Document:

Exhibit 10.1

Exhibit 10.1

FUNDS AT LLOYD’S LETTER OF CREDIT AGREEMENT

AMONG

THE NAVIGATORS GROUP, INC.,

as Borrower,

THE LENDERS NAMED HEREIN,

and

ING BANK N.V., LONDON BRANCH,

as Administrative Agent and Letter of Credit Agent

DATED AS OF

March 28, 2011

ING BANK, N.V., LONDON BRANCH,

as Lead Arranger

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II THE LETTER OF CREDIT FACILITY
	 	 	18	 
	 
	 	 	 	 
	2.1 Issuance of Letters of Credit
	 	 	18	 
	2.2 Conversion Principles
	 	 	19	 
	2.3 Reductions in Aggregate Commitment
	 	 	19	 
	2.4 Reimbursement Obligations
	 	 	20	 
	2.5 Procedure for Issuance
	 	 	21	 
	2.6 Nature of the Agent and Lenders’ Obligations
	 	 	22	 
	2.7 Notification of Issuance Requests
	 	 	24	 
	2.8 Fees
	 	 	24	 
	2.9 Collateralization Events
	 	 	25	 
	2.10 Collateral Account
	 	 	26	 
	 
	 	 	 	 
	ARTICLE III YIELD PROTECTION; TAXES
	 	 	27	 
	 
	 	 	 	 
	3.1 Yield Protection
	 	 	27	 
	3.2 Changes in Capital Adequacy Regulations
	 	 	28	 
	3.3 Taxes
	 	 	28	 
	3.4 Lender Statements; Survival of Indemnity
	 	 	31	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT
	 	 	31	 
	 
	 	 	 	 
	4.1 The Lenders Obligation to Issue
	 	 	31	 
	4.2 Each Letter of Credit
	 	 	33	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	34	 
	 
	 	 	 	 
	5.1 Existence and Standing
	 	 	34	 
	5.2 Authorization and Validity
	 	 	34	 
	5.3 No Conflict; Government Consent
	 	 	34	 
	5.4 Financial Statements
	 	 	35	 
	5.5 Statutory Financial Statements
	 	 	35	 
	5.6 Material Adverse Change
	 	 	35	 
	5.7 Taxes
	 	 	35	 
	5.8 Litigation and Contingent Obligations
	 	 	36	 
	5.9 Subsidiaries
	 	 	36	 

 

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(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	5.10 ERISA
	 	 	36	 
	5.11 Defaults
	 	 	36	 
	5.12 Accuracy of Information
	 	 	36	 
	5.13 Regulation U
	 	 	36	 
	5.14 Material Agreements
	 	 	36	 
	5.15 Compliance With Laws
	 	 	37	 
	5.16 Ownership of Properties
	 	 	37	 
	5.17 Plan Assets; Prohibited Transactions
	 	 	37	 
	5.18 Environmental Matters
	 	 	37	 
	5.19 Investment Company Act
	 	 	37	 
	5.20 Solvency
	 	 	37	 
	5.21 Insurance Licenses
	 	 	38	 
	5.22 Partnerships
	 	 	38	 
	5.23 Lines of Business
	 	 	38	 
	5.24 Reinsurance Practices
	 	 	38	 
	5.25 Security
	 	 	38	 
	5.26 Disclosure
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VI COVENANTS
	 	 	39	 
	 
	 	 	 	 
	6.1 Financial Reporting
	 	 	39	 
	6.2 Purpose
	 	 	43	 
	6.3 Notice of Default
	 	 	43	 
	6.4 Conduct of Business
	 	 	43	 
	6.5 Taxes
	 	 	43	 
	6.6 Insurance
	 	 	43	 
	6.7 Compliance with Laws
	 	 	44	 
	6.8 Maintenance of Properties
	 	 	44	 
	6.9 Inspection; Maintenance of Books and Records
	 	 	44	 
	6.10 Dividends and Stock Repurchases
	 	 	44	 
	6.11 Indebtedness
	 	 	44	 
	6.12 Merger
	 	 	45	 

 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	6.13 Sale of Assets
	 	 	45	 
	6.14 Investments and Acquisitions
	 	 	45	 
	6.15 Contingent Obligations
	 	 	46	 
	6.16 Liens
	 	 	47	 
	6.17 Affiliates
	 	 	47	 
	6.18 Amendments to Agreements
	 	 	47	 
	6.19 Change in Fiscal Year
	 	 	48	 
	6.20 Inconsistent Agreements
	 	 	48	 
	6.21 Reinsurance
	 	 	48	 
	6.22 Stock of Subsidiaries
	 	 	48	 
	6.23 Financial Covenants
	 	 	49	 
	6.24 Additional Pledge
	 	 	49	 
	6.25 Primary FAL
	 	 	49	 
	 
	 	 	 	 
	ARTICLE VII DEFAULTS
	 	 	50	 
	 
	 	 	 	 
	ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES
	 	 	52	 
	 
	 	 	 	 
	8.1 Acceleration
	 	 	52	 
	8.2 Amendments
	 	 	53	 
	8.3 Preservation of Rights
	 	 	54	 
	8.4 Application of Funds
	 	 	54	 
	 
	 	 	 	 
	ARTICLE IX GENERAL PROVISIONS
	 	 	55	 
	 
	 	 	 	 
	9.1 Survival of Representations
	 	 	55	 
	9.2 Governmental Regulation
	 	 	55	 
	9.3 Headings
	 	 	55	 
	9.4 Entire Agreement
	 	 	55	 
	9.5 Numbers of Documents
	 	 	55	 
	9.6 Several Obligations; Benefits of this Agreement
	 	 	55	 
	9.7 Expenses; Indemnification
	 	 	56	 
	9.8 Accounting
	 	 	56	 
	9.9 Severability of Provisions
	 	 	56	 
	9.10 Nonliability of Lenders
	 	 	56	 

 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	9.11 Confidentiality
	 	 	57	 
	9.12 Nonreliance
	 	 	57	 
	9.13 Disclosure
	 	 	57	 
	9.14 USA Patriot Act Notification
	 	 	57	 
	9.15 Existing Credit Agreement
	 	 	57	 
	 
	 	 	 	 
	ARTICLE X THE AGENT
	 	 	58	 
	 
	 	 	 	 
	10.1 Appointment; Nature of Relationship
	 	 	58	 
	10.2 Powers
	 	 	58	 
	10.3 General Immunity
	 	 	58	 
	10.4 No Responsibility for Recitals, etc
	 	 	59	 
	10.5 Action on Instructions of Lenders
	 	 	59	 
	10.6 Employment of Administrative Agent and Counsel
	 	 	59	 
	10.7 Reliance on Documents; Counsel
	 	 	59	 
	10.8 Administrative Agent’s Reimbursement and Indemnification
	 	 	60	 
	10.9 Notice of Default
	 	 	60	 
	10.10 Rights as a Lender
	 	 	60	 
	10.11 Lender Credit Decision
	 	 	60	 
	10.12 Successor Administrative Agent
	 	 	61	 
	10.13 Administrative Agents’ Fees
	 	 	61	 
	10.14 Delegation to Affiliates
	 	 	61	 
	10.15 Security Trustee
	 	 	62	 
	 
	 	 	 	 
	ARTICLE XI SETOFF; RATABLE PAYMENTS
	 	 	62	 
	 
	 	 	 	 
	11.1 Setoff
	 	 	62	 
	11.2 Ratable Payments
	 	 	62	 
	 
	 	 	 	 
	ARTICLE XII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
	 	 	63	 
	 
	 	 	 	 
	12.1 Successors and Assigns
	 	 	63	 
	12.2 Participations
	 	 	63	 
	12.3 Assignments
	 	 	64	 
	12.4 Dissemination of Information
	 	 	65	 
	12.5 Tax Treatment
	 	 	65	 

 

-iv-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	 
	 	 	 	 
	ARTICLE XIII NOTICES
	 	 	65	 
	 
	 	 	 	 
	13.1 Notices
	 	 	65	 
	13.2 Change of Address
	 	 	65	 
	 
	 	 	 	 
	ARTICLE XIV COUNTERPARTS
	 	 	66	 
	 
	 	 	 	 
	ARTICLE XV CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL
	 	 	66	 
	 
	 	 	 	 
	15.1 CHOICE OF LAW
	 	 	66	 
	15.2 CONSENT TO JURISDICTION
	 	 	66	 
	15.3 WAIVER OF JURY TRIAL
	 	 	66	 

	 	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Pricing Schedule
	 	 	 	 
	Schedule 1
	 	—	 	Commitments
	Schedule 1.1
	 	—	 	Cash Collateral Investments
	Schedule 5.9
	 	—	 	Subsidiaries
	Schedule 5.22
	 	—	 	Partnerships
	Schedule 5.23
	 	—	 	Existing Lines of Business
	Schedule 6.16
	 	—	 	Liens
	Schedule 6.21
	 	—	 	Reinsurance Guidelines
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A
	 	 	 	Compliance Certificate
	Exhibit B
	 	 	 	Assignment Agreement
	Exhibit C
	 	 	 	Reimbursement Agreement Excerpt
	Exhibit D
	 	 	 	Borrowing Base Certificate
	Exhibit E
	 	 	 	Security Agreement
	Exhibit F
	 	 	 	Fixed Charge
	Exhibit G
	 	 	 	Letter of Credit
	Exhibit H
	 	 	 	Lloyd’s Comfort Letter

 

-v-

 

FUNDS AT LLOYD’S LETTER OF CREDIT AGREEMENT

This Funds at Lloyd’s Letter of Credit Agreement, dated as of March 28, 2011, is among THE
NAVIGATORS GROUP, INC., a Delaware corporation, the Lenders and ING BANK, N.V., London Branch,
individually and as Administrative Agent and Lead Arranger.

R E C I T A L S:

A. The Borrower has requested that the Lenders provide a letter of credit facility, and the
Lenders are willing to do so on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and undertakings herein contained and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrower, the Lenders and the Administrative Agent hereby agree as follows:

ARTICLE I

DEFINITIONS

As used in this Agreement:

“Account Bank” means (i) with respect to funds in the United Kingdom, ING Bank, N.V., London
Branch and (b) with respect to funds in the United States, any “bank” within the meaning of Section
9-102(a)(8) of the UCC at which any deposit account constituting a Collateral Account is held,
which shall be reasonably acceptable to the Administrative Agent.

“Acquisition” means any transaction, or any series of related transactions, consummated on or
after the date of this Agreement, by which the Borrower or any of its Subsidiaries (a) acquires any
on-going business or all or substantially all of the assets of any firm, corporation or limited
liability company, or division thereof, whether through purchase of assets, merger, amalgamation or
otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of votes) of the securities
of a corporation which have ordinary voting power for the election of directors (other than
securities having such power only by reason of the happening of a contingency) or a majority (by
percentage or voting power) of the outstanding ownership interests of a partnership or limited
liability company.

“Adjusted Fair Market Value” means with respect to any Cash Collateral Investment held in a
Collateral Account an amount equal to the product of the Fair Market Value of such Cash Collateral
Investment and the applicable percentage with respect to such Cash Collateral Investment as set
forth on Schedule 1.1.

“Administrative Agent” means ING Bank, N.V. London Branch, in its capacity as Administrative
Agent pursuant to Article X and not in its individual capacity as a Lender or as Letter of
Credit Agent and any successor Administrative Agent appointed pursuant to Article X.

 

 

 

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

“Aggregate Commitment” means the aggregate commitment of all of the Lenders, as reduced or
increased from time to time pursuant to the terms hereof. The Aggregate Commitment as of the date
hereof is $165,000,000.

“Agreement” means this Funds at Lloyd’s Letter of Credit Agreement, as it may be amended,
modified or restated and in effect from time to time.

“Agreement Accounting Principles” means generally accepted accounting principles as in effect
from time to time, applied in a manner consistent with those used in preparing the financial
statements referred to in Section 5.4; provided, however, that for purposes
of all computations required to be made with respect to compliance by the Borrower with Section
6.23, such term shall mean generally accepted accounting principles as in effect on the Closing
Date, applied in a manner consistent with those used in preparing the financial statements referred
to in Section 5.4.

“A.M. Best Rating” means, as to any insurance company, its financial strength rating assigned
by The A.M. Best Company, Inc.

“Annual Statement” means the annual statutory financial statement of any Insurance Subsidiary
required to be filed with the insurance commissioner (or similar authority) of its jurisdiction of
incorporation, which statement shall be in the form required by such Insurance Subsidiary’s
jurisdiction of incorporation or, if no specific form is so required, in the form of financial
statements permitted by such insurance commissioner (or such similar authority) to be used for
filing annual statutory financial statements and shall contain the type of information permitted by
such insurance commissioner (or such similar authority) to be disclosed therein, together with all
exhibits or schedules filed therewith.

“Applicable Letter of Credit Fee Rate” means, at any time, the per annum rate at which letter
of credit fees are accruing on the Letters of Credit at such time as set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	A- or below	 
	 	 	 	 	 	 	 	 	 	 	Financial	 
	 	 	 	 	 	 	 	 	 	 	Strength	 
	 	 	A+	 	 	A	 	 	Rating of	 
	 	 	Financial	 	 	Financial	 	 	Navigators or	 
	 	 	Strength	 	 	Strength	 	 	no Financial	 
	Applicable Letter	 	Rating of	 	 	Rating of	 	 	Strength	 
	of Credit Fee Rate	 	Navigators	 	 	Navigators	 	 	Rating	 
	Primary FAL ≥ 25%
	 	 	1.15	%	 	 	1.35	%	 	 	1.60	%
	but less than 50%
	 	 	 	 	 	 	 	 	 	 	 	 
	Primary FAL ≥ 50%
	 	 	0.95	%	 	 	1.15	%	 	 	1.40	%

 

2

 

The Primary FAL level on any date shall be based on the most recently delivered Compliance
Certificate delivered pursuant to Section 6.1(g). The Financial Strength Rating on any day
shall be based on Navigator’s then-current A.M. Best Rating and S&P Rating; provided that if the
A.M. Best Rating and the S&P Rating are not the same, the better Rating shall apply except that if
the Ratings differ by more than one level than the level above the lower Rating shall apply. The
Rating in effect on any date for the purposes of this Schedule is that in effect at the close of
business on such date. If at any time Navigators has only an A.M. Best Rating or a S&P Rating, the
Letter of Credit Fee Rate shall be determined based on the current A.M. Best Rating or S&P Rating,
as the case may be. The Applicable Letter of Credit Fee Rate as of the date of Closing is 1.35%.

Notwithstanding the foregoing, (i) in the event the Borrower has posted Collateral (other than
Collateral which has been posted pursuant to Section 2.9, the Applicable Letter of Credit
Fee Rate shall be (x) with respect to an amount of the outstanding Letters of Credit supported by
Cash Collateral Investments, 0.50%, and (y) with respect to the remaining amount of outstanding
Letters of Credit, the rate then in effect pursuant to the table above, (ii) in the event the
Borrower has posted Collateral pursuant to Sections 2.9(c), (d), (e) or
(f), the Applicable Letter of Credit Fee Rate shall be (x) with respect to an amount of the
outstanding Letters of Credit supported by Cash Collateral Investments, 0.70%, and (y) with respect
to the remaining amount of outstanding Letters of Credit, the rate then in effect pursuant to the
table above, and (iii) in the event that an Event of Default has occurred and is continuing, the
Applicable Letter of Credit Fee shall be the Default Rate.

“Applicable Percentage” means with respect to any Lender at any time, the percentage (carried
out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to issue Letters of Credit have been
terminated pursuant to Section 8.1 or if the Aggregate Commitments have expired, then the
Applicable Percentage of each Lender shall be determined based on the percentage such Lender’s
Letter of Credit Obligations are of all Letter of Credit Obligations. The initial Applicable
Percentage of each Lender is set forth opposite the name of such Lender on Schedule 1 or in
the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.
The Applicable Percentage “of” a particular amount may also refer to the value obtained by
multiplying the Applicable Percentage times such amount.

“Applicable Unused Fee Rate” means 0.375%.

“Approved Reinsurer” means a reinsurer which satisfies the criteria set forth in the
Reinsurance Guidelines for entering into reinsurance or retrocession agreements with the Borrower.

“Arranger” means ING Bank N.V., London Branch and its successors.

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

 

3

 

“Asset Disposition” means any sale, transfer or other disposition of any asset of the Borrower
or any Subsidiary in a single transaction or in a series of related transactions (other than the
sale of Investments (other than stock in Subsidiaries) in the ordinary course).

“Authorized Officer” means any of the president, chief financial officer or treasurer of the
Borrower, acting singly.

“Bankruptcy Code” means Title 11, United States Code, sections 1 et seq., as
the same may be amended from time to time and any successor thereto or replacement therefor which
may be hereafter enacted.

“Borrower” means The Navigators Group, Inc., a Delaware corporation and its successors and
assigns.

“Borrowing Base” means on any date of determination, an amount equal to the sum of the
Adjusted Fair Market Value of all Cash Collateral Investments.

“Borrowing Base Certificate” means a certificate substantially in the form of Exhibit D
with such changes therein as the Administrative Agent may reasonably request from time to time.

“Business Day” means a day (other than a Saturday or Sunday) on which banks generally are open
in New York and London for the conduct of substantially all of their commercial lending activities.

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

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

“Cash Collateral Investments” means (a) short-term obligations of, or fully guaranteed by, the
United States of America, (b) commercial paper rated A-1 or better by S&P or P1 or better by
Moody’s, (c) cash and (d) certificates of deposit issued by and time deposits with commercial banks
organized in a country which is a member of the Organization of Economic Co-operation and
Development having a rating of AA- or better from S&P or Aa3 or better from Moody’s;
provided in each case that (i) the same provides for payment of both principal and interest
(and not principal alone or interest alone) and is not subject to any contingency regarding the
payment of principal or interest and has a maturity of not more than two years and (ii) such
investments are denominated in Dollars or Pounds.

“Cash Equivalent Investments” means (a) short-term obligations of, or fully guaranteed by, the
United States of America, b) commercial paper rated A-1 or better by S&P or P1 or better by
Moody’s, (c) demand deposit accounts maintained in the ordinary course of business and (d)
certificates of deposit issued by and time deposits with commercial banks (whether domestic or
foreign) having capital and surplus in excess of $500,000,000; provided in each case that
the
same provides for payment of both principal and interest (and not principal alone or interest
alone) and is not subject to any contingency regarding the payment of principal or interest.

 

4

 

“Change” is defined in Section 3.2.

“Change in Control” means (a) the acquisition by any Person, or two or more Persons acting in
concert of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934) of (i) 20% or more of the outstanding shares
of voting stock of the Borrower or (ii), if less, a percentage of such stock, greater than the
percentage owned by members of the Terence Deeks Family, or (b) the members of the Terence Deeks
Family shall cease to own, in the aggregate, free and clear of all Liens and other encumbrances, at
least 10% of the outstanding shares of voting stock of the Borrower on a fully diluted basis.

“Closing Date” means March 28, 2011.

“Code” means the Internal Revenue Code of 1986, as amended or otherwise modified from time to
time, and the Treasury Regulations promulgated thereunder.

“Collateral” means any property or asset in which the Borrower has granted a security interest
to the Administrative Agent or the Security Trustee for the benefit of the Secured Parties.

“Collateral Account” means each of (a) the UK Collateral Account, (b) account number 6255582
titled “ Navigators Group — Securities” and account number 6255590 titled
“ Navigators Group — Cash”, in each cash held at Brown Brothers & Harriman & Co.
and (c) any other “demand deposit account” or “securities account” (as such terms are defined
in the UCC) maintained by the Administrative Agent or any Financial Intermediary which is subject
to a Control Agreement into which Cash Collateral Investments are deposited from time to time
pursuant to the terms of this Agreement. Each Collateral Account and the related Cash Collateral
Investments shall be subject to documentation satisfactory to the Administrative Agent and the
taking of all steps required to give the Administrative Agent a perfected security interest in the
Cash Collateral Investments. Once opened a Collateral Account can only be closed with the consent
of the Administrative Agent.

“Collateralization Event” means the occurrence of any of (a) an Event of Default or (b) any of
the events set forth in Sections 2.9(c) through (f).

“Collateral Excess” is defined in Section 2.10.

“Collateral Shortfall” is defined in Section 2.10.

“Collateral Value” means, on any date, an amount equal to the sum of the Adjusted Fair Market
Value of all Cash Collateral Investments in all Collateral Accounts.

“Commitment” means, for each Lender, the amount set forth on Schedule 1 or as set
forth in any Notice of Assignment relating to any assignment that has become effective pursuant to
Section 12.3(b), as such amount may be modified from time to time pursuant to the terms
hereof.

 

5

 

“Condemnation” is defined in Section 7.8.

“Consolidated” or “consolidated”, when used in connection with any calculation, means a
calculation to be determined on a consolidated basis for the Borrower and its Consolidated
Subsidiaries in accordance with Agreement Accounting Principles.

“Consolidated Net Income” means, for any period, the net income (or loss) of the Borrower and
its Consolidated Subsidiaries calculated on a consolidated basis for such period, all as determined
in accordance with Agreement Accounting Principles.

“Consolidated Net Worth” means, for any period, the sum of the consolidated stockholders’
equity of the Borrower and its Consolidated Subsidiaries calculated on a consolidated basis for
such period, all as determined in accordance with Agreement Accounting Principles (excluding the
effect of any unrealized gain or loss reported under Statement of Financial Accounting Standards
No. 115.

“Consolidated Person” means, for the taxable year of reference, each Person which is a member
of the affiliated group of the Borrower if Consolidated returns are or shall be filed for such
affiliated group for federal income tax purposes or any combined or unitary group of which the
Borrower is a member for state income tax purposes.

“Consolidated Subsidiaries” means all Subsidiaries of the Borrower which should be included in
the Borrower’s consolidated financial statements, all as determined in accordance with Agreement
Accounting Principles.

“Consolidated Tangible Net Worth means Consolidated Net Worth minus Consolidated Total
Intangible Assets.

“Consolidated Total Assets” means, at any time, the total assets of the Borrower and its
Consolidated Subsidiaries calculated on a consolidated basis as of such time, all as determined in
accordance with Agreement Accounting Principles.

“Consolidated Total Intangible Assets” means, at any time, the total intangible assets of the
Borrower and its Consolidated Subsidiaries calculated on a consolidated basis as of such time
including, but not limited to, goodwill, patents, trademarks, tradenames, copyrights and franchises
and excluding deferred policy acquisition costs.

“Contingent Obligation” of a Person means any agreement, undertaking or arrangement by which
such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for the
payment of, or otherwise becomes or is contingently liable upon, the obligation or liability of any
other Person, or agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person against loss,
including, without limitation, any comfort letter, operating agreement, take-or-pay contract or the
obligations of any such Person as general partner of a partnership with respect to the liabilities
of the partnership. The term “Contingent Obligation” shall not include (a) the obligations of any
Insurance Subsidiary arising under any insurance policy or reinsurance agreement entered into in
the ordinary course of business or (b) operating leases.

 

6

 

“Control Agreement” means any agreement (in form and substance acceptable to the
Administrative Agent) among the Borrower, the applicable Financial Institution and the
Administrative Agent with respect to any “deposit account” or “securities account” (as such terms
are defined in the UCC) of the Borrower pursuant to which the Administrative Agent has “control”
(as such term is defined in the UCC).

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

“Conversion Differential” is defined in Section 2.9(b).

“Conversion Rate” means the spot rate of exchange between Dollars and Pounds as determined by
the Administrative Agent on the Reuters WRLD Page as of the time of determination on such date. In
the event that such rate does not appear on any Reuters WRLD Page, the exchange rate shall be
determined by reference to such other publicly available service for displaying exchange rates as
may be agreed upon by the Administrative Agent and the Borrower, or, in the absence of such an
agreement, such exchange rate shall instead be the arithmetic average of the spot rates of exchange
of the Administrative Agent in London at or about such time between Dollars and Pounds for delivery
two Business Days later; provided that if at the time of any such determination, for any
reason, no such spot rate is being quoted, the Administrative Agent may use any reasonable method
it deems appropriate to determine such rate and such determination shall be presumed correct absent
manifest error

“Corporate Members” means MUL and NCUL.

“Default” means an event described in Article VII.

“Defaulting Lender” means any Lender that (i) has not funded such Lender’s Applicable
Percentage of the amount of any draw under a Letter of Credit within three (3) Business Days after
the date due therefor in accordance with Section 2.4(b), (ii) has notified the Borrower or
the Administrative Agent that it does not intend to comply with its obligations under Section
2.4(b) or (iii) is the subject of a bankruptcy, insolvency or similar receivership proceeding.

“Default Rate” means as of any day (a) with respect to fees payable under Section 2.8,
an amount equal to the Applicable Letter of Credit Rate or the Applicable Unused Fee Rate, as the
case may be, plus 2%, (b) with respect to Reimbursement Obligations and all other Obligations, an
amount equal to the Eurodollar Rate plus 2%.

“Department” is defined in Section 5.5.

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

“Drawing Request” is defined in Section 2.4(a).

 

7

 

“Environmental Laws” means any and all federal, state, local and foreign statutes, laws,
judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions,
permits, concessions, grants, franchises, licenses, agreements and other governmental
restrictions relating to (a) the protection of the environment, (b) the effect of the environment
on human health, (c) emissions, discharges or releases of pollutants, contaminants, hazardous
substances or wastes into surface water, ground water or land or (d) the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants,
hazardous substances or wastes or the clean-up or other remediation thereof.

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

“Eurodollar Rate” means the applicable British Bankers’ Association LIBOR rate for deposits in
U.S. dollars having a maturity of a one month period, as reported by any generally recognized
financial information service as of 11:00 A.M. (London time) two Business Days prior to the first
day of such applicable period; provided that if no such British Bankers’ Association LIBOR
rate is available to the Administrative Agent, the Eurodollar Rate shall instead be the rate
determined by the Administrative Agent to be the rate at which ING Bank N.V., London Branch or one
of its Affiliate banks offers to place deposits in U.S. dollars with first class banks in the
London interbank market, in the approximate amount of the related Letter of Credit and having a
maturity of one month.

“Excluded Taxes” means, in the case of each Lender or applicable Lending Installation, the
Administrative Agent or any other recipient of any payment to be made by or on account of any
obligation of a Borrower hereunder, (a) income, franchise or similar taxes imposed on (or measured
by) its overall net income by (i) the United States of America, or (ii) the jurisdiction (or any
political subdivision thereof) under the laws of which such Lender or the Administrative Agent or
other recipient is incorporated or organized, or (iii) the jurisdiction (or any political
subdivision thereof) in which the Administrative Agent’s or such Lender’s or such other recipient’s
principal executive office or, in the case of any Lender, in which such Lender’s applicable Lending
Installation, is located, or, in the case of a jurisdiction (or any political subdivision thereof)
that imposes taxes on the basis of management or control or other concept or principle of
residence, the jurisdiction (or any political subdivision thereof) in which such Lender or the
Administrative Agent or other recipient is so resident, (b) taxes imposed by reason of any present
or former connection between such recipient and the jurisdiction (or any political subdivision
thereof) imposing such taxes, other than solely as a result of the execution and delivery of this
Agreement or the performance of any action provided for hereunder, (c) any branch profits taxes
imposed by the United States of America, (d) any backup withholding tax imposed by the United
States of America or any similar taxes imposed by any other jurisdiction (other than backup
withholding tax imposed on the Administrative Agent in such capacity), (e) in the case of a
Non-U.S. Lender, any U.S. Federal withholding taxes (i) resulting from any law in effect on the
date such Non-U.S. Lender becomes a party to this Agreement (or designates a new Lending
Installation), except to the extent that such Non-U.S. Lender was entitled, at the time of
designation of a new Lending Installation, to receive additional amounts from such Borrower with
respect to such withholding tax pursuant to Section 3.3(a), or (ii) attributable to such Non-U.S.
Lender’s failure to comply with Section 3.3(d) (including as a result of any inaccurate or
incomplete documentation), and (f) any taxes imposed on any “withholdable payment” payable to a
Non-U.S. Lender as a result of its failure to comply with the applicable requirements of FATCA.

 

8

 

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

“Existing Credit Agreement” means the Fifth Amended and Restated Credit Agreement, dated as of
April 1, 2010, among the Borrower, certain financial institutions, including the Lenders and
JPMorgan Chase Bank, N.A., as Administrative Agent, as amended through the Closing Date.

“Existing Credit Agreement Lien” has the meaning assigned thereto in the Security Agreement.

“Existing Lines of Business” is defined in Section 5.23.

“Expiry Notice” means written notice from the Letter of Credit Agent to the beneficiary of any
Letter of Credit stating that such Letter of Credit shall expire four (4) years from the date of
such notice.

“Facility Documents” means this Agreement, the Security Documents, the Control Agreements, the
Reimbursement Agreements and the other documents and agreements contemplated hereby and executed by
the Borrower in favor of the Administrative Agent or any Lender.

“Fair Market Value” means (a) with respect to any Cash Collateral Investments described in
clauses (a) or (b) of the definition thereof, the closing price for such security
on Bloomberg, Inc. or, if Bloomberg, Inc. is not available, another quotation service reasonably
acceptable to the Administrative Agent, and (b) with respect to any Cash Collateral Investments
described in clauses (c) or (d) of the definition thereof, the amounts thereof.
Fair Market Value of non-Dollar denominated Cash Collateral Investments shall be determined in
accordance with Section 2.2(d).

“FATCA” means Sections 1471 through 1474 of the Code and any official governmental
interpretations thereof.

“Fee Letter” is defined in Section 9.4.

“Financial Institution” means the Securities Intermediary or Account Bank, as applicable, with
respect to any Collateral Account.

“Fiscal Quarter” means one of the four three-month accounting periods comprising a Fiscal
Year.

“Fiscal Year” means the twelve-month accounting period commencing on January 1 and ending
December 31 of each year.

“Fixed Charge” means (a) a Deed of Charge substantially in the form of Exhibit F with
such changes therein as may be agreed to by the Administrative Agent and the Borrower and (b) any
other debenture, deed or charge or other document which the Administrative Agent and the Borrower
may enter into with respect to Collateral located in the United Kingdom.

 

9

 

“Governmental Authority” means any government (foreign or domestic) or any state or other
political subdivision thereof or any governmental body, agency, authority, department or commission
(including without limitation any taxing authority or political subdivision) or any instrumentality
or officer thereof (including without limitation any court or tribunal and any board of insurance,
insurance department or insurance commissioner) exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government and any corporation,
partnership or other entity directly or indirectly owned or controlled by or subject to the control
of any of the foregoing.

“Honor Date” is defined in Section 2.4(a).

“Indebtedness” of a Person means such Person’s (a) obligations for borrowed money, (b)
obligations representing the deferred purchase price of Property or services (other than accounts
payable arising in the ordinary course of such Person’s business payable on terms customary in the
trade), (c) obligations, whether or not assumed, secured by Liens or payable out of the proceeds or
production from Property now or hereafter owned or acquired by such Person, (d) obligations which
are evidenced by notes, acceptances, or other instruments, (e) obligations of such Person to
purchase securities or other Property arising out of or in connection with the sale of the same or
substantially similar securities or Property, (f) Capitalized Lease Obligations, (g) Contingent
Obligations, (h) actual and contingent reimbursement obligations in respect of letters of credit,
(i) any other obligation for borrowed money or other financial accommodation which in accordance
with Agreement Accounting Principles would be shown as a liability on the consolidated balance
sheet of such Person, (j) any liability under any financing lease or so-called “synthetic lease”
transaction entered into by such Person and (k) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of borrowing but which does
not constitute a liability on the consolidated balance sheet of such Person.

“Insurance Subsidiary” means each of Navigators, NSIC and any other United States domestic
Subsidiary acquired or formed after the Closing Date which is an insurer or is authorized to act as
an insurer. For the avoidance of doubt, Navigators Management Company, Inc. is not an Insurance
Subsidiary.

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

“Issuance Request” is defined in Section 2.5.

“Issue Date” means a date on which a Letter of Credit is issued hereunder.

 

10

 

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

“Lending Installation” means, with respect to a Lender or the Administrative Agent, the
office, branch, subsidiary or affiliate of such Lender or the Administrative Agent listed on the
signature pages hereof or on a Schedule or otherwise selected by such Lender or the Administrative
Agent.

“Letter of Credit” means a letter of credit issued pursuant to Article II. Each
Letter of Credit shall be substantially in the form of Exhibit G.

“Letter of Credit Agent” means ING Bank N.V. located at 60 London Wall, London EC2M 5TQ, as
Letter of Credit Agent for the Lenders, together with any replacement Letter of Credit Agent
arising under Article X.

“Letter of Credit Advance Date” is defined in Section 2.4(a).

“Letter of Credit Availability Termination Date” means December 31, 2011 or any earlier date
on which the Aggregate Commitment is reduced to zero or otherwise terminated pursuant to the terms
hereof.

“Letter of Credit Fee” is defined in Section 2.8(b).

“Letter of Credit Obligations” means, at the time of determination thereof, the sum of (a) the
Reimbursement Obligations then outstanding and (b) the aggregate then undrawn face amount of the
then outstanding Letters of Credit.

“Leverage Ratio” means, at any time, the ratio of (a) the consolidated Indebtedness of the
Borrower and its Consolidated Subsidiaries (excluding any letter of credit obligations incurred by
the Borrower and its Consolidated Subsidiaries in the ordinary course of business prior to any
drawing under such a letter of credit but including any letter of credit obligations after any
drawing) at such time to (b) the sum of (i) the consolidated Indebtedness of the Borrower and its
Consolidated Subsidiaries (excluding any letter of credit obligations incurred by the Borrower and
its Consolidated Subsidiaries in the ordinary course of business) plus (ii) Consolidated
Net Worth at such time.

“License” means any license, certificate of authority, permit or other authorization which is
required to be obtained from any Governmental Authority in connection with the operation, ownership
or transaction of insurance business.

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

“Lloyd’s” means The Society and Council of Lloyd’s.

 

11

 

“Lloyd’s Approved Bank” means any bank approved by Lloyd’s to provide Funds at Lloyd’s letters
of credit.

“Lloyd’s Comfort Letter” means a document substantially in the form of Exhibit H.

“Lloyd’s Substitution Letter” means that certain letter from Lloyd’s, dated on or about the
Closing Date, regarding the substitution of letters of credit issued under the Existing Credit
Agreement with Letters of Credit to be issued under this Agreement.

“Loss Reserves” means, with respect to any Insurance Subsidiary at any time, the sum of (a)
all losses, including incurred losses of such Insurance Subsidiary at such time shown on page 3,
line 1 of the Annual Statement of such Insurance Subsidiary plus (b) all loss adjustment
expenses of such Insurance Subsidiary at such time shown on page 3, line 3 of the Annual Statement
of such Insurance Subsidiary, as determined in accordance with SAP.

“Managing Agent” means Navigators Underwriting Agency Limited, a company organized under the
laws of England and Wales.

“Margin Stock” has the meaning assigned to that term under Regulation U.

“Material Adverse Effect” means a material adverse effect on (a) the business, Property,
condition (financial or otherwise) or results of operations of any of (i) the Borrower or (ii) the
Subsidiaries taken as a whole, (b) the ability of the Borrower to perform its obligations under the
Facility Documents, or (c) the validity or enforceability of any of the Facility Documents or the
rights or remedies of the Administrative Agent or the Lenders thereunder.

“Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.

“MUL” means Millennium Underwriting Limited, which entity is a corporate name with limited
liability at Lloyd’s of London.

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

“NAIC” means the National Association of Insurance Commissioners or any successor thereto, or
in lieu thereof, any other association, agency or other organization performing advisory,
coordination or other like functions among insurance departments, insurance commissioners and
similar Governmental Authorities of the various states of the United States toward the promotion of
uniformity in the practices of such Governmental Authorities.

“Navigators” means Navigators Insurance Company, a New York corporation.

“NCUL” means Navigators Corporate Underwriters Limited, which entity is a corporate name with
limited liability at Lloyd’s of London.

 

12

 

“Net Available Proceeds” means (a) with respect to any Asset Disposition, the sum of cash or
readily marketable cash equivalents received (including by way of a cash generating sale
or discounting of a note or account receivable) therefrom, whether at the time of such
disposition or subsequent thereto, or (b) with respect to any sale or issuance of any debt or
equity securities of the Borrower or any Subsidiary, cash or readily marketable cash equivalents
received therefrom, whether at the time of such disposition or subsequent thereto, net, in either
case, of all legal, title and recording tax expenses, commissions and other fees and all costs and
expenses incurred and, in the case of an Asset Disposition, net of all payments made by the
Borrower or any of its Subsidiaries on any Indebtedness which is secured by such assets pursuant to
a permitted Lien upon or with respect to such assets or which must, by the terms of such Lien, in
order to obtain a necessary consent to such Asset Disposition, or by applicable law, be repaid out
of the proceeds from such Asset Disposition.

“NFS Deficiency” is defined in Section 2.9(e).

“Non-U.S. Lender” is defined in Section 3.3(d).

“Notice of Assignment” is defined in Section 12.3(b).

“NSIC” means Navigators Specialty Insurance Company, a New York corporation.

“Obligations” means the Letter of Credit Obligations and all other liabilities (if any),
whether actual or contingent, of the Borrower with respect to Letters of Credit, all accrued and
unpaid fees and all expenses, reimbursements, indemnities and other obligations of the Borrower to
the Lenders or to any Lender, the Administrative Agent or any indemnified party hereunder arising
under any of the Facility Documents.

“Other Taxes” is defined in Section 3.3(b).

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

“Payment Date” means the first day of each April, July, October and January.

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

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

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

“Pounds” and the sign “£” mean lawful money of the United Kingdom.

“Primary FAL” means funds at Lloyd’s in the form of (i) cash and/or investment assets held
directly at Lloyd’s and/or (ii) collateralised letters of credit (other than Letters of Credit
issued under this Agreement), which will be immediately available to cover losses in the Supported
Syndicate and which will be utilised ahead of the Letters of Credit issued hereunder in the event
that the Lloyd’s is required to draw on the funds at Lloyd’s of the Supported Syndicate.

 

13

 

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

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

“RDS” means realistic disaster scenarios as such term is used by Lloyd’s and in respect of
which, pursuant to Lloyd’s rules, the Managing Agent is obligated to prepare and submit to Lloyd’s
a report.

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

“Regulation T” means Regulation T of the Board of Governors of the Federal Reserve System as
from time to time in effect and shall include any successor thereto or other regulation or official
interpretation of such Board of Governors relating to the extension of credit by securities brokers
and dealers for the purpose of purchasing or carrying margin stocks applicable to such Persons.

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

“Regulation X” means Regulation X of the Board of Governors of the Federal Reserve Systems
from time to time in effect and shall include any successor thereto or other regulation or official
interpretation of said Board of Governors relating to the extension of credit by the specified
lenders for the purpose of purchasing or carrying margin stocks applicable to such Persons.

“Reimbursement Agreement” means a letter of credit application and reimbursement agreement in
such form as the Letter of Credit Agent may from time to time employ in the ordinary course of
business.

“Reimbursement Obligations” means, at any time, the aggregate (without duplication) of the
Obligations of the Borrower to the Lenders and/or the Administrative Agent in respect of all
unreimbursed payments or disbursements made by the Lenders and/or the Administrative Agent under or
in respect of draws made under the Letters of Credit.

“Reinsurance Guidelines” is defined in Section 6.21(c).

“Release” is defined in the Comprehensive Environmental Response, Compensation and Liability
Act, as amended, 42 U.S.C. 39601 et seq.

 

14

 

“Reportable Event” means a reportable event as defined in Section 4043 of ERISA and the
regulations issued under such section, with respect to a Plan, excluding, however, such events
as to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that
it be notified within 30 days of the occurrence of such event; provided, however,
that a failure to meet the minimum funding standard of Section 412 of the Code and of Section 302
of ERISA shall be a Reportable Event regardless of the issuance of any such waiver of the notice
requirement in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

“Required Amount” means the aggregate amount required to be deposited and held in Collateral
Accounts pursuant to Sections 2.9 and 8.1 hereof.

“Required Lenders” means Lenders in the aggregate having at least 662/3% of the Aggregate
Commitment or, if the Aggregate Commitment has been terminated, the aggregate amount of the
outstanding Letter of Credit Obligations; provided, however, the Commitment or
outstanding Letter of Credit Obligations of any Defaulting Lender shall be deemed to be zero.

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

“S&P Rating” means, as to any insurance company, its financial strength rating assigned by
S&P.

“SAP” means, with respect to any Insurance Subsidiary, the statutory accounting practices
prescribed or permitted by the insurance commissioner (or other similar authority) in the
jurisdiction of such Person for the preparation of annual statements and other financial reports by
insurance companies of the same type as such Person in effect from time to time, applied in a
manner consistent with those used in preparing the Statutory Financial Statements referred to in
Section 5.5.

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

“SEC Reports” means the reports filed by the Borrower with the Securities and Exchange
Commission on Form 8-K, Form 10-Q or Form 10-K.

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

“Secured Parties” means the Administrative Agent, the Letter of Credit Agent, the Security
Trustee under each Fixed Charge and the Lenders.

“Security Agreement” means (a) a security agreement substantially in the form of Exhibit
E with such changes therein as may be agreed to by the Administrative Agent and the Borrower
and (b) any other security agreement or other document which may be entered into by the
Administrative Agent and the Borrower with respect to the Collateral located in the United States.

“Security Documents” means each Security Agreement, each Control Agreement and each Fixed
Charge.

 

15

 

“Security Trustee” means ING Bank N.V., London Branch, as security trustee for the Secured
Parties and appointed under the Fixed Charges together with any successor appointed pursuant to the
terms thereof.

“Securities Intermediary” means any “securities intermediary” within the meaning of Section
8.102(a)(14) of the UCC at which any securities account constituting a Collateral Account is held,
which shall be (a) located in the United States and (b) reasonably acceptable to the Administrative
Agent.

“Significant Insurance Subsidiary” means a Significant Subsidiary which is an Insurance
Subsidiary. For the avoidance of doubt, Navigators Management Company, Inc. shall not be a
Significant Subsidiary.

“Significant Subsidiary” means, at any time, a direct United States domestic Subsidiary of the
Borrower the assets of which are greater than or equal to five percent (5%) of the Consolidated
Total Assets of the Borrower and its Consolidated Subsidiaries.

“Single Employer Plan” means a Plan maintained by the Borrower or any member of the Controlled
Group for employees of the Borrower or any member of the Controlled Group.

“Statutory Financial Statements” is defined in Section 5.5.

“Statutory Net Income” means, with respect to any Insurance Subsidiary for any computation
period, the net income earned by such Insurance Subsidiary during such period, as determined in
accordance with SAP (“Underwriting and Investment Exhibit, Statement of Income” statement, Page 4,
Line 20 of the Annual Statement).

“Statutory Surplus” means, with respect to any Insurance Subsidiary at any time, the statutory
capital and surplus of such Insurance Subsidiary at such time, as determined in accordance with SAP
(“Liabilities, Surplus and Other Funds” statement, page 3, line 35 of the Annual Statement).

“Subsidiary” of a Person means (a) any corporation more than 50% of the outstanding securities
having ordinary voting power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries or (b) any partnership, association, joint venture, limited liability company
or similar business organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled. Unless otherwise expressly provided,
all references herein to a “Subsidiary” shall mean a Subsidiary of the Borrower.

“Substantial Portion” means, with respect to the Property of the Borrower and its Consolidated
Subsidiaries, Property which (a) represents more than 10% of the Consolidated Total Assets of the
Borrower and its Consolidated Subsidiaries, as would be shown in the consolidated financial
statements of the Borrower and its Consolidated Subsidiaries as at the end of the quarter next
preceding the date on which such determination is made or (b) is responsible for more than 10% of
the consolidated net sales or of the Consolidated Net Income of the
Borrower and its Consolidated Subsidiaries for the 12-month period ending as of the end of the
quarter next preceding the date of determination.

 

16

 

“Supported Syndicate” means Lloyd’s Syndicate 1221 underwriting insurance business at Lloyd’s
through the Managing Agent..

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

“Terence Deeks Family” means, collectively, Terence N. Deeks; his spouse; any natural person
who is a lineal descendant of Terence N. Deeks; the spouse, children, or grandchildren of any such
natural person; any trust of which any of the foregoing is or are the sole beneficiary or
beneficiaries; or the estate, executor, administrator, or legal guardian of any of the foregoing.

“Termination Event” means, with respect to a Plan which is subject to Title IV of ERISA, (a) a
Reportable Event, (b) the withdrawal of the Borrower or any other member of the Controlled Group
from such Plan during a plan year in which the Borrower or any other member of the Controlled Group
was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or was deemed such under
Section 4068(f) of ERISA, (c) the termination of such Plan, the filing of a notice of intent to
terminate such Plan or the treatment of an amendment of such Plan as a termination under Section
4041 of ERISA, (d) the institution by the PBGC of proceedings to terminate such Plan or (e) any
event or condition which might constitute grounds under Section 4042 of ERISA for the termination
of, or appointment of a trustee to administer, such Plan.

“Transferee” is defined in Section 12.4.

“UCC” means the Uniform Commercial Code as in effect in the State of New York or the State of
Delaware, as applicable, from time to time.

“UK Collateral Account” means account no. 262537 and each other account held at ING Bank N.V.,
London Branch, and subject to a Fixed Charge.

“Unfunded Liabilities” means the amount (if any) by which the present value of all vested and
unvested accrued benefits under all Single Employer Plans exceeds the fair market value of all such
Plan assets allocable to such benefits, all determined as of the then most recent valuation date
for such Plans using PBGC actuarial assumptions for single employer plan terminations.

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

“Unreimbursed Amount” is defined in Section 2.4(a).

“Wholly-Owned Subsidiary” of a Person means (a) any Subsidiary all (or, in the case of
Navigators N.V., all but one) of the outstanding voting securities of which shall at the time be
owned or controlled, directly or indirectly, by such Person or one or more Wholly-Owned
Subsidiaries of such Person, or by such Person and one or more Wholly-Owned Subsidiaries of
such Person, or (b) any partnership, limited liability company, association, joint venture or
similar business organization 100% of the ownership interests having ordinary voting power of which
shall at the time be so owned or controlled.

 

17

 

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

ARTICLE II 

THE LETTER OF CREDIT FACILITY

2.1 Issuance of Letters of Credit. (a) From and after the date hereof to but
excluding the Letter of Credit Availability Termination Date, each Lender severally agrees, upon
the terms and conditions set forth in this Agreement, to issue at the request and for the account
of the Borrower, such Lender’s Applicable Percentage of, one or more Letters of Credit for the
account of the Borrower to support the obligations of Wholly-Owned Subsidiaries of the Borrower
with respect to the Supported Syndicate; provided, however, that no Lender shall be
under any obligation to issue, and the Letter of Credit Agent shall not issue, any Letter of Credit
if: (i) any order, judgment or decree of any governmental authority or other regulatory body with
jurisdiction over any Lender shall purport by its terms to enjoin or restrain any Lender from
issuing such Letter of Credit, or any law or governmental rule, regulation, policy, guideline or
directive (whether or not having the force of law) from any governmental authority or other
regulatory body with jurisdiction over any Lender prohibit, or request that any Lender refrain
from, the issuance of Letters of Credit in particular or shall impose upon any Lender with respect
to any Letter of Credit any restriction or reserve or capital requirement (for which such Lender is
not otherwise compensated) or any unreimbursed loss, cost or expense which was not applicable, in
effect and known to such Lender as of the date of this Agreement and which such Lender in good
faith deems material to it, (ii) one or more of the conditions to such issuance contained in
Section 4.2 is not then satisfied; (iii) after giving effect to such issuance, any Lender’s
aggregate outstanding amount of the Letter of Credit Obligations would exceed such Lender’s
Commitment; (iv) after giving effect to such issuance, the aggregate outstanding amount of the
Letter of Credit Obligations would exceed the Aggregate Commitment; or (v) there is a Defaulting
Lender. Letters of Credit shall be denominated, at the Borrower’s option, in either Dollars or
Pounds.

(b) In no event shall: (i) the aggregate amount of the Letter of Credit Obligations at
any time exceed the Aggregate Commitment or (ii) the expiration date of any Letter of Credit
or the date for payment of any draft presented thereunder and accepted by the Lender, be
later than the earlier of (A) December 31, 2015 or (B) four (4) years after the date of the
related Expiry Notice. The Letter of Credit Agent shall not issue a Letter of Credit except
with Lloyd’s as the beneficiary thereof. The Letter of Credit Agent shall not permit the
renewal or extension of any Letter of Credit at any time (A) during the continuation of a
Default or Unmatured Default or (B) after the Letter of Credit Availability Termination
Date.

 

18

 

(c) The Letter of Credit Agent (i) shall issue an Expiry Notice on the Letter of Credit
Availability Termination Date and (ii) may, and upon the request of the Required
Lenders shall, issue an Expiry Notice when a Default has occurred and is continuing;
provided, however, that upon the occurrence of an Unmatured Default pursuant
to Sections 7.6 and 7.7, the Letter of Credit Agent shall immediately issue
an Expiry Notice.

(d) At the request of the Borrower, Letters of Credit may be issued with any
Wholly-Owned Subsidiary of the Borrower as a co-applicant, so long as the Borrower is also a
co-applicant under the applicable Reimbursement Agreement. The fact that such Subsidiary is
an applicant shall not affect the obligations of the Borrower with respect to such Letters
of Credit hereunder or under any Facility Document in any way. Any Reimbursement Agreement
for a Letter of Credit with respect to which such Subsidiary is a co-applicant shall include
language substantially similar to that set forth in Exhibit C or otherwise
acceptable to the Letter of Credit Agent.

(e) Each Lender’s obligation to pay its Applicable Percentage of all draws under the
Letters of Credit, absent gross negligence or willful misconduct by Letter of Credit Agent
in honoring any such draw, shall be absolute, unconditional and irrevocable and in each case
shall be made without counterclaim or set-off by such Lender.

2.2 Conversion Principles. Determination of the Dollar amount of any Letter of
Credit, Obligation or Cash Collateral Investment denominated in a currency other than Dollars shall
be made as follows:

(a) For purposes of usage and availability under Section 2.1, when a Letter of
Credit is issued in Pounds, such Pounds will be converted to Dollars by the Administrative
Agent upon issuance, upon the proposed issuance of any other Letter of Credit and at the end
of each calendar quarter and at any time thereafter as requested by the Administrative Agent
or any Lender at the Conversion Rate as of such date of determination.

(b) For purposes of determining interest and fees on Letter of Credit Obligations and
other Obligations, any such Obligations which are denominated in Pounds will be converted to
Dollars and such determination shall be made by the Administrative Agent based upon the
Conversion Rate as of such date of determination.

(c) For purposes of determining the Collateral Value as of any date, Fair Market Value
on any date, Cash Collateral Investments and Letter of Credit Obligations denominated in
Pounds will be converted to Dollars at the Conversion Rate as of the date of determination
(and in the event of a disagreement as to such Fair Market Value between the Borrower and
the Administrative Agent, the determination of the Administrative Agent shall control).

2.3 Reductions in Aggregate Commitment. (a) The Borrower may permanently reduce the
Aggregate Commitment in whole, or in part ratably among the Lenders in integral multiples of
$5,000,000, upon at least five (5) Business Days’ written notice to the Administrative Agent, which
notice shall specify the amount of such reduction; provided, however, that the
amount of the Aggregate Commitment may not be reduced below the aggregate amount of the outstanding
Letter of Credit Obligations.

 

19

 

2.4 Reimbursement Obligations. (a) Upon receipt from the beneficiary of any Letter of
Credit or any notice of a drawing under such Letter of Credit (a “Drawing Request”), the
Letter of Credit Agent shall notify the Administrative Agent and the Borrower of the receipt of
such Drawing Request and of the date the Letter of Credit Agent will honor such request (each such
date, an “Honor Date”). Not later than 10:00 a.m. (London time) on such Honor Date or the
following Business Day in the event that the Borrower shall not have received at least twenty-four
hours notice of such Honor Date, the Borrower shall provide the Letter of Credit Agent the amount
of the Drawing Request in the currency in which the applicable Letter of Credit was issued. Any
notice given by the Letter of Credit Agent or the Administrative Agent pursuant to this Section
2.4(a) 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.

(b) (i) With respect to any Drawing Request, if funds are not received by the Letter of
Credit Agent from the Borrower prior to 11:00 a.m. (London time) on the Honor Date or the
following Business Day in the event that the Borrower shall not have received at least
twenty-four hours notice of such Honor Date in the amount and currency of such Drawing
Request, the Administrative Agent shall promptly notify each Lender of such Drawing Request,
the amount of the unreimbursed drawing (the “Unreimbursed Amount”) and such Lender’s
Applicable Percentage of such Unreimbursed Amount. Each Lender shall make funds available
in the applicable currency to the Letter of Credit Agent in an amount equal to its
Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. (London time) on
the Business Day specified in such notice by the Administrative Agent (the “Letter of
Credit Advance Date”). To the extent that funds are received by the Letter of Credit
Agent from the Lenders prior to 2:00 p.m. (London time) on the Letter of Credit Advance
Date, the Letter of Credit Agent shall promptly make such funds available to the beneficiary
of such Letter of Credit on such date. To the extent that the Letter of Credit Agent has
not delivered funds to any beneficiary of a Letter of Credit on behalf of a Lender on the
Letter of Credit Advance Date, if funds are received by the Letter of Credit Agent from such
Lender: (i) after 2:00 p.m. (London time) on the Letter of Credit Advance Date, the Letter
of Credit Agent shall make such funds available to such beneficiary on the next Business
Day; (ii) prior to 2:00 p.m. (London time) on any Business Day after the Letter of Credit
Advance Date, the Letter of Credit Agent shall make those funds available to such
beneficiary on such Business Day; and (iii) after 2:00 p.m. (London time) on any Business
Day after the Letter of Credit Advance Date, the Letter of Credit Agent shall make those
funds available to such beneficiary on the next Business Day following such Business Day.

(ii) Notwithstanding any provisions to the contrary in any Reimbursement
Agreement, the Borrower agrees to pay the Letter of Credit Agent for the benefit of
the Lenders no later than the time specified in this Agreement.

(iii) With respect to any Unreimbursed Amount, the Borrower shall have a
Reimbursement Obligation in the amount of the Unreimbursed Amount from the Lenders
to the extent that they have provided funds with respect to such Letter of Credit
pursuant to Section 2.4(b)(i). Reimbursement Obligations shall be due and
payable on demand (together with interest) and shall bear interest at
the Default Rate. Any payment by a Borrower in respect of such Reimbursement
Obligation shall be made to the Administrative Agent and upon receipt applied by the
Administrative Agent in accordance with Section 2.4(c).

 

20

 

(c) At any time after Letter of Credit Agent has made a payment under any Letter of
Credit and has received from any Lender such Lender’s Letter of Credit Advance in respect of
such payment in accordance with Section 2.4(b), if the Letter of Credit Agent or
Administrative Agent receives any payment in respect of the related Reimbursement Obligation
or interest thereon (whether directly from a Borrower or otherwise, including proceeds of
Collateral applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Applicable Percentage thereof in the same funds as those
received by the Letter of Credit Agent or the Administrative Agent, as the case may be.

(d) If any payment received by the Letter of Credit Agent or the Administrative Agent
pursuant to Section 2.4(b) (including any payment under Article XI) and such
payment or the proceeds of such setoff or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Letter of Credit Agent, the Administrative Agent or such
Lender in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any insolvency proceeding or otherwise, then (x) to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such
setoff had not occurred, and (y) each Lender shall pay to the Letter of Credit Agent or the
Administrative Agent, as applicable, its Applicable Percentage thereof on demand of the
Letter of Credit Agent or the Administrative Agent, as applicable, plus interest thereon
from the date of such demand to the date such amount is returned by such Lender, at a rate
per annum equal to the Eurodollar Rate from time to time in effect. The obligations of the
Lenders under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

2.5 Procedure for Issuance. (a) Prior to the issuance of each new Letter of Credit
and as a condition of such issuance, the Borrower shall deliver to the Letter of Credit Agent a
Reimbursement Agreement signed by the Borrower, together with such other documents or items as may
be required pursuant to the terms thereof, and the proposed form and content of such Letter of
Credit shall be reasonably satisfactory to the Letter of Credit Agent. Each Letter of Credit shall
be issued no earlier than two (2) Business Days after delivery of the foregoing documents, which
delivery may be by the Borrower to the Letter of Credit Agent by telecopy, telex or other
electronic means followed by delivery of executed originals within five (5) days thereafter. The
documents so delivered shall be in compliance with the requirements set forth in Section
2.1(b), and shall specify therein (a) the stated amount of the Letter of Credit requested, (b)
the effective date of issuance of such requested Letter of Credit, which shall be a Business Day,
(c) whether the Letter of Credit is to be denominated in Dollars or Pounds and (d) the aggregate
amount of Letter of Credit Obligations which are outstanding and which will be outstanding after
giving effect to the requested Letter of Credit issuance. The delivery of the foregoing documents
and information shall constitute an “Issuance Request” for purposes of this Agreement.
Subject to the terms and conditions of Section 2.1 and provided that the applicable
conditions set forth in Section 4.2 hereof have been satisfied, the Letter of Credit
Agent (on behalf of the Lenders) shall, on the requested date, issue a Letter of Credit on behalf
of the Borrower in accordance with the Letter of Credit Agent’s usual and customary business
practices. In addition, any amendment of an existing Letter of Credit shall be deemed to be an
issuance of a new Letter of Credit and shall be subject to the requirements set forth above. The
Administrative Agent shall give the Lenders prompt written notice of the issuance of any Letter of
Credit.

 

21

 

(b) The Letter of Credit Agent is hereby authorized to execute and deliver each Letter
of Credit and each amendment to a Letter of Credit on behalf of each Lender. The Letter of
Credit Agent shall use the Applicable Percentage of each Lender under each Letter of Credit
as its “Commitment”. The Letter of Credit Agent shall not amend any Letter of Credit to
change the “Commitment” of a Lender or add or delete a Lender liable thereunder unless such
amendment is done in connection with an assignment in accordance with Section 12.3.
Each Lender hereby irrevocably constitutes and appoints the Letter of Credit Agent its true
and lawful attorney-in-fact for and on behalf of such Lender with full power of substitution
and revocation in its own name or in the name of the Letter of Credit Agent to issue,
execute and deliver, as the case may be, each Letter of Credit and each amendment to a
Letter of Credit and to carry out the purposes of this Agreement with respect to Letters of
Credit. Upon request, each Lender shall execute such powers of attorney or other documents
as any beneficiary of any Letter of Credit may reasonably request to evidence the authority
of the Letter of Credit Agent to execute and deliver such Letter of Credit and any amendment
or other modification thereto on behalf of the Lenders.

(c) The Letter of Credit Agent shall act on behalf of the Lenders with respect to any
Letters of Credit and the documents associated therewith, and the Letter of Credit Agent
shall have all of the benefits and immunities (A) provided to the Administrative Agent in
Article X with respect to any acts taken or omissions suffered by the Letter of
Credit Agent in connection with Letters of Credit issued by it or proposed to be issued by
it and Issuer Documents pertaining to such Letters of Credit as fully as if the term
“Administrative Agent” as used in Article X includes the Letter of Credit Agent as
with respect to such acts or omissions, and (B) as additionally provided herein with respect
to the Letter of Credit Agent.

2.6 Nature of the Agent and Lenders’ Obligations. (a) Each Lender and the Borrower
agree that, in paying any drawing under a Letter of Credit, the Letter of Credit Agent 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. None of the Letter of Credit Agent, or any of its respective Affiliates shall be liable
to for (i) any action taken or omitted in connection herewith at the request or with the approval
of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the
absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness,
validity or enforceability of any document or instrument related to any Letter of Credit or Issuer
Document.

 

22

 

(b) As between the Borrower and the Lenders and the Letter of Credit Agent, the
Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit
by, the respective beneficiaries of the Letters of Credit; provided,
however, that the Borrower may have a claim against the Letter of Credit Agent and
the Letter of Credit Agent 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 willful misconduct or gross negligence
in determining whether documents presented under a Letter of Credit comply with the terms of
such Letter of Credit. In furtherance and not in limitation of the foregoing, neither the
Letter of Credit Agent nor the Lenders shall be responsible for: (i) the form, validity,
sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in
connection with the application for an issuance of a Letter of Credit, even if it should in
fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or
forged, (ii) 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, (iii) the failure of the beneficiary of a Letter of Credit to comply fully with
conditions required to be satisfied by any Person other than the Letter of Credit Agent in
order to draw upon such Letter of Credit, (iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, (v)
errors in the interpretation of technical terms, (vi) the misapplication by the beneficiary
of a Letter of Credit of the proceeds of any drawing under such Letter of Credit or (vii)
any consequences arising from causes beyond control of the Letter of Credit Agent or the
Lenders.

(c) In furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by the Letter of Credit Agent under or in
connection with the Letters of Credit or any related certificates, if taken or omitted in
good faith, shall not put the Letter of Credit Agent or any Lender under any resulting
liability to the Borrower or relieve the Borrower of any of its obligations hereunder to the
Lenders or any such Person.

(d) The Borrower agrees to pay to the Letter of Credit Agent for the benefit of the
Lenders the amount of all Reimbursement Obligations owing in respect of any Letter of Credit
immediately when due, under all circumstances, including, without limitation, any of the
following circumstances: (w) any lack of validity or enforceability of this Agreement or
any of the other Facility Documents, (x) the existence of any claim, set-off, defense or
other right which the Borrower or any account party may have at any time against a
beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any
Person for whom any such transferee may be acting), any Lender or any other Person, whether
in connection with this Agreement, any Letter of Credit, the transactions contemplated
herein or any unrelated transactions (including any underlying transaction between the
Borrower or any account party and the beneficiary named in any Letter of Credit), (y) the
validity, sufficiency or genuineness of any document which the Letter of Credit Agent has
determined in good faith complies on its face with the terms of the applicable Letter of
Credit, even if such document should later prove to have been forged, fraudulent, invalid or
insufficient in any respect or any statement therein shall have been
untrue or inaccurate in any respect or (z) the surrender or impairment of any security
for the performance or observance of any of the terms hereof.

 

23

 

2.7 Notification of Issuance Requests. Promptly after receipt thereof, the Letter of
Credit Agent will notify each Lender of the contents of each Issuance Request received by it
hereunder.

2.8 Fees.

(a) Unused Fee. The Borrower agrees to pay to the Administrative Agent for the
account of each Lender with respect to its Commitment an unused fee at a rate per annum
equal to the Applicable Unused Fee Rate on the daily unused portion of such Lender’s
Commitment from the Closing Date to and including the Letter of Credit Availability
Termination Date, calculated with respect to actual days elapsed on the basis of a 360-day
year and payable in Dollars on each Payment Date hereafter and on the Letter of Credit
Availability Termination Date or, if later, upon receipt of a bill from the Administrative
Agent. During the continuance of a Default, the Required Lenders may, at their option, by
notice to the Borrower, declare that the Applicable Letter of Credit Fee Rate shall accrue
at the Default Rate; provided, that during the continuance of a Default under
Section 7.6 or 7.7, the Applicable Letter of Credit Fee Rate shall accrue at
the Default Rate without any election or action on the part of the Administrative Agent or
any Lender.

(b) Letter of Credit Fee. The Borrower agrees to pay to the Administrative
Agent for the pro-rata account of the Lenders in Dollars a Letter of Credit Fee with respect
to each Letter of Credit from and including the date of issuance thereof until the date such
Letter of Credit is fully drawn, canceled or expired, in an amount equal to the Applicable
Letter of Credit Fee Rate on the aggregate amount from time to time available to be drawn on
such Letter of Credit, calculated with respect to actual days elapsed on the basis of a
360-day year and payable quarterly in arrears on each Payment Date in each year and upon the
expiration, cancellation or utilization in full of such Letter of Credit. During the
continuance of a Default, the Required Lenders may, at their option, by notice to the
Borrower, declare that the Applicable Letter of Credit Fee Rate shall accrue at the Default
Rate; provided, that during the continuance of a Default under Section 7.6
or 7.7, the Applicable Letter of Credit Fee Rate shall accrue at the Default Rate
without any election or action on the part of the Administrative Agent or any Lender.

(c) Defaulting Lender. If at any time a Lender is a Defaulting Lender,
then, to the extent permitted by applicable law (and notwithstanding any other provision
of this Agreement), (i) any payment of Reimbursement Obligations with respect to Letters of
Credit (including through sharing of payments pursuant to Section 10.2, but
excluding any payment pursuant to Section 2.3(b)) shall, if the Borrower so directs
at the time of making such payment, be applied first to amounts owed to Lenders other than
such Defaulting Lender, as if the amount owed to such Defaulting Lender hereunder in respect
of Reimbursement Obligations were zero, and then to amounts owed to such Defaulting Lender;
(ii) such Defaulting Lender’s Applicable Percentage of the

 

24

 

Letter of Credit Obligations
shall be excluded for purposes of calculating facility fees pursuant to Section  2.8 in respect of each day on which such Lender is a Defaulting Lender, and
such Defaulting Lender shall not be entitled to receive any facility fees for any such day
and (iii) such Defaulting Lender’s Applicable Percentage shall be deemed to be zero for
purposes of calculating letter of credit fees pursuant to Section 2.8 in respect of
each day on which such Lender is a Defaulting Lender, and such Defaulting Lender shall not
be entitled to receive any letter of credit fees for any such day. Any payment made
pursuant to this Section shall be taken into account for purposes of calculating the Unused
Fee and Letter of Credit Fee. The provisions of this Section 2.8(d) do not limit,
but are in addition to, any other claim or right that the Borrower, the Administrative Agent
or any other Lender may have against a Defaulting Lender.

2.9 Collateralization Events.

(a) The Borrower agrees that, if at any time as a result of reductions in the Aggregate
Commitment pursuant to Section 2.3 or otherwise the aggregate balance of the Letter
of Credit Obligations exceeds the Aggregate Commitment, the Borrower shall promptly, but in
any event within five (5) Business Days, collateralize the Letter of Credit Obligations by
depositing into a Collateral Account Cash Collateral Investments with a Collateral Value
equal to the product of one hundred and two percent (102%) of the amount as may be necessary
to eliminate such excess.

(b) Notwithstanding any other provisions of this Agreement, if at any time, after
giving effect to the conversion of Pounds into Dollars as set forth in Section 2.2,
the aggregate face amount of all outstanding Letters of Credit is greater than the Aggregate
Commitment (the “Conversion Differential”), then the Borrower shall promptly, but in
any event within five (5) Business Days, collateralize the Letter of Credit Obligations by
depositing into a Collateral Account Cash Collateral Investments with a Collateral Value
equal to the product of one hundred and two percent (102%) of the Conversion Differential.

(c) If the A.M. Best Rating or the S&P Rating of Navigators falls below “A-” the
Borrower shall promptly, but in any event within five (5) Business Days, collateralize the
Letter of Credit Obligations by depositing into a Collateral Account Cash Collateral
Investments with a Collateral Value equal to the product of one hundred and two percent
(102%) of the Letter of Credit Obligations.

(d) If the forecast underwriting losses based on mid-points stated in the Franchise
Performance Management Quarterly Monitoring Returns for the Supported Syndicate exceed 20%
of capacity for any year supported by a Letter of Credit, the Borrower shall promptly, but
in any event within five (5) Business Days, collateralize the Letter of Credit Obligations
by depositing into a Collateral Account Cash Collateral Investments with a Collateral Value
equal to one hundred and two percent (102%) of the Letter of Credit Obligations with respect
to all outstanding Letters of Credit.

 

25

 

(e) In the event that any net unfunded solvency deficit on any open years of account
for the Supported Syndicate (as reported in the solvency statements prepared by Lloyd’s) (a
“NFS Deficiency”) is not funded directly at Lloyd’s by depositing cash or
similar assets into the Supported Syndicate’s personal reserves, promptly, but in any
event within 10 Business Days after the Borrower has knowledge of such deficiency, the
Borrower shall collateralize the Letter of Credit Obligations by depositing, into a
Collateral Account, Cash Collateral Investments with a Collateral Value equal to the one
hundred and two percent (102%) of the NFS Deficiency after giving effect to any amount
funded directly at Lloyd’s as set forth above.

(f) In the event that an Expiry Notice is given with respect to any Letter of Credit,
the Borrower shall, within 5 Business Days after December 31 of the last Year of Account
supported by the such Letter of Credit pursuant to Section 6.2, collateralize the
Letter of Credit Obligation by depositing into a Collateral Account Cash Collateral
Investments with a Collateral Value equal to one hundred and two percent (102%) of the such
Letter of Credit.

(g) Upon the occurrence of an Event of Default, the Borrower shall promptly deposit in
a Collateral Account Cash Collateral Investments with a Collateral Value equal to the
product of one hundred and two percent (102%) of the aggregate undrawn face amount of all
outstanding Letters of Credit and all fees and other amounts due or which may become due
with respect thereto.

2.10 Collateral Account.

(a) The Borrower shall at all times maintain Cash Collateral Investments in Collateral
Accounts with a Collateral Value of not less than the Required Amount. If at any time the
Required Amount shall exceed (the amount of such excess, the “Collateral Shortfall”)
the Collateral Value for three (3) consecutive Business Days, the Administrative Agent shall
provide the Borrower notice, by telephone or in writing, of such Collateral Shortfall and it
shall be a Default unless within three (3) Business Days of the Borrower’s receipt of such
notice, no Collateral Shortfall exists as a result of (i) a change in the Collateral Value
due to market fluctuations and/or (ii) a deposit by the Borrower of additional Cash
Collateral Investments in a Collateral Account.

(b) Cash Collateral Investments held in a Collateral Account (other than the UK
Collateral Account) shall be invested (i) so long as no Default has occurred, at the
direction of the Borrower, provided that all such Cash Collateral Investments must
be reasonably acceptable to the Administrative Agent and otherwise permitted by this
Agreement, and (ii) following the occurrence and continuation of a Default, at the direction
of the Administrative Agent. All income from such Cash Collateral Investments shall be
retained in a Collateral Account and added to the Collateral.

(c) So long as no Default has occurred and is continuing, if at any time the
Obligations become due and payable hereunder, the Borrower may request that funds in a
Collateral Account be applied to the amount which is due and payable, including with respect
to any Reimbursement Obligations and the Administrative Agent shall apply such funds (in the
case of the UK Collateral Account) or consent to such release (in the case of any other
Collateral Account) provided, in each case, after giving effect to such application the
Borrower is in compliance with Section 2.10(a); provided, however,
the
Administrative Agent shall have the right, upon five (5) days’ prior notice to the
Borrower, to apply all or any part of the Cash Collateral Investments held in a Collateral
Account for the amount which is due and payable unless the Borrower shall object in writing
and otherwise pay the amount due and payable within such five (5) day period. Upon the
occurrence and continuation of a Default, the Administrative Agent may apply (without prior
notice to the Borrower) all or any part of the Cash Collateral Investments held in a
Collateral Account pursuant to and in accordance with Section 8.4.

