02. Reliance by the Administrative Agent. The Administrative Agent, the L/C
Issuer and the Swing Line Lender shall be entitled to rely upon any certificate, notice or other
document (including any cable, telegram, facsimile or telex) believed by it in good faith to be
genuine and correct and to have been signed or sent by or on behalf of the proper Person or
Persons, and upon advice and statements of legal counsel, independent accountants and other experts
selected by the Administrative Agent with reasonable care. As to any other matters not expressly
provided for by this Agreement, the Administrative Agent shall not be required to take any action
or exercise any discretion, but shall be required to act or to refrain from acting, upon
instructions of the Required Lenders (or such other requisite Lenders as may be required by
Section 8.04) and shall in all cases be fully protected by the Lenders in acting, or in
refraining from acting, hereunder or under any other Credit Document in accordance with the
instructions of the Required Lenders (or such other requisite Lenders as may be required by
Section 8.04), and such instructions of the Required Lenders (or such other requisite
Lenders as may be required by Section 8.04) and any action taken or failure to act pursuant
thereto shall be binding on all of the Lenders.

SECTION 7.03. Defaults. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default unless the Administrative Agent has received a
written notice from a Lender or the Borrower, referring to this Agreement, describing such Default
and stating that such notice is a “Notice of Default”. If the Administrative Agent receives such a
notice of the occurrence of a Default, the Administrative Agent shall give prompt notice thereof to
the Lenders. The Administrative Agent shall take such action with respect to such Default as shall
be reasonably directed by the Required Lenders; provided, however, that until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with respect to such
Default as it shall deem advisable in the best interest of the Lenders. Notwithstanding anything
in the contrary contained herein, the order and manner in which the Lenders’ rights and remedies
are to be exercised (including the enforcement by any Lender of its Note) shall be determined by
the Required Lenders in their sole discretion.

SECTION 7.04. Indemnification.

(a) Without limiting the obligations of the Borrower hereunder, and to the extent not
reimbursed by the Borrower, each Lender severally agrees to indemnify the Administrative Agent, in
accordance with each Lender’s ratable share (determined as provided below), for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may at any time be imposed on, incurred by or
asserted against the Administrative Agent in any way relating to or arising out of this Agreement
or any documents contemplated by or referred to herein or therein or the transactions contemplated
hereby or thereby or the enforcement of any of the terms hereof or thereof; provided,
however, that no Lender shall be liable for any of the foregoing to the extent they arise
from the Administrative Agent’s gross negligence or willful misconduct, as determined by a final
non-appealable judgment of a court of competent jurisdiction. The Administrative Agent shall be
fully justified in refusing to take or in continuing to take any action hereunder unless it shall
first be indemnified to its 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. For
purposes of this Section 7.04(a), each Lender’s ratable share of any amount shall be
determined, at any time, according to the sum of (i) the aggregate principal amount of the Term
Loans outstanding at such time and owing to such Lender and (ii) such Lender’s Revolving
Proportionate Share.

(b) Without limiting the obligations of the Borrower hereunder, and to the extent not
reimbursed by the Borrower, each Revolving Lender severally agrees to indemnify the L/C Issuer,
ratably in accordance with its Revolving Proportionate Share, for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may at any time be imposed on, incurred by or
asserted against the L/C Issuer in any way relating to or arising out of this Agreement or any
documents contemplated by or referred to herein or therein or the transactions contemplated hereby
or thereby or the enforcement of any of the terms hereof or thereof; provided,
however, that no Revolving Lender shall be liable for any of the foregoing to the extent
they arise from an L/C Issuer’s gross negligence or willful misconduct, as determined by a final
non-appealable judgment of a court of competent jurisdiction. The L/C Issuer shall be fully
justified in refusing to take or in continuing to take any action hereunder unless it shall first
be indemnified to its satisfaction by the Revolving 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.

(c) The obligations of each Lender under this Section 7.04 shall survive the payment
and performance of the Secured Obligations, the termination of this Agreement and any Lender
ceasing to be a party to this Agreement (with respect to events which occurred prior to the time
such Lender ceased to be a Lender hereunder).

SECTION 7.05. Non-Reliance. Each Lender represents that it has, independently and
without reliance on the Administrative Agent, or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of the business, prospects,
management, financial condition and affairs of the CBII Entities and its own decision to enter into
this Agreement and agrees that it will, independently and without reliance upon the Administrative
Agent or any other Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own appraisals and decisions in taking or not taking action under
this Agreement. Neither the Administrative Agent nor any of its Affiliates nor any of their
respective directors, officers, employees, agents or advisors, in whatever capacity, shall (a) be
required to keep any Lender informed as to the performance or observance by any Loan Party of the
obligations under this Agreement or any other document referred to or provided for herein or to
make inquiry of, or to inspect the properties or books of any CBII Entity; (b) have any duty or
responsibility to provide any Lender with any credit or other information concerning any CBII
Entities which may come into the possession of the Administrative Agent (whether communicated to or
obtained by the Administrative Agent), except for notices, reports and other documents and
information delivered to the Administrative Agent pursuant to Section 5.01(a) or expressly
required to be furnished to the Lenders by the Administrative Agent hereunder; (c) be responsible
to any Lender for (i) any recital, statement, representation or warranty made by any CBII Entity or
any officer, employee or agent of any CBII Entity in this Agreement or in any of the other Credit
Documents, (ii) the value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any Credit Document, (iii) the value or sufficiency of the Collateral or the
validity or perfection of any of the liens or security interests intended to be created by the
Credit Documents or (iv) any failure by any Loan Party to perform its obligations under this
Agreement or any other Credit Document or (d) be liable for any circumstance, action, or failure to
act in the nature described in clauses (a) through (c) above.

SECTION 7.06. Resignation of the Administrative Agent.

(a) The Administrative Agent may resign as to any or all of the Facilities at any time by
giving 30 days prior written notice thereof to the Borrower and the Lenders, and the Administrative
Agent may be removed as to all of the Facilities at any time with or without cause by the Required
Lenders. Upon any such resignation or removal, the Required Lenders shall have the right to
appoint a successor Administrative Agent as to such of the Facilities as to which the
Administrative Agent has resigned or been removed, which successor Administrative Agent, if not a
Lender, shall be reasonably acceptable to the Borrower; provided, however, that the
Borrower shall have no right to approve a successor Administrative Agent if a Default has occurred
and is continuing. Upon the acceptance of any appointment as the Administrative Agent hereunder by
a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from the duties and obligations
thereafter arising hereunder. After any retiring Administrative Agent’s resignation or removal
hereunder as the Administrative Agent, the provisions of this Article VII shall continue in effect
for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as
the Administrative Agent. Notwithstanding the foregoing, however, Rabobank may not be removed as
Administrative Agent at the request of the Required Lenders unless Rabobank shall also
simultaneously be replaced and fully released as “L/C Issuer” and “Swing Line Lender” hereunder
pursuant to documentation in form and substance reasonably satisfactory to Rabobank.

(b) Any resignation by the Administrative Agent pursuant to this Section 7.06 shall
also constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (i) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the L/C Issuer and Swing
Line Lender, (ii) the retiring L/C Issuer and Swing Line Lender shall be discharged from all of
their respective duties and obligations hereunder or under the other Credit Documents and (iii) the
successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or make other arrangement satisfactory to the
retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect
to such Letters of Credit.

SECTION 7.07. Collateral Matters. 

(a) The Administrative Agent is hereby authorized by each Secured Party, without the necessity
of any notice to or further consent from any Secured Party, and without the obligation to take any
such action, to take any action with respect to any Collateral or any Security Document which may
from time to time be necessary to perfect and maintain perfected the Liens of the Security
Documents.

(b) The Secured Parties irrevocably authorize the Administrative Agent, at its option and in
its discretion, to release (and to execute and deliver such documents, instruments and agreements
as the Administrative Agent may deem necessary to release) any Lien granted to or held by the
Administrative Agent upon any Collateral and any guarantee of the Secured Obligations (i) upon
termination of the Revolving Loan Commitments and the Term Loan Commitments and the full Cash
Collateralization in an amount equal to the then outstanding L/C Obligations and the payment in
full of all Secured Obligations, including all other non-contingent Secured Obligations payable
under this Agreement and under the other Credit Documents and the Lender Rate Contract Obligations
(unless (i) arrangements have been made for the Lender Rate Contract Obligations under such Lender
Rate Contract to be secured by a secured credit facility refinancing the Facilities or (ii) the
provision of other replacement collateral equivalent in nature and value has been made (as
reasonably determined by the Borrower and the applicable Lender Rate Contract counterparty) to
support the Lender Rate Contract Obligations); (ii) constituting property of the Loan Parties which
is sold, transferred or otherwise disposed of in connection with any transaction not prohibited by
this Agreement or the Credit Documents; (iii) constituting property leased to the Significant
Parties under an operating lease which has expired or been terminated in a transaction not
prohibited by this Agreement or the other Credit Documents or which will concurrently expire and
which has not been and is not intended by the Significant Parties to be, renewed or extended;
(iv) consisting of an instrument, if the Indebtedness evidenced thereby has been paid in full; or
(v) if approved or consented to by those of the Secured Parties required by Section 8.04.
Upon request by the Administrative Agent, the other Secured Parties will confirm in writing the
Administrative Agent’s authority to release particular types or items of the Collateral pursuant to
this Section 7.07.

SECTION 7.08. The Administrative Agent in Its Individual Capacity. The Administrative
Agent and its Affiliates may make loans to, issue letters of credit for the account of, accept
deposits from and generally engage in any kind of banking or other business with the any CBII
Entity and its Affiliates as though the Administrative Agent were not the Administrative Agent, L/C
Issuer or Swing Line Lender hereunder. With respect to Loans, if any, made by the Administrative
Agent in its capacity as a Lender, the Administrative Agent in its capacity as a Lender shall have
the same rights and powers under this Agreement and the other Credit Documents as any other Lender
and may exercise the same as though it were not the Administrative Agent, L/C Issuer or Swing Line
Lender, and the terms “Lender” or “Lenders” shall include the Administrative Agent in its capacity
as a Lender.

SECTION 7.09. Appointment of Supplemental Collateral Agent.

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

(b) In the event that the Administrative Agent appoints a Supplemental Collateral Agent with
respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended
by this Agreement or any of the other Credit Documents to be exercised by or vested in or conveyed
to the Administrative Agent with respect to such Collateral shall be exercisable by and vest in
such Supplemental Collateral Agent to the extent, and only to the extent, necessary to enable such
Supplemental Collateral Agent to exercise such rights, powers and privileges with respect to such
Collateral and to perform such duties with respect to such Collateral, and every covenant and
obligation contained in the Credit Documents and necessary to the exercise or performance thereof
by such Supplemental Collateral Agent shall run to and be enforceable by either the Administrative
Agent or such Supplemental Collateral Agent, and (ii) the provisions of this Article VII
and of Section 8.04 that refer to the Administrative Agent shall inure to the benefit of
such Supplemental Collateral Agent and all references therein to the Administrative Agent shall be
deemed to be references to the Administrative Agent and/or such Supplemental Collateral Agent, as
the context may require.

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

	 	 	 
	ARTICLE VIII MISCELLANEOUS
	SECTION 8.01.

	 	Notices.
	
 
	 	 

(a) Notices Generally. Except as otherwise provided herein, including
Section 8.01(b), all notices, requests, demands, consents, instructions or other
communications to or upon CBII, the Borrower, any Lender or the Administrative Agent under this
Agreement or the other Credit Documents shall be in writing and faxed, mailed or delivered, if to
the Borrower or to the Administrative Agent, the L/C Issuer or the Swing Line Lender, at its
respective facsimile number, e-mail address (only in respect of any Notice of Borrowing, Notice of
Interest Period Selection and Notice of Conversion), or address set forth in Schedule IV,
if to any Lender, at the address or facsimile number specified for such Lender to the
Administrative Agent (or to such other facsimile number, e-mail address, or address for any party
as indicated in any notice given by that party to the Administrative Agent). All such notices and
communications shall be effective (i) when sent by an overnight courier service of recognized
standing, on the second Business Day following the deposit with such service; (ii) when mailed,
first class postage prepaid and addressed as aforesaid through the United States Postal Service,
upon receipt; (iii) when delivered by hand, upon delivery; and (iv) when sent by facsimile or
e-mail transmission, upon confirmation of receipt; provided, however, that any
notice delivered to the Administrative Agent, the L/C Issuer or the Swing Line Lender under
Article II shall not be effective until actually received by such Person. Additionally,
notwithstanding the obligation of the Borrower to send written confirmation of any Notice of
Borrowing, Notice of Interest Period Selection and Notice of Conversion made by e-mail transmission
if and when requested by the Administrative Agent, in the event that the Administrative Agent
agrees to accept a Notice of Borrowing, Notice of Interest Period Selection or Notice of Conversion
made by e-mail transmission, such e-mail transmission of Notice of Borrowing, Notice of Interest
Period Selection or Notice of Conversion shall be binding on the Borrower whether or not written
confirmation is sent by Borrower or requested by the Administrative Agent, and the Administrative
Agent may act prior to the receipt of any requested written confirmation, without any liability
whatsoever, based upon e-mail notice believed by the Administrative Agent in good faith to be from
the Borrower or its agents. The Administrative Agent’s records of the terms of any e-mail Notice of
Borrowing, Notice of Interest Period Selection or Notice of Conversion shall be conclusive on
Borrower in the absence of gross negligence or willful misconduct on the part of the Administrative
Agent in connection therewith, as determined by a final non-appealable judgment of a court of
competent jurisdiction.

(b) Notices of Borrowing, Conversion and Interest Period Selection. Each Notice of
Borrowing, Notice of Conversion and Notice of Interest Period Selection shall be given by the
Borrower to the Administrative Agent’s office located at the address referred to above during the
Administrative Agent’s normal business hours; provided, however, that any such
notice received by the Administrative Agent after 11:00 a.m. on any Business Day shall be deemed
received by the Administrative Agent on the next Business Day. In any case where this Agreement
authorizes notices, requests, demands or other communications by the Borrower to the Administrative
Agent or any Lender to be made by telephone or facsimile, the Administrative Agent or any Lender
may conclusively presume that anyone purporting to be a person designated in any incumbency
certificate or other similar document received by the Administrative Agent or a Lender is such a
person.

(c) IntraLinks.

(i) The Borrower agrees that the Administrative Agent may make any material delivered by the
Borrower to the Administrative Agent, as well as any amendments, waivers, consents, and other
written information, documents, instruments and other materials relating to any of the CBII
Entities, or any other materials or matters relating to this Agreement (excluding any Notice of
Borrowing, Notice of Conversion or Notice of Interest Period Selection), the Credit Documents, or
any of the transactions contemplated hereby or thereby (collectively, the “Communications”)
available to the Lenders by posting such notices on an electronic delivery system (which may be
provided by the Administrative Agent, an Affiliate, or any Person that is not an Affiliate of the
Administrative Agent), such as IntraLinks, or a substantially similar electronic system (the
“Platform”). The Borrower acknowledges that (A) the distribution of material through an
electronic medium is not necessarily secure and that there are confidentiality and other risks
associated with such distribution, (B) the Platform is provided “as is” and “as available” and
(C) neither the Administrative Agent nor any of its Affiliates warrants the accuracy, completeness,
timeliness, sufficiency, or sequencing of the Communications posted on the Platform. The
Administrative Agent and its Affiliates expressly disclaim with respect to the Platform any
liability for errors in transmission, incorrect or incomplete downloading, delays in posting or
delivery, or problems accessing the Communications posted on the Platform and any liability for any
losses, costs, expenses or liabilities that may be suffered or incurred in connection with the
Platform. No warranty of any kind, express, implied or statutory, including any warranty of
merchantability, fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by the Administrative Agent or any of its
Affiliates in connection with the Platform.

(ii) Each Lender agrees that notice to it (as provided in the next sentence)
(a “Notification”) specifying that any Communication has been posted to the Platform shall
for purposes of this Agreement constitute effective delivery to such Lender of such information,
documents or other materials comprising such Communication. Each Lender agrees (A) to notify, on
or before the date such Lender becomes a party to this Agreement, the Administrative Agent in
writing of such Lender’s e-mail address (or e-mail addresses) to which a Notification may be sent
(and from time to time thereafter to ensure that the Administrative Agent has on record an
effective e-mail address for such Lender) and (B) that any Notification may be sent to such e-mail
address.

SECTION 8.02. Expenses. The Borrower shall pay on demand, whether or not any Credit
Event occurs hereunder, (a) all costs, fees and expenses, including reasonable travel expenses and
reasonable attorneys’ fees and expenses, incurred by the Administrative Agent in connection with
the syndication of the facilities provided hereunder, the preparation, negotiation, execution and
delivery of, and the exercise of its duties under, this Agreement and the other Credit Documents,
and the preparation, negotiation, execution and delivery of amendments and waivers hereunder and
thereunder and (b) all costs, fees and expenses, including attorneys’ fees and expenses, incurred
by the Administrative Agent and the Lenders in the enforcement or attempted enforcement of any of
the Secured Obligations or in preserving any of the Administrative Agent’s or the Lenders’ rights
and remedies (including all such fees and expenses incurred in connection with any “workout” or
restructuring affecting the Credit Documents or the Secured Obligations or any bankruptcy or
similar proceeding, including any proceeding or action commenced by the Administrative Agent or any
Lender seeking relief from the automatic or similar stay in effect under any Debtor Relief Law,
involving any Significant Party). The obligations of the Borrower under this Section 8.02
shall survive the payment and performance of the Secured Obligations and the termination of this
Agreement.

SECTION 8.03. Indemnification. To the fullest extent permitted by law, the Borrower
agrees to protect, indemnify, defend and hold harmless the Administrative Agent, the L/C Issuer,
the Swing Line Lender, the Lenders and their Affiliates and their respective directors, officers,
employees, attorneys, agents, trustees and advisors (collectively, “Indemnitees”) from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, disbursements, or expenses of any kind or nature and from any suits, claims or
demands (including in respect of or for attorneys’ fees and other expenses) arising on account of
or in connection with any matter or thing or action or failure to act by Indemnitees, or any of
them, arising out of or relating to (a) the Credit Documents or any transaction contemplated
thereby or related thereto, including the making of any Loans and any use by the Borrower of any
proceeds of the Loans or the Letters of Credit, (b) any Environmental Damages and (c) any claims
for brokerage fees or commissions (other than any committed to be paid in writing by the
Administrative Agent or any Lender) in connection with the Credit Documents or any transaction
contemplated thereby or in connection with the Borrower’s failure to conclude any other financing,
and to reimburse each Indemnitee on demand for all legal and other expenses incurred in connection
with investigating or defending any of the foregoing; provided, however, that
nothing contained in this Section 8.03 shall obligate the Borrower to protect, indemnify,
defend or hold harmless any Indemnitee against any claim (i) to the extent arising out of the gross
negligence or willful misconduct of such Indemnitee, as determined by a final non-appealable
judgment of a court of competent jurisdiction or (ii) solely between or among Indemnitees. Upon
receiving knowledge of any suit, claim or demand asserted by a third party that the Administrative
Agent or any Lender believes is covered by this indemnity, the Administrative Agent or such Lender
shall give the Borrower notice of the matter and the Administrative Agent or such Lender may select
its own counsel or request that the Borrower defend such suit, claim or demand, with legal counsel
satisfactory to the Administrative Agent or such Lender as the case may be, at the Borrower’s sole
cost and expense; provided, however, that the Administrative Agent or such Lender
shall not be required to so notify the Borrower and the Administrative Agent or such Lender shall
have the right to defend, at the Borrower’s sole cost and expense, any such matter that is in
connection with a formal proceeding instituted by any Governmental Authority having authority to
regulate or oversee any aspect of the Administrative Agent’s or such Lender’s business or that of
its Affiliates; and provided, further, that if the Borrower accepts the defense, it
shall be authorized to select its own counsel, but the Borrower shall be required to coordinate
with and keep the Administrative Agent, the Lenders, and/or their counsel informed as to the
progress of the defense (but in such situation the Borrower shall only be obligated to pay the fees
and expenses of one separate counsel to the Administrative Agent and the Lenders for such matter
being defended). The Administrative Agent or such Lender may also require the Borrower to defend
the matter. Any failure or delay of the Administrative Agent or any Lender to notify the Borrower
of any such suit, claim or demand shall not relieve the Borrower of its obligations under this
Section 8.03. The obligations of the Borrower under this Section 8.03 shall
survive the payment and performance of the Secured Obligations and the termination of this
Agreement. In the case of an action, suit, judgment, claim or demand to which the indemnity in
this Section 8.03 applies, such indemnity shall be effective whether or not such action,
suit, judgment, claim or demand is brought by any Loan Party, its directors, shareholders or
creditors, any Indemnitee or any other Person, whether or not any Indemnified Party is otherwise a
party thereto and whether or not the Transaction is consummated.

SECTION 8.04. Waivers; Amendments. Any term, covenant, agreement or condition of this
Agreement or any other Credit Document may be amended or waived, and any consent under this
Agreement or any other Credit Document may be given, if such amendment, waiver or consent is in
writing and is signed by the Borrower and the Required Lenders (or the Administrative Agent on
behalf of the Required Lenders with the written approval of the Required Lenders);
provided, however, that:

(a) Any amendment, waiver or consent which would (i) amend this Section 8.04 or
Section 2.16 or any other Section of this Agreement providing for voting percentages or
(ii) amend any of the definitions of Required Lenders, Required Revolving Lenders or Required Term
Lenders must be in writing and signed or approved in writing by all Lenders affected thereby;

(b) Any amendment, waiver or consent which would (i) increase the Commitment of any Lender
(other than any increases pursuant to Section 2.16), (ii) extend the Maturity Date for any
Facility, (iii) extend any date fixed for any payment of the principal of or interest on any Loans
or any fees or other amounts payable for the account of any Lender hereunder, (iv) reduce the
principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing or any fees or
other amounts for the account of any Lender hereunder must be in writing and signed by each
affected Lender;

(c) Any amendment, waiver or consent which would change the pro rata treatment of Lenders
under Section 2.10(a), must be in writing and signed by each affected Lender and the
Required Lenders;

(d) Any amendment, waiver or consent which changes the order of application of proceeds of
Collateral set forth in Section 6.03 or which changes the order of application of any
reduction in the Commitments or any prepayment of Loans among the Facilities from the application
thereof set forth in the applicable provisions of Section 2.04 or 2.06,
respectively, in any manner that adversely affects the Lenders under a Facility must be in writing
and signed by the Required Lenders, and (i) to the extent the Lenders under the Revolving Loan
Facility are adversely affected, the Required Revolving Lenders and (ii) to the extent the Lenders
under the Term Loan Facility are adversely affected, the Required Term Lenders;

(e) Any amendment, waiver or consent which affects the rights or duties of the Swing Line
Lender under this Agreement must be in writing and signed by the Swing Line Lender;

(f) Any amendment, waiver or consent which affects the rights or duties of the L/C Issuer
under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or
to be issued by it must be in writing and signed by each affected L/C Issuer;

(g) Any consent relating to the sale or other disposition of any Key Assets must be in writing
and signed by the Lenders;

(h) Any amendment, waiver or consent which would, except as permitted pursuant to this
Agreement, (i) release one or more Guarantors (or otherwise limit such Guarantors’ liability with
respect to the Secured Obligations under the applicable Guarantee Agreements except as may be
required by the law of its applicable jurisdiction of organization) if such release or limitation
is in respect of all or substantially all of the value of the Parent Guarantee Agreement and the
Subsidiary Guarantee Agreements, or (ii) release all or substantially all of the Collateral in any
transaction or series of related transactions, must be in writing and signed by the Lenders;

(i) Any amendment, waiver or consent which would waive any of the conditions specified in
Section 3.02 must be in writing and signed by the Required Revolving Lenders; and

(j) Any amendment, waiver or consent which affects the rights or obligations of the
Administrative Agent must additionally be in writing and signed by the Administrative Agent.

No failure or delay by the Administrative Agent or any Lender in exercising any right under
this Agreement or any other Credit Document shall operate as a waiver thereof or of any other right
hereunder or thereunder nor shall any single or partial exercise of any such right preclude any
other further exercise thereof or of any other right hereunder or thereunder. Unless otherwise
specified in such waiver or consent, a waiver or consent given hereunder shall be effective only in
the specific instance and for the specific purpose for which given.

SECTION 8.05. Successors and Assigns.

(a) Binding Effect. This Agreement and the other Credit Documents shall be binding
upon and inure to the benefit of the Borrower, the Lenders, the Administrative Agent, the L/C
Issuer and their respective successors and permitted assigns, except that no Loan Party may assign
or transfer any of its rights or obligations under any Credit Document without the prior written
consent of the Administrative Agent and, to the extent required by Section 8.04, the
requisite Lenders. Any assignment or transfer in violation of the foregoing shall be null and
void.

(b) Participations. Any Lender may, without notice to or consent of the Borrower or
Administrative Agent, at any time sell to one or more banks or other financial institutions
(“Participants”) participating interests in all or a portion of any Loan owing to such
Lender, any Note held by such Lender, any Commitment of such Lender or any other interest of such
Lender under this Agreement and the other Credit Documents (including for purposes of this
Section 8.05(b), participations in L/C Obligations and in Swing Line Loans). In the event
of any such sale by a Lender of participating interests, such Lender’s obligations under this
Agreement shall remain unchanged, such Lender shall remain solely responsible for the performance
thereof, such Lender shall remain the holder of its Notes for all purposes under this Agreement and
the Borrower and the Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement
pursuant to which any such sale is effected may require the selling Lender to obtain the consent of
the Participant in order for such Lender to agree in writing to any amendment, waiver or consent of
a type specified in Section 8.04(b)(iii), 8.04(b)(iv), or 8.04(g) but shall
not otherwise require the selling Lender to obtain the consent of such Participant to any other
amendment, waiver or consent hereunder. The Borrower agrees that if amounts outstanding under this
Agreement and the other Credit Documents are not paid when due (whether upon acceleration or
otherwise), each Participant shall, to the fullest extent permitted by law, be deemed to have the
right of setoff in respect of its participating interest in amounts owing under this Agreement and
any other Credit Documents to the same extent as if the amount of its participating interest were
owing directly to it as a Lender under this Agreement or any other Credit Documents;
provided, however, that (i) no Participant shall exercise any rights under this
sentence without the consent of the Administrative Agent, (ii) no Participant shall have any rights
under this sentence which are greater than those of the selling Lender and (iii) such rights of
setoff shall be subject to the obligation of such Participant to share the payment so obtained with
all of the Lenders as provided in Section 2.10(b). The Borrower also agrees that any
Lender which has transferred any participating interest in its Commitment or Loans shall,
notwithstanding any such transfer, be entitled to the full benefits accorded such Lender under
Sections 2.11, 2.12 and 2.13, as if such Lender had not made such transfer.

(c) Assignments.

(i) Any Lender may, at any time, sell and assign to any Lender or any Eligible Assignee
(individually, an “Assignee Lender”) all or a portion of its rights and obligations under
this Agreement and the other Credit Documents (including for purposes of this Section
8.05(c), participations in L/C Obligations and in Swing Line Loans) (such a sale and assignment
to be referred to herein as an “Assignment”) pursuant to an assignment agreement in
substantially the form of Exhibit H (an “Assignment Agreement”), executed by each
Assignee Lender and such assignor Lender (an “Assignor Lender”) and delivered to the
Administrative Agent for its acceptance and recording in the Register; provided,
however, that:

(A) [Intentionally Omitted];

(B) Without the written consent of the Administrative Agent (which consent shall not be
unreasonably withheld) and, if no Event of Default has occurred and is continuing, the Borrower
(which consent shall not be unreasonably withheld or delayed), no Lender may make any Assignment to
any Assignee Lender which is not, immediately prior to such Assignment, a Lender hereunder, an
Affiliate thereof or an Approved Fund thereof;

(C) Without the written consent of the Administrative Agent and, if no Event of Default has
occurred and is continuing, the Borrower (which consent of the Borrower shall not be unreasonably
withheld or delayed), no Lender may make any Assignment to any Assignee Lender if, after giving
effect to such Assignment, the Commitments or Loans of such Lender or such Assignee Lender would be
less than $1,000,000 (except that (A) a Lender may make an Assignment which reduces its Commitment
or Loans to zero without the written consent of the Borrower and the Administrative Agent except to
the extent such written consent is required by clause (B) above or clause (D) below
and (B) an Assignor Lender may make an Assignment to an Assignee Lender whereby after giving effect
to such Assignment, the Commitment or Loans of such Lender or such Assignee Lender would be less
than $1,000,000 without the written consent of the Borrower and the Administrative Agent if the
Assignee Lender is an Approved Fund of the Assignor Lender); and

(D) Without the written consent of the Administrative Agent and, if no Event of Default has
occurred and is continuing, the Borrower (which consent of the Borrower shall not be unreasonably
withheld or delayed), no Revolving Lender may make any Assignment which does not assign and
delegate an equal pro rata interest in such Revolving Lender’s Revolving Loans, Revolving Loan
Commitment and all other rights, duties and obligations of such Revolving Lender under this
Agreement and the other Credit Documents.

(ii) Notwithstanding the foregoing, (a) the Borrower’s consent in respect of any Assignment
shall not be required until the syndication of the Facilities shall have been completed as
separately agreed by and between the Lead Arranger and the Borrower; and (b) any Lender may,
without diminishing or relieving it of its obligations hereunder, assign to a Conduit Lender its
right to make Loans under this Agreement and such Conduit Lender in turn may assign any or all of
the Loans it may have funded hereunder to its designating Lender without the consent of the
Borrower or the Administrative Agent and without regard to the limitations set forth in
Sections 8.05(c)(i)(A) through 8.05(c)(i)(D). Each of the Borrower, each Lender
and the Administrative Agent hereby confirms that it will not institute against a Conduit Lender or
join any other Person in instituting against a Conduit Lender any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding under any state bankruptcy, Debtor Relief Law or
similar law, for one year and one day after the payment in full of the latest maturing commercial
paper note issued by such Conduit Lender; provided, however, that each Lender
designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each other party
hereto for any loss, cost, damage, expense, obligations, penalties, actions, judgments, or suits of
any kind whatsoever arising out of its inability to institute such a proceeding against such
Conduit Lender during such period of forbearance.

(iii) Upon such execution, delivery, acceptance and recording of each Assignment Agreement and
payment of the fee referred to in Section 8.05(e), from and after the Assignment Effective
Date determined pursuant to such Assignment Agreement, (A) each Assignee Lender thereunder shall be
a Lender hereunder with a Commitment and Loans as set forth in such Assignment Agreement (in
addition to any Commitment and Loans theretofore held by it) and shall have the rights, duties and
obligations of such a Lender under this Agreement and the other Credit Documents and (B) the
Assignor Lender thereunder shall be a Lender to the extent of any remaining Commitment or Loans
held by such Lender after giving effect to such Assignment Agreement or, if the Commitment and
Loans of the Assignor Lender have been reduced to $0, the Assignor Lender shall cease to be a
Lender and to have any obligation to make any Loan; provided, however, that any
such Assignor Lender which ceases to be a Lender shall continue to be entitled to the benefits of
any provision of this Agreement which by its terms survives the termination of this Agreement.
Each Assignment Agreement shall be deemed to amend the Register to the extent, and only to the
extent, necessary to reflect the addition of each Assignee Lender, the deletion of each Assignor
Lender which reduced its Commitment and Loans to $0 and the resulting adjustment of Commitment and
Loans arising from the purchase by each Assignee Lender of all or a portion of the rights and
obligations of an Assignor Lender under this Agreement and the other Credit Documents. On or prior
to the Assignment Effective Date determined pursuant to each Assignment Agreement, the Borrower, at
its own expense, shall execute and deliver to the Administrative Agent, in exchange for a
surrendered Note, if any, of the Assignor Lender thereunder, a new Note to the order of each
Assignee Lender thereunder that requests such a note (with each new Note to be in an amount equal
to the Commitment or Loans assumed by such Assignee Lender) and, if the Assignor Lender is
continuing as a Lender hereunder, a new Note to the order of the Assignor Lender if so requested by
such Assignor Lender (with the new Note to be in an amount equal to the Commitment or Loans
retained by it). Each such new Note shall be dated the Effective Date (but with a notation of the
date through which interest is paid), and each such new Note shall otherwise be in the form of the
Note replaced thereby. The Notes surrendered by the Assignor Lender shall be returned by the
Administrative Agent to the Borrower marked “Replaced”. Each Assignee Lender which was not
previously a Lender hereunder and which is not incorporated under the laws of the US or a state
thereof shall, within three Business Days of becoming a Lender, deliver to the Borrower and the
Administrative Agent two duly completed copies of US Internal Revenue Service Form W-8IMY, W-8BEN
or W-8ECI (or successor applicable form), as the case may be.

(d) Register. The Administrative Agent shall maintain at its address referred to on
Schedule IV a copy of each Assignment Agreement delivered to it and a register (the
“Register”) for the recordation of the names and addresses of the Lenders and the
Commitment or Loans of each Lender from time to time. The entries in the Register shall be
conclusive in the absence of manifest error, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register as the owner of the Loans
recorded therein for all purposes of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

(e) Registration. Upon its receipt of an Assignment Agreement executed by an Assignor
Lender and an Assignee Lender (and, to the extent required by Section 8.05(c), by the
Borrower and the Administrative Agent) together with payment to the Administrative Agent by
Assignor Lender of a registration and processing fee of $3,500 (it being understood that, subject
to the immediately following sentence, such registration and processing fee shall be due and
payable for each Assignment from an Assignor Lender to an Assignee Lender), the Administrative
Agent shall (i) promptly accept such Assignment Agreement and (ii) on the Assignment Effective Date
determined pursuant thereto record the information contained therein in the Register and give
notice of such acceptance and recordation to the Lenders and the Borrower. Notwithstanding the
foregoing, the registration and processing fee set forth in the immediately preceding sentence
shall not be due and payable if the Assignee Lender party to an Assignment Agreement is an Approved
Fund of the Assignor Lender party thereto.

(f) Disclosure to Potential Participant or Assignee Lender. The Administrative Agent
and the Lenders may disclose the Credit Documents and any financial or other information relating
to any CBII Entity to each other or to any potential Participant or Assignee Lender, subject to an
agreement that the potential Participant or Assignee Lender shall keep such information
confidential in accordance with their usual and customary business practices.

(g) Pledges to Federal Reserve Banks and Trustee.

(i) Notwithstanding any other provision of this Agreement, any Lender may at any time assign
all or a portion of its rights under this Agreement and the other Credit Documents to a Federal
Reserve Bank or a bank in the farm credit banking system. No such assignment shall relieve the
assigning Lender from its obligations under this Agreement and the other Credit Documents.

(ii) Notwithstanding anything to the contrary contained herein, any Lender that is a Fund may
create a security interest in all or any portion of the Loans owing to it and any Note or Notes
held by it to the trustee for holders of obligations owed, or securities issued, by such Fund as
security for such obligations or securities; provided that, unless and until such trustee
actually becomes a Lender in compliance with the other provisions of this Section 8.05, (A)
no such pledge shall release the pledging Lender from any of its obligations under the Credit
Documents and (B) such trustee shall not be entitled to exercise any of the rights of a Lender
under the Credit Documents even though such trustee may have acquired ownership rights with respect
to the pledged interest through foreclosure or otherwise.

SECTION 8.06. Setoffs by Lenders. In addition to any rights and remedies of the
Lenders provided by law, each Lender shall have the right, with the prior consent of the
Administrative Agent but without prior notice to or consent of the Borrower, any such notice and
consent being expressly waived by the Borrower to the extent permitted by applicable laws upon the
occurrence and during the continuance of an Event of Default, to set-off and apply against the
Secured Obligations any amount owing from such Lender to the Borrower. The aforesaid right of
set-off may be exercised by such Lender against the Borrower or against any trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, receiver or execution, judgment or
attachment creditor of the Borrower or against anyone else claiming through or against the Borrower
or such trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor, notwithstanding the fact that such right
of set-off may not have been exercised by such Lender at any prior time. Each Lender agrees
promptly to notify the Borrower after any such set-off and application made by such Lender;
provided that the failure to give such notice shall not affect the validity of such set-off
and application.

SECTION 8.07. No Third Party Rights. Nothing expressed in or to be implied from this
Agreement is intended to give, or shall be construed to give, any Person, other than the parties
hereto and their permitted successors and assigns hereunder, any benefit or legal or equitable
right, remedy or claim under or by virtue of this Agreement or under or by virtue of any provision
herein.

SECTION 8.08. Partial Invalidity. If at any time any provision of this Agreement is
or becomes illegal, invalid or unenforceable in any respect under the law or any jurisdiction,
neither the legality, validity or enforceability of the remaining provisions of this Agreement nor
the legality, validity or enforceability of such provision under the law of any other jurisdiction
shall in any way be affected or impaired thereby.

SECTION 8.09. Jury Trial. EACH OF THE BORROWER, THE LEAD ARRANGER, THE SWING LINE
LENDER, THE L/C ISSUER, THE LENDERS AND THE ADMINISTRATIVE AGENT, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING
HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OTHER CREDIT DOCUMENT.

SECTION 8.10. Counterparts. This Agreement may be executed in any number of
counterparts, any set of which signed by all the parties hereto shall be deemed to constitute a
complete, executed original for all purposes. Transmission by facsimile or other electronic
transmission of an executed counterpart of this Agreement shall be deemed to constitute due and
sufficient delivery of such counterpart.

SECTION 8.11. Consent to Jurisdiction. The Borrower irrevocably submits to the
non-exclusive jurisdiction of the courts of the State of New York, New York County and the courts
of the US located in the Southern District of New York and agrees that any legal action, suit or
proceeding arising out of or relating to this Agreement or any of the other Credit Documents may be
brought against such party in any such courts. Final judgment against the Borrower in any such
action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction by
suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the
judgment, or in any other manner provided by law. Nothing in this Section 8.11 shall
affect the right of the Administrative Agent or any Lender to commence legal proceedings or
otherwise sue the Borrower in any other appropriate jurisdiction, or concurrently in more than one
jurisdiction, or to serve process, pleadings and other papers upon the Borrower in any manner
authorized by the laws of any such jurisdiction. The Borrower agrees that process served either
personally or by registered mail shall, to the extent permitted by law, constitute adequate service
of process in any such suit. The Borrower irrevocably waives to the fullest extent permitted by
applicable law (a) any objection which it may have now or in the future to the laying of the venue
of any such action, suit or proceeding in any court referred to in the first sentence above; (b)
any claim that any such action, suit or proceeding has been brought in an inconvenient forum; (c)
its right of removal of any matter commenced by any other party in the courts of the State of New
York to any court of the US; (d) any immunity which it or its assets may have in respect of its
obligations under this Agreement or any other Credit Document from any suit, execution, attachment
(whether provisional or final, in aid of execution, before judgment or otherwise) or other legal
process; and (e) any right it may have to require the moving party in any suit, action or
proceeding brought in any of the courts referred to above arising out of or in connection with this
Agreement or any other Credit Document to post security for the costs of the Borrower or to post a
bond or to take similar action.

SECTION 8.12. Relationship of Parties. The relationship between the Borrower, on the
one hand, and the Lenders and the Administrative Agent, on the other, is, and at all times shall
remain, solely that of a borrower and lenders. Neither the Lenders nor the Administrative Agent
shall under any circumstances be construed to be partners or joint venturers of the Borrower or any
of its Affiliates; nor shall the Lenders nor the Administrative Agent under any circumstances be
deemed to be in a relationship of confidence or trust or a fiduciary relationship with the Borrower
or any of its Affiliates, or to owe any fiduciary duty to the Borrower or any of its Affiliates.
The Lenders and the Administrative Agent do not undertake or assume any responsibility or duty to
the Borrower or any of its Affiliates to select, review, inspect, supervise, pass judgment upon or
otherwise inform the Borrower or any of its Affiliates of any matter in connection with its or
their Property, any security held by the Administrative Agent or any Lender or the operations of
the Borrower or any of its Affiliates. The Borrower and each of their Affiliates shall rely
entirely on their own judgment with respect to such matters, and any review, inspection,
supervision, exercise of judgment or supply of information undertaken or assumed by any Lender or
the Administrative Agent in connection with such matters is solely for the protection of the
Lenders and the Administrative Agent and neither the Borrower nor any of its Affiliates is entitled
to rely thereon.

SECTION 8.13. Time. Time is of the essence as to each term or provision of this
Agreement and each of the other Credit Documents.

SECTION 8.14. Waiver of Punitive Damages. Notwithstanding anything to the contrary
contained in this Agreement, the Borrower hereby agrees that it shall not seek from the Lenders or
the Administrative Agent punitive, consequential, or indirect damages relating to any such matters
under any theory of liability.

SECTION 8.15. Participations. All participations in the Secured Obligations or any
portion thereof, whether pursuant to provisions hereof or otherwise, are intended to be “true
sales” for purposes of financial reporting in accordance with Statement of Financial Accounting
Standards No. 140. Accordingly, the L/C Issuer, the Swing Line Lender and any Lender that sells or
is deemed to have sold a participation in the Secured Obligations (including any participations in
Letters of Credit, Swing Line Loans and/or Loans (each, a “Participation Seller”) hereby
agrees that if such Participation Seller receives any payment in respect of the Secured Obligations
to which such participation relates through the exercise of setoff by such Participation Seller
against the Borrower or any other obligor, then such Participation Seller agrees to promptly pay to
the participating party in such participation such participant’s pro rata share of such setoff
(after giving effect to any sharing with the Lenders under Section 2.10).

SECTION 8.16. Patriot Act. Each Lender hereby notifies the Borrower that pursuant to
the requirements of the US Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies
the Borrower and the other Loan Parties, which information includes the name and address of the
Borrower and the other Loan Parties and other information that will allow such Lender to identify
the Borrower and the other Loan Parties in accordance with the Act.

SECTION 8.17. Delivery of Lender Addenda. Each Initial Lender shall become a party to
this Agreement on the Effective Date by delivering to the Administrative Agent a Lender Addendum
duly executed by such Lender, the Borrower and the Administrative Agent.

SECTION 8.18. Lender Rate Contracts. It is understood and agreed that the rights and
benefits under the Credit Documents of each Secured Party that is a party to a Lender Rate Contract
but is not a Lender consist exclusively of such Secured Party’s right to share in payments and
collections of the Collateral as more fully set forth herein. The Administrative Agent shall have
no duty to determine the amount or the existence of any Lender Rate Contract Obligations. In
connection with any such distribution of payments and collections or termination or release by the
Administrative Agent of any Liens thereunder, the Administrative Agent shall be entitled to assume
no amounts are due under any Lender Rate Contract unless such Secured Party has notified the
Administrative Agent in writing of the amount of any such liability owed to it at least five
Business Days prior to such distribution, termination or release. Additionally, the Administrative
Agent may disregard any such notice from a counterparty to a Lender Rate Contract if (i)
arrangements have been made for the Lender Rate Contract Obligations under such Lender Rate
Contract to be secured by a secured credit facility refinancing the Facilities or (ii) the Borrower
and the applicable Lender Rate Contract counterparty confirm to the Administrative Agent that other
replacement collateral equivalent in nature and value has or will be provided for such Lender Rate
Contract.

[The first signature page follows.]

2

IN WITNESS WHEREOF, the Borrower, CBII, the
Administrative Agent, the L/C Issuer, the Swing Line Lender and the Lenders have caused this
Agreement to be executed as of the day and year first above written.

BORROWER:

CHIQUITA BRANDS L.L.C.,

a Delaware limited liability company

By: /s/Jeffrey M. Zalla

Name: Jeffrey M. Zalla

Title: Senior Vice President and

Chief Financial Officer

3

CBII:

CHIQUITA BRANDS INTERNATIONAL, INC., a New Jersey

corporation

By: /s/Jeffrey M. Zalla

Name: Jeffrey M. Zalla

Title: Senior Vice President and

Chief Financial Officer

ADMINISTRATIVE AGENT,

L/C ISSUER, SWING LINE LENDER

AND LENDERS: COÖPERATIEVE CENTRALE RAIFFEISEN — BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK

BRANCH, as Administrative Agent, Lead Arranger, an L/C Issuer and Swing Line Lender

By: /s/Jeff Bliss

Name: Jeff Bliss

Title: Executive Director

By: /s/Brett Delfino

Name: Brett Delfino

Title: Executive Director

LENDERS: See each Lender Addendum

4Filed by Bowne Pure Compliance

 

EXHIBIT 10.1

MASTER REPURCHASE AGREEMENT

(for DHI Mortgage Company, Ltd.)

dated as of March 27, 2008

among

U.S. BANK NATIONAL ASSOCIATION,

as Administrative Agent and a Buyer,

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Syndication Agent and a Buyer,

the other Buyers party hereto

and

DHI MORTGAGE COMPANY, LTD., as Seller

J.P. MORGAN SECURITIES INC.

