Document:

exv4w6

EXHIBIT
4.6

FORM OF SUBORDINATED INDENTURE

 

PENWEST PHARMACEUTICALS CO.,

ISSUER

and

[                    ],

TRUSTEE

 

INDENTURE

Dated as of [                    ], 200[_]

 

Subordinated Debt Securities

 

 

 

CROSS-REFERENCE TABLE(1)

	 	 	 
	Section of	 	 
	Trust Indenture Act	 	Section of
	of 1939, as amended	 	Indenture
	310(a)

	 	 7.09
	310(b)

	 	 7.08
	 

	 	 7.10
	310(c)

	 	 Inapplicable
	311(a)

	 	 7.13
	311(b)

	 	 7.13
	311(c)

	 	 Inapplicable
	312(a)

	 	 5.01
	 

	 	 5.02(a)
	312(b)

	 	 5.02(c)
	312(c)

	 	 5.02(c)
	313(a)

	 	 5.04(a)
	313(b)

	 	 5.04(b)
	313(c)

	 	 5.04(a)
	 

	 	 5.04(b)
	313(d)

	 	 5.04(b)
	 

	 	 5.04(c)
	314(a)

	 	 5.03
	 

	 	 13.05(c)
	314(b)

	 	 Inapplicable
	314(c)

	 	 13.05
	314(d)

	 	 Inapplicable
	314(e)

	 	 13.05
	314(f)

	 	 Inapplicable
	315(a)

	 	 7.01(b)
	 

	 	 7.02
	315(b)

	 	 5.04(d)
	315(c)

	 	 7.01
	315(d)

	 	 7.01
	 

	 	 7.02
	315(e)

	 	 6.07
	316(a)

	 	 6.06
	 

	 	 8.04
	316(b)

	 	 6.04
	316(c)

	 	 8.01
	317(a)

	 	 6.02
	317(b)

	 	 4.03
	318(a)

	 	 13.06

 

			
	(1)	 	This Cross-Reference Table does not constitute part of the Indenture and shall not have any
bearing on the interpretation of any of its terms or provisions.

 

TABLE OF CONTENTS(2)

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	 DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01 Definitions of Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01 Designation and Terms of Securities
	 	 	5	 
	SECTION 2.02 Form of Securities and Trustee’s Certificate
	 	 	7	 
	SECTION 2.03 Denominations; Provisions for Payment
	 	 	7	 
	SECTION 2.04 Execution and Authentications
	 	 	8	 
	SECTION 2.05 Registration of Transfer and Exchange
	 	 	9	 
	SECTION 2.06 Temporary Securities
	 	 	10	 
	SECTION 2.07 Mutilated, Destroyed, Lost or Stolen Securities
	 	 	11	 
	SECTION 2.08 Cancellation
	 	 	11	 
	SECTION 2.09 Benefits of Indenture
	 	 	12	 
	SECTION 2.10 Authenticating Agent
	 	 	12	 
	SECTION 2.11 Global Securities
	 	 	12	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01 Redemption
	 	 	13	 
	SECTION 3.02 Notice of Redemption
	 	 	14	 
	SECTION 3.03 Payment Upon Redemption
	 	 	15	 
	SECTION 3.04 Sinking Fund
	 	 	15	 
	SECTION 3.05 Satisfaction of Sinking Fund Payments with Securities
	 	 	15	 
	SECTION 3.06 Redemption of Securities for Sinking Fund
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01 Payment of Principal, Premium and Interest
	 	 	16	 
	SECTION 4.02 Maintenance of Office or Agency
	 	 	16	 
	SECTION 4.03 Paying Agents
	 	 	17	 
	SECTION 4.04 Appointment to Fill Vacancy in Office of Trustee
	 	 	18	 

-ii-

 

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01 Company to Furnish Trustee Names and Addresses of Securityholders
	 	 	18	 
	SECTION 5.02 Preservation Of Information; Communications With Securityholders
	 	 	18	 
	SECTION 5.03 Reports by the Company
	 	 	18	 
	SECTION 5.04 Reports by the Trustee
	 	 	19	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01 Events of Default
	 	 	20	 
	SECTION 6.02 Suits for Enforcement by Trustee
	 	 	21	 
	SECTION 6.03 Application of Moneys Collected
	 	 	22	 
	SECTION 6.04 Limitation on Suits
	 	 	23	 
	SECTION 6.05 Rights and Remedies Cumulative; Delay or Omission Not Waiver
	 	 	23	 
	SECTION 6.06 Control by Securityholders
	 	 	24	 
	SECTION 6.07 Undertaking to Pay Costs
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	CONCERNING THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01 Certain Duties and Responsibilities of Trustee
	 	 	25	 
	SECTION 7.02 Certain Rights of Trustee
	 	 	26	 
	SECTION 7.03 Trustee Not Responsible for Recitals or Issuance or Securities
	 	 	27	 
	SECTION 7.04 May Hold Securities
	 	 	27	 
	SECTION 7.05 Moneys Held in Trust
	 	 	27	 
	SECTION 7.06 Compensation and Reimbursement
	 	 	27	 
	SECTION 7.07 Reliance on Officers’ Certificate
	 	 	28	 
	SECTION 7.08 Disqualification; Conflicting Interests
	 	 	28	 
	SECTION 7.09 Corporate Trustee Required; Eligibility
	 	 	28	 
	SECTION 7.10 Resignation and Removal; Appointment of Successor
	 	 	29	 
	SECTION 7.11 Acceptance of Appointment By Successor
	 	 	30	 
	SECTION 7.12 Merger, Conversion, Consolidation or Succession to Business
	 	 	31	 
	SECTION 7.13 Preferential Collection of Claims Against the Company
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	CONCERNING THE SECURITYHOLDERS
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01 Evidence of Action by Securityholders
	 	 	32	 
	SECTION 8.02 Proof of Execution by Securityholders
	 	 	32	 
	SECTION 8.03 Who May be Deemed Owners
	 	 	33	 
	SECTION 8.04 Certain Securities Owned by Company Disregarded
	 	 	33	 

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	 	 	 	Page	 
	SECTION 8.05 Actions Binding on Future Securityholders
	 	 	33	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01 Supplemental Indentures Without the Consent of Securityholders
	 	 	34	 
	SECTION 9.02 Supplemental Indentures With Consent of Securityholders
	 	 	34	 
	SECTION 9.03 Effect of Supplemental Indentures
	 	 	35	 
	SECTION 9.04 Securities Affected by Supplemental Indentures
	 	 	35	 
	SECTION 9.05 Execution of Supplemental Indentures
	 	 	35	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	SUCCESSOR ENTITY
	 	 	 	 
	 
	 	 	 	 
	SECTION
10.01 Company May Consolidate, Etc.
	 	 	36	 
	SECTION 10.02 Successor Entity Substituted
	 	 	37	 
	SECTION 10.03 Evidence of Consolidation, Etc. to Trustee
	 	 	37	 
	 
	 	 	 	 
	ARTICLE XI
	 	 	 	 
	 
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.01 Satisfaction and Discharge of Indenture
	 	 	37	 
	SECTION 11.02 Discharge of Obligations
	 	 	38	 
	SECTION 11.03 Deposited Moneys to be Held in Trust
	 	 	38	 
	SECTION 11.04 Payment of Moneys Held by Paying Agents
	 	 	38	 
	SECTION 11.05 Repayment to Company
	 	 	38	 
	 
	 	 	 	 
	ARTICLE XII
	 	 	 	 
	 
	 	 	 	 
	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	 	 	 	 
	 
	 	 	 	 
	SECTION 12.01 No Recourse
	 	 	39	 
	 
	 	 	 	 
	ARTICLE XIII
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 13.01 Effect on Successors and Assigns
	 	 	39	 
	SECTION 13.02 Actions by Successor
	 	 	39	 
	SECTION 13.03 Notices
	 	 	40	 
	SECTION 13.04 Governing Law
	 	 	40	 
	SECTION 13.05 Compliance Certificates and Opinions
	 	 	40	 
	SECTION 13.06 Payments on Business Days
	 	 	40	 
	SECTION 13.07 Conflict with Trust Indenture Act
	 	 	41	 
	SECTION 13.08 Counterparts
	 	 	41	 

-iv-

 

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 13.09 Separability
	 	 	41	 
	SECTION 13.10 Assignment
	 	 	41	 
	 
	 	 	 	 
	ARTICLE XIV
	 	 	 	 
	 
	 	 	 	 
	SUBORDINATION OF SECURITIES
	 	 	 	 
	SECTION 14.01 Subordination Terms
	 	 	41	 

 

			
	(2)	 	This Table of Contents does not constitute part of the Indenture and shall not have any
bearing on the interpretation of any of its terms or provisions.

-v-

 

     INDENTURE, dated as of [___], 200[_], between Penwest Pharmaceuticals Co., a Washington
corporation (the “Company”), and [___], as trustee (the “Trustee”):

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the execution and
delivery of this Indenture to provide for the issuance of unsecured subordinated debt securities
(hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be
issued from time to time in one or more series as in this Indenture provided, as registered
Securities without coupons, to be authenticated by the certificate of the Trustee;

     WHEREAS, to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the execution of this
Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done.

     NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the
holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit
of the holders of Securities:

ARTICLE I

DEFINITIONS

SECTION 1.01 Definitions of Terms.

     The terms defined in this Section (except as in this Indenture otherwise expressly provided or
unless the context otherwise requires) for all purposes of this Indenture and of any indenture
supplemental hereto shall have the respective meanings specified in this Section and shall include
the plural as well as the singular. All other terms used in this Indenture that are defined in the
Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the
Securities Act of 1933, as amended (except as herein otherwise expressly provided or unless the
context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture
Act and in said Securities Act as in force at the date of the execution of this instrument.

     “Authenticating Agent” means an authenticating agent with respect to all or any of the series
of Securities appointed with respect to all or any series of the Securities by the Trustee pursuant
to Section 2.10.

     “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief
of debtors.

     “Board of Directors” means the Board of Directors of the Company or any duly authorized
committee of such Board.

 

 

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification.

     “Business Day” means, with respect to any series of Securities, any day other than a day on
which Federal or State banking institutions in the Borough of Manhattan, The City of New York, are
authorized or obligated by law, executive order or regulation to close.

     “Certificate” means a certificate signed by the principal executive officer, the principal
financial officer or the principal accounting officer of the Company. The Certificate need not
comply with the provisions of Section 13.05.

     “Company” means Penwest Pharmaceuticals Co., a corporation duly organized and existing under
the laws of the State of Washington, and, subject to the provisions of Article Ten, shall also
include its successors and assigns.

     “Corporate Trust Office” means the office of the Trustee at which, at any particular time, its
corporate trust business shall be principally administered, which office at the date hereof is
located at [                    ], except that whenever a provision herein refers to an office or agency of
the Trustee in the Borough of Manhattan, The City of New York, such office is located, at the date
hereof, at [                    ].

     “Custodian” means any receiver, trustee, assignee, liquidator, or similar official under any
Bankruptcy Law.

     “Default” means any event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.

     “Depositary” means, with respect to Securities of any series, for which the Company shall
determine that such Securities will be issued as a Global Security, The Depository Trust Company,
New York, New York, another clearing agency, or any successor registered as a clearing agency under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or other applicable statute
or regulation, which, in each case, shall be designated by the Company pursuant to either Section
2.01 or 2.11.

     “Event of Default” means, with respect to Securities of a particular series any event
specified in Section 6.01, continued for the period of time, if any, therein designated.

     “Global Security” means, with respect to any series of Securities, a Security executed by the
Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction,
all in accordance with the Indenture, which shall be registered in the name of the Depositary or
its nominee.

     “Governmental Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America, the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not callable or redeemable at

-2-

 

the option of the issuer thereof, and shall also include a depositary receipt issued by a bank
(as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect
to any such Governmental Obligation or a specific payment of principal of or interest on any such
Governmental Obligation held by such custodian for the account of the holder of such depositary
receipt; provided, however, that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depositary receipt from any amount
received by the custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

     “Herein,” “hereof” and “hereunder,” and other words of similar import, refer to this Indenture
as a whole and not to any particular Article, Section or other subdivision.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into in accordance
with the terms hereof.

     “Interest Payment Date,” when used with respect to any installment of interest on a Security
of a particular series, means the date specified in such Security or in a Board Resolution or in an
indenture supplemental hereto with respect to such series as the fixed date on which an installment
of interest with respect to Securities of that series is due and payable.

     “Officers’ Certificate” means a certificate signed by the President or a Senior Vice President
and by the Treasurer or an Assistant Treasurer or the Controller or an Assistant Controller or the
Secretary or an Assistant Secretary of the Company that is delivered to the Trustee in accordance
with the terms hereof. Each such certificate shall include the statements provided for in Section
13.05, if and to the extent required by the provisions thereof.

     “Opinion of Counsel” means an opinion in writing of legal counsel, who may be an employee of
or counsel for the Company, that is delivered to the Trustee in accordance with the terms hereof.
Each such opinion shall include the statements provided for in Section 13.05, if and to the extent
required by the provisions thereof.

     “Outstanding,” when used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of that series theretofore
authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore
canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for
cancellation or that have previously been canceled; (b) Securities or portions thereof for the
payment or redemption of which moneys or Governmental Obligations in the necessary amount shall
have been deposited in trust with the Trustee or with any paying agent (other than the Company) or
shall have been set aside and segregated in trust by the Company (if the Company shall act as its
own paying agent); provided, however, that if such Securities or portions of such Securities are to
be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in
Article Three provided, or provision satisfactory to the Trustee shall have been made for giving
such notice; and (c) Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered pursuant to the terms of Section 2.07.

-3-

 

     “Person” means any individual, corporation, partnership, joint venture, joint-stock company,
unincorporated organization or government or any agency or political subdivision thereof.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or
stolen Security.

     “Responsible Officer” when used with respect to the Trustee means the President, any Senior
Vice President, the Secretary, the Treasurer, any trust officer, any corporate trust officer or any
other officer or assistant officer of the Trustee customarily performing 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 his or her knowledge of and familiarity with the
particular subject.

     “Securities” means the debt Securities authenticated and delivered under this Indenture.

     “Securityholder,” “holder of Securities,” “registered holder” or other similar term, means the
Person or Persons in whose name or names a particular Security shall be registered on the books of
the Company kept for that purpose in accordance with the terms of this Indenture.

     “Senior Indebtedness” means indebtedness issued pursuant to a senior indenture, as
supplemented or amended by one or more indentures supplemental thereto, payment of which shall be
senior to the payment of the Securities issued hereunder, pursuant to Section 14 hereof.

     “Subsidiary” means, with respect to any Person, (i) any corporation at least a majority of
whose outstanding Voting Stock shall at the time be owned, 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, (ii)
any general partnership, joint venture or similar entity, at least a majority of whose outstanding
partnership or similar interests shall at the time be owned by such Person, or by one or more of
its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general partner.

     “Trustee” means [                    ], and, subject to the provisions of Article Seven, shall also include
its successors and assigns, and, if at any time there is more than one Person acting in such
capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as used with respect
to a particular series of the Securities shall mean the trustee with respect to that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, subject to the
provisions of Sections 9.01, 9.02 and 10.01, as in effect at the date of execution of this
instrument.

     “Voting Stock,” as applied to stock of any Person, means shares, interests, participations or
other equivalents in the equity interest (however designated) in such Person having ordinary voting
power for the election of the directors (or the equivalent) of such Person, other than

-4-

 

shares, interests, participations or other equivalents having such power only by reason of the
occurrence of a contingency.

ARTICLE II

ISSUE, DESCRIPTION, TERMS, EXECUTION,

REGISTRATION AND EXCHANGE OF SECURITIES

SECTION 2.01 Designation and Terms of Securities.

     (a) The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited. The Securities may be issued in one or more series up to the
aggregate principal amount of Securities of that series from time to time authorized by or pursuant
to a Board Resolution of the Company or pursuant to one or more indentures supplemental hereto.
Prior to the initial issuance of Securities of any series, there shall be established in or
pursuant to a Board Resolution, and set forth in an Officers’ Certificate, or established in one or
more indentures supplemental hereto:

          (1) the title of the Security of the series (which shall distinguish the Securities of the
series from all other Securities);

          (2) any limit upon the aggregate principal amount of the Securities of that series that may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of that
series);

          (3) the date or dates on which the principal of the Securities of the series is payable and
the place(s) of payment;

          (4) the rate or rates at which the Securities of the series shall bear interest or the manner
of calculation of such rate or rates, if any;

          (5) the date or dates from which such interest shall accrue, the Interest Payment Dates on
which such interest will be payable or the manner of determination of such Interest Payment Dates,
the place(s) of payment, and the record date for the determination of holders to whom interest is
payable on any such Interest Payment Dates;

          (6) the right, if any, to extend the interest payment periods and the duration of such
extension;

          (7) the period or periods within which, the price or prices at which and the terms and
conditions upon which, Securities of the series may be redeemed, in whole or in part, at the option
of the Company;

          (8) the obligation, if any, of the Company to redeem or purchase Securities of the series
pursuant to any sinking fund or analogous provisions (including payments made in cash in
satisfaction of future sinking fund obligations) or at the option of a holder thereof and the
period or periods within which, the price or prices at which, and the terms and conditions upon

-5-

 

which, Securities of the series shall be redeemed or purchased, in whole or in part, pursuant
to such obligation;

          (9) the form of the Securities of the series including the form of the certificate of
authentication for such series;

          (10) if other than denominations of one thousand U.S. dollars ($1,000) or any integral
multiple thereof, the denominations in which the Securities of the series shall be issuable;

          (11) any and all other terms with respect to such series (which terms shall not be
inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including
any terms which may be required by or advisable under United States laws or regulations or
advisable in connection with the marketing of Securities of that series;

          (12) whether the Securities are issuable as a Global Security and, in such case, the identity
of the Depositary for such series;

          (13) whether the Securities will be convertible into shares of common stock or other
securities of the Company and, if so, the terms and conditions upon which such Securities will be
so convertible, including the conversion price and the conversion period;

          (14) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.01;

          (15) the subordination terms of the Securities of the series; and

          (16) any additional or different Events of Default or restrictive covenants provided for with
respect to the Securities of the series.

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to any such Board Resolution or in any
indentures supplemental hereto.

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series.

     Securities of any particular series may be issued at various times, with different dates on
which the principal or any installment of principal is payable, with different rates of interest,
if any, or different methods by which rates of interest may be determined, with different dates on
which such interest may be payable and with different redemption dates.

-6-

 

SECTION 2.02 Form of Securities and Trustee’s Certificate.

     The Securities of any series and the Trustee’s certificate of authentication to be borne by
such Securities shall be substantially of the tenor and purport as set forth in one or more
indentures supplemental hereto or as provided in a Board Resolution and as set forth in an
Officers’ Certificate and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or
as may be required to comply with any law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any stock exchange on which Securities of that series may be listed,
or to conform to usage.

SECTION 2.03 Denominations; Provisions for Payment.

     The Securities shall be issuable as registered Securities and in the denominations of one
thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.01(10). The
Securities of a particular series shall bear interest payable on the dates and at the rate
specified with respect to that series. The principal of and the interest on the Securities of any
series, as well as any premium thereon in case of redemption thereof prior to maturity, shall be
payable in the coin or currency of the United States of America that at the time is legal tender
for public and private debt, at the office or agency of the Company maintained for that purpose in
the Borough of Manhattan, the City and State of New York. Each Security shall be dated the date of
its authentication. Interest on the Securities shall be computed on the basis of a 360-day year
composed of twelve 30-day months.

     The interest installment on any Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date for Securities of that series shall be paid to the
Person in whose name said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment. In the event that any
Security of a particular series or portion thereof is called for redemption and the redemption date
is subsequent to a regular record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, interest on such Security will be paid upon presentation and surrender of
such Security as provided in Section 3.03.

     Any interest on any Security that is payable, but is not punctually paid or duly provided for,
on any Interest Payment Date for Securities of the same series (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the registered holder on the relevant regular record date by
virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its
election, as provided in clause (1) or clause (2) below:

          (1) The Company may make payment of any Defaulted Interest on Securities to the Persons in
whose names such Securities (or their respective Predecessor Securities) are registered at the
close of business on a special record date for the payment of such Defaulted Interest, which shall
be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment,
and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such

-7-

 

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 in this clause provided. Thereupon
the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall
not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less
than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such special record date and, in the name and at the expense
of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the
special record date therefor to be mailed, first class postage prepaid, to each Securityholder at
his or her address as it appears in the Security Register (as hereinafter defined), not less than
10 days prior to such special record date. Notice of the proposed payment of such Defaulted
Interest and the special record date therefor having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered on such special record date.

          (2) The Company may make payment of any Defaulted Interest on any Securities in any other
lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by such exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

     Unless otherwise set forth in a Board Resolution or one or more indentures supplemental hereto
establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term
“regular record date” as used in this Section with respect to a series of Securities with respect
to any Interest Payment Date for such series shall mean either the fifteenth day of the month
immediately preceding the month in which an Interest Payment Date established for such series
pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a
month, or the last day of the month immediately preceding the month in which an Interest Payment
Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest
Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.

     Subject to the foregoing provisions of this Section, each Security of a series delivered under
this Indenture upon transfer of or in exchange for or in lieu of any other Security of such series
shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such
other Security.

SECTION 2.04 Execution and Authentications.

     The Securities shall be signed on behalf of the Company by its President, or one of its Senior
Vice Presidents, or its Treasurer, or one of its Assistant Treasurers, or its Secretary, or one of
its Assistant Secretaries, under its corporate seal attested by its Secretary or one of its
Assistant Secretaries. Signatures may be in the form of a manual or facsimile signature. The
Company may use the facsimile signature of any Person who shall have been a President or Senior
Vice President thereof, or of any Person who shall have been a Secretary or Assistant Secretary
thereof, notwithstanding the fact that at the time the Securities shall be authenticated and
delivered or disposed of such Person shall have ceased to be the President or a Senior Vice

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President, or the Secretary or an Assistant Secretary, of the Company. The seal of the
Company may be in the form of a facsimile of such seal and may be impressed, affixed, imprinted or
otherwise reproduced on the Securities. The Securities may contain such notations, legends or
endorsements required by law, stock exchange rule or usage. Each Security shall be dated the date
of its authentication by the Trustee.

     A Security shall not be valid until authenticated manually by an authorized signatory of the
Trustee, or by an Authenticating Agent. Such signature shall be conclusive evidence that the
Security so authenticated has been duly authenticated and delivered hereunder and that the holder
is entitled to the benefits of this Indenture. At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of any series executed
by the Company to the Trustee for authentication, together with a written order of the Company for
the authentication and delivery of such Securities, signed by its President or any Senior Vice
President and its Secretary or any Assistant Secretary, and the Trustee in accordance with such
written order shall authenticate and deliver such Securities.

     In authenticating such Securities and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to
Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form
and terms thereof have been established in conformity with the provisions of this Indenture.

     The Trustee shall not be required to authenticate such Securities if the issue of such
Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities
under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable
to the Trustee.

SECTION 2.05 Registration of Transfer and Exchange.

     (a) Securities of any series may be exchanged upon presentation thereof at the office or
agency of the Company designated for such purpose in the Borough of Manhattan, the City and State
of New York, for other Securities of such series of authorized denominations, and for a like
aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, all as provided in this Section. In respect of any Securities so
surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office
or agency shall deliver in exchange therefor the Security or Securities of the same series that the
Securityholder making the exchange shall be entitled to receive, bearing numbers not
contemporaneously outstanding.

     (b) The Company shall keep, or cause to be kept, at its office or agency designated for such
purpose in the Borough of Manhattan, the City and State of New York, or such other location
designated by the Company a register or registers (herein referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the Company shall register
the Securities and the transfers of Securities as in this Article provided and which at all
reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of
registering Securities and transfer of Securities as herein provided shall be appointed as
authorized by a Board Resolution (the “Security Registrar”).

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     Upon surrender for transfer of any Security at the office or agency of the Company designated
for such purpose, the Company shall execute, the Trustee shall authenticate and such office or
agency shall deliver in the name of the transferee or transferees a new Security or Securities of
the same series as the Security presented for a like aggregate principal amount.

     All Securities presented or surrendered for exchange or registration of transfer, as provided
in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by
a written instrument or instruments of transfer, in form satisfactory to the Company or the
Security Registrar, duly executed by the registered holder or by such holder’s duly authorized
attorney in writing.