 

26

 

(d) So long as no Default or Unmatured Default under Section 7.2 has occurred,
at any time the Collateral Value exceeds (the amount of such excess, the “Collateral
Excess”) the Required Amount, the Borrower can request to the release of such Collateral
Excess and the Administrative Agent shall release such funds from the UK Collateral or
consent to such release with respect to any other Collateral Account; provided,
however, upon the occurrence and continuation of a Default, the Administrative Agent
shall have no obligation to release or consent to any such release and shall have sole
control over any such Collateral Excess, including the application of such amount pursuant
to and in accordance with Section 8.4.

ARTICLE III

YIELD PROTECTION; TAXES

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

(a) subjects any Lender or any applicable Lending Installation to any Taxes, or changes
the basis of taxation of payments (other than with respect to Excluded Taxes) to any Lender
in respect of its interest in the Letters of Credit,

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

(c) imposes any other condition the result of which is to increase the cost to any
Lender or any applicable Lending Installation of making, funding or issuing Letters of
Credit or reduces any amount receivable by any Lender or any applicable Lending Installation
in connection with any Letter of Credit, or requires any Lender or any applicable Lending
Installation to make any payment calculated by reference to the amount of Letters of Credit
issued or participated in or interest received by it, by an amount deemed material by such
Lender,

and the result of any of the foregoing is to increase the cost to such Lender or applicable Lending
Installation of making or maintaining its Aggregate Commitment or its interest in the Letters of
Credit or to reduce the return received by such Lender or applicable Lending Installation in
connection with such Aggregate Commitment or interest in Letters of Credit, then, within fifteen
(15) days of demand by such Lender, the Borrower shall pay such Lender such additional amount or
amounts as will compensate such Lender for such increased cost or reduction in amount received.

 

27

 

3.2 Changes in Capital Adequacy Regulations. If a Lender determines the amount of
capital required or expected to be maintained by such Lender, any Lending Installation of such
Lender or any corporation controlling such Lender is increased as a result of a Change, then,
within fifteen (15) days of demand by such Lender, the Borrower shall pay such Lender the amount
necessary to compensate for any shortfall in the rate of return on the portion of such increased
capital which such Lender determines is attributable to this Agreement, or its commitment to issue
in Letters of Credit hereunder (after taking into account such Lender’s policies as to capital
adequacy). “Change” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation, implementation or
application thereof by any Governmental Authority or (c) the making or issuance of any request,
rule, guideline or directive (whether or not having the force of law) by any Governmental
Authority; provided that notwithstanding anything herein to the contrary, (x) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or
directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or
directives promulgated by the Basel Committee on Banking Supervision Bank for International
Settlements (or any successor or similar authority) or any foreign or United States regulatory
authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change”,
regardless of the date enacted, adopted or issued.

3.3 Taxes.

(a) All payments by the Borrower to or for the account of any Lender, the
Administrative Agent or the Security Trustee hereunder or under any Reimbursement Agreement
shall be made free and clear of and without deduction for any and all Taxes. If the
Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable
hereunder to any Lender, the Administrative Agent or the Security Trustee, (i) the sum
payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 3.3)
such Lender, the Administrative Agent or the Security Trustee (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions, (iii) the Borrower shall pay the full amount deducted
to the relevant authority in accordance with applicable law and (iv) the Borrower shall
furnish to the Administrative Agent the original copy of a receipt evidencing payment
thereof within thirty (30) days after such payment is made.

 

28

 

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

(c) Without duplication of amounts paid by such Borrower under Section 3.3(a)
or (b), the Borrower hereby agrees to indemnify the Administrative Agent and each
Lender for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes
or Other Taxes imposed on amounts payable under this Section 3.3) paid by the
Administrative Agent or such Lender and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto; provided, however, that the Borrower
shall not be required to indemnify the Administrative Agent or the Lender, as the case may
be, for any penalties, interest or expenses arising therefrom or imposed with respect
thereto to the extent that such penalties, interest, or expenses are attributable to the
failure of the Administrative Agent or such Lender, as the case may be, to pay over any
amounts paid to the Administrative Agent or such Lender by such Borrower (for Taxes or Other
Taxes) to the relevant Governmental Authority within twenty (20) days after receipt of such
payment from such Borrower. Payments due under this indemnification shall be made within
thirty (30) days of the date the Administrative Agent or such Lender makes demand therefor
pursuant to Section 3.4.

(d) Each Lender that is not incorporated under the laws of the United States of America
or a state thereof (each a “Non-U.S. Lender”) agrees that it will, not less than ten
(10) Business Days after the date of this Agreement, deliver to each of the Borrower and the
Administrative Agent such properly completed and executed documentation prescribed by
applicable law or reasonably requested by the Borrower, certifying that such Lender is
entitled to receive payments under this Agreement without deduction or withholding of any
United States federal income taxes. In addition, each Lender that is not a Non-U.S. Lender
will, not less than ten (10) Business Days after the date of this Agreement, deliver to each
of the Borrower and the Administrative Agent such other documentation prescribed by law or
reasonably requested by such Borrower or the Administrative Agent as will enable such
Borrower or the Administrative agent to determine whether or not such Lender is subject to
backup withholding and information reporting requirements. Each Lender further undertakes to
deliver to each of the Borrower and the Administrative Agent (x) renewals or additional
copies of such form (or any successor form) on or before the date that such form expires or
becomes obsolete and (y) after the occurrence of any event requiring a change in the most
recent forms so delivered by it, such additional forms or amendments thereto as may be
reasonably requested by the Borrower or the Administrative Agent. All forms or amendments
described in the preceding sentence shall certify that such Lender is entitled to receive
payments under this Agreement without deduction or withholding of any United States federal
income taxes, unless an event (including without limitation any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would otherwise be
required which renders all such forms inapplicable or which would prevent such Lender from
duly completing and delivering any such form or amendment with respect to it and such Lender
advises the Borrower and the Administrative Agent that it is not capable of receiving
payments without any deduction or withholding of United States federal income tax.

 

29

 

(e) Each “Non-U.S. Lender” shall deliver to each of the Borrower and the
Administrative Agent at the time or times prescribed by law (including as prescribed as a
result of any change in law or regulation, or the taking effect of any law occurring
subsequent to the date hereof) and at such time or times reasonably requested by the
Borrower or the Administrative Agent, any documentation, accurately completed and in a
manner reasonably satisfactory to the requesting party, that may be required in order to
allow the requesting party to make a payment under this Agreement or any other Facility
Document without any deduction or withholding for or on account of any tax otherwise
required to be withheld or assessed under FATCA.

(f) For any period during which a Non-U.S. Lender has failed to provide the Borrower
with an appropriate form pursuant to paragraph (d) above (unless such failure is due
to a change in treaty, law or regulation, or any change in the interpretation or
administration thereof by any governmental authority, occurring subsequent to the date on
which a form originally was required to be provided), such Non-U.S. Lender shall not be
entitled to indemnification under this Section 3.3 with respect to Taxes imposed by
the United States; provided that, should a Non-U.S. Lender which is otherwise exempt
from or subject to a reduced rate of withholding tax become subject to Taxes because of its
failure to deliver a form required under paragraph (d) above, the Borrower shall
take such steps as such Non-U.S. Lender shall reasonably request to assist such Non-U.S.
Lender to recover such Taxes.

(g) If the U.S. Internal Revenue Service or any other governmental authority of the
United States or any other country or any political subdivision thereof asserts a claim that
the Administrative Agent did not properly withhold tax from amounts paid to or for the
account of any Lender (because the appropriate form was not delivered or properly completed,
because such Lender failed to notify the Administrative Agent of a change in circumstances
which rendered its exemption from withholding ineffective, or for any other reason), such
Lender shall indemnify the Administrative Agent fully for all amounts paid, directly or
indirectly, by the Administrative Agent as tax, withholding therefor, or otherwise,
including penalties and interest, and including taxes imposed by any jurisdiction on amounts
payable to the Administrative Agent under this subsection, together with all costs and
expenses related thereto (including attorneys fees and time charges of attorneys for the
Administrative Agent, which attorneys may be employees of the Administrative Agent). The
obligations of the Lenders under this Section 3.3(g) shall survive the payment of
the Obligations and termination of this Agreement.

(h) If the Administrative Agent or any Lender receives a refund of any Taxes or Other
Taxes as to which it has been indemnified by the Borrower, it shall pay to the Borrower an
amount equal to such refund (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 3.3 with respect to Taxes or
Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses
incurred by the Administrative Agent or the 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 the
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 the Lender in the event the Administrative Agent
or the Lender is required to repay such refund to such Governmental Authority.

 

30

 

3.4 Lender Statements; Survival of Indemnity. To the extent reasonably possible, each
Lender shall designate an alternate Lending Installation to reduce any liability of the Borrower to
such Lender under Sections 3.1, 3.2 and 3.3 so long as such designation is
not, in the judgment of such Lender, disadvantageous to such Lender. Each Lender shall deliver a
written statement of such Lender to the Borrower (with a copy to the Administrative Agent) as to
the amount due, if any, under Section 3.1, 3.2 or 3.3. Such written
statement shall set forth in reasonable detail the calculations upon which such Lender determined
such amount and shall be final, conclusive and binding on the Borrower in the absence of manifest
error. The obligations of the Borrower under Section 3.1, 3.2 and 3.3
shall survive payment of the Obligations and termination of this Agreement.

ARTICLE IV 

CONDITIONS PRECEDENT

4.1 The Lenders Obligation to Issue. The obligation of the Letter of Credit Agent and
each Lender to issue the initial Letter of Credit hereunder is subject to satisfaction of the
following conditions precedent:

(a) The Administrative Agent’s receipt of the following, each of which shall be
originals or facsimiles or sent by electronic mail (followed promptly by originals) unless
otherwise specified, each properly executed by an Authorized Officer of the Borrower, each
dated the Closing Date (or, in the case of certificates of governmental officials, a recent
date before the Closing Date) and each in form and substance satisfactory to the
Administrative Agent and its counsel:

(i) Charter Documents; Good Standing Certificates. Copies of the
articles or certificate of incorporation of the Borrower, together with all
amendments, and a certificate of good standing, each certified by the appropriate
governmental officer in its jurisdiction of incorporation.

(ii) By-Laws and Resolutions. Copies, certified by the Secretary or
Assistant Secretary of the Borrower, of its by-laws and of its Board of Directors’
resolutions and of resolutions or actions of any other body authorizing the
execution of the Facility Documents to which the Borrower is a party.

(iii) Secretary’s Certificate. An incumbency certificate, executed by
the Secretary or Assistant Secretary of the Borrower, which shall identify by name
and title and bear the signature of the officers of the Borrower authorized to sign
the Facility Documents, upon which certificate the Administrative Agent and the
Lenders shall be entitled to rely until informed of any change in writing by the
Borrower.

 

31

 

(iv) Officer’s Certificate. A certificate, signed by an Authorized
Officer of the Borrower, stating that: (A) on the Closing Date no Default or
Unmatured Default has occurred and is continuing, (B) each of the
representations and warranties set forth in Article V of this Agreement is
true and correct on and as of the Closing Date (provided, that solely for purposes
of this Section 4.1(a)(iv)(B), the representation and warranty in Section 5.6 shall
be deemed to contain a reference to “prospects” of the Borrower) and (C) the A.M.
Best Rating and the S&P Rating for Navigators.

(v) Legal Opinions. A written opinion of (A) Dewey &LeBeouf, New York
counsel to the Borrower regarding US collateral matters and (B) the opinion of Dewey
&LeBeouf, English counsel to the Borrower regarding English collateral matters, in
each case addressed to the Administrative Agent and the Lenders and in form and
substance acceptable to the Administrative Agent and its counsel.

(vi) Facility Documents. Executed originals of this Agreement and each
of the Facility Documents, which shall be in full force and effect, together with
all schedules, exhibits, certificates, stock certificates (including stock
certificates representing all of the outstanding stock of each Significant
Subsidiary other than NSIC), related stock powers, Control Agreements, instruments,
opinions and documents required to be delivered pursuant hereto and thereto.

(vii) Lloyd’s Substitution Letter. The Lloyd’s Substitution Letter
duly executed.

(viii) Financial Statements. The financial statements described in
Section 6.1(a) and the statutory statements described in Section
6.1(c), in each case for the fiscal year ending December 31, 2010.

(ix) RDS. A summary of the RDS calculations (including the information
necessary to calculate the covenants in Sections 6.23(e) and (f)) for the
Supported Syndicate prepared in accordance with the definitions and reporting
requirements of Lloyd’s as in effect on the Closing Date for the applicable account
years to be covered by the Letters of Credit to be issued hereunder.

(x) Primary FAL. The Lloyd’s Comfort Letter duly executed1
and a letter from the Corporate Members of the Supported Syndicate setting forth the
Primary FAL for the Supported Syndicate, in each case for the 2011 Year of Account.

 

	 	 	 
	1	 	If the Lloyd’s Comfort Letter can not be obtained prior
to closing, it will be moved to a post-closing covenant.

 

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(xi) Compliance Certificate. A Compliance Certificate duly completed
and executed based on the December 31, 2010 financial statements and the 2011 Year
of Account.

(xii) Collateral Accounts. Evidence that the Collateral Accounts have
been opened and that the applicable Financial Institutions have received all
necessary documentation from the Borrower.

(xiii) Other. Such other documents as the Administrative Agent, any
Lender or their counsel may have reasonably requested.

(b) The A.M. Best Rating and the S&P Rating for Navigators shall be not less than “A-”.

(c) Any fees required to be paid on or before the Closing Date shall have been paid.

(d) Unless waived by the Administrative Agent, the Borrower shall have paid all fees,
charges and disbursements of counsel to the Administrative Agent (directly to such counsel
if requested by the Administrative Agent) to the extent invoiced prior to or on the Closing
Date, plus such additional amounts of such fees, charges and disbursements as shall
constitute its reasonable estimate of such fees, charges and disbursements incurred or to be
incurred by it through the closing proceedings (provided that such estimate shall
not thereafter preclude a final settling of accounts between Borrower and the Administrative
Agent).

Without limiting the generality of Section 10.4, for purposes of determining compliance
with the conditions specified in this Section 4.1, each Lender that has signed this
Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received notice from such
Lender prior to the proposed Closing Date specifying its objection thereto.

4.2 Each Letter of Credit. The Letter of Credit Agent, on behalf of the Lenders,
shall not be obligated to issue any Letter of Credit, unless on the applicable Issue Date:

(a) There exists no Default or Unmatured Default and none would result from such
issuance of such Letter of Credit.

(b) The representations and warranties contained in Article V are true and
correct as of such Issue Date except to the extent any such representation or warranty is
stated to relate solely to an earlier date, in which case such representation or warranty
shall have been true and correct on and as of such earlier date.

(c) An Issuance Request, as applicable, shall have been properly submitted.

(d) All legal matters incident to the issuance of such Letter of Credit shall be
satisfactory to the Lenders and their counsel.

 

33

 

(e) If a Collateralization Event has occurred, the Required Amount shall have been
deposited as required under Section 2.9 and the Administrative Agent shall have
received a Borrowing Base Certificate calculated as of the most recent Business Day in
accordance with the requirements hereof and demonstrating compliance with Section
2.10 after giving effect to the issuance of the requested Letter of Credit.

(f) Each Issuance Request with respect to each such Letter of Credit shall constitute a
representation and warranty by the Borrower that the conditions contained in Section
4.2(a) and (b) have been satisfied. Any Lender may require a duly completed
compliance certificate in substantially the form of Exhibit A hereto as a condition
to issuing a Letter of Credit.

ARTICLE V 

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Lenders that:

5.1 Existence and Standing. Each of the Borrower and its Subsidiaries is duly and
properly formed, validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization and, except as could not reasonably be expected to have a Material
Adverse Effect, has all requisite authority to conduct its business in each jurisdiction in which
its business is conducted.

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

5.3 No Conflict; Government Consent. Neither the execution and delivery by the
Borrower of the Facility Documents, nor the consummation of the transactions therein contemplated,
nor compliance with the provisions thereof will violate (a) any law, rule, regulation, order, writ,
judgment, injunction, decree or award binding on the Borrower or any of its Subsidiaries or (b) the
Borrower’s or any Subsidiary’s articles or certificate of incorporation, partnership agreement,
certificate of partnership, articles or certificate of organization, by-laws, or operating or other
management agreement, as the case may be, or (c) the provisions of any indenture, instrument or
agreement to which the Borrower or any of its Subsidiaries is a party or is subject, or by which
it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in,
or require, the creation or imposition of any Lien in, of or on the Property of the Borrower or a
Subsidiary pursuant to the terms of any such indenture, instrument or agreement. No order,
consent, adjudication, approval, license, authorization, or validation of, or filing, recording or
registration with, or exemption by, or other action in respect of any governmental or public body
or authority, or any subdivision thereof, which has not been obtained by the Borrower or any of its
Subsidiaries, is required to be obtained by the Borrower or any of its Subsidiaries in connection
with the execution and delivery of the Facility Documents, the extensions of credit under this
Agreement, the payment and performance by the Borrower of the Obligations or the legality,
validity, binding effect or enforceability of any of the Facility Documents, except that approval
of the New York Insurance Department and/or one or more other state insurance departments would be
required in order for the Lenders to acquire control
of Navigators and NSIC. Neither the Borrower nor any Subsidiary is in default under or in
violation of any foreign, federal, state or local law, rule, regulation, order, writ, judgment,
injunction, decree or award binding upon or applicable to the Borrower or such Subsidiary, in each
case the consequences of which default or violation could reasonably be expected to have a Material
Adverse Effect.

 

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5.4 Financial Statements. (a) The consolidated balance sheets of the Borrower and the
Consolidated Subsidiaries as of December 31, 2010, the related consolidated statements of income,
consolidated statements of stockholders’ equity, and consolidated statements of cash flows of the
Borrower and such Consolidated Subsidiaries for the Fiscal Year then ended, and the accompanying
footnotes, together, with the opinion thereon, of KPMG LLP, independent certified public
accountants, copies of which have been furnished to the Lenders, fairly present the financial
condition of the Borrower and the Consolidated Subsidiaries as at such dates and the results of the
operations of the Borrower and Consolidated Subsidiaries for the periods covered by such
statements, all in accordance with Agreement Accounting Principles consistently applied.

(b) There are no liabilities of the Borrower or any of the Consolidated Subsidiaries,
fixed or contingent, which are material but are not reflected in the most recent financial
statements referred to above or in the notes thereto, other than liabilities arising in the
ordinary course of business since December 31, 2010.

5.5 Statutory Financial Statements. The Annual Statement of each of the Insurance
Subsidiaries (including, without limitation, the provisions made therein for investments and the
valuation thereof, reserves, policy and contract claims and statutory liabilities) as filed with
the appropriate Governmental Authority of its state of domicile (the “Department”) and
delivered to each Lender prior to the execution and delivery of this Agreement, as of and for the
2010 Fiscal Year (the “Statutory Financial Statements”), have been prepared in accordance
with SAP applied on a consistent basis (except as noted therein). Each such Statutory Financial
Statement was in material compliance with applicable law when filed.

5.6 Material Adverse Change. Since December 31, 2010 there has been no change in the
business, Property, condition (financial or otherwise), prospects or results of operations of the
Borrower and its Subsidiaries which could reasonably be expected to have a Material Adverse Effect.

5.7 Taxes. The Borrower and its Subsidiaries have filed all United States federal tax
returns and all other tax returns which are required to be filed and have paid all taxes due
pursuant to said returns or pursuant to any assessment received by the Borrower or any of its
Subsidiaries, except such taxes, if any, as are being contested in good faith and as to which
adequate reserves have been provided in accordance with Agreement Accounting Principles and as to
which no Lien exists. No tax liens have been filed and no claims are being asserted with respect
to any such taxes. The charges, accruals and reserves on the books of the Borrower and its
Subsidiaries in respect of any taxes or other governmental charges are adequate.

 

35

 

5.8 Litigation and Contingent Obligations. There is no litigation, arbitration,
governmental investigation, proceeding or inquiry pending or, to the knowledge of any of their
officers, threatened against or affecting the Borrower or any of its Subsidiaries which could
reasonably be expected to have a Material Adverse Effect or which seeks to prevent, enjoin or delay
the issuance of any Letters of Credit. Other than any liability incident to any litigation,
arbitration or proceeding which could not reasonably be expected to have a Material Adverse Effect,
the Borrower has no material contingent obligations not provided for or disclosed in the SEC
Reports or in the financial statements referred to in Section 5.4.

5.9 Subsidiaries. Schedule 5.9 contains an accurate list of all Subsidiaries
of the Borrower as of the date of this Agreement, setting forth their respective jurisdictions of
organization and the percentage of their respective capital stock or other ownership interests
owned by the Borrower or other Subsidiaries and indicating which Subsidiaries are Significant
Subsidiaries and which Subsidiaries are Insurance Subsidiaries. All of the issued and outstanding
shares of capital stock or other ownership interests of such Subsidiaries have been (to the extent
such concepts are relevant with respect to such ownership interests) duly authorized and issued and
are fully paid and non-assessable.

5.10 ERISA. The Unfunded Liabilities of all Single Employer Plans is $0 except that
funding of any money purchase pension plan may be delayed each Fiscal Year until the end of the
first Fiscal Quarter of the following year. Neither the Borrower nor any other member of the
Controlled Group has incurred, or is reasonably expected to incur, any withdrawal liability to any
Multiemployer Plan. Each Plan complies in all material respects with all applicable requirements
of law and regulations, no Reportable Event has occurred with respect to any Plan, neither the
Borrower nor any other member of the Controlled Group has withdrawn from any Plan or initiated
steps to do so, and no steps have been taken to reorganize or terminate any Plan.

5.11 Defaults. No Default or Unmatured Default has occurred and is continuing.

5.12 Accuracy of Information. No information, exhibit or report furnished by the
Borrower or any of its Subsidiaries to the Administrative Agent or to any Lender in connection with
the negotiation of, or compliance with, the Facility Documents contained any material misstatement
of fact or omitted to state a material fact or any fact necessary to make the statements contained
therein not misleading.

5.13 Regulation U. Margin stock (as defined in Regulation U) constitutes less than
25% of the value of those assets of the Borrower and its Subsidiaries which are subject to any
limitation on sale, pledge, or other restriction hereunder. Neither the issuance of any Letters of
Credit hereunder nor the use of the proceeds thereof, will violate or be inconsistent with the
provisions of Regulation T, Regulation U or Regulation X.

5.14 Material Agreements. Neither the Borrower nor any Subsidiary is a party to any
agreement or instrument or subject to any charter or other corporate restriction which could
reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any Subsidiary
is in default in the performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (a) any agreement to which it is a party which default could reasonably be
expected to have a Material Adverse Effect or (b) any agreement or instrument evidencing or
governing Indebtedness.

 

36

 

5.15 Compliance With Laws. The Borrower and its Subsidiaries have complied with all
applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign
government or any instrumentality or agency thereof having jurisdiction over the conduct of their
respective businesses or the ownership of their respective Property, except where the failure to
comply could not reasonably be expected to have a Material Adverse Effect.

5.16 Ownership of Properties. The Borrower and each of its Subsidiaries has good
title, free of all Liens other than those permitted by Section 6.16, to all of the Property
and assets reflected in the Borrower’s most recent consolidated financial statements filed with the
Securities and Exchange Commission as owned by the Borrower and its Subsidiaries.

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

5.18 Environmental Matters. In the ordinary course of its business, the officers of
the Borrower consider the effect of Environmental Laws on the business of the Borrower and its
Subsidiaries, in the course of which they identify and evaluate potential risks and liabilities
accruing to the Borrower due to Environmental Laws. On the basis of this consideration, the
Borrower has concluded that Environmental Laws cannot reasonably be expected to have a Material
Adverse Effect. Neither the Borrower nor any Subsidiary has received any notice to the effect that
its operations are not in material compliance with any of the requirements of applicable
Environmental Laws or are the subject of any federal or state investigation evaluating whether any
remedial action is needed to respond to a release of any toxic or hazardous waste or substance into
the environment, which non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect.

5.19 Investment Company Act. Neither the Borrower nor any Subsidiary is an
“investment company” or a company “controlled” by an “investment company”, within the meaning of
the Investment Company Act of 1940, as amended.

5.20 Solvency. Immediately after the consummation of the transactions to occur on the
date hereof and immediately following each issuance of a Letter of Credit (including the Existing
Letters of Credit) hereunder on the date hereof and after giving effect to the application of the
proceeds of such Letters of Credit, (a) the fair value of the assets of the Borrower and its
Subsidiaries on a consolidated basis, at a fair valuation, will exceed the debts and liabilities,
subordinated, contingent or otherwise, of the Borrower and its Subsidiaries on a consolidated
basis, (b) the present fair saleable value of the Property of the Borrower and its Subsidiaries on
a consolidated basis will be greater than the amount that will be required to pay the probable
liability of the Borrower and its Subsidiaries on a consolidated basis on their debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become
absolute and matured, (c) the Borrower and its Subsidiaries on a consolidated basis will be able to
pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured and (d) the Borrower and its Subsidiaries on a
consolidated basis will not have unreasonably small capital with which to conduct the
businesses in which they are engaged as such businesses are now conducted and are proposed to be
conducted after the date hereof.

 

37

 

5.21 Insurance Licenses. To the extent required by applicable law, each Insurance
Subsidiary holds a License and is authorized to transact insurance business in (i) the line or
lines of insurance and (ii) the state, states or jurisdictions it is engaged in, except to the
extent that the failure to have such a License or authority could not reasonably be expected to
have a Material Adverse Effect. No such License, the loss of which could reasonably be expected to
have a Material Adverse Effect, is the subject of a proceeding for suspension, limitation or
revocation. To the Borrower’s knowledge, there is not a sustainable basis for such suspension,
limitation or revocation, and no such suspension, limitation or revocation has been threatened by
any Governmental Authority. The Insurance Subsidiaries do not transact any business, directly or
indirectly, requiring any license, permit, governmental approval, consent or other authorization
other than those currently obtained, except to the extent of which could not reasonably be expected
to have a Material Adverse Effect.

5.22 Partnerships. Except as disclosed in Schedule 5.22, neither the Borrower
nor any of its Subsidiaries is a partner of any partnership.

5.23 Lines of Business. Schedule 5.23 sets forth a complete statement of each
material line of business conducted as of the date hereof by the Borrower and each of its
Subsidiaries (the “Existing Lines of Business”).

5.24 Reinsurance Practices. The business of each Insurance Subsidiary is being
conducted in all material respects in accordance with the Reinsurance Guidelines.

5.25 Security. Each Security Document is effective to create and give the
Administrative Agent, for the benefit of the Secured Parties, as security for the repayment of the
obligations secured thereby, a legal, valid, perfected and enforceable first priority Lien upon and
security interest in the Collateral in which a security interest is granted thereby except for the
Permitted Liens (as defined in the Security Agreement) and except that approval of the New York
Insurance Department and/or one or more other state insurance departments would be required in
order for the Lenders to acquire control of Navigators or NSIC.

5.26 Disclosure. None of the (a) information, exhibits or reports furnished or to be
furnished by the Borrower or any Subsidiary to the Administrative Agent or to any Lender in
connection with the negotiation of the Facility Documents or (b) representations or warranties of
the Borrower or any Subsidiary contained in this Agreement, the other Facility Documents or any
other document, certificate or written statement furnished to the Administrative Agent or the
Lenders by or on behalf of the Borrower or any Subsidiary for use in connection with the
transactions contemplated by this Agreement or the Facility Documents contained, contains or will
contain any untrue statement of a material fact or omitted, omits or will omit to state a material
fact necessary in order to make the statements contained herein or therein not misleading in light
of the circumstances in which the same were made. There is no fact known to the Borrower (other
than matters of a general economic nature) that has had or could reasonably be expected to have a
Material Adverse Effect and that has not been disclosed herein
or in such other documents, certificates and statements furnished to the Lenders for use in
connection with the transactions contemplated by this Agreement.

 

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ARTICLE VI 

COVENANTS

Until the date that no Letters of Credit are outstanding and all Letter of Credit Obligations
have been indefeasibly paid in full, unless the Lenders shall otherwise consent in writing:

6.1 Financial Reporting. The Borrower will maintain, for itself and each Subsidiary,
a system of accounting established and administered in accordance with generally accepted
accounting principles, consistently applied, and will furnish to the Lenders:

(a) As soon as practicable and in any event within seventy (70) days after the close of
each of its Fiscal Years, an unqualified audit report certified by independent certified
public accountants acceptable to the Required Lenders, prepared in accordance with Agreement
Accounting Principles on a consolidated and consolidating basis and setting forth in
comparative form figures for the preceding Fiscal Year for itself and its Consolidated
Subsidiaries and on a stand alone basis for the Borrower, including balance sheets as of the
end of such period and related statements of income, stockholders’ equity and cash flows
accompanied by any management letter prepared by said accountants; provided that no annual
report other than the report on Form 10-K needs to be delivered.

(b) As soon as practicable and in any event within fifty (50) days after the close of
the first three Fiscal Quarters of each of its Fiscal Years, for itself and its
Subsidiaries, consolidated and consolidating unaudited balance sheets as at the close of
each such period and consolidated and consolidating statement of income, stockholders’
equity and cash flows for the period from the beginning of such Fiscal Year to the end of
such quarter setting forth in each case in comparative form figures for the corresponding
period in the prior Fiscal Year, all prepared in accordance with Agreement Accounting
Principles and in reasonable detail, and all signed by its chief financial officer.

(c) As soon as available and in any event (i) within seventy (70) days after the close
of each Fiscal Year of each Insurance Subsidiary, the Annual Statement of such Insurance
Subsidiary for such Fiscal Year as filed with the insurance commissioner (or similar
authority) in such Insurance Subsidiary’s state of domicile, together with the signature
thereof of the chief financial officer of the Borrower stating that such Annual Statement
presents the financial condition and results of operations of such Insurance Subsidiary in
accordance with SAP, (ii) on or prior to each June 1 after the close of each Fiscal Year of
each Insurance Subsidiary, the opinion of a firm of certified public accountants reasonably
satisfactory to the Required Lenders, who shall have examined such Annual Statement and
whose opinion shall not be qualified as to the scope of audit or as to the status of such
Insurance Subsidiary as a going concern, and (iii) within one hundred twenty (120) days
after the close of each Fiscal Year of each Insurance Subsidiary, a written review of and
opinion of an accounting or actuarial firm or internal
actuary, as delivered to the Department, reasonably satisfactory to the Required
Lenders on the methodology and assumptions used to calculate the Loss Reserves of such
Insurance Subsidiary at the end of such Fiscal Year (as shown on the Annual Statement of
such Insurance Subsidiary prepared in accordance with SAP).

 

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(d) As soon as available and in any event on or prior to each May 1 after the close of
each Fiscal Year of the Insurance Subsidiaries, the Consolidated Annual Statement of the
Insurance Subsidiaries for such Fiscal Year, prepared in accordance with SAP and filed with
the New York Insurance Department.

(e) As soon as available and in any event within fifty (50) days after the close of
each of the first three Fiscal Quarters in each Fiscal Year of each Insurance Subsidiary,
quarterly financial statements of such Insurance Subsidiary (prepared in accordance with
SAP) for such Fiscal Quarter and as filed with the insurance commissioner (or similar
authority) in such Insurance Subsidiary’s state of domicile, together with the signature
thereon of the chief financial officer of the Borrower stating that such financial
statements present the financial condition and results of operations of such Insurance
Subsidiary in accordance with SAP.

(f) As soon as available, but in any event within one hundred twenty (120) days after
the beginning of each Fiscal Year, a copy of the plan and forecast of the Borrower and its
Subsidiaries for such Fiscal Year in the form customarily prepared by the Borrower.

(g) Together with the financial statements required by clauses (a) and
(b) above, a compliance certificate in substantially the form of Exhibit A
hereto signed by its chief financial officer showing the calculations necessary to determine
compliance with this Agreement and stating that no Default or Unmatured Default exists, or
if any Default or Unmatured Default exists, stating the nature and status thereof and
updating Schedule 5.9.

(h) As soon as possible and in any event within ten (10) days after the Borrower knows
that any Termination Event has occurred with respect to any Plan, a statement, signed by the
chief financial officer of the Borrower, describing said Termination Event and the action
which the Borrower proposes to take with respect thereto.

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

(j) As soon as possible and in any event within ten (10) days after the Borrower learns
thereof, notice of the assertion or commencement of any claims, action,
suit or proceeding against or affecting the Borrower or any Subsidiary which may
reasonably be expected to have a Material Adverse Effect.

 

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(k) Promptly upon the furnishing thereof to the shareholders of the Borrower, copies of
all financial statements, reports and proxy statements so furnished; provided that no annual
report other than the report on Form 10-K needs to be delivered.

(l) Promptly upon the filing thereof, copies of all registration statements and annual,
quarterly, monthly or other regular reports which the Borrower or any of its Subsidiaries
files with the Securities and Exchange Commission.

(m) Promptly and in any event within ten (10) days after learning thereof, notification
of (i) any tax assessment, demand, notice of proposed deficiency or notice of deficiency
received by the Borrower or any Consolidated Person or (ii) the filing of any tax Lien or
commencement of any judicial proceeding by or against any such Consolidated Person, if any
such assessment, demand, notice, Lien or judicial proceeding relates to tax liabilities in
excess of $2,500,000.

(n) Promptly, and in any event within five (5) days after (i) learning thereof,
notification of any changes after the date hereof in the Borrower’s S&P Rating or Borrower’s
Moody’s Rating or in the A.M. Best Rating in respect of any Insurance Subsidiary and (ii)
receipt thereof, copies of any ratings analysis by A.M. Best & Co. relating to any Insurance
Subsidiary.

(o) Copies of any actuarial certificates prepared with respect to any Insurance
Subsidiary, promptly after the receipt thereof, and not later than ninety (90) days after
each Fiscal Year, an actuarial opinion with respect to each Insurance Subsidiary in form and
substance reasonably satisfactory to the Administrative Agent and the Required Lenders from
an accounting or actuarial firm or internal actuary, as delivered to the Department,
reasonably satisfactory to the Administrative Agent and the Required Lenders.

(p) Promptly upon the filing thereof, copies of all filings and annual, quarterly,
monthly or other regular reports which the Borrower or any of its Subsidiaries files with
the NAIC or any insurance commission or department or analogous Governmental Authority
(including, without limitation, any filing made by the Borrower or any Subsidiary pursuant
to any insurance holding company act or related rules or regulations), but excluding routine
or non-material filings with the NAIC, any insurance commissioner or department or analogous
Governmental Authority.

(q) In addition to the requirements of clause (c)(iii) above, as promptly as
reasonably practicable following the request of the Required Lenders, a report prepared by
an accounting or actuarial firm or internal actuary, as delivered to the Department,
reviewing the adequacy of Loss Reserves of each Insurance Subsidiary, which firm shall be
provided access to or copies of all reserve analyses and valuations relating to the
insurance business of each Insurance Subsidiary in the possession of or available to the
Borrower or its Subsidiaries; provided, that, in the event that the written review
required
to be provided to the Lenders in respect of any Fiscal Year pursuant to clause
(c)(iv) above is provided by an independent actuarial consulting firm reasonably
satisfactory to the Administrative Agent, or a written review of an independent actuarial
consulting firm reasonably satisfactory to the Administrative Agent satisfying the
requirements set forth in clause (c)(iv) is otherwise delivered to the Lenders at
any time other than pursuant to such clause, then the Required Lenders may not request a
report pursuant to this clause (q) until one year after the delivery date of such
report unless, at the time of such request, a Default is in existence.

 

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(r) If a Collateralization Event has occurred, (i) as soon as available, but in any
event within 10 days after the end of each calendar month of each fiscal year (x) a report
listing the Cash Collateral Investments and (y) a Borrowing Base Certificate executed by a
Authorized Officer. For purposes of such report and of completing the Borrowing Base
Certificate required under this Section 6.1(r), Cash Collateral Investments shall be
valued based on the Fair Market Value as at the last Business Day of the calendar month for
which such report or Borrowing Base Certificate is being delivered and (ii) promptly, at the
request of the Administrative Agent, a Borrowing Base Certificate for any given Business Day
executed by a Authorized Officer.

(s) As soon as possible and in any event within five (5) days of delivery to Lloyds,
the Franchise Performance Management Quarterly Monitoring Reports for the Supported
Syndicate.

(t) As soon as possible and in any event within five (5) days of receipt from Lloyds,
copies of the annual solvency statements prepared by Lloyd’s for the Supported Syndicate.

(u) As soon as possible and in any event within five (5) days of delivery to Lloyds,
the Syndicate Business Forecast of the Supported Syndicate which for the avoidance of doubt
shall included full RDS details and a syndicate reinsurance summary.

(v) As soon as possible and in any event within thirty (30) days of receipt from
Lloyds, a summary of any material change in Lloyd’s RDS definitions or reporting
requirements as well as the impact that such changes may have on the calculations provided
pursuant to Section 4.1(a)(ix) and compliance with the covenant set forth in
Section 6.23(e),.

(w) As soon as possible and in any event within five (5) days of deliver of the same to
Lloyd’s or any other insurance regulator or governmental authority, all other ad hoc or
exceptional financial reports provided by the Supported Syndicate or the Borrower.

 

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6.2 Purpose. Letters of Credit will be issued to provide Funds at Lloyd’s to support
underwriting capacity provided by the Corporate Members to the Supported Syndicate for the 2011 and
2012 underwriting years of account (and prior open years).

6.3 Notice of Default. The Borrower will, promptly after becoming aware of the
occurrence of any of the following, give notice in writing to the Lenders of the occurrence of
(a) any Default or Unmatured Default, (b) the existence of an NSF Deficiency, (c) of any other
event or development, financial or otherwise which could reasonably be expected to have a Material
Adverse Effect, (d) the receipt of any notice from any Governmental Authority or Lloyd’s of the
expiration without renewal, revocation or suspension of, or the institution of any proceedings to
revoke or suspend, any License now or hereafter held by any Insurance Subsidiary which is required
to conduct insurance business in compliance with all applicable laws and regulations and the
expiration, revocation or suspension of which could reasonably be expected to have a Material
Adverse Effect, (e) the receipt of any notice from any Governmental Authority or Lloyd’s of the
institution of any disciplinary proceedings against or in respect of any Insurance Subsidiary, or
the issuance of any order, the taking of any action or any request for an extraordinary audit for
cause by any Governmental Authority which, if adversely determined, could reasonably be expected to
have a Material Adverse Effect, (f) any material judicial or administrative order limiting or
controlling the business of any Subsidiary (and not the industry in which such Subsidiary is
engaged generally) which has been issued or adopted or (g) the commencement of any litigation which
could reasonably be expected to result in a Material Adverse Effect.

6.4 Conduct of Business. The Borrower will, and will cause each Subsidiary to, (a)
carry on and conduct its business only in the Existing Lines of Business or in other lines of the
insurance business or in activities reasonably incidental to the insurance business, (b) do all
things necessary to remain duly incorporated or organized, validly existing and (to the extent such
concept applies to such entity) in good standing in its jurisdiction of incorporation and its
jurisdiction of incorporation or organization, as the case may be, and maintain all requisite
authority to conduct its business in each other jurisdiction in which such qualification is
required and (c) do all things necessary to renew, extend and continue in effect all Licenses
material to its business which may at any time and from time to time be necessary for any Insurance
Subsidiary to operate its business in compliance with all applicable laws and regulations. No
Insurance Subsidiary shall change its state of domicile or incorporation without the prior written
consent of the Required Lenders.

6.5 Taxes. The Borrower will, and will cause each Subsidiary to, timely file United
States federal and applicable foreign, state and local tax returns required by applicable law
complete and correct in all material respects and pay when due all material taxes, assessments and
governmental charges and levies upon it or its income, profits or Property, except those which are
being contested in good faith by appropriate proceedings and with respect to which adequate
reserves have been set aside in accordance with Agreement Accounting Principles and SAP, as
applicable.

6.6 Insurance. The Borrower will, and will cause each Subsidiary to, maintain with
financially sound and reputable insurance companies insurance on all their Property in such amounts
and covering such risks as is consistent with sound business practice, and the Borrower will
furnish to the Administrative Agent and any Lender upon request full information as to the
insurance carried.

 

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6.7 Compliance with Laws. The Borrower will, and will cause each Subsidiary to,
comply with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or
awards to which it may be subject, including, without limitation, all Environmental Laws, the
noncompliance with which could reasonably be expected to have a Material Adverse Effect.

6.8 Maintenance of Properties. The Borrower will, and will cause each Subsidiary to,
do all things necessary to maintain, preserve, protect and keep its Property in good repair,
working order and condition, and make all necessary and proper repairs, renewals and replacements
so that its business carried on in connection therewith may be properly conducted at all times in
all material respects.

6.9 Inspection; Maintenance of Books and Records. The Borrower will, and will cause
each Subsidiary to, permit the Administrative Agent and the Lenders, by their respective
representatives and agents, to inspect any of the Property, books and financial records of the
Borrower and each Subsidiary, to examine and make copies of the books of accounts and other
financial records of the Borrower and each Subsidiary, and to discuss the affairs, finances and
accounts of the Borrower and each Subsidiary with, and to be advised as to the same by, their
respective officers at such reasonable times and intervals, during normal business hours and upon
reasonable prior notice to the Borrower, as the Administrative Agent or any Lender may designate.
The Borrower will keep or cause to be kept, and cause each Subsidiary to keep or cause to be kept,
appropriate records and books of account in which complete entries are to be made reflecting its
and their business and financial transactions, such entries to be made in accordance with Agreement
Accounting Principles and SAP, as applicable, consistently applied.

6.10 Dividends and Stock Repurchases. The Borrower will not, nor will it permit any
Subsidiary to, declare or pay any dividends or make any distributions on its capital stock (other
than dividends payable in its own capital stock) or redeem, repurchase or otherwise acquire or
retire any of its capital stock or any options or other rights in respect thereof at any time
outstanding, except that (a) any Subsidiary may declare and pay dividends or make distributions to
the Borrower or to a Wholly-Owned Subsidiary of the Borrower and (b) the Borrower may repurchase
capital stock and may pay dividends provided after giving effect thereto (i) Borrower would be in
pro forma compliance with the terms of this Agreement and (ii) no Default shall have occurred.

6.11 Indebtedness. The Borrower will not, nor will it permit any Subsidiary to,
create, incur or suffer to exist any Indebtedness, except:

(a) the Obligations;

(b) up to $125,000,000 Indebtedness of the Borrower issued pursuant
to a senior indenture between the Borrower and JPMorgan Chase Bank, N.A., as trustee,
dated April 17, 2006;

(c) guaranties permitted under Section 6.15;

 

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(d) capital leases in amounts not in excess of $2,500,000 at any time outstanding;

(e) other Indebtedness, in addition to the Indebtedness listed above, in an aggregate
amount not at any time exceeding $50,000,000; provided that such other
Indebtedness shall (a) have a maturity date after the Letter of Credit Availability
Termination Date and (b) be pari passu or subordinated to the Obligations;
and

(f) other Indebtedness, in addition to the Indebtedness listed above, in an aggregate
amount not at any time exceeding $10,000,000.

6.12 Merger. The Borrower will not, nor will it permit any Subsidiary to, merge or
consolidate with or into any Person, except that (a) a Subsidiary may merge into the Borrower or
any Wholly-Owned Subsidiary and (b) the Borrower may merge with or consolidate with any Person,
provided that (i) the Borrower is the surviving entity, (ii) no Default or Unmatured
Default has occurred or will occur as a result of such merger or consolidation and (iii) the
Administrative Agent has received a certificate from the Borrower showing that the Borrower would
be in pro forma compliance with the terms of this Agreement after giving effect to such merger or
consolidation.

6.13 Sale of Assets. The Borrower will not, nor will it permit any Subsidiary to,
lease, sell, transfer or otherwise dispose of its Property, to any other Person except:

(a) sales of inventory in the ordinary course of business; and

(b) leases, sales, transfers or other dispositions of its Property that, together with
all other Property of the Borrower and its Subsidiaries previously leased, sold or disposed
of (other than inventory or Investments (other than Investments in Subsidiaries) sold in the
ordinary course of business) as permitted by this Section 6.13 since the Closing
Date, do not constitute a Substantial Portion of the Property of the Borrower and its
Subsidiaries.

6.14 Investments and Acquisitions. The Borrower will not, nor will it permit any
Subsidiary to, make or suffer to exist any Investment (including, without limitation, loans and
advances to, and other Investments in, Subsidiaries), or commitments therefor, or to create any
Subsidiary or to become or remain a partner in any partnership or joint venture, or to make any
Acquisitions, except:

(a) Cash Equivalent Investments;

(b) Investments in debt securities rated A- or better by S&P, A3 or better by Moody’s
or NAIC-1 or better by the NAIC;

(c) existing Investments in Subsidiaries and other Investments in existence on the
Closing Date;

(d) Investments in debt securities rated less than A- by S&P, A3 by Moody’s or NAIC-1
by the NAIC but BBB- or better by S&P, Baa3 or better by Moody’s or NAIC-2 or better by the
NAIC; provided, that all such Investments under this clause (d) do not exceed, in
the aggregate at any one time outstanding, ten percent (10%) of the combined Investments of
the Borrower and its Subsidiaries; provided, further, that if any such
Investment ceases to meet such ratings requirements, then such Investment shall be
permitted hereby for a period of one hundred and eighty (180) days after the date on
which such ratings requirement is no longer satisfied;

 

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(e) Investments in debt securities not satisfying any of the standards, including the
percentage limitations, set forth in clauses (b) or (d) above in an
aggregate amount not exceeding 5% of Consolidated Net Worth of the Borrower and its
Consolidated Subsidiaries;

(f) Investments by the Borrower (not including Investments in Subsidiaries) in equity
securities in an aggregate amount not to exceed 20% of the Consolidated Net Worth of the
Borrower and its Consolidated Subsidiaries; provided that no single Investment in
equity securities shall be in an amount in excess of 5% of the Consolidated Net Worth of the
Borrower and its Consolidated Subsidiaries;

(g) other Investments after the Closing Date in an aggregate amount not to exceed 5% of
Consolidated Net Worth of the Borrower and its Consolidated Subsidiaries;

(h) Acquisitions in an aggregate amount not to exceed 5% of Consolidated Net Worth of
the Borrower and its Consolidated Subsidiaries in any Fiscal Year; and

(i) Investments by Navigators in Wholly-Owned Subsidiaries of Navigators (including new
Wholly-Owned Subsidiaries of Navigators);

provided that the Borrower will not, and will not permit any Subsidiary to, make any
Investments not in conformity with its then applicable investment guidelines.

6.15 Contingent Obligations. The Borrower will not, nor will it permit any Subsidiary
to, make or suffer to exist any Contingent Obligation (including, without limitation, any
Contingent Obligation with respect to the obligations of a Subsidiary), except (a) by endorsement
of instruments for deposit or collection in the ordinary course of business, (b) Contingent
Obligations in respect of Letters of Credit and (c) obligations with respect to letters of credit
not issued pursuant to this Agreement with MUL or NCUL as applicant so long as none of the Borrower
or its Subsidiaries is a co-applicant with respect thereto or otherwise guaranties such
obligations; provided, however, that the Borrower or any of its Wholly-Owned
Subsidiaries may guarantee (i) the obligations of any Person that is its or its Subsidiary’s
employee so long as the aggregate amount of all such guaranteed obligations, taken together with
the aggregate amount of any and all loans to such Persons by the Borrower in accordance with
Section 6.14 outstanding at any time do not in the aggregate exceed $500,000 and (ii) the
obligations of any Wholly-Owned Subsidiary under office space leases for space used by such
Wholly-Owned Subsidiary.

 

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6.16 Liens. The Borrower will not, nor will it permit any Subsidiary to, create,
incur, or suffer to exist any Lien in, of or on the Property of the Borrower or any of its
Subsidiaries, except:

(a) Liens for taxes, assessments or governmental charges or levies on its Property if
the same shall not at the time be delinquent or thereafter can be paid without penalty, or
are being contested in good faith and by appropriate proceedings and for
which adequate reserves in accordance with Agreement Accounting Principles shall have
been set aside on its books;

(b) Liens imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens and
other similar Liens arising in the ordinary course of business which secure the payment of
obligations not more than sixty (60) days past due or which are being contested in good
faith by appropriate proceedings and for which adequate reserves shall have been set aside
on its books;

(c) Liens arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement benefits,
or similar legislation;

(d) Utility easements, building restrictions and such other encumbrances or charges
against real property as are of a nature generally existing with respect to properties of a
similar character and which do not in any material way affect the marketability of the same
or interfere with the use thereof in the business of the Borrower or its Subsidiaries;

(e) Liens existing on the Closing Date and described in Schedule 6.16 hereto;

(f) Liens in favor of the Administrative Agent, for the benefit of the Secured Parties,
granted pursuant to the Security Documents;

(g) Deposits of cash or securities with or on behalf of state insurance departments
reflected in the Insurance Subsidiaries’ Statutory Financial Statements;

(h) Deposits of cash or securities by the Borrower with Lloyd’s;

(i) Liens on assets subject to capital leases permitted under Section 6.11(d);
and

(j) Liens, in addition to the Liens listed above, securing Indebtedness in an aggregate
amount at any time not exceeding $10,000,000.

6.17 Affiliates. The Borrower will not, and will not permit any Subsidiary to, enter
into any transaction (including, without limitation, the purchase or sale of any Property or
service) with, or make any payment or transfer to (other than dividends and stock repurchases
permitted under Section 6.10), any Affiliate except in the ordinary course of business and
pursuant to the reasonable requirements of the Borrower’s or such Subsidiary’s business and upon
fair and reasonable terms no less favorable to the Borrower or such Subsidiary than the Borrower or
such Subsidiary would obtain in a comparable arms-length transaction.

6.18 Amendments to Agreements. The Borrower will not, and will not permit any
Subsidiary to, amend, waive, modify or terminate any of its constituent documents in any manner
that could be expected to have a negative effect in any material respect on the Secured Parties.

 

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6.19 Change in Fiscal Year. The Borrower shall not, nor shall it permit any Subsidiary
to, change its Fiscal Year to end on any date other than December 31 of each year.

6.20 Inconsistent Agreements. The Borrower shall not, nor shall it permit any
Subsidiary to, enter into any indenture, agreement, instrument or other arrangement which, (a)
directly or indirectly prohibits or restrains, or has the effect of prohibiting or restraining, or
imposes materially adverse conditions upon, the incurrence of the Obligations, the granting of
Liens to secure the Obligations, the amending of the Facility Documents or the ability of any
Subsidiary to (i) pay dividends or make other distributions on its capital stock, (ii) make loans
or advances to the Borrower or (iii) repay loans or advances from the Borrower or (b) contains any
provision which would be violated or breached by the issuance of Letters of Credit or by the
performance by the Borrower or any Subsidiary of any of its Obligations under any Facility
Document.

6.21 Reinsurance. (a) The Borrower shall cause each Insurance Subsidiary to maintain
reinsurance protection with respect to each individual insurance policy written by such Insurance
Subsidiary which reinsurance protection, in the event of a loss, limits the net loss of such
Insurance Subsidiary under such insurance policy to 2.5% or less of the Statutory Surplus of such
Insurance Subsidiary. For purposes of this Section 6.21(a), the term “net loss” shall mean
the loss and loss adjustment expenses incurred by the Insurance Subsidiary under an insurance
policy net of any amounts recoverable or recovered from reinsurers with respect to such loss and
loss adjustment expenses without regard to any reinstatement premiums paid or payable to such
reinsurer.

(b) The Borrower shall not cause or permit an Insurance Subsidiary to enter into or
maintain, as a cedent, reinsurance agreements or retrocession agreements with any Person
other than an Approved Reinsurer; provided, however, that the foregoing
shall not require an Insurance Subsidiary to terminate a reinsurance agreement or
retrocession agreement if such Person ceases to be an Approved Reinsurer due to a downgrade
by The A.M. Best Company, Inc. or S&P and such reinsurance or retrocession agreement cannot
be replaced on commercially reasonable terms.

(c) The Borrower shall not cause or permit an Insurance Subsidiary to enter into or
maintain, as a cedent, reinsurance agreements or retrocession agreements with any Person
which do not comply with the guidelines for reinsurance by Insurance Subsidiaries set forth
on Schedule 6.21 hereto, as amended with the consent of the Lenders (the
“Reinsurance Guidelines”); provided, however, that the foregoing
shall not require an Insurance Subsidiary to terminate a reinsurance agreement or
retrocession agreement if such Person ceases to be an Approved Reinsurer due to a downgrade
by The A.M. Best Company, Inc. or S&P and such reinsurance or retrocession agreement cannot
be replaced on commercially reasonable terms.

6.22 Stock of Subsidiaries. The Borrower shall not sell or otherwise dispose of
(including the granting of any security interest in) any shares of capital stock of any Subsidiary
other than pursuant to the Security Agreement, or permit any Subsidiary to issue additional shares
of its capital stock, except the minimum number of directors’ qualifying shares required by
applicable law.

 

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6.23 Financial Covenants.

(a) Minimum Consolidated Tangible Net Worth. The Borrower will at all times
maintain Consolidated Tangible Net Worth of not less than $672,000,000.

(b) Minimum Statutory Surplus. The Borrower will at all times cause Navigators
Insurance Subsidiaries to maintain an aggregate Statutory Surplus of not less than
$549,000,000.

(c) Leverage Ratio. The Borrower will not permit the Leverage Ratio to exceed
0.30 to 1.0 at any time.

(d) Minimum Risk-Based Capital. The Borrower will at all times cause each
Significant Insurance Subsidiary to maintain a ratio of (a) Total Adjusted Capital (as
defined in the Risk-Based Capital Act or in the rules and procedures prescribed from time to
time by the NAIC with respect thereto) to (b) the Company Action Level RBC (as defined in
the Risk-Based Capital Act or in the rules and procedures prescribed from time to time by
the NAIC with respect thereto) of at least 150%.

(e) Primary FAL. The aggregate amount of Funds at Lloyd’s provided by the
Corporate Members of the Supported Syndicate shall not be less than the highest of (i) 25%
of the total Funds at Lloyd’s required to be provided to the Supported Syndicate and (ii)
90% of the aggregate of the three highest net RDS scenarios for any Year of Account.

(f) RDS. The net loss on the Supported Syndicate from any Lloyd’s prescribed
RDS shall not at any time exceed 20% of the total Supported Syndicate capacity for any Year
of Account.

6.24 Additional Pledge. Effective upon any Person becoming a Significant Subsidiary,
the parent thereof shall pledge the stock or other equity interests thereof to the Administrative
Agent for the benefit of the Secured Parties pursuant to documentation reasonably acceptable to the
Administrative Agent provided that no pledge of the stock of NSIC shall be required so long as NSIC
is not a direct Subsidiary of the Borrower.

6.25 Primary FAL. (a) Subject to the duties of Lloyd’s as trustee of all such Funds
at Lloyd’s and to any conditions and requirements prescribed under the Membership Byelaw which are
applicable, the Borrower will cause the Corporate Members and the Managing Agent to use their best
efforts to cause the Primary FAL of the Supported Syndicate to be applied to its obligations and
only after such Primary FAL has been exhausted, to draw under the Letters of Credit.

(b) No later than December 1, 2011, the Borrower shall use its reasonable efforts to obtain
the Lloyd’s Comfort Letter for the 2012 Year of Account.

 

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ARTICLE VII 

DEFAULTS

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

7.1 Any representation or warranty made or deemed made by or on behalf of the Borrower or any
of its Subsidiaries to the Lenders or the Administrative Agent under or in connection with this
Agreement, any other Facility Document, any Letter of Credit or any certificate or information
delivered in connection with this Agreement or any other Facility Document shall be false in any
material respect on the date as of which made or deemed made.

7.2 Nonpayment of (a) any principal of any Reimbursement Obligation when due, or (b) any
interest upon any commitment or other fee or obligations under any of the Facility Documents within
five (5) days after written notice from the Administrative Agent or any Lender.

7.3 The breach by the Borrower of any of the terms or provisions of Sections 2.8,
6.2, 6.3, Sections 6.10 through 6.13, Sections 6.15 through
6.20 or Sections 6.22 through 6.23.

7.4 The breach by the Borrower (other than a breach which constitutes a Default under
Sections 7.1, 7.2 or 7.3) of any of the terms or provisions of this
Agreement which is not remedied within thirty (30) days (or in the case of Section 6.14,
ten (10) days) after the Borrower has knowledge thereof or written notice from the Administrative
Agent or any Lender.

7.5 Failure of the Borrower or any of its Subsidiaries to pay any Indebtedness aggregating in
excess of $2,500,000 when due; or the default by the Borrower or any of its Subsidiaries in the
performance of any term, provision or condition contained in any agreement under which any such
Indebtedness was created or is governed, or the occurrence of any other event or existence of any
other condition, the effect of any of which is to cause, or to permit the holder or holders of such
Indebtedness to cause, such Indebtedness to become due prior to its stated maturity; or any such
Indebtedness of the Borrower or any of its Subsidiaries shall be declared to be due and payable or
required to be prepaid (other than by a regularly scheduled payment) prior to the stated maturity
thereof.

7.6 The Borrower or any of its Subsidiaries shall (a) have an order for relief entered with
respect to it under the Federal bankruptcy laws as now or hereafter in effect, (b) make an
assignment for the benefit of creditors, (c) apply for, seek, consent to, or acquiesce in, the
appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or
any Substantial Portion of its Property, (d) institute any proceeding seeking an order for relief
under the Federal bankruptcy laws as now or hereafter in effect or seeking to adjudicate it a
bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors or fail to file an answer or other pleading
denying the material allegations of any such proceeding filed against it, (e) take any corporate
action to authorize or effect any of the foregoing actions set forth in this Section 7.6,
(f) fail to contest in good faith any appointment or proceeding described in Section 7.7 or
(g) become unable to pay, not pay, or admit in writing its inability to pay, its debts generally as
they become due.

 

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7.7 Without the application, approval or consent of the Borrower or any of its Subsidiaries, a
receiver, trustee, examiner, liquidator or similar official shall be appointed for the
Borrower or any of its Subsidiaries or any Substantial Portion of its Property, or a
proceeding described in Section 7.6(d) shall be instituted against the Borrower or any of
its Subsidiaries and such appointment continues undischarged or such proceeding continues
undismissed or unstayed for a period of thirty (30) consecutive days.

7.8 Any court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of (each a “Condemnation”), all or any portion of
the Property of the Borrower and its Subsidiaries which, when taken together with all other
Property of the Borrower and its Subsidiaries so condemned, seized, appropriated, or taken custody
or control of, during the twelve-month period ending with the month in which any such Condemnation
occurs, constitutes a Substantial Portion.

7.9 The Borrower or any of its Subsidiaries shall fail within thirty (30) days to pay, bond or
otherwise discharge one or more (a) final, nonappealable judgments or orders for the payment of
money in excess of $2,500,000 (or the equivalent thereof in currencies other than U.S. Dollars) in
the aggregate, or (b) final, nonappealable nonmonetary judgments or orders which, individually or
in the aggregate, could reasonably be expected to have a Material Adverse Effect, which
judgment(s), in any such case, is/are not stayed on appeal or otherwise being appropriately
contested in good faith.

7.10 Any Reportable Event shall occur in connection with any Plan.

7.11 The Borrower or any other member of the Controlled Group shall have been notified by the
sponsor of a Multiemployer Plan that it has incurred withdrawal liability to such Multiemployer
Plan in an amount which, when aggregated with all other amounts required to be paid to
Multiemployer Plans by the Borrower or any other member of the Controlled Group as withdrawal
liability (determined as of the date of such notification), exceeds $2,500,000.

7.12 The Borrower or any other member of the Controlled Group shall have been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is being
terminated, within the meaning of Title IV of ERISA, if as a result of such reorganization or
termination the aggregate annual contributions of the Borrower and the other members of the
Controlled Group (taken as a whole) to all Multiemployer Plans which are then in reorganization or
being terminated have been or will be increased over the amounts contributed to such Multiemployer
Plans for the respective plan years of each such Multiemployer Plan immediately preceding the plan
year in which the reorganization or termination occurs by an amount exceeding $2,500,000.

7.13 The Borrower or any of its Subsidiaries shall (a) be the subject to any proceeding or
investigation pertaining to the release by the Borrower, any of its Subsidiaries or any other
Person of any toxic or hazardous waste or substance into the environment, or (b) violate any
Environmental Law, which, in the case of an event described in clause (a) or (b), could reasonably
be expected to have a Material Adverse Effect.

 

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7.14 Any Change in Control shall occur.

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

7.16 There shall occur a change in the business, Property, condition (financial or otherwise)
or results of operations of the Borrower and its Subsidiaries which has a Material Adverse Effect.

7.17 The Borrower or any of its Subsidiaries incurs or becomes subject to action or threatened
action of any Governmental Authority, including, without limitation, a fine, penalty, cease and
desist order or revocation, suspension or limitation of a License, the effect of which could
reasonably be expected to have a Material Adverse Effect.

7.18 Any Security Document shall for any reason fail to create a valid and perfected, first
priority security interest in any collateral purported to be covered thereby, except as permitted
by the terms of such Security Document, or any Facility Document, once executed, shall fail to
remain in full force or effect or any action shall be taken to discontinue or to assert the
invalidity or unenforceability of any Facility Document.

7.19 Lloyd’s shall draw under a Letter of Credit except as permitted by the terms of the
Lloyd’s Comfort Letter or Lloyd’s shall advise that it will not abide by the terms of the Lloyd’s
Comfort Letter.

ARTICLE VIII 

ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

8.1 Acceleration. If any Default described in Section 7.6 or 7.7
occurs with respect to the Borrower, the obligations of the Letter of Credit Agent and the Lenders
to issue Letters of Credit hereunder shall automatically terminate and the Obligations shall
immediately become due and payable without any election or action on the part of the Letter of
Credit Agent, the Administrative Agent or any Lender. If any other Default occurs, the Required
Lenders (or the Administrative Agent with the consent of the Required Lenders) may terminate or
suspend the obligations of the Letter of Credit Agent and the Lenders to issue Letters of Credit
hereunder, or declare the Obligations to be due and payable, or both, whereupon the Obligations
shall become immediately due and payable, without presentment, demand, protest or notice of any
kind, all of which the Borrower hereby expressly waives. In addition to the foregoing, following
the occurrence and during the continuance of a Default, so long as any Letter of Credit has not
been fully drawn and has not been canceled or expired by its terms, upon demand by the
Administrative Agent (which demand shall be made upon the request of the Required Lenders), the
Borrower shall deposit Collateral as required by Section 2.9(g).

 

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If, within thirty (30) days after acceleration of the maturity of the Obligations or termination of
the obligations of the Letter of Credit Agent and the Lenders to issue Letters of Credit hereunder
as a result of any Default (other than any Default as described in Section 7.6 or
7.7 with respect to the Borrower) and before any judgment or decree for the payment of the
Obligations due shall have been obtained or entered, the Required Lenders (in their sole
discretion) may direct the Administrative Agent to rescind and annul such acceleration and/or
termination.

8.2 Amendments. Subject to the provisions of this Article VIII, the Required
Lenders (or the Administrative Agent with the consent of the Required Lenders) and the Borrower may
enter into agreements supplemental hereto for the purpose of adding or modifying any provisions to
the Facility Documents or changing in any manner the rights of the Lenders or the Borrower
hereunder or waiving any Default hereunder; provided, however, that no such
supplemental agreement shall, without the consent of each Lender:

(a) Extend the final maturity of any Obligations or forgive all or any portion of the
Reimbursement Obligations, or reduce the rate or extend the time of payment of interest or
fees (including without limitation letter of credit fees) hereunder;

(b) Reduce the percentage specified in the definition of Required Lenders;

(c) Reduce the amount of or extend the date for payment of Reimbursement Obligations
under Section 2.4, or increase the amount of the Commitment of any Lender hereunder;

(d) Extend the Letter of Credit Availability Termination Date; permit any Letter of
Credit to have an expiry date beyond four years after the Expiry Notice is issued;

(e) Permit any amendment of Section 8.4;

(f) Release any guarantor of any Obligations or, except as provided in the Security
Agreement, release any of the collateral for the Obligations or decrease the amount of
collateral required under Sections 2.9 or 8.1;

(g) Permit any assignment by the Borrower of its Obligations or its rights hereunder;
or

(h) Permit any amendment of the Reinsurance Guidelines;

provided, further, that no such supplemental agreement shall,
without the consent of each Lender, amend this Section 8.2. No amendment of
any provision of this Agreement relating to the Administrative Agent or the Letter
of Credit Agent shall be effective without the written consent of the Administrative
Agent or the Letter of Credit Agent, as applicable. The Administrative Agent may
waive payment of the fee required under Section 12.3(b) without obtaining
the consent of any other party to this Agreement. Notwithstanding anything to the
contrary herein, no Defaulting Lender shall have any right to approve or disapprove
any amendment, waiver or consent hereunder, except that the commitment of such
Lender may not be increased or extended without the consent of such Lender.

 

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

8.4 Application of Funds. After the occurrence of a Default, any amounts received on
account of the Obligations (including proceeds of Collateral) shall be applied by the
Administrative Agent in the following order:

First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of counsel to the
Administrative Agent and amounts payable under Article III) payable to the Administrative
Agent and the Letter of Credit Agent in its capacity as such;

Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than Reimbursement Obligations, interest and Letter of Credit fees)
payable to the Lenders (including fees, charges and disbursements of counsel to the respective
Lenders (including, without duplication, fees and time charges for attorneys who may be employees
of any Lender) and amounts payable under Article III), ratably among them in proportion to
the respective amounts described in this clause Second payable to them;

Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit fees and interest on the Reimbursement Obligations and other Obligations, ratably
among the Lenders in proportion to the respective amounts described in this clause Third
payable to them;

Fourth, to payment of that portion of the Obligations constituting unpaid
Reimbursement Obligations, ratably among the Lenders in proportion to the respective amounts
described in this clause Fourth held by them;

Fifth, to the Administrative Agent for the account of the Lenders to be held as
Collateral for that portion of Letter of Credit Obligations comprised of the aggregate undrawn
amount of Letters of Credit; and

Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full and the Aggregate Commitment has been terminated, to the Borrower or as otherwise required by
Law.

Amounts held as Collateral for the aggregate undrawn amount of Letters of Credit pursuant to
clause Fifth above shall be applied to satisfy drawings under such Letters of Credit as
they occur. If any Collateral remains after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if any, in the order set
forth above.

 

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ARTICLE IX

GENERAL PROVISIONS

9.1 Survival of Representations. All representations and warranties of the Borrower
contained in this Agreement or in any Facility Document shall survive the issuance of the Letters
of Credit herein contemplated.

9.2 Governmental Regulation. Anything contained in this Agreement to the contrary
notwithstanding, no Lender shall be obligated to extend credit to the Borrower in violation of any
limitation or prohibition provided by any applicable statute or regulation.

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

9.4 Entire Agreement. The Facility Documents embody the entire agreement and
understanding among the Borrower, the Administrative Agent, and the Lenders and supersede all prior
agreements and understandings among the Borrower, the Administrative Agent, and the Lenders
relating to the subject matter thereof other than the mandate letter dated March 7, 2011 in favor
of ING Bank N.V., London Branch (the “Fee Letter”).

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

9.6 Several Obligations; Benefits of this Agreement. The respective obligations of
the Lenders hereunder are several and not joint and no Lender shall be the partner or
Administrative Agent of any other (except to the extent to which the Administrative Agent is
authorized to act as such). The failure of any Lender to perform any of its obligations hereunder
shall not relieve any other Lender from any of its obligations hereunder. This Agreement shall not
be construed so as to confer any right or benefit upon any Person other than the parties to this
Agreement and their respective successors and assigns, provided, however, that the
parties hereto expressly agree that the Arranger shall enjoy the benefits of the provisions of
Sections 9.7, 9.11 and 10.12 to the extent specifically set forth therein
and shall have the right to enforce such provisions on its own behalf and in its own name to the
same extent as if it were a party to this Agreement.

 

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9.7 Expenses; Indemnification. (a) The Borrower shall reimburse the Administrative
Agent, the Security Trustee and the Arranger for any costs, internal charges and out-of-pocket
expenses (including reasonable attorneys’ fees and time charges of attorneys for the Administrative
Agent) paid or incurred by the Administrative Agent, the Security Trustee or the Arranger in
connection with the preparation, negotiation, execution, delivery, syndication, review, amendment,
modification, and administration of the Facility Documents. The Borrower also agrees to reimburse
the Administrative Agent, the Security Trustee, the Arranger and the Lenders for any costs,
internal charges and out-of-pocket expenses (including reasonable attorneys’ fees and time charges
of attorneys for the Administrative Agent, the Arranger and the
Lenders), paid or incurred by the Administrative Agent, the Security Trustee, the Arranger or
any Lender in connection with the investigation, collection and enforcement of the Facility
Documents.

(b) The Borrower hereby further agrees to indemnify the Administrative Agent, the
Security Trustee, the Arranger, each Lender, each Affiliate of a Lender, and the directors,
officers, partners and employees of any of the foregoing against all losses, claims,
damages, penalties, judgments, liabilities and expenses (including, without limitation, all
expenses of litigation or preparation therefor whether or not the Administrative Agent, the
Security Trustee, the Arranger or any Lender is a party thereto) which any of them may pay
or incur arising out of or relating to this Agreement, the other Facility Documents, the
transactions contemplated hereby or the direct or indirect application or proposed
application of the proceeds of any Letter of Credit hereunder except to the extent that they
have resulted from the gross negligence or willful misconduct of the party seeking
indemnification. The obligations of the Borrower under this Section 9.7 shall
survive the termination of this Agreement.

9.8 Accounting. Except as provided to the contrary herein, all accounting terms used
herein shall be interpreted and all accounting determinations hereunder shall be made in accordance
with Agreement Accounting Principles. In the event the pages, columns, lines or sections of the
Annual Statement referenced herein are changed or renumbered, all such references shall be deemed
references to such page, column, line or section as so renumbered or changed.

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

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

 

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9.11 Confidentiality. Each Lender agrees to hold any confidential information which
it may receive from the Borrower pursuant to this Agreement in confidence, except for disclosure
(a) to its Affiliates and to other Lenders and their respective Affiliates, (b) to legal counsel,
accountants, and other professional advisors to such Lender or to a Transferee, (c) to regulatory
officials, (d) to any Person as requested pursuant to or as required by law, regulation, or legal
process, (e) to any Person in connection with any legal proceeding to which such Lender is a party,
(f) to such Lender’s direct or indirect contractual counterparties in swap agreements or to legal
counsel, accountants and other professional advisors to such counterparties and (g) permitted by
Section 12.4; provided, that any recipient of such disclosure shall be advised by
such Lender of the confidentiality requirements herein set forth.

9.12 Nonreliance. Each Lender hereby represents that it is not relying on or looking
to any margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve
System) for the repayment of the Obligations provided for herein.