AS LEAD ARRANGER AND SOLE BOOKRUNNER

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	MASTER REPURCHASE AGREEMENT	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	1	 	APPLICABILITY AND DEFINED TERMS	 	 	1	 
	 
	 	1.1.	 	Applicability	 	 	1	 
	 
	 	1.2.	 	Defined Terms	 	 	2	 
	 
	 	1.3.	 	Other Definitional Provisions	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	2	 	THE BUYERS’ COMMITMENTS	 	 	31	 
	 
	 	2.1.	 	The Buyers’ Commitments to Purchase	 	 	31	 
	 
	 	2.2.	 	Expiration or Termination of the Commitments	 	 	32	 
	 
	 	2.3.	 	Request for Increase in Maximum Aggregate Commitment	 	 	32	 
	 
	 	2.4.	 	Swing Line Commitment	 	 	33	 
	 
	 	2.5.	 	Swing Line Transactions	 	 	33	 
	 
	 	2.6.	 	Optional Reduction or Termination of Buyers’ Commitments	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	3	 	INITIATION; REQUEST/CONFIRMATION; TERMINATION	 	 	34	 
	 
	 	3.1.	 	Seller Request; Administrative Agent Confirmation	 	 	34	 
	 
	 	3.2.	 	Syndication of Purchases	 	 	35	 
	 
	 	3.3.	 	Request/Confirmation	 	 	37	 
	 
	 	3.4.	 	Transaction Termination; Purchase Price Decrease	 	 	37	 
	 
	 	3.5.	 	Place for Payments of Repurchase Prices	 	 	38	 
	 
	 	3.6.	 	If Repurchase Price Not Paid	 	 	38	 
	 
	 	3.7.	 	Transfer of Existing Mortgage Loan Portfolio	 	 	38	 
	 
	 	3.8.	 	Closing of Portfolio Sale	 	 	38	 
	 
	 	3.9.	 	Delivery of Additional Mortgage Loans	 	 	39	 
	 
	 	3.10.	 	Application of Repurchase Price Payments	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	4	 	TRANSACTION LIMITS AND SUBLIMITS	 	 	40	 
	 
	 	4.1.	 	Transaction Limits	 	 	40	 
	 
	 	4.2.	 	Transaction Sublimits	 	 	40	 
	 
	 	 	 	 	 	 	 	 
	5	 	PRICE DIFFERENTIAL	 	 	41	 
	 
	 	5.1.	 	Pricing Rate	 	 	41	 
	 
	 	5.2.	 	Seller’s Election of Pricing Rate	 	 	41	 
	 
	 	5.3.	 	Seller’s Re-election of the Pricing Rate	 	 	41	 
	 
	 	5.4.	 	Balances Deficiency Fees	 	 	41	 
	 
	 	5.5.	 	Pricing Rate for Past Due Purchased Loans	 	 	42	 
	 
	 	5.6.	 	Price Differential Payment Due Dates	 	 	42	 
	 
	 	 	 	 	 	 	 	 
	6	 	MARGIN MAINTENANCE	 	 	42	 
	 
	 	6.1.	 	Margin Deficit	 	 	42	 
	 
	 	6.2.	 	Margin Call Deadline	 	 	43	 
	 
	 	6.3.	 	Application of Cash	 	 	43	 
	 
	 	6.4.	 	Increased Cost	 	 	43	 
	 
	 	6.5.	 	Capital Adequacy	 	 	44	 

 

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	 	6.6.	 	Administrative Agent’s Report	 	 	44	 
	 
	 	6.7.	 	Provisions Relating to LIBOR Rate Tranches and Balance Funded Rate Tranches	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	7	 	TAXES	 	 	45	 
	 
	 	7.1.	 	Payments to be Free of Taxes; Withholding	 	 	45	 
	 
	 	7.2.	 	Other Taxes	 	 	45	 
	 
	 	7.3.	 	Taxes Indemnity	 	 	46	 
	 
	 	7.4.	 	Receipt	 	 	46	 
	 
	 	7.5.	 	Non-Exempt Buyer	 	 	46	 
	 
	 	7.6.	 	If Buyer Fails to Provide Form	 	 	48	 
	 
	 	7.7.	 	Survival	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	8	 	INCOME AND ESCROW PAYMENTS; CONTROL	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	9	 	FACILITY FEE; ADMINISTRATIVE AGENT’S FEE	 	 	49	 
	 
	 	9.1.	 	Facility Fee	 	 	49	 
	 
	 	9.2.	 	Administrative Agent’s Fee	 	 	50	 
	 
	 	9.3.	 	Arranger’s Fee	 	 	50	 
	 
	 	 	 	 	 	 	 	 
	10	 	SECURITY INTEREST	 	 	50	 
	 
	 	10.1.	 	Intent of the Parties	 	 	50	 
	 
	 	(f)	 	Proceeds. all proceeds of all the foregoing	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	11	 	SUBSTITUTION	 	 	52	 
	 
	 	11.1.	 	Seller May Substitute Other Mortgage Loans with Notice to and Approval of Administrative Agent	 	 	52	 
	 
	 	11.2.	 	Payment to Accompany Substitution	 	 	53	 
	 
	 	 	 	 	 	 	 	 
	12	 	PAYMENT AND TRANSFER	 	 	53	 
	 
	 	12.1.	 	Immediately Available Funds; Notice to Custodian	 	 	53	 
	 
	 	12.2.	 	Payments to the Administrative Agent	 	 	53	 
	 
	 	12.3.	 	If Payment Not Made When Due	 	 	54	 
	 
	 	12.4.	 	Payments Valid and Effective	 	 	54	 
	 
	 	12.5.	 	Pro Rata Distribution of Payments	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	13	 	SEGREGATION OF DOCUMENTS RELATING TO PURCHASED LOANS	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	14	 	CONDITIONS PRECEDENT	 	 	55	 
	 
	 	14.1.	 	Initial Purchase	 	 	55	 
	 
	 	14.2.	 	Each Purchase	 	 	57	 
	 
	 	 	 	 	 	 	 	 
	15	 	REPRESENTATIONS, WARRANTIES AND COVENANTS	 	 	59	 
	 
	 	15.1.	 	Buyers, Administrative Agent and Seller Representations	 	 	59	 
	 
	 	15.2.	 	Additional Seller Representations	 	 	59	 
	 
	 	15.3.	 	Special Representations Relating to the Purchased Loans	 	 	64	 
	 
	 	15.4.	 	Survival	 	 	64	 

 

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	16	 	AFFIRMATIVE COVENANTS	 	 	64	 
	 
	 	16.1.	 	Weekly Market Analysis Report	 	 	64	 
	 
	 	16.2.	 	Office of Foreign Assets Control and USA Patriot Act	 	 	65	 
	 
	 	16.3.	 	Financial Statements	 	 	65	 
	 
	 	16.4.	 	Financial Statements Will Be Accurate	 	 	66	 
	 
	 	16.5.	 	Other Reports	 	 	67	 
	 
	 	16.6.	 	Maintain Existence and Statuses; Conduct of Business	 	 	68	 
	 
	 	16.7.	 	Compliance with Applicable Laws	 	 	68	 
	 
	 	16.8.	 	Inspection of Properties and Books; Protection of Seller’s Proprietary Information; Buyers’ Due Diligence of Seller	 	 	68	 
	 
	 	16.9.	 	Privacy of Customer Information	 	 	70	 
	 
	 	16.10.	 	Notice of Suits, Etc. and Notice	 	 	71	 
	 
	 	16.11.	 	Payment of Taxes, Etc.	 	 	72	 
	 
	 	16.12.	 	Insurance; fidelity bond	 	 	72	 
	 
	 	16.13.	 	Maintain Lien on Mortgaged Premises	 	 	73	 
	 
	 	16.14.	 	Subordination of Certain Indebtedness	 	 	73	 
	 
	 	16.15.	 	Certain Debt to Remain Unsecured	 	 	73	 
	 
	 	16.16.	 	Promptly Correct Escrow Imbalances	 	 	73	 
	 
	 	16.17.	 	MERS Covenants	 	 	73	 
	 
	 	16.18.	 	Special Affirmative Covenants Concerning Purchased Loans	 	 	74	 
	 
	 	16.19.	 	Coordination with Other Lenders/Repo Purchasers and Their Custodians	 	 	75	 
	 
	 	16.20.	 	Hedge Investments in Mortgage Loans	 	 	75	 
	 
	 	 	 	 	 	 	 	 
	17	 	NEGATIVE COVENANTS	 	 	76	 
	 
	 	17.1.	 	No Merger	 	 	76	 
	 
	 	17.2.	 	Limitation on GAAP Indebtedness and Contingent Indebtedness	 	 	76	 
	 
	 	17.3.	 	Business	 	 	76	 
	 
	 	17.4.	 	Liquidations, Dispositions of Substantial Assets	 	 	77	 
	 
	 	17.5.	 	Loans, Advances, and Investments	 	 	77	 
	 
	 	17.6.	 	Use of Proceeds	 	 	78	 
	 
	 	17.7.	 	Transactions with Affiliates	 	 	78	 
	 
	 	17.8.	 	Liens	 	 	78	 
	 
	 	17.9.	 	ERISA Plans	 	 	78	 
	 
	 	17.10.	 	Change of Principal Office; Fiscal Year	 	 	78	 
	 
	 	17.11.	 	Distributions	 	 	78	 
	 
	 	17.12.	 	Tangible Net Worth	 	 	78	 
	 
	 	17.13.	 	Tangible Net Worth Ratio	 	 	78	 
	 
	 	17.14.	 	Net Income	 	 	78	 
	 
	 	17.15.	 	Liquidity	 	 	79	 
	 
	 	17.16.	 	Special Negative Covenants Concerning Purchased Loans	 	 	79	 
	 
	 	17.17.	 	No Changes in Accounting Practices	 	 	79	 
	 
	 	 	 	 	 	 	 	 
	18	 	EVENTS OF DEFAULT; EVENT OF TERMINATION	 	 	79	 
	 
	 	18.1.	 	Events of Default	 	 	79	 
	 
	 	18.2.	 	Transaction Termination	 	 	81	 
	 
	 	18.3.	 	Termination by the Administrative Agent	 	 	81	 
	 
	 	18.4.	 	Remedies	 	 	81	 

 

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	 	18.5.	 	Liability for Expenses and Damages	 	 	82	 
	 
	 	18.6.	 	Liability for Interest	 	 	82	 
	 
	 	18.7.	 	Other Rights	 	 	82	 
	 
	 	18.8.	 	Exercise of Remedies	 	 	83	 
	 
	 	18.9.	 	Seller’s Repurchase Rights	 	 	83	 
	 
	 	18.10.	 	Sale of Purchased Loans	 	 	83	 
	 
	 	 	 	 	 	 	 	 
	19	 	SERVICING OF THE PURCHASED LOANS	 	 	83	 
	 
	 	19.1.	 	Servicing Released Basis	 	 	83	 
	 
	 	19.2.	 	Servicing and Subservicing	 	 	84	 
	 
	 	19.3.	 	Escrow Payments	 	 	84	 
	 
	 	19.4.	 	Escrow and Income after Event of Default	 	 	84	 
	 
	 	19.5.	 	Servicing Records	 	 	84	 
	 
	 	19.6.	 	Subservicer Instruction Letter	 	 	85	 
	 
	 	19.7.	 	Termination of Servicing	 	 	85	 
	 
	 	19.8.	 	Notice from Seller	 	 	85	 
	 
	 	19.9.	 	Seller Remains Liable	 	 	86	 
	 
	 	19.10.	 	Backup Servicer	 	 	86	 
	 
	 	19.11.	 	Successor Servicer	 	 	86	 
	 
	 	 	 	 	 	 	 	 
	20	 	PAYMENT OF EXPENSES; INDEMNITY	 	 	87	 
	 
	 	20.1.	 	Expenses	 	 	87	 
	 
	 	20.2.	 	Indemnity	 	 	88	 
	 
	 	 	 	 	 	 	 	 
	21	 	SINGLE AGREEMENT	 	 	88	 
	 
	 	 	 	 	 	 	 	 
	22	 	RELATIONSHIPS AMONG THE ADMINISTRATIVE AGENT AND THE BUYERS	 	 	88	 
	 
	 	22.1.	 	Administrative Agent’s Duties	 	 	88	 
	 
	 	22.2.	 	Limitation on Duty to Disclose	 	 	89	 
	 
	 	22.3.	 	Actions Requiring All Buyers’ Consent	 	 	89	 
	 
	 	22.4.	 	Actions Requiring Required Buyers’ Consent	 	 	90	 
	 
	 	22.5.	 	Administrative Agent’s Discretionary Actions	 	 	91	 
	 
	 	22.6.	 	Buyers’ Cooperation	 	 	91	 
	 
	 	22.7.	 	Buyers’ Sharing Arrangement	 	 	91	 
	 
	 	22.8.	 	Buyers’ Acknowledgment	 	 	92	 
	 
	 	22.9.	 	Administrative Agent and Syndication Agent Market Value Determinations	 	 	92	 
	 
	 	22.10.	 	Administrative Agent’s Representations to Buyers	 	 	93	 
	 
	 	22.11.	 	Administrative Agent’s Duty of Care, Express Negligence Waiver and Release	 	 	93	 
	 
	 	22.12.	 	Syndication Agent’s Duty of Care; Express Negligence Waiver and Release; merger	 	 	94	 
	 
	 	22.13.	 	Calculations of Shares of Principal and Other Sums	 	 	94	 
	 
	 	22.14.	 	Resignation or Removal of the Administrative Agent	 	 	94	 
	 
	 	22.15.	 	Effective Date of Resignation of the Administrative Agent	 	 	95	 
	 
	 	22.16.	 	Successor Administrative Agent	 	 	95	 
	 
	 	22.17.	 	Merger of the Administrative Agent	 	 	95	 
	 
	 	22.18.	 	Participation; Assignment	 	 	96	 

 

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	 	22.19.	 	The Administrative Agent and the Buyers are the only Beneficiaries of this Section	 	 	98	 
	 
	 	 	 	 	 	 	 	 
	23	 	NOTICES AND OTHER COMMUNICATIONS	 	 	98	 
	 
	 	 	 	 	 	 	 	 
	24	 	MISCELLANEOUS	 	 	100	 
	 
	 	24.1.	 	Further Assurances	 	 	100	 
	 
	 	24.2.	 	Administrative Agent as Attorney in Fact	 	 	100	 
	 
	 	24.3.	 	Wires to Seller	 	 	100	 
	 
	 	24.4.	 	Wires to Administrative Agent	 	 	101	 
	 
	 	24.5.	 	Receipt; Available Funds	 	 	101	 
	 
	 	 	 	 	 	 	 	 
	25	 	ENTIRE AGREEMENT; SEVERABILITY	 	 	101	 
	 
	 	 	 	 	 	 	 	 
	26	 	NON-ASSIGNABILITY; TERMINATION	 	 	101	 
	 
	 	26.1.	 	Limited Assignment	 	 	101	 
	 
	 	26.2.	 	Remedies Exception	 	 	101	 
	 
	 	26.3.	 	Agreement Termination	 	 	101	 
	 
	 	 	 	 	 	 	 	 
	27	 	COUNTERPARTS	 	 	102	 
	 
	 	 	 	 	 	 	 	 
	28	 	GOVERNING LAW, JURISDICTION AND VENUE	 	 	102	 
	 
	 	 	 	 	 	 	 	 
	29	 	WAIVER OF JURY TRIAL	 	 	102	 
	 
	 	 	 	 	 	 	 	 
	30	 	RELATIONSHIP OF THE PARTIES	 	 	103	 
	 
	 	 	 	 	 	 	 	 
	31	 	NO WAIVERS, ETC	 	 	103	 
	 
	 	 	 	 	 	 	 	 
	32	 	USE OF EMPLOYEE PLAN ASSETS	 	 	104	 
	 
	 	32.1.	 	Prohibited Transactions	 	 	104	 
	 
	 	32.2.	 	Audited Financial Statements Required	 	 	104	 
	 
	 	32.3.	 	Representations	 	 	104	 
	 
	 	 	 	 	 	 	 	 
	33	 	INTENT	 	 	104	 
	 
	 	33.1.	 	Transactions are Repurchase Agreements  and Securities Contracts	 	 	104	 
	 
	 	33.2.	 	Contractual Rights, Etc.	 	 	105	 
	 
	 	33.3.	 	FDIA	 	 	105	 
	 
	 	33.4.	 	Master Netting Agreement	 	 	105	 
	 
	 	 	 	 	 	 	 	 
	34	 	DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS	 	 	105	 
	 
	 	34.1.	 	Parties not Protected by SIPA or Insured by FDIC or NCUSIF	 	 	105	 
	 
	 	34.2.	 	SIPA Does Not Protect Government Securities Broker or Dealer Counterparty	 	 	105	 
	 
	 	34.3.	 	Transaction Funds Are Not Insured Deposits	 	 	105	 
	 
	 	 	 	 	 	 	 	 
	35	 	USA PATRIOT ACT NOTIFICATION	 	 	105	 
	 	 	Company Contacts:	 	 	105	 

 

-v-

 

EXHIBIT AND SCHEDULES

	 	 	 
	Exhibit A
	 	Form of Request/Confirmation
	Exhibit B
	 	Opinions Required for Opinion of Counsel to Seller
	Exhibit C
	 	Form of Officer’s Certificate with Computations to Show Compliance or Non-Compliance with Certain Financial Covenants
	Exhibit D
	 	List of Restricted Subsidiaries of the Seller as of the Effective Date
	Exhibit E
	 	Form of Corporation Tax Treatment Certificate
	Exhibit F
	 	Assignment and Assumption
	 
	 	 
	Schedule AI
	 	Approved Investors
	Schedule AR
	 	Authorized Seller Representatives List Effective as of March 27, 2008
	Schedule BC
	 	The Buyers’ Committed Sums
	Schedule BP
	 	List of Basic Papers
	Schedule DQ
	 	Disqualifiers
	Schedule EL
	 	Eligible Loans
	Schedule SSF
	 	Seller’s Underwriting Guidelines for Single-family Loans
	Schedule 15.2(f)
	 	Material Adverse Changes and Contingent Liabilities
	Schedule 15.2(g)
	 	Pending Litigation
	Schedule 15.2(o)
	 	Existing Liens
	Schedule 15.2(q)
	 	Seller’s Plans
	Schedule 15.3
	 	Special Representations and Warranties with Respect to each Purchased Loan
	Schedule 16.1
	 	Market Analysis Report
	Schedule 23
	 	Buyers’ Addresses for Notice as of March 27, 2008

 

-vi-

 

MASTER REPURCHASE AGREEMENT

THIS MASTER REPURCHASE AGREEMENT is made and entered into as of March 27, 2008, between and
among DHI Mortgage Company, Ltd., a Texas limited partnership (the “Seller”), U.S. Bank National
Association, as Administrative Agent and representative of itself as a Buyer and the other Buyers
(the “Administrative Agent” and sometimes “U.S. Bank”), JPMorgan Chase Bank, National Association,
as Syndication Agent and as a Buyer (as a Buyer, sometimes “JPM”, and in its capacity as
Syndication Agent, “Syndication Agent”), and the other Buyers, as defined in Section 1.2.

RECITALS

1 Applicability and Defined Terms.

1.1. Applicability. From time to time the parties hereto may enter into transactions in which
Seller agrees to transfer to Administrative Agent on behalf of the Buyers, Eligible Loans on a
service released basis against the transfer of funds by Buyers, with a simultaneous agreement by
the Buyers to transfer to Seller such Eligible Loans at a date certain or on demand in the event of
termination pursuant to Section 18.2 hereof, or if no demand is sooner made, on the
Termination Date, against the transfer of funds by Seller. Each such transaction shall be referred
to herein as a “Transaction” and shall be governed by this Agreement, as hereinafter defined.

U.S. Bank has also agreed to provide a separate revolving swing line repurchase facility to
initially and temporarily purchase Eligible Loans pending their purchase by all of the Buyers
pursuant to this Agreement.

The parties hereby specifically declare that it is their intention that this Master Repurchase
Agreement (as amended, restated, supplemented or otherwise modified from time to time, the
“Agreement”, which term includes the preamble above) and the purchases of Eligible Loans made
pursuant to it (under both its regular and swing line provisions) are to be treated as repurchase
transactions under the Title 11 of the United States Code, as amended (the “Bankruptcy Code”),
including all rights that accrue to Buyers by virtue of sections 559, 561 and 562 of the Bankruptcy
Code. This Agreement also contains lien provisions with respect to the Purchased Loans so that if,
contrary to the intent of the parties, any court of competent jurisdiction characterizes any
Transaction as a financing, rather than a purchase, under applicable law, including the applicable
provisions of the Bankruptcy Code, the Administrative Agent is deemed to have a first priority
perfected security interest in and to the Purchased Loans to secure the payment and performance of
all of the Seller’s Obligations under this Agreement.

The Buyers’ agreement to establish and continue the revolving repurchase facilities, and U.S.
Bank’s agreement to establish and continue such revolving swing line repurchase facility, are each
made upon and subject to the terms and conditions of this Agreement. If there is any conflict or
inconsistency between any of the terms or provisions of this Agreement and any of
the other Repurchase Documents, this Agreement shall govern and control. If there is any
conflict between any provision of this Agreement and any later supplement, amendment, restatement
or replacement of it, then the latter shall govern and control.

 

1

 

1.2. Defined Terms. Except where otherwise specifically stated, capitalized terms used in
this Agreement and the other Repurchase Documents have the meanings assigned to them below or
elsewhere in this Agreement.

“Accepted Servicing Practices” means, with respect to any Mortgage Loan, (i) those mortgage
loan servicing standards and procedures in accordance with all applicable state, local and federal
laws, rules and regulations and (ii)(y) the mortgage loan servicing standards and procedures
prescribed by Fannie Mae and Freddie Mac, in each case as set forth in the Fannie Mae Servicing
Guide or Freddie Mac Servicing Guide, as applicable, and in the directives or applicable
publications of such agency, as such may be amended or supplemented from time to time, or (z) with
respect to any Mortgage Loans and any matters or circumstances as to which no such standard or
procedure applies, the servicing standards, procedures and practices Seller uses with respect to
its own assets as of the date of this Agreement, subject to reasonable changes.

“Additional Purchased Loans” means Eligible Loans transferred by Seller to Buyers pursuant to,
and as defined in, Section 6.1.

Affiliate” means and includes, with respect to a specified Person, any other Person:

(a) that directly or indirectly through one or more intermediaries Controls, is
Controlled by or is under common Control with the specified Person (in this definition only,
the term “Control” means having the power to set or direct management policies, directly or
indirectly);

(b) that is a director, trustee, partner, member or executive officer of the specified
Person or serves in a similar capacity in respect of the specified Person;

(c) of which the specified Person is a director, trustee, partner, member or executive
officer or with respect to which the specified Person serves in a similar capacity and over
whom the specified Person, either alone or together with one or more other Persons similarly
situated, has Control;

(d) that, directly or indirectly through one or more intermediaries, is the beneficial
owner of ten percent (10%) or more of any class of equity securities — which does not
include any MBS — of the specified Person; or

(e) of which the specified Person is directly or indirectly the owner of ten percent
(10%) or more of any class of equity securities of the specified Person.

“Agency” means Ginnie Mae, Fannie Mae or Freddie Mac.

“Agency-eligible Forty Year Loans” means fully documented amortizing Conforming Mortgage Loans
which have original terms to stated maturity greater than thirty (30) year and up to forty (40)
years, in an original principal amount not to exceed $1,000,000 and are eligible for purchase by an
Agency.

 

2

 

“Agency-eligible Forty Year Loans Sublimit” is defined in the table in Section 4.2(c).

“Agency MBS” means MBS issued or guaranteed as to timely payment of principal and interest by
Ginnie Mae, Fannie Mae or Freddie Mac.

“Agency-eligible Non-owner Occupied Loan” means a Conforming Mortgage Loan whose Mortgaged
Premises are not occupied by one of the relevant Customers as either his or her primary or
secondary residence.

“Agency-eligible Non-Owner Occupied Loans Sublimit” is defined in the table in Section 4.2.

“Administrative Agent” is defined above.

“Administrative Agent’s Fee” is defined in Section 9.2.

“Aggregate Outstanding Purchase Price” means as of any Determination Date, an amount equal to
the sum of the Purchase Prices for all Purchased Loans included in all Open Transactions.

“Agreement” is defined in the Recitals.

“Alt-A Agency Loan” means a first Lien Mortgage Loan with a minimum FICO score of 660, a
confirmed takeout commitment from an Agency or that fully conforms to all underwriting, maximum
loan amount and other guidelines of Fannie Mae or Freddie Mac.

“Alt-A Non-Agency Loan” means a first Lien Mortgage Loan with a minimum FICO score of 660, a
maximum initial principal balance not to exceed $650,000 and that is in all respects eligible for
purchase by two Approved Investors and is not a Conforming Mortgage Loan.

“Appraisal” means an appraisal by a licensed appraiser selected in accordance with Agency
guidelines and not identified to the Seller as an unacceptable appraiser by an Agency, and who is
recognized and experienced in estimating the value of property of that same type in the community
where it is located, and who, unless approved by the Administrative Agent on a case-by-case basis,
is not a member, manager, director, officer or employee of the Seller or any Affiliate of the
Seller, or related as a parent, sibling, child or first cousin to any of the Seller’s or any such
Affiliate’s respective directors or officers or any of their spouses, a signed copy of the written
report of which appraisal is in the possession of the Seller or the applicable Servicer.

“Approved Investor” means Ginnie Mae, Fannie Mae, Freddie Mac and any of the Persons listed on
Schedule Al, as it may be supplemented or amended from time to time by agreement of the Seller and
the Administrative Agent provided that, the Administrative Agent and the
Syndication Agent must approve any Person to be added to Schedule A1 as an Approved Investor for
Mortgage Loans that are not Conforming Mortgage Loans and which Person does not have a rating of at
least A-1 or the equivalent thereof by Standard & Poor’s Ratings Group and P-1 or the equivalent
thereof by Moody’s Investors Services, Inc.; provided further, that if the
Administrative Agent shall give written notice to the Seller of the Administrative Agent’s and, as
applicable, the Syndication Agent’s reasonable disapproval of any Approved Investor(s) named in the
notice, the Approved Investor(s) so named shall no longer be (an) Approved Investor(s) from and
after the time when the Administrative Agent sends that notice to the Seller.

 

3

 

“Arranger’s Fees” as defined in Section 9.3.

“Authorized Seller Representative” means a representative of the Seller duly designated by all
requisite corporate action to execute any certificate, schedule or other document contemplated or
required by this Agreement or the Custody Agreement on behalf of the Seller and as its act and
deed. A list of Authorized Seller Representatives current as of the Effective Date is attached as
Schedule AR. The Seller will provide an updated list of Authorized Seller Representatives
to the Administrative Agent and the Custodian promptly following each addition to or subtraction
from such list, and the Administrative Agent, the Buyers and the Custodian shall be entitled to
rely on each such list until such an updated list is received by the Administrative Agent and the
Custodian.

“Backup Servicer” means U.S. Bank Home Mortgage, Inc. or any other Person designated by
Administrative Agent and Syndication Agent, in their sole discretion, to act as a backup servicer
of the Purchased Loans in accordance with Section 19.10.

“Balance Calculation Period” means each calendar month.

“Balance Funded Amount” means with respect to any Buyer for any Balance Calculation Period,
the average of the Qualifying Balances of such Buyer for such Balance Calculation Period. As used
in this paragraph, “Qualifying Balances” shall mean, with respect to any Buyer, for any day
the lesser of (a) the amount of such Buyer’s outstanding Purchase Price on Open Transactions on
such day, and (b) the sum of the collected balances in all identified non-interest bearing accounts
of the Seller maintained with such Buyer less (i) amounts necessary to satisfy reserve and deposit
insurance requirements and (ii) amounts required to compensate such Buyer for services rendered in
accordance with such Buyer’s system of charges for services to similar accounts.

“Balance Funded Rate” means a per annum rate equal to the LIBOR Margin plus 0.20%.

“Balance Funded Rate Tranche” means a portion of the outstanding Purchase Price on Open
Transactions on which the Pricing Rate is determined by reference to the Balance Funded Rate for
the applicable type of Eligible Loan.

“Balances Deficiency” as defined in Section 5.4.

“Balances Deficiency Fee” as defined in Section 5.4.

“Balances Surplus” as defined in Section 5.4.

“Bankruptcy Code” is defined in the Recitals.

“Basic Papers” means all of the Loan Papers that must be delivered to the Custodian (in the
case of Dry Loans, prior to the related Purchase Date and, in the case of Wet Loans, on or before
the seventh (7th) Business Day after the related Purchase Date) in order for any particular
Purchased Loan to continue to have Market Value. Schedule BP lists the Basic Papers.

 

4

 

“Broker’s Price Opinion” means the written opinion of the value of a tract or parcel of
Single-family residential real property securing a Mortgage Loan, issued by a real estate broker
duly licensed as such by the jurisdiction in which the subject property is located that is
reasonably acceptable to the Administrative Agent and that is not an Affiliate of the Seller or a
director, member, manager, officer or employee of the Seller or any of its Affiliates, selected
reasonably and in good faith by the Seller.

“Business Day” means any day when both (1) the Administrative Agent’s main branch in
Minneapolis, Minnesota is open for regular commercial banking business and (2) federal funds wire
transfers can be made.

“Buyer” means each of U.S. Bank, JPM and such other Persons, if any, as from time to time with
the consent of the other parties to this Agreement shall be a party to this agreement as a buyer.
Persons who are currently Buyers on any day shall be listed as Buyers in Schedule BC in
effect for that day.

“Buyer Affiliate” means (a) with respect to any Buyer, (i) an Affiliate of such Buyer or
(ii) any entity (whether a corporation, partnership, trust or otherwise) that is engaged in making,
purchasing, holding or otherwise investing in securities and mortgage reverse repurchase
agreements, bank loans and similar financial arrangements in the ordinary course of its business
and is administered or managed by such Buyer or an Affiliate of such Buyer and (b) with respect to
any Buyer that is a fund which invests in securities and mortgage reverse repurchase agreements,
bank loans and similar financial arrangements, any other fund that invests in securities and
mortgage reverse repurchase agreements, bank loans and similar financial arrangements and is
managed by the same investment advisor as such Buyer or by an Affiliate of such investment advisor.

“Buyers’ Margin Percentage” means:

(i) for all Purchased Loans except Second Lien Loans, HELOCs, and Alt-A Non-Agency
Loans, ninety-five percent (95%);

(ii) for Second Lien Loans and HELOCs ninety percent (90%); and

(iii) for Alt-A Non-Agency Loans, ninety-four percent (94%),

provided, however, that Buyer’s Margin Percentage will decrease by five
(5) percentage points for each 15 day period a Purchased Loan remains part of an Open
Transaction, beginning with the 60th day after the Purchase Date for such
Purchased Loan. For purposes of clarity the following example applies: A Conforming
Mortgage Loan with an initial Buyers’ Margin Percentage of 95% will on the 60th
day, have a reduced Buyer’s Margin Percentage of 90% and on the 75th day will
have a reduced Buyer’s Margin Percentage of 85%, and so on until it is no longer an Eligible
Loan; and provided further, that if a Purchased Mortgage Loan qualifies for
more than one Buyer’s Margin Percentage, the lowest Buyer’s Margin Percentage shall apply.

 

5

 

“Capitalized Servicing Rights” means for any Person, all rights to service Mortgage Loans
which would be capitalized under GAAP (regardless of whether such rights result from asset
securitizations, whole loan sales or originations of Mortgage Loans).

“Cash Equivalents” means and includes, on any day:

(i) any evidence of debt issued by the United States government or any agency thereof,
or guaranteed as to the timely payment of principal and interest by the United States
government, and maturing ninety (90) days or less after that day; and

(ii) any certificate of deposit or banker’s acceptance issued by a commercial bank that
is a member of the Federal Reserve System and has a combined unimpaired capital and surplus
and unimpaired undivided profits of not less than Two Hundred Million Dollars
($200,000,000), and maturing not more than ninety (90) days after that day.

“Central Elements” means and includes the value of a substantial part of the Purchased Loans;
the prospects for payment of each portion of the Repurchase Price, both Purchase Price and Price
Differential, when due; the validity or enforceability of this Agreement and the other Repurchase
Documents and, as to any Person referred to in any reference to the Central Elements, such Person’s
and its consolidated Subsidiaries’ property, business operations, financial condition and ability
to fulfill and perform its obligations under this Agreement and the other Repurchase Documents to
which it is a party, each taken as a whole, and such Person’s prospects of continuing in business
as a going concern.

“Certified Copy” means a copy of an original Basic Paper or Supplemental Paper accompanied by
(or on which there is stamped) a certification by an officer of either a title insurer or an agent
of a title insurer (whether a title agency or a closing attorney) or, except where otherwise
specified below, by an Authorized Seller Representative or an officer of the Servicer (if other
than the Seller) or subservicer of the relevant Mortgage Loan, that such copy is a true copy of the
original and (if applicable) that the original has been sent to the appropriate governmental filing
office for recording in the jurisdiction where the related Mortgaged Premises are located. Each
such certification shall be conclusively deemed to be a representation and warranty by the
certifying officer, agent, Authorized Seller Representative or officer of the relevant Servicer or
subservicer, as applicable, to the Administrative Agent, the Buyers and the Custodian upon which
each may rely.

“Change in Law” means (a) the adoption of any applicable Legal Requirement after the Effective
Date, (b) any change in any applicable Legal Requirement or in the interpretation or application
thereof by any Governmental Authority after the Effective Date or (c) reasonable compliance by any
Buyer (or by any applicable office of any Buyer) with any request, guideline or directive (whether
or not having the force of law) of any Governmental Authority made or issued after the Effective
Date.

 

6

 

“Change of Control” in respect of the Seller means the occurrence of the Parent not owning,
directly or indirectly a majority of the issued and outstanding ownership interests of the Seller.

“Commitment” means, for each Buyer, its commitment under Section 2.1, subject to
reduction as described in Section 2.6, to fund its Funding Share of Transactions, limited to such
Buyer’s Committed Sum. Such term also includes U.S. Bank’s commitment under Section 2.4 to
fund Swing Line Transactions, limited to the Swing Line Limit, upon and subject to the terms of
this Agreement.

“Commitments Cancellation Date” is defined in the definition of “Termination Date”.

“Committed Sum” means, for any day, the maximum total amount a Buyer is committed on that day
to fund for the purchase from the Seller of Eligible Loans on a revolving basis pursuant to this
Agreement without giving effect to any Transaction, on its terms and subject to its conditions.
From the Effective Date of this Agreement through the Termination Date or such other date (if any)
when all or any of them is changed by operation of the provisions of any agreement or Legal
Requirement, the Committed Sums for the Buyers are as set forth on Schedule BC, as it may be
amended and restated from time to time.

“Conforming Mortgage Loan” means a first priority Single-family residential Mortgage Loan that
is (i) FHA insured, (ii) VA guaranteed or, (iii) a conventional mortgage loan that fully conforms
to all Agency underwriting and other requirements and excluding expanded criteria loans as defined
under any Agency program.

“Consolidated” refers to the consolidation of any Person, in accordance with GAAP, with its
properly consolidated subsidiaries excluding all Unrestricted Subsidiaries. References herein to a
Person’s Consolidated financial statements refer to the consolidated financial statements of such
Person and its properly consolidated subsidiaries excluding all Unrestricted Subsidiaries.

“Contingent Indebtedness” of any Person at a particular date means the sum (without
duplication) at such date of (a) all obligations of such Person in respect of letters of credit,
acceptances, or similar obligations issued or created for the account of such Person, (b) all
obligations of such Person under any contract, agreement or understanding of such Person pursuant
to which such Person guarantees, or in effect guarantees, any indebtedness or other obligations of
any other Person in any matter, whether directly or indirectly, contingently or absolutely, in
whole or in part, (c) all liabilities secured by any Lien on any property owned by such Person,
whether or not such Person has assumed or otherwise become liable for the
payment thereof and (d) any liability of such Person or any Affiliate thereof in respect of
unfunded vested benefits under in ERISA Plan, excluding any GAAP Indebtedness.

“Corporation Tax Treatment Certificate” is defined in Section 7.5(a).

“Cumulative Loan-to- Value Ratio” means, as to any Single-family Loan, the ratio of:

(x) the sum of (i) the original principal amount of the Mortgage Note evidencing the
subject Single-Family Loan and (ii) the original principal amounts of all other Mortgage
Notes (if any) secured by a mortgage Lien on the same Mortgaged Premises that secure such
Single-Family Loan;

 

7

 

to (y) the fair market value of such Mortgaged Premises, as such value is shown in the
most recent Current Appraisal or the most recent Current Broker’s Price Opinion (whichever
is less.)

“Currency Agreement” means any foreign exchange contract, currency swap agreement, futures
contract, option contract, synthetic cap or other similar agreement or arrangement for the purpose
of hedging the currency risk associated with the Seller’s and its Subsidiaries’ operations and not
for speculative purposes.

“Current Appraisal” means an Appraisal dated no earlier than ninety (90) days (or such longer
period, if any, as the Administrative Agent and Syndication Agent shall approve) before the
relevant Determination Date.

“Current Broker’s Price Opinion” means a Broker’s Price Opinion dated no earlier than ninety
(90) days (or such longer period, if any, as the Administrative Agent and Syndication Agent shall
approve) before the relevant Determination Date.

“Custodian” means U.S. Bank, as Custodian under the Custody Agreement, or any successor
custodian under the Custody Agreement acceptable to the Administrative Agent and the Syndication
Agent.

“Custodian’s Fees” are the fees to be paid by the Seller to the Custodian for its services
under the Custody Agreement, as provided for in the Custody Agreement or by a separate agreement.
Such fees are separate from and in addition to other fees to be paid to the Buyers and the
Administrative Agent provided for in this Agreement.

“Custody Agreement” means the Custody Agreement dated concurrently herewith among the
Administrative Agent, the Seller and U.S. Bank, as Custodian, as it may be supplemented, amended or
restated from time to time.

“Customer” means and includes each maker of a Mortgage Note and each cosigner, guarantor,
endorser, surety and assumptor thereof, and each mortgagor or grantor
under a Mortgage, whether or not such Person has personal liability for its payment of the
Mortgage Loan evidenced or secured thereby, in whole or in part.

“Debt” means, with respect to any Person, on any day, the sum of the following (without
duplication):

(1) all of that Person’s debt or other obligations which, in accordance with GAAP,
should be included in determining total liabilities as shown on the liabilities side of that
Person’s balance sheet for that day;

(2) all of that Person’s debt or other obligations for borrowed money or for the
deferred purchase price of property or services, except that non-recourse MBS Debt arising
out of transactions structured to qualify for GAAP sale treatment shall be excluded;

 

8

 

(3) all of any other Person’s debt or other obligations for borrowed money or for the
deferred purchase price of property or services in respect of which such Person is liable,
contingently or otherwise, to pay or advance money or property as guarantor, surety,
endorser or otherwise (excluding such Person’s contingent liability as endorser of
negotiable instruments for collection in the ordinary course of business), or which such
Person has agreed to purchase or otherwise acquire;

(4) obligations of that Person under repurchase agreements, reverse repurchase
agreements, mortgage warehouse lines of credit, sale/buy-back agreements or like
arrangements;

(5) all debt for borrowed money or for the deferred purchase price of property or
services secured by a Lien on any property owned or being purchased by that Person (even
though that Person has not assumed or otherwise become liable for the payment of such debt)
to the extent that such debt would not be otherwise counted as a liability for purposes of
determining that Person’s net worth and to the extent that such debt is less than or equal
to the net book value of such property; and

(6) obligations of that Person in respect of any exchange traded or over the counter
derivative transaction, including any Hedge Agreement whether entered into for hedging or
speculative purposes;

provided that, for purposes of this Agreement, there shall be excluded from the calculation
of Debt for that day both (i) such Person’s obligations to pay to another Person any sums collected
and held by the subject Person (as loan servicer, escrow Administrative Agent or collection
Administrative Agent or in a similar capacity) for the account of such other Person, and
(ii) Qualified Subordinated Debt.

“Default” means the occurrence of any event or existence of any condition that, but for the
giving of notice, the lapse of time or both, would constitute an Event of Default.

“Determination Date” means the date as of, or for, which a specified characteristic of a
Mortgage Loan or other subject matter is being determined for purposes of a provision of this
Agreement or another Repurchase Document.

“Disqualifier” means any of the circumstances or events affecting Purchased Loans that are
described on Schedule DQ.

“Dry Loan” means an Eligible Loan originated by the Seller that has been closed, funded and
qualifies without exception as an Eligible Loan, including satisfying the requirement that all of
its Basic Papers have been delivered to the Custodian.

“Effective Date” means March 27, 2008.

 

9

 

“Electronic Administrative Agent” means MERSCORP, Inc. or its successor in interest or
assigns.

“Electronic Tracking Agreement” means a written Electronic Tracking Agreement among the
Seller, the Administrative Agent, MERS and the Electronic Agent, in form and substance acceptable
to the Seller and the Administrative Agent, as it may be supplemented, amended, restated or
replaced from time to time.

“Eligible Loans” is defined on Schedule EL.

“ERISA” means the Employee Retirement Income Security Act of 1974 and any successor statute,
as amended from time to time, and all rules and regulations promulgated under it.

“ERISA Affiliates” means all members of the group of corporations and trades or businesses
(whether or not incorporated) which, together with the Company, are treated as a single employer
under Section 414 of the Code.

“ERISA Plan” means any pension benefit plan subject to Title IV of ERISA or Section 412 of the
Code maintained or contributed to by the Company or any ERISA Affiliate with respect to which the
Company has a fixed or contingent liability.

“Escrow Account” shall mean the Escrow Account established by the Seller with a bank
satisfactory to the Administrative Agent and the Syndication Agent under Section 8, and
subject to the control of the Administrative Agent into which amounts paid for escrow accumulation
under Purchased Loans are paid for purposes of paying taxes, insurance and other appropriate escrow
charges.

“Event of Default” is defined in Section 18.1.

“Event of Insolvency” means:

(i) the Seller, the Parent or a Material Subsidiary has commenced as debtor any case or
proceeding under any bankruptcy, insolvency, reorganization, moratorium, delinquency,
arrangement, readjustment of debt, liquidation, dissolution, or similar Law
of any jurisdiction whether now or hereafter in effect, or consents to the filing of
any petition against it under such Law, or petitions for, causes or consents to the
appointment or election of a receiver, conservator, liquidator, trustee, sequestrator,
custodian or similar official for the Seller, the Parent or a Material Subsidiary or any
substantial part of its property, or an order for relief is entered under the Bankruptcy
Code; or any of Seller’s, the Parent’s or a Material Subsidiary’s property is sequestered by
court or administrative order; or the convening by the Seller, the Parent or a Material
Subsidiary of any meeting of creditors for purposes of commencing any such case or
proceeding or seeking such an appointment or election;

 

10

 

(ii) the commencement of any such case or proceeding against the Seller, the Parent or
any Material Subsidiary, or another Person’s seeking an appointment or election of a
receiver, conservator, liquidator, trustee, sequestrator, custodian or similar official for
the Seller, the Parent or a Material Subsidiary or any substantial part of its property, or
the filing against the Seller, the Parent or a Material Subsidiary of an application for a
protective decree under the provisions of SIPA which (1) is consented to or not timely
contested by Seller, the Parent or such Material Subsidiary, (2) results in the entry of an
order for relief, such an appointment or election, the issuance of such a protective decree
or the entry of an order having a similar effect or (3) is not dismissed within sixty (60)
days;

(iii) the making by the Seller, the Parent or a Material Subsidiary of a general
assignment for the benefit of creditors; or

(iv) the admission by the Seller, the Parent or a Material Subsidiary of its inability,
or intention not, or the inability of the Seller, the Parent or a Material Subsidiary, to
pay its debts as they become due.

“Excluded Taxes” is defined in Section 7.5.

“Facility Fee” is defined in Section 9.1.

“Fannie Mae” means the Federal National Mortgage Association and any successor.

“Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100th of one percent) 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 by the Federal Reserve Bank of Minneapolis on the Business Day next
succeeding such day, provided that (i) if the day for which such rate is to be determined is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (ii) if such
rate is not so published for any day, the Federal Funds Rate for such day shall be the average rate
quoted to Administrative Agent on such day on such transactions as determined by Administrative
Agent.

“FHA” means the Federal Housing Administration and any successor.

“FICA” means the Federal Insurance Contributions Act.

“FICO” means Fair Isaac Corporation and, where used in this Agreement, refers to the credit
scoring system developed by that company or to any other Customer credit scoring system whose use
by the Seller (for purposes of this Agreement and the Transactions) has been specifically approved
in writing by the Administrative Agent and the Syndication Agent.

“File” means a file in the possession of the Custodian or its designee (other than the Seller
or an Affiliate of the Seller) containing all of the Loan Papers for the relevant type of Mortgage
Loan.

“Financial Statements” is defined in Section 15.2(f).

“Freddie Mac” means the Federal Home Loan Mortgage Corporation and any successor.

 

11

 

“Funding Account” means the Seller’s non-interest bearing demand deposit account no.
104756234340 maintained with U.S. Bank into which Administrative Agent may transfer funds initially
deposited in the Repurchase Settlement Account for Swingline Transactions and funds otherwise
deposited in the Repurchase Settlement Account for Regular Transactions and from which the
Administrative Agent is authorized to disburse funds to the Seller or its designee (such as its
agents) for the funding of Transactions. The Funding Account shall be subject to setoff by the
Administrative Agent for Pro Rata distribution to the Buyers and shall be subject to the control of
the Administrative Agent.

“Funding Share” means, for each Buyer, that proportion of the sum of the original Purchase
Prices for the Eligible Loans to be purchased in a Transaction that bears the same ratio to the
total amount of such sum as that Buyer’s Committed Sum bears to the Maximum Aggregate Commitment.

“GAAP” means, for any day, generally accepted accounting principles, applied on a consistent
basis, stated in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants, or in statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by another entity or entities as
may be approved by a significant segment of the accounting profession, that are applicable to the
circumstances for that day. The requirement that such principles be applied on a consistent basis
means that the accounting principles observed in a current period shall be comparable in all
material respects to those applied in an earlier period, with the exception of changes in
application to which the Seller’s independent certified public accountants have agreed and which
changes and their effects are summarized in the subject company’s financial statements following
such changes. If (a) during the term of this Agreement any change(s) in such principles occur(s)
which materially changes the meaning or effect of any provision of this Agreement and (b) the
Seller or the Required Buyers regard such change(s) as adverse to their respective interests, then
upon written notice by the Seller to the Administrative Agent, or by the Administrative Agent or
the Required Buyers to the Seller, the parties to this Agreement shall negotiate promptly and in
good faith a supplement or amendment to this
Agreement to achieve as nearly as possible preservation and continuity of the business
substance of this Agreement in light of such change; provided that neither the
Administrative Agent nor any of the Buyers shall be obligated to commence, continue or conclude any
such negotiation or to execute any such supplement or amendment after any Default has occurred
(other than a Default caused by such change) and before it has been cured or after any Event of
Default has occurred (other than an Event of Default caused by such change) that the Administrative
Agent has not declared in writing to have been cured or waived.

“GAAP Indebtedness” of any Person at a particular date means the sum (without duplication) at
such date of (a) all indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services or which is evidenced by a note, bond, debenture, or similar
instrument, and (b) all obligations of such Person under any lease required by GAAP to be
capitalized on the balance sheet of such Person.

“General Partner” means the general partner of the Seller which on the date hereof is DHI
Mortgage Company GP, Inc., a Delaware corporation.

 

12

 

“Ginnie Mae” means the Government National Mortgage Association and any successor.

“Governmental Authority” means any foreign governmental authority, the United States of
America, any state of the United States and any political subdivision of any of the foregoing, and
any agency, department, commission, board, bureau, court or other tribunal.

“Hazard Insurance Policy” means, with respect to each Purchased Loan, the policy of fire and
extended coverage insurance required by Section 16.18(c)(1) to be maintained for the
related Mortgaged Premises’ improvements (and, if the related Mortgaged Premises are located in a
federally-designated special flood area, federal flood insurance issued in accordance with the
Flood Disaster Protection Act of 1973, as amended from time to time, or, if repealed, any
superseding legislation governing similar insurance coverage, or similar coverage against loss
sustained by floods or similar hazards that conforms to the flood insurance requirements prescribed
by Fannie Mae guidelines, which may be provided under a separate insurance policy), which insurance
may be a blanket mortgage impairment policy maintained by such Purchased Loan’s Servicer in
accordance with the terms and conditions of Section 16.18(c)(2).

“Hedge Agreement” means an Interest Rate Protection Agreement, a Currency Agreement or a
forward sales agreement entered into in the ordinary course of the Seller’s or any of its
Subsidiaries’ businesses to protect the Seller against changes in interest rates or the market
value of assets.

“HELOC” means a Single-family Loan that is an open end revolving home equity line of credit
that has an original principal amount not greater than $200,000, a FICO score of at least 660, a
Cumulative Loan-to-Value Ratio of ninety-five percent (95%) or less, satisfies the underwriting
guidelines of two Approved Investors and is subject to an Investor Commitment. Each HELOC that is
not a first lien loan must be a Piggyback Loan.

“HELOC Draw” shall mean the aggregate outstanding principal amount of all advances under a
HELOC, excluding an Unfunded HELOC Commitment but including all advances under such HELOC whether
or not all such advances are included on the Mortgage Loan Transmission File relating to such
HELOC.

“HUD” means the U.S. Department of Housing and Urban Development and any successor.

“In Default” means that, as to any Mortgage Loan, any Mortgage Note payment or escrow payment
is unpaid for thirty (30) days or more after its due date (whether or not the Seller has allowed
any grace period or extended the due date thereof by any means) or another material default has
occurred and is continuing, including the commencement of foreclosure proceedings or the
commencement of a case in bankruptcy for any Customer in respect of such Mortgage Loan.

“Income” means, with respect to any Eligible Loan on any day, all payments of principal,
interest and other distributions thereon or proceeds thereof paid to the relevant party.

 

13

 

“Income Account” means a demand deposit account established by the Seller with a bank
satisfactory to the Administrative Agent and the Syndication Agent under the provisions of
Section 8, which shall be subject to the control of the Administrative Agent.

“Indemnified Liabilities” is defined in Section 20.2.

“Indemnified Parties” is defined in Section 20.2.

“Interest Rate Protection Agreement” means, with respect to any or all of the Purchased Loans,
any short sale of any U.S. Treasury securities, futures contract, mortgage related security,
Eurodollar futures contract, options related contract, interest rate swap, cap or collar agreement
or similar arrangement providing for protection against fluctuations in interest rates or the
exchange of nominal interest obligations, either generally or under specific contingencies, that is
entered into by the Seller and a financial institution and is reasonably acceptable to the
Administrative Agent and Syndication Agent.

“Internal Revenue Code” means the Internal Revenue Code of 1986 or any subsequent federal
income tax law or laws, as amended from time to time.

“Investor Commitment” means an unexpired written commitment held by the Seller from an
Approved Investor to buy Purchased Loans, and that specifies (a) the type or item(s) of Purchased
Loan, (b) a purchase date or purchase deadline date and (c) a purchase price or the criteria by
which the purchase price will be determined.

“JPM” means JPMorgan Chase Bank, National Association and its successors.

“Jumbo Mortgage Loan” means a Mortgage Loan that would otherwise be a Conforming Mortgage Loan
secured by a first Lien Mortgage except that the
original principal amount is more than the maximum Agency loan amount but not more than One
Million Dollars ($1,000,000).

“Jumbo Mortgage Loans Sublimit” is defined in the table in Section 4.2.

“JV” means a joint venture (whether structured as a corporation, partnership, limited
liability company, or other entity or arrangement) between the Seller and one or more builders,
developers, title companies, or other service providers in the residential real estate industry for
the purpose of making Mortgage Loans.

“Law” means any law, statute, code, ordinance, order, rule, regulation, judgment, decree,
injunction, franchise, permit, certificate, license, authorization or other determination,
direction or requirement (including any of the foregoing which relate to environmental standards or
controls, energy regulations and occupational safety and health standards or controls) of any
(domestic or foreign) arbitrator, court or other Governmental Authority.

“Legal Requirement” means any law, statute, ordinance, decree, ruling, requirement, order,
judgment, rule or regulation (or interpretation of any of them) of any Governmental Authority, and
the terms of any license, permit, consent or approval issued by any Governmental Authority.

 

14

 

“LIBOR Business Day” a Business Day which is also a day for trading by and between banks in
United States dollar deposits in the interbank LIBOR market and a day on which banks are open for
business in New York City.

“LIBOR Margin” shall mean 1.00%.

“LIBOR Rate” on any Determination Date, the average offered rate for deposits in United States
dollars having a maturity of one month (rounded upward, if necessary, to the nearest 1/16 of 1%)
for delivery of such deposits on such Determination Date which appears on the Reuters Screen,
LIBOR01 Page, or any successor thereto as of 11:00 a.m., London time (or such other time as of
which such rate appears) on such date of determination, adjusted for any reserve requirement and
any subsequent costs arising from a change in government regulation, or the rate for such deposits
determined by the Administrative Agent at such time based on such other published service of
general application as shall be selected by the Administrative Agent for such purpose; provided,
that in lieu of determining the rate in the foregoing manner, the Administrative Agent may
determine the rate based on rates at which United States dollar deposits having a maturity of one
month are offered to the Administrative Agent in the interbank LIBOR market at such time for
delivery in immediately available funds on such date of determination in an amount equal to
$1,000,000 (round upward, if necessary, to the nearest 1/16 of 1%).

“LIBOR Rate Tranche” means a portion of the outstanding Purchase Price on Open Transactions on
which the Pricing Rate is determined by reference to the LIBOR Rate plus the applicable LIBOR
Margin.

“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.)

“Liquidity” means the Seller’s unencumbered and unrestricted cash and Cash Equivalents
plus the sum of the unused revolving availability under this Agreement, calculated as the amount by
which the aggregate Purchase Value of all Purchased Mortgage Loans at such time exceeds the
aggregate Purchase Price outstanding for all Open Transactions at such time.

“Loan Papers” means the Mortgage Note and all of the other papers related to the establishment
of a Purchased Loan and the creation, perfection and maintenance of its lien and lien priority for
such Purchased Loan, including its Basic Papers and its Supplemental Papers and including any
papers securing, guaranteeing or otherwise related to or delivered in connection with any Purchased
Loan, in a form acceptable to the Administrative Agent (including any guaranties, lien priority
agreements, security agreements, mortgages, deeds of trust, collateral assignments of the Seller’s
interest in underlying obligations or security, subordination agreements, negative pledge
agreements, loan agreements and title, mortgage, pool and casualty insurance policies), as any such
Loan Paper may be supplemented, amended, restated or replaced from time to time.