     (c) No service charge shall be made for any exchange or registration of transfer of
Securities, or issue of new Securities in case of partial redemption of any series, but the Company
may require payment of a sum sufficient to cover any tax or other governmental charge in relation
thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not
involving any transfer.

     (d) The Company shall not be required (1) to issue, exchange or register the transfer of any
Securities during a period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of less than all the Outstanding Securities of the same series
and ending at the close of business on the day of such mailing, nor (2) to register the transfer of
or exchange any Securities of any series or portions thereof called for redemption. The provisions
of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.

SECTION 2.06 Temporary Securities.

     Pending the preparation of definitive Securities of any series, the Company may execute, and
the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or
typewritten) of any authorized denomination. Such temporary Securities shall be substantially in
the form of the definitive Securities in lieu of which they are issued, but with such omissions,
insertions and variations as may be appropriate for temporary Securities, all as may be determined
by the Company. Every temporary Security of any series shall be executed by the Company and be
authenticated by the Trustee upon the same conditions and in substantially the same manner, and
with like effect, as the definitive Securities of such series. Without unnecessary delay the
Company will execute and will furnish definitive Securities of such series and thereupon any or all
temporary Securities of such series may be surrendered in exchange therefor (without charge to the
holders), at the office or agency of the Company designated for the purpose in the Borough of
Manhattan, the City and State of New York, and the Trustee shall authenticate and such office or
agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount
of definitive Securities of such series, unless the Company advises the Trustee to the effect that
definitive Securities need not be executed and furnished until further notice from the Company.
Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits
under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

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SECTION 2.07 Mutilated, Destroyed, Lost or Stolen Securities.

     In case any temporary or definitive Security shall become mutilated or be destroyed, lost or
stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s
request, the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the
same series, bearing a number not contemporaneously outstanding, in exchange and substitution for
the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost or
stolen. In every case the applicant for a substituted Security shall furnish to the Company and
the Trustee such security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company
and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant’s
Security and of the ownership thereof. The Trustee may authenticate any such substituted Security
and deliver the same upon the written request or authorization of any officer of the Company. Upon
the issuance of any substituted Security, the Company may require the payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith. In case any
Security that has matured or is about to mature shall become mutilated or be destroyed, lost or
stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of
the same (without surrender thereof except in the case of a mutilated Security) if the applicant
for such payment shall furnish to the Company and the Trustee such security or indemnity as they
may require to save each of them harmless, and, in case of destruction, loss or theft, evidence to
the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security
and of the ownership thereof.

     Every replacement Security issued pursuant to the provisions of this Section shall constitute
an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost
or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities
of the same series duly issued hereunder. All Securities shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and
all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment of negotiable instruments or other
securities without their surrender.

SECTION 2.08 Cancellation.

     All Securities surrendered for the purpose of payment, redemption, exchange or registration of
transfer shall, if surrendered to the Company or any paying agent, be delivered to the Trustee for
cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall
be issued in lieu thereof except as expressly required or permitted by any of the provisions of
this Indenture. On request of the Company at the time of such surrender, the Trustee shall deliver
to the Company canceled Securities held by the Trustee. In the absence of such request the Trustee
may dispose of canceled Securities in accordance with its standard procedures and deliver a
certificate of disposition to the Company. If the Company shall otherwise acquire any of the
Securities, however, such acquisition shall not operate as a

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redemption or satisfaction of the indebtedness represented by such Securities unless and until
the same are delivered to the Trustee for cancellation.

SECTION 2.09 Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give or be construed
to give to any Person, other than the parties hereto and the holders of the Securities (and, with
respect to the provisions of Article Fourteen, the holders of Senior Indebtedness), any legal or
equitable right, remedy or claim under or in respect of this Indenture, or under any covenant,
condition or provision herein contained; all such covenants, conditions and provisions being for
the sole benefit of the parties hereto and of the holders of the Securities (and, with respect to
the provisions of Article Fourteen, the holders of Senior Indebtedness).

SECTION 2.10 Authenticating Agent.

     So long as any of the Securities of any series remain Outstanding there may be an
Authenticating Agent for any or all such series of Securities which the Trustee shall have the
right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon exchange, transfer or partial redemption
thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and
shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All
references in this Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series. Each Authenticating Agent shall
be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as
most recently reported or determined by it, sufficient under the laws of any jurisdiction under
which it is organized or in which it is doing business to conduct a trust business, and that is
otherwise authorized under such laws to conduct such business and is subject to supervision or
examination by Federal or State authorities. If at any time any Authenticating Agent shall cease
to be eligible in accordance with these provisions, it shall resign immediately.

     Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall)
terminate the agency of any Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility
of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent
acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder
as if originally named as an Authenticating Agent pursuant hereto.

SECTION 2.11 Global Securities.

     (a) If the Company shall establish pursuant to Section 2.01 that the Securities of a
particular series are to be issued as a Global Security, then the Company shall execute and the
Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that
(1) shall represent, and shall be denominated in an amount equal to the aggregate principal

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amount of, all of the Outstanding Securities of such series, (2) shall be registered in the
name of the Depositary or its nominee, (3) shall be delivered by the Trustee to the Depositary or
pursuant to the Depositary’s instruction and (4) shall bear a legend substantially to the following
effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be
transferred, in whole but not in part, only to another nominee of the Depositary or to a successor
Depositary or to a nominee of such successor Depositary.”

     (b) Notwithstanding the provisions of Section 2.05, the Global Security of a series may be
transferred, in whole but not in part and in the manner provided in Section 2.05, only to another
nominee of the Depositary for such series, or to a successor Depositary for such series selected or
approved by the Company or to a nominee of such successor Depositary.

     (c) If at any time the Depositary for a series of the Securities notifies the Company that it
is unwilling or unable to continue as Depositary for such series or if at any time the Depositary
for such series shall no longer be registered or in good standing under the Exchange Act, or other
applicable statute or regulation, and a successor Depositary for such series is not appointed by
the Company within 90 days after the Company receives such notice or becomes aware of such
condition, as the case may be, this Section 2.11 shall no longer be applicable to the Securities of
such series and the Company will execute and, subject to Section 2.05, the Trustee will
authenticate and deliver the Securities of such series in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global Security. In addition,
the Company may at any time determine that the Securities of any series shall no longer be
represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply
to the Securities of such series. In such event the Company will execute and, subject to Section
2.05, the Trustee, upon receipt of an Officers’ Certificate evidencing such determination by the
Company, will authenticate and deliver the Securities of such series in definitive registered form
without coupons, in authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such Global Security. Upon
the exchange of the Global Security for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security shall be canceled by the Trustee. Such
Securities in definitive registered form issued in exchange for the Global Security pursuant to
this Section 2.11(c) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Securities to the Depositary for delivery to
the Persons in whose names such Securities are so registered.

ARTICLE III

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

SECTION 3.01 Redemption.

     The Company may redeem the Securities of any series issued hereunder on and after the dates
and in accordance with the terms established for such series pursuant to Section 2.01 hereof.

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SECTION 3.02 Notice of Redemption.

     (a) In case the Company shall desire to exercise such right to redeem all or, as the case may
be, a portion of the Securities of any series in accordance with the right reserved so to do, the
Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the
Securities of such series to be redeemed by mailing, first class postage prepaid, a notice of such
redemption not less than 30 days and not more than 90 days before the date fixed for redemption of
that series to such holders at their last addresses as they shall appear upon the Security Register
unless a shorter period is specified in the Securities to be redeemed. Any notice that is mailed
in the manner herein provided shall be conclusively presumed to have been duly given, whether or
not the registered holder receives the notice. In any case, failure duly to give such notice to
the holder of any Security of any series designated for redemption in whole or in part, or any
defect in the notice, shall not affect the validity of the proceedings for the redemption of any
other Securities of such series or any other series. In the case of any redemption of Securities
prior to the expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers’
Certificate evidencing compliance with any such restriction.

     Each such notice of redemption shall specify the date fixed for redemption and the redemption
price at which Securities of that series are to be redeemed, and shall state that payment of the
redemption price of such Securities to be redeemed will be made at the office or agency of the
Company in the Borough of Manhattan, the City and State of New York, upon presentation and
surrender of such Securities, that interest accrued to the date fixed for redemption will be paid
as specified in said notice, that from and after said date interest will cease to accrue and that
the redemption is for a sinking fund, if such is the case. If less than all the Securities of a
series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in
whole or in part shall specify the particular Securities to be so redeemed. In case any Security
is to be redeemed in part only, the notice that relates to such Security shall state the portion of
the principal amount thereof to be redeemed, and shall state that on and after the redemption date,
upon surrender of such Security, a new Security or Securities of such series in principal amount
equal to the unredeemed portion thereof will be issued.

     (b) If less than all the Securities of a series are to be redeemed, the Company shall give the
Trustee at least 45 days’ notice in advance of the date fixed for redemption as to the aggregate
principal amount of Securities of the series to be redeemed, and thereupon the Trustee shall
select, by lot or in such other manner as it shall deem appropriate and fair in its discretion and
that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars
($1,000) or any integral multiple thereof) of the principal amount of such Securities of a
denomination larger than $1,000, the Securities to be redeemed and shall thereafter promptly notify
the Company in writing of the numbers of the Securities to be redeemed, in whole or in part. The
Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by
its President or any Senior Vice President, instruct the Trustee or any paying agent to call all or
any part of the Securities of a particular series for redemption and to give notice of redemption
in the manner set forth in this Section, such notice to be in the name of the Company or its own
name as the Trustee or such paying agent may deem advisable. In any case in which notice of
redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or
cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as

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the case may be, such Security Register, transfer books or other records, or suitable copies
or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by
mail that may be required under the provisions of this Section.

SECTION 3.03 Payment Upon Redemption.

     (a) If the giving of notice of redemption shall have been completed as above provided, the
Securities or portions of Securities of the series to be redeemed specified in such notice shall
become due and payable on the date and at the place stated in such notice at the applicable
redemption price, together with interest accrued to the date fixed for redemption and interest on
such Securities or portions of Securities shall cease to accrue on and after the date fixed for
redemption, unless the Company shall default in the payment of such redemption price and accrued
interest with respect to any such Security or portion thereof. On presentation and surrender of
such Securities on or after the date fixed for redemption at the place of payment specified in the
notice, said Securities shall be paid and redeemed at the applicable redemption price for such
series, together with interest accrued thereon to the date fixed for redemption (but if the date
fixed for redemption is an interest payment date, the interest installment payable on such date
shall be payable to the registered holder at the close of business on the applicable record date
pursuant to Section 2.03).

     (b) Upon presentation of any Security of such series that is to be redeemed in part only, the
Company shall execute and the Trustee shall authenticate and the office or agency where the
Security is presented shall deliver to the holder thereof, at the expense of the Company, a new
Security of the same series of authorized denominations in principal amount equal to the unredeemed
portion of the Security so presented.

SECTION 3.04 Sinking Fund.

     The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the
retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01
for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment”. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.05.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

SECTION 3.05 Satisfaction of Sinking Fund Payments with Securities.

     The Company (a) may deliver Outstanding Securities of a series (other than any Securities
previously called for redemption) and (b) may apply as a credit Securities of a series that have
been redeemed either at the election of the Company pursuant to the terms of such Securities or
through the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of

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such Securities, provided that such Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the redemption price
specified in such Securities for redemption through operation of the sinking fund and the amount of
such sinking fund payment shall be reduced accordingly.

SECTION 3.06 Redemption of Securities for Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of the series, the portion
thereof, if any, that is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 3.05 and the basis for such credit and will, together with such Officers’
Certificate, deliver to the Trustee any Securities to be so delivered. Not less than 30 days
before each such sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 3.02. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Section 3.03.

ARTICLE IV

COVENANTS

SECTION 4.01 Payment of Principal, Premium and Interest.

     The Company will duly and punctually pay or cause to be paid the principal of (and premium, if
any) and interest on the Securities of that series at the time and place and in the manner provided
herein and established with respect to such Securities.

SECTION 4.02 Maintenance of Office or Agency.

     So long as any series of the Securities remain Outstanding, the Company agrees to maintain an
office or agency in the Borough of Manhattan, the City and State of New York, with respect to each
such series and at such other location or locations as may be designated as provided in this
Section 4.02, where (a) Securities of that series may be presented for payment, (b) Securities of
that series may be presented as herein above authorized for registration of transfer and exchange,
and (c) notices and demands to or upon the Company in respect of the Securities of that series and
this Indenture may be given or served, such designation to continue with respect to such office or
agency until the Company shall, by written notice signed by its President or a Senior Vice
President and delivered to the Trustee, designate some other office or agency for such purposes or
any of them. If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, notices and demands.

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SECTION 4.03 Paying Agents.

     (a) If the Company shall appoint one or more paying agents for all or any series of the
Securities, other than the Trustee, the Company will cause each such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to
the provisions of this Section:

          (1) that it will hold all sums held by it as such agent for the payment of the principal of
(and premium, if any) or interest on the Securities of that series (whether such sums have been
paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of
the Persons entitled thereto;

          (2) that it will give the Trustee notice of any failure by the Company (or by any other
obligor of such Securities) to make any payment of the principal of (and premium, if any) or
interest on the Securities of that series when the same shall be due and payable;

          (3) that it will, at any time during the continuance of any failure referred to in the
preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held in trust by such paying agent; and

          (4) that it will perform all other duties of paying agent as set forth in this Indenture.

     (b) If the Company shall act as its own paying agent with respect to any series of the
Securities, it will on or before each due date of the principal of (and premium, if any) or
interest on Securities of that series, set aside, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or
interest so becoming due on Securities of that series until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or
any failure (by it or any other obligor on such Securities) to take such action. Whenever the
Company shall have one or more paying agents for any series of Securities, it will, prior to each
due date of the principal of (and premium, if any) or interest on any Securities of that series,
deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will
promptly notify the Trustee of this action or failure so to act.

     (c) Notwithstanding anything in this Section to the contrary, (1) the agreement to hold sums
in trust as provided in this Section is subject to the provisions of Section 11.05, and (2) the
Company may at any time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the
same terms and conditions as those upon which such sums were held by the Company or such paying
agent; and, upon such payment by any paying agent to the Trustee, such paying agent shall be
released from all further liability with respect to such money.

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SECTION 4.04 Appointment to Fill Vacancy in Office of Trustee.

     The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will
appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a
Trustee hereunder.

ARTICLE V

SECURITYHOLDERS’ LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE

SECTION 5.01 Company to Furnish Trustee Names and Addresses of Securityholders.

     The Company will furnish or cause to be furnished to the Trustee (a) on each regular record
date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of
the names and addresses of the holders of each series of Securities as of such regular record date,
provided that the Company shall not be obligated to furnish or cause to be furnished such list at
any time that the list shall not differ in any respect from the most recent list furnished to the
Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30
days after the receipt by the Company of any such request, a list of similar form and content as of
a date not more than 15 days prior to the time such list is furnished; provided, however, that, in
either case, no such list need be furnished for any series for which the Trustee shall be the
Security Registrar.

SECTION 5.02 Preservation Of Information; Communications With Securityholders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Securities contained in the most recent
list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of
Securities received by the Trustee in its capacity as Security Registrar (if acting in such
capacity).

     (b) The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt
of a new list so furnished.

     (c) Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act
with other Securityholders with respect to their rights under this Indenture or under the
Securities. The Company, the Trustee, the Security Registrar and any other Person shall have the
protection of the Trust Indenture Act Section 312(c).

SECTION 5.03 Reports by the Company.

     (a) The Company covenants and agrees to file with the Trustee, within 15 days after the
Company is required to file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) that the Company may be
required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act;
or, if the Company is not required to file information, documents or reports

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pursuant to either of such sections, then to file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from time to time by the Commission, such of
the supplementary and periodic information, documents and reports that may be required pursuant to
Section 13 of the Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and regulations.

     (b) The Company covenants and agrees to file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from to time by the Commission, such
additional information, documents and reports with respect to compliance by the Company with the
conditions and covenants provided for in this Indenture as may be required from time to time by
such rules and regulations.

     (c) The Company covenants and agrees to transmit by mail, first class postage prepaid, or
reputable overnight delivery service that provides for evidence of receipt, to the Securityholders,
as their names and addresses appear upon the Security Register, within 30 days after the filing
thereof with the Trustee, such summaries of any information, documents and reports required to be
filed by the Company pursuant to subsections (a) and (b) of this Section as may be required by
rules and regulations prescribed from time to time by the Commission.

SECTION 5.04 Reports by the Trustee.

     (a) On or before [                    ] in each year in which any of the Securities are Outstanding, the
Trustee shall transmit by mail, first class postage prepaid, to the Securityholders, as their names
and addresses appear upon the Security Register, a brief report dated as of the preceding [                    ],
if and to the extent required under Section 313(a) of the Trust Indenture Act.

     (b) The Trustee shall comply with Sections 313(b), 313(c) and 313(d) of the Trust Indenture
Act.

     (c) A copy of each such report shall, at the time of such transmission to Securityholders, be
filed by the Trustee with the Company, with each stock exchange upon which any Securities are
listed (if so listed) and also with the Commission. The Company agrees to notify the Trustee when
any Securities become listed on any stock exchange.

     (d) If an Event of Default occurs and is continuing and the Trustee receives actual notice of
such Event of Default, the Trustee shall mail to each Securityholder notice of the uncured Event of
Default within 90 days after the occurrence thereof. Except in the case of an Event of Default in
payment of principal of, or interest on, any Securities, or in the payment of any sinking or
purchase fund installment, the Trustee may withhold the notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or Responsible Officers of
the Trustee in good faith determine that the withholding of such notice is in the interests of the
Securityholders.

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ARTICLE VI

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

SECTION 6.01 Events of Default.

     (a) Whenever used herein with respect to Securities of a particular series, “Event of Default”
means any one or more of the following events that has occurred and is continuing:

          (1) the Company defaults in the payment of any installment of interest upon any of the
Securities of that series, as and when the same shall become due and payable, and such default
continues for a period of 90 days; provided, however, that a valid extension of an interest payment
period by the Company in accordance with the terms of any indenture supplemental hereto, shall not
constitute a default in the payment of interest for this purpose;

          (2) the Company defaults in the payment of the principal of (or premium, if any, on) any of
the Securities of that series as and when the same shall become due and payable whether at
maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking
or analogous fund established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of any indenture
supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

          (3) the Company fails to observe or perform any other of its covenants or agreements with
respect to that series contained in this Indenture or otherwise established with respect to that
series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement that has
been expressly included in this Indenture solely for the benefit of one or more series of
Securities other than such series) for a period of 90 days after the date on which written notice
of such failure, requiring the same to be remedied and stating that such notice is a “Notice of
Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified
mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the
Securities of that series at the time Outstanding;

          (4) the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a
voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary
case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its
property or (iv) makes a general assignment for the benefit of its creditors; or

          (5) a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for
relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company for all
or substantially all of its property or (iii) orders the liquidation of the Company, and the order
or decree remains unstayed and in effect for 90 days.

     (b) In each and every such case, unless the principal of all the Securities of that series
shall have already become due and payable, either the Trustee or the holders of not less than 25%
in aggregate principal amount of the Securities of that series then Outstanding hereunder, by
notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare
the principal of all the Securities of that series to be due and payable immediately, and upon any
such declaration the same shall become and shall be immediately due and payable.

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     (c) At any time after the principal of the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of the moneys due shall
have been obtained or entered as hereinafter provided, the holders of a majority in aggregate
principal amount of the Securities of that series then Outstanding hereunder, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its consequences if: (1)
the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments
of interest upon all the Securities of that series and the principal of (and premium, if any, on)
all Securities of that series that shall have become due otherwise than by acceleration (with
interest upon such principal and premium, if any, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the rate per annum
expressed in the Securities of that series to the date of such payment or deposit) and any amount
payable to the Trustee under Section 7.06, and (2) any and all other Events of Default under the
Indenture with respect to such series, other than the nonpayment of principal on Securities of that
series that shall not have become due by their terms, shall have been remedied or waived as
provided in Section 6.06.

     No such rescission and annulment shall extend to or shall affect any subsequent default or
impair any right consequent thereon.

     (d) In case the Trustee shall have proceeded to enforce any right with respect to Securities
of that series under this Indenture and such proceedings shall have been discontinued or abandoned
because of such rescission or annulment or for any other reason or shall have been determined
adversely to the Trustee, then and in every such case, subject to any determination in such
proceedings, the Company and the Trustee shall be restored respectively to their former positions
and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall
continue as though no such proceedings had been taken.

SECTION 6.02 Suits for Enforcement by Trustee.

     (a) If an Event of Default specified in Section 6.01(a)(1) or (2) hereof occurs and is
continuing, the Trustee, in its own name and as trustee of an express trust, shall be entitled and
empowered to institute any action or proceedings at law or in equity for the collection of the sums
so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and
may enforce any such judgment or final decree against the Company or other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be payable in the manner
provided by law out of the property of the Company or other obligor upon the Securities of that
series, wherever situated.

     (b) In case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
readjustment, arrangement, composition or judicial proceedings affecting the Company, or its
creditors or property, the Trustee shall have power to intervene in such proceedings and take any
action therein that may be permitted by the court and shall (except as may be otherwise provided by
law) be entitled to file such proofs of claim and other papers and documents as may be necessary or
advisable in order to have the claims of the Trustee and of the holders of Securities of a series
allowed for the entire amount due and payable by the Company under this Indenture at the date of
institution of such proceedings and for any additional amount that may become due and payable by
the Company after such date, and to collect and receive any moneys or other

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property payable or deliverable on any such claim, and to distribute the same after the
deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee or
trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities
of such series to make such payments to the Trustee, and, in the event that the Trustee shall
consent to the making of such payments directly to such Securityholders, to pay to the Trustee any
amount due it under Section 7.06.

     (c) All rights of action and of asserting claims under this Indenture, or under any of the
terms established with respect to Securities of a series, may be enforced by the Trustee without
the possession of any of such Securities, or the production thereof at any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for payment to the Trustee of any amounts due under Section 7.06, be for the ratable
benefit of the holders of the Securities of such series.

     In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect
and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as
the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or
in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power granted in this
Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture
or by law.

     Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities of that series or the rights of any holder
thereof or to authorize the Trustee to vote in respect of the claim of any Securityholder in any
such proceeding.

SECTION 6.03 Application of Moneys Collected.

     Any moneys collected by the Trustee pursuant to this Article with respect to a particular
series of Securities shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such moneys on account of principal (or premium, if
any) or interest, upon presentation of the Securities of that series, and notation thereon the
payment, if only partially paid, and upon surrender thereof if fully paid:

     FIRST: To the payment of costs and expenses of collection and of all amounts payable to the
Trustee under Section 7.06;

     SECOND: To the payment of all Senior Indebtedness of the Company if and to the extent
required by Article Fourteen; and

     THIRD: To the payment of the amounts then due and unpaid upon Securities of such series for
principal (and premium, if any) and interest, in respect of which or for the benefit of which such
money has been collected, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Securities for principal (and premium, if any) and interest,
respectively.

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SECTION 6.04 Limitation on Suits.

     No holder of any Security of any series shall have any right by virtue or by availing of any
provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or
under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless (a) such holder previously shall have given to the Trustee written
notice of an Event of Default and of the continuance thereof with respect to the Securities of such
series specifying such Event of Default, as hereinbefore provided; (b) the holders of not less than
25% in aggregate principal amount of the Securities of such series then Outstanding shall have made
written request upon the Trustee to institute such action, suit or proceeding in its own name as
trustee hereunder; (c) such holder or holders shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to be incurred therein or
thereby; (d) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have failed to institute any such action, suit or proceeding; and (e) during such
60-day period, the holders of a majority in principal amount of the Securities of that series shall
not have given the Trustee a direction inconsistent with the request.

     Notwithstanding anything contained herein to the contrary, the right of any holder of any
Security to receive payment of the principal of (and premium, if any) and interest on such
Security, as therein provided, on or after the respective due dates expressed in such Security (or
in the case of redemption, on the redemption date), or to institute suit for the enforcement of any
such payment on or after such respective dates or redemption date, shall not be impaired or
affected without the consent of such holder. By accepting a Security hereunder it is expressly
understood, intended and covenanted by the taker and holder of every Security of such series with
every other such taker and holder and the Trustee, that no one or more holders of Securities of
such series shall have any right in any manner whatsoever by virtue or by availing of any provision
of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such
Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or
to enforce any right under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series. For the protection and
enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

SECTION 6.05 Rights and Remedies Cumulative; Delay or Omission Not Waiver.