9.13 Disclosure. The Borrower and each Lender hereby (a) acknowledge and agree that
ING Bank N.V., London Branch and/or its Affiliates from time to time may hold other investments in,
make other loans to or have other relationships with the Borrower, and (b) waive any liability of
ING Bank N.V., London Branch or such Affiliate to the Borrower or any Lender, respectively, arising
out of or resulting from such investments, loans or relationships other than liabilities arising
out of the gross negligence or willful misconduct of ING Bank N.V., London Branch or its
Affiliates.

9.14 USA Patriot Act Notification. Each Lender hereby notifies the Borrower that
pursuant to the requirements of the USA Act (Title III of Pub. L. 107-56 (signed into law on
October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow such Lender to identify the Borrower in accordance with the Act. The
Borrower agrees to cooperate with each Lender and provide true, accurate and complete information
to such Lender in response to any such request.

9.15 Existing Credit Agreement. The Borrower and the Lenders acknowledge (a) that the
Existing Credit Agreement will remain outstanding until such time as the “Lloyd’s Letters of
Credit” (as such term is defined in the Existing Credit Agreement) have been released or cancelled
by Lloyd’s, as beneficiary, (b) that if the “Lloyd’s Letters of Credit” have not been released or
cancelled by close of business March 31, 2011, that the Borrower shall be required to post
collateral pursuant to the terms of the Existing Credit Agreement and (c) that the stock of
Navigators will remain pledged to secure the obligations under the Existing Credit Agreement. Each
Lender, by execution hereof (i) agrees that the continued existence of the Existing Credit
Agreement and collateralization of any obligations thereunder (including the Existing Credit
Agreement Lien) as provided therein shall not constitute an Event of Default hereunder unless the
Existing Credit Agreement has not terminated and all amounts due thereunder have not been paid on
the date which is two Business Days after all “Lloyd’s Letters of Credit” issued thereunder are
released or cancelled by Lloyd’s, as beneficiary and (ii) waives any “Event of Default” arising
under the Existing Credit Agreement and the Pledge Agreement (as defined in the Existing Credit
Agreement) as a result of the execution and performance of this Agreement, the incurrence of
“Indebtedness” (as such term is defined in the Existing Credit Agreement)
hereunder and the pledge of the stock of Navigators or any other Collateral to secure the
Obligations.

 

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ARTICLE X 

THE AGENT

10.1 Appointment; Nature of Relationship. ING Bank N.V., London Branch is hereby
appointed by each of the Lenders as Administrative Agent (herein referred to as the
“Administrative Agent”) hereunder and under each other Facility Document, and each of the
Lenders irrevocably authorizes the Administrative Agent to act as the Administrative Agent of such
Lender with the rights and duties expressly set forth herein and in the other Facility Documents.
The Administrative Agent agrees to act as such Administrative Agent upon the express conditions
contained in this Article X. Notwithstanding the use of the defined term “Administrative
Agent,” it is expressly understood and agreed that the Administrative Agent shall not have any
fiduciary responsibilities to any Lender by reason of this Agreement or any other Facility Document
and that the Administrative Agent is merely acting as the Administrative Agent of the Lenders with
only those duties as are expressly set forth in this Agreement and the other Facility Documents.
In its capacity as the Lenders’ Administrative Agent, the Administrative Agent (a) does not hereby
assume any fiduciary duties to any of the Lenders, (b) is a “representative” of the Lenders within
the meaning of Section 9-105 of the Uniform Commercial Code and (c) is acting as an independent
contractor, the rights and duties of which are limited to those expressly set forth in this
Agreement and the other Facility Documents. Each of the Lenders hereby agrees to assert no claim
against the Administrative Agent on any agency theory or any other theory of liability for breach
of fiduciary duty, all of which claims each Lender hereby waives.

10.2 Powers. The Administrative Agent shall have and may exercise such powers under
the Facility Documents as are specifically delegated to the Administrative Agent by the terms of
each thereof, together with such powers as are reasonably incidental thereto. The Administrative
Agent shall have no implied duties to the Lenders, or any obligation to the Lenders to take any
action thereunder except any action specifically provided by the Facility Documents to be taken by
the Administrative Agent.

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

 

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10.4 No Responsibility for Recitals, etc. Neither the Administrative Agent nor any of
its directors, officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into, or verify: (a) any statement, warranty or representation made in
connection with any Facility Document or any borrowing hereunder, (b) the performance or observance
of any of the covenants or agreements of any obligor under any Facility Document, including,
without limitation, any agreement by an obligor to furnish information directly to each
Lender, (c) the satisfaction of any condition specified in Article IV, except receipt
of items required to be delivered solely to the Administrative Agent, (d) the existence or possible
existence of any Default or Unmatured Default, (e) the validity, enforceability, effectiveness,
sufficiency or genuineness of any Facility Document or any other instrument or writing furnished in
connection therewith, (f) the value, sufficiency, creation, perfection or priority of any Lien in
any collateral security or (g) the financial condition of the Borrower or any guarantor of any of
the Obligations or of any of the Borrower’s or any such guarantor’s respective Subsidiaries. The
Administrative Agent shall have no duty to disclose to the Lenders information that is not required
to be furnished by the Borrower to the Administrative Agent at such time, but is voluntarily
furnished by the Borrower to the Administrative Agent (either in its capacity as Administrative
Agent or in its individual capacity).

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

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

10.7 Reliance on Documents; Counsel. The Administrative Agent shall be entitled to
rely upon any notice, consent, certificate, affidavit, letter, telegram, statement, paper or
document believed by it to be genuine and correct and to have been signed or sent by the proper
person or persons, and, in respect to legal matters, upon the opinion of counsel selected by the
Administrative Agent, which counsel may be employees of the Administrative Agent.

 

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

10.9 Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Unmatured Default hereunder unless the
Administrative Agent has received written notice from a Lender or the Borrower referring to this
Agreement describing such Default or Unmatured Default and stating that such notice is a “notice of
default”. In the event that the Administrative Agent receives such a notice, the Administrative
Agent shall give prompt notice thereof to the Lenders.

10.10 Rights as a Lender. In the event the Administrative Agent is a Lender, the
Administrative Agent shall have the same rights and powers hereunder and under any other Facility
Document with respect to its Commitment, and any Letters of Credit in which it has an interest as
any Lender and may exercise the same as though it were not the Administrative Agent, and the term
“Lender” or “Lenders” shall, at any time when the Administrative Agent is a Lender, unless the
context otherwise indicates, include the Administrative Agent in its individual capacity. The
Administrative Agent and its Affiliates may accept deposits from, lend money to, and generally
engage in any kind of trust, debt, equity or other transaction, in addition to those contemplated
by this Agreement or any other Facility Document, with the Borrower or any of its Subsidiaries in
which the Borrower or such Subsidiary is not restricted hereby from engaging with any other Person.
The Administrative Agent, in its individual capacity, is not obligated to remain a Lender.

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

 

60

 

10.12 Successor Administrative Agent. The Administrative Agent may resign at any time
by giving written notice thereof to the Lenders and the Borrower, such resignation to be effective
upon the appointment of a successor Administrative Agent or, if no successor Administrative Agent
has been appointed, forty-five days after the retiring Administrative Agent gives notice of its
intention to resign. The Administrative Agent may be removed at any time with or without cause by
written notice received by the Administrative Agent from the Required Lenders, such removal to be
effective on the date specified by the Required Lenders. Upon any such resignation or removal, the
Required Lenders shall have the right to appoint, on behalf of the Borrower and the Lenders, a
successor Administrative Agent. If no successor Administrative Agent shall have been so appointed
by the Required Lenders within thirty days after the resigning Administrative Agent’s giving notice
of its intention to resign, then the resigning Administrative Agent may appoint, on behalf of the
Borrower and the Lenders, a successor Administrative Agent. Notwithstanding the previous sentence,
the Administrative Agent may at any time without the consent of the Borrower or any Lender, appoint
any of its Affiliates which is a commercial bank as a successor Administrative Agent hereunder. If
the Administrative Agent has resigned or been removed and no successor Administrative Agent has
been appointed, the Lenders may perform all the duties of the Administrative Agent hereunder and
the Borrower shall make all payments in respect of the Obligations to the applicable Lender and for
all other purposes shall deal directly with the Lenders. No successor Administrative Agent shall
be deemed to be appointed hereunder until such successor Administrative Agent has accepted the
appointment. Any such successor Administrative Agent shall be a commercial bank having capital and
retained earnings of at least $100,000,000. Upon the acceptance of any appointment as
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 resigning or removed Administrative Agent. Upon the effectiveness of the resignation
or removal of the Administrative Agent, the resigning or removed Administrative Agent shall be
discharged from its duties and obligations hereunder and under the Facility Documents. After the
effectiveness of the resignation or removal of an Administrative Agent, the provisions of this
Article X shall continue in effect for the benefit of such Administrative Agent in respect
of any actions taken or omitted to be taken by it while it was acting as the Administrative Agent
hereunder and under the other Facility Documents. The resignation or removal of the Administrative
Agent shall also constitute a resignation or removal of the Letter of Credit Agent unless the
Letter of Credit Agent agrees otherwise.

10.13 Administrative Agents’ Fees. The Borrower agrees to pay to the Administrative
Agent, for its own account, the fees agreed to by the Borrower and the Administrative Agent
pursuant to the Fee Letter.

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

 

61

 

10.15 Security Trustee. The Security Trustee shall act on behalf of the Lenders with
respect to any Fixed Charge and the documents associated therewith, and Security Trustee shall have
all of the benefits and immunities (A) provided to the Administrative Agent in this Article
X with respect to any acts taken or omissions suffered by the Security Trustee in connection
with it capacity as Security Trustee as fully as if the term “Administrative Agent” as used in this
Article X includes the Security Trustee as with respect to such acts or omissions, and (B)
as additionally provided herein with respect to Security Trustee. The Lenders agree to execute
such documents as the Security Trustee may reasonably request to give effect to any assignment
pursuant to Section 12.3 or to enable any Assignee to have the benefits of the lien granted
under the Fixed Charge.

ARTICLE XI 

SETOFF; RATABLE PAYMENTS

11.1 Setoff. In addition to, and without limitation of, any rights of the Lenders
under applicable law, if the Borrower becomes insolvent, however evidenced, or any Default occurs,
any and all deposits (including all account balances, whether provisional or final and whether or
not collected or available) and any other Indebtedness at any time held or owing by any Lender to
or for the credit or account of the Borrower may be offset and applied toward the payment of the
Obligations owing to such Lender, whether or not the Obligations, or any part hereof, shall then be
due.

11.2 Ratable Payments. If any Lender, whether by setoff or otherwise, has payment
made to it upon its Reimbursement Obligations (other than payments received pursuant to Section
3.1, 3.2 or 3.3) in a greater proportion than that received by any other
Lender, such Lender agrees, promptly upon demand, to purchase a participation interests in Letters
of Credit, as the case may be, held by the other Lenders so that after such purchase each Lender
will hold its ratable proportion of such participation interests in Letters of Credit. If any
Lender, whether in connection with setoff or amounts which might be subject to setoff or otherwise,
receives collateral or other protection for its Obligations or such amounts which may be subject to
setoff, such Lender agrees, promptly upon demand, to take such action necessary such that all
Lenders share in the benefits of such collateral ratably in proportion to their Commitments. In
case any such payment is disturbed by legal process, or otherwise, appropriate further adjustments
shall be made.

 

62

 

ARTICLE XII

BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

12.1 Successors and Assigns. The terms and provisions of the Facility Documents shall
be binding upon and inure to the benefit of the Administrative Agent, the Borrower and the Lenders
and their respective successors and assigns, except that (a) the Borrower shall not have the right
to assign its rights or obligations under the Facility Documents and (b) any assignment by any
Lender must be made in compliance with Section 12.3. Notwithstanding clause (b) of
the foregoing sentence, any Lender may at any time, without the consent of the Borrower or the
Administrative Agent, assign all or any portion of its rights under
this Agreement to a Federal Reserve Bank; provided, however, that no such
assignment to a Federal Reserve Bank shall release the transferor Lender from its obligations
hereunder. The Administrative Agent may treat the Person which issued any Letter of Credit as the
Person who has the Commitment hereunder for all purposes hereof unless and until such Person
complies with Section 12.3 in the case of an assignment thereof or, in the case of any
other transfer, a written notice of the transfer is filed with the Administrative Agent. Any
assignee or transferee of the rights to any Letter of Credit agrees by acceptance of such transfer
or assignment to be bound by all the terms and provisions of the Facility Documents. Any request,
authority or consent of any Person, who at the time of making such request or giving such authority
or consent is the owner of the rights to any Letter of Credit, shall be conclusive and binding on
any subsequent holder, transferee or assignee of the rights to such Letter of Credit, as the case
may be.

12.2 Participations.

(a) Permitted Participants; Effect. Any Lender may, in the ordinary course of
its business and in accordance with applicable law, at any time sell to one or more banks or
other entities (“Participants”) participating interests in any Commitment of such
Lender, any interest of such Lender in any Letters of Credit or any other interest of such
Lender under the Facility Documents. In the event of any such sale by a Lender of
participating interests to a Participant, such Lender’s obligations under the Facility
Documents shall remain unchanged, such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, such Lender shall remain the owner
of its interest in any Letters of Credit issued to it in evidence thereof for all purposes
under the Facility Documents, all amounts payable by the Borrower under this Agreement shall
be determined as if such Lender had not sold such participating interests, and the Borrower
and the Administrative Agent shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under the Facility Documents.

(b) Voting Rights. Each Lender shall retain the sole right to approve, without
the consent of any Participant, any amendment, modification or waiver of any provision of
the Facility Documents, except to the extent such amendment, modification or waiver would
require the unanimous consent of the Lenders as described in Section 8.2.

(c) Benefit of Setoff. The Borrower agrees that each Participant shall be
deemed to have the right of setoff provided in Section 11.1 in respect of its
participating interest in amounts owing under the Facility Documents to the same extent as
if the amount of its participating interest were owing directly to it as a Lender under the
Facility Documents, provided that each Lender shall retain the right of setoff
provided in Section 11.1 with respect to the amount of participating interests sold
to each Participant. The Lenders agree to share with each Participant, and each
Participant, by exercising the right of setoff provided in Section 11.1, agrees to
share with each Lender, any amount received pursuant to the exercise of its right of setoff,
such amounts to be shared in accordance with Section 11.2 as if each Participant
were a Lender.

 

63

 

12.3 Assignments.

(a) Permitted Assignments. Any Lender may, in the ordinary course of its
business and in accordance with applicable law, at any time assign to one or more banks or
other entities (“Purchasers”) all or any part of its rights and obligations under
the Facility Documents provided such Purchasers are Lloyd’s Approved Banks. Such assignment
shall be substantially in the form of Exhibit B or in such other form as may be
agreed to by the parties thereto. The consent of the Borrower and the Administrative Agent
shall be required prior to an assignment becoming effective with respect to a Purchaser
which is not a Lender or an Affiliate thereof; provided, however, that if a
Default has occurred and is continuing, the consent of the Borrower shall not be required;
provided, further, that the Borrower shall be deemed to have consented to
any such assignment unless it shall object thereto by written notice to the Administrative
Agent within five (5) Business Days after having received notice thereto. Such consent
shall not be unreasonably withheld or delayed. Each such assignment shall (unless it is to
a Lender or an Affiliate thereof or the Administrative Agent otherwise consents) be in an
amount not less than the lesser of (a) $5,000,000 or (b) the remaining amount of the
assigning Lender’s Commitment (calculated as at the date of such assignment).

(b) Effect; Effective Date. A Lender shall notify the Administrative Agent in
the event it wishes to transfer any of its Commitment. Upon receipt of such notice, the
Administrative Agent shall verify that the beneficiaries of the outstanding Letters of
Credit will accept an amendment to or replacement of the outstanding Letters of Credit to
reflect such assignment and the change in the “Commitments” as reflected in such outstanding
Letters of Credit (a “Transfer Amendment”). The Administrative Agent shall advise the
Lender whether such Transfer Amendment is acceptable (the “Advisement Date”) and the Lender
shall advise the Administrative Agent of the proposed assignment date (which date shall be
not less than ten (10) Business Days after the Advisement Date). Upon (i) delivery to the
Administrative Agent and the Borrower of a notice of assignment, substantially in the form
attached as Exhibit I to Exhibit B (a “Notice of Assignment”), together with
any consents required by Section 12.3(b), (ii) payment of a $3,500 fee to the
Administrative Agent by the assigning Lender or the Purchaser for processing such
assignment, the Administrative Agent shall prepare the necessary Transfer Amendments and
coordinate with the beneficiaries a date to effectuate such Transfer Amendment. Upon
acceptance of the Transfer Amendment by the beneficiaries, such assignment shall become
effective. The Notice of Assignment shall contain a representation by the Purchaser to the
effect that none of the consideration used to make the purchase of the participation
interests in the Letters of Credit under the applicable assignment agreement are “plan
assets” as defined under ERISA and that the rights and interests of the Purchaser in and
under the Facility Documents will not be “plan assets” under ERISA. On and after the
effective date of such assignment, such Purchaser shall for all purposes be a Lender party
to this Agreement and any other Facility Document executed by or on behalf of the Lenders
and shall have all the rights and obligations of a Lender under the Facility Documents, to
the same extent as if it were an original party hereto, and no further consent or action by
the Borrower, the Lenders or the Administrative Agent shall be required to release the
transferor Lender with respect to the percentage of the Aggregate Commitment and the
participation interests in Letters of Credit assigned to such Purchaser.

 

64

 

12.4 Dissemination of Information. The Borrower authorizes each Lender to disclose to
any Participant or Purchaser or any other Person acquiring an interest in the Facility Documents by
operation of law (each a “Transferee”) and any prospective Transferee any and all information in
such Lender’s possession concerning the creditworthiness of the Borrower and its Subsidiaries;
provided that each Transferee and prospective Transferee agrees to be bound by Section
9.11 of this Agreement.

12.5 Tax Treatment. If any interest in any Facility Document is transferred to any
Transferee which is organized under the laws of any jurisdiction other than the United States or
any State thereof, the transferor Lender shall cause such Transferee, concurrently with the
effectiveness of such transfer, to comply with the provisions of Section 3.5(d).

ARTICLE XIII 

NOTICES

13.1 Notices. All notices, requests and other communications to any party hereunder
shall be in writing (including electronic transmission, facsimile transmission or similar writing)
and shall be given to such party: (a) in the case of the Borrower or the Administrative Agent, at
its address or facsimile number set forth on the signature pages hereof, (b) in the case of any
Lender, at its address or facsimile number set forth below its signature hereto or (c) in the case
of any party, at such other address or facsimile number as such party may hereafter specify for the
purpose by notice to the Administrative Agent and the Borrower in accordance with the provisions of
this Section 13.1. Each such notice, request or other communication shall be effective (i)
if given by facsimile transmission, when transmitted to the facsimile number specified in this
Section and confirmation of receipt is received, (ii) if given by mail, seventy-two (72) hours
after such communication is deposited in the mails with first class postage prepaid, addressed as
aforesaid, or (iii) if given by any other means, when delivered (or, in the case of electronic
transmission, received) at the address specified in this Section; provided that notices to
the Administrative Agent under Article II shall not be effective until received.

13.2 Change of Address. The Borrower, the Administrative Agent and any Lender may
each change the address for service of notice upon it by a notice in writing to the other parties
hereto.

ARTICLE XIV

COUNTERPARTS

This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing
any such counterpart. This Agreement shall be effective when it has been executed by the Borrower,
the Administrative Agent and the Lenders and each party has notified the Administrative Agent by
facsimile transmission or telephone that it has taken such action.

 

65

 

ARTICLE XV 

CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

15.1 CHOICE OF LAW. THE FACILITY DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY
EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARDS TO THE CONFLICT OF LAW PROVISIONS THEREOF OTHER THAN
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT GIVING EFFECT TO FEDERAL
LAWS APPLICABLE TO NATIONAL BANKS.

15.2 CONSENT TO JURISDICTION. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT SITTING IN NEW YORK, NEW
YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY FACILITY DOCUMENTS AND THE
BORROWER HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH
COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT,
THE LETTER OF CREDIT AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWER IN THE COURTS OF
ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER AGAINST THE ADMINISTRATIVE AGENT,
THE LETTER OF CREDIT AGENT OR ANY LENDER OR ANY AFFILIATE OF THE ADMINISTRATIVE AGENT, THE LETTER
OF CREDIT AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT
OF, RELATED TO, OR CONNECTED WITH ANY FACILITY DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW
YORK, NEW YORK.

15.3 WAIVER OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT, THE LETTER OF
CREDIT AGENT AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY FACILITY DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.

[signature pages follow]

 

66

 

IN WITNESS WHEREOF, the Borrower, the Lenders, the Letter of Credit Agent and the
Administrative Agent have executed this Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	THE NAVIGATORS GROUP, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	/s/ Francis W. McDonnell 	 	 
	 	 	 	 	 	 	 
	 	 	Print Name:   Francis W. McDonnell	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	CFO 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:
	 	Reckson Executive Park

6 International Drive

Rye Brook, New York 10573	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Attn:
	 	 	 	Francis W. McDonnell	 	 
	 	 	Telephone: (914) 933-6270	 	 
	 	 	Fax: (914) 933-6033	 	 
	 	 	Email: FMcDonnell@navg.com	 	 

 

S-1

 

	 	 	 	 	 	 	 
	 	 	ING BANK N.V., LONDON BRANCH,	 	 
	 	 	individually, as Administrative Agent and	 	 
	 	 	Letter of Credit Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ M.E.R. Sharman 	 	 
	 

	 	 	 	 

Name:   M.E.R. Sharman
	 	 
	 

	 	 	 	Title:   Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ P.N.A. Galpin 	 	 
	 

	 	 	 	 

Name:   P.N.A. Galpin
	 	 
	 

	 	 	 	Title:   Director	 	 

	 	 	 	 	 
	 

	 	Address:
	 	ING Bank N.V., London Branch

60 London Wall

London EC2M 5TQ

United Kingdom
	 
	 	 	 	 
	 

	 	Attention:
	 	Mariëtte Groen
	 
	 	 	 	 
	 	 	Telephone: +44 (0)20 7767 5920
	 	 	Fax: +44 (0)20 7767 7507
	 	 	Email: mariette.groen@uk.ing.com

 

S-2

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas Kiepura	 	 
	 

	 	 	 	 

Name:   Thomas Kiepura
	 	 
	 

	 	 	 	Title:   Vice President	 	 

	 	 	 	 	 
	 

	 	Address:
	 	10 S. Dearborn, 9th floor

Suite IL1-0364

Chicago, IL 60603
	 
	 	 	 	 
	 

	 	Attention:
	 	Thomas Kiepura
	 
	 	 	 	 
	 	 	Telephone: (312) 325-3195
	 	 	Fax: (312) 794-7684
	 	 	Email: Thomas.a.kiepura@jpmorgan.com

 

S-3

 

	 	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ J. Atkinson	 	 
	 

	 	 	 	 

Name:   J. Atkinson
	 	 
	 

	 	 	 	Title:   Associate Director	 	 

	 	 	 	 	 
	 

	 	Address:
	 	Level 11, 1 Churchill Place

Canary Wharf

London E14 5HP

United Kingdom
	 
	 	 	 	 
	 

	 	Attention:
	 	Jonathon Bush
	 
	 	 	 	 
	 	 	Telephone: +44 (0) 20 7116 8651
	 	 	Fax: +44 20 7116 7636
	 	 	Email: jonathan.bush@barclays.com

 

S-4

 

SCHEDULE 1

COMMITMENTS

	 	 	 	 	 
	Lender	 	Letter of Credit Facility	 
	 
	 	 	 	 
	ING Bank N.V., London Branch
	 	$	75,000,000	 
	 
	 	 	 	 
	JPMorgan Chase Bank N.A.
	 	$	50,000,000	 
	 
	 	 	 	 
	Barclays Bank PLC
	 	$	40,000,000	 
	 
	 	 	 	 
	TOTAL:
	 	$	165,000,000	 

 

Schedule 1

 

SCHEDULE 1.1

CASH COLLATERAL INVESTMENTS AND APPLICABLE ADVANCE RATES

	 	 	 	 	 
	Collateral Description	 	Advance Rate	 
	US Dollars held with ING:
	 	 	90	%
	Pounds held with ING:
	 	 	100	%
	Cash held with a Financial Institution (subject to a Control
Agreement):
	 	 	85	%
	US Dollar and/or Pound Time Deposits, CDs and Money Market
Deposits:
	 	 	85	%
	 
	 	 	 	 
	Time deposits, certificates of deposit and money market
deposits of any OECD incorporated bank with a rating of at
least (i) AA- from S&P and (ii) Aa3 from Moody’s and maturing
within two years from the date of determination

	 	 	 	 
	US Government Securities:
	 	 	80	%
	 
	 	 	 	 
	Securities issued or directly and fully guaranteed or insured
by the United States Government or any agency or
instrumentality thereof (provided that the full faith and
credit of the United States is pledged in support thereof),
with maturities of:
	 	 	75	%
	less than five years from the date of determination

	 	 	 	 
	more than five years from the date of determination

	 	 	 	 
	Commercial paper rated A-1 by S&P or P1 or better by Moody’s
	 	 	85	%

 

 

 

EXHIBIT A

COMPLIANCE CERTIFICATE

			
	To:	 	The Lenders parties to the

Letter of Credit Agreement Described Below

This Compliance Certificate is furnished pursuant to that certain Funds at Lloyd’s Letter of Credit
Agreement, dated as of March 28, 2011 (as amended, modified, renewed or extended from time to time,
the “Agreement”), among The Navigators Group, Inc. (the “Borrower”), the lenders
party thereto, and ING Bank N.V., London Branch, as Administrative Agent and Letter of Credit
Agent. Unless otherwise defined herein, capitalized terms used in this Compliance Certificate have
the meanings ascribed thereto in the Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

1. I am the duly elected                      of the Borrower;

2. I have reviewed the terms of the Agreement and I have made, or have caused to be made under my
supervision, a detailed review of the transactions and conditions of the Borrower and its
Subsidiaries during the accounting period covered by the attached financial statements;

3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of,
the existence of any condition or event which constitutes a Default or Unmatured Default during or
at the time of the accounting period covered by the attached financial statements or as of the date
of this Certificate, except as set forth below; and

4. Schedule I attached hereto sets forth financial data and computations evidencing the
Borrower’s compliance with certain covenants of the Agreement, all of which data and computations
are true, complete and correct.

Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the
nature of the condition or event, the period during which it has existed and the action which the
Borrower has taken, is taking, or proposes to take with respect to each such condition or event:

 

 

 

 

 

 

The foregoing certifications, together with the computations set forth in Schedule
I hereto and the financial statements delivered with this Certificate in support hereof,
are made and delivered this            day of                ,           .

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

A-2

 

SCHEDULE I TO COMPLIANCE CERTIFICATE

Compliance as of                     ,                 with

Provisions of Sections 6.14 and 6.23 of

the Agreement

Section 6.14 — Investments and Acquisitions

	 	 	 	 	 
	1. Clause (d)
	 	 	 	 
	 
	 	 	 	 
	(a) Required:
	 	 	 	 
	 
	 	 	 	 
	(i) Combined Investments of the Borrower and
its Subsidiaries on the date of
determination:
	 	$	                    	 
	 
	 	 	 	 
	(ii) 10% of (a)(i):
	 	$	                    	 
	 
	 	 	 	 
	(b) Actual:
	 	 	 	 
	 
	 	 	 	 
	Investments in debt securities rated less than A- by S&P, A3
by Moody’s or NAIC-1 by the NAIC but rated BBB- or better by
S&P, Baa3 or better by Moody’s or NAIC-2 or better by the
NAIC on the date of determination (or downgraded from such
ratings within the last 180 days):
	 	$	                    	 
	 
	 	 	 	 
	2. Clause (e)
	 	 	 	 
	 
	 	 	 	 
	(a) Required:
	 	$	                    	 
	 
	 	 	 	 
	(i) Consolidated Net Worth of Borrower and
its Consolidated Subsidiaries on the
date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(ii) 5% of (a)(i)
	 	$	                    	 
	 
	 	 	 	 
	(b) Actual:
	 	$	                    	 

 

A-3

 

	 	 	 	 	 
	Aggregate Investment in Investments
not satisfying standards set forth in
clause (b) or (d):
	 	 	 	 
	 
	 	 	 	 
	3. Clause (f)
	 	 	 	 
	 
	 	 	 	 
	(a) Aggregate Investments in equity securities:
	 	 	 	 
	 
	 	 	 	 
	(i) Required:
	 	 	 	 
	 
	 	 	 	 
	(A) Consolidated Net
Worth of the
Borrower and its
Consolidated
Subsidiaries on the
date of
determination:
	 	$	                    	 
	 
	 	 	 	 
	(B) 20% of (a)(i)(A):
	 	$	                    	 
	 
	 	 	 	 
	(ii) Actual:
	 	 	 	 
	 
	 	 	 	 
	Aggregate Investments by the Borrower in
equity securities on the date of
determination:
	 	$	                    	 
	 
	 	 	 	 
	(b) Individual Investments:
	 	 	 	 
	 
	 	 	 	 
	(i) Required:
	 	 	 	 
	 
	 	 	 	 
	(A) Consolidated Net
Worth of the
Borrower and its
Consolidated
Subsidiaries on the
date of
determination:
	 	$	                    	 
	 
	 	 	 	 
	(B) 5% of (b)(i)(A):
	 	$	                    	 
	 
	 	 	 	 
	(ii) Actual:
	 	 	 	 
	 
	 	 	 	 
	Largest single equity securities
investment by the Borrower and its
Subsidiaries on the date of
determination:
	 	$	                    	 
	 
	 	 	 	 
	4. Clause (g)
	 	 	 	 
	 
	 	 	 	 
	(a) Required:
	 	 	 	 
	 
	 	 	 	 
	(i) Consolidated Net Worth of the Borrower
and its Consolidated Subsidiaries on the
date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(ii) 5% of (a)(i):
	 	 	 	 
	 
	 	 	 	 
	(b) Actual:
	 	 	 	 
	 
	 	 	 	 
	Other Investments on date of determination:
	 	$	                    	 

 

A-4

 

	 	 	 	 	 
	5. Clause (h)
	 	 	 	 
	 
	 	 	 	 
	(a) Required:
	 	 	 	 
	 
	 	 	 	 
	(i) Consolidated Net Worth of the Borrower
and its Consolidated Subsidiaries on the
date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(ii) 5% of (a)(i):
	 	 	 	 
	 
	 	 	 	 
	(b) Actual:
	 	 	 	 
	 
	 	 	 	 
	Amount of Acquisitions from beginning of Fiscal Year through
date of determination:
	 	$	                    	 

 

A-5

 

Section 6.23(a) — Minimum Consolidated Tangible Net Worth

	 	 	 	 	 
	Period: Fiscal Quarter ended                     ,           
	 	 	 	 
	 
	 	 	 	 
	1. Required: $672,000,000
	 	$	 	 
	 
	 	 	 	 
	2. Actual:
	 	 	 	 
	 
	 	 	 	 
	Consolidated Tangible Net Worth (excluding the effect of unrealized
gain or loss under SFAS 115):
	 	$	                    	 

Section 6.23(b) — Minimum Statutory Surplus of Navigators

	 	 	 	 	 
	Period: Fiscal Quarter ended                     ,           
	 	 	 	 
	 
	 	 	 	 
	1. Required: $549,500,000
	 	$	 	 
	 
	 	 	 	 
	2. Actual:
	 	 	 	 
	 
	 	 	 	 
	Statutory Surplus of Navigators:
	 	$	                    	 

Section 6.23(c) — Leverage Ratio

	 	 	 	 	 
	1. Required:
	 	 	0.30:1.0	 
	 
	 	 	 
	 
	 	 	 	 
	2. Actual:
	 	 	 	 
	 
	 	 	 	 
	(a) Consolidated Indebtedness of the Borrower and its Consolidated
Subsidiaries (excluding letter of credit obligations incurred in the
ordinary course of business) on date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(b) Consolidated Net Worth on date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(c) (a) plus (b):
	 	$	                    	 
	 
	 	 	 	 
	(d) Ratio of (a) to (c):
	 	 	:1.0	 
	 
	 	 	 

 

A-6

 

Section 6.23(d) — Minimum Risk-Based Capital1

	 	 	 	 	 
	1. Required:
	 	 	150	%
	 
	 	 	 
	 
	 	 	 	 
	2. Actual:
	 	 	 	 
	 
	 	 	 	 
	(a) Total Adjusted Capital on date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(b) Company Action Level RBC on date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(c) Ratio of (a) to (b) (expressed as a percentage):
	 	 	                    	%

Section 6.23(e) — Primary FAL for Year of Account 201[]

	 	 	 	 	 
	1. Required to be provided by Corporate Members:
	 	 	Greater of 
25% or 90% 
of the three 
highest net 
RDS 
scenarios	 
	 
	 	 	 	 
	2. Actual:
	 	 	 	 
	 
	 	 	 	 
	(a) Total FAL required by Lloyd’s on date of determination:
	 	$	                    	 
	 
	 	 	 	 
	(b) Amount of Primary FAL provided by Corporate Members on
the date of determination:
	 	 	 	 
	 
	 	 	 	 
	(1) Undistributed profits for closed years
	 	$	                    	 
	 
	 	 	 	 
	(2) Open year surplus/deficiency
	 	$	                    	 
	 
	 	 	 	 
	(3) Cash/assets at Lloyd’s
	 	$	                    	 
	 
	 	 	 	 
	(4) Sum of (b)(1) plus (b)(2) plus (b)(3)
	 	$	                    	 
	 
	 	 	 	 
	(c) Ratio of (a) to (b)(4) (expressed as a percentage):
	 	 	                    	%
	 
	 	 	 	 
	(d) Aggregate of three highest net RDS scenarios for any year of account:
	 	$	                    	 
	 
	 	 	 	 
	(e) 90% of (d)
	 	$	                    	 

 

	 	 	 
	1	 	To be completed for each Significant Insurance Subsidiary.

 

A-7

 

Section 6.23(f) RDS for Year of Account 201[]

	 	 	 	 	 
	Required: Maximum Net Loss from prescribed RDS permitted:
	 	 	20	%
	 
	 	 	 
	 
	 	 	 	 
	Actual (Highest RDS scenario expressed as a percentage of the total Supported
Syndicate capacity for such Year of Account):
	 	 	 	 
	 
	 	 	 	 
	(a) Total Lloyd’s prescribed Net Losses from RDS:
	 	$	                    	 
	 
	 	 	 	 
	(b) Actual Loses:
	 	$	                    	 
	 
	 	 	 	 
	(c) Ratio of (a) to (b) (expressed as a percentage):
	 	 	                    	%

 

A-8

 

EXHIBIT B

ASSIGNMENT AGREEMENT

This Assignment Agreement (this “Assignment Agreement”) between                      (the
“Assignor”) and                      (the “Assignee”) is dated as of                     . The
parties hereto agree as follows:

1. PRELIMINARY STATEMENT. The Assignor is a party to a Credit Agreement (which, as it
may be amended, modified, renewed or extended from time to time is herein called the “Credit
Agreement”) described in Item 1 of Schedule 1 attached hereto (“Schedule 1”).
Capitalized terms used herein and not otherwise defined herein shall have the meanings attributed
to them in the Credit Agreement.

2. ASSIGNMENT AND ASSUMPTION. The Assignor hereby sells and assigns to the Assignee,
and the Assignee hereby purchases and assumes from the Assignor, an interest in and to the
Assignor’s rights and obligations under the Credit Agreement such that after giving effect to such
assignment the Assignee shall have purchased pursuant to this Assignment Agreement the percentage
interest specified in Item 3 of Schedule 1 of all outstanding rights and obligations under
the Credit Agreement relating to the loans listed in Item 3 of Schedule 1 and the other
Facility Documents.

3. EFFECTIVE DATE. The effective date of this Assignment Agreement (the
“Effective Date”) shall be the later of the date specified in Item 5 of Schedule 1
or the date the Administrative Agent advises that the beneficiaries of Letters of Credit have
accepted the amendments or replacements of the Letters of Credit to reflect such assignment and a
Notice of Assignment substantially in the form of Exhibit I attached hereto has been
delivered to the Administrative Agent. Such Notice of Assignment must include any consents
required to be delivered to the Administrative Agent by Section 12.3(a) of the Credit Agreement.
In no event will the Effective Date occur if the payments required to be made by the Assignee to
the Assignor on the Effective Date under Sections 4 and 5 hereof are not made on
the proposed Effective Date or if any other condition precedent agreed to by the Assignor and the
Assignee has not been satisfied. The Assignor will notify the Assignee of the proposed Effective
Date not later than the Business Day prior to the proposed Effective Date. As of the Effective
Date, (i) the Assignee shall have the rights and obligations of a Lender under the Facility
Documents with respect to the rights and obligations assigned to the Assignee hereunder and (ii)
the Assignor shall relinquish its rights and be released from its corresponding obligations under
the Facility Documents with respect to the rights and obligations assigned to the Assignee
hereunder.

4. PAYMENT OBLIGATIONS. On and after the Effective Date, the Assignee shall be
entitled to receive from the Administrative Agent all payments of principal, interest and fees with
respect to the interest assigned hereby. The Assignee shall advance funds directly to the
Administrative Agent with respect to all reimbursement payments made on or after the Effective Date
with respect to the interest assigned hereby. In the event that either party hereto receives any
payment to which the other party hereto is entitled under this Assignment Agreement, then the party
receiving such amount shall promptly remit it to the other party hereto.

 

 

 

5. FEES PAYABLE BY THE ASSIGNEE. The Assignee agrees to pay the $3,500 processing fee
required to be paid to the Administrative Agent in connection with this Assignment Agreement.

6. REPRESENTATIONS OF THE ASSIGNOR; LIMITATIONS ON THE ASSIGNOR’S LIABILITY. The
Assignor represents and warrants that it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear of any adverse claim created by
the Assignor. It is understood and agreed that the assignment and assumption hereunder are made
without recourse to the Assignor and that the Assignor makes no other representation or warranty of
any kind to the Assignee. Neither the Assignor nor any of its officers, directors, employees,
agents or attorneys shall be responsible for (i) the due execution, legality, validity,
enforceability, genuineness, sufficiency or collectability of any Facility Document, including
without limitation, documents granting the Assignor and the other Lenders a security interest in
assets of the Borrower or any guarantor, (ii) any representation, warranty or statement made in any
Facility Document or in connection with any of the Facility Documents, (iii) the financial
condition or creditworthiness of the Borrower or any guarantor, (iv) the performance of or
compliance with any of the terms or provisions of any of the Facility Documents, (v) inspecting any
of the Property, books or records of the Borrower, (vi) the validity, enforceability, perfection,
priority, condition, value or sufficiency of any collateral securing or purporting to secure the
Reimbursement Obligations or (vii) any mistake, error of judgment, or action taken or omitted to be
taken in connection with the Letters of Credit or the Facility Documents.

7. REPRESENTATIONS OF THE ASSIGNEE. The Assignee (i) confirms that it has received a
copy of the Credit Agreement, together with copies of the financial statements requested by the
Assignee and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment Agreement, (ii) agrees that it will,
independently and with reliance upon the Administrative Agent, the Assignor or any other Lender and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under the Facility Documents, (iii)
appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to
exercise such powers under the Facility Documents as are delegated to the Administrative Agent by
the terms thereof, together with such powers as are reasonably incidental thereto, (iv) agrees that
it will perform in accordance with their terms all of the obligations which by the terms of the
Facility Documents are required to be performed by it as a Lender, (v) agrees that its payment
instructions and notice instructions are as set forth in the attachment to Schedule 1, (vi)
confirms that none of the funds, monies, assets or other consideration being used to make the
purchase and assumption hereunder are “plan assets” as defined under ERISA and that its rights,
benefits and interests in and under the Facility Documents will not be “plan assets” under ERISA,
[and (vii) attaches the forms prescribed by the Internal Revenue Service of the United States
certifying that the Assignee is entitled to receive payments under the Facility Documents without
deduction or withholding of any United States federal income taxes].

8. INDEMNITY. The Assignee agrees to indemnify and hold the Assignor harmless against
any and all losses, costs and expenses (including, without limitation, reasonable attorneys’ fees)
and liabilities incurred by the Assignor in connection with or arising in any
manner from the Assignee’s non-performance of the obligations assumed under this Assignment
Agreement.

 

B-2

 

9. SUBSEQUENT ASSIGNMENTS. After the Effective Date, the Assignee shall have the
right pursuant to Section 12.3(a) of the Credit Agreement to assign the rights which are assigned
to the Assignee hereunder to any entity or person, provided that (i) any such subsequent
assignment does not violate any of the terms and conditions of the Facility Documents or any law,
rule, regulation, order, writ, judgment, injunction or decree and that any consent required under
the terms of the Facility Documents has been obtained and (ii) unless the prior written consent of
the Assignor is obtained, the Assignee is not hereby released from its obligations to the Assignor
hereunder, if any remain unsatisfied, including, without limitation, its obligations under
Sections 4, 5 and 8 hereof.

10. REDUCTIONS OF AGGREGATE COMMITMENT. If any reduction in the Letter of Credit
Commitment occurs between the date of this Assignment Agreement and the Effective Date, the
percentage interest specified in Item 3 of Schedule 1 shall remain the same, but the dollar
amount purchased shall be recalculated based on the reduced Letter of Credit Commitment, as the
case may be.

11. ENTIRE AGREEMENT. This Assignment Agreement and the attached Notice of Assignment
embody the entire agreement and understanding between the parties hereto and supersede all prior
agreements and understandings between the parties hereto relating to the subject matter hereof.

12. GOVERNING LAW. This Assignment Agreement shall be governed by the internal law,
and not the law of conflicts, of the State of New York, without regards to the conflict of law
provisions thereof other than Sections 5-1401 and 5-1402 of the New York General Obligations Laws,
but giving effect to Federal laws applicable to national banks.

13. NOTICES. Notices shall be given under this Assignment Agreement in the manner set
forth in the Credit Agreement. For the purpose hereof, the addresses of the parties hereto (until
notice of a change is delivered) shall be the address set forth in the attachment to Schedule
1.

[signature page follows]

 

B-3

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement by their duly
authorized officers as of the date first above written.

	 	 	 	 	 
	 	[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title:  

	 
	 	 	Address:  

 

 

	 
	 
	 	[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title:  

	 
	 	 	Address:  

 

 

	 

 

B-4

 

SCHEDULE 1

TO ASSIGNMENT AGREEMENT

	1.	 	Description and Date of Credit Agreement:

	 
	 	 	That certain Funds at Lloyd’s Letter of Credit Agreement, dated as of
March 28, 2011, among the Navigators Group, Inc., the financial
institutions named therein, and ING Bank N.V., London Branch, as
Administrative Agent and Letter of Credit Agent.

	 
	2.	 	Date of Assignment Agreement:                     

	 
	3.	 	Amounts (As of Date of Item 2 above):

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Letter of Credit	 
	 	 	 	 	 	 	Facility	 
	 

	 	(a)
	 	Aggregate and Letter of
Credit Commitment (total
outstanding Letter of
Credit Obligations)*
under Credit Agreement
	 	$                    	 
	 
	 	 	 	 	 	 	 
	 

	 	(b)
	 	Assignee’s Percentage of
Facility purchased under
the Assignment Agreement
(taken to five decimal
places);
	 	                    	%
	 
	 	 	 	 	 	 	 
	 

	 	(c)
	 	Amount of Assigned Share
in Facility purchased
under the Assignment
Agreement:
	 	$                    	 
	 
	 	 	 	 	 	 	 
	4.	 	Total of Letter of Credit Participation Amount
(outstanding Letter of Credit Obligations)*
purchased hereunder:	 	 	 
	 
	 	 	 	 	 	 	 
	5.	 	Proposed Effective Date:	 	                    	 

	 	 	 
	*	 	If the Letter of Credit Commitment has been terminated, insert total outstanding Letter of
Credit Obligations in place of Letter of Credit Commitment or Letter of Credit Participation
Amount, as the case may be.

 

B-5

 

	 	 	 	 	 	 	 	 	 
	Accepted and Agreed:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	[NAME OF ASSIGNOR]	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Title:
	 	 	 	 

Title:
	 	 
	 

	 	 

	 	 	 	 

	 	 

 

B-6

 

ATTACHMENT TO SCHEDULE 1 to ASSIGNMENT AGREEMENT

ADMINISTRATIVE INFORMATION SHEET

Attach Assignor’s Administrative Information Sheet, which must

include notice addresses for the Assignor and the Assignee

(Sample form shown below)

ASSIGNOR INFORMATION

Contact:

	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Telephone No.:	 	 	 	 
	Fax No.:

	 	 

	 	 	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 

Payment Information:

	 	 	 	 	 
	Name & ABA # of Destination Bank:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Account Name & Number for Wire Transfer:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Other Instructions:
	 	 	 	 
	 

	 	 

	 	 
	 	 	 

	 	 	 	 	 
	Address for Notices for Assignee:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

ASSIGNEE INFORMATION

Credit Contact:

	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Telephone No.:	 	 	 	 
	Fax No.:

	 	 

	 	 	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 

 

B-7

 

Key Operations Contacts:

	 	 	 	 	 
	Booking Installation:

	 	Booking Installation:	 	 
	 

Name:

	 	 

Name:
	 	 
	 

Telephone No.:

	 	 

Telephone No.:
	 	 
	 

Fax No.:

	 	 

Fax No.:
	 	 
	 

	 	 

	 	 

Payment Information:

	 	 	 	 	 
	Name & ABA # of Destination Bank:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Account Name & Number for Wire Transfer:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Other Instructions:
	 	 	 	 
	 

	 	 

	 	 
	 	 	 

	 	 	 	 	 
	Address for Notices for Assignor:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

 

B-8

 

EXHIBIT I

TO ASSIGNMENT AGREEMENT

NOTICE

OF ASSIGNMENT

                    , __

	 	 	 
	To:

	 	The Navigators Group, Inc.
	 
	 	 
	 

	 	ING Bank N.V., London Branch, as Administrative Agent and Letter of Credit Agent
	 
	 	 
	From:

	 	[NAME OF ASSIGNOR] (the “Assignor”)
	 

	 	[NAME OF ASSIGNEE] (the “Assignee”)

1. We refer to that certain Credit Agreement (the “Credit Agreement”) described in
Item 1 of Schedule 1 attached hereto (“Schedule 1”). Capitalized terms used herein
and not otherwise defined herein shall have the meanings attributed to them in the Credit
Agreement.

2. This Notice of Assignment (the “Notice of Assignment”) is given and delivered to
[the Borrower and] the Administrative Agent pursuant to Section 12.3(b) of the Credit Agreement.

3. The Assignor and the Assignee have entered into an Assignment Agreement, dated as of
                    ,
 _____ 
(the “Assignment Agreement”), pursuant to which, among other things, the
Assignor has sold, assigned, delegated and transferred to the Assignee, and the Assignee has
purchased, accepted and assumed from the Assignor the percentage interest specified in Item 3 of
Schedule 1 of all outstandings, rights and obligations under the Credit Agreement relating
to the facilities listed in Item 3 of Schedule 1. The Effective Date of the Assignment
Agreement shall be the later of the date specified in Item 5 of Schedule 1 or two Business
Days (or such shorter period as agreed to by the Administrative Agent) after this Notice of
Assignment and any consents and fees required by Sections 12.3(a) and 12.3(b) of the Credit
Agreement have been delivered to the Administrative Agent; provided that the Effective Date
shall not occur if any condition precedent agreed to by the Assignor and the Assignee has not been
satisfied.

4. The Assignor and the Assignee hereby give to the Borrower and the Administrative Agent
notice of the assignment and delegation referred to herein. The Assignor will confer with the
Administrative Agent before the date specified in Item 5 of Schedule 1 to determine if the
Assignment Agreement will become effective on such date pursuant to Section 3 hereof, and
will confer with the Administrative Agent to determine the Effective Date pursuant to Section
3 hereof if it occurs thereafter. The Assignor shall notify the Administrative Agent if the
Assignment Agreement does not become effective on any proposed Effective Date as a result of the
failure to satisfy the conditions precedent agreed to by the Assignor and the Assignee. At the
request of the Administrative Agent, the Assignor will give the Administrative Agent written
confirmation of the satisfaction of the conditions precedent.

 

B-9

 

5. The Assignor or the Assignee shall pay to the Administrative Agent on or before the
Effective Date the processing fee of $3,500 required by Section 12.3(b) of the Credit Agreement.

6. The Assignee advises the Administrative Agent that notice and payment instructions are set
forth in the attachment to Schedule 1.

7. The Assignee hereby represents and warrants that none of the funds, monies, assets or other
consideration being used to make the purchase pursuant to the Assignment Agreement are “plan
assets” as defined under ERISA and that its rights, benefits, and interests in and under the
Facility Documents will not be “plan assets” under ERISA.

8. The Assignee authorizes each of the Administrative Agent and the Letter of Credit Agent to
act as its agent under the Facility Documents in accordance with the terms thereof. The Assignee
acknowledges that the Administrative Agent has no duty to supply information with respect to the
Borrower or the Facility Documents to the Assignee until the Assignee becomes a party to the Credit
Agreement.

9. Pursuant to Clause 16 (Security Trustee provisions) of the deed of charge dated on or about
28 March 2011 and made between (amongst others) (1) the Borrower as chargor and ING Bank, N.V. in
its capacity as security trustee (the “Deed of Charge”), the Assignee confirms its agreement to (a)
irrevocably appoint the Security Trustee (as that term is defined in the Credit Agreement) as
trustee under the Security Documents (as that term is defined in the Deed of Charge) in its
capacity as a Secured Party (as that term is defined in the Deed of Charge) and (b) to be bound by
the terms of the Deed of Charge as if it had been a Secured Party from the date of the Deed of
Charge. By countersigning this Assignment Agreement, the Security Trustee hereby accepts the
appointment by the Assignee as its trustee under the Deed of Charge and this paragraph shall be
governed by, and construed in accordance with, English law and shall take effect and be binding on
all parties notwithstanding that neither the Assignee nor the Security Trustee have, as a matter of
English law, executed this Assignment Agreement as a deed.

	 	 	 	 	 	 	 	 	 
	[NAME OF ASSIGNOR]	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Title:
	 	 	 	 

Title:
	 	 
	 

	 	 

	 	 	 	 

	 	 

 

B-10

 

	 	 	 	 	 	 	 	 	 
	ACKNOWLEDGED AND CONSENTED TO BY
ING Bank N.V., London Branch, as
Administrative Agent, Letter of
Credit Agent and Security Trustee	 	ACKNOWLEDGED AND CONSENTED TO BY THE
NAVIGATORS GROUP, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Title:
	 	 	 	 

Title:
	 	 
	 

	 	 

	 	 	 	 

	 	 

[Attach photocopy of Schedule 1 to Assignment Agreement]

 

B-11

 

EXHIBIT C

REIMBURSEMENT AGREEMENT EXCERPT

This Letter of Credit is issued under, and is subject to the terms and conditions of, that certain
Funds at Lloyd’s Letter of Credit Agreement, dated as of March 28, 2011, as amended, among The
Navigators Group, Inc., a Delaware corporation, certain financial institutions and ING Bank N.V.,
London Branch, as Administrative Agent and Letter of Credit Agent (the “Credit Agreement”).
In the event of a conflict between the terms and conditions of this letter of credit application
and those of the Credit Agreement, the terms and conditions of the Credit Agreement shall govern.

 

C-1

 

EXHIBIT D

FORM OF BORROWING BASE CERTIFICATE

	 	 	 
	To:

	 	ING, N.V. London Branch,
	 

	 	as Administrative Agent
	 

	 	60 London Wall
	 

	 	London EC2M 5TQ
	 

	 	United Kingdom
	 
	 	 
	Re:

	 	The Navigators Group, Inc.

Ladies and Gentlemen:

Please refer to that certain Funds at Lloyd’s Letter of Credit Agreement, dated as of March
28, 2011 (as amended, modified, renewed or extended from time to time, the “Agreement”),
among The Navigators Group, Inc. (the “Borrower”), the lenders party thereto, and ING Bank
N.V., London Branch, as Administrative Agent and Letter of Credit Agent.. This Certificate,
together with supporting calculations attached hereto set forth in reasonable detail, is delivered
to you pursuant to the terms of the Credit Agreement. Capitalized terms used but not otherwise
defined herein shall have the same meanings herein as in the Credit Agreement.

We hereby certify and warrant to the Administrative Agent, Letter of Credit Agent and the
Lenders that at the close of business on                     ,
 _____ 
(the “Borrowing Base Calculation
Date”), the Borrowing Base for the undersigned was $                     and the outstanding Letters of
Credit Obligations was $                    

We hereby further certify and warrant to the Administrative Agent, the Letter of Credit Agent
and the Lenders that the information and computations contained herein are true and correct in all
material respects as of the Borrowing Base Calculation Date.

IN WITNESS WHEREOF, the Borrower has caused this Certificate to be executed and delivered by
an authorized office this
 _____ 
day of                     ,
 _____.

	 	 	 	 	 
	 	THE NAVIGATORS GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

 

 

 

SCHEDULE I TO BORROWING BASE CERTIFICATE

DATED AS OF:                     

[FORM TO BE AGREED UPON BY ADMINISTRATIVE AGENT AND NAVIGATORS]

 

D-2

 

EXHIBIT E

FORM OF SECURITY AGREEMENT

[OMMITTED]

 

 

 

EXHIBIT F

FORM OF FIXED CHARGE

[OMITTED]

 

 

 

EXHIBIT G

FORM OF LETTER OF CREDIT

	 	 	 
	To:
	 	 
	The Society and Council of Lloyd’s,
	 	 
	c/o The Manager, Market Services,
	 	 
	Fidentia House
	 	 
	Walter Burke Way
	 	 
	Chatham,
	 	 
	Kent ME4 4RN

	 	Date:

Dear Sirs,

Irrevocable Standby Letter of Credit No. xxxxxxxxxxxx

Re: xxxxxxxxxxxxx (the ‘Applicant’)

This Clean Irrevocable Standby Letter of Credit (the ‘Credit’) is issued by the banks whose names
are set out in Schedule 1 hereto (the ‘Issuing Lenders’, and each an ‘Issuing Lender’) in favour of
the Society of Lloyd’s (‘Lloyd’s’) on the following terms:

	1.	 	Subject to the terms hereof, the Issuing Lenders shall make payments within two business days
of demand on ING Bank N.V., London Branch (the ‘Agent’) in accordance with paragraph 4 below.

	2.	 	Upon a demand being made by Lloyd’s pursuant to paragraph 4 below each Issuing Lender shall
pay that proportion of the amount demanded which is equal to the proportion which its
Commitment set out in Schedule 1 hereto bears to the aggregate Commitments of all the Issuing
Lenders set out in Schedule 1 hereto provided that the obligations of the Issuing Lenders
under this Credit shall be several and no Issuing Lender shall be required to pay an amount
exceeding its Commitment set out in Schedule 1 hereto and the Issuing Lenders shall not be
obliged to make payments hereunder in aggregate exceeding a maximum amount of xxxxx (figures
and words). Any payment by an Issuing Lender hereunder shall be made in US Dollars to Lloyd’s
account specified in the demand made by Lloyd’s pursuant to paragraph 4 below.

	3.	 	This Credit is effective from xxxxxxxxxxx (the ‘Commencement Date’) and will expire on the
Final Expiration Date. This Credit shall remain in force until we give you not less than four
years notice in writing terminating the same on the fourth anniversary of the Commencement
Date or on any date subsequent thereto as specified in such notice (the ‘Final Expiration
Date’), our notice to be sent by registered mail for the attention of the Manager, Market
Services, at the above address.

 

 

 

	4.	 	Subject to paragraph 3 above, the Issuing Lenders shall pay to Lloyd’s under this Credit upon
presentation of a demand by Lloyd’s on the Agent, ING Bank N.V., 60 London Wall, London, EC2M
5TQ, marked ‘For the attention of Documentary Credits/Agency Department’ substantially in the
form set out in Schedule 2 hereto the amount specified therein (which amount shall not, when
aggregated with all the other amounts paid by the Issuing Lenders to Lloyd’s under this
Credit, exceed the maximum amount referred to in paragraph 2 above).

	5.	 	The Agent has signed this Credit as agent for disclosed principals and accordingly shall be
under no obligation to Lloyd’s hereunder other than in its capacity as an Issuing Bank.

	6.	 	All charges are for the Applicants account.

	7.	 	Subject to any contrary indication herein, this Credit is subject to the International
Standby Practices- ISP98 (1998 Publication International Chamber of Commerce Publication No.
590).

	8.	 	This Credit shall be governed by and interpreted in accordance with English Law and the
Issuing Lenders hereby irrevocably submit to the jurisdiction of the High Court of Justice in
England.

	9.	 	Each of the Issuing Lenders engages with Lloyd’s that demands made under and in compliance
with the terms and conditions of this Credit shall be duly honoured on presentation.

Yours faithfully

ING Bank N.V., London Branch, as Agent:

for and on behalf of

ING Bank N.V., London Branch

xxxxxxxxxxxxxxxx

For and on behalf of

ING Bank N.V., London Branch

	 	 	 
	Name:

	 	Name:
	Title: Authorised signatory

	 	Title: Authorised signatory

 

G-2

 

Attaching to and forming an integral part of Irrevocable Standby Letter of Credit No. xxxxxxxxxx
dated xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx.

Schedule 1

Issuing Lenders Commitments

	 	 	 
	Name and address of Issuing Lender

	 	Commitment (USD)
	 
	 	 
	Total Value

	 	USD

 

G-3

 

Attaching to and forming an integral part of Irrevocable Standby Letter of Credit No. xxxxxxxxxxx
dated xxxxxxxxxxxx.

Schedule 2

Form of Demand

[on Lloyd’s letterhead]

Dear Sir/Madam,

The Society of Lloyd’s

Trustee of

Letter of credit No. xxxxxxxxxxxx dated xxxxxxxxxxxxx

With reference to the above, we enclose for your attention a Bill of Exchange, together with the
respective Letter of Credit. Payment should be made by way of CHAPS. The account details are as
follows:

	 	 	 
	National Westminster Bank Plc

	 	Sort Code 60.00.01
	City of London Office

	 	Account 13637444
	P.O. Box 12258
	 	 
	1 Princes Street
	 	 
	London EC2R 8AP
	 	 

	 	 	 	 	 
	Please quote Member Code:

Yours faithfully

For Manager

Market Services

 	 	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

G-4

 

Attaching to and forming an integral part of Irrevocable Standby Letter of Credit No. xxxxxxxxxxx
dated xxxxxxxxxxxxxxxxxxxxxxx.

Schedule 2

Page 2

	 	 	 
	Your ref:
	 	 
	Our ref:

	 	MEM/ / / /C911f
	Extn:
	 	 

BILL OF EXCHANGE

The Society of Lloyd’s

Trustee of

Letter of Credit No xxxxxxxxxxxxxx dated xxxxxxxxxxxxxxxxx.

Please pay in accordance with the terms of the Letter of Credit to our order the amount of USD______

For and on behalf of

Authorised Signatory

Market Services

			
	To:	 	ING Bank N.V.,
London Branch,
as the Agent

 

G-5

 

EXHIBIT H

FORM OF LLOYD’S COMFORT LETTER

Your reference

Our reference MS/Mem Ser/NM/053617S&053575B

                    , 2011

ADDRESSED TO ACCOUNT PARTY

AND ADMINISTRATIVE AGENT

RE: Navigators Group Inc. and ING Bank N.V., London Branch

I understand that Navigators Corporate Underwriters Ltd and Millennium Underwriting Ltd (the
“Corporate Members”) is about to procure the provision to Lloyd’s of acceptable assets to form its
Funds at Lloyd’s. The acceptable assets are listed in the First Schedule to this letter. You have
asked whether, in the event of monies having to be applied out of the Corporate Members’ Funds at
Lloyd’s, the Funds at Lloyd’s of the Corporate Members’ may be drawn down in pre-determined order
and proportions as set out in the Second Schedule to this letter.

As you are aware, the Funds at Lloyd’s are held by Lloyd’s in its capacity as trustee under the
terms of the Deposit Trust Deed (substantially in the form DTD (CM) Gen 10) and the Security and
Trust Deed (substantially in the form STD (CM) Gen 10) and interavailable (I/A) deed held been the
members (STD (I/A-CM) (GEN) (10)) entered into by the corporate members’. Any decision to draw
down on any Funds at Lloyd’s involves an exercise of discretion in the light of the circumstances
prevailing at the relevant time, and thus no binding undertaking can be given now.

However, I can confirm that at the time of considering the drawdown of the Corporate Members’ Funds
at Lloyd’s, Lloyd’s would take into account the request order of drawdown set out in this letter
and the Second Schedule to it.

For the avoidance of doubt, Lloyd’s shall not be responsible to you or any other person for any
losses incurred by you or such other person as a consequence of acting in reliance upon this
letter.

For and on behalf of

The Society and Council of Lloyd’s

Authorized Signatory

	 	 	 
	Telephone

	 	01634 3492940 
	Fax

	 	01634 392366 
	Email

	 	neil.marsh@lloyds.com

 

 

 

The First Schedule

Funds at Lloyd’s

(with respect to Name of Account Party)

	 	 	 	 	 
	FAL provider	 	Amount
	 
	 	 	 	 
	Syndicated letter of credit (agent bank: ING Bank N.V., London Branch) — DTGBLG404602
	 	GBP 1,500,000.00
	 
	 	 	 	 
	Syndicated letter of credit (agent bank: ING Bank N.V., London Branch) — DTGBLG404603
	 	GBP 5,689,000.00
	 
	 	 	 	 
	Syndicated letter of credit (agent bank: ING Bank N.V., London Branch) — DTGBLG404604
	 	GBP 17,500,000.00
	 
	 	 	 	 
	Syndicated letter of credit (agent bank: ING Bank N.V., London Branch) — DTGBLG404605
	 	GBP 32,383,000.00
	 
	 	 	 	 
	Syndicated letter of credit (agent bank: ING Bank N.V., London Branch) — DTGBLG404606
	 	GBP 12,624,000.00
	 
	 	 	 	 
	Syndicated letter of credit (agent bank: ING Bank N.V., London Branch) — DTGBLG404607
	 	GBP 12,804,000.00
	 
	 	 
	 
	 	 	 	 
	Total Syndicated letter of credit
	 	GBP 82,500,000.00
	 
	 	 	 	 
	Funds held in Syndicate 1221 (Undistributed closed years profits and open years surplus/deficiency)
	 	GBP 41,106,618.00
	 
	 	 	 	 
	Cash (Millennium Underwriting Ltd “MUL” — Personal Reserve Fund)
	 	GBP 699,372.87
	 
	 	 	 	 
	Cash (Navigators Corporate Underwriters Ltd “NCUL” — Personal Reserve Fund)
	 	GBP 483,727.92
	 
	 	 	 	 
	Cash (NCUL — General Deposit)
	 	GBP 38,780.78

 

H-2

 

The Second Schedule

Order of drawdown of Funds at Lloyd’s

(with respect Name of Account Party)

	(a)	 	first, the GBP38,780.78 value in cash (NCUL General deposit) as at December 31, 2010 until
exhausted;

	(b)	 	second, the GBP483,727.92 value in cash (NCUL Personal Reserve Fund) as at December 31, 2010
until exhausted;

	(c)	 	third, the GBP699,372.87 value in cash (MUL Personal Reserve Fund) as at December 31, 2010
until exhausted;

	(d)	 	fourth, the GBP41,106,618 value in cash and securities (Funds held in Syndicate 1221) as at
December 31, 2010 until exhausted;

	(e)	 	fifth, the syndicated letter of credit (agent bank: ING Bank N.V., London Branch) in
the maximum aggregate amount of GBP82,500,000.00

 

H-3

 

Schedule 5.9

Subsidiaries

	 	 	 	 	 	 	 	 	 
	 	 	 	 	% ownership by the	 	 	 	 
	 	 	State of	 	Borrower or a Subsidiary	 	Insurance	 	Significant
	Subsidiary	 	Incorporation	 	as otherwise indicated	 	Company	 	Subsidiary
	 
	 	 	 	 	 	 	 	 
	Navigators
Insurance Company

	 	New York
	 	100% 
	 	Yes
	 	Yes
	Navigators
Specialty Insurance
Company

	 	New York
	 	100% Navigators
Insurance Co.
	 	Yes	 	 
	Navigators
Management Company,
Inc.

	 	New York
	 	100% 	 	 	 	 
	Navigators
Corporate
Underwriters Ltd.

	 	U.K.
	 	100% Navigators
Holdings (UK) Ltd.	 	 	 	 
	Navigators
Management (UK)
Ltd.

	 	U.K.
	 	100% Navigators
Holdings (UK) Ltd.	 	 	 	 
	Navigators Holdings
(UK) Ltd.

	 	U.K.
	 	100% 	 	 	 	 
	Navigators
Underwriting Agency
Ltd.

	 	U.K.
	 	100% Navigators
Holdings (UK) Ltd.	 	 	 	 
	Millennium
Underwriting Ltd.

	 	U.K.
	 	100% Navigators
Underwriting Agency
Ltd.	 	 	 	 
	Navigators
Underwriting Ltd.

	 	U.K.
	 	100% Navigators
Underwriting Agency
Ltd.	 	 	 	 
	Navigators NV

	 	Belgium
	 	100% Navigators
Underwriting Agency
Ltd.	 	 	 	 
	NUAL AB

	 	Sweden
	 	100% Navigators
Underwriting Agency
Ltd.	 	 	 	 
	Navigators A/S

	 	Denmark
	 	100% Navigators
Holdings (UK) Ltd.	 	 	 	 

Schedule 5.9

 

 

 

Schedule 5.22

Partnerships

None

Schedule 5.22

 

 

 

Schedule 5.23

Lines of Business

The Borrower and its Subsidiaries are active in the following lines of business:

Accident

Health

Reinsurance

Property

Commercial Multi Peril

Ocean Marine

Inland Marine

Other Liability

Commercial Auto Liability

Auto Physical Damage

Aircraft

Surety

Multiple Peril Crop

Schedule 5.23

 

 

 

Schedule 6.16

Liens

UCC-1 in favor of Dell Financial Services L.P. filed in the Division of Corporations of the
Delaware Secretary of State on 9/18/01 (and continued on 8/25/06) under File No. 1118020 covering
leased equipment.

Schedule 6.16

 

 

 

Schedule 6.21

Reinsurance Guidelines

	•	 	Minimum A.M. Best rating of “A-” and

	•	 	Policyholders’ surplus of (i) US $250 million or (ii) US $200 and part of a group
with combined statutory surplus of $350 million

	•	 	Or, if not rated by A.M. Best, an equivalent rating from a major rating agency
along with the following:

	 	•	 	Shareholder’s funds must be in excess of US $250 million

For purpose of this Credit Agreement, the following applies, net of any collateral from the
reinsurers:

	1.	 	Reinsurers constituting the lessor of $10,000,000 or 25% of the credit risk on any
reinsurance program can be outside of the above guidelines.

	2.	 	Any reinsurer, falling within the Reinsurance Guidelines, rated A- or below cannot exceed an
aggregate exposure across all programs of 66 2/3% of the Consolidated Surplus of the Insurance
Subsidiaries.

Schedule 6.21Exhibit 4.1

Exhibit 4.1

INDENTURE

Dated as of October 13, 2010

Among

CAREY ACQUISITION CORP.,

CAREY NEW FINANCE, INC.,

ASSOCIATED MATERIALS, LLC,

THE GUARANTORS NAMED ON THE SIGNATURE PAGES HERETO

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee and Notes Collateral Agent

9.125% SENIOR SECURED NOTES DUE 2017

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	310 (a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	7.10
	(b)
	 	7.10
	311(a)
	 	7.11
	(b)
	 	7.11
	312(a)
	 	2.05
	(b)
	 	13.03
	(c)
	 	13.03
	313(a)
	 	7.06
	(b)(1)
	 	N.A.
	(b)(2)
	 	7.06; 7.07
	(c)
	 	7.06; 13.02
	(d)
	 	7.06
	314(a)
	 	4.03; 4.04; 6.01;
13.02; 13.05
	(b)
	 	6.01
	(c)(1)
	 	6.01; 13.04
	(c)(2)
	 	6.01; 13.04
	(c)(3)
	 	6.01
	(d)
	 	6.01
	(e)
	 	13.05
	(f)
	 	N/A
	315(a)
	 	7.01
	(b)
	 	7.05; 13.02
	(c)
	 	7.01
	(d)
	 	7.01
	(e)
	 	6.14
	316(a)(last sentence)
	 	2.09
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	6.07
	(c)
	 	2.12; 9.04
	317(a)(1)
	 	6.08
	(a)(2)
	 	6.12
	(b)
	 	2.04
	318(a)
	 	13.01
	(b)
	 	N.A.
	(c)
	 	13.01

	 	 	 
	N.A. means not applicable.
	 