 

15

 

“Loan Records” means books, records, ledger cards, files, papers, documents, instruments,
certificates, appraisal reports, journals, reports, correspondence, customer lists, information and
data that describes, catalogs or lists such information or data, computer printouts, media (tapes,
discs, cards, drives, flash memory or any other kind of physical, electronic or virtual data or
information storage media or systems) and related data processing software (subject to any
licensing restrictions) and similar items that at any time evidence or contain information relating
to any of the Purchased Loans, and other information and data that is used or useful for managing
and administering the Purchased Loans, together with the nonexclusive right to use (in common with
the Seller and any repurchase agreement counterparty or secured party that has a valid and
enforceable interest therein and that agrees that its interest is similarly nonexclusive) the
Seller’s operating systems to manage and administer any of the Purchased Loans and any of the
related data and information described above, or that otherwise relates to the Purchased Loans,
together with the media on which the same are stored to the extent stored with material information
or data that relates to property other than the Purchased Loans (tapes, discs, cards, drives, flash
memory or any other kind of physical or virtual data or information storage media or systems), and
the Seller’s rights to access the same, whether exclusive or nonexclusive, to the extent that such
access rights may lawfully be transferred or used by the Seller’s permittees, and any computer
programs that are owned by the Seller (or licensed to the Seller under licenses that may lawfully
be transferred or used by the Seller’s permittees) and that are used or useful to access, organize,
input, read, print or otherwise output and otherwise handle or use such information and data.

“Margin Call” is defined in Section 6.1(a).

“Margin Deficit” is defined in Section 6.1(a).

“Margin Excess” is defined in Section 6.1(b)

“Margin Stock” has the meaning assigned to that term in Regulation U as in effect from time to
time.

“Market Value” means what the Administrative Agent and the Syndication Agent determine as the
market value of any Purchased Loan, using a commercially reasonable methodology that is, in their
sole discretion, in accordance with standards customarily applicable in the financial industry to
third party service providers providing values on comparable assets to be used in connection with
the financing of such assets without reference to Hedge Agreements or takeout commitments. The
Market Value of any Purchased Loan shall be the lower of the values determined by each of the
Administrative Agent and the Syndication Agent as of any date, or if only one of the Administrative
Agent or the Syndication Agent determines the Market Value on any date, such Market Value. Either
or both of the Administrative Agent or the Syndication Agent may determine the Market Value of any
Purchased Loan at any time and as many times as it or they deem necessary in their sole discretion.
The Administrative Agent’s and the Syndication Agent’s determination of Market Value hereunder
shall be conclusive and binding upon the parties, absent manifest error.

“Material Subsidiary” means any Subsidiary of the Seller whose contributed income constituted
at least five percent (5%) of the Seller’s gross income in the Seller’s most recent fiscal year.
Each Material Subsidiary must be a Restricted Subsidiary.

 

16

 

“Maximum Aggregate Commitment” means the maximum Aggregate Outstanding Purchase Price that is
allowed to be outstanding under this Agreement on any day, being the amount set forth in
Schedule BC in effect for that day. The Maximum Aggregate Commitment on the Effective Date
is Two Hundred Seventy-Five Million Dollars ($275,000,000). If and when some or all of the Buyers
then party to this Agreement agree in writing to increase their Committed Sums, or if a new Buyer
or Buyers joins the syndicate of Buyers, or if there is both such an increase and a new Buyer’s
joinder, the Administrative Agent shall execute an updated Schedule BC reflecting the new
Maximum Aggregate Commitment and deliver it to the Seller and the Buyers, and that updated
Schedule BC shall thereupon be substituted for and supersede the prior Schedule BC.

“MBS” means a mortgage pass-through security, collateralized mortgage obligation, REMIC or
other security that (i) is based on and backed by an underlying pool of Mortgage Loans and
(ii) provides for payment by its issuer to its holder of specified principal installments and/or a
fixed or floating rate of interest on the unpaid balance and for all prepayments to be passed
through to the holder, whether issued in certificated or book-entry form and whether or not issued,
guaranteed, insured or bonded by Ginnie Mae, Fannie Mae, Freddie Mac, an insurance company, a
private issuer or any other investor.

“MERS” means Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or its
successors or assigns.

“MERS Designated Loan” means a Purchased Loan registered to the Seller on the MERS® System.

“MERS Procedures Manual” means the MERS Procedures Manual, as it may be amended from time to
time.

“MERS® System” means the Electronic Agent’s mortgage electronic registry system, as more
particularly described in the MERS Procedures Manual.

“Mortgage” means a mortgage, deed of trust, deed to secure debt, security deed or other
mortgage instrument or similar evidence of lien legally effective in the U.S. jurisdiction where
the relevant real property is located to create and constitute a valid and enforceable Lien,
subject only to Permitted Encumbrances, on the fee simple or long term ground leasehold estate in
improved real property.

“Mortgage Assignment” means an assignment of a Mortgage, in form sufficient under the Laws of
the U.S. jurisdiction where the real property covered by such Mortgage is located to give record
notice of the assignment of such Mortgage, perfect the assignment and establish its priority
relative to other transactions in respect of the Mortgage assigned (no Mortgage Assignment is
required for any Mortgage that has been originated in the name of MERS and registered under the
MERS® System).

“Mortgage Loan” means any loan evidenced by a Mortgage Note and includes all right, title and
interest of the lender or mortgagee of such loan as a holder of both the beneficial and legal title
to such loan, including (i) all Loan Papers or other loan documents, files and records of the
lender or mortgagee for such loan, (ii) the monthly payments, any prepayments, insurance and other
proceeds, (iii) all Servicing Rights related to such loan and (iv) all other rights, interests,
benefits, security, proceeds, remedies and claims (including, without limitation, REO) in favor or
for the benefit of the lender or mortgagee arising out of or in connection with such loan.

 

17

 

“Mortgage Loan Transmission File” means a file containing all information concerning each
Mortgage Loan required by the “Record Layout”, as defined and provided for in (and attached as an
exhibit to) the Custody Agreement, one of which shall be delivered by the Seller to each of the
Custodian and the Administrative Agent for each Purchased Loan on its Purchase Date, both by
electronic, computer readable transmission in accordance with such Record Layout and, in the event
such electronic transmission is not possible, by faxing a hard copy thereof to each of the
Custodian and the Administrative Agent.

“Mortgage Note” means a promissory note secured by a Mortgage.

“Mortgaged Premises” means the Property securing a Mortgage Loan.

“Multiemployer Plan” means any “multiemployer plan”, as defined in Section 4001(a)(3) of
ERISA, which is maintained for employees of the Seller or any of the Seller’s Subsidiaries.

“Nonfunding Buyer” is defined in the definition of “Pro Rata”.

“Non-excluded Taxes” is defined in Section 7.1.

“Non-exempt Buyer” is defined in Section 7.5.

“Notices” is defined in Section 23.

“Obligations” means all of the Seller’s present and future obligations and liabilities under
this Agreement or any of the other Repurchase Documents, whether for Repurchase Price, Price
Differential, Margin Call, premium, fees, costs, attorneys’ fees or other obligation or liability,
and whether absolute or contingent, and all renewals, extensions, modifications and increases of
any of them.

“Officer’s Certificate” means a certificate executed on behalf of the Seller or another
relevant Person by its (or if it is a partnership, its general partner’s) Board of Directors’
Chairman (or if it is a limited liability company, one of its managers), president, chief financial
officer, treasurer, any of its executive vice presidents or senior vice presidents, its company
secretary, its controller or such other officer as shall be acceptable to the Administrative Agent
and Syndication Agent.

“Open Transaction” means a Transaction in which the Buyers have purchased and paid for the
related Purchased Loans but the Seller has not repurchased all of them, such that the remaining
Purchased Loans not repurchased by the Seller of the subject Transaction would be an Open
Transaction.

 

18

 

“Operating Account” means the Seller’s non-interest bearing demand deposit account no.
104790245344 maintained with U.S. Bank, subject to a control agreement in favor of the
Administrative Agent and from which the Administrative Agent is authorized pursuant to Section
3.6 to withdraw funds on any day in an amount equal to the aggregate Repurchase Prices of all
Purchased Loans that are Past Due on that day. The Operating Account shall be subject to setoff by
the Administrative Agent for Pro Rata distribution to the Buyers and, upon the occurrence and
during the continuance of a Default or Event of Default described in
Sections 18.1(a), 18.1(b),
18.1(c), 18.1(d), 18.1(g), the Administrative Agent may also terminate Seller’s right to withdraw,
or direct the payment of, funds except funds in excess of those necessary to pay the Obligations in
full.

“Operating Subsidiaries” means all Subsidiaries of the Seller other than Single-purpose
Finance Subsidiaries.

“Organizational Documents” means as to any Person other than a natural Person, its articles or
certificate of incorporation, organization, limited partnership or other document filed with a
Governmental Authority evidencing the organization of such entity and any bylaws, operating
agreement or other governance document governing the rights of the holders of the ownership
interests in such Person.

“Other Taxes” is defined in Section 7.2.

“Parent” means D.R. Horton, Inc., a Delaware corporation, which owns indirectly through one or
more of its wholly-owned Subsidiaries, one hundred percent (100%) of the general and limited
partnership interests in the Seller.

“Participant” is defined in Section 22.16(a).

“Past Due” means that the Seller has not repurchased the subject Purchased Loan on or before
its Repurchase Date.

“Past Due Rate” means, for any day after the Repurchase Date for the relevant Purchased Loan,
the Prime Rate for that day plus two percent (2.0%) per annum.

“Permitted Encumbrances” means, in respect of the Mortgaged Premises securing a Purchased
Loan, (i) tax Liens for real property taxes and government-improvement assessments that are not
delinquent; (ii) easements and restrictions that do not materially and adversely affect the title
to or marketability of such Mortgaged Premises or prohibit or interfere with the use of such
Mortgaged Premises as a one-to-four family residential dwelling; (iii) reservations as to oil, gas
or mineral rights, provided such rights do not include the right to remove buildings or other
material improvements on or near the surface of such Mortgaged Premises or to mine or drill on the
surface thereof or otherwise enter the surface for purposes of mining, drilling or exploring for,
or producing, transporting or otherwise handling oil, gas or other minerals of any kind;
(iv) agreements for the installation, maintenance or repair of public utilities, provided such
agreements do not create or evidence Liens on such Mortgaged Premises or authorize or permit any
Person to file or acquire claims of Liens against such Mortgaged Premises; (v) with respect to
Purchased Loans which are second Lien Mortgage Loans, first Lien Mortgage Loans; and (vi) such
other exceptions (if any) as are acceptable under relevant Agency guidelines; provided that
any encumbrance that is not permitted pursuant to the standards of any relevant Investor Commitment
by which the subject Purchased Loan is covered shall not be a Permitted Encumbrance.

 

19

 

“Person” means and includes natural persons, corporations, limited liability companies,
limited partnerships, registered limited liability partnerships, general partnerships, joint stock
companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts,
business trusts or other organizations, whether or not legal entities, and governments and agencies
and political subdivisions of them.

“Piggyback Loan” means a HELOC or Second Lien Loan where the Mortgaged Premises are subject to
a first Lien Loan that is a Purchased Loan.

“Plan” means an employee pension benefit plan of a type described in Section 3(2) of ERISA and
which is subject to Title IV of ERISA in respect of which the Seller is an “employer” as defined in
Section 3(5) of ERISA.

“Plan Party” is defined in Section 32.1.

“Price Differential” means, with respect to each Tranche under any Transaction hereunder for
any day, the aggregate amount obtained by daily multiplication of the Pricing Rate for such Tranche
for that day by the Purchase Price for such Tranche on a three
hundred sixty (360) day per year basis for the actual number of days during the period
commencing on (and including) the Purchase Date for such Tranche under such Transaction and ending
on (but excluding) the Determination Date, reduced by any such amount previously paid by the Seller
to the Administrative Agent (for Pro Rata distribution to the Buyers) with respect to such Tranche
for such Transaction.

“Pricing Rate” means the per annum percentage rate for determination of Price Differential.
The Pricing Rate for any Tranche may be determined by reference to the Balance Funded Rate, the
LIBOR Rate plus the LIBOR Margin, the Prime Rate or the Past Due Rate, as specified by the Seller
or as otherwise determined under this Agreement.

“Prime Loan” means a Single-family Loan that satisfies the Seller’s Underwriting Guidelines’
requirements to be an “A” or prime Mortgage Loan.

“Prime Rate” means at any time of any determination thereof, the rate per annum which is most
recently publicly announced by U.S. Bank as its “Prime Rate”, which may be a rate at, above or
below the rate at which U.S. Bank lends to other Persons. The Prime Rate is a reference rate and
is not necessarily the lowest rate. Any Pricing Rate based on the Prime Rate shall be adjusted as
of the effective date of each change in the Prime Rate.

“Prime Rate Tranche” means a portion of the outstanding Purchase Price on Open Transactions on
which the Pricing Rate is determined by reference to the Prime Rate.

“Principal Balance” means, for any day, the advanced and unpaid principal balance of a
Purchased Loan on that day. If a Purchased Loan is listed in the most current Purchased Loans
Curtailment Report, then for purposes of this Agreement, the Principal Balance for that Purchased
Loan (absent manifest error) shall be its principal balance as shown in that Purchased Loans
Curtailment Report.

 

20

 

“Privacy Requirements” means (a) Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et
seq., (b) federal regulations implementing such act codified at 12 CFR Parts 40, 216, 332 and 573,
(c) the Interagency Guidelines Establishing Standards For Safeguarding Customer Information and
codified at 12 CFR Parts 30, 208, 211, 225, 263, 308, 364, 568 and 570 and (d) any other applicable
federal, state and local laws, rules, regulations and orders relating to the privacy and security
of Seller’s Customer Information, as such statutes, regulations, guidelines, laws, rules and orders
may be amended from time to time.

“Pro Rata” means in accordance with the Buyers’ respective ownership interests in the
Purchased Loans. On any day, the Buyers will each own an undivided fractional ownership interest
in and to each Purchased Loan:

(i) if the Commitments of the Buyers are outstanding on that day, (x) whose numerator
is that Buyer’s Committed Sum for that day and (y) whose denominator is the Maximum
Aggregate Commitment for that day; or

(ii) if the Commitments have expired or have been terminated and have not been
reinstated, (x) whose numerator is the aggregate sum of the portions of the Purchase Prices
paid by that Buyer in all Transactions outstanding on that day and (y) whose
 denominator is the aggregate sum of the Purchase Prices paid by all Buyers in all such
Transactions outstanding on the day;

subject to the following adjustment:

if at any time or times when the Commitments are outstanding, any Buyer fails to fund any of
its Funding Share(s) of any Transaction which satisfies the conditions precedent set forth
herein (a “Nonfunding Buyer”) and one or more of the other Buyers funds it (electively in
accordance with the provisions of Section 2.1), then:

(a) the respective ownership interests of both (i) the Nonfunding Buyer and (ii) the
Buyer (or Buyers) that funded such Funding Share(s), shall be proportionately decreased and
increased, respectively, to the same extent as if their respective Committed Sums were
changed in direct proportion to the unreimbursed balance outstanding from time to time
thereafter of the amount so funded;

(b) the Nonfunding Buyer’s share of all future distributions of Repurchase Prices or
other realizations on the Purchased Loans received, pro rata among them in accordance with
their respective unrecovered balances of such Nonfunding Buyer’s Funding Share(s), shall be
distributed to the Buyer(s) that so funded such Nonfunding Buyer’s Funding Share(s) until
all such funding Buyer(s) have been fully repaid the amount so funded; and

(c) such adjustment shall remain in effect until such time as the Buyer(s) that funded
such Funding Share(s) have been so fully repaid.

 

21

 

If no other Buyer funds any of the Nonfunding Buyer’s Funding Share, then the Pro Rata
ownership interests of the Buyers in the Purchased Loans shall be changed, in that case so
that each Buyer’s Pro Rata ownership interest in the Purchased Loans is equal to the ratio
of (x) the sum of the portions of the Purchase Prices paid by that Buyer in all Open
Transactions on that day to (y) the total of the Purchase Prices paid by all Buyers in all
Open Transactions on that day, but the Nonfunding Buyer’s share of all subsequent
distributions of any Repurchase and Margin payments shall be paid to the other Buyers, pro
rata among them in the ratio that the Pro Rata ownership interest in the Purchased Loans
owned by each bears to the aggregate Pro Rata ownership interests in the Purchased Loans of
all such other Buyers, and the Buyers’ respective Pro Rata ownership interests in the
Purchased Loans shall be readjusted after each such payment, until their Pro Rata ownership
interests are restored to what they were before any Nonfunding Buyer failed to fund.
Notwithstanding any such changes in the Buyers’ Pro Rata ownership interests in any
Purchased Loan due to any Buyer’s failure to fund its Funding Share(s) of any Transaction,
such failure to fund shall not diminish any Buyer’s Funding Share(s) for subsequent
Transactions.

“Property” means any interest of a Person in any kind of property, whether real, personal or
mixed, tangible or intangible, including the Mortgage Loans.

“Purchase Date” means the date for each Transaction when the Seller is to convey the subject
Purchased Loans to the Buyers.

“Purchased Loan Report” means a report provided by the Administrative Agent detailing the
current Aggregate Outstanding Purchase Price for Purchased Loans by the type of Purchased Loan as
described in the table in Section 4.2(c).

“Purchased Loans Support” means all property (real or personal) assigned, hypothecated or
otherwise securing any Purchased Loans and includes any security agreement or other agreement
granting a lien or security interest in such real or personal property, including:

(1) all Loan Papers, whether now owned or hereafter acquired, related to, and all
private mortgage insurance on, any Purchased Loans, and all renewals, extensions,
modifications and replacements of any of them;

(2) all rights, liens, security interests, guarantees, insurance agreements and
assignments accruing or to accrue to the benefit of the Seller in respect of any Purchased
Loan;

(3) all of the Seller’s rights, powers, privileges, benefits and remedies under each
and every paper now or hereafter securing, insuring, guaranteeing or otherwise relating to
or delivered in connection with any Purchased Loan, including all guarantees, lien priority
agreements, security agreements, deeds of trust, Purchased Loans assignments, subordination
agreements, intercreditor agreements, negative pledge agreements, loan agreements,
management agreements, development agreements, design professional agreements, payment,
performance or completion bonds, title and casualty insurance policies and mortgage guaranty
or insurance contracts;

 

22

 

(4) all of the Seller’s rights, to the extent assignable, in, to and under any and all
commitments issued by (i) Ginnie Mae, Fannie Mae, Freddie Mac, another mortgage company or
any other investor or any Buyer or securities issuer to guarantee, purchase or invest in any
of the Purchased Loans or any MBS based on or backed by any of them or (ii) any broker or
investor to purchase any MBS, whether evidenced by book entry or certificate, representing
or secured by any interest in any of the Purchased Loans, together with the proceeds arising
from or pursuant to any and all such commitments;

(5) all rights under every Hazard Insurance Policy relating to real estate securing a
Purchased Loan for the benefit of the creditor of such Purchased Loan, the proceeds of all
errors and omissions insurance policies and all rights under any blanket hazard insurance
policies to the extent they relate to any Purchased Loan or its security and all hazard
insurance or condemnation proceeds paid or payable with respect to any of the Purchased
Loans and/or any of the property securing payment of any of the Purchased Loans or covered
by any related instrument;

(6) all present and future claims and rights of the Seller to have, demand, receive,
recover, obtain and retain payments from, and all proceeds of any nature paid or payable by,
any governmental, quasi-governmental or private mortgage guarantor or
 insurer (including VA, FHA or any other Person) with respect to any of the Purchased
Loans; and

all tax, insurance, maintenance fee and other escrow deposits or payments made by the
Customers under such Purchased Loans (the Buyers’ Administrative Agent and the Buyers acknowledge
that the Seller’s rights in such deposits are limited to the rights of an escrow agent and such
other rights, if any, in and to such deposits as are accorded by the Purchased Loans and related
papers) and all monies, accounts, deposit accounts, payment intangibles and general intangibles,
however designated or maintained, constituting or representing so-called “completion escrow” funds
or “holdbacks”, and being Purchased Loans’ proceeds recorded as disbursed but that have not been
paid over to the seller of the subject Mortgaged Premises (the purchase of which is financed by
such Purchased Loan), but that are instead being held by the Seller or by a third party escrow
agent pending completion of specified improvements or landscaping requirements for such Mortgaged
Premises.

“Purchase Price” means (i) on the relevant Purchase Date, the price at which the Purchased
Loans in a Transaction are sold by the Seller to the Buyers, such price being the Purchased Loans’
initial Purchase Value, and (ii) thereafter, except where the Administrative Agent and the Seller
agree otherwise, such Purchased Loans’ Purchase Value decreased by the amount of any cash
transferred in respect of such Purchased Loans (as determined by the Administrative Agent) by the
Seller to the Administrative Agent pursuant to Sections 3.4 and 6.1 (absent
manifest error, the Administrative Agent’s determination of for which Transaction(s) cash was
transferred by the Seller to the Administrative Agent shall be conclusive and binding).

“Purchase Price Decrease” means a reduction in the outstanding Purchase Price for Purchased
Loans without a termination of a Transaction or portion thereof as described in Section
3.4(c).

 

23

 

“Purchase Value” means (x) the Buyers’ Margin Percentage for a Purchased Loan multiplied by
(y) the least of:

(i) the face principal amount of the related Mortgage Note;

(ii) the unpaid Principal Balance of such Purchased Loan;

(iii) the price to be paid for such Purchased Loan under an Investor Commitment or the
weighted average price under unused Investor Commitments;

(iv) the weighted average purchase price payable pursuant to Hedge Agreements; and

(v) at the discretion of the Administrative Agent or the Syndication Agent, the Market
Value of such Purchased Loan

provided, that (i) the Purchase Value for Purchased Loans in excess of the
sublimits set forth in Section 4.2 shall be zero and, (ii) the Purchase Value for any
Purchased Loan which is not an Eligible Loan shall be zero.

“Purchased Loans” means the Eligible Loans sold by the Seller to the Buyers in Transactions,
and any Eligible Loans substituted therefor in accordance with Section 11. The term
“Purchased Loans” with respect to any Transaction at any time shall also include Additional
Purchased Loans delivered pursuant to Section 6.1. With respect to each HELOC, “Purchased
Loan” shall also include (i) the related HELOC Draw and (ii) all rights (but none of the
obligations) to make future advances under such HELOC.

“Purchased Loans Curtailment Report” means a written report from the Seller to the
Administrative Agent, attached to the compliance certificate in the form of Exhibit C, listing
Purchased Loans on which an unscheduled principal payment, prepayment or reduction of more than an
amount equal to one regularly scheduled principal and interest installment payment was made in the
preceding month, and their resulting new Principal Balances.

“Qualified Balances” has the meaning given such term in the definition of “Balance Funded
Amount”.

“Qualified Subordinated Debt” means Debt of the Seller to any Person which has been approved
by the Administrative Agent and the Syndication Agent (i) the papers evidencing, securing,
governing or otherwise related to which Debt impose covenants and conditions on the debtor under
them that are no more restrictive or onerous than the covenants and conditions imposed on the
Seller by this Agreement, (ii) that is subordinated to the Obligations pursuant to a currently
effective and irrevocable Subordination Agreement, including standstill and blockage provisions,
approved by the Administrative Agent and Syndication Agent and (iii) the principal of which is not
due and payable before ninety (90) days after the date specified in clause (i) of the
definition of “Termination Date”.

“Recourse Servicing” means Servicing Rights under a Servicing Agreement with respect to which
the Servicer is obligated to repurchase or indemnify the holder of the related Mortgage Loans in
respect of defaults on such Mortgage Loans at any time during the term of such Mortgage Loans.

 

24

 

“Register” is defined in Section 22.16(c).

“Regular Transaction” means a Transaction funded by all Buyers, rather than by U.S. Bank under
the Swing Line.

“Regulation D” means Regulation D promulgated by the Board of Governors of the Federal Reserve
System, 12 C.F.R. Part 204, or any other regulation when promulgated to replace the prior
Regulation D and having substantially the same function.

“Regulation Q” means Regulation Q promulgated by the Board of Governors of the Federal Reserve
System, 12 C.F.R. Part 217, or any other regulation when promulgated to replace the prior
Regulation Q and having substantially the same function.

“Regulation T” means Regulation T promulgated by the Board of Governors of the Federal Reserve
System, 12 C.F.R. Part 220, or any other regulation when promulgated to replace the prior
Regulation T and having substantially the same function.

“Regulation U” means Regulation U promulgated by the Board of Governors of the Federal Reserve
System, 12 C.F.R. Part 221, or any other regulation when promulgated to replace the prior
Regulation U and having substantially the same function.

“REO” means Single-family real property owned following judicial or nonjudicial foreclosure
(or conveyance by deed in lieu of foreclosure) of a Mortgage securing a Single-family Loan.

“Repurchase Date” means the date on which Seller is to repurchase Purchased Loans from the
Buyers, being the earlier of (i) the date when the Approved Investor is to purchase such Purchased
Loans, and (ii) any date determined by application of the provisions of Section 3.4 or
18.

“Repurchase Documents” means and includes this Agreement, the Custody Agreement, any financing
statements or other papers now or hereafter authorized, executed or issued pursuant to this
Agreement, and any renewal, extension, rearrangement, increase, supplement, modification or
restatement of any of them.

“Repurchase Price” means the price at which Purchased Loans are to be resold by the Buyers to
the Seller upon termination of a Transaction (including Transactions terminable upon demand), which
will be determined in each case as the sum of (x) the Purchase Price and (y) the Price Differential
as of the date of such determination.

 

25

 

“Repurchase Settlement Account” means the Seller’s non-interest bearing demand deposit account
no. 104756234365 to be maintained with U.S. Bank and to be used for (a) the Administrative Agent’s
and the Buyers’ deposits of Purchase Price payments for Purchased Loans (including any Swingline
Purchases) (b) any principal payments received by the Administrative Agent or the Custodian (other
than regular principal and interest payments) on any Purchased Loans; (c) the Administrative
Agent’s deposits of Repurchase Price payments received from the Seller or from an Approved Investor
for the Seller’s account for distribution to the Buyers and (d) only if and when (i) no Default has
occurred unless it has been either cured by the Seller or waived in writing by the Administrative
Agent (acting with the requisite consent of the Buyers as provided in this Agreement) and (ii) no
Event of Default has occurred unless the Administrative Agent has declared in writing that it has
been cured or waived, the Administrative Agent’s transfer to the Funding Account of deposits
received under clause (a) above for payment to the Seller or its designees such as its agents, or
the transfer to the Operating Account of proceeds of sales or other dispositions of Purchased Loans
to an Approved Investor in excess (if any) of the Repurchase Price of such Purchased Loan. The
Repurchase Settlement Account is (and shall continuously) constitute collateral for the
Obligations. The Repurchase Settlement Account shall be subject to setoff by the Administrative
Agent for Pro Rata distribution to the Buyers. The Repurchase Settlement Account shall be a
blocked account from which the Seller shall have no right to directly withdraw funds, but instead
such funds may be withdrawn or paid out only against the order of an authorized officer of the
Administrative Agent (acting with the requisite consent of the Buyers as provided herein), although
under the circumstances described in clause (d) of the first sentence of this definition and
subject to the conditions specified in that clause, the Administrative Agent shall use diligent and
reasonable efforts to cause Purchase Price payment
amounts and amounts in excess of the applicable Repurchase Prices that are received as therein
described and that are deposited to the Repurchase Settlement Account before 3:00 PM on a Business
Day to be transferred to the Operating Account on that same Business Day or on the Business Day
thereafter when the Administrative Agent next determines the Buyers’ Pro Rata shares of such
Purchase Price payment amounts or Repurchase Prices received.

“Request/Confirmation” means a request and confirmation, substantially in the form of
Exhibit A, delivered pursuant to Section 4.

“Required Buyers” means, for any day, Buyers whose Commitments comprise at least sixty-six and
two-thirds percent (66-2/3%) of (a) the Maximum Aggregate Commitment under this Agreement, or
(b) who own at least sixty-six and two-thirds percent (66-2/3%) of the Purchased Loans owned by the
Buyers on that day if on or before that day the Commitments have expired or have been terminated
and have not been reinstated.

“Restricted Subsidiary” means any subsidiary of the Seller in existence on the date hereof and
any Subsidiary hereafter acquired or formed by the Seller which the Seller does not designate as an
Unrestricted Subsidiary.

“Second Lien Loan” means a Single-family Loan as to which the Lien against the related
Mortgaged Premises is second and inferior to the Lien of a single senior Mortgage Loan with a
Cumulative Loan-to-Value Ratio of ninety-five percent (95%) or less, that satisfies the
underwriting guidelines of two Approved Investors and is subject to an Investor Commitment. Each
Second Lien Loan must be a Piggyback Loan.

“Second Lien Loan/HELOC Sublimit” is defined in the table in Section 5.2.

 

26

 

“Seller’s Consolidated Tangible Net Worth” means, as of any date, the remainder of (a) all
assets of the Seller and the Restricted Subsidiaries on a Consolidated basis minus (b) the sum of
(i) all GAAP Indebtedness and all Contingent Indebtedness of the Seller and the Restricted
Subsidiaries, (ii) all assets of the Seller and the Restricted Subsidiaries which would be
classified as intangible assets under GAAP, including, but not limited to, Capitalized Servicing
Rights, goodwill (whether representing the excess of cost over book value of assets acquired or
otherwise), patents, trademarks, trade names, copyrights, franchises, deferred charges and
intercompany receivables, (iii) investments in and advances to Unrestricted Subsidiaries, and (iv)
investments in and advances (other than loans permitted pursuant to Section 17.5) to JV’s.

“Seller’s Customer” means any natural person who has applied to the Seller for a financial
product or service, has obtained any financial product or service from the Seller or has a Mortgage
Loan that is serviced or subserviced by the Seller.

“Seller’s Customer Information” means any information or records in any form (written,
electronic or otherwise) containing a Seller’s Customer’s personal information or identity,
including such Seller’s Customer’s name, address, telephone number, loan number, loan payment
history, delinquency status, insurance carrier or payment information, tax amount or payment
information and the fact that such Seller’s Customer has a relationship with the Seller.

“Seller’s Underwriting Guidelines” means the Seller’s Mortgage Loan underwriting guidelines
for Single-family Loans, a copy of which will be made available to Administrative Agent and
Syndication Agent upon request and material changes to which, with respect to Mortgage Loans that
are not Conforming Mortgage Loans, will be made only upon prior notice by the Seller to, and with
approval of, the Administrative Agent and Syndication Agent. If the Administrative Agent or the
Syndication Agent does not approve of such changes, Mortgage Loans subject to such changes shall
not be Eligible Loans.

“Serviced Loans” means all Mortgage Loans serviced or required to be serviced by the Seller
under any Servicing Agreement, irrespective of whether the actual servicing is done by another
Person (a subservicer) retained by the Seller for that purpose.

“Servicer” means, initially, the Seller, and upon termination of the Seller’s right to be
Servicer pursuant to the provisions of Section 19.7, any Person designated by the
Administrative Agent and the Syndication Agent (including the Administrative Agent).

“Servicing Agreement” means, with respect to any Person, the arrangement, whether or not in
writing, pursuant to which that Person acts as servicer of Mortgage Loans, whether owned by that
Person or by others.

“Servicing Functions” means, with respect to the servicing of Mortgage Loans, the collection
of payments for the reduction of principal and application of interest, collection of amounts held
or to be held in escrow for payment of taxes, insurance and other escrow items and payment of such
taxes and insurance from amounts so collected, foreclosure services, and all other actions required
to conform with Accepted Servicing Practices.

 

27

 

“Servicing Rights” means the rights and obligations to administer and service a Mortgage Loan,
including, without limitation, the rights and obligations to: ensure the taxes and insurance are
paid, provide foreclosure services, provide full escrow administration and perform any other
obligations required by any owner of a Mortgage Loan, collect the payments for the reduction of
principal and application of interest, and manage and remit collected payments.

“Single-family Loan” means a Mortgage Loan that is secured by a Mortgage covering real
property improved by a one-, two-, three- or four-family residence.

“Single purpose Finance Subsidiary” means a wholly-owned Subsidiary of the Seller whose only
authorized business is to issue MBSs or hold passive investments.

“SIPA” means the Securities Investors Protection Act of 1970, 15 U.S.C. §78a et. seq., as
amended.

“Solvent” means, for any Person, that (a) the fair market value of its assets exceeds its
liabilities, (b) it has sufficient cash flow to enable it to pay its debts as they mature, and (c)
it does not have unreasonably small capital to conduct its business.

“Statement Date” means December 31, 2007.

“Statement Date Financial Statements” is defined in Section 15.2(f).

“Sublimit” means one or more (as the context requires) of the sublimits described in
Section 4.2.

“Subordination Agreement” means a written subordination agreement in form and substance
satisfactory to and approved by the Administrative Agent and Syndication Agent that subordinates
(x) all present and future debts and obligations owing by the Seller to the Person signing such
subordination agreement to (y) the Obligations, in both right of payment and lien priority,
including standstill and blockage provisions approved by the Administrative Agent and Syndication
Agent.

“Subservicer” means any entity permitted by Administrative Agent and Syndication Agent to act
as a subservicer of the Servicer who shall perform Servicing Functions under a Subservicer
Instruction Letter.

“Subservicer Instruction Letter” means an instruction letter to a Subservicer in form and
substance agreed to by Seller and Administrative Agent and Syndication Agent.

“Subsidiary” means any corporation, association or other business entity (including a trust)
in which any Person (directly or through one or more other Subsidiaries or other types of
intermediaries), owns or controls:

(a) more than fifty percent (50%) of the total voting power or shares of stock entitled
to vote in the election of its directors, managers or trustees; or

(b) more than ninety percent (90%) of the total assets and more than ninety percent
(90%) of the total equity through the ownership of capital stock (which may be non-voting)
or a similar device or indicia of equity ownership.

 

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“Super Jumbo Mortgage Loan” means a fully documented first lien Mortgage Loan that would be a
Jumbo Mortgage Loan except that the principal balance is greater than $1,000,000 and no greater
than $1,500,000 and the Cumulative Loan to Value Ratio is no more than 80%.

“Supplemental Papers” means the Loan Papers for a particular Loan other than its Basic Papers.

“Swing Line” means the short term revolving Eligible Loans purchase facility provided for in
Section 2.4 under which U.S. Bank will fund (as “Swing Line Purchases”) purchases of
Eligible Loans to bridge the Seller’s daily Transactions.

“Swing Line Limit” means, for any day, the lesser of (x) the U.S. Bank’s Commitment, and
(y) the Maximum Aggregate Commitment minus the Aggregate Outstanding Purchase Price outstanding on
that day, being the maximum amount that may be funded and outstanding on that day under the Swing
Line.

“Swing Line Refunding Due Date” for each Transaction funded under the Swing Line means the
Business Day on which U.S. Bank shall elect to have such Swing Line Transaction funded by the
Buyers pursuant to Section 2.5 (provided that U.S. Bank shall elect to have such Swing Line
Transactions so funded no less than two times per week) following the Business Day when U.S. Bank
funds such Transaction under the Swing Line; provided that U.S. Bank agrees not to exercise
such discretion to choose a due date in a manner that would materially affect the Seller’s ability
to complete a Transaction under this Agreement unless a Default has occurred that has not been
cured by the Seller or declared in writing by the Administrative Agent to have been waived or any
Event of Default has occurred that the Administrative Agent has not declared in writing to have
been cured or waived, in each case, as provided in Section 22.

“Swing Line Transaction” means a Transaction funded by U.S. Bank under the Swing Line.

“Taxes” is defined in Section 7.1.

“Termination Date” means the earlier of (i) March 26, 2009, or (ii) the date (the “Commitments
Cancellation Date”) when the Buyers’ Commitments are terminated pursuant to this Agreement, by
order of any Governmental Authority or by operation of law.

“Total Liabilities” means all liabilities of the Seller and its Subsidiaries, including
nonrecourse debt as, in accordance with GAAP, are reflected on the Seller’s consolidated balance
sheet, and also including all contingent liabilities and obligations (including Recourse Servicing,
recourse sale and other recourse obligations, and guarantee, indemnity and mortgage loan repurchase
obligations).

“Tranche” means a portion of the Open Transactions. A Tranche may be a Balance Funded Rate
Tranche, a LIBOR Rate Tranche or a Prime Rate Tranche.

“Transaction” is defined in the Recitals.

 

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“UCC” means the Uniform Commercial Code or similar Laws of the applicable jurisdiction, as
amended from time to time.

“Unfunded HELOC Commitment” means, with respect to each HELOC, the aggregate amount available
to be drawn by the related mortgagor.

“Unrestricted Subsidiary” means (i) any Subsidiary of the Seller that at the time of
acquisition or formation of such Subsidiary by the Seller shall be designated as an Unrestricted
Subsidiary by the Board of Directors of the General Partner in the manner provided below and
(ii) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors of the General Partner
may designate any newly acquired or formed Subsidiary to be an Unrestricted Subsidiary, provided
that no Default or Event of Default shall have occurred and be continuing at the time of or, after
giving effect to such designation. The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary by delivering written notice of such designation to
Administrative Agent together with a compliance certificate signed by the
President, Accounting Director or Chief Financial Officer of General Partner which shall
certify to Administrative Agent and Buyers that at the date of and, after giving effect to such
designation, the Seller shall be in compliance with all covenants set forth in the Repurchase
Documents and no Default or Event of Default shall have occurred and be continuing.

“VA” means the Department of Veterans Affairs and any successor.

“Wet Loan” means a Purchased Loan originated and owned by the Seller immediately prior to
being purchased by the Buyers:

(a) that has been closed on or prior to the Business Day on which the Purchase Price is
paid therefore, by a title agency or closing attorney, is fully funded and would qualify as
an Eligible Loan except that some or all of its Basic Papers are in transit to, but have not
yet been received by, the Custodian so as to satisfy all requirements to permit the Seller
to sell it pursuant to this Agreement without restriction;

(b) that the Seller reasonably expects to fully qualify as an Eligible Loan when the
original Basic Papers have been received by the Custodian;

(c) as to which the Seller actually and reasonably expects that such full qualification
can and will be achieved on or before seven (7) Business Days after the relevant Purchase
Date; and

(d) for which the Seller has delivered to the Custodian a Mortgage Loan Transmission
File on or before the Purchase Date, submission of which to the Custodian shall constitute
the Seller’s certification to the Custodian, the Buyers and the Administrative Agent that a
complete File as to such Purchased Loan, including the Basic Papers, exists and that such
File is in the possession of either the title agent or closing attorney that closed such
Purchased Loan, the Seller or that such File has been or will be shipped to the Custodian.

 

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Each Wet Loan that satisfies the foregoing requirements shall be an Eligible Loan subject to the
condition subsequent of physical delivery of its Mortgage Note, Mortgage and all other Basic
Papers, to the Custodian on or before seven (7) Business Days after the relevant Purchase Date.
Each Wet Loan sold by the Seller shall be irrevocably deemed purchased by the Buyers and shall
automatically become a Purchased Loan effective on the date of the related Request/Confirmation,
and the Seller shall take all steps necessary or appropriate to cause the sale to the Buyers and
delivery to the Custodian of such Wet Loan and its Basic Papers to be completed, perfected and
continued in all respects, including causing the original promissory note evidencing such Purchased
Loan to be physically delivered to the Custodian within seven (7) Business Days after the relevant
Purchase Date, and, if requested by the Administrative Agent, to give written notice to any title
agent, closing attorney or other Person in possession of the Basic Papers for such Purchased Loan
of the Buyers’ purchase of such Purchased Loan. Upon the Custodian’s receipt of the Basic Papers
relative to a Wet Loan such Purchased Loan shall no longer be considered a Wet Loan.

“Wet Loans Sublimit” is defined in Section 4.2.

1.3. Other Definitional Provisions.

(a) Accounting terms not otherwise defined shall have the meanings given them under
GAAP.

(b) Defined terms may be used in the singular or the plural, as the context requires.

(c) Except where otherwise specified, all times of day used in the Repurchase Documents
are local (U.S. Central Time Zone) times in Minneapolis, Minnesota.

(d) Unless the context plainly otherwise requires (e.g., if preceded by the word
“not”), wherever the word “including” or a similar word is used in the Repurchase Documents,
it shall be read as if it were written, “including by way of example but without in any way
limiting the generality of the foregoing concept or description”.

(e) Unless the context plainly otherwise requires, wherever the term “Administrative
Agent” is used in this Agreement (excluding Section 22), it shall be read as if it
were written “the Administrative Agent (as agent and representative of the Buyers)”.

2 The Buyers’ Commitments.

2.1. The Buyers’ Commitments to Purchase. Subject to the terms and conditions of this
Agreement and provided no Default or Event of Default has occurred that the Administrative Agent
and Syndication Agent have not declared in writing to have been cured or waived (or, if one has
occurred and not been so declared cured or waived, if all of the Buyers, in their sole discretion
and with or without waiving such Default or Event of Default, have elected in writing that
Transactions under this Agreement shall continue nonetheless), the Buyers agree to make revolving
purchases of Eligible Loans on a servicing released basis through the Termination Date, so long as
the Aggregate Outstanding Purchase Price does not exceed the Maximum Aggregate Commitment and so
long as each Buyer’s Committed Sum is not exceeded.
The Buyers’ respective Committed Sums and the
Maximum Aggregate Commitment are set forth on Schedule BC in effect at the relevant time,
as it may have been amended or restated pursuant to this Agreement.

 

31

 

Upon the joinder of additional
Buyer(s), if any, the parties agree to approve in writing revised and updated versions of
Schedule BC. The fractions to be applied to determine the respective Funding Shares of the
Buyers for any day are their respective Committed Sums divided by the Maximum Aggregate Commitment
for that day. Each Buyer shall be obligated to fund only that Buyer’s own Funding Share of any
Transaction requested, and no Buyer shall be obligated to the Seller or any other Buyer to fund a
greater share of any Transaction. No Buyer shall be excused from funding its applicable Funding
Share of any Transaction merely because any other Buyer has failed or refused to fund its relevant
Funding Share of that or any other Transaction. If any Buyer fails to
fund its Funding Share of any Transaction, the Administrative Agent (in its sole and absolute
discretion) may choose to fund the amount that such Nonfunding Buyer failed or refused to fund, or
the Administrative Agent as a Buyer and the other Buyers who are willing to do so shall have the
right (but no obligation) to do so in the proportion that the Committed Sum of each bears to the
total Committed Sums of all Buyers that have funded (or are funding) their own Funding Shares of
that Transaction and that are willing to fund part of the Funding Share of such Nonfunding Buyer.
Should the Administrative Agent and/or any other Buyer(s) fund any or all of the Nonfunding Buyer’s
Funding Share of any Transaction, then the Nonfunding Buyer shall have the obligation to deliver
such amount to the Administrative Agent (for distribution to the Buyer(s) who funded it) in
immediately available funds on the next Business Day. Regardless of whether the other Buyers fund
the Funding Share of the Nonfunding Buyer, the respective ownership interests of the Buyers in the
Transaction shall be adjusted as provided in the definition of “Pro Rata”. The obligations of
Buyers hereunder are several and not joint.

2.2. Expiration or Termination of the Commitments. Unless extended in writing or terminated
earlier in accordance with this Agreement, the Buyers’ Commitments (including U.S. Bank’s Swing
Line Commitment) shall automatically expire at the close of business on the Termination Date,
without any requirement for notice or any other action by the Administrative Agent, any of the
Buyers or any other Person.

2.3. Request for Increase in Maximum Aggregate Commitment. If the Seller shall request in
writing to the Administrative Agent and Syndication Agent an increase in the Maximum Aggregate
Commitment to a specified amount up to Five Hundred Million Dollars ($500,000,000), the Syndication
Agent shall use its best efforts to obtain increased Committed Sums from existing Buyers, new
Commitments from prospective new Buyers or such combination thereof as the Syndication Agent shall
elect, to achieve such requested increase; provided that (i) the Syndication Agent shall
first offer the opportunity to the then-existing Buyers to proportionately increase their Committed
Sums before offering prospective new Buyers the opportunity to join the syndicate of Buyers, and
will next offer the opportunity to the then-existing Buyers who have agreed to increase their
Committed Sums to further proportionately increase them to include any Committed Sums increase
offered to but not accepted by any of the other then-existing Buyers, (ii) such written request by
the Seller is delivered to the Administrative Agent and Syndication Agent at least ten (10)
Business Days before the requested effective date of the increase and (iii) no Default has occurred
that has not been cured before it has become an Event of Default, and no Event of Default has
occurred that the Administrative Agent and Syndication Agent has not declared in writing to have
been waived or cured.

 

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If an increase in the Maximum Aggregate Commitment is achieved, then (i) the
Pro Rata ownership interest in the Purchased Loans of each Buyer (if any) that does not
proportionately increase its Committed Sum shall, following funding by the new Buyers,
automatically be reduced and adjusted proportionately and (ii) Schedule BC shall be updated
and the update executed and delivered by the Administrative Agent to the Seller and each of the
Buyers and, effective as of the date specified on such update, shall each automatically supersede
and replace the then-existing corresponding schedule for all purposes.

2.4. Swing Line Commitment . In addition to its Commitment under Section 2.1, U.S. Bank agrees to fund revolving
Swing Line Transactions for aggregate Purchase Prices which do not on any day exceed the Swing Line
Limit for the purpose of initially funding requested Transactions.

2.5. Swing Line Transactions.

(a) The Seller shall have the right to a Swing Line Transaction:

(1) only if such Swing Line Transaction fully qualifies in all respects for
funding as Regular Transaction under this Agreement except that it may have been
requested later in the day;

(2) provided that no Default has occurred that has not been cured before it has
become an Event of Default, and no Event of Default has occurred that the
Administrative Agent has not declared in writing to have been waived or cured and
all conditions precedent in Article 14 have been satisfied;

(3) so long as the Swing Line Limit is not exceeded;

(4) provided that the Request/Confirmation for the proposed Transaction is
received by U.S. Bank by no later than 3:00 p.m. on the Business Day such
Transaction is to be funded; and

(5) provided that neither the Seller nor U.S. Bank is aware of any reason why
the requested Transaction cannot or will not be fully funded by the Buyers on the
first Swing Line Refunding Due Date following the Business Day on which the Swing
Line Transaction is to be funded.

(b) All Swing Line Transactions shall have a Price Differential from the date funded
until the date repaid and the Repurchase Price therefor shall be due and payable to U.S.
Bank at the same rate(s) as would be applicable if such Swing Line Transactions had been
funded as Regular Transactions by all Buyers, instead of having been funded by U.S. Bank
alone as Swing Line Transactions (except for any Balance Funded Rate Tranche that might be
available due to funds on deposit with U.S. Bank).

(c) Each Swing Line Transaction shall be re-funded on its Swing Line Refunding Due Date
by the Administrative Agent’s paying over to U.S. Bank out of the Repurchase Settlement
Account, and U.S. Bank’s applying against such Swing Line Transaction, an amount equal to
the Purchase Price of the Transaction funded by all of the Buyers in their Funding Shares of
such Purchase Price on that day against the same Request/Confirmation that was initially
funded as a Swing Line Transaction at which time such Transaction shall be deemed to be a
Regular Transaction, provided that if the Seller shall not have delivered a new
Request/Confirmation to the Administrative Agent and the Custodian for such Regular
Transaction, then the initial Pricing Rate applicable thereto shall be the LIBOR Rate plus
the LIBOR Margin as determined by the Administrative Agent.

 

33

 

(d) Accrued Price Differential Due. All accrued Price Differential on Swing
Line Transactions shall be due and payable by the Seller to the Administrative Agent (for
distribution to U.S. Bank) on the Price Differential payment due date (determined under
Section 5.6) next following the date of the Swing Line Transaction.

2.6. Optional Reduction or Termination of Buyers’ Commitments. The Seller may, at any time,
without premium or penalty, upon not less than ten (10) Business Days prior written notice to the
Administrative Agent, reduce or terminate the Maximum Aggregate Commitment, ratably, with any such
reduction in a minimum aggregate amount for all the Buyers of $25,000,000, or, if more, in an
integral multiple of $25,000,000; provided, however, that (i) the Seller may reduce
the Maximum Aggregate Commitment no more than once each calendar quarter, (ii) at no time may the
Aggregate Outstanding Purchase Price exceed the Maximum Aggregate Commitment after giving effect to
any such reduction and, (iii) unless terminated in full, the Maximum Aggregate Commitment shall not
be reduced to less than $100,000,000. Upon termination of the Buyers’ Commitments pursuant to this
Section, the Seller shall pay to the Administrative Agent for the ratable benefit of the Buyers the
full amount of all outstanding Obligations under the Repurchase Documents.

3 Initiation; Request/Confirmation; Termination

3.1. Seller Request; Administrative Agent Confirmation.

(a) Any agreement to enter into a Transaction shall be made by notice to the
Administrative Agent at the initiation of the Seller. To request a Transaction, the Seller
shall provide the Administrative Agent and Custodian with a written Request/Confirmation in
the form of Exhibit A together with transmission to the Administrative Agent and the
Custodian of the Mortgage Loan Transmission File for each of the Eligible Loans subject to
the Transaction by electronic transmission.

(b) If the Seller submits a Request/Confirmation and its related Mortgage Loan
Transmission Files to the Administrative Agent and the Custodian and:

(1) they are all received by 1:00 p.m., on the proposed Purchase Date, the
Transaction shall be funded as a Regular Transaction;

(2) they are not all received until after 1:00 p.m. but before 3:00 p.m. on
the proposed Purchase Date, the Transaction shall be funded as a Swing Line
Transaction;

(3) they are not all received until after 3:00 p.m. on the proposed Purchase
Date, U.S. Bank shall either, at its election, (i) fund the requested Transaction as
a Swing Line Transaction on that same day, or (ii) arrange for its funding on the
next Business Day as a Regular Transaction.

 

34

 

U.S. Bank shall have no obligation to fund any such late-requested Transaction as is described in
Section 3.1(b)(2) or 3.1(b)(3) as a Swing Line Transaction if all of the
requirements of Section 2.5 and this Section 3 are not satisfied, although U.S.
Bank may elect to do so. If U.S. Bank does not elect to do so, then the Buyers shall fund such
requested Transaction as a Regular Transaction on the next succeeding Business Day after the
Request/Confirmation and its related Mortgage Loan Transmission Files are received by the
Administrative Agent, provided that all conditions to its funding (including the requirements of
Section 2.5, this Section 3 and Section 14) are then satisfied.