     (a) All powers and remedies given by this Article to the Trustee or to the Securityholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers
and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and agreements contained in
this Indenture or otherwise established with respect to such Securities.

     (b) No delay or omission of the Trustee or of any holder of any of the Securities to exercise
any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right or power, or shall be construed to be a waiver of any such default or on
acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given
by this Article or by law to the Trustee or the Securityholders may be

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exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by
the Securityholders.

SECTION 6.06 Control by Securityholders.

     The holders of a majority in aggregate principal amount of the Securities of any series at the
time Outstanding, determined in accordance with Section 8.01, shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee with respect to such series; provided,
however, that such direction shall not be in conflict with any rule of law or with this Indenture
or be unduly prejudicial to the rights of holders of Securities of any other series at the time
Outstanding determined in accordance with Section 8.01. Subject to the provisions of Section 7.01,
the Trustee shall have the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer or Officers of the Trustee, determine that the proceeding so
directed would involve the Trustee in personal liability. The holders of a majority in aggregate
principal amount of the Securities of any series at the time Outstanding affected thereby,
determined in accordance with Section 8.01, may on behalf of the holders of all of the Securities
of such series waive any past default in the performance of any of the covenants contained herein
or established pursuant to Section 2.01 with respect to such series and its consequences, except an
uncured default in the payment of the principal of (or premium, if any) or interest on, any of the
Securities of that series as and when the same shall become due by the terms of such Securities
otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all
matured installments of interest and principal and any premium has been deposited with the Trustee
(in accordance with Section 6.01(c)). Upon any such waiver, the default covered thereby shall be
deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders
of the Securities of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.

SECTION 6.07 Undertaking to Pay Costs.

     All parties to this Indenture agree, and each holder of any Securities by such holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, 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 Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Securityholder for the enforcement of the payment
of the principal of (or premium, if any) or interest on any Security of such series, on or after
the respective due dates expressed in such Security or established pursuant to this Indenture.

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ARTICLE VII

CONCERNING THE TRUSTEE

SECTION 7.01 Certain Duties and Responsibilities of Trustee.

     (a) The Trustee, prior to the occurrence of an Event of Default with respect to the Securities
of a series and after the curing of all Events of Default with respect to the Securities of that
series that may have occurred, shall undertake to perform with respect to the Securities of such
series such duties and only such duties as are specifically set forth in this Indenture, and no
implied covenants shall be read into this Indenture against the Trustee. In case an Event of
Default with respect to the Securities of a series has occurred (that has not been cured or
waived), the Trustee shall exercise with respect to Securities of that series such of the rights
and powers vested in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in the conduct of his
own affairs.

     (b) No provision of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that:

          (1) prior to the occurrence of an Event of Default with respect to the Securities of a series
and after the curing or waiving of all such Events of Default with respect to that series that may
have occurred:

               (i) the duties and obligations of the Trustee shall with respect to the Securities of such
series be determined solely by the express provisions of this Indenture, and the Trustee shall not
be liable with respect to the Securities of such series except for the performance of such duties
and obligations as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

               (ii) in the absence of bad faith on the part of the Trustee, the Trustee may with respect to
the Securities of such series conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions that by any provision hereof are specifically required to be furnished to
the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture;

          (2) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts;

          (3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the holders of not less than a majority in
principal amount of the Securities of any series at the time Outstanding relating to the time,
method and place of conducting any proceeding for any remedy available to the Trustee, or

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exercising any trust or power conferred upon the Trustee under this Indenture with respect to
the Securities of that series; and

          (4) none of the provisions contained in this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there is reasonable ground for
believing that the repayment of such funds or liability is not reasonably assured to it under the
terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

SECTION 7.02 Certain Rights of Trustee.

     Except as otherwise provided in Section 7.01:

     (a) The Trustee may rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
approval, bond, security or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties;

     (b) Any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company, by
the President or any Senior Vice President and by the Secretary or an Assistant Secretary or the
Treasurer or an Assistant Treasurer thereof (unless other evidence in respect thereof is
specifically prescribed herein);

     (c) The Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken
or suffered or omitted hereunder in good faith and in reliance thereon;

     (d) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Securityholders, pursuant to
the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities that may be incurred
therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation,
upon the occurrence of an Event of Default with respect to a series of the Securities (that has not
been cured or waived) to exercise with respect to Securities of that series such of the rights and
powers vested in it by this Indenture, and to use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in the conduct of his
own affairs;

     (e) The Trustee shall not be liable for any action taken or omitted to be taken by it in good
faith and believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Indenture;

     (f) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond, security or other papers or documents, unless requested in writing so to do
by the holders of not less than a majority in principal amount of the Outstanding

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Securities of the particular series affected thereby (determined as provided in Section 8.04);
provided, however, that if the payment within a reasonable time to the Trustee of the costs,
expenses or liabilities likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the
terms of this Indenture, the Trustee may require reasonable indemnity against such costs, expenses
or liabilities as a condition to so proceeding. The reasonable expense of every such examination
shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon
demand; and

     (g) The Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder.

SECTION 7.03 Trustee Not Responsible for Recitals or Issuance or Securities.

     (a) The recitals contained herein and in the Securities shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for the correctness of the same.

     (b) The Trustee makes no representations as to the validity or sufficiency of this Indenture
or of the Securities.

     (c) The Trustee shall not be accountable for the use or application by the Company of any of
the Securities or of the proceeds of such Securities, or for the use or application of any moneys
paid over by the Trustee in accordance with any provision of this Indenture or established pursuant
to Section 2.01, or for the use or application of any moneys received by any paying agent other
than the Trustee.

SECTION 7.04 May Hold Securities.

     The Trustee or any paying agent or Security Registrar, in its individual or any other
capacity, may become the owner or pledgee of Securities with the same rights it would have if it
were not Trustee, paying agent or Security Registrar.

SECTION 7.05 Moneys Held in Trust.

     Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which they were received,
but need not be segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any moneys received by it hereunder except such as it
may agree with the Company to pay thereon.

SECTION 7.06 Compensation and Reimbursement.

     (a) The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled
to, such reasonable compensation (which shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust), as the Company and the Trustee may from time to
time agree in writing, for all services rendered by it in the execution of the trusts

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hereby created and in the exercise and performance of any of the powers and duties hereunder
of the Trustee, and, except as otherwise expressly provided herein, the Company will pay or
reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or advance as may arise
from its negligence or bad faith. The Company also covenants to indemnify the Trustee (and its
officers, agents, directors and employees) for, and to hold it harmless against, any loss,
liability or expense incurred without negligence or bad faith on the part of the Trustee and
arising out of or in connection with the acceptance or administration of this trust, including the
costs and expenses of defending itself against any claim of liability in the premises.

     (b) The obligations of the Company under this Section to compensate and indemnify the Trustee
and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute
additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior
to that of the Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the holders of particular Securities.

SECTION 7.07 Reliance on Officers’ Certificate.

     Except as otherwise provided in Section 7.01, whenever in the administration of the provisions
of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering or omitting to take any action hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers’ Certificate delivered to the Trustee and such certificate, in the
absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee
for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

SECTION 7.08 Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section
310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with
the provisions of Section 310(b) of the Trust Indenture Act.

SECTION 7.09 Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee with respect to the Securities issued hereunder which
shall at all times be a corporation organized and doing business under the laws of the United
States of America or any State or Territory thereof or of the District of Columbia, or a
corporation or other Person permitted to act as trustee by the Commission, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus of at least 50
million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal, State,
Territorial or District of Columbia authority. If such corporation publishes reports of condition
at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of

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such corporation shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. The Company may not, nor may any Person directly or
indirectly controlling, controlled by or under common control with the Company, serve as Trustee.
In case at any time the Trustee shall cease to be eligible in accordance with the provisions of
this Section, the Trustee shall resign immediately in the manner and with the effect specified in
Section 7.10.

SECTION 7.10 Resignation and Removal; Appointment of Successor.

     (a) The Trustee or any successor hereafter appointed, may at any time resign with respect to
the Securities of one or more series by giving written notice thereof to the Company and by
transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders of
such series, as their names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee with respect to
Securities of such series by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee. If no successor trustee shall have been so appointed and have accepted
appointment within 30 days after the mailing of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a successor trustee with
respect to Securities of such series, or any Securityholder of that series who has been a bona fide
holder of a Security or Securities for at least six months may on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor trustee. Such court
may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

     (b) In case at any time any one of the following shall occur:

          (1) the Trustee shall fail to comply with the provisions of Section 7.08 after written request
therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or
Securities for at least six months; or

          (2) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09
and shall fail to resign after written request therefor by the Company or by any such
Securityholder; or

          (3) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its
property shall be appointed or consented to, or any public officer shall take charge or control of
the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation,

then, in any such case, the Company may remove the Trustee with respect to all Securities and
appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy
to the successor trustee, or, unless the Trustee’s duty to resign is stayed as provided herein, any
Securityholder who has been a bona fide holder of a Security or Securities for at least six months
may, on behalf of that holder and all others similarly situated, petition any court of

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competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee.
Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee.

     (c) The holders of a majority in aggregate principal amount of the Securities of any series at
the time Outstanding may at any time remove the Trustee with respect to such series by so notifying
the Trustee and the Company and may appoint a successor Trustee for such series with the consent of
the Company.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee with
respect to the Securities of a series pursuant to any of the provisions of this Section shall
become effective upon acceptance of appointment by the successor trustee as provided in
Section 7.11.

     (e) Any successor trustee appointed pursuant to this Section may be appointed with respect to
the Securities of one or more series or all of such series, and at any time there shall be only one
Trustee with respect to the Securities of any particular series.

SECTION 7.11 Acceptance of Appointment By Successor.

     (a) In case of the appointment hereunder of a successor trustee with respect to all
Securities, every such successor trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor trustee all property and
money held by such retiring Trustee hereunder.

     (b) In case of the appointment hereunder of a successor trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
trustee relates, (2) shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts
hereunder administered by any other such Trustee and that no Trustee shall be responsible for

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any act or failure to act on the part of any other Trustee hereunder; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein, such retiring Trustee shall with respect to
the Securities of that or those series to which the appointment of such successor trustee relates
have no further responsibility for the exercise of rights and powers or for the performance of the
duties and obligations vested in the Trustee under this Indenture, and each such successor trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor trustee relates; but, on request of the Company or any
successor trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor
trustee, to the extent contemplated by such supplemental indenture, the property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those series to which the
appointment of such successor trustee relates.

     (c) Upon request of any such successor trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor trustee all
such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may
be.

     (d) No successor trustee shall accept its appointment unless at the time of such acceptance
such successor trustee shall be qualified and eligible under this Article.

     (e) Upon acceptance of appointment by a successor trustee as provided in this Section, the
Company shall transmit notice of the succession of such trustee hereunder by mail, first class
postage prepaid, to the Securityholders, as their names and addresses appear upon the Security
Register. If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

SECTION 7.12 Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.

SECTION 7.13 Preferential Collection of Claims Against the Company.

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any
creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has

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resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the
extent included therein.

ARTICLE VIII

CONCERNING THE SECURITYHOLDERS

SECTION 8.01 Evidence of Action by Securityholders.

     Whenever in this Indenture it is provided that the holders of a majority or specified
percentage in aggregate principal amount of the Securities of a particular series may take any
action (including the making of any demand or request, the giving of any notice, consent or waiver
or the taking of any other action), the fact that at the time of taking any such action the holders
of such majority or specified percentage of that series have joined therein may be evidenced by any
instrument or any number of instruments of similar tenor executed by such holders of Securities of
that series in Person or by agent or proxy appointed in writing.

     If the Company shall solicit from the Securityholders of any series any request, demand,
authorization, direction, notice, consent, waiver or other action, the Company may, at its option,
as evidenced by an Officers’ Certificate, fix in advance a record date for such series for the
determination of Securityholders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other action, but the Company shall have no obligation to do so. If
such a record date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other action may be given before or after the record date, but only the Securityholders
of record at the close of business on the record date shall be deemed to be Securityholders for the
purposes of determining whether Securityholders of the requisite proportion of Outstanding
Securities of that series have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other action, and for that purpose the
Outstanding Securities of that series shall be computed as of the record date; provided, however,
that no such authorization, agreement or consent by such Securityholders on the record date shall
be deemed effective unless it shall become effective pursuant to the provisions of this Indenture
not later than six months after the record date.

SECTION 8.02 Proof of Execution by Securityholders.

     Subject to the provisions of Section 7.01, proof of the execution of any instrument by a
Securityholder (such proof will not require notarization) or his agent or proxy and proof of the
holding by any Person of any of the Securities shall be sufficient if made in the following manner:

     (a) The fact and date of the execution by any such Person of any instrument may be proved in
any reasonable manner acceptable to the Trustee.

     (b) The ownership of Securities shall be proved by the Security Register of such Securities or
by a certificate of the Security Registrar thereof.

     (c) The Trustee may require such additional proof of any matter referred to in this Section as
it shall deem necessary.

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SECTION 8.03 Who May be Deemed Owners.

     Prior to the due presentment for registration of transfer of any Security, the Company, the
Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name
such Security shall be registered upon the books of the Company as the absolute owner of such
Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership
or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving
payment of or on account of the principal of (and premium, if any) and (subject to Section 2.03)
interest on such Security and for all other purposes; and neither the Company nor the Trustee nor
any paying agent nor any Security Registrar shall be affected by any notice to the contrary.

SECTION 8.04 Certain Securities Owned by Company Disregarded.

     In determining whether the holders of the requisite aggregate principal amount of Securities
of a particular series have concurred in any direction, consent or waiver under this Indenture, the
Securities of that series that are owned by the Company or any other obligor on the Securities of
that series or by any Person directly or indirectly controlling or controlled by or under common
control with the Company or any other obligor on the Securities of that series shall be disregarded
and deemed not to be Outstanding for the purpose of any such determination, except that for the
purpose of determining whether the Trustee shall be protected in relying on any such direction,
consent or waiver, only Securities of such series that the Trustee actually knows are so owned
shall be so disregarded. The Securities so owned that have been pledged in good faith may be
regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any such other obligor. In case of a dispute as to
such right, any decision by the Trustee taken upon the advice of counsel shall be full protection
to the Trustee.

SECTION 8.05 Actions Binding on Future Securityholders.

     At any time prior to (but not after) the evidencing to the Trustee, as provided in Section
8.01, of the taking of any action by the holders of the majority or percentage in aggregate
principal amount of the Securities of a particular series specified in this Indenture in connection
with such action, any holder of a Security of that series that is shown by the evidence to be
included in the Securities the holders of which have consented to such action may, by filing
written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such
action so far as concerns such Security. Except as aforesaid any such action taken by the holder
of any Security shall be conclusive and binding upon such holder and upon all future holders and
owners of such Security, and of any Security issued in exchange therefor, on registration of
transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto
is made upon such Security. Any action taken by the holders of the majority or percentage in
aggregate principal amount of the Securities of a particular series specified in this Indenture in
connection with such action shall be conclusively binding upon the Company, the Trustee and the
holders of all the Securities of that series.

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ARTICLE IX

SUPPLEMENTAL INDENTURES

SECTION 9.01 Supplemental Indentures Without the Consent of Securityholders.

     In addition to any supplemental indenture otherwise authorized by this Indenture, the Company
and the Trustee may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in
effect), without the consent of the Securityholders, for one or more of the following purposes:

     (a) to cure any ambiguity, defect or inconsistency herein or in the Securities of any series;

     (b) to comply with Article Ten;

     (c) to provide for uncertificated Securities in addition to or in place of certificated
Securities;

     (d) to add to the covenants of the Company for the benefit of the holders of all or any series
of Securities (and if such covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred upon the Company;

     (e) to add to, delete from or revise the conditions, limitations and restrictions on the
authorized amount, terms, purposes of issue, authentication and delivery of Securities, as herein
set forth;

     (f) to make any change that does not adversely affect the rights of any Securityholder in any
material respect; or

     (g) to provide for the issuance of and establish the form and terms and conditions of the
Securities of any series as provided in Section 2.01, to establish the form of any certifications
required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to
add to the rights of the holders of any series of Securities.

     The Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee shall not be obligated to enter into any such supplemental
indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

     Any supplemental indenture authorized by the provisions of this Section may be executed by the
Company and the Trustee without the consent of the holders of any of the Securities at the time
Outstanding, notwithstanding any of the provisions of Section 9.02.

SECTION 9.02 Supplemental Indentures With Consent of Securityholders.

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     With the consent (evidenced as provided in Section 8.01) of the holders of not less than a
majority in aggregate principal amount of the Securities of each series affected by such
supplemental indenture or indentures at the time Outstanding, the Company, when authorized by Board
Resolutions, and the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as
then in effect) for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner not covered by Section 9.01 the rights of the holders of the Securities of
such series under this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the holders of each Security then Outstanding and affected thereby, (i)
extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof,
or reduce the rate of interest thereon, or reduce any premium payable upon the redemption thereof
or (ii) reduce the aforesaid percentage of Securities, the holders of which are required to consent
to any such supplemental indenture.

     It shall not be necessary for the consent of the Securityholders of any series affected
thereby under this Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such consent shall approve the substance thereof.

SECTION 9.03 Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture pursuant to the provisions of this Article or
of Section 10.01, this Indenture shall, with respect to such series, be and be deemed to be
modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders
of Securities of the series affected thereby shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all the terms and
conditions of any such supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

SECTION 9.04 Securities Affected by Supplemental Indentures.

     Securities of any series affected by a supplemental indenture, authenticated and delivered
after the execution of such supplemental indenture pursuant to the provisions of this Article or of
Section 10.01, may bear a notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Securities of that series so
modified as to conform, in the opinion of the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the Company,
authenticated by the Trustee and delivered in exchange for the Securities of that series then
Outstanding.

SECTION 9.05 Execution of Supplemental Indentures.

     Upon the request of the Company, accompanied by Board Resolutions authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of
Securityholders required to consent thereto as aforesaid, the Trustee shall join

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with the Company in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion but shall not be obligated to enter into such
supplemental indenture. The Trustee, subject to the provisions of Section 7.01, may receive an
Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this
Article is authorized or permitted by, and conforms to, the terms of this Article and that it is
proper for the Trustee under the provisions of this Article to join in the execution thereof;
provided, however, that such Opinion of Counsel need not be provided in connection with the
execution of a supplemental indenture that establishes the terms of a series of Securities pursuant
to Section 2.01 hereof.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage
prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to
the Securityholders of all series affected thereby as their names and addresses appear upon the
Security Register. Any failure of the Trustee to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture.

ARTICLE X

SUCCESSOR ENTITY

SECTION 10.01 Company May Consolidate, Etc.

     Nothing contained in this Indenture or in any of the Securities shall prevent any
consolidation or merger of the Company with or into any other Person (whether or not affiliated
with the Company) or successive consolidations or mergers in which the Company or its successor or
successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other
disposition of the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not affiliated with the Company
or its successor or successors) authorized to acquire and operate the same; provided, however, the
Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if
the Company is not the survivor of such transaction), sale, conveyance, transfer or other
disposition, the due and punctual payment of the principal of (premium, if any) and interest on all
of the Securities of all series in accordance with the terms of each series, according to their
tenor, and the due and punctual performance and observance of all the covenants and conditions of
this Indenture with respect to each series or established with respect to such series pursuant to
Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental
indenture (which shall conform to the provisions of the Trust Indenture Act as then in effect)
satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by
such consolidation, or into which the Company shall have been merged, or by the entity which shall
have acquired such property.

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SECTION 10.02 Successor Entity Substituted.

     (a) In case of any such consolidation, merger, sale, conveyance, transfer or other disposition
and upon the assumption by the successor entity by supplemental indenture, executed and delivered
to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the
principal of (and premium, if any) and interest on all of the Securities of all series Outstanding
and the due and punctual performance of all of the covenants and conditions of this Indenture or
established with respect to each series of the Securities pursuant to Section 2.01 to be performed
by the Company with respect to each series, such successor entity shall succeed to and be
substituted for the Company with the same effect as if it had been named as the Company herein, and
thereupon the predecessor corporation shall be relieved of all obligations and covenants under this
Indenture and the Securities.

     (b) In case of any such consolidation, merger, sale, conveyance, transfer or other
disposition, such changes in phraseology and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate.

     (c) Nothing contained in this Article shall apply to limit or impose any requirements upon the
consolidation or merger of any Person into the Company where the Company is the survivor of such
transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the
property of any other Person (whether or not affiliated with the Company).

SECTION 10.03 Evidence of Consolidation, Etc. to Trustee.

     The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as
conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other
disposition, and any such assumption, comply with the provisions of this Article.

ARTICLE XI

SATISFACTION AND DISCHARGE

SECTION 11.01 Satisfaction and Discharge of Indenture.

     If at any time: (a) the Company shall have delivered to the Trustee for cancellation all
Securities of a series theretofore authenticated (other than any Securities that have been
destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.07) and
Securities for whose payment money or Governmental Obligations have theretofore been deposited in
trust or segregated and held in trust by the Company (and thereupon repaid to the Company or
discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a
particular series not theretofore delivered to the Trustee for cancellation shall have become due
and payable, or are by their terms to 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, and the Company shall deposit or cause to be deposited with the Trustee as
trust funds the entire amount in moneys or Governmental Obligations or a combination thereof,
sufficient in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon
redemption all Securities of that series not theretofore delivered to the Trustee

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for cancellation, including principal (and premium, if any) and interest due or to become due
to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall
also pay or cause to be paid all other sums payable hereunder with respect to such series by the
Company then this Indenture shall thereupon cease to be of further effect with respect to such
series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that
shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06
and 11.05, that shall survive to such date and thereafter, and the Trustee, on demand of the
Company and at the cost and expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture with respect to such series.

SECTION 11.02 Discharge of Obligations.

     If at any time all such Securities of a particular series not heretofore delivered to the
Trustee for cancellation or that have not become due and payable as described in Section 11.01
shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds
moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption
all such Securities of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to such date of
maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company with respect to such series, then
after the date such moneys or Governmental Obligations, as the case may be, are deposited with the
Trustee, the obligations of the Company under this Indenture with respect to such series shall
cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02,
4.03, 7.06, 7.10 and 11.05 hereof that shall survive until such Securities shall mature and be
paid. Thereafter, Sections 7.06 and 11.05 shall survive.

SECTION 11.03 Deposited Moneys to be Held in Trust.

     All moneys or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01
or 11.02 shall be held in trust and shall be available for payment as due, either directly or
through any paying agent (including the Company acting as its own paying agent), to the holders of
the particular series of Securities for the payment or redemption of which such moneys or
Governmental Obligations have been deposited with the Trustee.

SECTION 11.04 Payment of Moneys Held by Paying Agents.

     In connection with the satisfaction and discharge of this Indenture all moneys or Governmental
Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand
of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all
further liability with respect to such moneys or Governmental Obligations.

SECTION 11.05 Repayment to Company.

     Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then
held by the Company, in trust for payment of principal of (and premium, if any) or interest on the
Securities of a particular series that are not applied but remain unclaimed by the holders of such
Securities for at least two years after the date upon which the principal of (and

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premium, if any) or interest on such Securities shall have respectively become due and
payable, shall be repaid to the Company or (if then held by the Company) shall be discharged from
such trust; and thereupon the paying agent and the Trustee shall be released from all further
liability with respect to such moneys or Governmental Obligations, and the holder of any of the
Securities entitled to receive such payment shall thereafter, as an unsecured general creditor,
look only to the Company for the payment thereof.

ARTICLE XII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 12.01 No Recourse.

     No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any
Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any
incorporator, stockholder, officer or director, past, present or future as such, of the Company or
of any predecessor or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood
that this Indenture and the obligations issued hereunder are solely corporate obligations, and that
no such personal liability whatever shall attach to, or is or shall be incurred by, the
incorporators, stockholders, officers or directors as such, of the Company or of any predecessor or
successor corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such incorporator, stockholder,
officer or director as such, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in this Indenture or in
any of the Securities or implied therefrom, are hereby expressly waived and released as a condition
of, and as a consideration for, the execution of this Indenture and the issuance of such
Securities.