	*	 	This Cross-Reference Table is not part of the Indenture.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1

	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE

	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Other Definitions
	 	 	39	 
	Section 1.03 Incorporation by Reference of Trust Indenture Act
	 	 	40	 
	Section 1.04 Rules of Construction
	 	 	40	 
	Section 1.05 Acts of Holders
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 2

	 
	 	 	 	 
	THE NOTES

	 
	 	 	 	 
	Section 2.01 Form and Dating; Terms
	 	 	42	 
	Section 2.02 Execution and Authentication
	 	 	44	 
	Section 2.03 Registrar and Paying Agent
	 	 	44	 
	Section 2.04 Paying Agent to Hold Money in Trust
	 	 	45	 
	Section 2.05 Holder Lists
	 	 	45	 
	Section 2.06 Transfer and Exchange
	 	 	45	 
	Section 2.07 Replacement Notes
	 	 	56	 
	Section 2.08 Outstanding Notes
	 	 	57	 
	Section 2.09 Treasury Notes
	 	 	57	 
	Section 2.10 Temporary Notes
	 	 	57	 
	Section 2.11 Cancellation
	 	 	58	 
	Section 2.12 Defaulted Interest
	 	 	58	 
	Section 2.13 CUSIP Numbers
	 	 	58	 
	Section 2.14 Global Notes
	 	 	59	 
	 
	 	 	 	 
	ARTICLE 3

	 
	 	 	 	 
	REDEMPTION

	 
	 	 	 	 
	Section 3.01 Notices to Trustee
	 	 	59	 
	Section 3.02 Selection of Notes to Be Redeemed or Purchased
	 	 	59	 
	Section 3.03 Notice of Redemption
	 	 	59	 
	Section 3.04 Effect of Notice of Redemption
	 	 	60	 
	Section 3.05 Deposit of Redemption or Purchase Price
	 	 	61	 
	Section 3.06 Notes Redeemed or Purchased in Part
	 	 	61	 
	Section 3.07 Optional Redemption
	 	 	61	 
	Section 3.08 Mandatory Redemption
	 	 	62	 
	Section 3.09 Offers to Repurchase by Application of Excess Proceeds or Excess ABL Proceeds
	 	 	62	 

 

-i- 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 4

	 
	 	 	 	 
	COVENANTS

	 
	 	 	 	 
	Section 4.01 Payment of Notes
	 	 	64	 
	Section 4.02 Maintenance of Office or Agency
	 	 	64	 
	Section 4.03 Reports and Other Information
	 	 	65	 
	Section 4.04 Compliance Certificate
	 	 	67	 
	Section 4.05 Taxes
	 	 	67	 
	Section 4.06 Stay, Extension and Usury Laws
	 	 	67	 
	Section 4.07 Limitation on Restricted Payments
	 	 	67	 
	Section 4.08 Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	74	 
	Section 4.09 Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred Stock
	 	 	76	 
	Section 4.10 Asset Sales
	 	 	82	 
	Section 4.11 Transactions with Affiliates
	 	 	86	 
	Section 4.12 Liens
	 	 	88	 
	Section 4.13 Corporate Existence
	 	 	89	 
	Section 4.14 Offer to Repurchase Upon Change of Control
	 	 	89	 
	Section 4.15 Additional Guarantees
	 	 	91	 
	Section 4.16 Discharge and Suspension of Covenants
	 	 	91	 
	Section 4.17 [Reserved]
	 	 	92	 
	Section 4.18 Restrictions on Activities of the Co-Issuer
	 	 	92	 
	Section 4.19 Further Assurances; After Acquired Property
	 	 	92	 
	Section 4.20 Information Regarding Collateral
	 	 	92	 
	 
	 	 	 	 
	ARTICLE 5

	 
	 	 	 	 
	SUCCESSORS

	 
	 	 	 	 
	Section 5.01 Merger, Consolidation or Sale of All or Substantially All Assets
	 	 	93	 
	Section 5.02 Successor Corporation Substituted
	 	 	95	 
	 
	 	 	 	 
	ARTICLE 6

	 
	 	 	 	 
	DEFAULTS AND REMEDIES

	 
	 	 	 	 
	Section 6.01 Events of Default
	 	 	95	 
	Section 6.02 Acceleration
	 	 	98	 
	Section 6.03 Other Remedies
	 	 	99	 
	Section 6.04 Waiver of Past Defaults
	 	 	99	 
	Section 6.05 Control by Majority
	 	 	99	 
	Section 6.06 Limitation on Suits
	 	 	99	 
	Section 6.07 Rights of Holders of Notes to Receive Payment
	 	 	100	 
	Section 6.08 Collection Suit by Trustee
	 	 	100	 
	Section 6.09 Restoration of Rights and Remedies
	 	 	100	 
	Section 6.10 Rights and Remedies Cumulative
	 	 	100	 
	Section 6.11 Delay or Omission Not Waiver
	 	 	100	 
	Section 6.12 Trustee May File Proofs of Claim
	 	 	101	 
	Section 6.13 Priorities
	 	 	101	 
	Section 6.14 Undertaking for Costs
	 	 	102	 

 

-ii- 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 7

	 
	 	 	 	 
	TRUSTEE

	 
	 	 	 	 
	Section 7.01 Duties of Trustee
	 	 	102	 
	Section 7.02 Rights of Trustee
	 	 	103	 
	Section 7.03 Individual Rights of Trustee
	 	 	104	 
	Section 7.04 Trustee’s Disclaimer
	 	 	104	 
	Section 7.05 Notice of Defaults
	 	 	104	 
	Section 7.06 Reports by Trustee to Holders of the Notes
	 	 	104	 
	Section 7.07 Compensation and Indemnity
	 	 	105	 
	Section 7.08 Replacement of Trustee
	 	 	105	 
	Section 7.09 Successor Trustee by Merger, Etc.
	 	 	106	 
	Section 7.10 Eligibility; Disqualification
	 	 	106	 
	Section 7.11 Preferential Collection of Claims Against Issuers
	 	 	107	 
	Section 7.12 Security Documents; Intercreditor Agreement
	 	 	107	 
	 
	 	 	 	 
	ARTICLE 8

	 
	 	 	 	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	 
	 	 	 	 
	Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	107	 
	Section 8.02 Legal Defeasance and Discharge
	 	 	107	 
	Section 8.03 Covenant Defeasance
	 	 	108	 
	Section 8.04 Conditions to Legal or Covenant Defeasance
	 	 	108	 
	Section 8.05 Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions
	 	 	110	 
	Section 8.06 Repayment to Issuers
	 	 	110	 
	Section 8.07 Reinstatement
	 	 	110	 
	 
	 	 	 	 
	ARTICLE 9

	 
	 	 	 	 
	AMENDMENT, SUPPLEMENT AND WAIVER

	 
	 	 	 	 
	Section 9.01 Without Consent of Holders of Notes
	 	 	111	 
	Section 9.02 With Consent of Holders of Notes
	 	 	113	 
	Section 9.03 Compliance with Trust Indenture Act
	 	 	114	 
	Section 9.04 Revocation and Effect of Consents
	 	 	115	 
	Section 9.05 Notation on or Exchange of Notes
	 	 	115	 
	Section 9.06 Trustee and Notes Collateral Agent to Sign Amendments, Etc.
	 	 	115	 
	 
	 	 	 	 
	ARTICLE 10

	 
	 	 	 	 
	GUARANTEES

	 
	 	 	 	 
	Section 10.01 Guarantee
	 	 	116	 
	Section 10.02 Limitation on Guarantor Liability
	 	 	117	 
	Section 10.03 Execution and Delivery
	 	 	117	 
	Section 10.04 Subrogation
	 	 	118	 
	Section 10.05 Benefits Acknowledged
	 	 	118	 
	Section 10.06 Release of Guarantees
	 	 	118	 

 

-iii- 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 11

	 
	 	 	 	 
	COLLATERAL

	 
	 	 	 	 
	Section 11.01 Collateral and Security Documents
	 	 	119	 
	Section 11.02 Non-Impairment of Liens
	 	 	119	 
	Section 11.03 Release of Collateral
	 	 	120	 
	Section 11.04 Suits To Protect the Collateral
	 	 	121	 
	Section 11.05 Authorization of Receipt of Funds by the Trustee Under the Security Documents
	 	 	121	 
	Section 11.06 Purchaser Protected
	 	 	121	 
	Section 11.07 Powers Exercisable by Receiver or Trustee
	 	 	121	 
	Section 11.08 Release Upon Termination of the Issuers’ Obligations
	 	 	122	 
	Section 11.09 Notes Collateral Agent
	 	 	122	 
	Section 11.10 Designations
	 	 	129	 
	Section 11.11 Limitations on Stock Collateral
	 	 	129	 
	Section 11.12 Limitations on Certain Perfection Items
	 	 	130	 
	 
	 	 	 	 
	ARTICLE 12

	 
	 	 	 	 
	SATISFACTION AND DISCHARGE

	 
	 	 	 	 
	Section 12.01 Satisfaction and Discharge
	 	 	130	 
	Section 12.02 Application of Trust Money
	 	 	131	 
	 
	 	 	 	 
	ARTICLE 13

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	Section 13.01 Trust Indenture Act Controls
	 	 	131	 
	Section 13.02 Notices
	 	 	132	 
	Section 13.03 Communication by Holders of Notes with Other Holders of Notes
	 	 	132	 
	Section 13.04 Certificate and Opinion as to Conditions Precedent
	 	 	133	 
	Section 13.05 Statements Required in Certificate or Opinion
	 	 	133	 
	Section 13.06 Rules by Trustee and Agents
	 	 	133	 
	Section 13.07 No Personal Liability of Directors, Officers, Employees, Incorporators, Members, Partners and Stockholders
	 	 	134	 
	Section 13.08 Governing Law
	 	 	134	 
	Section 13.09 Waiver of Jury Trial
	 	 	134	 
	Section 13.10 Force Majeure
	 	 	134	 
	Section 13.11 No Adverse Interpretation of Other Agreements
	 	 	134	 
	Section 13.12 Successors
	 	 	134	 
	Section 13.13 Severability
	 	 	134	 
	Section 13.14 Counterpart Originals
	 	 	135	 
	Section 13.15 Table of Contents, Headings, Etc.
	 	 	135	 
	Section 13.16 Intercreditor Agreement Governs
	 	 	135	 

 

-iv- 

 

	 	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit A

	 	Form of Note
	Exhibit B

	 	Form of Certificate of Transfer
	Exhibit C

	 	Form of Certificate of Exchange
	Exhibit D

	 	Form of Supplemental Indenture to Be Delivered by Subsequent Guarantors

 

-v- 

 

INDENTURE, dated as of October 13, 2010, among Carey Acquisition Corp., a Delaware corporation
(“Merger Sub”), Carey New Finance, Inc., a Delaware corporation (the “Co-Issuer”),
Associated Materials, LLC, a Delaware limited liability company (“AMLLC”), the Guarantors (as
defined herein) listed on the signature pages hereto and Wells Fargo Bank, National Association, a
national banking association, as Trustee and Notes Collateral Agent.

W I T N E S S E T H

WHEREAS, Merger Sub has duly authorized the creation of an issue of $730,000,000 aggregate
principal amount of 9.125% Senior Secured Notes due 2017 (the “Initial Notes”);

WHEREAS, in connection with the Transactions (as defined herein), the obligations of Merger
Sub with respect to the due and punctual payment of the principal of, premium, if any, and interest
on all the Notes and the performance and observation of each covenant and agreement under this
Indenture on the part of Merger Sub to be performed or observed will become obligations of AMLLC
and unconditionally and irrevocably guaranteed by the Guarantors; and

WHEREAS, each of Merger Sub, the Co-Issuer, AMLLC and each of the Guarantors has duly
authorized the execution and delivery of this Indenture.

NOW, THEREFORE, Merger Sub, the Co-Issuer, AMLLC, the Guarantors and the Trustee agree as
follows for the benefit of each other and for the equal and ratable benefit of the Holders of the
Notes.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01 Definitions.

“144A Global Note” means a Global Note substantially in the form of Exhibit A bearing
the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and
registered in the name of, the Depositary or its nominee that will be issued in a denomination
equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

“ABL Collateral” means the Revolving Priority Collateral (as defined in the
Intercreditor Agreement).

“Acquired Indebtedness” means, with respect to any specified Person,

(1) Indebtedness of any other Person existing at the time such other Person is merged
with or into or became a Restricted Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other Person merging
with or into or becoming a Restricted Subsidiary of such specified Person, and

(2) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

“Acquisition” means the transactions contemplated by the Transaction Agreement.

 

 

 

“Additional Interest” means all additional interest then owing pursuant to the
Registration Rights Agreement.

“Additional Notes” means additional Notes (other than the Initial Notes) issued under
this Indenture in accordance with Sections 2.01 and 4.09, as part of the same series as the Initial
Notes.

“Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise.

“Agent” means any Registrar or Paying Agent.

“AMLLC” means the party named as such in the preamble hereto or any successor obligor to its
obligations under this Indenture and the Notes pursuant to Article 5.

“Applicable Premium” means, with respect to any Note on any Redemption Date, the
greater of:

(1) 1.0% of the principal amount of such Note; and

(2) the excess, if any, of (a) the present value at such Redemption Date of (i) the
redemption price of such Note at November 1, 2013 (such redemption price being set forth in
Section 3.07), plus (ii) all required interest payments due on such Note through November 1,
2013 (excluding accrued but unpaid interest to the Redemption Date), computed using a
discount rate equal to the Treasury Rate as of such Redemption Date plus 50 basis points;
over (b) the principal amount of such Note.

“Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear
and/or Clearstream that apply to such transfer or exchange.

“Asset Sale” means:

(1) the sale, conveyance, transfer or other disposition, whether in a single
transaction or a series of related transactions, of property or assets (including by way of
a Sale and Lease-Back Transaction) of an Issuer or any of the Restricted Subsidiaries (each
referred to in this definition as a “disposition”); or

(2) the issuance or sale of Equity Interests of any Restricted Subsidiary (other than
Preferred Stock of Restricted Subsidiaries issued in compliance with Section 4.09), whether
in a single transaction or a series of related transactions;

in each case, other than:

(a) any disposition of Cash Equivalents or obsolete or worn out equipment in the
ordinary course of business or any disposition of inventory or goods (or other assets) held
for sale or no longer used in the ordinary course of business;

 

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(b) the disposition of all or substantially all of the assets of AMLLC in a manner
permitted pursuant to the provisions described under Section 5.01 or any disposition that
constitutes a Change of Control pursuant to this Indenture;

(c) the making of any Restricted Payment or Permitted Investment that is permitted to
be made, and is made, under Section 4.07;

(d) any disposition of assets or issuance or sale of Equity Interests of any Restricted
Subsidiary in any transaction or series of transactions with an aggregate fair market value
of less than $10,000,000;

(e) any disposition of property or assets or issuance of securities by a Restricted
Subsidiary to an Issuer or by an Issuer or a Restricted Subsidiary to another Restricted
Subsidiary;

(f) to the extent allowable under Section 1031 of the Internal Revenue Code of 1986 or
any successor provision, any exchange of like property (excluding any boot thereon) for use
in a Similar Business;

(g) the lease, assignment, sub-lease, license or sub-license of any real or personal
property in the ordinary course of business;

(h) any issuance, sale or pledge of Equity Interests in, or Indebtedness or other
securities of, an Unrestricted Subsidiary;

(i) foreclosures, condemnation or any similar action on assets or the granting of Liens
not prohibited by this Indenture;

(j) sales of accounts receivable, or participations therein, in connection with any
Receivables Facility;

(k) any financing transaction with respect to property built or acquired by an Issuer
or any Restricted Subsidiary after the Issue Date, including Sale and Lease-Back
Transactions and asset securitizations permitted by this Indenture;

(l) any surrender or waiver of contractual rights or the settlement, release or
surrender of contractual rights or other litigation claims in the ordinary course of
business;

(m) the sale or discount of inventory, accounts receivable or notes receivable in the
ordinary course of business or the conversion of accounts receivable to notes receivable;

(n) the licensing or sub-licensing of intellectual property or other general
intangibles in the ordinary course of business, other than the licensing of intellectual
property on a long-term basis;

(o) the unwinding of any Hedging Obligations;

(p) sales, transfers and other dispositions of Investments in joint ventures to the
extent required by, or made pursuant to, customary buy/sell arrangements between the joint
venture parties set forth in joint venture arrangements and similar binding arrangements;

 

-3-

 

(q) the abandonment of intellectual property rights in the ordinary course of business,
which in the reasonable good faith determination of the Issuers are not material to the
conduct of the business of the Issuers and the Restricted Subsidiaries taken as a whole; and

(r) the issuance of directors’ qualifying shares and shares issued to foreign nationals
as required by applicable law.

“Bank Collateral Agent” means UBS AG, Stamford Branch and any successor under the
Senior Credit Agreement, or if there is no Senior Credit Agreement, the “Bank Collateral Agent”
designated pursuant to the terms of the Lenders Debt.

“Bank Lender” means any lender or holder or agent or arranger of Indebtedness under
the Senior Credit Agreement.

“Bank Products” means any facilities or services related to cash management, including
treasury, depository, overdraft, credit or debit card, automated clearing house fund transfer
services, purchase card, electronic funds transfer (including non-card e-payables services) and
other cash management arrangements and commercial credit card and merchant card services.

“Bankruptcy Code” means Title 11 of the United States Code, as amended.

“Bankruptcy Law” means the Bankruptcy Code and any similar federal, state or foreign
law for the relief of debtors.

“Board” with respect to a Person means the board of directors (or similar body) of such Person
or any committee thereof duly authorized to act on behalf of such board of directors (or similar
body).

“Borrowing Base” means, as of any date, an amount equal to:

(1) 85% of the aggregate book value of all accounts receivable owned by the Issuers and
the Restricted Subsidiaries as of the end of the most recent fiscal quarter preceding such
date; plus

(2) 85% of the net orderly liquidation value of all inventory owned by the Issuers and
the Restricted Subsidiaries as of the end of the most recent fiscal quarter preceding such
date; plus

(3) 85% of the net orderly liquidation value of all equipment owned by Canadian
Subsidiaries of AMLLC as of the end of the most recent fiscal quarter preceding such date;
plus

(4) 70% of the appraised fair market value of all real property owned by Canadian
Subsidiaries of AMLLC as of the end of the most recent fiscal quarter preceding such date.

“Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

“Business Day” means each day which is not a Legal Holiday.

“Capital Stock” means:

(1) in the case of a corporation, corporate stock;

 

-4-

 

(2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

(3) in the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and

(4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person;

but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether
or not such securities include any right of participation with Capital Stock.

“Capitalized Lease Obligation” means, at the time any determination thereof is to be
made, the amount of the liability in respect of a capital lease that would at such time be required
to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto)
in accordance with GAAP.

“Cash Equivalents” means:

(1) United States dollars or Canadian dollars;

(2) (a) euro, pounds sterling or any national currency of any participating member
state of the EMU; or

(b) in the case of any Foreign Subsidiary that is a Restricted Subsidiary, such local
currencies held by them from time to time in the ordinary course of business;

(3) securities issued or directly and fully and unconditionally guaranteed or insured
by the U.S. government or any agency or instrumentality thereof the securities of which are
unconditionally guaranteed as a full faith and credit obligation of such government with
maturities of 12 months or less from the date of acquisition;

(4) certificates of deposit, time deposits and eurodollar time deposits with maturities
of one year or less from the date of acquisition, bankers’ acceptances with maturities not
exceeding one year and overnight bank deposits, in each case with any commercial bank having
capital and surplus of not less than $500,000,000 in the case of U.S. banks and $100,000,000
(or the U.S. dollar equivalent as of the date of determination) in the case of non-U.S.
banks;

(5) repurchase obligations for underlying securities of the types described in clauses
(3) and (4) entered into with any financial institution meeting the qualifications specified
in clause (4) above;

(6) commercial paper rated at least P-1 by Moody’s or at least A-1 by S&P and in each
case maturing within 12 months after the date of creation thereof;

(7) marketable short-term money market and similar securities having a rating of at
least P-2 or A-2 from either Moody’s or S&P, respectively (or, if at any time neither
Moody’s nor S&P shall be rating such obligations, an equivalent rating from another Rating
Agency) and in each case maturing within 24 months after the date of creation thereof;

 

-5-

 

(8) investment funds investing 95% of their assets in securities of the types described
in clauses (1) through (7) above and (10) through (12) below;

(9) [Reserved];

(10) Indebtedness or Preferred Stock issued by Persons with a rating of “A” or higher
from S&P or “A2” or higher from Moody’s with maturities of 12 months or less from the date
of acquisition;

(11) Investments with average maturities of 12 months or less from the date of
acquisition in money market funds rated AAA- (or the equivalent thereof) or better by S&P or
Aaa3 (or the equivalent thereof) or better by Moody’s; and

(12) readily marketable direct obligations issued by any foreign government or any
political subdivision or public instrumentality thereof, in each case having an Investment
Grade Rating from either Moody’s or S&P (or, if at any time neither Moody’s nor S&P shall be
rating such obligations, an equivalent rating from another Rating Agency) with maturities of
12 months or less from the date of acquisition.

Notwithstanding the foregoing, Cash Equivalents shall include amounts denominated in
currencies other than those set forth in clauses (1) and (2) above, provided that such amounts are
converted into any currency listed in clauses (1) and (2) as promptly as practicable and in any
event within ten Business Days following the receipt of such amounts.

“Change of Control” means the occurrence of any of the following:

(1) the sale, lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of AMLLC and its Subsidiaries, taken as a whole, to any
Person other than the Permitted Holders; or

(2) the Issuers become aware of (by way of a report or any other filing pursuant to
Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise) the acquisition
by any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act, or any successor provision), including any group acting for the purpose of
acquiring, holding or disposing of securities (within the meaning of Rule 13d 5(b)(1) under
the Exchange Act), other than the Permitted Holders, in a single transaction or in a related
series of transactions, by way of merger, consolidation or other business combination or
purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act,
or any successor provision) of 50% or more of the total voting power of the Voting Stock of
AMLLC or any Parent Entity.

“Clearstream” means Clearstream Banking, Société Anonyme.

“Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto.

“Co-Issuer” means the party named as such in the preamble hereto or any successor
obligor to its obligations under this Indenture and the Notes pursuant to Article 5.

“Collateral” means all the assets and properties subject to the Liens created by the Security
Documents.

 

-6-

 

“Consolidated Depreciation and Amortization Expense” means with respect to any Person
for any period, the total amount of depreciation and amortization expense, including the
amortization of deferred financing fees of such Person and the Restricted Subsidiaries for such
period on a consolidated basis and otherwise determined in accordance with GAAP.

“Consolidated Interest Expense” means, with respect to any Person for any period,
without duplication, the sum of:

(1) consolidated interest expense of such Person and the Restricted Subsidiaries for
such period, to the extent such expense was deducted (and not added back) in computing
Consolidated Net Income (including (a) amortization of original issue discount resulting
from the issuance of Indebtedness at less than par, (b) all commissions, discounts and other
fees and charges owed with respect to letters of credit or bankers acceptances, (c) non-cash
interest payments (but excluding any non-cash interest expense attributable to the movement
in the mark to market valuation of Hedging Obligations or other derivative instruments
pursuant to GAAP), (d) the interest component of Capitalized Lease Obligations, and (e) net
payments, if any, pursuant to interest rate Hedging Obligations with respect to
Indebtedness, and excluding (u) accretion or accrual of discounted liabilities not
constituting Indebtedness, (v) any expense resulting from the discounting of Indebtedness in
connection with the application of recapitalization or purchase accounting, (w) any
Additional Interest relating to the Registration Rights Agreement, (x) amortization of
deferred financing fees, debt issuance costs, commissions, fees and expenses, (y) any
expensing of bridge, commitment and other financing fees and (z) commissions, discounts,
yield and other fees and charges (including any interest expense) related to any Receivables
Facility); plus

(2) consolidated capitalized interest of such Person and the Restricted Subsidiaries
for such period, whether paid or accrued; less

(3) interest income for such period.

For purposes of this definition, interest on a Capitalized Lease Obligation shall be deemed to
accrue at an interest rate reasonably determined by such Person to be the rate of interest implicit
in such Capitalized Lease Obligation in accordance with GAAP.

“Consolidated Net Income” means, with respect to any Person for any period, the
aggregate of the Net Income attributable to such Person and the Restricted Subsidiaries for such
period, on a consolidated basis, and otherwise determined in accordance with GAAP;
provided, however, that, without duplication,

(1) any after-tax effect of extraordinary, non-recurring or unusual gains, losses or
charges (including all fees and expenses relating thereto) or expenses (including the
Transaction Expenses), severance, relocation costs and curtailments or modifications to
pension and post-retirement employee benefit plans shall be excluded,

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

(3) any after-tax effect of income (loss) from disposed or discontinued operations and
any net after-tax gains or losses on disposed, abandoned or discontinued operations shall be
excluded,

 

-7-

 

(4) any after-tax effect of gains or losses (less all fees and expenses relating
thereto) attributable to asset dispositions other than in the ordinary course of business,
as determined in good faith by the Issuers, shall be excluded,

(5) the Net Income for such period of any Person that is not a Subsidiary, or is an
Unrestricted Subsidiary, or that is accounted for by the equity method of accounting, shall
be excluded; provided that Consolidated Net Income of AMLLC shall be increased by the amount
of dividends or distributions or other payments that are actually paid in cash (or to the
extent converted into cash) to the referent Person or a Restricted Subsidiary thereof in
respect of such period,

(6) solely for the purpose of determining the amount available for Restricted Payments
under clause (3)(a) of Section 4.07(a), the Net Income for such period of any Restricted
Subsidiary (other than any Guarantor) shall be excluded to the extent the declaration or
payment of dividends or similar distributions by that Restricted Subsidiary of its Net
Income is not at the date of determination permitted without any prior governmental approval
(which has not been obtained) or, directly or indirectly, is otherwise restricted by the
operation of the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Restricted Subsidiary or its
stockholders, unless such restriction with respect to the payment of dividends or similar
distributions has been legally waived; provided that Consolidated Net Income of AMLLC will
be increased by the amount of dividends or other distributions or other payments actually
paid in cash (or to the extent converted into cash) or Cash Equivalents to AMLLC or a
Restricted Subsidiary thereof in respect of such period, to the extent not already included
therein,

(7) effects of adjustments (including the effects of such adjustments pushed down to
AMLLC and the Restricted Subsidiaries) in the inventory, property and equipment, software
and other intangible assets, deferred revenue and debt line items in such Person’s
consolidated financial statements pursuant to GAAP resulting from the application of
purchase accounting in relation to the Transaction or any consummated acquisition or the
amortization or write-off of any amounts thereof, net of taxes, shall be excluded,

(8) any after-tax effect of income (loss) from the early extinguishment of Indebtedness
or Hedging Obligations or other derivative instruments (including deferred financing costs
written off and premiums paid) shall be excluded,

(9) any impairment charge, asset write-off or write-down, including impairment charges
or asset write-offs or write-downs related to intangible assets, long-lived assets,
investments in debt and equity securities, the amortization of intangibles, and the effects
of adjustments to accruals and reserves during a prior period relating to any change in the
methodology of calculating reserves for returns, rebates and other chargebacks (including
government program rebates), in each case, pursuant to GAAP shall be excluded,

(10) any (i) non-cash compensation expense recorded from grants of stock appreciation
or similar rights, stock options, restricted stock or other rights and (ii) income (loss)
attributable to deferred compensation plans or trusts shall be excluded,

(11) any fees and expenses incurred during such period, or any amortization thereof for
such period, in connection with any acquisition, Investment, Asset Sale, issuance or
repayment of Indebtedness, issuance of Equity Interests, refinancing transaction or
amendment or modification of any debt instrument (in each case, including any such
transaction consummated prior to the Issue Date and any such transaction undertaken but not completed) and any
charges or non-recurring merger costs incurred during such period as a result of any such
transaction shall be excluded,

 

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(12) accruals and reserves that are established within twelve months after the Issue
Date that are so required to be established as a result of the Transaction in accordance
with GAAP shall be excluded,

(13) [Reserved],

(14) any net gain or loss resulting in such period from Hedging Obligations and the
application of Financial Accounting Standards Codification No. 815—Derivatives and Hedging
shall be excluded,

(15) any net gain or loss resulting in such period from currency transaction or
translation gains or losses related to currency remeasurements (including any net loss or
gain resulting from hedge agreements for currency exchange risk) shall be excluded,

(16) any deferred tax expense associated with tax deductions or net operating losses
arising as a result of the Transactions, or the release of any valuation allowance related
to such item, shall be excluded, and

(17) any non-cash interest expense and non-cash interest income, in each case to the
extent there is no associated cash disbursement or receipt, as the case may be, before the
earlier of the maturity date of the Notes and the date on which all the Notes cease to be
outstanding, shall be excluded.

Notwithstanding the foregoing, for the purpose of Section 4.07 only (other than clause (3)(d)
of Section 4.07(a)), there shall be excluded from Consolidated Net Income any income arising from
any sale or other disposition of Restricted Investments made by the Issuers and the Restricted
Subsidiaries, any repurchases and redemptions of Restricted Investments from the Issuers and the
Restricted Subsidiaries, any repayments of loans and advances which constitute Restricted
Investments by the Issuers or any of the Restricted Subsidiaries, any sale of the stock of an
Unrestricted Subsidiary or any distribution or dividend from an Unrestricted Subsidiary, in each
case only to the extent such amounts increase the amount of Restricted Payments permitted under
clause (3)(d) of Section 4.07(a).

“Consolidated Secured Debt Ratio” as of any date of determination means, the ratio of
(1) Consolidated Total Indebtedness of the Issuers and the Restricted Subsidiaries (other than
Hedging Obligations) that is secured by Liens as of the end of the most recent fiscal quarter for
which internal financial statements are available immediately preceding the date on which such
event for which such calculation is being made shall occur to (2) AMLLC’s EBITDA for the most
recently ended four full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such event for which such calculation is being made shall
occur, in each case with such pro forma adjustments to Consolidated Total Indebtedness and EBITDA
as are appropriate and consistent with the pro forma adjustment provisions set forth in the
definition of Fixed Charge Coverage Ratio.

 

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“Consolidated Total Indebtedness” means, as at any date of determination, an amount
equal to the sum of (1) the aggregate amount of all outstanding Indebtedness of the Issuers and the
Restricted Subsidiaries on a consolidated basis consisting of Indebtedness for borrowed money,
Obligations in respect of Capitalized Lease Obligations and debt obligations evidenced by
promissory notes and similar instruments and (2) the aggregate amount of all outstanding
Disqualified Stock of AMLLC and all Preferred Stock of the Restricted Subsidiaries on a consolidated basis, with the amount of
such Disqualified Stock and Preferred Stock equal to the greater of their respective voluntary or
involuntary liquidation preferences and maximum fixed repurchase prices, in each case determined on
a consolidated basis in accordance with GAAP. For purposes hereof, the “maximum fixed repurchase
price” of any Disqualified Stock or Preferred Stock that does not have a fixed repurchase price
shall be calculated in accordance with the terms of such Disqualified Stock or Preferred Stock as
if such Disqualified Stock or Preferred Stock were purchased on any date on which Consolidated
Total Indebtedness shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market value of such Disqualified Stock or Preferred Stock,
such fair market value shall be determined reasonably and in good faith by the Board of AMLLC.

“Contingent Obligations” means, with respect to any Person, any obligation of such
Person guaranteeing any leases, dividends or other obligations that do not constitute Indebtedness
(“primary obligations”) of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including, without limitation, any obligation of such Person,
whether or not contingent,

(1) to purchase any such primary obligation or any property constituting direct or
indirect security therefor,

(2) to advance or supply funds

(a) for the purchase or payment of any such primary obligation, or

(b) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, or

(3) to purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor to make
payment of such primary obligation against loss in respect thereof.

“Corporate Trust Office of the Trustee” shall be at the address of the Trustee
specified in Section 13.02 or such other address as to which the Trustee may give notice to the
Holders and the Issuers.

“Credit Facilities” means, with respect to an Issuer or any of the Restricted
Subsidiaries, one or more debt facilities, including the Senior Credit Agreement, or other
financing arrangements (including, without limitation, commercial paper facilities or indentures)
providing for revolving credit loans, term loans, letters of credit or other long-term
indebtedness, including any notes, mortgages, guarantees, collateral documents, instruments and
agreements executed in connection therewith, and any amendments, supplements, modifications,
extensions, renewals, restatements or refundings thereof and any indentures or credit facilities or
commercial paper facilities that exchange, replace, refund, refinance, extend, renew, restate,
amend, supplement or modify any part of the loans, notes, other credit facilities or commitments
thereunder, including any such exchanged, replacement, refunding, refinancing, extended, renewed,
restated, amended, supplemented or modified facility or indenture that increases the amount
permitted to be borrowed thereunder or alters the maturity thereof (provided that such increase in
borrowings is permitted under Section 4.09) or adds Restricted Subsidiaries as additional borrowers
or guarantors thereunder and whether by the same or any other agent, lender or group of lenders.

“Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

 

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“Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

“Definitive Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.06(c), substantially in the form of Exhibit
A except that such Note shall not bear the Global Note Legend and shall not have the “Schedule
of Exchanges of Interests in the Global Note” attached thereto.

“Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.03 as the Depositary with respect to the Notes, and any and
all successors thereto appointed as Depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

“Designated Non-cash Consideration” means the fair market value of non-cash
consideration received by AMLLC or a Restricted Subsidiary in connection with an Asset Sale that is
so designated as Designated Non-cash Consideration pursuant to an Officer’s Certificate, setting
forth the basis of such valuation, executed by the principal financial officer of the Issuers, less
the amount of cash or Cash Equivalents received in connection with a subsequent sale of or
collection on such Designated Non-cash Consideration.

“Designated Preferred Stock” means Preferred Stock of AMLLC or any Parent Entity (in
each case other than Disqualified Stock) that is issued for cash (other than to a Restricted
Subsidiary or an employee stock ownership plan or trust established by AMLLC or any of its
Subsidiaries) and is so designated as Designated Preferred Stock, pursuant to an Officer’s
Certificate executed by the principal financial officer of the Issuers or the applicable Parent
Entity, as the case may be, on the issuance date thereof, the cash proceeds of which are excluded
from the calculation set forth in clause (3) of Section 4.07(a).

“Discharge of ABL Obligations” means “Discharge of Revolving Obligations” as defined
in the Intercreditor Agreement.

“Disqualified Stock” means, with respect to any Person, any Capital Stock of such
Person which, by its terms, or by the terms of any security into which it is convertible or for
which it is putable or exchangeable, or upon the happening of any event, matures or is mandatorily
redeemable (other than solely as a result of a change of control or asset sale) pursuant to a
sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof (other
than solely as a result of a change of control or asset sale), in whole or in part, in each case
prior to the date 91 days after the earlier of the maturity date of the Notes or the date the Notes
are no longer outstanding; provided, however, that if such Capital Stock is issued to any plan for
the benefit of employees of an Issuer or their respective Subsidiaries or by any such plan to such
employees, such Capital Stock shall not constitute Disqualified Stock solely because it may be
required to be repurchased by an Issuer or its respective Subsidiaries in order to satisfy
applicable statutory or regulatory obligations.

“Domestic Subsidiary” means any Restricted Subsidiary that is organized or existing
under the laws of the United States, any state thereof, the District of Columbia, or any territory
thereof.

 

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“EBITDA” means, with respect to any Person for any period, the Consolidated Net Income of such
Person for such period,

(1) increased (without duplication) by:

(a) provision for taxes based on income or profits or capital, including,
without limitation, state, franchise and similar taxes and foreign withholding taxes
of such Person paid or accrued during such period deducted (and not added back) in
computing Consolidated Net Income; plus

(b) Fixed Charges of such Person for such period (including (x) net losses or
Hedging Obligations or other derivative instruments entered into for the purpose of
hedging interest rate risk and (y) costs of surety bonds in connection with
financing activities, in each case, to the extent included in Fixed Charges),
together with items excluded from the definition of “Consolidated Interest Expense”
pursuant to clauses 1(u) through 1(z) thereof, to the extent the same were deducted
(and not added back) in calculating such Consolidated Net Income; plus

(c) Consolidated Depreciation and Amortization Expense of such Person for such
period to the extent the same were deducted (and not added back) in computing
Consolidated Net Income; plus

(d) any expenses or charges (other than depreciation or amortization expense)
related to any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or the incurrence of Indebtedness permitted to be incurred by this
Indenture (including a refinancing thereof) (whether or not successful), including
(i) such fees, expenses or charges related to the offering of the Notes and the
Credit Facilities and (ii) any amendment or other modification of the Notes, and, in
each case, deducted (and not added back) in computing Consolidated Net Income; plus

(e) the amount of any restructuring charge or reserve or non-recurring
integration costs deducted (and not added back) in such period in computing
Consolidated Net Income, including any one time costs incurred in connection with
acquisitions after the Issue Date and costs related to the closure and/or
consolidation of facilities; plus

(f) any other non-cash charges, including any write offs or write downs,
reducing Consolidated Net Income for such period (provided that if any such non-cash
charges represent an accrual or reserve for potential cash items in any future
period, the cash payment in respect thereof in such future period shall be
subtracted from EBITDA to such extent, and excluding amortization of a prepaid cash
item that was paid in a prior period); plus

(g) the amount of any non-controlling interest expense consisting of Subsidiary
income attributable to minority equity interests of third parties in any non-Wholly
Owned Subsidiary deducted (and not added back) in such period in calculating
Consolidated Net Income excluding cash distributions in respect thereof; plus

(h) the amount of management, monitoring, consulting and advisory fees and
related expenses paid in such period to the Investors to the extent otherwise
permitted under Section 4.11; plus

 

-12-

 

(i) the amount of net cost savings projected by AMLLC in good faith to be
realized as a result of (A) the projected cost savings reflected in notes (h) and
(j) of footnote (1) under the caption “Summary Historical and Unaudited Pro Forma
Condensed Consolidated Financial Data” of the Offering Memorandum and (B) specified
actions initiated or to be taken on or prior to the date that is 12 months after the
Issue Date or 12 months after the consummation of any acquisition, amalgamation, merger or
operational change and prior to or during such period (calculated on a pro forma
basis as though such cost savings had been realized on the first day of such
period), net of the amount of actual benefits realized during such period from such
actions; provided that (x) such cost savings are reasonably identifiable and
quantifiable, (y) no cost savings shall be added pursuant to this clause (i) to the
extent duplicative of any expenses or charges relating to such cost savings that are
included in clause (e) above and (z) the aggregate amount added back pursuant to
clause (i) (B) taken together with any amounts added back pursuant to clause (e)
above included in any four quarter period shall not exceed 10.0% of EBITDA for such
four quarter period; provided, further, that the adjustments pursuant to this clause
(i) may be incremental to (but not duplicative of) pro forma adjustments made
pursuant to the definition of “Fixed Charge Coverage Ratio”; provided, further, that
for the avoidance of doubt, this clause (i) shall (x) not apply to any projected net
cost savings of interest expense, accretion of principal amount, depreciation or
amortization or other pro forma adjustments, in each case to the extent permitted to
be made in accordance with Article 11 of Regulation S-X and (y) in no way limit pro
forma adjustments made in accordance with Article 11 of Regulation S-X to the extent
permitted by the definition of “Fixed Charge Coverage Ratio”; plus

(j) the amount of loss on sale of receivables and related assets to the
Receivables Subsidiary in connection with a Receivables Facility; plus

(k) any costs or expense incurred by an Issuer or a Restricted Subsidiary
pursuant to any management equity plan or stock option plan or any other management
or employee benefit plan or agreement or any stock subscription or shareholder
agreement, to the extent that such cost or expenses are funded with cash proceeds
contributed to the capital of AMLLC or net cash proceeds of an issuance of Equity
Interest of AMLLC (other than Disqualified Stock) solely to the extent that such net
cash proceeds are excluded from the calculation set forth in clause (3) of Section
4.07(a); plus

(l) the amount of expenses relating to payments made to option holders of any
Parent Entity or any Parent Entity in connection with, or as a result of, any
distribution being made to shareholders of such Person or its Parent Entity, which
payments are being made to compensate such option holders as though they were
shareholders at the time of, and entitled to share in, such distribution, in each
case to the extent permitted under this Indenture, and

(2) decreased by (without duplication) non-cash gains increasing Consolidated Net
Income of such Person for such period, excluding any non-cash gains to the extent they
represent the reversal of an accrual or reserve for a potential cash item that reduced
EBITDA in any prior period; provided that, to the extent non-cash gains are deducted
pursuant to this clause (2) for any previous period and not otherwise added back to EBITDA,
EBITDA shall be increased by the amount of any cash receipts (or any netting arrangements
resulting in reduced cash expenses) in respect of such non-cash gains received in subsequent
periods to the extent not already included therein.

“EMU” means economic and monetary union as contemplated in the Treaty on European Union.

“Enforcement Notice” has the meaning assigned to such term in the Intercreditor
Agreement.

 

-13-

 

“Equity Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock, but excluding any debt security that is convertible into, or exchangeable
for, Capital Stock.

“Equity Offering” means any public or private sale of common equity or Preferred Stock
of AMLLC or any Parent Entity (excluding Disqualified Stock), other than:

(1) public offerings with respect to AMLLC’s or any Parent Entity’s common stock
registered on Form S-8;

(2) issuances to any Subsidiary of AMLLC; and

(3) any such public or private sale that constitutes an Excluded Contribution.

“euro” means the single currency of participating member states of the EMU.

“Euroclear” means Euroclear S.A./N.V., as operator of the Euroclear system.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.

“Exchange Notes” means the Notes issued in the Exchange Offer pursuant to Section
2.06(f).

“Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

“Exchange Offer Registration Statement” has the meaning set forth in the Registration
Rights Agreement.

“Excluded Accounts” means the deposit, securities and commodities accounts designated
as such by the Bank Collateral Agent, which in any event shall include accounts that are used
primarily for the purpose of making payments in respect of payroll, taxes and employee wages and
benefits.

“Excluded Assets” means the collective reference to:

(1) any interest in leased real property;

(2) any fee interest in owned real property if the fair market value of such fee
interest is less than $5,000,000;

(3) any property or asset to the extent that the grant of a security interest in such
property or asset is prohibited by any applicable law, rule or regulation or requires a
consent not obtained of any governmental authority pursuant to applicable law, rule or
regulation;

(4) those assets that would constitute ABL Collateral but as to which the Bank
Collateral Agent does not require a lien or security interest;

(5) Subject Property;

(6) any assets or property of AMLLC or any Restricted Subsidiary that is subject to a
purchase money lien (or similar Lien under clause (6) of the definition of “Permitted
Liens”) or capital lease under this Indenture to the extent the documents relating to such
lien or capital lease would not permit such assets or property to be subject to the Liens created under the
Security Documents; provided that immediately upon the ineffectiveness, lapse or termination
of any such restriction, such assets or property shall cease to be an “Excluded Asset”;

 

-14-

 

(7) any vehicles and any other assets subject to certificates of title perfection;

(8) any property or assets owned by any Foreign Subsidiary, any Unrestricted Subsidiary
or Receivables Subsidiary;

(9) any intellectual property, including any United States intent-to-use trademark
applications, to the extent and for so long as the creation of a security interest therein
would invalidate an Issuer’s or such Guarantor’s right, title or interest therein;

(10) assets to the extent a security interest in such assets would result in costs or
consequences (including material adverse tax consequences (including as a result of the
operation of Section 956 of the Code or any similar law, rule or regulation in any
applicable jurisdiction)) as reasonably determined by AMLLC with respect to the granting or
perfecting of a security interest that is excessive in view of the benefits to be obtained
by the secured parties;

(11) Excluded Capital Stock;

(12) Excluded Accounts; and

(13) proceeds and products from any and all of the foregoing excluded collateral
described in clauses (1) through (12), unless such proceeds or products would otherwise
constitute Notes Collateral;

provided, however, that Excluded Assets will not include (a) any proceeds, substitutions or
replacements of any Excluded Assets referred to in clause (3) (unless such proceeds, substitutions
or replacements would otherwise constitute Excluded Assets) or (b) any asset of AMLLC or the
Guarantors that secures obligations with respect to Lenders Debt (other than Capital Stock that
does not constitute “Notes Pledged Shares” as defined in the Pledge Agreement and any assets or
Capital Stock owned by direct or indirect Subsidiaries of any Issuer that are organized under the
applicable laws of Canada and the Capital Stock of any Foreign Subsidiaries organized in Canada
that are owned by the Issuers and the Guarantors).

“Excluded Capital Stock” means (a) any Capital Stock with respect to which AMLLC
reasonably determines that the costs (including any costs resulting from material adverse tax
consequences) of pledging such Capital Stock shall be excessive in view of the benefits to be
obtained by the Holders therefrom and (b) (1) solely in the case of any pledge of Capital Stock of
any Foreign Subsidiary to secure the Obligations under the Notes, any Capital Stock that is voting
Capital Stock of such Foreign Subsidiary in excess of 65% of the outstanding voting Capital Stock
of such class, (2) any Capital Stock to the extent the pledge thereof would be prohibited by any
applicable law, rule or regulation or contractual obligation existing on the Issue Date or on the
date such Capital Stock is acquired by an Issuer or a Guarantor or on the date the issuer of such
Capital Stock is created, (3) the Capital Stock of any Subsidiary that is not wholly owned by the
Issuers and the Guarantors at the time such Subsidiary becomes a Subsidiary (for so long as such
Subsidiary remains a non-wholly owned Subsidiary) to the extent the pledge of such Capital Stock by
an Issuer or Guarantor is prohibited by the terms of such Subsidiary’s organizational or joint
venture documents, (4) the Capital Stock of any Immaterial Subsidiary, (5) the Capital Stock of any
Subsidiary of a Foreign Subsidiary, (6) any Capital Stock of a Subsidiary to the extent the pledge
of such Capital Stock would result in materially adverse tax consequences to any Issuer or
its Subsidiaries, as reasonably determined by AMLLC, (7) the Capital Stock of any Subsidiary
organized under the laws of Canada and (8) the Capital Stock of any Unrestricted Subsidiary.

 

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“Excluded Contribution” means net cash proceeds, marketable securities or Qualified
Proceeds received by AMLLC from:

(1) contributions to its common equity capital, and

(2) the sale (other than to a Subsidiary of AMLLC or to any management equity plan or
stock option plan or any other management or employee benefit plan or agreement of the
Issuers) of Capital Stock (other than Disqualified Stock and Designated Preferred Stock) of
AMLLC,

in each case designated as Excluded Contributions pursuant to an officer’s certificate executed by
the principal financial officer of the Issuers on the date such capital contributions are made or
the date such Equity Interests are sold, as the case may be, which are excluded from the
calculation set forth in clause (3) of Section 4.07(a).

“Excluded Subsidiary” means (1) any Subsidiary that is not a Wholly Owned Subsidiary
on any date such Subsidiary would otherwise be required to become a Guarantor (for so long as such
Subsidiary remains a non-Wholly Owned Subsidiary) other than a Domestic Subsidiary that is a
non-Wholly Owned Subsidiary if such non-Wholly Owned Subsidiary guarantees other capital markets
debt securities of any Issuer or any Guarantor, (2) any Subsidiary that is prohibited by any
applicable law, rule or regulation or contractual obligation existing on the Issue Date or at the
time such Subsidiary becomes a Restricted Subsidiary of AMLLC from guaranteeing the Notes (and for
so long as such restrictions or any replacement or renewal thereof is in effect) or which would
require governmental (including regulatory) consent, approval, license or authorization to provide
a Guarantee unless such consent, approval, license or authorization has been received (or is
received after commercially reasonably efforts to obtain such consent, approval, license or
authorization, which efforts may be requested by the Trustee), (3) a direct or indirect Domestic
Subsidiary of a direct or indirect Foreign Subsidiary, (4) any Immaterial Subsidiary (provided that
AMLLC shall not be permitted to exclude Immaterial Subsidiaries from guaranteeing the Notes to the
extent that (i) the aggregate amount of gross revenue for all Immaterial Subsidiaries (other than
Unrestricted Subsidiaries) excluded by this clause (4) exceeds 5.0% of the consolidated gross
revenues of AMLLC and the Restricted Subsidiaries for the most recently ended four fiscal quarter
period for which financial statements have been delivered prior to the date of determination or
(ii) the aggregate amount of total assets for all Immaterial Subsidiaries (other than Unrestricted
Subsidiaries) excluded by this clause (4) exceeds 5.0% of the Total Assets for the most recently
ended four fiscal quarter period for which financial statements have been delivered prior to the
date of determination), (5) each Foreign Subsidiary, (6) each Unrestricted Subsidiary, (7) each
Receivables Subsidiary, (8) the Co-Issuer and (9) any Subsidiary to the extent that its Guarantee
of the Notes would result in material adverse tax consequences to any Issuer or any Subsidiary as
reasonably determined by AMLLC.

“Existing Notes” means, collectively, AMH Holdings II, Inc.’s 20% Senior Notes due
2014, AMH Holdings, LLC’s 11.25% Senior Discount Notes due 2014 and Associated Materials, LLC’s
9.875% Senior Secured Second Lien Notes due 2016.

“fair market value” means, with respect to any asset or liability, the fair market
value of such asset or liability as determined by an Issuer in good faith.

 

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“Fixed Charge Coverage Ratio” means, with respect to any Person for any period, the
ratio of EBITDA of such Person for such period to the Fixed Charges of such Person for such period.
In the event that an Issuer or any Restricted Subsidiary incurs, assumes, guarantees, redeems,
retires or extinguishes any Indebtedness (other than Indebtedness incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been replaced) or issues
or redeems Disqualified Stock or Preferred Stock subsequent to the commencement of the period for
which the Fixed Charge Coverage Ratio is being calculated but prior to or simultaneously with the
event for which the calculation of the Fixed Charge Coverage Ratio is made (the “Fixed Charge
Coverage Ratio Calculation Date”), then the Fixed Charge Coverage Ratio shall be calculated
giving pro forma effect to such incurrence, assumption, guarantee, redemption, retirement or
extinguishment of Indebtedness, or such issuance or redemption of Disqualified Stock or Preferred
Stock, as if the same had occurred at the beginning of the applicable four-quarter period.

For purposes of making the computation referred to above, Investments, acquisitions,
dispositions, mergers, consolidations and disposed operations (as determined in accordance with
GAAP) that have been made by an Issuer or any of the Restricted Subsidiaries during the
four-quarter reference period or subsequent to such reference period and on or prior to or
simultaneously with the Fixed Charge Coverage Ratio Calculation Date shall be calculated on a pro
forma basis assuming that all such Investments, acquisitions, dispositions, mergers, consolidations
and disposed operations (and the change in any associated fixed charge obligations and the change
in EBITDA resulting therefrom) had occurred on the first day of the four-quarter reference period.
If since the beginning of such period any Person that subsequently became a Restricted Subsidiary
or was merged with or into an Issuer or any of the Restricted Subsidiaries since the beginning of
such period shall have made any Investment, acquisition, disposition, merger, consolidation or
disposed operation that would have required adjustment pursuant to this definition, then the Fixed
Charge Coverage Ratio shall be calculated giving pro forma effect thereto for such period as if
such Investment, acquisition, disposition, merger, consolidation or disposed operation had occurred
at the beginning of the applicable four-quarter period.

For purposes of this definition, whenever pro forma effect is to be given to a transaction,
the pro forma calculations shall be made in good faith by a responsible financial or accounting
officer of AMLLC and shall be made in accordance with Article 11 of Regulation S-X. In addition to
pro forma adjustments made in accordance with Article 11 of Regulation S-X, pro forma calculations
may also include operating expense reductions for such period resulting from any Asset Sale or
other disposition or acquisition, investment, merger, consolidation or discontinued operation (as
determined in accordance with GAAP) for which pro forma effect is being given that (A) have been
realized or (B) for which specified actions have been taken or are reasonably expected to be
realizable within twelve months of the date of such transaction; provided that (x) such cost
savings are reasonably identifiable and quantifiable, (y) no cost savings shall be given pro forma
effect to the extent duplicative of any expenses or charges relating to such cost savings that are
added back to pursuant to the definition of EBITDA, and (z) cost savings given pro forma effect
shall not include any cost savings related to the combination of (X) the operations of any Person,
property, business or asset acquired, including pursuant to the Transactions or pursuant to a
transaction consummated prior to the Issue Date, and not subsequently so disposed of and (Y) any
Unrestricted Subsidiary that is converted into a Restricted Subsidiary with the operations of the
Issuers or any Restricted Subsidiary. Such pro forma adjustments may be in addition to (but not
duplicative of) addbacks to EBITDA pursuant to clause (i) of the definition thereof. If any
Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on
such Indebtedness shall be calculated as if the rate in effect on the Fixed Charge Coverage Ratio
Calculation Date had been the applicable rate for the entire period (taking into account any
Hedging Obligations applicable to such Indebtedness). Interest on a Capitalized Lease Obligation
shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or
accounting officer of the Issuers to be the rate of interest implicit in such Capitalized Lease
Obligation in accordance with GAAP. For purposes of making the computation referred to above,
interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall
be computed based upon the average daily balance of such Indebtedness during the applicable period
except as set forth in the first paragraph of this definition. Interest on Indebtedness that may
optionally be determined at an interest rate based upon a factor of a prime or similar rate, a
eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the
rate actually chosen, or, if none, then based upon such optional rate chosen as the Issuers may
designate.

 

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“Fixed Charges” means, with respect to any Person for any period, the sum of:

(1) Consolidated Interest Expense of such Person for such period;

(2) all cash dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Preferred Stock during such period; and

(3) all cash dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Disqualified Stock during such period.

“Foreign Subsidiary” means, with respect to any Person, any Restricted Subsidiary of
such Person that is not organized or existing under the laws of the United States, any state
thereof, the District of Columbia, or any territory thereof and any Restricted Subsidiary of such
Foreign Subsidiary. In addition solely as used in the context of Guarantors, Guarantees,
Collateral and Security Documents, Foreign Subsidiaries shall also include any Person that is both
a Domestic Subsidiary and a Wholly Owned Subsidiary if (1) such Person is a disregarded entity for
U.S. federal income tax purposes and (2) substantially all of such Person’s assets consist of the
equity or indebtedness of one or more direct or indirect Foreign Subsidiaries as defined in the
first sentence of this definition.

“GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are in effect on the Issue Date. At any time after the Issue Date,
AMLLC may elect to apply IFRS accounting principles in lieu of GAAP and, upon any such election,
references herein to GAAP shall thereafter be construed to mean IFRS (except as otherwise provided
in this Indenture); provided that any such election, once made, shall be irrevocable; provided
further that any calculation or determination that requires the application of GAAP for periods
that include fiscal quarters ended prior to the Issuers’ election to apply IFRS shall remain as
previously calculated or determined in accordance with GAAP. The Issuers shall give notice of any
such election made in accordance with this definition to the Trustee and the Holders of Notes.

“Global Note Legend” means the legend set forth in Section 2.06(g)(ii), which is
required to be placed on all Global Notes issued under this Indenture.

“Global Notes” means, individually and collectively, each of the Restricted Global
Notes and the Unrestricted Global Notes, substantially in the form of Exhibit A, issued in
accordance with Section 2.01, 2.06(b), 2.06(d) or 2.06(f).

“Government Securities” means securities that are:

(1) direct obligations of the United States of America for the timely payment of which
its full faith and credit is pledged; or

 

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(2) obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of
America,

which, in either case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depository receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act), as custodian with respect to any such Government Securities or a specific payment
of principal of or interest on any such Government Securities held by such custodian for the
account of the holder of such depository receipt; provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the Government
Securities or the specific payment of principal of or interest on the Government Securities
evidenced by such depository receipt.

“Grantors” means the Issuers and the Guarantors.

“guarantee” means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any manner (including
letters of credit and reimbursement agreements in respect thereof), of all or any part of any
Indebtedness or other obligations.

“Guarantee” means the guarantee by any Guarantor of the Issuers’ Obligations under this
Indenture, the Notes and the Security Documents.

“Guarantor” means each Subsidiary of AMLLC that executes this Indenture as a Guarantor on the
Issue Date and each other Subsidiary of AMLLC that thereafter guarantees the Notes in accordance
with the terms of this Indenture.

“Hedging Obligations” means, with respect to any Person, the obligations of such
Person under any interest rate swap agreement, interest rate cap agreement, interest rate collar
agreement, commodity swap agreement, commodity cap agreement, commodity collar agreement, foreign
exchange contract, currency swap agreement or similar agreement providing for the transfer or
mitigation of interest rate, currency, commodity or equity risks either generally or under specific
contingencies.

“holder” means, with reference to any Indebtedness or other Obligations, any holder or lender
of, or trustee or collateral agent or other authorized representative with respect to, such
Indebtedness or Obligations, and, in the case of Hedging Obligations, any counter-party to such
Hedging Obligations.

“Holder” means the Person in whose name a Note is registered on the Registrar’s books.

“Immaterial Subsidiary” means, at any date of determination, any Restricted Subsidiary
(1) whose total assets (when combined with the assets of such Restricted Subsidiary’s Restricted
Subsidiaries, after eliminating intercompany obligations) at the last day of the most recently
ended four fiscal quarter period for which financial statements have been delivered on or prior to
such determination date were less than 2% of the Total Assets of AMLLC and the Restricted
Subsidiaries at such date and (2) whose gross revenues (when combined with the revenues of such
Restricted Subsidiary’s Restricted Subsidiaries, after eliminating intercompany obligations) for
such period were less than 2% of the consolidated gross revenues of AMLLC and the Restricted
Subsidiaries for such period, in each case determined in accordance with GAAP.

 

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“Indebtedness” means, with respect to any Person, without duplication:

(1) any indebtedness (including principal and premium) of such Person, whether or not
contingent:

(a) in respect of borrowed money;

(b) evidenced by bonds, notes, debentures or similar instruments or letters of
credit or bankers’ acceptances (or, without duplication, reimbursement agreements in
respect thereof);

(c) representing the balance deferred and unpaid of the purchase price of any
property (including Capitalized Lease Obligations), except (i) any such balance that
constitutes a trade payable or similar obligation to a trade creditor, in each case
accrued in the ordinary course of business and (ii) any earn-out obligations until,
after 30 days of becoming due and payable, has not been paid and such obligation
becomes a liability on the balance sheet of such Person in accordance with GAAP;

(d) representing any Hedging Obligations; or

(e) obligations under a Receivables Facility;

if and to the extent that any of the foregoing Indebtedness in clauses (a) through (d)
(other than letters of credit and Hedging Obligations) would appear as a liability upon a
balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with
GAAP; provided that Indebtedness of any Parent Entity appearing upon the balance sheet of
AMLLC solely by reason of push-down accounting under GAAP shall be excluded;

(2) to the extent not otherwise included, any obligation by such Person to be liable
for, or to pay, as obligor, guarantor or otherwise, on the obligations of the type referred
to in clause (1) of a third Person (whether or not such items would appear upon the balance
sheet of the such obligor or guarantor), other than by endorsement of negotiable instruments
for collection in the ordinary course of business; and

(3) to the extent not otherwise included, the obligations of the type referred to in
clause (1) of a third Person secured by a Lien on any asset owned by such first Person,
whether or not such Indebtedness is assumed by such first Person;

provided, however, that notwithstanding the foregoing, Indebtedness shall be deemed not to include
Contingent Obligations incurred in the ordinary course of business.

“Indenture” means this Indenture, as amended, supplemented or otherwise modified from time to
time.

“Independent Financial Advisor” means an accounting, appraisal, investment banking
firm or consultant to Persons engaged in Similar Businesses of nationally recognized standing that
is, in the good faith judgment of the Issuers, qualified to perform the task for which it has been
engaged.

“Indirect Participant” means a Person who holds a beneficial interest in a Global Note
through a Participant.

“Initial Notes” has the meaning set forth in the recitals hereto.

 

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“Initial Purchasers” means Deutsche Bank Securities Inc., UBS Securities LLC and
Barclays Capital Inc.

“Intercreditor Agreement” means the intercreditor agreement dated as of the Issue Date
among the Bank Collateral Agent, the Notes Collateral Agent, the Issuers and each Guarantor, as it
may be amended, supplemented, restated, replaced or otherwise modified from time to time.

“interest” with respect to the Notes means interest with respect thereto and “Additional
Interest,” if any.

“Interest Payment Date” means May 1 and November 1 of each year to stated maturity.

“Investment Grade Rating” means (1) a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB (or the equivalent) by S&P or (2) a rating equal to or higher than
Baa3 (or the equivalent) by Moody’s or BBB (or the equivalent) by S&P and an equivalent rating by
any other Rating Agency.

“Investments” means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of loans (including guarantees), advances or capital
contributions (excluding accounts receivable, trade credit, advances to customers, commission,
travel and similar advances to officers and employees, in each case made in the ordinary course of
business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or
other securities issued by any other Person and investments that are required by GAAP to be
classified on the balance sheet (excluding the footnotes) of AMLLC in the same manner as the other
investments included in this definition to the extent such transactions involve the transfer of
cash or other property. For purposes of the definition of “Unrestricted Subsidiary” and Section
4.07:

(1) “Investments” shall include the portion (proportionate to the Issuers’ equity
interest in such Subsidiary) of the fair market value of the net assets of a Subsidiary of
an Issuer at the time that such Subsidiary is designated an Unrestricted Subsidiary;
provided, however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary,
the Issuers shall be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to:

(a) the Issuers’ “Investment” in such Subsidiary at the time of such
redesignation; less

(b) the portion (proportionate to the Issuers’ equity interest in such
Subsidiary) of the fair market value of the net assets of such Subsidiary at the
time of such redesignation; and

(2) any property transferred to or from an Unrestricted Subsidiary shall be valued at
its fair market value at the time of such transfer, in each case as determined in good faith
by the Board of AMLLC.

The amount of any Investment outstanding at any time shall be the original cost of such
Investment, reduced by any dividend, distribution, interest payment, return of capital, repayment
or other amount received in cash by an Issuer or a Restricted Subsidiary in respect of such
Investment.

 

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“Investors” means Hellman & Friedman LLC and each of its Affiliates and any funds,
partnerships or other investment vehicles managed or controlled by it or its Affiliates, but not
including, however, any portfolio companies of any of the foregoing.

“Issue Date” means October 13, 2010.

“Issuers” means (a) prior to the consummation of the Mergers, Merger Sub and the Co-Issuer and
not any of their respective Affiliates and (b) from and after the consummation of the Mergers,
AMLLC and the Co-Issuer and not any of their respective Affiliates.

“Issuer Order” means a written request or order signed on behalf of the Issuers by an
Officer of the Issuers, who must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of such Issuer, and delivered to the
Trustee.

“Junior Lien Priority” means relative to specified Indebtedness, having a junior Lien
priority on specified Collateral and either subject to the Intercreditor Agreement on a basis that
is no more favorable than the provisions applicable to the holders of Lenders Debt (in the case of
Notes Collateral) or subject to intercreditor agreements providing holders of Indebtedness with
Junior Lien Priority at least the same rights and obligations as the holders of Lenders Debt (in
the case of the Notes Collateral) have pursuant to the Intercreditor Agreement as to the specified
Collateral.

“Legal Holiday” means a Saturday, a Sunday or a day on which commercial banking
institutions are not required to be open in the State of New York.

“Lenders Debt” means any (1) Indebtedness outstanding from time to time under the
Senior Credit Agreement, (2) any Indebtedness which has a priority security interest relative to
the Notes in the ABL Collateral (subject to Permitted Liens), (3) all Obligations with respect to
such Indebtedness and any Hedging Obligations incurred with any Bank Lender (or its Affiliates) and
(4) all Bank Products incurred with any Bank Lender (or its Affiliates).

“Letter of Transmittal” means the letter of transmittal to be prepared by the Issuers
and sent to all Holders of the Notes for use by such Holders in connection with the Exchange Offer.

“Lien” means, with respect to any asset, any mortgage, lien (statutory or otherwise), pledge,
hypothecation, charge, security interest, preference, priority or encumbrance of any kind in
respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in the nature thereof,
any option or other agreement to sell or give a security interest in and any filing of or agreement
to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction; provided that in no event shall an operating lease be deemed to constitute a Lien.

“Mergers” means, collectively, the following: (1) the merger of Carey Acquisition Corp. with
and into AMH Holdings II, Inc. and (2) the following mergers: (a) the merger of Associated
Materials Holdings, LLC with and into AMH Holdings, LLC, with AMH Holdings, LLC surviving such
merger, (b) the merger of AMH Holdings, LLC with and into AMH Holdings II, Inc., with AMH Holdings
II, Inc. surviving such merger, and (c) the merger of AMH Holdings II, Inc. with and into
Associated Materials, LLC, with Associated Materials, LLC surviving such merger. The Mergers will
occur substantially simultaneously on the Issue Date.

“Merger Sub” has the meaning set forth in the preamble hereto.

 

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“Moody’s” means Moody’s Investors Service, Inc. and any successor to its rating agency
business.

“Net Income” means, with respect to any Person, the net income (loss) attributable to
such Person, determined in accordance with GAAP and before any reduction in respect of Preferred
Stock (other than Disqualified Stock) dividends.

“Net Proceeds” means the aggregate cash proceeds received by an Issuer or any of the
Restricted Subsidiaries in respect of any Asset Sale, including any cash received upon the sale or
other disposition of any Designated Non-cash Consideration received in any Asset Sale, net of the
direct costs relating to such Asset Sale and the sale or disposition of such Designated Non-cash
Consideration, including legal, accounting and investment banking fees, and brokerage and sales
commissions, any relocation expenses incurred as a result thereof, taxes paid or payable as a
result thereof (after taking into account any available tax credits or deductions and any tax
sharing arrangements), amounts required to be applied to the repayment of principal, premium, if
any, and interest on Senior Indebtedness required (other than required by clause (1) of Section
4.10(I)(a) or clause (i) of Section 4.10(II)(a)) to be paid as a result of such transaction and any
deduction of appropriate amounts to be provided by an Issuer or any of the Restricted Subsidiaries
as a reserve in accordance with GAAP against any liabilities associated with the asset disposed of
in such transaction and retained by an Issuer or any of the Restricted Subsidiaries after such sale
or other disposition thereof, including pension and other post-employment benefit liabilities and
liabilities related to environmental matters or against any indemnification obligations associated
with such transaction.

“Non-U.S. Person” means a Person who is not a U.S. Person.

“Notes” means the Initial Notes and more particularly means any Note authenticated and
delivered under this Indenture. For all purposes of this Indenture, the term “Notes” shall also
include any Additional Notes and Exchange Notes that may be issued.

“Notes Collateral” means “Notes Priority Collateral” as defined in the Intercreditor
Agreement.

“Notes Collateral Agent” means Wells Fargo Bank, National Association, a national
banking association, in its capacity as the notes collateral agent appointed and authorized under
this Indenture, until a successor replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving hereunder.

“Notes Documents” means the Indenture, the Notes, the Security Documents and the
Intercreditor Agreement.

“Obligations” means any principal, interest (including any interest accruing subsequent to the
filing of a petition in bankruptcy, reorganization or similar proceeding at the rate provided for
in the documentation with respect thereto, whether or not such interest is an allowed claim under
applicable state, federal or foreign law), premium, penalties, fees, indemnifications,
reimbursements (including reimbursement obligations with respect to letters of credit and bankers’
acceptances), damages and other liabilities, and guarantees of payment of such principal, interest,
penalties, fees, indemnifications, reimbursements, damages and other liabilities, payable under the
documentation governing any Indebtedness.

“Offering Memorandum” means the offering memorandum, dated October 1, 2010, relating
to the sale of the Initial Notes.

 

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“Officer” means the Chairman of the Board, the Chief Executive Officer, the Chief Financial
Officer, the President, any Executive Vice President, Senior Vice President or Vice President, the
Treasurer, the Controller or the Secretary of the Issuers or any other Person, as the case may be.

“Officer’s Certificate” means a certificate signed on behalf of AMLLC by an Officer of
the Issuers or on behalf of any other Person, as the case may be, who must be the principal
executive officer, the principal financial officer, the treasurer or the principal accounting
officer of AMLLC or such other Person that meets the requirements set forth in this Indenture.

“Opinion of Counsel” means a written opinion from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of or counsel to the Issuers or the Trustee.

“Other Pari Passu Lien Obligations” means any Indebtedness or other Obligations
(including Hedging Obligations) having Pari Passu Lien Priority relative to the Notes with respect
to the Collateral and is not secured by any other assets and, in the case of Indebtedness for
borrowed money, has a stated maturity that is equal to or longer than the Notes; provided that an
authorized representative of the holders of such Indebtedness shall have executed a joinder to the
Security Documents and the Intercreditor Agreement.

“Parent” means the direct parent company of AMLLC.

“Parent Entity” means Parent and any Person that is a direct or indirect parent of
AMLLC.

“Pari Passu Lien Priority” means, relative to specified Indebtedness, having equal
Lien priority on specified Collateral and either subject to the Intercreditor Agreement on a
substantially identical basis as the holders of such specified Indebtedness or subject to
intercreditor agreements providing holders of the Indebtedness intended to have Pari Passu Lien
Priority with substantially the same rights and obligations that the holders of such specified
Indebtedness have pursuant to the Intercreditor Agreement as to the specified Collateral.

“Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to
DTC, shall include Euroclear and Clearstream).

“Permitted Asset Swap” means the concurrent purchase and sale or exchange of Related
Business Assets or a combination of Related Business Assets and cash or Cash Equivalents between
the Issuers or any of the Restricted Subsidiaries and another Person; provided, that any cash or
Cash Equivalents received must be applied in accordance with Section 4.10.

“Permitted Holders” means (1) each of the Investors and members of management of AMLLC
(or any Parent Entity) who are holders of Equity Interests of AMLLC (or any Parent Entity) on the
Issue Date and any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act or any successor provision) of which any of the foregoing are members; provided that,
in the case of such group and without giving effect to the existence of such group or any other
group, such Investors and members of management, collectively, have beneficial ownership of more
than 50% of the total voting power of the Voting Stock of AMLLC or any Parent Entity or (2) any
Permitted Parent. Any Person or group whose acquisition of beneficial ownership constitutes a
Change of Control in respect of which a Change of Control Offer is made in accordance with the
requirements of this Indenture will thereafter, together with its Affiliates, constitute an
additional Permitted Holder.

 

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“Permitted Investments” means:

(1) any Investment in an Issuer or any of the Restricted Subsidiaries;

(2) any Investment in cash or Cash Equivalents;

(3) any Investment by an Issuer or any of the Restricted Subsidiaries in a Person that
is engaged in a Similar Business if as a result of such Investment:

(a) such Person becomes a Restricted Subsidiary; or

(b) such Person, in one transaction or a series of related transactions, is
merged, amalgamated or consolidated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated into, an Issuer or a Restricted
Subsidiary,

and, in each case, any Investment held by such Person; provided, that such Investment was
not acquired by such Person in contemplation of such acquisition, merger, amalgamation,
consolidation or transfer;

(4) any Investment in securities or other assets not constituting cash or Cash
Equivalents and received in connection with an Asset Sale made pursuant to the provisions of
Section 4.10 or any other disposition of assets not constituting an Asset Sale;

(5) any Investment existing on the Issue Date or made pursuant to binding commitments
in effect on the Issue Date to the extent described in the Offering Memorandum, or an
Investment consisting of any extension, modification or renewal of any such Investment
existing on the Issue Date or binding commitment in effect on the Issue Date to the extent
described in the Offering Memorandum; provided that the amount of any such Investment may be
increased in such extension, modification or renewal only (a) as required by the terms of
such Investment or binding commitment as in existence on the Issue Date (including as a
result of the accrual or accretion of interest or original issue discount or the issuance of
pay-in-kind securities) or (b) as otherwise permitted under this Indenture;

(6) any Investment acquired by an Issuer or any of the Restricted Subsidiaries:

(a) in exchange for any other Investment or accounts receivable held by an
Issuer or any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the Issuers of such other
Investment or accounts receivable;

(b) in satisfaction of judgments against other Persons; or

(c) as a result of a foreclosure by an Issuer or any of the Restricted
Subsidiaries with respect to any secured Investment or other transfer of title with
respect to any secured Investment in default;

(7) Hedging Obligations permitted under clause (10) of Section 4.09(b);

(8) any Investment in a Similar Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (8) that are at that time
outstanding, not to exceed the greater of 3.0% of Total Assets and $50,000,000 at the time
of such Investment (with the fair market value of each Investment being measured at the time
made and without giving effect to subsequent changes in value);

 

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(9) Investments the payment for which consists of Equity Interests (exclusive of
Disqualified Stock) of AMLLC or any Parent Entity; provided, however, that such Equity
Interests will not increase the amount available for Restricted Payments under clause (3) of
Section 4.07(a);

(10) guarantees of Indebtedness permitted under Section 4.09;

(11) any transaction to the extent it constitutes an Investment that is permitted and
made in accordance with the provisions of Section 4.11(b) (except transactions described in
clauses (2), (5) and (9) of Section 4.11(b));

(12) Investments consisting of purchases and acquisitions of inventory, supplies,
material or equipment or the licensing or contribution of intellectual property pursuant to
joint marketing arrangements with other Persons;

(13) additional Investments having an aggregate fair market value, taken together with
all other Investments made pursuant to this clause (13) that are at that time outstanding
(without giving effect to the sale of an Unrestricted Subsidiary to the extent the proceeds
of such sale do not consist of cash or marketable securities), not to exceed the greater of
3.75% of Total Assets and $65,000,000 at the time of such Investment (with the fair market
value of each Investment being measured at the time made and without giving effect to
subsequent changes in value);

(14) Investments relating to a Receivables Subsidiary that, in the good faith
determination of the Issuers are necessary or advisable to effect any Receivables Facility
or any repurchase obligation in connection therewith;

(15) advances to, or guarantees of Indebtedness of, employees not in excess of
$15,000,000 outstanding at any one time, in the aggregate;

(16) loans and advances to officers, directors and employees for business related
travel expenses, moving expenses and other similar expenses or payroll advances, in each
case incurred in the ordinary course of business or consistent with past practices or to
fund such Person’s purchase of Equity Interests of AMLLC or any Parent Entity;

(17) advances, loans or extensions of trade credit in the ordinary course of business
by an Issuer or any of the Restricted Subsidiaries;

(18) Investments consisting of purchases and acquisitions of assets or services in the
ordinary course of business;

(19) repurchases of Notes; and

(20) Investments in the ordinary course of business consisting of Article 3
endorsements for collection or deposit and Article 4 customary trade arrangements with
customers consistent with past practices.