3.2. Syndication of Purchases.

(a) When a Request/Confirmation is received by the Administrative Agent, the
Administrative Agent shall give notice by fax or, at the Administrative Agent’s discretion,
email backed up by fax, to each Buyer of the requested Transaction and that Buyer’s Funding
Share for the requested Transaction, by 2:00 p.m. on the Business Day when the requested
Transaction is to be funded by the Buyers, and each Buyer shall cause its Funding Share
thereof to be transferred to the Administrative Agent by fed funds wire transfer to:

U.S. Bank National Association

ABA number 091000022

Attention: Mortgage Banking Services

Account No. 104756234365

For Credit to: DHI Mortgage Company, Ltd.

within two (2) hours after receiving such notice from the Administrative Agent or by 4:00
p.m., so that the Administrative Agent receives it in immediately available funds on that
same Business Day.

(b) If U.S. Bank has not already funded the requested Transaction as a Swing Line
Transaction, then (provided the conditions set forth in Section 14 have been
satisfied or waived with the requisite consent of the Buyers as provided herein) the
Administrative Agent shall transfer the sum of the Purchase Prices for the Transaction to
the Funding Account and disburse the sum of the Purchase Prices for the Transaction to the
Seller or to its designee(s) for their account.

 

35

 

(c) If U.S. Bank has funded the requested Transaction (or any part of it) as a Swing
Line Transaction, and if at the time such Swing Line Transaction was funded, U.S. Bank
reasonably believed that all of the conditions set forth in Section 2.5 were
satisfied in all material respects, then the other Buyers shall be (subject to the
provisions of this Agreement and the other Repurchase Documents) unconditionally and
irrevocably obligated to timely fund their respective Funding Shares of the Transaction that
was so initially funded as a Swing Line Transaction, to repay to U.S. Bank (and thereby
refund) on the relevant Swing Line Refunding Due Date upon notice from U.S. Bank received no
later than 2:00 p.m. on the Swing Line Refunding Due Date, all of that Swing Line
Transaction except only U.S. Bank’s Funding Share of it, irrespective of whether in the
meantime any Default or Event of Default has occurred or been discovered, and irrespective
of whether in the meantime some or all of the Buyers’ Commitments have lapsed, expired or
been canceled, rescinded or terminated with or without cause, or have been waived, released
or excused for any reason whatsoever, so that (i) the Swing Line is paid down by the
required amount on each Swing Line Refunding Due Date, all Price Differential accrued on
Swing Line Transactions to the applicable Swingline Refunding Due Date shall be due and
payable by the Seller to the Administrative Agent (for distribution from the Repurchase
Settlement Account to U.S. Bank) within two(2) days after the Administrative Agent bills the
Seller for such Price Differential, but in no event later than the Termination Date, and
(ii) all Swing Line Transactions are converted to Regular Transactions funded Pro Rata by
the Buyers. The Administrative Agent shall disburse to U.S. Bank from the Repurchase
Settlement Account an amount equal to the sum of the Funding Shares funded by all of the
other Buyers on that day against the same Request/Confirmation that was initially funded as
a Swing Line Transaction (excluding U.S. Bank’s own Funding Share thereof); provided
that if a Buyer other than U.S. Bank advises the Administrative Agent by telephone and
confirms the advice by fax that such Buyer has placed all of its Funding Share on the
federal funds wire to the Repurchase Settlement Account, the Administrative Agent shall
continue to keep the Swing Line Transaction outstanding to the extent of that Buyer’s
Funding Share so wired until such Buyer’s Funding Share is received in the Repurchase
Settlement Account, and the Administrative Agent shall then repay U.S. Bank that
still-outstanding portion of the Swing Line Transaction from the Repurchase Settlement
Account, and the Price Differential accrued at the Pricing Rate(s) applicable to the
Transaction on that Funding Share for the period from (and including) the relevant Swing
Line Refunding Due Date to (but excluding) the date such Buyer’s Funding Share is received
by the Administrative Agent shall belong to U.S. Bank; provided, further that in no
event shall U.S. Bank have any obligation to continue such portion of any Swing Line
Transaction outstanding if and to the extent, if any, that doing so would cause the total
amount funded by U.S. Bank and outstanding to exceed the Swing Line Limit. If any Buyer
fails to wire to the Repurchase Settlement Account so that such funds are received by 4:00
p.m. on the Swing Line Refunding Due Date, such Buyer’s Funding Share of any Regular
Transaction that was initially funded as a Swing Line Transaction (i.e., excluding any such
failure caused by a federal funds wire delay), then that Buyer shall also be obligated to
pay to U.S. Bank Price Differential on the Funding Share so due from such Buyer to U.S. Bank
at the Federal Funds Rate from (and including) such Swing Line Refunding Due Date to (but
excluding) the date of payment of such Funding Share.

 

36

 

3.3. Request/Confirmation. Each Request/Confirmation and its Mortgage Loan Transmission File
shall identify the Administrative Agent and the Seller and set forth the Purchase Date and the
Pricing Rate that is to be applicable to the relevant Transaction or each Tranche thereof. Each
Request/Confirmation shall be binding on the parties, unless written notice of objection is given
by the objecting party to the other party within one (1) Business Day after the Administrative
Agent has received the completed Request/Confirmation from the Seller. In the event of any
conflict between the terms of a Request/Confirmation and this Agreement, this Agreement shall
prevail.

3.4. Transaction Termination; Purchase Price Decrease.

(a) Automatic Termination. Each Transaction, or applicable portion thereof, will
automatically terminate on the earlier of (x) the date or dates when the subject Purchased
Loans are purchased by Approved Investor(s) and (y) the Termination Date.

(b) Termination Upon Occurrence of Disqualifier. If any Disqualifier occurs in respect
of a Purchased Loan, the Seller shall immediately repurchase such Purchased Loan in
accordance with this Section 3.

(1) How Terminations will be Effected. Termination of every Transaction will
be effected by (x) the Buyers’ reconveyance to the Seller or its designee of the
Purchased Loans and payment of any Income in respect thereof received by the
Administrative Agent and not previously either paid to the Seller or applied as a
credit to the Seller’s Obligations, against (y) payment of the Repurchase Price in
immediately available funds to the account referred to in Section 3.5 by
1:00 p.m. on the Repurchase Date, so that the Administrative Agent receives the
Repurchase Price (for Pro Rata distribution to the Buyers) in immediately available
funds on that same Business Day; provided that the portion of the Repurchase
Price attributable to accrued and unpaid Price Differential for the Repurchased Loan
shall be not be due until two (2) Business Days after the Administrative Agent bills
the Seller therefor; provided further that all accrued and unpaid Price
Differential shall be due and payable on the Termination Date.

(c) Purchase Price Decrease. The Seller may effectuate a Purchase Price Decrease on
any Business Day by delivery to the Administrative Agent in immediately available funds an
amount specified by the Seller as a Purchase Price Decrease on that Business Day. No
Purchased Loans shall be, or be deemed to be, repurchased in connection with a Purchase
Price Decrease.

 

37

 

3.5. Place for Payments of Repurchase Prices. All Repurchase Price payments, whether
attributable to Purchase Price or Price Differential, shall be paid to:

U.S. Bank National Association

800 Nicollet Mall

Minneapolis, MN 55402

ABA number 091000022

For Credit Account No. 104756234365

For credit to: DHI Mortgage Company, Ltd. Repurchase Settlement Account

3.6. If Repurchase Price Not Paid. If the Seller fails for any reason to repurchase any one
or more Purchased Loans on the relevant Repurchase Date in the manner and by the time specified in
Sections 3.4 and 3.5, the Administrative Agent is hereby specifically and
irrevocably authorized to withdraw funds from the Operating Account in an amount equal to the sum
of the Repurchase Prices of all Purchased Loans that are Past Due on that day and cause application
of such funds withdrawn to the payment of the Repurchase Prices of such Purchased Loans in such
order and manner as the Administrative Agent may elect and if funds in the Operating Account are
insufficient to pay the Repurchase Prices of all such Purchased Loans, the Seller shall pay the
amount due hereunder on demand by wire to the address in Section 3.5.

3.7. Transfer of Existing Mortgage Loan Portfolio. The Administrative Agent, the Syndication
Agent and some of the Buyers and the Seller are also parties to a Second Amended and Restated
Credit Agreement dated as of April 7, 2006 (as amended, the “Warehousing Credit Agreement”)
pursuant to which such Buyers and the Administrative Agent (acting as Administrative Agent for the
lenders party to the Warehousing Credit Agreement) have made Advances (defined in the Warehousing
Credit Agreement) in the nature of loans to Seller. Repayment of these Advances and all interest
accrued thereon, and payment and performance of the other obligations of Seller under the
Warehousing Credit Agreement, are secured by a pledge and grant of a first priority security
interest in certain Mortgage Loans and related collateral delivered by Seller to the Administrative
Agent under the Warehousing Credit Agreement (collectively, the “Existing Mortgage Loan
Portfolio”), all on the terms and conditions set forth therein and in the Second Amended and
Restated Pledge and Security Agreement referred to therein. Seller has requested that it be
permitted to sell the Existing Mortgage Loan Portfolio, on the terms and conditions set forth
herein, to the Administrative Agent for the benefit of the Buyers as soon as convenient on or after
the Effective Date, and this Section 3.7 and Section 3.8 memorialize the parties’
further agreements on that subject.

3.8. Closing of Portfolio Sale. Seller, the Administrative Agent and the Syndication Agent
and the Buyers shall make commercially reasonable efforts to complete a sale of the Existing
Mortgage Loan Portfolio to the Administrative Agent for the benefit of the Buyers on the terms and
conditions of this Agreement as soon as practicable on or after the Effective Date, subject to the
following changes in the terms and conditions of this Agreement that are applicable to the Existing
Mortgage Loan Portfolio and the Mortgage Loans therein:

(a) The Repurchase Date for each such Mortgage Loan under Section 3.4 (and as
set forth in the Disqualifiers on Schedule DQ) shall be measured from the date on
which the Mortgage Loan was first pledged by Seller pursuant to the Warehousing Credit
Agreement. The requirement of Schedule EL (l0) that each Eligible Loan be originated no
more than 30 days prior to its Purchase Date shall be measured from the date on which the
Mortgage Loan was first pledged by Seller pursuant to the Warehousing Credit Agreement (i.e.
that it was originated no more than 30 days prior to the date it was first pledged by Seller
pursuant to the Warehousing Credit Agreement). The prior pledge of an Eligible Loan that is
a part of the Existing Mortgage Loan Portfolio pursuant to the Warehousing Credit Agreement
shall not violate any covenant, representation or warranty under this Agreement regarding a
prior pledge of any Eligible Loan.

 

38

 

(b) Each such Mortgage Loan must be an Eligible Loan at the time of purchase under this
Agreement unless otherwise agreed by all Buyers and the Seller.

(c) Seller makes the following additional representations and warranties in connection
with the sale and purchase of the Existing Mortgage Loan Portfolio: Seller has not filed a
petition in any case, action or proceeding under the Bankruptcy Code or any similar state
law; no petition in any case, action or proceeding under the Bankruptcy Code or any similar
state laws have been filed against Seller that has not been dismissed or vacated; and Seller
has not filed any answer or otherwise admitted in writing any insolvency or inability to pay
its debts or has made an assignment for the benefit of creditors or consented to the
appointment of a receiver or trustee of all or a material part of its property. Seller has
no intention to make any such filing or admission in the next ninety (90) days. The sale
and purchase of the Existing Mortgage Loan Portfolio will not be a preference, voidable
transfer, fraudulent conveyance, or otherwise in violation of the Bankruptcy Code or any
similar state or federal law.

3.9. Delivery of Additional Mortgage Loans. Seller may from time to time deliver to the
Administrative Agent Mortgage Loans that are also Eligible Loans without entering into a new
Transaction by providing to the Administrative Agent the documents required under Section 3.1 with
respect to such Mortgage Loans. The Seller and Buyers agree that such Mortgage Loans delivered
pursuant to this Section 3.9 shall be treated as Purchased Loans subject to the existing
Transactions hereunder from the date of such delivery.

3.10. Application of Repurchase Price Payments. Upon receipt by the Administrative Agent of
amounts paid or prepaid as Purchase Price Decreases or Repurchase Price (except upon the exercise
of remedies provided in Section 18) the Administrative Agent shall apply amounts so received to the
payment of all Obligations which are then due, and if the amount so received is insufficient to pay
all such Obligations, (i) first to any reimbursement due under Section 20.1, (ii) second to payment
of all Swingline Transactions that have not been syndicated, and (iii) third to partial payment of
Obligations then due or as otherwise agreed by the Buyers.

 

39

 

4 Transaction Limits and Sublimits.

4.1. Transaction Limits. Each Transaction shall be subject to the limitation that no purchase
will be made if at the time of or after such purchase, the Aggregate Outstanding Purchase Price
exceeds or would exceed the Maximum Aggregate Commitment.

4.2. Transaction Sublimits. The following sublimits shall also be applicable to the
Transactions hereunder such that after giving effect to any proposed Transaction and after giving
effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following
shall be true:

(a) The Aggregate Outstanding Purchase Price of Conforming Mortgage Loans may be as
much as one hundred percent (100%) of the Maximum Aggregate Commitment.

(b) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans
shall not exceed (x) fifty-five percent (55%) of the Maximum Aggregate Commitment on any of
the first four and last four Business Days of any month or (y) thirty percent (30%) of the
Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”).

(c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the
type listed in the first column of the following table shall not exceed the percentage of
the Maximum Aggregate Commitment listed in the second column of the table (the name of that
Sublimit is set forth in the third column):

	 	 	 	 	 	 	 
	 	 	Maximum percentage of	 	 
	Type of Purchased	 	Maximum Aggregate	 	 
	Loan	 	Commitment	 	Name of Sublimit
	Jumbo Mortgage Loans

	 	10%*	 	“Jumbo Mortgage Loans
Sublimit”
	 
	 	 	 	 	 	 
	Super Jumbo Mortgage
Loans

	 	5%*	 	“Super Jumbo Mortgage
Loans Sublimit”
	 
	 	 	 	 	 	 
	Second Lien
Loans/HELOCs
(collectively)

	 	5%*	 	“Second Lien
Loan/HELOC Sublimit”
	 
	 	 	 	 	 	 
	Alt-A Agency Loans

	 	15%	 	“Alt-A Agency Loans
Sublimit”
	 
	 	 	 	 	 	 
	Alt-A Non-Agency Loans

	 	5%* (provided that
Alt-A
 Agency Loans and
Alt-A
 Non-Agency Loans

collectivley shall not
exceed 15%)
	 	“Alt-A Non-Agency
Loans Sublimit”
	 
	 	 	 	 	 	 
	Agency Eligible
Non-owner Occupied
Loans

	 	5%	 	“Agency-eligible
Non-owner Occupied
Loans Sublimit”
	 
	 	 	 	 	 	 
	Agency-eligible Forty
Year Loans

	 	5%	 	“Agency-eligible
Forty Year Loans
Sublimit”

	 	 	 
	*	 	Notwithstanding the Sublimits set forth in the table above in the column “Maximum Aggregate
Commitment” the Aggregate Outstanding Purchase Price outstanding for all Jumbo, Super Jumbo
Mortgage Loans, Alt-A Non-Agency Loans, Second Lien Loans and HELOCS shall not at any time exceed
ten (10) percent of the Maximum Aggregate Commitment.

 

40

 

5 Price Differential.

5.1. Pricing Rate. Subject to the following rules, and as contemplated in the definition of
“Pricing Rate”, unless the Seller has validly elected the Prime Rate or the Balance Funded Rate for
specific Tranches, the Pricing Rate to be applied to the Purchase Prices of Purchased Loans to
determine the Price Differential in all Open Transactions or Tranches as to which the Price
Differential is to be determined by reference to the LIBOR Rate, on any day when no Event of
Default has occurred and is continuing shall be the LIBOR Rate plus the LIBOR Margin applicable
from time to time (in each case computed annually).

5.2. Seller’s Election of Pricing Rate. The Seller may elect that the Pricing Rate to be
multiplied by the Purchase Prices of the subject Purchased Loans or any Tranche to determine the
Price Differential in all Open Transactions or portions thereof designated as Tranches, be the
Prime Rate or the Balance Funded Rate from time to time by giving the Administrative Agent
telephonic notice not later than 10:00 AM on the effective date of such election, specifying the
Business Day when such election is to become effective and confirming the telephonic notice in
writing by not later than the close of business on the same day. A Balance Funded Rate may only be
selected where a Buyer is holding Qualifying Balances and shall only be applicable to such Buyer.

5.3. Seller’s Re-election of the Pricing Rate. If the Seller has elected the Prime Rate or
the Balance Funded Rate for any Tranche or Tranches, the Seller may thereafter elect that the
Pricing Rate to be so multiplied by the Purchase Prices of the subject Purchased Loans in Open
Transactions or such Tranches outstanding from time to time again bear interest at the LIBOR Rate
plus the LIBOR Margin by giving the Administrative Agent telephonic notice not later than 10:00 AM
on the effective date of such election, specifying the Business Day when such election is to become
effective and confirming the telephonic notice in writing by not later than the close of business
on the same day.

5.4. Balances Deficiency Fees. If for any Balance Calculation Period the Balance Funded Amount maintained by the Seller
with any Buyer is less than an amount equal to the average daily aggregate unpaid principal balance
of the Balance Funded Rate Tranches owed to such Buyer during such Balance Calculation Period (such
deficiency being herein referred to as the “Balances Deficiency”), the Seller will pay such Buyer a
fee (the “Balances Deficiency Fee”) for said Balance Calculation Period on the Balances Deficiency
at a per annum rate equal to the average daily LIBOR Rate plus LIBOR Margin in effect
during said Balance Calculation Period; and provided further, that if the Balance Funded Amount
maintained by the Seller with any Buyer for any Balance Calculation Period exceeds the weighted
average daily aggregate unpaid principal balance of the Balance Funded Rate Tranches held by such
Buyer during such Balance Calculation Period (such excess being defined herein as the “Balances
Surplus”), then such Balances Surplus may be carried forward and applied to succeeding Balance
Calculation Periods (but not to any Balance Calculation Period occurring in any subsequent calendar
year).

 

41

 

5.5. Pricing Rate for Past Due Purchased Loans. Notwithstanding any contrary or inconsistent
provision of this Section 5, the Pricing Rate to be multiplied by the Purchase Prices of
all Past Due Purchased Loans shall be the Past Due Rate from (and including) (a) the day
immediately following the Repurchase Date for each such Past Due Purchased Loan and until (but
excluding) the date on which such Past Due Purchased Loan is repurchased by transfer to the
Administrative Agent (for Pro Rata distribution to the Buyers) of its full Repurchase Price in
immediately available funds; and (b) the occurrence of an Event of Default under Section 18.1.

5.6. Price Differential Payment Due Dates. Price Differential on each Open Transaction and
each Tranche thereunder accrued and unpaid to the end of each month before the Termination Date
(and including any Balance Deficiency Fee) shall be due and payable two (2) Business Days after the
Administrative Agent bills the Seller for it, whether or not such Transaction is still an Open
Transaction on such payment due date; provided that all accrued and unpaid Price
Differential (and Balance Deficiency Fees) on all Transactions shall be due on the Termination
Date.

6 Margin Maintenance.

6.1. Margin Deficit. 

(a) The Administrative Agent will recalculate the Purchase Value
of all Purchased Loans on any date that the Market Value of Purchased Loans is calculated by
the Administrative Agent or Syndication Agent as described in Section 6.6 and on any
other date if requested by the Syndication Agent or at any other time the Administrative
Agent elects to do so. If at any time the aggregate Purchase Value of all Purchased Loans
subject to all Transactions hereunder is less than the aggregate Repurchase Price (excluding
Price Differential minus cash transfers previously made from Seller to the Administrative
Agent in response to previous Margin Calls, if any) for all such Transactions (a “Margin
Deficit”), then by notice to the Seller (a
“Margin Call”), the Administrative Agent shall, require the Seller to transfer (for the
account of the Buyers) to the Administrative Agent or the Custodian, as appropriate either
(at the Seller’s option) cash or additional Eligible Loans reasonably acceptable to the
Administrative Agent (“Additional Purchased Loans”), or a combination of cash and Additional
Purchased Loans, so that the cash and the aggregate Purchase Value of the Purchased Loans,
including any such Additional Purchased Loans, will thereupon at least equal the then
aggregate Repurchase Price (excluding Price Differential).

(b) On any Business Day on which the Purchase Value of the Purchased Loans subject to
Transactions exceeds the then outstanding aggregate Repurchase Price of all Transactions (a
“Margin Excess”), so long as no Default or Event of Default has occurred and is continuing
or will result therefrom, the Administrative Agent shall, upon receipt of written request
from the Seller, remit cash or release Purchased Loans as requested by Seller, in either
case, in an amount equal to the lesser of (i) the amount requested by the Seller and (ii)
such Margin Excess, subject always to the other limitations of this Agreement. If cash is
to be remitted the Administrative Agent shall treat the receipt of the written request of
Seller under this Section 6.1(b) as if it were a request for a Transaction. To the extent
the Administrative Agent remits cash to the Seller, such cash shall be (y) additional
Purchase Price with respect to the Transactions, and (z) subject in all respects to the
provisions and limitations of this Agreement. Each Buyer shall fund its Pro Rata share of
such additional Purchase Price as if the remission of such Margin Excess were the initiation
of a Transaction hereunder.

 

42

 

6.2. Margin Call Deadline. If the Administrative Agent delivers a Margin Call to the Seller
at or before 10:00 a.m. on any Business Day, then the Seller shall transfer cash and/or Additional
Purchased Loans as provided in Section 6.1 on the same Business Day. If the Administrative
Agent delivers a Margin Call to the Seller after 10:00 a.m. on any Business Day, then the Seller
shall transfer cash and/or Additional Purchased Loans by no later than 10:00 a.m. on the next
following Business Day.

6.3. Application of Cash. Any cash transferred to the Administrative Agent (for Pro Rata
distribution to the Buyers) pursuant to this Section 6 shall be applied by the Buyers on
receipt from the Administrative Agent which shall occur on the date received from the Seller or the
next Business Day if received after 3:00 p.m.

6.4. Increased Cost. If any Legal Requirement (other than with respect to any amendment made
to the relevant Buyer’s articles of incorporation and by-laws or other organizational or governing
documents) or any change in the interpretation or application thereof or compliance by any Buyer
with any request or directive (whether or not having the force of law) from any central bank or
other Governmental Authority made subsequent to the Effective Date:

(a) shall subject such Buyer to any Tax or increased Tax of any kind whatsoever with
respect to this Agreement or any Transaction or change the basis of taxation of payments to
the Buyer in respect thereof;

(b) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, or other extensions of credit by, or any other acquisition of
funds by, any office of the Buyer which is not otherwise included in the determination of
the LIBOR Rate hereunder; or

(c) shall impose on the Buyer any other condition;

and the result of any of the foregoing is to increase the cost to the Buyer, by an amount which the
Buyer deems to be material, of entering, continuing or maintaining any Transaction or to reduce any
amount due or owing hereunder in respect thereof, then, in any such case, the Seller shall promptly
pay the Administrative Agent (for distribution to such Buyer) such additional amount or amounts as
calculated by the Buyer in good faith as will compensate the Buyer for such increased cost or
reduced amount receivable.

 

43

 

6.5. Capital Adequacy. If any Buyer shall have determined that the adoption of or any change
in any Legal Requirement (other than with respect to any amendment made to the Buyer’s articles of
incorporation and by-laws or other organizational or governing documents) regarding capital
adequacy or in the interpretation or application thereof or compliance by the Buyer or any
corporation controlling the Buyer with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority made subsequent to the Effective
Date shall have the effect of reducing the rate of return on the Buyer’s or such corporation’s
capital as a consequence of its obligations hereunder to a level below that which the Buyer or such
corporation could have achieved but for such adoption, change or compliance (taking into
consideration the Buyer’s or such corporation’s policies with respect to capital adequacy) by an
amount deemed by the Buyer to be material, then from time to time, the Seller shall promptly pay to
the Administrative Agent (for distribution to such Buyer) such additional amount or amounts as will
compensate the Buyer or such corporation for such reduction.

6.6. Administrative Agent’s Report. In the discretion of the Administrative Agent and
Syndication Agent if either reasonably determines that market conditions warrant (except that the
Administrative Agent and Syndication Agent shall have no obligation to make such determination more
frequently than
once per day), the Administrative Agent and Syndication Agent may: (1) determine the
aggregate Market Values for the Purchased Loans (which may include the Purchase Value of any
Mortgage Loans purchased on that day) by summing the values of the individual Purchased Loans as
reported on (and recorded by the Administrative Agent from) the Mortgage Loan Transmission Files
and Purchased Loans Curtailment Reports, valuing at zero Purchased Loans for which the
Administrative Agent or Syndication Agent has current actual knowledge that a Disqualifier exists;
(2) issue a statement of the value of the Purchased Loans as so determined; and (3) provide a copy
of such statement to the Seller and each Buyer, provided that, if the
Administrative Agent has not provided such a statement to the Seller and each Buyer at least one
time in a calendar month, the Administrative Agent shall provide to the Seller and each Buyer a
Purchased Loan Report no later than the last Business Day of each month.

6.7. Provisions Relating to LIBOR Rate Tranches and Balance Funded Rate Tranches.

If, on the date for determining the LIBOR Rate in respect of any LIBOR Rate Tranche,
any Buyer determines (which determination shall be conclusive and binding, absent error)
that the LIBOR Rate will not adequately and fairly reflect the cost to such Buyer of funding
such LIBOR Rate Tranche, then such Buyer shall notify the Administrative Agent, and the
Administrative Agent shall notify the Seller, of such determination, whereupon the
obligation of such Buyer to make, or to convert any Tranche to, LIBOR Rate Tranches shall be
suspended until such Buyer notifies the Administrative Agent, and the Administrative Agent
notifies the Seller, that the circumstances giving rise to such suspension no longer exist.
Outstanding LIBOR Rate Tranches held by such Buyer shall thereupon automatically be
converted to bear interest at a rate equal to the Federal Funds Rate plus 0.50%
plus the LIBOR Margin, and in such event, the Seller will thereafter be entitled to
designate subsequent Tranches to bear interest at the Federal Funds Rate plus 0.50%
plus the LIBOR Margin.

 

44

 

If, after the date of this Agreement, the adoption of, or any change in, any applicable
law, rule or regulation, or any change in the interpretation or administration thereof by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Buyer with any request or
directive (whether or not having the force of law) of any such authority, central bank or
comparable agency shall make it unlawful or impossible for such Buyer to make, maintain or
fund LIBOR Rate Tranches or Balance Funded Rate Tranches, such Buyer shall notify the Seller
and the Administrative Agent, whereupon the obligation of such Buyer to make or convert
Tranches into LIBOR Rate Tranches or Balance Funded Rate Tranches, shall be suspended until
such Buyer notifies the Seller and the Administrative Agent that the circumstances giving
rise to such suspension no longer exist. If any Buyer determines that it may not lawfully
continue to maintain any LIBOR Rate Tranches or Balance Funded Rate Tranches, all of the
affected Tranches shall be automatically converted as of the date of such Buyer’s notice to
bear interest at a rate equal to the Federal Funds Rate plus 0.50% plus the
LIBOR Margin and, in such event, the Seller will
thereafter be entitled to designate subsequent Tranches to bear interest at the Federal
Funds Rate plus 0.50% plus the LIBOR Margin.

7 Taxes.

7.1. Payments to be Free of Taxes; Withholding. Any and all payments by the Seller under or
in respect of this Agreement or any other Repurchase Documents to which the Seller is a party shall
be made free and clear of, and without deduction or withholding for or on account of, any and all
present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
(including penalties, interest and additions to tax) with respect thereto, whether now or hereafter
imposed, levied, collected, withheld or assessed by any taxation authority or other Governmental
Authority (collectively, “Taxes”), unless required by any Law. If the Seller shall be required
under any applicable Legal Requirement to deduct or withhold any Taxes from or in respect of any
sum payable under or in respect of this Agreement or any of the other Repurchase Documents to the
Administrative Agent (for the account of the Buyers), (i) the Seller shall make all such deductions
and withholdings in respect of Taxes, (ii) the Seller shall pay the full amount deducted or
withheld in respect of Taxes to the relevant taxation authority or other Governmental Authority in
accordance with any applicable Legal Requirement and (iii) the sum payable by the Seller shall be
increased as may be necessary so that after the Seller has made all required deductions and
withholdings (including deductions and withholdings applicable to additional amounts payable under
this Section 7) each Buyer receives an amount equal to the sum it would have received had
no such deductions or withholdings been made in respect of Non-excluded Taxes. For purposes of
this Agreement the term “Non-excluded Taxes” means Taxes other than, in the case of any Person,
Taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by
the jurisdiction under the laws of which such Person is organized or of its applicable lending
office, or any political subdivision thereof.

7.2. Other Taxes. In addition, the Seller hereby agrees to pay any present or future stamp,
recording, documentary, excise, property or value-added taxes, or similar taxes, charges or levies
that arise from any payment made under or in respect of this Agreement or any other Repurchase
Document or from the execution, delivery or registration of, any performance under, or otherwise
with respect to, this Agreement or any other Repurchase Documents (collectively, “Other Taxes”).

 

45

 

7.3. Taxes Indemnity. The Seller hereby agrees to indemnify the Buyers and the Administrative
Agent for, and to hold each of them harmless against, the full amount of Non-excluded Taxes and
Other Taxes, and the full amount of Taxes of any kind imposed by any jurisdiction on amounts
payable under this Section 7 imposed on or paid by the Buyers or the Administrative Agent
and any liability (including penalties, additions to tax, interest and expenses) arising therefrom
or with respect thereto. The indemnity by the Seller provided for in this Section 7.3
shall apply and be
made whether or not the Non-excluded Taxes or Other Taxes for which indemnification hereunder
is sought have been correctly or legally asserted. Amounts payable by the Seller under the
indemnity set forth in this Section 7.3 shall be paid within ten (10) days from the date on
which the Administrative Agent makes written demand therefor.

7.4. Receipt. Within thirty (30) days after the date of any payment of Taxes, the Seller (or
any Person making such payment on behalf of the Seller) shall furnish to the Administrative Agent
for each Buyer’s account a certified copy of the original official receipt evidencing payment
thereof.

7.5. Non-Exempt Buyer. For purposes of this Section 7.5, the terms “United States”
and “United States person” shall have the meanings specified in Section 7701 of the Internal
Revenue Code. Each Buyer (including, for avoidance of doubt, any assignee, successor or
participant) that (i) is not incorporated under the laws of the United States, any State thereof or
the District of Columbia and (ii) whose name does not include “Incorporated”, “Inc.”,
“Corporation”, “Corp.”, “P.C.”, “insurance company” or “assurance company” (a “Non-Exempt Buyer”)
shall deliver or cause to be delivered to Seller the following properly completed and duly executed
documents:

(a) in the case of a Non-Exempt Buyer that is not a United States person, (i) a
complete and executed (x) U.S. Internal Revenue Form W-8BEN with Part II completed in which
the Buyer claims the benefits of a tax treaty with the United States providing for a zero or
reduced rate of withholding (or any successor forms thereto), including all appropriate
attachments or (y) a U.S. Internal Revenue Service Form W-8ECI (or any successor forms
thereto) and (ii) if such Non-Exempt Buyer is treated as a corporation for United States
federal tax purposes, a certificate substantially in the form of Exhibit E (a
“Corporation Tax Treatment Certificate”); or

(b) in the case of an individual, (x) a complete and executed U.S. Internal Revenue
Service Form W-8BEN (or any successor forms thereto) and a Corporation Tax Treatment
Certificate or (y) a complete and executed U.S. Internal Revenue Service Form W-9 (or any
successor forms thereto); or

(c) in the case of a Non-Exempt Buyer that is organized under the laws of the United
States, any State thereof, or the District of Columbia, (i) a complete and executed U.S.
Internal Revenue Service Form W-9 (or any successor forms thereto), including all
appropriate attachments, and (ii) if such Non-Exempt Buyer is treated as a corporation for
United States federal tax purposes, a Corporation Tax Treatment Certificate; or

(d) in the case of a Non-Exempt Buyer that (x) is not organized under the laws of the
United States, any State thereof, or the District of Columbia and (y) is treated as a
corporation for U. S. federal income tax purposes, a complete and executed U.S. Internal
Revenue Service Form W-8BEN claiming a zero rate of withholding (or any successor forms
thereto) and a Corporation Tax Treatment Certificate; or

 

46

 

(e) in the case of a Non-Exempt Buyer that (A) is treated as a partnership or other
non-corporate entity, and (B) is not organized under the laws of the United States, any
State thereof, or the District of Columbia, (x)(i) a complete and executed U.S. Internal
Revenue Service Form W-8IMY (or any successor forms thereto) (including all required
documents and attachments) and (ii) a Corporation Tax Treatment Certificate, and (y) without
duplication, with respect to each of its beneficial owners and the beneficial owners of such
beneficial owners looking through chains of owners to individuals or entities that are
treated as corporations for U.S. federal income tax purposes (all such owners, “beneficial
owners”), the documents that would be required by this Section 7.5 with respect to
each such beneficial owner if such beneficial owner were a Buyer, provided that no
such documents will be required with respect to a beneficial owner to the extent the actual
Buyer is determined to be in compliance with the requirements for certification on behalf of
its beneficial owner as may be provided in applicable U.S. Treasury regulations, or the
requirements of this Section 7.5 are otherwise determined to be unnecessary, all
such determinations under this Section 7.5 to be made in the sole discretion of
Seller, provided that each such Buyer shall be provided an opportunity to establish such
compliance as reasonable; or

(f) in the case of a Non-Exempt Buyer that is disregarded for U.S. federal income tax
purposes, the document that would be required by this Section 7.5 with respect to
its beneficial owner if such beneficial owner were a Buyer; or

(g) in the case of a Non-Exempt Buyer that (A) is not a United States person and (B) is
acting in the capacity as an “intermediary” (as defined in U.S. Treasury regulations),
(x)(i) a U.S. Internal Revenue Service Form W-8IMY (or any successor form thereto)
(including all required documents and attachments) and (ii) a Corporation Tax Treatment
Certificate, and (y) if the intermediary is a “non-qualified intermediary” (as defined in
U.S. Treasury regulations), from each person upon whose behalf the “non-qualified
intermediary” is acting the documents that would be required by this Section 7.5
with respect to each such person if each such person were a Buyer.

If the forms referred to in this Section 7.5 that are provided by a Buyer at the time such
Buyer first becomes a party to this Agreement, a successor to a Buyer or, with respect to a
permitted assignment of or a grant of a participation in the interests of a Buyer hereunder, the
effective date thereof, indicate a United States interest withholding tax rate in excess of zero,
withholding tax at such rate shall be treated as Taxes other than Non-excluded Taxes (“Excluded
Taxes”) and shall not qualify as Non-Excluded Taxes unless and until such Buyer provides the
appropriate form certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate shall be considered Excluded Taxes solely for the periods governed by such form. If, however,
on the date a Person becomes an assignee, successor or participant to this Agreement, Buyer
transferor was entitled to indemnification or additional amounts under this Section 7, then
the Buyer assignee, successor or participant shall be entitled to indemnification or additional
amounts to the extent (and only to the extent), that the Buyer transferor was entitled to such
indemnification or additional amounts for Non-excluded Taxes, and the Buyer assignee, successor or
participant shall be entitled to additional indemnification or additional amounts for any other or
additional Non-excluded Taxes.

 

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7.6. If Buyer Fails to Provide Form. For any period with respect to which a Buyer required to
do so has failed to provide Seller with the appropriate form, certificate or other document
described in Section 7.5 (other than (i) if such failure is due to a change in any
applicable Legal Requirement, or in the interpretation or application thereof, occurring after the
date on which a form, certificate or other document originally was required to be provided, (ii) if
such form, certificate or other document otherwise is not required under Section 7.5 or
(iii) if it is legally inadvisable or otherwise commercially disadvantageous for such Buyer to
deliver such form, certificate or other document), such Buyer shall not be entitled to
indemnification or additional amounts under Section 7.2 or Section 7.3 with respect
to Non-excluded Taxes imposed by the United States by reason of such failure; provided that
should a Buyer become subject to Non-excluded Taxes because of its failure to deliver a form,
certificate or other document required hereunder, Seller shall take such steps as such Buyer shall
reasonably request, to assist such Buyer in recovering such Non-excluded Taxes.

7.7. Survival. Without prejudice to the survival of any other agreement of the Seller
hereunder, the agreements and obligations of the Seller contained in this Section 7 shall
survive the termination of this Agreement. Nothing contained in this Section 7 shall
require the Buyer to make available any of its tax returns or any other information that it deems
to be confidential or proprietary.

8 Income and Escrow Payments; Control.

8.1 Income and Escrow Payments. Notwithstanding that the Buyers, the Administrative Agent and
the Seller intend that the Transactions be sales to the Buyers of the Purchased Loans, where a
particular Transaction’s term extends over an Income payment date on the Eligible Loans subject to
that Transaction, all payments and distributions, whether in cash or in kind, made on or with
respect to the Purchased Loans shall be paid directly to the Seller or its designee by the relevant
Customer, and the Administrative Agent (and the Buyers) shall have no obligation to collect or
apply any Income to prevent or reduce any Margin Deficit, unless the Seller (i) arranges for such
Income to be paid to the Administrative Agent (for Pro Rata distribution to the Buyers),
(ii) requests that the Administrative Agent apply such Income when received against the Seller’s
Margin Deficit(s) and (iii) concurrently transfers to the Administrative Agent either (x) cash or
(y) at the Administrative Agent’s option and with the Administrative Agent’s written approval,
Additional Purchased Loans, sufficient to eliminate such Margin Deficit. Amounts paid to the
Seller by the relevant Customer shall be deposited by the Seller into the Income Account within two
(2) Business Days of receipt by Seller and, as to amounts so paid to the Seller for escrow
payments, into the Escrow Account. The Income Account and the Escrow Account shall be maintained
by the Seller with a bank satisfactory to the Administrative Agent and the Syndication Agent and
shall be subject to the control of the Administrative Agent. The Income Account and Escrow Account
may be interest bearing accounts if allowed or required by applicable law. At all times prior to a
Default or Event of
Default, the Seller may have full use of all Income and amounts on deposit in the Income
Account, subject to the provisions of Section 8.2.

 

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8.2 Income and Escrow Accounts. Prior to the initial Transaction hereunder the Seller shall
establish the Income Account and the Escrow Account and shall cause the bank holding such accounts
to enter into a control agreement with the Administrative Agent providing that upon notice from the
Administrative Agent no further withdrawals or payment orders from the Seller shall be honored and
only payment and withdrawal orders from the Administrative Agent or its designee shall be honored.
Prior to the occurrence of a Default or Event of Default and so long as Seller is also the
Servicer, Seller shall make payments from the Escrow Account of all appropriate amounts payable
with respect to each Purchased Loan for taxes, insurance and other purposes for which the funds are
paid into the Escrow Account. Subject to Section 8.3, amounts on deposit in the Income
Account shall be used by the Seller to pay its fees as Servicer while it serves in such capacity,
and may be used to pay to the Administrative Agent amounts due under this Agreement for Margin
Deficit or Price Differential and for any other lawful purpose.

8.3 Income and Escrow Accounts after Default. Upon the occurrence and during the
continuation of a Default or Event of Default, the Seller shall have no right to direct withdrawal
or application of funds in the Income Account and the Escrow Account unless authorized to do so in
writing by the Administrative Agent. The Administrative Agent may cause all amounts on deposit in
the Income Account to be paid to it or its designee for application in the following order to pay
(i) accrued and unpaid Price Differential, (ii) costs, fees or other amounts due to the
Administrative Agent, Syndication Agent and Buyers under this Agreement, (iii) reduction of the
Repurchase Price of for Purchased Loans under Open Transactions, (iv) any other Obligations, and
(v) any excess over the Obligations, to the Seller. The Administrative Agent or its designee shall
direct payments from the Escrow Account for the purposes for which such funds are deposited into
the Escrow Account.

9 Facility Fee; Administrative Agent’s Fee.

9.1. Facility Fee. The Seller agrees to pay to the Administrative Agent (for Pro Rata
distribution to the Buyers) a facility fee (the “Facility Fee”) in an amount equal to the sum of
(i) one eighth of one percent (0.125%) per annum of the Maximum Aggregate Commitment for the period
from the Effective Date until the date this Agreement terminates in accordance with its terms, plus
(ii) one eighth of one percent (0.125%) per annum of the daily outstanding Purchase Price of Wet
Loans, and, without duplication, Alt-A Agency Loans, Alt-A Non-Agency Loans, HELOCS and Second
Lien Loans and Agency-eligible Non-owner Occupied Loans for periods when the Price Differential for
such Wet Loans, Alt-A Agency Loans, Alt-A Non-Agency Loans, HELOCS and Second Lien Loans and
Agency-eligible Non-owner Occupied Loans is determined by reference to the LIBOR Rate or the
Balance Funded Rate, for each calendar month or portion thereof from the Effective Date until the
date this Agreement terminates in accordance with its terms. The Facility Fee shall be payable
monthly in arrears and shall be due no later than two(2) Business Days after Administrative Agent
bills the Seller therefor. If the Maximum Aggregate
Commitment shall be increased or decreased from time to time either pursuant to a provision of
this Agreement or by separate agreement between the Buyers and the Seller (excluding, however, any
change occurring as a result of or following the occurrence of a Default or an Event of Default, in
respect of which no adjustment of the Facility Fee shall be required), the amount of the Facility
Fee shall be adjusted as of the date of such change. The Facility Fee is compensation to the Buyers
for committing to make funds available for revolving purchases of Eligible Loans on the terms and
subject to the conditions of this Agreement, and is not compensation for the use or forbearance or
detention of money. Each calculation by the Administrative Agent of the amount of the Facility Fee
shall be conclusive and binding absent manifest error.

 

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9.2. Administrative Agent’s Fee. The Seller agrees to pay to the Administrative Agent such
administrative fee and arrangement fee (the “Administrative Agent’s Fees”) in the amounts and on
the dates as are provided for in separate agreements between the Seller and the Administrative
Agent.

9.3. Arranger’s Fee. The Seller agrees to pay to J.P. Morgan Securities Inc., as the
Arranger, a fee (the “Arranger’s Fee”) in the amounts and on the dates provided in a separate
agreement between the Seller and the Arranger.

10 Security Interest.

10.1. Intent of the Parties. The parties intend that all Transactions hereunder be sales and
purchases (other than for accounting and tax purposes) and not loans; nonetheless, as a security
agreement under the UCC and as a security agreement or other arrangement or other credit
enhancement related to this Agreement and transactions hereunder as provided for in Section 101(47)
(A)(v) of the Bankruptcy Code, the Seller hereby pledges to the Administrative Agent for the
benefit of the Buyers as security for the performance by the Seller of the Obligations and hereby
grants, assigns and pledges to the Administrative Agent for the benefit of the Buyers a fully
perfected first priority security interest in all of the Purchased Loans and all Income and
proceeds from the Purchased Loans, including all of the property, rights and other items described
in the definition of “Mortgage Loan” in Section 1.1 for each such Purchased Loan and all
rights to have, receive and retain the return or refund of funds transferred from any account with
the Administrative Agent to any title company, title agent, escrow agent or other Person for the
purpose of originating or funding a Mortgage Loan that did not close (for any reason) and that
would have been a Purchased Loan if it had closed (all funds so transferred continuously remain the
property of the Administrative Agent and the Buyers until disbursed by such agent to or for the
account of the related Customer upon the closing of his or her Mortgage Loan), and in all of the
following property:

(a) With respect to the Purchased Loans.

(1) all Purchased Loans Support;

(2) all Mortgage Premises related to the Purchased Loans

(3) all rights to deliver Purchased Loans to investors and other purchasers and all
proceeds resulting from the disposition of Purchased Loans pursuant thereto, including the
Seller’s right and entitlement to receive the entire purchase price paid for Purchased Loans
sold;

(4) all Hedge Agreements relating to or constituting any and all of the foregoing or
relating to the Obligations, including all rights to payment arising under such Hedge
Agreements;

 

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(5) all Servicing Rights in respect of any of the Purchased Loans; and

(6) all of the Seller’s rights now or hereafter existing in, to or under any MBS
secured by, created from or representing any interest in any of the Purchased Loans, whether
now owned or hereafter acquired by the Seller, and whether such MBS are evidenced by book
entry or certificate (Buyers’ Administrative Agent’s ownership interest and security
interest in each MBS created from, based on or backed by Purchased Loans shall automatically
exist in, attach to, cover and affect all of the Seller’s right, title and interest in that
MBS when issued and its proceeds and the Buyers’ Administrative Agent’s ownership interest
and security interest in the Purchased Loans from which such MBS was so created shall
automatically terminate and be released when such MBS is issued, subject to automatic
reinstatement if such issuance is voided or set aside by any court of competent
jurisdiction), all right to the payment of monies and non-cash distributions on account of
any of such MBS and all new, substituted and additional securities at any time issued with
respect thereto;

(b) Related Accounts, Payment Intangibles, General Intangibles

(1) all accounts, payment intangibles, general intangibles, instruments, documents
(including documents of title), chattel paper, contract rights and proceeds, whether now or
hereafter existing (including all of the Seller’s present and future rights to have and
receive interest and other compensation, whether or not yet accrued, earned, due or
payable), under or arising out of or relating to the Purchased Loans;

(2) all instruments, documents or writings evidencing any such accounts, payment
intangibles, general intangibles or proceeds or evidencing any monetary obligation under, or
security interest in, any of the Purchased Loans, all other papers delivered to the
Administrative Agent or the Custodian, and all other rights transferred to the
Administrative Agent, in respect of any of the Purchased Loans, including, without
limitation, the right to collect, have and receive all insurance proceeds (including, but
not limited to, casualty insurance, mortgage insurance, pool insurance and title insurance
proceeds) and condemnation awards or payments in lieu of condemnation which may be or become
payable in respect of the Mortgaged Premises securing or intended to secure
any Purchased Loan, and other personal property of whatever kind relating to any of the
Purchased Loans, in each case whether now existing or hereafter arising, accruing or
acquired;

(3) all security for or claims against others in respect of the Purchased Loans;

(4) all proceeds and rights to proceeds of any sale or other disposition of any or all
of the Purchased Loans; and

 

51

 

(5) the nonexclusive right to use (in common with the Seller and any other secured
party that has a valid and enforceable security interest therein and that agrees that its
security interest is similarly nonexclusive) the Seller’s operating systems to manage and
administer the Purchased Loans and any of the related data and information described above,
or that otherwise relates to the Purchased Loans, together with the media on which the same
are stored to the extent stored with material information or data that relates to property
other than the Purchased Loans (tapes, discs, cards, drives, flash memory or any other kind
of physical or virtual data or information storage media or systems, and the Seller’s rights
to access the same, whether exclusive or nonexclusive, to the extent that such access rights
may lawfully be transferred or used by the Seller’s permittees), and any computer programs
that are owned by the Seller (or licensed to the Seller under licenses that may lawfully be
transferred or used by the Seller’s permittees) and that are used or useful to access,
organize, input, read, print or otherwise output and otherwise handle or use such
information and data;

(c) Repurchase Settlement Account, Operating Account and other accounts. the Repurchase
Settlement Account, the Operating Account, the Income Account and the Escrow Account and all cash
and all securities and other property from time to time on deposit in each such account;

(d) Loan Records. all Loan Records;

(e) Other Rights. all rights to have and receive any of the Purchased Loans described above,
all accessions or additions to and substitutions for any of such Purchased Loans, together with all
renewals and replacements of any of such Purchased Loans, all other rights and interests now owned
or hereafter acquired by the Debtor/Seller in, under or relating to any of such Purchased Loans or
referred to above and all proceeds of any of such Purchased Loans; and

(f) Proceeds. all proceeds of all the foregoing.

The Seller agrees to do such things as applicable Law requires to maintain the security
interest of the Administrative Agent in all of the Purchased Loans with respect to all such
Transactions and all Income and proceeds from the Purchased Loans that are the subject matter of
such Transactions and all of the other collateral described above in this Section 10.1 as a
perfected first priority Lien at all times. The Seller hereby authorizes the Administrative Agent
to file any financing or continuation statements under the applicable Uniform Commercial Code to
perfect or continue such security interest in any and all applicable filing offices. The Seller
shall pay all customary fees and expenses associated with perfecting such security interest
including the costs of filing financing and continuation statements under the Uniform
Commercial Code and recording assignments of Mortgages as and when required by the
Administrative Agent in its reasonable discretion.

11 Substitution.

11.1. Seller May Substitute Other Mortgage Loans with Notice to and Approval of Administrative
Agent. So long as no Event of Default has occurred and is continuing and no Margin Deficit exists
or occurs as a consequence thereof, subject to agreement with and acceptance by, and upon notice
to, the Administrative Agent, the Seller may substitute Mortgage Loans substantially similar to the
Purchased Loans for any Purchased Loans. If the Seller gives notice to the Administrative Agent at
or before 12:00 noon on a Business Day, the Administrative Agent may elect, by the close of
business on the Business Day notice

 

52

 

 is received or by the close of the next Business Day if notice
is given after 12:00 noon on such day, not to accept such substitution. If such substitution is
accepted by the Administrative Agent, such substitution shall be made by the Seller’s transfer to
Administrative Agent of such other Mortgage Loans on a servicing released basis and the
Administrative Agent’s transfer to the Seller of such Purchased Loans, and after such substitution,
the substituted Mortgage Loans shall be deemed to be Purchased Loans. If the Administrative Agent
elects not to accept such substitution, the Seller shall offer the Administrative Agent and the
Buyers the right to terminate the related Transaction.