ARTICLE XIII

MISCELLANEOUS PROVISIONS

SECTION 13.01 Effect on Successors and Assigns.

     All the covenants, stipulations, promises and agreements in this Indenture contained by or on
behalf of the Company shall bind its successors and assigns, whether so expressed or not.

SECTION 13.02 Actions by Successor.

     Any act or proceeding by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be done and performed
with like force and effect by the corresponding board, committee or officer of any corporation that
shall at the time be the lawful successor of the Company.

-39-

 

SECTION 13.03 Notices.

     Except as otherwise expressly provided herein any notice or demand that by any provision of
this Indenture is required or permitted to be given or served by the Trustee or by the holders of
Securities to or on the Company may be given or served by being deposited first class postage
prepaid in a post-office letterbox addressed (until another address is filed in writing by the
Company with the Trustee), as follows: [                    ]. Any notice, election, request or demand by the
Company or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

SECTION 13.04 Governing Law.

     This Indenture and each Security shall be deemed to be a contract made under the internal laws
of the State of New York, and for all purposes shall be construed in accordance with the laws of
said State.

SECTION 13.05 Compliance Certificates and Opinions.

     (a) Upon any application or demand by the Company to the Trustee to take any action under any
of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent have been complied with, except that in the case of any
such application or demand as to which the furnishing of such documents is specifically required by
any provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

     (b) Each certificate or opinion provided for in this Indenture and delivered to the Trustee
with respect to compliance with a condition or covenant in this Indenture shall include (1) a
statement that the Person making such certificate or opinion has read such covenant or condition;
(2) 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; (3) a statement that, in
the opinion of such Person, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such Person, such
condition or covenant has been complied with.

     (c) The Company shall furnish to the Trustee, on [                                        ] of each year, a brief
certificate from the principal executive officer, principal financial officer or principal
accounting officer as to his or her knowledge of such obligor’s compliance with all conditions and
covenants under this Indenture. For purposes of this subsection, such compliance shall be
determined without regard to any period of grace or requirement of notice provided hereunder.

SECTION 13.06 Payments on Business Days.

     Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and as set forth
in an Officers’ Certificate, or established in one or more indentures supplemental to this

-40-

 

Indenture, in any case where the date of maturity of interest or principal of any Security or
the date of redemption of any Security shall not be a Business Day, then payment of interest or
principal (and premium, if any) may be made on the next succeeding Business Day with the same force
and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue
for the period after such nominal date.

SECTION 13.07 Conflict with Trust Indenture Act.

     If and to the extent that any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed
duties shall control.

SECTION 13.08 Counterparts.

     This Indenture may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same instrument.

SECTION 13.09 Separability.

     In case any one or more of the provisions contained in this Indenture or in the Securities of
any series shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Securities, but this Indenture and such Securities shall be construed as if
such invalid or illegal or unenforceable provision had never been contained herein or therein.

SECTION 13.10 Assignment.

     The Company will have the right at all times to assign any of its rights or obligations under
this Indenture to a direct or indirect wholly owned Subsidiary of the Company, provided that, in
the event of any such assignment, the Company will remain liable for all such obligations. Subject
to the foregoing, the Indenture is binding upon and inures to the benefit of the parties thereto
and their respective successors and assigns. This Indenture may not otherwise be assigned by the
parties thereto.

ARTICLE XIV

SUBORDINATION OF SECURITIES

SECTION 14.01 Subordination Terms.

     The payment by the Company of the principal of (and premium, if any) and interest on any
series of Securities issued hereunder shall be subordinated to the extent set forth in an indenture
supplemental hereto relating to such Securities.

-41-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as
of the day and year first above written.

	 	 	 	 	 
	 	PENWEST PHARMACEUTICALS CO.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	[                    ],

as Trustee

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

-42-exv10w1

Exhibit 10.1

EXECUTION VERSION

REVOLVING CREDIT AGREEMENT

among

NISOURCE FINANCE CORP.,

as Borrower,

NISOURCE INC., as

Guarantor,

THE LENDERS PARTY HERETO,

BARCLAYS BANK PLC, as

Administrative Agent,

 

BARCLAYS CAPITAL

Sole Lead Arranger

BARCLAYS CAPITAL

Sole Book Runner

 

Dated as of September 23, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02.  Classification of Loans and Borrowings
	 	 	14	 
	SECTION 1.03.  Terms Generally
	 	 	14	 
	SECTION 1.04 . Accounting Terms; GAAP
	 	 	15	 
	 
	 	 	 	 
	ARTICLE II THE CREDITS
	 	 	15	 
	 
	 	 	 	 
	SECTION 2.01.  Commitments
	 	 	15	 
	SECTION 2.02.  Revolving Loans and Revolving Borrowings; Requests for
Borrowings
	 	 	15	 
	SECTION 2.03. [RESERVED]
	 	 	16	 
	SECTION 2.04. [RESERVED]
	 	 	16	 
	SECTION 2.05.  Funding of Borrowings
	 	 	16	 
	SECTION 2.06.  Interest Elections
	 	 	17	 
	SECTION 2.07.  Mandatory Termination or Reduction of Commitments
	 	 	18	 
	SECTION 2.08.  Mandatory Prepayments
	 	 	18	 
	SECTION 2.09.  Optional Reduction of Commitments
	 	 	19	 
	SECTION 2.10.  Repayment of Loans; Evidence of Debt
	 	 	19	 
	SECTION 2.11.  Optional Prepayment of Loans
	 	 	20	 
	SECTION 2.12.  Fees
	 	 	20	 
	SECTION 2.13.  Interest
	 	 	21	 
	SECTION 2.14.  Alternate Rate of Interest
	 	 	22	 
	SECTION 2.15.  Increased Costs
	 	 	22	 
	SECTION 2.16.  Break Funding Payments
	 	 	23	 
	SECTION 2.17.  Taxes
	 	 	24	 
	SECTION 2.18.  Payments Generally; Pro Rata Treatment; Sharing of Set-Offs
	 	 	25	 
	SECTION 2.19.  Mitigation Obligations; Replacement of Lenders
	 	 	26	 
	 
	 	 	 	 
	ARTICLE III CONDITIONS
	 	 	27	 
	 
	 	 	 	 
	SECTION 3.01.  Conditions Precedent to the Effectiveness of this Agreement
	 	 	27	 
	SECTION 3.02.  Conditions Precedent to Each Extension of Credit
	 	 	29	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	29	 
	 
	 	 	 	 
	SECTION 4.01.  Representations and Warranties of the Credit Parties
	 	 	29	 
	 
	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	32	 
	 
	 	 	 	 
	SECTION 5.01.  Affirmative Covenants
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	35	 
	 
	 	 	 	 
	SECTION 6.01.  Negative Covenants
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VII FINANCIAL COVENANT
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT
	 	 	40	 
	 
	 	 	 	 
	SECTION 8.01.  Events of Default
	 	 	40	 
	 
	 	 	 	 
	ARTICLE IX THE ADMINISTRATIVE AGENT
	 	 	43	 
	 
	 	 	 	 
	SECTION 9.01.  The Administrative Agent
	 	 	43	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE X GUARANTY
	 	 	45	 
	 
	 	 	 	 
	SECTION 10.01.  The Guaranty
	 	 	45	 
	SECTION 10.02.  Waivers
	 	 	46	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	48	 
	 
	 	 	 	 
	SECTION 11.01.  Notices
	 	 	48	 
	SECTION 11.02.  Waivers; Amendments
	 	 	49	 
	SECTION 11.03.  Expenses; Indemnity; Damage Waiver
	 	 	49	 
	SECTION
11.04.  Successors and Assigns
	 	 	51	 
	SECTION 11.05.  Survival
	 	 	54	 
	SECTION 11.06.  Counterparts; Integration; Effectiveness
	 	 	54	 
	SECTION 11.07.  Severability
	 	 	54	 
	SECTION
11.08.  Right of Setoff
	 	 	54	 
	SECTION
11.09.  Governing Law;
Jurisdiction; Consent to Service of Process
	 	 	55	 
	SECTION 11.10.  WAIVER OF JURY TRIAL
	 	 	55	 
	SECTION 11.11.  Headings
	 	 	56	 
	SECTION 11.12.  Confidentiality
	 	 	56	 
	SECTION 11.13. USA PATRIOT ACT
	 	 	56	 

 

ANNEXES, EXHIBITS AND SCHEDULES

	 	 	 
	ANNEX A

	 	Facility Fee Pricing Grid
	EXHIBIT A

	 	Form of Assignment and Acceptance
	EXHIBIT B

	 	Form of Opinion of Schiff Hardin LLP
	SCHEDULE 2.01

	 	Lenders and Commitments
	SCHEDULE 6.01(e)

	 	Existing Agreements

 

 

     REVOLVING CREDIT AGREEMENT, dated as of September 23, 2008 (this “Agreement”), among NISOURCE
FINANCE CORP., an Indiana corporation, as Borrower (the “Borrower”), NISOURCE INC., a Delaware
corporation (“NiSource”), as Guarantor (the “Guarantor”), the Sole Lead Arranger and other Lenders
from time to time party hereto, and BARCLAYS BANK PLC, as administrative agent for the Lenders
hereunder (in such capacity, the “Administrative Agent”).

WITNESSETH:

     WHEREAS, the parties are willing to enter into this Revolving Credit Agreement on the terms
and subject to the conditions herein set forth.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

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

     “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Alternate Base Rate.

     “ABR Market Rate Spread” means, at any time for any ABR Loan, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to (x) an amount equal to
(a) 85% multiplied by (b) the daily average of the Borrower’s 5-year credit default swap
mid-rate spread (as provided by the Quotation Agency) for the thirty-day period ending on
the date such ABR Loan is made, appearing on the Quotation Agency’s website on such date
minus (y) 1.00%; provided, that the ABR Market Rate Spread for ABR Loans shall in no event
be less than 0.25% or greater than 0.75%; provided, further that in the event that the ABR
Market Rate Spread is not available from the Quotation Agency, the ABR Market Rate Spread
shall be 0.75%.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

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

     “Aggregate Commitments” means the aggregate amount of the Commitments of all Lenders,
as in effect from time to time. As of the date hereof, the Aggregate Commitments equal
$500,000,000.

     “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in

 

2

effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective
date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.

     “Applicable Percentage” means, with respect to any Lender, the percentage of the Aggregate
Commitments represented by such Lender’s Commitment. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Commitments most recently in
effect, giving effect to any assignments.

     “Applicable Rate” means, for any day, (a) with respect any ABR Loan, the ABR Market Rate
Spread, (b) with respect to any Eurodollar Revolving Loan, the LIBO Market Rate Spread and (c) with
respect to the Facility Fees payable hereunder, the applicable rate per annum determined pursuant
to the Facility Fee Pricing Grid.

     “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an
assignee (with the consent of any party whose consent is required by Section 11.04), and accepted
by the Administrative Agent, in the form of Exhibit A or any other form approved by the
Administrative Agent.

     “Availability Period” means the period from and including the Effective Date to but excluding
the Termination Date.

     “Barclays” means Barclays Bank PLC, an English banking corporation.

     “Beneficiary” has the meaning set forth in Section 10.01.

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

     “Borrower” means NiSource Finance Corp., Inc. an Indiana corporation.

     “Borrowing” means Loans of the same Type, made, converted or continued on the same date and,
in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

     “Borrowing Request” means a request by the Borrower for a Revolving Borrowing in accordance
with Section 2.02.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to remain closed; provided that, when used
in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which
banks are not open for dealings in dollar deposits in the London interbank market.

 

3

     “Capital Lease” means, as to any Person, any lease of real or personal property in respect of
which the obligations of the lessee are required, in accordance with GAAP, to be capitalized on the
balance sheet of such Person.

     “Capital Stock” means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person other than a corporation (including, but not limited to, all common stock and preferred
stock and partnership, membership and joint venture interests in a Person), and any and all
warrants, rights or options to purchase any of the foregoing.

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended by the Superfund Amendments and Reauthorization Act, 42, U.S.C. Section 9601 et
seq., as amended.

     “Change of Control” means (a) any “person” or “group” within the meaning of Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended, shall become the “beneficial owner”
(as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of more than 50%
of the then outstanding voting Capital Stock of the Guarantor, (b) Continuing Directors shall cease
to constitute at least a majority of the directors constituting the Board of Directors of the
Guarantor, (c) a consolidation or merger of the Guarantor shall occur after which the holders of
the outstanding voting Capital Stock of the Guarantor immediately prior thereto hold less than 50%
of the outstanding voting Capital Stock of the surviving entity; (d) more than 50% of the
outstanding voting Capital Stock of the Guarantor shall be transferred to an entity of which the
Guarantor owns less than 50% of the outstanding voting Capital Stock; (e) there shall occur a sale
of all or substantially all of the assets of the Guarantor; or (f) the Borrower, NIPSCO or Columbia
shall cease to be a Wholly-Owned Subsidiary of the Guarantor (except to the extent otherwise
permitted under clauses (i), (ii), (iii) or (iv) of Section 6.01(b)).

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any
Lender (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such
Lender’s holding company, if any) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date of this Agreement.

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

     “Columbia” means Columbia Energy Group, a Delaware corporation.

     “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans hereunder as set forth herein, as such commitment may be (a) reduced from time to
time or terminated pursuant to Section 2.07 or Section 2.09 and (b) reduced or increased from time
to time pursuant to assignments by or to such

 

4

Lender pursuant to Section 11.04. The initial amount of each Lender’s Commitment is (x) the amount
set forth on Schedule 2.01 opposite such Lender’s name; or (y) the amount set forth in the
Assignment and Acceptance pursuant to which such Lender shall have assumed its Commitment, as
applicable.

     “Consolidated Capitalization” means the sum of (a) Consolidated Debt, (b) consolidated common
equity of the Guarantor and its Consolidated Subsidiaries determined in accordance with GAAP, and
(c) the aggregate liquidation preference of preferred stocks (other than preferred stocks subject
to mandatory redemption or repurchase) of the Guarantor and its Consolidated Subsidiaries upon
involuntary liquidation.

     “Consolidated Debt” means, at any time, the Indebtedness of the Guarantor and its Consolidated
Subsidiaries that would be classified as debt on a balance sheet of the Guarantor determined on a
consolidated basis in accordance with GAAP.

     “Consolidated Subsidiary” means, on any date, each Subsidiary of the Guarantor the accounts of
which, in accordance with GAAP, would be consolidated with those of the Guarantor in its
consolidated financial statements if such statements were prepared as of such date.

     “Contingent Guaranty” means a direct or contingent liability in respect of a Project Financing
(whether incurred by assumption, guaranty, endorsement or otherwise) that either (a) is limited to
guarantying performance of the completion of the Project that is financed by such Project Financing
or (b) is contingent upon, or the obligation to pay or perform under which is contingent upon, the
occurrence of any event other than failure of the primary obligor to pay upon final maturity
(whether by acceleration or otherwise).

     “Continuing Directors” means (a) all members of the board of directors of the Guarantor who
have held office continually since the Effective Date, and (b) all members of the board of
directors of the Guarantor who were elected as directors after the Effective Date and whose
nomination for election was approved by a vote of at least 50% of the Continuing Directors.

     “Contractual Obligation” means, as to any Person, any provision of any security issued by such
Person or of any agreement, instrument or other undertaking to which such Person is a party or by
which it or any of its property is bound.

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

     “Credit Documents” means (a) this Agreement, any promissory notes executed pursuant to Section
2.10, and any Assignment and Acceptances, (b) any certificates, opinions and other documents
required to be delivered pursuant to Section 3.01, and (c) any other documents delivered by a
Credit Party pursuant to or in connection with any one or more of the foregoing.

 

 5

     “Credit Party” means each of the Borrower and the Guarantor; and “Credit Parties” means the
Borrower and the Guarantor, collectively.

     “Debt for Borrowed Money” means, as to any Person, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, (c) all Capital Lease obligations of such Person, and (d) all
obligations of such Person under synthetic leases, tax retention operating leases, off-balance
sheet loans or other off-balance sheet financing products that, for tax purposes, are considered
indebtedness for borrowed money of the lessee but are classified as operating leases under GAAP.

     “Debt to Capitalization Ratio” means, at any time, the ratio of Consolidated Debt to
Consolidated Capitalization.

     “Default” means any event or condition that constitutes an Event of Default or that, upon
notice, lapse of time or both would, unless cured or waived, become an Event of Default.

     “Dollars” or “$” refers to lawful money of the United States of America.

     “Effective Date” means the date on which this Agreement has been executed and delivered by
each of the Borrower, the Guarantor, the initial Lenders and the Administrative Agent.

     “Environmental Laws” means any and all foreign, federal, state, local or municipal laws
(including, without limitation, common laws), rules, orders, regulations, statutes, ordinances,
codes, decrees, judgments, awards, writs, injunctions, requirements of any Governmental Authority
or other requirements of law regulating, relating to or imposing liability or standards of conduct
concerning, pollution, waste, industrial hygiene, occupational safety or health, the presence,
transport, manufacture, generation, use, handling, treatment, distribution, storage, disposal or
release of Hazardous Materials, or protection of human health, plant life or animal life, natural
resources or the environment, as now or at any time hereafter in effect.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Guarantor or any of its Subsidiaries directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment or (e) any contract,
agreement or other consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and rulings issued thereunder.

 

6

     “ERISA Affiliate” means any Person who, for purposes of Title IV of ERISA, is a member of the
Guarantor’s controlled group, or under common control with the Guarantor, within the meaning of
Section 414 of the Code and the regulations promulgated and rulings issued thereunder.

     “ERISA Event” means (a) a reportable event, within the meaning of Section 4043 of ERISA,
unless the 30-day notice requirement with respect thereto has been waived by the PBGC, (b) the
provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant
to Section 4041(a)(2) and 4041(c) of ERISA (including any such notice with respect to a plan
amendment referred to in Section 4041(e) of ERISA), (c) the withdrawal by the Guarantor or an ERISA
Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer,
as defined in Section 4001(a)(2) of ERISA, (d) the failure by the Guarantor or any ERISA Affiliate
to make a payment to a Plan required under Section 302(f)(1) of ERISA, which Section imposes a lien
for failure to make required payments, (e) the adoption of an amendment to a Plan requiring the
provision of security to such Plan, pursuant to Section 307 of ERISA, or (f) the institution by the
PBGC of proceedings to terminate a Plan, pursuant to Section 4042 of ERISA, or the occurrence of
any event or condition which may reasonably be expected to constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, a Plan.

     “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the Board,
as in effect from time to time.

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan is,
or the Loans comprising such Borrowing are, bearing interest at a rate determined by reference to
the LIBO Rate.

     “Eurodollar Rate Reserve Percentage” of any Lender for the Interest Period for any Eurodollar
Loan means the reserve percentage applicable during such Interest Period (or if more than one such
percentage shall be so applicable, the daily average of such percentages for those days in such
Interest Period during which any such percentage shall be so applicable) under regulations issued
from time to time by the Board (or any successor) for determining the maximum reserve requirement
(including, without limitation, any emergency, supplemental or other marginal reserve requirement)
for such Lender with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities having a term equal to such Interest Period.

     “Event of Default” has the meaning assigned to such term in Article VIII.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any other
recipient of any payment to be made by or on account of any obligation of the Borrower hereunder,
(a) income or franchise taxes imposed on (or measured by) its net income or net earnings by the
United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located and (b) in case of a Foreign Lender (other than an assignee
pursuant to a request by the Borrower under

 

 7

Section 2.19(d)), any withholding tax that (i) is imposed on amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party to this Agreement, except to the extent that such
Foreign Lender’s assignor (if any) was entitled, at the time of assignment, to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section 2.17(a) or (ii)
is attributable to such Foreign Lender’s failure to comply with Section 2.17 (e) when legally able
to do so.

     “Existing 2006 Credit Agreement” means that certain Amended and Restated Revolving Credit
Agreement, dated as of July 7, 2006, by and among the Borrower, as borrower, NiSource, as
guarantor, the financial institutions party thereto, and Barclays Bank PLC, as administrative agent
and LC bank, as amended or otherwise modified as of the date of this Agreement.

     “Exposure” means, with respect to any Lender at any time, such Lender’s Outstanding Loans.

     “Extension of Credit” means the making by any Lender of a Revolving Loan.

     “Facility Fee” has the meaning set forth in Section 2.12.

     “Facility Fee Pricing Grid” means the facility fee pricing grid attached hereto as Annex A.

     “Federal Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. § 101 et seq.)
as now or hereafter in effect, or any successor statute.

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

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

     “GAAP” means generally accepted accounting principles in the United States of America
consistent with those applied in the preparation of the financial statements referred to in Section
4.01(e).

     “Governmental Authority” means the government of the United States of America, any other
nation, or any political subdivision of the United States of America or
any other nation, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative,

 

8

judicial, taxing, regulatory or administrative powers or functions of or pertaining to government
and includes, in any event, an “Independent System Operator” or any entity performing a similar
function.

     “Granting Lender” has the meaning set forth in Section 11.04.

     “Guarantor” means NiSource.

     “Guaranty” means the guaranty of the Guarantor pursuant to Article X of this Agreement.

     “Hazardous Materials” means any asbestos; flammables; volatile hydrocarbons; industrial
solvents; explosive or radioactive materials; hazardous wastes; toxic substances; liquefied natural
gas; natural gas liquids; synthetic gas; oil, petroleum, or related materials and any constituents,
derivatives, or byproducts thereof or additives thereto; or any other material, substance, waste,
element or compound (including any product) regulated pursuant to any Environmental Law, including,
without limitation, substances defined as “hazardous substances,” “hazardous materials,”
“contaminants,” “pollutants,” “hazardous wastes,” “toxic substances,” “solid waste,” or “extremely
hazardous substances” in (i) CERCLA, (ii) the Hazardous Materials Transportation Act,
 49 U.S.C. Section 1801 et seq., (iii) the Resource Conservation and Recovery Act, 42 U.S.C. Section
6901 et seq., (iv) the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et
seq., (v) the Clean Air Act, 42 U.S.C. Section 7401 et seq., (vi) the Toxic Substances Control Act,
15 U.S.C. Section 2601 et seq., (vii) the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.,
or (viii) foreign, state, local or municipal law, in each case, as may be amended from time to
time.

     “Indebtedness” of any Person means (without duplication) (a) Debt for Borrowed Money, (b)
obligations of such Person to pay the deferred purchase price of property or services, except trade
accounts payable arising in the ordinary course of business which are not overdue, (c) all
obligations, contingent or otherwise, of such Person in respect of any letters of credit, bankers’
acceptances or interest rate, currency or commodity swap, cap or floor arrangements, (d) all
indebtedness of others secured by (or for which the holder of such indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the indebtedness secured thereby has been assumed, (e) all amounts payable
by such Person in connection with mandatory redemptions or repurchases of preferred stock, and (f)
obligations of such Person under direct or indirect guarantees in respect of, and obligations
(contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor
against loss in respect of, indebtedness or obligations of others of the kinds referred to in
clauses (a) through (e) above.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitee” has the meaning set forth in Section 11.03.

 

9

     “Index Debt” means the senior unsecured long-term debt securities of the Borrower, without
third-party credit enhancement provided by a Person other than the Guarantor.

     “Information” has the meaning set forth in Section 11.12.

     “Insufficiency” means, with respect to any Plan, the amount, if any, by which the present
value of all vested and unvested accrued benefits under such Plan exceeds the fair market value of
assets allocable to such benefits, all determined as of the then most recent valuation date for
such Plan using actuarial assumptions used in determining such Plan’s normal cost for purposes of
Section 4l2(b)(2)(A) of the Code.

     “Interest Election Request” means a request by the Borrower to convert or continue a Revolving
Borrowing in accordance with Section 2.06.

     “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March,
June, September and December, (b) with respect to any Eurodollar Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months’ duration, the day that is three months
after the first day of such Interest Period, and (c) with respect to any Loan, the Termination
Date.

     “Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the
date of such Borrowing and ending on the numerically corresponding day in the calendar month that
is one, two or three months thereafter, as the Borrower may elect; provided that (a) if any
Interest Period would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless such next succeeding Business Day would fall in
the next calendar month, in which case such Interest Period shall end on the next preceding
Business Day; and (b) any Interest Period that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the last calendar month
of such Interest Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which
such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective
date of the most recent conversion or continuation of such Borrowing.