 

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“Permitted Liens” means, with respect to any Person:

(1) pledges, deposits or security by such Person under workmen’s compensation laws,
unemployment insurance, employers’ health tax, and other social security laws or similar
legislation or other insurance related obligations (including, but not limited to, in
respect of deductibles, self insured retention amounts and premiums and adjustments thereto)
or indemnification obligations of (including obligations in respect of letters of credit or
bank guarantees for the benefit of) insurance carriers providing property, casualty or
liability insurance, or good faith deposits in connection with bids, tenders, contracts
(other than for the payment of Indebtedness) or leases to which such Person is a party, or
deposits to secure public or statutory obligations of such Person or deposits of cash or
U.S. government bonds to secure surety, stay, customs or appeal bonds to which such Person
is a party, or deposits as security for contested taxes or import duties or for the payment
of rent, performance and return-of-money bonds and other similar obligations (including
letters of credit issued in lieu of any such bonds or to support the issuance thereof and
including those to secure health, safety and environmental obligations), in each case
incurred in the ordinary course of business;

(2) Liens imposed by law or regulation, such as landlords’, carriers’, warehousemen’s
and mechanics’, materialmen’s and repairmen’s, contractors’, supplier of materials,
architects’, and other like Liens, in each case for sums not yet overdue for a period of
more than 30 days or that are being contested in good faith by appropriate proceedings or
other Liens arising out of judgments or awards against such Person with respect to which
such Person shall then be proceeding with an appeal or other proceedings for review if
adequate reserves with respect thereto are maintained on the books of such Person in
accordance with GAAP;

(3) Liens for taxes, assessments or other governmental charges not yet overdue for a
period of more than 30 days or not yet payable or subject to penalties for nonpayment or
which are being contested in good faith by appropriate proceedings diligently conducted, if
adequate reserves with respect thereto are maintained on the books of such Person in
accordance with GAAP;

(4) Liens in favor of the issuers of performance, surety, bid, indemnity, warranty,
release, appeal or similar bonds or with respect to other regulatory requirements or letters
of credit or bankers’ acceptances and completion guarantees provided for, in each case
issued pursuant to the request of and for the account of such Person in the ordinary course
of its business;

(5) minor survey exceptions, minor encumbrances, ground leases, easements or
reservations of, or rights of others for, licenses, rights-of-way, servitudes, drains,
sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning,
building code or other restrictions (including minor defects and irregularities in title and
similar encumbrances) as to the use of real properties or Liens incidental, to the conduct
of the business of such Person or to the ownership of its properties which were not incurred
in connection with Indebtedness and which do not in the aggregate materially impair their
use in the operation of the business of such Person;

(6) Liens securing Indebtedness permitted to be incurred pursuant to clause (4),
(12)(b), (18) or (23) of Section 4.09(b); provided that (a) Liens securing Indebtedness
permitted to be incurred pursuant to such clause (4) extend only to the assets purchased
with the proceeds of such Indebtedness and the proceeds and products thereof; (b) Liens
securing Indebtedness permitted to be incurred pursuant to such clause (18) extend only to
the assets of Foreign Subsidiaries; and (c) Liens securing Indebtedness permitted to be
incurred pursuant to such clause (23) are solely on acquired property or extend only to the
assets of the acquired entity, as the case may be, and the proceeds and products thereof; provided, further, that to the extent any Liens
cover the Notes Collateral, this clause (6) shall be available to permit such Liens only to
the extent that such Liens secure Other Pari Passu Lien Obligations;

 

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(7) Liens existing on the Issue Date or pursuant to agreements in existence on the
Issue Date;

(8) Liens on property or shares of stock or other assets of a Person at the time such
Person becomes a Subsidiary; provided, however, such Liens are not created or incurred in
connection with, or in contemplation of, such other Person becoming such a Subsidiary;
provided, further, however, that such Liens may not extend to any other property owned by an
Issuer or any of the Restricted Subsidiaries (other than after-acquired property that is (a)
affixed or incorporated into the property covered by such Lien, (b) after-acquired property
subject to a Lien securing such Indebtedness, the terms of which Indebtedness require or
include a pledge of after-acquired property (it being understood that such requirement shall
not be permitted to apply to any property to which such requirement would not have applied
but for such acquisition) and (c) the proceeds and products thereof);

(9) Liens on property or other assets at the time an Issuer or a Restricted Subsidiary
acquired the property or such other assets, including any acquisition by means of a merger,
amalgamation or consolidation with or into an Issuer or any of the Restricted Subsidiaries;
provided, however, that such Liens are not created or incurred in connection with, or in
contemplation of, such acquisition, merger, amalgamation or consolidation; provided,
further, however, that the Liens may not extend to any other property owned by an Issuer or
any of the Restricted Subsidiaries;

(10) Liens securing Obligations relating to any Indebtedness or other obligations of a
Restricted Subsidiary owing to an Issuer or a Guarantor permitted to be incurred in
accordance with Section 4.09;

(11) Liens securing Hedging Obligations; provided that with respect to Hedging
Obligations relating to Indebtedness, such Indebtedness is permitted under this Indenture;

(12) Liens on specific items of inventory of other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances or trade letters of
credit issued or created for the account of such Person to facilitate the purchase, shipment
or storage of such inventory or other goods;

(13) leases, subleases, licenses or sublicenses (including of intellectual property)
granted to others in the ordinary course of business which do not materially interfere with
the ordinary conduct of the business of the Issuers or any of the Restricted Subsidiaries
and do not secure any Indebtedness;

(14) Liens arising from Uniform Commercial Code (or equivalent statute, including the
Personal Property Security Act) financing statement filings regarding operating leases or
consignments entered into by the Issuers and the Restricted Subsidiaries in the ordinary
course of business;

(15) Liens in favor of an Issuer or any Guarantor;

 

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(16) Liens on vehicles or equipment of an Issuer or any of the Restricted Subsidiaries
granted in the ordinary course of business;

(17) Liens on accounts receivable and related assets incurred in connection with a
Receivables Facility;

(18) Liens to secure any modification, refinancing, refunding, extension, renewal or
replacement (or successive refinancing, refunding, extensions, renewals or replacements) as
a whole, or in part, of any Indebtedness secured by any Lien referred to in the foregoing
clauses (6), (7), (8), (9) and (41); provided, however, that (a) such new Lien shall be
limited to all or part of the same property that secured the original Lien (plus accessions,
additions and improvements on such property, including after-acquired property that is (i)
affixed or incorporated into the property covered by such Lien, (ii) after-acquired property
subject to a Lien securing such Indebtedness, the terms of which Indebtedness require or
include a pledge of after-acquired property (it being understood that such requirement shall
not be permitted to apply to any property to which such requirement would not have applied
but for such acquisition) and (iii) the proceeds and products thereof) and (b) the
Indebtedness secured by such Lien at such time is not increased to any amount greater than
the sum of (x) the outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clauses (6), (7), (8), (9) and (41) at the time the original
Lien became a Permitted Lien under this Indenture, and (y) an amount necessary to pay any
fees and expenses, including premiums and accrued and unpaid interest, related to such
modification, refinancing, refunding, extension, renewal or replacement;

(19) deposits made or other security provided in the ordinary course of business to
secure liability to insurance carriers;

(20) other Liens securing obligations which obligations do not exceed the greater of
$20,000,000 and 1.5% of Total Assets at any one time outstanding, with the amount determined
on the dates of incurrence of such obligations;

(21) Liens securing judgments for the payment of money not constituting an Event of
Default under clause (5) under Section 6.01(a) so long as such Liens are adequately bonded
and any appropriate legal proceedings that may have been duly initiated for the review of
such judgment have not been finally terminated or the period within which such proceedings
may be initiated has not expired;

(22) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods in the ordinary
course of business;

(23) Liens (a) of a collection bank arising under Section 4-210 of the Uniform
Commercial Code on items in the course of collection, (b) attaching to commodity trading
accounts or other commodity brokerage accounts incurred in the ordinary course of business,
and (c) in favor of banking institutions arising as a matter of law encumbering deposits
(including the right of set-off) and which are within the general parameters customary in
the banking industry;

(24) Liens deemed to exist in connection with Investments in repurchase agreements
permitted under Section 4.09; provided that such Liens do not extend to any assets other
than those that are the subject of such repurchase agreement;

 

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(25) Liens encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage accounts incurred
in the ordinary course of business and not for speculative purposes;

(26) Liens that are contractual rights of set-off (a) relating to the establishment of
depository relations with banks not given in connection with the issuance of Indebtedness,
(b) relating to pooled deposit or sweep accounts of an Issuer or any of the Restricted
Subsidiaries to permit satisfaction of overdraft or similar obligations incurred in the
ordinary course of business of the Issuers and the Restricted Subsidiaries or (c) relating
to purchase orders and other agreements entered into with customers of an Issuer or any of
the Restricted Subsidiaries in the ordinary course of business;

(27) Liens securing Obligations permitted to be incurred under Credit Facilities,
including any letter of credit facility relating thereto, that was permitted by the terms of
this Indenture to be incurred pursuant to clause (1) of Section 4.09(b);

(28) [Reserved];

(29) Liens securing Obligations owed by an Issuer or any Restricted Subsidiary to any
lender, agent or arranger under the Credit Facilities or any Affiliate of such a lender,
agent or arranger in respect of any Hedging Obligations or Bank Products;

(30) any encumbrance or restriction (including put and call arrangements) with respect
to capital stock of any joint venture or similar arrangement pursuant to any joint venture
or similar agreement;

(31) Liens solely on any cash earnest money deposits made by an Issuer or any of the
Restricted Subsidiaries in connection with any letter of intent or purchase agreement
permitted;

(32) Liens on Capital Stock of an Unrestricted Subsidiary that secure Indebtedness or
other obligations of such Unrestricted Subsidiary;

(33) Liens arising out of conditional sale, title retention, consignment or similar
arrangements with vendors for the sale or purchase of goods entered into by any Issuer or
any Restricted Subsidiary in the ordinary course of business;

(34) ground leases or subleases, licenses or sublicenses in respect of real property on
which facilities owned or leased by any Issuer or any of its Subsidiaries are located;

(35) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

(36) the reservations, limitations, provisos and conditions expressed in any original
grants of real or immoveable property, which do not materially impair the use of the
affected land for the purpose used or intended to be used by that Person;

(37) any Lien resulting from the deposit of cash or securities in connection with the
performance of a bid, tender, sale or contract (excluding the borrowing of money) entered
into in the ordinary course of business or deposits of cash or securities in order to secure
appeal bonds or bonds required in respect of judicial proceedings;

 

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(38) any Lien in favor of a lessor or licensor for rent to become due or for other
obligations or acts, the payment or performance of which is required under any lease as a
condition to the continuance of such lease;

(39) Liens arising solely from precautionary UCC or Personal Property Security Act
financing statements or similar filings;

(40) Liens on the Collateral in favor of any collateral agent relating to such
collateral agent’s administrative expenses with respect to the Collateral; and

(41) Liens securing any Other Pari Passu Lien Obligations incurred pursuant to Section
4.09(a); provided, however, that, at the time of incurrence of such Other Pari Passu Lien
Obligations under this clause (41) and after giving pro forma effect thereto, the
Consolidated Secured Debt Ratio would be no greater than 5.5 to 1.0;

(42) Liens on the assets of non-Guarantor Subsidiaries securing Indebtedness of such
Subsidiaries that was permitted by this Indenture to be incurred;

(43) all rights of expropriation, access or use or other similar right conferred by or
reserved by any federal, state or municipal authority or agency;

(44) any agreements with any governmental authority or utility that do not, in the
aggregate, have a materially adverse effect on the use or value of real property and
improvements thereon in the judgment of the management of AMLLC;

(45) Liens (i) on cash advances in favor of the seller of any property to be acquired
in an Investment permitted under this Indenture to be applied against the purchase price for
such Investment, and (ii) consisting of an agreement to sell, transfer, lease or otherwise
dispose of any property in a transaction permitted under Section 4.10, in each case, solely
to the extent such Investment or sale, disposition, transfer or lease, as the case may be,
would have been permitted on the date of the creation of such Lien; and

(46) agreements to subordinate any interest of any Issuer or any Restricted Subsidiary
in any accounts receivable or other proceeds arising from inventory consigned by any Issuer
or any Restricted Subsidiary pursuant to an agreement entered into in the ordinary course of
business.

For purposes of determining compliance with this definition, (A) Lien need not be incurred
solely by reference to one category of permitted Liens described in this definition but are
permitted to be incurred in part under any combination thereof and of any other available exemption
and (B) in the event that Lien (or any portion thereof) meets the criteria of one or more of the
categories of Permitted Liens, AMLLC shall, in its sole discretion, classify or reclassify such
Lien (or any portion thereof) in any manner that complies with this definition.

For purposes of this definition, the term “Indebtedness” shall be deemed to include interest
on such Indebtedness.

“Permitted Parent” means any Parent Entity formed not in connection with, or in
contemplation of, a transaction (other than the Transactions) that, assuming such Parent Entity was
not a Parent Entity, would constitute a Change of Control.

 

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“Person” means any individual, corporation, limited liability company, partnership, joint
venture, association, joint stock company, trust, unincorporated organization, government or any
agency or political subdivision thereof or any other entity.

“Personal Property Security Act” means the Personal Property Security Act (Ontario)
and the legislation of other provinces or territories in Canada relating to security in personal
property generally, including accounts receivable, as adopted by and in effect from time to time in
such provinces or territories in Canada, as applicable.

“Pledge Agreement” means the Pledge Agreement dated as of the Issue Date, among the
Issuers, the Guarantors and Wells Fargo Bank, National Association, as Notes Collateral Agent, as
it may be amended, modified or supplemented from time to time.

“Preferred Stock” means any Equity Interest with preferential rights of payment of
dividends or upon liquidation, dissolution, or winding up.

“Private Placement Legend” means the legend set forth in Section 2.06(g)(i) to be
placed on all Notes issued under this Indenture, except where otherwise permitted by the provisions
of this Indenture.

“QIB” means a “qualified institutional buyer” as defined in Rule 144A.

“Qualified Proceeds” means assets that are used or useful in, or Capital Stock of any
Person engaged in, a Similar Business; provided that the fair market value of any such assets or
Capital Stock shall be determined by the Issuers in good faith.

“Rating Agencies” means Moody’s and S&P or if Moody’s or S&P or both shall not make a
rating on the Notes publicly available, a nationally recognized statistical rating agency or
agencies, as the case may be, selected by the Issuers which shall be substituted for Moody’s or S&P
or both, as the case may be.

“Real Estate Asset” means at the time of determination, any fee interest of any Issuer
or Guarantor in owned real property; provided that such asset has a fair market value in
excess of $5,000,000.

“Receivables Facility” means any of one or more receivables financing facilities as
amended, supplemented, modified, extended, renewed, restated or refunded from time to time, the
Obligations of which are non recourse (except for customary representations, warranties, covenants
and indemnities made in connection with such facilities) to an Issuer or any of the Restricted
Subsidiaries (other than a Receivables Subsidiary) pursuant to which the Issuers or any of the
Restricted Subsidiaries sells its accounts receivable to either (1) a Person that is not a
Restricted Subsidiary or (2) a Restricted Subsidiary or Receivables Subsidiary that in turn sells
its accounts receivable to a Person that is not a Restricted Subsidiary.

“Receivables Fees” means distributions or payments made directly or by means of
discounts with respect to any accounts receivable or participation interest therein issued or sold
in connection with, and other fees paid to a Person that is not a Restricted Subsidiary in
connection with, any Receivables Facility.

“Receivables Subsidiary” means any Subsidiary formed for the purpose of, and that
solely engages only in one or more Receivables Facilities and other activities reasonably related
thereto.

 

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“Record Date” for the interest, if any, payable on any applicable Interest Payment
Date means February 15 or August 15 (whether or not a Business Day) next preceding such Interest
Payment Date.

“Redemption Bridge Loans” means subordinated promissory notes, in an aggregate
principal amount not to exceed $5,000,000, delivered by AMLLC to certain of the Investors, which
promissory notes shall have a maturity date of no more than 90 days after the Issue Date.

“Registration Rights Agreement” means the registration rights agreement related to the
Notes dated as of the Issue Date among the Issuers, the Guarantors and the Initial Purchasers and
with respect to any Additional Notes, one or more registration rights agreements among the Issuers,
the Guarantors and the other parties thereto, as such agreements may be amended, modified or
supplemented from time to time, relating to rights given by the Issuers to the purchasers of
Additional Notes to register such Additional Notes under the Securities Act.

“Regulation S” means Regulation S promulgated under the Securities Act.

“Regulation S Global Note” means a Regulation S Temporary Global Note or Regulation S
Permanent Global Note, as applicable.

“Regulation S Permanent Global Note” means a permanent Global Note in the form of
Exhibit A bearing the Global Note Legend and the Private Placement Legend and deposited with or on
behalf of and registered in the name of the Depositary or its nominee, issued in a denomination
equal to the outstanding principal amount of the Regulation S Temporary Global Note upon expiration
of the Restricted Period.

“Regulation S Temporary Global Note” means a temporary Global Note in the form of
Exhibit A bearing the Global Note Legend, the Private Placement Legend and the Regulation S
Temporary Global Note Legend and deposited with or on behalf of and registered in the name of the
Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of
the Notes initially sold in reliance on Rule 903.

“Regulation S Temporary Global Note Legend” means the legend set forth in Section
2.06(g)(iii).

“Related Business Assets” means assets (other than cash or Cash Equivalents) used or
useful in a Similar Business; provided that any assets received by an Issuer or a Restricted
Subsidiary in exchange for assets transferred by an Issuer or a Restricted Subsidiary shall not be
deemed to be Related Business Assets if they consist of securities of a Person, unless upon receipt
of the securities of such Person, such Person would become a Restricted Subsidiary.

“Related Person” means, with respect to any specified Person, such Person’s Affiliates
and the respective officers, directors, employees, agents, advisors and attorneys-in-fact of such
Permitted Affiliates.

“Responsible Officer” means, when used with respect to the Trustee or Notes Collateral
Agent, any officer within the corporate trust department of the Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any
other officer of the Trustee who customarily performs functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter
is referred because of such Person’s
knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

 

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“Restricted Definitive Note” means a Definitive Note bearing the Private Placement
Legend.

“Restricted Global Note” means a Global Note bearing the Private Placement Legend.

“Restricted Investment” means an Investment other than a Permitted Investment.

“Restricted Period” means the 40-day distribution compliance period as defined in
Regulation S.

“Restricted Subsidiary” means, at any time, any direct or indirect Subsidiary of AMLLC
(including any Foreign Subsidiary) that is not then an Unrestricted Subsidiary or an Issuer;
provided, however, that upon the occurrence of an Unrestricted Subsidiary ceasing to be an
Unrestricted Subsidiary, such Subsidiary shall be included in the definition of “Restricted
Subsidiary.”

“Rule 144” means Rule 144 promulgated under the Securities Act.

“Rule 144A” means Rule 144A promulgated under the Securities Act.

“Rule 903” means Rule 903 promulgated under the Securities Act.

“Rule 904” means Rule 904 promulgated under the Securities Act.

“S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any
successor to its rating agency business.

“Sale and Lease-Back Transaction” means any arrangement providing for the leasing by
an Issuer or any of the Restricted Subsidiaries of any real or tangible personal property, which
property has been or is to be sold or transferred by the Issuers or such Restricted Subsidiary to a
third Person in contemplation of such leasing.

“SEC” means the U.S. Securities and Exchange Commission.

“Secured Indebtedness” means any Indebtedness of an Issuer or any of the Restricted
Subsidiaries secured by a Lien.

“Secured Parties” means the Holders, the Trustee, the Notes Collateral Agent and the
beneficiaries of each indemnification obligation undertaken by the Issuers or any Guarantors under
the Indenture, the Notes or the Security Documents and the successors and assigns of each of the
foregoing.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

“Security Agreement” means the Notes Security Agreement, dated as of the Issue Date,
among Issuers, the Guarantors and Wells Fargo Bank, National Association, as Notes Collateral
Agent, as it may be amended, supplemented or otherwise modified from time to time.

 

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“Security Documents” means the security agreements, pledge agreements, mortgages,
deeds of trust, collateral assignments and related agreements, as amended, supplemented, restated,
renewed, refunded, replaced, restructured, repaid, refinanced or otherwise modified from time to
time, creating the security interests in any assets or property in favor of the Notes Collateral
Agent for the benefit of the Secured Parties as contemplated by this Indenture, including without
limitation, the Pledge Agreement and the Security Agreement.

“Senior Credit Agreement” means the Credit Facility under the credit agreement to be
entered into as of the Issue Date by and among AMLLC, the lenders party thereto in their capacities
as lenders thereunder and UBS AG, Stamford Branch, as Administrative Agent, and the other agents
and other parties thereto, including any related notes, letters of credit, guarantees, collateral
documents, instruments and agreements executed in connection therewith, and any appendices,
exhibits, annexes or schedules to any of the foregoing (as the same may be in effect from time to
time) and any amendments, supplements, modifications, extensions, renewals, restatements,
refundings, exchanges or refinancings thereof (whether with the original agents and lenders or
other agents or lenders or otherwise, and whether provided under the original credit agreement or
other credit agreements or otherwise) and any indentures or credit facilities or commercial paper
facilities with banks or other institutional lenders or investors that replace, refund, exchange or
refinance any part of the loans, notes, other credit facilities or commitments thereunder,
including any such replacement, refunding, exchange or refinancing facility or indenture that
increases the amount borrowable thereunder or alters the maturity thereof (provided that such
increase in borrowings is permitted under Section 4.09).

“Senior Indebtedness” means:

(1) all Indebtedness of an Issuer or any Guarantor outstanding under the Senior Credit
Agreement or Notes and related Guarantees (including interest accruing on or after the
filing of any petition in bankruptcy or similar proceeding or for reorganization of an
Issuer or any Guarantor (at the rate provided for in the documentation with respect thereto,
regardless of whether or not a claim for post filing interest is allowed in such
proceedings)), and any and all other fees, expense reimbursement obligations,
indemnification amounts, penalties, and other amounts (whether existing on the Issue Date or
thereafter created or incurred) and all obligations of an Issuer or any Guarantor to
reimburse any bank or other Person in respect of amounts paid under letters of credit,
acceptances or other similar instruments;

(2) all Hedging Obligations (and guarantees thereof) owing to a Bank Lender or any of
its Affiliates (or any Person that was a Bank Lender or an Affiliate of such Bank Lender at
the time the applicable agreement giving rise to such Hedging Obligation was entered into);
provided that such Hedging Obligations are permitted to be incurred under the terms of this
Indenture;

(3) any other Indebtedness of an Issuer or any Guarantor permitted to be incurred under
the terms of this Indenture, unless the instrument under which such Indebtedness is incurred
expressly provides that it is subordinated in right of payment to the Notes or any related
Guarantee; and

(4) all Obligations with respect to the items listed in the preceding clauses (1), (2)
and (3);

provided, however, that Senior Indebtedness shall not include:

(a) any obligation of such Person to an Issuer or any of their respective Subsidiaries;

 

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(b) any liability for federal, state, local or other taxes owed or owing by such
Person;

(c) any accounts payable or other liability to trade creditors arising in the ordinary
course of business;

(d) any Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person; or

(e) that portion of any Indebtedness which at the time of incurrence is incurred in
violation of this Indenture.

“Shelf Registration Statement” means the Shelf Registration Statement as defined in
the Registration Rights Agreement.

“Significant Subsidiary” means any Restricted Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the
Securities Act, as such regulation is in effect on the Issue Date.

“Similar Business” means any business conducted or proposed to be conducted by the
Issuers and the Restricted Subsidiaries on the Issue Date or any business that is similar,
reasonably related, incidental or ancillary thereto.

“Subject Property” means any contract, license, lease, agreement, instrument or other
document to the extent that such grant of a security interest therein is (1) prohibited by, or
constitutes a breach or default under, or results in the termination of, or requires any consent
not obtained under, such contract, license, lease, agreement, instrument or other document, or, in
the case of any Equity Interests or other securities, any applicable shareholder or similar
agreement or (2) otherwise constitutes or results in the abandonment, invalidation or
unenforceability of any right, title or interest of any Grantor under such contract, license,
lease, agreement, instrument or other document, except, in each case, to the extent that applicable
law or the term in such contract, license, lease, agreement, instrument or other document or
shareholder or similar agreement providing for such prohibition, breach, default or termination or
requiring such consent is ineffective under applicable law or purports to prohibit the granting of
a security interest over all or a material portion of assets of any Grantor; provided, however,
that the foregoing exclusions shall not apply to the extent that any such prohibition, default or
other term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the
Uniform Commercial Code of any relevant jurisdiction or any other applicable law or principles of
equity; provided, further, that the security interest shall attach immediately to any portion of
such Subject Property that does not result in any of the consequences specified above including,
without limitation, any proceeds of such Subject Property.

“Subordinated Indebtedness” means, with respect to the Notes,

(1) any Indebtedness of an Issuer which is by its terms subordinated in right of
payment to the Notes, and

(2) any Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the Guarantee of such entity of the Notes.

 

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“Subsidiary” means, with respect to any Person:

(1) any corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than 50% of the
total voting power of shares of Capital Stock entitled to vote in the election of directors,
managers or trustees thereof is at the time of determination owned or controlled, directly
or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a
combination thereof; and

(2) any partnership, joint venture, limited liability company or similar entity of
which

(x) more than 50% of the capital accounts, distribution rights, total equity
and voting interests or general or limited partnership interests, as applicable, are
owned or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form of
membership, general, special or limited partnership or otherwise, and

(y) such Person or any Restricted Subsidiary of such Person is a controlling
general partner or otherwise controls such entity.

“Total Assets” means the total assets of AMLLC and the Restricted Subsidiaries on a
consolidated basis, as shown on the most recent balance sheet of AMLLC or such other Person as may
be expressly stated.

“Transaction Agreement” means the Agreement and Plan of Merger, dated as of September
8, 2010, among Carey Investment Holdings Corp., Carey Intermediate Holdings Corp., Carey
Acquisition Corp. and AMH Holdings II, Inc., as the same may be amended prior to the Issue Date.

“Transaction Expenses” means any fees or expenses incurred or paid by the Issuers or
any Restricted Subsidiary in connection with the Transactions, including payment to officers,
employees and directors as change of control payments, severance payments, special or retention
bonuses and charges for repurchase or rollover of, or modifications to, stock options.

“Transactions” means the transactions contemplated by the Transaction Agreement, the Mergers,
the refinancing of certain indebtedness of Parent and the Issuers, redemption of the Existing
Notes, the issuance of the Notes and borrowings under the Senior Credit Agreement as in effect on
the Issue Date.

“Treasury Rate” means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from such Redemption Date to November 1, 2013; provided, however, that if the
period from such Redemption Date to November 1, 2013 is less than one year, the weekly average
yield on actually traded United States Treasury securities adjusted to a constant maturity of one
year will be used.

“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended (15
U.S.C §§ 77aaa-77bbbb).

“Trustee” means Wells Fargo Bank, National Association, a national banking association, as
trustee, until a successor replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving hereunder.

 

-37-

 

“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as in effect in
the relevant jurisdiction from time to time. Unless otherwise specified, references to the Uniform
Commercial Code herein refer to the New York Uniform Commercial Code.

“Unrestricted Definitive Note” means one or more Definitive Notes that do not bear and
are not required to bear the Private Placement Legend.

“Unrestricted Global Note” means a permanent Global Note, substantially in the form of
Exhibit A that bears the Global Note Legend and that has the “Schedule of Exchanges of Interests in
the Global Note” attached thereto, and that is deposited with or on behalf of and registered in the
name of the Depositary, representing Notes that do not bear the Private Placement Legend.

“Unrestricted Subsidiary” means:

(1) any Subsidiary of AMLLC which at the time of determination is an Unrestricted
Subsidiary (as designated by the Issuers, as provided below); and

(2) any Subsidiary of an Unrestricted Subsidiary.

The Issuers may designate any Subsidiary of AMLLC (other than Associated Materials Finance,
Inc.) (including any existing Subsidiary and any newly acquired or newly formed Subsidiary) to be
an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity
Interests or Indebtedness of, or owns or holds any Lien on, any property of, an Issuer or any
Restricted Subsidiary (other than solely any Subsidiary of the Subsidiary to be so designated);
provided that

(1) such designation complies with Section 4.07; and

(2) each of:

(a) the Subsidiary to be so designated; and

(b) its Subsidiaries

has not at the time of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness
pursuant to which the lender has recourse to any of the assets of an Issuer or any
Restricted Subsidiary (other than Equity Interests in the Unrestricted Subsidiary).

The Issuers may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided
that, immediately after giving effect to such designation, no Default shall have occurred and be
continuing and either:

(1) the Issuers could incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test described in Section 4.09(a); or

(2) the Fixed Charge Coverage Ratio for the Issuers and the Restricted Subsidiaries
would be greater than such ratio for the Issuers and the Restricted Subsidiaries immediately
prior to such designation, in each case on a pro forma basis taking into account such
designation.

Any such designation by the Issuers shall be notified by the Issuers to the Trustee by
promptly filing with the Trustee a copy of the resolution of the Board of AMLLC or any committee
thereof giving effect to such designation and an Officer’s Certificate certifying that such
designation complied with the foregoing provisions.

 

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“U.S. Person” means a U.S. person as defined in Rule 902(k) under the Securities Act.

“Voting Stock” of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the board of directors of such Person.

“Weighted Average Life to Maturity” means, when applied to any Indebtedness,
Disqualified Stock or Preferred Stock, as the case may be, at any date, the quotient obtained by
dividing:

(1) the sum of the products of the number of years from the date of determination to
the date of each successive scheduled principal payment of such Indebtedness or redemption
or similar payment with respect to such Disqualified Stock or Preferred Stock multiplied by
the amount of such payment; by

(2) the sum of all such payments.

“Wholly-Owned Subsidiary” of AMLLC means a Subsidiary of AMLLC, 100% of the
outstanding Equity Interests of which (other than directors’ qualifying shares) shall at the time
be owned by AMLLC or by one or more Wholly-Owned Subsidiaries of AMLLC.

Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined	 
	Term	 	in Section	 
	 
	 	 	 	 
	“ABL Asset Sale Offer”
	 	 	4.10	 
	“Acceptable Commitment”
	 	 	4.10	 
	“Additional Assets”
	 	 	4.10	 
	“Affiliate Transaction”
	 	 	4.11	 
	“Application Period”
	 	 	4.10	 
	“Asset Sale Offer”
	 	 	4.10	 
	“Authentication Order”
	 	 	2.02	 
	“Change of Control Offer”
	 	 	4.14	 
	“Change of Control Payment”
	 	 	4.14	 
	“Change of Control Payment Date”
	 	 	4.14	 
	“Covenant Defeasance”
	 	 	8.03	 
	“DTC”
	 	 	2.03	 
	“Event of Default”
	 	 	6.01	 
	“Excess Proceeds”
	 	 	4.10	 
	“incur”
	 	 	4.09	 
	“Legal Defeasance”
	 	 	8.02	 
	“Non-ABL Collateral”
	 	 	4.10	 
	“Note Register”
	 	 	2.03	 
	“Offer Amount”
	 	 	3.09	 
	“Offer Period”
	 	 	3.09	 
	“Pari Passu Indebtedness”
	 	 	4.10	 
	“Paying Agent”
	 	 	2.03	 
	“Purchase Date”
	 	 	3.09	 
	“Redemption Date”
	 	 	3.07	 

 

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	 	 	Defined	 
	Term	 	in Section	 
	 
	 	 	 	 
	“Refinancing Indebtedness”
	 	 	4.09	 
	“Refunding Capital Stock”
	 	 	4.07	 
	“Registrar”
	 	 	2.03	 
	“Restricted Payments”
	 	 	4.07	 
	“Reversion Date”
	 	 	4.16	 
	“Second Commitment”
	 	 	4.10	 
	“Subject Lien”
	 	 	4.12	 
	“Successor Company”
	 	 	5.01	 
	“Successor Person”
	 	 	5.01	 
	“Suspended Covenants”
	 	 	4.16	 
	“Suspension Period”
	 	 	4.16	 
	“Treasury Capital Stock”
	 	 	4.07	 

Section 1.03 Incorporation by Reference of Trust Indenture Act.

Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is
incorporated by reference in and made a part of this Indenture.

The following Trust Indenture Act terms used in this Indenture have the following meanings:

“indenture securities” means the Notes;

“indenture security Holder” means a Holder of a Note;

“indenture to be qualified” means this Indenture;

“indenture trustee” or “institutional trustee” means the Trustee; and

“obligor” on the Notes and the Guarantees means the Issuers and the Guarantors,
respectively, and any successor obligor upon the Notes and the Guarantees, respectively.

All other terms used in this Indenture that are defined by the Trust Indenture Act, defined by
Trust Indenture Act reference to another statute or defined by SEC rule under the Trust Indenture
Act have the meanings so assigned to them.

Section 1.04 Rules of Construction.

Unless the context otherwise requires:

(a) a term has the meaning assigned to it;

(b) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

(c) “or” is not exclusive;

(d) words in the singular include the plural, and in the plural include the singular;

 

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(e) “will” shall be interpreted to express a command;

(f) provisions apply to successive events and transactions;

(g) references to sections of, or rules under, the Securities Act shall be deemed to
include substitute, replacement or successor sections or rules adopted by the SEC from time
to time;

(h) unless the context otherwise requires, any reference to an “Article,” “Section,”
“clause” or “Exhibit” refers to an Article, Section, clause or Exhibit, as the case may be,
of this Indenture; and

(i) the words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not any particular Article, Section, clause or other
subdivision.

Section 1.05 Acts of Holders.

(a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing. Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered to the Trustee and,
where it is hereby expressly required, to the Issuers. Proof of execution of any such instrument
or of a writing appointing any such agent, or the holding by any Person of a Note, shall be
sufficient for any purpose of this Indenture and (subject to Section 7.01) conclusive in favor of
the Trustee and the Issuers, if made in the manner provided in this Section 1.05.

(b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by the certificate of any notary public
or other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by or on behalf of any legal entity other than an individual, such certificate or affidavit
shall also constitute proof of the authority of the Person executing the same. The fact and date
of the execution of any such instrument or writing, or the authority of the Person executing the
same, may also be proved in any other manner that the Trustee deems sufficient.

(c) The ownership of Notes shall be proved by the Note Register.

(d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Note shall bind every future Holder of the same Note and the Holder of every Note
issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in
respect of any action taken, suffered or omitted by the Trustee or the Issuers in reliance thereon,
whether or not notation of such action is made upon such Note.

(e) The Issuers may, in the circumstances permitted by the Trust Indenture Act, set a record
date for purposes of determining the identity of Holders entitled to give any request, demand,
authorization, direction, notice, consent, waiver or take any other act, or to vote or consent to
any action by vote or consent authorized or permitted to be given or taken by Holders. Unless
otherwise specified, if not set by the Issuers prior to the first solicitation of a Holder made by
any Person in respect of any such action, or in the case of any such vote, prior to such vote, any
such record date shall be the later of 30
days prior to the first solicitation of such consent or the date of the most recent list of
Holders furnished to the Trustee prior to such solicitation.

 

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(f) Without limiting the foregoing, a Holder entitled to take any action hereunder with regard
to any particular Note may do so with regard to all or any part of the principal amount of such
Note or by one or more duly appointed agents, each of which may do so pursuant to such appointment
with regard to all or any part of such principal amount. Any notice given or action taken by a
Holder or its agents with regard to different parts of such principal amount pursuant to this
paragraph shall have the same effect as if given or taken by separate Holders of each such
different part.

(g) Without limiting the generality of the foregoing, a Holder, including DTC that is the
Holder of a Global Note, may make, give or take, by a proxy or proxies duly appointed in writing,
any request, demand, authorization, direction, notice, consent, waiver or other action provided in
this Indenture to be made, given or taken by Holders, and DTC that is the Holder of a Global Note
may provide its proxy or proxies to the beneficial owners of interests in any such Global Note
through such depositary’s standing instructions and customary practices.

(h) The Issuers may fix a record date for the purpose of determining the Persons who are
beneficial owners of interests in any Global Note held by DTC entitled under the procedures of such
depositary to make, give or take, by a proxy or proxies duly appointed in writing, any request,
demand, authorization, direction, notice, consent, waiver or other action provided in this
Indenture to be made, given or taken by Holders. If such a record date is fixed, the Holders on
such record date or their duly appointed proxy or proxies, and only such Persons, shall be entitled
to make, give or take such request, demand, authorization, direction, notice, consent, waiver or
other action, whether or not such Holders remain Holders after such record date. No such request,
demand, authorization, direction, notice, consent, waiver or other action shall be valid or
effective if made, given or taken more than 90 days after such record date.

ARTICLE 2

THE NOTES

Section 2.01 Form and Dating; Terms.

(a) General. The Notes and the Trustee’s certificate of authentication shall be substantially
in the form of Exhibit A. The Notes may have notations, legends or endorsements required
by law, stock exchange rules or usage. Each Note shall be dated the date of its authentication.
The Notes shall be in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

(b) Global Notes. Notes issued in global form shall be substantially in the form of
Exhibit A (including the Global Note Legend thereon and the “Schedule of Exchanges of
Interests in the Global Note” attached thereto). Notes issued in definitive form shall be
substantially in the form of Exhibit A (but without the Global Note Legend thereon and
without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global
Note shall represent such of the outstanding Notes as shall be specified in the “Schedule of
Exchanges of Interests in the Global Note” attached thereto and each shall provide that it shall
represent up to the aggregate principal amount of Notes from time to time endorsed thereon and that
the aggregate principal amount of outstanding Notes represented thereby may from time to time be
reduced or increased, as applicable, to reflect exchanges and redemptions. Any endorsement of a
Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the
direction of the Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.06.

 

-42-

 

(c) Temporary Global Notes. Notes offered and sold in reliance on Regulation S shall
be issued initially in the form of the Regulation S Temporary Global Note, which shall be deposited
on behalf of the purchasers of the Notes represented thereby with the Trustee, as custodian for the
Depositary, and registered in the name of the Depositary or the nominee of the Depositary for the
accounts of designated agents holding on behalf of Euroclear or Clearstream, duly executed by the
Issuers and authenticated by the Trustee as hereinafter provided. The Restricted Period shall be
terminated upon the receipt by the Trustee of:

(i) a written certificate from the Depositary, together with copies of certificates
from Euroclear and Clearstream certifying that they have received certification of
non-United States beneficial ownership of 100% of the aggregate principal amount of the
Regulation S Temporary Global Note (except to the extent of any beneficial owners thereof
who acquired an interest therein during the Restricted Period pursuant to another exemption
from registration under the Securities Act and who shall take delivery of a beneficial
ownership interest in a 144A Global Note bearing a Private Placement Legend, all as
contemplated by Section 2.06(b)); and

(ii) an Officer’s Certificate from the Issuers.

Following the termination of the Restricted Period, beneficial interests in the Regulation S
Temporary Global Note shall be exchanged for beneficial interests in the Regulation S Permanent
Global Note pursuant to the Applicable Procedures. Simultaneously with the authentication of the
Regulation S Permanent Global Note, the Trustee shall cancel the Regulation S Temporary Global
Note. The aggregate principal amount of the Regulation S Temporary Global Note and the Regulation
S Permanent Global Note may from time to time be increased or decreased by adjustments made on the
records of the Trustee and the Depositary or its nominee, as the case may be, in connection with
transfers of interest as hereinafter provided.

(d) Terms. The aggregate principal amount of Notes that may be authenticated and delivered
under this Indenture is unlimited.

The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Issuers, the Guarantors and the Trustee, by their execution
and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be controlling.

The Notes shall be subject to repurchase by the Issuers pursuant to an Asset Sale Offer as
provided in Section 4.10 or a Change of Control Offer as provided in Section 4.14. The Notes shall
not be redeemable, other than as provided in Article 3.

Additional Notes ranking pari passu with the Initial Notes may be created and issued from time
to time by the Issuers without notice to or consent of the Holders and shall be consolidated with
and form a single class with the Initial Notes and shall have the same terms as to status,
redemption or otherwise as the Initial Notes; provided that the Issuers’ ability to issue
Additional Notes shall be subject to the Issuers’ compliance with Section 4.09.

(e) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and
the “General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of
Clearstream shall be applicable to transfers of beneficial interests in the Regulation S Temporary
Global Note and the Regulation S Permanent Global Notes that are held by Participants through
Euroclear or Clearstream.

 

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Section 2.02 Execution and Authentication.

At least one Officer shall execute the Notes on behalf of each of the Issuers by manual or
facsimile signature.

If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note shall nevertheless be valid.

A Note shall not be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose until authenticated substantially in the form of Exhibit A by the manual
signature of the Trustee. The signature shall be conclusive evidence that the Note has been duly
authenticated and delivered under this Indenture.

On the Issue Date, the Trustee shall, upon receipt of an Issuer Order (an “Authentication
Order”), authenticate and deliver the Initial Notes. In addition, at any time, from time to
time, the Trustee shall, upon receipt of an Authentication Order, authenticate and deliver any
Additional Notes for an aggregate principal amount specified in such Authentication Order for such
Additional Notes issued hereunder.

The Trustee may appoint an authenticating agent acceptable to the Issuers to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of
the Issuers.

Section 2.03 Registrar and Paying Agent.

The Issuers shall maintain an office or agency where Notes may be presented for registration
of transfer or for exchange (“Registrar”) and an office or agency where Notes may be presented for
payment (“Paying Agent”). The Registrar shall keep a register of the Notes (“Note
Register”) and of their transfer and exchange. The Issuers may appoint one or more
co-registrars and one or more additional paying agents. The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying agent. The Issuers may
change any Paying Agent or Registrar without prior notice to any Holder. The Issuers shall notify
the Trustee in writing of the name and address of any Agent not a party to this Indenture. If the
Issuers fail to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall
act as such. Either Issuer or any of AMLLC’s Subsidiaries may act as Paying Agent or Registrar.

The Issuers initially appoint The Depository Trust Company (“DTC”) to act as Depositary with
respect to the Global Notes.

The Issuers initially appoint the Trustee to act as the Paying Agent and Registrar for the
Notes and to act as Custodian with respect to the Global Notes.

 

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Section 2.04 Paying Agent to Hold Money in Trust.

The Issuers shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by
the Paying Agent for the payment of principal, premium, if any, or Additional Interest, if any, or
interest on the Notes, and will notify the Trustee of any default by the Issuers in making any such
payment. While any such default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Issuers at any time may require a Paying Agent to pay all money
held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Issuers or a Subsidiary of AMLLC) shall have no further liability for the money. If an Issuer or a
Subsidiary of AMLLC acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or
reorganization proceedings relating to the Issuers, the Trustee shall serve as Paying Agent for the
Notes.

Section 2.05 Holder Lists.

The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with
Trust Indenture Act Section 312(a). If the Trustee is not the Registrar, the Issuers shall furnish
to the Trustee at least two Business Days before each Interest Payment Date and at such other times
as the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of the Holders of Notes and the Issuers shall
otherwise comply with Trust Indenture Act Section 312(a).

Section 2.06 Transfer and Exchange.

(a) Transfer and Exchange of Global Notes. Except as otherwise set forth in this
Section 2.06, a Global Note may be transferred, in whole and not in part, only to another nominee
of the Depositary or to a successor Depositary or a nominee of such successor Depositary. A
beneficial interest in a Global Note may not be exchanged for a Definitive Note unless (i) the
Depositary (x) notifies the Issuers that it is unwilling or unable to continue as Depositary for
such Global Note or (y) has ceased to be a clearing agency registered under the Exchange Act and,
in either case, a successor Depositary is not appointed by the Issuers within 120 days or (ii)
there shall have occurred and be continuing a Default with respect to the Notes. Upon the
occurrence of any of the preceding events in (i) or (ii) above, Definitive Notes delivered in
exchange for any Global Note or beneficial interests therein will be registered in the names, and
issued in any approved denominations, requested by or on behalf of the Depositary (in accordance
with its customary procedures). Global Notes also may be exchanged or replaced, in whole or in
part, as provided in Sections 2.07 and 2.10. Every Note authenticated and delivered in exchange
for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06 or Section
2.07 or 2.10, shall be authenticated and delivered in the form of, and shall be, a Global Note,
except for Definitive Notes issued subsequent to any of the preceding events in (i) or (ii) above
and pursuant to Section 2.06(c). A Global Note may not be exchanged for another Note other than as
provided in this Section 2.06(a); provided, however, beneficial interests in a Global Note may be
transferred and exchanged as provided in Section 2.06(b), (c) or (f).

(b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer
and exchange of beneficial interests in the Global Notes shall be effected through the Depositary,
in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes shall be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii)
below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

(i) Transfer of Beneficial Interests in the Same Global Note. Beneficial
interests in any Restricted Global Note may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however, that
prior to the expiration of the Restricted Period, transfers of beneficial interests in the
Regulation S Temporary Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person (other than an Initial Purchaser). Beneficial interests in any
Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note. No written orders or instructions
shall be required to be delivered to the Registrar to effect the transfers described in this
Section 2.06(b)(i).

 

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(ii) All Other Transfers and Exchanges of Beneficial Interests in Global Notes.
In connection with all transfers and exchanges of beneficial interests that are not subject
to Section 2.06(b)(i), the transferor of such beneficial interest must deliver to the
Registrar either (A) (1) a written order from a Participant or an Indirect Participant given
to the Depositary in accordance with the Applicable Procedures directing the Depositary to
credit or cause to be credited a beneficial interest in another Global Note in an amount
equal to the beneficial interest to be transferred or exchanged and (2) instructions given
in accordance with the Applicable Procedures containing information regarding the
Participant account to be credited with such increase or (B) (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an
amount equal to the beneficial interest to be transferred or exchanged and (2) instructions
given by the Depositary to the Registrar containing information regarding the Person in
whose name such Definitive Note shall be registered to effect the transfer or exchange
referred to in (1) above; provided that in no event shall Definitive Notes be issued upon
the transfer or exchange of beneficial interests in the Regulation S Temporary Global Note
prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of
any certificates required pursuant to Rule 903. Upon consummation of an Exchange Offer by
the Issuers in accordance with Section 2.06(f), the requirements of this Section 2.06(b)(ii)
shall be deemed to have been satisfied upon receipt by the Registrar of the instructions
contained in the Letter of Transmittal delivered by the Holder of such beneficial interests
in the Restricted Global Notes. Upon satisfaction of all of the requirements for transfer
or exchange of beneficial interests in Global Notes contained in this Indenture and the
Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to Section 2.06(h).

(iii) Transfer of Beneficial Interests to Another Restricted Global Note. A
beneficial interest in any Restricted Global Note may be transferred to a Person who takes
delivery thereof in the form of a beneficial interest in another Restricted Global Note if
the transfer complies with the requirements of Section 2.06(b)(ii) and the Registrar
receives the following:

(A) if the transferee will take delivery in the form of a beneficial interest
in the 144A Global Note, then the transferor must deliver a certificate in the form
of Exhibit B, including the certifications in item (1) thereof; or

(B) if the transferee will take delivery in the form of a beneficial interest
in the Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit B, including the certifications in item (2) thereof.

 

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(iv) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for
Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of
Section 2.06(b)(ii) and:

(A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder of the beneficial
interest to be transferred, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal that it is not
(1) a Broker-Dealer, (2) a Person participating in the distribution of the Exchange
Notes or (3) a Person who is an affiliate (as defined in Rule 144) of an Issuer;

(B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

(C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

(D) the Registrar receives the following:

(1) if the holder of such beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a beneficial interest
in an Unrestricted Global Note, a certificate from such Holder substantially
in the form of Exhibit C, including the certifications in item
(1)(a) thereof; or

(2) if the holder of such beneficial interest in a Restricted Global
Note proposes to transfer such beneficial interest to a Person who shall
take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note, a certificate from such holder in the form of
Exhibit B, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time
when an Unrestricted Global Note has not yet been issued, the Issuers shall issue and, upon
receipt of an Authentication Order in accordance with Section 2.02, the Trustee shall
authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to
the aggregate principal amount of beneficial interests transferred pursuant to subparagraph
(B) or (D) above.

Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a beneficial interest in a
Restricted Global Note.

(c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

 

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(i) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes. If any
holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial
interest for a Restricted Definitive Note or to transfer such beneficial interest to a Person who
takes delivery thereof in the form of a Restricted Definitive Note, then, upon the occurrence of any of the
events in paragraph (i) or (ii) of Section 2.06(a) and receipt by the Registrar of the following
documentation:

(A) if the holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note, a certificate from such
holder substantially in the form of Exhibit C, including the certifications in item
(2)(a) thereof;

(B) if such beneficial interest is being transferred to a QIB in accordance with Rule
144A, a certificate substantially in the form of Exhibit B, including the
certifications in item (1) thereof;

(C) if such beneficial interest is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904, a certificate substantially in
the form of Exhibit B, including the certifications in item (2) thereof;

(D) if such beneficial interest is being transferred pursuant to an exemption from the
registration requirements of the Securities Act in accordance with Rule 144, a certificate
substantially in the form of Exhibit B, including the certifications in item (3)(a)
thereof;

(E) if such beneficial interest is being transferred to an Issuer or any of the
Restricted Subsidiaries, a certificate substantially in the form of Exhibit B,
including the certifications in item (3)(b) thereof; or

(F) if such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate substantially in the form of
Exhibit B, including the certifications in item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h), and the Issuers shall execute and the Trustee shall, upon
receipt of an Authentication Order, authenticate and mail to the Person designated in the
instructions a Definitive Note in the applicable principal amount. Any Definitive Note issued in
exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)
shall be registered in such name or names and in such authorized denomination or denominations as
the holder of such beneficial interest shall instruct the Registrar through instructions from the
Depositary and the Participant or Indirect Participant. The Trustee shall mail such Definitive
Notes to the Persons in whose names such Notes are so registered. Any Definitive Note issued in
exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)(i)
shall bear the Private Placement Legend and shall be subject to all restrictions on transfer
contained therein.

(ii) Beneficial Interests in Regulation S Temporary Global Note to Definitive Notes.
Notwithstanding Sections 2.06(c)(i)(A) and (C), a beneficial interest in the Regulation S Temporary
Global Note may not be exchanged for a Definitive Note or transferred to a Person who takes
delivery thereof in the form of a Definitive Note prior to (A) the expiration of the Restricted
Period and (B) the receipt by the Registrar of any certificates required pursuant to Rule
903(b)(3)(ii)(B) of the Securities Act, except in the case of a transfer pursuant to an exemption
from the registration requirements of the Securities Act other than Rule 903 or Rule 904.

 

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(iii) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive
Notes. A holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to
a Person who takes delivery thereof in the form of an Unrestricted Definitive Note only upon the occurrence of any of the
events in subsection (i) or (ii) of Section 2.06(a) and if:

(A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder of such beneficial interest, in the
case of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate
(as defined in Rule 144) of an Issuer;

(B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

(C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

(D) the Registrar receives the following:

(1) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for an Unrestricted Definitive Note, a
certificate from such holder substantially in the form of Exhibit C,
including the certifications in item (1)(b) thereof; or

(2) if the holder of such beneficial interest in a Restricted Global Note
proposes to transfer such beneficial interest to a Person who shall take delivery
thereof in the form of an Unrestricted Definitive Note, a certificate from such
holder substantially in the form of Exhibit B, including the certifications in item
(4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

(iv) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive
Notes. If any holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to
a Person who takes delivery thereof in the form of a Definitive Note, then, upon the occurrence of
any of the events in subsection (i) or (ii) of Section 2.06(a) and satisfaction of the conditions
set forth in Section 2.06(b)(ii), the Trustee shall cause the aggregate principal amount of the
applicable Global Note to be reduced accordingly pursuant to Section 2.06(h), and the Issuers shall
execute and the Trustee shall, upon receipt of an Authentication Order, authenticate and mail to
the Person designated in the instructions a Definitive Note in the applicable principal amount.
Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section
2.06(c)(iv) shall be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the Registrar through
instructions from or through the Depositary and the Participant or Indirect Participant. The
Trustee shall mail such Definitive Notes to the Persons in whose names such Notes are so
registered. Any Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(iv) shall not bear the Private Placement Legend.

 

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(d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

(i) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.
If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial
interest in a Restricted Global Note or to transfer such Restricted Definitive Note to a Person who
takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon
receipt by the Registrar of the following documentation:

(A) if the Holder of such Restricted Definitive Note proposes to exchange such Note for
a beneficial interest in a Restricted Global Note, a certificate from such Holder
substantially in the form of Exhibit C, including the certifications in item (2)(b)
thereof;

(B) if such Restricted Definitive Note is being transferred to a QIB in accordance with
Rule 144A, a certificate substantially in the form of Exhibit B, including the
certifications in item (1) thereof;

(C) if such Restricted Definitive Note is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904, a certificate substantially in
the form of Exhibit B, including the certifications in item (2) thereof;

(D) if such Restricted Definitive Note is being transferred pursuant to an exemption
from the registration requirements of the Securities Act in accordance with Rule 144, a
certificate substantially in the form of Exhibit B, including the certifications in
item (3)(a) thereof;

(E) if such Restricted Definitive Note is being transferred to an Issuer or any of the
Restricted Subsidiaries, a certificate substantially in the form of Exhibit B,
including the certifications in item (3)(b) thereof; or

(F) if such Restricted Definitive Note is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate substantially in the form of
Exhibit B, including the certifications in item (3)(c) thereof,

the Trustee shall cancel the Restricted Definitive Note, increase or cause to be increased the
aggregate principal amount of, in the case of clause (A) above, the applicable Restricted Global
Note, in the case of clause (B) above, the applicable 144A Global Note, and in the case of clause
(C) above, the applicable Regulation S Global Note.

(ii) Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.
A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an
Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note only if:

(A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal
that it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of an Issuer;

(B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

 

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(C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

(D) the Registrar receives the following:

(1) if the Holder of such Definitive Notes proposes to exchange such Notes for
a beneficial interest in the Unrestricted Global Note, a certificate from such
Holder substantially in the form of Exhibit C, including the certifications
in item (1)(c) thereof; or

(2) if the Holder of such Definitive Notes proposes to transfer such Notes to a
Person who shall take delivery thereof in the form of a beneficial interest in the
Unrestricted Global Note, a certificate from such Holder substantially in the form
of Exhibit B, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with the Securities
Act.

Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(ii),
the Trustee shall cancel the Definitive Notes and increase or cause to be increased the aggregate
principal amount of the Unrestricted Global Note.

(iii) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial
interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted Global Note at any time.
Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable
Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount
of one of the Unrestricted Global Notes.

If any such exchange or transfer from a Definitive Note to a beneficial interest is effected
pursuant to subparagraph (ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global Note
has not yet been issued, the Issuers shall issue and, upon receipt of an Authentication Order in
accordance with Section 2.02, the Trustee shall authenticate one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

(e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section
2.06(e), the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder shall present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized
in writing. In addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this
Section 2.06(e):

(i) Restricted Definitive Notes to Restricted Definitive Notes. Any Restricted
Definitive Note may be transferred to and registered in the name of Persons who take
delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the
following:

(A) if the transfer will be made pursuant to a QIB in accordance with Rule
144A, then the transferor must deliver a certificate substantially in the form of
Exhibit B, including the certifications in item (1) thereof;

 

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(B) if the transfer will be made pursuant to Rule 903 or Rule 904 then the
transferor must deliver a certificate in the form of Exhibit B, including
the certifications in item (2) thereof; or

(C) if the transfer will be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B, including the certifications required
by item (3) thereof, if applicable.

(ii) Restricted Definitive Notes to Unrestricted Definitive Notes. Any
Restricted Definitive Note may be exchanged by the Holder thereof for an Unrestricted
Definitive Note or transferred to a Person or Persons who take delivery thereof in the form
of an Unrestricted Definitive Note if:

(A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating
in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of an Issuer;

(B) any such transfer is effected pursuant to the Shelf Registration Statement
in accordance with the Registration Rights Agreement;

(C) any such transfer is effected by a Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;
or

(D) the Registrar receives the following:

(1) if the Holder of such Restricted Definitive Notes proposes to
exchange such Notes for an Unrestricted Definitive Note, a certificate from
such Holder substantially in the form of Exhibit C, including the
certifications in item (1)(d) thereof; or

(2) if the Holder of such Restricted Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in the form
of an Unrestricted Definitive Note, a certificate from such Holder
substantially in the form of Exhibit B, including the certifications
in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests, an Opinion of Counsel in form reasonably acceptable to the Registrar to
the effect that such exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities
Act.

 

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(iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder
of Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery
thereof in the form of an Unrestricted Definitive Note. Upon receipt of a request to
register such a transfer, the Registrar shall register the Unrestricted Definitive Notes
pursuant to the instructions from the Holder thereof.

(f) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Issuers shall issue and, upon receipt of an Authentication Order
in accordance with Section 2.02, the Trustee shall authenticate (i) one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes tendered for acceptance by Persons that certify in the applicable
letters of transmittal that (x) they are not Broker-Dealers, (y) they are not participating in a
distribution of the Exchange Notes and (z) they are not affiliates (as defined in Rule 144) of an
Issuer, and accepted for exchange in the Exchange Offer and (ii) Unrestricted Definitive Notes in
an aggregate principal amount equal to the principal amount of the Restricted Definitive Notes
tendered for acceptance by Persons that certify in the applicable Letters of Transmittal that (x)
they are not Broker-Dealers, (y) they are not participating in a distribution of the Exchange Notes
and (z) they are not affiliates (as defined in Rule 144) of an Issuer, and accepted for exchange in
the Exchange Offer. Concurrently with the issuance of such Notes, the Trustee shall cause the
aggregate principal amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Issuers shall execute and the Trustee shall, upon receipt of an Authentication Order,
authenticate and mail to the Persons designated by the Holders of Definitive Notes so accepted
Unrestricted Definitive Notes in the applicable principal amount. Any Notes that remain
outstanding after the consummation of the Exchange Offer, and Exchange Notes issued in connection
with the Exchange Offer, shall be treated as a single class of securities under this Indenture.

(g) Legends. The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable
provisions of this Indenture:

(i) Private Placement Legend.

(A) Except as permitted by subparagraph (B) below, each Global Note and each Definitive
Note (and all Notes issued in exchange therefor or substitution thereof) shall bear the
legend in substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER:

(1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE “SECURITIES ACT”) (A “QIB”) OR (B) IT IS NOT
A U.S. PERSON, IS NOT ACQUIRING THIS SECURITY FOR THE ACCOUNT OR FOR THE
BENEFIT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFF-SHORE
TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT,

 

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(2) AGREES THAT IT WILL NOT, WITHIN, THE TIME PERIOD REFERRED TO UNDER
RULE 144(d)(1) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF THE
TRANSFER OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT
(A) TO THE ISSUERS OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON WHOM THE
HOLDER REASONABLY BELIEVES IS A QIB OR AN ACCREDITED INVESTOR PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB OR AN ACCREDITED INVESTOR,
RESPECTIVELY, IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OR AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE AND
PROVIDED THAT PRIOR TO SUCH TRANSFER, THE TRUSTEE IS FURNISHED WITH AN
OPINION OF COUNSEL ACCEPTABLE TO THE ISSUERS THAT SUCH TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT) OR (E) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, AND

(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR
AN INTEREST HEREIN IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE
(2)(D) OR (2)(E) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

IN CONNECTION WITH ANY TRANSFER THIS SECURITY OR ANY INTEREST HEREIN WITHIN THE
TIME PERIOD REFERRED TO ABOVE, THE HOLDER MUST CERTIFY TO THE TRUSTEE THE MANNER OF
SUCH TRANSFER. AS USED HEREIN THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND
“U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE
SECURITIES ACT.

(B) Notwithstanding the foregoing, any Global Note or Definitive Note issued pursuant
to subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) of
this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof) shall
not bear the Private Placement Legend.

 

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(ii) Global Note Legend. Each Global Note shall bear a legend in substantially
the following form:

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT
(I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.06(h) OF THE INDENTURE, (II) THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF
THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY
BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
ISSUERS. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE ISSUERS OR THEIR
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH
OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

(iii) Regulation S Temporary Global Note Legend. The Regulation S Temporary
Global Note shall bear a legend in substantially the following form:

“THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS
AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN
THE INDENTURE (AS DEFINED HEREIN).”

(h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global
Note shall be returned to or retained and canceled by the Trustee in accordance with Section 2.11.
At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged
for or transferred to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by
the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if
the beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note shall
be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by
the Depositary at the direction of the Trustee to reflect such increase.

(i) General Provisions Relating to Transfers and Exchanges.

(i) To permit registrations of transfers and exchanges, the Issuers shall execute and the
Trustee shall authenticate Global Notes and Definitive Notes upon receipt of an Authentication
Order in accordance with Section 2.02 or at the Registrar’s request.

 

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(ii) No service charge shall be made to a holder of a beneficial interest in a Global Note or
to a Holder of a Definitive Note for any registration of transfer or exchange, but the Issuers may
require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer taxes or similar governmental charge
payable upon exchange or transfer pursuant to Sections 2.07, 2.10, 3.06, 3.09, 4.10, 4.14 and
9.05).

(iii) Neither the Registrar nor the Issuers shall be required to register the transfer of or
exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any
Note being redeemed in part.

(iv) All Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes shall be the valid obligations of the Issuers,
evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global
Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

(v) The Issuers shall not be required (A) to issue, to register the transfer of or to exchange
any Notes during a period beginning at the opening of business 15 days before the day of any
selection of Notes for redemption under Section 3.02 and ending at the close of business on the day
of selection, (B) to register the transfer of or to exchange any Note so selected for redemption or
tendered (and not withdrawn) for repurchase in connection with a Change of Control Offer, an Asset
Sale Offer or other tender offer, in whole or in part, except the unredeemed portion of any Note
being redeemed in part or (C) to register the transfer of or to exchange a Note between a Record
Date and the next succeeding Interest Payment Date.

(vi) Prior to due presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Issuers may deem and treat the Person in whose name any Note is registered as the
absolute owner of such Note for the purpose of receiving payment of principal of (and premium, if
any) and interest (including Additional Interest, if any) on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Issuers shall be affected by notice to the contrary.

(vii) Upon surrender for registration of transfer of any Note at the office or agency of the
Issuers designated pursuant to Section 4.02, the Issuers shall execute, and the Trustee shall
authenticate and mail, in the name of the designated transferee or transferees, one or more
replacement Notes of any authorized denomination or denominations of a like aggregate principal
amount.

(viii) At the option of the Holder, Notes may be exchanged for other Notes of any authorized
denomination or denominations of a like aggregate principal amount upon surrender of the Notes to
be exchanged at such office or agency. Whenever any Global Notes or Definitive Notes are so
surrendered for exchange, the Issuers shall execute, and the Trustee shall authenticate and mail,
the replacement Global Notes and Definitive Notes which the Holder making the exchange is entitled
to in accordance with the provisions of Section 2.02.

(ix) All certifications, certificates and Opinions of Counsel required to be submitted to the
Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be
submitted by facsimile.

Section 2.07 Replacement Notes.

If any mutilated Note is surrendered to the Trustee, the Registrar or the Issuers and the
Trustee receives evidence to its satisfaction of the ownership and destruction, loss or theft of
any Note, the Issuers shall issue and the Trustee, upon receipt of an Authentication Order, shall
authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee or the
Issuers, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Issuers to protect the Issuers, the Trustee, any Agent and any authenticating agent
from any loss that any of them may suffer if a Note is replaced. The Issuers may charge for their
expenses in replacing a Note.

 

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Every replacement Note is a contractual obligation of the Issuers and shall be entitled to all
of the benefits of this Indenture equally and proportionately with all other Notes duly issued
hereunder.

Section 2.08 Outstanding Notes.

The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.08 as not outstanding. Except as set forth in Section 2.09, a Note does not
cease to be outstanding because an Issuer or an Affiliate of an Issuer holds the Note.

If a Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee
receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

If the principal amount of any Note is considered paid under Section 4.01, it ceases to be
outstanding and interest on it ceases to accrue.

If the Paying Agent (other than the Issuers, a Subsidiary of AMLLC or an Affiliate of any
thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on
that date, then on and after that date such Notes shall be deemed to be no longer outstanding and
shall cease to accrue interest.

Section 2.09 Treasury Notes.

In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by an Issuer, or by any Affiliate of an Issuer, shall
be considered as though not outstanding, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that a
Responsible Officer of the Trustee knows are so owned shall be so disregarded. Notes so owned
which have been pledged in good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right to deliver any such direction, waiver or consent
with respect to the Notes and that the pledgee is not an Issuer or any obligor upon the Notes or
any Affiliate of an Issuer or of such other obligor.

Section 2.10 Temporary Notes.

Until certificates representing Notes are ready for delivery, the Issuers may prepare and the
Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes. Temporary
Notes shall be substantially in the form of certificated Notes but may have variations that the
Issuers consider appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee. Without unreasonable delay, the Issuers shall prepare and the Trustee shall, upon receipt
of an Authentication Order, authenticate definitive Notes in exchange for temporary Notes.

 

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Holders and beneficial holders, as the case may be, of temporary Notes shall be entitled to
all of the benefits accorded to Holders, or beneficial holders, respectively, of Notes under this
Indenture.

Section 2.11 Cancellation.

The Issuers at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee or, at the direction of the Trustee, the Registrar or
the Paying Agent and no one else shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and shall destroy cancelled Notes (subject to the
record retention requirement of the Exchange Act). Certification of the destruction of all
cancelled Notes shall be delivered to the Issuers. The Issuers may not issue new Notes to replace
Notes that they have paid or that have been delivered to the Trustee for cancellation.

Section 2.12 Defaulted Interest.

If the Issuers default in a payment of interest on the Notes, they shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.01. The Issuers shall notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date of the proposed
payment, and at the same time the Issuers shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such defaulted interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons entitled to
such defaulted interest as provided in this Section 2.12. The Trustee shall fix or cause to be
fixed each such special record date and payment date; provided that no such special record date
shall be less than 10 days prior to the related payment date for such defaulted interest. The
Trustee shall promptly notify the Issuers of such special record date. At least 15 days before the
special record date, the Issuers (or, upon the written request of the Issuers, the Trustee in the
name and at the expense of the Issuers) shall mail or cause to be mailed, first-class postage
prepaid, to each Holder a notice at his or her address as it appears in the Note Register that
states the special record date, the related payment date and the amount of such interest to be
paid.

Subject to the foregoing provisions of this Section 2.12 and for greater certainty, each Note
delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of
any other Note shall carry the rights to interest accrued and unpaid, and to accrue, which were
carried by such other Note.

Section 2.13 CUSIP Numbers.

The Issuers in issuing the Notes may use CUSIP numbers (if then generally in use) and, if so,
the Trustee shall use CUSIP numbers in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and that reliance may be
placed only on the other identification numbers printed on the Notes, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Issuers will as promptly as
practicable notify the Trustee of any change in the CUSIP numbers.

 

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Section 2.14 Global Notes.

Neither the Trustee nor any Agent shall have any responsibility for any actions taken or not
taken by the Depositary.

ARTICLE 3

REDEMPTION

Section 3.01 Notices to Trustee.

If the Issuers elect to redeem Notes pursuant to Section 3.07, they shall furnish to the
Trustee, at least 5 Business Days (or such shorter time period as the Trustee may agree) before
notice of redemption is required to be mailed or caused to be mailed to Holders pursuant to Section
3.03 but not more than 60 days before a redemption date, an Officer’s Certificate setting forth (i)
the paragraph or subparagraph of such Note and/or Section of this Indenture pursuant to which the
redemption shall occur, (ii) the redemption date, (iii) the principal amount of the Notes to be
redeemed and (iv) the redemption price.

Section 3.02 Selection of Notes to Be Redeemed or Purchased.

If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any
time, the Trustee shall select the Notes to be redeemed or purchased (i) if the Notes are listed on
any national securities exchange, in compliance with the requirements of the principal national
securities exchange on which the Notes are listed, (ii) on a pro rata basis or (iii) to the extent
that selection on a pro rata basis is not practicable by lot or such other similar method in
accordance with the procedures of the Depositary. In the event of partial redemption or purchase
by lot, the particular Notes to be redeemed or purchased shall be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee
from the outstanding Notes not previously called for redemption or purchase.

The Trustee shall promptly notify the Issuers in writing of the Notes selected for redemption
or purchase and, in the case of any Note selected for partial redemption or purchase, the principal
amount thereof to be redeemed or purchased. Notes and portions of Notes selected shall be in
amounts of $1,000 or whole multiples of $1,000 in excess thereof; no Notes of $2,000 or less can be
redeemed or repurchased in part, except that if all of the Notes of a Holder are to be redeemed or
purchased, the entire outstanding amount of Notes held by such Holder, even if not a multiple of
$1,000, shall be redeemed or purchased. Except as provided in the preceding sentence, provisions
of this Indenture that apply to Notes called for redemption or purchase also apply to portions of
Notes called for redemption or purchase.

Section 3.03 Notice of Redemption.

Subject to Section 3.09, the Issuers shall deliver electronically or mail or cause to be
mailed by first-class mail, postage prepaid, notices of redemption at least 30 days but not more
than 60 days before the redemption date to each Holder of Notes to be redeemed at such Holder’s
registered address or otherwise in accordance with the procedures of the Depositary, except that
redemption notices may be mailed more than 60 days prior to a redemption date if the notice is
issued in connection with Article 8 or Article 12. Except as set forth in Section 3.07, notices of
redemption may not be conditional.