11.2. Payment to Accompany Substitution. If the Seller exercises its right to substitute or
terminate under this Section 11, the Seller shall be obligated to pay to the Administrative
Agent (for Pro Rata distribution to the Buyers) by the close of the Business Day of such
substitution or termination, as the case may be, an amount equal to the sum of (x) actual cost
(including all customary fees, expenses and commissions) to the Administrative Agent and the Buyers
of (i) entering into replacement Transactions; (ii) entering into or terminating hedge transactions
and/or (iii) terminating Transactions or substituting securities in like transactions with third
parties in connection with or as a result of such substitution or termination, and (y) to the
extent the Administrative Agent determines not to enter into replacement Transactions, the loss
incurred by the Administrative Agent and the Buyers directly arising or resulting from such
substitution or termination. The foregoing amounts shall be solely determined and calculated by
the Administrative Agent and the applicable Buyers in good faith.

12 Payment and Transfer.

12.1. Immediately Available Funds; Notice to Custodian. All transfers of funds hereunder
shall be in immediately available funds. All Eligible Loans transferred by one party hereto to any
other party shall be transferred by notice to the
Custodian to the effect that the Custodian is then holding for the benefit of the transferee
the related documents and assignment forms delivered to it under the Custody Agreement.

12.2. Payments to the Administrative Agent. Except as otherwise specifically provided in this
Agreement, all payments required by this Agreement or the other Repurchase Documents to be made to
the Administrative Agent shall be paid to the Administrative Agent for deposit in the Repurchase
Settlement Account by no later than 1:00 p.m. on the day when due (funds received after the
applicable deadline shall be conclusively deemed received on the next following Business Day unless
the Administrative Agent, shall agree otherwise) and without set-off, counterclaim or deduction, in
lawful money of the United States of America in immediately available funds at the principal
Minneapolis branch of the Administrative Agent, at 800 Nicollet Mall, Minneapolis, MN 55402, or by
fed funds wire transfer to:

U.S. Bank National Association

800 Nicollet Mall

Minneapolis, MN 55402

ABA number 091000022

Attention: Mortgage Banking Services

Account number. 104756234365

For Credit — DHI Mortgage Company, Ltd. Repurchase Settlement Account

 

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or at such other place as the Administrative Agent shall designate from time to time. Whenever any
payment to be made under this Agreement or any of the other Repurchase Documents shall be stated to
be due on a day that is not a Business Day, the due date for that payment shall be automatically
extended to the next day that is a Business Day, and (if applicable) Price Differential at the
applicable rate (determined in accordance with this Agreement) shall continue to accrue during the
period of such extension. Unless the Administrative Agent shall agree otherwise, funds received by
the Administrative Agent after 1:00 p.m. on a Business Day shall be deemed for all purposes to have
been paid by the Seller on the next succeeding Business Day.

12.3. If Payment Not Made When Due. If and to the extent any payment is not made when due
under this Agreement or any of the other Repurchase Documents, the Seller authorizes the
Administrative Agent and each Buyer (for the Pro Rata account and benefit of all of the Buyers)
then or at any time thereafter to charge any amounts so due and unpaid against any or all of the
Seller’s accounts with the Administrative Agent or any of the Buyers; provided that such
right to charge the Seller’s accounts shall not apply to any escrow, trust or other deposit
accounts designated as being held by the Seller on behalf of third party owners of the escrowed
funds other than Affiliates of the Seller. The Administrative Agent agrees to use reasonable
efforts to promptly advise the Seller of any charge made pursuant to this Section, but its failure
to do so will not affect the validity or collectability of such charge. Neither the Administrative
Agent nor any Buyer shall have any obligation to charge any Seller account, merely the right to do
so.

12.4. Payments Valid and Effective. Each payment received by the Administrative Agent in
accordance with this Agreement is valid and effective to satisfy and discharge the Seller’s
liability under the Repurchase Documents to the extent of the payment.

12.5. Pro Rata Distribution of Payments. The Administrative Agent shall distribute all
payments of Repurchase Price (whether voluntary or involuntary and from whatever source) received
to the Buyers Pro Rata with their respective ownership interests in the Purchased Loans as of the
date the payment is credited in accordance with this Agreement. The distribution from the
Administrative Agent to each Buyer shall be made by the Administrative Agent’s initiating a federal
funds wire transfer by 3:00 p.m. on the Business Day when such funds were received, in immediately
available funds directly to such Buyer or to such account at another financial institution as is
designated from time to time by such Buyer in writing. If the Administrative Agent shall fail or
refuse to so make the distribution on the same Business Day as the payment was received, then, as
agreed full and adequate compensation therefor, the Administrative Agent shall pay the affected
Buyer(s) interest on the undistributed funds at the Federal Funds Rate.

13 Segregation of Documents Relating to Purchased Loans.

All documents relating to Purchased Loans in the possession of the Seller or its designee
(including its agent, or any subservicer) shall be segregated from other documents and securities
in its or its designee’s possession and shall be identified as being owned by the Buyers and held
by the Administrative Agent on behalf of the Buyers (which shall be referenced in the relevant
books and records as “U.S. Bank National Association, Administrative Agent”) and subject to this
Agreement. Segregation may be accomplished by appropriate identification of ownership on the books
and records of the holder of such documents, including MERS, a documents custodian, a financial or
securities intermediary or a clearing corporation. All of
Seller’s interest in the Purchased Loans shall pass to the Buyers on the Purchase Date and nothing in this Agreement
shall preclude the Administrative Agent and the Buyers, in each case with the Buyers’ consent, from
engaging with others in repurchase transactions with the Purchased Loans or otherwise selling,
transferring, or pledging or hypothecating, the Purchased Loans, but no such transaction shall
relieve the Buyers of their obligations to transfer Purchased Loans to the Seller pursuant to
Section 3 or 18, or of the Administrative Agent’s obligation to credit or pay
Income to, or apply Income to the obligations of, the Seller pursuant to Section 8.

 

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14 Conditions Precedent.

14.1. Initial Purchase. The obligations of the Buyers (and the Administrative Agent on the
Buyers’ behalf) to make the initial purchase under this Agreement are subject to the Seller’s
fulfillment of the following conditions precedent:

(a) the Administrative Agent shall have received (or be satisfied that it will receive
by such deadline as the Administrative Agent shall specify) the following, all of which must
be satisfactory in form and content to the Administrative Agent:

(1) this Agreement duly executed by the parties;

(2) UCC financing statements for the Purchased Loans covered by this Agreement,
each duly authorized by the Seller;

(3) a current UCC search report of a UCC filings search in the office of the
Secretary of State of the State of Texas;

(4) the Custody Agreement duly executed by the Administrative Agent, the Seller
and the Custodian;

(5) copies of the Seller’s (i) limited partnership agreement, (ii) certificate
of limited partnership issued by the state of Texas, (iii) articles of incorporation
certified by the Secretary of State of the State of the Seller’s General Partner and
(ii) bylaws or regulations and all amendments certified by its corporate secretary
or assistant secretary, as well as any other information required by Section 326 of
the USA Patriot Act or necessary for the Administrative Agent and the Buyers to
verify the identity of the Seller as required by Section 326 of the USA Patriot Act
in accordance with the requirements summarized in the notice given in Section
37;

(6) the Electronic Tracking Agreement duly executed by the Seller, MERS,
MERSCorp., Inc. and the Administrative Agent.

(7) evidence reasonably satisfactory to the Administrative Agent (i) as to the
due filing and recording in all appropriate offices of all financing statements,
(ii) if there are any Purchased Loans that require the Buyers’ interest to be noted
by book entry, that such book entry has been duly made and (iii) if there is any
“investment property” under the UCC of the State of New York or other applicable
Law, that such instruments as are necessary to give the
Administrative Agent “control” of such investment property have been duly
executed by the Seller and the relevant securities intermediary.

 

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(8) a certificate of existence or authority and good standing for the Seller
issued by the Secretary of State of Texas;

(9) original resolutions of the Seller’s general partner’s board of directors,
certified as of the initial Purchase Date by the Seller’s general partner’s
corporate secretary or assistant secretary or other authorized officer, authorizing
the execution, delivery and performance by the Seller of this Agreement, the Custody
Agreement and all other Repurchase Documents to be delivered by the Seller pursuant
to this Agreement;

(10) a certificate of the Seller’s general partner’s corporate secretary or
assistant secretary or other authorized officer as to (i) the incumbency of the
officers of the Seller executing this Agreement, the Custody Agreement, each
applicable Request/Confirmation and all other Repurchase Documents executed or to be
executed by or on behalf of the Seller and (ii) the authenticity of their
signatures, and specimens of their signatures shall be included in such certificate
or set forth on an exhibit attached to it, (the Administrative Agent, the Buyers and
the Custodian shall be entitled to rely on that certificate until the Seller has
furnished a new certificate to the Administrative Agent);

(11) an Officer’s Certificate for the Seller dated the initial Purchase Date
and certifying truthfully that, (i) after giving effect to the Transaction to occur
on that Purchase Date, no Default or Event of Default will exist, (ii) all of the
representations and warranties made by the Seller in the Repurchase Documents are
true and correct as of the Effective Date and (iii) there has been no material
adverse change since the Statement Date in any of the Central Elements in respect of
the Seller or any of its Subsidiaries;

(12) copies of an errors and omissions insurance policy or mortgage impairment
insurance policy and blanket bond coverage policy, or certificates in lieu of
policies, providing such insurance coverage as is customary for members of the
Seller’s industry;

(13) a favorable written opinion of counsel to the Seller dated on or before
the initial Purchase Date, addressed to the Administrative Agent and the Buyers and
in form and substance reasonably satisfactory to the Administrative Agent and its
legal counsel (a form containing opinions required to be included therein are set
forth in Exhibit B), specifically stating that the Administrative Agent, the
Buyers and any person or entity that purchases the Eligible Loans from the Buyers
can rely on it; and

 

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(14) payment to the Administrative Agent, the Arranger or the Custodian, as
applicable, of the Facility Fee, the Administrative Agent’s Fee, the Arranger’s Fee,
the Custodian’s Fee and all other fees and expenses (including the
disbursements and reasonable fees of the Administrative Agent’s attorneys) of
the Administrative Agent and the Buyers payable by Seller pursuant to Section
9 accrued and billed for to the date of the Seller’s execution and delivery of
this Agreement.

(15) control agreements in form and substance reasonably satisfactory to the
Administrative Agent establishing its control of the Income Account, Escrow Account,
Operating Account, Repurchase Settlement Account and the Funding Account.

(b) All directors and officers of the Seller’s general partner, all partners of the
Seller and all Affiliates of the Seller or any of its Subsidiaries, to whom or which the
Seller shall be indebted either for borrowed money or for any other obligation of Fifty
Thousand Dollars ($50,000) or more as of the date of this Agreement, excluding salary, bonus
or other compensation obligations, shall have caused such Debt to be Qualified Subordinated
Debt, by executing and causing to be delivered to the Administrative Agent a Subordination
Agreement and taking all other steps, if any, required to cause such Debt to be Qualified
Subordinated Debt, and the corporate secretary of the Seller shall have certified each such
Subordination Agreement executed to satisfy the requirements of this Section 14.1(b)
to be true, complete and in full force and effect as of the date of the initial purchase.

14.2. Each Purchase. The obligations of the Buyers (and the Administrative Agent on the
Buyers’ behalf) to make any purchase under this Agreement are also subject to the satisfaction, as
of each Purchase Date, of the following additional conditions precedent:

(a) The Seller shall have delivered (i) to the Administrative Agent a
Request/Confirmation and its related Mortgage Loan Transmission File and (ii) to the
Custodian, such Mortgage Loan Transmission Files for the new Loans to be purchased.

(b) Unless the requested Transaction is for the purchase of only Wet Loans, the
Custodian shall have issued its Custodian’s Exception Report (as defined in the Custody
Agreement) relating to the Purchased Loans then owned by the Buyers — the Administrative
Agent agrees that, for so long as it is the Custodian, it will not unreasonably withhold or
delay issuing any such Custodian’s Exception Report.

(c) The representations and warranties of the Seller contained in this Agreement and
the other Repurchase Documents shall be true and correct in all material respects as if made
on and as of each Purchase Date unless specifically stated to relate to an earlier date.

(d) The Seller shall have performed all agreements to be performed by it under this
Agreement, the Custody Agreement and all other Repurchase Documents, as well as under all
Investor Commitments that the Seller has represented to the Administrative Agent and the
Buyers cover any of the Purchased Loans, and after the requested Transaction shall have been
executed, no Default or Event of Default will exist
that the Administrative Agent has not declared in writing to have been waived or cured,
nor will any default exist under any such Investor Commitments.

 

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(e) The Seller shall not have incurred any material liabilities, direct or contingent,
other than in the ordinary course of its business, and no liabilities (whether or not in the
ordinary course of business) that adversely and materially affect any of the Central
Elements in respect of the Seller or any of its Subsidiaries since the dates of the Seller’s
Financial Statements most recently theretofore delivered to the Buyers.

(f) The Administrative Agent shall have received from counsel for the Seller, if
requested by the Administrative Agent, an updated favorable opinion or opinions, in form and
substance satisfactory to the Administrative Agent addressed to the Buyers and the
Administrative Agent and dated as of the relevant Purchase Date, covering and updating such
matters that were originally addressed in the opinion issued pursuant to Section
14.1(a)(13) as the Administrative Agent may reasonably request.

(g) The Seller shall have paid the Facility Fee and the Administrative Agent’s Fee then
due and payable in accordance with Section 9.1 and Section 9.2 and the
Custodian’s Fee pursuant to the Custody Agreement.

(h) Prior to the execution of the requested Transaction, no Default or Event of Default
shall have occurred or will occur after giving effect to such Transaction, that the
Administrative Agent has not declared in writing to have been waived or cured.

(i) The requested Transaction will not result in the violation of any applicable Law.

(j) The Administrative Agent and each Buyer shall have received such other documents,
if any, as shall be specified by the Administrative Agent or any Buyer.

(k) No Margin Deficit exists or will exist after giving effect to such Transaction.

(l) The Termination Date shall not have occurred.

(m) After giving effect to such Transaction, none of the sublimits set forth in
Section 4.2 shall be exceeded.

(n) For any Transaction involving a Wet Loan, (i) unless the closing title agency or
attorney has previously signed an agreement with the Administrative Agent acknowledging
funds received from the Administrative Agent for the purchase of such Wet Loan are held by
such title agency or attorney in trust for and as the property of the Administrative Agent
until such Wet Loan is closed and Purchased by the Administrative Agent for the benefit of
the Buyers and that any such funds so received shall be returned to the Administrative Agent
for the benefit of the Buyers if the Mortgage Loan that is proposed to be so purchased as a
Wet Loan does not close on the proposed Purchase Date, (ii) the Seller shall have delivered
to such closing title agency or attorney an instruction letter stating that funds received
from the Administrative Agent for the
purchase of such Wet Loan are held by such title agency or attorney in trust for and as
the property of the Administrative Agent until such Wet Loan is closed and Purchased by the
Administrative Agent for the benefit of the Buyers and that any such funds so received shall
be returned to the Administrative Agent for the benefit of the Buyers if the Mortgage Loan
that is proposed to be so purchased as a Wet Loan does not close on the proposed Purchase
Date

 

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15 Representations, Warranties and Covenants.

15.1. Buyers, Administrative Agent and Seller Representations. The Buyers, the Administrative
Agent and Seller each represents and warrants, and shall on and as of the Purchase Date of any
Transaction be deemed to represent and warrant, to the other that:

(a) it is duly authorized to execute and deliver this Agreement, to enter into the
Transactions and to perform its obligations hereunder and has taken all necessary action to
authorize such execution, delivery and performance;

(b) it will engage in such Transactions as principal (or, in the case of the
Administrative Agent, and in respect of any other party if agreed in writing in advance of
any Transaction by the other parties hereto, as Administrative Agent for a disclosed
principal);

(c) the person signing this Agreement on its behalf is duly authorized to do so on its
behalf (or on behalf of any such disclosed principal);

(d) it has obtained all authorizations of any governmental body required in connection
with this Agreement and the Transactions and such authorizations are in full force and
effect; and

(e) the execution, delivery and performance of this Agreement and the Transactions
hereunder will not violate any law, ordinance, charter, by-law or rule applicable to it or
any agreement by which it is bound or by which any of its assets are affected.

15.2. Additional Seller Representations. With regard to:

(i) Purchased Loans, on and as of the Purchase Date of any Transaction;

(ii) Eligible Loans substituted pursuant to Section 11, on and as of the date
of their substitution; and

(iii) Additional Purchased Loans submitted pursuant to Section 6.1, on and as
of the date of their transfer to the Custodian

 

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the Seller hereby represents and warrants to the Buyers and the Administrative Agent, as follows:

(a) Documents Genuine. The documents delivered or disclosed by the Seller to the
Administrative Agent or the Buyers pursuant to this Agreement or the Custody Agreement are
either original documents or genuine and true copies thereof.

(b) No Securities to be Acquired with Purchased Loan Sale Proceeds. None of the
Purchase Price for any Eligible Loan will be used either directly or indirectly to acquire
any security, as that term is defined in Regulation T, and the Seller has not taken any
action that might cause any Transaction to violate any regulation of the Federal Reserve
Board.

(c) Organization; Good Standing; Subsidiaries. The Seller is a limited partnership
duly formed, validly existing and in good standing under the laws of the State of Texas, and
each of the Seller’s Subsidiaries is a corporation, partnership or limited liability company
duly formed, validly existing and in good standing under the laws of the jurisdiction of its
incorporation, formation or organization. The Seller has furnished to the Administrative
Agent a true and complete copy of its Organizational Documents and those of the General
Partner as in effect as of the date of this Agreement, including all amendments thereto, and
agrees to furnish to the Administrative Agent a true and complete copy of any amendment
adopted after the Effective Date promptly after it is adopted. The Seller and its
Subsidiaries each has the full legal power and authority to own its properties and to carry
on its business as currently conducted and each is duly qualified to do business as a
limited partnership or foreign corporation or (in the case of any limited liability company
Subsidiaries) limited liability company and in good standing in each jurisdiction in which
the ownership of its property or the transaction of its business makes such qualification
necessary, except in jurisdictions, if any, where a failure to be qualified, licensed or in
good standing could not reasonably be expected to have a material adverse effect on any of
the Central Elements in respect of the Seller or any of its Subsidiaries. The Seller does
not have any Subsidiaries except as set forth on Exhibit D or as have been disclosed
by the Seller to the Administrative Agent in writing after the Effective Date. Exhibit
D states the name of each such Subsidiary as of the Effective Date, place of
organization, each state in which it is qualified as a foreign entity and the percentage
ownership of the capital stock or other indicia of equity of each such Subsidiary by the
Seller.

(d) Authorization and Enforceability. The Seller has the power and authority to
execute, deliver and perform this Agreement, the Custody Agreement and all other Repurchase
Documents to which it is a party or in which it joins or has joined. The execution,
delivery and performance by the Seller of this Agreement, the Custody Agreement and all
other Repurchase Documents to which it is a party have each been duly and validly authorized
by all necessary corporate action on the part of the Seller (none of which has been modified
or rescinded, and all of which are in full force and effect) and do not and will not
(i) conflict with or violate any Legal Requirement, (ii) conflict with or violate the
Organizational Documents of the Seller, (iii) conflict with or result in a breach of or
constitute a default under any agreement, instrument or

 

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 indenture binding on the Seller or (iv) require any consent under any such agreement, instrument or indenture, where the
conflict, violation, breach, default or nonconsent could reasonably be expected to have a
material adverse effect on any of the Central Elements
 in respect of the Seller or any of its Subsidiaries, or result in the creation of any
Lien upon any property or assets of the Seller, or result in or permit the acceleration of
any debt of the Seller pursuant to any agreement, instrument or indenture to which the
Seller is a party or by which the Seller or its property may be bound or affected. This
Agreement, the Custody Agreement and all other Repurchase Documents constitute the legal,
valid, and binding obligations of the Seller enforceable in accordance with their respective
terms, except as limited by bankruptcy, insolvency or other such laws affecting the
enforcement of creditors’ rights generally.

(e) Approvals. Neither the execution and delivery of this Agreement, the Custody
Agreement and all other Repurchase Documents nor the performance of the Seller’s obligations
under such Repurchase Documents requires any license, consent, approval or other action of
any state or federal agency or governmental or regulatory authority other than (i) those
that have been obtained or will be obtained by the time required and which remain in full
force and effect, (ii) those for which the Seller’s failure to obtain them could not
reasonably be expected to have a material adverse effect on any of the Central Elements in
respect of the Seller or any of its Subsidiaries and (iii) the filing of any financing
statements.

(f) Financial Condition. The consolidated balance sheet of the Seller (and, to the
extent applicable, the Seller’s consolidated Subsidiaries) and the related statements of
income, changes in stockholders’ equity and cash flows (“Financial Statements”) for the
fiscal year ended on the Statement Date (the “Statement Date Financial Statements”)
heretofore furnished to the Administrative Agent and the Buyers, fairly present the
financial condition of the Seller (and Seller’s consolidated Subsidiaries) as of the
Statement Date and the results of their operations for the fiscal period ended on the
Statement Date. On the Statement Date, the Seller did not have either any known material
liabilities, direct or indirect, fixed or contingent, matured or unmatured, other than the
contingent liabilities (if any) set forth on Schedule 15.2(f) and contingent
liability on endorsements of negotiable instruments for deposit or collection in the
ordinary course of business, or any known material liabilities for sales, long-term leases
or unusual forward or long-term commitments, which are not disclosed by the Statement Date
Financial Statements or reserved against in them or that have not been otherwise disclosed
to the Buyer in writing. Each of the Seller and each of its Subsidiaries is Solvent, and
since the Statement Date, (i) there has been no material adverse change in any of the
Central Elements in respect of the Seller or any of its Subsidiaries, nor is the Seller
aware of any state of facts which (with or without notice, the lapse of time or both) would
or could reasonably be expected to result in any such material adverse change, and
(ii) there have been no unrealized or anticipated losses from any loans, advances or other
commitments of the Seller which have resulted in a material adverse change in the Central
Elements in respect of the Seller or any of its Subsidiaries, except for the material
adverse changes and losses (if any) that are summarized in Schedule 15.2(f).

 

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(g) Litigation. Except as disclosed on Schedule 15.2(g) or except as disclosed
in the Statement Date Financial Statements or the most recent Financial Statements furnished
to the Administrative Agent and the Buyers (whichever is more current), there are no
actions, claims, suits or proceedings pending, or to the knowledge of the Seller,
threatened or reasonably anticipated against or affecting the Seller or any of its
Subsidiaries in any court, before any other Governmental Authority or before any arbitrator
or in any other dispute resolution forum which, if adversely determined, could reasonably be
expected to result in a material adverse effect on any of the Central Elements in respect of
the Seller or any of its Subsidiaries.

(h) Licensing. The Seller, and any subservicer of its Mortgage Loans are duly
registered as mortgage lenders and servicers in each state in which Mortgage Loans have been
or are from time to time originated, to the extent such registration is required by any
applicable Legal Requirement, except where the failure to register could not reasonably be
expected to result in a material adverse effect on any of the Central Elements in respect of
the Seller or any of its Subsidiaries.

(i) Compliance with Applicable Laws. Neither the Seller nor any of its Subsidiaries is
in violation of any provision of any law, or any judgment, award, rule, regulation, order,
decree, writ or injunction of any court, other Governmental Authority or public regulatory
body that could reasonably be expected to have a material adverse effect on any of the
Central Elements in respect of the Seller or any of its Subsidiaries.

(j) Regulation U. The Seller is not engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or carrying
Margin Stock, and no part of the proceeds of any Transactions directly or indirectly made
available to or received by the Seller or for its account will be used, directly or
indirectly, for the purpose of purchasing or carrying any Margin Stock or to extend credit
to others for the purpose of purchasing or carrying any Margin Stock or for the purpose of
reducing or retiring any debt which was originally incurred to purchase or carry any Margin
Stock or to extend credit to others for the purpose of purchasing or carrying any Margin
Stock or which would constitute this transaction a “purpose credit” within the meaning of
Regulation U, as now or hereafter in effect.

(k) Investment Company Act. The Seller is not subject to the rules governing an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

(l) Payment of Taxes. All tax returns required to be filed by the Seller and each
Subsidiary in any jurisdiction have been filed or extended and all taxes, assessments, fees
and other governmental charges upon the Seller and each Subsidiary or upon any of its
properties, income or franchises have been paid prior to the time that such taxes could give
rise to a Lien thereon, unless protested in good faith by appropriate proceedings and with
respect to which reserves in conformity with GAAP have been established on the books of the
Seller or such Subsidiary. Neither the Seller nor any Subsidiary has any knowledge of any
proposed tax assessment against the Seller or any Subsidiary.

(m) Custody Agreement. The Custody Agreement is or when executed will be currently in
full force and effect and the Seller is or when executed will be in compliance with all of
its obligations, covenants or conditions contained in the Custody Agreement.

 

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(n) Agreements. Neither the Seller nor any of its Subsidiaries is a party to any
agreement, instrument or indenture or subject to any restriction, in each case materially
and adversely affecting any of the Central Elements in respect of the Seller or any of its
Subsidiaries except as disclosed in (i) the Statement Date Financial Statements, or
(ii) Schedule 15.2(f). Neither the Seller nor any Subsidiary is in default in the
performance, observance or fulfillment of any of its obligations, covenants or conditions
contained in any agreement, instrument or indenture that could reasonably be expected to
have a material adverse effect on any of the Central Elements in respect of the Seller or
any of its Subsidiaries. No holder of the Seller’s or any such Subsidiary’s debt or other
obligations has given notice of any asserted default that could reasonably be expected to
have a material adverse effect on any of the Central Elements in respect of the Seller or
any of its Subsidiaries. No liquidation or dissolution of the Seller is pending or, to the
Seller’s knowledge, threatened and no liquidation or dissolution of any Subsidiary is
pending or threatened that could reasonably be expected to have a material adverse effect on
any of the Central Elements in respect of the Seller or any of its Subsidiaries. No
receivership, insolvency, bankruptcy, reorganization or other similar proceedings relative
to the Seller or any of its properties is pending, or to the Seller’s knowledge, threatened.
No receivership, insolvency, bankruptcy, reorganization or other similar proceedings
relative to any Subsidiary of the Seller or any of its properties is pending, or to the
Seller’s knowledge, threatened that could reasonably be expected to have a material adverse
effect on any of the Central Elements in respect of the Seller or any of its Subsidiaries.

(o) Title to Properties. The Seller and each of its Subsidiaries has good, valid,
insurable (in the case of real property) and marketable title to all of its material
Properties and assets (whether real or personal, tangible or intangible) that are reflected
on or referred to in the Statement Date Financial Statements or in the more current
Financial Statements (if any) most recently furnished to the Buyer after the Effective Date,
except for such properties and assets as have been disposed of since the date of such
current Financial Statements either in the ordinary course of business or because they were
no longer used or useful in the conduct of its business, and all such Properties and assets
are free and clear of all Liens except for (i) the lien of current (nondelinquent) real and
personal property taxes and assessments, (ii) covenants, conditions and restrictions, rights
of way, easements and other matters to which like properties are commonly subject that do
not materially interfere with the use of the property as it is currently being used and
(iii) such other Liens, if any, as are disclosed in such Financial Statements or on
Schedule 15.2 (o) and Permitted Encumbrances.

(p) The Seller’s Address. The Seller’s chief executive office and principal place of
business are at 12357 Riata Trace Parkway, Suite C-150, Austin, TX 78727 or at such other
address as shall have been set forth in a written notice to the Administrative Agent given
subsequent to the Effective Date and at least ten (10) Business Days before such notice’s
effective date.

(q) ERISA. The Seller does not maintain any ERISA Plans and shall not adopt or agree
to maintain or contribute to an ERISA Plan. The Seller shall promptly notify Administrative
Agent and each Buyer in writing in the event an ERISA Affiliate adopts
an ERISA Plan. The Seller is not an employer under any Multiemployer Plan or any other
Plan subject to Title IV of ERISA.

 

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(r) Commissions. Neither Seller nor any of its Affiliates have dealt with any broker,
investment banker, Administrative Agent or other person, except for the Administrative Agent
and the Buyers, who may be entitled to any commissions or compensation in connection with
the sale of Purchased Loans pursuant to this Agreement.

(s) Full Disclosure. Each material fact or condition relating to the Repurchase
Documents and the Central Elements has been disclosed in writing to the Administrative Agent
and the Syndication Agent. All information previously furnished by the Seller and its
Restricted Subsidiaries to the Administrative Agent and the Syndication Agent in connection
with the Repurchase Documents was and all information furnished in the future by the Seller
and its Restricted Subsidiaries to the Administrative Agent, Syndication Agent or Buyers
will be true and accurate in all material respects or based on reasonable estimates on the
date the information is stated or certified. To the best knowledge of the Seller, neither
the financial statements referred to in Section 15.2(f) , nor any
Request/Confirmation, market analysis report, officer’s certificate or any other report or
statement delivered by the Seller and its Restricted Subsidiaries to the Administrative
Agent and Syndication Agent in connection with this Agreement, contains any untrue statement
of material fact.

15.3. Special Representations Relating to the Purchased Loans. The representations and
warranties concerning each Purchased Loan, as set forth on Schedule 15.3 hereto, are
incorporated herein.

15.4. Survival. All representations and warranties by the Seller shall survive delivery of
the Repurchase Documents and the sales of the Purchased Loans, and any investigation at any time
made by or on behalf of the Buyers or the Administrative Agent shall not diminish any Buyer’s or
the Administrative Agent’s right to rely on them.

16 Affirmative Covenants.

The Seller agrees that, for so long as the Commitments are outstanding or either (i) there are
any Purchased Loans that have not been repurchased by the Seller or (ii) any of the Seller’s
Obligations remain to be paid or performed under this Agreement or any of the other Repurchase
Documents:

16.1. Weekly Market Analysis Report. It will provide, weekly no later than the fourth
Business Day of each week, or more frequently if requested by the Administrative Agent or
Syndication Agent, a market analysis report in the form of a loan tape submitted electronically
providing the information set forth on, and substantially in the format of, Schedule
16.1.

 

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16.2. Office of Foreign Assets Control and USA Patriot Act.

(a) The Seller will not knowingly directly or indirectly use any of the proceeds from
the sale of the Purchased Loans, or lend, contribute or otherwise make
available any such proceeds to any subsidiary, joint venture partner or other person or
entity, for the purpose of financing the activities of any person or entity that is subject
to sanctions under any program administered by the Office of Foreign Assets Control of the
United States Department of the Treasury, including those implemented by regulations
codified in Subtitle B, Chapter V, of Title 31, Code of Federal Regulations.

(b) The Seller will not (i) be or become subject at any time to any law, regulation or
list of any government agency (including the U.S. Office of Foreign Asset Control list) that
prohibits or limits the Buyers or the Administrative Agent from entering into any
Transaction with Seller or from otherwise conducting business with Seller, or (ii) fail to
provide documentary and other evidence of the Seller’s identity as may be requested by the
Administrative Agent or any Buyer at any time to enable the Administrative Agent and Buyers
to verify the Seller’s identity or to comply with any applicable law or regulation,
including Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

16.3. Financial Statements. The Seller will deliver to the Administrative Agent who will post
the same for viewing by all Buyers on a secure internet site within one Business Day of receipt:

(a) As soon as available and in any event within thirty (30) days after the end of each
month (including each quarter end and year end month), Financial Statements for the Seller
and its consolidated Subsidiaries for the month just ended, all in reasonable detail, and
certified by its chief financial officer that, such Financial Statements were prepared in
accordance with GAAP and present fairly in all material respects the Seller’s and its
consolidated Subsidiaries’ financial condition as of the date thereof and the results of
their operations for the period covered, subject, however, to adjustments required by FAS-91
and normal year-end audit adjustments and the omission of notes to the Financial Statements.

(b) As soon as available and in any event within ninety (90) days after the close of
each of its fiscal years, audited consolidated and consolidating Financial Statements for
the Seller and its consolidated Subsidiaries for such year, and the related balance sheet as
at the end of such year (setting forth in comparative form the corresponding figures as of
the end of and for the preceding fiscal year), all in reasonable detail, prepared in
accordance with GAAP and with all notes, and accompanied by:

(1) a report and clean and unqualified opinion of a firm of independent
certified public accountants of recognized standing selected by the Seller and
acceptable to the Administrative Agent and the Syndication Agent (as of the
Effective Date, Ernst & Young is acceptable to the Administrative Agent and
Syndication Agent), stating that such accountants have audited such Financial
Statements in accordance with generally accepted auditing standards and that, in
their opinion, such Financial Statements present fairly, in all material respects,
the consolidated financial condition of the Seller and its consolidated Subsidiaries
as of the date thereof and the consolidated results of its operations and cash flows
for the periods covered thereby in conformity with GAAP;

 

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(2) any management letters, management reports or other supplementary comments
or reports delivered in conjunction with the report and opinion in Section
16.3(b)(1) by such accountants to management or the board of directors of the
Seller; and

(3) a certificate signed by the chief financial officer of the Seller stating
that said Financial Statements fairly present the consolidated financial condition
and results of operations (for Seller and its consolidated Subsidiaries) as at the
end of, and for, such year.

The Seller also agrees to provide to the Administrative Agent and the Buyers such other information
related to such annual reports or concerning the Seller’s finances or operations as the
Administrative Agent or any Buyer may from time to time reasonably request.

(c) Chief Financial Officer’s Certificate. Together with each of the monthly and
annual Financial Statements required by Sections 16.3(a), and 16.3(b) above, a certificate
of the Seller’s chief financial officer in the form of Exhibit C, among other things,
(i) setting forth in reasonable detail all calculations necessary to show whether the Seller
is in compliance with the requirements of Section 17.12., 17.13, 17.14 and 17.15 of this
Agreement or, if the Seller is not in compliance, showing the extent of noncompliance and
specifying the period of noncompliance and what actions the Seller proposes to take with
respect thereto and (ii) stating that the terms of this Agreement have been reviewed by such
officer or under his or her supervision, and that he or she has made or caused to be made
under his or her supervision, a review in reasonable detail of the transactions and the
condition of the Seller during the accounting period covered by such Financial Statements
and that such review does not disclose the existence during or at the end of such accounting
period and that such chief financial officer does not have knowledge of the existence as of
the date of the Officer’s Certificate of any Event of Default or Default or, if any Event of
Default or Default existed or exists, specifying the nature and period of its existence and
what action the Seller has taken, is taking and proposes to take with respect to it.

16.4. Financial Statements Will Be Accurate. The Seller agrees that all Financial Statements
and reports of auditors furnished to the Administrative Agent and the Buyers will be prepared in
accordance with GAAP, applied on a basis consistent with that applied in preparing the Statement
Date Financial Statements as at the date thereof and for the period then ended, subject, however
for Financial Statements other than year-end statements to year-end audit adjustments and the
omission of footnotes.

 

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16.5. Other Reports. The Seller will promptly furnish to the Administrative Agent from time
to time information regarding the business and affairs of the Seller (and, upon the written request
of any Buyer, such information requested by such Buyer), including the following and such other
information as the Administrative Agent may from time to time reasonably request (each report
required must be signed by a duly authorized officer of the Seller, and the Administrative Agent
and the Buyers will have no responsibility to verify or track any of the items referenced or
conclusions stated in such reports or to verify the authority of its signer):

(a) A report of Purchased Loans prepaid in full, on or before one (1) Business Day
after prepayment of any one or more Purchased Loans is reported to the Seller internally or
by any Servicer or the Seller’s subservicer (and the Seller, as applicable, will require
each such Servicer and subservicer to promptly make such reports to the Seller, as
applicable).

(b) Weekly no later than the fourth Business Day of each week, a report summarizing the
amount advanced and the amount remaining available for each HELOC purchased by the
Administrative Agent (as Administrative Agent and representative of the Buyers).

(c) Monthly with the certificate required by Section 16.3(c), a report attached to
Exhibit C summarizing (i) notices received by the Seller requesting or demanding that the
Seller repurchase (or pay indemnity or other compensation in respect of) Mortgage Loans
previously sold or otherwise disposed of by the Seller to any investor or other Person
pursuant to any express or implied repurchase or indemnity obligation (whether absolute or
contingent and whether or not the Seller is contesting or intends to contest such request or
demand) and (ii) actual repurchase and indemnity payments made by Seller to any Person.

(d) Monthly with the certificate required under Section 16.3(c), a Purchased Loans
Curtailment Report.

(e) Upon request, copies of any changed pages to the Seller’s Underwriting Guidelines
to update the copies of the Seller’s Underwriting Guidelines previously furnished to the
Administrative Agent.

(f) Upon request, a summary report of the Seller’s then-outstanding commitments to sell
Mortgage Loans to investors.

(g) If requested by the Administrative Agent or Syndication Agent, a summary of the
Seller’s other repurchase, reverse repurchase or asset warehousing facilities. Such report
shall be in form and format reasonably acceptable to the requesting party and include the
total amount available, amount outstanding and maturity date of each of such facilities, the
counterparties and whether such facilities are committed or uncommitted.

 

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(h) Such other reports by the Seller in respect of the Purchased Loans, in such detail
and at such times as the Administrative Agent or any Buyer in its reasonable discretion may
request at any time or from time to time.

(i) As soon as available and in any event within one day after filing or posting
on-line, notice of (i) all press releases issued by the Seller or any of its Subsidiaries,
(ii) all regular or periodic financial reports, and copies of all extraordinary or
non-routine filings, if any, that shall be filed with the U.S. Securities and Exchange
Commission or any successor agency by or on behalf of the Seller or any of its Subsidiaries
(including Single-purpose Finance Subsidiaries) and (iii) all such filings relating to any
securities that are or are to be based on, backed by or created from any Purchased Loans and
which filings are made by or in respect of the Seller or any of its Subsidiaries.

16.6. Maintain Existence and Statuses; Conduct of Business. The Seller agrees to preserve and
maintain its existence in good standing and all of its rights, privileges, licenses and franchises
necessary or desirable in the normal conduct of its business except where the failure to maintain
such rights, privileges, licenses or franchises could not reasonably be expected to have a material
adverse effect on any of the Central Elements in respect of the Seller or any of its Subsidiaries,
and the Seller will continue in the residential mortgage lending business as its principal and core
business.

16.7. Compliance with Applicable Laws. The Seller and its Subsidiaries will comply with all
applicable Legal Requirements, the breach of which could reasonably be expected to materially
adversely affect any of the Central Elements with respect to the Seller and its Subsidiaries, taken
as a whole, except where contested in good faith.

16.8. Inspection of Properties and Books; Protection of Seller’s Proprietary Information;
Buyers’ Due Diligence of Seller.

(a) The Seller agrees to permit the Administrative Agent, the Syndication Agent and the
Buyers, subject to the provisions of Section 16.9, to perform continuing loan level due
diligence reviews with respect to the Purchased Loans, for purposes of verifying compliance
with the representations, warranties and specifications made in this Agreement or otherwise,
and the Seller agrees that upon reasonable prior notice to the Seller, the Administrative
Agent, the Syndication Agent or their authorized representatives will be permitted timely
and reasonable access to examine, inspect, and make copies and extracts of, the related
mortgage loan files and any and all documents, records, agreements, instruments or
information relating to such Purchased Loans in the possession or under the control of the
Seller, any Servicer or the Custodian. The Seller also shall make available to the
Administrative Agent and the Syndication Agent a knowledgeable financial 

 

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or accounting
officer for the purpose of answering questions respecting the mortgage loan files and the
Purchased Loans. Without limiting the generality of the foregoing, the Seller acknowledges
that the Buyers may purchase Eligible Loans from the Seller based solely upon the
information provided by the Seller to the Administrative Agent in the Mortgage Loan
Transmission File and the representations, warranties and covenants contained in this
Agreement, and that the Administrative Agent and the Syndication Agent, at their option,
have the right at any time with reasonable prior notice to conduct a partial or complete due diligence review
on some or all of the Purchased Loans prior to or following their purchase in a Transaction,
including ordering new credit reports and new appraisals on any property securing any
Purchased Loan and otherwise re-generating the information used to originate such Purchased
Loan. Notwithstanding any provision to the contrary herein regarding reasonable prior
notice, if an Event of Default in respect of the Seller shall have occurred and be
continuing, then the Administrative Agent and the Syndication Agent, upon notice to the
Seller, shall have the right to immediate access and review of the Seller and the loan
information contemplated in this Section 16.8(a), provided that to the extent that the
Seller does not have possession of such loan information, the Seller shall cause the
applicable Servicer or subservicer to provide the Administrative Agent and the Syndication
Agent with access and review of such loan information within a reasonable period of time,
but not to exceed any prior notification time provided under the related Servicing Agreement
with such Servicer or subservicer. The Administrative Agent and the Syndication Agent may
conduct the due diligence review of such Purchased Loans itself or engage a third party
underwriter selected by the Administrative Agent or Syndication Agent to perform such
review. The Seller agrees to, and to cause any relevant Servicer and its subservicer to,
cooperate with the Administrative Agent, the Syndication Agent and any third party
underwriter in connection with such due diligence review, including providing the
Administrative Agent, the Syndication Agent and any third party underwriter with access to
any and all documents, records, agreements, instruments or information relating to such
Purchased Loans in the possession, or under the control, of the Seller, such Servicer and
such subservicer. The Seller agrees to pay all costs and expenses of the Administrative
Agent, the Syndication Agent and any Buyer incurred in the exercise of their rights pursuant
to this Section 16.18(a).

(b) The Seller agrees to permit authorized representatives of the Administrative Agent
and each Buyer, at such Buyer’s expense except after the occurrence and during the
continuance of a Default or Event of Default, to discuss onsite the business, operations,
assets and financial condition of the Seller and its Subsidiaries with their respective
officers, employees and independent accountants and to examine their books of account and
make copies or extracts of them, all at such reasonable times and upon such reasonable
notice as the Administrative Agent or any Buyer may request, for any or all of the purposes
of ordinary diligence, performing the Buyers’ duties (and any of the Seller’s duties which
the Seller has not performed) and enforcing the Buyers’ and the Administrative Agent’s
rights under this Agreement. To the extent that it is commercially reasonable, any Buyer
that desires to act under this Section 16.8(b) shall do so either through the Administrative
Agent, or with the coordination of the Administrative Agent, and to the extent that it is
not commercially reasonable for a Buyer to do so, such Buyer may only act under this Section
16.8(b) one (1) time in any consecutive six (6) month period and, unless such Buyer is the
Person serving as the Administrative Agent, at such Buyer’s expense. The Administrative
Agent or the Buyer acting will notify the Seller before contacting the Seller’s accountants
and the Seller may have its representatives in attendance at any meetings between the
officers or other representatives of the Administrative Agent or any Buyer and such
accountants held in accordance with this authorization. 

 

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Each of the Administrative Agent,
the Syndication Agent and each Buyer agrees that it will prevent disclosure by itself to
third parties of any
 proprietary information it has received pursuant to this Agreement and will maintain
the confidential nature of such material; provided that this restriction shall not apply to
information that (i) at the time in question has already entered the public domain, (ii) is
required to be disclosed by any Legal Requirement (including pursuant to any examination,
inspection or investigation by any Governmental Authority having regulatory jurisdiction
over any Buyer or the Administrative Agent), (iii) is furnished by the Administrative Agent,
or any Buyer to purchasers or prospective purchasers of participations or interests in the
Purchased Loans so long as such purchasers and prospective purchasers have agreed to be
subject to restrictions substantially identical to those contained in this sentence,
(iv) the disclosure of which the Administrative Agent, and the Buyers deem necessary to
market or sell Purchased Mortgage Loans or to enforce or exercise their rights under any
Repurchase Document, or (v) is disclosed by any Buyer to its attorneys, employees, agents
and auditors during the performance of their respective duties.

16.9. Privacy of Customer Information. The Seller’s Customer Information in the possession of
the Administrative Agent or the Buyers, other than information independently obtained by the
Administrative Agent or the Buyers and not derived in any manner from or using information obtained
under or in connection with this Agreement, is and shall remain confidential and proprietary
information of the Seller. Except in accordance with this Section 16.9, the Administrative Agent
and the Buyers shall not use any Seller’s Customer Information for any purpose, including the
marketing of products or services to, or the solicitation of business from, Customers, or disclose
any Seller’s Customer Information to any Person, including any of the Administrative Agent’s or the
Buyers’ employees, agents or contractors or any third party not affiliated with the Administrative
Agent or a Buyer. The Administrative Agent and the Buyers may use or disclose Seller’s Customer
Information only to the extent necessary (i) for examination and audit of the Administrative
Agent’s or the Buyers’ respective activities, books and records by their regulatory authorities,
(ii) to market or sell Purchased Mortgage Loans or to enforce or exercise their rights under any
Repurchase Document, (iii) to carry out the Administrative Agent’s, the Syndication Agent’s, the
Buyers’ and the Custodian’s express rights and obligations under this Agreement and the other
Repurchase Documents (including providing Seller’s Customer Information to Approved Investors), or
(iv) in connection with an assignment or participation as authorized by Section 22 or in connection
with any hedging transaction related to the Purchased Loans and for no other purpose; provided that
the Administrative Agent and the Buyers may also use and disclose the Seller’s Customer Information
as expressly permitted by the Seller in writing, to the extent that such express permission is in
accordance with the Privacy Requirements. The Administrative Agent and the Buyers shall ensure
that each Person to which the Administrative Agent or a Buyer intends to disclose Seller’s Customer
Information, before any such disclosure of information, agrees to keep confidential any such
Seller’s Customer Information and to use or disclose such Seller’s Customer Information only to the
extent necessary to protect or exercise the Administrative Agents, the Buyers’ or the Custodian’s
rights and privileges, or to carry out the Administrative Agent’s, the Buyers’ and the Custodian’s
express obligations, under this Agreement and the other Repurchase Documents (including providing
Seller’s Customer Information to Approved Investors).

 

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The Administrative Agent agrees to maintain
an Information Security Program and to assess, manage and control risks relating to the security
and confidentiality of Seller’s Customer Information pursuant to such program in the same manner as
the Administrative Agent does in respect of its own customers’ information, and shall implement the standards relating to such risks in the manner set forth
in the Interagency Guidelines Establishing Standards for Safeguarding Company Customer Information
set forth in 12 CFR Parts 30, 208, 211, 225, 263, 308, 364, 568 and 570. Without limiting the
scope of the foregoing sentence, the Administrative Agent and the Buyers shall use at least the
same physical and other security measures to protect all of the Seller’s Customer Information in
their possession or control as each of them uses for its own customers’ confidential and
proprietary information.

16.10. Notice of Suits, Etc. and Notice. The Seller will promptly, by no later than the end
of the Business Day next following the day when the Seller first learns of it, give written notice
to the Administrative Agent and the Buyers of:

(a) any material action, suit or proceeding instituted by or against the Seller or any
of its Subsidiaries in any federal or state court or before any commission, regulatory body
or Governmental Authority, or if any such proceedings are threatened against the Seller or
any of its Subsidiaries, in a writing containing the applicable details;

(b) the filing, recording or assessment of any material federal, state or local tax
lien against the Seller or any of its Subsidiaries or any assets of any of them;

(c) the occurrence of any Event of Default;

(d) the occurrence of any Default;

(e) the termination of, or the occurrence of any event which, with or without notice or
lapse of time or both, would constitute a default under the Custody Agreement;

(f) the occurrence of:

(1) any event which, with or without notice or lapse of time or both, would
constitute a default under, or permit the acceleration or termination of, any other
agreement, instrument or indenture to which the Seller or any of its Subsidiaries is
a party or to which any of them or any of their properties or assets may be subject
if either (x) the effect of any such default is or if uncured and unwaived after
notice, the lapse of time or both, would be to cause, or to permit any other party
to such agreement, instrument or indenture (or a trustee on behalf of such a party)
to cause, Debt of the Seller or any of its Subsidiaries to become or be declared due
before its stated maturity or (y) such default, if uncured and unwaived after any
relevant notice, the lapse of time or both, could reasonably be expected to result
in a material adverse effect on any of the Central Elements in respect of the Seller
or any of its Subsidiaries.

(2) the acceleration of any material Debt obligation of the Seller or the
termination of any credit facility of the Seller;

 

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(3) any other action, event or condition of any nature (excluding general
economic conditions) which, if unremedied after any relevant notice, lapse of time
or both, could reasonably be expected to result in either (i) the
Seller’s being in breach of or out of compliance with any provision of Sections
17.12, 17.13, 17.14 and 17.15 (Financial Covenants) or (ii) a material adverse
effect on any of the Central Elements in respect of the Seller or any of its
Subsidiaries; or

(4) the curing by the Seller, or the waiver by the other party to the relevant
agreement, instrument or indenture, of any event described in Section 16.10(f)(1)
and, in the case of curing, whether the event was cured before any applicable grace
or notice and opportunity to cure period had expired.

16.11. Payment of Taxes, Etc. The Seller will, and will cause each of its Subsidiaries to, pay
and discharge or cause to be paid and discharged promptly all taxes, assessments and governmental
charges or levies imposed upon it or its Subsidiaries or upon their respective income, receipts or
properties before they become past due, as well as all lawful claims for labor, materials and
supplies or other things which, if unpaid, could reasonably be expected to become (or result in the
placement of) a Lien or charge upon any part of such properties; provided that it and its affected
Subsidiaries shall not be required to pay taxes, assessments or governmental charges or levies or
claims for labor, materials or supplies that are being contested in good faith and by proper
proceedings being reasonably and diligently pursued, execution or enforcement of which has been
effectively stayed (by the posting of a bond or other security sufficient to achieve that result,
or by any other fully effective means), and for which reserves determined to be adequate (in
accordance with GAAP in all material respects) have been set aside on its books.

16.12. Insurance; fidelity bond. The Seller will, and will cause each of its Subsidiaries to:

(a) maintain liability insurance protecting the Seller and its Subsidiaries against
fire and other hazard insurance on its respective properties from which it conducts its
business, with responsible insurance companies, in such amounts and against such risks as is
customarily carried by similar businesses operating in the same vicinity. Copies of such
policies shall be furnished to the Administrative Agent without charge upon the
Administrative Agent’s request made from time to time; and

(b) obtain and maintain at its own expense and keep in full force and effect a blanket
fidelity bond and an errors and omissions insurance policy covering Seller’s officers and
employees and other persons acting on behalf of Seller. The amount of coverage shall be at
least equal to the coverage that would be required by Fannie Mae or Freddie Mac, whichever
is greater, with respect to Seller if Seller were servicing and administering the Mortgage
Loans for Fannie Mae or Freddie Mac. In the event that any such bond or policy ceases to be
in effect, Seller shall obtain a comparable replacement bond or policy, as the case may be,
meeting the requirements of this Section 16.12(b). Coverage of Seller under any policy or
bond obtained by an Affiliate of Seller and providing the coverage required by this
Section 16.12(b) shall satisfy the requirements of this Section 16.12(b). Upon the request
of Buyer, Seller shall cause to be delivered to Buyer evidence of such fidelity bond and
insurance policies.