     “Lenders” means the Persons listed on Schedule 2.01, including any such Person identified
thereon or in the signature pages hereto as the Sole Lead Arranger, and any other Person that shall
have become a party hereto pursuant to an Assignment and Acceptance, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Acceptance.

     “LIBO Market Rate Spread” means, with respect to any Eurodollar Borrowing for any Interest
Period, the rate per annum (rounded upwards, if necessary, to the nearest
1/100 of 1%) equal to (x) 85% multiplied by (y) the daily average of the Borrower’s 5-year
credit default swap mid-rate spread (as provided by the Quotation Agency) for the

 

 10

thirty-day period ending on the Rate Set Date (as defined below), appearing on the Quotation
Agency’s website two Business Days prior to the first day of such Interest Period (the “Rate Set
Date”); provided, that the LIBO Market Rate Spread for any Eurodollar Borrowing shall in no event
be less than 1.25% or greater than 1.75%; provided, further that in the event that the LIBO Market
Rate Spread is not available from the Quotation Agency on the Rate Set Date for any Interest
Period, the LIBO Market Rate Spread shall be 1.75% for such Interest Period.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate
appearing on Telerate Page 3750 (or on any successor or substitute page of such service, or any
successor to or substitute for such service, providing rate quotations comparable to those
currently provided on such page of such service, as determined by the Administrative Agent from
time to time for purposes of providing quotations of interest rates applicable to dollar deposits
in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior
to the commencement of such Interest Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period. In the event that such rate is not available at such time for
any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period
shall be the rate at which Dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period.

     “Lien” has the meaning set forth in Section 6.01(a).

     “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

     “Margin Stock” means margin stock within the meaning of Regulations U and X issued by the
Board.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, condition (financial or otherwise) or prospects of the Guarantor and its Subsidiaries
taken as a whole; (b) the validity or enforceability of any of Credit Documents or the rights,
remedies and benefits available to the Administrative Agent and the Lenders thereunder; or (c) the
ability of the Borrower or the Guarantor to consummate the Transactions.

     “Material Subsidiary” means at any time the Borrower, NIPSCO, Columbia, and each Subsidiary of
the Guarantor, other than the Borrower, NIPSCO and Columbia, in respect of which:

     (a) the Guarantor’s and its other Subsidiaries’ investments in and advances to such Subsidiary
and its Subsidiaries exceed 10% of the consolidated total assets of the
Guarantor and its Subsidiaries taken as a whole, as of the end of the most recent fiscal year;
or

 

11

     (b) the Guarantor’s and its other Subsidiaries’ proportionate interest in the total assets
(after intercompany eliminations) of such Subsidiary and its Subsidiaries exceeds 10% of the
consolidated total assets of the Guarantor and its Subsidiaries as of the end of the most recent
fiscal year; or

     (c) the Guarantor’s and its other Subsidiaries’ equity in the income from continuing
operations before income taxes, extraordinary items and cumulative effect of a change in accounting
principles of such Subsidiary and its Subsidiaries exceeds 10% of the consolidated income of the
Guarantor and its Subsidiaries for the most recent fiscal year.

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

     “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

     “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of
ERISA, which (a) is maintained for employees of the Borrower or an ERISA Affiliate and at least one
Person other than the Borrower and its ERISA Affiliates, or (b) was so maintained and in respect of
which the Borrower or an ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA
in the event that such plan has been or were to be terminated.

     “NIPSCO” means Northern Indiana Public Service Company, an Indiana corporation.

     “Non-Recourse Debt” means Indebtedness of the Guarantor or any of its Subsidiaries which is
incurred in connection with the acquisition, construction, sale, transfer or other disposition of
specific assets, to the extent recourse, whether contractual or as a matter of law, for non-payment
of such Indebtedness is limited (a) to such assets or (b) if such assets are (or are to be) held by
a Subsidiary formed solely for such purpose, to such Subsidiary or the Capital Stock of such
Subsidiary.

     “Obligations” means all amounts, direct or indirect, contingent or absolute, of every type or
description, and at any time existing and whenever incurred (including, without limitation, after
the commencement of any bankruptcy proceeding), owing to the Administrative Agent or any Lender
pursuant to the terms of this Agreement or any other Credit Document.

     “Other Taxes” means any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

     “Outstanding Loans” means, as to any Lender at any time, the aggregate principal amount of all
Loans made or maintained by such Lender then outstanding.

     “Participant” has the meaning set forth in Section 11.04.

 

12

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any
successor entity performing similar functions.

     “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to
the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in
respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

     “Prime Rate” means the rate of interest per annum publicly announced from time to time by
Barclays as its prime rate in effect at its principal office in New York City; each change in the
Prime Rate shall be effective from and including the date such change is publicly announced as
being effective.

     “Project” means an energy or power generation, transmission or distribution facility
(including, without limitation, a thermal energy generation, transmission or distribution facility
and an electric power generation, transmission or distribution facility (including, without
limitation, a cogeneration facility)), a gas production, transportation or distribution facility,
or a minerals extraction, processing or distribution facility, together with (a) all related
electric power transmission, fuel supply and fuel transportation facilities and power supply,
thermal energy supply, gas supply, minerals supply and fuel contracts, (b) other facilities,
services or goods that are ancillary, incidental, necessary or reasonably related to the marketing,
development, construction, management, servicing, ownership or operation of such facility, (c)
contractual arrangements with customers, suppliers and contractors in respect of such facility, and
(d) any infrastructure facility related to such facility, including, without limitation, for the
treatment or management of waste water or the treatment or remediation of waste, pollution or
potential pollutants.

     “Project Financing” means Indebtedness incurred by a Project Financing Subsidiary to finance
(a) the development and operation of the Project such Project Financing Subsidiary was formed to
develop or (b) activities incidental thereto; provided that such Indebtedness does not include
recourse to the Guarantor or any of its other Subsidiaries other than (x) recourse to the Capital
Stock in any such Project Financing Subsidiary, and (y) recourse pursuant to a Contingent Guaranty.

     “Project Financing Subsidiary” means any Subsidiary of the Guarantor (a) that (i) is not a
Material Subsidiary, and (ii) whose principal purpose is to develop a Project and activities
incidental thereto (including, without limitation, the financing and operation of such Project), or
to become a partner, member or other equity participant in a partnership, limited liability company
or other entity having such a principal purpose, and (b) substantially all the assets of which are
limited to the assets relating to the Project
being developed or Capital Stock in such partnership, limited liability company or other
entity (and substantially all of the assets of any such partnership, limited liability

 

13

company or other entity are limited to the assets relating to such Project); provided that such
Subsidiary incurs no Indebtedness other than in respect of a Project Financing.

     “Quotation Agency” means Markit Group Limited or any successor thereto.

     “Register” has the meaning set forth in Section 11.04.

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

     “Required Lenders” means Lenders having more than 50% in aggregate amount of the Commitments,
or if the Commitments shall have been terminated, of the Total Outstanding Principal.

     “Responsible Officer” of a Credit Party means any of (a) the President, the chief financial
officer, the chief accounting officer and the Treasurer of such Credit Party and (b) any other
officer of such Credit Party whose responsibilities include monitoring compliance with this
Agreement.

     “Revolving Loan” means a Loan made pursuant to Section 2.02.

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

     “Sole Lead Arranger” means Barclays.

     “SPFV” has the meaning set forth in Section 11.04.

     “Subsidiary” means, with respect to any Person, any corporation or other entity of which at
least a majority of the outstanding shares of stock or other ownership interests having by the
terms thereof ordinary voting power to elect a majority of the board of directors or other managers
of such corporation or other entity (irrespective of whether or not at the time stock or other
equity interests of any other class or classes of such corporation or other entity shall have or
might have voting power by reason of the happening of any contingency) is at the time directly or
indirectly owned or controlled by such Person or one or more of the Subsidiaries of such Person.

     “Substantial Subsidiaries” has the meaning set forth in Section 8.01.

     “Tawney Litigation” means Estate of Garrison G. Tawney, et al. v. Columbia Natural Resources,
LLC, et al., Civil Action No. 03-C-10E (Circuit Court of Roane County, West Virginia), petition for
writ of certiorari, NiSource Inc., et al. v. Estate of Tawney, et al., U.S. Supreme Court No.
08-219 and No. 08-228.

     “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority, including any interest, penalties
and additions to tax imposed thereon or in connection therewith.

 

14

     “Termination Date” means the earliest of (a) March 23, 2009 and (b) the date upon
which the Commitments are terminated pursuant to Section 8.1 or otherwise.

     “Total Outstanding Principal” means the aggregate amount of the Outstanding Loans of
all Lenders.

     “Transactions” means the execution, delivery and performance by the Borrower and the
Guarantor of this Agreement and the Borrowing of Loans hereunder.

     “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by
reference to the LIBO Rate or the Alternate Base Rate.

     “Utility Subsidiary” means a Subsidiary of the Guarantor that is subject to regulation
by a Governmental Authority (federal, state or otherwise) having authority to regulate
utilities, and any Wholly-Owned Subsidiary thereof.

     “Wholly-Owned Subsidiary” means, with respect to any Person, any corporation or other
entity of which all of the outstanding shares of stock or other ownership interests in
which, other than directors’ qualifying shares (or the equivalent thereof), are at the time
directly or indirectly owned or controlled by such Person or one or more of the
Subsidiaries of such Person.

     “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in
Sections 4201, 4203 and 4205 of ERISA.

     SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans
may be classified and referred to by Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also
may be classified and referred to by Type (e.g., a “Eurodollar Revolving Borrowing”).

     SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without limitation”. The word “or”
shall not be exclusive. The word “will” shall be construed to have the same meaning and effect as
the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such
 Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words
of similar import, shall be construed to refer to this Agreement in its entirety and not to any
particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and

 

15

properties, including cash, securities, accounts and contract rights. The terms “knowledge of”,
“awareness of” and “receipt of notice of” in relation to a Credit Party, and other similar
expressions, mean knowledge of, awareness of, or receipt of notice by, a Responsible Officer of
such Credit Party.

     SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect
from time to time; provided that, if the Borrower notifies the Administrative Agent that the
Borrower requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the Effective Date in GAAP or in the application thereof on the operation of such
provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request
an amendment to any provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then such provision shall
be interpreted on the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such provision amended in
accordance herewith.

ARTICLE II 

THE
CREDITS

     SECTION 2.01. Commitments.

     (a) Subject to the terms and conditions set forth herein, each Lender agrees to make
Revolving Loans to the Borrower from time to time during the Availability Period in an
aggregate principal amount that will not result in (i) such Lender’s Exposure exceeding such
Lender’s Commitment or (ii) the sum of the Exposures of all of the Lenders exceeding the
Aggregate Commitments.

     (b) Within the foregoing limits and subject to the terms and conditions set forth herein,
the Borrower may borrow, prepay and reborrow Revolving Loans.

     SECTION 2.02. Revolving Loans and Revolving Borrowings; Requests for Borrowings.

     (a) Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving
Loans made by the Lenders ratably in accordance with their respective Commitments. The failure
of any Lender to make any Loan required to be made by it shall not relieve any other Lender of
its obligations hereunder; provided that the Commitments of the Lenders are several and no
Lender shall be responsible for any other Lender’s failure to make Loans as required.

     (b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR
Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at
its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate
of such Lender to make such Loan; provided that any exercise of such option shall not affect
the obligation of the Borrower to repay such Loan in accordance with the terms of this
Agreement.

 

16

     (c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple of $5,000,000 and
not less than $10,000,000. At the time that each ABR Revolving Borrowing is made, such
Borrowing shall be in an aggregate amount that is an integral multiple of $100,000; provided
that an ABR Revolving Borrowing may be to an aggregate amount that is equal to the entire
unused balance of the Aggregate Commitments. Borrowings of more than one Type may be
outstanding at the same time; provided that there shall not at any time be more than a total
of ten Eurodollar Revolving Borrowings outstanding under this Agreement.

     (d) To request a Revolving Borrowing, the Borrower shall notify the Administrative Agent
of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00
a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b)
in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of
the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall
be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower.
Each such telephonic and written Borrowing Request shall specify the following information:

     (i) the aggregate amount of the requested Borrowing;

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

     (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

     (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the term
“Interest Period”.

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

     (e) Notwithstanding any other provision of this Agreement, the Borrower shall not be
entitled to request, or to elect to convert or continue, any Eurodollar Borrowing if the
Interest Period requested with respect thereto would end after the Termination Date.

     SECTION 2.03. [RESERVED]. [RESERVED].

     SECTION 2.05. Funding of Borrowings.

     (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds by 3:00 p.m., New York City

 

17

time, to the account of the Administrative Agent most recently designated by it for such purpose by
notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by
promptly crediting the amounts so received, in like funds, to an account established and maintained
by the Borrower at the Administrative Agent’s office in New York City.

     (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed time of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Borrower a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, the Federal Funds
Effective Rate or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If
such Lender pays such amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing.

     SECTION 2.06. Interest Elections.

     (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing
Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing
to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may
elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different
options with respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate Borrowing.

     (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would be required under
Section 2.02 if the Borrower were requesting a Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such telephonic Interest Election Request
shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Interest Election Request in a form approved by the
Administrative Agent and signed by the Borrower.

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

     (i) the Borrowing to which such Interest Election Request applies and, if different options
are being elected with respect to different portions thereof, the portions

 

18

thereof to be allocated to each resulting Borrowing (in which case the information to be
specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting
Borrowing);

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

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

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

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

     (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless
such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing
shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an
Event of Default has occurred and is continuing and the Administrative Agent, at the request
of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is
continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto.

     SECTION 2.07. Mandatory Termination or Reduction of Commitments.

Unless previously terminated, the Commitments shall terminate on the Termination Date.

     SECTION 2.08. Mandatory Prepayments.

     (a) If at any time the Total Outstanding Principal exceeds the Aggregate Commitments then
in effect for any reason whatsoever (including, without limitation, as a result of any
reduction in the Aggregate Commitments pursuant to Section 2.09), the Borrower shall prepay
Loans in such aggregate amount (together with accrued interest thereon to the extent required
by Section 2.13) as shall be
necessary so that, after giving effect to such prepayment, the Total Outstanding
Principal does not exceed the Aggregate Commitments.

 

 19

          (b) Each prepayment of Loans pursuant to this Section 2.08 shall be accompanied by the
Borrower’s payment of any amounts payable under Section 2.16 in connection with such prepayment.
Prepayments of Revolving Loans shall be applied ratably to the Loans so prepaid.

          SECTION 2.09. Optional Reduction of Commitments.

          (a) The Borrower may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an integral
multiple of $10,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if,
after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.11, the
Total Outstanding Principal would exceed the Aggregate Commitments thereafter in effect.

          (b) The Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under Section 2.09(a) at least five Business Days prior to the effective date of
such termination or reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Commitments delivered by the Borrower may state that
such notice is conditioned upon the effectiveness of other credit facilities, in which case such
notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the
specified effective date) if such condition is not satisfied. Any termination or reduction of the
Commitments shall be permanent.

          (c) Each reduction of the Commitments pursuant to this Section 2.09 shall be made ratably
among the Lenders in accordance with their respective Commitments immediately preceding such
reduction.

          SECTION 2.10. Repayment of Loans; Evidence of Debt.

          (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Revolving Loan on the Termination
Date.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

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

 

20

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

          (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after assignment pursuant
to Section 11.04) be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

          SECTION 2.11. Optional Prepayment of Loans.

          (a) The Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this
Section.

          (b) The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of
any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than
11:00 a.m., New York City time, three Business Days before the date of prepayment or (ii) in the
case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time, one Business
Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid;
provided that, if a notice of prepayment is given in connection with a conditional notice of
termination of the Commitments as contemplated by Section 2.09, then such notice of prepayment may
be revoked if such notice of termination is revoked in accordance with Section 2.09. Promptly
following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise
the Lenders of the contents thereof. Each partial prepayment of any Revolving Borrowing shall be
in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same
Type as provided in Section 2.02, it being understood that the foregoing minimum shall not apply to
the prepayment in whole of the outstanding Revolving Loans of all Lenders. Each prepayment of a
Revolving Borrowing shall be applied ratably to the Loans included in the prepaid Revolving
Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section
2.13 and by any amounts payable under Section 2.16 in connection with such prepayment.

          SECTION 2.12. Fees.

          (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
facility fee (each a “Facility Fee”), which shall accrue at the Applicable Rate on the daily amount
of the Commitment of such Lender (whether used or unused) during the period from and including the
Effective Date to but excluding the date on which such

 

21

Commitment terminates; provided that, if such Lender continues to have any Outstanding Loans after
its Commitment terminates, then such Facility Fee shall continue to accrue on the daily amount of
such Lender’s Outstanding Loans from and including the date on which its Commitment terminates to
but excluding the date on which such Lender ceases to have any Outstanding Loans. Accrued Facility
Fees shall be payable in arrears on the last day of March, June, September and December of each
year and on the date on which the Commitments terminate, commencing on the first such date to occur
after the Effective Date; provided that any Facility Fees accruing after the date on which the
Commitments terminate shall be payable on demand. All Facility Fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed (including the
first day but excluding the last day).

          (b) The Borrower agrees to pay to the Administrative Agent, for its own account and for the
account of the other Persons entitled thereto, the fees provided for in that certain fee letter
dated August 21, 2008, executed and delivered with respect to the credit facility provided for
herein, in each case, in the amounts and at the times set forth therein and in immediately
available funds.

          (c) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (for distribution, in the case of Facility Fees, to the Lenders). Fees
due and paid shall not be refundable under any circumstances.

          SECTION 2.13. Interest.

          (a) The Loans comprising each ABR Borrowing shall bear interest at a rate per annum equal to
the Alternate Base Rate plus the Applicable Rate.

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest at a rate per annum
equal to the LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable
Rate.

          (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided above or (ii) in the case of any other
amount, 2% plus the rate applicable to ABR Loans as provided above.

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

 

22

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

          SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

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

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

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing
to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective and
(ii) if any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be
made as an ABR Borrowing.

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

          (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement described in paragraph (e) of this
Section); or

          (ii) impose on any Lender or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans made by such Lender or participation therein;

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

          (b) If any Lender determines that any Change in Law regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s capital or on the
capital of its holding company, if any, as a consequence of this Agreement to a level below

 

23

that which such Lender or its holding company could have achieved but for such Change in Law
(taking into consideration its policies and the policies of its holding company with respect
to capital adequacy), then from time to time the Borrower will pay to such Lender such
additional amount or amounts as will compensate it or its holding company for any such
reduction suffered.

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

          (d) Failure or delay on the part of any Lender to demand compensation pursuant to this
Section shall not constitute a waiver of its right to demand such compensation; provided that
the Borrower shall not be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than ninety days prior to the date that such
Lender notifies the Borrower of the Change in Law giving rise to such increased costs or
reductions and of its intention to claim compensation therefor; provided, further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the
ninety day period referred to above shall be extended to include the period of retroactive
effect thereof.

          (e) The Borrower shall pay (without duplication as to amounts paid under this Section
2.15) to each Lender, so long as such Lender shall be required under regulations of the Board
to maintain reserves with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities, additional interest on the unpaid principal amount of each
Eurodollar Loan of such Lender, from the date of such Loan until such principal amount is paid
in full, at an interest rate per annum equal at all times to the remainder obtained by
subtracting (i) the LIBO Rate for the Interest Period for such Loan from (ii) the rate
obtained by dividing such LIBO Rate by a percentage equal to 100% minus the Eurodollar Rate
Reserve Percentage of such Lender for such Interest Period, payable on each date on which
interest is payable on such Loan. Such additional interest determined by such Lender and
notified to the Borrower and the Administrative Agent, accompanied by the calculation of the
amount thereof, shall be conclusive and binding for all purposes absent manifest error.

          SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any principal of
any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Revolving Loan on the date specified in any notice delivered pursuant hereto (regardless
of whether such notice is permitted to be revocable under Section 2.11(b) and is revoked in
accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section
2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and
expense attributable to such event. In the case of a Eurodollar Loan, the loss to any Lender
attributable to any such event shall be deemed to include an amount

 

24

reasonably determined by such Lender to be equal to the excess, if any, of (x) the amount of
interest that such Lender would pay for a deposit equal to the principal amount of such Loan for
the period from the date of such payment, conversion, failure or assignment to the last day of the
then current Interest Period for such Loan (or, in the case of a failure to borrow, convert or
continue, the duration of the Interest Period that would have resulted from such borrowing,
conversion or continuation) if the interest rate payable on such deposit were equal to the LIBO
Rate for such Interest Period, over (y) the amount of interest that such Lender would earn on such
principal amount for such period if such Lender were to invest such principal amount for such
period at the interest rate that would be bid by such Lender (or an affiliate of such Lender) for
dollar deposit from other banks in the eurodollar market at the commencement of such period. A
certificate of any Lender setting forth any amount or amounts that such Lender is entitled to
receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof.

          SECTION 2.17. Taxes.

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

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
(and for any Taxes imposed or asserted on or attributable to amounts payable under this
Section) paid by the Administrative Agent or such Lender, as the case may be, and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether
or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by
the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender, or by the Administrative Agent on its own
behalf or on behalf of a Lender, shall be conclusive absent manifest error.

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

 

25

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the laws of the jurisdiction in which the Borrower or the Guarantor is located, or any treaty
to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver
to the Borrower (with an additional original or a photocopy, as required under applicable rules and
procedures, to the Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed documentation prescribed
by applicable law as shall be necessary to permit such payments to be made without withholding or
at a reduced rate. Further, in those circumstances as shall be necessary to allow payments
hereunder to be made free of (or at a reduced rate of) withholding tax, each other Lender and the
Administrative Agent, as applicable, shall deliver to Borrower such documentation as the Borrower
may reasonably request in writing.

          (f) Except with the prior written consent of the Administrative Agent, all amounts payable by
a Credit Party hereunder shall be made by such Credit Party in its own name and for its own account
from within the United States by a payor that is a United States person (within the meaning of
Section 7701 of the Code).

          SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-Offs.

          (a) The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest or fees, or under Section 2.15, 2.16, 2.17 or 11.03, or otherwise) prior to
12:00 noon, New York City time, on the date when due, in immediately available funds, without
set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of
the Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative
Agent at its offices at 200 Park Avenue, New York, New York, except that payments pursuant to
Sections 2.15, 2.16, 2.17 and 11.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon
shall be payable for the period of such extension. All payments hereunder shall be made in Dollars.

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

          (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of the Obligations owing to it
resulting in such Lender receiving payment of a greater proportion of the

 

26

aggregate amount of such Obligations and accrued interest thereon than the proportion received by
any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at
face value) participations in the Revolving Loans of, or other Obligations owing to, other Lenders
to the extent necessary so that the benefit of all such payments shall be shared by the Lenders
ratably in accordance with the aggregate amount of principal of and accrued interest on their
respective Revolving Loans or other Obligations, as applicable; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by the Borrower pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans to any assignee or participant, other than to the
Guarantor, the Borrower or any other Subsidiary or Affiliate of the Guarantor (as to which the
provisions of this paragraph shall apply). The Borrower and the Guarantor consent to the foregoing
and agree, to the extent they may effectively do so under applicable law, that any Lender acquiring
a participation pursuant to the foregoing arrangements may exercise against the Borrower and the
Guarantor rights of set-off and counterclaim with respect to such participation as fully as if such
Lender were a direct creditor of the Borrower or the affected Guarantor in the amount of such
participation.

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

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

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders.

          (a) Any Lender claiming reimbursement or compensation from the Borrower under either of
Sections 2.15 and 2.17 for any losses, costs or other liabilities shall use reasonable efforts
(including, without limitation, reasonable efforts to designate a different lending office of such
Lender for funding or booking its Loans or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates) to mitigate the amount of such losses, costs and
other liabilities, if such efforts can be made
and such mitigation can be accomplished without such Lender suffering (i) any economic
disadvantage for which such

 

27

Lender does not receive full indemnity from the Borrower under this Agreement or (ii)
otherwise be disadvantageous to such Lender.

          (b) In determining the amount of any claim for reimbursement or compensation under
Sections 2.15 and 2.17, each Lender will use reasonable methods of calculation consistent with
such methods customarily employed by such Lender in similar situations.