 

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The notice shall identify the Notes to be redeemed and shall state:

(a) the redemption date;

(b) the redemption price;

(c) if any Note is to be redeemed in part only, the portion of the principal amount of
that Note that is to be redeemed and that, after the redemption date upon surrender of such
Note, a new Note or Notes in a principal amount equal to the unredeemed portion of the
original Note representing the same indebtedness to the extent not redeemed will be issued
in the name of the Holder of the Notes upon cancellation of the original Note;

(d) the name and address of the Paying Agent;

(e) that Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

(f) whether such redemption is conditioned on the happening of a future event;

(g) that, unless the Issuers default in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

(h) the paragraph or subparagraph of the Notes and/or Section of this Indenture
pursuant to which the Notes called for redemption are being redeemed;

(i) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes; and

(j) if in connection with a redemption pursuant to Section 3.07, any condition to such
redemption.

Notes called for redemption become due on the date fixed for redemption unless such redemption
is conditioned on the happening of a future event. At the Issuers’ request, the Trustee shall give
the notice of redemption in the Issuers’ name and at their expense; provided that the Issuers shall
have delivered to the Trustee, at least 5 Business Days (or such shorter period as the Trustee may
agree) before notice of redemption is required to be mailed or caused to be mailed to Holders
pursuant to this Section 3.03 (unless a shorter notice shall be agreed to by the Trustee), an
Officer’s Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in the preceding paragraph.

Section 3.04 Effect of Notice of Redemption.

Once notice of redemption is delivered or mailed in accordance with Section 3.03, Notes called
for redemption become irrevocably due and payable on the redemption date, unless such redemption is
conditioned on the happening of a future event at the redemption price. The notice, if delivered
or mailed in a manner herein provided, shall be conclusively presumed to have been given, whether
or not the Holder receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the Holder of any Note designated for redemption in whole or in part shall
not affect the validity of the proceedings for the redemption of any other Note. Subject to
Section 3.05, on and after the redemption date, interest ceases to accrue on Notes or portions of
Notes called for redemption.

 

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Section 3.05 Deposit of Redemption or Purchase Price.

Prior to noon (New York City time) on the redemption or purchase date, the Issuers shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or
purchase price of and accrued and unpaid interest on all Notes to be redeemed or purchased on that
date. The Trustee or the Paying Agent shall promptly return to the Issuers any money deposited
with the Trustee or the Paying Agent by the Issuers in excess of the amounts necessary to pay the
redemption price of, and accrued and unpaid interest on, all Notes to be redeemed or purchased.

If the Issuers comply with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest shall cease to accrue on the Notes or the portions of Notes
called for redemption or purchase. If a Note is redeemed or purchased on or after a Record Date
but on or prior to the related Interest Payment Date, then any accrued and unpaid interest to the
redemption or purchase date shall be paid to the Person in whose name such Note was registered at
the close of business on such Record Date. If any Note called for redemption or purchase shall not
be so paid upon surrender for redemption or purchase because of the failure of the Issuers to
comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the
redemption or purchase date until such principal is paid, and to the extent lawful on any interest
accrued to the redemption or purchase date not paid on such unpaid principal, in each case at the
rate provided in the Notes and in Section 4.01.

Section 3.06 Notes Redeemed or Purchased in Part.

Upon surrender of a Note that is redeemed or purchased in part, the Issuers shall issue and
the Trustee shall authenticate for the Holder at the expense of the Issuers a new Note equal in
principal amount to the unredeemed or unpurchased portion of the Note surrendered representing the
same indebtedness to the extent not redeemed or purchased; provided that each new Note will be in a
principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. It is understood
that, notwithstanding anything in this Indenture to the contrary, only an Authentication Order and
not an Opinion of Counsel or Officer’s Certificate is required for the Trustee to authenticate such
new Note.

Section 3.07 Optional Redemption.

(a) At any time prior to November 1, 2013, the Issuers may redeem all or a part of the Notes,
upon notice as described under Section 3.03, at a redemption price equal to 100% of the principal
amount of the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if
any, to, but excluding the date of redemption (the “Redemption Date”), subject to
the rights of Holders on the relevant Record Date to receive interest due on the relevant Interest
Payment Date.

(b) On and after November 1, 2013, the Issuers may redeem the Notes, in whole or in part, upon
notice as described under Section 3.03, at the redemption prices (expressed as percentages of
principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest
thereon, if any, to, but excluding the applicable Redemption Date, subject to the right of Holders
of record on the relevant Record Date to receive interest due on the relevant Interest Payment
Date, if redeemed during the twelve-month period beginning on November 1 of each of the years
indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	 
	 	 	 	 
	2013
	 	 	106.844	%
	2014
	 	 	104.563	%
	2015
	 	 	102.281	%
	2016 and thereafter
	 	 	100.000	%

 

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(c) Prior to November 1, 2013, the Issuers may, at their option, upon notice as described
under Section 3.03, on one or more occasions, redeem up to 35% of the aggregate principal amount of
Notes issued under this Indenture at a redemption price equal to 109.125% of the aggregate
principal amount thereof, plus accrued and unpaid interest thereon, if any, to, but excluding the
applicable Redemption Date, subject to the right of Holders of Notes of record on the relevant
Record Date to receive interest due on the relevant Interest Payment Date, with the net cash
proceeds of one or more Equity Offerings to the extent such net cash proceeds are received by or
contributed to AMLLC; provided that (a) at least 50% of the sum of the aggregate principal amount
of Notes originally issued under this Indenture on the Issue Date remains outstanding immediately
after the occurrence of each such redemption and (b) that each such redemption occurs within 120
days of the date of closing of each such Equity Offering.

(d) During any 12-month period prior to November 1, 2013, the Issuers will be entitled to
redeem up to 10% of the aggregate principal amount of the Notes issued under this Indenture at a
redemption price equal to 103.000% of the aggregate principal amount thereof, plus accrued interest
thereon, if any, to the Redemption Date, subject to the right of Holders of Notes of record on the
relevant Record Date to receive interest due on the relevant Interest Payment Date.

(e) Notice of any redemption upon any Equity Offering or in connection with a transaction (or
series of related transactions) that constitute a Change of Control may, at the Issuers’
discretion, be given prior to the completion thereof and be subject to one or more conditions
precedent, including, but not limited to, completion of the related Equity Offering or Change of
Control.

(f) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of
Sections 3.01 through 3.06.

Section 3.08 Mandatory Redemption.

The Issuers shall not be required to make any mandatory redemption or sinking fund payments
with respect to the Notes.

Section 3.09 Offers to Repurchase by Application of Excess Proceeds or Excess ABL Proceeds.

(a) In the event that, pursuant to Section 4.10, the Issuers shall be required to commence an
Asset Sale Offer or an ABL Asset Sale Offer, they shall follow the procedures specified below.

(b) The Asset Sale Offer or an ABL Asset Sale Offer shall remain open for a period of 20
Business Days following its commencement and no longer, except to the extent that a longer period
is required by applicable law (the “Offer Period”). No later than five Business Days after
the termination of the Offer Period (the “Purchase Date”), the Issuers shall apply all
Excess Proceeds or Excess ABL Proceeds (the “Offer Amount”) to the purchase of Notes and,
if required, Other Pari Passu Lien Obligations (on a pro rata basis, if applicable), or, if less
than the Offer Amount has been tendered, all Notes and Other Pari Passu Lien Obligations tendered
in response to the Asset Sale Offer or ABL Asset Sale Offer. Payment for any Notes so purchased
shall be made in the same manner as interest payments are made.

(c) If the Purchase Date is on or after a Record Date and on or before the related Interest
Payment Date, any accrued and unpaid interest, if any, up to but excluding the Purchase Date, shall
be paid to the Person in whose name a Note is registered at the close of business on such Record
Date, and no additional interest shall be payable to Holders who tender Notes pursuant to the Asset
Sale Offer or ABL Asset Sale Offer.

 

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(d) Upon the commencement of an Asset Sale Offer or ABL Asset Sale Offer, the Issuers shall
send, by first-class mail, a notice to each of the Holders, with a copy to the Trustee. The notice
shall contain all instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Asset Sale Offer or ABL Asset Sale Offer. The Asset Sale Offer or ABL Asset Sale
Offer shall be made to all Holders and holders of Other Pari Passu Lien Obligations. The notice,
which shall govern the terms of the Asset Sale Offer or ABL Asset Sale Offer, shall state:

(i) that the Asset Sale Offer or ABL Asset Sale Offer is being made pursuant to this
Section 3.09 and Section 4.10 and the length of time the Asset Sale Offer or ABL Asset Sale
Offer shall remain open;

(ii) the Offer Amount, the purchase price and the Purchase Date;

(iii) that any Note not tendered or accepted for payment shall continue to accrue
interest;

(iv) that, unless the Issuers default in making such payment, any Note accepted for
payment pursuant to the Asset Sale Offer or ABL Asset Sale Offer shall cease to accrue
interest after the Purchase Date;

(v) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
elect to have Notes purchased in amounts of $2,000 or whole multiples of $1,000 in excess
thereof only;

(vi) that Holders electing to have a Note purchased pursuant to any Asset Sale Offer or
ABL Asset Sale Offer shall be required to surrender the Note, with the form entitled “Option
of Holder to Elect Purchase” attached to the Note completed, or transfer by book-entry
transfer, to the Issuers, the Depositary, if appointed by the Issuers, or a Paying Agent at
the address specified in the notice at least three days before the Purchase Date;

(vii) that Holders shall be entitled to withdraw their election if the Issuers, the
Depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Offer Period, a telegram, facsimile transmission or letter setting forth the name of
the Holder, the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note purchased;

(viii) that, if the aggregate principal amount of Notes and Other Pari Passu Lien
Obligations surrendered by the holders thereof exceeds the Offer Amount, the Issuers shall
select the Notes and such Other Pari Passu Lien Obligations to be purchased on a pro rata
basis based on the accreted value or principal amount of the Notes or such Other Pari Passu
Lien Obligations tendered (with such adjustments as may be deemed appropriate by the Trustee
so that only Notes in denominations of $1,000, or integral multiples of $1,000 in excess
thereof, shall be purchased; provided that no Notes of $2,000 or less can be redeemed in
part, except that if all of the Notes of a Holder are to be redeemed or purchased, the
entire outstanding amount of Notes held by such Holder, even if not a multiple of $1,000,
shall be redeemed or purchased); and

(ix) that Holders whose Notes were purchased only in part shall be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer) representing the same indebtedness to the extent not
repurchased.

 

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(e) On or before the Purchase Date, the Issuers shall, to the extent lawful, (1) accept for
payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof
validly tendered pursuant to the Asset Sale Offer or ABL Asset Sale Offer, or if less than the
Offer Amount has been tendered, all Notes tendered and (2) deliver or cause to be delivered to the
Trustee the Notes properly accepted together with an Officer’s Certificate stating the aggregate
principal amount of Notes or portions thereof so tendered.

(f) The Issuers, the Depositary or the Paying Agent, as the case may be, shall promptly mail
or deliver to each tendering Holder an amount equal to the purchase price of the Notes properly
tendered by such Holder and accepted by the Issuers for purchase, and the Issuers shall promptly
issue a new Note, and the Trustee, upon receipt of an Authentication Order, shall authenticate and
mail or deliver (or cause to be transferred by book-entry) such new Note to such Holder (it being
understood that, notwithstanding anything in this Indenture to the contrary, no Opinion of Counsel
or Officer’s Certificate is required for the Trustee to authenticate and mail or deliver such new
Note) in a principal amount equal to any unpurchased portion of the Note surrendered representing
the same indebtedness to the extent not repurchased; provided, that each such new Note shall be in
a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. Any Note not so
accepted shall be promptly mailed or delivered by the Issuers to the Holder thereof. The Issuers
shall publicly announce the results of the Asset Sale Offer or ABL Asset Sale Offer on or as soon
as practicable after the Purchase Date.

Other than as specifically provided in this Section 3.09 or Section 4.10, any purchase
pursuant to this Section 3.09 shall be made pursuant to the applicable provisions of Sections 3.01
through 3.06.

ARTICLE 4

COVENANTS

Section 4.01 Payment of Notes.

The Issuers shall pay or cause to be paid the principal of, premium, if any, and interest on
the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and
interest shall be considered paid on the date due if the Paying Agent, if other than the Issuers or
a Subsidiary, holds as of noon Eastern Time on the due date money deposited by the Issuers in
immediately available funds and designated for and sufficient to pay all principal, premium, if
any, and interest then due. The Issuers will pay Additional Interest, if any, in the same manner
and on the dates and in the amounts set forth in the Registration Rights Agreement.

The Issuers shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the
Notes to the extent lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

The Issuers shall maintain an office or agency (which may be an office of the Trustee or an
affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon the Issuers in
respect of the Notes and this Indenture may be served. The Issuers shall give prompt written
notice to the Trustee of the location, and any change in the location, of such office or agency.
If at any time the Issuers shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office of the Trustee.

 

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The Issuers may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided that no such designation or rescission shall in any manner
relieve the Issuers of their obligation to maintain an office or agency for such purposes. The
Issuers shall give prompt written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.

The Issuers hereby designate the Corporate Trust Office of the Trustee as one such office or
agency of the Issuers in accordance with Section 2.03.

Section 4.03 Reports and Other Information.

(a) Whether or not required by the rules and regulations of the SEC, AMLLC shall file the
following information with the SEC from and after the Issue Date and as long as any Notes are
outstanding:

(i) within 90 days after the end of each fiscal year (or any other time period then in
effect under the rules and regulations of the Exchange Act with respect to the filing of an
annual report on Form 10-K by a non-accelerated filer), annual reports on Form 10-K, or any
successor or comparable form;

(ii) within 45 days after the end of each of the first three fiscal quarters of each
fiscal year (or any other time period then in effect under the rules and regulations of the
Exchange Act with respect to the filing of a quarterly report on Form 10-Q by a
non-accelerated filer), quarterly reports on Form 10-Q or any successor or comparable form;
and

(iii) promptly from time to time after the occurrence of an event required to be
therein reported, current reports on Form 8-K or any successor or comparable form;

in each case, in a manner that complies in all material respects with the requirements specified in
such form or any successor or comparable form. If not otherwise available on the SEC’s EDGAR
system or any successor system, AMLLC shall make such information available to the Trustee and
Holders of the Notes (without exhibits) within 15 days after it files such information with the
SEC, without cost to any Holder.

(b) Notwithstanding the foregoing, AMLLC shall not be obligated to file such reports with the
SEC prior to the commencement of the exchange offer or the effectiveness of the shelf registration
statement required pursuant to the Registration Rights Agreement or if the SEC does not permit such
filing, in which event AMLLC shall make available such information to prospective purchasers of
Notes, in addition to providing such information to the Trustee and the Holders of the Notes in
each case within the time AMLLC would be required to file such information with the SEC if it were
a non-accelerated filer. In addition, to the extent not satisfied by the foregoing, AMLLC shall
agree that, for so long as any Notes are outstanding, it shall furnish to Holders and to any
prospective investor that certifies it is a Qualified Institutional Buyer (as defined in the
Securities Act), upon request and if not previously provided, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

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(c) Parent may satisfy the obligations of AMLLC set forth above; provided that (i) the
information filed with the SEC or delivered to Holders pursuant to this Section 4.03 should include
consolidated financial statements for Parent, AMLLC and its Subsidiaries, (ii) Parent becomes a
Guarantor and (iii) Parent is not engaged in any business in any material respect other than
incidental to its ownership, directly or indirectly, of AMLLC.

(d) The requirements of clauses (a) and (b) of this Section 4.03 shall be deemed satisfied
prior to the commencement of the exchange offer or the effectiveness of the shelf registration
statement required pursuant to the Registration Rights Agreement by (i) filing with the SEC the
exchange offer registration statement or the shelf registration statement, and any amendments
thereto, with such financial information that satisfies Regulation S-X of the Securities Act or
(ii) (a) with respect to clause (i) of Section 4.03(a), providing the information required under
Items 6, 7, 7A and 8 of Form 10-K (as in effect on the Issue Date) on a freely accessible page of
AMLLC’s website within the time period specified in clause (i) of Section 4.03(a), (b) with respect
to clause (ii) of Section 4.03(a), providing the information required under Items 1, 2 and 3 of
Form 10-Q (as in effect on the Issue Date) on a freely accessible page of AMLLC’s website within
the time periods specified in clause (ii) of Section 4.03(a) and (c) with respect to clause (iii)
of Section 4.03(a), providing the information required under the following items of Form 8-K (as in
effect on the Issue Date) on a freely accessible page of AMLLC’s website within the later of six
Business Days after the occurrence of the specified event or such longer timeframe that would have
been required for a current report on Form 8-K: Items 1.01 (Entry into a Material Definitive
Agreement), 1.02 (Termination of a Material Definitive Agreement), 1.03 (Bankruptcy or
Receivership), 2.01 (Completion of Acquisition or Disposition of Assets), 2.03 (Creation of a
direct financial Obligation or an Obligation under an Off-Balance Sheet Arrangement), 2.04
(Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement), 2.06 (Material Impairment), 4.01 (Changes in Registrant’s
Certifying Accountants), 4.02 (Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review), 5.01 (Changes in Control of Registrant), 5.02(a), (b),
(c) and (d) (Departure of Directors or Principal Officers; Election of Directors; Appointment of
Principal Officers; Compensation Arrangements of Certain Officers) (other than any information
relating to compensation arrangements with any directors or officers) and 9.01(a) (Financial
Statements and Exhibits but only with respect to historical financial statements relating to
transactions required to be reported pursuant to Item 2.01). Notwithstanding the foregoing, prior
to the commencement of the exchange offer or effectiveness of the shelf registration statement
required pursuant to the Registration Rights Agreement, (A) in no event shall separate financial
statements of any Guarantor or a consolidating footnote contemplated by Rule 3-10 of Regulation S-X
of the Securities Act be required to be filed with the SEC or published on AMLLC’s website or
otherwise delivered to the Trustee or Holders of such form and (B) no “current report” shall be
required to be furnished if the Issuers determine in their good faith judgment that such event is
not material to Holders or the business, assets, operations, financial position or prospects of the
Issuers and the Restricted Subsidiaries, taken as a whole. In addition, prior to the commencement
of the exchange offer or the effectiveness of the shelf registration statement required pursuant to
the Registration Rights Agreement, AMLLC shall not (nor shall the Co-Issuer or any Guarantor) be
required to provide the information that would otherwise be required by Section 302 and 404 of the
Sarbanes-Oxley Act of 2002 and Items 307, 308 or 308T of Regulation S-K in connection with any
information provided under this Section 4.03.

(e) Delivery of such information and documents to the Trustee under this Section 4.03 is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Issuers’ compliance with any of their covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officer’s Certificates).

 

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Section 4.04 Compliance Certificate.

(a) The Issuers and each Guarantor (to the extent that such Guarantor is so required under the
Trust Indenture Act) shall deliver to the Trustee, within 90 days after the end of each fiscal year
ending after the Issue Date, a certificate from the principal executive officer, principal
financial officer or principal accounting officer stating that a review of the activities of the
Issuers and the Restricted Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officer with a view to determining whether the Issuers have kept,
observed, performed and fulfilled its obligations under this Indenture, and further stating, as to
such Officer signing such certificate, that to the best of his or her knowledge the Issuers have
kept, observed, performed and fulfilled each and every condition and covenant contained in this
Indenture and are not in default in the performance or observance of any of the terms, provisions,
covenants and conditions of this Indenture (or, if a Default shall have occurred, describing all
such Defaults of which he or she may have knowledge).

(b) When any Default has occurred and is continuing under this Indenture, or if the Trustee or
the holder of any other evidence of Indebtedness of the Issuers or any Subsidiary gives any notice
or takes any other action with respect to a claimed Default, the Issuers shall promptly (which
shall be no more than five (5) Business Days) deliver to the Trustee by registered or certified
mail or by facsimile transmission an Officer’s Certificate specifying such event.

Section 4.05 Taxes.

The Issuers shall pay, and shall cause each of the Restricted Subsidiaries to pay, prior to
delinquency, all material taxes, assessments, and governmental levies except such as are contested
in good faith and by appropriate negotiations or proceedings or where the failure to effect such
payment is not adverse in any material respect to the Holders of the Notes.

Section 4.06 Stay, Extension and Usury Laws.

The Issuers and each of the Guarantors covenant (to the extent that they may lawfully do so)
that they shall not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Issuers and each of the Guarantors (to the extent that they may lawfully do so) hereby expressly
waive all benefit or advantage of any such law, and covenant that they shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
shall suffer and permit the execution of every such power as though no such law has been enacted.

Section 4.07 Limitation on Restricted Payments.

(a) The Issuers shall not, and shall not permit any of the Restricted Subsidiaries to,
directly or indirectly:

(I) declare or pay any dividend or make any payment or distribution on account of the
Issuers’, or any of the Restricted Subsidiaries’, Equity Interests, including any dividend
or distribution payable in connection with any merger or consolidation other than:

(A) dividends, payments or distributions by AMLLC payable solely in Equity
Interests (other than Disqualified Stock) of AMLLC; or

 

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(B) dividends, payments or distributions by a Restricted Subsidiary so long as,
in the case of any dividend, payment or distribution payable on or in respect of any
class or series of securities issued by a Restricted Subsidiary other than a
Wholly-Owned Subsidiary, AMLLC or a Restricted Subsidiary receives at least its pro
rata share of such dividend or distribution in accordance with its Equity Interests
in such class or series of securities;

(II) purchase, redeem, defease or otherwise acquire or retire for value any Equity
Interests of an Issuer or any Parent Entity, including in connection with any merger or
consolidation;

(III) make any principal payment on, or redeem, repurchase, defease or otherwise
acquire or retire for value or give any irrevocable notice of redemption, in each case,
prior to any scheduled repayment, sinking fund payment or maturity, any Subordinated
Indebtedness of the Issuers or any Guarantor, other than:

(A) Indebtedness permitted under clauses (7) and (8) of Section 4.09(b);

(B) the purchase, repurchase or other acquisition of such Subordinated
Indebtedness purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the
date of purchase, repurchase or acquisition; or

(C) the giving of an irrevocable notice of redemption with respect to
transactions described in clauses (2) or (3) of this Section 4.07; or

(IV) make any Restricted Investment

(all such payments and other actions set forth in clauses (I) through (IV) (other than any
exception thereto) above being collectively referred to as “Restricted Payments”), unless,
at the time of such Restricted Payment:

(1) no Default shall have occurred and be continuing or would occur as a consequence
thereof;

(2) immediately after giving effect to such transaction on a pro forma basis, the
Issuers could incur $1.00 of additional Indebtedness under Section 4.09(a); and

(3) such Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Issuers and the Restricted Subsidiaries after the Issue Date (including
Restricted Payments permitted by clauses (1), (2) (with respect to the payment of dividends
on Refunding Capital Stock pursuant to clause (b) thereof only), (6)(c), (9) and (14) of
Section 4.07(b), but excluding all other Restricted Payments permitted by Section 4.07(b)),
is less than the sum of (without duplication):

(a) 50% of the Consolidated Net Income of AMLLC for the period (taken as one
accounting period) beginning on the first day of the fiscal quarter commencing prior
to the Issue Date to the end of AMLLC’s most recently ended fiscal quarter for which
internal financial statements are available at the time of such Restricted Payment,
or, in the case such Consolidated Net Income for such period is a deficit, minus
100% of such deficit; plus

 

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(b) 100% of the aggregate net cash proceeds and the fair market value, as
determined in good faith by the Board of AMLLC, of marketable securities or other
property received by AMLLC since immediately after the Issue Date (other than net
cash proceeds to the extent such net cash proceeds have been used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to clause (12)(a) of
Section 4.09(b)) from the issue or sale of:

(i) (A) Equity Interests of AMLLC, including Treasury Capital Stock,
but excluding cash proceeds and the fair market value, as determined in good
faith by the Board of AMLLC, of marketable securities or other property
received from the sale of:

(x) Equity Interests to any employee, director or consultant of
AMLLC, any Parent Entity and AMLLC’s Subsidiaries after the Issue
Date to the extent such amounts have been applied to Restricted
Payments made in accordance with clause (4) of Section 4.07(b); and

(y) Designated Preferred Stock, and

(B) to the extent such net cash proceeds are actually contributed to
AMLLC, Equity Interests of the Parent Entities (excluding contributions of
the proceeds from the sale of Designated Preferred Stock of such companies
or contributions to the extent such amounts have been applied to Restricted
Payments made in accordance with clause (4) of Section 4.07(b)); or

(ii) debt securities of the Issuers that have been converted into or
exchanged for such Equity Interests of AMLLC or a Parent Entity;

provided, however, that this clause (b) shall not include the proceeds from (W)
Refunding Capital Stock, (X) Equity Interests or convertible debt securities of the
Issuers sold to a Restricted Subsidiary, as the case may be, (Y) Disqualified Stock
or debt securities that have been converted into Disqualified Stock or (Z) Excluded
Contributions; plus

(c) 100% of the aggregate amount of cash and the fair market value, as
determined in good faith by the Board of AMLLC, of marketable securities or other
property contributed to the capital (other than Disqualified Stock) of AMLLC
following the Issue Date (other than net cash proceeds to the extent such net cash
proceeds (i) have been used to incur Indebtedness, Disqualified Stock or Preferred
Stock pursuant to clause (12)(a) of Section 4.09(b), (ii) are contributed by a
Restricted Subsidiary or (iii) constitute Excluded Contributions); plus

(d) 100% of the aggregate amount received in cash and the fair market value, as
determined in good faith by the Board of AMLLC, of marketable securities or other
property received by means of:

(i) the sale or other disposition (other than to the Issuers or a
Restricted Subsidiary) of Restricted Investments made by the Issuers or the
Restricted Subsidiaries and repurchases and redemptions of such Restricted
Investments from the Issuers or the Restricted Subsidiaries and repayments
of loans or advances, and releases of guarantees, which constitute
Restricted Investments made by the Issuers or the Restricted Subsidiaries, in each case, after
the Issue Date; or

 

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(ii) the sale (other than to the Issuers or a Restricted Subsidiary) of
the stock of an Unrestricted Subsidiary or a distribution from an
Unrestricted Subsidiary (other than in each case to the extent such
Investment constituted a Permitted Investment) or a dividend from an
Unrestricted Subsidiary after the Issue Date; plus

(e) in the case of the redesignation of an Unrestricted Subsidiary as a
Restricted Subsidiary after the Issue Date, the fair market value of the Investment
in such Unrestricted Subsidiary, as determined by the Board of AMLLC in good faith
or if such fair market value exceeds $50,000,000, in writing by an Independent
Financial Advisor, at the time of the redesignation of such Unrestricted Subsidiary
as a Restricted Subsidiary other than to the extent such Investment constituted a
Permitted Investment.

(b) The foregoing provisions of Section 4.07(a) shall not prohibit:

(1) the payment of any dividend or distribution or the consummation of any irrevocable
redemption within 60 days after the date of declaration thereof or the giving of such
irrevocable notice, as applicable, if at the date of declaration or the giving of such
notice such payment would have complied with the provisions of this Indenture;

(2) (a) the redemption, repurchase, retirement or other acquisition of any Equity
Interests (“Treasury Capital Stock”) or Subordinated Indebtedness of an Issuer or
any Equity Interests of any Parent Entity, in exchange for, or out of the proceeds of the
substantially concurrent sale (other than to a Restricted Subsidiary) of, Equity Interests
of AMLLC or any Parent Entity to the extent contributed to AMLLC (in each case, other than
any Disqualified Stock) (“Refunding Capital Stock”) and (b) if immediately prior to
the retirement of Treasury Capital Stock, the declaration and payment of dividends thereon
was permitted under clause (6) of this Section 4.07(b), the declaration and payment of
dividends on the Refunding Capital Stock (other than Refunding Capital Stock the proceeds of
which were used to redeem, repurchase, retire or otherwise acquire any Equity Interests of
any Parent Entity) in an aggregate amount per year no greater than the aggregate amount of
dividends per annum that were declarable and payable on such Treasury Capital Stock
immediately prior to such retirement;

(3) the redemption, defeasance, repurchase or other acquisition or retirement of (i)
Subordinated Indebtedness of an Issuer or a Guarantor made by exchange for, or out of the
proceeds of a sale made within 90 days of, new Indebtedness of the Issuers or a Guarantor,
as the case may be, or (ii) Disqualified Stock of the Issuers or a Guarantor made by
exchange for, or out of the proceeds of a sale made within 90 days of, Disqualified Stock of
the Issuers or a Guarantor, that, in each case, is incurred in compliance with Section 4.09
so long as:

(a) the principal amount (or accreted value, if applicable) of such new
Indebtedness or the liquidation preference of such new Disqualified Stock does not
exceed the principal amount of (or accreted value, if applicable), plus any accrued
and unpaid interest on, the Subordinated Indebtedness or the liquidation preference
of, plus any accrued and unpaid dividends on, the Disqualified Stock being so
defeased, redeemed, repurchased, exchanged, acquired or retired for value, plus the
amount of any reasonable premium (including reasonable tender premiums), defeasance
costs and any reasonable fees and expenses incurred in connection with the issuance of such new
Indebtedness or Disqualified Stock;

 

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(b) such new Indebtedness is subordinated to the Notes or the applicable
Guarantee at least to the same extent as such Subordinated Indebtedness so
purchased, exchanged, redeemed, repurchased, acquired or retired for value;

(c) such new Indebtedness or Disqualified Stock has a final scheduled maturity
date equal to or later than the final scheduled maturity date of the Subordinated
Indebtedness or Disqualified Stock being so defeased, redeemed, repurchased,
exchanged, acquired or retired; and

(d) such new Indebtedness or Disqualified Stock has a Weighted Average Life to
Maturity equal to or greater than the remaining Weighted Average Life to Maturity of
the Subordinated Indebtedness or Disqualified Stock being so defeased, redeemed,
repurchased, exchanged, acquired or retired;

(4) Restricted Payment to pay for the repurchase, retirement or other acquisition or
retirement for value of Equity Interests (other than Disqualified Stock) of AMLLC or any
Parent Entity held by any future, present or former employee, director or consultant of
AMLLC, any of its Subsidiaries or any Parent Entity pursuant to any management equity plan
or stock option plan or any other management or employee benefit plan or agreement, or any
stock subscription or shareholder agreement (including, for the avoidance of doubt, any
principal and interest payable on any Notes issued by the Issuers or any Parent Entity in
connection with such repurchase, retirement or other acquisition), including any Equity
Interests rolled over by management of the Issuers or any Parent Entity in connection with
the Transactions; provided, however, that the aggregate Restricted Payments made under this
clause (4) do not exceed in any calendar year $15,000,000 (with unused amounts in any
calendar year being carried over to succeeding calendar years subject to a maximum (without
giving effect to the following proviso) of $30,000,000 in any calendar year); provided
further that such amount in any calendar year may be increased by an amount not to exceed:

(a) the cash proceeds from the sale of Equity Interests (other than
Disqualified Stock) of AMLLC and, to the extent contributed to AMLLC, the cash
proceeds from the sale of Equity Interests of any Parent Entity, in each case to any
future, present or former employees, directors or consultants of AMLLC, any of its
Subsidiaries or any Parent Entity that occurs after the Issue Date, to the extent
the cash proceeds from the sale of such Equity Interests have not otherwise been
applied to the payment of Restricted Payments by virtue of clause (3) of Section
4.07(a); plus

(b) the cash proceeds of key man life insurance policies received by AMLLC or
the Restricted Subsidiaries after the Issue Date; less

(c) the amount of any Restricted Payments previously made with the cash
proceeds described in clauses (a) and (b) of this clause (4);

and provided further that cancellation of Indebtedness owing to an Issuer or any Restricted
Subsidiary from any future, present or former employees, directors or consultants of AMLLC,
any Parent Entity or any of the Restricted Subsidiaries in connection with a repurchase of
Equity Interests of AMLLC or any Parent Entity will not be deemed to constitute a Restricted
Payment for purposes of this Section 4.07 or any other provision of this Indenture;

 

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(5) the declaration and payment of dividends to holders of any class or series of
Disqualified Stock of AMLLC or any of the Restricted Subsidiaries or any class or series of
Preferred Stock of any Restricted Subsidiary, in each case issued in accordance with Section
4.09 to the extent such dividends are included in the definition of “Fixed Charges”;

(6) (a) the declaration and payment of dividends to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) issued by AMLLC or any of the
Restricted Subsidiaries after the Issue Date;

(b) the declaration and payment of dividends to a Parent Entity, the proceeds of which
will be used to fund the payment of dividends to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) of such Parent Entity issued
after the Issue Date, provided that the amount of dividends paid pursuant to this clause (b)
shall not exceed the aggregate amount of cash actually contributed to the Issuers from the
sale of such Designated Preferred Stock; or

(c) the declaration and payment of dividends on Refunding Capital Stock that is
Preferred Stock in excess of the dividends declarable and payable thereon pursuant to clause
(2) of this Section 4.07(b);

provided, however, in the case of each of clause (a) and clause (c) of this clause (6), that
for the most recently ended four full fiscal quarters for which internal financial
statements are available immediately preceding the date of issuance of such Designated
Preferred Stock or the declaration of such dividends on Refunding Capital Stock that is
Preferred Stock, after giving effect to such issuance or declaration on a pro forma basis,
the Issuers and the Restricted Subsidiaries on a consolidated basis would have had a Fixed
Charge Coverage Ratio of at least 2.00 to 1.00;

(7) [Reserved];

(8) payments made or expected to be made by the Issuers or any Restricted Subsidiary in
respect of withholding or similar taxes payable upon exercise of Equity Interests by any
future, present or former employee, director or consultant (or their respective Controlled
Investment Affiliates or Immediate Family Members) and repurchases of Equity Interests
deemed to occur upon exercise of stock options or warrants if such Equity Interests
represent a portion of the exercise price of such options or warrants;

(9) the declaration and payment of dividends on AMLLC’s common equity (or the payment
of dividends to any Parent Entity to fund a payment of dividends on such company’s common
equity), following consummation of the first public offering of an Issuer’s common equity or
the common equity of any Parent Entity after the Issue Date, of up to 6% per annum of the
net cash proceeds received by or contributed to AMLLC in or from any such public offering,
other than public offerings with respect to AMLLC’s common equity registered on Form S 8 and
other than any public sale constituting an Excluded Contribution;

(10) Restricted Payments in an amount equal to the amount of Excluded Contributions
previously received;

(11) other Restricted Payments in an aggregate amount taken together with all other
Restricted Payments made pursuant to this clause (11) not to exceed $55,000,000 at the time
made;

 

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(12) distributions or payments of Receivables Fees;

(13) any Restricted Payment made in connection with the Transactions (including
redemption of the Existing Notes) and the fees and expenses related thereto or used to fund
amounts owed to Affiliates, in each case to the extent permitted by Section 4.11;

(14) the repurchase, redemption, defeasance or other acquisition or retirement for
value of any Subordinated Indebtedness in accordance with the provisions similar to those
described under Section 4.10 and Section 4.14; provided that all Notes tendered by Holders
in connection with a Change of Control Offer or Asset Sale Offer, as applicable, have been
repurchased, redeemed, acquired or retired for value;

(15) the declaration and payment of dividends by AMLLC to, or the making of loans to,
any Parent Entity in amounts required for any Parent Entity to pay, in each case without
duplication,

(a) franchise and excise taxes and other fees, taxes and expenses required to
maintain their corporate existence;

(b) foreign, federal, state and local income and similar taxes, to the extent
such income taxes are attributable to the income, revenue, receipts, capital or
margin of the Issuers and the Restricted Subsidiaries and, to the extent of the
amount actually received from its Unrestricted Subsidiaries, in amounts required to
pay such taxes to the extent attributable to the income of such Unrestricted
Subsidiaries; provided that in each case the amount of such payments in any fiscal
year does not exceed the amount that the Issuers and the Restricted Subsidiaries
would be required to pay in respect of foreign, federal, state and local taxes for
such fiscal year were the Issuers, the Restricted Subsidiaries and its Unrestricted
Subsidiaries (to the extent described above) to pay such taxes separately from any
such Parent Entity;

(c) customary salary, bonus and other benefits payable to officers, employees
and directors of any Parent Entity to the extent such salaries, bonuses and other
benefits are attributable to the ownership or operation of the Issuers and the
Restricted Subsidiaries, including the Issuers’ proportionate share of such amount
relating to such Parent Entity being a public company;

(d) general corporate operating (including, without limitation, expenses
related to auditing or other accounting matters) and overhead costs and expenses of
any Parent Entity to the extent such costs and expenses are attributable to the
ownership or operation of the Issuers and the Restricted Subsidiaries, including the
Issuers’ proportionate share of such amount relating to such Parent Entity being a
public company; and

(e) fees and expenses other than to Affiliates of the Issuers related to any
unsuccessful equity or debt offering of such Parent Entity; and

(f) cash payments in lieu of issuing fractional shares in connection with the
exercise of warrants, options or other securities convertible into or exchangeable
for Equity Interests of the Issuers or any Parent Entity;

 

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(16) the repurchase, redemption, or other acquisition for value of Equity Interests of
AMLLC deemed to occur in connection with paying cash in lieu of fractional shares of such Equity Interests in connection with a share dividend, distribution, share split, reverse
share split, merger, consolidation, amalgamation or other business combination of AMLLC, in
each case, permitted under this Indenture; and

(17) the distribution, by dividend or otherwise, of shares of Capital Stock of, or
Indebtedness owed to the Issuers or a Restricted Subsidiary by, Unrestricted Subsidiaries
(other than Unrestricted Subsidiaries, the primary assets of which are cash and/or Cash
Equivalents);

provided, however, that at the time of, and after giving effect to, any Restricted Payment
permitted under clauses (11) and (17) of this Section 4.07(b), no Default shall have occurred and
be continuing or would occur as a consequence thereof.

(c) The Issuers shall not permit any Unrestricted Subsidiary to become a Restricted Subsidiary
except pursuant to the last sentence of the definition of “Unrestricted Subsidiary.” For purposes
of designating any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments
by the Issuers and the Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so
designated shall be deemed to be Restricted Payments in an amount determined as set forth in the
last sentence of the definition of “Investments.” Such designation shall be permitted only if a
Restricted Payment in such amount would be permitted at such time, whether pursuant to Section
4.07(a) or under clause (10) or (11) of Section 4.07(b), or pursuant to the definition of
“Permitted Investments,” and if such Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.

Section 4.08 Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

(a) The Issuers shall not, and shall not permit any of the Restricted Subsidiaries that are
not Guarantors to, directly or indirectly, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or consensual restriction on the ability of any such
Restricted Subsidiary to:

(1) (A) pay dividends or make any other distributions to AMLLC or any of the
Restricted Subsidiaries on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, or

(B) pay any Indebtedness owed to an Issuer or any of the Restricted Subsidiaries;

(2) make loans or advances to an Issuer or any of the Restricted Subsidiaries; or

(3) sell, lease or transfer any of its properties or assets to an Issuer or any of the
Restricted Subsidiaries.

(b) The restrictions in Section 4.08(a) shall not apply to encumbrances or restrictions
existing under or by reason of:

(1) contractual encumbrances or restrictions in effect on the Issue Date, including
pursuant to the Senior Credit Agreement and the related documentation and related Hedging
Obligations;

(2) this Indenture, the Notes and the Guarantees;

 

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(3) purchase money obligations for property acquired in the ordinary course of business
and Capitalized Lease Obligations that impose restrictions of the nature discussed in clause
(3) of Section 4.08(a) on the property so acquired;

(4) applicable law or any applicable rule, regulation or order;

(5) any agreement or other instrument of a Person acquired by or merged or consolidated
with or into an Issuer or any Restricted Subsidiary in existence at the time of such
acquisition or at the time it merges with or into an Issuer or any Restricted Subsidiary or
assumed in connection with the acquisition of assets from such Person (but, in each case,
not created in contemplation thereof), which encumbrance or restriction is not applicable to
any Person, or the properties or assets of any Person, other than the Person and its
Subsidiaries, or the property or assets of the Person and its Subsidiaries, so acquired;

(6) contracts for the sale of assets, including customary restrictions with respect to
a Subsidiary of an Issuer pursuant to an agreement that has been entered into for the sale
or disposition of all or substantially all of the Capital Stock or assets of such
Subsidiary;

(7) Secured Indebtedness otherwise permitted to be incurred pursuant to Section 4.09
and Section 4.12 that limit the right of the debtor to dispose of the assets securing such
Indebtedness;

(8) restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business;

(9) other Indebtedness, Disqualified Stock or Preferred Stock of Foreign Subsidiaries
permitted to be incurred subsequent to the Issue Date pursuant to the provisions of Section
4.09;

(10) customary provisions in joint venture agreements or arrangements and other similar
agreements relating solely to such joint venture;

(11) customary provisions contained in leases, sub-leases, licenses, sub-licenses or
similar agreements, including with respect to intellectual property and other agreements, in
each case entered into in the ordinary course of business;

(12) restrictions or conditions contained in any trading, netting, operating,
construction, service, supply, purchase, sale or other agreement to which the Issuers or any
of the Restricted Subsidiaries is a party entered into in the ordinary course of business;
provided that such agreement prohibits the encumbrance of solely the property or assets of
the Issuers or such Restricted Subsidiary that are the subject to such agreement, the
payment rights arising thereunder or the proceeds thereof and does not extend to any other
asset or property of the Issuers or such Restricted Subsidiary or the assets or property of
another Restricted Subsidiary;

(13) any encumbrance or restriction with respect to a Guarantor or a Foreign Subsidiary
or Receivables Subsidiary which was previously an Unrestricted Subsidiary pursuant to or by
reason of an agreement that such Subsidiary is a party to or entered into before the date on
which such Subsidiary became a Restricted Subsidiary; provided that such agreement was not
entered into in anticipation of an Unrestricted Subsidiary becoming a Restricted Subsidiary
and any such encumbrance or restriction does not extend to any assets or property of the
Issuers or any other Restricted Subsidiary other than the assets and property of such
Subsidiary;

 

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(14) other Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
subsequent to the Issue Date pursuant to the provisions of Section 4.09; provided that, in
the judgment of AMLLC, such incurrence will not materially impair the Issuers’ ability to
make payments under the Notes when due;

(15) restrictions created in connection with any Receivables Facility that, in the good
faith determination of the Issuers, are necessary or advisable to effect such Receivables
Facility; and

(16) any encumbrances or restrictions of the type referred to in clauses (1), (2) and
(3) of Section 4.08(a) imposed by any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of the contracts,
instruments or obligations referred to in clauses (1) through (15) of this Section 4.08(b);
provided that such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are, in the good faith judgment of the
Issuers, not materially more restrictive with respect to such encumbrance and other
restrictions taken as a whole than those prior to such amendment, modification, restatement,
renewal, increase, supplement, refunding, replacement or refinancing.

			
	Section 4.09	 	Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred Stock.

(a) The Issuers shall not, and shall not permit any of the Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise (collectively, “incur” and collectively, an
“incurrence”) with respect to any Indebtedness (including Acquired Indebtedness) and the Issuers
shall not issue any shares of Disqualified Stock and shall not permit any Restricted Subsidiary to
issue any shares of Disqualified Stock or Preferred Stock; provided, however, that the Issuers may
incur Indebtedness (including Acquired Indebtedness), AMLLC may issue shares of Disqualified Stock,
and any of the Restricted Subsidiaries (other than the Co-Issuer) may incur Indebtedness (including
Acquired Indebtedness), issue shares of Disqualified Stock and issue shares of Preferred Stock, if
the Fixed Charge Coverage Ratio on a consolidated basis for AMLLC and the Restricted Subsidiaries’
most recently ended four fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred or such
Disqualified Stock or Preferred Stock is issued would have been at least 2.00 to 1.00, determined
on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the
additional Indebtedness had been incurred, or the Disqualified Stock or Preferred Stock had been
issued, as the case may be, and the application of proceeds therefrom had occurred, at the
beginning of such four quarter period; provided, further, that Restricted Subsidiaries (other than
the Co-Issuer) that are not Guarantors may not incur Indebtedness or issue Disqualified Stock or
Preferred Stock if, after giving pro forma effect to such incurrence or issuance (including a pro
forma application of the net proceeds therefrom), more than an aggregate of $25,000,000 of
Indebtedness of Disqualified Stock or Preferred Stock of Restricted Subsidiaries (other than the
Co-Issuer) that are not Guarantors would be outstanding pursuant to this Section 4.09(a) and clause
(14) of Section 4.09(b) at such time.

(b) The provisions of Section 4.09(a) shall not apply to:

(1) the incurrence of Indebtedness under Credit Facilities by an Issuer or any of the
Restricted Subsidiaries and the issuance and creation of letters of credit and bankers’
acceptances thereunder (with letters of credit and bankers’ acceptances being deemed to have
a principal amount equal to the face amount thereof), up to an aggregate principal amount
outstanding at any one time, not to exceed the greater of (x) $300,000,000 and (y) the
Borrowing Base as of the date of such incurrence, in each case less the aggregate amount of Indebtedness under a
Receivables Facility incurred by a Receivables Subsidiary that is a consolidated entity in
accordance with GAAP;

 

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(2) the incurrence by an Issuer and any Guarantor of Indebtedness represented by the
Notes (including any Guarantee) (other than any Additional Notes), including any Exchange
Notes and exchange guarantees issued therefor in accordance with the Registration Rights
Agreement;

(3) Indebtedness of an Issuer and the Restricted Subsidiaries in existence on the Issue
Date (other than Indebtedness described in clauses (1) and (2) of this Section 4.09(b));

(4) Indebtedness (including Capitalized Lease Obligations), Disqualified Stock and
Preferred Stock incurred by an Issuer or any of the Restricted Subsidiaries, to finance the
purchase, lease, construction, installation or improvement of property (real or personal),
equipment or other assets that is used or useful in a Similar Business, whether through the
direct purchase of assets or the Capital Stock of any Person owning such assets; provided
that the aggregate amount of Indebtedness, Disqualified Stock and Preferred Stock incurred
or issued and outstanding pursuant to this clause (4), when aggregated with the outstanding
amount of Indebtedness under clause (13) incurred to refinance Indebtedness initially
incurred in reliance on this clause (4), does not exceed the greater of 2.0% of AMLLC’s
Total Assets and $35,000,000 at any one time outstanding;

(5) Indebtedness incurred by an Issuer or any of the Restricted Subsidiaries
constituting reimbursement obligations with respect to bankers’ acceptances, bank
guarantees, letter of credit, warehouse receipt or similar facilities entered into in the
ordinary course of business, including letters of credit in respect of workers’ compensation
claims, performance or surety bonds, health, disability or other employee benefits or
property, casualty or liability insurance or self-insurance or other Indebtedness with
respect to reimbursement type obligations regarding workers’ compensation claims,
performance or surety bonds, health, disability or other employee benefits or property,
casualty or liability insurance or self-insurance; provided, however, that upon the drawing
of such letters of credit or the issuance of such Indebtedness, such obligations are
reimbursed within 30 days following such drawing or incurrence;

(6) Indebtedness arising from agreements of an Issuer or the Restricted Subsidiaries
providing for indemnification, adjustment of purchase price, earn out or similar
obligations, in each case, incurred or assumed in connection with the disposition of any
business, assets or a Subsidiary, other than guarantees of Indebtedness incurred by any
Person acquiring all or any portion of such business, assets or a Subsidiary for the purpose
of financing such acquisition; provided, however, that the maximum assumable liability in
respect of all such Indebtedness shall at no time exceed the gross proceeds including
non-cash proceeds (the fair market value of such non-cash proceeds being measured at the
time received and without giving effect to any subsequent changes in value) actually
received by AMLLC and the Restricted Subsidiaries in connection with such disposition;

(7) Indebtedness of an Issuer to a Restricted Subsidiary; provided that any such
Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is expressly
subordinated in right of payment to the Notes; provided, further, that any subsequent
issuance or transfer of any Capital Stock or any other event which results in any such
Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer
of any such Indebtedness (except to the Issuers or another Restricted Subsidiary or any
pledge of such Indebtedness constituting a Permitted Lien (but not foreclosure thereon)) shall be deemed, in each case, to be an
incurrence of such Indebtedness not permitted by this clause (7);

 

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(8) Indebtedness of a Restricted Subsidiary owing to an Issuer or another Restricted
Subsidiary; provided that if a Guarantor incurs such Indebtedness owing to a Restricted
Subsidiary that is not a Guarantor and if such Indebtedness is not in respect of accounts
payable incurred in connection with goods sold or services rendered in the ordinary course
of business, such Indebtedness shall be expressly subordinated in right of payment to the
Guarantee of the Notes of such Guarantor; provided, further, that any subsequent transfer of
any such Indebtedness (except to an Issuer or another Restricted Subsidiary or any pledge of
such Indebtedness constituting a Permitted Lien (but not foreclosure thereon)) shall be
deemed, in each case, to be an incurrence of such Indebtedness not permitted by this clause
(8);

(9) shares of Preferred Stock of a Restricted Subsidiary issued to AMLLC or another
Restricted Subsidiary; provided that any subsequent issuance or transfer of any Capital
Stock or any other event which results in any such Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any other subsequent transfer of any such shares of Preferred Stock
(except to an Issuer or another of the Restricted Subsidiaries or any pledge of such
Indebtedness constituting a Permitted Lien (but not foreclosure thereon)) shall be deemed in
each case to be an issuance of such shares of Preferred Stock not permitted by this clause
(9);

(10) Hedging Obligations (excluding Hedging Obligations entered into for speculative
purposes) for the purpose of limiting interest rate risk with respect to any Indebtedness
permitted to be incurred pursuant to this Section 4.09, exchange rate risk or commodity
pricing risk;

(11) obligations in respect of self-insurance and obligations in respect of
performance, bid, appeal and surety bonds and performance and completion guarantees and
similar obligations provided by an Issuer or any of the Restricted Subsidiaries or
obligations in respect of letters of credit, bank guarantees or similar instruments related
thereto, in each case in the ordinary course of business;

(12) (a) Indebtedness or Disqualified Stock of an Issuer and Indebtedness, Disqualified
Stock or Preferred Stock of an Issuer or any Restricted Subsidiary in an aggregate principal
amount or liquidation preference up to 100.0% of the net cash proceeds received by AMLLC
since immediately after the Issue Date from the issue or sale of Equity Interests of AMLLC
or cash contributed to the capital of AMLLC (in each case, other than Excluded Contributions
or proceeds of Disqualified Stock or sales of Equity Interests to the Issuers or any of
their respective Subsidiaries) as determined in accordance with clauses (3)(b) and (3)(c) of
Section 4.07(a) to the extent such net cash proceeds or cash have not been applied pursuant
to such clauses to make Restricted Payments or to make other Investments, payments or
exchanges pursuant to Section 4.07(b) or to make Permitted Investments (other than Permitted
Investments specified in clauses (1), (2) and (3) of the definition thereof) and (b)
Indebtedness or Disqualified Stock of an Issuer and Indebtedness, Disqualified Stock or
Preferred Stock of an Issuer or any Restricted Subsidiary not otherwise permitted hereunder
in an aggregate principal amount or liquidation preference, which, when aggregated with the
principal amount and liquidation preference of all other Indebtedness, Disqualified Stock
and Preferred Stock then outstanding and incurred pursuant to this clause (12)(b), does not
at any one time outstanding exceed $100,000,000 (it being understood that any Indebtedness,
Disqualified Stock or Preferred Stock incurred pursuant to this clause (12)(b) shall cease
to be deemed incurred or outstanding for purposes of this clause (12)(b) but shall be deemed
incurred for the purposes of Section 4.09(a) from and after the first date on
which the Issuers or such Restricted Subsidiary could have incurred such Indebtedness,
Disqualified Stock or Preferred Stock under Section 4.09(a) without reliance on this clause
(12)(b));

 

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(13) the incurrence by an Issuer or any Restricted Subsidiary of Indebtedness or the
issuance by an Issuer or any Restricted Subsidiary of Indebtedness, Disqualified Stock or
Preferred Stock which serves to refund, refinance, replace, renew, extend or defease any
Indebtedness, Disqualified Stock or Preferred Stock incurred as permitted under Section
4.09(a) and clauses (2), (3), (4) and (12)(a) of this Section 4.09(b), this clause (13) and
clauses (14) and (23) of this Section 4.09(b) or any Indebtedness, Disqualified Stock or
Preferred Stock issued to so refund, refinance, replace, renew, extend or defease such
Indebtedness, Disqualified Stock or Preferred Stock including additional Indebtedness,
Disqualified Stock or Preferred Stock incurred to pay premiums (including reasonable tender
premiums), defeasance costs and fees in connection therewith (the “Refinancing
Indebtedness”) prior to its respective maturity; provided, however, that such
Refinancing Indebtedness:

(A) has a Weighted Average Life to Maturity at the time such Refinancing
Indebtedness is incurred which is not less than the remaining Weighted Average Life
to Maturity of the Indebtedness, Disqualified Stock or Preferred Stock being
refunded, refinanced, replaced, renewed, extended or defeased,

(B) to the extent such Refinancing Indebtedness, refunds, refinances, replaces,
renews, extends or defeases (i) Indebtedness subordinated or pari passu (without
giving effect to security interests) to the Notes or any Guarantee thereof, such
Refinancing Indebtedness is subordinated or pari passu (without giving effect to
security interests) to the same extent as the Indebtedness being refunded,
refinanced, replaced, renewed, extended or defeased or (ii) Disqualified Stock or
Preferred Stock, such Refinancing Indebtedness must be Disqualified Stock or
Preferred Stock, respectively, and

(C) shall not include:

(i) Indebtedness, Disqualified Stock or Preferred Stock of a Restricted
Subsidiary that is not a Guarantor that refinances Indebtedness,
Disqualified Stock or Preferred Stock of an Issuer;

(ii) Indebtedness, Disqualified Stock or Preferred Stock of a
Restricted Subsidiary that is not a Guarantor that refinances Indebtedness,
Disqualified Stock or Preferred Stock of a Guarantor; or

(iii) Indebtedness, Disqualified Stock or Preferred Stock of an Issuer
or a Restricted Subsidiary that refinances Indebtedness, Disqualified Stock
or Preferred Stock of an Unrestricted Subsidiary;

and provided, further, that subclause (A) of this clause (13) will not apply to any
refunding, refinancing, replacement, renewal, extension or defeasance of any Secured
Indebtedness;

 

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(14) Indebtedness, Disqualified Stock or Preferred Stock of (x) an Issuer or a
Restricted Subsidiary incurred or issued to finance an acquisition or (y) Persons that are
acquired by AMLLC or any Restricted Subsidiary or merged into, amalgamated with or
consolidated with AMLLC or a Restricted Subsidiary in accordance with the terms of this
Indenture; provided that after giving effect to such acquisition, amalgamation, merger or
consolidation, either

(a) the Issuers would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section
4.09(a), or

(b) the Fixed Charge Coverage Ratio of the Issuers and the Restricted
Subsidiaries is greater than immediately prior to such acquisition, merger or
consolidation;

provided, however, that on a pro forma basis, together with amounts incurred and outstanding
pursuant to the second proviso of Section 4.09(a), no more than $25,000,000 of Indebtedness,
Disqualified Stock or Preferred Stock at any one time outstanding and incurred by Restricted
Subsidiaries (other than the Co-Issuer) that are not Guarantors pursuant to this clause (14)
shall be incurred and outstanding;

(15) Cash management obligations and other Indebtedness in respect of netting services,
automatic clearing house arrangements, employees’ credit or purchase cards, overdraft
protections and similar arrangements in each case incurred in the ordinary course of
business;

(16) Indebtedness of an Issuer or any of the Restricted Subsidiaries supported by a
letter of credit issued pursuant to Credit Facilities, in a principal amount not in excess
of the stated amount of such letter of credit;

(17) (a) any guarantee by an Issuer or a Restricted Subsidiary of Indebtedness or
other obligations of any Restricted Subsidiary so long as the incurrence of such
Indebtedness incurred by such Restricted Subsidiary is permitted under the terms of this
Indenture, or

(b) any guarantee by a Restricted Subsidiary of Indebtedness of an Issuer or of any
other Restricted Subsidiary; provided that such Indebtedness is permitted under the terms of
this Indenture;

(18) Indebtedness of Foreign Subsidiaries of AMLLC incurred not to exceed at any one
time outstanding, and together with any other Indebtedness incurred under this clause (18),
$25,000,000 (it being understood that any Indebtedness incurred pursuant to this clause (18)
shall cease to be deemed incurred or outstanding for purposes of this clause (18) but shall
be deemed incurred for the purposes of Section 4.09(a) from and after the first date on
which the Issuers or such Restricted Subsidiary could have incurred such Indebtedness under
Section 4.09(a) without reliance on this clause (18));

(19) Indebtedness under a Receivables Facility;

(20) Indebtedness of an Issuer or any of the Restricted Subsidiaries consisting of (i)
the financing of insurance premiums or (ii) take-or-pay obligations contained in supply
arrangements in each case, incurred in the ordinary course of business;

(21) Indebtedness of an Issuer or any of the Restricted Subsidiaries undertaken in
connection with cash management and related activities with respect to any Subsidiary or
joint venture in the ordinary course of business;

(22) Indebtedness consisting of Indebtedness issued by an Issuer or any of the
Restricted Subsidiaries to future, current or former officers, directors and employees
thereof, their respective estates, spouses or former spouses, in each case to finance the
purchase or redemption of Equity Interests of AMLLC or any Parent Entity to the extent described in clause (4)
of Section 4.07(b);

 

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(23) Indebtedness, Disqualified Stock or Preferred Stock of a Restricted Subsidiary
incurred to finance or assumed in connection with an acquisition in a principal amount not
to exceed $25,000,000 in the aggregate at any one time outstanding together with all other
outstanding Indebtedness, Disqualified Stock and/or Preferred Stock issued under this clause
(23) and any outstanding Indebtedness under clause (23) incurred to refinance Indebtedness
initially incurred in reliance on this clause (23) (it being understood that any
Indebtedness, Disqualified Stock or Preferred Stock incurred pursuant to this clause (23)
shall cease to be deemed incurred or outstanding for purposes of this clause (23) but shall
be deemed incurred for the purposes of Section 4.09(a) from and after the first date on
which such Restricted Subsidiary could have incurred such Indebtedness, Disqualified Stock
or Preferred Stock under Section 4.09(a) without reliance on this clause (23)); and

(24) Indebtedness consisting of the Redemption Bridge Loans.

(c) For purposes of determining compliance with this Section 4.09:

(1) in the event that an item of Indebtedness, Disqualified Stock or Preferred Stock
(or any portion thereof) meets the criteria of more than one of the categories of permitted
Indebtedness, Disqualified Stock or Preferred Stock described in clauses (1) through (24) of
Section 4.09(b) or is entitled to be incurred pursuant to Section 4.09(a), the Issuers, in
their sole discretion, shall classify or reclassify such item of Indebtedness, Disqualified
Stock or Preferred Stock (or any portion thereof) and shall only be required to include the
amount and type of such Indebtedness, Disqualified Stock or Preferred Stock in one of the
above clauses of Section 4.09(a) or (b); provided that all Indebtedness outstanding under
the Senior Credit Agreement on the Issue Date shall be treated as incurred on the Issue Date
under clause (1) of Section 4.09(b); and

(2) at the time of incurrence, the Issuers shall be entitled to divide and classify an
item of Indebtedness in more than one of the types of Indebtedness described in Sections
4.09(a) and 4.09(b).

Accrual of interest or dividends, the accretion of accreted value, the accretion or
amortization of original issue discount and the payment of interest or dividends in the form of
additional Indebtedness, Disqualified Stock or Preferred Stock shall not be deemed to be an
incurrence of Indebtedness, Disqualified Stock or Preferred Stock for purposes of this Section
4.09.

For purposes of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on
the date such Indebtedness was incurred, in the case of term debt, or first committed, in the case
of revolving credit debt; provided that if such Indebtedness is incurred to refinance other
Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable
U.S. dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange
rate in effect on the date of such refinancing, such U.S. dollar denominated restriction shall be
deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness
does not exceed (i) the principal amount of such Indebtedness being refinanced plus (ii) the
aggregate amount of fees, underwriting discounts, premiums and other costs and expenses incurred in
connection with such refinancing.

 

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The principal amount of any Indebtedness incurred to refinance other Indebtedness, if incurred
in a different currency from the Indebtedness being refinanced, shall be calculated based on the
currency exchange rate applicable to the currencies in which such respective Indebtedness is
denominated that is in effect on the date of such refinancing.

Notwithstanding anything to the contrary, the Issuers shall not, and shall not permit any
Guarantor to, directly or indirectly, incur any Indebtedness (including Acquired Indebtedness) that
is subordinated or junior in right of payment to any Indebtedness of an Issuer or such Guarantor,
as the case may be, unless such Indebtedness is expressly subordinated in right of payment to the
Notes or such Guarantor’s Guarantee to the extent and in the same manner as such Indebtedness is
subordinated to other Indebtedness of an Issuer or such Guarantor, as the case may be.

For the purposes of this Indenture, Indebtedness that is unsecured is not deemed to be
subordinated or junior to Secured Indebtedness merely because it is unsecured, and Indebtedness is
not deemed to be subordinated or junior to any other Indebtedness merely because it has a junior
priority with respect to the same collateral.

Section 4.10 Asset Sales.

(I) (a) The Issuers will not, and will not permit any Restricted Subsidiary to, consummate,
directly or indirectly, an Asset Sale of any assets that do not constitute ABL Collateral
(“Non-ABL Collateral”), unless:

(1) an Issuer or such Restricted Subsidiary, as the case may be, receives consideration
at the time of such Asset Sale at least equal to the fair market value (as determined in
good faith by AMLLC) of the assets sold or otherwise disposed of; and

(2) except in the case of a Permitted Asset Swap, at least 75% of the consideration
therefor received by such Issuer or such Restricted Subsidiary, as the case may be, is in
the form of cash or Cash Equivalents.

(b) Within 365 days after the receipt of any Net Proceeds of any Asset Sale covered by this
clause (I), such Issuer or such Restricted Subsidiary, at its option, may apply the Net Proceeds
from such Asset Sale,

(1) to make one or more offers to the Holders of the Notes (and, at the option of the
Issuers, the holders of Other Pari Passu Lien Obligations) to purchase Notes (and such Other
Pari Passu Lien Obligations) pursuant to Section 3.09 (each, an “Asset Sale
Offer”); provided, however, that in connection with any prepayment, repayment or
purchase of Indebtedness pursuant to this clause (1), the Issuers or such Restricted
Subsidiary shall permanently retire such Indebtedness and shall cause the related loan
commitment (if any) to be permanently reduced in an amount equal to the principal amount so
prepaid, repaid or purchased; provided further that if the Issuers or such Restricted
Subsidiary shall so reduce any Other Pari Passu Lien Obligations, the Issuers will equally
and ratably reduce Indebtedness under the Notes by making an offer to all holders of Notes
to purchase at a purchase price equal to 100% of the principal amount thereof, plus accrued
and unpaid interest, the pro rata principal amount of the Notes, such offer to be conducted
in accordance with the procedures set forth below for an Asset Sale Offer but without any
further limitation in amount;

(2) to make (a) an Investment in any one or more businesses, provided that such
Investment in any business is in the form of the acquisition of Capital Stock and results in
any Issuer or a Restricted Subsidiary, as the case may be, owning an amount of the Capital
Stock of such business such that it constitutes or continues to constitute a Restricted
Subsidiary, (b) capital expenditures or (c) acquisitions of other assets that are, in each
of (a), (b) and (c), used or useful in a Similar Business or replace the businesses,
properties and/or assets that are the subject of such Asset Sale (clauses (a), (b) and (c)
together, the “Additional Assets”); or

 

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(3) to the extent such Net Proceeds are not from Asset Sales of Collateral, to
permanently reduce Indebtedness of a Restricted Subsidiary that is not a Guarantor, other
than Indebtedness owed to an Issuer, a Guarantor or a Restricted Subsidiary;

provided that, in the case of clause (2) above, a binding commitment shall be treated as a
permitted application of the Net Proceeds from the date of such commitment so long as such Issuer
or such other Restricted Subsidiary enters into such commitment with the good faith expectation
that such Net Proceeds shall be applied to satisfy such commitment within 180 days of such
commitment (an “Acceptable Commitment”) and, in the event any Acceptable Commitment is
later cancelled or terminated for any reason before the Net Proceeds are applied in connection
therewith, then such Net Proceeds shall constitute Excess Proceeds unless such Issuer or such
Restricted Subsidiary enters into another Acceptable Commitment (a “Second Commitment”)
within 180 days of such cancellation or termination; provided, further, that if any Second
Commitment is later cancelled or terminated for any reason before such Net Proceeds are applied,
then such Net Proceeds shall constitute Excess Proceeds.

(c) Any Net Proceeds from the Asset Sales covered by this clause (I) that are not invested or
applied as provided and within the time period set forth in Section 4.10(b) shall be deemed to
constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $20,000,000,
the Issuers shall make an Asset Sale Offer to all Holders of the Notes, and, if required by the
terms of any Other Pari Passu Lien Obligations, to the holders of such Other Pari Passu Lien
Obligations, to purchase the maximum aggregate principal amount of the Notes and such Other Pari
Passu Lien Obligations that is equal to $1,000 or an integral multiple thereof that may be
purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date fixed for the
closing of such offer, in accordance with the procedures set forth in this Indenture. The Issuers
shall commence an Asset Sale Offer with respect to Excess Proceeds within ten Business Days after
the date that Excess Proceeds exceed $20,000,000 by mailing the notice required pursuant to the
terms of this Indenture, with a copy to the Trustee. The Issuers may satisfy the foregoing
obligation with respect to such Net Proceeds from an Asset Sale by making an Asset Sale Offer with
respect to such Net Proceeds prior to the expiration of the Application Period.

(d) To the extent that the aggregate amount of Notes and such Other Pari Passu Lien
Obligations tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Issuers
may use any remaining Excess Proceeds for general corporate purposes, subject to the covenants
contained in this Indenture. If the aggregate principal amount of Notes or the Other Pari Passu
Lien Obligations surrendered by such Holders and holders thereof exceeds the amount of Excess
Proceeds, the Issuers shall select the Notes and such Other Pari Passu Lien Obligations to be
purchased on a pro rata basis based on the accreted value or principal amount of the Notes or such
Other Pari Passu Lien Obligations tendered. Upon completion of any such Asset Sale Offer, the
amount of Excess Proceeds shall be reset at zero. After the Issuers or any Restricted Subsidiary
have applied the Net Proceeds from any Asset Sale covered by this clause (I) as provided in, and
within the time periods required by, this paragraph (I), the balance of such Net Proceeds, if any,
from such Asset Sale shall be released by the Notes Collateral Agent to the Issuers or such
Restricted Subsidiary for use by the Issuers or such Restricted Subsidiary for any purpose not
prohibited by the terms of this Indenture.

(II) (a) The Issuers shall not, and shall not permit any Restricted Subsidiary to,
consummate, directly or indirectly, an Asset Sale of any ABL Collateral, unless:

(1) an Issuer or such Restricted Subsidiary, as the case may be, receives consideration
at the time of such Asset Sale at least equal to the fair market value (as determined in
good faith by AMLLC) of the assets sold or otherwise disposed of; and

 

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(2) except in the case of a Permitted Asset Swap at least 75% of the consideration
therefor received by an Issuer or such Restricted Subsidiary, as the case may be, is in the
form of cash or Cash Equivalents.

Within 365 days after the receipt of any Net Proceeds from such Asset Sale covered by this
clause (II), such Issuer or such Restricted Subsidiary may at its option do any one or more of the
following:

(i) permanently reduce any Indebtedness under the Senior Credit Agreement or any other
Indebtedness of AMLLC or a Guarantor that in each case is secured by a Lien on the ABL
Collateral that is prior to the Lien on the ABL Collateral in favor of holders of Notes
(and, in the case of revolving obligations, to correspondingly reduce commitments with
respect thereto), in each case other than Indebtedness owed to an Issuer or a Subsidiary of
AMLLC; or

(ii) to make an Investment in Additional Assets;

provided that, in the case of clause (ii) above, an Acceptable Commitment shall be treated as a
permitted application of the Net Proceeds from the date of such commitment and, in the event any
Acceptable Commitment is later cancelled or terminated for any reason before the Net Proceeds are
applied in connection therewith, then such Net Proceeds shall constitute Excess ABL Proceeds unless
such Issuer or such Restricted Subsidiary enters into a Second Commitment within 180 days of such
cancellation or termination; provided further that if any Second Commitment is later cancelled or
terminated for any reason before such Net Proceeds are applied, then such Net Proceeds shall
constitute Excess ABL Proceeds.

(b) Any Net Proceeds from an Asset Sale covered by this clause (II) that are not invested or
applied as provided and within the time period set forth in clause (a) above shall be deemed to
constitute “Excess ABL Proceeds.” When the aggregate amount of Excess ABL Proceeds exceeds
$20,000,000 AMLLC shall make an offer to all Holders of the Notes, and, if required by the terms of
any Other Pari Passu Lien Obligations, to the holders of such Other Pari Passu Lien Obligations (an
“ABL Asset Sale Offer”), to purchase the maximum aggregate principal amount of Notes and
such Other Pari Passu Lien Obligations, that is equal to $1,000 or an integral multiple thereof
that may be purchased out of the Excess ABL Proceeds at an offer price in cash in an amount equal
to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date
fixed for the closing of such offer, in accordance with the procedures set forth in this Indenture.
The Issuers shall commence an ABL Asset Sale Offer with respect to Excess ABL Proceeds within ten
Business Days after the date that Excess ABL Proceeds exceed $20,000,000 by mailing the notice
required by this Indenture, with a copy to the Trustee. The Issuers may satisfy the foregoing
obligation with respect to such Net Proceeds from an Asset Sale by making an ABL Asset Sale Offer
with respect to such Net Proceeds prior to the expiration of the Application Period.

(c) To the extent that the aggregate amount of Notes and such Other Pari Passu Lien
Obligations tendered pursuant to an ABL Asset Sale Offer is less than the Excess ABL Proceeds, the
Issuers may use any remaining Excess ABL Proceeds for general corporate purposes, subject to other
covenants contained in this Indenture. If the aggregate principal amount of Notes or the Other
Pari Passu Lien Obligations surrendered by such Holders and holders thereof exceeds the amount of Excess ABL
Proceeds, the Issuers shall select the Notes and such Other Pari Passu Lien Obligations to be
purchased on a pro rata basis based on the accreted value or principal amount of the Notes or such
Other Pari Passu Lien Obligations tendered. Upon completion of any such ABL Asset Sale Offer, the
amount of Excess ABL Proceeds shall be reset at zero.

 

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(III) Pending the final application of any Net Proceeds pursuant to this Section 4.10, the
holder of such Net Proceeds may apply such Net Proceeds temporarily to reduce Indebtedness
outstanding under a revolving credit facility (including under the Senior Credit Agreement) or
otherwise invest such Net Proceeds in any manner not prohibited by this Indenture.