 

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16.13. Maintain Lien on Mortgaged Premises. The Seller will maintain the Lien on the
Mortgaged Premises securing each Purchased Loan as a first Lien (or, for Second Lien Loans or
HELOCS, as a second Lien), subject only to the Permitted Encumbrances.

16.14. Subordination of Certain Indebtedness. The Seller will cause any and all debt and
obligations of the Seller to any Affiliate or any member, manager, stockholder, director or officer
of the Seller (excluding debt for directors’ or officers’ salary, bonuses, directors’ fees or other
compensation for service) of any Affiliate to be Qualified Subordinated Debt by the execution and
delivery by such Affiliate or member, manager, stockholder, director or officer, as applicable, to
the Administrative Agent of a Subordination Agreement in form and substance satisfactory to the
Buyers and the taking of all other steps (if any) required to cause such Debt to be Qualified
Subordinated Debt and deliver to the Administrative Agent an executed copy of that Subordination
Agreement, certified by the corporate secretary or assistant secretary of the Seller to be true and
complete and in full force and effect, as to all such present and future debts and obligations of
the Seller.

16.15. Certain Debt to Remain Unsecured. The Seller will cause any and all debt and
obligations of the Seller advanced to the Seller by any member, manager or officer of the Seller
whether such debt exists as of the Effective Date or is incurred in the future to remain at all
times unsecured.

16.16. Promptly Correct Escrow Imbalances. By no later than seven (7) Business Days after
learning (from any source) of any material imbalance in any escrow account(s) maintained by the
Seller (or any subservicer for it), the Seller will fully and completely correct and eliminate such
imbalance.

16.17. MERS Covenants. The Seller will:

(a) be a “Member” (as defined in the MERS Agreements) of MERSCORP;

(b) maintain the Electronic Tracking Agreement in full force and effect and timely
perform all of its obligations thereunder;

(c) provide the Administrative Agent with copies of any new MERS Agreement or any
amendment, supplement or other modification of any MERS Agreement (other than the Electronic
Tracking Agreement);

(d) not amend, terminate or revoke, or enter into any agreement that is inconsistent
with or contradicts any provision of the Electronic Tracking Agreement;

(e) identify to the Administrative Agent each Purchased Loan that is registered in the
MERS System, at the earlier of the time it is so registered or the time it is purchased or
deemed purchased hereunder, as so registered;

 

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(f) at the request of the Administrative Agent, take such actions as may be requested
by the Administrative Agent to:

(1) transfer beneficial ownership of any Purchased Loan to the Administrative
Agent on behalf of the Buyers on the MERS System; or

(2) de-register or re-register any Purchased Loan on, or withdraw any Purchased
Loan from, the MERS System;

(g) provide the Administrative Agent with copies of any or all of the following reports
with respect to the Purchased Loans registered on the MERS System at the request of the
Administrative Agent:

(1) Co-existing Security Interest (MERS form IA);

(2) Release of Security Interest by Interim Funder (MERS form IB);

(3) Interim Funder Rejects (MERS form IC);

(4) Paid in Full Verification (MERS form DK); and

(5) such other reports as the Administrative Agent may reasonably request to
verify the status of any Purchased Loan on the MERS System;

(h) notify the Administrative Agent of any withdrawal or deemed withdrawal of the
Seller’s membership in the MERS System or any deregistration of any Purchased Loan
previously registered on the MERS System; and

(i) obtain the prior written consent of the Administrative Agent before entering into
an electronic tracking agreement (other than the Electronic Tracking Agreement) with any
other Person.

16.18. Special Affirmative Covenants Concerning Purchased Loans.

(a) Until both (i) all of the Purchased Loans shall have been repurchased by the Seller
and (ii) the Buyers have no obligation to purchase any additional Loans hereunder or provide
any other financial accommodations to the Seller under or otherwise in respect of this
Agreement, the Seller warrants and will defend the right, title and interest of the Buyers
and the Administrative Agent in and to the Purchased Loans against the claims and demands of
all persons whomsoever.

(b) Each Purchased Loan will be underwritten in material conformance with the Seller’s
Underwriting Guidelines in existence as of the date the Purchased Loan is originated.

 

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(c) As soon as they become available and in any event within seven (7) days after the
Purchase Date for Wet Loans, the Seller will cause to be assembled and delivered to the
Custodian all Basic Papers relating to Wet Loans. Without limitation of
the foregoing, if original recordation receipts evidencing the recordation of the
Mortgage and Mortgage Assignment included in the Purchased Loans have not previously been
delivered to the Custodian, the Seller will promptly deliver (or cause to be delivered) to
the Custodian, either the original recordation receipts or the original recorded Mortgage or
Mortgage Assignment showing the recordation data thereon.

(d) The Seller shall maintain, at its principal office or in a regional office not
disapproved by the Administrative Agent, or in the office of a computer service bureau
engaged by the Seller and not disapproved by the Administrative Agent, and upon request
shall make available to the Administrative Agent and the Custodian the originals of all Loan
Papers and related instruments, and all files, surveys, certificates, correspondence,
appraisals, computer programs, tapes, discs, cards, accounting records and other information
and data relating to the Purchased Loans that are held by or under the direction or control
of the Seller or any of its Affiliates and that have not already been provided to the
Administrative Agent or the Custodian.

(e) The Seller shall ensure that, if a Mortgage Loan that is to be funded and sold to
the Buyers as a Wet Loan does not close on the proposed Purchase Date, all amounts remitted
by the Administrative Agent for the payment of the Purchase Price shall be returned promptly
within one Business Day to the Administrative Agent for the benefit of the Buyers and if
such funds are not so returned, the Seller shall pay promptly within one Business Day a like
amount to the Administrative Agent for the benefit of the Buyers plus any accrued Price
Differential. Seller acknowledges that until such time as the Mortgage Loan is deemed to
have been sold to the Buyers, Seller has no interest in, nor any claim to such amounts and
shall, if it receives such amounts, hold such amounts in trust for the Buyers and shall
promptly remit such funds to the Administrative Agent for disbursement to the Buyers.

16.19. Coordination with Other Lenders/Repo Purchasers and Their Custodians. The Seller will
provide to the Administrative Agent the current name, address and contact information concerning
each of the Seller’s other mortgage warehouse credit and repurchase facilities, will update such
information provided to the Administrative Agent as changes to the facilities or such name, address
or contact information occurs, and will cooperate and assist the Administrative Agent in exchanging
information with such others (and their document custodians or trustees) to prevent conflicting
claims to and interests in Purchased Loans between or among repurchase facilities counterparties or
lenders, and promptly correct such conflicting claims as may arise from time to time. The Seller
will execute and deliver to the Administrative Agent any intercreditor agreement Administrative
Agent and Syndication Agent may require pursuant to Section 17.8.

16.20. Hedge Investments in Mortgage Loans. If at any time during the term of this Agreement,
the Seller is hedging its investments in Mortgage Loans sold to the Administrative Agent and the
Buyers, the Seller will prepare its weekly periodic hedge position reports in form, substance and
detail reasonably satisfactory to the Administrative Agent, including a calculation of the weighted
average purchase price for Mortgage Loans so hedged, and provide a copy of each to the
Administrative Agent when issued, and upon the Administrative Agent’s reasonable request, the
Seller will deliver to the Administrative Agent copies of the Hedge Agreements
acquired by the Seller and held from time to time to so hedge its investments in Mortgage
Loans sold to the Buyers.

 

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17 Negative Covenants.

The Seller agrees that, for so long as the Commitments are outstanding or until all of the
Purchased Loans have been repurchased by the Seller and none of the Seller’s Obligations remain to
be paid or performed under this Agreement or any of the other Repurchase Documents, the Seller
shall not, and shall not permit any Restricted Subsidiary to, either directly or indirectly,
without the prior written consent of the Required Buyers:

17.1. No Merger. The Seller shall not merge or consolidate with or into any Person, if
immediately prior to any such merger or consolidation a Default or Event of Default exists or would
occur as a result thereof, or if as a result of any such merger or consolidation a Change of
Control would occur or the Seller is not the surviving entity.

17.2. Limitation on GAAP Indebtedness and Contingent Indebtedness. At no time shall the
Seller or any Restricted Subsidiary incur, create, contract, assume, have outstanding, guarantee or
otherwise be or become, directly or indirectly, liable in respect of any GAAP Indebtedness or
Contingent Indebtedness except:

(a) the Obligations;

(b) trade debt (including, without limitation, trade debt for services provided by an
Affiliate), equipment leases, loans for the purchase of equipment used in the ordinary
course of the Seller’s business and indebtedness for taxes and assessments not yet due and
payable owed in the ordinary course of business;

(c) unsecured GAAP Indebtedness or unsecured Contingent Indebtedness owing to Parent or
any Affiliate of Parent;

(d) Contingent Indebtedness to Persons in support of the Parent or an Affiliate of
Parent; and

(e) With the prior written consent of the Required Buyers (which consent shall not be
unreasonably withheld, delayed or conditioned upon fees), GAAP Indebtedness under a mortgage
warehousing facility, mortgage repurchase facility or off-balance sheet indebtedness under
another financing arrangement, other than those described in subsections (c) and (d) of this
Section 17.2 provided that the Buyers are given a right of first refusal regarding only
similarly structured syndicated mortgage warehousing facilities or mortgage repurchase
facilities.

17.3. Business. The Seller shall not, directly or indirectly, other than through an
Unrestricted Subsidiary, engage in any businesses which differ materially from those currently
engaged in by the Seller or any other businesses customarily engaged in by other Persons in the
mortgage banking business.

 

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17.4. Liquidations, Dispositions of Substantial Assets. Except as expressly provided below in
this section, neither the Seller nor any Restricted Subsidiary shall dissolve or liquidate or sell,
transfer, lease or otherwise dispose of any material portion of its property or assets or business.
Except as provided herein for the Purchased Loans, the Seller and the Restricted Subsidiaries may
sell other Mortgage Loans and the right to service such other Mortgage Loans in the ordinary course
of their business pursuant to other repurchase facilities or mortgage warehousing facilities
allowed hereunder, any Restricted Subsidiary may sell its property, assets or business to the
Seller or another Restricted Subsidiary, and any Restricted Subsidiary may liquidate or dissolve if
at the time thereof and immediately thereafter, the Seller and the Restricted Subsidiaries are in
compliance with all covenants set forth in the Repurchase Documents and no Default or Event of
Default shall have occurred and be continuing.

17.5. Loans, Advances, and Investments. Neither the Seller nor any Restricted Subsidiary
shall make any loan (other than Mortgage Loans), advance, or capital contribution to, or investment
in (including any investment in any Restricted Subsidiary, joint venture or partnership), or
purchase or otherwise acquire any of the capital stock, securities, ownership interests, or
evidences of indebtedness of, any Person (collectively, “Investment”), or otherwise acquire any
interest in, or control of, another Person, except for the following:

(a) Cash Equivalents;

(b) Any acquisition of securities or evidences of indebtedness of others when acquired
by the Seller in settlement of accounts receivable or other debts arising in the ordinary
course of its business, so long as the aggregate amount of any such securities or evidences
of indebtedness is not material to the business or condition (financial or otherwise) of the
Seller;

(c) Mortgage Notes acquired in the ordinary course of the Seller’s business;

(d) Investment in any existing Affiliate or any Subsidiary (including Investments by
the Seller in CH Funding, LLC, a Delaware limited liability company) or JV; provided that at
the time any such investment is made and immediately thereafter, the Seller and the
Restricted Subsidiaries are in compliance with all covenants set forth in the Repurchase
Documents and no Default or Event of Default shall have occurred and be continuing;

(e) Loans to officers or employees in an aggregate amount not to exceed $300,000;

(f) Loans made to JV’s in an amount not to exceed $10,000,000 at any one time
outstanding, secured by Mortgage Loans originated with the proceeds of such loans and
covered by a bona fide current, unused and unexpired Whole Loan commitment issued in favor
of and held by such JV made by an Investor or the Seller; and

(g) Investments in mortgage origination companies so long as (i) such Investment is a
direct equity investment and so long as such Investment does not cause a breach of any other
covenant (affirmative or negative) hereunder.

 

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17.6. Use of Proceeds. The Seller shall not, directly or indirectly, use any of the proceeds
of the Transactions for the purpose, whether immediate, incidental or ultimate, of buying any
“margin stock” or of maintaining, reducing or retiring any GAAP Indebtedness and Contingent
Indebtedness originally incurred to purchase a stock that is currently any “margin stock”, or for
any other purpose which might constitute this transaction a “purpose credit”, in each case within
the meaning of Regulation U or otherwise take or permit to be taken any action which would involve
a violation of Regulation U or Regulation T or any other regulation of the Board of Governors of
the Federal Reserve System.

17.7. Transactions with Affiliates. The Seller shall not enter into any transactions
including, without limitation, any purchase, sale, lease or exchange of property or the rendering
of any service, with any Affiliate other than a Restricted Subsidiary unless such transactions are
otherwise permitted under this Agreement (including, without limitation, the transactions permitted
under Section 17.2) and are in the ordinary course of the Seller’s business.

17.8. Liens. The Seller shall not grant, create, incur, assume, permit or suffer to exist any
Lien, upon any of its Mortgage Notes or any property related thereto, including but not limited to
the Mortgages securing such Mortgage Notes and the proceeds of the Mortgage Notes, unless such
Liens are the subject of an intercreditor agreement in form and substance satisfactory to the
Administrative Agent and the Syndication Agent, other than: (a) Liens under approved warehouse or
repurchase facilities under Section 17.2(e), and (b) Liens granted to the Buyers under Section
10.

17.9. ERISA Plans. Neither the Seller nor any Restricted Subsidiary shall adopt or agree to
maintain or contribute to an ERISA Plan. The Seller shall promptly notify Administrative Agent and
each Buyer in writing in the event an ERISA Affiliate adopts an ERISA Plan.

17.10. Change of Principal Office; Fiscal Year. The Seller shall not move its principal
office, executive office or principal place of business from the address set forth in this
Agreement or change its Fiscal Year, without prior written notice to Administrative Agent and each
Buyer.

17.11. Distributions. The Seller shall make no payment of dividends or distributions to any
of its partners if either before or after giving effect thereto a Default or an Event of Default
exists or shall be caused thereby.

17.12. Tangible Net Worth. At all times, the Seller’s Consolidated Tangible Net Worth shall
not be less than $130,000,000.

17.13. Tangible Net Worth Ratio. At all times, the ratio of (i) the sum of GAAP Indebtedness
and Contingent Indebtedness to (ii) the Seller’s Consolidated Tangible Net Worth shall not be more
than 10.0 to 1.0.

17.14. Net Income. As of the end of each month, the Seller’s consolidated income, calculated
as net after tax income in accordance with GAAP, for the six consecutive months then ended shall
not be less than $1.00.

 

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17.15. Liquidity. Seller’s Liquidity shall at all times be no less than the greater of
$17,500,000 or five percent (5%) of the outstanding amounts under this Agreement and all other
mortgage warehouse, conduit or repurchase facilities to which the Seller is a party.

17.16. Special Negative Covenants Concerning Purchased Loans. Except to correct errors or
omissions in Loan Papers, without the written consent of the Administrative Agent given on a
case-by-case basis, amend or modify, or waive any of the terms and conditions of any Purchased
Loans, or settle or compromise any claim in respect of them, or accept other than cash or the
exchange of comparable Purchased Loans (which is concurrently sold by the Seller to the Buyers) in
liquidation of any Purchased Loans.

17.17. No Changes in Accounting Practices. Make any significant change in accounting
treatment or reporting practices, except as required by GAAP, or change its fiscal year.

18 Events of Default; Event of Termination.

18.1. Events of Default. The following events shall constitute events of default (each an
“Event of Default”) hereunder:

(a) Seller shall default in the payment of (i) the Repurchase Price for any Purchased
Loans on the applicable Repurchase Date, (ii) any Price Differential, Facility Fees or
Administrative Agent’s Fees when due and fail to cure such default within one (1) Business
Day, (iii) any amount required to be paid or transferred or paid to eliminate any Margin
Deficit within the time period specified in Section 6.2 or (iv) any other Obligation, when
the same shall become due and payable, whether at the due date thereof, or by acceleration
or otherwise.

(b) An Event of Insolvency occurs with respect to the Seller, Parent, the Seller’s
general partner, or a Restricted Subsidiary.

(c) Any representation or warranty made by a Seller under any Repurchase Document shall
have been incorrect or untrue when made or repeated or deemed to have been made or repeated;
provided, that in the case of representations and warranties made with respect to the
Purchased Loans, such circumstance shall not constitute an Event of Default if, after
determining the Purchase Value of the Purchased Loans without taking into account the
Purchased Loans with respect to which such circumstance has occurred, no other Event of
Default shall have occurred and be continuing.

(d) Any covenant contained in Sections 16.1, 16.3, 16.4, 16.5, 16.10, 17.1, 17.4,
17.12, 17.13,.17.14 and 17.15 shall have been breached and such breach remains unremedied
for five (5) calendar days.

(e) Any covenant contained in (i) Section 17 (other than Sections 17.1, 17.4, 17.12,
17.13, 17.14 and 17.15) shall have been breached, (ii) Section 16 shall have been breached
in any material respect (except for any breach of Sections 16.1, 16.3, 16.4, 16.5 and 16.10)
and (iii) any other covenant or agreement contained in any Repurchase Document is breached
in any material respect, and in the case of (i), (ii) and (iii) above, such breach is not
cured within fifteen (15) calendar days of the earlier of Seller’s
knowledge of such breach or Seller’s receipt of notice of such breach from any source;
provided, that in the case of covenants made with respect to the Purchased Loans, such
circumstance shall not constitute an Event of Default if, after determining the Purchase
Value of the Purchased Loans without taking into account the Purchased Loans with respect to
which such circumstance has occurred, no other Event of Default shall have occurred and be
continuing.

 

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(f) Failure of the Seller or any of its Restricted Subsidiaries to pay any other Debt
when due, or any default in the payment when due of any principal or interest on any other
Debt or in the payment when due of any contingent obligation (other than nonrecourse MBS
Debt of any Affiliate formed for the purpose of issuing such Debt), or any breach or default
with respect to any other material term of any other debt or of any promissory note, bond,
loan agreement, reimbursement agreement, mortgage, indenture, repurchase agreement or
financing agreement or other agreement relating thereto, if the effect of any such failure,
default, breach or event referred to in this Section 18.1(f) is to cause, or to permit, with
or without the giving of notice or lapse of time or both, the holder or holders of such
obligation (or a trustee on behalf of such holder or holders) to cause, Debt of the Seller
or any of its Restricted Subsidiaries in the aggregate amount of Five Million Dollars
($5,000,000) or more to become or be declared due before its stated maturity.

(g) A Change of Control shall occur.

(h) A material adverse change shall occur in any of the Central Elements relative to
the Seller or any of its Subsidiaries.

(i) The Seller shall repudiate or purport to disavow its obligations under any of the
Repurchase Documents or shall contest their validity or enforceability.

(j) This Agreement shall cease to be in full force and effect or its enforceability is
disputed or challenged by Seller.

(k) The Seller shall take or omit to take any act (i) that would result in the
suspension or loss of any of its statuses, once achieved or any of such statuses of any of
its subservicers, if any, of any Ginnie Mae, Fannie Mae or Freddie Mac Mortgage Loans pools
for which the Seller is Servicer as an FHA- and VA-approved lender and mortgagee and a
Ginnie Mae-, Fannie Mae- and Freddie Mac-approved issuer and servicer, or (ii) after which
the Seller or any such relevant subservicer would no longer be in good standing as such, or
(iii) after which the Seller or any such relevant subservicer would no longer currently
satisfy all applicable Ginnie Mae, Fannie Mae and Freddie Mac net worth requirements, if
both (x) all of the material effects of such act or omission shall have not been cured by
the Seller or waived by the relevant Person (Ginnie Mae, Fannie Mae or Freddie Mac) before
termination of such status and (y) it could reasonably be expected to have a material
adverse effect on any of the Central Elements in respect of the Seller or any of its
Restricted Subsidiaries.

 

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(l) Any money judgment, writ or warrant of attachment, or similar process involving in
any case an amount in excess of One Million Dollars ($1,000,000) (in excess of relevant
insurance coverage reasonably satisfactory to the Administrative Agent in its discretion)
shall be entered or filed against the Seller or any of its Subsidiaries or any of their
respective assets and shall remain undischarged, unvacated, unbonded or unstayed for a
period of thirty (30) days or in any event later than five (5) days before the date of any
proposed sale thereunder (unless, in respect of any such case the judgment debtor or the
subject of the writ or warrant of attachment or similar process is one of the Seller’s
Subsidiaries or such Subsidiary’s property, and such order, case commencement, consent,
assignment, inability or failure or admission could not reasonably be expected to have a
material adverse effect on any of the Central Elements in respect of the Seller or any of
its Restricted Subsidiaries).

(m) The Seller shall have failed to comply in any material respect with its obligations
under the Custody Agreement.

(n) The Seller, as Servicer, shall fail to service the Purchased Loans in conformance
with Accepted Servicing Practices.

18.2. Transaction Termination. If an Event of Default shall have occurred and be continuing,
then, at the option of the Administrative Agent, the Administrative Agent may declare the
Repurchase Date for any or all Transactions hereunder, upon written notice to the Seller, to be
deemed immediately to occur.

18.3. Termination by the Administrative Agent. If the Administrative Agent has exercised the
option to terminate any Transactions referred to in Section 18.2, (i) Seller’s obligations
hereunder to repurchase all Purchased Loans in such Transactions shall thereupon become immediately
due and payable, (ii) to the extent permitted by applicable law, the Repurchase Price with respect
to each such Transaction shall be increased by the aggregate amount obtained by daily
multiplication of (x) the greater of the Pricing Rate for such Transaction and the Past Due Rate by
(y) the Purchase Price for such Transaction as of the Repurchase Date as determined pursuant to
Section 18.2 (decreased as of any day by (A) any amounts retained by Buyers with respect to such
Purchase Price pursuant to clause (iii) of this Section 18.3, (B) any proceeds from the sale of
Purchased Loans pursuant to clause (A) of Section 18.4, and (C) any amounts credited to the account
of the Seller pursuant to clause (B) of Section 18.4) on a three hundred sixty (360) day per year
basis for the actual number of days during the period from and including the date of the Event of
Default giving rise to such option to but excluding the date of payment of the Repurchase Price as
so increased, (iii) all Income paid after such exercise or deemed exercise shall be payable to and
retained by the Administrative Agent and applied to the aggregate unpaid Repurchase Prices owed by
the Seller and (iv) the Seller shall immediately deliver or cause the Custodian to deliver to the
Administrative Agent any documents relating to Purchased Loans subject to such Transactions then in
the Seller’s, its Servicer’s or its subservicer’s possession.

 

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18.4. Remedies. Upon the occurrence of an Event of Default, the Administrative Agent, without
prior notice to the Seller, may (A) immediately sell, in a recognized market at such price or
prices as Administrative Agent may deem satisfactory, any or all Purchased Loans
subject to such Transactions on a servicing released or servicing retained basis and apply the
proceeds thereof to the aggregate unpaid Repurchase Prices and any other amounts owing by the
Seller hereunder, (B) in lieu of selling all or a portion of such Purchased Loans, to give the
Seller credit for such Purchased Loans in an amount equal to the Market Value therefor on such date
against the aggregate unpaid Repurchase Prices and any other amounts owing by the Seller hereunder
(C) terminate and replace the Seller as Servicer (or any other Servicer or Subservicer) at the cost
and expense of Seller, (D) exercise its rights under Section 8 regarding the Income Account and
Escrow Account, and (E) by notice to the Seller, declare the Termination Date to have occurred,
except that in the case of any event described in Section 18.1(b), the Termination Date shall be
deemed to have occurred automatically upon the occurrence of such event. Additionally, if an Event
of Default has occurred and is continuing, (i) Administrative Agent may, at its option, by notice
to Seller, assume or cause to be assumed by another Person, Seller’s obligation to provide future
HELOC Draws pursuant to the documents related to any one or more HELOCs which are Purchased Loans
(ii) at its option, Administrative Agent shall have the right (but not the obligation) to make any
future HELOC Draws under the documents related to any one or more HELOCs which are Purchased Loans
and (iii) in connection with Administrative Agent’s sale of any HELOC, all rights and obligations
of Seller with respect to such HELOC shall be sold with such HELOC (including the right to fund
future advances and all rights and obligations under the documents related to such HELOC). The
proceeds of any disposition in clause (A) or (B) above shall be applied first to the
reasonable costs and expenses incurred by Buyers in connection with or as a result of an Event of
Default (including legal fees, consulting fees, accounting fees, file transfer fees, inventory fees
and costs and expenses incurred in respect of a transfer of the servicing of the Purchased Loans
and costs and expenses of disposition of such Purchased Loans); second to costs of cover
and/or related Hedge Agreements; third to the aggregate Price Differential owed hereunder,
fourth to the remaining aggregate Repurchase Prices owed hereunder; fifth to any
other accrued and unpaid obligations of the Seller hereunder and under the other Repurchase
Documents, sixth to any Servicer or Subservicer (other than Seller) for payment of any
servicing fees due and payable as of such date and seventh any remaining proceeds to the
Seller.

18.5. Liability for Expenses and Damages. The Seller shall be liable to the Buyers for
(i) the amount of all reasonable legal or other expenses incurred by the Buyers in connection with
or as a result of an Event of Default, (ii) damages in an amount equal to the reasonable cost
(including all fees, expenses and commissions) of entering into replacement transactions and
entering into or terminating hedge transactions in connection with or as a result of an Event of
Default and (iii) any other reasonable loss, damage, cost or expense directly arising or resulting
from the occurrence of an Event of Default in respect of a defaulting party.

18.6. Liability for Interest. To the extent permitted by applicable law, the Seller shall be
liable to the Buyers for interest on any amounts owing by the Seller hereunder, from the date the
Seller becomes liable for such amounts hereunder until such amounts are (i) paid in full by the
Seller or (ii) satisfied in full by the exercise of the Buyer’s rights hereunder. Interest on any
sum payable by the Seller under this Section 18.8 shall be at a rate equal to the greater of the
Pricing Rate for the relevant Transaction or the Prime Rate.

18.7. Other Rights. In addition to its rights hereunder, the Buyers shall have any rights
otherwise available to them under any other agreement or applicable law.

 

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18.8. Exercise of Remedies. The exercise by any party of remedies after the occurrence of an
Event of Default shall be conducted in a commercially reasonable manner.

18.9. Seller’s Repurchase Rights. For avoidance of doubt, subject to the terms and conditions
of this Agreement, Seller may repurchase Purchased Loans and resell such Purchased Loans; provided
that upon the occurrence and during the continuance of an Event of Default, Seller may repurchase
Purchased Loans by payment of the Repurchase Price therefor only upon approval of the
Administrative Agent in its discretion exercised in accordance with the provisions of Section
22.

18.10. Sale of Purchased Loans. The parties acknowledge and agree that (1) the Purchased
Loans subject to any Transaction hereunder are instruments traded in a recognized market, (2) in
the absence of a generally recognized source for prices or bid or offer quotations for any
Purchased Loans, the Administrative Agent may establish the source therefor, (3) all prices, bids
and offers shall be determined together with accrued Income (except to the extent contrary to
market practice with respect to the relevant Purchased Loans) and (4) in soliciting price, bid and
offer quotations for any Purchased Loan, it is reasonable for the Administrative Agent to use only
the information provided by Seller pursuant to Section 16.1. The parties further recognize
that it may not be possible to purchase or sell all of the Purchased Loans on a particular Business
Day, or in a transaction with the same purchaser, or in the same manner because the market for such
Purchased Loans may not be liquid at such time. In view of the nature of the Purchased Loans, the
parties agree that liquidation of a Transaction or the underlying Purchased Loans does not require
a public purchase or sale and that a good faith private purchase or sale shall be deemed to have
been made in a commercially reasonable manner. Accordingly, the Administrative Agent may elect the
time and manner of liquidating any Purchased Loan and nothing contained herein shall obligate the
Administrative Agent to liquidate any Purchased Loan on the occurrence of an Event of Default or to
liquidate all Purchased Loans in the same manner or on the same Business Day and no such exercise
of any right or remedy shall constitute a waiver of any other right or remedy of the Administrative
Agent or the Buyers.

19 Servicing of the Purchased Loans.

19.1. Servicing Released Basis. Consistent with Buyers’ purchase of the Purchased Loans on a
servicing-released basis, Seller shall have no ownership right whatsoever as to any of the
Purchased Loans or the servicing rights related thereto. Rather, Seller shall have only servicing
responsibilities with respect to the Purchased Loans that are subject to termination in accordance
with Section 19.7 hereof. Seller and Buyers hereby acknowledge and agree that the provisions
contained in this Section 19 are intended to be for the benefit of Buyers and are an essential part
of this Agreement, and that the nature and purpose of the purchase and sale obligations and the
servicing obligations hereunder are interrelated. Seller acknowledges that if an Event of Default
has occurred and is continuing, Administrative Agent for the benefit of the Buyers may, upon
written notice to the Seller, without payment of any termination fee or other amount to Seller,
sell any or all of the Purchased Loans on a servicing released basis at the cost and expense of
Seller.

 

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19.2. Servicing and Subservicing. Seller hereby agrees, for the benefit of the Buyers, to
service or contract with Servicer and Subservicers to service the Purchased Loans in accordance
with Accepted Servicing Practices. Seller’s fees for its duties as Servicer, until terminated
under Section 19.7, shall be twenty-five (25) basis points per annum on the unpaid principal
balance of each Purchased Loan, payable from Income in accordance with the provisions of Section
8.2. Servicer shall (i) comply with all applicable Federal, State and local laws and regulations
in all material respects, (ii) maintain all state and federal licenses necessary for it to perform
its servicing responsibilities hereunder and (iii) not impair the rights of Buyers in any Purchased
Loans or any payment thereunder. Administrative Agent may terminate the servicing of any Purchased
Loan with the then existing Servicer in accordance with Section 19.7 hereof. Seller shall not be
entitled to any servicing fee or other compensation in connection with its performance of the
servicing responsibilities with respect to the Purchased Loans except to the extent that Seller is
Servicer; provided that nothing in this Section shall be deemed to impair the rights of any
Subservicer to fees and other compensation to which it is entitled under the applicable Servicing
Agreement.

19.3. Escrow Payments. Seller shall cause Servicer and any Subservicers to hold or cause to
be held all escrow payments collected by Seller with respect to any Purchased Loans in trust
accounts and shall apply the same for the purposes for which such funds were collected.

19.4. Escrow and Income after Event of Default. After the occurrence and during the
continuance of an Event of Default, (i) Seller shall cause Servicer and any Subservicers to deposit
all Income, excluding escrow payments, into the Income Account within two (2) Business Days of
receipt by Servicer or such Subservicer (ii) all funds received on or in connection with a
Purchased Loan shall be received and held by Seller, Servicer and each Subservicer in trust for the
benefit of the Administrative Agent on behalf of the Buyers as owner of the Purchased Loans and
(iii) neither Seller nor Servicer shall be deemed to have any rights or ownership interest in such
funds prior to their being remitted to the Administrative Agent on behalf of the Buyers.

19.5. Servicing Records. Seller agrees that Administrative Agent, on behalf of the Buyers, is
the owner of all servicing records, including but not limited to any and all servicing agreements,
files, documents, records, data bases, computer tapes, copies of computer tapes, proof of insurance
or guaranty coverage, insurance or guaranty policies, appraisals, other closing documentation,
payment history records, and any other records relating to or evidencing the servicing of Mortgage
Loans (the “Servicing Records”). The Servicing Records are and shall be held in trust by
Seller, Servicer and each Subservicer for the benefit of Administrative Agent as the owner thereof
on behalf of the Buyers. Upon notice from Administrative Agent after the occurrence and during the
continuance of an Event of Default, Seller will cause each Servicer and Subservicer to (i)
designate Buyers as the purchaser of each Purchased Loan in its collateral tracking system, (ii)
segregate such Servicing Records from any and all servicing agreements, files, documents, records,
data bases, computer tapes, copies of computer tapes, proof of insurance coverage, insurance
policies, appraisals, other closing documentation, payment history records, and any other records
relating to or evidencing the servicing of assets that are not Purchased Loans, (iii) safeguard
such Servicing Records and (iv) deliver them promptly to Administrative Agent or its designee
(including Custodian) at Administrative Agent’s request.

 

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19.6. Subservicer Instruction Letter. Seller shall, prior to the initial Purchase Date of
Mortgage Loans serviced by each Subservicer, provide to Buyers a Subservicer Instruction Letter
addressed to and agreed to by any Subservicer of the related Purchased Loans.

19.7. Termination of Servicing. Upon the occurrence and during the continuance of (i) a
Default, other than a Default with regard to Section 16.3, 16.5 and 16.18(e), or (ii) any Event of
Default hereunder Administrative Agent shall have the right to (A) terminate Seller’s, Servicer’s
and any Subservicer’s rights, if any, and obligations with respect to servicing of the Purchased
Loans without payment of any penalty or termination fee (1) immediately with respect to Seller and
(2) with respect to any Servicer (other than Seller) or Subservicer, as promptly as possible
subject to the terms and conditions of the applicable Servicing Agreement and Subservicer
Instruction Letter; provided that any such termination shall be deemed to have occurred
automatically upon the occurrence of an Event of Default set forth in Section 18.1(b) above, (B)
require Seller to enforce its rights and remedies, as agent for and for the benefit of Buyers in
accordance with Administrative Agent’s commercially reasonable instructions, with respect to any
Purchased Loans under any Servicing Agreement, and (C) succeed to the rights and remedies of Seller
with respect to any Purchased Loans under any Servicing Agreement to the extent permitted by, and
subject to, the terms of such Servicing Agreement (but not the obligations or liabilities of Seller
incurred prior to the date of such succession) and related Subservicer Instruction Letter. Upon
any such termination, Seller shall, and shall cause each Subservicer to, (i) perform the servicing
responsibilities with respect to the Purchased Loans in accordance with the terms of this Agreement
until the transfer of servicing responsibilities is effectuated and (ii) cooperate, at Seller’s
expense, in transferring such servicing responsibilities with respect to the Purchased Loans to a
successor Servicer appointed by Administrative Agent and the Syndication Agent in their sole
discretion. Upon termination of Seller as Servicer and without limiting the generality of the
foregoing, Seller shall, in the manner and at such times as the successor servicer or
Administrative Agent shall request, (i) promptly transfer all data in the Servicing Records
relating to the Purchase Loans to the successor servicer in such electronic format as the successor
servicer may reasonably request, (ii) promptly transfer to the successor servicer, Administrative
Agent or its designee, all other files, records correspondence and documents relating to the
Purchased Loans and (iii) use commercially reasonable efforts to cooperate and coordinate with the
successor servicer and the Administrative Agent to comply with any applicable so-called “goodbye”
letter requirements or other applicable requirements of the Real Estate Settlement Procedures Act
or other applicable legal or regulatory requirement associated with the transfer of the servicing
of the Purchased Loans. Servicer acknowledges and agrees that if it fails to cooperate with the
Administrative Agent or any successor servicer in effecting the termination of Seller as Servicer
of any Purchase Loan or the transfer of all authority to service such Purchased Loan to such
successor servicer in accordance with the terms hereof, the Administrative Agent and Buyers will be
irreparably harmed and entitled to injunctive relief.

19.8. Notice from Seller. If Seller should discover that, for any reason whatsoever, any
entity responsible to Seller by contract for managing or servicing any Purchased Loan has failed to
perform in any material respects Seller’s obligations under the Repurchase Documents or any of the
material obligations of such entities with respect to the Purchased Loans, Seller shall promptly
notify Administrative Agent.

 

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19.9. Seller Remains Liable. Notwithstanding any Servicing Agreement or the provisions of
this Repurchase Agreement relating to agreements or arrangements between Seller and a Subservicer
or reference to actions taken through a Subservicer or otherwise, Seller shall remain obligated and
primarily liable to the Buyers for servicing and administering of the Purchased Loans in accordance
with the provisions hereof without diminution of such obligation or liability by virtue of such
Servicing Agreements or arrangements or by virtue of indemnification from a Subservicer and to the
same extent and under the same terms and conditions as if Seller alone were servicing and
administering the Purchased Loans. All actions of each Subservicer performed pursuant to the
related Servicing Agreement shall be performed as an agent of Seller with the same force and effect
as if performed directly by Seller and the Buyers shall have no obligations, duties or liabilities
with respect to any Subservicer including no obligation, duty or liability of the Buyers to pay any
Subservicer’s fees and expenses, provided, however, that each Subservicer may retain any amounts
collected by it that it is entitled to retain pursuant to the applicable Servicing Agreement or
Subservicer Instruction Letter. Seller shall be entitled to enter into any agreement with each
Subservicer for indemnification of Seller by the Subservicer and nothing contained in this
Repurchase Agreement shall be deemed to limit or modify such indemnification.

19.10. Backup Servicer. Administrative Agent and Syndication Agent shall have the right, in
their sole discretion, to appoint a Backup Servicer that will (i) serve as a backup servicer of the
Purchased Loans until such time as Administrative Agent and Syndication Agent shall elect to
appoint the Backup Servicer as successor servicer of the Purchased Loans and (ii) become the
successor servicer of the Purchased Loans at Administrative Agent’s and Syndication Agent’s option.
In connection with the appointment of a Backup Servicer as provided in the preceding sentence,
Administrative Agent and Syndication Agent may make such arrangements for the compensation of
Backup Servicer out of Income on the Mortgage Loans or otherwise as Administrative Agent and
Syndication Agent and such Backup Servicer shall agree. Seller shall provide Backup Servicer with
such data, files and information, in form, format and content as Backup Servicer may request, in
order to permit Backup Servicer to service the Mortgage Loans in accordance with Accepted Servicing
Practices; all such data, files and information shall be updated by Seller on a monthly basis as
required by Backup Servicer.

19.11. Successor Servicer. If Backup Servicer is appointed by Administrative Agent and
Syndication Agent to act as a successor servicer of the Purchased Loans pursuant to the preceding
section, Seller (in its capacity as Servicer hereunder) shall, and shall cause each Subservicer,
subject to such Subservicer’s rights under any applicable Servicing Agreement, and Subservicer
Instruction Letter, to discharge its servicing duties and responsibilities during the period from
the date it acquires knowledge of such transfer of servicing until the effective date thereof with
the same degree of diligence and prudence that it is obligated to exercise under this Agreement,
and shall take no action whatsoever that might impair or prejudice the rights or financial
condition of Backup Servicer. Within five (5) Business Days of the appointment of Backup Servicer
to act as successor servicer of the Purchased Loans, Seller shall, and shall cause each Subservicer
to, prepare, execute and deliver to Backup Servicer any and all documents and other instruments,
place in such successor’s possession all Servicing Records, and do or cause to be done all other
acts or things necessary or appropriate to effect the transfer of servicing to Backup Servicer,
including but not limited to the transfer and endorsement of the Mortgage Notes and related
documents, and the preparation and recordation of assignments of Mortgage.

 

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Seller shall (and shall cause each Subservicer to) cooperate with Administrative Agent and
Backup Servicer in effecting the transfer of servicing responsibilities to Backup Servicer,
including execution and delivery of servicing transfer notices to Mortgagors, MERS (if applicable),
taxing authorities and insurance companies, the transfer to Backup Servicer for administration by
it of all Income with respect to the Purchased Loans which shall at the time be held or received by
Seller or any Subservicer. Seller shall deliver immediately to Backup Servicer all Purchased Loan
documents and related documents and statements held by it or any Subservicer hereunder and Seller
shall account for all funds and shall execute and deliver such instruments and do such other things
as may reasonably be required to more fully and definitively vest in Backup Servicer all such
rights, powers, duties, responsibilities, obligations and liabilities of Seller as servicer of the
Purchased Loans.

20 Payment of Expenses; Indemnity.

20.1. Expenses.

(a) The Seller shall pay on demand all of the Administrative Agent’s and the
Syndication Agent’s reasonable out-of-pocket fees and expenses (including the fees and
expenses for legal services) incurred by the Administrative Agent, the Syndication Agent and
the Custodian in connection with this Agreement and the Custody Agreement and the
Transactions contemplated hereby and thereby, whether or not any Transactions are entered
into hereunder, including the reasonable out-of-pocket fees and expenses incurred in
connection with (i) the preparation, reproduction and distribution of this Agreement and the
Custody Agreement and any opinions of counsel, certificates of officers or other documents
contemplated by the aforementioned agreements, (ii) any Transaction under this Agreement,
(iii) the administration and syndication of this Agreement and of any Transaction and (iv)
any amendments and waivers regarding any of the foregoing. The obligation of the Seller to
pay such fees and expenses incurred prior to or in connection with the termination of this
Agreement shall survive the termination of this Agreement.

(b) The Seller shall pay all of the Administrative Agent’s, Syndication Agent’s and
each Buyer’s, out-of-pocket costs and expenses, including reasonable attorneys’ fees, after
the occurrence of any Default or Event of Default in connection with the enforcement of this
Agreement, the Custody Agreement and the other Repurchase Documents, including in connection
with any (i) bankruptcy, (ii) other insolvency proceeding, or (iii) any workout or
consultation involving the Buyers’ rights and remedies, the purchase and repurchase of the
Purchased Loans and the payment of Price Differential in connection therewith.

(c) The Seller shall pay, and hold the Administrative Agent, the Buyers and any other
owners or holders of any of the Obligations harmless from and against, any and all present
and future stamp, documentary and other similar taxes with respect to the foregoing matters
and save them each harmless from and against any and all liabilities with respect to or
resulting from any delay or omission to pay such taxes.

(d) The Seller shall pay all of the Administrative Agent’s Fees and any other fees
under this Agreement and the other Repurchase Documents.

 

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20.2. Indemnity. The Seller shall pay, and indemnify, defend and hold harmless the
Administrative Agent, the Syndication Agent, the Buyers and any of their respective officers,
directors, employees, agents, advisors and Affiliates (the “Indemnified Parties”) from and against,
the “Indemnified Liabilities”, which means any and all claims, liabilities, obligations, losses,
damages, penalties, judgments, suits, costs, expenses and disbursements (including reasonable
attorneys’ fees and disbursements) of any kind whatsoever which may be imposed upon, incurred by or
asserted against any of the Indemnified Parties in any way relating to or arising out of any of the
Repurchase Documents or any of the transactions contemplated thereby or the use of proceeds or
proposed use of proceeds thereof, provided that to the extent, if any, that any Indemnified
Liabilities are caused by any Indemnified Party’s gross negligence or willful misconduct, the
indemnity payable to that Indemnified Party shall be equitably and proportionately reduced,
although to the full extent permitted under applicable Law, such indemnity shall not be reduced
on account of such claims, liabilities, etc. to any extent (i) owed, in whole or in part, under any
claim or theory of strict liability, or (ii) caused or contributed to by any Indemnified Party’s
sole or concurrent ordinary negligence that does not amount to gross negligence or willful
misconduct, it being the Seller’s intention to hereby indemnify the Indemnified Parties against
their own strict liability and their own sole or concurrent ordinary negligence.

21 Single Agreement.

The Buyers, the Administrative Agent and Seller acknowledge that, and have entered into this
Agreement and will enter into each Transaction hereunder in consideration of and in reliance upon
the fact that, all Transactions hereunder constitute a single business and contractual relationship
and have been made in consideration of each other. Accordingly, each of the Administrative Agent,
the Buyers and the Seller agrees (i) to perform all of its obligations in respect of each
Transaction hereunder, and that a default in the performance of any such obligations shall
constitute a default by it in respect of all Transactions hereunder, (ii) that each of them shall
be entitled to set off claims and apply property held by them in respect of any Transaction against
obligations owing to them in respect of any other Transactions hereunder and (iii) that payments,
deliveries and other transfers made by either of them in respect of any Transaction shall be deemed
to have been made in consideration of payments, deliveries and other transfers in respect of any
other Transactions hereunder, and the obligations to make any such payments, deliveries and other
transfers may be applied against each other and netted.

22 Relationships among the Administrative Agent and the Buyers.

22.1. Administrative Agent’s Duties. In its capacity as Administrative Agent until all
Purchased Loans have all been repurchased by the Seller, all other Obligations have been satisfied
and the Buyers have no further Commitments or other obligations under this Agreement and the other
Repurchase Documents, the Administrative Agent shall:

(a) hold the Repurchase Documents and (by the Custodian’s holding the Purchased Loans
as bailee for the Administrative Agent) the Purchased Loans for the benefit of each Buyer,
and each Buyer (including U.S. Bank) shall be deemed to have an interest in the Repurchase
Documents on any day in proportion to its Pro Rata undivided ownership interest in the
Purchased Loans on that day;

 

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(b) send timely bills to the Seller for the Facility Fee and other sums due and receive
all sums on account of the Purchased Loans or with respect to them;

(c) use reasonable diligence to obtain from the Seller and promptly remit to each Buyer
such Buyer’s Pro Rata share of Repurchase Prices for Purchased Loans and other sums received
by the Administrative Agent on account of the Purchased Loans or with respect to them, in
accordance with this Agreement;

(d) use reasonable diligence to recover from the Seller all expenses incurred that are
reimbursable by the Seller, and promptly remit to each Buyer its Pro Rata share (if any)
thereof;

(e) enforce the terms of this Agreement, including, with the approval or at the
direction of the Required Buyers, the remedies afforded the Buyers pursuant to Sections
18.2, 18.3, 18.4 and 18.10;

(f) hold the Purchased Loans and all security interests established hereby ratably for
itself as Administrative Agent and representative of the Buyers; and

(g) request from the Seller, and promptly forward to the Buyers, such information as
any of the Buyers may reasonably request Administrative Agent to obtain from the Seller,
consistent with the terms of this Agreement.

22.2. Limitation on Duty to Disclose. Except as expressly set forth herein, the
Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Seller or any of its Subsidiaries or Affiliates that
is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates
in any capacity.

22.3. Actions Requiring All Buyers’ Consent. No amendment or waiver of, or any action with
respect to, any provision of this Agreement or any of the Repurchase Documents shall in any event
be effective unless the same shall be in writing signed by all Buyers with respect to any amendment
or waiver or any action that:

(a) Increases the Maximum Aggregate Commitment (it being understood that, for purposes
of this Section 22.3(a), the Buyers’ execution of this Agreement evidences such Buyers’
consent to any increase in the Maximum Aggregate Commitment in accordance with the
provisions of Section 2.3 hereof).

(b) Agrees to any reduction in any Pricing Rate, Repurchase Price or fee provisions of
this Agreement, excluding the provisions relating to the Administrative Agent’s Fee.

(c) Acknowledges termination of the Buyers’ ownership interest in the Purchased Loans
or releases any Lien held under the Repurchase Documents other than in accordance with the
Repurchase Documents.

 

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(d) Changes any Buyer’s Pro Rata share of ownership of the Purchased Loans other than
in accordance with the express provisions of the Repurchase Documents.

(e) Agrees to any change in the nature of the Buyers’ respective Commitments from
several to joint, in whole or in part.

(f) Agrees to any change to the definition of “Required Buyers” or to any provisions of
this Agreement or any of the other Repurchase Documents that requires the consent, approval
or satisfaction of all of the Buyers or each of the Buyers.

(g) Extends the Termination Date or the due date of any required payment other than in
accordance with the express provisions of the Repurchase Documents.

(h) Agrees to any change in this Section.

(i) Agrees to any change in the Buyer’s Margin Percentage rates.

(j) Releases the Seller from any of its obligations other than in accordance with the
express conditions of the Repurchase Documents or change any amount due under the terms of
the Repurchase Documents.

(k) Modifies the sharing provisions of Section 22.7.

In the event of any conflict between the provisions of this Section 22.3 and any other provisions
of this Agreement or the other Repurchase Documents, this provisions of this Section 22.3 shall
govern.

22.4. Actions Requiring Required Buyers’ Consent. All amendments hereto, waivers or actions
taken hereunder that are not described in Section 22.3 and Section 22.5, require
the written consent or ratification of the Required Buyers except for actions that are specifically
reserved to the Administrative Agent and the Syndication Agent under Section 6; provided
that no amendments, waivers or actions taken hereunder that (i) relate to the rights or obligations
of the Administrative Agent shall be effective without the prior written consent of the
Administrative Agent, and (ii) relate to the rights or obligations of the Syndication Agent shall
be effective without the prior written consent of the Syndication Agent. The Administrative Agent
will, at the direction of the Required Buyers, but may not, without the consent of the Required
Buyers, take any enforcement action or exercise any remedies under this Agreement and the
Repurchase Documents which arise after the occurrence of an Event of Default.

 

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22.5. Administrative Agent’s Discretionary Actions. Subject to the limitations of
Sections 22.3 and 22.4, in its capacity as Administrative Agent and without seeking
or obtaining the consent of any of the other Buyers (although it may elect to obtain such consent
before acting it if deems that desirable), the Administrative Agent may:

(a) agree or consent to any change in the aggregate not involving more than $3,000,000
of the Purchased Loans at any time in the handling of the Purchased Loans and which in the
Administrative Agent’s reasonable judgment is unlikely to have a material adverse effect on
any of the Central Elements in respect of the Seller or any of
its Restricted Subsidiaries (for purposes of clarity, this allows the Administrative
Agent to temporarily suspend the effects of one or more Disqualifiers for Purchased Loans,
if the Administrative Agent in its sole and absolute discretion determines that such
Disqualifier may be resolved or corrected and to allow funding of a Wet Loan one Business
Day after the advance of funds for the purchase of such Wet Loan, in each case within the
limitation set forth in this Section 22.5(a));

(b) reconvey, exchange or otherwise change, in whole or in part, any Purchased Loans
which are required to be reconveyed, exchanged or changed in accordance with the Repurchase
Documents; and

(c) do or perform any act or thing which, in the Administrative Agent’s reasonable
judgment, is necessary or appropriate to enable the Administrative Agent to properly
discharge and perform its duties under this Agreement or the Custody Agreement, or which in
its reasonable judgment is necessary or appropriate to preserve or protect the validity,
integrity or enforceability of the Purchased Loans and/or the Repurchase Documents, the
Buyers’ Pro Rata undivided ownership interests in and to the Purchased Loans, the Lien
created by this Agreement and its priority, or any of the Central Elements in respect of the
Seller or any of its Subsidiaries, or to preserve and protect the interest of the Buyers in
any of the foregoing.