          (c) Each Lender will notify the Borrower either directly or through the Administrative
Agent of any event giving rise to a claim under Section 2.15 or Section 2.17 promptly after
the occurrence thereof which notice shall be accompanied by a certificate of such Lender
setting forth in reasonable detail the circumstances of such claim.

          (d) If any Lender requests compensation under Section 2.15, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.17, or if any Lender defaults in its obligation to
fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice to
such Lender and the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in Section 11.04), all
its interests, rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.15 or payments required to be made
pursuant to Section 2.17, such assignment will result in a reduction in such compensation or
payments. A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

ARTICLE III

CONDITIONS

          SECTION 3.01. Conditions Precedent to the Effectiveness of this Agreement. This Agreement
shall not become effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 11.02).

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

 

28

          (b) The Lenders, the Administrative Agent, the Sole Lead Arranger and each other Person
entitled to the payment of fees or the reimbursement or payment of expenses, pursuant hereto or to
that certain fee letter dated August 21, 2008, executed and delivered with respect to the credit
facility provided for herein, shall have received all fees required to be paid by the Effective
Date, and all expenses for which invoices have been presented on or before the Effective Date.

          (c) The Administrative Agent shall have received certified copies of the resolutions of the
Board of Directors of each of the Guarantor and the Borrower approving this Agreement, and of all
documents evidencing other necessary corporate action and governmental and regulatory approvals
with respect to this Agreement.

          (d) The Administrative Agent shall have received from each of the Borrower and the Guarantor,
to the extent generally available in the relevant jurisdiction, a copy of a certificate or
certificates of the Secretary of State (or other appropriate public official) of the jurisdiction
of its incorporation, dated reasonably near the Effective Date, (i) listing the charters of the
Borrower or the Guarantor, as the case may be, and each amendment thereto on file in such office
and certifying that such amendments are the only amendments to the Borrower’s or the Guarantor’s
charter, as the case may be, on file in such office, and (ii) stating, in the case of the Borrower,
that the Borrower is authorized to transact business under the laws of the jurisdiction of its
place of incorporation, and, in the case of the Guarantor, that the Guarantor is duly incorporated
and in good standing under the laws of the jurisdiction of its place of incorporation.

          (e) (i) The Administrative Agent shall have received a certificate or certificates of each of
the Borrower and the Guarantor, signed on behalf of the Borrower and the Guarantor respectively, by
a the Secretary, an Assistant Secretary or a Responsible Officer thereof, dated the Effective Date,
certifying as to (A) the absence of any amendments to the charter of the Borrower or the Guarantor,
as the case may be, since the date of the certificates referred to in paragraph (d) above, (B) a
true and correct copy of the bylaws of each of the Borrower or the Guarantor, as the case may be,
as in effect on the Effective Date, (C) the absence of any proceeding for the dissolution or
liquidation of the Borrower or the Guarantor, as the case may be, (D) the truth, in all material
respects, of the representations and warranties contained in the Credit Documents to which the
Borrower or the Guarantor is a party, as the case may be, as though made on and as of the Effective
Date, and (E) the absence, as of the Effective Date, of any Default or Event of Default; and (ii)
each of such certifications shall be true.

          (f) The Administrative Agent shall have received a certificate of the Secretary or an
Assistant Secretary of each of the Guarantor and the Borrower certifying the names and true
signatures of the officers of Guarantor or the Borrower, as the case may be,
authorized to sign, and signing, this Agreement and the other Credit Documents to be delivered
hereunder on or before the Effective Date.

          (g) The Administrative Agent shall have received for the account of each Lender an up-front
fee, payable in immediately available funds, in an amount equal to (i) 0.10% multiplied by (ii)
each such Lender’s Commitment as of the Effective Date.

 

29

          (h) The Administrative Agent shall have received from Schiff Hardin LLP, counsel for the
Guarantor and the Borrower, a favorable opinion, substantially in the form of Exhibit B hereto
and as to such other matters as any Lender through the Administrative Agent may reasonably
request.

          SECTION 3.02. Conditions Precedent to Each Extension of Credit. The obligation of each Lender
to make any Extension of Credit (including the initial Extension of Credit but excluding any
conversion or continuation of any Loan) shall be subject to the satisfaction (or waiver in
accordance with Section 11.02) of each of the following conditions:

          (a) The representations and warranties of the Guarantor and the Borrower set forth in
this Agreement (other than the representation and warranty set forth in Section 4.01(f)) shall
be true and correct in all material respects on and as of the date of such Extension of
Credit, except to the extent that such representations and warranties are specifically limited
to a prior date, in which case such representations and warranties shall be true and correct
in all material respects on and as of such prior date.

          (b) After giving effect to (A) such Extension of Credit, together with all other
Extensions of Credit to be made contemporaneously therewith, and (B) the repayment of any
Loans that are to be contemporaneously repaid at the time such Loan is made, such Extension of
Credit will not result in the sum of the then Total Outstanding Principal exceeding the
Aggregate Commitments.

          (c) Such Extension of Credit will comply with all other applicable requirements of
Article II, including, without limitation Sections 2.01 and 2.02, as applicable.

          (d) At the time of and immediately after giving effect to such Extension of Credit, no
Default or Event of Default shall have occurred and be continuing.

          (e) The Administrative Agent shall have timely received a Borrowing Request.

          (f) The sum of the “Exposures” of all of the “Lenders” under (and as such terms are
defined in) the Existing Credit Agreement is equal to the “Aggregate
Commitments” of the “Lenders” under (and as such terms are defined in) the Existing
Credit Agreement.

Each Extension of Credit and the acceptance by the Borrower of the benefits thereof shall be deemed
to constitute a representation and warranty by the Borrower on the date thereof as to the matters
specified in paragraphs (a), (b), (c) and (d) of this Section.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

          SECTION 4.01. Representations and Warranties of the Credit Parties. Each of the Borrower and
the Guarantor represents and warrants as follows:

          (a) Each of the Borrower and the Guarantor is a corporation duly organized, validly
existing and, in the case of the Borrower, authorized to transact business under the laws of

 

30

the State of its incorporation, and, in the case of the Guarantor, in good standing under the laws
of the State of its incorporation.

          (b) The execution, delivery and performance by each of the Credit Parties of the Credit
Documents to which it is a party (i) are within such Credit Party’s corporate powers, (ii) have
been duly authorized by all necessary corporate action, (iii) do not contravene (A) such Credit
Party’s charter or by-laws, as the case may be, or (B) any law, rule or regulation, or any material
Contractual Obligation or legal restriction, binding on or affecting such Credit Party or any
Material Subsidiary, as the case may be, and (iv) do not require the creation of any Lien on the
property of such Credit Party or any Material Subsidiary under any Contractual Obligation binding
on or affecting such Credit Party or any Material Subsidiary.

          (c) No authorization or approval or other action by, and no notice to or filing with, any
Governmental Authority or other Person is required for the due execution, delivery and performance
by any Credit Party of this Agreement or any other Credit Document to which any of them is a party,
except for such as (i) have been obtained or made and that are in full force and effect or (ii) are
not presently required under applicable law and have not yet been applied for.

          (d) Each Credit Document to which any Credit Party is a party is a legal, valid and binding
obligation of such Credit Party, enforceable against such Credit Party in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law.

          (e) The consolidated balance sheet of the Guarantor and its Subsidiaries as at June 30, 2008,
and the related statements of income and retained earnings of the Guarantor and its Subsidiaries
for the six months then ended, copies of which have been made available or furnished to each
Lender, fairly present (subject to year-end adjustments) the financial condition of the Guarantor
and its Subsidiaries as at such date and the results of the operations of the Guarantor and its
Subsidiaries for the period ended on such date, all in accordance with generally accepted
accounting principles consistently applied.

          (f) Since December 31, 2007, there has been no material adverse change in such condition or
operations, or in the business, assets, operations, condition (financial or otherwise) or prospects
of any of the Credit Parties or of Columbia.

          (g) There is no pending or threatened action, proceeding or investigation affecting such
Credit Party before any court, governmental agency or other Governmental Authority or arbitrator
that (taking into account the exhaustion of appeals) would have a Material Adverse Effect, or that
(i) purports to affect the legality, validity or enforceability of this Agreement or any promissory
notes executed pursuant hereto, or (ii) seeks to prohibit the ownership or operation, by any Credit
Party or any of their respective Material Subsidiaries, of all or a material portion of their
respective businesses or assets.

 

31

          (h) The Guarantor and its Subsidiaries, taken as a whole, do not hold or carry Margin Stock
having an aggregate value in excess of 10% of the value of their consolidated assets, and no part
of the proceeds of any Loan hereunder will be used to buy or carry any Margin Stock.

          (i) No ERISA Event has occurred, or is reasonably expected to occur, with respect to any Plan
that could reasonably be expected to have a Material Adverse Effect.

          (j) Schedule B (Actuarial Information) to the 2007 Annual report (Form 5500 Series) for each
Plan, copies of which have been filed with the Internal Revenue Service and made available or
furnished to each Lender, is complete and accurate and fairly presents the funding status of such
Plan, and since the date of such Schedule B there has been no adverse change in such funding status
which may reasonably be expected to have a Material Adverse Effect.

          (k) Neither the Guarantor nor any ERISA Affiliate has incurred or is reasonably expected to
incur any Withdrawal Liability to any Multiemployer Plan which may reasonably be expected to have a
Material Adverse Effect.

          (l) Neither the Guarantor nor any ERISA Affiliate has been notified by the sponsor of a
Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within
the meaning of Title VI of ERISA, and no Multiemployer Plan is reasonably expected to be in
reorganization or to be terminated, within the meaning of Title IV of ERISA, in either such case,
that could reasonably be expected to have a Material Adverse Effect.

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

          (n) The Guarantor is a “holding company” within the meaning of the Public Utility Holding
Company Act of 2005 (“PUHCA 2005”). Pursuant to PUHCA 2005, the Guarantor is subject to the limited
jurisdiction of the Federal Energy Regulatory Commission, and any State commission with
jurisdiction to regulate a public utility company in the Guarantor’s holding company system, with
respect to access to the books and records of the Guarantor and its
subsidiaries and affiliates.

          (o) Each Credit Party has filed all tax returns (Federal, state and local) required to be
filed by it and has paid or caused to be paid all taxes due for the periods covered thereby,
including interest and penalties, except for any such taxes, interest or penalties which are being
contested in good faith and by proper proceedings and in respect of which such Credit Party has set
aside adequate reserves for the payment thereof in accordance with GAAP.

          (p) Each Credit Party and its Subsidiaries are and have been in compliance with all laws
(including, without limitation, all Environmental Laws), except to the extent that
any failure to be in compliance, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

 

 

32

          (q) No Subsidiary of any Credit Party is party to, or otherwise bound by, any agreement
that prohibits such Subsidiary from making any payments, directly or indirectly, to such
Credit Party, by way of dividends, advances, repayment of loans or advances, reimbursements of
management or other intercompany charges, expenses and accruals or other returns on
investment, or any other agreement that restricts the ability of such Subsidiary to make any
payment, directly or indirectly, to such Credit Party, other than prohibitions and
restrictions permitted to exist under Section 6.01(e).

          (r) The information, exhibits and reports furnished by the Guarantor or any of its
Subsidiaries to the Administrative Agent or to any Lender in connection with the negotiation
of, or compliance with, the Credit Documents, taken as a whole, do not contain any material
misstatement of fact and do not omit to state a material fact or any fact necessary to make
the statements contained therein not misleading in light of the circumstances made.

ARTICLE V

AFFIRMATIVE COVENANTS

          SECTION 5.01. Affirmative Covenants. So long as any Lender shall have any Commitment
hereunder or any principal of any Loan, interest or fees payable hereunder shall remain unpaid,
each of the Credit Parties will, unless the Required Lenders shall otherwise consent in writing:

          (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply, in
all material respects with all applicable laws, rules, regulations and orders (including,
without limitation, any of the foregoing relating to employee health and safety or public
utilities and all Environmental Laws), unless the failure to so comply could not reasonably be
expected to have a Material Adverse Effect.

          (b) Maintenance of Properties, Etc. Maintain and preserve, and cause each Material
Subsidiary to maintain and preserve, all of its material properties which are used in the
conduct of its business in good working order and condition, ordinary wear and tear excepted,
if the failure to do so could reasonably be expected to have a Material Adverse Effect.

          (c) Payment of Taxes, Etc. Pay and discharge, and cause each of its Subsidiaries to pay
and discharge, before the same shall become delinquent, (i) all taxes, assessments and
governmental charges or levies imposed upon it or upon its property, and (ii) all legal claims
which, if unpaid, might by law become a lien upon its property; provided, however, that
neither any Credit Party nor any of its Subsidiaries shall be required to pay or discharge any
such tax, assessment, charge or claim which is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained.

          (d) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to maintain,
insurance with responsible and reputable insurance companies or associations in such amounts
and covering such risks as is usually obtained by companies engaged in similar businesses of
comparable size and financial strength and owning similar properties

 

33

in the same general areas in which such Credit Party or such Subsidiary operates, or, to the extent
such Credit Party or Subsidiary deems it reasonably prudent to do so, through its own program of
self-insurance.

          (e) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each Material
Subsidiary to preserve and maintain, its corporate existence, rights (charter and statutory) and
franchises, except as otherwise permitted under this Agreement; provided that that no such Person
shall be required to preserve any right or franchise with respect to which the Board of Directors
of such Person has determined that the preservation thereof is no longer desirable in the conduct
of the business of such Person and that the loss thereof is not disadvantageous in any material
respect to any Credit Party or the Lenders.

          (f) Visitation Rights. At any reasonable time and from time to time, permit the
Administrative Agent or any of the Lenders or any agents or representatives thereof, on not less
than five Business Days’ notice (which notice shall be required only so long as no Default shall be
occurred and be continuing), to examine and make copies of and abstracts from the records and books
of account of, and visit the properties of, such Credit Party or any of its Subsidiaries, and to
discuss the affairs, finances and accounts of the Credit Parties and their respective Subsidiaries
with any of their respective officers and with their independent certified public accountants;
subject, however, in all cases to the imposition of such conditions as the affected Credit Party or
Subsidiary shall deem necessary based on reasonable considerations of safety and security and
provided that so long as no Default or Event of Default shall have occurred and be continuing, each
Lender will be limited to one visit each year.

          (g) Keeping of Books. (i) Keep, and cause each of its Subsidiaries to keep, proper books of
record and account, in which full and correct entries shall be made of all material financial
transactions and the assets and business of each of the Credit Parties and each of their respective
Subsidiaries, and (ii) maintain, and cause each of its Subsidiaries to maintain, a system of
accounting established and administered in accordance with generally accepted accounting principles
consistently applied.

          (h) Reporting Requirements. Deliver to the Administrative Agent for distribution to the
Lenders:

          (i) as soon as available and in any event within 60 days after the end of each of the first
three quarters of each fiscal year of the Guarantor (or, if earlier, concurrently with the
filing thereof with the Securities and Exchange Commission or any national securities exchange
in accordance with applicable law or regulation), balance sheets of the Guarantor and its
Consolidated Subsidiaries in comparative form as of the end of such quarter and statements of
income and retained earnings of the Guarantor and its Consolidated Subsidiaries for the period
commencing at the end of the previous fiscal year of the Guarantor and ending with the end of
such quarter, each prepared in accordance with generally accepted accounting principles
consistently applied, subject to normal year-end audit adjustments, certified by the chief financial
officer of the Guarantor.

 

34

          (ii) as soon as available and in any event within 90 days after the end of each fiscal year of
the Guarantor (or, if earlier, concurrently with the filing thereof with the Securities and
Exchange Commission or any national securities exchange in accordance with applicable law or
regulation), a copy of the audit report for such year for the Guarantor and its Consolidated
Subsidiaries containing financial statements for such year prepared in accordance with generally
accepted accounting principles consistently applied as reported on by independent certified public
accountants of recognized national standing acceptable to the Required Lenders, which audit was
conducted by such accounting firm in accordance with generally accepted auditing standards;

          (iii) concurrently with the delivery of financial statements pursuant to clauses (i) and (ii)
above or the notice relating thereto contemplated by the final sentence of this Section 5.01(h), a
certificate of a senior financial officer of each of the Guarantor and the Borrower (A) to the
effect that no Default or Event of Default has occurred and is continuing (or, if any Default or
Event of Default has occurred and is continuing, describing the same in reasonable detail and
describing the action that the Guarantor or the Borrower, as the case may be, has taken and
proposes to take with respect thereto), and (B) in the case of the certificate relating to the
Guarantor, setting forth calculations, in reasonable detail, establishing Borrower’s compliance, as
at the end of such fiscal quarter, with the financial covenant contained in Article VII;

          (iv) as soon as possible and in any event within five days after the occurrence of each
Default or Event of Default continuing on the date of such statement, a statement of the chief
financial officer of the Borrower setting forth details of such Event of Default or event and the
action which the Borrower has taken and proposes to take with respect thereto;

          (v) promptly after the sending or filing thereof, copies of all reports which the Guarantor
sends to its stockholders, and copies of all reports and registration statements (other than
registration statements filed on Form S-8) that the Guarantor, the Borrower or any Subsidiary of
the Guarantor or the Borrower, files with the Securities and Exchange Commission;

          (vi) promptly and in any event within 10 days after the Guarantor knows or has reason to know
that any material ERISA Event has occurred, a statement of the chief financial officer of the
Borrower describing such ERISA Event and the action, if any, which the Guarantor or any affected
ERISA Affiliate proposes to take with respect thereto;

          (vii) promptly and in any event within two Business Days after receipt thereof by the
Guarantor (or knowledge being obtained by the Guarantor of the receipt thereof by any ERISA
Affiliate), copies of each notice from the PBGC stating its intention to terminate any Plan or to
have a trustee appointed to administer any Plan;

          (viii) promptly and in any event within five Business Days after receipt thereof by the
Guarantor (or knowledge being obtained by the Guarantor of the receipt thereof by any ERISA
Affiliate) from the sponsor of a Multiemployer Plan, a copy of each notice

 

35

received by the Guarantor or any ERISA Affiliate concerning (A) the imposition of material
Withdrawal Liability by a Multiemployer Plan, (B) the reorganization or termination, within
the meaning of Title IV of ERISA, of any Multiemployer Plan or (C) the amount of liability
incurred, or which may be incurred, by the Guarantor or any ERISA Affiliate in connection
with any event described in clause (A) or (B) above;

          (ix) promptly after the Guarantor has knowledge of the commencement thereof, notice of
any actions, suits and proceedings before any court or governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, affecting the Guarantor or
any Material Subsidiary of the type described in Section 4.01(g);

          (x) promptly after the Guarantor or the Borrower knows of any change in the rating of
the Index Debt by S&P or Moody’s, a notice of such changed rating; and

          (xi) such other information respecting the condition or operations, financial or
otherwise, of the Guarantor or any of its Subsidiaries as any Lender through the
Administrative Agent may from time to time reasonably request.

Notwithstanding the foregoing, the Credit Parties’ obligations to deliver the documents or
information required under any of clauses (i), (ii) and (v) above shall be deemed to be satisfied
upon (x) the relevant documents or information being publicly available on the Guarantor’s website
or other publicly available electronic medium (such as EDGAR) within the time period required by
such clause, and (y) the delivery by the Guarantor or the Borrower of notice to the Administrative
Agent and the Lenders, within the time period required by such clause, that such documents or
information are so available.

          (i) Use of Proceeds. Use the proceeds of the Loans hereunder for working capital and
other general corporate purposes, including to provide liquidity support for commercial paper
issued by the Borrower.

          (j) Ratings. At all times maintain ratings by both Moody’s and S&P with respect to the
Index Debt.

ARTICLE VI

NEGATIVE COVENANTS

          SECTION 6.01. Negative Covenants. So long as any Lender shall have any Commitment hereunder
or any principal of any Loan, interest or fees payable hereunder shall remain unpaid, no Credit
Party will, without the written consent of the Required Lenders:

          (a) Limitation on Liens. Create or suffer to exist, or permit any of its Subsidiaries
(other than a Utility Subsidiary) to create or suffer to exist, any lien, security interest,
or other charge or encumbrance (collectively, “Liens”) upon or with respect to any of its
properties, whether now owned or hereafter acquired, or collaterally assign for security
purposes, or permit any of its Subsidiaries (other than a Utility Subsidiary) to so assign any
right to receive income in each case to secure or provide for or guarantee the payment of

 

36

Debt for Borrowed Money of any Person, without in any such case effectively securing, prior to or
concurrently with the creation, issuance, assumption or guaranty of any such Debt for Borrowed
Money, the Obligations (together with, if the Guarantor shall so determine, any other Debt for
Borrowed Money of or guaranteed by the Guarantor or any of its Subsidiaries ranking equally with
the Loans and then existing or thereafter created) equally and ratably with (or prior to) such Debt
for Borrowed Money; provided, however, that the foregoing restrictions shall not apply to or
prevent the creation or existence of:

          (i) (A) Liens on any property acquired, constructed or improved by the Guarantor or any of
its Subsidiaries (other than a Utility Subsidiary) after the date of this Agreement that are
created or assumed prior to, contemporaneously with, or within 180 days after, such acquisition
or completion of such construction or improvement, to secure or provide for the payment of all
or any part of the purchase price of such property or the cost of such construction or
improvement; or (B) in addition to Liens contemplated by clauses (ii) and (iii) below, Liens on
any property existing at the time of acquisition thereof, provided that the Liens shall not
apply to any property theretofore owned by the Guarantor or any such Subsidiary other than, in
the case of any such construction or improvement, (1) unimproved real property on which the
property so constructed or the improvement is located, (2) other property (or improvements
thereon) that is an improvement to or is acquired or constructed for specific use with such
acquired or constructed property (or improvement thereof), and (3) any rights and interests (A)
under any agreements or other documents relating to, or (B) appurtenant to, the property being
so constructed or improved or such other property;

          (ii) existing Liens on any property or indebtedness of a corporation that is merged with or
into or consolidated with any Credit Party or any of its Subsidiaries; provided that such Lien
was not created in contemplation of such merger or consolidation;

          (iii) Liens on any property or indebtedness of a corporation existing at the time such
corporation becomes a Subsidiary of any Credit Party; provided that such Lien was not created in
contemplation of such occurrence;

          (iv) Liens to secure Debt for Borrowed Money of a Subsidiary of a Credit Party to a Credit
Party or to another Subsidiary of the Guarantor;

          (v) Liens in favor of the United States of America, any State, any foreign country or any
department, agency or instrumentality or political subdivision of any such jurisdiction, to
secure partial, progress, advance or other payments pursuant to any contract or statute or to
secure any Debt for Borrowed Money incurred for the purpose of financing all or any part of the
purchase price of the cost of constructing or improving the property subject to such Liens,
including, without limitation, Liens to secure Debt for Borrowed Money of the pollution control
or industrial revenue bond type;

          (vi) Liens on any property (including any natural gas, oil or other mineral property) to
secure all or part of the cost of exploration, drilling or development thereof or to secure Debt
for Borrowed Money incurred to provide funds for any such purpose;

 

37

          (vii) Liens existing on the date of this Agreement;

          (viii) Liens for the sole purposes of extending, renewing or replacing in whole or in
part Debt for Borrowed Money secured by any Lien referred to in the foregoing clauses (i)
through (vii), inclusive, or this clause (viii); provided, however, that the principal
amount of Debt for Borrowed Money secured thereby shall not exceed the principal amount of
Debt for Borrowed Money so secured at the time of such extension, renewal or replacement
(which, for purposes of this limitation as it applies to a synthetic lease, shall be deemed
to be (x) the lessor’s original cost of the property subject to such lease at the time of
extension, renewal or replacement, less (y) the aggregate amount of all prior payments
under such lease allocated pursuant to the terms of such lease to reduce the principal
amount of the lessor’s investment, and borrowings by the lessor, made to fund the original
cost of the property), and that such extension, renewal or replacement shall be limited to
all or a part of the property or indebtedness which secured the Lien so extended, renewed
or replaced (plus improvements on such property);

          (ix) Liens on any property or assets of a Project Financing Subsidiary, or on any
Capital Stock in a Project Financing Subsidiary, in either such case, that secure only a
Project Financing or a Contingent Guaranty that supports a Project Financing; or

          (x) Any Lien, other than a Lien described in any of the foregoing clauses (i) through
(ix), inclusive, to the extent that it secures Debt for Borrowed Money, or guaranties
thereof, the outstanding principal balance of which at the time of creation of such Lien,
when added to the aggregate principal balance of all Debt for Borrowed Money secured by
Liens incurred under this clause (x) then outstanding, does not exceed $150,000,000.