(IV) For the purposes of this Section 4.10, any sale by AMLLC or a Restricted Subsidiary of
the Capital Stock of AMLLC or a Restricted Subsidiary that owns assets constituting Non-ABL
Collateral or ABL Collateral shall be deemed to be a sale of such Non-ABL Collateral or ABL
Collateral (or, in the event of a Restricted Subsidiary that owns assets that include any
combination of Non-ABL Collateral and ABL Collateral a separate sale of each of such Non-ABL
Collateral and ABL Collateral). In the event of any such sale (or a sale of assets that includes
any combination of Non-ABL Collateral and ABL Collateral), the proceeds received by AMLLC and the
Restricted Subsidiaries in respect of such sale shall be allocated to the Non-ABL Collateral and
ABL Collateral in accordance with their respective fair market values, which shall be determined by
the Board of AMLLC or, at AMLLC’s election, an independent third party. In addition, for purposes
of this covenant, any sale by AMLLC or any Restricted Subsidiary of the Capital Stock of any Person
that owns only ABL Collateral will not be subject to paragraph (I) above, but rather will be
subject to paragraph (II) above.

(V) For purposes of this Section 4.10, the following are deemed to be cash or Cash
Equivalents:

(1) any liabilities (as shown on AMLLC’s, or such Restricted Subsidiary’s, most recent
balance sheet or in the notes thereto, or if incurred or accrued subsequent to the date of
such balance sheet, such liabilities that would have been shown on AMLLC’s or such
Restricted Subsidiary’s balance sheet or in the footnotes thereto if such incurrence or
accrual had taken place on or prior to the date of such balance sheet, as determined in good
faith by AMLLC) of AMLLC or any Restricted Subsidiary that have superior Lien priority on
the Collateral relative to the Notes or constitute Other Pari Passu Lien Obligations, that
are assumed by the transferee of any such assets (or are otherwise extinguished in
connection with the transactions relating to such Asset Sale) and for which AMLLC and all
Restricted Subsidiaries have been validly released by all creditors in writing;

(2) any securities, notes or other obligations received by AMLLC, a Guarantor or such
Restricted Subsidiary from such transferee that are converted by AMLLC or such Restricted
Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash Equivalents
received) within 180 days following the closing of such Asset Sale; and

(3) any Designated Non-cash Consideration received by AMLLC or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken together with all
other Designated Non-cash Consideration received pursuant to this clause (3) that is at that
time outstanding, not to exceed the greater of (x) $50,000,000 and (y) 3.0% of Total Assets
at the time of the receipt of such Designated Non-cash Consideration, with the fair market
value of each item of Designated Non-cash Consideration being measured at the time received
and without giving effect to subsequent changes in value.

(VI) The notice, if mailed in a manner herein provided, shall be conclusively presumed to have
been given, whether or not the Holder receives such notice. If (a) the notice is mailed in a
manner herein provided and (b) any Holder fails to receive such notice or a Holder receives such
notice but it is defective, such Holder’s failure to receive such notice or such defect shall not
affect the validity of the proceedings for the purchase of the Notes as to all other Holders that
properly received such notice without defect. The Issuers shall comply with the requirements of
Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with each repurchase of Notes
pursuant to an Asset Sale Offer. To the extent that the provisions of any securities laws or
regulations conflict with the Asset Sale provisions of this Indenture, the Issuers shall comply
with the applicable securities laws and regulations and shall not be deemed to have breached their
obligations under this Section 4.10 by virtue of such compliance.

 

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Section 4.11 Transactions with Affiliates.

(a) The Issuers shall not, and shall not permit any of the Restricted Subsidiaries to, make
any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets
to, or purchase any property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of AMLLC (each of the foregoing, an “Affiliate Transaction”) involving aggregate
payments or consideration in excess of $10,000,000, unless:

(1) such Affiliate Transaction is on terms that are not materially less favorable to
the Issuers or the relevant Restricted Subsidiary than those that would have been obtained
in a comparable transaction by the Issuers or such Restricted Subsidiary with an unrelated
Person on an arm’s-length basis; and

(2) the Issuers deliver to the Trustee with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate payments or consideration in
excess of $20,000,000, a resolution adopted by a majority of the Boards of the Issuers
approving such Affiliate Transaction and set forth in an Officer’s Certificate certifying
that such Affiliate Transaction complies with clause (1) of this Section 4.11(a).

(b) The provisions of Section 4.11(a) shall not apply to the following:

(1) transactions between or among the Issuers or any of the Restricted Subsidiaries or
any entity that becomes a Restricted Subsidiary as a result of such transaction;

(2) Restricted Payments permitted by Section 4.07 and the definition of “Permitted
Investments”;

(3) the payment of indemnification and other similar amounts to the Investors and
reimbursement of expenses of the Investors approved by, or pursuant to arrangements approved
by, the Board of an Issuer;

(4) the payment of reasonable and customary fees and compensation paid to, and
indemnities and reimbursements and employment and severance arrangements provided on behalf
of, or for the benefit of, former, current or future officers, directors, employees or
consultants of an Issuer, any of the Restricted Subsidiaries or any Parent Entity;

(5) transactions in which an Issuer or any of the Restricted Subsidiaries, as the case
may be, delivers to the Trustee a letter from an Independent Financial Advisor stating that
such transaction is fair to such Issuer or such Restricted Subsidiary from a financial point
of view or stating that the terms are not materially less favorable to such Issuer or its
relevant Restricted Subsidiary than those that would have been obtained in a comparable
transaction by the Issuers or such Restricted Subsidiary with an unrelated Person on an
arm’s-length basis;

 

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(6) any agreement or arrangement as in effect as of the Issue Date, or any amendment
thereto (so long as any such amendment is not disadvantageous in any material respect to the
Holders when taken as a whole as compared to the applicable agreement as in effect on the
Issue Date);

(7) the existence of, or the performance by an Issuer or any of the Restricted
Subsidiaries of its obligations under the terms of, any stockholders agreement or the
equivalent (including any registration rights agreement or purchase agreement related
thereto) to which it is a party as of the Issue Date and any similar agreements which it may
enter into thereafter; provided, however, that the existence of, or the performance by an
Issuer or any of the Restricted Subsidiaries of, obligations under any future amendment to
any such existing agreement or under any similar agreement entered into after the Issue Date
shall only be permitted by this clause (7) to the extent that the terms of any such
amendment or new agreement are not otherwise disadvantageous in any material respect to the
Holders when taken as a whole;

(8) the Transactions and the payment of all fees and expenses related to the
Transactions, in each case as expressly contemplated in the Offering Memorandum;

(9) transactions with customers, clients, suppliers, or purchasers or sellers of goods
or services that are Affiliates, in each case in the ordinary course of business and
otherwise in compliance with the terms of this Indenture which are fair to the Issuers and
the Restricted Subsidiaries, in the reasonable determination of the Board of AMLLC or the
senior management thereof, or are on terms at least as favorable as might reasonably have
been obtained at such time from an unaffiliated party;

(10) the issuance or transfer of Equity Interests (other than Disqualified Stock) of
AMLLC to any Parent Entity or to any Permitted Holder or to any director, officer, employee
or consultant (or their respective estates, investment funds, investment vehicles, spouses
or former spouses) of an Issuer, any of AMLLC’s Subsidiaries or any Parent Entity and the
granting and performing of reasonable and customary registration rights;

(11) sales of accounts receivable, or participations therein, in connection with any
Receivables Facility;

(12) payments by an Issuer or any of the Restricted Subsidiaries to any of the
Investors made for any financial advisory, financing, underwriting or placement services or
in respect of other investment banking activities, including, without limitation, in
connection with acquisitions or divestitures which payments are approved by a majority of
the Board of AMLLC in good faith;

(13) payments or loans (or cancellation of loans) to employees, directors or
consultants of an Issuer, any of the Restricted Subsidiaries or any Parent Entity and
employment agreements, stock option plans and other similar arrangements with such
employees, directors or consultants which, in each case, are approved by AMLLC in good
faith;

(14) investments by any of the Investors in securities of AMLLC or any of the
Restricted Subsidiaries (and payment of reasonable out-of-pocket expenses incurred by such
Investors in connection therewith) so long as (i) the investment is being offered generally
to other investors on the same or more favorable terms and (ii) the investment constitutes
less than 5% of the proposed or outstanding issue amount of such class of securities;

 

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(15) payments to any future, current or former employee, director, officer, manager or
consultant (or their respective Controlled Investment Affiliates or Immediate Family
Members) of an Issuer, any of their respective Subsidiaries or any Parent Entity pursuant to
any management equity plan or stock option plan or any other management or employee benefit
plan or agreement or any stock subscription or shareholder agreement; and any employment
agreements, stock option plans and other compensatory arrangements (and any successor plans
thereto) and any health, disability and similar insurance or benefit plans or supplemental
executive retirement benefit plans or arrangements with any such employees, directors,
officers, managers or consultants (or their respective Controlled Investment Affiliates or
Immediate Family Members) that are, in each case, approved by AMLLC in good faith;

(16) transactions with a Person that is an Affiliate of the Issuers solely because the
Issuers own any Equity Interest in, or controls such Person;

(17) payments by an Issuer (and any Parent Entity) and their respective Subsidiaries
pursuant to tax sharing agreements among the Issuers (and any such Parent Entity) and their
respective Subsidiaries; provided that in each case the amount of such payments in any
fiscal year does not exceed the amount that the Issuers, the Restricted Subsidiaries and its
Unrestricted Subsidiaries (to the extent of amount received from Unrestricted Subsidiaries)
would be required to pay in respect of foreign, federal, state and local taxes for such
fiscal year were the Issuers, the Restricted Subsidiaries and its Unrestricted Subsidiaries
(to the extent described above) to pay such taxes separately from any such Parent Entity;

(18) any lease entered into between an Issuer or any Restricted Subsidiary, as lessee
and any Affiliate of the Issuers, as lessor, which is approved by a majority of the
disinterested Board of AMLLC;

(19) intellectual property licenses in the ordinary course of business; and

(20) the Redemption Bridge Loans.

Section 4.12 Liens.

The Issuers shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create, incur, assume or suffer to exist any Lien (except Permitted Liens) (each, a
“Subject Lien”) that secures obligations under any Indebtedness on any asset or property of
an Issuer or any Restricted Subsidiary, unless:

(1) in the case of Subject Liens on any Collateral, any Subject Lien if (i) such
Subject Lien expressly has Junior Lien Priority on the Collateral relative to the Notes and
Guarantees; or (ii) such Subject Lien is a Permitted Lien; and

(2) in the case of any other asset or property, any Subject Lien if (i) the Notes are
equally and ratably secured with (or on a senior basis to, in the case such Subject Lien
secures any Subordinated Indebtedness) the obligations secured by such Subject Lien or (ii)
such Subject Lien is a Permitted Lien.

Any Lien created for the benefit of the Holders of the Notes pursuant to this Section 4.12
shall provide by its terms that such Lien shall be automatically and unconditionally be released
and discharged upon the release and discharge of the Initial Lien that gave rise to the obligation
to so secure the Notes.

 

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Section 4.13 Corporate Existence.

Subject to Article 5, the Issuers shall do or cause to be done all things necessary to
preserve and keep in full force and effect (i) their company existence, and the corporate,
partnership, limited liability company or other existence of each of the Restricted Subsidiaries,
in accordance with the respective organizational documents (as the same may be amended,
supplemented or otherwise modified from time to time) of the Issuers or any such Restricted
Subsidiary and (ii) the rights (charter and statutory), licenses and franchises of the Issuers and
the Restricted Subsidiaries; provided that the Issuers shall not be required to preserve any such
right, license or franchise, or the corporate, partnership, limited liability company or other
existence of any of the Restricted Subsidiaries, if the Issuers in good faith shall determine that
the preservation thereof is no longer desirable in the conduct of the business of the Issuers and
the Restricted Subsidiaries, taken as a whole.

Section 4.14 Offer to Repurchase Upon Change of Control.

(a) If a Change of Control occurs, unless, prior to the time the Issuers are required to make
a Change of Control Offer, the Issuers have previously or concurrently mailed a redemption notice
with respect to all the outstanding Notes as described under Section 3.07 or Section 12.01, the
Issuers shall make an offer to purchase all of the Notes pursuant to the offer described below (the
“Change of Control Offer”) at a price in cash (the “Change of Control Payment”)
equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest, if any,
to, but excluding, the date of purchase, subject to the right of Holders of the Notes of record on
the relevant Record Date to receive interest due on the relevant Interest Payment Date. Within 30
days following any Change of Control, the Issuers shall send notice of such Change of Control Offer
by first-class mail, with a copy to the Trustee, to each Holder of Notes to the address of such
Holder appearing in the security register or otherwise in accordance with the procedures of DTC,
with the following information:

(1) that a Change of Control Offer is being made pursuant to this Section 4.14 and that
all Notes properly tendered pursuant to such Change of Control Offer will be accepted for
payment by the Issuers;

(2) the purchase price and the purchase date, which will be no earlier than 20 Business
Days nor later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”);

(3) that any Note not properly tendered will remain outstanding and continue to accrue
interest;

(4) that unless the Issuers default in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue
interest on the Change of Control Payment Date;

(5) that Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender such Notes, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of such Notes completed, to the paying agent specified in the
notice at the address specified in the notice prior to the close of business on the third
Business Day preceding the Change of Control Payment Date;

(6) that Holders shall be entitled to withdraw their tendered Notes and their election
to require the Issuers to purchase such Notes; provided that the paying agent receives, not
later than the expiration time of the Change of Control Offer, a telegram, facsimile
transmission or letter setting forth the name of the Holder of the Notes, the principal
amount of Notes tendered for purchase, and a statement that such Holder is withdrawing its
tendered Notes and its election to have such Notes purchased;

 

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(7) that if the Issuers are redeeming less than all of the Notes, the Holders of the
remaining Notes will be issued new Notes and such new Notes will be equal in principal
amount to the unpurchased portion of the Notes surrendered. The unpurchased portion of the
Notes must be equal to $2,000 or an integral multiple of $1,000 in excess thereof;

(8) if such notice is delivered prior to the occurrence of a Change of Control, stating
that the Change of Control Offer is conditional on the occurrence of such Change of Control;
and

(9) the other instructions, as determined by the Issuers, consistent with this Section
4.14, that a Holder must follow.

The Issuers shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of Notes pursuant to a Change of Control Offer. To
the extent that the provisions of any securities laws or regulations conflict with the provisions
of this Section 4.14, the Issuers shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached their obligations under this Section 4.14 by virtue
thereof.

(b) On the Change of Control Payment Date, the Issuers shall, to the extent permitted by law,

(1) accept for payment all Notes issued by them or portions thereof properly tendered
pursuant to the Change of Control Offer,

(2) deposit with the Paying Agent an amount equal to the aggregate Change of Control
Payment in respect of all Notes or portions thereof so tendered, and

(3) deliver, or cause to be delivered, to the Trustee for cancellation the Notes so
accepted together with an Officer’s Certificate to the Trustee stating that such Notes or
portions thereof have been tendered to and purchased by the Issuers.

(c) The Issuers shall not be required to make a Change of Control Offer if a third party makes
the Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.14 applicable to a Change of Control Offer made by the
Issuers and purchases all Notes validly tendered and not withdrawn under such Change of Control
Offer. Notwithstanding anything to the contrary herein, a Change of Control Offer may be made in
advance of a Change of Control, conditional upon such Change of Control, if a definitive agreement
is in place for the Change of Control at the time of making of the Change of Control Offer.

(d) With respect to the Notes, if Holders of not less than 95% in aggregate principal amount
of the outstanding Notes validly tender and do not withdraw such Notes in a Change of Control Offer
and the Issuers, or any third party making a Change of Control Offer in lieu of the Issuers as
described in clause (c) above, purchases all of the Notes validly tendered and not withdrawn by
such Holders, the Issuers or such third party will have the right, upon not less than 30 nor more
than 60 days’ prior notice, given not more than 30 days following such purchase pursuant to the
Change of Control Offer described above, to redeem all Notes that remain outstanding following such
purchase at a price in cash equal to the applicable Change of Control Payment plus, to the extent
not included in the Change of Control Payment, accrued and unpaid interest, if any, thereon, to the
date of redemption.

 

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(e) Other than as specifically provided in this Section 4.14, any purchase pursuant to this
Section 4.14 shall be made pursuant to the provisions of Sections 3.02, 3.05 and 3.06.

Section 4.15 Additional Guarantees.

AMLLC shall not permit any of its Domestic Subsidiaries that is a Wholly Owned Subsidiary (and
Domestic Subsidiaries that are non-Wholly Owned Subsidiaries if such non-Wholly Owned Subsidiaries
guarantee other capital markets debt securities of any Issuer or any Guarantor), other than a
Guarantor, to guarantee the payment of any Indebtedness of any Issuer or any other Guarantor unless
such Domestic Subsidiary within 30 days executes and delivers a supplemental indenture to this
Indenture providing for a Guarantee by such Domestic Subsidiary, except that with respect to a
guarantee of Indebtedness of any Issuer or any Guarantor:

(1) if the Notes or such Guarantor’s Guarantee are subordinated in right of payment to
such Indebtedness, the Guarantee under the supplemental indenture shall be subordinated to
such Domestic Subsidiary’s guarantee with respect to such Indebtedness substantially to the
same extent as the Notes are subordinated to such Indebtedness; and

(2) if such Indebtedness is by its express terms subordinated in right of payment to
the Notes or such Guarantor’s Guarantee, any such guarantee by such Restricted Subsidiary
with respect to such Indebtedness shall be subordinated in right of payment to such
Guarantee substantially to the same extent as such Indebtedness is subordinated to the
Notes;

provided that this Section 4.15 shall not be applicable to any guarantee of any Domestic Subsidiary
that existed at the time such Person became a Domestic Subsidiary and was not incurred in
connection with, or in contemplation of, such Person becoming a Domestic Subsidiary; and provided,
further, no Excluded Subsidiary shall be required to become a Guarantor at any time.

Section 4.16 Discharge and Suspension of Covenants.

(a) If after the Issue Date (i) the Notes have Investment Grade Ratings from both Rating
Agencies and (ii) no Default has occurred and is continuing under this Indenture then, beginning on
that day, Section 4.07, Section 4.08, Section 4.09, Section 4.10, Section 4.11 and clause (4) of
Section 5.01(a) (collectively, the “Suspended Covenants”) shall no longer be applicable to
the Notes. In addition, the amount of Excess Proceeds and Excess ABL Proceeds, in each case from
Net Proceeds shall be reset at zero.

(b) In the event that the Issuers and the Restricted Subsidiaries are not subject to the
Suspended Covenants under this Indenture for any period of time (such period the “Suspension
Period”) as a result of the foregoing, and on any subsequent date (the “Reversion
Date”) one or both of the Rating Agencies (i) withdraw their Investment Grade Rating or
downgrade the rating assigned to the Notes below an Investment Grade Rating or (ii) the Issuers or any of their Affiliates enters into an
agreement to effect a transaction and one or more of the Rating Agencies indicate that if
consummated, such transaction (alone or together with any related recapitalization or refinancing
transactions) would cause such Rating Agency to withdraw its Investment Grade Rating or downgrade
the ratings assigned to the Notes below an Investment Grade Rating, then the Issuers and the
Restricted Subsidiaries shall thereafter again be subject to the Suspended Covenants under this
Indenture with respect to future events, including, without limitation, a proposed transaction
described in clause (ii) of this clause (b).

 

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(c) In the event of any such reinstatement, no action taken or omitted to be taken by the
Issuers or any of the Restricted Subsidiaries prior to such reinstatement will give rise to a
Default or Event of Default under this Indenture with respect to the Notes; provided that (i) with
respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments
made will be calculated as though Section 4.07 had been in effect prior to, but not during the
Suspension Period, and (ii) all Indebtedness incurred, or Disqualified Stock or Preferred Stock
issued, during the Suspension Period will be classified to have been incurred or issued pursuant to
clause (3) of Section 4.09(b). No Subsidiaries shall be designated as Unrestricted Subsidiaries
during any Suspension Period.

(d) The Issuers shall deliver promptly to the Trustee an Officer’s Certificate notifying it of
any such occurrence under this Section 4.16.

Section 4.17 [Reserved].

Section 4.18 Restrictions on Activities of the Co-Issuer.

The Co-Issuer shall not hold any material assets, become liable for any material obligations
or engage in any business activities or operations; provided that the Co-Issuer may (i) be a
co-obligor with respect to Indebtedness (including, for the avoidance of doubt, the Notes) if an
Issuer is a primary obligor on such Indebtedness, the net proceeds of such Indebtedness are
received by such Issuer or one or more of the Restricted Subsidiaries and such Indebtedness is
otherwise permitted to be incurred under this Indenture and (ii) guarantee any Obligations under
the Senior Credit Agreement or any other Lenders Debt.

Section 4.19 Further Assurances; After Acquired Property.

Subject to the applicable limitations set forth in the Security Documents and this Indenture
(including with respect to Excluded Assets), the Issuers and the Guarantors shall execute any and
all further documents, financing statements, agreements and instruments, and take all further
action that may be required under applicable law, or that the Notes Collateral Agent may reasonably
request, in order to grant, preserve, protect and perfect the validity and priority of the security
interests created or intended to be created by the Security Documents in the Collateral. Subject
to the applicable limitations set forth in the Security Documents and this Indenture (including
with respect to Excluded Assets), if after the Issue Date an Issuer or a Guarantor acquires
property that is not automatically subject to a perfected security interest under the Security
Documents and such property constitutes (or would constitute) Collateral or acquires any Real
Estate Asset or an entity becomes a Guarantor, then such Issuer or Guarantor shall, within 90 days
after acquisition (with respect to real property and related fixtures) and as soon as practicable
(with respect to other assets), provide security over such property (or, in the case of a new
Guarantor, its assets that would constitute Collateral under the Security Documents) in favor of
the Notes Collateral Agent and deliver certain joinder agreements or supplements as required by
this Indenture and the Security Documents. Notwithstanding the foregoing, until the Discharge of
ABL Obligations, the Issuers and the Guarantors shall only be required to comply with the foregoing
requirements with respect to any
ABL Collateral to the extent that such ABL Collateral is concurrently being pledged to secure
the Obligations under the Lenders Debt.

Section 4.20 Information Regarding Collateral.

The Issuers shall furnish to the Notes Collateral Agent, with respect to the Issuers or any
Guarantor, prompt written notice of any change in such Person’s (i) organizational name, (ii)
jurisdiction of organization or formation, (iii) identity or organizational structure or (iv)
organizational identification number.

 

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ARTICLE 5

SUCCESSORS

Section 5.01 Merger, Consolidation or Sale of All or Substantially All Assets.

(a) No Issuer shall consolidate or merge with or into or wind up into (whether or not an
Issuer is the surviving corporation), or sell, assign, transfer, lease, convey or otherwise dispose
of all or substantially all of its properties or assets, in one or more related transactions, to
any Person unless:

(1) one of the Issuers is the surviving Person or the Person formed by or surviving any
such consolidation or merger (if other than an Issuer) or to which such sale, assignment,
transfer, lease, conveyance or other disposition will have been made is a Person organized
or existing under the laws of the United States, any state thereof, the District of
Columbia, or any territory thereof (such Person, as the case may be, being herein called the
“Successor Company”); provided that in the case where the Successor Company is not a
corporation, a co-obligor of the Notes is a corporation;

(2) the Successor Company, if other than an Issuer, expressly assumes all the
obligations of the Issuers under this Indenture, the Security Documents and the Notes
pursuant to supplemental indentures or other documents or instruments in form reasonably
satisfactory to the Trustee;

(3) immediately after such transaction, no Default exists;

(4) immediately after giving pro forma effect to such transaction and any related
financing transactions, as if such transactions had occurred at the beginning of the
applicable four quarter period,

(A) the Successor Company or the Issuers would be permitted to incur at least
$1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test
set forth in Section 4.09(a), or

(B) the Fixed Charge Coverage Ratio for the Successor Company and the
Restricted Subsidiaries would be greater than the Fixed Charge Coverage Ratio for
the Issuers and the Restricted Subsidiaries immediately prior to such transaction;

(5) each Guarantor, unless it is the other party to the transactions described above,
in which case Section 5.01(d) shall apply, shall have by supplemental indenture confirmed
that its Guarantee shall apply to such Person’s obligations under this Indenture, the Notes
and the Registration Rights Agreement;

(6) the Issuers shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with this Indenture;

(7) to the extent any assets of the Person which is merged or consolidated with or into
the Successor Company are assets of the type which would constitute Collateral under the
Security Documents, the Successor Company will take such action as may be reasonably
necessary to cause such property and assets to be made subject to the Lien of the Security
Documents in the manner and to the extent required in this Indenture or any of the Security
Documents and shall take all reasonably necessary action so that such Lien is perfected to
the extent required by the Security Documents; and

 

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(8) the Collateral owned by or transferred to the Successor Company shall: (a) continue
to constitute Collateral under this Indenture and the Security Documents, (b) be subject to
the Lien in favor of the Notes Collateral Agent for the benefit of the Trustee and the
holders of the Notes, and (c) not be subject to any Lien other than Permitted Liens.

(b) The Successor Company shall succeed to, and be substituted for, the Issuers, as the case
may be, under this Indenture, the Guarantees and the Notes, as applicable. Notwithstanding clauses
(3) and (4) of Section 5.01(a),

(1) any Restricted Subsidiary may consolidate with or merge into or transfer all or
part of its properties and assets to AMLLC or any Restricted Subsidiary; and

(2) AMLLC may consolidate or merge with an Affiliate of AMLLC, as the case may be,
solely for the purpose of reincorporating AMLLC in the United States, any state thereof, the
District of Columbia or any territory thereof so long as the amount of Indebtedness of AMLLC
and the Restricted Subsidiaries is not increased thereby.

(c) Notwithstanding clause (a) or (b) of this Section 5.01, the Mergers shall be permitted
under this Indenture without any further requirement under this Section 5.01. Effective upon
consummation of the Mergers, AMLLC expressly assumes all the obligations of Carey Acquisition Corp.
under this Indenture, the Security Documents and the Notes.

(d) Subject to certain limitations described in this Indenture governing release of a
Guarantee upon the sale, disposition or transfer of a Guarantor, no Guarantor shall, and the
Issuers shall not permit any Guarantor to, consolidate or merge with or into or wind up into
(whether or not such Issuer or Guarantor is the surviving Person), or sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of its properties or assets, in one
or more related transactions, to any Person unless:

(1) (A) such Guarantor is the surviving Person or the Person formed by or surviving any
such consolidation or merger (if other than such Guarantor) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been made is a Person
organized or existing under the laws of the jurisdiction of organization of such Guarantor,
as the case may be, or the laws of the United States, any state thereof, the District of
Columbia, or any territory thereof (such Guarantor or such Person, as the case may be, being
herein called the “Successor Person”);

(B) the Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under this Indenture and such Guarantor’s related Guarantee
pursuant to supplemental indentures or other documents or instruments in form reasonably
satisfactory to the Trustee;

(C) immediately after such transaction, no Default exists;

(D) the Issuers shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with this Indenture;

 

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(E) To the extent any assets of the Guarantor which is merged or consolidated with or
into the Successor Person are assets of the type which would constitute Collateral under the
Security Documents, the Successor Person shall take such action as may be reasonably
necessary to cause such property and assets to be made subject to the Lien of the Security
Documents in the manner and to the extent required in this Indenture or any of the Security
Documents and shall take all reasonably necessary action so that such Lien is perfected to
the extent required by the Security Documents; and

(F) The Collateral owned by or transferred to the Successor Person shall: (i) continue
to constitute Collateral under this Indenture and the Security Documents, (ii) be subject to
the Lien in favor of the Notes Collateral Agent for the benefit of the Trustee and the
holders of the Notes, and (iii) not be subject to any Lien other than Permitted Liens; or

(2) the transaction is made in compliance with Section 4.10.

(e) Subject to certain limitations described in this Indenture, the Successor Person shall
succeed to, and be substituted for, such Guarantor under this Indenture and such Guarantor’s
Guarantee. Notwithstanding the foregoing, any Guarantor may (i) merge into or transfer all or part
of its properties and assets to another Guarantor or AMLLC, (ii) merge with an Affiliate of an
Issuer solely for the purpose of reincorporating or reorganizing the Guarantor in the United
States, any state thereof, the District of Columbia or any territory thereof so long as the amount
of Indebtedness of an Issuer and the Restricted Subsidiaries is not increased thereby, or (iii)
convert into a Person organized or existing under the laws of the jurisdiction of such Guarantor.

Section 5.02 Successor Corporation Substituted.

Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the assets of an Issuer in accordance with Section
5.01, the successor corporation formed by such consolidation or into or with which such Issuer is
merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is made
shall succeed to, and be substituted for (so that from and after the date of such consolidation,
merger, sale, lease, conveyance or other disposition, the provisions of this Indenture referring to
such Issuer shall refer instead to the successor corporation and not to such Issuer), and may
exercise every right and power of such Issuer under this Indenture with the same effect as if such
successor Person had been named as such Issuer herein; provided that the predecessor Issuer shall
not be relieved from the obligation to pay the principal of and interest, if any, on the Notes
except in the case of a sale, assignment, transfer, conveyance or other disposition of all of such
Issuer’s assets that meets the requirements of Section 5.01.

ARTICLE 6

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

(a) An “Event of Default” wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):

(1) default in payment when due and payable, upon redemption, acceleration or
otherwise, of principal of, or premium, if any, on the Notes;

 

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(2) default for 30 days or more in the payment when due of interest on or with respect
to the Notes;

(3) failure by the Issuers or any Guarantor for 60 days after receipt of written notice
given by the Trustee or the Holders of not less than 30% in principal amount of the
outstanding Notes to comply with any of its obligations, covenants or agreements (other than
a default referred to in clauses (1) or (2) above) contained in this Indenture or the Notes;
provided that in the case of a failure to comply with Section 4.03, such period of
continuance of such default or breach shall be 180 days after written notice described in
this clause (3) has been given; provided, further, that failure by any Issuer or any
Restricted Subsidiary to comply with the provisions of Section 314 of the Trust Indenture
Act will not in itself be deemed a Default or an Event of Default under this Indenture;

(4) default under any mortgage, deed of trust, indenture or instrument under which
there is issued or by which there is secured or evidenced any Indebtedness for money
borrowed by an Issuer or any of the Restricted Subsidiaries or the payment of which is
guaranteed by an Issuer or any of the Restricted Subsidiaries, other than Indebtedness owed
to an Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists
or is created after the issuance of the Notes, if both:

(i) such default either results from the failure to pay any principal of such
Indebtedness at its stated final maturity (after giving effect to any applicable
grace periods) or relates to an obligation other than the obligation to pay
principal of any such Indebtedness at its stated final maturity and results in the
holder or holders of such Indebtedness causing such Indebtedness to become due prior
to its stated maturity; and

(ii) the principal amount of such Indebtedness, together with the principal
amount of any other such Indebtedness in default for failure to pay principal at its
stated final maturity (after giving effect to any applicable grace periods), or the
maturity of which has been so accelerated, aggregate $25,000,000 or more at any one
time outstanding;

(5) failure by an Issuer or any Significant Subsidiary (or group of Restricted
Subsidiaries that together (determined as of the most recent consolidated financial
statements of AMLLC for a fiscal quarter end provided as required pursuant to Section 4.03)
would constitute a Significant Subsidiary) to pay final judgments aggregating in excess of
$25,000,000 (net of amounts covered by insurance policies issued by reputable insurance
companies), which final judgments remain unpaid, undischarged and unstayed for a period of more than 60 days after such
judgment becomes final, and in the event such judgment is covered by insurance, an
enforcement proceeding has been commenced by any creditor upon such judgment or decree which
is not promptly stayed;

(6) an Issuer or any Significant Subsidiary (or group of Restricted Subsidiaries that
together (determined as of the most recent consolidated financial statements of AMLLC for a
fiscal quarter end provided as required pursuant to Section 4.03) would constitute a
Significant Subsidiary), pursuant to or within the meaning of any Bankruptcy Law:

(i) commences proceedings to be adjudicated bankrupt or insolvent;

 

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(ii) consents to the institution of bankruptcy or insolvency proceedings
against it, or the filing by it of a petition or answer or consent seeking
reorganization or relief under applicable Bankruptcy Law;

(iii) consents to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator or other similar official of it or for all or substantially all of its
property;

(iv) makes a general assignment for the benefit of its creditors; or

(v) generally is not paying its debts as they become due;

(7) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

(i) is for relief against an Issuer or any of the Restricted Subsidiaries that
is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary, in a proceeding in which an
Issuer or any such Restricted Subsidiaries, that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary, is to be adjudicated bankrupt or insolvent;

(ii) appoints a receiver, liquidator, assignee, trustee, sequestrator or other
similar official of an Issuer or any of the Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken together,
would constitute a Significant Subsidiary, or for all or substantially all of the
property of an Issuer or any of the Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary; or

(iii) orders the liquidation of an Issuer or any of the Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days; or

(8) the Guarantee of any Significant Subsidiary shall for any reason cease to be in
full force and effect or be declared null and void or any responsible officer of any
Guarantor that is a Significant Subsidiary (or the responsible officers of any group of
Restricted Subsidiaries that together (determined as of the most recent consolidated
financial statements of AMLLC for a fiscal quarter end provided as required pursuant to
Section 4.03) would constitute a Significant Subsidiary), as the case may be, denies that it has any further liability under its
Guarantee or gives notice to such effect, other than by reason of the termination of this
Indenture or the release of any such Guarantee in accordance with this Indenture; or

 

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(9) with respect to any Collateral, individually or in the aggregate, having a fair
market value in excess of $50,000,000, any of the Security Documents ceases to be in full
force and effect, or any of the Security Documents ceases to give the Holders the Liens
purported to be created thereby, or any of the Security Documents is declared null and void
or any Issuer or any Guarantor denies in writing that it has any further liability under any
Security Document or gives written notice to such effect (in each case (i) other than in
accordance with the terms of this Indenture or the terms of the Senior Credit Agreement or
the Security Documents or (ii) unless waived by the requisite lenders under the Senior
Credit Agreement if, after that waiver, the Issuers are in compliance with Section 4.19 and
Article 11), except to the extent that any loss of perfection or priority results from the
failure of the Notes Collateral Agent or the Bank Collateral Agent to maintain possession of
certificates actually delivered to it representing securities pledged under the Security
Documents, or otherwise results from the gross negligence or willful misconduct of the
Trustee, the Notes Collateral Agent or the Bank Collateral Agent; provided that if a failure
of the sort described in this clause (9) is susceptible of cure (including with respect to
any loss of Lien priority on material portions of the Collateral), no Event of Default shall
arise under this clause (9) with respect thereto until 30 days after notice of such failure
shall have been given to the Issuers by the Trustee or the Holders of at least 30% in
principal amount of the then outstanding Notes issued under this Indenture.

(b) In the event of any Event of Default specified in clause (4) of Section 6.01(a), such
Event of Default and all consequences thereof (excluding any resulting payment default, other than
as a result of acceleration of the Notes) shall be annulled, waived and rescinded, automatically
and without any action by the Trustee or the Holders, if within 20 days after such Event of Default
arose:

(1) the Indebtedness or guarantee that is the basis for such Event of Default has been
discharged; or

(2) holders thereof have rescinded or waived the acceleration, notice or action (as the
case may be) giving rise to such Event of Default; or

(3) the default that is the basis for such Event of Default has been cured.

Section 6.02 Acceleration.

If any Event of Default (other than an Event of Default specified in clause (6) or (7) of
Section 6.01(a)) occurs and is continuing under this Indenture, the Trustee or the Holders of at
least 30% in principal amount of the then total outstanding Notes may declare the principal,
premium, if any, interest and any other monetary obligations on all the then outstanding Notes to
be due and payable immediately. Upon the effectiveness of such declaration, such principal and
interest shall be due and payable immediately.

Notwithstanding the foregoing, in the case of an Event of Default arising under clause (6) or
(7) of Section 6.01(a), all outstanding Notes shall be due and payable immediately without further
action or notice.

The Holders of a majority in aggregate principal amount of the then outstanding Notes by
written notice to the Trustee may on behalf of all of the Holders rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree and if all existing
Events of Default (except nonpayment of principal, interest, if any, or premium that has become due
solely because of the acceleration) have been cured or waived.

If an Event of Default occurs and is continuing that results in an acceleration, the Trustee
and Notes Collateral Agent shall provide an Enforcement Notice pursuant to the terms of the
Intercreditor Agreement.

 

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Section 6.03 Other Remedies.

If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal, premium, if any, and interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a Note
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04 Waiver of Past Defaults.

Holders of not less than a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing
Default and its consequences hereunder, except a continuing Default in the payment of the principal
of, premium, if any, or interest on, any Note held by a non-consenting Holder (including in
connection with an Asset Sale Offer or a Change of Control Offer); provided, subject to Section
6.02, that the Holders of a majority in aggregate principal amount of the then outstanding Notes
may rescind an acceleration and its consequences, including any related payment default that
resulted from such acceleration. Upon any such waiver, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

Section 6.05 Control by Majority.

Subject to the terms of the Security Documents, Holders of a majority in principal amount of
the then total outstanding Notes may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or of exercising any trust or power conferred on the
Trustee. The Trustee, however, may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines is unduly prejudicial to the rights of any other Holder of
a Note (it being understood that the Trustee does not have an affirmative duty to ascertain whether
or not such direction is unduly prejudicial to such Holders) or that would involve the Trustee in
personal liability.

Section 6.06 Limitation on Suits.

Subject to Section 6.07, no Holder of a Note may pursue any remedy with respect to this
Indenture or the Notes unless:

(1) such Holder has previously given the Trustee notice that an Event of Default is
continuing;

(2) Holders of at least 30% in principal amount of the total outstanding Notes have
requested the Trustee to pursue the remedy;

(3) Holders of the Notes have offered and, if requested, provided to the Trustee
indemnity or security satisfactory to the Trustee against any loss, liability or expense;

(4) the Trustee has not complied with such request within 60 days after the receipt
thereof and the offer of security or indemnity; and

(5) Holders of a majority in principal amount of the total outstanding Notes have not
given the Trustee a direction inconsistent with such request within such 60-day period.

 

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A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

Section 6.07 Rights of Holders of Notes to Receive Payment.

Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium, if any, and interest on the Note, on or after the respective
due dates expressed in the Note (including in connection with an Asset Sale Offer or a Change of
Control Offer), or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder.

Section 6.08 Collection Suit by Trustee.

If an Event of Default specified in Section 6.01(a)(1) or (2) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Issuers for the whole amount of principal of, premium, if any, and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

Section 6.09 Restoration of Rights and Remedies.

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceedings, the Issuers, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding has been
instituted.

Section 6.10 Rights and Remedies Cumulative.

Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in Section 2.07, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy.

Section 6.11 Delay or Omission Not Waiver.

No delay or omission of the Trustee or of any Holder of any Note to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

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Section 6.12 Trustee May File Proofs of Claim.

The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the Notes Collateral Agent
(including any claim for the reasonable compensation, expenses, disbursements and advances of the
Trustee, the Notes Collateral Agent and their respective agents and counsel) and the Holders of the
Notes allowed in any judicial proceedings relative to the Issuers (or any other obligor upon the
Notes including the Guarantors), its creditors or its property and shall be entitled and empowered
to participate as a member in any official committee of creditors appointed in such matter and to
collect, receive and distribute any money or other property payable or deliverable on any such
claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee, and in the event that the Trustee and shall consent to the
making of such payments directly to the Holders, to pay to the Trustee and the Notes Collateral
Agent any amount due to them for the reasonable compensation, expenses, disbursements and advances
of the Trustee, the Notes Collateral Agent and their respective agents and counsel, and any other
amounts due the Trustee under Section 7.07. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 out of the estate in any such proceeding, shall be
denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other properties that the Holders may
be entitled to receive in such proceeding whether in liquidation or under any plan of
reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize
the Trustee and the Notes Collateral Agent to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the
Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of
any Holder in any such proceeding.

Section 6.13 Priorities.

Subject to the terms of the Security Documents and Intercreditor Agreement with respect to any
proceeds of Collateral, any money or property collected by the Trustee or the Notes Collateral
Agent pursuant to this Article 6 and any money or other property distributable in respect of any
Grantor’s Obligations under this Indenture after an Event of Default shall be applied in the
following order:

FIRST: to the Trustee for amounts due under Section 7.07 and to the Notes Collateral
Agent for amounts due under Article 11 or under any Security Document;

SECOND: to Holders for amounts due and unpaid on the Notes for the principal premium,
if any, and interest ratably, without preference or priority of any kind, according to the
amounts due and payable on the Notes for principal, premium, if any, and interest,
respectively;

THIRD: without duplication, to Holders for any other Obligations owing to the Holders
under this Indenture and the Notes; and

FOURTH: to the Issuers or as otherwise directed by a court of competent jurisdiction.

The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.13.

 

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Section 6.14 Undertaking for Costs.

In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.14 does not apply to a suit by the
Trustee, a suit by a Holder of a Note pursuant to Section 6.07, or a suit by Holders of more than
10% in principal amount of the then outstanding Notes.

ARTICLE 7

TRUSTEE

Section 7.01 Duties of Trustee.

(a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
its exercise as a prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

(b) Except during the continuance of an Event of Default:

(i) the duties of the Trustee shall be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

(ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee shall examine
the certificates and opinions to determine whether or not they conform to the requirements
of this Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein).

(c) The Trustee may not be relieved from liabilities for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

(i) this paragraph does not limit the effect of paragraph (b) of this Section 7.01;

(ii) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved in a court of competent jurisdiction that the
Trustee was negligent in ascertaining the pertinent facts;

(iii) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05;
and

(iv) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise to incur any liability, financial or otherwise, in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers if it shall have
reasonable grounds for believing that repayment of such funds or indemnity satisfactory to
it against such risk or liability is not assured to it.

 

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(d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

(e) The Trustee shall be under no obligation to exercise any of its rights or powers under
this Indenture at the request or direction of any of the Holders of the Notes unless the Holders
have offered to the Trustee indemnity or security satisfactory to the Trustee against any loss,
liability or expense.

(f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Issuers. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

Section 7.02 Rights of Trustee.

(a) The Trustee may conclusively rely upon any document believed by it to be genuine and to
have been signed or presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Issuers, personally or by agent or attorney at the sole cost of the Issuers and
shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation.

(b) Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel. The Trustee
may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel
shall be full and complete authorization and protection from liability in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

(c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent or attorney appointed with due care.

(d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.

(e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Issuers shall be sufficient if signed by an Officer of each Issuer.

(f) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a Default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Notes and this Indenture. Delivery of reports to the
Trustee pursuant to Section 4.03 shall not constitute actual knowledge of, or notice to, the
Trustee of the information contained therein.

(g) In no event shall the Trustee be responsible or liable for any special, indirect,
punitive, incidental or consequential loss or damage of any kind whatsoever (including, but not
limited to, lost profits) irrespective of whether the Trustee has been advised of the likelihood of
such loss or damage and regardless of the form of action.

 

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(h) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

(i) The Trustee shall not be required to give any bond or surety in respect of the performance
of its powers and duties hereunder.

(j) The Trustee may request that the Issuers and any Guarantor deliver an Officer’s
Certificate setting forth the names of the individuals and/or titles of Officers (with specimen
signatures) authorized at such times to take specific actions pursuant to this Indenture, which
Officer’s Certificate may be signed by any person specified as so authorized in any certificate
previously delivered and not superseded.

Section 7.03 Individual Rights of Trustee.

The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with an Issuer or any Affiliate of an Issuer with the same rights it would
have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for permission to
continue as trustee or resign. Any Agent may do the same with like rights and duties. The Trustee
is also subject to Sections 7.10 and 7.11.

Section 7.04 Trustee’s Disclaimer.

The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Issuers’ use of the
proceeds from the Notes or any money paid to an Issuer or upon an Issuer’s direction under any
provision of this Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

Section 7.05 Notice of Defaults.

If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail or otherwise deliver in accordance with the procedures of DTC to Holders of Notes a notice of
the Default within 90 days after it occurs, unless such default shall have been cured or waived.
Except in the case of a Default relating to the payment of principal, premium, if any, or interest
on any Note, the Trustee may withhold from the Holders notice of any continuing Default if and so
long as the board of directors, the executive committee or a trust committee of directors or
Responsible Officers of the Trustee in good faith determines that withholding the notice is in the
interests of the Holders of the Notes.

Section 7.06 Reports by Trustee to Holders of the Notes.

Within 60 days after each May 15, beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee shall mail to the Holders of
the Notes a brief report dated as of such reporting date that complies with Trust Indenture Act
Section 313(a) (but if no event described in Trust Indenture Act Section 313(a) has occurred within
the twelve months preceding the reporting date, no report need be transmitted). The Trustee also
shall comply with Trust Indenture Act Section 313(b)(2). The Trustee shall also transmit by mail
all reports as required by Trust Indenture Act Section 313(c).

 

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A copy of each report at the time of its mailing to the Holders of Notes shall be mailed to
the Issuers and filed with the SEC and each stock exchange on which the Notes are listed in
accordance with Trust Indenture Act Section 313(d). The Issuers shall promptly notify the Trustee
when the Notes are listed on any stock exchange.

Section 7.07 Compensation and Indemnity.

The Issuers shall pay to the Trustee from time to time such compensation for its acceptance of
this Indenture and services hereunder as the parties shall agree in writing from time to time. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Issuers shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the compensation for its
services. Such expenses shall include the reasonable compensation, disbursements and expenses of
the Trustee’s agents and counsel.

The Issuers and the Guarantors, jointly and severally, shall indemnify the Trustee for, and
hold the Trustee harmless against, any and all loss, damage, claim, liability or expense (including
attorneys’ fees) incurred by it in connection with the acceptance or administration of this trust
and the performance of its duties hereunder (including the costs and expenses of enforcing this
Indenture against the Issuers or any of the Guarantors (including this Section 7.07) or defending
itself against any claim whether asserted by any Holder, an Issuer or any Guarantor, or liability
in connection with the acceptance, exercise or performance of any of its powers or duties
hereunder). The Trustee shall notify the Issuers promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Issuers shall not relieve the Issuers of their
obligations hereunder. The Issuers and the Guarantors shall defend the claim and the Trustee may
have separate counsel and the Issuers shall pay the fees and expenses of such counsel. The Issuers
need not reimburse any expense or indemnify against any loss, liability or expense incurred by the
Trustee through the Trustee’s own willful misconduct or gross negligence.

The obligations of the Issuers and the Guarantors under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture or the earlier resignation or removal of the Trustee.

To secure the payment obligations of the Issuers and the Guarantors in this Section 7.07, the
Trustee shall have a Lien prior to the Notes and rights of the Holders on all money or property
held or collected by the Trustee, except that held in trust to pay principal and interest on
particular Notes. Such Lien shall survive the satisfaction and discharge of this Indenture.

When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.01(a)(6) or (7) occurs, the expenses and the compensation for the services (including the
fees and expenses of its agents and counsel) are intended to constitute expenses of administration
under any Bankruptcy Law.

The Trustee shall comply with the provisions of Trust Indenture Act Section 313(b)(2) to the
extent applicable.

Section 7.08 Replacement of Trustee.

A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.08. The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Issuers. The Holders of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the Issuers in writing.
The Issuers may remove the Trustee if:

(a) the Trustee fails to comply with Section 7.10;

 

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(b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

(c) a custodian or public officer takes charge of the Trustee or its property; or

(d) the Trustee becomes incapable of acting.

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Issuers shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Issuers.

If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee (at the Issuers’ expense), the Issuers or the Holders of at
least 10% in principal amount of the then outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.10, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuers. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07. Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Issuers’ obligations under Section 7.07 shall continue for the benefit of the
retiring Trustee.

Section 7.09 Successor Trustee by Merger, Etc.

If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act shall be the successor Trustee.

Section 7.10 Eligibility; Disqualification.

There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $50,000,000
as set forth in its most recent published annual report of condition.

 

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This Indenture shall always have a Trustee who satisfies the requirements of Trust Indenture
Act Sections 310(a)(1), (2) and (5). The Trustee is subject to Trust Indenture Act Section 310(b).

Section 7.11 Preferential Collection of Claims Against Issuers.

The Trustee is subject to Trust Indenture Act Section 311(a), excluding any creditor
relationship listed in Trust Indenture Act Section 311(b). A Trustee who has resigned or been
removed shall be subject to Trust Indenture Act Section 311(a) to the extent indicated therein.

Section 7.12 Security Documents; Intercreditor Agreement.

By their acceptance of the Notes, the Holders hereby authorize and direct the Trustee and
Notes Collateral Agent, as the case may be, to execute and deliver the Intercreditor Agreement and
the Security Documents in which the Trustee or the Notes Collateral Agent, as applicable, is named
as a party, including any Security Documents executed after the Issue Date. It is hereby expressly
acknowledged and agreed that, in doing so, the Trustee and the Notes Collateral Agent are not
responsible for the terms or contents of such agreements, or for the validity or enforceability
thereof, or the sufficiency thereof for any purpose. Whether or not so expressly stated therein,
in entering into, or taking (or forbearing from) any action under pursuant to, the Intercreditor
Agreement or any other Security Documents, the Trustee and the Notes Collateral Agent each shall
have all of the rights, immunities, indemnities and other protections granted to it under this
Indenture (in addition to those that may be granted to it under the terms of such other agreement
or agreements).

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

The Issuers may, at their option and at any time, elect to have either Section 8.02 or 8.03
applied to all outstanding Notes upon compliance with the conditions set forth below in this
Article 8.

Section 8.02 Legal Defeasance and Discharge.

Upon the Issuers, exercise under Section 8.01 of the option applicable to this Section 8.02,
the Issuers and the Guarantors shall, subject to the satisfaction of the conditions set forth in
Section 8.04, be deemed to have been discharged from their obligations with respect to all
outstanding Notes and Guarantees on the date the conditions set forth below are satisfied
(“Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuers shall be
deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes,
which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 and the
other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all their
other obligations under such Notes and this Indenture and the Security Documents including the
obligations of the Guarantors (and the Trustee, on demand of and at the expense of the Issuers, shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or discharged hereunder:

(a) the rights of Holders of Notes to receive payments in respect of the principal of,
premium, if any, and interest on the Notes when such payments are due solely out of the
trust created pursuant to this Indenture referred to in Section 8.04;

 

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(b) the Issuers’ obligations with respect to Notes concerning issuing temporary Notes,
registration of such Notes, mutilated, destroyed, lost or stolen Notes and the maintenance
of an office or agency for payment and money for security payments held in trust;

(c) the rights, powers, trusts, duties and immunities of the Trustee, and the Issuers’
obligations in connection therewith; and

(d) this Section 8.02.

Subject to compliance with this Article 8, the Issuers may exercise their option under this
Section 8.02 notwithstanding the prior exercise of their option under Section 8.03.

Section 8.03 Covenant Defeasance.

Upon the Issuers’ exercise under Section 8.01 of the option applicable to this Section 8.03,
the Issuers and the Guarantors shall, subject to the satisfaction of the conditions set forth in
Section 8.04, be released from their obligations under the covenants contained in Sections 3.09,
4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.18, 4.19 and 4.20 and
clauses (4), (5), (7) and (8) of Section 5.01(a) and Section 5.01(d) with respect to the
outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied
(“Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the
purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences
of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not be deemed
outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes, the Issuers may omit to comply with and shall have no liability
in respect of any term, condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under Section 6.01, but,
except as specified above, the remainder of this Indenture and such Notes shall be unaffected
thereby. In addition, upon the Issuers’, exercise under Section 8.01 of the option applicable to
this Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04,
Sections 6.01(a)(3), 6.01(a)(4), 6.01(a)(5), 6.01(a)(6) (solely with respect to Restricted
Subsidiaries that are Significant Subsidiaries and any group of Restricted Subsidiaries that
together would constitute a Significant Subsidiary), 6.01(a)(7) (solely with respect to Restricted
Subsidiaries that are Significant Subsidiaries and any group of Restricted Subsidiaries that
together would constitute a Significant Subsidiary), 6.01(a)(8) and 6.01(a)(9) shall not constitute
Events of Default.

Section 8.04 Conditions to Legal or Covenant Defeasance.

The following shall be the conditions to the application of either Section 8.02 or 8.03 to the
outstanding Notes:

In order to exercise either Legal Defeasance or Covenant Defeasance with respect to the Notes:

(1) the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, Government Securities, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal of, premium, if any, and
interest due on the Notes on the stated maturity date or on the redemption date, as the case
may be, of such principal, premium, if any, or interest on such Notes and the Issuers must
specify whether such Notes are being defeased to maturity or to a particular redemption
date;

 

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(2) in the case of Legal Defeasance, the Issuers shall have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions,

(a) the Issuers have received from, or there has been published by, the United
States Internal Revenue Service a ruling, or

(b) since the issuance of the Notes, there has been a change in the applicable
U.S. federal income tax law,

in either case to the effect that, and based thereon such Opinion of Counsel shall confirm
that, subject to customary assumptions and exclusions, the Holders of the Notes will not
recognize income, gain or loss for U.S. federal income tax purposes, as applicable, as a
result of such Legal Defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

(3) in the case of Covenant Defeasance, the Issuers shall have delivered to the Trustee
an Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions, the Holders of the Notes will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such Covenant Defeasance
and will be subject to such tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

(4) no Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other Indebtedness, and,
in each case the granting of Liens in connection therewith) shall have occurred and be
continuing on the date of such deposit;

(5) such Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under the Senior Credit Agreement or any other
material agreement or instrument (other than this Indenture) to which, an Issuer or any
Guarantor is a party or by which an Issuer or any Guarantor is bound (other than that
resulting from borrowing funds to be applied to make such deposit and any similar and
simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens
in connection therewith);

(6) the Issuers shall have delivered to the Trustee an Officer’s Certificate stating
that the deposit was not made by the Issuers with the intent of defeating, hindering,
delaying or defrauding any creditors of an Issuer or any Guarantor or others; and

(7) the Issuers shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel (which Opinion of Counsel may be subject to customary assumptions and exclusions) each stating that all conditions precedent provided for or relating to the
Legal Defeasance or the Covenant Defeasance, as the case may be, have been complied with.

 

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	Section 8.05	 	Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

Subject to Section 8.06, all money and Government Securities (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section
8.05, the “Trustee”) pursuant to Section 8.04 in respect of the outstanding Notes shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent (including an Issuer or a
Guarantor acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all
sums due and to become due thereon in respect of principal, premium and interest, but such money
need not be segregated from other funds except to the extent required by law.

The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or Government Securities deposited pursuant to Section 8.04 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of the outstanding Notes.

Anything in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or pay
to the Issuers from time to time upon the request of the Issuers any money or Government Securities
held by it as provided in Section 8.04 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 8.04(a)), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance.

Section 8.06 Repayment to Issuers.

Any money deposited with the Trustee or any Paying Agent, or then held by the Issuers, in
trust for the payment of the principal of, premium or interest on any Note and remaining unclaimed
for two years after such principal, and premium or interest has become due and payable shall be
paid to the Issuers on their request or (if then held by an Issuer) shall be discharged from such
trust; and the Holder of such Note shall thereafter look only to the Issuers for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Issuers as trustee thereof, shall thereupon cease.

Section 8.07 Reinstatement.

If the Trustee or Paying Agent is unable to apply any United States dollars or Government
Securities in accordance with Section 8.02 or 8.03, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Issuers’ obligations under this Indenture and the Notes shall be revived
and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 until such time
as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02
or 8.03, as the case may be; provided that, if the Issuers make any payment of principal of,
premium or interest on any Note following the reinstatement of their obligations, the Issuers shall
be subrogated to the rights of the Holders of such Notes to receive such payment from the money
held by the Trustee or Paying Agent.

 

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ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

Notwithstanding Section 9.02, the Issuers, any Guarantor (with respect to a Guarantee or this
Indenture) and the Trustee and the Notes Collateral Agent may amend or supplement this Indenture,
the Security Documents, the Intercreditor Agreement and any Guarantee or Notes without the consent
of any Holder:

(1) to cure any ambiguity, omission, mistake, defect or inconsistency;

(2) to provide for uncertificated Notes of such series in addition to or in place of
certificated Notes;

(3) to comply with Section 5.01;

(4) to provide the assumption of the Issuers’, or any Guarantor’s obligations to the
Holders;

(5) to make any change that would provide any additional rights or benefits to the
Holders or that does not adversely affect the legal rights under this Indenture of any such
Holder;

(6) to add covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Issuers or any Guarantor;

(7) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act;

(8) to evidence and provide for the acceptance and appointment under this Indenture of
a successor Trustee thereunder pursuant to the requirements thereof;

(9) to provide for the issuance of exchange notes or private exchange notes, which are
identical to exchange notes except that they are not freely transferable;

(10) to add a Guarantor under this Indenture;

(11) to conform the text of this Indenture, the Security Documents, the Intercreditor
Agreement, the Guarantees or the Notes to any provision of the “Description of Notes”
section of the Offering Memorandum to the extent that such provision in such “Description of
Notes” section was intended to be a verbatim recitation of a provision of this Indenture,
the Security Documents, the Intercreditor Agreement, the Guarantee or Notes;

(12) to make any amendment to the provisions of this Indenture relating to the transfer
and legending of Notes as permitted by this Indenture, including, without limitation, to
facilitate the issuance and administration of the Notes; provided, however, that (i)
compliance with this Indenture as so amended would not result in Notes being transferred in
violation of the Securities Act or any applicable securities law and (ii) such amendment
does not materially and adversely affect the rights of Holders to transfer Notes;

 

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(13) to add additional assets as Collateral; or

(14) to release Collateral from the Lien or any Guarantor from its Guarantee, in each
case pursuant to this Indenture, the Security Documents and the Intercreditor Agreement when
permitted or required by this Indenture or the Security Documents.

The Intercreditor Agreement may be amended from time to time with the consent of certain parties
thereto. In addition, the Intercreditor Agreement may be amended from time to time at the sole
request and expense of the Issuers, and without the consent of the Notes Collateral Agent or the
Bank Collateral Agent,

(1) (A) to add other parties (or any authorized agent thereof or trustee therefor)
holding Other Pari Passu Lien Obligations that are incurred in compliance with the Senior
Credit Agreement, this Indenture and the Security Documents, (B) to establish that the Liens
on any Notes Collateral securing such Other Pari Passu Lien Obligations shall be equal under
the Intercreditor Agreement with the Liens on such Notes Collateral securing the Obligations
under this Indenture and the Notes and senior to the Liens on such Notes Collateral securing
any Obligations under the Senior Credit Agreement and other Lenders Debt, all on the terms
provided for in the Intercreditor Agreement in effect immediately prior to such amendment
and (C) to establish that the Liens on any ABL Collateral securing such Other Pari Passu
Lien Obligations shall be equal under the Intercreditor Agreement with the Liens on such ABL
Collateral securing the Obligations under this Indenture and the Notes and junior and
subordinated to the Liens on such ABL Collateral securing any Obligations under the Senior
Credit Agreement and other Lenders Debt, all on the terms provided for in the Intercreditor
Agreement as in effect immediately prior to such amendment, and

(2) (A) to add other parties (or any authorized agent thereof or trustee therefor)
holding Indebtedness that is incurred in compliance with this Indenture, the Senior Credit
Agreement and the Security Documents, (B) to establish that the Liens on any ABL Collateral
securing such Indebtedness shall be equal under the Intercreditor Agreement with the Liens
on such ABL Collateral securing the Obligations under the Senior Credit Agreement and senior
to the Liens on such ABL Collateral securing any Obligations under this Indenture and the
Notes and to any Other Pari Passu Lien Obligations, all on the terms provided for in the
Intercreditor Agreement in effect immediately prior to such amendment and (C) to establish
that the Liens on any Notes Collateral securing such Indebtedness shall be equal under the
Intercreditor Agreement with the Liens on such Notes Collateral securing the Obligations
under the Senior Credit Agreement and other Lenders Debt and junior and subordinated to the
Liens on such Notes Collateral securing any obligations under this Indenture and the Notes
and to any Other Pari Passu Lien Obligations, all on the terms provided for in the
Intercreditor Agreement in effect immediately prior to such amendment. Any such additional
party and Notes Collateral Agent shall be entitled to rely upon an Officer’s Certificate
delivered by the Issuers certifying that such Other Pari Passu Lien Obligations or
Indebtedness, as the case may be, were issued or borrowed in compliance with this Indenture
and the Security Documents.

Upon the request of the Issuers accompanied by a resolution of its board of directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.02, the Trustee and/or the Notes Collateral Agent
shall join with the Issuers and the Guarantors in the execution of any amended or supplemental
indenture or security documents or intercreditor agreement authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee and/or
the Notes Collateral Agent shall not be obligated to enter into such amended or supplemental
indenture or security documents or intercreditor agreement that affects their own rights, duties or
immunities under this Indenture or otherwise. Notwithstanding the foregoing, no Opinion of Counsel
shall be required in connection with the addition of a Guarantor under this Indenture upon
execution and delivery by such Guarantor and the Trustee of a supplemental indenture to this
Indenture, the form of which is attached as Exhibit D, and delivery of an Officer’s Certificate.

 

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Section 9.02 With Consent of Holders of Notes.

Except as provided below in this Section 9.02, the Issuers and the Trustee and the Notes
Collateral Agent may amend or supplement this Indenture, the Notes, the Security Documents, the
Intercreditor Agreement and the Guarantees with the consent of the Holders of at least a majority
in principal amount of the Notes (including Additional Notes, if any) then outstanding voting as a
single class (including, without limitation, consents obtained in connection with a tender offer or
exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07, any
existing Default or Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium or interest on the Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of this Indenture, the
Guarantees, the Security Documents, the Intercreditor Agreement or the Notes may be waived with the
consent of the Holders of a majority in principal amount of the then outstanding Notes (including
Additional Notes, if any) voting as a single class (including consents obtained in connection with
a tender offer or exchange offer for, or purchase of, the Notes). Section 2.08 and Section 2.09
shall determine which Notes are considered to be “outstanding” for the purposes of this Section
9.02.

Upon the request of the Issuers accompanied by a resolution of its board of directors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02, the Trustee
and/or the Notes Collateral Agent shall join with the Issuers in the execution of such amended or
supplemental indenture or security documents or intercreditor agreement unless such amended or
supplemental indenture directly affects their own rights, duties or immunities under this Indenture
or otherwise, in which case the Trustee and/or the Notes Collateral Agent may in its discretion,
but shall not be obligated to, enter into such amended or supplemental indenture or security
documents or intercreditor agreement.

It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to
approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such
consent approves the substance thereof.

After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Issuers shall mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Issuers to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver.

Without the consent of each affected Holder of Notes, an amendment or waiver under this
Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

(1) reduce the principal amount of such Notes whose Holders must consent to an
amendment, supplement or waiver;

 

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(2) reduce the principal of or change the fixed final maturity of any such Note or
alter or waive the provisions with respect to the redemption of such Notes (other than
provisions relating to Section 3.09, Section 4.10 and Section 4.14 to the extent that any
such amendment or waiver does not have the effect of reducing the principal of or changing
the fixed final maturity of any such Note or altering or waiving the provisions with respect
to the redemption of such Notes);

(3) reduce the rate of or change the time for payment of interest on any Note;

(4) waive a Default in the payment of principal of or premium, if any, or interest on
the Notes, except a rescission of acceleration of the Notes by the Holders of at least a
majority in aggregate principal amount of the Notes and a waiver of the payment default that
resulted from such acceleration, or in respect of a covenant or provision contained in this
Indenture or any Guarantee which cannot be amended or modified without the consent of all
Holders;

(5) make any Note payable in money other than that stated therein;

(6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders to receive payments of principal of or premium, if any, or
interest on the Notes;

(7) make any change in these amendment and waiver provisions;

(8) impair the right of any Holder to receive payment of principal of, or interest on,
such Holder’s Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes;

(9) make any change to or modify the ranking of the Notes that would adversely affect
the Holders; or

(10) except as expressly permitted by this Indenture, modify the Guarantees of any
Significant Subsidiary in any manner adverse in any material respect to the Holders of the
Notes.

In
addition, without the consent of the Holders of at least
662/3% in principal amount of Notes
then outstanding, no amendment, supplement or waiver may (1) modify any Security Document, the
Intercreditor Agreement or the provisions in this Indenture dealing with the Collateral or the
Security Documents that would have the impact of releasing all or substantially all of the
Collateral from the Liens of the Security Documents (except as permitted by the terms of this
Indenture, the Security Documents and the Intercreditor Agreement) or change or alter the priority
of the security interests in the Collateral, (2) make any change in any Security Document, the
Intercreditor Agreement or the provisions in this Indenture dealing with the Collateral or the
Security Documents or the application of trust proceeds of the Collateral that would adversely
affect the Holders in any material respect or (3) modify the Intercreditor Agreement in any manner
adverse to the Holders in any material respect other than in accordance with the terms of this
Indenture, Security Documents and the Intercreditor Agreement.

Section 9.03 Compliance with Trust Indenture Act.

Every amendment or supplement to this Indenture or the Notes shall be set forth in an amended
or supplemental indenture that complies with the Trust Indenture Act as then in effect.

 

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Section 9.04 Revocation and Effect of Consents.

Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the waiver, supplement or amendment becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

The Issuers may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver. If a record
date is fixed, then, notwithstanding the preceding paragraph, those Persons who were Holders at
such record date (or their duly designated proxies), and only such Persons, shall be entitled to
consent to such amendment, supplement, or waiver or to revoke any consent previously given, whether
or not such Persons continue to be Holders after such record date. No such consent shall be valid
or effective for more than 120 days after such record date unless the consent of the requisite
number of Holders has been obtained.

Section 9.05 Notation on or Exchange of Notes.

The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Issuers in exchange for all Notes may issue and the Trustee
shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

Failure to make the appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

Section 9.06 Trustee and Notes Collateral Agent to Sign Amendments, Etc.

The Trustee and Notes Collateral Agent shall sign any amendment, supplement or waiver
authorized pursuant to this Article 9 if the amendment or supplement does not adversely affect the
rights, duties, liabilities or immunities of the Trustee and Notes Collateral Agent. The Issuers
may not sign an amendment, supplement or waiver until the Board of AMLLC approves it. In executing
any amendment, supplement or waiver to any Notes Document, the Trustee and Notes Collateral Agent
shall be entitled to receive and (subject to Section 7.01) shall be fully protected in relying
upon, in addition to the documents required by Section 13.04, an Officer’s Certificate and an
Opinion of Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture and that such amendment, supplement or waiver is the
legal, valid and binding obligation of the Issuers and any Guarantors party thereto, enforceable
against them in accordance with its terms, subject to customary exceptions, and complies with the
provisions hereof (including Section 9.03). Notwithstanding the foregoing, no Opinion of Counsel
will be required for the Trustee and Notes Collateral Agent to execute any amendment or supplement
adding a new Guarantor under this Indenture.

 

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ARTICLE 10

GUARANTEES

Section 10.01 Guarantee.

Subject to this Article 10, from and after the consummation of the Acquisition, each of the
Guarantors hereby, jointly and severally, unconditionally guarantees to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes or the obligations of
the Issuers hereunder or thereunder, that: (a) the principal of, interest, premium on the Notes
shall be promptly paid in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful,
and all other obligations of the Issuers to the Holders or the Trustee hereunder or thereunder
shall be promptly paid in full or performed, all in accordance with the terms hereof and thereof;
and (b) in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same shall be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever
reason, the Guarantors shall be jointly and severally obligated to pay the same immediately. Each
Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

The Guarantors hereby agree that their obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Issuers, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Issuers, any right to require a proceeding first against the Issuers, protest,
notice and all demands whatsoever and covenants that this Guarantee shall not be discharged except
by complete performance of the obligations contained in the Notes and this Indenture.

Each Guarantor also agrees to pay any and all costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under this Section
10.01.

If any Holder or the Trustee is required by any court or otherwise to return to the Issuers,
the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation
to either the Issuers or the Guarantors, any amount paid either to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to
the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 for the purposes of this
Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration
in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of
acceleration of such obligations as provided in Article 6, such obligations (whether or not due and
payable) shall forthwith become due and payable by the Guarantors for the purpose of this
Guarantee. The Guarantors shall have the right to seek contribution from any non-paying Guarantor
so long as the exercise of such right does not impair the rights of the Holders under the
Guarantees.

 

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Each Guarantee shall remain in full force and effect and continue to be effective should any
petition be filed by or against the Issuers for liquidation or reorganization, should the Issuers
become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee
be appointed for all or any significant part of the Issuers’ assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any
time payment and performance of the Notes are, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by any obligee on the Notes or Guarantees,
whether as a “voidable preference,” “fraudulent transfer” or otherwise, all as though such payment
or performance had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Notes shall, to the fullest extent permitted by law,
be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

In case any provision of any Guarantee shall be invalid, illegal or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

The Guarantee issued by any Guarantor shall be a general senior obligation of such Guarantor
and shall be pari passu in right of payment with all existing and future Senior Indebtedness of
such Guarantor, if any.

Each payment to be made by a Guarantor in respect of its Guarantee shall be made without
set-off, counterclaim, reduction or diminution of any kind or nature.

Section 10.02 Limitation on Guarantor Liability.

Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any
Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors
hereby irrevocably agree that the obligations of each Guarantor shall be limited to the maximum
amount as will, after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Guarantor that are relevant under such laws and after giving effect to any
collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 10, result in
the obligations of such Guarantor under its Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under applicable law. Each Guarantor that makes a payment under its Guarantee
shall be entitled upon payment in full of all guaranteed Obligations under this Indenture to a
contribution from each other Guarantor in an amount equal to such other Guarantor’s pro rata
portion of such payment based on the respective net assets of all the Guarantors at the time of
such payment determined in accordance with GAAP.

Section 10.03 Execution and Delivery.

To evidence its Guarantee set forth in Section 10.01, each Guarantor hereby agrees that this
Indenture shall be executed on behalf of such Guarantor by its President, one of its Vice
Presidents or one of its Assistant Vice Presidents.

Each Guarantor hereby agrees that its Guarantee set forth in Section 10.01 shall remain in
full force and effect notwithstanding the absence of the endorsement of any notation of such
Guarantee on the Notes.

 

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If an Officer whose signature is on this Indenture no longer holds that office at the time the
Trustee authenticates the Note, the Guarantee shall be valid nevertheless.

The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantors.

If required by Section 4.15, the Issuers shall cause any newly created or acquired Restricted
Subsidiary to comply with the provisions of Section 4.15 and this Article 10, to the extent
applicable.

Section 10.04 Subrogation.