22.6. Buyers’ Cooperation. The Buyers agree to cooperate among themselves and with the
Administrative Agent and from time to time upon the Administrative Agent’s request, to execute and
deliver such papers as may be reasonably necessary to enable the Administrative Agent, in its
capacity as Administrative Agent, to effectively administer this Agreement and the other Repurchase
Documents, the Purchased Loans and each Buyer’s Pro Rata undivided ownership interest in the
Purchased Loans in the manner contemplated by this Agreement. The Administrative Agent and each of
the Buyers agree to provide notice to the other parties if they have actual knowledge of an Event
of Default at any time.

22.7. Buyers’ Sharing Arrangement. Each of the Buyers agrees that if it should receive any
amount (whether by voluntary payment, realization upon security, the exercise of the right of
set-off, or otherwise) which is applicable to the payment of Repurchase Price, Margin Deficit,
Pricing Differential or any fees, that with respect to the related sum or sums received (or
receivable) by the other Buyers is in greater proportion than that Buyer’s Pro Rata ownership of
the Purchased Loans, then such Buyer receiving such excess amount shall purchase from the other
Buyers an participation interest in the Purchased Loans in such amount as shall result in Pro Rata
participation and ownership by all of the Buyers in such excess amount; provided that if all or any
portion of such excess amount is thereafter recovered from such Buyer, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery; and provided further that
the provisions of this Section 22.7 shall not apply to the Administrative Agent’s Fee under this
Agreement or to any fees which the Custodian or any successor custodian might be paid pursuant to
the Custody Agreement.

 

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22.8. Buyers’ Acknowledgment. Each Buyer other than U.S. Bank and JPM hereby acknowledges
that U.S. Bank and JPM have made no representations or warranties with respect to any Purchased
Loan other than as expressly set forth in this Agreement and that U.S. Bank
and JPM shall have no responsibility (each in its capacity as a Buyer, the Administrative
Agent, Syndication Agent or any other capacity or role) for:

(a) the marketability or collectability of the Purchased Loans;

(b) the genuineness, validity, likelihood of performance as and when due or
enforceability of any Investor Commitment or the solvency or performance record of any
Approved Investor;

(c) the validity, enforceability or any legal effect of any of the Repurchase
Documents, any Loan Papers or any insurance, bond or similar device purportedly protecting
any obligation to the Buyers or any Purchased Loans; or

(d) the financial condition of the Seller or any of its Subsidiaries or Affiliates, the
status, health or viability of any industry in which any of them is involved, the prospects
for repurchase of the Purchased Loans, the genuineness, validity or enforceability of any
warehousing facility or repurchase agreement between the Seller and any other lender or
repurchase agreement counterparty, the value of any Purchased Loans, the effectiveness of
any of the provisions of the Repurchase Documents (including the financial covenants, tests
and hedging requirements) or any aspect of their implementation or administration at any
time to reduce or control risks of any type, to produce returns, profits, yields or spreads
or to reduce or control losses or the accuracy of any information supplied by or to be
supplied in connection with any of the Seller or any of its Restricted Subsidiaries or
Affiliates, or otherwise with respect to this Agreement, any Purchased Loans or any source
of equity or other financing for any of the Seller, any of its Affiliates or any other
warehouse lender or repurchase agreement counterparty.

22.9. Administrative Agent and Syndication Agent Market Value Determinations. The parties
hereto agree and acknowledge that, in determining the Market Value of the Purchased Loans, each of
the Administrative Agent and the Syndication Agent (i) shall determine Market Value as a third
party service provider, in accordance with standards customarily applicable in the financial
industry to third party service providers providing values on comparable assets to be used in
connection with the financing of such assets, and (ii) shall not be obligated to do that same or
similar amount of work or analysis as if it were valuing its own assets, or as if it were valuing
such assets for the purchase or sale thereof by it or any other party. The parties hereto agree
and acknowledge that any asset valuation information produced by the Administrative Agent or the
Syndication Agent is intended to be and should be used solely for the limited uses specified in
this Agreement and the other Repurchase Documents, and is not intended to be and should not be used
by any Person for any other purpose. The parties hereto further agree and acknowledge that the
Administrative Agent or the Syndication Agent may elect to determine the Market Value for any
Purchased Loan by determining the market bid price for a portfolio containing all Purchased Loans
and allocating such portfolio market bid price among each individual Purchased Loan.

 

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22.10. Administrative Agent’s Representations to Buyers. The Administrative Agent hereby
represents and warrants to the Buyers (other than U.S. Bank) that:

(a) the Administrative Agent has delivered to each Buyer true copies of the originals
of those Repurchase Documents which have been specifically requested by that Buyer; and

(b) the Administrative Agent has no current actual knowledge that any Default or Event
of Default has occurred and is continuing on the Effective Date.

22.11. Administrative Agent’s Duty of Care, Express Negligence Waiver and Release. At all
times until all Purchased Loans have all been repurchased by the Seller and the Buyers have no
further commitments or other obligations under this Agreement and the other Repurchase Documents,
the Administrative Agent shall exercise the same degree of care in handling the Purchased Loans as
U.S. BANK exercises with respect to loans that are held solely by U.S. BANK for its own account,
and the Administrative Agent, in its capacity as Administrative Agent shall have no responsibility
to the Buyers other than to exercise such standard of care and, in any event, U.S. BANK shall have
no liability with respect to any other Buyer’s Pro Rata interest in the Purchased Loans except for
U.S. BANK’s own fraud, gross negligence or willful misconduct. Except in the case of its own
fraud, gross negligence or willful misconduct, neither the Administrative Agent, any Buyer, nor any
of their officers, directors, employees, attorneys or Administrative Agents shall be liable for any
action taken or omitted to be taken by it or them under this Agreement, the Custody Agreement or
any of the other Repurchase Documents reasonably believed by it or them to be within the discretion
or power conferred upon it or them by the Repurchase Documents or be responsible for consequences
of any error of judgment, the Buyers expressly intending to hereby waive and release all present
and future claims and rights against the Administrative Agent (i) owed, in whole or in part, under
any claim or theory of strict liability or (ii) for damages or injuries caused or contributed to by
any Indemnified Party’s sole or concurrent ordinary negligence that does not amount to gross
negligence or willful misconduct. Except as otherwise specifically and expressly set forth in this
Agreement, the Administrative Agent shall not be responsible in any manner to anyone for the
effectiveness, enforceability, genuineness, validity or due execution of this Agreement, any
supplement, amendment or restatement of it or of any other Repurchase Documents or for any
representation, warranty, document, certificate, report or statement made or furnished in, under or
in connection with this Agreement or any of the other Repurchase Documents or be under any
obligation to anyone to ascertain or to inquire as to the performance or observation of any of the
terms, covenants or conditions of this Agreement or of the other Repurchase Documents on the part
of the Seller or anyone else. Without limiting the generality of the foregoing provisions of this
Section, the Administrative Agent, in its capacity as Administrative Agent, may seek and rely upon
the advice of legal counsel in taking or refraining to take any action under any of the Repurchase
Documents or otherwise in respect of any Purchased Loans, this Agreement and its parties, and shall
be fully protected in relying upon such advice.

 

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22.12. Syndication Agent’s Duty of Care; Express Negligence Waiver and Release; merger. 

(a)
The syndication agent shall have no obligations under this agreement except for those explicitly
set forth herein. Except in the case of its own fraud, gross negligence or willful misconduct,
neither the Syndication Agent nor any of its officers, directors, employees, attorneys
or agents shall be liable for any action taken or omitted to be taken by it or them under this
Agreement or any of the other Repurchase Documents reasonably believed by it or them to be within
the discretion or power conferred upon it or them by the Repurchase Documents or be responsible for
consequences of any error of judgment, the Buyers and the Administrative Agent expressly intending
to hereby waive and release all present and future claims and rights against the Syndication Agent
(i) owed, in whole or in part, under any claim or theory of strict liability or (ii) for damages or
injuries caused or contributed to by any Indemnified Party’s sole or concurrent ordinary negligence
that does not amount to gross negligence or willful misconduct. The Syndication Agent shall not be
responsible in any manner to anyone for the effectiveness, enforceability, genuineness, validity or
due execution of this Agreement, any supplement, amendment or restatement of it or of any other
Repurchase Documents or for any representation, warranty, document, certificate, report or
statement made or furnished in, under or in connection with this Agreement or any of the other
Repurchase Documents or be under any obligation to anyone to ascertain or to inquire as to the
performance or observation of any of the terms, covenants or conditions of this Agreement or of the
other Repurchase Documents on the part of the Seller or anyone else. Without limiting the
generality of the foregoing provisions of this Section, the Syndication Agent, in its capacity as
Syndication Agent, may seek and rely upon the advice of legal counsel in taking or refraining to
take any action under any of the Repurchase Documents or otherwise in respect of any Purchased
Loans, this Agreement and its parties, and shall be fully protected in relying upon such advice.

(b) Any Person into which the Syndication Agent may be merged or converted or with which it
may be consolidated, or any Person surviving or resulting from any merger, conversion or
consolidation to which the Syndication Agent shall be a party or any Person succeeding to the
commercial banking business of the Syndication Agent, shall be the successor Syndication Agent
without the execution or filing of any paper or any further act on the part of any of the parties.

22.13.
Calculations of Shares of Principal and Other Sums. Except as provided to the
contrary in Section 6.4 (“Increased Cost”), Section 6.5 (“Capital Adequacy”), Section 7.1
(“Payments to be free of Taxes; Withholding”), Section 7.3 (“Taxes Indemnity”), Section 9.2
(“Administrative Agent’s Fee”) and Section 20 (“Payment of Expenses; Indemnity”), U.S. Bank’s and
each other Buyer’s respective shares of Repurchase Prices and other sums received by the
Administrative Agent on account of the Purchased Loans or with respect to them shall be calculated
on the basis of each Buyer’s (including U.S. Bank’s) respective Pro Rata ownership interests in the
Purchased Loans from time to time.

22.14. Resignation or Removal of the Administrative Agent. The Administrative Agent,
or any agent or agents hereafter appointed, at any time may resign by giving written notice of
resignation to the Seller and the Buyers and complying with the applicable provisions of this
Section 22. The Required Buyers may remove the Administrative Agent for acts constituting gross
negligence or willful misconduct by giving notice to the Administrative Agent, the Buyers and the
Seller. Upon receiving such notice of resignation or removal, with the Seller’s consent,
which consent shall not unreasonably be delayed or withheld (provided that the Seller’s consent
shall not be required if a Default has occurred that has not been cured by the Seller or declared
in writing by the Administrative Agent to have been waived or any Event of Default has occurred
that the Administrative Agent has not declared in writing to have been cured or waived), a
successor Administrative Agent shall be promptly appointed by the Required Buyers by written
instrument, in duplicate, one copy of which instrument shall be delivered to the resigning or
removed Administrative Agent and one copy to the successor Administrative Agent.

 

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22.15. Effective Date of Resignation of the Administrative Agent. No resignation or
removal of the Administrative Agent shall be effective until both (i) sixty (60) days have elapsed
after notice to the Seller and the Buyers of the Administrative Agent’s election to resign or its
removal, and (ii) a successor agent has been appointed pursuant to the provisions of this Section
22 and has accepted the appointment as provided in Section 22.12; provided that if such appointment
has not been so made or if the Administrative Agent’s duties have not been assumed by the appointed
successor on or before ninety (90) days after the date of the Administrative Agent’s notice of
resignation, the Administrative Agent may cease acting as agent and representative of the Buyers
hereunder, and shall have no further responsibility therefor, at the close of business on the tenth
(10th) Business Day after such ninety-day period.

22.16. Successor Administrative Agent. Any successor Administrative Agent appointed
as provided in this Section shall execute and deliver to the Seller, the Buyers and to the
predecessor Administrative Agent an instrument accepting such appointment, and thereupon the
resignation of the predecessor Administrative Agent shall become effective and such successor
Administrative Agent, without any further act, deed or conveyance, shall become vested with all the
rights and obligations of its predecessor, with like effect as if originally named as the
Administrative Agent; provided that upon the written request of the Seller, all of the Buyers or
the successor Administrative Agent, the resigning Administrative Agent shall execute and deliver
(a) an instrument transferring to such successor Administrative Agent all of the rights of the
resigning Administrative Agent and (b) to such successor Administrative Agent such instruments as
are necessary to transfer the Purchased Loans and the Repurchase Documents to such successor
Administrative Agent (including assignments of all Purchased Loans or Repurchase Documents).
Upon the request of any such successor Administrative Agent made from time to time, the Seller
shall execute any and all papers which the successor Administrative Agent shall request or require
to more fully and certainly vest in and confirm to such successor Administrative Agent all such
rights.

22.17. Merger of the Administrative Agent. Any Person into which the Administrative
Agent may be merged or converted or with which it may be consolidated, or any Person surviving or
resulting from any merger, conversion or consolidation to which the Administrative Agent shall be a
party or any Person succeeding to the commercial banking business of the Administrative Agent,
shall be the successor Administrative Agent without the execution or filing of any paper or any
further act on the part of any of the parties.

 

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22.18. Participation; Assignment.

(a) Participations. Each Buyer reserves the rights, without the consent of
the Seller, to sell to one or more banks or other entities (a “Participant”), participations
in all or any part of such Buyer’s Commitment and Pro Rata ownership share of the Purchased
Loans or to pledge, collaterally assign or grant a security interest in any or all of its
interests under this Agreement and in the Purchased Loans to any Federal Reserve Bank or any
other Person; provided that no such pledge, collateral assignment or grant of a security
interest shall release a Buyer from any of its obligations hereunder or substitute
any such pledgee or assignee for such Buyer as a party hereto. Participants
shall have no rights under the Repurchase Documents other than certain voting rights as
provided below. Each Buyer shall be entitled to obtain (on behalf of its
Participants) the benefits of this Agreement with respect to all Participants in its Funding
Shares of Open Transactions outstanding from time to time; provided that the Seller shall
not be obligated to pay any amount in excess of the amount that would be due such Buyer
calculated as though no participation had been sold. No Buyer shall sell any
participating interest under which the Participant shall have any rights to approve any
amendment, modification or waiver of any Repurchase Documents, except to the extent such
amendment, modification or waiver requires the consent of all Buyers under Section 22.3.
In those cases (if any) where a Buyer grants rights to any of its Participants to
approve amendments, modifications or waivers of any Repurchase Documents pursuant to the
immediately preceding sentence, such Buyer must include a voting mechanism as to all such
approval rights in the relevant participation agreement(s) whereby a readily-determinable
fraction of such Buyer’s portion of the Purchased Loans (whether held by such Buyer or
participated) shall control the vote for all of such Buyer’s portion of the Purchased Loans;
provided that if no such voting mechanism is provided for or is fully and immediately
effective, then the vote of such Buyer itself shall be the vote for all of such Buyer’s
portion of the Purchased Loans. Except in the case of the sale of a participating
interest to a Buyer, the relevant participation agreement shall not permit the participant
to transfer, pledge, assign, sell any subparticipation in or otherwise alienate or encumber
its participation interest in the Purchased Loans. In no event may a Participant
be an Affiliate of the Seller.

(b) Assignments. Without any requirements for further consent of the Seller,
any Buyer may assign any or all of its rights and obligations under the Repurchase Documents
to its own Buyer Affiliates or to an assignee that is a Buyer with a Commitment hereunder
immediately prior to giving effect to such assignment. With the prior written
consent of the Administrative Agent, the Syndication Agent and (unless an Event of Default
has occurred that the Administrative Agent has not declared in writing to have been cured or
waived) the Seller, which consent of the Seller will not be unreasonably withheld, and at no
cost to the Seller or the Administrative Agent, any Buyer may assign any or all of its
rights and obligations under the Repurchase Documents to one or more assignees; provided
that (1) except in the case of an assignment to a Buyer or a Buyer Affiliate or an
assignment of the entire remaining amount of the assigning Buyer’s Committed Sum, no such
assignment shall be in an amount less than Fifteen Million Dollars ($15,000,000), unless
each of the Administrative Agent, the Syndication Agent and (unless a Default or Event of
Default has occurred and continuing) the Seller consents thereto, (2) each partial
assignment shall be made as an assignment of a proportionate part of all the assigning
Buyer’s rights and obligations under this Agreement, (3) the assignee, if it is not a Buyer
hereunder immediately prior to giving effect to such assignment, shall deliver to the
Administrative Agent an administrative questionnaire in which the assignee designates one or
more credit contacts to whom all syndicate-level information (which may contain material
non-public information about the Seller and its Affiliates or their respective securities)
will be made available and who may receive such information in accordance with the
assignee’s compliance procedures and applicable laws, including Federal

 

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and state securities
laws, (4) the assignee may not be an Affiliate of the Seller and (5) each such assignment
shall be effected pursuant to an Assignment and Assumption substantially in the form of
Exhibit F, to be delivered to the Administrative Agent together with a processing and
recording fee of $3,500 (which shall not be applicable with respect to the initial
syndication of the Transactions), with the assignor to have no further right or obligation
with respect to the rights and obligations assigned to and assumed by the assignee.
The Seller agrees that, as to any assignment to any Buyer Affiliate or if the Seller
consents to any other assignment, the Seller will cooperate with the prompt execution and
delivery of documents reasonably necessary to such assignment process to the extent that the
Seller incurs no cost or expense that is not paid by the assigning Buyer and the assignee
immediately upon delivery to the Seller of such assignment form. Subject to
acceptance and recording thereof pursuant to Section 22.18(d), from and after the effective
date specified in each Assignment and Assumption, the assignee shall be a Buyer for all
purposes under this Agreement and the other Repurchase Documents, if the assignment is an
assignment of all of the assignor’s interest in the Purchased Loans then held by the
Administrative Agent (or by the Custodian on behalf of the Administrative Agent), the
assignor shall be automatically released from all of its obligations and liabilities
hereunder, and, whether it is such a complete assignment or only a partial assignment, the
Committed Sums shall be adjusted appropriately, and the parties agree to approve in writing
a revised and updated version of Schedule BC. Any assignment or transfer by a
Buyer of rights or obligations under this Agreement that does not comply with this Section
22.18(b) shall be treated for purposes of this Agreement as a sale by such Buyer of a
participation in such rights and obligations in accordance with Section 22.18(a).

(c) The Administrative Agent, acting for this purpose as an Administrative Agent of the
Seller, shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of the Buyers,
and the Committed Sum of, and amount owing to, each Buyer pursuant to the terms hereof from
time to time the (the “Register”). The entries in the Register shall be
conclusive, and the Seller, the Administrative Agent and the Buyers may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Buyer hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Seller and any Buyer, at any reasonable
time and from time to time upon reasonable prior notice.

(d) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Buyer and an assignee, the assignee’s completed administrative questionnaire
(unless the assignee shall already be a Buyer hereunder), the processing and recordation fee
referred to in Section 22.18(b) and any written consent to such assignment required by
Section 22.18(b) hereof, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register; provided that if
either the assigning Buyer or the assignee shall have failed to make any payment required to
be made by it hereunder, the Administrative Agent shall have no obligation to accept such
Assignment and Assumption and record the information therein in the Register unless and
until such payment shall have been made in full, together with all accrued interest
thereon. No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as provided in
this Section.

 

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(e) If any interest in this Agreement is so transferred to any Person that is organized
under the Legal Requirements of any jurisdiction other than the United States of America or
any State thereof, the transferor Buyer shall cause such Person, concurrently with the
effectiveness of such transfer to comply with the relevant provisions of Section 7.5.

(f) The Seller shall not be required to incur any cost or expense incident to any sale
to a Person of any interest in the Repurchase Documents and the Purchased Loans pursuant to
this Section 22 and all such costs and expenses shall be for the account of the Buyer
selling its rights in the Purchased Loans to such Person.

22.19. The Administrative Agent and the Buyers are the only Beneficiaries of this Section.
Other than the provisions of Sections 22.9 and 22.18, this Section is intended to bind and benefit
only U.S. Bank, JPM and the other Buyers, and does not benefit and shall not be enforceable by the
Seller or any other Person whatsoever.

23 Notices and Other Communications.

All notices, demands, consents, requests and other communications required or permitted to be
given or made hereunder (collectively, “Notices”), except as otherwise specifically provided in
this Agreement, shall be in writing and shall be either (a) delivered in person, or (b) mailed, by
certified, registered or express mail, postage prepaid, addressed to the respective parties hereto
at their respective addresses specified below, or (c) sent in a prepaid overnight delivery envelope
via a nationally-recognized courier service (such as Federal Express, United Parcel Service or DHL
Worldwide Express) that provides weekday next-Business Day delivery service to the addressee’s
location, (d) faxed to their respective fax numbers (with a paper copy mailed the same day as
aforesaid) as hereinafter set forth or (e) emailed (with a confirming fax for any funding request)
and/or posted to an Internet or intranet website and acknowledged as received as hereinafter set
forth; provided that any party may change its address for notice by designating such party’s new
address in a Notice to the other parties given at least five (5) Business Days before it shall
become effective. All Notices shall be conclusively deemed to have been properly given or served
when received in person, regardless of how sent. Regardless of when received, all Notices shall be
conclusively deemed to have been properly given or served if addressed in accordance with this
Section 23 and (1) if mailed, on the second (2nd) Business Day after being deposited in the mails,
or (2) if sent by nationally-recognized courier service, on the next Business Day or (3) if faxed
before the close of business at the recipient’s location on a Business Day, when faxed or if faxed
after the close of business at the recipient’s location or on a day that is not a Business Day, on
the next Business Day thereafter to the fax number set forth below (provided that a paper copy is
mailed on the same day as aforesaid) or (4) if e-mailed, 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 any such faxed or
emailed notice or other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent at the

 

98

 

 opening of
business on the next business day for the recipient, and (5) notices or communications posted to an internet or intranet website shall be deemed
received upon the “receipt” by the intended recipient at its e-mail address as described in
clause (4) above of notification that such notice or communication is available and identifying the
website address therefor:

If to the Seller:

DHI Mortgage Company, Ltd.

12357 Riata Trace Parkway, Suite C150

Austin, Texas 78727

Attention: Mark Winter

Telephone:

Fax:

email:

If to U.S. Bank as Administrative Agent or as a Buyer:

U.S. Bank National Association

800 Nicollet Mall

Mail Station: BC-MN-H03B

Minneapolis, MN 55402

Attention:

Telephone:

Fax:

email:

with copies to:

If to JPMorgan as the Syndication Agent or as a Buyer:

JPMorgan Chase Bank, N.A.

717 Travis, 6th Floor North

Houston, Texas 77002 (for messenger deliveries)

P.O. Box 2558

Houston, Texas 77252 (for mail deliveries)

Attention: Stephanie K. Rudd, Managing Director

                  Corporate Mortgage Finance Group

Telephone: 713-216-5442

Fax: 713-216-1567, attention: Stephanie K. Rudd

email: stephanie.k.rudd@chase.com

with copies to: Sharon P. Craft

Telephone: 713-750-7911

Fax: 713-427-6453

email: sharon.p.craft@jpmchase.com

If to the other Buyers, at the addresses shown on Schedule 23.

 

99

 

24 Miscellaneous.

24.1. Further Assurances. At any time and from time to time, at the sole expense of the
Seller, the Seller or the Servicer shall promptly provide such further reasonable assurances,
documents and agreements and undertake such actions as the Administrative Agent may reasonably
request in order to effect the purposes of this Agreement, including the assignment, conveyance and
transfer of all right, title and interest of each Purchased Loan from the Seller to the
Administrative Agent, or to otherwise obtain or preserve the benefits or rights granted under this
Agreement. In the event Seller, Servicer or any subservicer, in the performance of the Servicing
Functions shall foreclose any Mortgage for which the Administrative Agent and the Buyers have not
received the Repurchase Price, all such actions shall be taken in the name of the Administrative
Agent for the benefit of the Buyers and in accordance with Accepted Servicing Practices.

24.2. Administrative Agent as Attorney in Fact. The Administrative Agent is hereby appointed
the attorney-in-fact of the Seller for the purpose of carrying out the provisions of this Agreement
and taking any action and executing any instruments or documents that the Administrative Agent may
deem reasonably necessary or advisable to accomplish the purposes hereof, which appointment as
attorney-in-fact is irrevocable and coupled with an interest, although the Administrative Agent
agrees not to exercise its rights under this power of attorney unless, in its opinion or the
opinion of its legal counsel, an Event of Default has occurred that the Administrative Agent has
not declared in writing to have been cured or waived. Without limiting the generality of the
foregoing, but subject to Section 18.3, the Administrative Agent shall have the right and power
during the occurrence and continuation of any Event of Default to receive, endorse, collect and
control all checks or instruments made payable to the order of the Seller and all other forms of
payment to the Seller that represent any payment on account of the principal of or interest on or
proceeds from any of the Purchased Loans and to give full discharge for the same.

24.3. Wires to Seller. Any amounts to be transferred by the Administrative Agent to the
Seller hereunder shall be sent by journal entry (or wire transfer) in immediately available funds
to the account of Seller as follows:

Bank: U.S. Bank

ABA No.: 091000022

Account: DHI Mortgage Company, Ltd.

Account No.: 104790245344

 

100

 

24.4. Wires to Administrative Agent. Any amounts to be transferred by the Seller to the
Administrative Agent hereunder shall be sent by wire transfer in immediately available funds to the
account of the Administrative Agent as follows:

U.S. Bank National Association

ABA number: 091000022

Attention: Mortgage Banking Services

Account No. 104756234365

DHI Mortgage Company, Ltd. Repurchase Settlement Account

24.5. Receipt; Available Funds. Amounts received after 1:00 p.m. Minneapolis time on any
Business Day shall be deemed to have been paid and received on the next succeeding Business Day.
All payments and transfers of cash pursuant to this Agreement shall be made (only if the paying and
receiving accounts are with the same financial institution) by journal entries, or (otherwise) by
wire transfer, of immediately available funds in U.S. dollars.

25 Entire Agreement; Severability.

This Agreement supersedes any existing agreements between the parties containing general terms
and conditions for repurchase transactions. This Agreement may not be amended, modified or
supplemented except in accordance with the provisions of Section 22 and such amendment,
modification or supplement must be set forth in a writing signed by the parties required to do so
in accordance with Section 22. Each provision and agreement herein shall be treated as separate
and independent from any other provision or agreement herein and shall be enforceable
notwithstanding the unenforceability of any such other provision or agreement.

26 Non-assignability; Termination.

26.1. Limited Assignment. Except with respect to any repurchase transaction, sale, transfer,
pledge or hypothecation by the Administrative Agent or any Buyer pursuant to Section 14 and Section
22.17, the rights and obligations of the parties under this Agreement and under any Transaction
shall not be assigned by any party without the prior written consent of the other parties and any
such assignment without the prior written consent of the other parties shall be null and void.
Subject to the foregoing, this Agreement and any Transactions shall bind and benefit the parties
and their respective successors and assigns.

26.2. Remedies Exception. Section 26.1 shall not preclude a party from assigning, charging or
otherwise dealing with all or any part of its interest in any sum payable to it under Section 18.

26.3. Agreement Termination. This Agreement shall terminate, automatically and without any
requirement for notice, on the date after the Termination Date on which all Obligations have been
indefeasibly paid in full, provided, that the provisions of Sections 6.4, 6.5, 7 and 20
shall survive the termination of this Agreement, provided further, that this
Agreement and any Open Transactions may be extended by mutual agreement of the Buyers, the
Administrative Agent and the Seller; and provided further, that no such party shall be
obligated to agree to such an extension.

 

101

 

27 Counterparts.

This Agreement may be executed in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and the same
instrument.

28 Governing Law, Jurisdiction and Venue.

This Agreement (including this choice-of-law provision) and the other Repurchase Documents
shall be governed by and construed and all controversies and disputes arising under, in connection
with or relating to this Agreement and the other Repurchase Documents shall be resolved, in
accordance with the laws of the State of New York (pursuant to Section 5-1401 of the New York
General Obligations Law to the extent such laws would otherwise not apply) and the United States of
America applicable to contracts made and to be wholly performed within such State. The Seller, the
Administrative Agent and the Buyers each hereby irrevocably submits to the nonexclusive
jurisdiction and venue of the United States District Court for the Southern District of New York
located in the Borough of Manhattan Division in the City of New York or, if such court does not
have jurisdiction, the Supreme Court of the State of New York, New York County for the purpose of
any action or other proceeding arising under, in connection with or relating to the Repurchase
Documents or any related Transaction, pursuant to Section 5-1402 of the New York General
Obligations Law to the extent such submission would otherwise not be effective. To the fullest
extent permitted by applicable law, the Seller, the Administrative Agent and the Buyers each
irrevocably waives any objection that it may now or hereafter have to the laying of venue for any
such proceeding brought in such a court and any claim that any such proceeding brought in such a
court has been brought in an inconvenient forum and agrees that service of process may be made upon
it in any such proceeding by registered or certified mail. Nothing herein shall affect any
applicable right of any party at any time to initiate any suit in the United States District Court
for the Southern District of New York, Manhattan Division, or to remove any pending suit to that
court. Nothing herein shall affect the right of the Administrative Agent or any Buyer to
accomplish service of process in any manner permitted by applicable law or to commence legal
proceedings or otherwise proceed against the Seller in any other jurisdiction or court.

29 Waiver of Jury Trial.

Each of the Seller (in its capacity as Seller and Servicer), the Buyers and the Administrative
Agent hereby (i) covenants and agrees not to elect a trial by jury of any issue triable of right by
a jury, and (ii) waives any right to trial by jury fully to the extent that any such right shall
now or hereafter exist. This waiver of right to trial by jury is separately given, knowingly and
voluntarily, by each of the Seller, the Buyers and the Administrative Agent, and this waiver is
intended to encompass individually each instance and each issue as to which the right of a jury
trial would otherwise accrue. The Administrative Agent is hereby authorized and requested to
submit this Agreement to any court having jurisdiction over the subject matter and the parties
hereto, so as to serve as conclusive evidence of the foregoing waiver of the right to jury trial.
Further, the Seller hereby certifies that no representative or agent of the Buyers or the
Administrative Agent
has represented, expressly or otherwise, to any stockholder, director, officer, agent or
representative of the Seller that the Buyers or the Administrative Agent will not seek to enforce
this waiver of right to jury trial provision.

 

102

 

30 Relationship of the Parties.

This Agreement provides for the sale by the Seller and the purchase by the Buyers (acting
through their agent and representative, the Administrative Agent) of Eligible Loans and the
obligation of the Seller to repurchase them upon termination of each Transaction. The relationship
between the Seller and the Buyers (and the Administrative Agent) is limited to that of seller and
repurchaser on the one hand and Buyers and resellers (and the Administrative Agent as the Buyers’
agent and representative) on the other. The provisions in this Agreement and the other Repurchase
Documents for compliance with financial covenants and delivery of financial statements are intended
solely for the benefit of the Buyers, the Administrative Agent and the Syndication Agent to protect
the interests of the Buyers as buyers, including their and the Administrative Agent’s and
Syndication Agent’s interest in assuring repurchase of Purchased Loans at the termination of each
Transaction, and nothing contained in this Agreement or any of the other Repurchase Documents shall
be construed as permitting or obligating any Buyer, the Administrative Agent or Syndication Agent
to act as a financial or business advisor or consultant to the Seller, as permitting or obligating
any Buyer, the Administrative Agent or Syndication Agent to control the Seller or to conduct the
Seller’s operations, as creating any fiduciary obligation on the part of the Buyers, the
Administrative Agent or the Syndication Agent to the Seller, or as creating any joint venture,
agency or other relationship between the parties other than as explicitly and specifically stated
in this Agreement. The Seller acknowledges that it has had the opportunity to obtain the advice of
experienced counsel of its own choosing in connection with the negotiation and execution of this
Agreement and the other Repurchase Documents and to obtain the advice of such counsel with respect
to all matters contained in the Repurchase Documents including the provision for waiver of trial by
jury. The Seller further acknowledges that it is experienced with respect to financial and credit
matters and has made its own independent decisions to apply to the Buyers, the Administrative Agent
and the Syndication Agent to enter into this Agreement, and to execute and deliver this Agreement
and the other Repurchase Documents.

31 No Waivers, Etc.

No express or implied waiver of any Event of Default by any party shall constitute a waiver of
any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a
waiver of its right to exercise any other remedy hereunder. No modification or waiver of any
provision of this Agreement and no consent by any party to a departure herefrom shall be effective
unless and until such shall be in writing and duly executed by the Seller and the parties required
to do so pursuant to Section 22. Without limitation on any of the foregoing, the failure to give a
notice pursuant to Section (c) or 7 will not constitute a waiver of any right to do so at a later
date. The rights and remedies of the Buyers hereunder shall be cumulative and not exclusive of any
rights and remedies which the Buyers would otherwise have. No failure or delay on the part of the
Buyers in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.

 

103

 

32 Use of Employee Plan Assets.

32.1. Prohibited Transactions. If assets of an employee benefit plan subject to any provision
of ERISA are intended to be used by any party hereto (the “Plan Party”) in a Transaction, the Plan
Party shall so notify the other parties prior to the Transaction. The Plan Party shall represent
in writing to the other parties that the Transaction does not constitute a prohibited transaction
under ERISA or is otherwise exempt therefrom, and the other parties may proceed in reliance thereon
but shall not be required so to proceed.

32.2. Audited Financial Statements Required. Subject to the last sentence of Section 32.1,
any such Transaction shall proceed only if the Seller furnishes or has furnished to the
Administrative Agent its most recent available audited statement of its financial condition and its
most recent subsequent unaudited statement of its financial condition.

32.3. Representations. By entering into a Transaction pursuant to this Section 32, the Seller
shall be deemed (i) to represent to the Buyers and the Administrative Agent that since the date of
the Seller’s
latest such financial statements, there has been no material adverse change in the Seller’s
financial condition which the Seller has not disclosed to the Administrative Agent, and (ii) to
agree to provide the Administrative Agent with future audited and unaudited statements of its
financial condition as they are issued, so long as it is a Seller in any Open Transaction involving
a Plan Party.

33 Intent.

33.1. Transactions are Repurchase Agreements and Securities Contracts. The parties intend
and acknowledge that each Transaction is a “repurchase agreement” as such term is defined in
Section 101 of the Bankruptcy Code (except insofar as the type of Eligible Loans subject to such
Transaction or the term of such Transaction would render such definition inapplicable), and a
“securities contract” as that term is defined in Section 741 of the Bankruptcy Code (except insofar
as the type of assets subject to such Transaction would render such definition inapplicable). This
Agreement also constitutes a “netting contract” as defined in and subject to Title IV of the
Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment
entitlement and payment obligation under any Transaction hereunder shall constitute a “covered
contractual payment entitlement” or “covered contractual payment obligation”, respectively, as
defined in and subject to FDICIA (except insofar as any or all of the parties is not a “financial
institution” as that term is defined in FDICIA). Seller hereby agrees that it shall not challenge
the characterization of this Agreement as a “repurchase agreement” as that term is defined in
Section 101 of the Bankruptcy Code, or as a “securities contract” as that term is defined in
Section 741 of the Bankruptcy Code in any dispute or proceeding.

 

104

 

33.2. Contractual Rights, Etc. Any party’s right to liquidate Eligible Loans delivered to it
in connection with Transactions hereunder or to exercise any other remedies pursuant to Section 18,
is a contractual right to liquidate, terminate or accelerate such Transaction as described in
Sections 555, 559 and 561 of the Bankruptcy Code.

33.3. FDIA. If a party hereto is an “insured depository institution,” as such term is defined
in the Federal Deposit Insurance Act, as amended (“FDIA”), then each Transaction hereunder is a
“qualified financial contract,” as that term is defined in FDIA and any rules, orders or policy
statements thereunder (except insofar as the type of assets subject to such Transaction would
render such definition inapplicable).

33.4. Master Netting Agreement. It is understood and agreed that this Agreement constitutes a
“master netting agreement” as that term is defined in Section 101 of the Bankruptcy Code, and that
a party’s right to cause the termination, liquidation, or acceleration of, or to offset net
termination values,
payment amounts or other transfer obligations arising under or in connection with, this
Agreement or any Transaction is a contractual right to cause the termination, liquidation, or
acceleration of, or to offset net termination values, payment amounts or other transfer obligations
arising under or in connection with, this Agreement or any Transaction as described in Section 561
of the Bankruptcy Code.

34 Disclosure Relating to Certain Federal Protections.

The parties acknowledge that they have been advised that:

34.1. Parties not Protected by SIPA or Insured by FDIC or NCUSIF. In the case of Transactions
in which one of the parties is a broker or dealer registered with the Securities and Exchange
Commission (“SEC”) under Section 15 of the Securities Exchange Act of 1934 (“1934 Act”), the
Securities Investor Protection Corporation has taken the position that the provisions of SIPA do
not protect the other party with respect to any Transaction hereunder.

34.2. SIPA Does Not Protect Government Securities Broker or Dealer Counterparty. In the case
of Transactions in which one of the parties is a government securities broker or a government
securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA will not provide
protection to the other party with respect to any Transaction hereunder.

34.3. Transaction Funds Are Not Insured Deposits. In the case of Transactions in which one of
the parties is a financial institution, funds held by such financial institution pursuant to a
Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit
Insurance Corporation (through either the Bank Insurance Fund or the Savings Association Insurance
Fund) or the National Credit Union Share Insurance Fund, as applicable.

35 USA Patriot Act Notification.

The Administrative Agent and the Buyers hereby notify the Seller that, pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)), the Administrative Agent or the Buyers are required to obtain, verify and record
information that identifies the Seller, including the Seller’s name and address and other
information that will allow them to identify the Seller in accordance with said Act.

The remainder of this page is intentionally blank; signature pages follow.

 

105

 

EXECUTED as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	DHI MORTGAGE COMPANY, LTD,

as Seller and Servicer	 	 
	 
	 	 	 	 	 	 
	 	 	By: DHI Mortgage Company GP, Inc.	 	 
	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark C. Winter	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Mark C. Winter	 	 
	 

	 	 	 	Date: March 26, 2008	 	 

[Signature Page 1 to Master Repurchase Agreement]

 

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION

As Administrative Agent and a Buyer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Edwin D. Jenkins	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 

	 	 	 	Date:	 	 
	 
	 	 	 	
 
	 	 

[Signature Page 2 to Master Repurchase Agreement]

 

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
as Syndication Agent and as a Buyer
 	 
	 	By:  	/s/ Stephanie K. Rudd
 	 
	 	 	Title:    Stephanie K. Rudd 	 
	 	 	Date:    Managing Director 	 
	 

[Signature Page 3 to Master Repurchase Agreement]

 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,
as a Buyer
 	 
	 	By:  	/s/ Paula Laesch
 	 
	 	 	Name:  	Paula Laesch 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page 4 to Master Repurchase Agreement]

 

 

 

	 	 	 	 	 
	 	LLOYDS TSB BANK PLC, as a Buyer

 	 
	 	By:  	/s/ Christine Chandradat
 	 
	 	 	Name:  	Christine Chandradat 	 
	 	 	Title:  	Associate Director C012 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                     /s/ Amy Vespasiano
 	 
	 	 	Name:  	Amy Vespasiano 	 
	 	 	Title:  	Managing Director V024 	 
	 

[Signature Page 5 to Master Repurchase Agreement]

 

 

 

	 	 	 	 	 
	 	COMERICA BANK, as a Buyer

 	 
	 	By:  	/s/ Robert W. Marr
 	 
	 	 	Name:  	Robert W. Marr 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page 6 to Master Repurchase Agreement]

 

 

 

EXHIBIT A

TO Master Repurchase Agreement

FORM OF REQUEST/CONFIRMATION

	 	 	 
	To:
	 	From:
	U.S. Bank National Association., Administrative Agent
	 	DHI Mortgage Company, Ltd.
	800 Nicollet Mall
	 	12357 Riata Trace Parkway
	Mortgage Banking Services BC-MN-H03B
	 	Suite C-150
	Minneapolis, MN 55402
	 	Austin, TX  78727
	Attention: Brian Watson
	 	 
	 
	 	Attention:  Lisa Price
	Phone: 612-303-3543
	 	Phone:  512-533-1382
	Fax: 612-303-2255
	 	Fax:  866-699-0331
	Email: Brian.Watson@usbank.com
	 	email:  LPrice@dhimortgage.com

Please refer to the Master Repurchase Agreement dated March 27, 2008 among DHI Mortgage
Company, Ltd. (the “Seller”), U.S. Bank National Association (“U.S. Bank”), as a buyer and as agent
and representative of the other buyers party thereto (in that capacity, U.S. Bank is referred to as
the Administrative Agent), JPMorgan Chase Bank, National Association, as Syndication Agent and a
Buyer, and such other buyers (such other buyers together with the Administrative Agent and the
Syndication Agent are referred to as the “Buyers”) which, as it may have been or may hereafter be
supplemented, amended or restated from time to time, is herein called the “Current Repurchase
Agreement”. Any term defined in the Current Repurchase Agreement and used in this request shall
have the meaning given to it in the Current Repurchase Agreement.

The Seller currently qualifies under the Current Repurchase Agreement for, and hereby
requests, purchases as set forth below (the “Requested Purchases”) to be made on the following
Purchase Date:                     , 20
 _____ 

(which must be a Business Day).

The Pricing Rates for this Transaction shall be determined from time to time in accordance
with the definition of that term in the Current Repurchase Agreement and the provisions of Section
5 of the Current Repurchase Agreement.

 

Ex A-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Prime Rate	 	 	LIBOR Rate	 	 	Balance Funded Rate	 
	Previous Day Aggregate
Outstanding Purchase
Price
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Purchase Price To Be
Advanced
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Repurchase Price To Be
Paid
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Syndication Settlement
Amount
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Aggregate Outstanding
Purchase Price
	 	 	 	 	 	 	 	 	 	 	 	 

The Buyers’ Margin Percentage, as specified in the definition of that term in the Current
Repurchase Agreement, is:

(i) for all Purchased Loans except Second Lien Loans, HELOCs, and Alt-A Non-Agency
Loans, ninety-five percent (95%);

(ii) for Second Lien Loans and HELOCs, ninety percent (90%); and

(iii) for Alt-A Non-Agency Loans, ninety-four percent (94%);

provided, however, that Buyer’s Margin Percentage will decrease by five
(5) percentage points for each 15 day period a Purchased Loan remains part of an Open
Transaction, beginning with the 60th day after the Purchase Date for such
Purchased Loan. For purposes of clarity the following example applies: A Conforming
Mortgage Loan with an initial Buyers’ Margin Percentage of 95% will on the 60th
day, have a reduced Buyer’s Margin Percentage of 90% and on the 75th day will
have a reduced Buyer’s Margin Percentage of 85%, and so on until it is no longer an Eligible
Loan.

After the Requested Purchases, the Aggregate Outstanding Purchase Price will not exceed the
Maximum Aggregate Commitment.

The Seller has delivered today multiple Mortgage Loan Transmission Files. All Loans listed in
such Mortgage Loan Transmission Files are Eligible Loans. For each of the Mortgage
Loans listed on the Mortgage Loan Transmission Files submitted in connection with this
Request/Confirmation:

 

Ex A-2

 

(a) the Basic Papers have been or will be executed and delivered by all appropriate
Persons.

(b) the Seller is electronically communicating to the Custodian a complete Mortgage
Loan Transmission File, and the information stated for such Mortgage Loan in such standard
Mortgage Loan Transmission File is correct and complete in accordance with the Record
Layout.

(c) such Mortgage Loan has been (or will be) originated, closed, funded and (if
applicable) negotiated and assigned to the Seller.

(d) for each such Mortgage Loan being offered a Dry Loan, the Basic Papers are being
concurrently delivered to the Custodian.

(e) for each Mortgage Loan being offered as a Wet Loan, the complete File for such
Mortgage Loan, including all Basic Papers and all Supplemental Papers, is or will be in the
possession of either that Mortgage Loan’s closer, the Seller or the Servicer or Subservicer
for that Mortgage Loan, its Basic Papers are in the process of being delivered to the
Custodian and such Basic Papers will be delivered to the Custodian on or before seven (7)
Business Days after the Purchase Date specified above.

Pursuant to the terms of the Custody Agreement and acknowledging and agreeing that new value,
as that term is used in the New York Uniform Commercial Code, has been given in reliance thereon,
the Seller hereby sells, negotiates and transfers to the Buyers the Mortgage Loans listed on the
attached Schedule of Mortgage Loans. The Seller acknowledges that the Administrative Agent and the
Buyers will rely on the truth of each statement in this Request/Confirmation and such Mortgage Loan
Transmission File in purchasing such Purchased Loans referred to herein.

The Purchase Prices for the Purchased Loans referred to herein should be deposited in the
Funding Account for payment as set forth on the instructions in the Mortgage Loan Transmission File
or such other account as indicated by the Seller.

No Default has occurred under the Repurchase Documents that has not been cured by the Seller
or declared in writing by the Administrative Agent to have been waived, and no Event of Default has
occurred under the Repurchase Documents that the Administrative Agent has not declared in writing
to have been cured or waived. There has been no material adverse change in any of the Central
Elements in respect of the Seller or any of its Subsidiaries since the date of the Seller’s most
recent annual audited Financial Statements that have been delivered to the Administrative Agent and
the Buyers.

All items that the Seller is required to furnish to the Buyers, the Administrative Agent or
the Custodian in connection with the Requested Purchases and otherwise have been delivered, or will
be delivered before the Purchase Date specified above, in all respects as required by the Current
Repurchase Agreement and the other Repurchase Documents. All documentation
described or referred to in the Mortgage Loan Transmission File submitted to the
Administrative Agent with this Request/Confirmation conform in all respects with all applicable
requirements of the Current Repurchase Agreement and the other Repurchase Documents.

 

Ex A-3

 

The Seller hereby warrants and represents to the Buyers and the Administrative Agent that none
of the Purchased Loans (including, but not limited to, Purchased Loans described or referred to in
this request) has been sold to any Person other than the Buyers, is pledged to any Person other
than Administrative Agent, for the benefit of itself and the Buyers, or supports any borrowing or
repurchase agreement funding other than purchases under the Current Repurchase Agreement.

The undersigned officer hereby certifies that all of the Seller’s representations and
warranties (a) in the Current Repurchase Agreement and all of the other Repurchase Documents
(except only to the extent that (i) such a representation or warranty speaks to a specific date or
(ii) the facts on which a representation or warranty is based have been changed by transactions or
conditions contemplated or expressly permitted by the Repurchase Documents) and (b) in this
request, are true and correct on the date of this request; and that the Seller qualifies for the
Requested Purchases.

	 	 	 	 	 
	 	DHI Mortgage Company, Ltd.

By: DHI Mortgage Company GP, Inc.
Its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

Ex A-4

 

EXHIBIT B

TO Master Repurchase Agreement

OPINIONS REQUIRED FOR OPINION OF COUNSEL TO SELLER

1. The Seller is duly organized and validly existing as a limited partnership in good standing
under the laws of the State of Texas and has power and authority to enter into and perform its
obligations under and to consummate the transactions contemplated by the Repurchase Agreement and
the Custody Agreement and all other Repurchase Documents to which it is a party. The Seller is
duly qualified to do business and is in good standing in each jurisdiction in which the character
of the business transacted by it requires such qualification and in which the failure so to qualify
would have a material adverse effect on the business, properties, assets or condition (financial or
otherwise) of the Seller and its subsidiaries, considered as a whole.

2. The Repurchase Agreement and the Custody Agreement and all other Repurchase Documents to
which the Seller is a party have each been duly authorized, executed and delivered by the Seller,
and each constitutes a valid and legally binding obligation of the Seller enforceable against the
Seller in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization, moratorium and other laws of general applicability relating to or affecting
creditors’ rights generally and to general equity principles.

3. No consent, approval, authorization or order of any Texas state or federal court or
government agency or body is required to be obtained by the Seller for the execution, delivery or
performance of or the consummation of the transactions contemplated by the Repurchase Agreement or
the Custody Agreement or any of the other Repurchase Documents.

4. The execution, delivery or performance of and the consummation of any of the transactions
contemplated by the Repurchase Agreement and the Custody Agreement and the other Repurchase
Documents will not conflict with, result in a breach of, or constitute a default under the limited
partnership agreement or any other organizational or governance document of the Seller or the terms
of any indenture or other material agreement or instrument known to such counsel to which the
Seller is party or bound, or any order known to such counsel to be applicable to the Seller or any
laws, rules or regulations applicable to the Seller, of any Texas state or federal court,
regulatory body, administrative agency, governmental body or arbitrator having jurisdiction over
Seller.

5. There is no pending or, to such counsel’s actual knowledge, threatened action, suit or
proceeding before any court or governmental agency, authority or body or any arbitrator involving
the Seller or relating to the Transactions contemplated by the Repurchase Agreement or the Custody
Agreement or any of the other Repurchase Documents which, if adversely determined, would have a
material adverse effect on the Seller.

6. In the event of a recharacterization of any Transaction under the Repurchase Agreement as a
financing rather than a purchase under applicable law, the Repurchase Agreement together with the
filing of a financing statement identifying all Eligible Loans
designated by the Seller from time to time as Purchased Loans purchased by the Administrative
Agent on behalf of the Buyers creates a valid, perfected nonpossessory security interest in such
Eligible Loans in favor of the Administrative Agent for the benefit of itself and the Buyers.