          If at any time any Credit Party or any of its Subsidiaries shall create, issue, assume or
guaranty any Debt for Borrowed Money secured by any Lien and the first paragraph of this Section
6.01(a) requires that the Loans be secured equally and ratably with such Debt for Borrowed Money,
the Borrower shall promptly deliver to the Administrative Agent and each Lender:

          (1) a certificate of a duly authorized officer of the Borrower stating that the
covenant contained in the first paragraph of this Section 6.01(a) has been complied with;
and

          (2) an opinion of counsel acceptable to the Required Lenders to the effect that such
covenant has been complied with and that all documents executed by any Credit Party or any
of its Subsidiaries in the performance of such covenant comply with the requirements of
such covenant.

          (b) Mergers, Etc. Merge or consolidate with or into, or, except in a transaction
permitted under paragraph (c) of this Section, convey, transfer, lease or otherwise dispose of
(whether in one transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to any Person, or permit any of its
Subsidiaries to do so, except that:

 

38

          (i) any Subsidiary of the Guarantor (other than the Borrower) may merge or consolidate with or
transfer assets to or acquire assets from any other Subsidiary of the Guarantor, provided that in
the case of any such merger, consolidation, or transfer of assets to which NIPSCO or Columbia is a
party, the continuing or surviving Person shall be a Wholly-Owned Subsidiary of the Guarantor; and

          (ii) the Borrower may merge or consolidate with, or transfer assets to, or acquire assets
from, any other Wholly-Owned Subsidiary of the Guarantor, provided that in the case of any such
merger or consolidation to which the Borrower is not the surviving Person, or transfer of all or
substantially all of the assets of the Borrower to any other Wholly-Owned Subsidiary of the
Guarantor, immediately after giving effect thereto, (A) no Event of Default shall have occurred and
be continuing (determined, for purposes of compliance with Article VII after giving effect to such
transaction, on a pro forma basis as if such transaction had occurred on the last day of the
Guarantor’s fiscal quarter then most recently ended) and (B) such surviving Person or transferee,
as applicable, shall have assumed all of the obligations of the Borrower under and in respect of
the Credit Documents by written instrument satisfactory to the Administrative Agent and its counsel
in their reasonable discretion, accompanied by such opinions of counsel and other supporting
documents as they may reasonably require; and

          (iii) any Subsidiary of the Guarantor may merge into the Guarantor or the Borrower or transfer
assets to the Borrower or the Guarantor, provided that in the case of any merger or consolidation
of the Borrower into the Guarantor or transfer of all or substantially all of the assets of the
Borrower to the Guarantor, immediately after giving effect thereto, (A) no Event of Default shall
have occurred and be continuing (determined, for purposes of compliance with Article VII after
giving effect to such transaction, on a pro forma basis as if such transaction had occurred on the
last day of the Guarantor’s fiscal quarter then most recently ended) and (B) the Guarantor shall
have assumed all of the obligations of the Borrower under and in respect of the Credit Documents by
written instrument satisfactory to the Administrative Agent and its counsel in their reasonable
discretion, accompanied by such opinions of counsel and other supporting documents as they may
reasonably require; and

          (iv) the Guarantor or any Subsidiary of the Guarantor may merge, or consolidate with or
transfer all or substantially all of its assets to any other Person; provided that in each case
under this clause (iii), immediately after giving effect thereto, (A) no Event of Default shall
have occurred and be continuing (determined, for purposes of compliance with Article VII after
giving effect to such transaction, on a pro forma basis as if such transaction had occurred on the
last day of the Guarantor’s fiscal quarter then most recently ended); (B) in the case of any such
merger, consolidation or transfer of assets to which the Borrower is a party, the Borrower shall be
the continuing or surviving corporation; (C) in the case of any such merger, consolidation, or
transfer of assets to which NIPSCO or Columbia is a party, NIPSCO or Columbia, as the case may be,
shall be the continuing or surviving corporation and shall be a Wholly-Owned Subsidiary of the
Guarantor; (D) in the case of any such merger, consolidation or transfer of assets to which the
Guarantor is a party, the Guarantor shall be the continuing or surviving

 

39

corporation; and (E) the Index Debt shall be rated at least BBB- by S&P and at least Baa3
by Moody’s.

          (c) Sales, Etc. of Assets. Sell, lease, transfer or otherwise dispose of, or permit any
of their respective Subsidiaries to sell, lease, transfer or otherwise dispose of (other than
in connection with a transaction authorized by paragraph (b) of this Section) any substantial
part of its assets; provided that the foregoing shall not prohibit any such sale, conveyance,
lease, transfer or other disposition that (i) constitutes realization on a Lien permitted to
exist under Section 6.01(a); or (ii) (A) (1) is for a price not materially less than the fair
market value of such assets, (2) would not materially impair the ability of any Credit Party
to perform its obligations under this Agreement and (3) together with all other such sales,
conveyances, leases, transfers and other dispositions, would have no Material Adverse Effect,
or (B) would not result in the sale, lease, transfer or other disposition, in the aggregate,
of more than 10% of the consolidated total assets of the Guarantor and its Subsidiaries,
determined in accordance with GAAP, on December 31, 2007.

          (d) Compliance with ERISA. (i) Terminate, or permit any ERISA Affiliate to terminate,
any Plan so as to result in a Material Adverse Effect or (ii) permit to exist any occurrence
of any Reportable Event (as defined in Title IV of ERISA), or any other event or condition,
that presents a material (in the reasonable opinion of the Required Lenders) risk of such a
termination by the PBGC of any Plan, if such termination could reasonably be expected to have
a Material Adverse Effect.

          (e) Certain Restrictions. Permit any of its Subsidiaries (other than, in the case of the
Guarantor, the Borrower) to enter into or permit to exist any agreement that by its terms
prohibits such Subsidiary from making any payments, directly or indirectly, to such Credit
Party by way of dividends, advances, repayment of loans or advances, reimbursements of
management or other intercompany charges, expenses and accruals or other returns on
investment, or any other agreement that restricts the ability of such Subsidiary to make any
payment, directly or indirectly, to such Credit Party; provided that the foregoing shall not
apply to prohibitions and restrictions (i) imposed by applicable law, (ii) (A) imposed under
an agreement in existence on the date of this Agreement, and (B) described on Schedule
6.01(e), (iii) existing with respect to a Subsidiary on the date it becomes a Subsidiary that
are not created in contemplation thereof (but shall apply to any extension or renewal of, or
any amendment or modification expanding the scope of, any such prohibition or restriction),
(iv) contained in agreements relating to the sale of a Subsidiary pending such sale, provided
that such prohibitions or restrictions apply only to the Subsidiary that is to be sold and
such sale is permitted hereunder, (v) imposed on a Project Financing Subsidiary in connection
with a Project Financing, or (vi) that could not reasonably be expected to have a Material
Adverse Effect.

ARTICLE VII

FINANCIAL COVENANT

          So long as any Lender shall have any Commitment hereunder or any principal of any Loan,
interest or fees payable hereunder shall remain unpaid, the Guarantor shall maintain a Debt to
Capitalization Ratio of not more than 0.70 to 1.00.

 

40

ARTICLE VIII

EVENTS OF DEFAULT

          SECTION 8.01. Events of Default. If any of the following events (“Events of Default”) shall
occur and be continuing:

          (a) The Borrower shall fail to pay any principal of any Loan when the same becomes due
and payable or shall fail to pay any interest, fees or other amounts hereunder within three
days after when the same becomes due and payable; or

          (b) Any representation or warranty made by any Credit Party in any Credit Document or by
any Credit Party (or any of its officers) in connection with this Agreement shall prove to
have been incorrect in any material respect when made; or

          (c) Any Credit Party shall fail to perform or observe any term, covenant or agreement
contained in Section 5.01(e), 5.01(f), 5.01(h), 5.01(i), 6.01 or Article VII; or

          (d) Any Credit Party shall fail to perform or observe any term, covenant or agreement
contained in any Credit Document on its part to be performed or observed (other than one
identified in paragraph (a), (b) or (c) above) if the failure to perform or observe such other
term, covenant or agreement shall remain unremedied for thirty days after written notice
thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or

          (e) The Guarantor, the Borrower or any of their respective Subsidiaries shall fail to pay
any principal of or premium or interest on any Indebtedness (excluding Non-Recourse Debt)
which is outstanding in a principal amount of at least $50,000,000 in the aggregate (but
excluding the Loans) of the Guarantor, the Borrower or such Subsidiary, as the case may be,
when the same becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such Indebtedness; or any
other event shall occur or condition shall exist under any agreement or instrument relating to
any such Indebtedness and shall continue after the applicable grace period, if any, specified
in such agreement or instrument, if the effect of such event or condition is to accelerate, or
to permit the acceleration of, the scheduled maturity of such Indebtedness; or any such
Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by
a regularly scheduled required prepayment), prior to the stated maturity thereof; or

          (f) Any Credit Party shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or against any Credit
Party seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian
or other similar official for it or for any substantial part of its property and, in the

 

41

case of any such proceeding instituted against any Credit Party (but not instituted by any Credit
Party), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any
of the actions sought in such proceeding (including, without limitation, the entry of an order for
relief against, or the appointment of a receiver, trustee, custodian or other similar official for,
any Credit Party or for any substantial part of its property) shall occur; or any Credit Party
shall take any corporate action to authorize any of the actions set forth above in this paragraph
(f); or

          (g) One or more Subsidiaries of the Guarantor (other than the Borrower) in which the aggregate
sum of (i) the amounts invested by the Guarantor and its other Subsidiaries in the aggregate, by
way of purchases of Capital Stock, Capital Leases, loans or otherwise, and (ii) the amount of
recourse, whether contractual or as a matter of law (but excluding Non-Recourse Debt), available to
creditors of such Subsidiary or Subsidiaries against the Guarantor or any of its other
Subsidiaries, is $100,000,000 or more (collectively, “Substantial Subsidiaries”) shall generally
not pay their respective debts as such debts become due, or shall admit in writing their respective
inability to pay their debts generally, or shall make a general assignment for the benefit of
creditors; or any proceeding shall be instituted by or against Substantial Subsidiaries seeking to
adjudicate them bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of them or their respective debts under
any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar
official for them or for any substantial part of their respective property and, in the case of any
such proceeding instituted against Substantial Subsidiaries (but not instituted by the Guarantor or
any Subsidiary of the Guarantor), either such proceeding shall remain undismissed or unstayed for a
period of 60 days, or any of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or
other similar official for, the Substantial Subsidiaries or for any substantial part of their
respective property) shall occur; or Substantial Subsidiaries shall take any corporate action to
authorize any of the actions set forth above in this paragraph (g); or

          (h) Any judgment or order for the payment of money in excess of $50,000,000 shall be rendered
against the Borrower, the Guarantor or any of its other Subsidiaries and either (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there
shall be any period of 30 consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect, except that, with
respect to the Tawney Litigation, expiration or any other failure of a stay of judgment to be in
place shall have no effect under clause (ii) of this Section 8.01(h), either as a Default or, after
lapse of time, as an Event of Default; or

          (i) Any ERISA Event shall have occurred with respect to a Plan and, 30 days after notice
thereof shall have been given to the Guarantor or the Borrower by the Administrative Agent, (i)
such ERISA Event shall still exist and (ii) the sum (determined as of the date of occurrence of
such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all other
Plans with respect to which an ERISA Event shall have occurred and then exist (or, in the case of a
Plan with respect to which an ERISA Event described in

 

42

clauses (c) through (f) of the definition of ERISA Event shall have occurred and then exist,
the liability related thereto) is equal to or greater than $10,000,000 (when aggregated with
paragraphs (j), (k) and (l) of this Section), and a Material Adverse Effect could reasonably
be expected to occur as a result thereof; or

          (j) The Guarantor or any ERISA Affiliate 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 Guarantor and its ERISA Affiliates as Withdrawal Liability (determined as of the
date of such notification), exceeds $10,000,000 or requires payments exceeding $10,000,000 per
annum (in either case, when aggregated with paragraphs (i), (k) and (l) of this Section), and
a Material Adverse Effect could reasonably be expected to occur as a result thereof; or

          (k) The Guarantor or any ERISA Affiliate 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 Guarantor and its ERISA Affiliates 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
year of each such Multiemployer Plan immediately preceding the plan year in which the
reorganization or termination occurs by an amount exceeding $10,000,000 (when aggregated with
paragraphs (i), (j) and (l) of this Section), and a Material Adverse Effect could reasonably
be expected to occur as a result thereof; or

          (l) The Guarantor or any ERISA Affiliate shall have committed a failure described in
Section 302(f)(1) of ERISA and the amount determined under Section 302(f)(3) of ERISA is equal
to or greater than $10,000,000 (when aggregated with paragraphs (i), (j) and (k) of this
Section), and a Material Adverse Effect could reasonably be expected to occur as a result
thereof; or

          (m) Any provision of the Credit Documents shall be held by a court of competent
jurisdiction to be invalid or unenforceable against any Credit Party purported to be bound
thereby, or any Credit Party shall so assert in writing; or

          (n) Any Change of Control shall occur;

then, and in any such event, the Administrative Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the Commitment of each Lender
to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request or
with the consent of the Required Lenders, by notice to the Borrower, declare all amounts payable
under this Agreement to be forthwith due and payable, whereupon all such amounts shall become and
be forthwith due and payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by the Borrower; provided that in the event of an actual
or deemed entry of an order for relief with respect to any Credit Party under the Federal
Bankruptcy Code, (1) the Commitment of each Lender hereunder shall automatically be terminated and
(2) all such amounts shall automatically become and be

 

43

due and payable, without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrower.

ARTICLE IX

THE ADMINISTRATIVE AGENT

          SECTION 9.01. The Administrative Agent.

          (a) Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent
and authorizes the Administrative Agent to take such actions on its behalf and to exercise
such powers as are delegated to the Administrative Agent by the terms hereof, together with
such actions and powers as are reasonably incidental thereto.

          (b) The Person serving as the Administrative Agent hereunder shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the same as though
it were not the Administrative Agent, and such bank and its Affiliates may accept deposits
from, lend money to and generally engage in any kind of business with the any Credit Party or
any of such Credit Party’s Subsidiaries or other Affiliates thereof as if it were not the
Administrative Agent hereunder.

          (c) The Administrative Agent shall not have any duties or obligations except those
expressly set forth herein. Without limiting the generality of the foregoing, (i) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless
of whether a Default has occurred and is continuing, (ii) the Administrative Agent shall not
have any duty to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby that the Administrative Agent is
required to exercise in writing by the Required Lenders, and (iii) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Borrower, the Guarantor or
any of its other Subsidiaries that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall
not be liable for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or, if applicable, all of the Lenders) or in the absence of its own
gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have
knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (1) any statement, warranty or
representation made in or in connection with this Agreement, (2) the contents of any
certificate, report or other document delivered hereunder or in connection herewith, (3) the
performance or observance of any of the covenants, agreements or other terms or conditions set
forth herein, (4) the validity, enforceability, effectiveness or genuineness of this Agreement
or any other agreement, instrument or document, or (5) the satisfaction of any condition set
forth in Article III or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent and the conformity thereof to such
express requirement.

 

44

          (d) The Administrative Agent shall be entitled to rely upon, and shall not incur any liability
for relying upon, any notice, request, certificate, consent, statement, instrument, document or
other writing believed by it to be genuine and to have been signed or sent by the proper Person.
The Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for a Credit
Party) independent accountants and other experts selected by it and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such counsel, accountants or
experts.

          (e) The Administrative Agent may perform any and all its duties and exercise its rights and
powers by or through any one or more sub-agents appointed by the Administrative Agent. The
Administrative Agent and any such sub-agent may perform any and all its duties and exercise its
rights and powers through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

          (f) Subject to the appointment and acceptance of a successor Administrative Agent as provided
in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the
Credit Parties. Upon any such resignation, the Required Lenders shall have the right, with the
consent of the Borrower (which consent shall not unreasonably be withheld), to appoint a successor.
If no successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice of its resignation,
then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of
any such bank, in any event having total assets in excess of $500,000,000 and who shall serve until
such time, if any, as an Agent shall have been appointed as provided above. Upon the acceptance of
its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Borrower and such
successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article
and Section 11.03 shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as Administrative Agent.

          (g) Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own

 

45

decisions in taking or not taking action under or based upon this Agreement, any related agreement
or any document furnished hereunder or thereunder.

          (h) No Lender identified on the signature pages of this Agreement as the “Sole Lead Arranger”
or that is given any other title hereunder other than “Administrative Agent”, shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other than those
applicable to all Lenders as such. Without limiting the generality of the foregoing, no Lender so
identified as the “Sole Lead Arranger” or that is given any other title hereunder, shall have, or
be deemed to have, any fiduciary relationship with any Lender. Each Lender acknowledges that it has
not relied, and will not rely, on the Lenders so identified in deciding to enter into this
Agreement or in taking or not taking action hereunder.

ARTICLE X

GUARANTY

          SECTION 10.01. The Guaranty.

          (a) The Guarantor, as primary obligor and not merely as a surety, hereby irrevocably,
absolutely and unconditionally guarantees to the Administrative Agent and the Lenders and each of
their respective successors, endorsees, transferees and assigns (each a “Beneficiary” and
collectively, the “Beneficiaries”) the prompt and complete payment by the Borrower, as and when due
and payable, of the Obligations, in accordance with the terms of the Credit Documents. The
provisions of this Article X are sometimes referred to hereinafter as the “Guaranty”.

          (b) The Guarantor hereby guarantees that the Obligations will be paid strictly in accordance
with the terms of the Credit Documents, regardless of any law now or hereafter in effect in any
jurisdiction affecting any such terms or the rights of the Beneficiaries with respect thereto. The
obligations and liabilities of the Guarantor under this Guaranty shall be absolute and
unconditional irrespective of: (i) any lack of validity or enforceability of any of the Obligations
or any Credit Document, or any delay, failure or omission to enforce or agreement not to enforce,
or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise of
any right with respect to the foregoing (including, in each case, without limitation, as a result
of the insolvency, bankruptcy or reorganization of any Beneficiary, the Borrower or any other
Person); (ii) any change in the time, manner or place of payment of, or in any other term in
respect of, all or any of the Obligations, or any other amendment or waiver of or consent to any
departure from the Credit Documents or any agreement or instrument relating thereto; (iii) any
exchange or release of, or non-perfection of any Lien on or in any collateral, or any release,
amendment or waiver of, or consent to any departure from, any other guaranty of, or agreement
granting security for, all or any of the Obligations; (iv) any claim, set-off, counterclaim,
defense or other rights that the Guarantor may have at any time and from time to time against any
Beneficiary or any other Person, whether in connection with this Transaction or any unrelated
transaction; or (v) any other circumstance that might otherwise constitute a defense available to,
or a discharge of, the
Borrower or any other guarantor or surety in respect of the Obligations or the Guarantor in
respect hereof.

 

46

          (c) The Guaranty provided for herein (i) is a guaranty of payment and not of collection;
(ii) is a continuing guaranty and shall remain in full force and effect until the Commitments
have been terminated and the Obligations have been paid in full in cash; and (iii) shall
continue to be effective or shall be reinstated, as the case may be, if at any time any
payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be
returned by any Beneficiary upon or as a result of the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Borrower or otherwise, all as though such payment had not
been made.

          (d) The obligations and liabilities of the Guarantor hereunder shall not be conditioned
or contingent upon the pursuit by any Beneficiary or any other Person at any time of any right
or remedy against the Borrower or any other Person that may be or become liable in respect of
all or any part of the Obligations or against any collateral security or guaranty therefor or
right of setoff with respect thereto.

          (e) The Guarantor hereby consents that, without the necessity of any reservation of
rights against the Guarantor and without notice to or further assent by the Guarantor, any
demand for payment of any of the Obligations made by any Beneficiary may be rescinded by such
Beneficiary and any of the Obligations continued after such rescission.

          (f) The Guarantor’s obligations under this Guaranty shall be unconditional, irrespective
of any lack of capacity of the Borrower or any lack of validity or enforceability of any other
provision of this Agreement or any other Credit Document, and this Guaranty shall not be
affected in any way by any variation, extension, waiver, compromise or release of any or all
of the Obligations or of any security or guaranty from time to time therefor.

          (g) The obligations of the Guarantor under this Guaranty shall not be reduced, limited,
impaired, discharged, deferred, suspended or terminated by any proceeding or action, voluntary
or involuntary, involving the bankruptcy, insolvency, receivership, reorganization,
marshalling of assets, assignment for the benefit of creditors, composition with creditors,
readjustment, liquidation or arrangement of the Borrower or any similar proceedings or
actions, or by any defense the Borrower may have by reason of the order, decree or decision of
any court or administrative body resulting from any such proceeding or action. Without
limiting the generality of the foregoing, the Guarantor’s liability shall extend to all
amounts and obligations that constitute the Obligations and would be owed by the Borrower, but
for the fact that they are unenforceable or not allowable due to the existence of any such
proceeding or action.

          SECTION 10.02. Waivers.

          (a) The Guarantor hereby unconditionally waives: (i) promptness and diligence; (ii)
notice of or proof of reliance by the Administrative Agent or the Lenders upon this Guaranty
or acceptance of this Guaranty; (iii) notice of the
incurrence of any Obligation by the Borrower or the renewal, extension or accrual of any
Obligation or of any circumstances affecting the Borrower’s financial condition or ability to
perform the Obligations; (iv) notice of any actions taken by the Beneficiaries or the Borrower
or any other Person under any Credit Document or any other agreement or instrument relating
thereto; (v) all other notices,

 

47

demands and protests, and all other formalities of every kind in connection with the enforcement of
the Obligations, of the obligations of the Guarantor hereunder or under any other Credit Document,
the omission of or delay in which, but for the provisions of this Section 10 might constitute
grounds for relieving the Guarantor of its obligations hereunder; (vi) any requirement that the
Beneficiaries protect, secure, perfect or insure any Lien or any property subject thereto, or
exhaust any right or take any action against the Borrower or any other Person or any collateral;
and (vii) each other circumstance, other than payment of the Obligations in full, that might
otherwise result in a discharge or exoneration of, or constitute a defense to, the Guarantor’s
obligations hereunder.

          (b) No failure on the part of any Beneficiary to exercise, and no delay in exercising, any
right, remedy, power or privilege hereunder or under any Credit Document or any other agreement or
instrument relating thereto shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder or under any Credit Document or any
other agreement or instrument relating thereto preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. This Guaranty is in addition to and
not in limitation of any other rights, remedies, powers and privileges the Beneficiaries may have
by virtue of any other instrument or agreement heretofore, contemporaneously herewith or hereafter
executed by the Guarantor or any other Person or by applicable law or otherwise. All rights,
remedies, powers and privileges of the Beneficiaries shall be cumulative and may be exercised
singly or concurrently. The rights, remedies, powers and privileges of the Beneficiaries under this
Guaranty against the Guarantor are not conditional or contingent on any attempt by the
Beneficiaries to exercise any of their rights, remedies, powers or privileges against any other
guarantor or surety or under the Credit Documents or any other agreement or instrument relating
thereto against the Borrower or against any other Person.

          (c) The Guarantor hereby acknowledges and agrees that, until the Commitments have been
terminated and all of the Obligations have been paid in full in cash, under no circumstances shall
it be entitled to be subrogated to any rights of any Beneficiary in respect of the Obligations
performed by it hereunder or otherwise, and the Guarantor hereby expressly and irrevocably waives,
until the Commitments have been terminated and all of the Obligations have been paid in full in
cash, (i) each and every such right of subrogation and any claims, reimbursements, right or right
of action relating thereto (howsoever arising), and (ii) each and every right to contribution,
indemnification, set-off or reimbursement, whether from the Borrower or any other Person now or
hereafter primarily or secondarily liable for any of the Obligations, and whether arising by
contract or operation of law or otherwise by reason of the Guarantor’s execution, delivery or
performance of this Guaranty.

          (d) The Guarantor represents and warrants that it has established adequate means of keeping
itself informed of the Borrower’s financial condition and of other circumstances affecting the
Borrower’s ability to perform the Obligations, and agrees that neither the Administrative Agent nor
any Lender shall have any obligation to provide to
the Guarantor any information it may have, or hereafter receive, in respect of the Borrower.