Each Guarantor shall be subrogated to all rights of Holders of Notes against the Issuers in
respect of any amounts paid by any Guarantor pursuant to the provisions of Section 10.01; provided
that, if an Event of Default has occurred and is continuing, no Guarantor shall be entitled to
enforce or receive any payments arising out of, or based upon, such right of subrogation until all
amounts then due and payable by the Issuers under this Indenture or the Notes shall have been paid
in full.

Section 10.05 Benefits Acknowledged.

Each Guarantor acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Indenture and that the guarantee and waivers made by it
pursuant to its Guarantee are knowingly made in contemplation of such benefits.

Section 10.06 Release of Guarantees.

A Guarantee by a Guarantor shall be automatically and unconditionally released and discharged,
and no further action by such Guarantor, the Issuers or the Trustee is required for the release of
such Guarantor’s Guarantee, upon:

(1) (A) any sale, exchange or transfer (by merger or otherwise) of (i) the Capital
Stock of such Guarantor (including any sale, exchange or transfer), after which the
applicable Guarantor is no longer a Restricted Subsidiary, or (ii) all or substantially all
of the assets of such Guarantor, in each case, if such sale, exchange or transfer is made in
compliance with the applicable provisions of this Indenture; provided, however, that such
Guarantor is also released from its guarantees and all pledges and security, if any, granted
in connection with the Senior Credit Agreement and any other Indebtedness for borrowed money
of an Issuer or another Guarantor;

(B) the release or discharge of the guarantee or direct obligation by such Guarantor of
the Senior Credit Agreement and other Lenders Debt or the guarantee which resulted in the
creation of such Guarantee, except a discharge or release by or as a result of payment under
such guarantee (it being understood that a release subsequent to a contingent reinstatement
is still a release);

(C) the designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary in compliance with the applicable provisions of this Indenture; or

(D) the Issuers exercising their Legal Defeasance option or Covenant Defeasance option
in accordance with Article 8 or the Issuers’ obligations under this Indenture being
discharged in accordance with the terms of this Indenture; and

 

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(2) such Guarantor delivering to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in this Indenture relating
to such transaction have been complied with.

ARTICLE 11

COLLATERAL

Section 11.01 Collateral and Security Documents.

The due and punctual payment of the principal of and interest on the Notes and Guarantees when
and as the same shall be due and payable, whether on an interest payment date, at maturity, by
acceleration, repurchase, redemption or otherwise, and interest on the overdue principal of and
interest on the Notes and Guarantees and performance of all other Obligations of the Issuers and
the Guarantors to the Secured Parties under this Indenture, the Notes, the Guarantees, the
Intercreditor Agreement and the Security Documents, according to the terms hereunder or thereunder,
shall be secured as provided in the Security Documents, which define the terms of the Liens that
secure the Obligations, subject to the terms of the Intercreditor Agreement. The Trustee, the
Issuers and the Guarantors hereby acknowledge and agree that the Notes Collateral Agent holds the
Collateral in trust for the benefit of the Secured Parties pursuant to the terms of the Security
Documents and the Intercreditor Agreement. Each Holder, by accepting a Note, consents and agrees
to the terms of the Security Documents (including the provisions providing for the possession, use,
release and foreclosure of Collateral) and the Intercreditor Agreement as the same may be in effect
or may be amended from time to time in accordance with their terms and this Indenture and the
Intercreditor Agreement, and authorizes and directs the Notes Collateral Agent to enter into the
Security Documents and the Intercreditor Agreement and to perform its obligations and exercise its
rights thereunder in accordance therewith; provided, however, that if any of the provisions of the
Security Documents limit, qualify or conflict with the duties imposed by the provisions of the TIA,
the TIA shall control. The Issuers shall deliver to the Notes Collateral Agent copies of all
documents required to be filed pursuant to the Security Documents, and will do or cause to be done
all such acts and things as may be reasonably required by the next sentence of this Section 11.01,
to assure and confirm to the Notes Collateral Agent the first-priority security interest in the
Notes Collateral and the second-priority lien in the ABL Collateral contemplated hereby, by the
Security Documents or any part thereof, as from time to time constituted, so as to render the same
available for the security and benefit of this Indenture and of the Notes secured hereby, according
to the intent and purposes herein expressed. The Issuers shall, and shall cause the Subsidiaries
of AMLLC to, take any and all actions and make all filings (including the filing of UCC financing
statements, continuation statements and amendments thereto) reasonably required to cause the
Security Documents to create and maintain, as security for the Obligations of the Issuers and the
Guarantors to the Secured Parties under this Indenture, the Notes, the Guarantees, the
Intercreditor Agreement and the Security Documents, a valid and enforceable perfected Lien and
security interest in and on all of the Collateral (subject to the terms of the Intercreditor
Agreement and the Security Documents), in favor of the Notes Collateral Agent for the benefit of
the Secured Parties subject to no Liens other than Liens permitted under this Indenture.

Section 11.02 Non-Impairment of Liens.

Any release of Collateral permitted by Section 11.03 will be deemed not to impair the Liens
under this Indenture and the Security Documents in contravention thereof.

 

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Section 11.03 Release of Collateral.

(a) Subject to Section 11.03(b), Collateral may be released from the Lien and security
interest created by the Security Documents at any time or from time to time in accordance with the
provisions of the Security Documents, the Intercreditor Agreement and this Indenture.
Notwithstanding anything to the contrary in any Notes Document, the Liens on Collateral securing
the Notes shall automatically (without further action) be released with respect to the relevant
Collateral upon the occurrence of any of the following:

(A) in the case the Issuers or any Guarantor sell, exchange or otherwise dispose of any
of the Collateral, including Capital Stock (other than to an Issuer or a Guarantor, as
applicable) to the extent not prohibited under this Indenture;

(B) in the case of a Guarantor that is released from its Guarantee with respect to the
Notes, the release of the property and assets of such Guarantor;

(C) to the extent any lease is Collateral, upon termination of such lease;

(D) with respect to Collateral that is Capital Stock, upon the dissolution or
liquidation of the issuer of that Capital Stock that is not prohibited by this Indenture;

(E) pursuant to an amendment, supplement or waiver in accordance with Article 9; or

(F) if the Notes have been discharged or defeased pursuant to Article 8 or Article 12.

(b) The second-priority Lien on the ABL Collateral securing the Notes and the Guarantees will
terminate and be released automatically if the first-priority Liens on the ABL Collateral are
released by the Bank Collateral Agent (unless, at the time of such release of such first-priority
Liens, an Event of Default shall have occurred and be continuing under this Indenture), other than
in connection with any such release by the Bank Collateral Agent in connection with a Discharge of
ABL Obligations. Notwithstanding the existence of an Event of Default, the second-priority Lien on
the ABL Collateral securing the Notes and the Guarantees shall also terminate and be released
automatically to the extent the first-priority Liens on the ABL Collateral are released by the Bank
Collateral Agent in connection with a sale, transfer or disposition of ABL Collateral that is
either not prohibited under this Indenture or occurs in connection with the foreclosure of, or
other exercise of remedies with respect to, ABL Collateral by the Bank Collateral Agent (except
with respect to any proceeds of such sale, transfer or disposition that remain after satisfaction
in full of the Lenders Debt), other than in connection with a Discharge of ABL Obligations. The
Liens on the Collateral securing the Notes and the Guarantees that otherwise would have been
released pursuant to the first sentence of this paragraph but for the occurrence and continuation
of an Event of Default will be released when such Event of Default and all other Events of Default
under this Indenture cease to exist.

(c) With respect to any release of Collateral, upon receipt of an Officer’s Certificate and an
Opinion of Counsel each stating that all conditions precedent under this Indenture and the Security
Documents and the Intercreditor Agreement, if any, to such release have been met and that it is
proper for the Trustee or Notes Collateral Agent to execute and deliver the documents requested by
the Issuers in connection with such release, and any necessary or proper instruments of
termination, satisfaction or release prepared by the Issuers, the Trustee shall, or shall cause the
Notes Collateral Agent to, execute, deliver or acknowledge (at the Issuers’ expense) such
instruments or releases to evidence the release of any Collateral permitted to be released pursuant
to this Indenture or the Security Documents or the Intercreditor Agreement. Neither the Trustee
nor the Notes Collateral Agent shall be liable for any such release
undertaken in reliance upon any such Officer’s Certificate or Opinion of Counsel, and
notwithstanding any term hereof or in any Security Document or in the Intercreditor Agreement to
the contrary, the Trustee and the Notes Collateral Agent shall not be under any obligation to
release any such Lien and security interest, or execute and deliver any such instrument of release,
satisfaction or termination, unless and until it receives such Officer’s Certificate and Opinion of
Counsel.

 

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Section 11.04 Suits To Protect the Collateral.

Subject to the provisions of Article 7 and the Security Documents and the Intercreditor
Agreement, the Trustee, without the consent of the Holders, on behalf of the Holders, may or may
direct the Notes Collateral Agent to take all actions it determines in order to:

(a) enforce any of the terms of the Security Documents; and

(b) collect and receive any and all amounts payable in respect of the Obligations
hereunder.

Subject to the provisions of the Security Documents and the Intercreditor Agreement, the
Trustee and the Notes Collateral Agent shall have power to institute and to maintain such suits and
proceedings as the Trustee may determine to prevent any impairment of the Collateral by any acts
which may be unlawful or in violation of any of the Security Documents or this Indenture, and such
suits and proceedings as the Trustee may determine to preserve or protect its interests and the
interests of the Holders in the Collateral. Nothing in this Section 11.04 shall be considered to
impose any such duty or obligation to act on the part of the Trustee or the Notes Collateral Agent.

			
	Section 11.05	 	Authorization of Receipt of Funds by the Trustee Under the Security Documents.

Subject to the provisions of the Intercreditor Agreement, the Trustee is authorized to receive
any funds for the benefit of the Holders distributed under the Security Documents, and to make
further distributions of such funds to the Holders according to the provisions of this Indenture.

Section 11.06 Purchaser Protected.

In no event shall any purchaser in good faith of any property purported to be released
hereunder be bound to ascertain the authority of the Notes Collateral Agent or the Trustee to
execute the release or to inquire as to the satisfaction of any conditions required by the
provisions hereof for the exercise of such authority or to see to the application of any
consideration given by such purchaser or other transferee; nor shall any purchaser or other
transferee of any property or rights permitted by this Article 11 to be sold be under any
obligation to ascertain or inquire into the authority of the Issuers or the applicable Guarantor to
make any such sale or other transfer.

Section 11.07 Powers Exercisable by Receiver or Trustee.

In case the Collateral shall be in the possession of a receiver or trustee, lawfully
appointed, the powers conferred in this Article 11 upon the Issuers or a Guarantor with respect to
the release, sale or other disposition of such property may be exercised by such receiver or
trustee, and an instrument signed by such receiver or trustee shall be deemed the equivalent of any
similar instrument of the Issuers or a Guarantor or of any Officer or Officers thereof required by
the provisions of this Article 11; and if the Trustee shall be in the possession of the Collateral
under any provision of this Indenture, then such powers may be exercised by the Trustee.

 

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Section 11.08 Release Upon Termination of the Issuers’ Obligations.

In the event that the Issuers deliver to the Trustee an Officer’s Certificate certifying that
(i) payment in full of the principal of, together with accrued and unpaid interest on, the Notes
and all other Obligations under this Indenture, the Notes, the Guarantees and the Security
Documents that are due and payable at or prior to the time such principal, together with accrued
and unpaid interest, are paid or (ii) the Issuers shall have exercised their Legal Defeasance
option or their Covenant Defeasance option, in each case in compliance with the provisions of
Article 8, and an Opinion of Counsel stating that all conditions precedent to the execution and
delivery of such notice by the Trustee have been satisfied, the Trustee shall deliver to the
Issuers and the Notes Collateral Agent a notice stating that the Trustee, on behalf of the Holders,
disclaims and gives up any and all rights it has in or to the Collateral (other than with respect
to funds held by the Trustee pursuant to Article 8), and any rights it has under the Security
Documents, and upon receipt by the Notes Collateral Agent of such notice, the Notes Collateral
Agent shall be deemed not to hold a Lien in the Collateral on behalf of the Trustee and shall do or
cause to be done all acts reasonably necessary to release such Lien as soon as is reasonably
practicable.

Section 11.09 Notes Collateral Agent.

(a) The Trustee and each of the Holders by acceptance of the Notes hereby designates and
appoints the Notes Collateral Agent as its agent under this Indenture, the Security Documents and
the Intercreditor Agreement and the Trustee and each of the Holders by acceptance of the Notes
hereby irrevocably authorizes the Notes Collateral Agent to take such action on its behalf under
the provisions of this Indenture, the Security Documents and the Intercreditor Agreement and to
exercise such powers and perform such duties as are expressly delegated to the Notes Collateral
Agent by the terms of this Indenture, the Security Documents and the Intercreditor Agreement, and
consents and agrees to the terms of the Intercreditor Agreement and each Security Document, as the
same may be in effect or may be amended, restated, supplemented or otherwise modified from time to
time in accordance with their respective terms. The Notes Collateral Agent agrees to act as such
on the express conditions contained in this Section 11.09. The provisions of this Section 11.09
are solely for the benefit of the Notes Collateral Agent and none of the Trustee, any of the
Holders nor any of the Grantors shall have any rights as a third party beneficiary of any of the
provisions contained herein other than as expressly provided in Section 11.03. Each Holder agrees
that any action taken by the Notes Collateral Agent in accordance with the provision of this
Indenture, the Intercreditor Agreement and the Security Documents, and the exercise by the Notes
Collateral Agent of any rights or remedies set forth herein and therein shall be authorized and
binding upon all Holders. Notwithstanding any provision to the contrary contained elsewhere in
this Indenture, the Security Documents and the Intercreditor Agreement, the duties of the Notes
Collateral Agent shall be ministerial and administrative in nature, and the Notes Collateral Agent
shall not have any duties or responsibilities, except those expressly set forth herein and in the
other Notes Documents to which the Notes Collateral Agent is a party, nor shall the Notes
Collateral Agent have or be deemed to have any trust or other fiduciary relationship with the
Trustee, any Holder or any Grantor, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Indenture, the Security Documents and the
Intercreditor Agreement or otherwise exist against the Notes Collateral Agent. Without limiting
the generality of the foregoing sentence, the use of the term “agent” in this Indenture with
reference to the Notes Collateral Agent is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable law. Instead, such term
is used merely as a matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties.

(b) The Notes Collateral Agent may perform any of its duties under this Indenture, the
Security Documents or the Intercreditor Agreement by or through receivers, agents, employees, attorneys-in-fact or through its Related Persons and shall be entitled to advice of counsel
concerning all matters pertaining to such duties, and shall be entitled to act upon, and shall be
fully protected in taking action in reliance upon any advice or opinion given by legal counsel.
The Notes Collateral Agent shall not be responsible for the negligence or willful misconduct of any
receiver, agent, employee, attorney-in-fact or Related Person that it selects as long as such
selection was made in good faith.

 

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(c) None of the Notes Collateral Agent or any of its Related Persons shall (i) be liable for
any action taken or omitted to be taken by any of them under or in connection with this Indenture
or the transactions contemplated hereby (except to the extent that the foregoing are found by a
final, non-appealable judgment of a court of competent jurisdiction to have resulted from its own
gross negligence or willful misconduct) or under or in connection with any Security Document or
Intercreditor Agreement or the transactions contemplated thereby (except to the extent that the
foregoing are found by a final, non-appealable judgment of a court of competent jurisdiction to
have resulted from its own gross negligence or willful misconduct), or (ii) be responsible in any
manner to any of the Trustee or any Holder for any recital, statement, representation, warranty,
covenant or agreement made by an Issuer or any Grantor or Affiliate of any Grantor, or any Officer
or Related Persons thereof, contained in this Indenture, or any other Notes Documents, or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Notes Collateral Agent under or in connection with, this Indenture, the Security Documents or the
Intercreditor Agreement, or the validity, effectiveness, genuineness, enforceability or sufficiency
of this Indenture, the Security Documents or the Intercreditor Agreement, or for any failure of any
Grantor or any other party to this Indenture, the Security Documents or the Intercreditor Agreement
to perform its obligations hereunder or thereunder. None of the Notes Collateral Agent or any of
its respective Related Persons shall be under any obligation to the Trustee or any Holder to
ascertain or to inquire as to the observance or performance of any of the agreements contained in,
or conditions of, this Indenture, the Security Documents or the Intercreditor Agreement or to
inspect the properties, books, or records of any Grantor or any Grantor’s Affiliates.

(d) The Notes Collateral Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram,
facsimile, certification, telephone message, statement, or other communication, document or
conversation (including those by telephone or e-mail) believed by it to be genuine and correct and
to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements
of legal counsel (including, without limitation, counsel to the Issuers or any Grantor),
independent accountants and other experts and advisors selected by the Notes Collateral Agent. The
Notes Collateral Agent shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, or other paper or document. The Notes Collateral Agent
shall be fully justified in failing or refusing to take any action under this Indenture, the
Security Documents or the Intercreditor Agreement unless it shall first receive such advice or
concurrence of the Trustee or the Holders of a majority in aggregate principal amount of the Notes
as it determines and, if it so requests, it shall first be indemnified to its satisfaction by the
Holders against any and all liability and expense which may be incurred by it by reason of taking
or continuing to take any such action. The Notes Collateral Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Indenture, the Security Documents or
the Intercreditor Agreement in accordance with a request, direction, instruction or consent of the
Trustee or the Holders of a majority in aggregate principal amount of the then outstanding Notes
and such request and any action taken or failure to act pursuant thereto shall be binding upon all
of the Holders.

(e) The Notes Collateral Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default, unless a Responsible Officer of the Notes Collateral
Agent shall have received written notice from the Trustee or any Issuer referring to this
Indenture, describing such Default or Event of Default and stating that such notice is a “notice of
default.” The Notes Collateral Agent shall take such action with respect to such Default or Event
of Default as may be requested by the Trustee in accordance with Article 6 or the Holders of a
majority in aggregate principal amount of the Notes (subject to this Section 11.09).

 

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(f) Wells Fargo Bank, National Association and its Affiliates may make loans to, issue letters
of credit for the account of, accept deposits from, acquire equity interests in and generally
engage in any kind of banking, trust, financial advisory, underwriting, or other business with any
Grantor and its Affiliates as though it was not the Notes Collateral Agent hereunder and without
notice to or consent of the Trustee. The Trustee and the Holders acknowledge that, pursuant to
such activities, Wells Fargo Bank, National Association or its Affiliates may receive information
regarding any Grantor or its Affiliates (including information that may be subject to
confidentiality obligations in favor of any such Grantor or such Affiliate) and acknowledge that
the Notes Collateral Agent shall not be under any obligation to provide such information to the
Trustee or the Holders. Nothing herein shall impose or imply any obligation on the part of the
Wells Fargo Bank, National Association to advance funds.

(g) The Notes Collateral Agent may resign at any time by notice to the Trustee and AMLLC, such
resignation to be effective upon the acceptance of a successor agent to its appointment as Notes
Collateral Agent. If the Notes Collateral Agent resigns under this Indenture, AMLLC shall appoint
a successor notes collateral agent. If no successor notes collateral agent is appointed prior to
the intended effective date of the resignation of the Notes Collateral Agent (as stated in the
notice of resignation), the Notes Collateral Agent may appoint, after consulting with the Trustee,
subject to the consent of the Issuers (which shall not be unreasonably withheld and which shall not
be required during a continuing Event of Default), a successor notes collateral agent. If no
successor notes collateral agent is appointed and consented to by the Issuers pursuant to the
preceding sentence within thirty (30) days after the intended effective date of resignation (as
stated in the notice of resignation) the Notes Collateral Agent shall be entitled to petition a
court of competent jurisdiction to appoint a successor. Upon the acceptance of its appointment as
successor notes collateral agent hereunder, such successor notes collateral agent shall succeed to
all the rights, powers and duties of the retiring Notes Collateral Agent, and the term “Notes
Collateral Agent” shall mean such successor notes collateral agent, and the retiring Notes
Collateral Agent’s appointment, powers and duties as the Notes Collateral Agent shall be
terminated. After the retiring Notes Collateral Agent’s resignation hereunder, the provisions of
this Section 11.09 (and Section 7.07) shall continue to inure to its benefit and the retiring Notes
Collateral Agent shall not by reason of such resignation be deemed to be released from liability as
to any actions taken or omitted to be taken by it while it was the Notes Collateral Agent under
this Indenture.

(h) The Trustee shall initially act as Notes Collateral Agent and shall be authorized to
appoint co-Notes Collateral Agents as necessary in its sole discretion. Neither the Notes
Collateral Agent nor any of its respective officers, directors, employees or agents or other
Related Persons shall be liable to any Grantor or any Secured Party for failure to demand, collect
or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral upon the request of any other Person or to take any
other action whatsoever with regard to the Collateral or any part thereof. The Notes Collateral
Agent shall be accountable only for amounts that it actually receives as a result of the exercise
of such powers, and neither the Notes Collateral Agent nor any of its officers, directors,
employees, attorneys, representatives or agents shall be responsible for any act or failure to act
hereunder, except to the extent such act is found by a final, non-appealable judgment of a court of
competent jurisdiction to have resulted from its own gross negligence or willful misconduct.

(i) The Notes Collateral Agent is authorized and directed to (i) enter into the Security
Documents to which it is party, whether executed on or after the Issue Date, (ii) enter into the
Intercreditor Agreement, (iii) bind the Holders on the terms as set forth in the Security Documents
and the Intercreditor Agreement and (iv) perform and observe its obligations under the Security
Documents and the Intercreditor Agreement.

 

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(j) The Trustee agrees that it shall not (and shall not be obliged to), and shall not instruct
the Notes Collateral Agent to, unless specifically requested to do so by the Holders of a majority
in aggregate principal amount of the Notes, take or cause to be taken any action to enforce its
rights under this Indenture or the other Notes Documents or against any Grantor, including the
commencement of any legal or equitable proceedings, to foreclose any Lien on, or otherwise enforce
any security interest in, any of the Collateral.

If at any time or times the Trustee shall receive (i) by payment, foreclosure, set-off or
otherwise, any proceeds of Collateral or any payments with respect to the Obligations arising
under, or relating to, this Indenture, except for any such proceeds or payments received by the
Trustee from the Notes Collateral Agent pursuant to the terms of this Indenture, or (ii) payments
from the Notes Collateral Agent in excess of the amount required to be paid to the Trustee pursuant
to Article 6, the Trustee shall promptly turn the same over to the Notes Collateral Agent, in kind,
and with such endorsements as may be required to negotiate the same to the Notes Collateral Agent
such proceeds to be applied by the Notes Collateral Agent pursuant to the terms of this Indenture,
the Security Documents and the Intercreditor Agreement.

(k) The Notes Collateral Agent is each Holder’s agent for the purpose of perfecting the
Holders’ security interest in assets which, in accordance with Article 9 of the Uniform Commercial
Code can be perfected only by possession. Should the Trustee obtain possession of any such
Collateral, upon request from AMLLC, the Trustee shall notify the Notes Collateral Agent thereof
and promptly shall deliver such Collateral to the Notes Collateral Agent or otherwise deal with
such Collateral in accordance with the Notes Collateral Agent’s instructions.

(l) The Notes Collateral Agent shall have no obligation whatsoever to the Trustee, any of the
Holders, or any of the Secured Parties to assure that the Collateral exists or is owned by any
Grantor or is cared for, protected, or insured or has been encumbered, or that the Notes Collateral
Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected,
maintained or enforced or are entitled to any particular priority, or to determine whether all or
the Grantor’s property constituting collateral intended to be subject to the Lien and security
interest of the Security Documents has been properly and completely listed or delivered, as the
case may be, or the genuineness, validity, marketability or sufficiency thereof or title thereto,
or to exercise at all or in any particular manner or under any duty of care, disclosure, or
fidelity, or to continue exercising, any of the rights, authorities, and powers granted or
available to the Notes Collateral Agent pursuant to this Indenture, any Security Document or the
Intercreditor Agreement other than pursuant to the instructions of the Trustee or the Holders of a
majority in aggregate principal amount of the Notes or as otherwise provided in the Security
Documents, it being understood and agreed that in respect of the Collateral, or any act, omission,
or event related thereto, the Notes Collateral Agent shall have no other duty or liability
whatsoever to the Trustee, any Holder, or any Secured Party as to any of the foregoing.

(m) If any Issuer (i) incurs any obligations in respect of Lenders Debt at any time when no
intercreditor agreement is in effect or at any time when Indebtedness constituting Lenders Debt
entitled to the benefit of an existing Intercreditor Agreement is concurrently retired, and (ii)
delivers to the Notes Collateral Agent an Officer’s Certificate so stating and requesting the Notes
Collateral Agent to enter into an intercreditor agreement (on substantially the same terms as the
Intercreditor Agreement) in favor of a designated agent or representative for the holders of the
Lenders Debt so incurred, the Notes
Collateral Agent shall (and is hereby authorized and directed to) enter into such
intercreditor agreement (at the sole expense and cost of the Issuers, including legal fees and
expenses of the Notes Collateral Agent), bind the Holders on the terms set forth therein and
perform and observe its obligations thereunder.

 

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(n) No provision of this Indenture, the Intercreditor Agreement or any Security Document shall
require the Notes Collateral Agent (or the Trustee) to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder or thereunder or to
take or omit to take any action hereunder or thereunder or take any action at the request or
direction of Holders (or the Trustee in the case of the Notes Collateral Agent) unless the Notes
Collateral Agent shall have received indemnity satisfactory to the Notes Collateral Agent against
potential costs and liabilities incurred by the Notes Collateral Agent relating thereto.
Notwithstanding anything to the contrary contained in this Indenture, the Intercreditor Agreement
or the Security Documents, in the event the Notes Collateral Agent is entitled or required to
commence an action to foreclose or otherwise exercise its remedies to acquire control or possession
of the Collateral, the Notes Collateral Agent shall not be required to commence any such action or
exercise any remedy or to inspect or conduct any studies of any property under the mortgages or
take any such other action if the Notes Collateral Agent has determined that the Notes Collateral
Agent may incur personal liability as a result of the presence at, or release on or from, the
Collateral or such property, of any hazardous substances unless the Notes Collateral Agent has
received security or indemnity from the Holders in an amount and in a form all satisfactory to the
Notes Collateral Agent in its sole discretion, protecting the Notes Collateral Agent from all such
liability. The Notes Collateral Agent shall at any time be entitled to cease taking any action
described above if it no longer reasonably deems any indemnity, security or undertaking from the
Issuers or the Holders to be sufficient.

(o) The Notes Collateral Agent (i) shall not be liable for any action taken or omitted to be
taken by it in connection with this Indenture, the Intercreditor Agreement and the Security
Documents or instrument referred to herein or therein, except to the extent that any of the
foregoing are found by a final, non-appealable judgment of a court of competent jurisdiction to
have resulted from its own gross negligence or willful misconduct, (ii) shall not be liable for
interest on any money received by it except as the Notes Collateral Agent may agree in writing with
the Issuers (and money held in trust by the Notes Collateral Agent need not be segregated from
other funds except to the extent required by law) and (iii) may consult with counsel of its
selection and the advice or opinion of such counsel as to matters of law shall be full and complete
authorization and protection from liability in respect of any action taken, omitted or suffered by
it in good faith and in accordance with the advice or opinion of such counsel. The grant of
permissive rights or powers to the Notes Collateral Agent shall not be construed to impose duties
to act.

(p) In no event shall the Notes Collateral Agent be responsible or liable for any special,
indirect, punitive, incidental or consequential loss or damage or any kind whatsoever (including,
but not limited to, lost profits) irrespective of whether the Notes Collateral Agent has been
advised of the likelihood of such loss or damage and regardless of the form of action.

 

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(q) The Notes Collateral Agent does not assume any responsibility for any failure or delay in
performance or any breach by the Issuers or any other Grantor under this Indenture, the
Intercreditor Agreement and the Security Documents. The Notes Collateral Agent shall not be
responsible to the Holders or any other Person for any recitals, statements, information,
representations or warranties contained in any Notes Documents or in any certificate, report,
statement, or other document referred to or provided for in, or received by the Notes Collateral
Agent under or in connection with, this Indenture, the Intercreditor Agreement or any Security
Document; the execution, validity, genuineness, effectiveness or enforceability of the
Intercreditor Agreement and any Security Documents of any other party thereto;
the genuineness, enforceability, collectability, value, sufficiency, location or existence of
any Collateral, or the validity, effectiveness, enforceability, sufficiency, extent, perfection or
priority of any Lien therein; the validity, enforceability or collectability of any Obligations;
the assets, liabilities, financial condition, results of operations, business, creditworthiness or
legal status of any obligor; or for any failure of any obligor to perform its Obligations under
this Indenture, the Intercreditor Agreement and the Security Documents. The Notes Collateral Agent
shall have no obligation to any Holder or any other Person to ascertain or inquire into the
existence of any Default or Event of Default, the observance or performance by any obligor of any
terms of this Indenture, the Intercreditor Agreement and the Security Documents, or the
satisfaction of any conditions precedent contained in this Indenture, the Intercreditor Agreement
and any Security Documents. The Notes Collateral Agent shall not be required to initiate or
conduct any litigation or collection or other proceeding under this Indenture, the Intercreditor
Agreement and the Security Documents unless expressly set forth hereunder or thereunder. The Notes
Collateral Agent shall have the right at any time to seek instructions from the Holders with
respect to the administration of the Notes Documents.

(r) The parties hereto and the Holders hereby agree and acknowledge that the Notes Collateral
Agent shall not assume, be responsible for or otherwise be obligated for any liabilities, claims,
causes of action, suits, losses, allegations, requests, demands, penalties, fines, settlements,
damages (including foreseeable and unforeseeable), judgments, expenses and costs (including but not
limited to, any remediation, corrective action, response, removal or remedial action, or
investigation, operations and maintenance or monitoring costs, for personal injury or property
damages, real or personal) of any kind whatsoever, pursuant to any environmental law as a result of
this Indenture, the Intercreditor Agreement, the Security Documents or any actions taken pursuant
hereto or thereto. Further, the parties hereto and the Holders hereby agree and acknowledge that
in the exercise of its rights under this Indenture, the Intercreditor Agreement and the Security
Documents, the Notes Collateral Agent may hold or obtain indicia of ownership primarily to protect
the security interest of the Notes Collateral Agent in the Collateral, including without limitation
the properties under the real property that constitute Collateral, and that any such actions taken
by the Notes Collateral Agent shall not be construed as or otherwise constitute any participation
in the management of such Collateral, including without limitation the real properties that
constitute Collateral, as those terms are defined in Section 101(20)(E) of the Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601 et seq., as amended.

(s) Upon the receipt by the Notes Collateral Agent of a written request of AMLLC signed by two
Officers (a “Security Document Order”), the Notes Collateral Agent is hereby authorized to
execute and enter into, and shall execute and enter into, without the further consent of any Holder
or the Trustee, any Security Document to be executed after the Issue Date. Such Security Document
Order shall (i) state that it is being delivered to the Notes Collateral Agent pursuant to, and is
a Security Document Order referred to in, this Section 11.09(s), and (ii) instruct the Notes
Collateral Agent to execute and enter into such Security Document. Any such execution of a
Security Document shall be at the direction and expense of the Issuers, upon delivery to the Notes
Collateral Agent of an Officer’s Certificate and Opinion of Counsel stating that all conditions
precedent to the execution and delivery of the Security Document have been satisfied. The Holders,
by their acceptance of the Notes, hereby authorize and direct the Notes Collateral Agent to execute
such Security Documents.

(t) Subject to the provisions of the applicable Security Documents and the Intercreditor
Agreement, each Holder, by acceptance of the Notes, agrees that the Notes Collateral Agent shall
execute and deliver the Intercreditor Agreement and the Security Documents to which it is a party
and all agreements, documents and instruments incidental thereto, and act in accordance with the
terms thereof. For the avoidance of doubt, the Notes Collateral Agent shall have no discretion
under this Indenture, the Intercreditor Agreement or the Security Documents and shall not be
required to make or give any determination, consent, approval, request or direction without the written direction of the Holders
of a majority in aggregate principal amount of the then outstanding Notes or the Trustee, as
applicable.

 

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(u) After the occurrence and during the continuance of an Event of Default, the Trustee may
direct the Notes Collateral Agent in connection with any action required or permitted by this
Indenture, the Security Documents or the Intercreditor Agreement.

(v) The Notes Collateral Agent is authorized to receive any funds for the benefit of itself,
the Trustee and the Holders distributed under the Security Documents or the Intercreditor Agreement
and to the extent not prohibited under the Intercreditor Agreement, for turnover to the Trustee to
make further distributions of such funds to itself, the Trustee and the Holders in accordance with
the provisions of Section 6.13 and the other provisions of this Indenture.

(w) In each case that Notes Collateral Agent may or is required hereunder or under any other
Notes Document to take any action (an “Action”), including without limitation to make any
determination, to give consents, to exercise rights, powers or remedies, to release or sell
Collateral or otherwise to act hereunder or under any other Notes Document, the Notes Collateral
Agent may seek direction from the Holders of a majority in aggregate principal amount of the then
outstanding Notes. The Notes Collateral Agent shall not be liable with respect to any Action taken
or omitted to be taken by it in accordance with the direction from the Holders of a majority in
aggregate principal amount of the then outstanding Notes. If the Notes Collateral Agent shall
request direction from the Holders of a majority in aggregate principal amount of the then
outstanding Notes with respect to any Action, the Notes Collateral Agent shall be entitled to
refrain from such Action unless and until the Notes Collateral Agent shall have received direction
from the Holders of a majority in aggregate principal amount of the then outstanding Notes, and the
Notes Collateral Agent shall not incur liability to any Person by reason of so refraining.

(x) Notwithstanding anything to the contrary in this Indenture or any other Notes Document, in
no event shall the Notes Collateral Agent be responsible for, or have any duty or obligation with
respect to, the recording, filing, registering, perfection, protection or maintenance of the
security interests or Liens intended to be created by this Indenture or the other Notes Documents
(including without limitation the filing or continuation of any UCC financing or continuation
statements or similar documents or instruments), nor shall the Notes Collateral Agent be
responsible for, and the Notes Collateral Agent makes no representation regarding, the validity,
effectiveness or priority of any of the Security Documents or the security interests or Liens
intended to be created thereby. The Notes Collateral Agent makes no representation regarding the
validity, effectiveness or enforceability of the Intercreditor Agreement or any subsequent
intercreditor agreement.

(y) Before the Notes Collateral Agent acts or refrains from acting in each case at the request
or direction of the Issuers or the Guarantors, or in connection with any Security Document, it may
require an Officer’s Certificate and an Opinion of Counsel, which shall conform to the provisions
of Section 13.05. The Notes Collateral Agent shall not be liable for any action it takes or omits
to take in good faith in reliance on such certificate or opinion.

(z) Notwithstanding anything to the contrary contained herein, the Notes Collateral Agent
shall act pursuant to the instructions of the Secured Parties solely with respect to the Security
Documents and the Collateral.

 

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(aa) The Issuers and the Guarantors, jointly and severally, shall indemnify the Notes
Collateral Agent for, and hold the Notes Collateral Agent harmless against, any and all loss,
damage, claim, liability or expense (including attorneys’ fees) incurred by it in connection with
the acceptance or the performance of its duties hereunder (including the costs and expenses of
enforcing any Security Document against the Issuers or any of the Guarantors (including this Article 11) or defending
itself against any claim whether asserted by any Holder, an Issuer or any Guarantor, any holder of
Other Pari Passu Lien Obligations or liability in connection with the acceptance, exercise or
performance of any of its powers or duties hereunder). The Notes Collateral Agent shall notify the
Issuers promptly of any claim for which it may seek indemnity. Failure by the Notes Collateral
Agent to so notify the Issuers shall not relieve the Issuers or any Guarantor of their obligations
hereunder. The Issuers and the Guarantors shall defend the claim and the Notes Collateral Agent
may have separate counsel and the Issuers and the Guarantors shall pay the fees and expenses of
such counsel. The Issuers and the Guarantors need not reimburse any expense or indemnify against
any loss, liability or expense incurred by the Notes Collateral Agent through the result of the
Notes Collateral Agent’s own willful misconduct or gross negligence (as determined by a final,
non-appealable judgment of a court of competent jurisdiction). The obligations of the Issuers and
the Guarantors under this Section 11.09(aa) shall survive the satisfaction and discharge of this
Indenture or the earlier resignation or removal of the Notes Collateral Agent. To secure the
payment obligations of the Issuers and the Guarantors in this Section 11.09(aa), the Notes
Collateral Agent shall have a Lien prior to the Notes and rights of the Holders on all money or
property held or collected by the Trustee or Notes Collateral Agent, except that held in trust to
pay principal, premium, if any, and interest on particular Notes. Such Lien shall survive the
satisfaction and discharge of this Indenture.

Section 11.10 Designations.

Except as provided in the next sentence, for purposes of the provisions hereof and the
Intercreditor Agreement requiring AMLLC to designate Indebtedness for the purposes of the terms
“Lenders Debt” and “Other Pari Passu Lien Obligations” or any other such designations hereunder or
under the Intercreditor Agreement, any such designation shall be sufficient if the relevant
designation is set forth in writing, signed on behalf of the Issuers by an Officer and delivered to
the Trustee, the Notes Collateral Agent and the Bank Collateral Agent. For all purposes hereof and
the Intercreditor Agreement, the Issuers hereby designate the Obligations pursuant to the Senior
Credit Agreement as “Lenders Debt.”

Section 11.11 Limitations on Stock Collateral.

(a) Notwithstanding anything to the contrary in this Indenture, the Notes, any Security
Document or the Intercreditor Agreement, the Capital Stock and other securities of any direct or
indirect Subsidiary of AMLLC that are owned by AMLLC or any Guarantor will constitute Notes
Collateral only to the extent that such Capital Stock and other securities can secure the Notes
and/or the Guarantees without Rule 3-10 or Rule 3-16 of Regulation S-X under the Securities Act (or
any other law, rule or regulation) requiring separate financial statements of such Subsidiary to be
filed with the SEC (or any other governmental agency). In the event that Rule 3-10 or Rule 3-16 of
Regulation S-X under the Securities Act requires or is amended, modified or interpreted by the SEC
to require (or is replaced with another rule or regulation, or any other law, rule or regulation is
adopted, which would require) the filing with the SEC (or any other governmental agency) of
separate financial statements of any Subsidiary of AMLLC due to the fact that such Subsidiary’s
Capital Stock and other securities secure the Notes and/or the Guarantees, then the Capital Stock
and other securities of such Subsidiary shall automatically be deemed not to be part of the Notes
Collateral (but only to the extent necessary to not be subject to such requirement). In such event,
the Security Documents may be amended or modified, pursuant to Section 9.01 without the consent of
any Holder of Notes or holder of Other Pari Passu Lien Obligations, to the extent necessary to
release the first-priority security interests in the shares of Capital Stock and other securities
that are so deemed to no longer constitute part of the Notes Collateral.

 

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(b) In the event that Rule 3-10 or Rule 3-16 of Regulation S-X under the Securities Act is
amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation,
or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s
Capital Stock and other securities to secure the Notes and/or the Guarantees in excess of the
amount then pledged without the filing with the SEC (or any other governmental agency) of separate
financial statements of such Subsidiary, then the Capital Stock and other securities of such
Subsidiary shall automatically be deemed to be a part of the Notes Collateral (but only to the
extent necessary to not be subject to any such financial statement requirement). In such event, the
Security Documents may be amended or modified, pursuant to Section 9.01,without the consent of any
Holder of Notes or holder of Other Pari Passu Lien Obligations, to the extent necessary to subject
to the Liens under the Security Documents such additional Capital Stock and other securities.

(c) Notwithstanding anything to the contrary in this Indenture, the Notes, any Security
Document or the Intercreditor Agreement, the security interest in the Capital Stock of any Foreign
Subsidiary will be required to be perfected only by the filing of UCC financing statements.

Section 11.12 Limitations on Certain Perfection Items.

Notwithstanding anything to the contrary in this Indenture, the Notes, any Security Document
or the Intercreditor Agreement, the Issuers and their respective direct and indirect Subsidiaries
shall not be required to deliver landlord lien waivers, estoppels or collateral access letters and
shall not be required to (i) take actions to perfect by control, other than with respect to (a)
control agreements with respect to securities and deposit accounts relating to ABL Collateral and
(b) promissory notes, letter of credit rights and commercial tort claims, in each case of this
clause (b) in excess, individually, of $5,000,000 or (ii) take any actions under laws outside the
United States to grant, perfect or make enforceable any security interest.

ARTICLE 12

SATISFACTION AND DISCHARGE

Section 12.01 Satisfaction and Discharge.

This Indenture shall be discharged and shall cease to be of further effect as to all Notes,
when either:

(1) all Notes theretofore authenticated and delivered, except lost, stolen or destroyed
Notes which have been replaced or paid and Notes for whose payment money has theretofore
been deposited in trust, have been delivered to the Trustee for cancellation; or

(2) (A) all Notes not theretofore delivered to the Trustee for cancellation have become
due and payable by reason of the making of a notice of redemption or otherwise, shall become
due and payable within one year or are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Issuers and an Issuer or any Guarantor has
irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders of the Notes, cash in U.S. dollars, Government
Securities or a combination thereof, in such amounts as will be sufficient without
consideration of any reinvestment of interest to pay and discharge the entire indebtedness
on the Notes not theretofore delivered to the Trustee for cancellation for principal,
premium, if any, and accrued interest to the date of maturity or redemption;

 

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(B) no Default (other than that resulting from borrowing funds to be applied to make
such deposit or the grant of any Lien securing such borrowing or any similar and
simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens
in connection therewith) with respect to this Indenture or the Notes shall have occurred and
be continuing on the date of such deposit or shall occur as a result of such deposit and
such deposit will not result in a breach or violation of, or constitute a default under, the
Senior Credit Agreement or any other material agreement or instrument (other than this
Indenture) to which an Issuer or any Guarantor is a party or by which an Issuer or any
Guarantor is bound (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other Indebtedness and, in
each case, the granting of Liens in connection therewith);

(C) the Issuers have paid or caused to be paid all sums payable by them under this
Indenture; and

(D) the Issuers have delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Notes at maturity or the redemption date, as the
case may be.

In addition, the Issuers must deliver an Officer’s Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge have been
satisfied.

Notwithstanding the satisfaction and discharge of this Indenture, if money shall have been
deposited with the Trustee pursuant to subclause (A) of clause (2) of this Section 12.01, the
provisions of Section 12.02 and Section 8.06 shall survive.

Section 12.02 Application of Trust Money.

Subject to the provisions of Section 8.06, all money deposited with the Trustee pursuant to
Section 12.01 shall be held in trust and applied by it, in accordance with the provisions of the
Notes and this Indenture, to the payment, either directly or through any Paying Agent (including an
Issuer acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium, if any) and interest for whose payment such money has been
deposited with the Trustee; but such money need not be segregated from other funds except to the
extent required by law.

If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuers’ and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 12.01;
provided that if the Issuers have made any payment of principal of, premium or interest on any
Notes because of the reinstatement of their obligations, the Issuers shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

ARTICLE 13

MISCELLANEOUS

Section 13.01 Trust Indenture Act Controls.

If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
Trust Indenture Act Section 318(c), the imposed duties shall control.

 

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Section 13.02 Notices.

Any notice or communication by an Issuer, any Guarantor, the Trustee or the Notes Collateral
Agent to the others is duly given if in writing and delivered in person or mailed by first-class
mail (registered or certified, return receipt requested), fax or overnight air courier guaranteeing
next day delivery, to the others’ address:

If to an Issuer and/or any Guarantor:

c/o Associated Materials, LLC

3773 State Road

Cuyahoga Falls, Ohio 44223

Fax No.: (330) 929-1811

Attention: General Counsel

If to the Trustee or the Notes Collateral Agent:

Wells Fargo Bank, National Association

1445 Ross Avenue — 2nd Floor

Dallas, TX 75202-2812

Fax No.: (214) 777-4086

Attention: Corporate Trust Administration

An Issuer, any Guarantor, the Trustee or the Notes Collateral Agent, by notice to the others,
may designate additional or different addresses for subsequent notices or communications.

All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five calendar days after being
deposited in the mail, postage prepaid, if mailed by first-class mail; when receipt acknowledged,
if faxed; and the next Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery; provided that any notice or communication delivered to the
Trustee or the Notes Collateral Agent shall be deemed effective upon actual receipt thereof.

Any notice or communication to a Holder shall be mailed by first-class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication shall also be
so mailed to any Person described in Trust Indenture Act Section 313(c), to the extent required by
the Trust Indenture Act. Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders.

If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

If the Issuers mail a notice or communication to Holders, they shall mail a copy to the
Trustee, the Notes Collateral Agent and each Agent at the same time.

Section 13.03 Communication by Holders of Notes with Other Holders of Notes.

Holders may communicate pursuant to Trust Indenture Act Section 312(b) with other Holders with
respect to their rights under this Indenture or the Notes. The Issuers, the Trustee, the Registrar
and anyone else shall have the protection of Trust Indenture Act Section 312(c).

 

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Section 13.04 Certificate and Opinion as to Conditions Precedent.

Upon any request or application by the Issuers or any of the Guarantors to the Trustee to take
any action under this Indenture, the Issuers or such Guarantor, as the case may be, shall furnish
to the Trustee or, if such action relates to a Security Document or the Intercreditor Agreement,
the Notes Collateral Agent:

(a) An Officer’s Certificate in form and substance reasonably satisfactory to the
Trustee or the Notes Collateral Agent, as applicable (which shall include the statements set
forth in Section 13.05) stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; provided that an Officer’s Certificate shall not be
required in connection with the issuance of Notes or the entering into any of the Notes
Documents on the Issue Date; and

(b) An Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
or the Notes Collateral Agent, as applicable (which shall include the statements set forth
in Section 13.05), stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been satisfied; provided that an Opinion of Counsel
shall not be required in connection with the issuance of Notes or the entering into any of
the Notes Documents on the Issue Date.

Section 13.05 Statements Required in Certificate or Opinion.

Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to Section 4.04 or Trust
Indenture Act Section 314(a)(4)) shall comply with the provisions of Trust Indenture Act Section
314(e) and shall include:

(a) a statement that the Person making such certificate or opinion has read such
covenant or condition;

(b) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

(c) a statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with (and, in the case of an
Opinion of Counsel, may be limited to reliance on an Officer’s Certificate as to matters of
fact); and

(d) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.

Section 13.06 Rules by Trustee and Agents.

The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

 

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	Section 13.07	 	No Personal Liability of Directors, Officers, Employees, Incorporators, Members, Partners and Stockholders.

No director, officer, employee, incorporator, member, partner or stockholder of an Issuer or
any Guarantor or any of their parent companies or entities shall have any liability for any
obligations of the Issuers or the Guarantors under the Notes, the Guarantees, the Security
Documents, the Intercreditor Agreement or this Indenture or for any claim based on, in respect of,
or by reason of such obligations or their creation. Each Holder by accepting Notes waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes.

Section 13.08 Governing Law.

THIS INDENTURE, THE NOTES AND ANY GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

Section 13.09 Waiver of Jury Trial.

EACH OF THE ISSUERS, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 13.10 Force Majeure.

In no event shall the Trustee or the Notes Collateral Agent be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including without limitation strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services.

Section 13.11 No Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Issuers or the Restricted Subsidiaries or of any other Person. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

Section 13.12 Successors.

All agreements of the Issuers in this Indenture and the Notes shall bind their respective
successors. All agreements of the Trustee in this Indenture shall bind its successors. All
agreements of each Guarantor in this Indenture shall bind its successors, except as otherwise
provided in Section 10.05.

Section 13.13 Severability.

In case any provision in this Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

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Section 13.14 Counterpart Originals.

The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. The exchange of copies of this
Indenture and of signature pages by facsimile or PDF transmission shall constitute effective
execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the
original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or
PDF shall be deemed to be their original signatures for all purposes.

Section 13.15 Table of Contents, Headings, Etc.

The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

Section 13.16 Intercreditor Agreement Governs.

Reference is made to the Intercreditor Agreement. Each Holder, by its acceptance of a Note,
(a) consents to the subordination of Liens provided for in the Intercreditor Agreement, (b) agrees
that it will be bound by and will take no actions contrary to the provisions of the Intercreditor
Agreement and (c) authorizes and instructs the Notes Collateral Agent to enter into the
Intercreditor Agreement as Notes Collateral Agent and on behalf of such Holder. The foregoing
provisions are intended as an inducement to the lenders under the Senior Credit Agreement to extend
credit and such lenders are intended third party beneficiaries of such provisions and the
provisions of the Intercreditor Agreement.

[Signatures on following page]

 

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	 	CAREY ACQUISITION CORP.

 	 
	 	By:  	/s/ Erik D. Ragatz
 	 
	 	 	Name:  	Erik D. Ragatz 	 
	 	 	Title:  	President, Treasurer and Secretary 	 
	 
	 	ASSOCIATED MATERIALS, LLC

 	 
	 	By:  	/s/ Stephen Graham
 	 
	 	 	Name:  	Stephen Graham 	 
	 	 	Title:  	Vice President, Chief Financial Officer 	 
	 
	 	CAREY NEW FINANCE, INC.

 	 
	 	By:  	/s/ Erik D. Ragatz
 	 
	 	 	Name:  	Erik D. Ragatz 	 
	 	 	Title:  	President, Treasurer and Secretary 	 

Signature Page to Indenture — 1

 

 

 

	 	 	 	 	 
	 	GENTEK HOLDINGS, LLC

 	 
	 	By:  	/s/ Stephen E. Graham
 	 
	 	 	Name:  	Stephen E. Graham 	 
	 	 	Title:  	Vice President — Chief Financial

Officer, Treasurer and Secretary 	 

Signature Page to Indenture — 2

 

 

 

	 	 	 	 	 
	 	GENTEK BUILDING PRODUCTS, INC.

 	 
	 	By:  	/s/ Stephen E. Graham
 	 
	 	 	Name:  	Stephen E. Graham 	 
	 	 	Title:  	Vice President — Chief Financial

Officer, Treasurer and Secretary 	 

Signature Page to Indenture — 3

 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee and Notes Collateral Agent

 	 
	 	By:  	/s/ John C. Stohlmann
 	 
	 	 	Name:  	John C. Stohlmann 	 
	 	 	Title:  	Vice President 	 

Signature Page to Indenture — 4

 

 

 

EXHIBIT A

[Face of Note]

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

[Insert the Regulation S Temporary Global Note Legend, if applicable pursuant to the
provisions of the Indenture]

 

A-1

 

CUSIP [                    ]

ISIN [                    ]1

[RULE 144A][REGULATION S] GLOBAL NOTE

representing up to

$[                    ]

9.125% Senior Secured Notes due 2017

			
	 	 	 
	No.
 _____ 

	 	[$                    ]

Carey Acquisition Corp.

and

Carey New Finance, Inc.

promise to pay to CEDE & CO. or registered assigns, the principal sum [set forth on the
Schedule of Exchanges of Interests in the Global Note attached hereto] [of                     
United States Dollars] on November 1, 2017.

Interest Payment Dates: May 1 and November 1

Record Dates: April 15 and October 15

 

	 	 	 
	1	 	Rule 144A Note CUSIP: [                    ]
	 
	 	 	Rule 144A Note ISIN: [                    ]
	 
	 	 	Regulation S Note CUSIP: [                    ]
	 
	 	 	Regulation S Note ISIN: [                    ]

 

A-2

 

IN WITNESS HEREOF, each of the Issuers has caused this instrument to be duly executed.

Dated:

	 	 	 	 	 
	 	CAREY ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CAREY NEW FINANCE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

A-3

 

This is one of the Notes referred to in the within-mentioned Indenture:

	 	 	 	 	 
	

Dated: 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

 

A-4

 

[Back of Note]

9.125% Senior Secured Notes due 2017

Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

1. INTEREST. Carey Acquisition Corp., a Delaware corporation and Carey New Finance, Inc., a
Delaware limited liability company, promise to pay interest on the principal amount of this Note at
9.125% per annum from October 13, 2010 until maturity. Upon consummation of the Transactions,
Associated Materials, LLC, a Delaware corporation, will assume the obligations of Carey Acquisition
Corp. under this Note. The Issuers will pay interest semi-annually in arrears on May 1 and
November 1 of each year, or if any such day is not a Business Day, on the next succeeding Business
Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most
recent date to which interest has been paid or, if no interest has been paid, from the date of
issuance; provided that the first Interest Payment Date shall be May 1, 2011. The Issuers will pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at the interest rate on the Notes; it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest, if any, (without regard to any applicable grace periods) from
time to time on demand at the interest rate on the Notes. Interest will be computed on the basis
of a 360-day year comprised of twelve 30-day months.

2. METHOD OF PAYMENT. The Issuers will pay interest on the Notes, if any, to the Persons who
are registered Holders of Notes at the close of business on the April 15 or October 15 (whether or
not a Business Day), as the case may be, next preceding the Interest Payment Date, even if such
Notes are canceled after such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted interest. Payment of interest,
if any, may be made by check mailed to the Holders at their addresses set forth in the register of
Holders, provided that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest, premium, if any, on all Global Notes and all other Notes
the Holders of which shall have provided wire transfer instructions to the Issuers or the Paying
Agent. Such payment shall be in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.

3. PAYING AGENT AND REGISTRAR. Initially, Wells Fargo Bank, National Association, the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Issuers may change any Paying
Agent or Registrar without prior written notice to the Holders. The Issuers or any of AMLLC’s
Subsidiaries may act in as paying agent or registrar.

4. INDENTURE. The Issuers issued the Notes under an Indenture, dated as of October 13, 2010
(the “Indenture”), among Carey Acquisition Corp., Carey New Finance, Inc., AMLLC, the Guarantors
named therein and the Trustee. This Note is one of a duly authorized issue of notes of the Issuers
designated as their 9.125% senior secured notes due 2017. The Issuers may issue Additional Notes
pursuant to Section 2.01 and 4.09 of the Indenture. The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939,
as amended (the “Trust Indenture Act”). The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such terms. To the extent
any provision of this Note conflicts with the express provisions of the Indenture, the provisions
of the Indenture shall govern and be controlling.

 

A-5

 

5. OPTIONAL REDEMPTION.

(a) Except as set forth below under clauses 5(b), 5(d) and 5(e) hereof, the Notes will not be
redeemable at the Issuers’ option before November 1, 2013.

(b) At any time prior to November 1, 2013, the Issuers may redeem all or a part of the Notes,
upon notice as described under Section 3.03 of the Indenture, at a redemption price equal to 100%
of the principal amount of the Notes redeemed plus the Applicable Premium as of, and accrued and
unpaid interest, if any, to, but excluding, the date of redemption (the “Redemption Date”),
subject to the rights of Holders of Notes on the relevant Record Date to receive interest due on
the relevant Interest Payment Date.

(c) On and after November 1, 2013, the Issuers may redeem the Notes, in whole or in part, upon
notice as described under Section 3.03 of the Indenture, at the redemption prices (expressed as
percentages of principal amount of the Notes to be redeemed) set forth below, plus accrued and
unpaid interest thereon, if any, to, but excluding, the applicable Redemption Date, subject to the
right of Holders of Notes of record on the relevant Record Date to receive interest due on the
relevant Interest Payment Date, if redeemed during the twelve-month period beginning on November 1
of each of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	 
	 	 	 	 
	2013
	 	 	106.844	%
	2014
	 	 	104.563	%
	2015
	 	 	102.281	%
	2016 and thereafter
	 	 	100.000	%

(d) In addition, until November 1, 2013, the Issuers may, at their option, upon notice as
described under Section 3.03 of the Indenture, on one or more occasions, redeem up to 35% of the
aggregate principal amount of the Notes issued under the Indenture at a redemption price equal to
109.125% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, if
any, to, but excluding, the applicable Redemption Date, subject to the right of Holders of Notes of
record on the relevant Record Date to receive interest due on the relevant Interest Payment Date,
with the net cash proceeds of one or more Equity Offerings to the extent such net cash proceeds are
received by or contributed to AMLLC; provided that (a) at least 50% of the sum of the aggregate
principal amount of Notes originally issued under the Indenture on the Issue Date remains
outstanding immediately after the occurrence of each such redemption and (b) that each such
redemption occurs within 120 days of the date of closing of each such Equity Offering.

(e) In addition, during any 12-month period prior to November 1, 2013, the Issuers shall be
entitled to redeem up to 10% of the aggregate principal amount of the Notes issued under the
Indenture at a redemption price equal to 103.000% of the aggregate principal amount thereof, plus
accrued interest thereon, if any, to the Redemption Date, subject to the right of Holders of Notes
of record on the relevant Record Date to receive interest due on the relevant Interest Payment
Date.

(f) Any redemption pursuant to this paragraph 5 shall be made pursuant to the provisions of
Sections 3.01 through 3.07 of the Indenture.

6. MANDATORY REDEMPTION. The Issuers shall not be required to make any mandatory redemption
or sinking fund payments with respect to the Notes.

 

A-6

 

7. NOTICE OF REDEMPTION. Subject to Section 3.03 of the Indenture, notice of redemption will
be electronically delivered or mailed by first-class mail, postage prepaid, at least 30 days but
not more than 60 days before the redemption date (except that redemption notices may be mailed more
than 60 days prior to a redemption date if the notice is issued in connection with Article 8 or
Article 12 of the Indenture) to each Holder whose Notes are to be redeemed at its registered
address. Notes in denominations larger than $2,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the
redemption date interest ceases to accrue on Notes or portions thereof called for redemption.

8. OFFERS TO REPURCHASE.

(a) Upon the occurrence of a Change of Control, the Issuers shall make an offer (a “Change
of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase price equal to 101% of
the aggregate principal amount thereof plus accrued and unpaid interest, if any, to, but excluding,
the date of purchase (the “Change of Control Payment”). The Change of Control Offer shall
be made in accordance with Section 4.14 of the Indenture.

(b) If the Issuers or any of its Restricted Subsidiaries consummates an Asset Sale, within 10
Business Days of each date that Excess Proceeds exceed $20,000,000, the Issuers shall make an Asset
Sale Offer to all holders of the Notes, and, if required by the terms of any Other Pari Passu Lien
Obligations, to the holders of such Other Pari Passu Lien Obligations, to purchase the maximum
aggregate principal amount of the Notes and such Other Pari Passu Lien Obligations that is equal to
$1,000 or an integral multiple thereof that may be purchased out of the Excess Proceeds or Excess
ABL Proceeds, as applicable, at an offer price in cash in an amount equal to 100% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the date fixed for the closing of such
offer, in accordance with the procedures set forth in the Indenture. To the extent that the
aggregate amount of Notes and such Other Pari Passu Lien Obligations tendered pursuant to an Asset
Sale Offer is less than the Excess Proceeds, the Issuers may use any remaining Excess Proceeds for
general corporate purposes, subject to other covenants contained in the Indenture. If the
aggregate principal amount of Notes or the Other Pari Passu Lien Obligations surrendered by such
Holders and holders thereof exceeds the amount of Excess Proceeds or Excess ABL Proceeds, as
applicable, the Issuers shall select the Notes and such Other Pari Passu Lien Obligations to be
purchased on a pro rata basis based on the accreted value or principal amount of the Notes or such
Other Pari Passu Lien Obligations tendered. Upon completion of any such Asset Sale Offer, the
amount of Excess Proceeds shall be reset at zero. After the Issuers or any Restricted Subsidiary
have applied the Net Proceeds from any Asset Sale of any assets that do not constitute ABL
Collateral, the balance of such Net Proceeds, if any, from such Asset Sale shall be released by the
Notes Collateral Agent to the Issuers or such Restricted Subsidiary for use by the Issuers or such
Restricted Subsidiary for any purpose not prohibited by the terms of the Indenture. Holders of
Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the
Issuers prior to any related purchase date and may elect to have such Notes purchased by completing
the form entitled “Option of Holder to Elect Purchase” attached to the Notes.

9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Issuers may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Issuers need not exchange or register the transfer of any Note or
portion of a Note selected for redemption or tendered (and not withdrawn) for repurchase in
connection with a Change of Control Offer, an Asset Sale Offer or other tender offer, in whole or in part,
except for the unredeemed portion of any Note being redeemed in part. Also, the Issuers need not
exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes
to be redeemed.

 

A-7

 

10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

11. AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture, the Guarantees or the Notes may be
amended or supplemented as provided in the Indenture.

12. DEFAULTS AND REMEDIES. The Events of Default relating to the Notes are defined in Section
6.01 of the Indenture. If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 30% in principal amount of the then total outstanding Notes may declare the
principal, premium, if any, interest and any other monetary obligations on all the then outstanding
Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of
Default arising from certain events of bankruptcy or insolvency, all outstanding Notes will become
due and payable immediately without further action or notice. Holders may not enforce the
Indenture, the Notes or the Guarantees except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then outstanding Notes may
direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of
the Notes notice of any continuing Default (except a Default relating to the payment of principal,
premium, if any, or interest) if and so long as it determines that withholding notice is in their
interest. The Holders of a majority in aggregate principal amount of the then outstanding Notes by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default
and its consequences under the Indenture (except a continuing Default in the payment of interest
on, premium, if any, or the principal of any Note held by a non-consenting Holder) and rescind an
acceleration and its consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default (except nonpayment of principal, interest, if any, or premium
that has become due solely because of the acceleration) have been cured or waived. The Issuers and
each Guarantor (to the extent that such Guarantor is so required under the Trust Indenture Act) is
required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Issuers are required within five (5) Business Days after becoming aware of any Default, to
deliver to the Trustee a statement specifying such event.

13. AUTHENTICATION. This Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose until authenticated by the manual signature of the Trustee.

14. GOVERNING LAW. THE INDENTURE, THE NOTES AND ANY GUARANTEE WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

15. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

 

A-8

 

The Issuers will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to the Issuers at the following address:

c/o Associated Materials, LLC

3773 State Road

Cuyahoga Falls, Ohio 44273

Fax No.: (330) 929-1811

Attention: General Counsel

 

A-9

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

	 	 	 	 	 
	(I) or (we) assign and transfer this Note to:
	 	 	 	 
	 

	 	 

(Insert assignee’s legal name)
	 	 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 	 	 
	and irrevocably appoint
	 	 	 	 
	 

	 	 

	 	 

to transfer this Note on the books of the Issuers. The agent may substitute another to act for
him.

Date:                     

	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 
	 

	 	 
	 	 

(Sign exactly as your name appears on the face of this Note)
	 	 

Signature Guarantee:*                                         

	 	 	 
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by the Issuers pursuant to Section 4.10 or
4.14 of the Indenture, check the appropriate box below:

o Section 4.10 o Section 4.14

If you want to elect to have only part of this Note purchased by the Issuers pursuant to
Section 4.10 or Section 4.14 of the Indenture, state the amount you elect to have purchased:

$                    

Date:                     

	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 
	 

	 	 
	 	 

(Sign exactly as your name appears on the face of this Note)
	 	 

Signature Guarantee:*                                         

	 	 	 
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

The initial outstanding principal amount of this Global Note is $                    . The following
exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive
Note, or exchanges of a part of another Global or Definitive Note for an interest in this Global
Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	Signature of
	 	 	 	 	Amount of increase	 	this Global Note	 	authorized officer of
	 	 	Amount of decrease	 	in Principal Amount	 	following such	 	Trustee or Note
	Date of Exchange	 	in Principal Amount	 	of this Global Note	 	decrease or increase	 	Custodian
	 	 	 	 	 	 	 	 	 

 

	 	 	 
	*	 	This schedule should be included only if the Note is issued in global form.

 

A-12

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Associated Materials, LLC

3773 State Road

Cuyahoga Falls, Ohio 44223

Fax No.: (      ) [                    ]

Attention: [                    ]

Wells Fargo Bank, National Association

1445 Ross Avenue — 2nd Floor

Dallas, TX 75202-2812

Fax No.: (214) 777-4086

Attention: Corporate Trust Administration

Re: 9.125% Senior Secured Notes due 2017

Reference is hereby made to the Indenture, dated as of October 13, 2010 (the
“Indenture”), among Carey Acquisition Corp., Carey New Finance, Inc., Associated Materials,
LLC, Inc., the Guarantors named therein and the Trustee. Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

                     (the “Transferor”) owns and proposes to transfer the Note[s] or
interest in such Note[s] specified in Annex A hereto, in the principal amount of $                     in
such Note[s] or interests (the “Transfer”), to                      (the “Transferee”),
as further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

1. o CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE 144A GLOBAL
NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The Transfer is being effected pursuant to and in
accordance with Rule 144A under the United States Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note for its own account,
or for one or more accounts with respect to which such Person exercises sole investment discretion,
and such Person and each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and such Transfer is in compliance
with any applicable blue sky securities laws of any state of the United States.

2. o CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE REGULATION S
GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO REGULATION S. The Transfer is being effected pursuant
to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the
Transferor hereby further certifies that (i) the Transfer is not being made to a person in the
United States and (x) at the time the buy order was originated, the Transferee was outside the
United States or such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the transaction was executed in,
on or through the facilities of a designated offshore securities market and neither such Transferor
nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the
United States, (ii) no directed selling efforts have been made in contravention of the requirements
of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act (iii) the transaction is not
part of a plan or scheme to evade the registration requirements of the Securities Act and (iv) if
the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer
is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an
Initial Purchaser). Upon consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumerated in the Indenture and the Securities Act.

 

B-1

 

3. o CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
DEFINITIVE NOTE PURSUANT TO ANY PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION
S. The Transfer is being effected in compliance with the transfer restrictions applicable to
beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and
in accordance with the Securities Act and any applicable blue sky securities laws of any state of
the United States, and accordingly the Transferor hereby further certifies that (check one):

(a) o such Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act;

or

(b) o such Transfer is being effected to an Issuer or a subsidiary thereof;

or

(c) o such Transfer is being effected pursuant to an effective registration
statement under the Securities Act and, if applicable, in compliance with the prospectus
delivery requirements of the Securities Act.

4. o CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN UNRESTRICTED
GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

(a) o CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

(b) o CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance
with the transfer restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

 

B-2

 

(c) o CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuers.

	 	 	 	 	 
	 	[Insert Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Dated:                     

 

B-3

 

ANNEX A TO CERTIFICATE OF TRANSFER

1. The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

(a) o a beneficial interest in the:

(i) o 144A Global Note (CUSIP [                    ]), or

(ii) o Regulation S Global Note (CUSIP [                    ]), or

(b) o a Restricted Definitive Note.

2. After the Transfer the Transferee will hold:

[CHECK ONE]

(a) o a beneficial interest in the:

(i) o 144A Global Note (CUSIP [                    ]), or

(ii) o Regulation S Global Note (CUSIP [                    ]), or

(iii) o Unrestricted Global Note (CUSIP [                    ]); or

(b) o a Restricted Definitive Note; or

(c) o an Unrestricted Definitive Note, in accordance with the terms of the Indenture.

Annex A-1

 

 

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Associated Materials, LLC

3773 State Road

Cuyahoga Falls, Ohio 44233

Fax No.: (      ) [                    ]

Attention: [                    ]

Wells Fargo Bank, National Association

1445 Ross Avenue — 2nd Floor

Dallas, TX 75202-2812

Fax No.: (214) 777-4086

Attention: Corporate Trust Administration

Re: 91/8% Senior Secured Notes due 2017

Reference is hereby made to the Indenture, dated as of October 13, 2010 (the
“Indenture”), among Carey Acquisition Corp., Carey New Finance, Inc., Associated Materials,
LLC, the Guarantors named therein and the Trustee. Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

                     (the “Owner”) owns and proposes to exchange the Note[s] or interest in
such Note[s] specified herein, in the principal amount of $                     in such Note[s] or interests
(the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

1) EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL NOTE
FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL NOTE

a) o CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the Exchange of the
Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer, (ii)
such Exchange has been effected in compliance with the transfer restrictions applicable to
the Global Notes and pursuant to and in accordance with the United States Securities Act of
1933, as amended (the “Securities Act”), (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in an
Unrestricted Global Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

b) o CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
UNRESTRICTED DEFINITIVE NOTE. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Definitive Note is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act and (iv) the Definitive Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

 

C-1

 

c) o CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST IN
AN UNRESTRICTED GLOBAL NOTE. In connection with the Owner’s Exchange of a Restricted
Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the beneficial interest is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

d) o CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO UNRESTRICTED DEFINITIVE
NOTE. In connection with the Owner’s Exchange of a Restricted Definitive Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive
Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the Unrestricted
Definitive Note is being acquired in compliance with any applicable blue sky securities laws
of any state of the United States.

2) EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES
FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES

a) o CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
RESTRICTED DEFINITIVE NOTE. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for a Restricted Definitive Note with an equal
principal amount, the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer. Upon consummation of the proposed
Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Definitive Note and in the Indenture and the
Securities Act.

b) o CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST IN
A RESTRICTED GLOBAL NOTE. In connection with the Exchange of the Owner’s Restricted
Definitive Note for a beneficial interest in the [CHECK ONE] [ ] 144A Global Note [ ]
Regulation S Global Note, with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer and (ii)
such Exchange has been effected in compliance with the transfer restrictions applicable to
the Restricted Global Notes and pursuant to and in accordance with the Securities Act, and
in compliance with any applicable blue sky securities laws of any state of the United
States. Upon consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the relevant Restricted Global Note and in the
Indenture and the Securities Act.

 

C-2

 

This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuers.

	 	 	 	 	 
	 	[Insert Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Dated:                     

 

C-3

 

EXHIBIT D

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS]

Supplemental Indenture (this “Supplemental Indenture”), dated as of                     , among
                                         (the “Guaranteeing Subsidiary”), a subsidiary of Associated Materials,
LLC, a Delaware limited liability company, and Wells Fargo Bank, National Association, as trustee
(the “Trustee”).

W I T N E S S E T H

WHEREAS, each of Carey Acquisition Corp., Carey New Finance, Inc., Associated Materials, LLC
and the Guarantors (as defined in the Indenture referred to below) has heretofore executed and
delivered to the Trustee an indenture (the “Indenture”), dated as of October 13, 2010,
providing for the issuance of an unlimited aggregate principal amount of 9.125% senior secured
notes due 2017 (the “Notes”);

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the
Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (the
“Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree
for the equal and ratable benefit of the Holders of the Notes as follows:

(1) Capitalized Terms. Capitalized terms used herein without definition shall
have the meanings assigned to them in the Indenture.

(2) Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees to be a
Guarantor under the Indenture and to be bound by the terms of the Indenture applicable to
Guarantors, including Article 10 thereof.

(3) Execution and Delivery. The Guaranteeing Subsidiary agrees that the
Guarantee shall remain in full force and effect notwithstanding the absence of the
endorsement of any notation of such Guarantee on the Notes.

(4) Governing Law. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

D-1

 

(5) Counterparts. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement.

(6) Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.

(7) The Trustee. The Trustee shall not be responsible in any manner whatsoever
for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in
respect of the recitals contained herein, all of which recitals are made solely by the
Guaranteeing Subsidiary.

 

D-2

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, all as of the date first above written.

	 	 	 	 	 
	 	[GUARANTEEING SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

 as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

D-3

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