 

Ex B-1

 

7. In the event of a recharacterization of any Transaction under the Repurchase Agreement as a
financing rather than a purchase under applicable law, the Repurchase Agreement together with
delivery to the Custodian of the Mortgage Notes related to Purchased Loans purchased by the Buyers
in Transactions from time to time creates a valid security interest perfected by possession in such
Purchased Loans in favor of the Administrative Agent on behalf of the Buyers.

8. In accordance with the provisions of Sections 559, 362(b)(7) and 362(o), respectively, of
the Bankruptcy Code, in the event Seller were to become a debtor in a voluntary or involuntary case
under the Bankruptcy Code, neither (i) the rights of the Administrative Agent for the benefit of
the Buyers to liquidate, terminate and/or accelerate the Repurchase Agreement because of a
condition of the kind specified in Section 365(e)(1) of the Bankruptcy Code, nor (ii) the rights of
the Administrative Agent for the benefit of the Buyers to set off those Obligations of the Seller
that arise under or in connection with the Repurchase Agreement against cash, securities or other
property held by, pledged to, under the control of, or due from the Administrative Agent or Buyers
(or the Custodian on behalf of such parties) to margin, guarantee, secure or settle the Repurchase
Agreement, as the case may be, would be stayed, avoided or otherwise limited by operation of any
provision of the Bankruptcy Code, including, without limitation, Section 362(a) of the Bankruptcy
Code, or by order of a court or administrative agent in any proceeding under the United States
Bankruptcy Code.

9. In accordance with the provisions of Section 546(f) of the Bankruptcy Code, transfers by
Seller to the Administrative Agent for the benefit of the Buyers, made before the commencement of a
case against the Seller under the Bankruptcy Code, of cash or any Additional Purchased Loans to
cure a Margin Deficit would not be avoidable under Section 547 of the Bankruptcy Code.

 

Ex B-2

 

EXHIBIT C

TO Master Repurchase Agreement

FORM OF OFFICER’S CERTIFICATE WITH COMPUTATIONS

TO SHOW COMPLIANCE OR NON-COMPLIANCE WITH

CERTAIN FINANCIAL COVENANTS

OFFICER’S CERTIFICATE

ADMINISTRATIVE AGENT: U.S. Bank National Association

SELLER: DHI MORTGAGE COMPANY, LTD.

SUBJECT PERIOD:                      ended                     , 200
 _____ 

DATE:                     , 200
 _____ 

This certificate is delivered to the Administrative Agent and the Buyers under the Master
Repurchase Agreement dated as of March 27, 2008 (as supplemented, amended or restated from time to
time, the “Current Repurchase Agreement”), among the Seller, the Administrative Agent and the
Buyers from time to time party thereto. Unless they are otherwise defined in this request, terms
defined in the Current Repurchase Agreement have the same meanings here as there.

The undersigned officer of the Seller certifies to the Administrative Agent that on the date
of this certificate that:

1. The undersigned is an incumbent officer of the Seller, holding the title stated below the
undersigned’s signature below.

2. The Seller’s Financial Statements that are attached to this certificate were prepared in
accordance with GAAP (except that interim i.e., other than annual Financial Statements exclude
notes to Financial Statements and statements of changes to stockholders’ equity and are subject to
year-end adjustments) and (subject to the aforesaid proviso as to interim Financial Statements)
present fairly the Seller’s financial condition and results of operations as of                     
for that month (the “Subject Period”) and for the year to that date.

3. The undersigned officer of the Seller supervised a review of the Seller’s activities during
the Subject Period in respect of the following matters and has determined the following:

(a) except to the extent that (i) a representation or warranty speaks to a specific
date or (ii) the facts on which a representation or warranty is based have changed by
transactions or conditions contemplated or expressly permitted by the Repurchase Documents,
the representations and warranties of the Seller in the Current Repurchase Agreement and the
other Repurchase Documents are true and correct in all material respects, other than the
changes, if any, described on the attached Annex A;

 

Ex C-1

 

(b) no event has occurred which could reasonably be expected to have a materially
adverse effect on any of the Central Elements of the Seller.

(c) the Seller has complied with all of its obligations under the Repurchase Documents,
other than the deviations, if any, described on the attached Annex A; (c) no Event of
Default has occurred that has not been declared by the Administrative Agent in writing to
have been cured or waived, and no Default has occurred that has not been cured before it
became an Event of Default, other than those Events of Default and/or Defaults, if any,
described on the attached Annex A and (d) compliance by the Seller with the financial
covenants in Sections 17.12, 17.13, 17.14 and 17.15 of the Current Repurchase Agreement is
accurately calculated on the attached Annex A.

	 	 	 	 	 	 	 
	 	 	DHI MORTGAGE COMPANY, LTD.	 	 
	 	 	By: DHI Mortgage Company GP, Inc.	 	 
	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:  	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	Title:  	 	 	 
	 

	 	 	 	 	 	 

 

Ex C-2

 

ANNEX A TO OFFICER’S CERTIFICATE

1. Describe deviations from compliance with obligations, if any — clause 3(b) of attached
Officer’s Certificate — if none, so state:

2. Describe Defaults or Events of Default, if any — clause 3(c) of attached Officer’s
Certificate — if none, so state:

3. Calculate compliance with covenants in Section 17.12 through 17.15 of attached Officer’s
Certificate:

(a) Section 17.12. The Seller’s Tangible Net Worth as of                      is
$                     (the minimum under Section 17.12 is $130,000,000.)

(b) Section 17.13. The ratio of Seller’s GAAP Indebtedness and Contingent Indebtedness
to Tangible Net Worth of the Seller on a consolidated basis with its Restricted
Subsidiaries, measured monthly is
 _____ 

to 1.0 (the maximum ratio under Section 17.13 is
10.0:1.00.)

(c) Section 17.14. The Seller’s Net Income measured at the end of                      for the
six consecutive months then ended is $                    (the minimum under Section 17.14 is $1.00).

(d) Section 17.15). The Seller’s liquidity (unrestricted cash, Cash Equivalents and
unused portion of the Maximum Aggregate Commitments for the month ended                     ,
200
 _____ 

was $                     (the minimum under Section 17.15is the greater of $17,500,000 or 5%
of outstanding amounts under the Master Repurchase Agreement and all other mortgage
warehouse, conduit or repurchase facilities of Seller).

4. Describe and give details regarding (i) notices received by Seller requesting or
demanding that Seller repurchase (or pay indemnity or other compensation in respect of)
Mortgage Loans previously sold or otherwise disposed of by the Seller to any Investor or
other Person pursuant to any express or implied repurchase or indemnity obligation as per
Section 16.5, and (ii) actual repurchase and indemnity payments made by Seller to any
Person. (attach schedule or explanation)

 

Ex C-3

 

Attachment to Exhibit C

 
Purchased Loans Curtailment Report

(List Purchased Loans on which unscheduled principal payment, prepayment or reduction of

more than one regularly scheduled principal and interest installment payment was

received since last monthly report and resulting new Principal Balance)

 

Ex C-4

 

EXHIBIT D

TO Master Repurchase Agreement

List of Restricted Subsidiaries of the Seller as of the Effective Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	States where	 	 	The Seller’s	 
	 	 	 	 	 	 	qualified as a	 	 	percentage of	 
	 	 	Place of	 	 	foreign	 	 	capital stock or	 
	Subsidiary	 	organization	 	 	organization	 	 	equity ownership	 
	Operating

Subsidiaries
	 	 	 	 	 	 	 	 	 	 	 	 
	None
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Single Purpose

Finance
Subsidiaries
	 	 	 	 	 	 	 	 	 	 	 	 
	CH Funding LLC
	 	Texas	 	 	 	 	 	 	100	%

 

Ex D-1

 

EXHIBIT E

TO Master Repurchase Agreement

FORM OF CORPORATION TAX TREATMENT CERTIFICATE

Reference is hereby made to the Master Repurchase Agreement dated as of March 27, 2008 (as
supplemented, amended or restated, supplemented from time to time, the “Agreement”), among DHI
Mortgage Company, Ltd. (the “Seller”), U.S. Bank National Association (“U.S. Bank”), as a buyer and
as Administrative Agent for the other buyers party thereto from time to time (the “Administrative
Agent”) and such other buyers (collectively with U.S. Bank, the “Buyers”). Pursuant to the
provisions of Section 7 of the Agreement, the undersigned hereby certifies that:

1. It is (one must be checked)
 _____ 

a natural individual person
 _____ 

treated as a corporation for
U.S. federal income tax purposes
 _____ 

disregarded for federal income tax purposes (in which case a
copy of this Corporation Tax Treatment Certificate is attached in respect of its sole beneficial
owner)
 _____ 

treated as a partnership for U.S. federal income tax purposes.

2. It is the beneficial owner of amounts received pursuant to the Agreement.

3. It is not a bank, as such term is used in Section 881(c)(3)(A) of the Internal Revenue Code
of 1986, as amended (the “Internal Revenue Code”), or the Agreement is not, with respect to the
undersigned, a loan agreement entered into in the ordinary course of its trade or business, within
the meaning of such section.

4. It is not a 10-percent stockholder of the Seller within the meaning of Section 871(h)(3) or
881(c)(3)(B) of the Internal Revenue Code.

5. It is not a controlled foreign corporation that is related to the Seller within the meaning
of Section 881(c)(3)(C) of the Internal Revenue Code.

6. Amounts paid to it under the Repurchase Documents are not effectively connected with its
conduct of a trade or business in the United States.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:  	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	Title:	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	Date:	 	 	 
	 

	 	 	 	 	 	 

 

Ex E-1

 

EXHIBIT F

TO Master Repurchase Agreement

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein
shall have the meanings given to them in the Amended and Restated Master Repurchase Agreement
identified below (as amended, the “Repurchase Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Repurchase Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below, (i) all of the
Assignor’s rights and obligations in its capacity as a Buyer under the Repurchase Agreement and any
other documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit,
guarantees, and Swing Line Transactions included in such facilities) and (ii) to the extent
permitted to be assigned under applicable law, all claims, suits, causes of action and any other
right of the Assignor (in its capacity as a Buyer) against any Person, whether known or unknown,
arising under or in connection with the Repurchase Agreement, any other documents or instruments
delivered pursuant thereto or the Transactions governed thereby or in any way based on or related
to any of the foregoing, including Purchased Loans, contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to the undivided
ownership interest in Purchased Loans and the other rights and obligations sold and assigned
pursuant to clause (i) above (the undivided ownership interest in Purchased Loans and all other
rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to
herein collectively as the “Assigned Interest”). Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by the Assignor.

	 	 	 	 	 	 	 
	1.

	 	Assignor:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	2.

	 	Assignee:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[and is a Buyer Affiliate of [identify Buyer]]	 	 
	 
	 	 	 	 	 	 
	3.

	 	Seller:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	4.

	 	Administrative Agent:                               , as the agent and representative of the Buyers under the Repurchase
Agreement

 

Ex F-1

 

5. Repurchase Agreement: The Master Repurchase Agreement dated as of                      among [name of
Seller], the Buyers parties thereto and [name of Administrative Agent], as Administrative Agent

6. Assigned Interest:

	 	 	 	 	 
	Aggregate Amount of	 	Amount of	 	 
	Commitment/Transactions	 	Commitment/Transactions	 	Percentage Assigned of
	for all Buyers	 	Assigned	 	Commitment/Transactions
	 $
	 	 $
	 	 $

Effective Date:                     
 _____ 

, 20
 _____ 

[TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 	 	 
	 	 	ASSIGNOR	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Title:	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Title:	 	 	 
	 

	 	 	 	 	 	 

 

Ex F-2

 

[Consented to and] Accepted:

[NAME OF ADMINISTRATIVE AGENT], as Administrative Agent

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 
	 	Title:
	 	 	 
	 

	 	 	 	 

[Consented to:]

[NAME OF RELEVANT PARTY]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 
	 	Title:
	 	 	 
	 

	 	 	 	 

 

Ex F-3

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and
clear of any lien, encumbrance or other adverse claim and (iii) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or
in connection with the Repurchase Agreement or any other Repurchase Documents, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or value of the
Repurchase Documents or any Transactions thereunder, (iii) the financial condition of the
Seller, any of its Subsidiaries or Affiliates or any other Person obligated in respect of
any Repurchase Documents or (iv) the performance or observance by the Seller, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under
any Repurchase Document.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated hereby and to
become a Buyer under the Repurchase Agreement, (ii) it satisfies the requirements, if any,
specified in the Repurchase Agreement that are required to be satisfied by it in order to
acquire the Assigned Interest and become a Buyer, (iii) from and after the Effective Date,
it shall be bound by the provisions of the Repurchase Agreement as a Buyer thereunder and,
to the extent of the Assigned Interest, shall have the obligations of a Buyer thereunder,
(iv) it has received a copy of the Repurchase Agreement, together with copies of the most
recent financial statements referred to in Section 15.2(f) thereof or delivered pursuant to
Section 16.3 thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has
made such analysis and decision independently and without reliance on the Administrative
Agent, the assignor or any other Buyer, and (v) if it is a Person that is organized under
the Legal Requirements of any jurisdiction other than the United States of America or any
State thereof, attached to this Assignment and Assumption is any documentation required to
be delivered by it pursuant to the terms of the Repurchase Agreement, duly completed and
executed by the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Buyer, 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 the Repurchase Documents, and (ii) it
will perform in accordance with their terms all of the obligations which by the terms of the
Repurchase Documents are required to be performed by it as a Buyer.

 

Ex F-4

 

2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of Repurchase Price, Price
Differential, fees and other amounts) to the Assignor for amounts which have accrued to but
excluding the Effective Date and to the Assignee for amounts which have accrued from and after the
Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

 

Ex F-5

 

SCHEDULE — AI

TO Master Repurchase Agreement

APPROVED INVESTORS

DHI Mortgage Company, LTD Approved Investors List

	 	 	 	 	 	 	 	 	 
	 	 	S&P CP	 	Moody’s	 	 	 	 
	Investor	 	Rating	 	CP Rating	 	Related Parent Company	 	Product Approval
	Aurora Loan Services
	 	A-1	 	P-1	 	Lehman Brothers Holdings, Inc.	 	Conforming/Non-Conforming
	California Housing Finance Agency
	 	N/A	 	N/A	 	 	 	Conforming/Non-Conforming
	Chase
Manhattan Bank USA, N.A.
	 	A-1+	 	P-1	 	JPMorgan Chase Bank, N.A.	 	Conforming/Non-Conforming
	Citimortgage, Inc.
	 	A-1	 	P-1	 	Citigroup, Inc.	 	Conforming/Non-Conforming
	Colorado Housing & Finance Authority
	 	N/A	 	N/A	 	 	 	Conforming/Non-Conforming
	Countrywide
Home Loans, Inc.
	 	A2	 	P-3	 	Countrywide Financial Corp.	 	Conforming
	Deutsche Bank AG
	 	A-1 +	 	P-1	 	 	 	Conforming/Non-Conforming
	EMC Mortgage Corporation
	 	A-1	 	P-1	 	Bear Steams Companies, Inc.	 	Conforming/Non-Conforming
	Federal Home
Loan Mortgage Corp.
	 	A-1+	 	P-1	 	 	 	Conforming/Non-Conforming
	First Horizon Home Loan Corporation
	 	A-1	 	P-1	 	First Tennessee Bank, N.A.	 	Conforming/Non-Conforming
	Georgia Housing & Finance Authority
	 	N/A	 	N/A	 	 	 	Conforming/Non-Conforming
	Goldman Sachs Group
	 	A-1 +	 	P-1	 	 	 	Conforming/Non-Conforming
	IndyMac Bank
	 	A-3	 	N/A	 	 	 	Conforming
	Lehman Brothers
	 	A-1	 	P-1	 	Lehman Brothers Holdings, Inc.	 	Conforming/Non-Conforming
	Morgan Stanley Mortgage Capital
	 	A-1+	 	P-1	 	Morgan Stanley	 	Conforming/Non-Conforming
	National
City Mortgage Co.
	 	A-1	 	P-1	 	National City Corporation	 	Conforming/Non-Conforming
	North Carolina Housing Finance
	 	N/A	 	N/A	 	 	 	Conforming/Non-Conforming
	South
Carolina State Housing Finance
	 	N/A	 	N/A	 	 	 	Conforming/Non-Conforming
	UBS Investment Bank
	 	A-1 +	 	P-1	 	UBS AG	 	Conforming/Non-Conforming
	Wachovia Mortgage Corporation
	 	A-1+	 	P-1	 	Wachovia Bank, N.A.	 	Conforming/Non-Conforming
	Washington
Mutual Bank, F.A.
	 	A-1	 	P-1	 	 	 	Conforming/Non-Conforming
	Wells Fargo
Bank, N.A.
	 	A-1+	 	P-1	 	 	 	Conforming/Non-Conforming

 

AI-1

 

SCHEDULE AR

TO Master Repurchase Agreement

	 	 	 
	Schedule AR 

DHI Mortgage Company, Ltd. 

Authorized Seller Representatives
	 	 

PERSONNEL AUTHORIZED TO SIGN (A) CORPORATE ASSIGNMENTS, (B)
INSTRUMENTS, (C) COLLATERAL CERTIFICATES, REPORTS, AND DIRECTIONS AS TO THE SHIPMENT OF COLLATERAL
TO INVESTORS, OR (D) OTHER DOCUMENTS IN CONNECTION WITH THE PURCHASED LOANS UNDER THE
MASTER REPURCHASE AGREEMENT:

	 	 	 
	Name	 	Title
	Arnoldy, Chris

	 	Assistant Secretary
	Bencivenga, Virginia

	 	Assistant Secretary
	Bennack, James J.

	 	Assistant Secretary
	Bertelson, Carolyn

	 	VP, Compliance Manager
	Bingham, Michelle

	 	Assistant Secretary
	Christensen, Pam

	 	Assistant Secretary
	Cunningham, Brigitte

	 	AS, Closer
	DeLashmit, Suzanne

	 	Assistant Secretary
	Eckoff, Donnie L.

	 	Assistant Secretary
	Farrington, Candiss M.

	 	Assistant Secretary
	Hannah, Liberty

	 	Assistant Secretary
	Harman, Kathy J.

	 	Assistant Secretary
	Harrison, Shelley

	 	Assistant Secretary
	Kuiken, Julie

	 	Assistant Secretary
	Landgraf, Lea A.

	 	Assistant Secretary
	Metzdorf, Karen

	 	Assistant Secretary
	Montano, Thomas B.

	 	Assistant Secretary
	Moreno, Amy

	 	AS, Asst Post Closing Mgr
	Northwick, Shelley

	 	Assistant Secretary
	Walston, Shelby W.

	 	Assistant Secretary
	Woodley, Roseanne

	 	Assistant Secretary
	Yancy, Rod

	 	Assistant Secretary
	Winter, Mark

	 	EVP, CFO
	Price, Lisa

	 	VP, Controller

PERSONNEL AUTHORIZED TO PROVIDE TELEPHONIC NOTICE TO THE AGENT
REQUESTING TRANSACTIONS AND REPURCHASES UNDER THE MASTER REPURCHASE AGREEMENT AND PERSONNEL
AUTHORIZED TO SIGN AND SUBMIT WRITTEN CONFIRMATION OF PURCHASE TRANSACTIONS AND RELATED
REPURCHASES AND PURCHASE PRICE DECREASES UNDER THE MASTER REPURCHASE AGREEMENT:

 

AR-1

 

	 	 	 
	Name	 	Title
	Allen, Clay

	 	Assistant Secretary
	Gilbreath, Nerissa

	 	Assistant Secretary
	Hay, Tamara

	 	Assistant Secretary
	Present, Randall C.

	 	President
	Price, Lisa

	 	VP, Controller
	Winer, Mark

	 	EVP, CFO

The above listed Persons are Authorized Seller Representatives, as defined in the Master
Repurchase Agreement dated as of March 27, 2008 (as supplemented, amended or restated from time to
time, the “Current Repurchase Agreement”) among DHI Mortgage Company, Ltd. (the “Seller”), U.S.
Bank National Association (“U.S. Bank”) as a buyer and as agent and representative of the other
buyers party thereto (in that capacity, U.S. Bank is referred to as the “Administrative Agent”) and
the other buyers party thereto (together with U.S. Bank, the “Buyers”) as of the effective date of
this list stated above. The Buyers and the Administrative Agent, as well as the Custodian under
the Custody Agreement dated March 27, 2008 among the Seller, the Administrative Agent and U.S.
Bank, as documents custodian (the “Custodian”) shall be entitled to rely on this list until it is
superseded by a newer list signed and furnished by the Seller to the Administrative Agent and the
Custodian.

 

AR-2

 

SCHEDULE BC

TO Master Repurchase Agreement

The Buyers’ Committed Sums

(in dollars)

	 	 	 	 	 
	Buyer	 	Committed Sum	 
	U.S. Bank National Association
	 	$	 	 
	JPMorgan Chase Bank, National Association
	 	$	 	 
	Bank of America, N.A.
	 	$	 	 
	Lloyds TSB Bank
	 	$	 	 
	Comerica Bank
	 	$	 	 
	 	 	 	 	 
	Maximum Aggregate Commitment
	 	$	275,000,000	 

 

BC-1

 

SCHEDULE BP

TO Master Repurchase Agreement

LIST OF BASIC PAPERS

The following are the Basic Papers for Purchased Loans:

(a) the original Mortgage Note, bearing all intervening endorsements to negotiate it from the
original payee named therein to the Seller and endorsed by the Seller as follows:

Pay To The Order Of

Without Recourse

 

[SELLER’S NAME]

[signature]

[name, title]

(b) the recorded original or a Certified Copy of the power of attorney for each maker of the
Mortgage Note who (if any) did not personally execute the Mortgage Note and for whom the Mortgage
Note was executed by an attorney-in-fact;

(c) the recorded original or a Certified Copy of the Mortgage securing such Mortgage Note;

(d) originals or Certified Copies of all intervening assignments (if any) reflecting a
complete chain of assignment of such Mortgage from the original mortgagee to the Seller;
provided that intervening assignments are not required for any Mortgage that has been
originated in the name of MERS and registered under the MERS® System; and

(e) the signed original of a Mortgage Assignment assigning the Mortgage in blank in a form
that is complete so as to be recordable in the jurisdiction where the Mortgaged Premises are
located without the need for completion of any blanks or supplying of any other information;
provided that no Mortgage Assignment is required for any Mortgage that has been originated
in the name of MERS and registered under the MERS® System with U.S. Bank as Interim Funder.

 

BP-1

 

SCHEDULE DQ

TO 12/07 Repurchase Agreement

DISQUALIFIERS

“Disqualifier” means any of the following events; after the occurrence of any Disqualifier,
unless the Administrative Agent shall have waived it, or declared it cured, in writing, the Market
Value of the affected Purchased Loan shall be deemed to be zero, and the Administrative Agent shall
be deemed to have marked such Purchased Loan to market:

1. Any event occurs, or is discovered to have occurred, after which the affected Purchased
Loan fails to satisfy any element of the definition of “Eligible Loan”.

2. In respect of any Purchased Loan, for any reason whatsoever any of the Seller’s special
representations concerning Purchased Loans set forth in Section 15.3 applicable to that
type of Purchased Loan shall become untrue, or shall be discovered to be untrue, in any respect
that is material to the value or collectability of that Purchased Loan, considered either by itself
or together with other Purchased Loans.

3. Any Purchased Loan shall become In Default.

4. Seven (7) Business Days shall have elapsed after the Purchase Date upon which a Wet Loan
has been sold to the Buyers without all of the Wet Loan’s Basic Papers having been received by the
Custodian.

5. For any Purchased Loan, any Basic Paper shall have been sent to the Seller or its designee
for correction, collection or other action and shall not have been returned to the Custodian on or
before nineteen (19) days after it was so sent to the Seller.

6. Any Purchased Loan shall be assumed by (or otherwise become the liability) of, or the real
property securing it shall become owned by, any corporation, partnership or any other entity that
is not a natural person or a trust for natural persons unless payment in full of such Purchased
Loan is guaranteed by a natural person. The Administrative Agent, the Buyers and Custodian may
rely on the Seller’s representation and warranty that no Purchased Loans have been so assumed by
(or otherwise become the liability of) such a Person except as otherwise specified by written
notice(s) to the Custodian.

8. Any Purchased Loan shall be assumed by (or otherwise become the liability of), or the real
property securing it shall become owned by, an Affiliate of the Seller or any of the Seller’s or
its Affiliates’ directors, managers, members or officers. The Administrative Agent, the Buyers and
Custodian may rely on the Seller’s representation and warranty that no Purchased Loans have been so
assumed by (or otherwise become the liability of) such a Person except as otherwise specified by
written notice(s) to the Custodian.

9. Any Purchased Loan shipped to an Approved Investor shall not be paid for or returned to the
Custodian or the Administrative Agent (whichever shipped it) on or before forty-five (45) days
after it is shipped.

 

DQ-1

 

10. More than 120 days shall have elapsed since the Purchase Date of a Conforming Mortgage
Loan, an Alt-A Agency Loan or a Jumbo Mortgage Loan.

11. More than 90 days shall have elapsed since the Purchase Date of an Alt-A Non-Agency Loan,
a Second Lien Loan, a HELOC, a Super Jumbo Mortgage Loan, an Agency-eligible Non-Owner Occupied
Loan and a 40 Year Mortgage Loan.

12. More than 120 days shall have elapsed since the Purchase Date of any Mortgage Loan made in
conjunction with a bond program.

13. Any Purchased Loan that is shipped to the Seller for correction of one or more Basic
Papers when the Purchase Value of all Purchased Loans so shipped to the Seller exceeds $10,000,000.

14. Any Purchased Loan is listed on a Custodian’s Exception Report and the Administrative
Agent has not exercised its discretion to exclude such Purchased Loan from this list of
Disqualifiers under Section 22.5(a) (for avoidance of doubt, this means a Purchased Loan is
subject to discrepancies, inconsistencies or has documents that are incomplete).

 

DQ-2

 

SCHEDULE EL

TO Master Repurchase Agreement

ELIGIBLE LOANS

“Eligible Loans” means Single-family Loans that are amortizing Conforming Mortgage Loans with
original terms to stated maturities of thirty (30) years or less (except for Agency-eligible Forty
Year Loans) and that satisfy all applicable requirements of this Agreement for Conforming Mortgage
Loans and shall also mean Single-family Loans that are HELOCS, Second Lien Loans, Alt-A Agency
Loans, Alt-A Non-Agency Loans, Agency-eligible Forty Year Loans, Jumbo Mortgage Loans, Super Jumbo
Mortgage Loans and Non-owner Occupied Mortgage Loans that otherwise meet all criteria for Eligible
Loans set forth on this Schedule EL and are not subject to a Disqualifier. Unless it is a Second
Lien Loan or a HELOC, it must be secured by a first priority Lien on its related Mortgaged
Premises, and if it is a Second Lien Loan or a HELOC, it must be a Piggyback Loan. It may bear
interest at a fixed interest rate, at a fluctuating interest rate or at a fixed or fluctuating
interest rate for part of its term followed, respectively, by a fluctuating or fixed interest rate
for the remainder of its term. No Mortgage Loan shall be an Eligible Loan at any time:

(1) If the Mortgaged Premises securing it is a mobile home, manufactured housing, or
cooperative housing unit.

(2) That does not satisfy the Seller’s Underwriting Guidelines for a Single-Family Loan
in all material respects.

(3) That contains or is otherwise subject to any contractual restriction or prohibition
on the free transferability of such Mortgage Loan, all Liens securing it and all related
rights (other than Legal Requirements requiring notification to its obligor(s) of any
transfer of it or of its servicing or administration), either absolutely or as security.

(4) If any of its owners-mortgagors is a corporation, partnership or any other entity
that is not a natural person or a trust for natural persons unless its full payment when due
is guaranteed by a natural person.

(5) If any of its owner-mortgagors is an Affiliate of the Seller or any of the Seller’s
or any such Affiliate’s directors, members, managers or officers.

(6) Whose related Mortgaged Premises are not covered by a Hazard Insurance Policy.

(7) That is a construction, rehabilitation or commercial loan. The Administrative
Agent, Buyers and Custodian may rely on the Seller’s representation and warranty that no
Purchased Loan is such a loan.

(8) That is not a Conforming Mortgage Loan and is not subject to a Hedge Agreement or
that is not eligible for purchase by an Agency and is not eligible for purchase by two
Approved Investors.

 

EL-1

 

(9) That is a HELOC or Second Lien Loan that is not a Prime Loan.

(10) That was originated more than thirty (30) days before its Purchase Date.

(11) That is In Default or ever was In Default.

(12) That contains any term or condition such that the repayment schedule results in
the outstanding principal balance increasing over time, rather than amortizing, whether or
not such Mortgage Loan is deemed to be an “option ARM”, “negative amortization” or
“graduated payment” loan. The Administrative Agent, the Buyers and the Custodian may rely
on the Seller’s representation and warranty that any Mortgage Loan duly sold to the Buyers
amortizes over time.

(13) In connection with the origination of which a policy of single-premium life
insurance on the life of a mortgagor, borrower or guarantor was purchased.

(14) That (i) is subject to the special Truth-in-Lending disclosure requirements
imposed by Section 32 of Regulation Z of the Federal Reserve Board (12 C.F.R. § 226.32) or
any similar state or local Law relating to high interest rate credit or lending transactions
or (ii) contains any term or condition, or involves any loan origination practice, that (1)
has been defined as “high cost”, “high risk”, “predatory”, “covered”, “threshold” or a
similar term under any such applicable federal, state or local law, (2) has been expressly
categorized as an “unfair” or “deceptive” term, condition or practice in any such applicable
federal, state or local law (or the regulations promulgated thereunder) or (3) by the terms
of such Law exposes assignees of Mortgage Loans to possible civil or criminal liability or
damages or exposes any Buyer or the Administrative Agent to regulatory action or enforcement
proceedings, penalties or other sanctions. The Administrative Agent, Buyers and Custodian
may rely on the Seller’s representation and warranty that no Purchased Loan is such a loan.

(15) That the Seller or any Affiliate has previously warehoused with any other Person,
whether under a lending arrangement or an arrangement involving a sale in contemplation of a
subsequent further sale to (or securitization by) a secondary mortgage market purchaser,
whether with or without the Seller’s having any conditional repurchase or other recourse
obligation, and that was rejected or became ineligible or disqualified to be lent against or
purchased and held by such other Person; provided that this provision shall not be construed
or applied to disqualify a Purchased Loan simply because it was purchased by the Seller out
of a pool of Serviced Loans or from a whole loan investor for whose Mortgage Loans the
Seller is a Servicer pursuant to the Seller’s (or an Affiliate’s) obligation or election as
Servicer to do so. The Administrative Agent, Buyers and Custodian may rely on the Seller’s
representation and warranty that no Purchased Loan is such a loan.

(16) That the Seller or any Affiliate sold and transferred, or attempted to sell and
transfer, to any other Person; provided that this provision shall not be construed or
applied to disqualify a Purchased Loan simply because it was purchased by the Seller out of
a pool of Serviced Loans or from a whole loan investor for whose Mortgage Loans the
Seller is a Servicer pursuant to the Seller’s (or an Affiliate’s) obligation or election as Servicer to do so. The Administrative Agent, Buyers and Custodian may rely on the Seller’s representation and warranty that no Purchased Loan is such a loan.

 

EL-2

 

(17) Except qualifying Conforming Mortgage Loans, FHA Loans and VA Loans, that has a
Cumulative Loan-to-Value Ratio greater than ninety-five percent (95%) and for qualifying
Conforming Mortgage Loans, FHA Loans and VA Loans, that has a Cumulative Loan-to Value-Ratio
greater than one hundred three percent (103%).

(18) That (i) is not a Conforming Mortgage Loan secured by a first Lien Mortgage,
(ii) has a Cumulative Loan to-Value Ratio greater than eighty percent (80%) and (iii) is not
guaranteed by VA, is not insured by FHA or private mortgage insurance provided by a provider
acceptable to the Administrative Agent and the Syndication Agent (the Administrative Agent,
Syndication Agent, Buyers and the Custodian may rely on the Seller’s representation and
warranty in Section 15.3(n) as to whether this condition is satisfied for any such Purchased
Loan).

(19) As to which any Disqualifier exists.

(20) Unless all of the Seller’s right, title and interest in and to the Purchased Loan
is subject to a first priority perfected security interest in favor of the Administrative
Agent for the benefit of the Buyers subject to no other liens, security interests, charges
or encumbrances other than the Seller’s right to repurchase the Purchased Loan hereunder.

(21) Unless all the representations and warranties set forth in this Agreement,
including, without limitation, Section 15.3 and Schedule 15.3 are true and
correct with respect to such Purchased Loan at all times on and after the related Purchase
Date.

(22) If such Mortgage Loan is not a Conforming Mortgage Loan, Seller has materially
changed Seller’s Underwriting Guidelines for such Mortgage Loan and the Administrative Agent
and Syndication Agent have not approved such changes.

 

EL-3

 

SCHEDULE UG-SSF

TO Master Repurchase Agreement

The Seller’s Underwriting Guidelines for Single-family Loans are set forth in a separate
binder that the Seller will deliver to the Administrative Agent and Syndication Agent, upon
request.

 

UG-SSF-1

 

SCHEDULE 15.2(f)

TO Master Repurchase Agreement

MATERIAL ADVERSE CHANGES AND CONTINGENT LIABILITIES

1. Material adverse changes and material unrealized losses since the Statement Date, as
referred to in Section 15.2(f): None

2. Contingent liabilities as of the Effective Date, as referred to in Section 15.2(f):
None

 

15.2(f)-1

 

SCHEDULE 15.2(g)

TO Master Repurchase Agreement

PENDING LITIGATION

None

 

15.2(g)-1

 

SCHEDULE 15.2(o)

TO Master Repurchase Agreement

EXISTING LIENS

None

 

15.2(o)-1

 

SCHEDULE 15.2(q)

TO Master Repurchase Agreement

Seller’s Plans

No ERISA Plans other than welfare benefit plans

 

15.2(q)-1

 

Schedule 15.3

TO Master Repurchase Agreement

Special representations and warranties with respect to each Purchased Loan

As of the related Purchase Date, for each Purchased Loan the Seller makes the following
representations and warranties:

(a) The information with respect to each Purchased Loan set forth in the related
Mortgage Loan Transmission File is true and correct as of the date specified in all material
respects.

(b) The Seller is the sole legal and equitable owner (except in the case of MERS
Designated Loans, as to which MERS, as nominee for the Seller and its successors and
assigns, is the record owner), free and clear of all Liens other than Permitted
Encumbrances, of all Mortgage Loans to be sold to the Buyers by the Seller pursuant to this
Agreement and has full right to sell such Mortgage Loans to the Buyers.

(c) All Purchased Loans, including Wet Loans, have been duly authorized and validly
created.

(d) Each of the Purchased Loans sold to the Buyers by the Seller complies with all of
the requirements of this Agreement and the Custody Agreement and is genuine and what it
purports to be.

(e) All information concerning each item or grouping of Purchased Loans listed in any
Loan Schedule or in a Mortgage Loan Transmission File sent to the Administrative Agent or
the Custodian was, is and/or shall be (as applicable) true and complete in all material
respects as of the date of such Loan Schedule or Mortgage Loan Transmission File.

(f) The Seller has complied and will continue to comply in all material respects with
all Legal Requirements relating to each Purchased Loan.

(g) Each Mortgage Note and Mortgage related to a Purchased Loan, including Wet Loans,
has been duly (i) endorsed or assigned to the Seller and (ii) endorsed or assigned by the
Seller in blank (assignment of the Mortgage in blank is not required when MERS is designated
in the Mortgage as the original mortgagee or the nominee of the original mortgagee, its
successors and assigns) and delivered (or in the case of Wet Loans are in the process of
being delivered) to the Custodian.

(h) All Basic Papers for each Purchased Loan (except Wet Loans) will be transmitted to
the Custodian with the Request/Confirmation with which it is submitted for purchase.

(i) Each assignment to the Administrative Agent of the Lien securing any Purchased Loan
will be in proper and sufficient form for recording in the appropriate government office in
the U.S. jurisdiction where the related Mortgaged Premises are
located (no such assignment is required for any Mortgage that has been originated in
the name of MERS and registered under the MERS® System).

 

15.3-1

 

(j) The Seller has and will continue to have the full right, power and authority to
sell the Purchased Loans to the Buyers, and the Purchased Loans sold and to be sold to the
Buyers by the Seller under this Agreement or pursuant to it may be further sold, resold,
assigned and reassigned to any Person or Persons without any requirement for the further
consent of the Seller or the consent of any other party to any of the Loan Papers or
obligated in respect of the Purchased Loans.

(k) The Seller will maintain the Lien on the real estate described in, or referred to
as covered by, each Purchased Loan as a Lien having the priority represented by the Seller
to the Administrative Agent or the Custodian, subject only to the Permitted Encumbrances,
until that Purchased Loan shall have been repurchased by the Seller.

(l) Each Purchased Loan is covered by an ALTA mortgage title insurance policy or such
other form of title insurance as is acceptable to Fannie Mae or Freddie Mac, issued by and
constituting the valid and binding obligation of a title insurer that is generally
acceptable to prudent mortgage lenders who regularly originate or purchase Mortgage Loans
comparable to the Purchased Loans that are for sale to prudent investors in the secondary
market in which investors invest in Mortgage Loans such as the Purchased Loan insuring the
Seller, its successors and assigns, as to the first priority (or, in the case of a second
lien Loan, second priority) of the Lien of the Mortgage on the related Mortgaged Premises,
in an amount equal to the original principal amount of such Purchased Loan. The Seller is
the sole named insured of such mortgage title insurance policy, the assignment to the
Administrative Agent of the Seller’s interest in such policy does not require the consent of
or notice to the insurer (or such consent has been obtained or notice given), and such
policy is and will be in full force and effect and inure to the benefit of the
Administrative Agent as and when such Purchased Loan is sold to the Buyers. No claims have
been made under such policy and no prior holder of the Purchased Loan, including the Seller,
has done, by act or omission, anything that would impair the coverage of such policy.

(m) The Mortgaged Premises securing each Purchased Loan are capable of being lawfully
occupied under applicable Laws, all inspections, licenses and certificates required to be
made or issued with respect to all occupied portions of such Mortgaged Premises and, with
respect to the use and occupancy of the same, including certificates of occupancy and fire
underwriting certificates, have been made or obtained from the appropriate Governmental
Authority.

(n) Each Purchased Loan that is not a Conforming Mortgage Loan secured by a first
Mortgage Lien that has a Cumulative Loan-to-Value Ratio greater than eighty percent (80%) is
either guaranteed by VA or insured by FHA or private mortgage insurance provided by an
insurer approved by the Administrative Agent and the Syndication Agent.

 

15.3-2

 

(o) The Seller has no knowledge of any circumstances or conditions with respect to the
Mortgage, the Mortgaged Premises or the Customer in respect of any Purchased Loan (other
than the Customer’s credit standing) that can reasonably be expected to cause private
institutional investors that regularly invest in Mortgage Loans similar to such Purchased
Loan to regard such Purchased Loan as an unacceptable investment or adversely affect the
value or marketability of such Purchased Loan to other similar institutional investors.

(p) Each Purchased Loan’s Mortgage contains an enforceable provision for acceleration
of the maturity of the unpaid principal balance thereof in the event that the Mortgaged
Premises are sold or transferred without the prior written consent of the holder thereof.

(q) No Purchased Loan contains provisions pursuant to which monthly payments are paid
in whole or in part with funds deposited in any separate account established by the Seller,
the relevant Customer or anyone on behalf of the Customer, or paid by any source other than
the Customer, or any other similar provisions currently in effect that effectively
constitute a “buydown” provision.

(r) No Purchased Loan is a graduated payment Mortgage Loan or has a shared appreciation
or other contingent interest feature.

(s) All interest rate adjustments, if any, in respect of each Purchased Loan have been
made in strict compliance with applicable Law and the terms of the related Mortgage Note,
and any interest required to be paid pursuant to applicable Law has been properly paid and
credited.

(t) No Customer in respect of any Purchased Loan has notified the Seller, and the
Seller has no knowledge, of any relief requested by or allowed to such Customer under the
Servicemembers’ Civil Relief Act of 2003.

(u) The Seller used no selection procedures that identified the Eligible Loans relating
to a Transaction as being less desirable or valuable than other comparable assets in
Seller’s portfolio on the related Purchase Date, and no Purchased Loan was selected for
inclusion in a Transaction on any basis that was intended to have a material adverse effect
on the Buyers or the Administrative Agent.

(v) No Purchased Loan is subject to a bankruptcy plan.

(w) Each Purchased Loan is a “qualified mortgage” within the meaning of §860G(a)(3) of
the Internal Revenue Code.

(x) All Purchased Loans and all related papers included in the Purchased Loans:

(1) were originated by the Seller, a duly licensed mortgage lender in the
ordinary course of its business;

 

15.3-3

 

(2) have been made in compliance with all applicable requirements of the Real
Estate Settlement Procedures Act, the Equal Credit Opportunity Act, the federal
Truth-In-Lending Act, the Fair Credit Billing Act, the Fair Credit Reporting Act,
related statutes and regulations and all applicable Legal Requirements under usury,
truth-in-lending, equal credit opportunity and all other Laws, and the continued
compliance of the Purchased Loans is not affected by their sale to the Buyers;

(3) are the legal, valid and binding obligations of the respective Customers
who entered into them and are and will continue to be valid and enforceable in
accordance with their terms, without any claim, right of rescission, counterclaim,
defense or offset, including any claim or defense of usury, except as such
enforceability may be limited by bankruptcy and other laws affecting the rights of
creditors generally and by principles of equity, excepting rights that, by
applicable law, cannot be waived, and neither the operation of any of their
respective contract terms nor the exercise of any right thereunder will render any
of them partly or wholly unenforceable or subject to any such claim, right of
rescission, counterclaim, defense or offset, and no such claim, right of rescission,
counterclaim, defense or setoff has been asserted;

(4) have not been modified or amended and none of their requirements has been
waived, except as expressly and completely reflected in the applicable Loan Papers
furnished to the Custodian;

(5) have fair market values equal to or greater than the Purchase Price
respectively attributed or allocated to them under this Agreement on the Purchase
Date;

(6) comply and will continue to comply with the terms of this Agreement and the
Custody Agreement;

(7) were not originated in, and are not subject to the laws of, any
jurisdiction whose laws (i) make unlawful their sale to the Buyers pursuant to this
Agreement, or (ii) render the Purchased Loans unenforceable;

(8) are in full force and effect and have not been satisfied or subordinated in
whole or in part or rescinded, and the residential real property securing each
Purchased Loan has not been partially or completely released from the Lien of such
Purchased Loan;

(9) evidence and are each secured by a valid first Lien, or if applicable a
second Lien, in favor of the Seller on real property securing the amount owed by the
Customer(s) under the related Mortgage, subject only to Permitted Encumbrances;

 

15.3-4

 

(10) are each executed in full accordance with all requirements of the
applicable Laws of the jurisdiction in which the related Mortgaged Premises are
located, with the Mortgage for each being (i) duly acknowledged and sealed by
such official and in such manner and form as to be both recordable and
effective under such Laws to give such constructive notice to all Persons as shall
be necessary to establish and continue the Lien of such Mortgage with the priority
that the Seller represents it has to the Administrative Agent and (ii) so recorded,
and with the Mortgage Note, Mortgage and all related papers executed with the
genuine original signature(s) of the Customer(s) obligated on such Purchased Loan,
and all parties to each such Purchased Loan had full legal capacity to execute it;

(11) are secured by Single-family residential property;

(12) are the subject of a Current Appraisal or a Current Broker’s Price Opinion
of which the Seller has possession and will make available to the Custodian on
request, and the Seller has in its possession and will make available to the
Custodian on request evidence of such value and how it was determined;

(13) are not subject to the Home Ownership and Equity Protection Act of 1994;

(y) As to each Purchased Loan and its Loan Papers:

(1) the Loan Papers contain customary and enforceable provisions so as to
render the rights and remedies of their holder adequate for the realization against
the Purchased Loan of the benefits of the security intended to be provided by it;

(2) there is only one original executed Mortgage Note, and, except in the case
of Wet Loans, that original has been delivered to the Custodian;

(3) none of its makers or mortgagors is an Affiliate of the Seller or any of
its or its Subsidiaries’ directors or officers;

(4) does not contain any term or condition such that the repayment schedule
results in the outstanding principal balance increasing over time, rather than
amortizing, whether or not such Purchased Loan is deemed to be an “option ARM”,
“negative amortization” or “graduated payment” loan. The Administrative Agent and
the Custodian may rely on the Seller’s representation and warranty that any
Purchased Loan amortizes over time.

(z) Each Mortgage is a Lien on the premises and property described in it having the
priority represented to the Administrative Agent, and the description of the Mortgaged
Premises in each Mortgage is legally adequate and each Purchased Loan, other than a HELOC,
has been fully advanced in its face amount.

(aa) No default, and no event that with notice or lapse of time or both would become a
default, has occurred and is continuing in respect of any Purchased Loan except as to which
the Seller has given notice to the Administrative Agent (by reporting Purchased Loans that
are delinquent Mortgage Loans), and if any such default or event
has occurred, it has not continued for more than thirty (30) days, reckoned and counted
from the most recent month end, and the Seller will promptly notify the Administrative Agent
of any such Purchased Loan that is in default for a longer period of time.

 

15.3-5

 

(bb) The Mortgaged Premises in each Mortgage is insured by a fire and extended perils
insurance policy and such other hazards as are customary in the area where the Mortgaged
Property is located or customary under Seller’s servicing procedures and the amount of the
insurance is in the amount of the full insurable value of the Mortgaged Property on a
replacement cost basis or the unpaid balance of the Mortgage Loans, whichever is less. If
the Mortgaged Property is in an area identified by any federal governmental authority as
having special flood hazards, and flood insurance is available, a flood insurance policy
meeting the current guidelines of the Federal Insurance Administration is in effect. All
such insurance policies (collectively, the “hazard insurance policy”) contain a
standard mortgage clause naming the originator and its successors and assigns (including
subsequent owners of the Mortgage Loan), as mortgagee

(cc) Each Purchased Loan is covered by an Investor Commitment and is eligible and
qualified for refinancing on or before seven (7) Business Days after its Purchase Date under
a committed Mortgage Loan repurchase or warehousing agreement between the Seller and a
repurchase agreement counterparty or warehouse lender other than the Buyers.

 

15.3-6

 

SCHEDULE 16.1

TO Master Repurchase Agreement

Market Analysis Report

The Market Analysis Report shall contain the following fields:

1. Lender code

2. Loan ID

3. Borrower Name

4. Address

5. City

6. State

7. Zip Code

8. Loan Amount

9. Purchase Value (initial)

10. Production stage (wet or dry)

11. Credit Grade

12. Amortization Code

13. Investor Code

14. Acquisition cost

15. Mortgage Date

16. Interest rate

17. FICO

18. Lien

19. Sale Date

20. Age from sale date

21. Aging days

22. Branch code

 

16.1-1

 

24. Region

25. Sublimit

27. DHI Investor Code

28. Amortization term

29. Borrower FICO

30. CLTV Ratio

31. Current rate

32. Documentation type

33. First Payment Date

34. Interest only flag

35. Interest only term in months

36. Lien Position

37. LTV Ratio

38. Owner Occupancy

39. Next payment due date

40. Prepayment description

41. Prepayment penalty years

42. Product Description

43. Property type

44. State

45. Unpaid balance

46. Appraisal value

47. ARM First Pay Adjust Date

48. ARM First Rate Adjust Date

49. ARM Initial Pay Teaser Period

 

16.1-2

 

50. ARM Margin

51. ARM Pay Adjust Freq.

52. ARM Rate Adjust Freq

53. Balloon flag

54. Credit Grade

55. DTI Ratio

56. First periodic cap

57. Floor

58. Life Cap

59. Maturity Date

60. Maximum Rate

61. Negam Flag

62. Original Rate

63. Funded

64. Payment paid thru

65. Periodic cap

66. Purchase Price

67. Total units

68. Unpaid Balance curr senior

69. Unpaid balance original

70. DU result

71. LP Doc Class

72. LP Purch Elig

73. LP Risk Class

74. First time HB

 

16.1-3

 

75. MI Company

76. MI Percent

77. Self employed

78. LPMI flag

 

16.1-4

 

SCHEDULE 23

TO Master Repurchase Agreement

Buyers’ Addresses for Notice

As of March 27, 2008

Paula Laesch

Bank of America

901 Main Street

TX1-492-64-01

Dallas, TX 75202

Tel:     (214) 209-9011

Fax:     (214) 209-0604

             paula.k.laesch@bankofamerica.com

Robert Marr

Comerica Bank

One Detroit Center

500 Woodward Ave.

Detroit, MI 48226

Tel:     (313) 222-4119

Fax:     (313) 222-9295

             rwmarr@comerica.com

Peter Hart

Lloyds TSB Bank plc

1251 Avenue of the Americas

39th Floor

New York, NY 10020

Tel:     (212) 930-8961

Fax:     [212-930-5098]

             pchart@lloydstsb-usa.com

Mark A. Wegener

J.P. Morgan Securities Inc.

MortgageFinance/Securitized Products Group

10 South Dearborn Street

13th Floor

Chicago, IL 60670

Tel:      312.732.3953

Fax:

            mark.wegener@jpmorgan.comusa.com

Edwin Jenkins

U.S. Bank National Association

800 Nicollet Mall — BC-MN-H03B

Minneapolis, MN 55402-7020

Tel:     (612) 303-3582

Fax:     (612) 303-2253

             edwin.jenkins@usbank.com

 

23-1

 

Company Contacts:

Mark Winter / Lisa Price

DHI Mortgage

12554 Riata Trace Parkway

Austin,Texas 78727

Tel:     (512) 533-1390 / 1382

Fax:     (866) 699-0335

              mwinter@drhorton.com

Jeff Tebeaux

D.R. Horton, Inc.

301 Commerce Street, Suite 500

Ft. Worth, TX 76102

Tel:      (817) 390-8371

Fax:     (469) 522-8453

             jtebeaux@drhorton.com

 

23-2

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