 

48

ARTICLE XI

MISCELLANEOUS

          SECTION 11.01. Notices. Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications provided for herein shall
be in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

	 	(a)	 	if to any Credit Party, to it at:
	 
	 		 	801 East 86th Avenue

Merrillville, Indiana 46410

Attention: Treasurer

Telecopier: (219) 647-6060;
	 
	 	 	 	with a copy to such Credit Party at:
	 
	 		 	801 East 86th Avenue

Merrillville, Indiana 46410

Attention: Director Corporate Finance and Treasury

Telecopier: (219) 647-6180;
	 
	 	(b)	 	if to the Administrative Agent, to Barclays Bank PLC at:
	 
	 		 	200 Park Avenue

New York, New York 10166

Attn: Nicholas Bell, Director, Bank Debt Management

Telecopier: (212) 412-7600
	 
	 	 	 	with a copy to such party at:
	 
	 		 	200 Cedar Knolls Road

Whippany, New Jersey 07981

Attn: May Wong, Customer Service Unit

Telephone: (973) 576-3251

Telecopier: (973) 576-3014

          (c) if to any Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.

          Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement
shall be deemed to have been given on the date of receipt.

 

49

          SECTION 11.02. Waivers; Amendments.

          (a) No failure or delay by the Administrative Agent or any Lender in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative and
are not exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of this Agreement or consent to any departure by any Credit Party therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) of this Section, and then
such waiver or consent shall be effective only in the specific instance and for the purpose for
which given. Without limiting the generality of the foregoing, no Extension of Credit shall be
construed as a waiver of any Default, regardless of whether the Administrative Agent or any Lender
may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrower, the Guarantor and
the Required Lenders or by the Borrower, the Guarantor and the Administrative Agent with the
consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment
of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any
Loan or reduce the rate of interest thereon, or reduce any fees or other amounts payable hereunder,
without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of
payment of the principal amount of any Loan or any interest thereon, or any fees or other amounts
payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment, without the written consent of each Lender affected
thereby, (iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v) release the Guarantor
from its obligations under the Guaranty without the written consent of each Lender, (vi) waive any
of the conditions precedent to the effectiveness of this Agreement set forth in Section 3.01
without the written consent of each Lender, or (vii) change any of the provisions of this Section
or the definition of “Required Lenders” or any other provision hereof specifying the number or
percentage of Lenders required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of each Lender; provided,
further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent hereunder without the prior written consent of the Administrative Agent.

          SECTION 11.03. Expenses; Indemnity; Damage Waiver.

          (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements
of counsel for the Administrative Agent, in connection with the initial
syndication of the credit facilities provided for herein, the preparation and administration
of this Agreement or any amendments, modifications or waivers of the provisions hereof

 

50

(whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all
reasonable out-of-pocket expenses incurred by the Administrative Agent or any Lender, including the
reasonable fees, charges and disbursements of any counsel for the Administrative Agent or any
Lender, in connection with the enforcement or protection of its rights in connection with this
Agreement, including its rights under this Section, or in connection with the Loans made hereunder,
including in connection with any workout, restructuring or negotiations in respect thereof.

          (b) The Borrower shall indemnify the Administrative Agent and each Lender, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and
hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related
reasonable expenses, including the reasonable fees, charges and disbursements of any counsel for
any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with,
or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective obligations
hereunder or the consummation of the Transactions or any other transaction contemplated hereby,
(ii) any Loan or the use of the proceeds therefrom, (iii) any actual or alleged presence or release
of Hazardous Materials on or from any property now, in the past or hereafter owned or operated by
the Borrower, the Guarantor or any of its other Subsidiaries, or any Environmental Liability
related in any way to the Borrower, the Guarantor or any of its other Subsidiaries, or (iv) any
actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee.

          (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the
Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to
pay to the Administrative Agent such Lender’s Applicable Percentage (determined as of the time that
the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against the Administrative Agent in its capacity as
such.

          (d) To the extent permitted by applicable law, each party hereto shall not assert, and hereby
waives, any claim against each other party, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions or any Loan or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable not later than 20 days after written
demand therefor.

 

51

          SECTION 11.04. Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby; provided that, except
to the extent permitted pursuant to Section 6.01(b)(iii)(C), no Credit Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by a Credit Party without such consent shall
be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby and, to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

          (b) Any Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans and
other Obligations at the time owing to it); provided that (i) except in the case of an assignment
to a Lender or an Affiliate of a Lender, each of the Administrative Agent and, so long as no Event
of Default is continuing, the Borrower must give its prior written consent to such assignment
(which consent shall not unreasonably be withheld), (ii) except in the case of an assignment to a
Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning
Lender’s Commitment, the amount of the Commitment of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect to such assignment
is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the
Administrative Agent and, so long as no Event of Default shall be continuing, the Borrower
otherwise consent, (iii) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement, (iv) the parties to
each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance,
together with a processing and recordation fee of $3,500, and (v) the assignee, if it shall not be
a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. Upon
acceptance and recording pursuant to paragraph (d) of this Section, from and after the effective
date specified in each Assignment and Acceptance, the assignee thereunder shall be a party hereto
and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and
11.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with paragraph (e) of
this Section.

          (c) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices in The City of New York a copy of each Assignment and Acceptance
delivered to it and a register for the recordation of the names and addresses of

 

52

the Lenders, and the Commitment of, and principal amount of the Loans and other Obligations owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive (absent manifest error), and the Borrower, the Administrative Agent
and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.

          (d) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance and record the
information contained therein in the Register. No assignment shall be effective for purposes of
this Agreement unless it has been recorded in the Register as provided in this paragraph.

          (e) Any Lender may, without the consent of the Borrower or the Administrative Agent, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment
and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations and (iii) the Borrower, the Guarantor and the Administrative
Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. Any agreement or instrument pursuant to which a
Lender sells such a participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of any provision of
this Agreement; provided that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or waiver described in
the first proviso to Section 11.02(b) that affects such Participant. Subject to paragraph (f) of
this Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section.

          (f) A Participant shall not be entitled to receive any greater payment under Section 2.l5 or
2.17 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified
of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 2.17(e) as though it were a Lender.

          (g) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to a Federal Reserve Bank, and this Section
shall not apply to any such pledge or assignment of a security interest; provided that no such

 

53

pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such assignee for such Lender as a party hereto.

          (h) Anything herein to the contrary notwithstanding, each Lender (the “Granting Lender”) shall
have the right, without the prior consent of the Borrower, to grant to a special purpose funding
vehicle (the “SPFV”) that is utilized by such Granting Lender, identified as such in writing from
time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to
provide all or any part of any Loan that such Granting Lender would otherwise be obligated to make
hereunder, provided that (i) nothing herein shall constitute a commitment to make any Loan by any
SPFV or shall relieve its Granting Lender of any obligation of such Granting Lender hereunder or
under any other Credit Document, except to the extent that such SPFV actually funds all or part of
any Loan such Granting Lender is obligated to make hereunder, (ii) if an SPFV elects not to
exercise such option or otherwise fails to provide all or any part of such Loan, such Granting
Lender shall be obligated to make such Loan pursuant to the terms hereof, (iii) the Granting Lender
hereby indemnifies and holds the Administrative Agent harmless from and against any liability,
loss, cost or expense (including for or in respect of Taxes) arising out of such identification and
grant or any transaction contemplated thereby, and (iv) the provisions of this paragraph (h) shall
not impose any increased cost or liability on any Credit Party. The making of a Loan by an SPFV
hereunder shall utilize the Commitment of its Granting Lender to the same extent, and as if, such
Loan were made by such Granting Lender. Each party hereto agrees that no SPFV shall be liable for
any payment under this Agreement or any other Credit Document for which a Lender would otherwise be
liable, for so long as, and to the extent that, its Granting Lender makes such payment. As to any
Loans or portions of Loans made by it, each SPFV shall have all the rights that a Lender making
such Loans or such portions of Loans would have had under this Agreement and otherwise; provided
that (1) its voting rights under this Agreement shall be exercised solely by its Granting Lender
and (2) its Granting Lender shall remain solely responsible to the other parties hereto for the
performance of such SPFV’s obligations under this Agreement, including its obligations in respect
of the Loans or portions of Loans made by it. No additional promissory notes, if any, shall be
required to evidence the Loans or portions of Loans made by a SPFV; and the Granting Lender shall
be deemed to hold its promissory note, if any, as agent for its SPFV to the extent of the Loans or
portions of Loans funded by such SPFV. Each Granting Lender shall act as administrative agent for
its SPFV and give and receive notices and other communications on its behalf. Any payments for the
account of any SPFV shall be paid to its Granting Lender as administrative agent for such SPFV, and
neither a Credit Party nor the Administrative Agent shall be responsible for any Granting Lender’s
application of such payments. In furtherance of the foregoing, each party hereto hereby agrees
that, until the date that is one year and one day after the payment in full of all outstanding
senior Debt of any SPFV, it shall not institute against, or join any other Person in instituting
against, such SPFV any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings (or any similar proceedings) under the laws of the United States of America or any
State thereof. In addition, notwithstanding anything to the contrary contained in this paragraph
(h), an SPFV may (1) (A) with notice to, but without the prior written consent of, the
Administrative Agent or the Borrower and without
paying any processing fee therefor, assign all or any portion of its interest in any Loan to
its Granting Lender or (B) with the consent (which consent shall not be unreasonably withheld)

 

54

of the Administrative Agent and (if no Event of Default has occurred and is continuing) the
Borrower, but without paying any processing fee therefor, assign all or any portion of its
interest in any Loan to any financial institution providing liquidity or credit facilities to
or for the account of such SPFV to fund the Loans funded by such SPFV or to support any
securities issued by such SPFV to fund such Loans, and (2) disclose, on a confidential basis,
any non-public information relating to Loans funded by it to any rating agency, commercial
paper dealer or provider of a surety, guaranty or credit or liquidity enhancement to such
SPFV. The Borrower shall not be required to pay, or to reimburse any Granting Lender for, its
expenses relating to any SPFV identified by such Granting Lender pursuant to this paragraph
(h).

          SECTION 11.05. Survival. All covenants, agreements, representations and warranties made by
the Borrower and the Guarantor herein and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement and the making
of any Loans. The provisions of Sections 2.15, 2.16, 2.17, 10.01(c)(iii) and 11.03 and Article IX
shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the
Commitments or the termination of this Agreement or any provision hereof.

          SECTION 11.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement, the commitment letter relating to the credit facility provided hereby (to the
extent provided therein) and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 3.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

          SECTION 11.07. Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

          SECTION 11.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender or any Affiliate thereof is hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other indebtedness at any time
owing by such Lender to or for the credit or the account of any Credit Party against any of

 

55

and all the Obligations now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this Agreement and
although such Obligations may be unmatured. The rights of each Lender under this Section are in
addition to other rights and remedies (including other rights of setoff) which such Lender may
have.

          SECTION 11.09. Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement shall be construed in accordance with and governed by the laws of the
State of New York.

          (b) Each Credit Party hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of
New York, and any appellate court from any thereof, in any action or proceeding arising out of
or relating to this Agreement, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of
any such action or proceeding may be heard and determined in such New York State or, to the
extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that the Administrative Agent or any Lender may otherwise
have to bring any action or proceeding relating to this Agreement against any Credit Party or
its properties in the courts of any jurisdiction.

          (c) Each Credit Party hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 11.01. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

          SECTION 11.10. WAIVER OF JURY TRIAL.

          EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND

 

56

(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 11.11. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 11.12. Confidentiality. Each of the Administrative Agent and the Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that Information may be
disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any regulatory authority,
(c) to the extent required by applicable laws or regulations or by any subpoena or similar legal
process, (d) to any other party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions substantially the same as
those of this Section, to any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement, (g) with the consent of the
Borrower or (h) to the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to the Administrative Agent or any
Lender on a nonconfidential basis from a source other than a Credit Party or any Subsidiary of a
Credit Party. For the purposes of this Section, “Information” means all information received from
any Credit Party or any Subsidiary of a Credit Party relating to a Credit Party or any Subsidiary
of a Credit Party or its respective businesses, other than any such information that is available
to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any
Credit Party or any Subsidiary of a Credit Party; provided that, in the case of information
received from any Credit Party or any Subsidiary of a Credit Party after the Effective Date, such
information is clearly identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

          SECTION 11.13. USA PATRIOT Act.

          Each Lender hereby notifies the Credit Parties that pursuant to the requirements of the USA
PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is
required to obtain, verify and record information that identifies the Credit Parties, which
information includes the name and address of the Credit Parties and other information that will
allow such Lender to identify the Credit Parties in accordance with the Act.

 

          IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly
executed by their respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	NISOURCE FINANCE CORP., as Borrower

 	 
	 	By:  	/s/ David J. Vajda
 	 
	 	 	Name:  	David J. Vajda   	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	Federal Tax Identification Number: 35-2105468

 	 
	 	NISOURCE INC., as Guarantor

 	 
	 	By:  	/s/ David J. Vajda
 	 
	 	 	Name:  	David J. Vajda 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	Federal Tax Identification Number: 35-2108964

 	 

Signature Page to

Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC, as Sole Lead Arranger and Lender and as Administrative Agent

 	 
	 	By:  	/s/ Sydney G. Dennis
 	 
	 	 	Name:  	Sydney G. Dennis  	 
	 	 	Title:  	Director 	 

Signature Page to

Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	/s/ Patrick Martin
 	 
	 	 	Name:  	Patrick Martin  	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to

Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	CITICORP USA, INC., as a Lender

 	 
	 	By:  	/s/  Amit Vasani
 	 
	 	 	Name:  	Amit Vasani 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to

Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., 

as a Lender

 	 
	 	By:  	/s/ Nancy  R. Barwig
 	 
	 	 	Name:  	Nancy  R. Barwig 	 
	 	 	Title:  	Vice President 	 

Signature Page to

Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD., 

NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/ Raymond Ventura
 	 
	 	 	Name:  	Raymond Ventura  	 
	 	 	Title:  	Deputy General Manager 	 

Signature Page to

Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND
PLC,

 as a Lender

 	 
	 	By:  	/s/ Belinda Tucker
 	 
	 	 	Name:  	Belinda Tucker  	 
	 	 	Title:  	Senior Vice President 	 

Signature Page to

Revolving Credit Agreement

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL
ASSOCIATION, 

as a Lender

 	 
	 	By:  	/s/ Shawn Young
 	 
	 	 	Name:  	Shawn Young  	 
	 	 	Title:  	Director 	 

Signature Page to

Revolving Credit Agreement

 

 

Annex  A

FACILITY FEE PRICING GRID

     The “Applicable Rate” for any day with respect to the Facility Fee is the percentage set forth
below in the row under the column corresponding to the Status that exists on such day:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Status	 	Level I	 	Level II	 	Level III	 	Level IV	 	Level V
	Facility Fee (basis points)

	 	 	10.0	 	 	 	12.5	 	 	 	15.0	 	 	 	17.5	 	 	 	25.0	 

     For purposes of this Facility Fee Pricing Grid, the following terms have the following
meanings (as modified by the provisos below):

     “Level I Status” exists at any date if, at such date, the Index Debt is rated either A- or
higher by S&P or A3 or higher by Moody’s.

     “Level II Status” exists at any date if, at such date, the Index Debt is rated either BBB+ by
S&P or Baa1 by Moody’s.

     “Level III Status” exists at any date if, at such date, the Index Debt is rated either BBB by
S&P or Baa2 by Moody’s.

     “Level IV Status” exists at any date if, at such date, the Index Debt is rated either BBB- by
S&P or Baa3 by Moody’s.

     “Level V Status” exists at any date if, at such date, no other Status exists.

     “Status” refers to the determination of which of Level I Status, Level II Status, Level III
Status, Level IV Status or Level V Status exists at any date.

The credit ratings to be utilized for purposes of this Facility Fee Pricing Grid are those assigned
to the Index Debt, and any rating assigned to any other debt security of the Borrower shall be
disregarded. The rating in effect at any date is that in effect at the close of business on such
date.

Provided, that the applicable Status shall change as and when the applicable Index Debt ratings
change.

Provided further, that if the Index Debt is split-rated, the applicable Status shall be determined
on the basis of the higher of the two ratings then applicable; provided further, that, if the Index
Debt is split-rated by two or more levels, the applicable Status shall instead be determined on the
basis of the rating that is one level above the lower of the two
ratings then applicable.

Provided further, that if both Moody’s and S&P, or their successors as applicable, shall have
ceased to issue or maintain such ratings, then the applicable Status shall be Level V.

Annex A-1

 

 

EXHIBIT A

FORM OF ASSIGNMENT AND ACCEPTANCE

     Reference is made to the Revolving Credit Agreement dated as of September 23, 2008, among
NiSource Finance Corp., a Delaware corporation, as Borrower (the “Borrower”), NiSource Inc., a
Delaware corporation (“NiSource”), as Guarantor (the “Guarantor”), the Sole Lead Arranger and other
Lenders from time to time party thereto, and Barclays Bank PLC, as Administrative Agent thereunder.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have
the meanings given to them in the Credit Agreement.

     The Assignor named on Schedule 1 hereto (the “Assignor”) and the Assignee named on Schedule 1
hereto (the “Assignee”) agree as follows:

     1. The Assignor hereby irrevocably sells and assigns to the Assignee without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor without
recourse to the Assignor, as of the Effective Date (as defined below), an interest as specified in
Schedule 1 hereto (the “Assigned Interest”) in and to the Assignor’s rights and obligations under
the Credit Agreement as described on Schedule 1 hereto (individually, an “Assigned Facility”;
collectively, the “Assigned Facilities”), in a principal amount for each Assigned Facility as set
forth on Schedule 1 hereto.

     2. The Assignor (a) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with the Credit
Agreement or any other Credit Document or with respect to the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument
or document furnished pursuant thereto, other than that it is the
legal and beneficial owner of the Assigned Interest, that it has not created any adverse claim
upon the Assigned Interest and that the Assigned Interest is free and clear of any such adverse
claim; and (b) makes no representation or warranty and assumes no responsibility with respect to
the financial condition of the Borrower, the Guarantor or any of their respective Subsidiaries or
the performance or observance by the Borrower or the Guarantor of any of their respective
obligations under the Credit Agreement or any other Credit Document.

     3. The Assignee (a) represents and warrants that it is legally authorized to enter into the
Assignment and Acceptance; (b) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements referred to in Section 4.01 thereof and the most
recent financial statements referred to in Section 5.01 thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (c) agrees that it will, independently and without reliance upon
the Assignor, the Administrative Agent, or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement or any other Credit Document; (d) appoints
and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement and any other Credit Document as are
delegated to the Administrative Agent by the terms thereof, together with such powers as are
incidental thereto; and (e) agrees that it will be bound by the

Exhibit A-1

 

 

provisions of the Credit Agreement and will perform in accordance with its terms all the
obligations which by the terms of the Credit Agreement are required to be performed by it as a
Lender.

     4. The effective date of this Assignment and Acceptance shall be as specified on
Schedule 1 hereto (the “Effective Date”). Following the execution of this Assignment and
Acceptance, it will be delivered to the Administrative Agent for acceptance by it and recording by
the Administrative Agent pursuant to Section 11.04 of the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the Administrative Agent, be earlier
than five Business Days after the execution hereof).

     5. Upon such acceptance and recording, from and after the Effective Date, the
Administrative Agent shall make all payments with respect to the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignee. The Assignor and the
Assignee shall make all appropriate adjustments in payments by the Administrative Agent for periods
prior to the Effective Date or with respect to the making of this assignment directly between
themselves.

     6. From and after the Effective Date, (a) the Assignee shall be a party to the
Credit Agreement and, to the extent provided in this Assignment and Acceptance, have (in addition to any
rights and obligations theretofore held by it) the rights and obligations of a Lender thereunder
and shall be bound by the provisions thereof, and (b) the Assignor shall, to the extent provided in
this Assignment and Acceptance, relinquish its rights and be released from its obligations under
the Credit Agreement (other than any such rights which expressly
survive the termination thereof).

     7. This Agreement may be executed in as many counterparts as may be deemed necessary or
convenient, and by the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed an original, but all such counterparts shall constitute but one and the
same agreement. Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

     8. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
UNDER THE INTERNAL LAWS OF THE STATE OF NEW YORK. THIS AGREEMENT IS SUBJECT TO SECTION 11.09
(CHOICE OF FORUM AND SERVICE OF PROCESS) AND SECTION 11.10 (WAIVER OF TRIAL BY JURY) OF THE CREDIT
AGREEMENT. THE PROVISIONS OF SUCH SECTIONS 11.09 AND 11.10 OF THE CREDIT AGREEMENT ARE
INCORPORATED HEREIN BY REFERENCE IN FULL.

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Acceptance to be
executed as of the date first above written by their respective duly authorized officers on
Schedule 1 hereto.

Exhibit A-2

 

 

SCHEDULE 1

TO

ASSIGNMENT AND ACCEPTANCE

Name of Assignor:

Name of Assignee:

Effective Date of Assignment:

	 	 	 	 	 
	Facility Assigned	 	Principal Amount Assigned 	 	Applicable Percentage Assigned*
	 
	 

The terms set forth above and in the Assignment and Acceptance to which this Schedule 1 is
attached are hereby agreed to:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	[Consented to and ]#/ Accepted for the	 
	 	 

	 	 	 	 	 	 	 	Recordation in the Register:	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	,	 as Assignor	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	By:
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	   	 	 	 	 	 	 	 
	 	 

	 	Name:	 	 	 	 	 	 	 	 	 
	 	 

	 	Title:	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	BARCLAYS BANK PLC,	 
	 	 	 	 	 	 	 	 	 	As Administrative Agent	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	By:	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	Name:	 
	 	 

	 	 	 	 	 	 	 	 	 	Title:	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	,	 as Assignee	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	By:
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 

	 	Name:	 	 	 	 	 	 	 	 	 
	 	 

	 	Title:	 	 	 	 	 	 	 	 	 

 

			
	*	 	If applicable.
	 
	#	 	To be completed only if consents are required under Section 11.04(b).

Exhibit A-3

 

 

	 	 	 	 	 
	 	[Consented to]:

NISOURCE FINANCE CORP., 
As Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A-4

 

 

EXHIBIT B

FORM OF OPINION OF SCHIFF HARDIN LLP

 

 

Schedule 2.01

(Credit Agreement)

Names, Addresses, Allocation of Aggregate Commitment, and Applicable Percentages of Banks

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Domestic Lending	 	Eurodollar Lending	 	 	 	 	 	Applicable
	Bank Name	 	Office	 	Office	 	Commitment	 	Percentage
	Barclays Bank PLC

	 	Barclays Bank PLC

200 Park Avenue

New York, NY 10166
	 	Barclays Bank PLC,

Nassau Branch

c/o Barclays Bank PLC

200 Park Avenue

New York, NY 10166
	 	$	94,736,845.00	 	 	 	18.95	%
	Bank of America,
N.A.

Citicorp USA, Inc.

	 	100 North Tryon Street

Charlotte, NC 28255

399 Park Avenue,

16th Floor

New York, NY 10043
	 	Same

Same
	 	$

$	71,052,631.00

71,052,631.00	 	 	 	14.21

14.21	%

%
	JPMorgan Chase
Bank, N.A.

The Royal Bank of
Scotland plc

	 	10 S. Dearborn

Chicago, IL 60603

101 Park Avenue

6th Floor

New York, NY 10178
	 	Same

Same
	 	$

$	71,052,631.00

71,052,631.00	 	 	 	14.21

14.21	%

%
	Wachovia Bank, 

National Association

	 	201 South College Street,

C89

Charlotte, NC 28288

	 	Same
	 	$	71,052,631.00	 	 	 	14.21	%
	Mizuho Corporate
Bank, Ltd., New
York Branch

	 	1251 Avenue of the
Americas

New York, NY 10020
	 	Same
	 	$	50,000,000.00	 	 	 	10.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL

	 	 	 	 	 	$	500,000,000	 	 	 	100	%

 

 

SCHEDULE 6.01(e)

EXISTING AGREEMENTS

	1.	 	Receivables Purchase Agreements and Receivables Sale Agreements of Columbia of Ohio
Receivables Corporation and NIPSCO Receivables Corporation.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]